Burnaby Now May 9 2019

Page 1

CITY 14

EVENTS 17

New overpass in the works

Your top 5 for the weekend

EVENTS 27

Terry Fox Run needs a leader

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THURSDAY, MAY 9, 2019

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BLAZE OF GLORY: Byrne Creek Grade 12 student Nathan Ly battles a blaze during the Burnaby Fire Department’s youth academy last Thursday. See more on page 11. PHOTO CORNELIA NAYLOR

HOUSING

Stats show high foreign ownership of condos Kelvin Gawley

kgawley@burnabynow.com

One in four condos built in Burnaby in 2016 and 2017 are owned by foreign residents, recently released data shows. The numbers from the Canada Housing Statistics Program show a higher rate of non-resident participation in the local real estate market compared to previously released figures. Overall, non-residents owned or were partial owners of 12.6 per cent of all

condos in Burnaby when the data was captured in 2018. OnlyVancouver and Richmond had higher rates of non-resident ownership in the region. And the data tells a similar story in the single-detached home market. Nonresidents owned more than a quarter (25.8 per cent) of homes built in 2016 and 2017 – far higher than the regional average of 10.4 per cent inVancouver’s census metropolitan area. “The story is really how much non-residents really

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have a role,” said AndyYan, director of Simon Fraser University’s City Program. “It gives you the context of what are some of the factors of demand and the types of demand that is helping drive the kind of supply that is happening in the City of Burnaby.” The data doesn’t necessarily show foreign ownership, he said.The statistics track non-resident participation – properties where one or more owner is not a tax resident of Canada. “That person, for exam-

ple, could be that (Canadian) English teacher in Japan who happens to hold a piedà-terre in Burnaby,”Yan explained. “But, at the same time, it’s also where the foreigners with no ties to Canada could also be.” Yan said the 2018 data is likely too old to show the full effect of B.C.’s foreignbuyers tax that came into effect at 15 per cent in 2016 and was later raised to 20 per cent. Overall, he said, “we’re just starting” to properly address foreign investment in

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B.C.’s real estate and its inflationary effects. “I think the movement towards greater transparency, accountability and, indeed, taxation is part of those moves,”Yan said. But, he said, there are existing powers to address the issue that are perhaps not being properly enforced. When a non-resident sells property, the buyer is supposed to withhold 25 per cent of the gross sales price and remit it to the Canada Revenue Agency (CRA). The intent is to ensure non-

residents pay the appropriate income taxes. Non-residents must notify the CRA within 10 days of selling a Canadian property.The agency then charges the applicable taxes on the capital gains received by the seller. Once those are paid, the CRA issues a certificate of compliance and what remains of the 25 per cent withheld amount is returned to the seller. Yan said questions remain on whether the withholding system is being enforced. Continued on page 10

Glenn Chivers 604-420-9100 GlennChivers@remax.net ChiversBell.ca

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