Newly Built Homes PTT Exempt (up to $750,000) – Effective February 16, 2016

Chana Charach, MB The Newly Built Home Exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home with a fair market value of $750,000 or less.  (A partial exemption is available up to $800,000) To qualify, you must be an individual and a Canadian Citizen or permanent resident (you will be asked to provide your Social Insurance Number (SIN) and your birth date).  The property must be located in B.C., and used [...]

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Home Sale and Listing Activity Dip Below Historical Averages in October

Source: [Real Estate Board of Greater Vancouver, October 2016] Reduced home sale and listing activity are changing market dynamics in communities across Metro Vancouver. Residential property sales in the region totalled 2,233 in October 2016, a 38.8 per cent decrease from the 3,646 sales recorded in October 2015 and a 0.9 per cent decrease compared to September 2016 when 2,253 homes sold. Last month’s sales were 15 per cent below the 10-year October sales average. “Changing market conditions compounded by a series [...]

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Empty Home Tax (1%) – Effective early 2017

Chana Charach, MB Vancouver city council has voted to approve a tax on empty homes, the first of its kind in Canada. Self-reporting owners will be assessed a one per cent tax on homes that are not principal residences or aren't rented out for at least six months of the year. That means a $1-million home left vacant would be taxed $10,000.  The intention is to tax housing in Vancouver on owners who are treating housing as an investment property.  They are hoping [...]

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Vancouver to Continue to Lead Canadian Economic Growth For the Next Year

[Source: BIV,  November 14, 2016] Vancouver will lead the country in terms of economic growth in both 2016 and 2017, according to a Conference Board of Canada report released November 14. Overall this year, the city will see growth of 4%, driven in large part by the construction sector, followed by an increase of 2.8% next year. “Vancouver is on track to boast the fastest-growing metro area economy for the second straight year in 2016, as the region’s housing market remains one [...]

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New Tax Reporting When You Sell Your Home – Effective 2016 Tax Year

How principal-residence tax changes will affect every Canadian homeowner [Source: Globe and Mail, Oct. 06, 2016] Finance Minister Bill Morneau introduced tax changes that were aimed primarily at foreign investors in Canadian real estate to ensure they abide by our existing tax rules. But the changes also catch many Canadian residents who, in the past, have often inadvertently escaped paying tax on their principal residences. The tax rules around principal residences are so complex that many Canadians simply don’t recognize when they [...]

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How will the new ‘Stress Test’ impact you?

Chana Charach, MB Today's home buyer will be looking at lower purchase price limits now that the new 'stress test' has taken effect. At this point it is impossible to say with absolute clarity what the impact of this change will be. It is estimated that the new 'stress test' will reduce the amount of mortgage that borrowers qualify for by about  20 - 30%.  This will have a significant effect on first time buyers because it will be harder to [...]

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Barry Appleton - BC just violated NAFTA with its foreign property tax - and we could all pay for it

Is the new 15% metro Vancouver real estate tax a violation of our trade treaties?

[ Source:  Financial Post, July 29, 2016 ] The British Columbia government has suddenly introduced a penalty tax forcing non-Canadian purchasers of residential real estate in the Greater Vancouver Regional District to pay a 15 per cent tax on all purchases registered from Aug. 2, 2016. This penalty tax discriminates by definition against foreign investors buying residential real estate in the Greater Vancouver Area: Canadian citizens buying residential real estate are exempt; foreign buyers must pay the tax. That discrimination is a [...]

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3rd Quarter 2016 Canadian Economic Update – Your Dollars & Sense

QUARTERLY HIGHLIGHTS Q3 – JULY 2016 - VERICO’s Economic Consultant, Michael Campbell helps us to understand the impact of the Brexit vote to leave the EU on our markets, what’s going on with mortgage rates, and who is demanding “government do something about high prices in Vancouver”. – A VERICO Exclusive. INTERNATIONAL SCENE Brexit is important because it is a part of a much bigger story. The key to know is that the Brexit vote and demise of the European Union [...]

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Single-family home price declines in Vancouver: Trend or timing?

[ Source:  CTV News Vancouver, July 6, 2016 ] House hunters in East Vancouver were just greeted by a strange but highly unusual sight: six-figure price reductions on several homes. At least two older single-family homes in the Fraser corridor saw reductions of $100,000 in the past two weeks. The price of a three-story fixer-upper on East 18th Avenue near Kingsway dropped a whopping $449,000 -- nearly a full quarter of the asking price -- after sitting stagnant for several weeks of [...]

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Brexit vote could heat up Canadian real estate market

[ Source:  The Globe and Mail, July 4, 2016 ] Realtors in Toronto and Vancouver are pitching Canadian cities as relatively safe property havens now that London, for years one of the world’s leading targets of foreign capital, suddenly looks a lot riskier. Blame it on Brexit. “Brexit’s good for us, not for them,” said Anita Springate-Renaud, owner of Engel & Volkers’ brokerage in Toronto, who expects to field calls from clients seeking to redirect their investments. “We are a safe bet.” If [...]

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