Archive for February, 2018

The heritage house at 3737 Angus Drive Vancouver was destroyed by fire

Thursday, February 22nd, 2018

Fire-damaged Vancouver mansion sparks heritage fight

Kerry Gold
The Globe and Mail

The heritage mansion at 3737 Angus Dr. looked like a write-off after it mysteriously went up in flames early on a Sunday morning last October.

However, the city has deemed that the house is very much salvageable, with more than 60 per cent of it intact, according to former Heritage Commission chair Richard Keate. The owner will have to restore it, not necessarily to its original state, but to an approximation of the original Tudor Revival that was built in 1910 by famous architect Samuel Maclure.

It’s good news for heritage advocates, and not just because they like old houses. It sends an invaluable message that protected houses will be protected – and that a torched house is not automatically a demolished house.

From the get-go, the fire department had said the fire was “suspicious.”

“Virtually 100 per cent of vacant house fires are deemed suspicious,” says Captain Jonathan Gormick, public information officer for Fire and Rescue Services.

It has since been confirmed that it was indeed “maliciously set,” he says.

Capt. Gormick said that contrary to initial reports, however, the arsonist did not light the fire in several spots around the house, but most likely in a single location.

He said the fire department did not have enough evidence to press charges against anyone.

The Angus Drive house had been added to the Heritage Register as an “A” category building in May, 2014. It is assessed at $14,216,000, and had been left empty for many years, except for a brief spell when it was rented out to a group of people. No one was living in the house at the time of the fire.

Capt. Gormick says empty houses are a particular risk to firefighters because of the unknowns. Firefighters must assume someone could be inside the house, either lawfully or unlawfully, so they have no choice but to check, putting themselves in danger. As well, they run the risk that the house might be missing walls or doors, which would normally help contain a fire. If the house is unoccupied and neglected, it could have unstable staircases or holes in the floors. And an empty house that catches fire poses an obvious risk to neighbours.

The restoration of 3737 Angus Dr. is not off to an easy start. The house has remained uncovered throughout the winter months. With a good deal of the roof gone, the house’s previously pristine interior has been exposed to rain, sleet and snow.

Mind you, further damage doesn’t mean the house won’t be saved, civic historian and consultant John Atkin says. He says that leaving the house vulnerable to further deterioration is only going to cost the owner further expense in his requirement to rebuild and restore it as it was.

“It won’t alter the fact that what goes on that site will look largely like what is there now,” he says. “It seems silly to not protect it in some way because you are just adding to the overall cost of everything.”

Heritage expert Don Luxton doesn’t understand why there’s been a four-month delay in covering the roof. “The movie industry could have covered that in a day,” he says. “The issue was you have to stabilize it and keep the water out. That was supposed to happen. If it hasn’t, then they are dragging their heels.”

The city ordered the owner to install a protective covering over the house on Nov. 1. The owner had asked for two extensions and was ultimately given until Feb. 16 to comply. The reason for the extension had to do with structural hazards and WorkSafeBC requirements. As of Sunday, the house remained uncovered, its interior subject to a fresh layer of snow.

The Angus Drive house had been much loved and was a pristine example of old-world craftsmanship; a historic beauty, both inside and out, with its peaked gables and half-timbered exterior.

Miaofei Pan and wife Wenhuan Yang are listed as the homeowners of 3737 Angus Dr. A year prior to the fire, Mr. Pan was in the news after he hosted Prime Minister Justin Trudeau at a Liberal Party fundraiser at another house he owns on the west side. At the time, he told The Globe and Mail that he lobbied Prime Minister Trudeau to make the process easier for wealthy investors to come to Canada from China.

Mr. Pan is a real estate developer and businessman with a complicated history both in Canada and China. He has owned two other homes in Richmond. Those houses had been the subject of safety infractions in 2011 and 2015, as reported by Globe reporters Kathy Tomlinson and Xiao Xu. The houses were held by Mr. Pan’s company and, despite the hazards, had up to 13 people living in them. Ms. Tomlinson and Ms. Xu also found out that Mr. Pan and his wife had been on a Chinese government “list of dishonest persons” because they had disobeyed a court order to pay out a $2.2-million loan from an asset-management firm that they had personally guaranteed. Mr. Pan had a long history of alleged debts and lawsuits in China, according to online Chinese language court records.

The couple rented out their Angus Drive mansion to a group of young people who used the house for parties and events in 2016.

Mr. Pan and Ms. Wang have made no public comment about the house, nor have they advised the city of their intentions.

The previous owner had done a painstakingly sensitive and meticulous update to the house, the interiors of which can be seen online in a realtor video. They’d proved that a heritage house could be added to without compromising its historical value, Mr. Atkin says.

“They had really done a superb job on the house and treated it with great respect, and yet added a substantial amount to the property that most people couldn’t see,” he says.

The house became one of the 317 pre-1940 houses covered under the First Shaughnessy Heritage Conservation Area (HCA) in September, 2015, protecting it from demolition. Vancouver got its very first HCA because the old houses had become targets of rampant redevelopment over the years. It took significant public consultation and was met with angry pushback from homeowners, who feared a drop in property values.

If the owner had wanted to bulldoze the house, he’d have to prove that it was unsalvageable.

Heritage experts worry that if Mr. Pan had been allowed to build new, it would have sent the message to other heritage-home owners that a neglected house – or a burned-out one – is an effective way to get around conservation rules.

“There is a concern about vacant houses,” Mr. Luxton says. “The city doesn’t want people to see this as a solution to getting rid of buildings they don’t want, because it’s dangerous. This is serious stuff.”

As part of the Heritage Action Plan, the city also introduced a Heritage Property Standards of Maintenance by-law that requires an owner of a house in the HCA to repair and maintain the house, and to prevent water penetration. The by-law targets owners who might use “demolition by neglect” in order to justify the removal of a heritage house.

“Certainly for Shaughnessy, because a number of houses have been left abandoned for years and years, that kind of demolition by neglect thing is a strategy,” says Michael Kluckner, chair of the Vancouver Heritage Commission.

“You’ve got to maintain the site, and the house. Currently, with the new vacant house rule, that is adding another level to it,” he says, referring to the city’s new Empty Homes Tax of 1 per cent of the house’s value, if left vacant. “But potentially that amount of money is not significant to people,” he adds.

It’s the first time that the city will be put to the test when it comes to enforcing the bylaw that protects historic houses within the First Shaughnessy Heritage Conservation Area, he says.

“We will see. In a way, it’s ‘who will blink first?’ as to whether the city will stand up for the HCA. When I look at the way the city enacts bylaws and then doesn’t enforce them … it doesn’t give me a huge amount of confidence. But I hope they will send the clear message that these buildings are here to stay.”

In an e-mail, the city suggested it would push for the owner to rebuild and reconstruct any damaged parts of the house. In order to do any major work on the house, he’d have to apply for a Heritage Alteration Permit (HAP).

“The director of planning could refuse a Heritage Alteration Permit application to significantly alter/demolish/replace the protected heritage building because it would negatively impact the building’s heritage value/character,” city staff said, “but would support an HAP to rebuild/reconstruct damaged components.”

Mr. Atkin says that even though Mr. Pan will have to restore the house, it won’t necessarily be true to its Tudor Revival glory: The authenticity of materials and workmanship isn’t a requirement. While HCAs usually follow strict federal conservation guidelines, the Vancouver version doesn’t.

“There isn’t a benchmark for conservation,” says Mr. Atkin, who was an outspoken critic of the omission at the time the Shaughnessy HCA was established.

As a result, the houses can be turned into replicas.

“It’s volumetric preservation, which is preserving the volume of structure there, but in the end you have a new structure.”

He cites a large house on Hudson, off the Crescent, which has been undergoing a two-year renovation. The interior was gutted and rebuilt, the exterior replaced with a “very good exact replica.”

“What you have standing there is a house that, for all intents and purposes, is brand new,” he says. “So it is really about rooflines and volume, but I think it’s a misnomer to call First Shaughnessy a ‘conservation area,’ because almost no conservation is being done there.”

Re/Max launches home value estimate tool for B.C. properties

Wednesday, February 21st, 2018

Remax.ca gives home value estimates for BC homes

REM

Re/Max of Western Canada, in partnership with Landcor Data Corporation, has launched a web tool that allows remax.ca visitors to look up estimated values of homes throughout British Columbia.

Consumers can visit remax.ca, type in any British Columbia address (that isn’t already listed by a real estate agent) and select the desired address from the drop-down menu. The home value estimate will appear at the top of the searched property page.

“Today’s consumers want as much access to information as possible,” says Elton Ash, regional EVP, Re/Max of Western Canada. “Anecdotally, we’ve already received a lot of positive feedback regarding the usefulness of this tool during our pilot project in Kelowna. Eventually, we hope to provide free home estimates for communities throughout the entire country.”

Re/Max Kelowna owner/managing broker Peter Kirk says the tool “gives our sales associates a huge competitive advantage. To our knowledge, there is no other real estate organization in Canada that provides this type of information on their website.

“We also see the incredible value of empowering our clients by giving them as much information about the local market as possible.”

© 2017 REM Real Estate Magazine

Real estate bodies react to BC budget

Wednesday, February 21st, 2018

Steve Randall
Canadian Real Estate Wealth

The British Columbia government announced its 2018 budget Tuesday but real estate bodies are not impressed with some of its measures.

While the budget sets out schemes to make certain aspects of life in the province more affordable; childcare, public transportation and healthcare are all given some help; the housing policies fall short according to industry experts.

“The Property Transfer Tax (PTT) increase to 5% for properties over $3 million, as well as the increase to 20% and expansion of the Foreign Buyer’s Tax to other parts of the province will have an immediate impact on transactions underway,” commented the British Columbia Real Estate Association.

The association is calling on the government to introduce transitional rules for all transactions impacted by the Budget 2018. It highlights that the Foreign Buyer’s Tax introduced in 2016 resulted in deals collapsing.

BCREA is also concerned that the new ‘speculation tax’ will impact local residents who own or want to invest in those markets by buying a second home or recreational property.

While welcoming the pledge to increase the supply of affordable housing, BCREA says that the tax measures are unlikely to achieve the government’s aim to “stabilize the market” and fail to address the issue of matching the supply to demand within a reasonable timeframe.

The Victoria Residential Builders’ Association has also hit out at the Budget.

It says there is “Very little here for market housing affordability. Increased taxes & housing is used as source of revenue for government programs.”

The association criticizes the failure of the government to introduce a reno tax credit to address asbestos, seismic concerns and energy efficiency.

And it says that the government continues to “use foreign buyers (4% of market in Victoria) as scapegoats for high housing prices, not the real causes – demand by a new large generation of young families, low interest rates and obstructive municipal land policies caused by a lack of regional planning & responsible governance.”

Copyright © 2018 Key Media Pty Ltd

Landlords express anxiety about impact of cannabis legalization

Wednesday, February 21st, 2018

Ephraim Vecina
Canadian Real Estate Wealth

Canadians will soon be able to add marijuana to their collection of household herbs, and that’s creating a nightmare for the country’s landlords.

With Prime Minister Justin Trudeau set to legalize recreational weed in July, apartment owners are concerned about safety and potential damage to their buildings if tenants grow plants and smoke up in their units. Landlords are lobbying provincial governments for legislation that would ban marijuana use in rental units or allow them to add restrictions to lease agreements.

“We’re hammering away at this pretty tirelessly,” according to David Hutniak, chief executive officer of Landlord BC, a housing-industry group in the province of British Columbia.

“Can you imagine you’re living in a 100-unit apartment, and in theory, there could be 100 grow-ops in that thing? I mean, that’s ridiculous,” Hutniak told Bloomberg.

Cannabis stocks have jumped and businesses are primed to cash in on Canada’s long-awaited pot party. Yet federal regulations on recreational use of the drug in the country, where medical marijuana has been legal since 2001, are still being worked out. Proposals include allowing people to smoke in private residences and to grow as many as four plants per rental unit. Provinces have the right to set rules in their own jurisdictions, including age limits for possession of weed and whether landlords can restrict use on their properties.

One reason landlords don’t want tenants lighting up is that many rental buildings are fairly old, so “smoke and smells are easily transmitted through hallways between units” and can disturb others who don’t want to partake, Canadian Federation of Apartment Associations president John Dickie explained.

Growing pot requires certain humidity levels that may damage apartment walls, and the electrical wires required to run the operation can start fires, according to Hutniak. Budding plants also give off a pungent aroma that can seep through door cracks.

Failing to implement regulations that allow landlords to ensure smoke-free, grow-free units could lead to higher rents, according to William Blake, spokesman for the Ontario Landlords Association. Some provinces, including Ontario, block landlords from extracting damage deposits from tenants, said Blake, who once spent more than $5,000 to clear the smell from a marijuana smoker’s unit.

“This is not a political issue for us – we care about taking care of our tenants and keeping costs low,” Blake said. “When we have to pay out thousands of dollars, landlords will want to raise the rents for the next tenants.”

Finding an affordable apartment in supply-squeezed cities like Toronto and Vancouver is already challenging, and vacancy rates are at record lows. For people who use pot, the search may get even tougher: It is “legal and legitimate” for landlords to select tenants who don’t smoke, Dickie argued.

Copyright © 2018 Key Media Pty Ltd

B.C. budget takes aim at foreign buyers

Wednesday, February 21st, 2018

Laura Kane
Canadian Real Estate Wealth

British Columbia is raising its foreign buyers tax and expanding it to areas outside of Vancouver, while bringing in a new levy on speculators, as part of a sweeping plan to improve affordability in the province’s overheated housing market.

The New Democrat government unveiled a 30-point housing plan in its first full budget on Tuesday that also increases the property transfer tax and school tax on homes over $3 million, and invests $6 billion in building 114,000 affordable homes over the next decade.

“Our intent is to bring stability to housing prices with these changes and have revenues to invest in building affordable housing,” said Finance Minister Carole James in a speech to the legislature.

“We recognize these are bold actions. But that’s what B.C.’s housing crisis demands.”

The previous Liberal government introduced a 15 per cent tax on homes purchased by foreigners in Metro Vancouver in 2016. Sales slowed for several months before rebounding and prices have continued to rise.

The minority NDP government will increase the tax to 20 per cent and will also apply it to homes in the Fraser Valley, central Okanagan, the Nanaimo Regional District and the Victoria area. The changes take effect Wednesday.

The speculation tax will be introduced this fall. The annual property tax will target foreign and domestic homeowners who do not pay income tax in B.C., including those who leave homes vacant. Satellite families, or households with high foreign incomes that pay little local income tax, will also face the levy.

Exemptions will be available for most principal residences, long-term rental properties and certain special cases, so most homeowners in B.C. won’t be affected, James said.

“This tax will penalize people who have been parking their capital in our housing market simply to speculate, driving up prices and removing rental stock,” she said.

In the 2018 tax year, the rate will be $5 per $1,000 of assessed value. Next year, the rate will rise to $20 per $1,000 of assessed value. It will initially apply to Metro Vancouver, the Fraser Valley, the Victoria area, the Nanaimo Regional District, Kelowna and West Kelowna.

A non-refundable income tax credit will also be introduced to offset the new levy, providing relief for people who do not qualify for an exemption but who pay income taxes in B.C.

Cameron Muir, chief economist at the B.C. Real Estate Association, said the tax could hit B.C. residents who have vacation properties or second homes, as the credit may not be enough to offset it.

It’s also unfair to penalize people from other provinces who own vacation homes in B.C., Muir added.

“That’s a really big tax increase for Canadians who have done nothing wrong but own recreation property in one of Canada’s most amenable climates,” he said.

Asked whether out-of-province owners of recreation properties in B.C. would be subject to the levy, James said the government was still considering possible exemptions.

The government also moved to close loopholes that allow people to skirt tax laws. It’s building a database on pre-sale condo assignments and a beneficial ownership registry that it will share with tax authorities.

The plan also addresses supply through what the government says is the largest investment in housing affordability in B.C. history _ more than $6 billion over 10 years to deliver 114,000 homes. That includes more than 14,000 rental units, 1,750 units for Indigenous people and 2,500 homes for the homeless.

It will increase a grant for elderly renters and expand a program that helps low-income families.

The government said it’s working with municipalities to develop new tools, such as rental zoning, and creating a new office to partner with non-profits and developers to build affordable homes.

Green Leader Andrew Weaver, whose three-member caucus struck a deal to support the minority NDP government, said the speculation tax and foreign buyers’ tax should be applied province-wide.

“We support these first steps, however, our view is that they’re not really as bold as we need to actually deal with the crisis before us,” he said.

The Opposition Liberals said the New Democrats have forgotten about creating revenue and tabled a budget that relies on taxes to pay for its promises.

Finance critic Tracy Redies doubted the government would be able to reach its affordable-housing goals.

“They said 114,000 housing units. They are coming up woefully short on that,” she said.

Thom Armstrong, executive director of the Co-op Housing Federation of B.C., applauded the government’s plan. Taxes on speculators and foreign buyers will help cool the market, he said.

“Anything that moderates demand in the market and has a dampening influence on prices will help the overall situation that our members and clients face,” he said.

Copyright © 2018 Key Media Pty Ltd

 

ADDITIONAL PROPERTY TAX FOR FOREIGN ENTITIES AND TAXABLE TRUSTEES

1.    Has gone from 15% to 20%, effective today.
2.    Contracts written before Feb. 20, 2018 with a closing on or before May, 2018 are exempted, but only for Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan or Nanaimo Regional District. Note this exemption does not apply in Greater Vancouver.
3.    Transfers pursuant to court order, order nisi of foreclosure, separation agreement, transfer from personal rep of deceased’s estate to beneficiary or transfer to surviving joint tenant are also exempt, provided the triggering event occurred before Feb. 20, 2018.
4.    This tax applies to the Capital Regional District, Fraser Valley Regional District, Regional District of Central Okanagan, Nanaimo Regional District and Greater Vancouver. The areas for each region can be found at https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax/bc-areas
5.    Only on residential property; if property is farmland or commercial with a residential component, tax applies on the residential component.
6.    Exemption for BC Provincial Nominee Program still applies.

SPECULATION TAX

1.    Tax is meant to target foreign and domestic homeowners who do not pay income tax in B.C.
2.    Tax will apply to same areas as foreign buyers tax apart from Okanagan, where it only applies to Kelowna and West Kelowna.
3.    Starts in 2018 at $5.00 per $1,000.00 of assessed value, goes up to $20 in 2019.
4.    Not sure how this will affect vacation homes, nor when this tax is payable.

PROPERTY TRANSFER TAX

1.    Tax rises from 3% to 5% on value of homes over $3,000,000.00.
2.    Remains at 1% on first $200,000.00, 2% on amounts between $200,000.00 and $2,000,000; 3% on amounts between $2,000,000.00 and $3,000,000.00 and 5% on amounts over $3,000,000.00.

PRE-SALE CONDO ASSIGNMENTS

1.    Developers will collect and report information about pre-sale condo purchases; nothing else in budget about pre-sale contracts or assignments that we have seen.

B.C. HOME OWNER SECOND MORTGAGES  

1.    This program is now cancelled – don’t think it was used much anyway.

Meet the realtor transforming Vancouver one block at a time

Wednesday, February 21st, 2018

Navigating tricky world of land assemblies can be highly profitable and controversial

Christopher Cheung
Vancouver Courier

There are three Vancouver Specials near the old Little Mountain social housing complex on Main Street. The specials were built in 1979 and were assessed at about $1.4 million each. But as a set, they sold for more than $10 million, according to Western Investor in December. That’s more than double what they would’ve fetched if sold separately.

Land assembly is kind of like the board game Monopoly: assemble a bunch of adjacent properties to get more profit. In Vancouver, it’s usually the lots of detached houses that are assembled and developed into condo apartments.

But land assembly is a tricky game to play because it involves many players and takes a lot of patience. Neighbouring homeowners not only have to collaborate, but be in consensus when selling their properties as a set to developers.

“It’s a long journey,” said Michelle Yu, “and they need to work together.”

If you recognize Yu’s name, it’s probably because you’ve seen it repeated on “for sale” signs in front of rows of detached houses on major Vancouver streets. Yu is a Re/Max specialist in land assemblies, and her team of 13 is behind deals that are transforming the residential landscape of Vancouver. To date, Yu and her team have sold 17 assembled sites in Vancouver.

Yu’s worked in Vancouver real estate since 1994, but decided to specialize in land assembly in 2010 when she realized its potential. Yu’s team gets more than 150 queries a year about possible land assembly.

“It’s not by what a seller might expect,” said Yu. “Making a house nicer doesn’t affect the value… The power to increase the value is not in their hands. It’s in the developers’ hands and the city.”

The right zoning and the right set of properties will entice a developer to pay top dollar for a site with development potential.

“Long, long time ago, people bought lots to make them smaller,” said Yu. “It’s kind of funny, now it’s the opposite.” Developers used to build nearly identical houses, to save money, on large lots before dividing them. That’s why there are adjacent Vancouver Specials in pairs around the city.

 

The business of people

Land assembly requires a range of expertise, which is why Yu has a lawyer, an engineer and an architect on her team to figure out what can be built where before selling to a developer.

Aside from the technicalities of properties and community plans, there’s the business of people.

“Some don’t want to leave the neighbourhood. They’re 90 something. Then what can you do?” said Yu. “You need to be patient and listen carefully about their concerns and why they don’t want to sell. It could be a tax reason or a tenancy reason or ‘I don’t know where to go.’”

Sometimes there’s nothing she can do to convince them. “I may just drop the deal,” she said.

Sometimes she’ll have to literally work around the problem. Yu was trying to assemble 10 properties near King Edward station, but one homeowner was absent. “Nobody ever found them,” said Yu. “Even the neighbours tried to go in to see if something was wrong inside. They even tried to make a block watch to see if anybody ever went inside but nobody came.” So Yu ignored that house and assembled the remaining properties separately. “So you may see this block with new townhomes with maybe the old house there.”

It’s not the only time Yu’s had to assemble the properties of interested homeowners and ignore the others. “Once I decided to cut a parcel of land to sell to one developer,” said Yu. “But then, the rest of the neighbours decided, ‘Oh, this is really serious business now!’ And they wanted to sell.”

Sometimes it’s not too late to add properties to a set; it depends on who the buyer is, said Yu. If it’s a developer who’s already submitted an application to city hall, it might be too late. But if an investor is just holding a set, they’re usually happy to add to it.

The entire process of gathering neighbours and selling can take as long as two years per site.

 

Cashing in on condos

Yu is about to add a new dimension to her business: selling assembled condos.

A strata corporation (the collective of condo owners in a building) used to require the approval of 100 per cent of its residents before it could be sold, also known as a strata wind-up or liquidation. But new legislation in November 2015 brought that requirement of willing owners down to 80 per cent.

Strata corporations of old condo buildings that require expensive repair but are on hot land (like near transit) have begun to cash in. Like land assembly, it can be more profitable in some cases to sell as a set than to sell a condo unit individually.

“On a block I might have to touch 10 homeowners, but now I have to touch the whole building,” said Yu. That’s homeowners in the hundreds.

Yu’s also planning to expand her business to help market new developments. From residential sales to land assembly to condo marketing, she says her team will be a “one-stop shop.” Since she already has realtors standing by, she thought why not help developers presell?

 

Criticism, context and change

There are some urban design criticisms of land assembly policies, saying that it compels massive projects that make people feel small and alienated because they’re not often designed with the human scale in mind. Specifically, lacking visual complexity, lacking harmony with existing neighbourhood buildings and lacking the ability to provide an intimate pedestrian experience. It’s not that these critics hate density or development; they just want it to be introduced with thoughtful, contextual design.

“Some people [who] have lived in Vancouver for so many years might not be used to the change, but there’s a need,” said Yu. “That’s why the city’s spending so much energy and time… trying to make high-density in certain areas or making use of the SkyTrain. Personally, I like a city with more energy.”

Glacier Community Media © Copyright ® 2013 – 2018

Government Announces Immediate Changes to Property Transfer Tax

Tuesday, February 20th, 2018

other

Budget 2018 announced changes to Property Transfer Tax that come into effect on February 21, 2018, including:

  • Property transfer tax rate on the value of residential properties above $3 million increased.
  • Additional property transfer tax rate increased and area expanded.
  • The Property Transfer Tax Act is amended to enhance administration and information sharing.
  • The limitation period for property transfer tax assessments is extended to six years.
  • Additional information is collected on property transfer tax returns, including tax identification numbers for individuals using bare trusts.
  • An administrative monetary penalty for non-compliance is introduced.
  • The general anti-avoidance rule is extended to the entire Act.
  • Access to additional information on property transactions, including information in a multiple listing service database, is enabled.

You can find information about these changes at gov.bc.ca/propertytransfertax.

The Council recommends that licensees advise both their buyer clients and their seller clients to seek independent professional advice to determine if their trade in real estate will be subject to the Additional Property Transfer Tax, and any potential impact that may have.

New Property Transfer Tax Return 

As a result of changes announced in Budget 2018, Version 30 of the Property Transfer Tax (PTT) Return must be used as of February 21, 2018. The return is now available for download from the Land Title and Survey Authority of BC website. On February 21, 2018, it can also be downloaded through the Electronic Filing System (EFS) in the myLTSA portal.

Government Needs Transitional Rules for All Transactions Impacted By Taxes Introduced in Budget 2018

Tuesday, February 20th, 2018

BCREA

The British Columbia Real Estate Association (BCREA) calls on the government to introduce transitional rules for all transactions impacted by the new tax measures introduced in Budget 2018. The new tax measures come into effect on February 21, 2018. The Property Transfer Tax (PTT) increase to 5 per cent for properties over $3 million, as well as the increase to 20 per cent and expansion of the Foreign Buyer’s Tax to other parts of the province will have an immediate impact on transactions underway.

When the Foreign Buyer’s Tax was introduced in 2016, consumers and REALTORS® were frustrated by the number of collapsed deals due to how the tax was introduced. At the time, the Association called for grandfathering of transactions underway to ensure a smooth transition. While the province has indicated transitional rules for the expansion of the Foreign Buyer’s Tax to other parts of BC, the Association believes this should apply to all transactions.

Of additional concern, the “speculation” tax introduced in the budget will affect British Columbians who own or want to invest in those markets by buying a second home or recreational property.

The Association welcomes measures in Budget 2018 to increase the supply of affordable housing in British Columbia. These initiatives are important steps in supporting those who need the most assistance to find and afford housing. However, the government missed the opportunity to help home buyers across the province by increasing the thresholds to the PTT or index those thresholds to reflect the changing real estate market.

The new tax measures introduced by the government to “stabilize the housing market” are unlikely to achieve the intended objective. The taxes ignore the major culprit – matching housing supply and demand within a reasonable timeframe. Additional taxes, whether targeted at foreign buyers or speculators, do not reduce the gap between when a housing project starts, and when it is available to purchase.

Copyright ©2018 BCREA

Hillcrest at Sullivan Ridge 29 single family homes of five to six bedrooms by Marathon Homes

Saturday, February 17th, 2018

Living large at Hillcrest at Sullivan Ridge

Simon Briault
The Vancouver Sun

Hillcrest at Sullivan Ridge

Project location: 6119 146 Street, Surrey

Project size: 29 single-family homes with five or six bedrooms, ranging in size from 3,119 to 4,100 square feet, with prices starting at $1,249,900 including GST

Developer: Marathon Homes

Architect: Tyan Design

Interior designer: Creative Design Works

Sales centre: 6119 146 Street, Surrey

Telephone: 778 -565-7768

Website: hillcrestbymarathon.ca

There’s something about a newly built home. Everything is shiny and untarnished, the stylings are modern, the appliances are efficient and – if you’ve picked a good homebuilder – the construction is solid.

For Dean Scott, who with his wife has bought a home at Hillcrest at Sullivan Ridge, it’s that new-home feel he’s most looking forward to when they take possession in March.

Hillcrest is the third and final development by Marathon Homes in the Sullivan area of Surrey, collectively known as Sullivan Ridge. With a total of 29 homes ranging in size from 3,119 to 4,100 square feet, Hillcrest features architecture by Tyan Design and interiors by Creative Design Works.

“We’re selling a home in Richmond and the biggest thing for us is the fact that we’ll be moving into a new house from an older one where we raised our kids,” Scott said. “The finishing work in the home is tremendous. My father-in-law has been in the design business his whole life and he spent two hours in the show home and said we’d be hard pressed to find better construction and finishes anywhere else. It’s going to be great to have air conditioning in the summer too.”

“I’m also really looking forward to our new kitchen,” Scott added. “The layout of it is perfect, the quartz countertops are beautiful and there’s a gas stove. I do the cooking in our household and I love it. It’s a hobby for me.”

Jas Gill, Marathon Homes’ managing director, said that the company has tweaked the floor plans and updated the design for this latest collection of five- and six-bedroom single-family homes, most of which will have views of the North Shore mountains.

“One thing to note about Hillcrest is that the style is more contemporary and we’ve also updated all the finishes along the way,” Gill said. “The nice thing about this last phase is that I feel like the homes have a much better indoor-outdoor flow. You have a covered deck area, which wasn’t necessarily available in previous renditions and the garages are also larger in these homes. We’ve always offered functional plans, but I think now they’re not only functional, they’re really efficient as well.”

The homes come with completed basements with all the rough-ins included and there’s an option to turn them into suites, an option Scott intends to go for. All homes feature “family-sized” laundry rooms with side-by-side Whirlpool washers and dryers, natural gas fireplaces with stone surrounds, nine-foot-high ceilings in main living areas, designer lighting fixtures and custom chandeliers in the cathedral staircases.

Kitchens feature walk-in pantries, ceiling-height Shaker cabinetry with glass displays, chrome hardware on soft‑close doors and drawers, plus under-cabinet task lighting. There are polished quartz countertops as well as ceramic tile backsplashes. The stainless-steel appliance packages are by Whirlpool and kitchens also include built-in waste disposal units, single‑lever Delta faucets and pullout vegetable sprays with flex lines.

As for the bathrooms, they include large-format ceramic tile flooring, contemporary faucets and vanity mirrors. The master ensuites come with oversized walk-in glass showers, his-and-hers vessel sinks and quartz countertops. Main bathrooms have soaker tubs with ceramic tile surrounds and glass accents.

In addition to enjoying the fineries of his new luxury home, Scott says he’s looking forward to getting to know the area better.

“My wife knows Surrey better than I do, but once I did drive around the neighbourhood a bit I began to appreciate how many things were nearby,” Scott said. “There are a lot of restaurants and banks and grocery stores and pretty much everything you need. There’s also plenty of parks around there and we’ll be a little closer to the border and to White Rock, which is an area we like very much.”

A map of the area around Hillcrest at Sullivan Ridge is jam-packed with amenities. It includes no fewer than six parks and two golf courses, as well as a listing of 33 dining and shopping outlets, 12 educational institutions and nine leisure facilities.

Gill said that Marathon Homes has had a wide variety of buyers visiting the Hillcrest at Sullivan Ridge show home and several homes have already been sold. Homes are priced from $1,249,900 including GST and the show home at 6119 146 Street is open from noon until 5 p.m. every day but Friday.

“Our buyer pool has been younger families for the most part,” Gill added. “We’ve had a nice mix of families from either the Surrey area or Richmond that are moving up from townhouses or coming out of older homes in search of something more modern.”

For Dean Scott, the best bit about moving in will be that new-home feel.

“The overall esthetics of the place are incredible,” he said. “I find it quite beautiful.”

© 2018 Postmedia Network Inc.

Sharp fall for Canadian home sales says CREA

Friday, February 16th, 2018

Steve Randall
REP

The number of homes sold nationwide in January was down sharply from the previous month.

New figures from the Canadian Real Estate Association show a 14.5% decline month-over-month (39,609) from December’s record high monthly record (46,352). There was a 2.4% drop year-over-year in actual (not seasonal) activity.

“The piling on of yet more mortgage rule changes that took effect starting New Year’s Day has created homebuyer uncertainty and confusion,” said CREA President Andrew Peck. “At the same time, the changes do nothing to address government concerns about home prices that stem from an ongoing supply shortage in major markets like Vancouver and Toronto. Unless these supply shortages are addressed, concerns will persist.”

There was also a sharp drop in new listings in January, down 21.6% from December to the lowest level since spring 2009. New listings declined in 85% of markets.

The Aggregate Composite MLS HPI rose by 7.7% y-o-y in January, the 9th consecutive deceleration in y-o-y gains. It was also the smallest y-o-y increase since December 2015.

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