Matt’s not on this episode…and he writes the show notes. Your guess is as good as Matt’s about what’s to come. (***I hear they’re talking about the new provincial budget – Matt***)
NEWS – Major cities around the world have seen prices drop over the past few years.
Interviewing an Agent – What approach to take. What questions you should ask.
Top Tip: Don’t ask too many questions.
Storytime – Why it’s important to give professionals time to respond after the inspection.
Question of the Week – When should you withdraw RRSP’s that you plan to use for your purchase?
NEWS – The CRA is ramping up its real estate audits to discover unreported Canadian income.
Are foreclosures cheaper in Canada? // Foreclosure laws in Canada are much different than the US. The lender has to get fair market value and court approval. // Final sale prices are generally not much cheaper than market price. The risks to the buyer may negate the small savings they could get on a foreclosure.
0:00 Intro and News – The NDP announce a plan to register pre-sale assignments in an effort to tax profits. Will this help housing affordability?
10:40 Why does a home go into foreclosure?
10:40 – News: Our local newspaper is reporting on pre-development applications, bringing projects to light much earlier than the public would usually hear about them.
18:25 – Main topic: What is the etiquette to viewing a home? There are tips and tricks and there are tactics that protect your negotiating position if you decide it’s the one.
We were recently joined by David Fairbairn of fairbairninspections.com on our podcast, Multiple Offers: A Real Estate Show (please subscribe :). It was extremely valuable to have his insider takes on the home inspection process.
It was called the Leaky Condo Crisis. It’s far enough in the past now that we’re noticing some of our clients have never really heard of it. I don’t blame them. They were just kids at the time.
You can hear the full discussion on our podcast Multiple Offers: A Real Estate Show. Listen using the player below or subscribe to our show on your favourite podcast platform.
How to fill in the declaration form. Who is exempt? What’s the point???
It’s here. You can’t avoid it. If you don’t make a declaration you will be charged the full tax amount (you have 6 years to get a rebate if you are taxed and qualified for an exemption).
How to make your Speculation Tax exemption declaration:
We discuss this on our podcast and we fill in the declaration live on the show. Click the player below to listen, or watch the video.
PODCAST: Subscribe on all major platforms – Multiple Offers: A Real Estate Show
Jump to 8:48 for a walk-through of the declaration.
The form is pretty easy as an owner occupier. Go to gov.bc.ca/spectax. It should take only a few minutes and you don’t need a wealth of personal information to complete it.
You will need to provide:
- Declaration Code (provided on letter sent from BC Gov)
- Letter ID (provided on letter sent from BC Gov)
- Property address
- Your Social Insurance Number
- And you MUST provide a phone number and email address
How much is the BC Speculation and Vacancy Tax?
The rate is 0.5% in 2018. In 2019 it goes up to 2% for foreigners and satellite families.
Details here: https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax/tax-rates
Do you own a condo that is vacant more than 6 months of the year?
What are your options?
- Pay the tax
- Get a tenant
What if strata bylaws prohibit rentals? You have until 2020 to get a tenant or you will not qualify for an exemption gov.bc.ca/rental-restrictions
- Sell your Condo
We recently sat down with our colleague Eldon Whalen who has moved his real estate business to Hazelton in Northern BC. We learned a lot about the practicalities of life in a remote area. A cell signal is not something to be relied on or expected. As a result, WiFi rules the day. Expectations regarding communication are very different.