Archive for January, 2008
Tax Burden High for Homebuyers
January 31st, 2008 Categories: Vancouver Real Estate
by Cameron Muir, BCREA Chief Economist
How would you like to pay your provincial income tax three times this year, just so you can buy a home? Unless you’re a first time buyer, that’s exactly what’s in store for you. BC’s property Transfer Tax (PIT) is payable on the purchase price of all real estate transactions in the province. The tax rate is l% to $200K and 2% on remainder
Government revenues from the PIT will approach $1 billion this fiscal year. In the last 5 years, PIT revenues have doubled. High unit sales and rapidly rising prices have been a financial boon for the government. While overall gov’t tax revenues increased at an annual compound rate of 4.2% since the 1999/2000 fiscal year, PIT revenues ballooned at a rate of 21%. during the same period, the contribution of the PIT to total tax revenue has increased from l.8% to 5.2%, making homebuyers an increasingly important - if not critical - source of revenue.
Much ballyhoo has been exerted promoting BC as having one of the most competitive personal tax regimes in the country. Indeed, the province has the lowest tax rate in Canada for a working couple earning $40,000 a piece. The merits of higher or lower taxes will forever be a topic of public debate but, supposing lower taxes are better, BC is certainly on top of its game or is it?
So it shouldn’t be a surprise that potential British Columbians assess both the advantages and the pitfalls of “the best place on earth”. Alberta seems to have no trouble attracting eight times as many inter-provincial migrants as BC’s water, trees and mountains do. In fact, real estate sticker shock is commonplace for migrants arriving in BC’s large cities. BC’s nation-leading home prices certainly have the potential to sour the cream that is low personal tax rates.
And then there’s the PIT. BC may have the most competitive personal tax regime in the country, but it also has the dubious distinction of the least competitive real estate transfer tax. In fact, if that couple earning $40,000 apiece bought a home priced at the provincial average, their combined income tax and PIT would equal three income tax returns instead of one. Now, suppose they moved every 5 years, as many households do: their total combined tax burden would average 40% higher each year than their personal income taxes alone. This scenario would make BC far less attractive from a tax perspective than either Alberta or Ontario.
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The Yale and Cecil Hotels
January 28th, 2008 Categories: Downtown, Vancouver Real Estate
Drove by the Yale Hotel yesterday and saw a Rezoning Developement Permit, so did some research and here’s the scoop. (if you live downtown you will know they are located at the north end of the Granville Street bridge).
Bought for about $10 million in 2006, the Yale will be deemed heritage by City Hall, whereby it will be upgraded and retained, including the Yale Pub. Rize Alliance Properties will retain and upgrade 44 subsidized housing rooms at the Yale and have single room occupancy (SRO) zoning. The rooms will then be given to the City. In return, it is expected that the City will allow 165,000 sq.ft. tower, instead of 100,000 and ask for 255 to 260 ft tall tower instead of the origianal proposed 225 ft. The City will have to approve the zoning from DD to CD and it is possible the project will be at risk due to the backlog in rezoning.
What do you think of this idea? Happy to see the Yale survive?
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Today’s Stats
January 25th, 2008 Categories: Kitsilano
In my market area there were 36 new listings, 20 sales (1 sold at list and 3 over list) and 11 price reductions.
Currently there are 1111 condos listed on MLS in vancouver west and 146 sales for the month, of which 8 are over 1 million. Average days on the market (DOM) 45.
Compared solds for same period in December and found 200 sales, of which 13 were over $1M. Average DOM 40. December had more sales and they sold faster.
Checked Vancouver West Townhomes and found 15 sales in January to date with DOM at 30. For the same period in December there were 29 sales and DOM 41. Fewer sales so far in January but they sold faster.
Have a question about the market or stats?
Took the above pictures at Kits Beach…beautiful or what?
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Just Listed!
January 24th, 2008 Categories: Downtown, Vancouver Real Estate
2803-1189 Howe, Downtown Vancouver
Updated subpenthouse at The Genesis. Features hardwood floors, new stainless steel appliances, blinds Rare 3 bedroom, SE corner with great city views plus English Bay to the west. Large Dining Room & insuite storage, 2 parking. Pets and rentals ok. 24 hr security concierge, indoor pool, guest suite, gym, steam and sauna, bike room. This is a 10! Definitely priced to sell! Hurry! $699,000
Open House: Jan 25th 10-12. Jan 26th and 27th 2.30-4.30
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Property Transfer Tax (PTT) and First Time Homebuyers Program
January 24th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
If you are a first time buyer , you may exempt from the PTT.
The Provincial Government released this information in November 2007
http://www.sbr.gov.bc.ca/documents_library/brochures/FirstTimeHomeBuyer.pdf
or call 250-387-0604
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How Does Your Neighbourhood Compare?
January 23rd, 2008 Categories: Vancouver Real Estate
Perhaps you live in a specific n’hood and wish to move up to a larger property but find it expensive, so you are wondering how other neighbourhoods compare in price? Or maybe you’re a first time buyer and renting, love your hood but cant afford to buy a property in it.
REBGV puts out these stats on vancouver west n’hoods (benchmark prices) as at December 2007. In brackets is the price change for the past year.
Cambie $412,000(16.7%)/Coal Harbour $613,000(2.8%)/Downtown $427,000(14.8%)/Fairview $459,000(18.7%)/False Creek North $811,000(12.7)/Kerrisdale $536,000(15.4%)/Kitsilano $423,000(9.1%)/West End $443,000(9.9%)
Appreciation over the last 5 years: Cambie 98.2%./Coal Harbour 111.7%/Downtown 110%/Fairview 98%/False Crrek North 137%/Kerrisdale 84%/Kits 98%/West End 96%
Appreciation over the last year for West Side house 27%(best apprciation in the Lower Mainland), townhomes 13% and condos13.7%.
Vancouver East houses appreciated 14.3%, townhomes 11.7% (Richmond was the highest at 14.7%)and condos a whopping 18.8% (best condo apprciation in the Lower Mainland)
What municpality and what neighbourhood do you think has the best upside?
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Canada & U.S. Central Banks Cut Policy Rates
January 22nd, 2008 Categories: Vancouver Real Estate
Are you real estate buyer in Vancouver? Then you’ll be happy about rates going down.
Bank of
The Bank of Canada cut the overnight rate by 25 basis points to 4% saying that “further stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and return inflation to the target over the medium term.”
Variable 5.25%, 6 month convertible at 6.04%, 5 years 6.09% 30day close special.
Contact Mortgage Broker Tony Rossander 604-612-6252
The expectation is for rates to go lower still, so a short term mortgage right now makes good sense.
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Kitsilano Point New Listing
January 22nd, 2008 Categories: Kitsilano, Vancouver Real Estate
The ink hasn’t dried on this one yet!
Come home to 1450 Laburnum on Kits Point.
Steps to Vancouver’s most popular beach. this spacious studio has been completely renovated, the great taste, including new windows and sound proofing exterior wall. New tile floors, new kitchen with stainless fridge and cooktop. All new bathroom with large shower and seemless door, new Murphy Bed. New ceiling and new wiring, lots of pot lights. Super large west facing patio, treed, fenced and private. Maintenance fee includes hot water heat. One secured parking and storage locker. Pets and rentals welcome. Furnishings negotiable.
Easy to show, move in today! $319,000. Call Maggie to view 604-328-0077
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Mortgage Rates Drop Again
January 22nd, 2008 Categories: Real Estate News, Vancouver Real Estate
Are you real estate buyer in Vancouver? Then you’ll be happy about rates going down.
Bank of
The Bank of Canada cut the overnight rate by 25 basis points to 4% saying that “further stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and return inflation to the target over the medium term.”
Contact Mortgage Broker Tony Rossander 604-612-6252
The expectation is for rates to go lower still, so a short term mortgage right now makes good sense.
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Calculate Your Mortgage Payments
January 21st, 2008 Categories: Vancouver Real Estate
Mortgage Amount: 100000
Rate Smart Monthly Payment
Variable 5 Year 5.40 $604.58
5 Year Fixed 5.99 $639.21
10 Year Fixed 6.30 $657.75
* O.A.C. Some restrictions may apply. Rates are subject to change without notice
Independant Advice
Here’s what you can expect from Verico Wealth Wizard Financial Team:
We provide rate holds for 120 days, not all banks do. We request full documentation and perform a credit
check on every client.
We provide closing cost disclosures to all our clients. Now specializing in self employed, off shore and
equity financing.
We can help your SELLERS with their port, increase
and blend mortgages.
Providing bridge financing for your SELLERS too!
Call: Alma Pasic 604-729-4611 preferred@telus (mortgage broker)
www.verico.ca
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