University grad faces $84K foreign buyers tax on Langley, B.C., townhome

After completing her degree at the University ofSaskatchewan last spring, Chinese student Jing Lidecidedto put down permanent roots in Canada.

Jing, 29, obtained a work permit, moved to the Vancouver areaand made an offer on atownhouse in Langley, B.C., in mid-July.

• Thousands of Metro Vancouver real estate deals caught by tax deadline
• B.C. foreign real estate buyer tax leaves Iranian man set to lose thousands on first home

"The beauty and kindness of B.C. inspired me to move here," she said.

Jingcobbled together a10 per cent deposit on the $560,000 propertyby borrowing from her parents in China. She said they in turn borrowedmoney from friends and family.

But last month, 12 days after Jing signed the purchase contract,the B.C. government threw a wrench in Jing'sCanadian dream when itlevied a 15-per-cent-tax applied toforeign real estate buyers in the Vancouver area.

Jing is not a permanent resident in Canada, so the tax adds$84,000 to the home's cost, something she's certain she can't afford. But if she backs out of the deal, she wouldlose her deposit of about $56,000.

"Now, I can't go forwardand also can't go back."

Her mother cried when Jing called her parents in China to tell them about the tax. They had no more money to lend her.

Jing said her father is a geologist for a mining company. Her mother stays at home.

Parents saved for Jing's future

She said her parents saved all their lives to send her to university in Canada.

After earning a master's degree last spring in public administration from the University of Saskatchewan,she moved to Burnaby, B.C., where shelives in an apartmentwith some university friends.

Stayingin Canadawas Jing's idea, and now she feels guilty.

"I think this is my fault," she said in halting English. "If I don't want to study, work and live in Canada, this disaster would not happen to my family.

"I hope there is somebody could tell me what I can do."

Bruce Copp, managing broker at Sutton Group West Coast, the real estate firm used by Jing, confirmed Jingmade the offer on the Langley property in July.

Did not expect tax

When the government introduced the tax last month, it said its stated aim was to make housing more affordable for middle-class buyers.

Real estate prices in the Vancouver area havesoared in recent years. Some have argued that foreign buyers have contributed to this rise, which has left many local buyers priced out of their own city.

Jing saidshe never would have bought the Langley property had she known a tax was on the horizon.

She said she feltentrapped by the government when it announced the tax.

"In my mind, Canada is a democratic and fair country."

Now she is not so sure.