pescador
Well-Known Member
Ok, Peace. I’m out. I love fishing.
Property Assessments
- Thread starter scott craven
- Start date
kingblazer84
Well-Known Member
hes just bustin balls
spring fever
Well-Known Member
The politicians claim to justify the capital gains because the States does it. They fail to note that the States lets folks write off their mortgage interest and other expenses against it. Our politicians only evoke the part of a policy that suites their Woke desires-not the whole balanced picture. Much like the US politicians extolling our free health care!! Not the whole picture in either case!!~ Just sayin!!
Rayvon
Well-Known Member
My son was over last night and said his cabin/house on Cowichan Lake assessment went up 68%. This is not a waterfront luxury home with electricity.,sewers,sidewalks and street lighting. It is off the grid,solar powered,gravel roads built by owners,hillside water tank,septic system,across the road from the lake. My son has worked very hard to buy this place for his kids to have a good life.I know recreational properties have gained value during the pandemic,but the government supplies no services to these lots and this increase seems like a money grab.
Viking
Well-Known Member
You are silly to think that inflated assessments aren't driving the price of homes up even further. Ask yourself this, would you sell your house for less than the assessment? I know I wouldn't. Which isn't helping any young person trying to buy. Just my opinion.
Foxsea
Well-Known Member
You don't know! You weren't there! Don't even mention the (intergenerational) war!
Claymaker
Active Member
until all the young people and professionals who cant get in the market leave then who runs the economy? the retired elite of oak bay lol?
Claymaker
Active Member
the average median house hold income is 85K in BC so X10-12 will get you a home.
Rain City
Crew Member
That would get you a 70s 2 bedroom apartment in Vancouver
Claymaker
Active Member
yeah i know just going by what orginal guy said. quote whole post
wildmanyeah
Crew Member
Still have to take into consideration that rates were much higher so monthly payments were still quite high.
we’re paying down mostly principal where as they were paying down mostly interest.
we’re paying down mostly principal where as they were paying down mostly interest.
Rain City
Crew Member
It still didn't mathematically rule out owning. You could just save for a few years longer and the prices didn't outpace your ability to save. It is now impossible to save enough.
Claymaker
Active Member
I'd be happy to buy 200k and pay 15-18% interest. Still better than paying 1 million for tear down
Aquaholic
Crew Member
Full disclosure. Entering my 20th year as a Licensed Realtor in BC.
There are 3 types of values for your property. Appraisal value, assessed value, and market value.
Point 1) Assessed values are not driving up the prices. For years, assessed values were much lower than market value, yet multiple offers and a large increase in market values were happening, and there was a huge gap in the 2 value types. Some years the assessed value is higher than market value, some years it is lower. You are aware that your current assessed value that you just received was derived in July of last year? And that the BC Assessment did not enter your home or see what upgrades you did, if any, unless they were done by permit and on record at your local city hall, whereby BC Assessment combs the permit records electronically and thereby knows if you have indeed done any dwelling improvements? (assessed value has a land component and a dwelling component) If you had a 45% increase in your total assessed value over last year, do you really believe that overnight, your market value has gone up 45%?
Point 2) Many do sell their home for less than assessment value, as it is not indicative of what the most recent sale activity on comparable homes reflects. Especially in an arms length transaction. (where buyer doesn't really have to buy and seller doesn't really have to sell, there is time to do due diligence etc)
***Key Point. Ask yourself this: When getting a mortgage, or refinancing, or a line of credit, why doesn't the bank/financial institution just grab the assessed value and base the loan criteria on that number? Because they want the appraisal value which is based on the current market value, what similar homes in the same area have sold for, including adjustments, if required, for a number of things such as lot size, bedroom/bathroom count and so on. Assessed value is great water cooler and keyboard fodder. Banks do not use it, most properties are financed, I think you get my point here.
Depending on your local market, if you would not sell for less than assessed value, yours would probably languish on MLS for quite awhile. And that is your prerogative.
With respect.
wildmanyeah
Crew Member
yeah but I was saying it with respect to also making less money.
I agree tho that wages haven’t seemed to keep up with inflation but I would say people’s general cost of living seems better now but perhaps that’s due to farming sweat labour out to countries like China.
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My assessment is in. 688,000 to 877,000. About $50K less than what we paid. So presume we are still about market.
We are two professionals with pretty good jobs with a combined family income above $200,000.
The current housing market and wealth inequality are insane.
I have spent the past decade working in HNW tax in Vancouver. I am very pro-business and pro-wealth preservation. However, I do believe the Principal Residence exemption is far too generous and needs to be modified. Housing is housing and should not be a tax-free investment vehicle. They can introduce replacement property rules if you are buying a more expensive house(simple). However, there need to be some tax on gains with no replacement. For the "have" families multiple hundred thousand gifts to kids are common. Really makes it tough for those that don't come from the same families.
Personally, I'd much rather see some incentives changes. Give some more incentives to builders to build more houses and increase supply. However, we also need deincentives residential investors. That investment money would be way better suited in an industry that creates more economic output. IE instead of buying a rental condo, you took your 100K downpayment and invested in CDN Company that was doing something in Canada. All this investment dollars parked in housing just isn't really helping the broader economy.
We are two professionals with pretty good jobs with a combined family income above $200,000.
The current housing market and wealth inequality are insane.
I have spent the past decade working in HNW tax in Vancouver. I am very pro-business and pro-wealth preservation. However, I do believe the Principal Residence exemption is far too generous and needs to be modified. Housing is housing and should not be a tax-free investment vehicle. They can introduce replacement property rules if you are buying a more expensive house(simple). However, there need to be some tax on gains with no replacement. For the "have" families multiple hundred thousand gifts to kids are common. Really makes it tough for those that don't come from the same families.
Personally, I'd much rather see some incentives changes. Give some more incentives to builders to build more houses and increase supply. However, we also need deincentives residential investors. That investment money would be way better suited in an industry that creates more economic output. IE instead of buying a rental condo, you took your 100K downpayment and invested in CDN Company that was doing something in Canada. All this investment dollars parked in housing just isn't really helping the broader economy.
wildmanyeah
Crew Member
have you ever done a thought experiment in your mind of what it would look like if we had more houses built then people needing to move into them.
not that it would ever happen with increased immigration and stuff to prevent it but the thought is interesting.
Claymaker
Active Member
electrician wages in last 15 years have gone up like 1-2$
I don't think we want more. You'd only provide incentives until you get a bit more balance. The right amount of housing for expected immigration and demand. I think we need to get away from people being crammed into crappy 6 room share houses and crappy mortgage helper basement suites. Not everyone will be able to afford exactly what they want, but getting people out of ****** sub-par housing would be good.
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