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The Property Transfer Tax has not been adjusted to reflect the housing market in 26 years.

Do you think a reduction is overdue?

In 1987 the BC government introduced the Property Transfer Tax (PTT), then called the Property Purchase Tax. It was touted as a wealth tax that would discourage speculation at the high end of the real estate market.

The tax was structured to add 1% on the first $200,000 of a home’s market value at the time of sale and 2% on the remainder. The structure of this tax has not changed since 1987, with the exception of adding an exemption for qualified first-time buyers.

“In the 26 years since the PTT was introduced, the average price of a home in Greater Vancouver has increased 499 per cent, yet no government in BC has adjusted this tax to account for these changes and home buyers continue to bear the brunt of this inaction,” Eugen Klein president of the Real Estate Board of Greater Vancouver (REBGV) said.

"Over the course of the upcoming election campaign, our REALTORS® will enlist the help of the public to send a message to the next government that this tax is unfair, out of date and needs to be adjusted.”

No longer a wealth tax

In 1987, 95% of homes in Greater Vancouver sold for less than $200,000, meaning that just 5% of all sales had the 2% portion of the PTT applied. Today, approximately 96% of homes in Greater Vancouver are sold for more than $200,000. If the 2% portion of the PTT was applied only to the top 5% of all home sales today, as originally intended, the $200,000 threshold would have to be raised to more than $1.4 million in Greater Vancouver.

Average Greater Vancouver home prices as of December 31, 1987 and December 31, 2012. Source: REBGV

The PTT must be paid by property buyers each time they move, whether they’re trading up or downsizing, or buying a similar home in a different location due to a job transfer. The tax is also paid each time a property changes hands in the development process for a new home – from the raw land owner, to developer, to builder, to ultimate home owner.

Home buyers have long viewed the PTT as unfair because it creates barriers to home ownership by diminishing buyers’ purchasing power.

Average home prices as of December 31, 2012. Source: REBGV

“It’s long overdue for government to adjust the PTT thresholds to a level that reflects the reality of today’s housing market. Clients have told our REALTORS® this for many years,” Klein said.

Get involved

For years, the Real Estate Board of Greater Vancouver (REBGV), the professional association of the more than 11,000 REALTORS® in the region, has persistently campaigned on behalf of home buyers and sellers against the tax, arguing that the tax hurts low equity buyers, those least able to afford it.

We need your help to get this message to the political parties vying to form the next government. By going to www.facebook.com/helpreducetheptt and clicking on ‘like’, you will help send a message to Victoria that it’s time to update this out of date, unfair tax on shelter.

The REBGV has asked government to increase the 1% PTT threshold to $525,000 from $200,000, to help buyers, particularly those at the lower end of the market. We’ve also recommended that the tax be indexed to Statistics Canada New Housing Price Index.

The current government has indicated they are considering our recommendations. MLAs, from all political parties, have told us the only way change is possible would be to have PTT revenue replaced by an alternate revenue source.

We believe there is room for compromise. There is a way to reduce the tax burden on home buyers while not damaging the province’s long term revenue situation.

Why are home sales important for our communities?

Home sales help drive our economy and create much-needed jobs in our neighbourhoods. Each time a home changes hands, the transaction generates $42,000 in economic spin-offs and 2.8 jobs.

Home sales mean that our neighbours have work and can make a living to support their families. Home buyers hire appraisers, inspectors, movers and landscapers – and this skilled workforce, in turn, buy homes and furniture and fixtures, flooring and appliances.

In 2012, in the Greater Vancouver area, 25,032 homes changed hands generating $1.07 billion in economic activity and 7,125 jobs.

Every 100 residential sales also generate $660,000 in provincial taxes, $300,000 in federal taxes and $32,000 in municipal taxes.

Source: http://www.rebgv.org

Residential prices continue to fall, but an increase in the sales-to-active-listings ratio points to increased market balance

The Real Estate Board of Greater Vancouver’s most recent account of the previous month’s residential real estate sales and listings activity points to an increased stabilization of the local market. While sales did decrease in March 2013 by 18.3 per cent since March 2012, the new listings added to the MLS also decreased by a comparable 17.2 per cent, pointing to the fact that while sales may be down, the amount of stock available on the market is also coming down to meet this decreased demand.

Month-to-month stabilization was also seen in the sales-to-active-listings ratio, which saw a three per cent bump between February and March 2013, to currently rest at 15.2 per cent. This increase marks the first time the ratio has been above 15 per cent since March 2012.

“While home sales were below what’s typical for March, we are seeing more balance between the number of sales and listings on the market in the last two months, which is having a stabilizing impact on home prices,” said the REBGV president Sandra Wyant in a press release from April 3, 2013.

The REBGV also provided a breakdown of prices for homes across Greater Vancouver.

The benchmark price for all residential properties (including detached, attached and apartment) in Greater Vancouver sits at $593,100, with single-family detached homes bringing in a benchmark price of $906,900—a five per cent decrease from March 2012.

Clocking in as the most expensive neighbourhood for single-family detached homes was Vancouver West, which currently has a benchmark price of $2,026,400, while the lowest benchmark price is found on the Sunshine Coast (currently listed at $338,800).

April 1 brought a big change to the residential real estate sales and listings industry, with the return of GST and PST. When it comes to real estate, it’s important to remember the following two points:

Sales Tax on a new home is reduced to five per cent GST plus an additional two per cent B.C. Transition Tax, coming to a total of seven per cent (as opposed to 12 per cent under HST rules).

"Why can't I just run my own ad to attract buyers?"

"It just doesn't look that hard to sell a house and not for the huge commissions Realtors want."

"My neighbour got the most money for his home of anybody in the neighbourhood without even trying. If he can get the same that a Realtor can get, then why should I split that with a Realtor?"

"I just don't want to overpay in commissions."

Should you rent your home, or buy it? It's a question that all Canadians wrestle with at some point in their lives.

For the most part, Canadians are in favour of home-buying, as official data shows that two-thirds of Canadians own their own homes. And the strategy is often viewed as a safe one and wise retirement savings vehicle.

But is it always? Not necessarily.

It's anyone's guess as to whether prices are headed higher or lower in the short term, but one good gauge of housing affordability is the ratio between rents and homes prices.

Rental income a factor

In large real estate markets like Toronto and Vancouver, the ratio of how much a home costs versus how much income could be charged for renting it out has almost doubled since 1995 — an indication that some sort of correction could be in order, either through rents going higher or prices going lower.

Beyond the overall price, the biggest factor is often the mortgage rate a homebuyer gets in order to finance it. The government has really clamped down on regulating mortgages.

This summer, Ottawa capped the maximum amortization period for a CMHC-insured mortgage at 25 years. That forces borrowers to pay back their loans quicker, which reduces the amount they're able to borrow overall. And that's already dragging on home prices.

There could be a payment shock when people try to refinance.

Timeframe matters

There's no fool-proof way to account for faulty assumptions about what home prices will do, but online mortgage calculators are a helpful tool to make long term projections when deciding whether or not to rent or buy.

Imagine a $500,000 home, purchased with a 25-year mortgage at 4.5 per cent. In this market, in a large Canadian city, we'll assume that home could be rented for $2,000 a month.

Would the occupant be better off buying that home or renting it? If the tenant is planning on staying for less than eight years, renting is likely the better option. With some conservative projections, that tenant will actually save $3,432 a year by renting, or up to $27,458 overall after the first 8 years.

But beyond that timeframe, the math changes in favour of the buyer so if the tenant plans on staying for a long time, the savings really start to add up on the ownership side. After 20 years, the home owner is ahead $15,988 and that figure gets exponentially bigger as time goes on.

Source: www.cbc.ca

525 Abbott Street (Lot 192, False Creek, Plan 23011)

 

Status: Complete Estimated occupancy date: May, 2012 Service provider: Atira Number of units: 108 Development documents: Development application CD-1 text ammendment Lease terms

1134 Burrard Street (Lot G, Blk 90, DL 541, Plan 18877)

Status: Rezoning in progress Estimated occupany date: 2013 Service provider: Kettle Friendship Society Number of units: 141 Development documents: CD-1 Rezoning

1050 Expo Boulevard (Lot 232, PL LMP 13013, New Westminster, DL)

Status: In progress Estimated occupany date: TBD Service provider: 127/St. James Society Number of units: 89 Development documents: Development application Lease terms

1237 Howe Street (Lots 32 & E, Blk 101, Plan 16394, DL 541)

Status: Under construction Estimated occupany date: Mid 2012 Service provider: McLaren House Number of units: 110 Development documents: Development application Lease terms

2465 Fraser Street (Lots 9-12, Blk 119, DL 264A, Plans 327 & 1771)

Status: Construction starting early 2012 Estimated occupany date: Mid-2013 Service provider: Vancouver Native Housing Society Number of units: 103 Development documents: CD-1 Rezoning

337 West Pender Street (Lot B, Blk 26, DL 541, Group 1, NWD Plan BCP23911)

Estimated occupany date: 2011 Service provider: Coast Number of units: 96 Development documents Lease terms

111 Princess Avenue (Lots 14-16, Blk 42, PL 196, DL 196)

Status: Construction starts late-2011 Estimated occupany date: early 2013 Service provider: Portland Hotel Society Number of units: 139 Development documents: Maria Gomez Place termination of lease CD-1 Rezoning Lease terms and other arrangements

220 Princess Avenue (Lots 1-7, Blk 52, PL196 DL 196)

Status: Construction starts early 2012 Estimated occupany date: Late 2013 Service provider: RainCity Number of units: 146 Development documents Lease term and other arrangements CD-1 Rezoning

1338 Seymour Street (Parcel F, DL 541, Plan BCP 32313)

Status: Complete Estimated occupany date: Occupied Service provider: More Than a Roof Number of units: 106 Development documents Development application Lease terms and other arrangements

1005 Station Street (Parcel A, Blk 24, DL 196, Plan LMP 48728 )

Status: Complete Estimated occupany date: Occupied Service provider: Portland Hotel Society Number of units: 80 Development documents Lease term

188 East 1st Avenue (Lots 7 and 8, Blk 7, District lot 200A, Plan 197)

Status: Under construction Estimated occupany date: Mid-2012 Service provider: Lookout Emergency Aid Society Number of units: 129 Development documents CD-1 rezoning Lease terms Form of development

215 - 225 West 2nd Avenue ( Lots 9-11, Blk 4, PL 5832, DL 302 )

Status: Under construction Estimated occupany date: Mid 2013 Service provider: RainCity Number of units: 147 Development documents CD-1 rezoning Lease terms

1601 West 7th Avenue (Lot J, Blk 289, DL 526 Group 1)

Status: Under construction Estimated occupany date: Mid 2012 Service provider: Katherine Sanford/MPA Number of units: 62 Development documents Request for increased floor space Lease terms and other arrangements

3595 West 17th Avenue (Lot 1, Blk 28, DL 139, Group 1, NCWD Plan BCP 36078)

Status: Complete Estimated occupany date: Early 2012 Service provider: Coast Number of units: 51 Development documents Development application Lease terms

HST to PST: Transition Rules for Real Estate

On August 26, 2011, the provincial government announced that it will eliminate the Harmonized Sales Tax (HST) by March 31, 2013. Commencing April 1, 2013, in BC the HST will be replaced by the federal Goods and Services Tax (GST) and the BC Provincial Sales Tax (PST). On February 17, 2012, the BC Ministry of Finance and the federal Ministry of Finance announced general transition rules for real property.

The following questions and answers are intended to provide clarity regarding sales of new housing at a high level. For advice about specific transactions and situations, BCREA suggests individuals seek legal and/or accounting advice, as appropriate.

For more information, see:

• BC Ministry of Finance HST Notice #12: www.hstinbc.ca/media/2012_housing_rules_.pdf
• Federal Department of Finance notice “Transitional Rules Relating to the Elimination of HST in British Columbia”: www.fin.gc.ca/n12/data/12-017_1-eng.asp
• Canada Revenue Agency GST/HST Notices:
  • 270, “Elimination of the HST in British Columbia in 2013 – Questions and Answers” (February 2012): www.cra-arc.gc.ca/E/pub/gi/notice270/notice270-e.html
  • 272, “Proposed Enhancements to the British Columbia New Housing Rebates and New Residential Rental Property Rebates” (March 2012): www.cra-arc.gc.ca/E/pub/gi/notice272/notice272-e.html
  • 276, "Elimination of the HST in British Columbia in 2013 – Transitional Rules for Real Property Including New Housing" (October 2012): www.cra-arc.gc.ca/E/pub/gi/notice276/notice276-e.html
• BC Ministry of Finance - "What's Taxable Under the PST and What's Not?": www.pstinbc.ca/media/2013_GST_PST_List_WEB.pdf.pdf 

As details are finalized, this page will be updated with the latest information. For a printable version of the information on this page, click here.

Frequently Asked Questions - PST Transition Rules

1. Why are transition rules necessary?

   Transition rules determine whether 12% HST or 5% GST will apply to new housing contracts that start before April 1, 2013, but conclude on or after this date. Both the federal and provincial governments administer their own set of transition rules.

2. When does HST apply, and when does GST apply?

   HST applies if tax becomes payable before April 1, 2013.

   GST applies where tax becomes payable after March 31, 2013. In addition, the BC transition tax may then apply where construction or substantial renovation is at least 10% complete on April 1, 2013.

3. Generally, when does the tax become payable?

   Except for the sale of certain residential strata units, the tax is payable on the earlier of the following dates:

   • when the seller transfers ownership (also known as the completion date) of the new home to the buyer, OR
   • when the seller transfers possession of the new home to the buyer under the Contract of Purchase and Sale.

   In summary:

   The 12% HST applies if the seller transfers either possession or ownership of a new home to the buyer before April 1, 2013.

   The 5% GST applies if the seller transfers both possession and ownership of a new home on, or after, April 1, 2013.

   

4. Generally, when does the tax become payable when the transaction involves a strata unit?

   The general tax payable rule will apply for stratas except where the strata plan hasn’t been registered as a condominium by the date possession is transferred. The tax payable is then based on the earlier of the following dates:

   • when the seller transfers ownership (also known as the completion date), OR
   • 60 days following the date the strata plan is registered.

5. Who will be responsible for paying the GST?

   As was the case prior to the implementation of the HST, the seller is responsible for charging GST on the sale to the buyer, and must then collect and remit the tax to the Canada Revenue Agency (CRA).

6. Will the PST apply to real property?

   No. HST will generally cease to apply on the purchase of new housing as of April 1, 2013, even if the Contract of Purchase and Sale was signed or new home construction started before April 1, 2013, provided neither possession nor ownership transfer before April 1, 2013. However, the provincial government may collect a temporary transition tax of 2% if certain conditions are met.

7. How will the temporary transition tax work?

   The provincial government may, in certain circumstances, collect a temporary transition tax of 2% on the purchase price of a new home where:

   • HST does not apply to the sale (that is, GST applies because tax is payable on or after April 1, 2013), the construction or substantial renovation of the new housing is at least 10% complete before April 1, 2013, and
   • either ownership or possession of the new housing transfers, or a deemed sale of the new housing (for example, a self-supply of an owner-built rental unit) transfers before April 1, 2015.

   

8. Who pays the temporary transition tax?

   The BC transition tax will be payable by the buyer and collected by the seller on the same date the GST becomes payable. The seller is responsible to collect and remit the tax to the CRA. Buyers may wish to ensure that an appropriate allocation of the BC transition tax and BC transition rebate is factored into negotiations between the buyer and seller.

9. How will the temporary transition tax work when the transaction involves a strata unit?

   The general temporary transition tax conditions are applicable to sales of strata units; that is, HST doesn’t apply, construction is 10% or more complete before April 1, 2013 and possession or ownership transfers before April 1, 2015.

   Again, if the strata plan is not registered by the date possession is transferred, the temporary transition tax is payable on the earlier of the following dates:

   • when the seller transfers ownership (also known as the completion date), OR
   • 60 days following the date the strata plan is registered.

10. Are there any rebates for sellers related to the temporary transition tax?

    Yes, the BC government has introduced a transition rebate to recognize that a seller will not be able to claim input tax credits on PST paid on construction materials acquired after March 31, 2013. The rebate is available where both conditions are met:

    • The BC transition tax applies to the sale of new housing, AND
    • Construction or substantial renovation is at least 10%, but not more than 90%, complete, before April 1, 2013.

    The transition tax rebate for new housing will be calculated on the degree of completion of the housing as of April 1, 2013:

    Degree of construction complete as of April 1, 2013	Transition tax rebate as a percentage of consideration or fair market value
    Less than 10 per cent	Not applicable
    10 per cent ≤ and < 25 per cent	1.5 per cent
    25 per cent ≤ and < 50 per cent	1.0 per cent
    50 per cent ≤ and < 75 per cent	0.5 per cent
    75 per cent ≤ and < 90 per cent	0.2 per cent
    90 per cent or greater	0.0 per cent

11. How will the transition affect the way I prepare or counter a standard form Contract of Purchase and Sale?

    The BC government has introduced disclosure requirements for builders (i.e., sellers) during the transition period to clarify the taxes and rebates that are included in the sale price stated in the Contract of Purchase and Sale.

    Agreements entered into from December 1, 2012 to March 31, 2015 must contain the following prescribed information:

    • the value of consideration (i.e., purchase price), disclosure of whether tax is inclusive or exclusive of the price, and a breakdown identifying the amount and rate of each tax and/or rebate where applicable;
    • a statement that discloses whether or not the seller is a foreign supplier (essentially, a “foreign supplier” is not resident of Canada); and
    • if the seller is not a foreign supplier, then the following Notice to Purchaser “If (a) both ownership and possession of newly constructed  or substantially renovated housing transfer on or after April 1, 2013 and (b) either ownership or possession of the housing transfer before April 1, 2015, then
      • the 7% provincial component of the HST and the BC HST new housing rebate for primary places of residences will not apply,
      • the 2% BC transition tax may be payable by the buyer, and
      • the supplier may be eligible for a BC transition rebate in respect of the housing.

    NOTE: An alternate Notice to Purchaser is required where the seller is a foreign supplier.

    Buyers may wish to ensure that an appropriate allocation of the temporary transition tax and transition tax rebate is factored into negotiations between the buyer and seller.

    To facilitate the disclosure of this required information, REALTORS® have available through WEBForms® the following addendums for use with the Contract of Purchase and Sale (CPS) during the transition period:

    • BC2064 Rev. 4 Jan 2013 - CPS New Home Addendum (Seller is a Foreign Supplier) before April 1, 2015 
    • BC2061 Rev. 4 Jan 2013 - CPS New Home Addendum (Seller is Not a Foreign Supplier) before April 1, 2015 

    Two guides, "Contracts of Purchase and Sale - New Home Addendums" and "Contracts of Purchase and Sale - New Home Addendums - BC Transition Tax," are also available on WEBForms® to help REALTORS®.
    
    For examples of builder information requirements, see the Canada Revenue Agency GST/HST Info Sheet GI-132: Eleimination of the HST in British Columbia: Builder Information Requirements for the Transition Period" (December 2012).
    
    NOTE: Special rules apply where agreements were entered into prior to November 18, 2009 and/or construction/substantial renovation of homes began before July 2010 and ownership and possession will transfer after April 1, 2013.

12. What methods can be used to provide the buyer with the addendum?

    There are four acceptable delivery methods:

    • in person,
    • courier or registered mail,
    • fax, or
    • any other means, including email, if written confirmation of receipt by the buyer or the buyer’s agent is obtained.

13. Is there a penalty for builders who don’t make the required disclosures during the transition period?

    Yes. A penalty of up to $10,000 per home (or one per cent of the purchase price) can be imposed on a builder who fails to fully and accurately disclose the required information. In the case of a builder who knowingly makes a false statement, a penalty of up to four per cent of the purchase price may be imposed, to a maximum of $40,000 per home.

14. Will the PST apply to real estate commissions?

    No. If the commission is payable before April 1, 2013, then it is subject to 12% HST. Conversely, if the commission is payable on or after April 1, 2013, then the 5% GST applies.

    This change to the sales tax applicable to real estate commissions affects all real estate commissions, whether earned in connection with the sale of new homes, bare land or previously occupied residential property. 

15. When does commission become payable?

    The standard Multiple Listing Contract provides that a commission is payable on the earlier of the following:

    • completion date under the Contract of Purchase and Sale, OR
    • the actual date that the sale completes.

    

16. Are there any special rules for commercial property?

    No. For general application of the GST/HST to commercial real property sales and rentals, see this document: www.cra-arc.gc.ca/E/pub/gm/19-4-1/19-4-1-e.pdf.

Source: BCREA

Council's priority is to end street homelessness by 2015.

As a result,  the City is adding is responding to the City's homeless crisis by developing 14 new supportive housing projects across the city.

When completed, this project will add an additional 1,200 much needed affordable rental units for homeless residents, and those at risk of becoming homeless.

This project is part of an innovative partnership with the Province of BC.

Under the terms of the partnership, the City is providing land, and the Province is funding construction.

Once the buildings are complete, they will be leased at nominal rents to non-profit operators for the next 60 years.

All of the buildings are scheduled to be completed and tenanted by late 2013.

Source: Vancouver.ca

Dramatically growing numbers of mobile, wealthy individuals around the world promise to push up demand for luxury real estate, making high-end properties in Canada’s biggest cities increasingly valuable.

In 10 years, there will be 50 per cent more people on the planet with more than $30-million (U.S.) in net assets – or about 286,000 – according to a new report from British-based real estate consultancy Knight Frank. Emerging markets in Asia and Latin America will see the most dramatic growth, with China’s wealthy population expected to more than double by 2022.

In Canada, the numbers in that category will rise by about 35 per cent over the decade to roughly 6,640, the study says. The largest concentration in Canada will be in Toronto, which currently ranks 20th among global cities for the number of high-net-worth individuals.

One of the consequences of the growing number of wealthy people is that there will be an increasing demand for high-end real estate, even though the supply of luxury properties will remain virtually static, the report suggests. That means the most popular cities for the wealthy – New York and London are at the top of the list – will see increasing upward pressure on prices.

For Canada’s key luxury markets, particularly Vancouver, that will mean a long-term jump in prices for high-end real estate, despite recent softness.

The Vancouver region’s premium real estate market took a breather last year, although sales of properties valued at $3-million or higher remained well above levels of a decade ago.

The current weakness in Vancouver’s luxury market “is probably a temporary thing,” Andrew Hay, head of global residential property at Knight Frank, said in an interview from London.

The amount of money pouring into high-end real estate in any specific location shifts as wealthy people look for new places to put their funds, currency rates fluctuate, and governments put in place measures to cool overheated real estate markets, he said. “There is an increasing amount of money waiting to be spent, but it is better informed and changes direction quicker than ever before.”

While Vancouver is clearly on the radar screen for wealthy Chinese investors, they will assess other options such as Sydney, London or New York, depending on the situation at any particular time, he said.

Still, over the long term, Vancouver’s attractive attributes will draw even more international wealth and put upward pressure on prices of luxury properties, Mr. Hay said. Over all, he predicted, Canada will become increasingly popular as a destination for international wealth along with New Zealand and Australia. That’s because of “the rule of law, strong domestic balance sheets, political stability, and [the fact that] they are lovely places to live.”

Vancouver is definitely the most favoured Canadian location for the newly wealthy, he said, outstripping Toronto or Montreal.

Dan Scarrow, vice-president of corporate strategy at Macdonald Realty in Vancouver, said some of the high-end market in that city is being driven by immigrant investors, including many originally from China. “It’s not like there’s a group of investors who are sitting in China and are playing around with the Vancouver real estate market. That is not happening, but there are many Chinese buyers who are already here or will eventually become Canadian citizens,” he said.

Don Campbell, a senior analyst at Real Estate Investment Network in Vancouver, noted that the pattern of home price growth in Vancouver closely tracks the movements of Chinese GDP – an indication that Chinese investors have a considerable influence on the Vancouver market .

Mr. Campbell said the overall increase in the number of wealthy individuals in Canada will also be good for premium real estate markets outside the biggest cities. There is new wealth being created by the oil business and other industries, and many of the newly rich aren’t in Toronto or Vancouver. “You are starting to see the wealthy not being concentrated in the heart of old Toronto and [Vancouver’s] West Van and British Properties,” he said, but also in Calgary, Edmonton, Saskatoon and even in Atlantic Canada. There is now demand for luxury accommodation in all those places, he said.

Search LUXURY REAL ESTATE on VANCOUVER'S WESTSIDE

Source: The Globe and Mail

To support the City's renters, we are creating an online searchable database of rental apartments in Vancouver.

The purpose of the database is to:

• Help renters make better decisions about where they live
• Motivate property owners and landlords to keep their properties in good order for renters

The database will contain publicly available information that the City collects, including the building's owner, any outstanding work orders, or any property bylaw issues (fire safety, building safety, maintenance, and so on).

You will be able to search the database by exact street address, or see a list of all of the buildings that have outstanding bylaw issues.

Source: Vancouver.ca

The City of Vancouver is working to increase the choices for affordable housing in Vancouver.

This includes creating new affordable housing options for students, young families, and seniors through a new Interim Rezoning Policy.

The goal of the Interim Rezoning Policy is to encourage housing developments that include a strong level of affordability, and:

• Offer 100 percent rental units, or sold at 20 percent below market value.
• Are up to six storeys high on an arterial street (served by transit), or 3.5 storeys high within 100 metres of an arterial street.

A maximum of 20 rezoning applications will be considered throughout the city prior to reevaluation by Council. Only two projects are permitted within 10 blocks of each other on any arterial street.

Source: Vancouver.ca

Shelter is the most urgent need for people who are homeless during the coldest, wettest months of the year.

Vancouver's 2012 homeless count found that there were 306 people living on the street, without access to shelter.

The Winter Response Shelter Strategy sets up temporary cold-weather shelters to help people stay healthy and safe, and to connect people to housing and community-based support services.

The targeted opening for the shelters is December 1, and they will close no later than May 31, 2013. They will operate 24/7, and provide meals for people staying inside.

The strategy supports the City's overall plan to end homelessness by 2015.

Winter Response Shelters for 2012 / 2013

Four shelters are located at:

• 21 East 5th Avenue
• 862 Richards Street
• 1210 Seymour Street
• 2610 Victoria Drive

Source: Vancouver.ca

A home for everyone

Council has committed to ending street homelessness by 2015, while increasing affordable housing choices for all residents.

This includes creating more housing that is accessible, affordable, and suitable for seniors, families, and people challenged by disabilities - regardless of income level.

The Housing and Homelessness Strategy lays out the City's overall direction for housing, including what we need, and how we will achieve it over the next ten years.

The strategy identifies the different kinds of housing necessary to meet the needs of all our residents, as well as ways to improve and preserve the housing we already have.

Source: Vancouver.ca

View this recently sold House or see all my home sales

Budgeting for a new home can be tricky.  Not only are there mortgage installments and the down payment to consider, there are a host of other—sometimes unexpected—expenses to add to the equation.  The last thing you want is to be caught financially unprepared, blindsided by taxes and other hidden costs on closing day.

These expenses vary:  some of them are one-time costs, while others will take the form of monthly or yearly installments.  Some may not even apply to your particular case.  But it’s best to educate yourself about all the possibilities, so you will be prepared for any situation, armed with the knowledge to budget accordingly for your move.  Use the following list to determine which costs will apply to your situation prior to structuring your budget:

1. Purchase offer deposit.

2. Inspection by certified building inspector.

3. Appraisal fee: 

Your lending institution may request an appraisal of the property.  The cost of this appraisal is your responsibility.

4. Survey fee: 

If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey.  The cost for this survey will be your responsibility and will range from $700 to $1000. 

5. Mortgage application at your lending institution.

6. 5% GST:  this fee applies to newly built homes only, or existing homes that have recently undergone extensive renovations. 

7. Legal fees: 

A lawyer should be involved in every real estate transaction to review all paperwork.  Experience and rates offered by lawyers range quite a bit, so shop around before you hire.

8. Homeowner’s insurance: 

Your home will serve as security against your loan for your financial institution.  You will be required to buy insurance in an amount equal to or greater than the mortgage loan.

9. Land transfer (purchase) tax: 

This tax applies in any situation in which a property changes owners and can vary greatly.

10. Moving expenses.

11. Service charges: 

Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.

12. Interest adjustments.

13. Renovation of new home: 

In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home.  If this is your plan, budget accordingly.

14. Maintenance fees: 

If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.

When preparing your property to show, work your way from the outside in.  It is essential that your home possess a certain “drive-up appeal.”  Remember, a potential buyer’s first impression of your house is formed while s/he is still sitting in the realtor’s car.  So, first you need to view your house from this perspective.  Go stand on the opposite curb and observe your property.  Compare it to surrounding properties.  Concentrate on the following three areas:

Landscaping:

How does your landscaping measure up compared to the rest of the neighbourhood?  If you guess it would rate below-average, make a few adjustments.  You might want to consider buying some bushes and planting them around the property.  Do not buy trees, however—mature trees are expensive, so you will not see a return on your investment.  And immature trees don’t tend to significantly improve the immediate appearance of your home. 

If the problem with your yard isn’t a case of too little greenery, but rather too much, get out the pruning shears.  The purpose of landscaping is to complement the home, not hide it.  Overgrown shrubs should be sheared to a height near the bottom of the windows.  Remove any ivy clinging to the side of the house.  Tree limbs should be high enough that you’re able to walk beneath.  Trim any branches that bar the way.

Your lawn should be freshly cut and watered, and an even colour.  If there are brown spots, make sure you begin to remedy this well in advance of putting the house on the market.  You may want to re-sod areas, and you need to make sure these spots are given enough time to grow, so they will match the existing lawn.  Also, if you decide to use fertilizer, you’ll want to allow enough time for it to take effect.  Rake up any leaves or grass cuttings.

Planting a few flowers is an easy way to add colour and vibrancy to your yard, enhancing the first impression of your home.  Invest in a full flat of mature, colourful flowers, such as petunias or periwinkles, which last the length of the growing season.  Do not buy bulbs or seeds—they won’t necessarily grow enough by the time you begin showing to achieve the desired effect.  If you don’t have an area in which to plant flowers, consider purchasing a few flower pots for your porch and planting flowers or blooming plants.

If you have a pool, keep it sparkling and leaf-free.

House Exterior:

When you view your house from across the street, does it appear weathered or faded?  If so, it’s probably time to treat it to a fresh coat of paint.  This is usually a sound investment; new paint can do wonders to increase a home’s perceived value.

Stay away from unusual or loud colours.  The new colour should fit in with surrounding houses, and complement the style and structure of your house.

Examine the roof closely.  Old or leaking roofs should be replaced.  If there are leaks, you’ll have to disclose this detail to the homebuyer anyway, and they will want it replaced.  If there isn’t any apparent damage, however, wait for word from the home inspector before making repairs.

The Front Door and Porch:

The front door and surrounding area should look particularly fresh and welcoming, as this will be the buyer’s first up-close impression as they enter the house.  If you paint nothing else, at least give the door a new coat.  Replace the doorbell if it is broken and polish the door fixture until it gleams.  Wash the mail box.  Keep the porch swept and buy a new plush door mat.  All of these little things will contribute to the overall effect of a well cared-for and welcoming home.

Ensure the lock works smoothly and the key fits properly.  When a homebuyer visits your house, the Realtor will open the front door with a key.  You don’t want the buyers’ first experience to be of waiting on the doorstep while the Realtor fumbles with the lock.

If you are considering looking for a new house, and are a current home-owner, then chances are you’re wondering what your strategy should be:  do you wait to find the perfect new home before you put your current home on the market, or do you sell first and then look around?  You have a few options.  Use the following as a guide to explore what might be the best move for you.

Sell First:

There are several benefits to selling your current house before searching for your next home.  First of all, once you have sold your house, you will know precisely how much money you have to work with.  With a concrete price range, you’ll be able to narrow the pool of houses before you begin looking, and negotiate accordingly.  This will allow you to immediately make firm offers on houses that you are serious about purchasing.  You can be first in line with an unconditional offer you know you can afford, and this will grant even further negotiating leverage as Sellers tend to take unconditional offers more seriously.  When they counter or turn down an offer that’s conditional on the sale of a home, they usually think the Buyer will come back with a better and more firm offer once they have sold their current home.  However, if you make an unconditional offer, the Seller will usually give you more consideration, as they realize you’re probably looking at other properties and will move on if your offer is rejected.  Likewise, if you have already sold you house, you probably do have a wider opportunity to look around, negotiate, and find the best deal and fit for you and your family.

The flip side of this scenario, however, is that if you don’t find the right property before the closing date of the house you’ve already sold, you may have to look for temporary housing until you do find what you’re looking for.

So, before you opt to sell first, you should determine whether you have alternate, temporary options, in case you have to move from your house before you’ve found a new one. How would you and your family deal with living in a transition home for an undetermined period of time?

Buy First:

Buying a new house without having sold your current home may occur if you are interested in a specific property and will only sell your current home if this property comes on the market.  It may be a matter of timing—grabbing hold of the home before it’s too late.  The same might be said of a property you haven’t had you eye on previously, but that catches your attention due to its uniqueness or unbelievable price.  If buying first means you don’t miss out on the real estate opportunity of a lifetime, it may be the best move.

However, be careful. If you buy another property and aren’t able to sell your current home quickly enough, you could end up having to finance both homes and shoulder the extra debt until you sell.  You can get a financial appraisal or market evaluation of a home prior to selling, but this doesn’t guarantee the price you’ll ultimately receive for the home after the negotiation process has run its course.  Since your selling price will be an unknown, jumping into a purchase could be a gamble, particularly if your budget is tight. 

Make sure you’re familiar with all aspects of the financial reality this scenario would create before you purchase another home.  You may be faced with owning two homes at once.  What type of financial stress would this bring to your life and how would you deal with it?  Consider the fact that if your current house doesn’t sell quickly enough, you may be forced to sell it off at a reduced price in order align the closing dates of your two properties.  What effect would this have on your financial situation?

Conditional Offer:

An additional option involves making your offer to purchase conditional upon the sale of your current property within a specified period.  Conditional offers usually include a clause that allows for the Sellers to keep their property on the market and remain open to other offers while you try to sell your home.  If the Sellers receive another attractive offer before you’ve sold your home, they may accept and ask you to either remove your condition and firm up your offer, or to back down from the offer.  A conditional offer forms a kind of middle ground, an area of compromise, for those who are afraid to sell or buy first—but doesn’t hold the advantages of the other two options.

One of the drawbacks of the conditional offer is that Sellers tend to take them less seriously.  They definitely give stronger consideration to firm offers.  This leaves you with less negotiating power.  In fact, some Sellers will simply turn down or counter a conditional offer.  Other Sellers will believe the Buyer will come back with a more serious offer when their home has sold.  So, you may end up having to increase your offer in order to have your conditional offer accepted and keep your foot in the door of your desired house. 

Even if your conditional offer is accepted, there is no guarantee another Buyer won’t step in and overthrow your offer before you have sold your current home, which would put you back at the starting line.  Also, consider the fact that you cannot withdraw your conditional offer until the end of the period specified in the contract—which means that if a better deal comes along, you will have to wait to jump at it. 

Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar.  When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price, and that there will be competing offers—which may net you even more in the long run. 

Your property has the best chance of selling within its first seven weeks on the market.  And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for.  A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value.  About three-quarters of homes on the market today are 5-10 % overpriced.  Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation.  Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive. 

At the other end of the selling spectrum are houses that are priced below a fair market value.  Under-pricing often occurs when the owner is interested in a quick sell.  You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

The knowledge and skills of an experienced Realtor will be invaluable when determining an appropriate asking price.  It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular area.  Based on this range of connections and knowledge, your Realtor should counsel you on how to price your home properly in order to attract the highest price possible, in the shortest period of time.

Before approaching this process, you should first do some homework yourself.  You’ll need to know the workings of the current market before you even begin to think about setting an asking price.  The market will always influence a property’s value, regardless of the state of a home, or its desirability.  Here are the types of market conditions and how they may affect you:

1. Seller’s Market:

A Seller’s market is considered a “hot” market.  This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market.  As a result, these homes usually sell very quickly, and there are often multiple offers.  Many homes will sell above the asking price.

2. Buyer’s Market:

A Buyer’s market is a slower market.  This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers.  Properties are more likely to stay on the market for a longer period of time.  Fewer offers will come in, and with less frequency.  Prices may even decline during this period.  Buyers will have more selection and flexibility in terms of negotiating toward a lower price.  Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer. 

3. Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers.  When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end.  Prices will be stable, and homes will sell within a reasonable period of time.  Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all.

Remember, a Realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible.  The right Realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. 

Evaluate your house in the other main areas that affect market value:

1. Location:

The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market.  Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change. 

2. Property:

The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion and landscaping of the yard.

3. Condition of the Home:

This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

4. Comparable Properties:

Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property.  A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.

5. Market Conditions/ Economy:

The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

Selling your home is a complex process that can be stressful and time-consuming.  An experienced Realtor has the knowledge, skills, and connections to help you through the process every step of the way.  Consider the following benefits of working with a Realtor:

Professional Experience:

With knowledge and training in marketing strategy, negotiation tactics, and the workings of the current real estate market, a Realtor will be able to guide you through the steps of the home-selling process and be able to explain exactly what to expect.  S/he will make you aware of your rights and responsibilities, work with you to strategize the best moves according to your own goals, discuss financing options, and point you in the direction of other specialized professionals who will aid you in different stages of the process.

Best Price:

Realtors have their fingers on the pulse of the current real estate market, and will know what comparable properties in your area are selling for.  They have the resources and knowledge to establish the best asking price and to attract the highest selling price.  With access to their company’s professional marketing resources and connections, they will ensure potential buyers are immediately made aware of your home and market the property to sell as quickly as possible and for the most money.

“Showcasing” Experience:

Your Realtor will know the importance of a property’s first impression.  S/he will have experienced first-hand, for example, the impact a property’s “drive-up appeal” has on the rest of a potential Buyer’s experience of your home.  Your Realtor will be able to offer you tips and information on how to get your home in the best selling shape possible, in order to sell your property quickly and for top dollar.

Access to Qualified Buyers:

Realtors save time and effort by dealing only with qualified buyers.  They have access to a pool of pre-screened and pre-qualified buyers who are serious about buying a home in your neighbourhood.  Realtors work hard to develop this base of qualified buyers which will become an invaluable resource for you.

Negotiation Skills:

Realtors serve many functions, but perhaps the most important is their role as primary negotiator on your behalf.  Your Realtor realizes your goal is to sell your home as quickly as possible, and for the most money possible, and will work closely with you during the negotiation process to facilitate this goal.  Realtors bring to the process the knowledge and skills to draw up legally binding contracts, to assist in negotiating offers and counter-offers, and to offer counsel and perspective as you work toward your selling goals.