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Pent-up Demand Continues to Build as Sales Remain Slow
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Royal LePage 2024 House Price Survey
Posted on
April 18, 2024
by
Marie Taverna
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How the recent federal government's announcements might impact you
Posted on
April 18, 2024
by
Marie Taverna
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Increased seller activity is giving buyers more choice this spring
Posted on
April 15, 2024
by
Marie Taverna
The number of Metro Vancouver1 homes listed for sale on the MLS® rose nearly 23 per cent year-over-year, providing more opportunity for buyers looking for a home this spring.
Sales
The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512).
"If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer. Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties."
Andrew Lis, REBGV director of economics and data analytics
Listings
There were 5,002 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2024. This represents a 15.9 per cent increase compared to the 4,317 properties listed in March 2023. This was 9.5 per cent below the 10-year seasonal average (5,524).
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,552, a 22.5 per cent increase compared to March 2023 (8,617). This is 6.3 per cent above the 10-year seasonal average (9,923).
Sales-to-active listings ratio
Across all detached, attached and apartment property types, the sales-to-active listings ratio for March 2024 is 23.8 per cent. By property type, the ratio is 18.2 per cent for detached homes, 31.3 per cent for attached, and 25.8 per cent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Even though the market isn’t quite as hot as it was last year, we’re still seeing modest month-over-month price gains of one to two per cent happening at the aggregate level, which is an interesting dynamic given that borrowing costs remain elevated,” Lis said.
“With the latest inflation numbers trending in the right direction, it remains likely that we’ll see at least one or two modest cuts to the Bank of Canada’s policy rate in 2024, but even if these cuts come, they may not provide the boost to affordability many had been hoping for. As a result, we expect constrained borrowing power to remain a challenging headwind as we move into the summer months.”
By property type
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,800. This represents a 4.5 per cent increase over March 2023 and a 1.1 per cent increase compared to February 2024.
Sales of detached homes in March 2024 reached 694, a 5.4 per cent decrease from the 734 detached sales recorded in March 2023. The benchmark price for a detached home is $2,007,900. This represents a 7.4 per cent increase from March 2023 and a 1.8 per cent increase compared to February 2024.
Sales of apartment homes reached 1,207 in March 2024, a 7.9 per cent decrease compared to the 1,311 sales in March 2023. The benchmark price of an apartment home is $777,500. This represents a 5.7 per cent increase from March 2023 and a 0.9 per cent increase compared to February 2024.
Attached home sales in March 2024 totalled 495, a 6.2 per cent increase compared to the 466 sales in March 2023. The benchmark price of a townhouse is $1,112,800. This represents a 5 per cent increase from March 2023 and a 1.7 per cent increase compared to February 2024.
1 Areas covered by Greater Vancouver REALTORS® include: Bowen Island, Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.
Pent-up Demand Continues to Build as Sales Remain Slow
Posted on
April 15, 2024
by
Marie Taverna
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Bank of Canada holds key lending rate at 5% for sixth consecutive time
Posted on
April 15, 2024
by
Marie Taverna
In its third interest rate announcement for 2024, the Bank of Canada chose to hold its overnight lending rate at its current level of 5%. This marks the sixth consecutive hold to the rate since July of 2023.
In its scheduled interest rate announcement for April 10th, Canada’s central bank stated that it would hold the policy rate at 5% in an effort to “continue to normalize the Bank’s balance sheet.”
The Central Bank noted that while the consumer price index and core inflation have eased in recent months, overall inflation and economic risks remain. The Bank said that it will be looking out for evidence that the downward trend in inflation is sustained before moving to make a cut.
Tiff Macklem, Governor of the Bank of Canada, stated in a press conference following the announcement that the Bank does not wish to leave monetary policy this restrictive for longer than its needs to, but cautioned that lowering the policy rate prematurely could jeopardize the progress made to bringing inflation down.
“Based on our forecast and the risks, Governing Council decided it was appropriate to maintain the policy rate at 5%,” said Macklem. “We also concluded that, overall, the data since January have increased our confidence that inflation will continue to come down gradually even as economic activity strengthens. Our key indicators of inflation have all moved in the right direction and recent data point to a pickup in economic growth.”
Is an interest rate cut in sight?
Economists expect that the first chop to rates could come in June. As many as 100 basis points could be cut from the key lending rate this year, experts predict.
Macklem noted that while the Bank is seeing economic factors trend in the right direction for a rate cut, more time is needed to ensure inflation is truly coming under control.
“I realize that what most Canadians want to know is when we will lower our policy interest rate. What do we need to see to be convinced it’s time to cut? The short answer is we are seeing what we need to see, but we need to see it for longer to be confident that progress toward price stability will be sustained,” said Macklam. “The further decline we’ve seen in core inflation is very recent. We need to be assured this is not just a temporary dip.”
The Bank of Canada will make its next announcement on Wednesday, June 5th, 2024.
Read the full April 10th report here.
Royal LePage's Q1 2024 Home Price Update and Market Forecast
Posted on
April 15, 2024
by
Marie Taverna
Buyers reboot purchase plans in Q1 to get ahead of rising home prices, anticipated interest rate cuts
Nationally, home prices increased 2.9% on a quarterly basis in Q1 as more buyers moved off the sidelines
Spring is normally the most active period for Canada’s real estate market – the arrival of warmer weather triggers an increase in buying and selling activity across the country. In 2024, the traditionally-busy spring market kicked off early and is facing additional pressure, as homebuyer hopefuls who have been sitting on the sidelines jump back into the market ahead of anticipated interest rate cuts, and the tight competition and higher home prices that will inevitably follow.
Royal LePage® is forecasting that the aggregate1 price of a home in Canada will increase 9.0% in the fourth quarter of 2024, compared to the same period last year. Based on stronger-than-expected first quarter results, the previous forecast has been upgraded nationally and in most major markets.
“Consistent with our previous forecast, the market did reach a critical tipping point in the first quarter of 2024, when home prices bottomed out and began to appreciate again. Clearly, more and more buyers are motivated by the need to get ahead of rising home prices, rather than adopting the strategy of waiting for mortgage rates to fall,” said Phil Soper, president and CEO, Royal LePage.
How did home prices perform in Q1?
According to the Royal LePage House Price Survey, the aggregate price of a home in Canada increased 4.3% year over year to $812,100 in the first quarter of 2024. On a quarter-over-quarter basis, the national aggregate home price increased 2.9%, an indication that sidelined buyers are rebooting their real estate purchase plans ahead of expected interest rate cuts, as predicted in January.
When broken out by housing type, the national median price of a single-family detached home increased 4.5% year over year to $845,300, while the median price of a condominium increased 3.5% year over year to $591,900.
Toronto and Montreal home price appreciation to outpace Calgary
The aggregate price of a home in the greater regions of Toronto and Montreal are forecast to increase 10.0% and 8.5% year over year, respectively, in the fourth quarter of 2024, outpacing price gains in the city of Calgary, which was previously expected to see the greatest increase in home values this year.
“Last year, while property values dipped in most markets across the country, the Calgary real estate market bucked the trend and continued to record home price gains. While activity levels remain strong and prices continue to rise in Alberta, our research indicates that buyer demand, relative to available inventory, is strongest in the two largest urban centres in the country. We now expect Toronto and Montreal to log the highest home price appreciation this year,” added Soper.
This sustained price appreciation is expected to close the gap between the country’s two most expensive real estate markets, Toronto and Vancouver. While Vancouver remains the nation’s most expensive market today, Royal LePage predicts that the aggregate price of a home in the GTA will surpass Greater Vancouver in the second half of 2024.
Busy spring, busier fall, on the cards for 2024
Within the first months of the new year, the Canadian housing market has already recorded solid price appreciation and higher sales activity. Starting in July of 2023, the Bank of Canada has held rates steady through six review periods. This has prompted many homebuyers to come off of the sidelines in advance of what they expect will be a more competitive spring market that will drive home prices higher.
“Given the strong start to 2024, the cadence of the market for the balance of the year points to a normally busy spring market that will lead into an uncomfortably busy fall. It is clear we are rapidly transitioning away from a buyers’ market and back to an environment where the seller has the upper hand,” noted Soper.
Read Royal LePage’s first quarter release for national and regional insights.
First quarter press release highlights:
- Among major regions, Calgary recorded highest year-over-year aggregate price appreciation (9.7%) for the second consecutive quarter; increased 1.9% on a quarterly basis
- 89% of regions in the report recorded quarterly price appreciation in the first three months of the year, ahead of the traditionally busy spring market period
- Royal LePage expects home prices in the Greater Toronto Area will surpass those in Greater Vancouver in 2024
Fact sheet: Information about the GST on new housing
Posted on
April 15, 2024
by
Marie Taverna
The five per cent Goods and Services Tax (GST) applies to the purchase price of new residential homes in BC, including:
- a newly built home;
- a substantially renovated home;
- a presale condominium or townhome;
- an assignment of the contract for a new home;
- a new mobile or floating home; and
- vacant land.
If your client buys a new home, they'll pay the five per cent GST at completion, as per the contract of purchase and sale. The home can be fee simple or on leased land.
First Nations may charge their own GST. For example, the Tsawwassen First Nations levies a First Nations GST.
Property that has already been used for residential purposes is GST exempt. The GST should've been paid when the property was new.
Learn more
- Real property and the GST/HST
- Sale and building of leased land, Section 40
- First Nations Goods and Services Tax Act (includes a list of First Nations which charge FNGST)
- Tsawwassen First Nation implements the First Nations Goods and Services Tax Act
GST new housing rebate
If your client buys a newly built residential property, the builder must collect and remit the GST on the sale. The buyer then applies for a GST rebate. The buyer should keep all paperwork that proves the GST has been paid in case there's a question later.
Your client may be eligible for a GST rebate under these circumstances:
- They buy, as their primary residence, a new home priced up to $450,000. The rebate is equal to 36 per cent of the five per cent GST paid on the first $350,000 of the price of a new home. The GST rebate is phased out for homes priced between $350,000 and $450,000. New homes priced at $450,000 and above receive no GST rebate.
- They buy a substantially renovated home in which all or, substantially all, of the existing building has been removed or replaced.
- They build or substantially renovate their own primary residence and the fair market value of the home (not what it cost to build) is no more than $450,000.
Learn more
- CRA GST New Housing Rebate
- CRA Guide RC4028, New Housing Rebate
- CRA GST Rebate for owner-built homes
GST on renovations/rebuilds
If your client buys a home and tears it down or substantially renovates and rebuilds it, they must pay the GST because the home is considered to be a new home for GST purposes. The owner is considered a “builder” who has repurchased the new home at its fair-market value. The owner must self-assess the GST and remit it to the CRA when construction is completed. The owner may be eligible for a GST rebate.
Learn more
GST and presale agreements
The five per cent GST is due when ownership and possession take place.
Under a presale agreement, the GST on the deposit amount isn’t payable when the deposit is made. Instead, the buyer pays the full amount of GST owing when the deal completes and they take ownership and possession.
However, under a presale agreement, if the buyer makes partial payments following the deposit, but before ownership and possession occur, the buyer must pay GST on each partial payment to the builder. When the deal completes and they take ownership and possession, the buyer pays the remaining amount of the GST.
GST on assignment sales
GST is applicable on all assignment sales of new or substantially renovated homes. Previously, an assignor may not have paid the GST on the assignment amount if they intended to reside in the property as their principal residence. However, under new rules, the GST is now payable by the assignor on any assignment amount.
The assignor is required to pay GST on the assignment amount, commonly called the lift.
GST isn't payable by the assignor on the total purchase price as the developer received the GST on the original purchase price portion and will be required to remit that.
GST is also not payable on the return of the deposit amount as this amount isn't income.
Example
For an example, let’s look at a residential pre-sale with an original purchase price of $800,000 and an assignment purchase price of $900,000, between a developer (who's a GST registrant) and an assignor and buyer who aren't GST registrants.
The buyer/assignee would pay:
- Original purchase price: $800,000
- GST on purchase price: $40,000
- Assignment amount: $100,000
The assignor would receive:
- Assignment amount: $100,000
- Brokerage commission, as applicable
- GST on Assignment amount
- Income tax on assignment amount
The assignor, following receipt of the assignment amount (which will include both the GST and Income Tax portions payable), will need to engage an accounting firm to make this payment to Canada Revenue Agency (CRA) within 30 days of the completion date of the transaction.
Learn more
- Federal Budget 2022: taxation of property flipping. GST and Assignment Sales, BC Real Estate Association
Assignment of a purchase and sale agreement for a new house or condominium unit, CRA
Vacant land
The five per cent GST is applied to the sale of vacant land if:
- the land is purchased from a developer;
- the land was used for business purposes at any time in the past, even if the land was purchased from an individual;
- the land was subdivided into more than two lots (three or more), even if the land was purchased from an individual; or the land is capital property used primarily in a business.
Learn more
GST and new manufactured buildings and floating homes
There are three types of manufactured buildings:
- manufactured portable buildings – includes floating homes and commercial use buildings, for example, construction site office;
- manufactured mobile homes – a house trailer parked in one place, used as a permanent living accommodation; and
- manufactured modular homes – a prefabricated home that consists of multiple sections or modules that are joined together on-site on a foundation to make a single building.
If your client buys a newly constructed or substantially renovated mobile home or floating home, they'll pay the five per cent GST and can claim applicable rebates.
When leasing a new manufactured building, the GST applies only to the lease of a new manufactured portable building used for commercial use.
GST and used manufactured buildings
If your client buys or leases a used manufactured building for residential use, the GST doesn't apply to the sale.
However, if your client purchases or leases a used manufactured building for commercial use, then the GST does apply.
Shares in a co-op
If your client bought shares in a co-operative housing complex for use as a primary residence, your client may qualify for a GST rebate.
Learn more
- CRA Rebate for cooperative housing
- CRA GST525 Supplement to the New Residential Property Rebate Application – Co-op and Multiple Units
GST and vacation property
Vacation property is property bought by an individual for personal use, short-term rental use (less than one month), or a combination of these two.
Vacation property includes detached and semi-detached houses, rowhouses and townhouses, and condominiums.
Generally, if your client buys a new vacation property, they’ll be required to pay the GST if the property is not used primarily (more than 50 per cent) as the vendor's primary residence and all or substantially all (90 per cent or more) of the rentals of the property are for periods of less than 60 days.
If your client plans to buy a vacation property and rent it as a short-term rental, they must register for the GST and get professional tax advice.
Read: The GST/HST and the Purchase, use and Sale of Vacation Properties by Individuals.
GST and commercial property
Commercial properties are subject to the GST.
Learn more
Exemptions
Residential property exempt from the GST includes:
- the sale of an owner-occupied home if the home is bought and used primarily (more than 50 per cent) for personal use;
- used residential rental property for rent for periods of more than 30 days;
- the sale of a builder’s personal residence; or
- a residential property converted to an office – for example, an entire house converted to a dentist’s office.
Removal of GST on new rental construction
The removal of GST will apply to new purpose-built rental housing, such as apartment buildings, student housing, and senior residences built specifically for long-term rental accommodation.
The GST Rental Rebate increases to 100 per cent from 36 per cent and removes the existing GST Rental Rebate phase-out thresholds for purpose-built rental housing projects. The enhanced GST Rental Rebate applies to projects that began construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.
Learn more
Commissions and fees
The GST is applied to REALTOR® commissions and fees.
The standard multiple listing contract advises that the commission or fee is payable on the earlier of the following:
- the completion date under the Contract of Purchase and Sale; or
- the actual date that the sale completes.
If you have questions, contact the GST office at 1-800-959-5525.
PST
The seven per cent Provincial Sales Tax (PST) doesn’t apply to sales of real property. The PST applies to construction inputs are used to construct or improve real property.
The PST doesn’t apply to Realtor commissions and fees. PST does apply to legal and notary fees.
Learn more
BC brings in anti-flipping legislation
Posted on
April 15, 2024
by
Marie Taverna
- BC NDP government introduced home flipping tax legislation in line with their February 2024 budget promise.
- Bill 15 2024 imposes a tax on profits from the sale of residential properties owned for less than 730 days, effective January 1, 2025.
- Tax rates range from 20 per cent for sales within a year to no penalty after two years, with exemptions for certain life circumstances and real estate development activities.
The BC NDP government has followed through on a February 2024 budget promise and introduced legislation to tax home flipping, beginning in 2025.
Bill 15 2024: Budget measures implementation (Residential Property (Short-term holding) Profit Tax) Act, known as the home flipping tax, applies to income from the sale of a property, including presale contracts, in BC if the property was owned for less than 730 days.
Types of properties
The tax will apply to income earned from the sale of:
- residential properties with a housing unit;
- properties zoned for residential use; and
- the right to acquire properties, such as the assignment of a purchase contract for a pre-build condo building.
Presale contracts
If your client enters into a presale contract to buy a property under development, and buys the property – they close on the property once it is complete, for the purposes of the two-year window of the tax – they’ll be considered to have acquired it on the date they entered into the presale contract.
If your client is assigned a pre-sale contract and then closes on the built property, the acquisition date is the date they were assigned the contract.
When your client assigns a presale contract to another person within two years of entering into the presale contract, they’ll pay tax on any income received from the assignment.
Tax amount
The tax applies to:
- individuals or companies selling property; and
- net taxable income from the sale of taxable property that was owned for less than 730 days.
The tax is:
- 20 per cent tax on profits of homes sold within a year of purchase.
- 10 per cent if sold after 18 months.
- Not applied if your client sells after two years.
Key dates
The tax is effective on January 1, 2025. Residential property bought before this date may be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days unless an exemption applies.
For example:
- If your client purchased a property on May 1, 2023, and sold the property on January 31, 2025, income earned from the sale of the property would be taxable.
- If your client decided not to sell the property until June 1, 2025, then income earned from the sale would not be subject to the tax since your client owned the property for more than 729 days.
The property seller may be a BC resident or a resident anywhere else in the world.
Exemptions
There are exemptions for:
- life circumstances including separation or divorce, death, disability or illness, relocation for work, involuntary job loss, a change in household membership, personal safety, or insolvency; and
- those adding to the supply of housing or engaging in real estate development and construction.
The tax doesn’t apply to Indigenous Nations, charities, governments and government-owned corporations, and non-profits.
Primary residence deduction
If your client sells their primary residence and they owned the property for less than 730 days, they may qualify for a deduction of up to $20,000 from their taxable income if:
- they owned the property for at least 365 consecutive days before they sold it; or
- the property includes a housing unit that they lived in as their primary residence while they owned it.
If your client sells a portion of their interest in the property, their primary residence deduction amount will be proportionate to that interest.
More information available
The Ministry of Finance has provided more details on their website, including how the tax is calculated and additional examples related to pre-sales.
Note: the BC home flipping tax is NOT the federal property flipping rule, which is a separate federal tax.
Starting a Backyard Garden
Posted on
April 7, 2024
by
Marie Taverna
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Selling your Home when You’re “Crazy-Busy”
Posted on
April 7, 2024
by
Marie Taverna
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| And, who knows what the market will be like later in the year? The good news is, you can sell your home, even if you’re busy. There are plenty of ways to reduce the time, effort and stress involved. The first step is to find out what needs to be done. Make a list. Turn that list into a plan and get that plan down on paper. That way, the process won’t just live in your imagination — where it might seem much bigger and more intimidating than it really is. Instead, it will be realistic and practical. The next step is to see what can be done by others. If your schedule is already hectic, you want to minimize what you do on your own and outsource where possible. For example, you could hire a cleaning company, junk removal service, professional stager, and/or tradesperson. Of course, you’ll need to weigh that expense against the time you’d save, but it is often worth it. Staying organized is also essential. When you’re busy, effective organization tools — to-do lists, calendar, scheduling app, etc. — will be your best friends. The more organized you are, the more you’ll feel on top of things. Finally, get talking to professionals who are going to be able to help you — and even shoulder some of the heavy lifting. The bottom line? Don’t let being “crazy-busy” prevent you from taking advantage of the opportunity to sell your home. |
Fix it or Leave it As Is?
Posted on
April 7, 2024
by
Marie Taverna
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But, how do you decide whether to invest in fixing or improving something versus just leaving it as is?
Once you have those answers, you’ll be in a much better position to make that decision. |
Everything You Wanted to Know About Short-Term Rental Changes
Posted on
April 7, 2024
by
Marie Taverna
Posted by
Peter Borszcz
Montgomery Miles & Stone Law Firm
Peter Borszcz
Montgomery Miles & Stone Law Firm
In an effort to increase the supply of long-term residential housing, the BC Government has introduced the Short-Term Rental Accommodations Act) which will have substantive effects on many individual homeowners.
In brief, the legislative changes include:
- Limiting short-term rentals to the host’s principal residence plus one secondary suite or accessory dwelling unit (ADU) in most major BC communities (populations of 10,000 or more or adjacent communities) effective on May 1, 2024.
- Empowering regional districts to license short-term rentals located outside municipalities.
- Data sharing from short-term rental platforms is required to monitor and enforce the rules.
- Removal of legal non-conforming use or grandfathering of historical short-term rental use.
- Creation of a provincial registry for short-term rentals and a compliance and enforcement unit.
These rules exclude hotels, motels, strata hotels, timeshares, fishing lodges, First Nations reserve lands, and modern treaty lands (unless those First Nations opt in).
Importantly, the new rules serve as a baseline for the province, but they do not supplant stricter municipal restrictions; for example, the City of Kelowna has recently removed short-term rentals as a secondary use for all zones.
The new legislation will affect real estate across British Columbia. Here are some common questions from REALTORS® across the province:
Q: How do we advise clients who currently own short-term rental accommodations?
A: Clients should be aware that the new provincial Short-Term Rental Accommodations Act will come into force as of May 1, 2024. This Act is in addition to any municipal rules and strata bylaws that already apply. Clients should examine whether their use complies with the new law.
Q: I have a listing in a small or resort municipality; how do I know if the new short-term rental accommodations principal residence requirement applies here?
A: There are several exemptions: small and resort municipalities, mountain resort and electoral areas (including the Gulf Islands), and most municipalities with a population under 10,000 people (except those adjacent to larger municipalities; e.g., Highlands, Belcarra, Anmore, Qualicum Beach, Peachland). Small exempt municipalities, which are initially exempt from the principal residence requirement in the legislation, may opt in. Realtors should check the list of included and exempted municipalities as part of their due diligence (see the full list here).
Q: How do I advise buyers looking to purchase short-term rental accommodations?
A: The current housing shortage in British Columbia is prompting governments at all levels to respond in various ways. Clients should be aware that laws are constantly changing, and current permitted uses may change. Buyers looking to purchase short-term accommodations should be aware that a number of laws have been recently amended to address the housing shortage, including local bylaws, provincial laws (e.g., Short-Term Rental Accommodations Act, Speculation and Vacancy Tax, etc.), and federal laws (e.g., Foreign Buyers Ban, Underused Housing Tax, etc.), which may affect their intended and future uses. REALTORS® should draft specific subject conditions to allow buyers to do the legal due diligence necessary to determine if the target property will support short-term rental use.
Q: One of my clients purchased a pre-sale condo and intends to use it for short-term rentals. With the introduction of the legislation, do they now have a new right of rescission for a material change after their initial 7-day recission right has passed?
A: This will depend on the nature of the pre-sale condo development, the contract, and the disclosure statement applicable for that unit. Developers are required to provide continuous and accurate disclosure, and affected buyers should be advised to seek immediate legal advice specific to their situation.
Q: If I am listing a property that is currently a short-term rental, do I need to disclose the change in the law?
A: The change in law has been published and advertised by the government; therefore, this would not be considered to be a material latent defect and would not require separate Rule 59 disclosure. There may be practical reasons that a REALTOR® and a client may choose to provide this as prudent additional disclosure (for example, to ensure a smooth closing); however, this should only be done with your client's specific direction.
Q: A local strata building wants to petition the mayor to “opt-out” of these provisions. Are they able to do so?
A: While the legislation has “opt-out” mechanisms for local government where the rental vacancy rate is 3 per cent or higher for two or more years, these provisions are limited and only apply to a geographic area, not a specific building or parcel. There is no mechanism in the legislation for a single property or building to be exempted, even if the local government desires this.
These legislative changes will affect buyers, sellers, strata corporations, and developers differently depending on each client's unique circumstances. As these are general guidelines only, REALTORS should ensure that their clients obtain legal advice specific to their respective clients' circumstances.
More information on how these changes affect BC's real estate is available from BCREA and BC Financial Services Authority.
Without limiting the Terms of Use applicable to your use of BCREA's website and the information contained thereon, the information contained in BCREA’s Legally Speaking publications is prepared by external third-party contributors and provided for general informational purposes only. The information in BCREA’s Legally Speaking publications should not be considered legal advice, and BCREA does not intend for it to amount to advice on which you should rely. You should not, in any circumstances, rely on the legal information without first consulting with your lawyer about its accuracy and applicability. BCREA makes no representation about and has no responsibility to you or any other person for the accuracy, reliability or timeliness of the information supplied by any external third-party contributors.
Create a personalized kids room that will grow with your child
Posted on
April 3, 2024
by
Marie Taverna
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Your tax guide to navigating homeowner and first-time buyer deductions this season
Posted on
April 3, 2024
by
Marie Taverna
As the April tax deadline approaches, understanding the plethora of tax credits available can be a game-changer for homeowners and first-time buyers.
Whether you're stepping into your first home or you're a seasoned homeowner, being aware of these deductions and programs can significantly impact your tax filings and maximize your return this season.
GST/HST new housing rebate
- What is it? Recoup a portion of the GST or the federal part of the HST paid for new or renovated homes.
- Eligibility: Buyers of new homes, constructors of homes, or individuals who have majorly renovated their primary residence.
- Qualifying homes: New or substantially renovated primary residences.
- Claim process: Submit your claim within two years after the purchase or completion of renovations.
First-Time Home Buyers' Tax Credit (HBTC)
- What is it? A $10,000 non-refundable tax credit for eligible first-time home buyers, offering up to $1,500 in tax relief.
- Eligibility: First-time homebuyers or those who haven’t owned a home in the previous four years, including the buyer's spouse or common-law partner.
- Qualifying homes: Primary residences in Canada.
- Claim process: Claimed in the tax year when the home is purchased, on line 31270 of your tax return.
Home Accessibility Tax Credit (HATC)
- What is it? Offers a 15% non-refundable tax credit on up to $10,000 of eligible home renovation expenses, for a maximum of $1,500 in tax relief per year.
- Eligibility: Homeowners making accessibility-related renovations to accommodate seniors or individuals with disabilities.
- Qualifying renovations: Changes made to improve accessibility or help a senior or a person with a disability be more functional or mobile at home.
- Claim process: Claimed in the tax year when the expenses were incurred.
Multigenerational home renovation tax credit
- What is it? Provides up to $7,500 in tax relief for eligible renovations to accommodate a senior family member or an adult with a disability.
- Eligibility: Homeowners undertaking renovations to create a secondary dwelling for a senior or a person with a disability.
- Qualifying renovations: Renovations that enable the senior or adult with a disability to live with a relative in a secondary dwelling.
- Claim process: Available for expenses incurred after the tax year it was introduced.
Rental income deductions
- What is it? Allows landlords to deduct expenses related to generating rental income, including mortgage interest and property taxes.
- Eligibility: Property owners who earn rental income from residential or commercial properties.
- Qualifying expenses: Mortgage interest, property taxes, maintenance costs, utilities, and insurance.
- Claim process: Expenses are deducted in the tax year they are incurred.
Note this list isn't exhaustive, and specific provinces may offer additional deductions and credits not covered here.
Notice on Canada's Underused Housing Tax (UHT)
Effective since 2022, Canada's UHT imposes a 1% tax on underused foreign-owned properties, though it also has tax filing implications for those with rental units, or with properties held in partnerships or bare trust agreements, in order to claim exemptions. Anyone impacted by this tax is strongly encouraged to consult a tax professional to ensure adherence and avoid penalties.
If you have any questions about navigating these tax credits, please don't hesitate to reach out.
Should you need more detailed tax advice, I'd be happy to refer you to a certified tax professional who can provide you with personalized guidance and inform you of other programs that may apply to your situation. Let's make sure you're getting the most out of your home-related tax opportunities this season!
Call me today!
Tracey Ridout (BC)
Mortgage Agent
(604) 760-6917
tracey.ridout@mortgagegroup.com
Increased seller activity is giving buyers more choice this spring
Posted on
April 3, 2024
by
Marie Taverna
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The number of Metro Vancouver1 homes listed for sale on the MLS® rose nearly 23 per cent year-over-year, providing more opportunity for buyers looking for a home this spring.
“If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer,” Andrew Lis, GVR’s director of economics and data analytics said. “Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties.”
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| Download the March 2024 stats package |
Bank of Canada holds overnight lending rate at 5%
Posted on
March 25, 2024
by
Marie Taverna
For the fifth consecutive time, the Bank of Canada has chosen to hold its overnight lending rate at its current level of 5%.
In its scheduled interest rate announcement for March 6th, Canada’s central bank declared that it would hold the policy rate at 5% and “continue to normalize the Bank’s balance sheet.”
Although the annual rate of inflation fell to 2.9% in January, the Bank pointed to underlying inflation factors, such as shelter costs, as justification for keeping rates where they are. In its announcement, the BoC stated that it would like to see further easing of inflation and price stability in the economy before it begins making cuts.
“In the six weeks since our January decision, there have been no big surprises. Economic growth has remained weak, and inflation has eased further as higher interest rates restrain demand and relieve price pressures. But with inflation still close to 3% and underlying inflationary pressures persisting, the assessment of Governing Council is that we need to give higher rates more time to do their work,” said Tiff Macklem, Governor of the Bank of Canada, in a press conference following the Bank’s decision.
When will interest rates come down?
Though there has been no cut to the overnight lending rate in almost four years, economists anticipate that the BoC will begin to reduce rates later this year – possibly in its scheduled June announcement – if inflation reduces further towards the central bank’s target of 2%.
The Bank of Canada will make its next announcement on April 10th, 2024.
Read the full March 6th report from here.
CONTRIBUTOR
Michelle McNally
Communications manager, Royal LePage
Michelle is a member of Royal LePage’s Communications and Public Relations team, and works to deliver unique and insightful Canadian real estate content to media and consumers. Prior to joining Royal LePage, Michelle was an online reporter specializing in Canadian real estate and pre-construction development. She is a graduate of Toronto Metropolitan University’s esteemed journalism program.
Top paint colours of 2024
Posted on
March 25, 2024
by
Marie Taverna
As we approach the start of spring, you may be thinking about all of the projects around the house that you can finally start when warmer weather arrives – opening up the pool, adding those perennial flower beds to your lawn, or perhaps changing up your wall colours.
If you’re thinking about adding a fresh coat of paint to your interior spaces, why not take some inspiration from the most influential paint brands around?
Here are the 2024 colours of the year:
Pantone: Peach Fuzz (13-1023)
This warm and cozy shade of pink evokes “our desire to nurture ourselves and others,” according to Pantone. A lighter and softer hue compared to 2023’s Viva Magenta, Peach Fuzz promotes a sense of welcoming and comfort, making it an ideal colour for relaxation spaces, such as a bedroom or living room. Peach Fuzz pairs well with similar hues of pink, maroons and purples, or jewel tones.
Behr: Cracked Pepper (PPU18-01)
Designed to promote feelings of “confidence and individuality,” this versatile soft black created by Behr can be easily paired with a variety of colour swatches. Whether you’re looking for a dark accent wall in your living area, or a bold statement shade in the dining room, Cracked Pepper transcends various interior design trends, textures and moods.
Sherwin-Williams: Upward (SW 6239)
If you want a room to feel like a breath of fresh air, then adding Upward to your walls is the way to go. This silvery-blue hue feels light and breezy, stimulating feelings of calmness and creativity. Sherwin-Williams recommends complimenting this soft blue with grays, melon green or deep shades of navy.
Glidden: Limitless (PPG 1091-3)
Breaking away from typical shades of gray and white, Glidden has proclaimed Limitless as the new go-to neutral. This soft yellow is said to liven up spaces with ease, complimenting both warm and cool colours, whether you choose to pair Limitless with an earthy green, warm beige or rust-coloured red. It’s a colour for all seasons.
Benjamin Moore: Blue Nova (CC-860)
Borrowing inspiration from “the hues experienced through travels and moments that span beyond routine,” this Benjamin Moore bold blue can be used in both modern and traditional interiors. Blue Nova is well-suited for pairing with shades of ivory, burnt orange or colourful pastels.
CONTRIBUTOR
Michelle McNally
Communications manager, Royal LePage
Michelle is a member of Royal LePage’s Communications and Public Relations team, and works to deliver unique and insightful Canadian real estate content to media and consumers. Prior to joining Royal LePage, Michelle was an online reporter specializing in Canadian real estate and pre-construction development. She is a graduate of Toronto Metropolitan University’s esteemed journalism program.
4 key considerations when switching to natural cleaning solutions for your home
Posted on
March 25, 2024
by
Marie Taverna
More and more, people are adopting greener lifestyles, whereby daily choices are made to significantly improve not only personal well-being, but the health of the planet too.
Homeowners are embracing the eco-friendly movement by making conscious decisions about the products they bring into their homes. This includes cleaning supplies, as they are known to contain chemicals that are harmful when ingested, inhaled, or come into contact with our skin.
If you’ve been thinking about switching out commercial cleaning products for a greener cleaning solution, then keep reading. We’ve got you covered with four key considerations when making the move to all-natural cleaning products.
Be sure to read to the end for a comprehensive list of cleaning ingredients you can use if you prefer the DIY route.
1. Harness the power of natural cleaning solutions
Sometimes people are hesitant to switch to natural cleaning products because they’re unsure if they will actually clean or disinfect surfaces. In most situations, natural cleaning products are strong enough to take care of everyday cleaning in your home. If you’re wondering which products are effective, click here for HGTV’s list of ‘The Best Natural Home Cleaning Products’.
2. Utilize bulk cleaning products
For additional sustainability and to cut down on single-use plastics, consider investing in refillable glass spray bottles to use with a bulk supply of cleaning liquids or tabs. Not only are you saving money, but displaying glass bottles can add to the aesthetic of your home. Many major retailers have several refill options available in a variety of pleasant scents to personalize your cleaning experience.
3. Avoid these ingredients
When it comes to selecting household cleaners, it’s crucial to be wary of greenwashing. Greenwashing refers to companies falsely marketing their products with misleading wording or packaging, while persuading the consumer to believe the product is natural or healthy.
Many mainstream cleaning products contain harmful ingredients, and even go as far as including known carcinogens. Protect yourself by reading the label, avoiding harsh chemicals and ensuring the cleaning solutions you are purchasing contain organic and biodegradable substances.
Some examples of chemicals to avoid include ammonia, chlorine, phosphates, synthetic fragrances, parabens, butoxyethanol, ethanolamine, sulfates, phthalates, phenols and triclosan.
4. Integrate DIY options into your cleaning routine
New to do-it-yourself cleaning products? Making your own cleaning products is cost-effective and eco-conscious. Organic, biodegradable ingredients like vinegar, baking soda, and essential oils can be combined to create effective cleaning solutions. Be sure to do your research when creating a disinfecting solution – potency is important!
Here is a comprehensive list of ingredients that are commonly used in natural cleaning products and you can use them:
- Lemon: Effective degreaser with a fresh scent.
- Vinegar: Mix equal parts water and vinegar for an all-purpose cleaner to use for windows, glass, and general surface cleaning. Bonus: Click here for a list of things NOT to clean with vinegar
- Baking Soda: Add water to create a paste for a gentle exfoliating cleaner.
- Essential Oils: Add a few drops to natural cleaners for a pleasant fragrance.
- Bonus tip: Many essential oils have additional antibacterial properties
- Castile Soap: Dilute with water to create a versatile all-purpose cleaner, or a foaming hand soap.
- Olive Oil: Mix with lemon juice for a natural wood polish that leaves surfaces shiney and repels dust.
- Hydrogen Peroxide: Use as a disinfectant for kitchen and bathroom surfaces.
- Rubbing alcohol: Use to remove stickiness from surfaces, or mix with water for a disinfectant or window cleaner.
As with any other cleaning product you use for the first time, complete a spot-test to avoid possible damage to your home.
These natural cleaning solutions will help kick-start your transition into cleaning products that are healthy for your family and the environment.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.