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.

481 Nelson St V9A 6P3

Lovely little character home in Saxe Point with water views on a quiet dead-end street. This 2 bedroom/1 bath is a fabulous alternative to condo living or start fresh & build your dream home! You'll enjoy views of the water from your front yard patio & water access at the end of the street!! This property provides a rare opportunity to own in popular Saxe Point in Esquimalt. Minutes away from the water & parks, walking distance to shopping, recreation, CFB Esquimalt & Graving docks. Enjoy the character pieces of this cozy 1915 home, including original hardwood floors, feature fireplace & beautiful original wood trim/molding around the windows & ceiling. The comfortable kitchen includes an eating area & access to the backyard & storage shed. Bonus, 2 more sheds provides plenty of storage! The sizeable lot with established trees provides lots of privacy & is completely fenced. 2nd bedroom doesn't have a closet & is access to bath. Move in & enjoy, rent & hold or build new.

For more details on this listing please contact us.

Royal LePage Coast Capital - Oak Bay

Listed by Royal LePage Coast Capital - Chatterton

6341 Old East Rd V8Y 1R7

Set on a majestic 97 acres overlooking the Martindale Valley in Central Saanich, British Columbia, this exceptional piece of property is being offered for sale for the first time since the original farm moved to this location in 1956. This is truly a one-of-a kind piece of property as it is one of the largest freehold properties on the Saanich Peninsula. From the moment you drive onto the property, you will realize how special this farm is and how many different farming opportunities exist. The annual gross REVENUE is approximately Seven figures. The business and equipment are include in the purchase price. There are 4 separate homes located across the top portion of the property to take advantage of the wonderful views of Martindale Valley.

SOLD ON: 2017/11/22

PRICE: $12,000,000

For more details on this sold listings please contact us.

As of tomorrow - February 21, a 20% Foreign Buyer Tax will be levied on purchases in the Capital Region - according to the BCREA this tax will have an immediate impact on transactions underway, but there are some transitional rules, outlined below. 

Also live tomorrow is an increased Property Transfer Tax for properties over $3 million. The Property Transfer Tax will increase to 5 per cent for properties over $3 million.

You will love our NEW Real Estate APP used by many to find their dream home/ideal investment property. This app will allow you to find the perfect property as soon as it hits the Victoria Real Estate Market. This app can be downloaded at www.mlsapp.ca , please make sure to hit the box that says "INSTALL MY APP".  The best part of this app is it is FREE. If you need help downloading the app , please do not hesitate to contact us and we will help you out 1-778-401-9545.

What are some of our client's favourite features?

• You can save the different types of searches. No need to retype them in everyday, just hit a button and BAM, a list of everything you are looking for
• You can immediately request documents and a showing of the property, no need to wait and find out days after it has already sold
• Save all your favourite properties to a your folder and watch what happens

Stay ahead of most buyers and get this app. Talk soon! BC HOME GROUP :-)

P.S. Please follow us on social media, to see our latest tips for home buyers and investors. Links are HERE . THANK YOU!

Easter Events in Victoria this Month

 If you would like to know more about the BC Home Group's Easter Chocolate give-away gift contact us for some free chocolate ! Contact us 

Also stay tuned for more information on all the Easter Events happening around Victoria in all the different communities.

Looking for really delicious Pizza in Victoria, British Columbia ?

Romeo's Pizza is known to be most of Victoria's Favourite Pizza shop. 

Here is a link to their website

Buying a Condo on Manchester Rd 

Outstanding value in this location. There is a secure underground parking stall along with storage for most condo units on this street. Great location, just minutes from all amenities, bus routes, Downtown Victoria, parks, Selkirk Waterfront and Uptown. It is a must see.

To see what is currently for Sale on this Street please click on the following LINK.

Check out Popular Condo Buildings in Victoria BC.

Q – Our office practice has always been that if there is a tenant in place and vacant possession of a property is intended, we have a buyers' notice filled out to give to the sellers, who then serve official notice to the tenants to end tenancy. 

The seller’s agent seems to be saying that vacant possession is implied, and that we do not need the form. In this case, there was no language in the contract saying that the seller had to give notice and the possession part was left blank with no reference to the tenant in place.

Can you please clarify? We have always gotten the VREB form signed by both parties in such a situation.

A -     If the seller signs the offer with: 

A)   no language in the contract requiring the seller give notice to the tenant; or

B)   the possession clause is blank when it comes to existing tenancies,

Then the seller has contractually agreed to provide vacant possession without further notice or action by the buyer.

Thus it is for the benefit of both parties, that the standard clause with respect to tenancy, stating that the buyer will provide a letter and the seller notice to the tenant after conditions are removed, pursuant to section 49, is in a contract where the property is tenanted and the tenant has not already agreed to move out. 

So if this clause is not in the contract, the seller may have a legal issue as they have legally agreed to provide possession, but the buyer is not required to provide a letter. 

However, it is still in everyone's best interests that the buyer provide that letter, if in fact the buyer is intending to occupy the unit, as otherwise it is not possible to provide legal notice to the tenant. The buyer may want assurances that the seller assumes all responsibility, for any costs arising from providing notice to the tenant.

The Aria is a popular condo building downtown Victoria BC. It has the best location and has the nicest views in Victoria. 

ARIA, located on the fringes of downtown and Victoria's inner harbour, is home to twin twelve story towers, Bravo & Encore. In total there are 174 masterfully designed suites. No other residence willl be as convenient to the pulse of the city center, situated mere steps away from museums, shopping, fine dining, parks & the sea wall. Special attention has been paid to every detail.

To see what is currently listed in the Aria, please click on the following LINK.

The building is located at 737 Humboldt St V8W 4A4.

Q - There seems to be some confusion about how GST applies to residential properties that are bought and resold (flipped).  I believe GST does not apply to used residential property unless it is renovated substantially (90 %+). 

I am not clear if it applies to properties that are purchased, not lived in, undergo superficial renovation (such as kitchen and bathroom make-overs), and then sold for a profit.

Does it make a difference if this is done as a one time venture or done multiple times as a business?

A - As always, one starts with the premise of the legislation.  Namely GST is applicable to all sales of real estate unless exempt.  The principal exemption is personal use property.  This means in general real estate used for residential purposes only and not business purposes.  Flipping property on a regular basis could well be construed by CRA as a "business use" and therefore subject to GST.  Flipping a house once would probably not though if the seller specifically set out with a business plan with that in mind it could. 

To avoid difficult situations we recommend buyers put in a clause stating:

“GST is not applicable and if later deemed to be applicable will be deemed included.”

If this is not done and the seller determines GST to be applicable they can charge the buyer GST on the completion date.

If you have any questions please feel free to contact us directly.

DEVELOPMENT PERMIT IN PLACE – project is ready to build! Attention developers and investors: This 5500 sq.ft. lot is zoned R1.3 (Single Family High Density Residential) and has an approved development permit in place. Permit allows for TWO SINGLE FAMILY DETACHED HOMES each featuring 1577 sq. ft. of living space, 3 beds/3 baths with master on main, private west-facing courtyard, and detached garage with access via laneway. Project is situated in the charming Orchard area of Sidney and just steps from Iroquois Park, Beacon Ave (the heart of Sidney), and the waterfront walkway. This is fantastic location with outstanding walkability. Hazardous materials analysis and survey have been completed. House and landscape plans ready to go. Property would also make an excellent long-term holding, or build to live in one home and sell the other. Lots of possibilities! ** House is currently tenanted – please do not walk the property **

For other development opportunities click HERE.

To view other properties listed in Sidney click HERE.

Contact us to see if this property is still available info@bchomegroup.ca

Q - When the Contract states what items are included in the sale, such as fridge, washer and dryer, can it be assumed these are in at least working order?

My buyers moved into their new home and found that the washer did not work at all. Do they have any grounds or way of compensation?

A - Although the contract of purchase and sale explicitly states that there is no warranty on appliances, there is also a paragraph that states the property must be in substantially the same position as when viewed.   If you can demonstrate that the washing machine was working at time of viewing (an inspector would likely have noted this) then the buyer may have a claim under the contract.  They would ultimately have to pursue that in small claims court if the seller was not willing to co-operate. 

To assist in this type of not-uncommon situation I do recommend that buyer's agents add a term that says:

“Notwithstanding any other terms of this contract of purchase and sale the seller warrants that all appliances and mechanical, heating and electrical fixtures and included chattels will be in good working order on the completion date.” 

As you know, the Real Estate Council of British Columbia is preparing to implement the rule changes to eliminate limited dual agency and require additional disclosures. Those changes take effect on March 15, 2018, and the decision to change the rules came from the Office of the Superintendent of Real Estate, which has oversight over the Council.

Dine Around
January 19 - February 4, 2018

Tourism Victoria and the BC Restaurant & Foodservices Association (BCRFA), Victoria Branch, are once again teaming up for the popular Dine Around & Stay in Town.

The Westin Bear Mountain’s culinary team has put together an amazing $40 three-course dinner that highlights local produce and west coast inspiration.

After dinner, stay the night to get the most out of your Bear Mountain experience. Click here for your $129 room rate!

Click here for the menu

Wine Pairing $25

Hi everyone, as you can see from the graph, the price of homes always drops towards December, call me if you like additional data for your home market analysis. Talk soon!!

As a person, who likes to follow the statistics, and review them as part of my decision making process, I find this graph extremely helpful!!

Check out New vs Sold Listings in Victoria British Columbia. Details for this graph are taken from MLS. We bring you the latest statistics so you can follow the market. Contact the BC HOME GROUP for any questions, we will always help!