Real estate news is abundant this month. From the Bank of Canada holding interest rates, to discussion on the short term rental restrictions, to first time home buyers exemption, and rising prices across the country - this month has endless topics to discuss.
What is most important to you? If you are downsizing, the first-time buyers exemption may not be top of mind for you. Or, if you are an investor hoping to buy a short-term rental, you may not care about the anti-flipping tax. But let’s be honest, some of the most striking changes in residential real estate in British Columbia are happening.
Short-term rental restrictions will start May 1. Parksville real estate is not exempt. You may be wondering how can the government restrict short term rentals in hotel and recreation/ tourism zones?? Is that not the purpose of a hotel, or hotel style strata? Whistler, Kelowna, Sooke and other areas are asking the same questions.
The government is discussing imposting hefty penalties on those who don’t follow the new short term rental laws. Who will enforce that? perhaps they will hire a whole new team of folks who’s thankless job will be to enforce the new short-term rental restrictions. As usual, the government is putting the horse before the cart. Yes, I am dating myself with that reference.
If you are in a community with more than 10, 000 you will not be exempt. Again, certain communities are depending on their zoning and primary community usage, ie tourism vs fisheries, or forestry.
How will this change affect your condo or vacation home? You better find out soon as penalties are high!
First time home buyers are thrilled with the increase in property transfer tax exemption on their first purchase. With the average price of a single family home in British Columbia being over $900 000, who can expect a first-time home buyer to purchase a home under the previous $500 000 mark?
In Parksville the average price of a home is $845, 000; In Nanaimo the average real estate sale price for a single family home is $787 000; and in the Central Okanagan real estate prices are up to $1 million dollars on average.
You first time home buyers, don't forget the amount between $500 000 and $835 000 is a sliding scale - and tax will apply! The property must be used as your principal residence, have fair market value of $835 000 or less, be 1.24acres or smaller, and contain only residential improvements. Do you qualify? Do your homework! Get advice of a trusted professional.
Did I mention that statistics, across Canada, show the average price of single family real estate purchases have doubled, on average, between 2013-2023. Doubled!
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