Welcome to NSW, a province of Canada
In August 2016, fed up with a glut of apartments sitting vacant because overseas owners weren’t renting them out, the city of Vancouver, in the province of British Columbia, implemented a 15 per cent foreign investor tax rate. The law added almost $300,000 to the price of a $2 million property. Toronto has since also joined Vancouver by imposing a 15 per cent tax on foreign investors.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Why every investor should read Roger’s book VALUE.ABLE
NOW FOR JUST $49.95
find out moreSUBSCRIBERS RECEIVE 20% OFF WHEN THEY SIGN UP
Rhys Rossiter
:
I see since January, prices in the Vancouver market continue to head north. The cooling effect didn’t last long. Crazy times.
Roger Montgomery
:
that does appear to be the case! Ultimately it does come back to interest rates, which are rising out-of-cycle here.
Cameron Hawkins
:
Roger, with some foreign (mainly Chinese) investors having purchased high rise apartments and neither residing in it or seeking a tenant, it will be interesting to see whether an economic downturn in China will necessitate a liquidation of those assets. Obviously any downturn in China will also have an impact on the Australian economy more generally.
Having said that, calling an economic downturn in China has been as popular a sport as calling a bust in the Australian residential property market in recent times….
Mark
:
Brilliant article Roger. About time someone dismissed all the house price rhetoric in high property prices.
Keep up the good work.