The developer says that it has a small percentage of foreign buyers but is concerned that some may not close the deal due to the increased cost. Holborn’s CEO Kim Tiah says that the firm is trying to secure additional financing for some buyers to help them meet the tax burden.
Although the tax has created an issue for Holborn, Tiah told the Globe and Mail that he is not expecting the impact to last: “I don’t think the 15 per cent in general will hurt the market going forward in the long term, but the retroactive nature of it is very unfair. Immigrants come here because they like the certainty, they like order. You can’t change the rules or the goal posts all of a sudden.”
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Foreign buyers of units in Holborn Properties’ Trump Tower in Vancouver could pull out as a result of the city’s 15 per cent tax on foreign buyers.