(Magnus Larsson/Flickr)

UBC prof says report citing $89B home equity loss a ‘grassroots movement of the rich’

Report says longtime homeowners are being taxed out of their homes by the NDP

Although an $89 billion dip in home equity across Metro Vancouver could impact recent homebuyers, longtime homeowners will see little impact.

STEPUP, which describes itself as a “grassroots non-partisan movement by concerned B.C. citizens,” released a report this week about an $89.2 billion loss in home equity across the region between April 2018 and April 2019.

Much of that loss would have been in Vancouver, at $43.6 billion.

The report was prepared by Paul Sullivan, senior partner at Burgess, Cawley, Sullivan & Associates Ltd.

Sullivan said that although Premier John Horgan’s government may be attempting to lower housing prices, “they are simply removing billions of dollars from the B.C. economy.”

“This provincial government suggests you don’t deserve to have that real estate ‘wealth’ and should pay even more, on top of rising income taxes, the highest gas prices in North America and ballooning ICBC and utility fee increases,” Sullivan said.

“The impact of the school tax surcharge on homes assessed at over $3 million, for example, means an average 35 per cent increase across Vancouver.”

But Tsur Somerville, an associated professor at the UBC Sauder School of Business, believes that “in any meaningful sense the average homeowner is fine.”

“Anyone who been in the housing market is still way ahead,” Sommerville said, pointing to Point Grey homeowners outraged by the report.

Point Grey resident Ric Pow, who was quoted in STEPUP’s report, said he and his wife have “have been taxed out of our home.”

The Pows have owned a home in Point Grey for 33 years but say their home “has lost 25% of its value since the NDP took power.”

But Somerville said homeowners who’ve been the housing market “have done so well, they’ve been so lucky in the lottery of life that I think arguing about it is somewhat socially irresponsible.”

The movement, he said, is “a grassroots movement of the rich.”

The people who will be negatively affected by this equity loss, Somerville said, are recent first time homebuyers.

“Anyone who’s bought near the peak of the market about a year ago isn’t looking at any gains, but just declines in equity.”

READ MORE: Multimillion dollar Vancouver home owners say they can’t stomach tax bump

READ MORE: Mathematician not impressed by people complaining about B.C.’s school tax

READ MORE: David Eby cancels town hall due to ‘safety concerns’ after school tax protest planned


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

UPDATE: Young bear killed downtown Chilliwack was habituated to humans

Conservation officer says bear would not have been a candidate for relocation

Mission begins process to reclassify as a city, public will have a say

Should it be known as the District of Mission, City of Mission or Mission City?

Twilight concert series continues with Crescent Sky

Group will perform at Mission’s Fraser River Heritage Park on June 28 at 7 p.m.

Severe thunderstorm possible for Fraser Valley

Environment Canada has put out a watch for the Fraser Valley and Fraser Canyon

Mission school acquires new instruments thanks to grant, community support

Students at Ecole Christine Morrison performed a Music Monday assembly

VIDEO: Driver doing laps in busy Vancouver intersections nets charges

Toyota Camry spotted doing laps in intersection, driving towards pedestrians

B.C. Ferries vessel breaks down right before long weekend

Horseshoe Bay-Langdale route impacted most, revised schedule adds 4 a.m. sailings

Every situation is different, jurors hear at coroners inquest into Oak Bay teen’s overdose death

Pediatrician says involuntary treatment necessary following overdose, opioid use

RCMP across Canada to soon unionize, according to B.C. mayor

A spokeswoman for RCMP headquarters in Ottawa says it’s not yet a done deal

Explicit sex-ed guide for adults mistakenly given to Creston elementary students

The booklet clearly states online and inside that the guide contains sexually explicit information

Driver has $240K McLaren impounded minutes after buying it in West Vancouver

Officers clocked the car travelling at 160 km/h along Highway 1 in a 90 km/h zone

Former Vernon Judo coach pleads guilty to child pornography charges

Bryan Jeffrey McLachlan is set to return to court Sept. 4 for sentencing

B.C. Olympic skier sues Alpine Canada after coach’s sex offences

Bertrand Charest was convicted in 2017 on 37 charges

Most Read