Hefty fees and taxes placed on new housing developments are a significant contributor to Vancouver’s sky-high housing prices.
An new, independent study conducted for the Greater Vancouver Board of Trade’s Housing Forum 2018 found that government taxes and fees account for 26.22% or $220,256 of the total $840,000 cost of a typical new apartment.
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The research was carried out by appraisal and tax expert Paul Sullivan from Burgess, Cawley, Sullivan and Associates Ltd., a local commercial real estate appraisal and property tax consulting group.
“When expressing their deep concerns over housing affordability, why haven’t governments taken a long hard look in the mirror?” asks Sullivan.
“Governments at all levels are increasingly addicted to real estate fees and taxes. At a time when all governments are purportedly concerned about housing affordability, all of these increased taxes and fees are just making housing even more expensive.”