Rob Johnson

If you sell a property within 2 years you are subject to BC Home Flipping Tax - 20% which diminishes up to the 730days.  Full details here: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/bc-home-flipping-tax

Here’s a good article published in REM September 19 by Karen Yolevski, Royal Lepage explaining how declining rates will eventually trigger more buyers to enter the market, which will cause prices to increase.  The question is when will rates bottom out? https://realestatemagazine.ca/unlocking-homeownership-why-interest-rate-cuts-are-not-the-only-key-to-getting-first-time-buyers-in-the-door/

Read on…..https://www.canada.ca/en/department-finance/news/2024/09/government-announces-boldest-mortgage-reforms-in-decades-to-unlock-homeownership-for-more-canadians.html?utm_source=sfmc&utm_medium=email&utm_campaign=COMM_News2Me_EN_2024-09-19&utm_term=https%3a%2f%2fwww.canada.ca%2fen%2fdepartment-finance%2fnews%2f2024%2f09%2fgovernment-announces-boldest-mortgage-reforms-in-decades-to-unlock-homeownership-for-more-canadians.html&utm_id=1124535&sfmc_id=22383141

Here’s an interesting article regarding the state of the market across the country posted by Matt Day September 17th on CREA’s website: https://www.creacafe.ca/canadian-real-estate-activity-flat-as-a-pancake-in-august/?utm_source=sfmc&utm_medium=email&utm_campaign=COMM_News2Me_EN_2024-09-19&utm_term=https%3a%2f%2fwww.creacafe.ca%2fcanadian-real-estate-activity-flat-as-a-pancake-in-august%2f&utm_id=1124535&sfmc_id=22383141

This supports my feeling that most buyer’s are sitting on the sidelines right now waiting for interest rates & pricing to bottom out before acting.  

Here’s the details on the B.C. Government website - https://news.gov.bc.ca/releases/2024HOUS0115-001044

BC Government Responds to Industry Feedback on Residential Tenancy Act

Changes

In the immediate wake of publicly voiced concern from the BC Real Estate Association (BCREA), the BC Government has reversed course on two recent changes to the Residential Tenancy Act (RTA) as they relate to buyers of tenanted properties.

The initial changes laid out in Bill 14, which came into effect on July 18, 2024, required four months' notice - instead of the previous two months' notice - for evictions due to personal or caretaker use. The legislation also raised the dispute period from 15 days to 30 days.

Now the government is amending the regulation to lower the personal-use notice period to three months and the dispute period to 21 days for situations when a landlord gives notice to a tenant on behalf of a purchaser. These changes come into effect on August 21, 2024.  Here’s the link to the various types of evictions & the procedures:

https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/ending-a-tenancy/evictions/types-of-evictions

Most everyone thinks presale properties are a “deal.”  Why?  Because in recent years the market has performed extremely well.  For a relatively small down payment you can secure a piece of real estate & most likely make money!! Historically the ability to make a profit was excellent, by either “flipping” the property before completion or renting it for short / long term.  However, the market does not always go up. Remember the global economic melt down during 2008? Interest rates have jumped significantly lately + consumer & government debt is at an all time high. 

Note: there’s lots of changes to the restrictions & taxation related to flipping /rentals now.  Be aware of these pitfalls.  Get some independent professional advice before you commit.  Otherwise there might be some serious consequences.  Remember the sales reps at the presentation centre represent the developer not you!! 

Here’s a great video from Spagnuolo & Co that outlines some key points related to presales: https://youtu.be/Tsm4ScBf_ow 

Here’s an informative article that puts the current mortgage interest rate environment in perspective: 

https://www.forbes.com/advisor/ca/mortgages/mortgage-rates-history/

By Fiona Campbell in Forbes Advisor - March 14, 2024