Increases to your Property Assessment - a rousing topic every January, and this year, not really a surprise that 2017 Assessments are considerably higher than they were in 2016.   If you haven't yet received your 2017 Property Assessment, you will shortly.  Whether buying, selling, or just home-owning, here are 5 important things to know:

(1) Property Assessments do NOT necessarily equal market value

(2) Just because your Assessment went up, doesn’t mean your TAXES will increase.  And, if your taxes increase, it’s not just because your property assessment increased!

(3) BC Assessment uses a mass appraisal system, which calculates property value by evaluating prices for homes sold in each neighborhood and then applies the information to arrive at an assessed value.  This information is typically obtained from MLS sales, NOT by visiting the properties in question.  BC Assessment has approximately 650 full-time staff positions in 17 offices throughout the province.  They can’t possibly visit every residence.

(4) The most important factor is the TIME at which a property is assessed.  A 2017 assessment notice is BCA’s estimate of a property’s market value as of July 1, 2016, which is 6 month’s prior to you receiving your assessment.  (and the reason why a REALTOR®’s market value can be different – as it reflects the current state of the market).

(5) BCA’s Market value assessment is for tax purposes only.  It is widely considered to be the fairest system for distributing the property tax burden.  As the real estate market can change very quickly, depending on an historical assessment (July assessment for next year’s tax purposes) to be an accurate indicator of market value can be erroneous.

Bonus #1-

Here are the median price increases in North Vancouver :

                   July 2015 - July 2016                         Dec 2015 – Dec 2016

                   (Assessment period)                          (Year over year data)

Detached              22% ↑                                                  7% ↑

Attached              25% ↑                                                   6% ↑

Apartments         19% ↑                                                 26%  ↑

Bonus #2 –

Here is a service that you may find helpful – available each New Year until March, where you can view details on a single property, compare neighbouring properties, and compare sales information. http://evaluebc.bcassessment.ca/

Effective on transactions entered into on October 1, 2016, or later, this tax is modeled closely on the provincial “Property Transfer Tax Act”.  The PTT Law adopts the provincial rate of 1% on the first $200,000 of fair market value (purchase price), 2% of the fair market value that exceeds $200,000, but does not exceed $2Million, and 3% of the remaining fair market value.

The PTT Law adopts the same exemptions as are offered off-reserve, including exemptions for first time home buyers, and the recently added exemption on new construction (purchases under $750,000 are exempt).

It is important to note that there are transitional rules in place.  For example, for those of you who purchased in the Spring at “Seymour Village” above Ravenwoods – which completes in 2017:  There is no PTT on new residential property (a “pre-sale”) where the pre-sale agreement was entered into within one year of the PTT Law coming into force and where the home is finished and the sale completes within two years of the PTT Law coming into force.  There is also no PTT on the sale of a residential property where the agreement of sale was executed before the PTT Law came into force and the sale completes within six months of the PTT Law coming into force.

Read the full overview HERE.

Questions ?  Call us - we are here to help!

With September almost to a close, there may be some rainy days ahead - and here is a project for "one of those rainy days" !

Warranties, Manuals and Receipts

These documents provide you with a proof of purchase date and determine service and parts guaranteed. In addition, the manuals usually provide care information so you can help ensure your household appliances are being properly maintained. You should keep your warranties, manuals and receipts for these items for as long as you own the appliances.

Home Inventory

If you were ever to lose any of your possessions due to fire, burglary, or vandalism, having a home inventory can help you avoid a lot of heartache and make it easier when filing an insurance claim.

Start with a sheet a paper for each room in the house. Go around the room and list every item. Don’t forget the attic, basement or other storage places. For each item, write the original cost, purchase date, replacement cost, model number, brand name, where purchased, and a general description.  Pop these into an Excel spreadsheet  or use Google Spreadsheets (it's free!) so that you have an electronic copy.

Besides a written inventory, take photos or video of each room for visual documentation. It is also a good idea to arrange valuable collections, silver, jewelry, etc. and take close up photos.

Keep a copy in your home & electronic files (and perhaps one at the office, too!) and the originals in a fireproof safe or safe deposit box. Make sure you update your home inventory photos and list at least once a year.

Organizing your home files may take a considerable amount of time initially, but it will definitely be time well spent in the event you need the documents later on.

Home buyer competition is intense in today’s housing market, and multiple-offer situations have become commonplace.

These trends have everyone wondering who is buying homes in Metro Vancouver today?1 Are millenials being priced out? Are retirees downsizing? Are investors driving the market?

To shed some light on these questions, the Real Estate Board sends a home buyer demographic survey each month to members who represented a buyer in a sale over the previous 30-day period.

Between 150 and 200 REALTORS® regularly complete the survey. Analysis is based on an average of the last 12 months of responses.

“This feedback, while not scientific, gives us a deeper understanding of the trends in the marketplace,” says Dan Morrison, Board president. “We’ve conducted this poll over several years and some consistent themes have emerged.”

Home buyer trends (2015 - 2016 averages)

Since 2015, first-time home buyers have, on average, accounted for 32 per cent of Metro Vancouver home sales, according to the survey, and 21 per cent of home buyers are people moving from one property to another similar property in the region.

Speculation of real estate investor activity is much discussed in social and traditional media today. Our survey finds that nearly one in five homes sold to real estate investors last year, with domestic investors (15 per cent) making up the largest portion of these purchases. Foreign investors make up less than five per cent of all property sales in the region.

Home buyer demographic

Young families with children are active in today’s market. This group accounts for 34 per cent of all activity, and young couples with no children make up 18.5 per cent of all activity.

Retirees (eight per cent) and empty nesters (seven per cent) both represented less than 10 per cent of Metro Vancouver home sales according to the survey.

Home buyer residency

The clear majority of buyers, around 82 per cent, are already living in Metro Vancouver when they make their purchase. The next largest group of buyers migrate from other areas in BC and Canada. Roughly eight per cent of home buyers come from outside Canada, according to the survey.

Financing trends

On average, just over 60 per cent of buyers pay for their homes using traditional mortgages with at least a 25 per cent down payment. Cash purchases and high ratio mortgages make up the remaining 40 per cent in nearly equal proportions.

“While the volume of home sales has increased in recent months, the characteristics of people buying in our market remains relatively constant according to this monthly research,” Morrison says.

Footnotes

1. Areas covered by the REBGV include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, Pitt Meadows, Maple Ridge, and South Delta. 
2. Data collected from REBGV Market Survey, March 2015 - February 2016
3. Article courtesy of the Real Estate Board of Greater Vancouver

Spring is a season of renewal. Birds are singing and the flowers are beginning to burst into bloom. The days are getting longer and people are getting outdoors again. So not surprisingly, real estate activity begins to swing into high gear. The weather is more cooperative and families are looking to move during the summer break.

If you are considering putting your home on the market, now's a good time to do some spring maintenance to make sure your home is in tip-top shape.  Even if you aren't planning to sell your home, you should still add these tasks to your list to help preserve your home's value and help avoid major repairs later on.

Walk Around the Outside

Check for any damage caused by winter's cold weather. Look for those sagging or loose gutters, window frames or siding. Is your roof missing any shingles, or is there any water damage under the eaves? Promptly schedule repairs for those items you can't do yourself.

Over the fall and winter, leaves, mud and debris may have accumulated in your gutters. Check your gutters for clogging and damage and schedule an appointment for cleaning.

Walk around your yard as if you were a first-time visitor. What impression does your home make? Be sure to clear away fallen branches and leaves. Loosen the soil around perennials, plant annuals or a vegetable garden. Prune shrubs and trees.

If your water supply has been off for the winter, turn it back on. Test your automatic sprinkler system or connect your water hose and check for cracks and leaks. Replace old washers or sprinkler heads.

Don't forget the backyard! Is it time to condition your deck? Be sure to hammer in any loose nails, or replace them with galvanized deck screws. Replace any broken boards or rails. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain. Then dust off that patio furniture you kept protected over the winter.

Repair any broken fence boards and paint or seal them as needed. Clean the pool if it has been covered all winter. Wash windows, screens and windowsills; repair any winter damage.          

Take A Tour Inside

Start making a list of things to do in each room. Then dive in. Dust walls and ceilings to remove cobwebs and wash any grimy areas. Wash window curtains or remove drapes for dry cleaning. Deep clean rugs and carpets. Dust and polish wood or laminate floors.

Clean fan blades using mild soapy water. Check the A/C or Heat Pump  unit for debris and obstructions; vacuum the main condenser coil on top of the unit. Check the operating condition of the furnace; remove and change filters.

Make sure all exhaust fans and vents are clean and clear. Don't forget to remove the lint buildup from the clothes dryer vent.

One often-overlooked area is the fireplace. Be sure to sweep ashes carefully into your fireplace's ash pit or into a dustpan.

Look around for clutter.  Are there items you don't use any longer? If you are planning on moving, what items will you not need? Consider having a garage sale and then either donate or trash the remaining items.

And lastly, don't forget to replace batteries in smoke and carbon monoxide detectors.  Did you change them when you changed your clock for daylight savings time ? If not, change them now !

Although performing these spring chores may not be something you really want to do, they go a long way in maintaining and even enhancing the attractiveness, quality and VALUE of your home.  Happy Spring!

We, like most North Vancouverites, consider our pets “family”.  And fortunately in our fair city – many buildings permit pets.  Frankly, we are such a pet-friendly city that it can be detrimental to your Apartment or Townhome’s market value should pets not be allowed!  That no-pets-no-rentals-no-BBQ’s rule really reads, “No fun here” !  While most of the time ‘pets’ means dogs or cats, most buildings allow fish & birds, but not snakes or reptiles …

Here are 5 buildings that welcome your four legged friends, and have other benefits, too:

One Park Lane (170 West 1^st Street)

One of the most elegant and best-selling concrete buildings in Lower Lonsdale – in fact won a 2005 Georgie Award for “Best Residential Building in BC”.  Lucky 13 floors, and 117 apartments & townhomes.   Has a swanky foyer, Conceirge, Gym, Lounge, Theatre, Video Security, secure resident & guest parking, bike lockers.  Adjacent to Jack Loucks Park (where, funny enough, dogs are prohibited??!)

Small dogs and/or cats to a maximum of two (2) with a weight restriction.

Vista East & Vista West at Hamersley Park (333-365 East 1^st Street)

A collection of 140 apartments, built in 2 phases; in Craftsman Tudor style, AND with rain screen exterior by reputable and still-in-business, Ledingham McAllister.  This is a super quiet location, and indeed across from Hamersley Park, and just steps to the waterfront & cool places like historic Hamersley House, Finch & Barley, and the Juicery.  Two pets permitted here, too – dogs, cats or one of each.  No weight restriction.

The “Q” – 124 West 1^st Street

Popular & very well kept concrete building, built in 2001 when a one bedroom, 610 sq ft home here cost between $129,900 & $155,900 – and a 2B 2B suite of almost 900 sq ft set you back $200 - $250K.   73 really great suites here, no rentals permitted, but up to three pets.  Many of these homes have spectacular views, large patios / terraces and spacious floor plans.  Steps to Buddha-full Juice Bar & eatery, Waves coffee, Obsession Bikes, and some really great Pizza.

“Burham Court” – 222 East 5^th Street

One of Noort Developments’ very first projects in North Vancouver (1998).  19 beautiful townhomes, measuring about 1500 sq ft each.  This complex is a shining example of good maintenance, and has always sold well.   Most recent sale was $891,000 in Dec ‘15.  Lovely generous floor plans, good outdoor space, well landscaped, well built, and this part of 5^th Street is really pretty.  “Standard” Bylaws apply here in regard to pets, so that is 1 cat or 1 dog.  A great favorite of ours; ticks all the boxes, but people move in & stay – so very few come up for sale.

15 West – 150 West 15^th Street

OK, so technically “Central” Lonsdale, but WOW – so good we couldn’t resist.  A Citimark / Grosvenor project.  Gorgeous views from many suites in this all concrete building.  18 stories, lots of glass, party room, gym, meeting room, tons of visitor parking (thank goodness – have you tried to park middle of Lonsdale these days ?), a beautiful lobby with soaring ceilings (so nice to come home to), some MASSIVE patios and HUGE storage lockers and private garages for the PH suites.  Delicious.  2 pets permitted in this very urban – super high quality building.  Take your pet one block North to Fur-Doos grooming!

The BC government introduced its 2016 budget February 16th, and there is some really good news here. The budget included a number of items intended to affect affordability and availability in the Lower Mainland’s housing market.  Here’s a summary:

Property Transfer Tax (PTT)

• a New Housing exemption will apply to newly built homes or newly subdivided units priced up to $750,000, saving buyers up to $13,000; and

• a partial exemption will apply on newly built homes priced $750,000 to $800,000.

• a new 3% PTT rate will apply to the portion of a home sale that exceeds $2 million. For homes that sell for below $2 million, the PTT will continue to apply at a rate of 1% on the first $200,000 and 2% on the balance. 

These changes will take effect on February 17, 2016. 

Data collection

Starting this summer, individuals and corporations buying property must disclose if they are Canadian citizens or permanent residents of Canada and if neither, their home country. These changes will provide information on the volume of foreign investment in BC. 

Home Owner Grant

The Home Owner Grant threshold will increase to $1.2 million from $1.1 million for the 2016 tax year.

Affordable housing

The province will invest $355 million to help the BC Housing Management Commission support more than 2,000 affordable housing units for residents with low-to-moderate incomes.  

Additional Government resources:

Read the Housing Affordability Backgrounder. Read the Budget Speech. (Opens 24-page pdf)