The real estate sector of the Fraser Valley is doubtful about British Columbia’s foreign buyer tax that can possibly dissuade blue-collar immigrants from choosing Lower Mainland as their destination.
It has been observed that even though the new tax has been aimed at high-end buyers, the working class is going to be the one who will be affected the most which is the majority population that fuels Fraser Valley and its activities.
Many have also observed the fact that for buyers purchasing homes in West Vancouver, the added 15% tax will not be an issue but for the working class, especially professionals like Doctors, Lawyers etc., it will be a huge setback.
According to a report released by the Local Immigration Partnership in Surrey, the labor force is likely to decrease due to replacing retired workers. The city is going to create 125,000 positions by 2041, but almost by 2022, there will be a shortage of 42,250 jobs.
It was expected that immigrants will fill up 1/3rd of the projected openings but because of the new added tax, it is likely that many will not shift in.
The real estate community completely understands the reasoning behind the tax but are completely baffled that the Government hasn’t considered the various deals, which are in different stages of completion and are in danger of closure.