Greater Victoria Neighbourhood: Vic West

Vic West is a diverse neighbourhood with modern harbour-front condominium complexes such as the Railyards and Dockside Green, historic hilltop homes and single-family residences.

Geographically, this rapidly growing community is surrounded by water. It features scenic shorelines and accessible walkways, including Songhees Walkway, which connects its shipyards, marina, numerous parks and the Vic West Community Centre in Craigflower Village. On its western border lies the town of Esquimalt.

The Galloping Goose provides a beautiful pathway for cyclists and pedestrians which allows them to commute from the city centre through Vic West to areas to the north over Portage Inlet.

Banfield Park contains areas for active recreation, passive experiences and nature conservation. Vic West Park includes the City's only skate park, an enclosed off-leash dog area, a baseball diamond and playground equipment.

The Vic West Elementary school (SD61) serves families who have children in kindergarten to grade five.

Vic West has seen a great deal of development in recent years, especially adjacent to the waterfront. Property values have generally risen, and the community has embraced new changes while also retaining their more traditional values. For instance, Vic West residents are serious about locally grown food with an active Food Security Collective (https://vicwestfoodsecurity.org). The community also has three gardens including Shine Garden, Banfield Commons and VW Community Tea Garden, and three community orchards including Evans Orchard, Hereward Park Community Orchard and Banfield Park Community Orchard.

Vic West is an eclectic mix of architecture and community personalities.

Finance Minister Bill Morneau Instructed to Review the Mortgage Stress Test

Prime Minister Justin Trudeau has asked Finance Minister Bill Morneau to consider changes to the mortgage stress test. The mandate letter states the finance minister will “review and consider recommendations from financial agencies related to making the borrower stress test more dynamic.”

Canada has stress tests in place for home loans that are insured against the borrower defaulting on their payments and those that are not. The insured test was brought in by the finance ministry, while the uninsured test was instituted by the Office of the Superintendent of Financial Institutions.

Canada’s real estate industry has been critical of the stress test since its inception – especially on uninsured mortgages - for being a drag on the housing market. One being it wasn’t adjusted following a rise in interest rates which put pressure on borrowers.

In his considerations, Morneau must adhere to key principles for implementing the government’s fiscal plans. They include:
•Reduce debt-to-GDP
•Preserve Canada’s triple-A credit rating
•Continue investment in “people and in the things that give people a better quality of life”
•Preserve “fiscal firepower” in case of an economic downturn

Seasons Greetings

Wishing all my clients and families a wonderful Christmas and a very Happy New Year.

Thank you for trusting me with your real estate needs, and I'm looking forward to serving you in 2020.

Jane Logan

Wait for a Price Correction, or Buy Now?

The results from many polls reveal many people feel they should wait for a real estate price correction before they buy. While I can’t fault them on waiting, I always raise a note of caution that it’s exceptionally difficult for anyone to time the market. A quick look at the history of price corrections in Greater Victoria using prices adjusted to 2018 dollars demonstrates why.

In 1994, the people who said, “let’s wait on the sidelines for a price correction” were right for about a year and a half while we saw single detached home prices drop 12 per cent until 1996. However, if they kept waiting because they were hoping for an even larger dip, they waited in vain for the next six years while prices essentially flat lined. In 2002, prices exploded and rose an astonishing 105 per cent. Few saw it coming. Anyone who wasn’t already in the market missed out on the massive surge in appreciation.

In 2011, those who said “wait for a price drop” were correct while prices dropped 10 per cent. But those waiting after 2014 were disappointed as prices once again took off rising 40 per cent.

The problem with waiting on the sidelines for a price correction is, no one knows what housing prices will do in the short term. I encourage my clients to keep in mind what home prices have done over the last 55 years; a steady rise in average value from $80,000 to over $900,000 (in 2018 dollars). Instead of being concerned about timing the market, it’s better to buy when you are qualified, financially capable, and ready to take on a first or new home. Your finances are within your control.
The housing market is not. (Graph courtesy of House Hunt Victoria).

BC Real Estate Association’s Mortgage Rate Forecast

BC Real Estate Association’s December 11th Mortgage Rate Forecast Report predicts the Bank of Canada prime rate is likely to remain flat through to the end of this year and throughout 2020. The average five-year fixed rate is expected to increase incrementally in the first and second quarters, then stay level at 2.95 per cent through the remainder of 2020.

An interesting question they ask is why the Bank of Canada (BOC) is so intent on remaining firm on keeping interest rates steady with so many central banks around the world lowering their policy rates?

BOC reports reflect great concern that lower interest rates would spur a greater accumulation of household debt, which the BOC believes is a greater risk to the Canadian economy than deteriorating global economic conditions. Canadian policymakers have committed to “bending the curve” on the Canadian household debt-to-income ratio, through a combination of higher interest rates and stricter mortgage policy. Balanced against the goal of restraining debt, the BOC sees the risk of further disruption in global trade as manageable.

View full report: https://bcrea.bc.ca/wp-con…/uploads/mortgagerateforecast.pdf

BC Real Estate Association’s Mortgage Rate Forecast

BC Real Estate Association’s December 11th Mortgage Rate Forecast Report predicts the Bank of Canada prime rate is likely to remain flat through to the end of this year and throughout 2020. The average five-year fixed rate is expected to increase incrementally in the first and second quarters, then stay level at 2.95 per cent through the remainder of 2020.

An interesting question they ask is why the Bank of Canada (BOC) is so intent on remaining firm on keeping interest rates steady with so many central banks around the world lowering their policy rates?

BOC reports reflect great concern that lower interest rates would spur a greater accumulation of household debt, which the BOC believes is a greater risk to the Canadian economy than deteriorating global economic conditions. Canadian policymakers have committed to “bending the curve” on the Canadian household debt-to-income ratio, through a combination of higher interest rates and stricter mortgage policy. Balanced against the goal of restraining debt, the BOC sees the risk of further disruption in global trade as manageable.

View full report: https://bcrea.bc.ca/wp-con…/uploads/mortgagerateforecast.pdf

Market Less Volatile as Average Provincial Prices Rise

Sales increased in November throughout the province even while active residential listings were 6.6 per cent lower at 31,310 units compared with November 2018 according to the BC Real Estate Association (BCREA). The sales-to-active listings ratio for all home types held firm at 21 per cent which BCREA considers a balanced market.

Average prices also gained upward momentum in November coming in at $746,939, up 5.5 per cent compared with last November.

Speculation Tax Exemption for Strata Owners

If you own a condo or townhouse that falls under a strata rental ban, your unit will be exempt from paying the speculation tax until Dec. 31, 2021 as per Finance Minister Carole James’ recent announcement. The exemption was originally scheduled to expire this year. The additional time provides some financial relief for owners, but note it only applies to those who bought before the tax came into effect on October 16th, 2018. If your purchase was made after October 16th, 2018, you will be required to pay the tax even if you cannot rent your unit due to your strata.

B.C. and Canadian owners of multiple homes are required to pay a 0.5 per cent surcharge on the assessed value of their properties if they are not rented out at least six months of the year. This “speculation tax” applies throughout Greater Victoria.

Local Micro Breweries Thriving in Victoria

Five Victoria breweries came home with awards from this year’s BC Beer Awards in Vancouver.

Congratulations to the breweries in Greater Victoria including newly opened Ile Sauvage and Whistle Buoy Brewing, along with the established 4 Mile Brewing Co., Lighthouse Brewing and Vancouver Island Brewing.

Ile Sauvage Brewing Company and Whistle Buoy Brewing took top honours in the European sour category for their Shiro Shiro Berliner Weisse, while Ile Sauvage placed third in the smoke-and-wood-aged-beer category and was also named rookie of the year. Whistle Buoy took home a third-place award for its Gulagubben in the specialty beer category. Vancouver Island Brewing’s Hermannator Ice Bock and Dominion Dark Lager placed first and third, respectively, in the dark and strong European categories. Lighthouse Brewing took third place in the spice beer category for its Nightwatch, second place for Shipwreck in the North American IPA category and second place in the Imperial IPA category for Numbskull. Four Mile Brewing placed first for its Hazy Citra Pale Ale in the North American pale ale category.

Canadian Job Numbers Are Out

British Columbia lost 18,000 jobs in November according to Statistics Canada’s Labour Force Survey for November 2019. The Canadian economy lost 71,200 jobs in November and overall unemployment rate went up 0.4 percent from the month before; the worst jobs report since 2009, when Canada was still dealing with the aftermath of the global economic crisis. The natural resources sector had the biggest hit with 25,000 (7.2 per cent) lost jobs. The largest impacts were felt in Alberta and British Columbia.

CTV Report on Victoria Property Assessments

BC Assessment’s preliminary 2020 projected market value for the province includes moderate changes in Greater Victoria, where single family homes could see a 10% drop in value while condos could drop by 5%. However, the assessment agency notes that residential properties could also rise by 5%. It depends on specific neighbourhoods.

The official value changes will be announced on January 2nd, 2020. Check out their current report
https://info.bcassessment.ca//news/Pages/2020-property-assessments-reflect-BC-moderating-markets.aspx

Greater Victoria Neighbourhood: Brentwood Bay

Brentwood Bay is a lovely, picturesque village in Central Saanich situated on the Saanich Inlet. It is home to famous attractions as Butchart Gardens, the Victoria Butterfly Gardens and the Brentwood Bay Lodge & Spa. Once a limestone quarry, Butchart Gardens is now filled with flowers, a luxurious 20-hectare estate attracting over one million visitors a year. Victoria Butterfly Gardens houses hundreds of exotic butterflies flying free in an indoor tropical rain forest. Brentwood Bay Resort offers 36 beautifully designed accommodations featuring king-sized beds, down comforters, gas fireplaces, floor to ceiling windows and spa-like bathrooms.

The BC Ferries terminal in Brentwood Bay connects to Mill Bay, providing an alternative travel route to the Malahat for those traveling up-island. Described as the Island’s most Beautiful Shortcut, this is a very convenient and particularly scenic route across the Saanich Inlet.

This rapidly developing village offers excellent accommodation, waterfront restaurants, and all amenities, and is a jumping off point for kayakers, canoeists and mountain hikers. Hiking aficionados will appreciate the excellent hiking and abundance of wildlife in Gowlland Tod Provincial Park which protects one of the last remaining natural areas in Greater Victoria.

Schools include Brentwood Elementary, Bayside Middle School and Brentwood School of Music.

Interesting fact: The town was originally named Sluggett after an early settler, but it was renamed Brentwood Bay for the British town of Brentwood, Essex, hometown of R.M. Horne-Payne, president of the British Columbia Electric Company in the 1920s.

Yacht club’s Sea of Lights

Friday Dec. 6, the Royal Victoria Yacht Club’s annual Sea of Lights hits the water on December 6th, with boats leaving the Ripon Road club at 6:45 p.m. and passing Cattle Point about 7 p.m. There will be good viewing at Willows Beach about 7:15 p.m., with the Kiwanis Club offering hot chocolate by donation at the Willows Beach pavilion. Hot chocolate and coffee donated by Cadboro Bay businesses will be served.

Selling Your Home During the Holidays?

Some people need to sell over the holidays, and some buyers have no alternative but to buy a home during the holidays. Whether or not it's best to put or to keep your home on the market comes down to personal preference, but there are some benefits and drawbacks you should consider as you make your decision.

Benefits:
Buyers who are looking through Christmas tend to be serious. Few people are ‘kicking tires’ this time of year.

Reduced inventory over the holidays generally means less competition even though the pool of buyers also dips. Canadians from snow-bound areas – meaning most Canadians outside of Victoria – might be motivated to start looking online for a house in our green-year-round city.

If you have a hard-to-sell home with drawbacks and defects, it might rise to the top when there are fewer homes for sale over the holidays.

Drawbacks:
It's inconvenient during the holidays to always be ready for a home showing at a moment's notice. Not everybody wants to keep the house spic and span when cooking, wrapping gifts, and throwing parties.

You're appealing to a much smaller inventory of buyers.

It's difficult to finance transactions in December if the offer is received mid-month. Buyers who want to close after the New Year will probably make offers in January.

Many Realtors® are taking their vacations in December and unavailable as the market moves into a seasonal slowdown.

Tips for Holiday Showings: 
Scale Back the Holiday Decorations. You don't have to altogether avoid putting up a Christmas tree, menorah, or any other seasonal displays, but you should aim to keep the decorations to a minimum. Don't block or cover selling features such as fireplace mantels, stairs, or stained-glass windows. Too many decorations can be overwhelming and distracting. Don't make the mistake of thinking buyers will "see past it," because they likely will not.

Use Seasonal Smells to Your Advantage. People are motivated to buy through emotion, and some of our deepest and dearest emotions are linked to the smells of the holiday season. Setting out a plate of cookies on the counter along with festive paper napkins for guests or spicy apple cider simmering on the stove along with cups and serving utensils will go a long way to making your home smell wonderful.

If you need to sell or buy your home during the Christmas season, give me a call to discuss strategies.

Surveying Canadians About Debt

Debt is on Canadian’s minds according to a survey conducted by Manulife which, rather alarmingly, is called “Is Household Debt Cracking Canada’s Financial Foundation?” The survey claims two in five of their respondents are worried they will not get out of debt in their lifetime.

However, it goes on to stipulate that most Canadians are comfortable with their mortgage obligations; 73 per cent stating they feel “somewhat or very” comfortable with the amount they owe on their mortgage, and 22 per cent saying they feel “very” comfortable.

How many Canadians currently have a mortgage? 42 per cent own a house or condo and are paying a mortgage. Breaking it down by demographic, 58 per cent of the Gen-Xers, 46 per cent of the Millennials and 30 per cent of the Boomers. They lower number of Boomers with a mortgage is partly because more of them managed to pay it off.

Greater Victoria Neighbourhood: View Royal

View Royal is an attractive, largely residential community in the centre-west part of the Capital Region traversed by Highway 1 (Trans-Canada Highway) and the Island Highway. View Royal contains a rich variety of ecosystems including the salt-water environment of Esquimalt Harbour and Portage Inlet, the blending of salt and fresh waters in Craigflower and Millstream Creeks and their estuaries, and the freshwater ecosystems of Thetis, Prior and McKenzie Lakes. The terrestrial environments are equally interesting and varied, ranging from the moist Douglas Fir forest habitat to the drier, rockier areas that produce the unique Garry Oak meadows.

View Royal is divided into eight neighbourhoods which include Atkins, Burnside, Craigflower, Harbour, Helmcken, Hospital, Thetis and Wilfert. The Victoria General Hospital is centrally located and is one of the largest employers on Vancouver Island accounting for at least one third of the approximately 4,000 jobs in View Royal. Elements Casino on the Island Highway is another large employer and a fun, high energy venue for evening entertainment.

There are many things to enjoy in View Royal. It contains numerous municipal parks and 25 kilometres of trails. The well-known Thetis Lake is along with McKenzie and Pike Lake are contained within the municipality. Beautiful ocean shorelines include sandy beaches with fun-to-explore small caves, large driftwood piles and rocks, starfish, crabs, seals and an abundance of marine life.

Two historic “road houses” or pubs include the Four Mile Pub & Six Mile Pub. both have existed for approximately 150 years.

Craigflower Manor & Schoolhouse Is National Historic Site of Canada as one of four original farms set up by the Hudson's Bay Company which housed the McKenzie family in the Manor, a saw mill, a flour mill, a blacksmith's shop, a brick kiln, slaughterhouse and a general store.
Schools in View Royal include View Royal Preschool and Elementary school, Eagle View Elementary School and Shoreline Community Middle School.

View Royal is a centrally located community gem well worth considering as your next place to live.

FortisBC on Upgrades to Older Apartment Buildings

A new study by FortisBC found that upgrading older apartment buildings and making them sustainable will not only contribute to the reduction of carbon emissions, but also help owners reduce maintenance costs.

Based on the estimates of the study, simple energy-efficiency upgrades have the potential to reduce carbon emissions in British Columbia by about 200,000 tonnes annually, which is equivalent to removing 43,000 gasoline-powered cars from the road.

Around four in five rental apartments in BC were built more than three decades ago to lower efficiency standards, said FortisBC director of conservation and energy management Danielle Wensink.

In 2015, FortisBC began its Rental Apartment Program to help owners in the province upgrade their apartment buildings. The program helps replace ageing and less-efficient boiler systems. Since its launch, it has helped more than 800 buildings across the province receive upgrades like energy-efficient taps, faucets and showerheads that reduce water consumption and energy usage.

One of the achievements of the program is the reduction of domestic hot water-energy use by an average of about 12% per year. The water savings reached the equivalent of filling close to 110 Olympic-sized swimming pools or running a garden hose non-stop for over 20 years. It has also lowered carbon emissions by almost 15,000 tonnes.

Read more at: https://www.fortisbc.com/news-events/media-centre-details/2019/11/12/new-data-from-fortisbc-reveal-the-impact-of-making-older-apartments-more-sustainable

Growing population, declining mortgage rates speed up B.C. housing recovery

Bryan Yu is the Deputy Chief Economist for Central 1 Credit Union. Speaking on a report recently released by Central 1, he predicts a stabilization in the pricing along with some upward momentum in the housing market throughout the province.

A tight labour market, immigration and population growth and low mortgage rates are working together to build momentum.

Read the full article here: https://www.timescolonist.com/growing-population-declining-mortgage-rates-speed-up-b-c-housing-recovery-1.24017939?fbclid=IwAR0K41yxGzvyGV7aMoWbsFsoBIEr7Tm5Ho70wlARuvPzST7zASu6pQaMas8

Gingerbread for Christmas Event

Love gingerbread houses?

Check out The Habitat for Humanity Gingerbread Showcase, presented by Revera. It’s the ultimate holiday treat full of sensational edible creations which you can donate to vote for your favourite.

All the proceeds support Habitat’s affordable homeownership program. The Gingerbread House Showcase is at the Parkside Hotel and Spa – 810 Humboldt Street.

More info at https://www.habitatvictoria.com

Looking at Timeshares Outside of Canada? Three Things to Consider

When you want to travel and spend some time in warmer places, but you can’t get away for an extended period, purchasing a timeshare may seem like the perfect solution. However, many people may not be aware of the potential complications associated with purchasing and/or selling a timeshare located outside of Canada. Here are the three main challenges:

1. Obtaining a legal opinion is the most significant issue. Lawyers in Canada are not permitted to provide advice on the law in other jurisdictions. If you’re looking at a timeshare in Mexico, you need a lawyer licensed in Mexico to provide a legal opinion. Unfortunately, it can be difficult to know which law firms in other countries will be able to best assist you if you’re unfamiliar with the area. You might also face a sizeable retainer fee up front to ensure the legal bills are paid, given that you reside in another jurisdiction.
2. The decision to purchase a timeshare is often based on the belief you can save money in the long run. That might be true but remember timeshares might be overpriced due to the sales commission inherent in the charge. Don’t sign until you’re satisfied with your own research.
3. Selling your timeshare and/or terminating the contract early will depend on the documentation you signed when you purchased the timeshare. There are often clauses included in the contract that either do not allow for early termination of a contract, or require you pay a hefty penalty.

My purpose isn’t to dissuade you. A time share might be a good idea for you and your family. The best advice I can give, as always, is do your research – especially when you’re facing high-pressure sales tactics.

Reference: http://www.rbc.com/economics/economic-reports/canadian-housing-forecast.html

RBC Economist Predicts the 2019 Canadian Housing Market is a “Turning Point”

RBC Economist Predicts the 2019 Canadian Housing Market is a “Turning Point”
A report from senior economist Robert Hogue, reflects on a year where the Canadian Housing Market faced challenges but also saw a return to more normal conditions with inventory tightening, buyer demand and prices rising.

He notes that sales in October were 7.3% above the 10-year average and prices increased 1.8% year-over-year as the pace increased over the past four months.

He highlighted the scant housing inventories in Ottawa, Montreal, and Halifax and tightening inventory in Toronto and Vancouver.

However, he stated the market is in better shape than it was at the start of 2019 due to low mortgage rates, solid labour markets, and strong population growth in Canada, with the exception of the prairies where sales and prices continue to lag.

His 2020 Predictions:

• Outside of the Prairies, demand and prices will rise at a moderate pace.
• Affordability in Toronto and Vancouver will continue to be a concern even after improvement in 2019.
• The housing market should be further supported by any expansion of the first-time homebuyer incentive.

Reference: http://www.rbc.com/economics/economic-reports/canadian-housing-forecast.html

Report from CREA on Canadian Real Estate in October

Canadian homes sales held steady in October from the previous month after a string of monthly increases that began in March, the Canadian Real Estate Association (CREA) reported on Friday, November 15th.

The industry group said actual sales, not seasonally adjusted sales, rose 12.9% from a year earlier, while the group's Home Price Index was up 1.8% from October last year.

Read the full report: https://creastats.crea.ca/en-CA

Enjoy Bach

Bach’s melodies are still so culturally relevant that contemporary musicians have reused them several times throughout the centuries since his death. You can hear Bach references in pop music and jazz. There is something for anyone, and Bach’s work can be played on any instrument.

Enjoy some of the best of Bach by Victoria Chamber Orchestra Concert on Friday, November 22nd, from 7:30 - 9:30 PM at the First Metropolitan Church, and then on Sunday, November 24th, 2:30 PM at the Honeymoon Bay Community Hall.

Tickets for each event are $20 Adults; $15 Seniors (over 65) & Students; free admission for Music Students. Find out more details HERE: http://www.victoriachamberorchestra.org/2019-2020-concert-season.html

Greater Victoria Neighbourhoods – Malahat

When we hear about the Malahat, it usually evokes thoughts of the long drive over the mountain for which our vehicle must be fitted with winter or all-season tires this time of year. It’s not often considered as a place to live, and that’s a shame because it’s a beautiful area. The Malahat Area is nestled in a mature rain forest with steep cliffs and spectacular views of the Gulf Islands and the Saanich Peninsula.

The approximately 1,200 sq. km. Malahat & Area district is sub-divided into 5 neighbourhoods: Cobble Hill, Malahat Proper, Mill Bay, Shawnigan Lake and Sooke Lake. To the North is the community of Shawnigan Lake and Mill Bay. Beyond Mill Bay is the farming village of Cobble Hill. Much of the western portion is undeveloped.

Mill Bay, 41 km north of Victoria, features quiet waterfront streets and delightful views of the Gulf Islands. The serene parks and scenery are perfect for hiking, cycling and boating. As an alternative route, B.C. Ferries operates a regularly scheduled service from Brentwood Bay. If you haven’t tried it, do. It’s a relaxing alternative to driving over the summit.

Located on the eastern shore of the lake, Shawnigan Lake Village contains two small general stores, three restaurants, several beaches and various small businesses. It is well-known for arts and craft shows. An excellent museum is run by the Shawnigan Lake Historical Society.

Cobble Hill, surrounded by a picturesque landscape, is a creative community for painters, sculptors, potters and totem pole carvers. The warmer weather is ideal for wineries that have begun operating in the Cowichan Valley in the last few decades.

The Malahat features a diverse selection of homes for sale in a natural community setting away from the city, and while the drive may not appeal to you if your job is in Victoria proper, a growing number of employees, especially government employees, are enjoying the privilege of working at least part-time from home. (See B.C. government’s mandate for “flexible workplaces” https://www2.gov.bc.ca/gov/content/careers-myhr/all-employees/work-arrangements/flexible-workplaces.)

Schools include George Bonner Elementary, Frances Kelsey Secondary, Shawnigan Lake School and Brentwood College School.

Why Are Household Savings Important?

High savings rates are good for future growth, and long-term economic prosperity. Household savings can be used to finance capital investments. They also provide cushioning for an economic downturn, allowing for a more rapid recovery.

It can be tough to save money and budgeting is key. Here are a few apps and website reviewed by ratehub that could be helpful: https://www.ratehub.ca/blog/the-best-money-saving-apps-and-money-management-apps-in-canada

Canadian Households Owe Over $2.24 Trillion In Debt

Canadian households are still into debt, just not if it’s for anything other than a house. Bank of Canada (BoC) data shows household debt reached a new high in September. While mortgage debt is accelerating, other forms of consumer credit are decelerating. The balance of household debt reached $2.24 trillion in September, up $82.0 billion from last year. Most of the household debt is tied to mortgages representing $1.60 trillion of the September balance, up $63.8 billion from last year.

Canadians Are Saving Less Than 10 Years Ago

Canadian savings rates are dropping. the past 12 months, they managed to save $15.62 billion though, a decline of 29.52% from the same period a year before. Households spent $5.82 billion in savings in Q2 2019, The rate of savings fell to negative 1.9% in Q2 2019 when households spent $5.82 billion in savings.

It’s worth pointing out that this is the quarter where real estate sales were also the highest, so a good portion of that negative print is likely going into down payments.

Reference: https://betterdwelling.com/canadian-households-are-saving-a-quarter-of-what-americans-do

Federal Foreign Real Estate Speculator Tax

Prime Minister Justin Trudeau and his Liberals campaigned on taxing offshore buyers, and it’s expected the federal tax on foreign real estate speculators will be passed by Parliament.

Parliamentary Budget Office expects the tax to take in $217 million in revenue for the first year.
The one per cent tax would apply to all residential properties owned by non-Canadians, including corporations and trusts, but homes, condos and townhomes rented to tenants who are not immediate family members will be exempt.

The tax mimics what some provinces have already implemented. Our province implemented a 15% property transfer tax on foreign property buyers in downtown Vancouver in 2016, which the NDP increased to 20% and expanded to include more regions.

Reference: https://canoe.com/news/national/federal-foreign-real-estate-speculator-tax-expected-to-pass

Head Over Tails in Love – One Day Promotion

Are you planning on adopting a new furry family member? This Saturday, November 9th B.C. SPCA hoped to boost the number of adoptions this month with a one-day half-price promotion at all 36 SPCA adoption centres in B.C. which will allow animals to enter new loving homes for up to 50 per cent off the usual adoption fees. 

Victoria adoption and registration fees range from $15 for a hamster or gerbil to $624 for some breeds of puppies. Fees include veterinary examination, spay or neutering, removal of any fleas, de-worming and implant of a microchip identification tag under the skin.

Federal Foreign Real Estate Speculator Tax

Prime Minister Justin Trudeau and his Liberals campaigned on taxing offshore buyers, and it’s expected the federal tax on foreign real estate speculators will be passed by Parliament.

Parliamentary Budget Office expects the tax to take in $217 million in revenue for the first year.
The one per cent tax would apply to all residential properties owned by non-Canadians, including corporations and trusts, but homes, condos and townhomes rented to tenants who are not immediate family members will be exempt.

The tax mimics what some provinces have already implemented. Our province implemented a 15% property transfer tax on foreign property buyers in downtown Vancouver in 2016, which the NDP increased to 20% and expanded to include more regions.

Reference: https://canoe.com/news/national/federal-foreign-real-estate-speculator-tax-expected-to-pass

Bank of Canada Maintains Overnight Rate Target at 1 ¾ Percent

The BOC expects growth in Canada to slow due to uncertainty associated with trade conflicts. Business investment and exports are likely to contract before expanding again in 2020 and 2021.

Government spending and lower borrowing rates are supporting domestic demand. The services sector remains robust and wage growth is picking up. Consumer spending has been choppy but is supported by solid income growth. Finally, housing activity is picking up in most markets. The BOC remains cautious due to global slowdowns in manufacturing and investments.

Greater Victoria Neighbourhoods – Cordova Bay

Cordova Bay is a serenely beautiful region of south Vancouver Island. Bounded by the Central Saanich municipality on the north, Haro Strait on the east, Patricia Bay Highway on the west and Broadmead residential area and Blenkinsop Valley on the south, it is accessed via Sayward Road just north of Elk Lake and Royal Oak Drive via Highway 17 (between Victoria and Swartz Bay).

The bay and gorgeous sand and pebble beach with nearby seaside cottages and restaurants is only minutes from Victoria by car or bicycle and is a delightful area to explore year-round. The area’s charms include a meandering road between Claremont Ridge and the oceanfront, beach access and single-family homes on the shore side, a “small village feel,” along with plenty of green space and the absence of box stores or large commercial areas. There are several public access points to the beach along Cordova Bay Road and the beaches are popular for swimming and sunbathing on warm summer days.

The most prominent topographical feature is the ridge running its length from sea level up to 90 meters then dropping again to meet Elk Lake on the west side. The ridge affords breathtaking views of Haro Strait, Mt. Baker, and the San Juan Islands to the east and Elk Lake and the Sooke Hills to the west.

Residents and visitors enjoy a delightful blend of relaxing spaces and unique shops featuring the works of local artisans at Mattick’s Farm. The whole family can enjoy outdoor fun with mini golf, high tea at Adriennes and locally grown meats and produce at Red Barn. https://www.matticksfarm.com

Close by, the Cordova Bay Golf course is a beautiful testament to the sport. Their staff are friendly and helpful, the flower beds, shrubbery and trees add to the beauty of the course, and the vistas are exhilarating. As one of their admirers put it, "The Cordova Bay facility and its staff have been integral to the development of the love of golf for our entire family.” http://www.cordovabaygolf.com
There is a good selection of schools in the area which include Carrot Seed and Cordova Bay Preschools, Lochside, Frank Hobbs and Cordova Bay Elementary, Royal Oak Middle School, Claremont Secondary and Lakeview Christian School.

Cordova Bay is a mix of suburban, rural residential and agricultural land use. While Saanich counsellors are working with the neighbours, developers and the community association to allow development while preserving the charm and character of Cordova Bay, there is no doubt among residents the area is at a crossroads. Modest beachfront houses continue to be replaced by large upscale houses valued in the millions. Planned developments are poised to add more than 450 residential housing units to the area. These projects include Sayward Hill – an eight-storey building with 46 condos, a mixed-housing development to build 309 homes at the former Trio Ready-Mix gravel pit, 25 condos in a four-storey building at Doumac Avenue, and plans to redevelop the Cordova Bay Plaza features 37,000 square feet of retail space - more than doubling the size of the grocery store - and the addition of 85 new condos.

Four Mile Pub Closed for Repairs after Fire

One of Victoria’s oldest pubs was swarmed by 42 firefighters from Langford and Esquimalt just before 2 pm on Tuesday, October 22nd. It took nearly an hour to find and control the the blaze by cutting through the walls and floors to get to it.

The pub has gone through many renovations over the years which made it more difficult to locate the fire. The cause has not yet been released.

The old Tudor style building which houses the Olde English Inn pub is located just outside downtown Victoria and has been serving the public for over 100 years.

Collecting Personal Data for the Speculation Tax

B.C.’s Office of the Information and Privacy Commissioner last week ruled that the Ministry of Finance can collect, use and disclose taxpayers’ personal information under the Speculation and Vacancy Tax Act.

The commissioner’s office opened an inquiry after receiving complaints the Finance Ministry had exceeded its authority by collecting social insurance numbers on the declarations. The office also received letters of concern about collection, use and disclosure of names, addresses, dates of birth and email addresses.

Adjudicator Erika Syrotuck said she was satisfied that the information collected relates to and is necessary for administering the tax.

In her ruling, Syrotuck agreed with the Finance Ministry that a social insurance number was necessary to determine whether the filer was Canadian and to calculate tax owing. Syrotuck said the province is not required to get federal approval to use social insurance numbers, and that B.C. can share information collected with the Canada Revenue Agency under agreements.

The tax is a major component of the government’s $6.5-billion plan to deliver 114,000 affordable homes over the next 10 years. The government said the speculation tax will target foreign and domestic real estate speculators, increase the amount of rental homes and provide revenue for housing initiatives.

The tax affects only properties in the Greater Victoria, Nanaimo, Central Okanagan, Fraser Valley and Metro Vancouver areas. All property owners are required to file a declaration, which is used to determine whether the tax should be paid.

Real Estate Policy After the Election

The re-election of Justin Trudeau’s Liberals will likely result in help for first-time home buyers and potential new barriers for foreign real estate investors. The Liberal’s promises on housing included some expansion of its first-time buyer’s assistance program, and a one per cent tax on vacant homes owned by non-Canadians.

What we’re now very unlikely to see is the demand-side stimulus that was promised by both the NDP and the Conservatives in the form of longer amortization and potential easing of the stress test. Many pundits feel that’s a good thing because such policies could have pushed prices up further.

Loans Secured by Residential Property

Loans secured by residential property, are when homeowners pledge home equity as collateral. If the borrower doesn’t pay the loan back, the lender can recoup losses by selling the collateral. Since the lender has a lower risk, they can charge the borrower a much lower interest rate. The most common form of this loan is a home equity line of credit (HELOC), but there are other types of loans as well.

HELOCs can be beneficial if used properly. The one issue is when real estate prices move quickly, the amount of equity homeowners will have access to can fluctuate. In the event real estate prices ever fall, this amplifies risk for homeowners because they would lose not only the on-paper value of the home, but the debt remains the same until paid down. This could leave borrowers with less equity than they expected.

The balance of loans secured by residential property reached $303.41 billion in August.

Home Renovations that Add or Detract Value

On Thursday, the Times Colonist ran an article entitled “Home renovations with the best financial, emotional return for owners.”

“Dream kitchens and luxurious bathrooms are often the go-to renovations for homeowners looking for the best return on investment, but experts suggest the biggest bang for their buck might be as simple as replacing a garage door,”

Dollar-for-dollar returns tend to come from smaller tweaks. Swapping kitchen hardware, installing new light fixtures or removing outdated decor, such as wallpaper, can help. Kitchens and bathrooms, on the other hand, often don't boost the sale price by the cost of the renovation.

Some additions you might think would be valuable end up being a detriment and could lead to lower prices. For example, personalized design choices such as bright, not-neutral paint colours, or less-common features that can be expensive to maintain like wine cellars, saunas, hot tubs or swimming pools.

Reference: https://www.timescolonist.com/home-renovations-with-the-best-financial-emotional-return-for-owners-1.23986438

Real Estate Investment

Maclean’s published a story titled “Is real estate still a good investment for Canadians?”
Wednesday, October 23rd.

The article focuses primarily (but not exclusively) on buying a home as an income property and concludes with this,

Bottom line: Canadians can still confidently invest in real estate... real estate is still a viable way to build and grow your investment portfolio. While 2018 numbers appeared bleak, by 2019 the climb out of negative growth forecasts was already taking place. According to CREA, the national sales activity was on target to increase by five percent in 2019 and forecasted to grow by 7.5 percent in 2020. The national sales price was also on track to climb with only a slight nudge up in 2019 (of 0.5 percent).

Read the full article at https://www.macleans.ca/sponsored/investing-in-real-estate-in-canada

Greater Victoria Neighbourhoods – Metchosin

The District of Metchosin may be a tiny rural area but it is big on heart and strong on community. With a population of just under 5000 on roughly 30 square acres of farmland and second-growth forests, this is the perfect spot for anyone who loves small-town life, friendly neighbours, and communing with nature.

The farming community is Mecca for those who bask in the glory of the outdoor life. Imagine long stretches of pristine hiking trails, sublime pebble beaches, and cool marshlands for bird watching. Think of sailing on one of the many regional lakes or through the ocean’s mist, watching a fiery sunset paint orange streaks on the cool blue watery glass. Explorers and adventurers have been fascinated by Witty’s Lagoon for a long time, marvelling at its wetland area. It's unique ecosystem attracts tourists in all seasons.

The country life, amidst the wonders of nature, seems to draw out people’s artistic and creative inner child. Metchosin is a beehive of imagination and creative expression. Crystals and handmade gifts adorn the walls of Metchosin Country Crafts. Award-winning and internationally renowned ceramic artists Robin Hopper and Judy Dyelle have been turning out exquisite pottery for 75 years on their six-acre farm. Their 'Chosin pottery business includes two studios, a gallery and showroom.

Little Metchosin is an important player on the world stage. It is home to Pearson
College, ‘Canada’s School for the World’, accommodating up to 200 students from 150 countries eager to make this planet a smarter and kinder place. This rural community also encourages future artists at the Metchosin International Summer School of the Arts.

Westmont Montessori School, Metchosin Elementary School, Metchosin Co-op Pre-School, and Hans Helgesen Elementary school keep the youngest Metchosin citizens well-informed and knowledgeable. The community is a member of West Shore Parks and Recreation, which offers a wide variety of recreation facilities and activities for Metchosin residents.
Sometimes living on a smaller scale means reaping bigger rewards.

Housing Affordability Survey

Online real estate company Zoocasa conducted an online survey of over 1,300 respondents between Sept. 17 to Sept. 29 wherein 91 per cent of respondents said the cost of buying a home has risen faster than their income making it difficult for middle-class earners to buy their first home.

Despite the rising costs, respondents felt that home ownership was an important part of life in Canada: 31 per cent of respondents think, “people should own a home or property by the time they are between 31 and 35 years old,” while 29 per cent say this should happen between the ages of 26 and 30.

Homeowners felt that owning a home has helped them to build wealth. Yet, while 69 per cent of them feel that they have benefitted financially from owning a home, “54 per cent of these respondents say their housing costs have increased faster than their income since they purchased their home.”

You can read more results from the poll here: https://biv.com/article/2019/10/84-canadians-feel-housing-affordability-negatively-affects-their-lives

What Does a Liberal Minority Mean in Terms of Real Estate?

Canadians across the country went to the polls Monday, Oct. 21 and gave Justin Trudeau another opportunity to lead Canada with a minority government.

If you’re a first-time home buyer, this means you’ll be looking for the Liberals to make good on their promise to expand the First-Time Home Buyer Incentive to allow buyers in Toronto, Vancouver and Victoria to qualify for up to $769,000 instead of $505,000 like the rest of the country.

The Liberals also promised a 1% speculation tax on non-residents and non-Canadians. What that means and whether it has the intended effect of slowing down demand remains to be seen.

Immigrants Help Drive Canada’s Housing Market

A recent poll of 1,500 people who arrived in Canada in the last ten years found half chose Canada because it’s a good place to live and work. 31 per cent said they received a better reception for immigrants in Canada and 26 per cent said Canada is a safer place to live.

In addition to supporting Canada’s economic growth, newcomers to Canada are vital to the health of our national real estate market, accounting for approximately a fifth of the housing market.

Immigrants may purchase 680,000 homes during the next five years if migration levels continue.
46 per cent chose to live in Ontario, Quebec drew 19 per cent, and B.C. came third with about 13 per cent of newcomers to Canada. Approximately 89 per cent came to our province with savings to buy a house according to Statistics Canada.

Don’t Forget to Vote!

Today is our federal election. If you haven’t already hit the advanced polls, make sure you get your vote in today, because it matters. When voters don’t turn out to choose their government, they receive a government that doesn’t represent them.

Here is a useful resource from elections Canada for you to find out where you can vote. The polls will be open for 12 hours.
https://www.elections.ca/content2.aspx?section=vote&document=index&lang=e

Greater Victoria Neighbourhoods – Colwood

Colwood is an award-winning city. Just a few of the categories are Vancouver Island Green Business, Top 100 Canadian Neighbourhoods, Community Excellence Award, and Climate and Energy Action Award. Colwood is an ‘up and coming’ city, with multiple amenities and many progressive initiatives that raise the quality of life of residents. Beauteous natural panoramas and resplendent places to relax, walk and catch a sunset put the shine on one of the most desirable places to live on Vancouver Island. It even has a castle!

Getting around Colwood is a joyous and comfortable experience. Local transit is quick and efficient and the Galloping Goose Trail meanders through lush countryside, accommodating walkers and cyclists. For those who are trying to reduce their carbon footprint, there are numerous free, public electric vehicle charging stations in Colwood. Over 50 parks and trails provide plenty of opportunity to get out, feel the sun on your face and the wind on your back. Just a few teasers: Bee Creek, a small stream in Colwood flowing into Esquimalt Lagoon; Colwood waterfront and lagoon, featuring miles of breathtaking ocean beaches; and a national bird sanctuary. Avid golfers will hit their stride at the Royal Colwood Golf Course.

A rich colourful history lies behind the peaceful serenity of Colwood. Travellers from around the world come to see the many national historic, cultural and environmental landmarks that rest in some of the most spectacular scenery in BC. Hatley Park, home to Royal Roads University, is also host to one of the most ravishing series of gardens in Canada, Hatley Gardens. Within the grounds of the university stands a towering palatial relic of an elegant past, Hatley Castle.

Colwood has a thriving Arts community. Coast Collective is a new innovative art centre and an accessible showcase for Fine Art. The community’s family theatre, Four Seasons Musical Theatre, has provided joyous entertainment since 1975. Families have access to numerous schools, such as Colwood Elementary School, Dunsmuir Middle School, and Royal Bay Secondary School. The primary recreation centre serving Colwood is Juan de Fuca, with a pool, swirl pool, sauna, curling rink, and a fitness studio.

Give yourself a well-deserved award -- consider Colwood as your forever home. 

Housing Policy Focus

First-time home buyers – those who are in their 20s and 30s – are in the process of making major financial decisions and they are paying attention to candidate’s messages in the upcoming federal election.

As a consequence, a good deal of policy is focused on helping first-time buyers into the housing market.

Politicians are largely focused on ‘demand stimulus’ ideas. These are policies to help buy homes in our big cities, but where we don’t have enough homes for sale to satisfy the current demand, let alone increased demand.

Our politicians also need to address how these homes will be provided. In other words, lower barriers to building homes we need to meet the demands of a growing population.

Otherwise a surge of new buyers – increased demand with constrained supply – could cause prices to escalate and erase any benefit from stimulus packages.

Love Bird Watching?

At the peak of the migration, you might see up to 1,000 turkey vultures and other raptors kettling (a term that birders use to describe a group of birds wheeling and circling in the air). The migrating birds visit our area from mid-September to late October around East Sooke Regional Park.

The southbound birds use the park as a staging area to rest and feed before they make a 29-kilometre crossing over the Juan de Fuca Strait on their way to Olympic National Park in Washington state.

The most common raptors you can expect to see are turkey vultures, bald eagles and red-tailed hawks. Other less common raptors that may be present include Cooper’s hawk, sharp-shinned hawk, peregrine falcon, American kestrel, merlin, northern harrier and osprey.

Beechey Head is an excellent place to observe raptors during their fall migration.

Reference: https://www.timescolonist.com/entertainment/explore-birds-of-prey-flock-to-east-sooke-1.23965105

The Arts - Art Gallery of Greater Victoria: Celebrating Art by First Nations Women

The Art Gallery of Greater Victoria is celebrating Matriarchs: Two-Spirited, Coast Salish artist from Shíshálh Nation, Margaret August brings together a selection of prints in celebration of the First Nations women that inspire her and will inspire you too!

The exhibition features work by Kelly Cannell, Francis Dick, Lou-ann Neel, Sage Paul, Susan Point, Marika Echachis Swan and Carrielynn Victor, as well as Margaret August. The Matriarchs: Prints by First Nations Women exhibition runs until November 24th.

For more information, go to https://aggv.ca/events/celebration-of-matriarchs-featuring-answer-drum-group/

Greater Victoria Neighbourhoods – Sooke

Sooke embodies the quintessential West Coast spirit and lifestyle – one of freedom, a certain wildness, and a celebration of nature’s bounty. The oceanside paradise has all the elements of good living: the enjoyment of sunsets, rocky shores, and beautiful homes; wonderful activities for all ages; tantalizing food; and the pursuit of art, knowledge and wonder.

This west island community has everything to thrill the outdoor enthusiast. Fans of walking, skateboarding, horseback riding, and cycling have their own special corridor - the Galloping Goose Regional Trail. This walkway winds through the countryside for 55 kilometres. A cool swim on a hot afternoon does not get any better than a plunge into Sooke River at Sooke Potholes Provincial Park. East Sooke Park provides walking trails along the rugged rocky edges of a turbulent ocean. Enjoy a gentle stroll along Whiffen Spit, a sandy appendage into the aqua blue.

For an art and culture infusion, the Marshall-Inman Gallery showcases stunning ceramic and wooden marvels. Master Carver Brett Borrie creates magic in precious metals at B & K Jewelry and Gifts. The South Shore Gallery is a venue for local artisans to display their talents in paintings, prints, ceramics, and glass.

Trip Advisor awarded The Sooke Region Museum with a 'Certificate of Excellence' due to rave reviews from customers around the globe. At Saltwest Naturals, you can watch how they distill salt from the ocean and sample their delicious products. The first 'meadery' in Western Canada, Tugwell Creek Honey Farm and Meadery staff wave a wand over their freshly made honey and turn it into ambrosial mead wine.

The humble little town on the island's edge has internationally celebrated restaurants such as
Sooke Harbour House, 'Diner's Choice Award' winner in 2018. On a smaller scale, Mom's Cafe is a popular local favourite. SEAPARC Recreation Centre in Sooke has programs in arts, recreation, sports, fitness and health. The many exceptional schools include John Muir Elementary School, Poirier Elementary School, Saseenos Elementary School, and Sooke Elementary School.

Once you get a taste of the Sooke lifestyle, resistance is futile!

BC’s Economy Will Not Improve According to Jock Finlayson - executive vice president and chief policy officer of the Business Council of BC

Residential home sales have fallen markedly in the last year or so. Recently, however, lower interest rates and earlier price declines have improved affordability, with home sales moving higher.

Some market watchers believe the housing down-cycle is over. But the Ministry of Finance estimates that residential sales in 2019 will hover near 46,000, down from almost 74,000 two years ago.
At the same time, housing starts, which have been strong so far this year, are poised to slump, in line with reduced demand from non-resident buyers and decisions by many B.C. developers to pull back from planned projects.

The provincial government predicts that housing starts will drop by more than one-fifth in 2020.
The deteriorating global economy is another major worry. Slower growth in major external markets, including the U.S., China and Germany, is already beginning to pinch B.C.’s exports.
Through July, the value of provincial exports was down by three per cent from 2018 levels. The forest industry has suffered the biggest blow, with wood product exports sagging by around 20 per cent. There is little chance of a meaningful export recovery in 2020.

The rolling economic crisis in the forest sector is another significant negative in B.C.’s economic picture. Mills are closing and jobs are being lost across the province. Forestry provides one-third of B.C.’s merchandise exports.

Dwindling residential investment will detract from aggregate economic growth. It will also work against the policy objective of enhanced affordability, which – among other things – requires an increased supply of new housing units.

Reference: https://www.vicnews.com/opinion/column-and-now-the-bad-news-about-b-c-s-economy

New Downtown Development Up for Community to Decide

The city’s official community plan allows for 8-story buildings. However, Chard Development wants to build two new buildings — one 13 storeys and the other 6 storeys — and retain an existing five-storey medical professional building on Yates.

The project features a central courtyard, daycare spaces, hidden utility lines, pedestrian and transit improvements, and underground parking. Of the 217 residential units, 104 will be sold at below-market value.

Councillors raised concerns about the project’s height and lack of rental units, and they’ve decided to move it into a public hearing.

“Is this perfect? No. Is it really great? Yes,” Councillor Marianne Alto said. “And I certainly think it’s great enough to move on to a public hearing.”

“At that point, I would look forward to hearing what people think about applications like this.”
What do you think? Would you like to see this 13-story building become a reality on Yates?

To learn more about this, read the Times Colonist story HERE

National Housing Debate & Housing Platforms

The National Housing Debate took place in Ottawa on Sunday, and Canadians got one final chance to hear representatives from the five major political parties outline their stance on issues related to housing and home affordability before the October 21st election.

It’s no secret that the party representatives have wildly different approaches to tackling housing issues, and that was made even clearer during the debate.

Here is a succinct look at each party’s housing platforms:

Conservative Party of Canada
The Tories would loosen stress test stringency and eliminate it for renewals to prevent banks from gouging borrowers with uncompetitive rates. They would also allow first-time buyers 30-year amortizations to lower their monthly payments. Finally, they would set aside surplus federal lands for housing developments to help with supply constraints and deeply investigate money laundering.
Liberal Party of Canada

The First-Time Home Buyer Incentive was introduced and became operational early September. If re-elected, the Liberals would expand it to allow buyers in Toronto, Vancouver and Victoria to qualify for up to $769,000 instead of $505,000 like the rest of the country. The program allows the government to share in equity gains—and losses. Additionally, the Liberals have also promised a 1% speculation tax on non-residents and non-Canadians.

NDP
The NDP has a list of over 30 promises to make housing more affordable. One of them is developing 500,000 affordable units over 10 years, $5 billion of which will be spent within the first 1.5 years of the party’s rule. To build co-ops, social and non-profit housing, the NDP has promised “fast-start funds” to ensure construction commences as soon as possible rather than years down the line. The federal GST/HST will be waived on affordable housing construction to stimulate development, and it will re-introduce 30-year amortizations to lower monthly payments.

The boldest move is the 15% foreign buyer tax it would impose on non-residents and non-Canadians who own housing anywhere in the country.

The NDP has also said it will double the Home Buyers Tax Credit to $1,500, and facilitate co-housing through funding from the Canada Mortgage and Housing Corporation.

Green Party
The Greens have proposed legislating housing as a fundamental human right, and they seek to change CMHC’s mandate and have it focus on developing affordable non-market housing and co-ops.
The Green Party sees co-living as a cornerstone solution to Canada’s growing housing crisis. It will also create a Canada Co-Op Housing Strategy to encourage co-op living and eliminate grants for first-time purchasers. The Greens will fund non-profit housing organizations for seniors, low-income families and special-needs individuals. Restoring tax incentives for rental housing construction and conceiving of a new tax credit for gifted lands, the Green Party believes, will spur plentiful affordable housing.

They also proposed building 25,000 new housing units and renovating 15,000 more every year for a decade. Housing co-investment will see an increase of $750m for new builds, and the same amount of money will be added into the Canada Housing Benefit to help 125,000 households with rent.

People’s Party of Canada
Maxime Bernier’s supports the notion that lowering immigration means there will be less demand for housing, which would theoretically close the chasm between supply and demand.

Bernier intends to address housing indirectly: a 15% income tax for Canadians earning between $15,001 and $100,000, and 25% on anything larger, will free monies that could go towards housing. The PPC has also proposed abolishing the capital gains tax.

Foreign-Buyers Tax Now Mainstream in Canada

When Canadians last went to the polls in 2015 you would have had to scour the country to find someone willing to talk about a surtax on foreign nationals buying real estate.

Now, such taxes are just considered the right thing to do. And B.C. has shown the way.
Ignited by the public’s anger over the housing affordability crisis, the B.C. Liberals surprised everyone in 2016 by going against their own free-market ideology by quickly imposing a 15-per-cent tax on foreign purchasers of housing in Metro Vancouver.

Reactions were immediate. Property developers and their lobbyists, plus some activists and a handful of academics, claimed a foreign-buyers tax was xenophobic and even racist.

However, the foreign-buyers tax took some fuel out of Vancouver’s stratospheric housing prices and had some impact on housing prices in Victoria. And after the B.C. NDP narrowly won office in 2017, it hiked the surtax to 20 per cent and expanded it to Victoria and other cities.

Now there is talk of imposing taxes or even outright bans on a Federal level. What will happen next?