With the recent news from Global TV and TD Canada Trust that the number of home sales and fallen off by more than double what was predicted, many people were wondering how it could have happened so fast and what were the factors that contributed to such a quick cool off. I dug into the stats and found some very interesting numbers and information. The prices of homes are not dropping nearly as fast as the amount of sales, not even close.
Low inventory across the board is the likely reason for this.
The main contributing factors to the recent and very steep decline are as follows:
- Mortgage Stress Test
- Speculation Tax
- Vacancy Tax
- Foreign Buyer’s Tax
- Property Purchase Transfer Tax Increase
- Interest Rate Increase
Having been a licensed realtor for the past 20 years I get asked a lot of tough questions. Sometimes I know the answers and sometimes I need to defer to the local lawyers for their expertise. One such question was asked today. In a strata building where there are no rentals allowed can a buyer purchase a unit in the company name and rent the unit to a family member? In this situation the buyer was the only person on the board of the numbered company and they want to rent to their son.
My first thought was that of course they should be able to rent the Abbotsford condo to their son as they are the only party to the numbered company. However, once I discussed with a few lawyers in town, it was determined that because the bylaws clearly state the it has to be the son, daughter, husband, wife etc. of the owner on title and the numbered company does not have any relations so the unit could not be rented to the family of the owner of the numbered company.
There are a few ways to work around this. The buyer could put the family member on title for 1/1000 of a share or they could put themselves on title for the same amount. The benefit to this is it allows the owner to reduce their property tax because of the home owners grant. Thanks to Mike Burke of Rosborough and Company and Wayne Neufeld of Valley Law Group for their assistance in this matter.
I just listed 7532 Walters St in Abbotsford BC. Here are the details: Very rare and nearly 20 acre parcel (19.11) fronting the Fraser River. 3 separate parcels means you could build 3 residences. 2 homes currently. Build your DREAM HOME with NO NEIGHBOURS. Great fishing nearby. Land is flat and fertile. Property is on Saindpoint water system. Beautiful views of the surrounding mountains. Properties to the East and West are owned by the GVRD and farmed with no houses. Perfect for cattle and horses. Private and peaceful. Bring your ideas
Home ownership isn’t just a Canadian fad, it’s important to families around the globe.
No matter who says what about the economy, home ownership is about lifestyle plus investment. You can’t live in a stock portfolio, and rent payments don’t offer a return on investment.
Home Ownership by Province
Newfoundland and Labrador…..77.5%
Prince Edward Island……73.4%
*source Statistics Canada, census of population 2011. excluding territories. (Sorry Territories)