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Harvey Spector

The BC Real Estate Discussion Thread

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The problem with the Vancouver real estate market is simple, there is simply too much demand than the supply that is available. While Vancouver is increasing in population, the amount of high- residential buildings getting built is not catching up. Vancouverites simply like thier scenery and lifestyle too much to let so many high residential buildings get built quickly. As of result too many big houses taking up the space that otherwise could have housed over a thousand people by simply building up.

 

Apartments are more affordable than homes and if there were more built, the prices would become more affordable.

Edited by smokes

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3 hours ago, smokes said:

The problem with the Vancouver real estate market is simple, there is simply too much demand than the supply that is available. While Vancouver is increasing in population, the amount of high- residential buildings getting built is not catching up. Vancouverites simply like thier scenery and lifestyle too much to let so many high residential buildings get built quickly. As of result too many big houses taking up the space that otherwise could have housed over a thousand people by simply building up.

 

Apartments are more affordable than homes and if there were more built, the prices would become more affordable.

That's part of the problem for sure. Another major factor contributing to that is corruption. There's a lot of people working together to stifle production of condos. They work to ensure that not enough ever get built and the price remains as high as possible. Having a huge percentage of condos and homes vacant also doesn't help. 

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lets get back on track with real estate questions.  I have a .96 of a acre lot that I can sub divide because the by law says I only need .43 of an acre lot in my area.  Now my question is if I wanted to sell would it be worth splitting it up or just leave it for the next guy and use it as a selling feature?

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So true. With what is happening around the world..

 

-Possibility of US fed rate increase.

-Increasing consumer debt and people living pay cheque by pay cheque

-Oil price drop

-Middle East instability

-Asian market tumble

-Increasing inflation

 

Yes of course Vancouver and Toronto real estate will be okay. We will have foreign money pouring in and who cares about money laundering right? We will weather all storm. Buy buy buy...

 

Government will one point needs to decide whether to control inflation or continue to let debt increase.

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2 hours ago, Lillooet_Hillbilly said:

lets get back on track with real estate questions.  I have a .96 of a acre lot that I can sub divide because the by law says I only need .43 of an acre lot in my area.  Now my question is if I wanted to sell would it be worth splitting it up or just leave it for the next guy and use it as a selling feature?

I would just leave it for the next guy.  It would cost you thousands of dollars out of your pocket to get the property subdivided before you actually sold it.  Leave it for the buyer to pay those costs, or at the very least work it into the selling price.  

 

However, I would check with a local realtor to see how the market is with half acre lots in your area and what those prices are. Have you been able to do that yet?  Where is the acreage located?

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thanks harvey. half acre lots are going for pretty much what i paid for the whole thing years ago. Its located in town (which town is only less then 10km from one end to the other) great location school on the same block quiet street blah blah blah allowed 2 horses on the lots chickens and all that jazz but I was unsure of what to fully do weather to sub divide sell or build a new house to lock up sell or just drop a cheap trailor on it and sell. there are 2 rental trailors (pretty much side by side) used to be a house untill it burned (was grandfathered in when our area was voted into town limits) so can't rebuild a house on the other side of the lot since it would be 3 dwellings on a acre lot

 

Edited by Lillooet_Hillbilly

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3 minutes ago, Lillooet_Hillbilly said:

thanks harvey. half acre lots are going for pretty much what i paid for the whole thing years ago. Its located in town (which town is only less then 10km from one end to the other) great location school on the same block quiet street blah blah blah allowed 2 horses on the lots chickens and all that jazz but I was unsure of what to fully do weather to sub divide sell or build a new house to lock up sell or just drop a cheap trailor on it and sell

If it's now worth double then sell as a double lot or sell off one lot and keep the other for yourself, so in effect your lot is free.  

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Just now, Lillooet_Hillbilly said:

I got another acre lot I want to build on so I was looking to get rid of the whole thing

 

Cool, then list it for sale as a double lot.  If someone wants to pay you the same price to keep it as one lot so be it.  As long as you get the value of the two lots in your pocket you should be good.

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Quick Update for Greater Vancouver:

 

Sales for Sept. 1-11, 2016:

 

Detached homes - 181

Attached homes (condos and townhomes) - 413

 

Sales for Sept. 1-11, 2015:

 

Detached homes - 455

Attached homes (condos and townhomes) - 739

 

So sales are down 60% for detached homes from the same period last year and 44% for attached homes...

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6 hours ago, Lillooet_Hillbilly said:

lets get back on track with real estate questions.  I have a .96 of a acre lot that I can sub divide because the by law says I only need .43 of an acre lot in my area.  Now my question is if I wanted to sell would it be worth splitting it up or just leave it for the next guy and use it as a selling feature?

Depends where you live and costs of things like DCCs, rezoning applications etc. You will get less if you sell it as is, but it will cost you out of pocket to get it subdivided. Its better to leave it to the pros (developers)

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31 minutes ago, Harvey Spector said:

Quick Update for Greater Vancouver:

 

Sales for Sept. 1-11, 2016:

 

Detached homes - 181

Attached homes (condos and townhomes) - 413

 

Sales for Sept. 1-11, 2015:

 

Detached homes - 455

Attached homes (condos and townhomes) - 739

 

So sales are down 60% for detached homes from the same period last year and 44% for attached homes...

Harvey, these are not accurate... you know why. 

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43 minutes ago, Realtor Rod said:

Harvey, these are not accurate... you know why. 

I didn't use the sold date I used the processed date. You can add it as a customized field on Paragon...

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1 hour ago, Harvey Spector said:

I didn't use the sold date I used the processed date. You can add it as a customized field on Paragon...

But there is still a lot of deals not handed in or submitted to the board. I have 2, so you can add at least 2 and there will be many more. It has declined but there is NEVER a live sold data.

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27 minutes ago, Realtor Rod said:

But there is still a lot of deals not handed in or submitted to the board. I have 2, so you can add at least 2 and there will be many more. It has declined but there is NEVER a live sold data.

Those deals will be processed at a later date when the board gets them. So they will count for next weeks numbers or whenever you hand them in.  That's why the board uses the processed date instead of the sold date. 

 

I'm sure at the end of each month the board is stil getting deals submitted to them and processed but they release the numbers regardless. That's because deals that come in later are used in next months data. Some of the deals that are included in my numbers are deals with sold dates in July and August. So you will never have a real time number for any month. 

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HOUSING

CRA launches review of B.C. real estate speculators

 

The Canada Revenue Agency has launched a review into the actions of B.C. real estate speculators in light of a Globe and Mail report that uncovered possible tax evasion and fraud.

On the weekend, the B.C. government urged the CRA to track down tax cheats and toughen up its rules after a Globe investigation showed a network of speculators flips homes for a profit and evades taxes by classifying them as principal residences even though they never lived there.

“Like all Canadians, I am very concerned over allegations that some wealthy Canadians are not paying their fair share of taxes,” Diane Lebouthillier, the minister responsible for the Canada Revenue Agency, said in statement on Monday. “That is unacceptable and I’ve since asked Canada Revenue Agency officials to look into the specifics of the case that was reported by the Globe and Mail recently.”

Ms. Lebouthillier said the agency had already stepped up audits and investigations in Ontario and British Columbia, and that several real estate files are under review to determine whether a criminal investigation should be launched. The minister’s office declined to provide more details because they cannot comment on specific cases.

The Globe investigation revealed how Vancouver real estate speculator Kenny Gu paid next to nothing in taxes last year while millions of dollars flowed through his personal and corporate bank accounts.

A former employee of Mr. Gu, Demetre Lazos, said he tried to alert the CRA and the local police, but came to The Globe and Mail with detailed documentation after his tips received little attention from Ottawa and the police.

A CRA auditor who requested anonymity also told The Globe the agency’s auditors lack the experience needed to track down foreign income. The auditor said federal officials fear the agency could be seen as targeting the Chinese community if it cracks down on some activities.

“Management has known of this issue for at least three years but did not want to pursue the real-estate flips because most of the auditees were Chinese in descent. They were scared of being racist … I can confirm this fact, based on meetings held,” the auditor said.

Finance Minister Bill Morneau announced in June that the government is studying developments in the housing sector, and the House of Commons Finance Committee has agreed to launch a comprehensive study late this fall of the Canadian real estate market, including the links between the sale of homes and Canada’s financial system. The issue is also expected to come up during the committee’s prebudget hearings.

British Columbia’s Finance Minister, Mike de Jong, on Saturday called on Ottawa and the CRA to “diligently enforce the law.”

Toronto Dominion Bank economist Michael Dolega said Ottawa’s options for policy action are limited beyond ensuring that existing laws are enforced.

“The overheating that we’re seeing is really very concentrated in only a couple of markets. It’s not a broad over-heating of the market. So a blunt tool or a national strategy that is meant to dissuade any sort of behaviour may very well have, potentially, consequences for other parts of the country,” he said.

Mr. Dolega said the issue of “hot money” flowing from foreign markets into Toronto and Vancouver must be addressed by all three levels of government together.

“Ultimately, the onus is going to be on B.C., Ontario and the municipalities that are really seeing those flows,” he said.

Liberal MP Wayne Easter, who chairs the Commons finance committee, said it appears B.C.’s recent tax on foreign buyers is shifting foreign capital into Toronto’s housing market. He said Ottawa needs to work with all provinces to ensure the issue is dealt with in a co-ordinated way. However, he said it is not clear what further action the federal government should take.

“It’s a serious problem and it’s one that I think you ought to proceed with cautiously as well,” he said. “When people are getting to retirement age and they’re selling their property, that is in many cases one of their bigger assets, so you don’t want to undermine that either. But you don’t want housing price inflation that’s impacting Canadians who need a place to live.”

The CRA says it completed nearly 2,500 audits related to real estate in B.C. and Ontario between April, 2015, and June, 2016, and that the agency plans to do as many or more next year.

The 2016 federal budget set aside $500,000 for Statistics Canada to conduct a year-long study on how to collect data on purchases of Canadian homes by foreign buyers. It also gave Statistics Canada $13.5-million over five years to compile data on the housing market and so-called “shadow banking,” which is at the heart of transactions identified in The Globe’s investigation. The CRA also received $444.4-million over five years in the budget to boost tax enforcement.

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19 minutes ago, Harvey Spector said:

HOUSING

CRA launches review of B.C. real estate speculators

 

The Canada Revenue Agency has launched a review into the actions of B.C. real estate speculators in light of a Globe and Mail report that uncovered possible tax evasion and fraud.

On the weekend, the B.C. government urged the CRA to track down tax cheats and toughen up its rules after a Globe investigation showed a network of speculators flips homes for a profit and evades taxes by classifying them as principal residences even though they never lived there.

“Like all Canadians, I am very concerned over allegations that some wealthy Canadians are not paying their fair share of taxes,” Diane Lebouthillier, the minister responsible for the Canada Revenue Agency, said in statement on Monday. “That is unacceptable and I’ve since asked Canada Revenue Agency officials to look into the specifics of the case that was reported by the Globe and Mail recently.”

Ms. Lebouthillier said the agency had already stepped up audits and investigations in Ontario and British Columbia, and that several real estate files are under review to determine whether a criminal investigation should be launched. The minister’s office declined to provide more details because they cannot comment on specific cases.

The Globe investigation revealed how Vancouver real estate speculator Kenny Gu paid next to nothing in taxes last year while millions of dollars flowed through his personal and corporate bank accounts.

A former employee of Mr. Gu, Demetre Lazos, said he tried to alert the CRA and the local police, but came to The Globe and Mail with detailed documentation after his tips received little attention from Ottawa and the police.

A CRA auditor who requested anonymity also told The Globe the agency’s auditors lack the experience needed to track down foreign income. The auditor said federal officials fear the agency could be seen as targeting the Chinese community if it cracks down on some activities.

“Management has known of this issue for at least three years but did not want to pursue the real-estate flips because most of the auditees were Chinese in descent. They were scared of being racist … I can confirm this fact, based on meetings held,” the auditor said.

Finance Minister Bill Morneau announced in June that the government is studying developments in the housing sector, and the House of Commons Finance Committee has agreed to launch a comprehensive study late this fall of the Canadian real estate market, including the links between the sale of homes and Canada’s financial system. The issue is also expected to come up during the committee’s prebudget hearings.

British Columbia’s Finance Minister, Mike de Jong, on Saturday called on Ottawa and the CRA to “diligently enforce the law.”

Toronto Dominion Bank economist Michael Dolega said Ottawa’s options for policy action are limited beyond ensuring that existing laws are enforced.

“The overheating that we’re seeing is really very concentrated in only a couple of markets. It’s not a broad over-heating of the market. So a blunt tool or a national strategy that is meant to dissuade any sort of behaviour may very well have, potentially, consequences for other parts of the country,” he said.

Mr. Dolega said the issue of “hot money” flowing from foreign markets into Toronto and Vancouver must be addressed by all three levels of government together.

“Ultimately, the onus is going to be on B.C., Ontario and the municipalities that are really seeing those flows,” he said.

Liberal MP Wayne Easter, who chairs the Commons finance committee, said it appears B.C.’s recent tax on foreign buyers is shifting foreign capital into Toronto’s housing market. He said Ottawa needs to work with all provinces to ensure the issue is dealt with in a co-ordinated way. However, he said it is not clear what further action the federal government should take.

“It’s a serious problem and it’s one that I think you ought to proceed with cautiously as well,” he said. “When people are getting to retirement age and they’re selling their property, that is in many cases one of their bigger assets, so you don’t want to undermine that either. But you don’t want housing price inflation that’s impacting Canadians who need a place to live.”

The CRA says it completed nearly 2,500 audits related to real estate in B.C. and Ontario between April, 2015, and June, 2016, and that the agency plans to do as many or more next year.

The 2016 federal budget set aside $500,000 for Statistics Canada to conduct a year-long study on how to collect data on purchases of Canadian homes by foreign buyers. It also gave Statistics Canada $13.5-million over five years to compile data on the housing market and so-called “shadow banking,” which is at the heart of transactions identified in The Globe’s investigation. The CRA also received $444.4-million over five years in the budget to boost tax enforcement.

Too little, way too late. They have a trillion dollars or so in Canada. Good luck. 

 

PS: if you think this is something, why would they announce the investigation? You know, to give the criminals a chance to do what they do, be criminals.

 

Its kinda like setting up a sting on a house, onky to send them a letter a few weeks early letting those in the house know. Then show up and find nothing.

 

Anyone know what happened to Kenny Gu?

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