Most of the cities have established requirements for new construction to feature EV Ready parking.
Most of the cities have established requirements for new construction to feature EV Ready parking.
For the last five years, there has been an incessant whisper at the margins of the real estate industry that has kept the idea of crashing markets and popped real estate bubbles in the public consciousness. Overextended buyers, overheated markets, overpriced properties – the reasons for anxiety are real.
Who would have thought that everything would one day come to a screeching halt because of condo insurance?
That is the scenario facing British Columbia, where insurance rates for strata corporations have risen beyond what most can afford to pay.
No lender will finance the purchase of a property lacking insurance, meaning units in uninsured buildings will have to fine either cash buyers or no buyers at all. Condo towers, because of their size and the potential for widespread damage, will be hit especially hard.
The issue first arose in the fall of 2019, when murmurs of the insurance increases were making their way around the province’s real estate industry.
“Back then, I don’t think it was on too many people’s radar,” says investor and Pemberton Homes agent Vanessa Roman. “It’s now on everybody’s radar because more and more buildings have had their insurance come up for renewal. I would say there isn’t a strata corp in BC that isn’t aware of the potential problem.”
According to Darlene Hyde, CEO of the British Columbia Real Estate Association, the scope of the problem remains hard to gauge.
“It’s like the nose of the camel is coming into the tent,” Hyde says. “We don’t know how big this is going to be. We don’t know how much premiums are going to go up. We’ve heard some individual, anecdotal stories that are pretty scary.”
One such story involves a property in Abbotsford where Roman says an unfortunate strata corporation saw its premiums rise by 700 percent.
“Last year, their premiums were $66,000. This year, they’re $588,000 – just for the premium,” she says.
Why are condo insurance rates rising in BC?
When asking about the root of the issue, the phrase “a perfect storm” frequently pops up. There are multiple reasons behind the spike in insurance rates. Any one of them would be relatively innocuous on its own, like a sliver of light underneath your bedroom door at night. But taken on simultaneously, these factors combine to form an eye-melting flash of lightning that has the potential to set the roof on fire.
Part of the blame can be laid on the strata corporations themselves. In an attempt to attract tenants, many stratas have cut their monthly maintenance fees to paltry levels, resulting in empty coffers when the time comes for major cash outlays, like sudden insurance rate hikes.
Roman says many strata corporations have also tried to keep their own costs low by opting to get insurance from companies offering the lowest rates. These companies, operating in a highly competitive environment, have suppressed normal rate increases for years in an attempt to nab and keep stratas as clients.
“So everybody wants to pay nothing for this strata,” she says. “When you have people on strata councils saying, ‘Okay, we can go with this insurance provider, or this one, which is 20 percent more but gives us more coverage,’ everyone is like, ‘Let’s go with the cheaper one. And by the way, we don’t want our rates to go up either.’”
The insurance industry is also playing its part. The suppression of insurance rate increases means strata corporations, rather than gradually spending more each year, are paying for years of below-market increases all at once. And with the global insurance industry having to pay out for unbelievable catastrophes – the wildfires in Australia alone will cost billions and billions – those funds will need to be replaced.
What happens next?
The current situation is untenable. Its solution remains purely theoretical at this point.
“I think there will be an industry solution or it will be backstopped by the government. It’s too big a problem to ignore,” Hyde says.
Roman suspects that the BC government will either expand the Insurance Corporation of British Columbia’s mandate to cover condos in addition to automobiles or create a new crown corporation to provide condominium insurance.
“But that’s going to take time to set up. Meanwhile, you’re going to have mortgages that are being renewed, or strata insurance policies that are being renewed and they’re going to have to deal with the ramifications of that,” she says.
Roman expects a massive drop in the value of condos over the next six to seven months. Prospective owners won’t be able to find financing. Any owner of a newly uninsured property who must renew her mortgage will have to either pay the remaining amount in full or sell – for cash. In a province already plagued by affordability issues, that kind of cash will be in short supply.
“I think you’re going to have a big influx of condos that are selling far, far below market value because they’re not going to be able to be financed. And buyers are going to have to hold onto their properties for a while because we’re going to have the crash, you’re going to have the recovery period and, during that time, you’re probably going to have high monthly strata rates,” Roman explains.
Investors still planning on getting their feet wet in the BC condo space have options for protecting their capital. Roman is advising her clients to get their building’s claims history for the last five years and to find out which claims have gone through the strata corporation’s insurance.
Hyde says the BCREA has already added a clause to the contract of purchase and sale that helps realtors and clients determine the insurance status of the condo they’re looking to buy. The Association is lobbying the Ministry of Municipal Affairs and Housing to create a similar law.
“We’re hoping the combined forces of industry can find some solutions,” Hyde says, adding that she is anticipating no shortage of constructive dialogue when the Insurance Bureau of Canada hosts the next roundtable meeting of the IBC Commercial Task Force upcoming summit on St. Patrick’s Day.
By then, we might all be ready for a drink.
by Clayton Jarvis
The nearly 250,000-square-foot shopping centre was purchased by Richmond-based Sun Commercial Real Estate Group (Suncom), according to a new retail market report by real estate firm CBRE.
The sales price was more than double its assessed value of $102 million. The 3.3-acre property is located within the Broadway Corridor Plan at 555 West 12th Avenue, just a block from the Canada Line Broadway-City Hall Station and the future Millennium Line Broadway Extension.
The property includes 50 retail units and two six-storey office buildings.
The mall lost its anchor tenant, Safeway, last year. The space has remained vacant since.
Suncom’s holdings include the Best Western Sands Hotel on Davie Street, Westwood Plateau Golf and Country Club in Coquitlam and Mylora Sidaway Golf Club in Richmond.
according to Vancouver Couier, The city of Vancouver estimates it will bring in 38 millions from the first year of the empty homes tax---8 millions more than initially predicted.
So far, about 21 millions has been collected. Most of the renevue will be used for affordable houseing initiatives --8 millions has already been allocated. It will cover one-time implementation cost ( 7.5 millions) and first year operating cost ( 2.5 million).
The latest number were revealed in city's first empty homes tax annual report ,which was released Nov 29. In the first year, close to 184,000 declaration were submitted, representing 99% of all residential owners in Vancouver.
Out of total 186,043 properties, 178,120 were occupied, 5385 were exempt and 2538 were vacant.
ALmost every one knows that as a non-resident of Canada, when selling the property in Canada, the seller need to pay tax for the profit. But seldomly aware that as a buyer,If you’re buying a house or condo and you suspect that the current owner from whom you are purchasing the property is a non-resident of Canada, you could be personally liable for the vendor’s Canadian capital gains tax if you don’t take certain precautions.
our Income Tax Act imposes an obligation on the purchaser to withhold 25 per cent of the purchase price from a non-resident unless the vendor has obtained a clearance certificate from the Canada Revenue Agency indicating that the non-resident has made appropriate arrangements to pay the tax.
If the non-resident doesn’t get a certificate, the Canadian resident purchaser is responsible for the 25 per cent tax owing on behalf of the non-resident unless, “after reasonable inquiry the purchaser had no reason to believe that the non-resident person was not resident in Canada.”
A new report from Royal LePage suggests the real estate market is going to get crowded in about five years’ time.
According to the The Royal LePage Boomer Trends Survey, 1.4 million baby boomers are expected to buy and sell homes in the next half-decade. However, 9% of boomer parents don’t expect their children to move out before they turn 35—a number that nearly triples in B.C.—and 32% of home-buying boomers will likely opt for a condominium.
“One other thing that stood out in the report to me is 56% of baby boomers believe that where they live today, their local neighbourhood is unaffordable for them for retirement purposes,” said Royal LePage’s President and CEO Phil Soper. “Part of the trigger sending so many baby boomers back into the market is relocation. They’ve indicated that they will relocate from single-family homes to condominiums, to suburban neighbourhoods, and to recreational areas. They’re clearly saying ‘The place that I lived to earn a living and raise children is not the optimal place for semi-retirement or retirement as an empty nester.’”
If boomers do, indeed, flock to condominiums and to the suburbs over the coming years, expect that their interest will be reflected in price points.
“What it will probably do is put price pressure on condominiums and suburban areas with a recreational feel that are within a couple of hours of where they live today, which is within a couple of hours of big cities,” said Soper. “A significant portion wants to live within an hour of where they live today and the next largest group wants to live about two hours away.”
Royal LePage has previously studied what it calls peak millennials, who are between the ages of 25 and 30, and it reckons they’re one the largest demographical cohorts to enter the housing market in Canadian history. Coupled with boomers, there should be no shortage of activity in the real estate market over the next decade.
“We are starting to see the millennials enter the market in a big way. The last few years they’ve been a factor to the point that they are the largest buying demographic now in transactional terms. One of the other interesting pieces from the report, a significant number of baby boomer parents are going to be helping their kids in real estate. I’m a late boomer and I can tell you it was rare when I was in my 20s for parents to play a significant role in kids getting homes, but what we found in this study is 47% are going to subsidize their kids’ home purchases.”
According to The Star Vancouver: In an effort to crack down on tax avoidance, the B.C. government will create a public registry to show who owns real estate in the province.
B.C.’s finance minister says the province has gotten a reputation for being a place to invest anonymously and hide wealth.
“Right now in B.C., real estate investors can hide behind numbered companies, offshore and domestic trusts, and corporations,” said Carole James in a statement. “Ending this type of hidden ownership in real estate will help us fight tax evasion, tax fraud and money laundering.”
In May, the Canada Revenue Agency reported it had identified nearly $600 million in unpaid taxes over the past three years by taking a closer look at Vancouver and Toronto’s real estate markets.
According to BIV,Residential construction all along the Canada rapid transit line is steadily transforming downtown Richmond from a strip of shopping malls into an urban core with cosmopolitan flair. Part and parcel of many developments is space for professional offices.
But most of the new construction has been strata space sold to local owner-occupiers or investors like so many of the surrounding residential units. Mo Yeung International Enterprise Ltd.’s International Trade Centre development at Versante, a mixed-use project with 97,846 square feet of strata office space at 8477 Bridgeport Road, is but the latest case in point.
The situation is about to change, however, with the 343,000 square feet of leasehold office space set to start with completion by the end of 2020. The largest is Yuanheng Holdings Ltd.’s plan for 237,832 square feet of office space at 3311 No. 3 Road, which began the development permit process last year.
An additional 105,420 square feet is proceeding without pre-lease commitments at iFortune Centre, which iFortune Homes Inc. is building at 6860 No. 3 Road. The lack of commitments underscores the tight nature of the market. Avison Young reports that vacancies in Richmond as a whole ended 2017 at less than 10 per cent for the first time in 10 years, but those in the core along No. 3 Road are closer to two per cent.
According to Coast Mountain Roof:
Even the best laid roofs are subject to wear and tear over the years. At some point, you’ll more than likely have to replace the roof of your home. When that time comes, you’ll be faced with the decision of using fiberglass or asphalt (organic) shingles. Being aware of the strengths and weaknesses of each type of roofing option can help you to decide which is the best option for your home.
Asphalt shingles are known to be quite durable as well as relatively affordable, especially compared with other shingle options. Some types can last up to 20 years. They are essentially made from felt or paper soaked in asphalt. The asphalt-soaked paper is then coated with an additional thick layer of asphalt, then a layer of ceramic granules. Because of this, the shingle is waterproof and withstands weather elements very well.
A coating is essentially created which helps protect the shingle from the sun’s harsh UV rays. They are also algae-resistant, as leachable paint is added and the granules form a surface that resists algae growth and discoloration. However, due to its paper content, asphalt shingles are more prone to fire damage than fiberglass.
Fiberglass shingles do contain some asphalt, but less of it than organic shingles. Fiberglass shingles feature a mat that is made of wet fiberglass held together with a urea-formaldehyde resin. The mat is soaked with asphalt filled with mineral fillers, which makes it waterproof.
Due to the absence of paper, fiberglass shingles are more fire resistant than organic asphalt shingles. Fiberglass shingles are actually not very ideal for cold climates, as low temperatures can cause fiberglass to become brittle and prone to breaking. In cold climates, organic asphalt shingles are the better option since they are heavier, more substantial and they perform quite well in cold, windy, frigid climates.
Fiberglass shingles also tend to be the better choice for hot climates due to being flame-retardant and heat-resistant. However, shingles made of fiberglass are rich in alkaline substances which can attract algae, making fiberglass proofs prone to having a dirty appearance. Algae buildup tends to reduce the roof’s ability to have a protective effect against the sun’s harsh rays. The result can be a warmer house, which means higher energy costs to keep it cool.
Its good to know that both shingles look the same. They are both made from asphalt and granules. They are even installed the same way too!. The difference is the layer of glass fiber makes the fiberglass shingle absorb less moisture and is more resistant to heat. Its for these reasons that fiberglass shingles increases durability in warm climates.
Overall, asphalt shingles are among the most affordable roofing options. Organic asphalt shingles can cost half of other roofing alternatives.
BC财政部长詹家路宣布了新的投机税新规，BC省居民拥有的物业依然维持0。5%，省外居民为1%，外国投资者为2%。 Gulf Islands, Parksville, Qualicum Beach or rural Fraser Valley的物业将不适用此规。
Metro Vancouver, Chilliwack, Abbotsford and Mission (excluding Bowen Island).
The Capital Regional District (excluding the Gulf Islands).
The municipalities of Nanaimo, Lantzville, Kelowna and West Kelowna.
A local real estate leader questions the effectiveness of new provincial measures designed to cool the housing market.
The provincial government last month announced introduction of two new measures: the expansion of the foreign home buyers tax and the introduction of a new speculation tax.
Concerning the first, the provincial government has hiked the buyers’ tax to 20 per cent from 15 per cent, and extended it into the Capital Regional District, including Saanich, along with other areas (Nanaimo, the Fraser Valley and Central Okanagan).
“I don’t think it is too big of a surprise,” said Kyle Kerr, president of the Victoria Real Estate Board (VREB). “I don’t think it’s going to have a significant impact on our market.”
Foreign buyers account for only five per cent of buyers, and Kerr questions whether the higher tax will help increase the supply of affordable housing. “How does less than five per cent of the market drive the other 95 per cent?” he asked.
Concerning the second, the government plans to introduce a tax on empty properties.
The tax starts at 0.5 per cent of the property assessment this spring, eventually hitting two per cent by the end of 2019.
It applies to individuals (foreign citizens and out-of-province Canadians), who own property in British Columbia but do not pay income tax in the province.
“If you pay income tax in British Columbia you are not captured,” Finance Minister Carole James said last month. “If you’re from outside the province, and you leave your home vacant, you will be taxed.”
(It is not quite as simple. Ministry documents say the “majority of B.C. homeowners” – not all – would receive exemptions from the tax.)
The government has also promised to “help offset” the tax for B.C. residents. This would leave “the bulk” – but not all – “of the tax levied on vacant and short-term rental properties” owned by individuals who do not live in British Columbia.
Some details about the tax remain outstanding.
The provincial government has also not yet defined “vacant” as it applies to holiday properties, which out-of-province owners may use only a few times each year. Finance officials have said that out-of-province owners can avoid the tax if they rent out their properties on a long-term basis rather than through short-term services such as AirBnB.
“If you want to ensure that you don’t pay the tax, you put your house on the rental market and you encourage people to rent it,” James told reporters after a post-budget speech to business owners in Victoria.
The provincial speculation tax has already caused ripples elsewhere, especially in the Okanagan Valley, where Kelowna Mayor Colin Basran has openly criticized the provincial government.
Kerr, citing this criticism, said the province should have consulted with the industry.
While it is not clear how many residences in Greater Victoria would be subject to the speculation tax, the region is attractive with future retirees, who currently live out of town but have already purchased a second home. “There will be a spectrum of the local market that will be affected,” said Kerr.
So what should the province have done?
Kerr said the key to dealing with the current affordability crisis lies on the supply side and he praises some of the other housing measures and adds the speculation tax could generate revenue towards housing measures. This said, it will take time, and the provincial budget lacks measures to help groups who are struggling to find affordable housing right now.
For example, the province could have worked with municipalities to cut red tape, thereby speeding up housing developments, he said. It could have also instituted measures that would have given groups a break on their property transfer tax.
The province, for example, reduces or eliminates the property transfer tax for first-time buyers, with the full exemption kicking in for properties with a fair market value of less than $500,000. Kerr said the provincial government could have adjusted this exemption threshold by region.
“The government can tax specific regions of the province, why not give them a regional tax break?” he said.
British Columbia is raising its foreign buyers tax and expanding it to areas outside of Vancouver, while bringing in a new levy on speculators, as part of a sweeping plan to improve affordability in the province's overheated housing market.
The New Democrat government unveiled a 30-point housing plan in its first full budget on Tuesday that also increases the property transfer tax and school tax on homes over $3 million, and invests $6 billion in building 114,000 affordable homes over the next decade.
``Our intent is to bring stability to housing prices with these changes and have revenues to invest in building affordable housing,'' said Finance Minister Carole James in a speech to the legislature.
``We recognize these are bold actions. But that's what B.C.'s housing crisis demands.''
The previous Liberal government introduced a 15 per cent tax on homes purchased by foreigners in Metro Vancouver in 2016. Sales slowed for several months before rebounding and prices have continued to rise.
The minority NDP government will increase the tax to 20 per cent and will also apply it to homes in the Fraser Valley, central Okanagan, the Nanaimo Regional District and the Victoria area. The changes take effect Wednesday.
The speculation tax will be introduced this fall. The annual property tax will target foreign and domestic homeowners who do not pay income tax in B.C., including those who leave homes vacant. Satellite families, or households with high foreign incomes that pay little local income tax, will also face the levy.
Exemptions will be available for most principal residences, long-term rental properties and certain special cases, so most homeowners in B.C. won't be affected, James said.
``This tax will penalize people who have been parking their capital in our housing market simply to speculate, driving up prices and removing rental stock,'' she said.
In the 2018 tax year, the rate will be $5 per $1,000 of assessed value. Next year, the rate will rise to $20 per $1,000 of assessed value. It will initially apply to Metro Vancouver, the Fraser Valley, the Victoria area, the Nanaimo Regional District, Kelowna and West Kelowna.
A non-refundable income tax credit will also be introduced to offset the new levy, providing relief for people who do not qualify for an exemption but who pay income taxes in B.C.
Cameron Muir, chief economist at the B.C. Real Estate Association, said the tax could hit B.C. residents who have vacation properties or second homes, as the credit may not be enough to offset it.
It's also unfair to penalize people from other provinces who own vacation homes in B.C., Muir added.
``That's a really big tax increase for Canadians who have done nothing wrong but own recreation property in one of Canada's most amenable climates,'' he said.
Asked whether out-of-province owners of recreation properties in B.C. would be subject to the levy, James said the government was still considering possible exemptions.
The government also moved to close loopholes that allow people to skirt tax laws. It's building a database on pre-sale condo assignments and a beneficial ownership registry that it will share with tax authorities.
The plan also addresses supply through what the government says is the largest investment in housing affordability in B.C. history _ more than $6 billion over 10 years to deliver 114,000 homes. That includes more than 14,000 rental units, 1,750 units for Indigenous people and 2,500 homes for the homeless.
It will increase a grant for elderly renters and expand a program that helps low-income families.
The government said it's working with municipalities to develop new tools, such as rental zoning, and creating a new office to partner with non-profits and developers to build affordable homes.
Green Leader Andrew Weaver, whose three-member caucus struck a deal to support the minority NDP government, said the speculation tax and foreign buyers' tax should be applied province-wide.
``We support these first steps, however, our view is that they're not really as bold as we need to actually deal with the crisis before us,'' he said.
The Opposition Liberals said the New Democrats have forgotten about creating revenue and tabled a budget that relies on taxes to pay for its promises.
Finance critic Tracy Redies doubted the government would be able to reach its affordable-housing goals.
``They said 114,000 housing units. They are coming up woefully short on that,'' she said.
Thom Armstrong, executive director of the Co-op Housing Federation of B.C., applauded the government's plan. Taxes on speculators and foreign buyers will help cool the market, he said.
``Anything that moderates demand in the market and has a dampening influence on prices will help the overall situation that our members and clients face,'' he said.
Canada remains one of the bright stars in the global real estate market despite a slowdown in 2018.
A new report from Fitch gives Canada a stable/negative rating as low arrears clash with rising house prices which are at risk of declining. It’s forecast for 2018 is for prices to rise 5% (around half of 2017’s increase) and for
mortgage arrears to remain at the 0.3% level of 2017.
However, it warns that Vancouver and Toronto’s price rises make them increasingly vulnerable to a correction.
The report highlights the relative affordability of household debt in recent years due to low interest rates, but notes that this led to tighter mortgage lending rules from OSFI and CMHC.
Fitch is calling for a rise in interest rates of 50 basis points for each of 2018 and 2019 and for mortgage credit growth to be 3% per year.
Despite the rising home prices and highly-leveraged households, Fitch says that the financial infrastructure in Canada is well protected due to mortgage insurance from CMHC.
It sees further lending restrictions to cool demand in overheating markets and also expects foreign ownership rules to have an impact in 2018.
Welcome to 5491 Dominion ST Burnaby publice open on Jan 28 2-4PM. Half Duplex, pefect for own use or rent out(up and down could be rent out seperately ), Great value! must see!
本周日公众开放5491 Dominion St本拿比 2点至4点。适合自住或者出租（楼上和楼下可以分开出租）绝佳投资，欢迎莅临
Surrey may be BC’s “second city” but it is the number one place to invest in the province, according to a new report.
It has topped a list of the 10 towns and cities with the best real estate potential.
Surrey’s proximity to major transportation and trade routes, a six per cent growth in businesses last year, and its relative affordability helped push it to the top of the list.
Don Campbell is a senior analyst with the Real Estate Investment Network, which prepared the report.
“So, we’re looking at population growth, job growth, we’re seeing transportation growth and densification. All of those factors are starting to play into Surrey being the outperformer in the whole region.”
He expects Surrey’s real estate market will outperform the rest of the province for the next five years.
“So, you’re starting to see that the demand for secondary suites, the demand for densification is really occurring as the population is growing both in births and in migration.”
Campbell points to a number of other attributes also working in Surrey’s favour.
“Demographics, economics, transportation, location, and, if you said this in any other province there would be laughter but, affordability.”
Second and third were Abbotsford and New Westminster, respectively.
3. New Westminster
8. The Tri-Cities (Coquitlam, Port Coquitlam and Port Moody),
3. New Westminster
8. The Tri-Cities (Coquitlam, Port Coquitlam and Port Moody),
Businesses in Canada remain bullish about the future, shaking off concerns about U.S. protectionism, rising interest rates and the stronger Canadian dollar, according to the Bank of Canada's fall business outlook survey.
The overall mood has cooled a bit from the summer, but the results still "point to continued positive business sentiment across the country, with business activity becoming entrenched," according to the report released on Monday.
The bank characterized business sentiment as "healthy."
For some companies, finding enough good people is becoming a significant challenge. The intensity of labour shortages is now at its highest level since the 2008-09 recession, as companies report growing problems finding qualified workers, particularly in tourism, construction and technology.
"Capacity and labour market pressures have intensified over the past year, suggesting that slack is being absorbed amid robust demand," the bank said.
Typical of the challenge is fast-growing technology company SOTI Inc. of Mississauga, which manages mobile communications for governments and businesses in 22 countries. The company is adding workers at roughly 30 per cent a year to keep up with its growing sales, but struggles to find enough qualified software developers, architects and quality-control personnel.
"I've been in human resources for 15 years and this is definitely the most intense it's been," said Michelle Brooks, SOTI's vice-president of global human resources. "The universities are doing a good job of bringing out great tech talent, but the demand is too intense … It's like going to war every day."
From the Globe and Mail
其中典型的例子就是快速增长的位于密西沙加的SOTI Inc技术公司，管理着22个国家政府和商业的Mobile Communication.公司每年以百分之三十的速度增加员工，以应付快速增长，但是依然因为员工不足而困扰。Michelle Brooks说：“我已经在HR工作了15年了，目前真的是（人力）最紧缺的时候，各个大学已经尽力培养和输送人才了，但是需求太旺，每天就像是在打仗。”
节选自The Globe and Mail
The federal government of Canada has begun cracking down on capital gains taxes, which home owners are only exempt from on the sale of their principal residence.
Laneway homes and rental suites on a property are not exempt from capital gains tax upon the sale of the home, Western Investor editor Frank O’Brien explained to last week’s Real Estate Therapistshow on Roundhouse Radio 98.3FM.
The federal government has introduced a new rule that for the first time requires home owners to declare the sale of their principal residence in their annual income tax return, as of the 2017 tax year. As has been the case for many years, income from rental units – including laneway homes and suites on the property – must also be declared.
This new combination of information will allow the Canada Revenue Agency to see where home sellers are selling a principal residence that has been operating rental suites, leaving the portion of the home that was rented out liable for capital gains tax.
“People have been playing pretty fast and loose with the principal residence exemption on your home… It’s not just foreign buyers, it’s Canadians themselves who have been doing this for years,” said O’Brien.
“The problem now is that there has been rapid price appreciation in places like Metro Vancouver, and increasingly more homes are being allowed on individual lots [and they are required to be rented out or face Empty Homes taxation.]
“If you have a single-family home with two rental suites in the basement and a laneway house, all rented out. Only a third of the house could be said to be the principal residence and the rest is income-producing property and subject to capital gains tax.
“The bottom line is, say you sell the house and it’s worth $3 million. The government says ‘Aha, but $1 million of that property value is not exempt from capital gains.’ … The tax on $1 million, if you’re in the higher tax bracket – which you probably are in this scenario – is $238,500. If you’ve made a $200,000 capital gain, you pay $47,000.”
He added, “So now you have to start thinking, is it worth doing the rentals, because you may lose at the end, if it’s going to be subject to capital gains tax? It could remove these units from the rental pool.”
When asked if this is at odds with the City of Vancouver’s mandate to increase the numbers of basement suites and laneway homes being added to the rental pool, O’Brien agreed.
He said, “This is an indication of how the different levels of government don’t co-operate together on the housing file, with the federal government doing one thing and the province and municipalities doing something else – and the poor homeowner is just trying to follow the rules. But they’re the ones who get blindsided. It’s a great idea to have low-density rentals to help with the mortgages in the most expensive places in Canada – not so great if the homeowner is going to get nailed with huge capital gains tax. And a lot of these are older homeowners who are going to get nailed.”
加拿大联邦政府将全面展开追索出租单位和后巷屋的增值税. 屋主出售自用住宅时固然可以减免增值税, 但是同一个物业内的出租部分和后巷屋则不在减免范围内.
从2017 年度起,联邦政府新规定要求在每年报所得税时必须申报出售自用住宅的所得. 也一如往常地,包括套房和后巷屋的出租所得也都必须申报清楚.
The Bank of Canada is sticking with its trendsetting interest rate of 0.5 per cent, saying uncertainties continue to overshadow the economy's stronger-than-expected start to the year.
In explaining its decision Wednesday to hold the rate, the central bank once again highlighted weak wage growth and the softening rate for underlying inflation as examples the economy still has room for improvement.
The bank's scheduled rate announcement comes after it raised its 2017 growth projection last month following a surprisingly healthy start to the year in areas such as employment, consumer spending and the housing markets. In Wednesday's statement, the bank added better business investment numbers to the list.
"Recent economic data have been encouraging,'' the bank said.
"Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions.''
The bank's statement, however, also predicted that the ``very strong growth'' over the first three months of the year will be followed by some moderation in the second quarter, even though at the same time it expects the U.S. economy to rebound.
One of Canada’s largest mortgage lenders just imploded, and it may have serious consequences for Toronto real estate.
Home Capital Group, a publicly traded company that engages in non-prime (a.k.a. subprime) lending, saw its stock drop over 60% in a single day.
The reason? They’re facing a liquidity crunch, as their capital for subprime mortgages dried up very quickly.
This could be the start of a broader trend of investors derisking, and it may kill a significant segment of high-leverage buyers.
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