Alberta buyers will flee B.C. according to survey
April 30, 2018
White Spruce Lodge, Canmore, Alberta. - Spring Creek Real Estate
Albertan buyers will be dissuaded from buying vacation homes in British Columbia and may be forced to sell secondary homes they own there because of B.C.’s new speculation tax, according to a Royal LePage survey.
The survey of real estate agents in B.C. and Alberta found “the vast majority of people Alberta believe they will look within the province or elsewhere,” said Phil Soper, CEO of Royal LePage.
Soper said some Alberta buyers may consider U.S. states such as Montana, rather than B.C., for recreational property.
Out of those surveyed, 80.7 per cent of Alberta-based realtors felt that Albertan interest in B.C. recreational properties would decrease, and 75.6 per cent stated that Albertan’s who own property in B.C. would likely sell those secondary homes.
B.C. realtors were also concerned—78 per cent said home sales will decrease within the first three months after the announcement of the new policies.
Out of both groups of realtors, 43.5 per cent said they believe the policies would mostly affect Canadians who live in other provinces; 11.3 per cent thought the taxes would impact international purchasers more.
The B.C. tax is 1 per cent for out-of-province investors and 2 per cent for foreign investors who own seasonal homes in B.C.
The survey, which polled 535 Royal LePage real estate agents from B.C. and Alberta, was conducted online between March 14 and 20.
Canmore, Alberta condo developer Frank Kernick of Spring Creek Real Estate is offering a case of B.C. wine and “an enormous tax discount compared to B.C.” for any Canadian who buys at the White Spruce Lodge in Canmore this spring.