The BC Real Estate Discussion Thread

[taxi]

My assessment has my small rental condo up 29% year over year...find that a bit hard to believe. Could be another tax grab. One that I'm not totally opposed to though. Property taxes hit all of the property owners, unlike income taxes, which only hit the people actually working here.

[Harvey Spector]

15 minutes ago, Tre Mac said:

It is in White Rock, an old building built in the 70's.  And no I haven't done anything with regards to that.  I just reno'd everything, I am not too concerned about the value of my place just the gap between condo's and detached homes.  I bought the condo in 02 for 75k and it's at 144k now, at least I own property(no more landlords!).  I know people in the US that have had the opposite happen to them(buying a place for 300k that's now worth 150k) so I shouldn't complain but I will anyways 

 

I just keep hoping for a market collapse or something so one day I can afford a detached house on my own.  Much like the Canucks winning a cup it seems like a pipe dream.  Something has got to give, a crack shack underneath transmission lines in Whalley shouldn't be worth near a million dollars. 

 

Unfortunately condos in White Rock have not experienced the same price appreciation as in other areas.  The median price for a condo in White in August 2013 was $319,500.  Today it is $353,000, so in 3 1/2 years the median price has only gone up around 9.5% in total.  Also, condos built in the 1970's do not have the same appreciation levels as the newer condos as the building is already old and outdated with no new features like today's buildings, and you probably have the old and much slower elevator systems and probably little if any amenities.  

 

It's great that you did a reno, as that will at least keep your particular suite modern for the next buyer.  In terms of the gap between condos and detached homes, yes the gap has widened considerably over the last 3 years, specifically last year.  It would be almost impossible to go from a condo in today's market to a detached home in the same area.  You would need to move into a different area.  The median price of a house in White Rock today was $1.3 million in November, so if your condo is worth $144k today then that gap is too large to fill unless you have a huge downpayment.  If you are willing to move to some parts of Surrey, I can see prices falling into the $700k range.  In Whalley the median price is $765,000 today, so I can see that price dropping under $700k.  That could always be an option for you if you don't mind living in Whalley.

[Harvey Spector]

7 minutes ago, taxi said:

My assessment has my small rental condo up 29% year over year...find that a bit hard to believe. Could be another tax grab. One that I'm not totally opposed to though. Property taxes hit all of the property owners, unlike income taxes, which only hit the people actually working here.

 

Prices for condos in downtown and other parts of Vancouver and Burnaby went up over 30%, so that number seems right as you mentioned before your rental place is downtown.  Rental rates in downtown are approaching $4 a foot in some areas and $5 a foot for furnished suites, so that is also a factor in these price increases.  You can rent a furnished one bedroom and den downtown condo for close to $3,000.

[Harvey Spector]

B.C. government raises homeowner grant threshold to $1.6M

About 91% of homes will be under the new threshold for the basic grant

CBC News Posted: Jan 10, 2017 6:36 AM PT Last Updated: Jan 10, 2017 10:53 AM PT

 

The government of B.C. has increased its homeowner grant threshold from $1.2 million to $1.6 million — a 33 per cent increase.

 

The province says the increase will ensure that most homeowners who received the grant in 2016 will qualify for it again in 2017.

 

The government expects to spend $821 million on homeowner grants in 2017-18, compared to $809 million in 2016-17, according to a release from the province.

 

According to the release, 91 per cent of B.C. homes will remain below the new threshold despite recent steep increases in values from B.C. Assessment.

 

The province says 83 per cent of Metro Vancouver homes are below the new threshold.

 

NDP says increase too little, too late

David Eby, MLA for Vancouver Point Grey and housing critic for the B.C. NDP, says the move is another stop-gap measure from the government.

 

"They're reacting to patch things up two years too late, and it's a giant mess," Eby said.

 

Eby said that, though the on-paper wealth of many B.C. homeowners has skyrocketed in recent years along with home prices, so too have taxes and other associated costs.

 

The result, he said, is a lot of financially-strained families who have no way of accessing that value without selling and moving.

 

"The idea that there are all these really rich homeowners that are somehow leeching off the system is a bit of a fiction," Eby said.

 

The homeowner grant reduces property taxes on the owner's principal residence. The basic grant is worth up to $570, or up to $770 if the home is in a northern or rural area.

 

Additional grants are available for seniors, people with disabilities, spouses of veterans and those who qualify as low income.

 

With files from CBC Radio One's The Early Edition.

 

http://www.cbc.ca/news/canada/british-columbia/homeowner-grant-threshold-raised-1.3928817

Edited January 10, 2017 by Harvey Spector

[Harvey Spector]

 

[Harvey Spector]

 

[sameer666]

CMHC Premium hikes!

 

http://www.financialpost.com/m/wp/personal-finance/mortgages-real-estate/blog.html?b=business.financialpost.com/personal-finance/mortgages-real-estate/mortgage-insurance-premiums-on-the-rise-at-cmhc-now-as-high-as-4-5-of-value

 

 

[Harvey Spector]

B.C.'s first-time homebuyer program already working, province ready to approve applicants: minister

By The Canadian Press

British Columbia’s housing minister says a program to help first-time homebuyers received applications within hours of launching.

Rich Coleman said that within six hours of the provincial loan program’s launch on Monday, 29 applications had been submitted.

He said the province would be ready to approve eight of the applications by Tuesday for the loan that is interest- and payment-free for five years.

“This opportunity will change a number of lives,” Coleman said.

The B.C. Home Owner Mortgage and Equity Partnership announced last month gives first-time buyers a maximum $37,500 loan toward a down payment.

The loan matches a first-time buyers’ down payment up to five per cent of the purchase price on homes with a maximum value of $750,000.

The loan must be paid off over the subsequent 20 years past the interest-free period, with payments scheduled at current interest rates.

After the program was announced last month, some economists criticized the move saying it would only drive up housing prices by creating more competition in the market.

“They’re wrong,” Coleman said when asked about the program’s potential to raise housing prices.

“Let’s say 10,000 people took advantage of this … This isn’t going to fuel the market. It’s not large enough to change the market.”

The program wasn’t designed to respond to sky-high housing prices in Vancouver, Coleman said, but to help first-time buyers across the province.

“The market prices are different, but the ability to get into your first home and stabilize your family in home ownership is a good thing,” he said.

The program could also open up the rental market, by transitioning renters into home ownership, he said.

Let’s say 10,000 people took advantage of this … This isn’t going to fuel the market.

The province previously announced that it is spending around $500 million to increase rental housing.

Coleman said the combination of the loan and rental programs would ideally make both real estate and rental markets more affordable.

He said the anticipated cost of about $703 million for the first-time buyers program is not being funded by taxpayers.

“We already have the dollars from where we’re at with the property transfer tax,” he said, adding funds generated from taxes introduced last year on luxury homes and foreign buyers helped make the program possible.

Over 40,000 families are expected to benefit from the province’s first-time buyers program over the next three years.

http://vancouversun.com/storyline/b-c-s-first-time-homebuyer-program-already-working-province-ready-to-approve-applicants-minister

[sameer666]

 

 

Consumer reports segment on Global TV covering some of the risks of using the BC Home Partnership Loan. Great resource. I may also know the mortgage broker featured 

Edited January 19, 2017 by sameer666

[Harvey Spector]

35 minutes ago, sameer666 said:

Consumer reports segment on Global TV covering some of the risks of using the BC Home Partnership Loan. Great resource. I may also know the mortgage broker featured 

I'd disclose my identity but based on my heavy involvement in the US Presidential thread I may have to hire a few bodyguards and close my social media accounts... 

[sameer666]

3 minutes ago, Harvey Spector said:

I'd disclose my identity but based on my heavy involvement in the US Presidential thread I may have to hire a few bodyguards and close my social media accounts... 

thats gangster.

[Harvey Spector]

Condo Prices “Can’t Not Go Up” in 2017 – But BC Election Will Hit Market: Agent

Demand for condos so high and supply so limited, prices will keep rising, even under election-related market uncertainty, argues leading local agent

 

REW.ca

January 18, 2017

 

As house prices have slid over the fall and winter, condo sales have stayed the course and prices will continue to rise in 2017, predicts leading local REALTOR® Keith Roy.

Speaking to REW.ca editor Joannah Connolly on her Real Estate Therapist radio show on Roundhouse Radio, the top-producing RE/MAX agent said, “The demand for condos remains overwhelming and the supply remains very limited. With houses, even at 10 to 15 per cent below the peak of prices, they still remain out of reach of the vast majority consumers, so condos remain a very popular option. 

“I see continued price appreciation in condos this year – they can’t not appreciate at the pace that they’re selling. But at the same time, you’re not going to double your money in 12 months. Whereas houses will see more of a balanced market, buyers will have time to decide, there will be inspections on houses, and it will take more than a weekend to sell your house. In comparison to the last year or so, it will be a pretty boring year.”

Roy added, “While the rest of Canada’s economic activity will be limited, especially in Ontario and Quebec, the West will continue to do well… We have a sense of economic activity in British Columbia that gives positivity to the real estate market. The Canadian dollar will remain low, which will continue to draw in foreign money, despite the 15 per cent foreign buyer tax – that tax shocked the market, but hasn’t stopped it.”

He also argued, “The inauguration of Donald Trump as US president will not have an effect on the value of your home, no matter how much you talk about it. That kind of macro [level economic activity] has very rarely affected the Vancouver real estate market.”

Roy, who has a degree in political science, predicted that the biggest impact on the local housing market will be caused by the provincial election this spring. “Elections breed uncertainty and fear, which prevents people from making major decisions. I’ve been looking at patterns, and housing activity always declines in the run-up to an election. Let’s say, if I think the NDP is going to get in, and I believe they have been historically bad for the BC economy, I’ll assume that they will be bad again and that real estate prices might go down, therefore I’ll wait before I buy a house.

“So what might happen in the spring, where we normally see a more active market, we might see a lot of uncertainty around that… bringing us to a more normal market. Because it’s a coin-toss right now between the Liberals and the NDP.”

http://www.rew.ca/news/condo-prices-can-t-not-go-up-in-2017-but-bc-election-will-hit-market-agent-1.7690496

Edited January 23, 2017 by Harvey Spector

[Harvey Spector]

Real estate developers topped B.C. Liberals donor list in the past year

Eight of the 10 top donors to the B.C. Liberal party in 2016, and so far in 2017, are involved in the province’s property development and construction industries.

 

Combined, the eight donors contributed nearly $1.5 million of the $12.5 million collected by the Liberals during the period, an analysis by Postmedia News of the donor list released by the Liberals last week shows.

Some of the real estate development and construction sector donations came in six-figure instalments. 

Property developers claimed some spots in the top 10 list between 2011-2015 — along with natural resource companies such as Teck, Encana and West Fraser. But the contribution of the developers appears to be trending up, shows the analysis.

The donations poured into the Liberal party as home prices skyrocketed in Greater Vancouver, which is a significant issue of public concern and is sure to be an election issue. The Liberals attempted to cool the market with a 15 per cent tax on foreign buyers last August.

The move was unpopular among developers and construction firms, however $214,000 was donated from those sectors by the eight in the top 10 after the foreign-buyers tax was introduced.

The Liberals released the list voluntarily to dampen criticism over party financing, which has included large amounts of money from corporate donors and cash-for-access events. The Liberals have raised $32.5 million since the last election, the majority from corporate donations.

http://vancouversun.com/business/local-business/property-developers-topped-b-c-liberals-donor-list-in-the-past-year

[Harvey Spector]

Aquilini Investment Group was the #4 donor to the BC Liberal Party in 2016 at $136,000...  

Edited January 23, 2017 by Harvey Spector

[taxi]

These donations are all very small potatoes. 

 

I'd be far more concerned about politicians or their family members/good friends having connections to the developments themselves. Who cares if the Aquilni's gave 136k to the Liberal party. It's a much bigger issue if some politician is making millions by being tied to one of their developments. 

[Gurn]

5 minutes ago, taxi said:

These donations are all very small potatoes. 

 

I'd be far more concerned about politicians or their family members/good friends having connections to the developments themselves. Who cares if the Aquilni's gave 136k to the Liberal party. It's a much bigger issue if some politician is making millions by being tied to one of their developments. 

Everyone should care, that is a lot of money to donate, and there will be a perception of trying to buy influence. And you are right it would be a bigger issue if politicians are tied into the developments, but being a bigger issue does not negate the "smaller" issue.

 

Edited January 25, 2017 by gurn

[taxi]

58 minutes ago, gurn said:

Everyone should care, that is a lot of money to donate, and there will be a perception of trying to buy influence. And you are right it would be a bigger issue if politicians are tied into the developments, but being a bigger issue does not negate the "smaller" issue.

 

You can't buy much with $136k these days...this is pretty small potatoes. Do you really think the BC government, which is in charge of Billions upon billions will make major decisions based on whether they get $136k or not? The real corruption is below the surface. 

[Harvey Spector]

7 hours ago, taxi said:

These donations are all very small potatoes. 

 

I'd be far more concerned about politicians or their family members/good friends having connections to the developments themselves. Who cares if the Aquilni's gave 136k to the Liberal party. It's a much bigger issue if some politician is making millions by being tied to one of their developments. 

So how exactly can a politician have direct ties to a development?  Partner?  Free condo?  Developers get perks from the City. They get higher density and in return they build parks and low income housing. In order to get the higher density, i.e. building up to 50 storeys so they can build more condos, they also cut cheques to the City in the millions of dollars. So the City benefits directly with a cash infusion and also by getting these developers to help them build more green space and low income housing. 

 

I'm not sure however how Christy Clark and Mike De Jong can actually benefit directly other than getting a free condo. 

Edited January 26, 2017 by Harvey Spector

[taxi]

On 1/25/2017 at 9:19 PM, Harvey Spector said:

So how exactly can a politician have direct ties to a development?  Partner?  Free condo?  Developers get perks from the City. They get higher density and in return they build parks and low income housing. In order to get the higher density, i.e. building up to 50 storeys so they can build more condos, they also cut cheques to the City in the millions of dollars. So the City benefits directly with a cash infusion and also by getting these developers to help them build more green space and low income housing. 

 

I'm not sure however how Christy Clark and Mike De Jong can actually benefit directly other than getting a free condo. 

Not sure if serious....

 

The developers are making billions. All a politician would need is a fraction of a percentage of ownership in a major development to see a large pay day. This can be done indirectly with a close business associate or family member having the actual ownership rights. 

 

In exchange, a politician signs a permit here, denies another one there, etc...

 

I'm not saying that Clark is involved in this directly. My point is that this is the bigger fish to fry. An above board donation of $136k from a multi-billion dollar business is totally legal and small potatoes. If you think that $136k buys votes or decisions, you're out to lunch. There are people throwing billions into our economy. 

[Harvey Spector]

11 hours ago, taxi said:

Not sure if serious....

 

The developers are making billions. All a politician would need is a fraction of a percentage of ownership in a major development to see a large pay day. This can be done indirectly with a close business associate or family member having the actual ownership rights. 

 

In exchange, a politician signs a permit here, denies another one there, etc...

 

I'm not saying that Clark is involved in this directly. My point is that this is the bigger fish to fry. An above board donation of $136k from a multi-billion dollar business is totally legal and small potatoes. If you think that $136k buys votes or decisions, you're out to lunch. There are people throwing billions into our economy. 

Like I said the developers pay millions of dollars to the local municipalities to get higher density for their developments. That's how they make money and that's how the municipalities make money. The provincial goverment makes money from tax revenue, specifically the PTT.  The PTT for 2016 alone was estimated at over $2 billion. Also, these developers have been sitting on cheap land for years and have reaped the rewards these last few years. I know developers who were sitting on land since the 1990's at pennies on the dollar and just finished developing those projects within the last 3-4 years. 

 

I am not sure how any politician can get any type of ownership in a condo development. I have not heard that ever and I have been licensed with some of the top real estate marketing companies in Vancouver who work with the top developers in the City including the owner of the Canucks. I'm sure I would have overheard a conversation somewhere in the last 15 years. I know Aquilini is heavily involved with the First Nations on several high profile developments in the City. They have a long standing partnership. 

 

Even a free condo through an intermediary or associate might be difficult as pre-sales are heavily scrutinized in terms of who the buyer is. Developers sell to their friends and long time clients at special discounts I know that much. Whether or not these politicians are part of that group is anyone's guess. I'm not saying it's not possible I've just personally never heard or seen it.