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Early this week the province announced their Short-Term Rental Accommodations Act.

LINK TO DOCUMENT

GOOD LINK FOR DETAILS 

From the Ministry of Housing:

The legislation focuses on three key areas:

  • increasing fines and strengthening tools for local governments;
  • returning more short-term rentals to long-term homes; and
  • establishing provincial rules and enforcement.


Changes to how short-term rentals operate will come into effect through a phased-in approach and will include:

Increasing fines and better tools for local governments:

  • increasing fines for operators breaking local rules to support local municipal bylaws, and requiring short-term rental platforms to share data to strengthen local enforcement;
  • requiring online short-term rental platforms to share their data with the Province, so the Province can provide that information to local governments for enforcement and support of provincial and federal tax auditing;
  • requiring short-term rental platforms to include businesses licence numbers on listings where they are used by a local government, and to remove listings without them quickly to ensure local rules are being followed; and
  • giving regional districts the ability to issue business licences so they can more effectively regulate short-term rentals in rural areas.


READ THE NEWS RELEASE HERE


REVIEW THE BRIEFING PRESENTATION HERE

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Buying a house can be an exciting, yet daunting experience. One of the most crucial steps in the home buying process is making an offer on a house. If you're a prospective homebuyer in Victoria, BC, you may be wondering how to make an offer on a house. In this blog, we'll take you through the process step-by-step so that you can confidently make an offer on your dream home.

  1. Determine your budget

Before you begin the process of making an offer on a house, it's important to determine your budget. Consider factors such as your income, expenses, and the amount of money you're able to put towards a down payment. It's important to be realistic about what you can afford and what you're comfortable spending.

  1. Get pre-approved for a mortgage

Getting pre-approved for a mortgage can give you a better idea of what you can afford and can also make your offer more attractive to sellers. This process involves providing your lender with information about your income, assets, and credit history. Once you're pre-approved, you'll receive a letter that you can use to show sellers that you're a serious buyer.

  1. Find the right house

Once you've determined your budget and gotten pre-approved for a mortgage, it's time to start looking for houses. Work with a real estate agent to find homes in Victoria, BC that meet your needs and budget. Once you find the right house, it's time to make an offer.

  1. Make an offer

Making an offer involves submitting a written offer to the seller that includes the price you're willing to pay, any contingencies (such as financing or inspection), and the closing date. Work with your real estate agent to determine a fair price to offer based on the current market conditions and the condition of the house.

  1. Negotiate

After you've submitted your offer, the seller may respond with a counteroffer. This is an opportunity for you to negotiate and potentially come to an agreement that works for both parties. Work with your real estate agent to navigate the negotiation process and come to a final agreement.

  1. Complete the sale

Once you've agreed on a price and all contingencies have been satisfied, it's time to complete the sale. This involves signing a purchase agreement, making a deposit, and preparing for closing. Work with your real estate agent to ensure that all necessary paperwork is completed and that the closing goes smoothly.

Making an offer on a house can be a complex process, but with the right guidance and preparation, you can confidently navigate the process and find your dream home in Victoria, BC.

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The following tenancy laws have resumed:
 
  • A landlord can now issue a Notice to End Tenancy for any reason (other than unpaid or late payment rent).
  • Landlords with existing orders for eviction can take them to the courts beginning July 2, 2020, for enforcement and can enforce a writ order effective immediately.
  • Landlords can enter a rental suite with 24-hour notice and do not need the tenant’s consent. They are expected to follow health guidelines like physical distancing, cleaning and wearing masks when appropriate.
  • The change also allows for personal service of documents to resume.
 
Landlords’ ability to restrict access to common spaces for COVID-19 related health reasons remains.
 
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Elevate At Bear Mountain – Prices, Availability, Plans

Elevate at Bear Mountain – Prices, Availability, Plans

At a Glance

  • located at Bear Mountain
  • 13-storey concrete residential building
  • 209 condominiums
  • spectacular views
  • steps from hiking & mountain bike trails
  • 3-minute drive to Bear Mountain Resort
  • 10 minutes to Goldstream Park
  • 10-minute drive to shopping at Millstream Village
  • 30 minutes to Downtown Victoria
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Floor Plans for Elevate

Proposed units range from affordable 300-sq-ft studios to 1,200-sq-ft 3-bedroom condos. The larger homes will be flexibly designed so that a second bedroom or den can be used as a media room, or as part of a larger space with a movable partition and Murphy bed that can be transformed into a guest room.

As project details can change during the pre-construction phase, you are advised to sign up to our VIP list above for priority updates on Elevate at Bear Mountain. Feel free to contact me today to discuss your particular interest in this opportunity.

Amenities at Elevate
Elevate owners will benefit from the excellent facilities in their building. Atop of the podium, a community hub will feature ponds with walkways, a view terrace with barbeque area, and a clubhouse with large infinity pool, patios, cabañas, various gyms and an indoor-outdoor kitchen. There will also be a concierge service and a dog-washing station.

All Bear Mountain home owners can apply for the Homeowner Card, which offers holders discounts on the hotel facilities, including the pool, restaurant, and Sante Spa. In addition, a wide range of activities are available nearby, including an intense workout at the North Langford Recreation Centre, and hiking and mountain biking on dedicated trails. If boating is more your fancy, nearby Goldstream Boathouse is your launching point for enjoying Saanich Inlet.

Parking and Storage
An underground parkade will provide parking stalls for 287 resident and 4 visitor vehicles, as well as an electric vehichle charging station.

Developer Team for Elevate
Ecoasis provides the expertise, infrastructure, and investment capital to drive the development of sustainable and innovative communities. With a current geographical focus on Hawaii, Whistler, and Victoria, Ecoasis specializes in land acquisition and development of residential and resort real estate — signature properties that are enhanced for the benefit not just of stakeholders but the surrounding communities, as well. By partnering with the most experienced consultants, architects, engineering firms, and construction companies, Ecoasis creates products of high quality and lasting value.

Are you interested in learning more about other homes in Victoria, Saanich, or Langford?


Check out Langford Tower, Belmont Residences, and these great South Island Presales!


CONTAC US for more information and check out our condos for sale in Bear Mountain !


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We are pleased to announce the release of two brand new homes at Thetis Glen.

Both of these homes include quality details such as quartz kitchen counters, 9’ ceilings, Rinnai direct vent gas heat, a cozy gas fireplace, and gas on-demand hot water. 

Thetis Glen homes are selling quickly so if you see something that you like, don't delay!
Lot 10 - 2351 Lund Road

This spacious 3-bedroom home offers large rooms, an island kitchen with eating bar that invites friends to hang around, and a great room with plenty of windows, merging seamlessly with your private patio out back. 

The ground level with its large family room, bathroom, and two bedrooms is ideal for family or guests. 

 
Backs onto forested land
3 bedrooms, 3 bathrooms, family room
Main level up with island kitchen and direct patio access
Master ensuite with heated floor & double sinks

Gas fireplace, on-demand hot water, gas heat
Ready for occupancy by August 23, 2019

$674,900 + GST
Lot 11 - 2353 Lund Road

One of our largest, this attractive four-bedroom home has plenty of room for the entire family! 

Backing onto forest, the upper level offers a large island kitchen with quartz counters along with two bedrooms, including a master with ensuite. Step right outside from this level into your elevated backyard and enjoy nature! Downstairs, we know that you will love the third and fourth bedrooms along with an large recreation room.

 
Backs onto forested land
4 bedrooms, 3 bathrooms, family room
Open plan with island kitchen
Gas fireplace, on-demand hot water, gas heat
Ready for occupancy by August 23, 2019

$ 694,900 + GST
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Even though the House is in recess until the fall, your Board and other community stakeholders continue to work on the Speculation Tax situation - and encouraging our local representatives to "Scrap It!".
 
Request:
Do you have first-hand information on a development being altered  / delayed or lost housing due to the Speculation Tax that you've not already sent us? Please connect, we are collecting stories to help the government understand the repercussions of this tax. Thank you. 
 
Update on ongoing activities:
Your President, Kyle Kerr, President Elect Cheryl Woolley and EO Dave Corey are preparing to meet with Housing Minister Selina Robinson this week. Their discussion will focus on increasing housing supply in the Victoria area.  

 
Please continue to share the Scrap the Speculation Tax website - the site makes it easy to write to your local representatives to encourage them to consider the broader economic impacts of the Spec Tax. More than 20,000 letters to government have been facilitated by the website.  
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You asked... and at Polo Village they have listened. 

During their first four weeks on the market, they have learned that people love the fully detached suites that their Craftsman Coach series of homes offer, but at the same time most people asked them to find a way to offer similar utility & value at a lower price.  

Today, they are announcing price reductions of $150,000 on two of our Craftsman Coach series of homes with suites!  They have redesigned the fixtures & finishings to bring the price down, while still offering a top quality home, in an unbeatable location, with a fantastic detached suite.
Lot 13 - was $999,900 - Now Only $849,900
Lot 14 - was $999,900 - Now Only $849,900
 
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515 Chatham St Victoria BC - Le Fevre & Company

Chapter One – 515 Chatham offers Studio and 1 Bedroom condominiums in the heart of Victoria's historic Old Town district featuring courtyards and architecture with unique urban character.


515 Chatham

Ironworks will consist of five architecturally unique buildings on two blocks of Victoria's historic Old Town district.

The start of this iconic new development begins with our cornerstone building, Chapter One – 515 Chatham.

Developed by Le Fevre & Company – built by Campbell Construction.


Chatham & Store Street – Old Town's North West District

The site of the Ironworks development has a rich history in Victoria's industrial age that includes the Albion Iron Works Company, which was located on the Chatham Street block between Government & Store Streets.

515 Chatham is designed with respect for the past and destined to become part of a whole new iconic streetscape for the modern era.


For floorplans and pricing details please contact us

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New Foreign Entity Tax 

On February 20, 2018, the province increased the Foreign Entity Tax payable by foreign entities and taxable trustees to 20% on transfers of residential properties registered on or after February 21, 2018, and expanded the areas to which the tax applies from the Regional District of Greater Vancouver to:

  • Capital Regional District (Victoria and Islands)
  • Fraser Valley Regional District
  • Regional District of Central Okanagan
  • Regional District of Nanaimo 

The additional property transfer tax doesn’t apply to properties located on Tsawwassen First Nation lands.

Transitional Rules 

If the property is located in the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District and the property transfer is registered on or after February 21, 2018, there are two instances where the additional property transfer tax does not have to be paid.

  1. The additional property tax does not have to be paid where the registration of the transfer occurs on or before May 18, 2018 and the property transfer is subject to a written agreement dated on or before February 20, 2018. (Note: If the written agreement is assigned to a foreign entity or taxable trustee on or after February 21, 2018, the additional property transfer tax must be paid.) 
  2. The additional property transfer tax does not have to be paid where the registration of the transfer occurs at any time, where the property transfer is:
  1. subject to a court order dated on or before February 20, 2018;
  2. subject to an Order Nisi of Foreclosure dated on or before February 20, 2018;
  3. subject to a separation agreement which was signed on or before February 20, 2018;
  4. from the personal representative of a deceased’s estate to the beneficiary and the death of the deceased occurred on or before February 20, 2018; or
  5. to a surviving joint tenant when the death of the deceased occurred on or before February 20, 2018

 

The additional tax is payable on the interest acquired by the foreign entity or taxable trustee, and applies only on the residential portion of a property: There are three types of properties where this may occur:

  1. Property classified as residential (Class I) by BC Assessment. You pay the additional tax based on the fair market value of the full property. 
  2. Property classified as farm land by BC Assessment that includes a residential improvement, such as a building used as a farmer’s home. You pay the additional tax on the value of the residential improvement plus 0.5 hectares of land (1.24 acres).
  3. Property classified as commercial by BC Assessment that includes a residential improvement (Class I), such as a condo in a building with commercial space. You pay the additional tax on the value of the residential improvement.

Residential Property 

As stated above, the Foreign Entity Tax will be triggered by the registration of a transfer of “residential property” to a foreign entity or taxable trustee.

Residential property includes:

    • any lands or improvements that are classified as “Class 1 property” by the BC Assessment Authority
    • not only single-family residences but also multi-family residences, apartments and condominiums
    • undeveloped lands that are classified as Class 1 property by BC Assessment. Nursing homes, cooperative developments, farms and senior residences are also included in Class 1.

The Foreign Entity Tax is payable with respect to any registered transaction that attracts PTT, including the transfer of a fee simple interest in land or a registered lease with a term longer than 30 years.

Foreign Entity 

A “foreign entity” includes both a “foreign national” and a “foreign corporation”. A “foreign national” means a person who is neither a Canadian citizen nor a permanent resident at the time of registration, and includes a stateless person.

Foreign Corporation 

For purposes of determining which corporations are “foreign corporations”, the new rules adopt the “de facto” control test in section 256 of the Income Tax Act (Canada)(”ITA”).

De facto control occurs where a person or group of persons has a clear right and ability to affect the composition or decision of the board of directors of the company, or can directly influence the shareholders of a company that can elect the board of directors.

A foreign corporation includes a corporation that is not incorporated in Canada, a corporation that is incorporated in Canada (including BC) but is “controlled” in whole or in part by a foreign national or foreign corporation, unless the shares of the corporation are listed on a Canadian Stock Exchange, and a corporation which is controlled directly or indirectly by a foreign entity (Section 256 of the Income Tax Act).

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TD Bank is offering an aggressively discounted variable mortgage rate of 2.45%—which is 1.15% below its prime—but are there better deals out there?


The bigger question to ask is...should I go variable or fixed?

 

I personally go variable and the reason being :

 

- The penalties are lower in case you want to sell your property or flip it

- You have flexiblity and you can always fix your rate if you are worried of rates going up

- You get a better rate than the current 5 year fixed rate.

 

I personally have always done well in Victoria BC, using a variable mortgage product and recommend, only what I would for myself to my clients as well.

 

If you want peace of mind, however then go with the fixed rate all the way but first make sure you do need to sell your property during the term of your mortgage or you will pay big penalties to get out of your fixed mortgage.

 

Any questions feel free to contact us, we love to help. 

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BC Budget 2018

 

The British Columbia government made several announcements regarding housing as part of the NDP 2018 Budget. Among those announcements are the following:

 


Additional Property Transfer Tax (Foreign Buyer Tax):

  1. Increase of the Additional Property Transfer Tax on Foreign Entities from 15% to 20%.
  2. Expanded regions of the Province where the Additional Property Transfer will apply, to include the Capital Regional District, the Fraser Valley, the Central Okanagan and the Nanaimo Regional District.
    1.                                                     i.     Grandfathering provisions will exempt transactions from the Additional Property Transfer Tax in the above areas if registration occurs before or on May 18, 2018and the property transfer is subject to a written agreement dated on or before February 20, 2018 (a definition of written agreement has not been provided).
    2. Further information on the Additional Property Transfer Tax and other exemptions to the Additional Property Transfer Tax can be found in the following link: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax

 

Property Transfer Tax:

 

  1. The Property Transfer Tax has been increased for residential properties on the portion of the Fair Market Value of the property in excess of $3,000,000.
  2. The Property Transfer Tax rate now is:
    1.                                                     i.     1% on the first $200,000,
    2.                                                    ii.     2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
    3.                                                   iii.     3% on the portion of the fair market value greater than $2,000,000, and
    4.                                                  iv.     if the property is residential, 5% on the portion of the fair market value greater than $3,000,000.
    5. This is effective February 21, 2018 and there is no exemption for contracts of purchase and sale entered into prior to February 21, 2018 closing on or after February 21, 2018.
    6. Further information on the Property Transfer Tax can be found in the following link:https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand#FairMarket

 

Speculation Tax:

 

  1. Beginning fall 2018, the Province has announced that it will introduce a new speculation tax on residential property targeting foreign and domestic owners who own real estate in BC but do not pay taxes in BC. 
  2. While full details of this tax have not been released, the Province has announced:
    1.                                                     i.     The new tax will apply to the Metro Vancouver, Fraser Valley, Capital Regional District, Nanaimo Regional District and the municipalities of Kelowna and West Kelowna.
    2.                                                    ii.     Exemptions will be available for most principal residences, qualifying long term rental properties and special cases.
    3.                                                   iii.     The tax rate will be 0.5% of the taxable assessed value of the property for 2018 and 2% for 2019.
    4. Further information on this proposed speculation tax can be found on page 10 in the following link: http://bcbudget.gov.bc.ca/2018/homesbc/2018_Homes_For_BC.pdf.

 General Anti-Avoidance Rules

 

  1. The Property Transfer Tax Act is subject to general anti-avoidance rules and applicable penalties.
    1.                                                  i.     Professional advisors (including Realtors) advising someone to avoid, evade or attempt to avoid or evade tax liability under the Property Transfer Tax Act may result in significant penalties including double the tax, tax plus interest, a fine of $200,000 for corporations or $100,000 for individuals and/or up to two years in prison.
    2. Further information on this can be found in the following link: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/file

 

This is only a brief discussion of some aspects of certain announcements related to housing in the 2018 Budget. The following is a link to further information on the NDP housing announcements: http://bcbudget.gov.bc.ca/2018/homesbc/2018_Homes_For_BC.pdf. If you have any questions on the above or any other real estate related matter, please do not hesitate to contact our office at any time.

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