Majority of those who were penalized by BC’s speculation and vacancy tax in its first year were foreign home owners, according to the finance ministry.
Of the 12,029 taxpayers who remitted by July 2, as much as 4,485 were foreign nationals.This was followed by satellite families (3,241 individuals), BC residents (2,410), and non-BC Canadians (1,555).
The ministry’s final “other” category, which includes homes owned by corporations or trusts, had 238 taxpayers.
The ministry added that taxed residences were approximately 46% more expensive than exempted assets located in the taxable areas.
Overall, the levy had an estimated $115 million in revenue in just its first year, significantly outstripping the initial $87-million estimate cited in the 2019 provincial budget.
High assessment values in BC’s housing market, which had a larger-than-expected average of $1.62 million, were a major factor in this revenue.
Finance Minister Carole James hailed the tax as a major factor in improving rental supply, with empty properties being used as housing.
She assured that the collected funds will be used to address the long-running affordability crisis by improving housing access and supply.
“The speculation and vacancy tax was designed to
In an effort to ameliorate accommodations for migrant workers in Gulf Cooperation Council (GCC) states, a multinational company with Canadian roots is starting a fund to do just that.
Heirloom Holdings is launching Baytna to acquire labour accommodations in the GCC with a focus on mitigating the isolation migrant workers feel from familial separation and not speaking native tongues—not to mention cultural chasms that often exist—and enhancing communal ties.
According to Beth Hirshfeld, vice president of marketing and corporate development at Heirloom, there are an estimated 14.5 million migrant workers in the GCC and, despite existing regulations to augment their standards of living, countries like the United Arab Emirates endeavour to go a few steps further.She added that the Baytna—which means “our home” in Arabic—fund will purchase labour accommodations in UAE, Oman and Saudi Arabia to implement superior living standards.
The Baytna fund is composed of investment monies, with minimums of $1,000, and projects net annualized IRRs of 15-17% total returns, including annual dividend payments of 8-9% beginning approximately a year after capital draws.
“Heirloom will start by acquiring and enhancing labour accommodations in the UAE – both in Dubai and Abu Dhabi -
Condominium sales in the Greater Toronto Area have rebounded, according to an Urbanation report.
Surging 77% during the second quarter of 2019 over the period last year, there were 8,902 sales—the highest since Q2-2017 when there were 11,413 sales—and 10,848 presale units launched.As active as the market was in Q2, the same cannot be said for the first quarter of 2019, as total there were a total of 11,967 through the first two quarters of the year.It did, however, push the sales volume above the 10-year average of 11,205 units sold.
The average index price on sold units in projects that are active got a 10% year-over-year boost in the second quarter as it hit $797 per square foot, however, newly launched units averaged $903 per square foot, and remaining inventory hit $1,000 for a 9% year-over-year rise.
Unsold inventory grew 46% from last year to 14,587 units, but still 6% below the 10-year average and worth about 7.8 months of supply, which is up from 5.3 months during the second quarter of 2018.New condo sales were likely driven by record-low borrowing costs and record-high population gains, as well as a robust job market and
There are few things more Canadian than a weekend at the cottage, but given the leisure property’s appreciation potential, shielding it from capital gains taxes is imperative.
According to John Natale, head of tax, retirement and estate planning services at Manulife, a cottage could be taxed on its appreciation in the event of the owner’s death.If unplanned for, the estate could then be forced to sell it.
“Hopefully the cottage appreciates in value, but, unfortunately, that means 50% of that gain will be taxable just like any other capital gain,” said Natale.“To get around it, assuming you qualify—and most people would, because renting is only ancillary to the real purpose of enjoying the cottage—you could qualify under the principal residence exemption if you designate the cottage as a principal residence.”
If the capital gains tax is unavoidable, there are ways to mitigate the cost.Cottage owners should keep record of their cost bases, which are to be maximized much as possible, added Natale.For example, if a renovation is made—for example, adding a dock or building a deck—those upgrades increase the cost base, thereby reducing the capital gains.
Still, planning ahead is always advisable.Should the cottage’s
Amid a burgeoning economy, Prince Edward Island is seeing greater need for residential units geared towards low- and mid-income households.
This is especially because over the last three years, residential property prices in the Island’s capital of Charlottetown grew much faster compared to even the nation’s hottest markets, according to the Canadian Real Estate Association.
The city’s home price growth of 38.5% during that period considerably outpaced other high-volume cities like Victoria (33.3%), Toronto (25.3%), Montreal (17.7%), and Vancouver (10.93%).
PEI Real Estate Association Greg Lipton cited the provincial nominee program as a major contributor to the trend.
The steady arrival of immigrants looking for homes of their own has grossly inflamed demand.From 2010 to 2018, the PEI has seen the entry of over 12,000 immigrants.
“They came with a lot of money and they wanted something new, and we didn’t really have a lot of new stuff at that time,” Lipton told CBC News.“New construction is very expensive.We’re up to close to $200 per square foot nowadays to get anything built.”
Compounding the issue is that PEI’s immigrant retention rate is so far the worst in Canada.This has a significant knock-on
During Q2 2019, the province of Quebec saw its 20th straight quarter-over-quarter increase in residential sales activity.
Figures from the Quebec Professional Association of Real Estate Brokers indicated that the province saw 29,212 sales during the second quarter of the year, representing 8% annual growth.
This was the largest quarter-over-quarter growth since Q3 2005.
Condos had the largest gain with a 14% year-over-year upward surge, but with a total of just 7,253 sales across the province.
Plexes also posted a strong 13% increase (2,400 transactions), while single-family home activity went up by 6% (19,410 deals).
Quebec’s strongest markets during Q2 2019 were Trois-Rivières (19% increase), Saguenay (17%), and Quebec City (15%).
Montreal fared relatively poorly with an 8% annual sales growth, along with its worst condo sales volume in the last two years, Altus Group reported.
A significant contributor to the trend is consistent unit scarcity brought about by robust demand.Over the last few years, the city has experienced a steady, strong stream of visitors and immigrants.
“The new condo supply in the Greater Montreal Area was too small to accommodate growing demand” during the first quarter of the year,
The governments of Canada and Prince Edward Island have committed $11.9 million to finance the construction of a 60-unit affordable housing complex in the PEI capital of Charlottetown.
The complex, called Martha’s Place, will be situated at 2 Acadian Drive in Charlottetown and will also house part-time social services from the Sisters of St.Martha.
Read more:PEI starts at historically high levels
Fifty affordable units will be leased to the PEI Housing Corporation, who in turn, will lease the units to people on their wait list on a rent geared to income of 25%.The remaining 10 units will be rented to the general population at market rates.
"The city of Charlottetown is committed to working with all levels of government, stakeholders, community organizations, and private developers to create more affordable and accessible housing units in the capital city,” said Charlottetown mayor Philip Brown.“Martha Place will be a great addition to Charlottetown's housing stock and will help us move towards a more comfortable vacancy rate.Upon completion of construction, the new residents will have a safe and affordable place to live and raise a family."
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In tandem with an institutional partner, Kevric Real Estate Corporation yesterday closed its purchase of a major downtown Montreal office tower located at 600 de la Gauchetière W., and in doing so hopes to capitalize on the city’s low commercial vacancy rate.
“The relaunch of Montreal’s economy has been very much dominated by the tech sector, multimedia sector, special FX sector and AI, so those are all key areas for us,” said Kevric’s President Richard Hylands.“Those potential tenants are located in suburban locations and are heading back downtown because their millennial workforce doesn’t want to move into the suburbs.”
The 28-storey tower, which has 710,000 square feet of leasable space, currently houses Raymond Chabot Grant Thornton, Investissement Quebec and National Bank, but the latter will be vacating for another location.In the interim, Kevric has an institutional lender on board until 2023, by which point its refurbishments—a new lobby facing Square Victoria and external building work—are slated to conclude.
Downtown Montreal is already a hub for the aforementioned sectors, as Hylands noted that south of 600 de la Gauchetière W.is Multimedia City, owned by Allied REIT, where many of businesses in those industries are housed.Kevric also
In its latest comprehensive sector analysis, CBRE hailed four major Canadian cities as among North America’s 20 top tech industry destinations, a development that promises boosted activity for their commercial markets.
These were Ottawa (rank 19), Montreal (13), Vancouver (12), and Toronto (3).The metropolitan areas were evaluated in terms of supply and concentration of tech talent, market growth, quality of higher education, industry outlook, and several other factors.
Ottawa boasts of a steady stream of top-tier tech talent with its array of strong post-secondary schools.Moreover, it not only produces its tech gurus, but also readily attracts them with its highly developed infrastructure.To note, the tech sector is outstripped only by the federal government in terms of office space occupied in downtown Ottawa.
Meanwhile, Montreal is renowned for its world-class artificial intelligence research, which is strongly supported by its high-calibre universities, colleges, and tech incubators.
In recent years, major tech industry players like Amazon and Apple Inc.have been moving to Vancouver in earnest, establishing major facilities that have fed into intensified demand for the city’s offices and industrial space.
Finally, Toronto itself was surpassed only by Seattle and the San Francisco Bay Area in
While a stronger national economy continues to bring greater purchasing power, Canadians continue to worry about housing and its associated costs, according to a poll commissioned for CBC News.
The survey found that during the second quarter of the year, fears about housing and living costs abound, with 32% of young Canadians admitting these as their major sources of concern.
These far overshadowed other important topics, including climate change (19%), health of self/family members (10%), and immigration (8%).
Such anxieties have defined many youngsters’ mental landscapes and fiscal plans to the point to seeking help:A Leger poll commissioned by FP Canada found that the “Bank of Mom and Dad” is helping not just with home purchases, but also with rental bills.
The analysis found that 24% of Canadians with adult children financially assisted their children in becoming first-time home buyers.Nearly half (48%) indicated that they plan on helping with home purchases once their underage children grow up.
Meanwhile, as much as 35% of Canadians helped pay for their adult offspring’s rent costs.More than one-third (36%) also stated that they are planning to help their children pay the rent once they decide to
Vancouver’s green building sector is getting a major boost, thanks to an initiative from the municipal government that intends to reduce greenhouse gas emissions in existing buildings 20% below 2007 levels and require buildings constructed from 2020 henceforward to be carbon neutral in operations.
The “Greenest City 2020 Action Plan” will catapult a city with one of the cleanest building codes in North America to the summit and create an abundance of jobs in its green building sector.
“Vancouver’s next challenge is to improve the environmental performance of existing building stock by focusing on retrofits such as insulation, heating and lighting system upgrades and energy-efficient appliances, as well as on how people operate buildings,” read the city’s Action Plan.“In British Columbia, we continue to have access to relatively inexpensive energy sources.In addition, the landlords and developers who make decisions about new designs or retrofits don’t often pay the utility bills and don’t immediately benefit from efficiency savings that can take time to show return on initial investments.”
Lane Theriault, president of Subterra Renewables, commends the City of Vancouver for both its lofty ambitions and being proactive, but noted that the last mile is always the
A new high-end residential development in Kelowna, BC will focus on the particular needs of active boomers choosing to downsize from traditional housing.
Earlier this week, developer Ariva Resorts announced its multi-million-dollar gated community located just five minutes away from downtown Kelowna, BC.
The 200-home development will be specifically marketed towards “zoomers,” the demographic comprised of physically active boomers.
Ariva Resorts founder Barry Johnson noted that the luxury development will answer the lifestyle needs of the zoomer cohort, which has so far remained ignored by the housing industry.
“We intend to change that thinking.This group is highly active.Health conscious and want to live life to its fullest.Kelowna is the perfect place to live with its excellent climate, wines and vineyards, outdoor activities and remains affordable,” Johnson stated.
Each of the properties will come with large outdoor decks, and offering will range from 1,250 to 1,760 sq.feet.Unit prices are expected to range from $500,000 to $1.9 million.
The development is scheduled to break ground in 2020, and construction will take an estimated four years.
Data from the Office of the Superintendent of Financial Institutions indicated that borrowing among older Canadians is not
Low availability levels in Toronto’s detached, semi-detached, and townhouse segments have contributed to a growing number of the city’s residents deciding to stay put.
According to an analysis of Census data by the Ryerson University Centre for Urban Research and Land Development, Toronto’s housing activity due to address changes has fallen noticeably by 6.3% from 2006 to 2016.
“In the last decade compared with the early 2000s we were building a lot more low-density housing, particularly single-detached housing.In 2002 we built 22,000 units and in 2016, the peak in the last 10 years, we built 11,000 units,” analysis co-author Frank Clayton told the Toronto Star.
Among Toronto’s home owners, moves fell by 7.6 % during that 10-year period.This is in comparison to the 3.9% reduction in moves among tenants.
The next largest drops in moving activity were markedly below Toronto’s levels.Calgary saw a 5.7% decline, while Vancouver had 3.8% less moves, followed by Ottawa, Montreal, and Edmonton.
Consistently elevated price levels might have contributed to the trend, as well.The latest edition of the Teranet-National Bank of Canada House Price Index showed that last month, Toronto home prices went up by 1.33% from May,
Monies are typically pooled to finance dense, towering developments, but Foremost Financial has found value in smaller infill projects.
And by dispersing investors’ funds through roughly 150 projects, risk mitigation is top of mind.
“We want diversification,” said Ricky Dogon, chief compliance officer and vice president of investments at Foremost Financial.“We’d rather do 150 smaller deals than 15 larger deals.The effect that any one project can have on the fund is limited this way.If a mortgage makes 1% of the portfolio and gets in trouble, it’s negligible, but if that one project comprises 10% of the portfolio, it’s a different story.”
Foremost mainly finances townhomes and semi-detached, but is by no means limited to those built forms.It also focuses on the Greater Toronto Area precisely because it lends conservatively.
“More than 90% of our loans are in the GTA, and even further than that, around half of our loans are in the City of Toronto proper, and that’s a very purposeful strategy of ours,” said Dogon.“With the Green Belt, Yellow Belt, constrained supply, outdated zoning regulations, strong employment and population growth, that mix of really strong demand and really constrained supply will keep prices
According to a report from Central 1 Credit Union, Ontario’s housing market is forecasted to grow through 2021, and that includes the need for investor-driven condos in downtown Toronto.
“In higher urban markets, condos should remain a viable investment vehicle because there are a lot of people coming in who will need a roof over their heads,” said Central 1’s regional economist, Edgard Navarrete, the report’s author.
“Population growth is still at about trend, or even slightly above trend, over the next three years and that’s because, even though the housing market is at times relatively unaffordable in the region as a whole, the economy is still attracting a lot of people for work and to education institutions, particularly in urban centres.”
The supply of purpose-built rentals, townhomes and condo apartments has been on the rise throughout Ontario due to strong population growth.Navarrette added that Ontario’s population is forecasted to grow 1.7% this year, 1.7% next year, and 1.8% in 2021.
“With an influx of people coming in, there will be increased demand for condo apartments, townhomes and single-detached homes in secondary markets to meet that demand,” he said.
The Canada Mortgage and