Vancouver Real Estate

Regardless of the current state of the Vancouver Real Estate market, there is never a bad time to look into home ownership. Rather than spending your hard earned savings on rent–and subsequently paying off someone else’s mortgage–why not take the leap towards building your own portfolio and equity? All economies have ups and downs, so it’s impossible to successfully time the real estate market with any consistency. The most important thing is to consider your own budget and your own personal goals prior to buying a home. This is where we come in.

The new Stress test and B-20 implemented by OSFI in 2018 will reduce most individuals’ borrowing power by about 20%. However, some credit unions and other lending institutions have not had to make these changes yet, making it increasingly important to speak to a mortgage professional in order to consider all options available to you.

Beginning January 1st 2018, all home owners must submit their property tax declaration, and state the status of their home. Failure to do so by the cut-off date, February 2nd, may subject home-owners to an empty home tax fine of 1% of the assessed value. For homes valued over $1M, that equates to over $10,000 in tax! This will be the new standard in Vancouver Real Estate, in order to combat vacancy rates in Vancouver and force more rentals to be released into the rental pool.

On August 2nd, 2016, the BC provincial government introduced the 15% foreign buyer tax. Although there has been a clear decrease in foreign ownership transactions (roughly a 10% drop from early 2016 to late 2016), the benchmark price of Vancouver homes have not been affected. In fact, prices have recovered to an average benchmark price of roughly $1.05M for all homes in Greater Vancouver for 2017; a 15.9% jump from December 2016. Overall, there has been little impact seen by the introduction of the foreign buyer tax.

The Foreign Buyer’s Tax has since been increased to 20% on the fair market value, based on your proportionate share.

Vancouver frequently ranks as one of the most livable cities in the world, surrounded by scenic mountain ranges and coastlines. It is no wonder individuals strive to move to Vancouver to begin a new. Most world cities have absorbent housing prices due to high demand and lack of supply, so it is no wonder that housing prices have increased drastically within the past 10 years in Vancouver. With that being said, Vancouver housing is still considered relatively cheap when compared to other cities like New York, London, Tokyo or Hong Kong. It would be reckless to comment on whether Vancouver is in a bubble or not, as no one is certain. However, if you buy within your means and make a sound financial plan, the effect of a bubble should not affect your lifestyle in the long run.