The B.C. NDP is calling for more auditing of real estate purchases after discovering a number of eyebrow-raising transactions, including a $2.3 million home on Vancouver's west side that was bought by a waitress.
Housing critic David Eby said the party investigated sales activity in the MacKenzie Heights neighbourhood and found dozens of high-priced homes owned by people with little or no income.
Data obtained by the NDP revealed 26 self-proclaimed homemakers and five students own properties in the area valued at more than $107 million combined.
"I can't suggest that anything has actually been done wrong by anybody," Eby said at a news conference Tuesday. "I'm simply saying that we need to have additional resources dedicated to investigate where this money that's coming into our real estate market is coming from."
The multimillion-dollar home that was purchased by a waitress in 2012 is three storeys, custom built, with hardwood flooring, a sub-zero fridge and stainless steel appliances, according to a description obtained by Eby.
"The taxes alone on this property in 2014 were $10,000 a year," he said. "So a very successful waitress."
In another transaction, a student bought a property from a homemaker for $2.06 million, then renovated it and sold it for $4.33 million to a self-identified businessperson.
Eby argued it's possible some of the homes were purchased on behalf of a wealthy individual who wanted to avoid paying capital gains tax on the investment.
The provincial government has already committed to hiring dedicated auditors to investigate tax evasion in real estate, but the housing critic said the eight-person team promised is still woefully inadequate.
Asked about Eby's comments Tuesday, MLA Andrew Wilkinson, the BC Liberal representative for Vancouver-Quilchena, dismissed the concerns as a "bit of a witch hunt."
"He's throwing out wild allegations with no real information to back them up," Wilkinson said.
But real estate lawyer T.J. Dhillon disagreed, insisting there are many buyers using loopholes to avoid capital gains tax.
"I do a number of deals where the buyers are either homemakers or students and I think it is clearly an attempt to circumvent the information on who's the real owner," Dhillon said.
With a report from CTV Vancouver's Scott Roberts