More thoughts on housing prices, taxes

Re: Property Transfer Tax fixes a long time coming, Editorial, Oct. 15

The editorial about the Property Transfer Tax is much ado about nothing. Vancouver home prices are high for Canada, but quite moderate compared to major cities around the world.

Take London, for example. Their property transfer tax is called the Stamp Duty Land Tax. This year rates are as follows:

The first £125,000 is not taxed. The tax on the next £125,000 is two per cent. On the next £675,000 it is five per cent. On the next £575,000 it is 10 per cent.

The tax on the remaining amount (the portion above £1.5 million) is 12 per cent.

I’ll let you compare the property tax currently paid in B.C. on a house selling for $1 million, and on one selling $2.5 million, versus a B.C. property transfer tax that would have the same increments as the London one, with dollars instead of pounds.

In London’s East End, one of the cheapest houses in E1 is for sale at £675,000 while bigger, older, listed row houses go for £2.5 million.

Most homes are just under £1 million. These are row houses, with around 1,000 sq. ft, most without a garage and front yard, and a small back yard, and may have only one bathroom. Private indoor parking is available in the area, for £60,000.

The most expensive home on sale is a 9,000-sq.-ft recently built apartment in the Knightsbridge area for £75 million. The ad mentions that, “Vendor agrees to pay purchasers stamp duty in full.” On all the ads, even expensive ones, the nearest Tube and/or train stations are duly noted.

J-L BRUSSAC Coquitlam