Posted on
April 15, 2024
by
Marie Taverna
The five per cent Goods and Services Tax (GST) applies to the purchase price of new residential homes in BC, including:
- a newly built home;
- a substantially renovated home;
- a presale condominium or townhome;
- an assignment of the contract for a new home;
- a new mobile or floating home; and
- vacant land.
If your client buys a new home, they'll pay the five per cent GST at completion, as per the contract of purchase and sale. The home can be fee simple or on leased land.
First Nations may charge their own GST. For example, the Tsawwassen First Nations levies a First Nations GST.
Property that has already been used for residential purposes is GST exempt. The GST should've been paid when the property was new.
Learn more
If your client buys a newly built residential property, the builder must collect and remit the GST on the sale. The buyer then applies for a GST rebate. The buyer should keep all paperwork that proves the GST has been paid in case there's a question later.
Your client may be eligible for a GST rebate under these circumstances:
- They buy, as their primary residence, a new home priced up to $450,000. The rebate is equal to 36 per cent of the five per cent GST paid on the first $350,000 of the price of a new home. The GST rebate is phased out for homes priced between $350,000 and $450,000. New homes priced at $450,000 and above receive no GST rebate.
- They buy a substantially renovated home in which all or, substantially all, of the existing building has been removed or replaced.
- They build or substantially renovate their own primary residence and the fair market value of the home (not what it cost to build) is no more than $450,000.
Learn more
If your client buys a home and tears it down or substantially renovates and rebuilds it, they must pay the GST because the home is considered to be a new home for GST purposes. The owner is considered a “builder” who has repurchased the new home at its fair-market value. The owner must self-assess the GST and remit it to the CRA when construction is completed. The owner may be eligible for a GST rebate.
Learn more
The five per cent GST is due when ownership and possession take place.
Under a presale agreement, the GST on the deposit amount isn’t payable when the deposit is made. Instead, the buyer pays the full amount of GST owing when the deal completes and they take ownership and possession.
However, under a presale agreement, if the buyer makes partial payments following the deposit, but before ownership and possession occur, the buyer must pay GST on each partial payment to the builder. When the deal completes and they take ownership and possession, the buyer pays the remaining amount of the GST.
GST is applicable on all assignment sales of new or substantially renovated homes. Previously, an assignor may not have paid the GST on the assignment amount if they intended to reside in the property as their principal residence. However, under new rules, the GST is now payable by the assignor on any assignment amount.
The assignor is required to pay GST on the assignment amount, commonly called the lift.
GST isn't payable by the assignor on the total purchase price as the developer received the GST on the original purchase price portion and will be required to remit that.
GST is also not payable on the return of the deposit amount as this amount isn't income.
Example
For an example, let’s look at a residential pre-sale with an original purchase price of $800,000 and an assignment purchase price of $900,000, between a developer (who's a GST registrant) and an assignor and buyer who aren't GST registrants.
The buyer/assignee would pay:
- Original purchase price: $800,000
- GST on purchase price: $40,000
- Assignment amount: $100,000
The assignor would receive:
- Assignment amount: $100,000
- Brokerage commission, as applicable
- GST on Assignment amount
- Income tax on assignment amount
The assignor, following receipt of the assignment amount (which will include both the GST and Income Tax portions payable), will need to engage an accounting firm to make this payment to Canada Revenue Agency (CRA) within 30 days of the completion date of the transaction.
Learn more
The five per cent GST is applied to the sale of vacant land if:
- the land is purchased from a developer;
- the land was used for business purposes at any time in the past, even if the land was purchased from an individual;
- the land was subdivided into more than two lots (three or more), even if the land was purchased from an individual; or the land is capital property used primarily in a business.
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There are three types of manufactured buildings:
- manufactured portable buildings – includes floating homes and commercial use buildings, for example, construction site office;
- manufactured mobile homes – a house trailer parked in one place, used as a permanent living accommodation; and
- manufactured modular homes – a prefabricated home that consists of multiple sections or modules that are joined together on-site on a foundation to make a single building.
If your client buys a newly constructed or substantially renovated mobile home or floating home, they'll pay the five per cent GST and can claim applicable rebates.
When leasing a new manufactured building, the GST applies only to the lease of a new manufactured portable building used for commercial use.
If your client buys or leases a used manufactured building for residential use, the GST doesn't apply to the sale.
However, if your client purchases or leases a used manufactured building for commercial use, then the GST does apply.
If your client bought shares in a co-operative housing complex for use as a primary residence, your client may qualify for a GST rebate.
Learn more
Vacation property is property bought by an individual for personal use, short-term rental use (less than one month), or a combination of these two.
Vacation property includes detached and semi-detached houses, rowhouses and townhouses, and condominiums.
Generally, if your client buys a new vacation property, they’ll be required to pay the GST if the property is not used primarily (more than 50 per cent) as the vendor's primary residence and all or substantially all (90 per cent or more) of the rentals of the property are for periods of less than 60 days.
If your client plans to buy a vacation property and rent it as a short-term rental, they must register for the GST and get professional tax advice.
Read: The GST/HST and the Purchase, use and Sale of Vacation Properties by Individuals.
Commercial properties are subject to the GST.
Learn more
Residential property exempt from the GST includes:
- the sale of an owner-occupied home if the home is bought and used primarily (more than 50 per cent) for personal use;
- used residential rental property for rent for periods of more than 30 days;
- the sale of a builder’s personal residence; or
- a residential property converted to an office – for example, an entire house converted to a dentist’s office.
The removal of GST will apply to new purpose-built rental housing, such as apartment buildings, student housing, and senior residences built specifically for long-term rental accommodation.
The GST Rental Rebate increases to 100 per cent from 36 per cent and removes the existing GST Rental Rebate phase-out thresholds for purpose-built rental housing projects. The enhanced GST Rental Rebate applies to projects that began construction on or after September 14, 2023, and on or before December 31, 2030, and complete construction by December 31, 2035.
Learn more
The GST is applied to REALTOR® commissions and fees.
The standard multiple listing contract advises that the commission or fee is payable on the earlier of the following:
- the completion date under the Contract of Purchase and Sale; or
- the actual date that the sale completes.
If you have questions, contact the GST office at 1-800-959-5525.
The seven per cent Provincial Sales Tax (PST) doesn’t apply to sales of real property. The PST applies to construction inputs are used to construct or improve real property.
The PST doesn’t apply to Realtor commissions and fees. PST does apply to legal and notary fees.
Learn more
Posted on
April 15, 2024
by
Marie Taverna
- BC NDP government introduced home flipping tax legislation in line with their February 2024 budget promise.
- Bill 15 2024 imposes a tax on profits from the sale of residential properties owned for less than 730 days, effective January 1, 2025.
- Tax rates range from 20 per cent for sales within a year to no penalty after two years, with exemptions for certain life circumstances and real estate development activities.
The BC NDP government has followed through on a February 2024 budget promise and introduced legislation to tax home flipping, beginning in 2025.
Bill 15 2024: Budget measures implementation (Residential Property (Short-term holding) Profit Tax) Act, known as the home flipping tax, applies to income from the sale of a property, including presale contracts, in BC if the property was owned for less than 730 days.
The tax will apply to income earned from the sale of:
- residential properties with a housing unit;
- properties zoned for residential use; and
- the right to acquire properties, such as the assignment of a purchase contract for a pre-build condo building.
If your client enters into a presale contract to buy a property under development, and buys the property – they close on the property once it is complete, for the purposes of the two-year window of the tax – they’ll be considered to have acquired it on the date they entered into the presale contract.
If your client is assigned a pre-sale contract and then closes on the built property, the acquisition date is the date they were assigned the contract.
When your client assigns a presale contract to another person within two years of entering into the presale contract, they’ll pay tax on any income received from the assignment.
The tax applies to:
- individuals or companies selling property; and
- net taxable income from the sale of taxable property that was owned for less than 730 days.
The tax is:
- 20 per cent tax on profits of homes sold within a year of purchase.
- 10 per cent if sold after 18 months.
- Not applied if your client sells after two years.
The tax is effective on January 1, 2025. Residential property bought before this date may be subject to the tax if sold on or after January 1, 2025 and owned for less than 730 days unless an exemption applies.
For example:
- If your client purchased a property on May 1, 2023, and sold the property on January 31, 2025, income earned from the sale of the property would be taxable.
- If your client decided not to sell the property until June 1, 2025, then income earned from the sale would not be subject to the tax since your client owned the property for more than 729 days.
The property seller may be a BC resident or a resident anywhere else in the world.
There are exemptions for:
- life circumstances including separation or divorce, death, disability or illness, relocation for work, involuntary job loss, a change in household membership, personal safety, or insolvency; and
- those adding to the supply of housing or engaging in real estate development and construction.
The tax doesn’t apply to Indigenous Nations, charities, governments and government-owned corporations, and non-profits.
If your client sells their primary residence and they owned the property for less than 730 days, they may qualify for a deduction of up to $20,000 from their taxable income if:
- they owned the property for at least 365 consecutive days before they sold it; or
- the property includes a housing unit that they lived in as their primary residence while they owned it.
If your client sells a portion of their interest in the property, their primary residence deduction amount will be proportionate to that interest.
The Ministry of Finance has provided more details on their website, including how the tax is calculated and additional examples related to pre-sales.
Note: the BC home flipping tax is NOT the federal property flipping rule, which is a separate federal tax.
Posted on
April 7, 2024
by
Marie Taverna
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Not every homeowner is willing or able to dedicate backyard space to a big garden, but the size of your garden shouldn’t deter you from looking into options for a very rewarding hobby.
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Whether through simply growing a few herbs or flowers in containers, or by tilling a plot for bountiful harvests, gardening is known to improve physical activity and help reduce stress. Furthermore, tending to plants can help us develop personal resilience and learn to embrace acceptance on a psychological level. If you are a beginner, do not dismay – you will be surprised at the advice you can easily gather just by researching online or at a garden-centre.
Start with a plan based on the time you want to invest and the results you want to achieve, such as abundant foliage or luscious fruits and vegetables. Although each type requires specific care, indigenous plants tend to be hardiest. After determining growing schedules and sunlight requirements, you need to decide when and where to plant. Make sure taller species do not overshadow neighbouring sunlight-seekers, but also avoid over-exposing those needing shade. Before planting seeds or transplanting slips, condition the soil with recommended nutrients, and ensure water is readily accessible. |
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Posted on
April 7, 2024
by
Marie Taverna
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Let’s face it. We all get busy at times. Sometimes we get “crazy-busy.” The trouble is, if you’re thinking of selling your property, having a jam-packed schedule might make you want to put off listing until a later date.
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And, who knows what the market will be like later in the year?
The good news is, you can sell your home, even if you’re busy. There are plenty of ways to reduce the time, effort and stress involved.
The first step is to find out what needs to be done. Make a list. Turn that list into a plan and get that plan down on paper. That way, the process won’t just live in your imagination — where it might seem much bigger and more intimidating than it really is. Instead, it will be realistic and practical.
The next step is to see what can be done by others. If your schedule is already hectic, you want to minimize what you do on your own and outsource where possible. For example, you could hire a cleaning company, junk removal service, professional stager, and/or tradesperson. Of course, you’ll need to weigh that expense against the time you’d save, but it is often worth it.
Staying organized is also essential. When you’re busy, effective organization tools — to-do lists, calendar, scheduling app, etc. — will be your best friends. The more organized you are, the more you’ll feel on top of things.
Finally, get talking to professionals who are going to be able to help you — and even shoulder some of the heavy lifting.
The bottom line? Don’t let being “crazy-busy” prevent you from taking advantage of the opportunity to sell your home. |
Posted on
April 7, 2024
by
Marie Taverna
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When you’re preparing your home for sale, you obviously want your property to look its best for buyers. That means fixing things that are broken, and, possibly, making a few improvements.
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But, how do you decide whether to invest in fixing or improving something versus just leaving it as is?
Say, for example, the walls throughout your home are a bit faded. (They’ve gone through a lot of living!) You can get all the dents and holes filled and repaint the entire place. That would definitely make a huge difference in how your property looks to buyers. Or, you can choose NOT to do that project in the hopes your home will “show” well regardless.
There are a few things to consider before making that decision:
- How much will the fix or improvement cost?
- How much better will your home look to buyers?
- Will the fix or improvement help sell your home faster?
- Will the fix or improvement help sell your home for a higher price?
Once you have those answers, you’ll be in a much better position to make that decision.
By the way, painting is almost always a smart move when preparing your property for sale. The impact can be dramatic, and the cost is relatively low.
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Posted on
April 7, 2024
by
Marie Taverna
Posted by
Peter Borszcz
Montgomery Miles & Stone Law Firm
In an effort to increase the supply of long-term residential housing, the BC Government has introduced the Short-Term Rental Accommodations Act) which will have substantive effects on many individual homeowners.
In brief, the legislative changes include:
- Limiting short-term rentals to the host’s principal residence plus one secondary suite or accessory dwelling unit (ADU) in most major BC communities (populations of 10,000 or more or adjacent communities) effective on May 1, 2024.
- Empowering regional districts to license short-term rentals located outside municipalities.
- Data sharing from short-term rental platforms is required to monitor and enforce the rules.
- Removal of legal non-conforming use or grandfathering of historical short-term rental use.
- Creation of a provincial registry for short-term rentals and a compliance and enforcement unit.
These rules exclude hotels, motels, strata hotels, timeshares, fishing lodges, First Nations reserve lands, and modern treaty lands (unless those First Nations opt in).
Importantly, the new rules serve as a baseline for the province, but they do not supplant stricter municipal restrictions; for example, the City of Kelowna has recently removed short-term rentals as a secondary use for all zones.
The new legislation will affect real estate across British Columbia. Here are some common questions from REALTORS® across the province:
Q: How do we advise clients who currently own short-term rental accommodations?
A: Clients should be aware that the new provincial Short-Term Rental Accommodations Act will come into force as of May 1, 2024. This Act is in addition to any municipal rules and strata bylaws that already apply. Clients should examine whether their use complies with the new law.
Q: I have a listing in a small or resort municipality; how do I know if the new short-term rental accommodations principal residence requirement applies here?
A: There are several exemptions: small and resort municipalities, mountain resort and electoral areas (including the Gulf Islands), and most municipalities with a population under 10,000 people (except those adjacent to larger municipalities; e.g., Highlands, Belcarra, Anmore, Qualicum Beach, Peachland). Small exempt municipalities, which are initially exempt from the principal residence requirement in the legislation, may opt in. Realtors should check the list of included and exempted municipalities as part of their due diligence (see the full list here).
Q: How do I advise buyers looking to purchase short-term rental accommodations?
A: The current housing shortage in British Columbia is prompting governments at all levels to respond in various ways. Clients should be aware that laws are constantly changing, and current permitted uses may change. Buyers looking to purchase short-term accommodations should be aware that a number of laws have been recently amended to address the housing shortage, including local bylaws, provincial laws (e.g., Short-Term Rental Accommodations Act, Speculation and Vacancy Tax, etc.), and federal laws (e.g., Foreign Buyers Ban, Underused Housing Tax, etc.), which may affect their intended and future uses. REALTORS® should draft specific subject conditions to allow buyers to do the legal due diligence necessary to determine if the target property will support short-term rental use.
Q: One of my clients purchased a pre-sale condo and intends to use it for short-term rentals. With the introduction of the legislation, do they now have a new right of rescission for a material change after their initial 7-day recission right has passed?
A: This will depend on the nature of the pre-sale condo development, the contract, and the disclosure statement applicable for that unit. Developers are required to provide continuous and accurate disclosure, and affected buyers should be advised to seek immediate legal advice specific to their situation.
Q: If I am listing a property that is currently a short-term rental, do I need to disclose the change in the law?
A: The change in law has been published and advertised by the government; therefore, this would not be considered to be a material latent defect and would not require separate Rule 59 disclosure. There may be practical reasons that a REALTOR® and a client may choose to provide this as prudent additional disclosure (for example, to ensure a smooth closing); however, this should only be done with your client's specific direction.
Q: A local strata building wants to petition the mayor to “opt-out” of these provisions. Are they able to do so?
A: While the legislation has “opt-out” mechanisms for local government where the rental vacancy rate is 3 per cent or higher for two or more years, these provisions are limited and only apply to a geographic area, not a specific building or parcel. There is no mechanism in the legislation for a single property or building to be exempted, even if the local government desires this.
These legislative changes will affect buyers, sellers, strata corporations, and developers differently depending on each client's unique circumstances. As these are general guidelines only, REALTORS should ensure that their clients obtain legal advice specific to their respective clients' circumstances.
More information on how these changes affect BC's real estate is available from BCREA and BC Financial Services Authority.
Without limiting the Terms of Use applicable to your use of BCREA's website and the information contained thereon, the information contained in BCREA’s Legally Speaking publications is prepared by external third-party contributors and provided for general informational purposes only. The information in BCREA’s Legally Speaking publications should not be considered legal advice, and BCREA does not intend for it to amount to advice on which you should rely. You should not, in any circumstances, rely on the legal information without first consulting with your lawyer about its accuracy and applicability. BCREA makes no representation about and has no responsibility to you or any other person for the accuracy, reliability or timeliness of the information supplied by any external third-party contributors.
Posted on
April 3, 2024
by
Marie Taverna
The days are long, but the years are short. So, although it may be tempting to design a bedroom around your kids’ current wants and interests, it’s important to create a space that can evolve with them over time. Get inspired with these décor tips and create a bedroom that your children will love now and in five years’ time.
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1. Don’t overdo the theme
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Going all-in on your kids’ current obsession as an overall theme may seem like a no-brainer. But resist the urge to go overboard. Instead, add touches of your child’s desired theme throughout. Lamps, pillows, wall art and even themed bedding provide the perfect opportunities to be more daring and playful.
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2. Invest in furniture that will last
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Changing furniture every couple of years isn’t sustainable. Instead of spending money on child-sized tables and beds, consider investing in pieces that will stay grow with your child in terms of size and design. For example, if you have a young child that is graduating to a big kid bed, opt for a single bed that will last until they are a teen.
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3. Get strategic with storage
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Floating shelves, custom built-ins, bedroom benches, and under-bed storage are key to keeping your child’s room tidy. These in-room solutions will encourage kids to take control of their environment, inspiring independence and making your life easier.
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Posted on
April 3, 2024
by
Marie Taverna
As the April tax deadline approaches, understanding the plethora of tax credits available can be a game-changer for homeowners and first-time buyers.
Whether you're stepping into your first home or you're a seasoned homeowner, being aware of these deductions and programs can significantly impact your tax filings and maximize your return this season.
GST/HST new housing rebate
- What is it? Recoup a portion of the GST or the federal part of the HST paid for new or renovated homes.
- Eligibility: Buyers of new homes, constructors of homes, or individuals who have majorly renovated their primary residence.
- Qualifying homes: New or substantially renovated primary residences.
- Claim process: Submit your claim within two years after the purchase or completion of renovations.
First-Time Home Buyers' Tax Credit (HBTC)
- What is it? A $10,000 non-refundable tax credit for eligible first-time home buyers, offering up to $1,500 in tax relief.
- Eligibility: First-time homebuyers or those who haven’t owned a home in the previous four years, including the buyer's spouse or common-law partner.
- Qualifying homes: Primary residences in Canada.
- Claim process: Claimed in the tax year when the home is purchased, on line 31270 of your tax return.
Home Accessibility Tax Credit (HATC)
- What is it? Offers a 15% non-refundable tax credit on up to $10,000 of eligible home renovation expenses, for a maximum of $1,500 in tax relief per year.
- Eligibility: Homeowners making accessibility-related renovations to accommodate seniors or individuals with disabilities.
- Qualifying renovations: Changes made to improve accessibility or help a senior or a person with a disability be more functional or mobile at home.
- Claim process: Claimed in the tax year when the expenses were incurred.
Multigenerational home renovation tax credit
- What is it? Provides up to $7,500 in tax relief for eligible renovations to accommodate a senior family member or an adult with a disability.
- Eligibility: Homeowners undertaking renovations to create a secondary dwelling for a senior or a person with a disability.
- Qualifying renovations: Renovations that enable the senior or adult with a disability to live with a relative in a secondary dwelling.
- Claim process: Available for expenses incurred after the tax year it was introduced.
Rental income deductions
- What is it? Allows landlords to deduct expenses related to generating rental income, including mortgage interest and property taxes.
- Eligibility: Property owners who earn rental income from residential or commercial properties.
- Qualifying expenses: Mortgage interest, property taxes, maintenance costs, utilities, and insurance.
- Claim process: Expenses are deducted in the tax year they are incurred.
Note this list isn't exhaustive, and specific provinces may offer additional deductions and credits not covered here.
Notice on Canada's Underused Housing Tax (UHT)
Effective since 2022, Canada's UHT imposes a 1% tax on underused foreign-owned properties, though it also has tax filing implications for those with rental units, or with properties held in partnerships or bare trust agreements, in order to claim exemptions. Anyone impacted by this tax is strongly encouraged to consult a tax professional to ensure adherence and avoid penalties.
If you have any questions about navigating these tax credits, please don't hesitate to reach out.
Should you need more detailed tax advice, I'd be happy to refer you to a certified tax professional who can provide you with personalized guidance and inform you of other programs that may apply to your situation. Let's make sure you're getting the most out of your home-related tax opportunities this season!
Call me today!
Tracey Ridout (BC)
Mortgage Agent
(604) 760-6917
tracey.ridout@mortgagegroup.com
Posted on
April 3, 2024
by
Marie Taverna
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The number of Metro Vancouver1 homes listed for sale on the MLS® rose nearly 23 per cent year-over-year, providing more opportunity for buyers looking for a home this spring.
The Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,415 in March 2024, a 4.7 per cent decrease from the 2,535 sales recorded in March 2023. This was 31.2 per cent below the 10-year seasonal average (3,512).
“If you’re finding the weather a little chillier than last spring, you may find some comfort in knowing that the market isn’t quite as hot as it was last spring either, particularly if you’re a buyer,” Andrew Lis, GVR’s director of economics and data analytics said. “Despite the welcome increase in inventory, the overall market balance continues inching deeper into sellers’ market territory, which suggests demand remains strong for well-priced and well-located properties.”
There were 5,002 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2024. This represents a 15.9 per cent increase compared to the 4,317 properties listed in March 2023. This was 9.5 per cent below the 10-year seasonal average (5,524).
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 10,552, a 22.5 per cent increase compared to March 2023 (8,617). This is 6.3 per cent above the 10-year seasonal average (9,923).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for March 2024 is 23.8 per cent. By property type, the ratio is 18.2 per cent for detached homes, 31.3 per cent for attached, and 25.8 per cent for apartments.
Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Even though the market isn’t quite as hot as it was last year, we’re still seeing modest month-over-month price gains of one to two per cent happening at the aggregate level, which is an interesting dynamic given that borrowing costs remain elevated,” Lis said. “With the latest inflation numbers trending in the right direction, it remains likely that we’ll see at least one or two modest cuts to the Bank of Canada’s policy rate in 2024, but even if these cuts come, they may not provide the boost to affordability many had been hoping for. As a result, we expect constrained borrowing power to remain a challenging headwind as we move into the summer months.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,800. This represents a 4.5 per cent increase over March 2023 and a 1.1 per cent increase compared to February 2024.
Sales of detached homes in March 2024 reached 694, a 5.4 per cent decrease from the 734 detached sales recorded in March 2023. The benchmark price for a detached home is $2,007,900. This represents a 7.4 per cent increase from March 2023 and a 1.8 per cent increase compared to February 2024.
Sales of apartment homes reached 1,207 in March 2024, a 7.9 per cent decrease compared to the 1,311 sales in March 2023. The benchmark price of an apartment home is $777,500. This represents a 5.7 per cent increase from March 2023 and a 0.9 per cent increase compared to February 2024.
Attached home sales in March 2024 totalled 495, a 6.2 per cent increase compared to the 466 sales in March 2023. The benchmark price of a townhouse is $1,112,800. This represents a 5 per cent increase from March 2023 and a 1.7 per cent increase compared to February 2024.
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| Download the March 2024 stats package |
Posted on
March 25, 2024
by
Marie Taverna
For the fifth consecutive time, the Bank of Canada has chosen to hold its overnight lending rate at its current level of 5%.
In its scheduled interest rate announcement for March 6th, Canada’s central bank declared that it would hold the policy rate at 5% and “continue to normalize the Bank’s balance sheet.”
Although the annual rate of inflation fell to 2.9% in January, the Bank pointed to underlying inflation factors, such as shelter costs, as justification for keeping rates where they are. In its announcement, the BoC stated that it would like to see further easing of inflation and price stability in the economy before it begins making cuts.
“In the six weeks since our January decision, there have been no big surprises. Economic growth has remained weak, and inflation has eased further as higher interest rates restrain demand and relieve price pressures. But with inflation still close to 3% and underlying inflationary pressures persisting, the assessment of Governing Council is that we need to give higher rates more time to do their work,” said Tiff Macklem, Governor of the Bank of Canada, in a press conference following the Bank’s decision.
When will interest rates come down?
Though there has been no cut to the overnight lending rate in almost four years, economists anticipate that the BoC will begin to reduce rates later this year – possibly in its scheduled June announcement – if inflation reduces further towards the central bank’s target of 2%.
The Bank of Canada will make its next announcement on April 10th, 2024.
Read the full March 6th report from here.
Posted on
March 25, 2024
by
Marie Taverna
As we approach the start of spring, you may be thinking about all of the projects around the house that you can finally start when warmer weather arrives – opening up the pool, adding those perennial flower beds to your lawn, or perhaps changing up your wall colours.
If you’re thinking about adding a fresh coat of paint to your interior spaces, why not take some inspiration from the most influential paint brands around?
Here are the 2024 colours of the year:
This warm and cozy shade of pink evokes “our desire to nurture ourselves and others,” according to Pantone. A lighter and softer hue compared to 2023’s Viva Magenta, Peach Fuzz promotes a sense of welcoming and comfort, making it an ideal colour for relaxation spaces, such as a bedroom or living room. Peach Fuzz pairs well with similar hues of pink, maroons and purples, or jewel tones.
Designed to promote feelings of “confidence and individuality,” this versatile soft black created by Behr can be easily paired with a variety of colour swatches. Whether you’re looking for a dark accent wall in your living area, or a bold statement shade in the dining room, Cracked Pepper transcends various interior design trends, textures and moods.
If you want a room to feel like a breath of fresh air, then adding Upward to your walls is the way to go. This silvery-blue hue feels light and breezy, stimulating feelings of calmness and creativity. Sherwin-Williams recommends complimenting this soft blue with grays, melon green or deep shades of navy.
Breaking away from typical shades of gray and white, Glidden has proclaimed Limitless as the new go-to neutral. This soft yellow is said to liven up spaces with ease, complimenting both warm and cool colours, whether you choose to pair Limitless with an earthy green, warm beige or rust-coloured red. It’s a colour for all seasons.
Borrowing inspiration from “the hues experienced through travels and moments that span beyond routine,” this Benjamin Moore bold blue can be used in both modern and traditional interiors. Blue Nova is well-suited for pairing with shades of ivory, burnt orange or colourful pastels.
Posted on
March 25, 2024
by
Marie Taverna
More and more, people are adopting greener lifestyles, whereby daily choices are made to significantly improve not only personal well-being, but the health of the planet too.
Homeowners are embracing the eco-friendly movement by making conscious decisions about the products they bring into their homes. This includes cleaning supplies, as they are known to contain chemicals that are harmful when ingested, inhaled, or come into contact with our skin.
If you’ve been thinking about switching out commercial cleaning products for a greener cleaning solution, then keep reading. We’ve got you covered with four key considerations when making the move to all-natural cleaning products.
Be sure to read to the end for a comprehensive list of cleaning ingredients you can use if you prefer the DIY route.
1. Harness the power of natural cleaning solutions
Sometimes people are hesitant to switch to natural cleaning products because they’re unsure if they will actually clean or disinfect surfaces. In most situations, natural cleaning products are strong enough to take care of everyday cleaning in your home. If you’re wondering which products are effective, click here for HGTV’s list of ‘The Best Natural Home Cleaning Products’.
2. Utilize bulk cleaning products
For additional sustainability and to cut down on single-use plastics, consider investing in refillable glass spray bottles to use with a bulk supply of cleaning liquids or tabs. Not only are you saving money, but displaying glass bottles can add to the aesthetic of your home. Many major retailers have several refill options available in a variety of pleasant scents to personalize your cleaning experience.
3. Avoid these ingredients
When it comes to selecting household cleaners, it’s crucial to be wary of greenwashing. Greenwashing refers to companies falsely marketing their products with misleading wording or packaging, while persuading the consumer to believe the product is natural or healthy.
Many mainstream cleaning products contain harmful ingredients, and even go as far as including known carcinogens. Protect yourself by reading the label, avoiding harsh chemicals and ensuring the cleaning solutions you are purchasing contain organic and biodegradable substances.
Some examples of chemicals to avoid include ammonia, chlorine, phosphates, synthetic fragrances, parabens, butoxyethanol, ethanolamine, sulfates, phthalates, phenols and triclosan.
4. Integrate DIY options into your cleaning routine
New to do-it-yourself cleaning products? Making your own cleaning products is cost-effective and eco-conscious. Organic, biodegradable ingredients like vinegar, baking soda, and essential oils can be combined to create effective cleaning solutions. Be sure to do your research when creating a disinfecting solution – potency is important!
Here is a comprehensive list of ingredients that are commonly used in natural cleaning products and you can use them:
- Lemon: Effective degreaser with a fresh scent.
- Vinegar: Mix equal parts water and vinegar for an all-purpose cleaner to use for windows, glass, and general surface cleaning. Bonus: Click here for a list of things NOT to clean with vinegar
- Baking Soda: Add water to create a paste for a gentle exfoliating cleaner.
- Essential Oils: Add a few drops to natural cleaners for a pleasant fragrance.
- Bonus tip: Many essential oils have additional antibacterial properties
- Castile Soap: Dilute with water to create a versatile all-purpose cleaner, or a foaming hand soap.
- Olive Oil: Mix with lemon juice for a natural wood polish that leaves surfaces shiney and repels dust.
- Hydrogen Peroxide: Use as a disinfectant for kitchen and bathroom surfaces.
- Rubbing alcohol: Use to remove stickiness from surfaces, or mix with water for a disinfectant or window cleaner.
As with any other cleaning product you use for the first time, complete a spot-test to avoid possible damage to your home.
These natural cleaning solutions will help kick-start your transition into cleaning products that are healthy for your family and the environment.
Posted on
March 25, 2024
by
Marie Taverna
Real estate prices in Canada’s recreational markets expected to rise in 2024 as buyers make a return
Recreational home prices on track to increase 5% this year amid improved consumer confidence, cuts to interest rates
With warmer weather on the way, Canadians will soon be able to once again enjoy weekends on the water and warm summer nights relaxing by the fire pit. In the lead up to prime time in the country’s recreational housing markets, many potential buyers are expected to make a move on purchasing that lakeside cabin or family cottage this year, increasing competition for tight supply and pushing property prices up.
According to the recently-released Royal LePage® 2024 Spring Recreational Property Report, the median price of a single-family home in Canada’s recreational regions is forecast1 to increase 5.0% in 2024 to $678,930, compared to 2023, as a boost in consumer confidence will bring sidelined buyers back to the market.
“Across the nation there was a sizable rise in demand for all types of housing during the pandemic, but nothing could match the ‘gold rush fever’ that occurred in recreational property markets,” said Phil Soper, president and CEO, Royal LePage. “With city offices closed and the wide availability of high-speed internet allowing people to take video meetings on lakefronts and mountain tops, excess demand pushed recreational property prices to unprecedented heights.
“Inflation reared its ugly head, interest rates soared and the economic downturn that followed pushed cottage, cabin and chalet prices off those pandemic peaks, yet the fundamental demand for recreational living has not abated. We believe that this market segment will see a resurgence of activity in 2024,” continued Soper.
In 2023, the weighted median2 price of a single-family home in Canada’s recreational property regions decreased 1.0% year over year to $646,600. This follows a year-over-year price decline of 11.7% in 2022. When broken out by housing type, the weighted median price of a single-family waterfront property decreased 7.9% year over year to $1,075,500 in 2023, and the weighted median price of a standard condominium decreased 1.5% to $420,300 during the same period.
Drop to interest rates could heat up buyer activity
According to a survey of 150 Royal LePage recreational real estate market professionals across the country,3 41% of respondents reported less inventory compared to the same time last year; 33% of respondents said that their region has similar levels of inventory. However, 64% reported similar or more demand from buyers for recreational homes. This sustained and growing demand for a limited number of available properties is expected to put upward price pressure on Canada’s recreational market.
Sixty-two per cent of experts said they believe demand will increase slightly in their region when interest rate cuts are made, while 21% expect demand will increase significantly.
“Recreational property purchases are not as heavily impacted by mortgage rates as those in the residential market. That said, consumer confidence in general will get a boost when we see a cut to the Bank of Canada’s key lending rate, expected later this year. This lift in activity will put upward pressure on prices. And, if this coincides with an influx of inventory, we should see a boost in sales as well,” concluded Soper.
Highlights from the release:
- All of Canada’s provincial recreational markets expected to see an increase in single-family home prices in 2024, with Ontario forecast to see the highest level of price appreciation at 8.0%
- Condominiums in Atlantic Canada’s recreational property market recorded the highest provincial year-over-year weighted median price appreciation in 2023, rising 16.9%
- Despite a modest decrease over the past year, the national weighted median single-family home price in Canada’s recreational real estate market remains 59% above 2019 levels
Posted on
March 5, 2024
by
Marie Taverna
Posted on
March 5, 2024
by
Marie Taverna
Window coverings can make or break the aesthetic in any space. Curtains are a great way to change the appearance of a room, making it feel brighter and even bigger. However, choosing the wrong curtains may have the opposite effect.
Here is a guide to picking the right curtains for your space:
To Add Width
If your window is narrow or you want to widen the look of your space, extend your curtain rod on either side of the window to cover an area of 10 to 12 inches outside the frame. Avoid slat blinds or Roman blinds if you’re trying to make your windows look wider. These options will sit inside the frame, making the window look even more narrow.
To Add Height
Place your curtain rod flush to the ceiling or below to add a lengthening effect to the room. Make sure your drapes are long enough to be flush with the floor to make the most of this effect, ensure that you avoid contact with heating elements or floor vents. Avoid fixing your curtain rods just above your window if you’re trying to create the illusion of higher ceilings.
To Add Privacy Without Sacrificing Light
Opt for fabrics such as thick linen or double-lined cotton to prevent your neighbours from seeing your living room dance parties. Black-out curtains are a great option to preserve energy and enhance privacy. You may also opt to install roller shades in your bedrooms for additional privacy.
Need more design inspiration? Our blog has ideas for every room in your home, visit blog.royallepage.ca.
Posted on
March 5, 2024
by
Marie Taverna
Spring isn’t only a time of renewal for us. As the days get longer, your houseplants are beginning to wake up from their winter dormancy. Now is the perfect time to give them the tender love and care they need to thrive all year long.
Follow these tips for happier houseplants:
1. Repot: This is the ideal time to give plants a bit of extra space to grow by repotting, allowing their roots to stretch out and absorb more fertilizer. If your plants still have room for growth, add some fresh soil to the top.
2. Prune: Most indoor plants take well to pruning. In fact, pruning often encourages new growth. To start, cut off any leaves that are yellow, bruised, or shrivelled. Next, cut off any stems that have grown long and leggy or have put out only small new growth. New stems should form in their place!
3. Fertilize: There’s nothing like a good dose of nutrients to get your plants going after their winter rest! Now is the time to restart your fertilizing routine to give your plants the nutrients they need to thrive.
4. Dust and Wash: Did you know dust accumulation on leaves prevents light absorption in plants? Give your plants a little spring bath by supporting the underside of the leaf with your palm, and wiping the surface with a damp paper towel or soft cloth. You can also put your plants in the bath and give them a shower with tepid water – just be sure not to overwater!
In need of more spring cleaning inspiration? Our blog features interior design trends, home improvement projects, and homeowner advice to enhance your life and investment. Visit blog.royallepage.ca.
Posted on
March 5, 2024
by
Marie Taverna
Your home should be the safest place in the world. Whether you live in a condo, apartment, townhome, or detached home, there are plenty of devices that can help you monitor and protect your home, helping you feel safer than ever.
Use smart cameras to monitor indoor and outdoor spaces
Home security cameras are more connected than ever. Most of today’s smart cameras allow you to monitor your home from anywhere in the world using Bluetooth and Wi-Fi connections. Aim to cover your front, back, and living areas for basic coverage. Cameras can go near windows, on flat surfaces or be mounted on the wall.
Smart doorbells are also a great option for condo and homeowners alike. Built-in cameras offer audio and video to let you see who’s at your door, and some even provide free intelligent alerts that can differentiate between people, packages, and animals.
Install a smart lock on your front door
Smart locks allow you to control your front door locks remotely via your phone or tablet with a Wi-Fi or Bluetooth connection. This is an excellent choice for families with kids or teenagers who stay at home alone after school or for pet owners who need to let in a dog walker or cat sitter.
Stay alert with smart smoke and carbon monoxide detectors
Smart smoke and carbon monoxide detectors sound alarms just like traditional models, but can also deliver life-saving alerts to your devices should you be away. Many of these devices can be synced with your smart home security system as well.
I know how important it feels to come home to a space that feels safe and secure. If you need help protecting your home, don’t hesitate to get in touch. I can connect you with my network of trusted local experts.
Posted on
March 5, 2024
by
Marie Taverna
According to the Royal LePage® House Price Survey released today, the aggregate price of a home in Canada increased 4.3 per cent year over year to $789,500 in the fourth quarter of 2023. On a quarter-over-quarter basis, however, the national aggregate1 home price decreased slightly by 1.7 per cent, highlighting that elevated borrowing costs continue to affect market activity, as Canadians adapt to the higher interest rate environment.
“I believe the narrative suggesting that the housing market will rebound only when the Bank of Canada lowers rates misses the mark,” said Phil Soper, president and CEO of Royal LePage. “The recovery will begin when consumers have confidence the home they buy today will not be worth less tomorrow. We see that tipping point occurring in the first quarter, before the highly anticipated easing of the Bank of Canada’s key lending rate.”
The Royal LePage National House Price Composite is compiled from proprietary property data nationally and regionally in 63 of the nation’s largest real estate markets. When broken out by housing type, the national median price of a single-family detached home increased 4.4 per cent year over year to $816,100, while the median price of a condominium increased 4.0 per cent year over year to $583,900. On a quarter-over-quarter basis, the median price of a single-family detached home decreased 2.1 per cent, while the median price of a condominium declined modestly by 0.6 per cent. Price data, which includes both resale and new build, is provided by Royal LePage’s sister company RPS Real Property Solutions, a leading Canadian real estate valuation company.
In December, Royal LePage issued its 2024 Market Survey Forecast, projecting that the aggregate price of a home in Canada will increase 5.5 per cent in the fourth quarter of 2024, compared to the same quarter in 2023.
“Similar to what we witnessed last spring, when the Bank of Canada paused rates for the first time in a year causing sales activity and prices to increase almost immediately, the first sign of rate cuts – even if only by 25 basis points – could create a flurry of activity in the real estate market, releasing pent-up demand. Those who have been holding off listing their homes will follow close behind,” added Soper.
1 Aggregate prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions and includes both resale and new build.
Learn more:
Posted on
March 4, 2024
by
Marie Taverna
SURREY, BC – Home sales in the Fraser Valley posted a second consecutive bump in February as new listings continue to rise and trend slightly above the 10-year seasonal average.
The Fraser Valley Real Estate Board recorded 1,235 transactions on its Multiple Listing Service® (MLS®) in February, a 32 per cent increase over January but still 21 per cent below the 10-year average for sales in the region. New listings increased to 2,797 in February, up 18 per cent from January and 4 per cent above
the 10-year average.
“There is somewhat of a buzz in the market right now,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “We are seeing new listings come onto the market and REALTORS® continue to see more traffic at open houses, however buyers are still exercising caution. We aren’t out of the woods just yet, but
the signs are pointing to a further increase in activity as we head into spring.”
Active listings in February were 5,561, up by 14 per cent over last month and up by 26 per cent over February 2023. With a sales-to-active listings ratio of 22 per cent, overall market conditions are edging into a seller’s market. The market is considered balanced when the ratio is between 12 per cent and 20 per
cent.
“All indications suggest we will see the Bank of Canada’s overnight rate begin to decrease mid-year, which is encouraging for buyers and sellers,” said FVREB CEO Baldev Gill. “With that confidence and the spring market on the horizon, we recommend anyone looking to buy or sell to seek the knowledge and guidance
of a professional REALTOR® who can provide detailed analysis and intimate knowledge of the local market.”
The average number of days homes are spending on the market is dropping, with single-family detached homes spending 35 days on the market, down from 44 days in January, apartments spending 29 days on the market, down from 41 days in January and townhomes moving more quickly at 28 days, down from 33
days on the market in January.
After six months of decreases, overall Benchmark prices posted a slight bump in February, edging up 0.9 per cent from January and up 4.8 per cent over February 2023.
MLS® HPI Benchmark Price Activity
- Single Family Detached: : At $1,485,600, the Benchmark price for an FVREB single-family detached home increased 1.3 per cent compared to January 2024 and increased 8.4 per cent compared to February 2023.
- Townhomes: : At $831,000, the Benchmark price for an FVREB townhome increased 0.7 per cent compared to January 2024 and increased 6.7 per cent compared to February 2023.
- Apartments: At $546,100, the Benchmark price for an FVREB apartment/condo increased 1.2 per cent compared to January 2024 and increased 7.2 per cent compared to February 2023.
To read the full statistics package, click here.
Posted on
March 4, 2024
by
Marie Taverna
Affordable housing was the top priority in BC Budget 2024 and the government plans to make significant capital commitments to get middle-income earners into market homes and provide more supports and protections for renters.
Here are the highlights for property buyers, renters, and small business.
The first-time homebuyers’ exemption
Effective April 1, 2024, the threshold is increased from $500,000 to $835,000, with the first $500,000 exempt from property transfer tax. The phase out range is $25,000 above the threshold, with the complete elimination of the exemption at $860,000.
The newly built home exemption threshold
This threshold now eliminates the PTT for eligible first-time home buyers on new homes up to $1,100,000 from the previous $750,000. The phase out range is $50,000 above the threshold, with the complete elimination of the exemption at $1,150,000 for qualifying newly built homes.
New purpose-built rental buildings
Buyers of new qualifying purpose-built rental buildings will be exempt from the PTT starting January 1, 2025 and ending December 31, 2030. This exemption builds on the further two per cent property transfer tax exemption for new purpose-built rentals announced in Budget 2023 and the rental housing revitalization tax exemption provided in Budget 2018.
PTT exemptions dates
- Increase threshold for first time home buyers’ exemption – begins April 1, 2024.
- Increase threshold for newly built home exemption – begins April 1, 2024.
- Enhanced exemption for new purpose-built rental buildings – begins January 1, 2025 and ends December 31, 2030.
The government estimates these new PTT exemption thresholds will save homebuyers about $8,000 and British Columbians over $100 million annually, and up to 14,500 homebuyers – twice as many as before – will now be eligible for the PTT exemption.
PTT revenue growth is expected to average 8.6 per cent annually over the next two years.
Note: For more than two decades, Greater Vancouver REALTORS® have been advocating for changes to the PTT, meeting with politicians and providing submissions each year. Government has finally listened.
The government is bringing in a new flipping tax, effective January 1, 2025, on the profit made from selling a residential property, including a presale assignment, within two years of buying it.
The rate is 20 per cent within the first year of purchase, declining to zero between 366 and 730 days. The tax will not apply to land or portions of land used for non-residential purposes.
There are exemptions for
- those adding to the supply of housing or engaging in real estate development and construction
- life circumstances including separation or divorce, death, disability or illness, relocation for work, involuntary job loss, a change in household membership, personal safety, or insolvency
In addition to these exemptions, individuals selling their primary residence within two years of purchase can exclude a maximum of $20,000 when calculating their taxable income.
The government estimates the tax would generate $44 million in revenue in the 2025/2026 fiscal year, which is slated for affordable housing.
Source: BC Budget 2024, page 66.
BC Builds, launched in February 2024, includes $198 million over three years and leverages government-owned, public, and underused land, and low-cost financing to bring down construction costs and deliver more middle-class rental and market housing.
Forgivable loans up to $40,000 for homeowners to build and rent secondary suites below market rates to quickly increase affordable rental supply. An annual income-tested tax credit of up to $400 per year for renters.
Allowing small-scale, multi-unit affordable housing including townhomes, duplexes, and triplexes through zoning changes and proactive partnerships.
Streamlining permitting to reduce costs and speed up approvals to get homes built faster.
Strengthening enforcement of short-term rental regulation.
A new, one year electricity affordability credit for all households, regardless of income starting in April 2024. Households will save on average $100 a year on their electricity bills.
Commercial and industrial customers will receive savings of about 4.6 per cent based or about $400 on their 2023/24 electricity bills.
More than $1 billion in new spending measures to help protect British Columbians from the effects of climate change and build a greener economy.
The Climate Action Tax Credit increases to $1,005 per year for families up to four persons, up from $890 last year. Individuals will receive $504 compared to $447 last year. Start date is in July 2024.
There is $100 million in relief for the employer health tax, including the continuation of the venture capital tax credit, and the expansion of the interactive digital media tax credit.
The government estimates this years’ deficit at $5.914 billion rising to $7.773 billion by 2026.
The total debt will rise from $103 billion to $123 billion in 2024-25.
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