(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

Purple Light Nights committee of Chilliwack is rolling out exciting new events starting Oct. 1

Key message is still that intimate partner violence has no place in our community

Agassiz administrator to teach ‘psychological first aid’ course

ACE principal Sandy Balascak will be sharing how to help others deal with a mental health crisis

Shandhar Hut of Chilliwack wins bragging rights for best Indian cuisine in B.C.

The popular family restaurant saw an outpouring of testimonials and voting from adoring clientele

Vokes range in Chilliwack River Valley reopens to military marksmenship training

The rifle range shut down last summer due to safety concerns about richochets, according to DND

Armed ERT officers respond to firearm report near Chilliwack middle school Friday

School put in hold-and-secure in the afternoon as incident was resolved

VIDEO: “How dare you?” Greta Thunberg addresses UN climate summit

‘We are in the beginning of a mass extinction and yet all you can talk about is money.’

Pettersson has 4 points as Canucks dump Ottawa 6-4

Vancouver wins NHL pre-season tilt in Abbotsford

British man returns to Yukon to tipple his own toe in long-running tradition

So-called sourtoe cocktail is a shot of whisky with a mummified human toe in it

Poll suggests Canadians concerned about fake news, but struggle to spot it

56 per cent of respondents admitted to reading or sharing inaccurate news

Province announces $3.5 million in funding for community solutions to overdose crisis

Grants up to $50,000 will be available for municipalities working with a regional health authority

Conservatives’ plan to ease mortgage stress-test rules may raise debt and prices

Andrew Scheer vows to loosen rules around stress test and remove it altogether for mortgage renewals

B.C. mom urges patience after rude comments while out with toddlers

People asked to be better and to help each other

U.S. wrestler says viral speeding ticket video was staged

WWE wrestler Lacey Evans says she does not condone disrespecting law enforcement officers

‘Own a piece of history’: Beachcombers location Molly’s Reach up for sale

‘This is one of B.C.’s most photographed buildings’

Most Read