May 2024 Newsletter
The Spring market is heating up, and Canada’s evolving real estate policies are as spicy as ever. We’re seeing quite a few big changes in 2024, with some costing you more and others offering significant savings. Either way, we want to make sure you, our Blu Community, are up to speed.
Capital-Gains Tax
The federal government announced in the 2024 budget that, as of June 25th, businesses, and private investors will be required to pay a tax on two-thirds of their capital-gains earnings (over $250,000), up from one-half when they sell assets such as vacation homes or investment properties. Our friend James Brown at Langlois Brown Wealth Management explained it like this:
“Say you played the property ladder and were lucky enough to keep one of your first properties and turn it into a rental property. If you were to sell it before June 25th, 2025, and realize a profit of $500,000, you would pay $133,750 in capital gains. If your sale takes place after June 25th, the capital gain tax would be $156,032—an increase of $22,282.”
— James Brown
— James Brown
First-Time Buyer PTT Exemption
Beginning April 1, 2024, the threshold for the PTT exemption increased to include homes with a value up to $835,000, so additional first-time home buyers will be exempt from paying PTT on the first $500,000 of a home’s value.
If you met all the criteria for an exemption and bought a $800,000 property before April 1st, you would pay $14,000 in Property Transfer Tax. After April 1st, that amount would be $6,000 – a reduction of $8,000.
If you met all the criteria for an exemption and bought a $800,000 property before April 1st, you would pay $14,000 in Property Transfer Tax. After April 1st, that amount would be $6,000 – a reduction of $8,000.
Newly Built Home PTT Exemption
Also, beginning April 1, 2024, qualified buyers of a newly built home can be exempt from PTT on new builds with a fair market value of up to $1,100,000 – an increase from the previous limit of $750,000.
Once again, provided you met all the criteria for an exemption and bought a newly built home with a fair market value of $1,000,000, you would not pay PTT. Prior to April 1st, you had to pay $18,000.
Once again, provided you met all the criteria for an exemption and bought a newly built home with a fair market value of $1,000,000, you would not pay PTT. Prior to April 1st, you had to pay $18,000.
Anti-Flipping Legislation
Effective January 1, 2025, the BC NDP will introduce an anti-flipping tax. The tax is 20% on the profits of homes sold within a year of purchase, 10% if sold after 18 months, and does not apply if sold after two years. If the property is the owner’s primary residence, they may qualify for a deduction of up to $20,000 from their taxable income.
For instance, if you bought a home today (May 1st) for $2,000,000, lived in it 364 days and sold it on May 2nd, 2025 for a $250,000 profit, you would pay $50,000 in tax.
For instance, if you bought a home today (May 1st) for $2,000,000, lived in it 364 days and sold it on May 2nd, 2025 for a $250,000 profit, you would pay $50,000 in tax.
Secondary Suite Incentive Program
The Secondary Suite Incentive Program will provide money to help homeowners create a new secondary suite on their property to be rented out for below market value. Homeowners who qualify will receive up to 50% of the cost of renovations, up to a maximum of $40,000. The program will provide a rebate in the form of a forgivable loan — a loan that does not need to be repaid if the homeowner follows the program’s terms.
No More Rental Restrictions
On November 24, 2022, Bill 44, the Building and Strata Statutes Amendment Act, 2022 removed most rental and age restrictions in strata buildings. With the Act’s enactment, strata corporations no longer have any rights to create bylaws that restrict the rental of strata lots (except for restrictions on short-term rentals (or stays) of 30 days or less).
The Last 5 Years
Wondering where the last five years went? Us too! Luckily, we have handy graphs like this to help us wrap our heads around the ups and downs of this crazy market. As you can see, the market saw steady growth from July 2019 to March 2022, when it peaked – damn those interest rate hikes!
However, it seems like Vancouverites have come to realize that this is the new norm. Rates might fluctuate, but demand will continue to build. So rather than waiting for rates to come down, prices to adjust, or the market to cool, our suggestion is to act now.
However, it seems like Vancouverites have come to realize that this is the new norm. Rates might fluctuate, but demand will continue to build. So rather than waiting for rates to come down, prices to adjust, or the market to cool, our suggestion is to act now.
Local Spotlight: Energy Healer Johnny Cantiveros
In addition to his work as a certified Mental Health and Performance Coach, our friend Johnny Cantiveros moonlights as a Siwa Murti Bali Energy Healer. What's Siwa Murti Bali Energy Healing, you ask? Well, it's a Balinese healing modality that can help relieve, if not remove, ailments that you have in your physical or emotional body. Through his extensive studies in Bali, Johnny discovered that physical spaces - like houses and condos - could also be cleansed of troublesome energy. Now, that's what we call a fresh start!
Out and About:
Vancouver International Children's Festival
Directly across from Blu HQ is Vancouver's crown cultural jewel, Granville Island. It's a go-to for the crew year-round, and from May 27 - June 2, this hub of fun will host the Vancouver International Children's Festival. Check out spectacular performances from around the globe for kids and kids at heart.
Blu Crew at Play
A few sunny Fridays ago, the Blu Crew and an assortment of Real Estate movers and shakers congregated at Candice Charron’s beautiful new Coal Harbour listing. Guests nibbled and mingled, marveling at the epic views and the massive, sun-soaked 426 sqft patio. We love it when Blu playtime and work time collide.
Play Video about YouTube Thumbnail for #805 - 560 Cardero Street, Vancouver
Agent of the Month
Give it up for Brook Ewert, Blu’s Agent of the Month. This hard-working father of one lives (and does a tonne of business) on the North Shore. And when he’s not selling spectacular oceanfront homes in Deep Cove like this beauty at 2094 Parkside Lane, he’s fiddling with his guitars or whipping up a gourmet feast. Brook’s approach is very personal and hands on, with a commitment to integrity, transparency, and always being on top of the unique dynamics of our real estate market. He was also a long time volunteer with Big Brothers of Greater Vancouver.
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