Property Assessments

[Thunder21]

Basically none of the incredible buying activity increase since the COVID period was due to foreign buyers.

Yes I know , which is another reason I’m not convinced we will see a slow down. The borders were closed for a year or whatever it was and local demand was insane. Now that things are opening up, we just increased the amount of buyers substantially .

 

[scott craven]

We are just recently catching up to the rest of the world's urban centre pricing.

 

[ziggy]

Anyone else find the cost of land in a country as big as ours somewhat troubling? Is it because so much is Crown Land or Tenured I.e. forestry companies etc., or simply because no one wants to live in the most of Canada? lol. I suspect a bit of all.

 

[wildmanyeah]

I haven't tried the huge deposit thing. I'd have to get organized for that because I can't access too much within 24hours.

Last offer I averaged out the recent sales in the area at $527 per square foot and then my offer was $575 per square foot. We got outbid by $300,000......

I've seen lots of houses bought by holding companies and sold a few months later. They don't even move in. Just sell it a short period later for 20% more and pay capital gains.

I got so lucky in the summer of 2020 to find a place, In the spring of 2020 some housing prices were dropping and then just as my wife and I decided to move the market began to go nuts.

we lucked out and bought a house from an estate, offer went out the day it was listed and we ended up getting it for 5k under listing.

There were flippers looking at the house just after us.

 

[Aquaholic]

Anyone else find the cost of land in a country as big as ours somewhat troubling? Is it because so much is Crown Land or Tenured I.e. forestry companies etc., or simply because no one wants to live in the most of Canada? lol. I suspect a bit of all.

Great point. I was involved with marketing some businesses with property for sale in the outlying areas, and the British Columbia Provincial Nominee Program (PNP) program was what we were using to attract foreign investors. Part of the criteria though was that the foreigners wanting to move to BC in a timely manner have to agree live and settle in outlying areas and cannot all move to the big urban centers. Think of 100 Mile House, Lone Butte, Smithers, Bella Bella etc. This is just a snippet.

The last time I took the land title course through my real estate board, the booklet says that only 6% of the land in British Columbia is developed, the other 94% is undeveloped. Anyone that has flown or driven around this province would probably agree.

 

[wildmanyeah]

Great point. I was involved with marketing some businesses with property for sale in the outlying areas, and the British Columbia Provincial Nominee Program (PNP) program was what we were using to attract foreign investors. Part of the criteria though was that the foreigners wanting to move to BC in a timely manner have to agree live and settle in outlying areas and cannot all move to the big urban centers. Think of 100 Mile House, Lone Butte, Smithers, Bella Bella etc. This is just a snippet.

The last time I took the land title course through my real estate board, the booklet says that only 6% of the land in British Columbia is developed, the other 94% is undeveloped. Anyone that has flown or driven around this province would probably agree.

When i flyed to prince George for work on the regular one of the old taxis drivers from india said that's how he ended up in prince george.

 

[ab1752]

We have been lucky with our assessment, but this year's 22% nudge will move us far above the grant clip level unless they raise it up. Even at that, we are still 26% under what the "no subjects, no agents" unsolicited offer we received to walk away recently. As I was sprinting down the street, I heard the door lock behind me...haha so I guess we are here for a while yet.

 

[Aces]

Up 32% for us

396k to 522

 

[Corey_lax]

Our shops at work just went up 1.7M. What the hell does that mean for property taxes??? Probably 200k a year.

 

[baddogg]

We were fortunate enough to pick up 5 acres with house and large shop in Lantzville 10 years ago. At that time the assessment and actual sale price were very close. My assessment value went up $400,000 this year over last year. It hasn't kept pace however with current real estate prices in the area. A few 2.5 acres with house and no shop in the area have sold in the last 6 months in the 1.3 to 1.6 million range. Sure glad I'm not buying now.

 

[Newf]

In the 20 odd years I was in banking, when prime was at its lowest, a new creative way was developed by the banks called "FEES" , no need to increase rates now as most people cant figure out the fee rate your being screwing on and the only reason to increase the prime is to make the bond market more lucrative for the international market. If it wasn't for that , you'd probably never see a prime interest rate increase. If you think your bank isn't getting their pound of flesh on your low rate paper, you better give your head a shake ... look at the fee that is hidden in it and never mind puffing out your chest that you got a low rate ... hahaha used to love guys that told me how low their rate was at another bank, until I pointed out the fees in the deal and watch them deflate hahaha. And YES Rain if they ever increase the prime the markets will in my opinion create more harm then what will be gained from the bond market (canadian $$$ interest) so thats why there hasn't been one .... so far !

It's getting off of the OP but I'm curious as to what you know about "FEES" that some of us don't. If I came to your bank and told you that I got my mortgage for 1% lower at another bank, what could you tell me about the hidden fees that your bank would not also have? Not questioning your knowledge on the subject but with the little knowledge I do have it would seem that most banks would have the same sort of "FEE" structure whether they are hidden or not when dealing with a mortgage. I'm aware of all the "upselling" that banks try to do to get you into their other products but was not aware of hidden fees when comparing a mortgage for one bank to another. Just figured if I got a cheaper interest rate I was better off at the end of the day.

 

[Captain PartyMarty]

It's getting off of the OP but I'm curious as to what you know about "FEES" that some of us don't. If I came to your bank and told you that I got my mortgage for 1% lower at another bank, what could you tell me about the hidden fees that your bank would not also have? Not questioning your knowledge on the subject but with the little knowledge I do have it would seem that most banks would have the same sort of "FEE" structure whether they are hidden or not when dealing with a mortgage. I'm aware of all the "upselling" that banks try to do to get you into their other products but was not aware of hidden fees when comparing a mortgage for one bank to another. Just figured if I got a cheaper interest rate I was better off at the end of the day.

I agree with you here Newf. I was under the impression that by law when offering a loan, the issuer was obligated to disclose the full yearly or monthly cost of the loan in a clear and understandable manner. Seems that it would be hard for any bank to hide fees...

From the canada.ca website

Cost of Borrowing Regulations​

The Cost of Borrowing Regulations require that federally regulated financial institutions give consumers all required information in language that is clear and presented in a manner that is not misleading. The regulations apply to disclosure documents for mortgages, loans, lines of credit, and credit card applications and agreements.

 

[sir-vivor]

It's getting off of the OP but I'm curious as to what you know about "FEES" that some of us don't. If I came to your bank and told you that I got my mortgage for 1% lower at another bank, what could you tell me about the hidden fees that your bank would not also have? Not questioning your knowledge on the subject but with the little knowledge I do have it would seem that most banks would have the same sort of "FEE" structure whether they are hidden or not when dealing with a mortgage. I'm aware of all the "upselling" that banks try to do to get you into their other products but was not aware of hidden fees when comparing a mortgage for one bank to another. Just figured if I got a cheaper interest rate I was better off at the end of the day.

My comments were intended to mainly bring accross awareness that if someone is getting an exceptional rate that let's say your 10 year banking facility can not touch , there will be a hidden fee , Ask the new financial facilitator to confirm in writing to you that "No fees have been included what so ever , in whole or part of the amounts disbursed ". I have the credentials and the education and would be more than will to review your next financial arrangement , but my fees per hour would be $750

 

[sir-vivor]

I agree with you here Newf. I was under the impression that by law when offering a loan, the issuer was obligated to disclose the full yearly or monthly cost of the loan in a clear and understandable manner. Seems that it would be hard for any bank to hide fees...

From the canada.ca website

Cost of Borrowing Regulations​

The Cost of Borrowing Regulations require that federally regulated financial institutions give consumers all required information in language that is clear and presented in a manner that is not misleading. The regulations apply to disclosure documents for mortgages, loans, lines of credit, and credit card applications and agreements.

It always is 100% . I dont want to slam fingers but the last time I did a financial deal, I had the lender agree to supply me with the actual disbursements for all fees claimed (legal, office, convenience, registration, title etc etc ) and they wouldnt , so I walked. No more said but full disclosure is always ahered to but disclosure of WHAT can be an issue . Sorry for hijack I'm done .

 

[SpringFever552]

Agreed, the government and bank of Canada have to be extremely careful or we could see a collapse like we've never seen.

80's come to mind? With high interest rates, prices tanked, people owing more than places were worth, mortage payments went up..
A guy in Calgary put an add in paper, saying he'd buy your mortgage for a buck yea 1 dollar!
He turned around and rented them back and 6mths later bank came calling , he hadnt payed a penny on any mortage he bought..100's of them.
He defaulted on every one but kept 6mths rent on all those homes lol
Banks then went after the people who sold for a buck..went to court , banks lost lol
I know because an uncle had sold his mortage for a buck
Priceless!!

 

[Corey_lax]

The majority of home owners have owned for many years and didn’t pay the astronomical prices that we have right now. If it “tanked”, it would likely go back to what prices were 2.5 years ago. So housing would still be expensive for most new homebuyers.

99% of home owners wouldn’t have lost their shirt on their homes and the maybe 1% of the population that bought this year are forced to play the long game (waiting for house values to match what they paid) or dump the house/mortgage. Lots of people would be screwed, but not really a lot of people when you look at how many people would be just fine if housing prices came down 35% or so to when people still though housing was too expensive

 

[Aquaholic]

The majority of home owners have owned for many years and didn’t pay the astronomical prices that we have right now. If it “tanked”, it would likely go back to what prices were 2.5 years ago. So housing would still be expensive for most new homebuyers.

99% of home owners wouldn’t have lost their shirt on their homes and the maybe 1% of the population that bought this year are forced to play the long game (waiting for house values to match what they paid) or dump the house/mortgage. Lots of people would be screwed, but not really a lot of people when you look at how many people would be just fine if housing prices came down 35% or so to when people still though housing was too expensive

Agree for the most part. Unless owners have been taking out equity, long time owners are fine. Many are deferring yearly taxes too, so there will be an adjustment come conveyance time.

Think of your grandparents, or parents, depending on your dob. Did they ever watch the market like folks do today, and wonder if it was worth less than they paid a few years earlier? No. They needed a place to live and raise a family. Prices may have fluctuated, but unless they needed to sell, the market ups and downs were inconsequential to them.

FYI. If you wanted to do a reverse mortgage, property tax deferral has to be paid out. In some cases you can start again though, if the reverse mortgage holder agrees.

 

[pescador]

The recent City of Vancouver policy change for their "streamlining rental around local shopping areas" is a step in the right direction but is a drop in the bucket (it will result in limited new supply) and feels much more like politicking in advance of the election ... they needed something positive to point to on their accomplishment list. It is just too difficult to make a buck commensurate with the risk in rental these days unless you have scale/size and close to zero cost of capital. The large equity investment required, slim returns and the long time frame for payback/investment return makes it impossible for most to build and in the City of Vancouver it is only made worse by excruciatingly slow approvals, overlapping policies, lack of decision making authority at all levels and continued increase in various fees and levies. It is so much easier to do business across the border to the south (COVID excepted).

p.s. as a long time Kits resident, I hear you re: Kits towers ... the meaningful impact impact to supply and disruption to existing residents' life both during and post construction will really come from the First Nations developments at the Burrard Bridge and at 4th/Highbury ... they have the size to make a real impact and the stakeholders to move forward.

15,000 units in the Jericho development plan. It’s going too overpopulate the area. And prices won’t be cheap.

 

[Newf]

My comments were intended to mainly bring accross awareness that if someone is getting an exceptional rate that let's say your 10 year banking facility can not touch , there will be a hidden fee , Ask the new financial facilitator to confirm in writing to you that "No fees have been included what so ever , in whole or part of the amounts disbursed ". I have the credentials and the education and would be more than will to review your next financial arrangement , but my fees per hour would be $750

Again, Sorry for the derail on the OP. sir-vivor--My comments were only intended to inquire about the "Fees" that you mentioned in your post as it might save me a few dollars if I knew the scoop. My past mortgages that I've had (in Alberta and NL) were fairly clearly explained to me prior to any signing so I always thought that I knew what I was getting but maybe not. When I applied at any bank the first thing they wanted was to verify that I had the money for the downpayment and also money to cover "Fees" like some that you mentioned (registration, title, legal etc etc) Those Fees were not hidden and were not paid to or collected by the bank. I paid them to my lawyer who did the title search etc etc. The bank did pay for my inspection although some banks don't do this and bill the customer instead but I assume that the customer would know this. Don't get me wrong, I know that the Banks are in business to make money.

Also, thanks for your offer but if I did need to get another mortgage in the future, your "Fees" of $750 an hour is a little too rich for my blood so I guess I will have to take my chances with the banks and the lawyers.

Sorry again if you felt that I was questioning your education or credentials as that certainly was not the case. And just like you, I too am done.

 

[Bill 310]

FYI. If you wanted to do a reverse mortgage, property tax deferral has to be paid out. In some cases you can start again though, if the reverse mortgage holder agrees.

It would be interesting to see the changing stats regarding Property Tax Deferral program (if any). Many of our friends are in the position where they can defer their taxes(age and paid for homes ) but financially most have decided to continue to pay their property taxes because like us they value the services provided by our taxes and for those of us who are are able to continue to pay property taxes, even more so for those of us who are childless we see an additional social and moral obligation to pay our taxes for the good of society.

However, as the publication of municipal salaries becomes easier for people to access, there seems to be more resistance to these individuals continuing to pay when they can defer.

In my job, I see the salaries of a lot of people, and I understand the value of being a government or municipal employee especially for the immense value of the retirement benefits both pension and health and welfare post retirement benefits.

For decades the common belief was that civil servants were paid less but their pension plan sort of leveled the field. I believe that the tide has turned and for the average person, their best financial decision would be to get a government job if for no other reason than the salaries are comparable and the retirement benefits provided are unattainable for the majority of Canadians.

What is happening is that people who we know who could defer and yet pay their taxes and now talking openly about deferring for the first time because they can, not because they need to.

This has the potential to create a cash crunch for municipal governments.

As someone who has multiple times appealed my property taxes , I am tired of having the same level of unmigrated ********
tossed about by BC Assessment. If every house on a street is on a 50 foot lot but one and that house is on a 30 foot lot I still find in incomprehensible that the value per square foot of that 30 foot lot is significantly higher.

I have been unable to find any academic study that argues or states that a smaller residential lot is worth more per square foot than a larger one. If anyone has such a study I would be grateful to get a copy.