RSS

FLIPPING TAX, B.C. announces tax on homes sold 2 years or less after purchase

Tax rate will be 20% for properties sold within a year of purchase, sliding to zero over following year


The B.C. government has announced plans to introduce a tax of up to 20 per cent on profits made when properties are sold within two years of their purchase.

The 20 per cent rate will be in place for a year after purchase and will slide to zero between 366 and 730 days after the acquisition.

B.C. Finance Minister Katrine Conroy announced the tax as one of the province's latest tools to try to curb speculation over housing in a province where many struggle to afford appropriate shelter.

"Prices went up as governments stepped back and speculators moved in," said Conroy during her speech presenting her latest budget in the legislature.

"That's why we're bringing in a home-flipping tax as our latest measure to crack down on bad actors."  CLICK HERE TO FIND OUT MORE


Read

New BC Property Transfer Tax Exemptions Announced April 1 2024

New Property Transfer Tax exemptions for first-time buyers and new homes in BC

More specifically, as part of the 2024 provincial budget, three exemption changes are being introduced to the PTT.

Firstly, the threshold to be eligible for the first-time homebuyers’ exemption will be increased from a fair market value of $500,000 to $835,000, with the first $500,000 exempt from the tax. The phase-out range for the complete elimination of the exemption will be $860,000, while properties with a fair market value under $500,000 will be completely exempt. These changes will start on April 1, 2024.

Secondly, the newly built home exemption for purchasers who buy a new home for their principal residence will grow from $750,000 to $1.1 million on the fair market value. Homes with a fair market value between $1.1 million and $1.15 million will see a phase-out range of the exemption. This exemption change will also start on April 1, 2024.

Thirdly, a brand-new PTT exemption will be created for purchases of new qualifying secured purpose-built rental housing buildings, with such buildings required to contain at least four apartment units, be non-stratified, and be used as rentals for at least 10 years, and the residential uses of the building must be entirely used for rental purposes. This specific PTT exemption will apply to transactions for such buildings between January 1, 2025, and December 30, 2030. With home ownership out of reach for many given the elevated home prices, such a policy will help catalyze more “missing middle” rental housing.  Click here to read more

Read

Court Ordered Sales Vancouver British Columbia, What you need to know

COURT ORDERED SALES

This introduction on foreclosure properties in BC will give you some insight into the process of buying a property by way of a Court Ordered Sale, including some of the risks involved. We realize that this is not a “how to” for Court ordered sales; rather, it is an overview of the various components of the process.

WHAT IS A FORECLOSURE PROPERTY?

When a property owner is unable (or unwilling) to repay a mortgage on a property, a lender can apply to the BC Supreme Court for the right to sell that property and recover its investment. Through the foreclosure process the lender can apply for and receive “Conduct of Sale” that will give it control of the sale process and allow it to list the property for sale with a Realtor, market the property and solicit offers. The process is very specifically regulated by the Court, and any ultimate agreement to sell the property must be approved by the Court. These sales are referred to as foreclosures, or Court Ordered Sales.

THE SALE PRICE

As with most other property offerings the terms and conditions of a Contract of Purchase and Sale, including the ultimate sale price, is usually negotiated between the Vendor (lender) and a Purchaser. Having said this, the Lender still has an obligation to be able to show the Court that any sale is based on fair market value and that the property has been adequately and broadly marketed.

Once the Vendor and Purchaser agree to the terms and conditions of a purchaser agreement on a foreclosed property, the sale process is far from being done.

SUBJECT CONDITIONS

An accepted offer on a property, subject to a Court Ordered sale process, can include purchaser’s subject conditions such as due diligence, appraisal, inspection, financing, etc. These sorts of conditions are typical in most real estate transactions and are always recommended so that a purchaser can make an informed decision. A deal, though, also needs to be subject to approval by the Court. The Court approval condition is a third party condition that can only be set in motion once the purchaser’s conditions have been fully satisfied and waived.

Once the contract is non-conditional on the Purchaser’s part, an application can be made for Court approval. A hearing date is set and the parties prepare for approval.

"AS IS WHERE IS"

It is important to note that properties subject to foreclosure and the Court ordered sale process are sold “as is, where is”. Since the vendor is the lender of the property (and not, in fact, the property owner), it cannot be expected to be knowledgeable about the property to the extent that it can make various disclosures, representations or warranties as to the state and condition of that property. In other words, as a prospective purchaser, it’s a very good idea to retain the appropriate experts to undertake due diligence for things such as zoning and development potential, building condition, financing, environmental condition and other relevant inspections. Once the sale is non-conditional (and assuming it is approved by the Court), there is no turning back.

APPLICATION

Once there is a non-conditional agreement between the lender and the purchaser (subject only to Court approval), the solicitor for the lender will schedule a hearing date for the application to be heard by the Court. Applications are typically accompanied by affidavits or reports from the lender, Receiver (where applicable), the Realtor and other parties familiar with the file, that would outline the history of the file, the outstanding balance of the loan, any efforts to collect outstanding balances and marketing efforts that will have been undertaken in order to sell the property for the highest possible price. Depending on the nature of the asset these reports can also include an appraisal and other supporting documentation. The objective of this information is to ensure that the Court is supplied with sufficient background so as to satisfy itself that the proposed sale is, indeed, indicative of fair market value; having been marketed in a comprehensive and generally acceptable fashion. A hearing is typically within 14 days of the application being made to the Court.

PUBLIC DISCLOSURE

An interesting (and sometimes exciting) aspect of the Court approval process in British Columbia is that all of that information supplied to the Court as part of the application process to the Court is available for public scrutiny. The agreed upon sale price will be made public in order to ensure a fair and transparent approval process. Others who have expressed interest in the property will typically have the ability to attend the hearing and observe the proceedings, and even submit competing offers. This means that, unlike the conventional property purchase process, the prospective purchaser with the accepted offer on the property is not necessarily the party who will walk away as the new owner. The hook is though, that any new offers being presented to the Court at the hearing must also be non-conditional and be accompanied by a non-refundable (pending Court approval) bank draft or certified cheque.

THE COURT PROCESS

On the determined Court date, representatives for the vendor and the purchaser (with the now subject-free contract) will attend court, along with any other interested parties or prospective buyers who wish to submit an offer on the property to the Court. In some cases, no new buyers will present themselves in court. In other cases, we have seen multiple offer scenarios develop before our eyes.

If other parties do show up, they will typically be required to submit an offer in a sealed envelope for consideration by the Court. The new offer will obviously need to be higher than the agreed upon sale price between the seller and the original buyer. While this scenario might appear to provide an unfair advantage to the newcomer, it is worth noting that the Court will always allow the original purchaser to revise its offer, if desired.

REVIEWING ALL OFFERS

The Court will consider all of the information before it in making a decision on the approval of an offer. If there are multiple offers the Master (Judge), will then open the offers and will review them… and typically, choose the highest bid. It is important to note that the highest offer on paper might not always be the best offer as the Court will also often take into consideration the amount and status of the deposit, the proposed completion date and other factors that might impact the transaction.

Occasionally, the judge might decide that none of the offers are worthy of approval. This might be the case if, for example, the underlying owner is able to convince the Court that the offer(s) is in fact, below market value or if the Court determines that the property has not been sufficiently exposed to the market.

APPROVAL PROCESS

When the deal is approved, the Court will issue what is known as a “Vesting Order”. The order is the approval by the Court and it provided instruction to the Registrar to effect the transfer of the title of the property to the successful bidder. The Vesting Order also serves to extinguish any and all financial encumbrances that could limit the new owner’s rights under the title. The Vesting Order will not extinguish encumbrances such as access easements, reservations of the Crown, restrictive covenants or other non-financial registrations on the title.

Read

I have sold a property at 1038 MATHERS AVE in WEST VANC

I have sold a property at 1038 MATHERS AVE in WEST VANC on Jan 28, 2024. See details here

Beautiful Well Maintained & Renovated 4 bedroom 2 bathroom 1900 sqft 2 level Bungalow. Nestled on a 6100 sqft private south facing lot with lane access & peek a boo Ocean Views from the Deck/Master Bedrm. Located in the desirable family neighbourhood of Ambleside/Sentinel Hill in West Vancouver. The Upper Floor has 2 updated bedrms, a gourmet kitchen, eating area, living & dining room that opens to your New 500 sqft SUN DRENCHED DECK. Hardwood flrs, skylights & 2 fireplaces. Lower level has 2 Bedrms, New 4 pc bathrm, Living Rm, New laundry, Hot Water Tank & Suite potential. Fenced back yard, 500 sqft covered patio, greenhouse, carport, mature gardens, Rhododendrons with Blue Jays, Squirrels & Hummingbirds. Storage & separate entrance. TOP Elementary & High Schools, both walking distance. Transit 1/2 blck. Restaurants, Park Royal, Golf, Fishing & Beaches down the hill. Ferries, Downtown & Skiing mins away. RS5 Zoned for Coach House. Move in Ready & Below Assessed Value

Read

I have sold a property at 402 1477 PENDER ST W in VANCOUVER

I have sold a property at 402 1477 PENDER ST W in VANCOUVER on Jan 23, 2024. See details here

890 SQFT MOVE IN READY Pristine Condition Modern 1 Bedroom & Den (can be sm kids bedrm or reception area), 1 bathroom LIVE WORK ZONED Luxury Condo at West Pender Place. TRUE Modernist Architecture. You will be inspired daily to manifest your life as you Jog or Walk the Coal Harbour & Stanley Park Seawall (1/2 block to the waterfront). Floor to ceiling high efficiency windows, Lge expansive open plan living, over height ceilings. Updated hardwood flooring, A/C, custom sliding doors, In Suite Laundry. Gourmet LUXE kitchen with Miele & Gaggenau appliances, Sub-Zero fridge, Spa inspired marble bathroom. Largest floor plan in the building & DOUBLE window space. Why Pay High Rent for your Business? 5 Star Amenities 24 hr concierge, pool, gym, sauna. View from the shared rooftop terrace & BBQ Patio Area, guest suite & party room. 1 parking, 1 X-L Private Locker. Restaurants, Shops, transit, Whole Foods, Cafes, Entertainment close by.

Read
Categories:   Alta Vista, Whistler Real Estate | Altamont, West Vancouver Real Estate | Bayridge, West Vancouver Real Estate | Brentwood Park, Burnaby North Real Estate | British Properties, West Vancouver Real Estate | Cambie, Vancouver West Real Estate | Capitol Hill BN, Burnaby North Real Estate | Cariboo, Burnaby North Real Estate | Caulfeild, West Vancouver Real Estate | Chineside, Coquitlam Real Estate | Cliff Drive, Tsawwassen Real Estate | Coal Harbour, Vancouver West Real Estate | Cypress Park Estates, West Vancouver Real Estate | Downtown NW, New Westminster Real Estate | Downtown VW, Vancouver West Real Estate | Dundarave, West Vancouver Real Estate | Eagle Harbour, West Vancouver Real Estate | East Cambie, Richmond Real Estate | False Creek, Vancouver West Real Estate | Gambier Island, Sunshine Coast Real Estate | Gibsons & Area, Sunshine Coast Real Estate | Halfmn Bay Secret Cv Redroofs, Sunshine Coast Real Estate | Hastings Sunrise, Vancouver East Real Estate | Howe Sound, West Vancouver Real Estate | Kerrisdale, Vancouver West Real Estate | Kitsilano, Vancouver West Real Estate | MacKenzie Heights, Vancouver West Real Estate | Northlands, North Vancouver Real Estate | Northyards, Squamish Real Estate | Panorama Village, West Vancouver Real Estate | Roche Point, North Vancouver Real Estate | Sandy Cove, West Vancouver Real Estate | Sea Island, Richmond Real Estate | Sentinel Hill, West Vancouver Real Estate | Strathcona, Vancouver East Real Estate | Tabor Lake, PG Rural East (Zone 80) Real Estate | Upper Lonsdale, North Vancouver Real Estate | West End VW, Vancouver West Real Estate | West Vancouver Real Estate | Whistler Village, Whistler Real Estate | Yaletown, Vancouver West Real Estate
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.