Sutton Showplace Realty (2015) Chilliwack

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2019 Sutton Showplace Realty - Realtor Awards

29 March 2019
Sutton Showplace Realty Chilliwack

This morning was our Annual Sutton Awards breakfast to to celebrate the achievements of our amazing Agents!

Congratulations to everyone who worked so hard to reach their milestones this year!!

  

 

 

 

 


B.C. speculation tax changed to exempt Gulf Islands properties

27 March 2019
Sutton Showplace Realty Chilliwack

The changes include limiting the geographic areas of the tax to Nanaimo and Greater Victoria, exempting Parksville, Qualicum Beach, the Gulf Islands and Juan de Fuca areas that had originally fallen under the regional districts in both areas that were to be subject to the new tax.

Metro Vancouver’s scope is tightened too, with the original Fraser Valley location being reduced to Mission, Abbotsford and Chilliwack, meaning Kent, Hope and Harrison Hot Springs are now exempt. Bowen Island is also exempt. Whistler, which is suffering a rental crisis, was not included in the tax. However, the municipalities of Kelowna and West Kelowna remain part of the tax, despite a request to government to be exempted

“Over 99 per cent of British Columbians will not pay the tax,” said James. “Only those who hold multiple properties and leave them empty in our province’s major cities will be asked to contribute.

“People with cottages at the lake, or cabins, or on the islands, will not pay this tax. People with second homes outside of high cost urban areas will not pay the tax. We’re going after those who are clearly taking advantage of the market and driving up prices. We’re ensuring housing stock in our major cities is available for people who work hard and live in those cities.”

The government unveiled three rate structures for the tax as well. The full rate of two per cent will be reserved for foreign property owners, a middle rate of one per cent for out-of-province owners and the lowest rate of 0.5 per cent for British Columbians who own multiple properties but don’t rent them at least six months of the year. 

“Properties that are used as qualifying long-term rentals are exempt from the tax,” read a government background document. “Homes will need to be rented out for at least three months to qualify for an exemption in 2018. Starting in 2019, homes will need to be rented out for at least six months, in increments of 30 days or more, to qualify for an exemption.”

The rate redesign comes with a change to how the speculation tax would be administered.

At first, it was proposed to be paid up front and then offset by a non-refundable income tax credit to be applied in that fiscal year, potentially months later. That’s still the case for foreign and out-of-province owners. But B.C. residents will be given an upfront tax credit program that will give them the bill, if any, without having to go through the income tax system. The credit will be up to $2,000, said James, but only applicable to one extra property.

Also, properties valued at below $400,000 in urban areas such as Metro Vancouver and Greater Victoria will be exempt if owned by a British Columbian. People who own properties in condos where strata corporations don’t allow rentals will be temporarily grandfathered into the program, said James, but with a caution that government won’t allow stratas to try to change their rental rules now to avoid the tax. And there will be “special exemptions” for cases in which a senior goes into long-term care or there is a death in a family, said James.

Article sourced from The Vancouver News: https://bit.ly/30MhTH5


BC Speculation Tax

22 March 2019
Sutton Showplace Realty Chilliwack

Are you on the title of your parent or child's property?
The deadline for claiming your exemption from this new tax is March 31, 2019. The online form isn't as clear as it could be about claiming this exemption.
The following information is referred from the Government website.

Individuals Exemptions for Speculation and Vacancy Tax

 

People who own residential property within designated taxable regions of B.C. may be eligible for an exemption from the speculation and vacancy tax.

Shared Ownership

When more than one owner is on title for a residence in a taxable region, each owner claims their relevant exemption as an individual. Different eligibility requirements may apply to different owners.

Example: If a parent co-owns a home with their adult child and the adult child lives in the home and the parent lives elsewhere, then the following exemptions will apply:  

  • The child claims the principal residence exemption
  • The parents claim the tenancy exemption for family or other non-arm's-length persons

Example: An elderly parent adds their adult child on title to the parent’s condo in Vancouver for end of life planning. The parent still lives in the condo and the child lives in Prince George. The exemptions will apply as follows:

  • The parent claims the principal residence exemption
  • The child claims the tenancy exemption for family or other non-arm's-length persons

Click here for a list ofExemptions: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/exemptions-speculation-and-vacancy-tax/individuals


Featured Listings

20 March 2019
Sutton Showplace Realty Chilliwack

A few of our Featured New Listings this week...

https://www.youtube.com/watch?v=ww2R8Hx7-lc&feature=youtu.be


New Mortgage Rules are impacting B.C. families' abilities to purchase homes.

18 March 2019
Sutton Showplace Realty Chilliwack

B.C. real estate board urges feds to revisit mortgage stress test

Stress test reducing people’s purchasing power by as much as 20 per cent, BCREA says...

B.C.’s real estate board is joining the chorus of voices across the country urging the federal government to revisit the year-old stress test rule that has been criticized for eroding housing affordability for many.

The B-20 stress test was implemented in January 2018 to help cool down the red-hot housing market in Canada’s major cities. Would-be homebuyers now have to qualify at an interest rate two percentage points above the rate they negotiate with the bank.

The BC Real Estate Association says the test is reducing people’s purchasing power by as much as 20 per cent.

“We would like to see a review and reconsideration of the current mortgage underwriting ‘stress test,’ as well as a return to 30-year amortizations for federally insured mortgages,” chief executive officer Darlene Hyde said in a news release Tuesday.

“These rules must be changed now before B.C. families are left further behind.”

The association has pointed to the stress test as the leading reason behind dipping home sales since last summer. Sales have dropped 45 per cent in Vancouver since 2018, compared to 18 per cent nationally.

The average price of homes in the Lower Mainland nearly doubled, while it remained mostly steady across the province, up just 0.5 per cent to $716,100, in the first quarter of 2019.

Housing analysts predicted in late December that prices in the Lower Mainland will rise by just 0.6 per cent this year, compared to five per cent in 2018. If true, a home will cost an average of $1.3 million by the end of the year.

Hyde said the test is having a negative impact on other facets of the economy, such as retail spending, as home equity declines in line with decreasing benchmark prices.

The Canadian Home Builders’ Association has also said the mortgage rules may force builders to pull back, leading to slower growth of the housing stock and yet another supply crunch and higher prices down the road.


Article from The Progress: https://www.theprogress.com/news/b-c-real-estate-board-urges-feds-to-revisit-mortgage-stress-test/?fbclid=IwAR23SZe11mB1Y2I1N9SqdsjuPP-_KPnEM-aGnieyZpR_1c0VcVttFaXYng8


OPEN HOUSES

08 March 2019
Sutton Showplace Realty Chilliwack

Our agents are hosting a number of OPEN HOUSES this weekend. Visit our Facebook Page for a list!


Featured Listings

06 March 2019
Sutton Showplace Realty Chilliwack

Check out just a few of our newly listed homes. Stay tuned on Friday for OPEN HOUSE info for this upcoming weekend!