Look, Ma, I’m in a mansion: College kids in Vancouver benefit from new tax

High-priced homes are being converted into dorms, spurred by a levy on landlords who leave their residential properties vacant

Apr.April 17, 2019 10:30 AM
A mansion in Vancouver (Credit: Getty Images)

A mansion in Vancouver (Credit: Getty Images)

Ultra luxury mansions in Vancouver are being transformed into college dorms, thanks to a new tax that charges landlords who leave their residential properties vacant.

One student, 22-year-old Isaiah Boodhoo, rented a bedroom in a mansion for $825 a month after seeing a listing posted on Facebook, according to Bloomberg. The property was owned by an Afghan musician who rents out the nine-bedroom home to 14 students.

The recent trend has been prompted by new taxes that reportedly add up to as much as 3 percent in annual levies for homeowners who do not live primarily at the homes. The new taxes were introduced following a boom in foreign investment in the city in the years leading up to 2016.

It’s a symptom of a residential market correction currently affecting the Canadian city. The composite home price for Metro Vancouver fell 4.5 percent in January on a year-over-year basis to $780,000. It’s the largest annual drop since May 2013.

A recent report found that about 800 mansions in the city were listed for rent on Craigslist at bargain prices, some for under $1,000 per month per bedroom.

Overall, housing prices are down 8.5 percent from their peak last June, Bloomberg reported. [Bloomberg] — David Jeans 

Related Articles

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Racial inequality in homeownership across US is sharpest in New York: report