City of Victoria Policy

The City of Victoria proposed a policy that would require all new condo projects to include 10 to 15 per cent affordable rental units, and there has been a good deal of push back on the idea, especially from the Urban Development Institute which suggests an “inclusionary housing” policy could actually drive prices up. 

Find out more about the proposed policy and the opinions of various stakeholders in the Times Colonist article. 

Have You Received Your Letter?

The Speculation and Vacancy Tax is a new annual tax requiring all property owners in the taxable regions to complete a declaration. 

Make sure you complete your declaration by March 31^st or you will receive a tax notice from the BC government and may be taxed at 0.5 per cent of your property’s assessed value.

Are Vancouverites looking to exit the market?

New listings for Greater Vancouver real estate made a sudden surge last month. According to the Real Estate Board of Greater Vancouver (REBGV) 4,848 new listings hit the market in January 2019, which is a 244.6% from December 2018.

Monthly increases in January are expected, but the numbers also show the number of new listings in January 2019 are up 27.7% from January 2018. People who wish to leave Vancouver and move to Victoria will find the continued difference in market prices very much in their favour.

References: Better Dwelling, REBGV

Canadian Consumer Debt

Canadian consumer debt is at an all-time high, but Canadians appear to be slowing down acquiring more, due in part to tighter mortgage lending rules.

Most of the debt was on mortgages, which printed a new record with outstanding mortgage debt reaching $1.546 trillion and consumer debt at $620 billion for a total of 2.16 trillion in December 2018 according to the Bank of Canada.

Speculation and Vacancy Tax Declarations: Mullin Demeo Wirk

Here is some information on the Speculation and Vacancy Tax from Mullin Demeo Wirk that I've reposted here with their permission. I trust you will find it useful.

MULLIN DEMEO WIRK ELECTRONIC LEGAL UPDATE

January 29, 2019 Speculation and Vacancy Tax Declarations:

Speculation and Vacancy Tax declaration letters are now being mailed out to owners of residential property in the taxable regions of British Columbia. And for this reason, it is very important that clients have previously made sure that the B.C. Assessment Authority has their correct names and addresses on record. Once your clients receive their letter, they can declare online or over the telephone and must complete the declaration to claim any relevant tax exemptions.

If your clients do not declare relevant and applicable exemptions by March 31, 2019, or fail to make a declaration at all by that time, then recent B.C. Government Bulletins indicate that non-declarants will be taxed at the highest maximum tax rate pursuant to the legislation.

The Speculation and Vacancy Tax website has recently been updated and includes some further information on the Tenancy Exemptions and Satellite Families.

Tenancy Exemptions:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals/tenancy-requirements

Satellite Families:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals/international-income

We note that there is a disclaimer that where information on the website and the legislation conflict, the legislation prevails, and your clients should be directed to their accountant or lawyer for appropriate advice.

If you have any questions on the above or other real estate related matters, please do not hesitate to contact our office at any time.

Yours truly, Mullin DeMeo Wirk

The content of this email is for information purposes only. It is not, and should not, be taken as legal advice. Never disregard professional legal advice, or delay in seeking it, because of something you have read in an email. We would be happy to discuss with you any specific legal concerns you have, and encourage you to contact our office. The content of this email is protected by copyright law, and, unless otherwise attributed, is owned by Mullin DeMeo Wirk. The content may be used for personal, non-commercial purposes, including the downloading and storage of information and making single copies, provided that all copyright notices are maintained. Any modification, transmission presentation, distribution, republication, or other exploitation of this content, in whole or in part, is prohibited without the express prior written consent of Mullin DeMeo Wirk.

Property Assessment Appeal Process by Mullin Demeo Wirk

I receive good information from Mullin Demeo Wirk, and the information below is about the Property Assessment Appeal reprinted with their permission.

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Hello and welcome to Mullin DeMeo Wirk’s Electronic Legal Update. We hope you will find this information interesting and helpful.

MULLIN DEMEO WIRK ELECTRONIC LEGAL UPDATE

January 22, 2019 Property Assessment Appeal Process:

If your client has received a property assessment that they would like to challenge, they should first contact their local BC Assessment office and discuss their concerns or questions with an appraiser.

If your client’s concerns are not satisfied, they may file a Notice of Complaint for a formal hearing with an independent Property Assessment Review Panel. The deadline for filing a Notice of Complaint is January 31, 2019.

If your client contests the Panel’s decision, they can file an appeal with the Property Assessment Appeal Board by April 30, 2019.

Following are links for useful information that your clients may need to challenge their property assessment:

Filing a Complaint with BC Assessment Online:

https://eforms.bcassessment.ca/online_appeal_form_PARP_2019.asp

Frequently Asked Questions:

https://www2.gov.bc.ca/gov/content/housing-tenancy/owning-a-home/property-assessment-review-panels2/property-assessment/frequently-asked-questions

Single Family Residential Guide:

http://www.assessmentappeal.bc.ca/other-guides-resources/help-your-with-appeal/single-family-residential-guide

If you have any questions on the above or other real estate related matters, please do not hesitate to contact our office at any time.

Yours truly, Mullin DeMeo Wirk

The content of this email is for information purposes only. It is not, and should not, be taken as legal advice. Never disregard professional legal advice, or delay in seeking it, because of something you have read in an email. We would be happy to discuss with you any specific legal concerns you have, and encourage you to contact our office. The content of this email is protected by copyright law, and, unless otherwise attributed, is owned by Mullin DeMeo Wirk. The content may be used for personal, non-commercial purposes, including the downloading and storage of information and making single copies, provided that all copyright notices are maintained. Any modification, transmission presentation, distribution, republication, or other exploitation of this content, in whole or in part, is prohibited without the express prior written consent of Mullin DeMeo Wirk.

Victoria Market

As expected, the number of properties sold has decreased, both due to the season and because sales in the market has been cooling. December 2017 saw 462 properties sold as compared to December 2018 with 375 sold. The December tally brought the total number of properties sold in Greater Victoria to 7,150 in 2018.

"All levels of government turned their focus to try to make housing more affordable and attainable across the property spectrum,” said the Victoria Real Estate Board President Kyle Kerr. Indeed, consumers lost 20 per cent of their purchasing power due to the federal government's change to mortgage lending qualification rules.

Meanwhile, municipal government has been leveraging and acquiring new land and creating partnerships with private and non-profit organizations to bring new affordable units to market. And the provincial government has committed to substantial investments into affordable housing.

The Multiple Listing Service® Home Price Index benchmark value for a single-family home in the Victoria Core in December 2018 was $858,600 - a 3.2 per cent increase over December 2017, but lower than November's value of $865,200.

Interestingly, the MLS® HPI benchmark value for a condominium in the Victoria Core area, now at $502,400, is an increase of 8.2 per cent over December 2017, and a slight increase from November’s value of $500,00.

Last year, the hot real estate market and a shortage of supply drove up typical values by 15 to 35 per cent for condominiums and townhouses. This year, supply is less of a problem as more condominiums come on stream throughout the capital region amid a construction boom. Offsetting that, and perhaps pushing values upward, are the families and first-time home buyers who are now looking to condos and townhouses as a more affordable alternative to single-detached dwellings.

Whether you’re looking for a condo, townhouse or single-detached dwelling to call your own, I would enjoy working with you to help you find the best value for your budget.

Jane Logan