Vancouver Island Real Estate and New 2018 Canadian Mortgage Rules
Are you ready for new Canadian Mortgage rules? If you applied for a new mortgage after January 1, 2018, would you qualify.
Check out this interesting news release . . . CLICK HERE
If you have any mortgage questions, Vancouver Island Realtor Lorne Gait or Morgan Fisher can help you. Further, they can help you find a great Vancouver Island Mortgage Broker who can assist you with your mortgage needs.
In the past the mortgage stress test was used only for those who were putting a small amount of money down on their purchase and as as result needed CMHC financing. As of January 1, 2018 all Buyers who need a mortgage will need to pass the stress test. CLICK HERE for more information on the stress test.
Cumulative Residential Average Single Family Sale Price
Single Family Units Reported Sold
Comparative Activity by Property Type
MLS® Single Family Sales Analysis
Cowichan Valley – Single Family Sales by Subarea
Nanaimo – Single Family Sales by Subarea
Contained in these stats is information on the Average House Price for the region, the amount of homes sold and much more. In this update, we are considering two Real Estate Board areas. These are the Cowichan Valley Region which goes from Mill Bay through to Ladysmith and the Nanaimo Board area which goes from Cedar up to North Nanaimo.
In many ways, these statistics form a great way to look at the market that has past and to predict the market that will come in 2018.
A quick look at the stats shows that prices are upward as there is less supply in relation to the amount of demand. In the Nanaimo, the average home went up from $472,137 in November 2016 to $531,307 in November 2017. In the Cowichan Valley, the average home went up from $375,683 in November 2016 to $463,912 in November 2017. This upward trend took place in Apartments, patio homes and townhomes for both regions.
Looking forward, the best indication of the immediate future is what has taken place in the recent past. When we look at the statistical facts, this is still a Seller’s market. There is less supply and more demand which continues to put upward pressure on the housing industry.
Vancouver Island Real Estate Threats and Opportunities
Threats . . .
However, there are some threats to the market. The first is the global downturn in real estate. In many areas of the planet, higher taxes and costs related to owning real estate have caused real estate values to drop. So far, the exception has been niche / exclusive high end real estate. The exceptions are mostly in North America. Already there have been reversals for the worse. Examples are Australia, Toronto, and London. To this time, the market is still good in Hong Kong, New York and Vancouver. However, there are warning signs ahead.
Other threats include new mortgage rules which create mortgage stress tests for all who require mortgages; more provincial and local taxes; more and increased foreign buyer taxes for those who wish to invest in the local market.
Opportunities . . .
At the same time as there are threats, there are also opportunities. First, this is a great time to downsize from larger single family homes to townhomes and condos. It is a great time to buy a new home–especially with the BC Government new home rebate on Property Transfer Tax. Furthermore, it is a great time to relocate to one of the best places in the world to live. Vancouver Island Real Estate offers, arguably, one of the most exclusive real estate opportunities in the world and in one of the best countries in the planet.
Vancouver Island Real Estate Market Video . . .
Hopefully this Forecast has helped you to gain insight to current conditions in the Vancouver Island Real Estate market for 2018. If you have questions about the data detailed in this post or in the reports, or if you would like to discuss the stats in detail with Lorne, please get in touch.
Ok . . . I know . . . I know, it is a rainy day. How can I enjoy the Ladysmith lifestyle on a day like this? You can see that from the fence at the back of my yard. But it is a good day moderate temperature day compared to much of Canada. And unlike most of Canada we do not have snow. Therefore, yesterday I decided to travel around my town looking for reasons why someone would want to live here.
For most of my life I have lived on Vancouver Island. Most winters are quite moderate. There was almost no snow for the past three winters. This current winter of 2016-2017 gave us more snow than average. But it is likely that for every five or six years, there will be at least one winter cooler than others. But still, we have it better than most every other part of Canada. Vancouver Island is truly the Hawaii of Canada. Our Ladysmith Lifestyle is amazing.
So then . . . reasons why I like the Ladysmith lifestyle. Here are some: The first is waterfront for all to enjoy. I enjoy an ocean view from my home. Many of my clients enjoy waterfront. But for everyone, there are lots of beaches and water play areas. Check out Transfer Beach. This morning which was again overcast, I had opportunity to walk to the beach and back home. It was great winter time exercise. These can be your views December through February.
But then there are also other water Ladysmith lifestyle possibilities for you. Several of my friends own a boat. Some choose moorage at places like the Ladysmith Maritime Society. Some choose to keep their boat at home and launch it from time to time. From Kayaks to Large Sailboats and Motor Yachts. You can pick your pleasure.
If you are not into boating . . . how about parks and hikes. There are some great parks like the Kinsmen Park. Take the kids if you have them. Back several years ago, I used to climb on the park amenities with my children. They are grown up and gone now. But recently the park has been upgraded for a new generation of children and parents. This is a cool family place.
For those who want more exercise out of their Ladysmith lifestyle there is the Holland Creek Trail. Find a trail starting place and launch out to a morning or afternoon adventure. You can go for miles and miles.
Can you see yourself on this trail? This is a good one for taking a friend or your favourite pet. If you are very adventurous, you can even head up to Heart Lake. Take hiking polls or you will wish you did.
If it is too rainy or if it does happen to snow, there is still something to do. How about the Frank Jameson Recreation Centre? Swimming, spinning, yoga, pickleball, free weights, exercise machine and so much more.
The white haired among us, might choose to go to the Seniors Centre. This is a great place for indoor activities cards, dining, clubs and more. Beyond that, this Ladysmith Resources Centre building offers great support for folks of many ages and needs. It is a great town amenity. It is a great place for volunteers.
Of course, some of us are not into exercise or outdoor recreation. For those folks, there is the Coronation Mall and the historic downtown First Avenue Business corridor. Shopping, bakery time, a coffee shop, a restaurant or pub might be the part of the Ladysmith Lifestyle you will enjoy the most.
Occasionally you might want to check out the events in town. This the Aggie Hall. Concerts, dances, home shows and much more take place here. Other gathering places include: The Little Theatre, the Eagles Hall, the Legion and more. You can pic your place to hang out in the late afternoons and evenings.
The Ladysmith lifestyle allows opportunity for all levels of education from Preschool through grade twelve. The Vancouver Island University is up the road in Nanaimo and is hardly a 25-minute drive. There are many great educational venues.
If you get enjoying the Ladysmith live with too much exuberance such that an accident happens or if time passes and you have long term health needs. There are great amenities in the area. Feel secure because there is the hospital clinic. Know you can get a ride with the ambulance service. Trust that there are greater care facilities in Duncan and Nanaimo.
So, there you go. This is the Ladysmith lifestyle on a rainy Saturday afternoon in the middle of Winter. Sure, it might be better to be in Mexico or Hawaii. But if you need to be in Canada. It is a very good option.
If you want to talk more about the Ladysmith lifestyle or if you are considering a move to Ladysmith. Let’s get in touch and find a way to help you be here.
Vancouver Island Real Estate Foreign Buyer Tax — Will she or won’t she?
Will she or won’t she add the dreaded 15% Vancouver Island Real Estate Foreign Buyer Tax for Property Transfers? This is a question that engages the thoughts of my clients this Spring. This is especially the case as Buyers and Sellers consider what Premier Christy Clark’s government has done in the Vancouver Real Estate Market. My thoughts are these:
Not too long ago, the BC Provincial Government changed the Provincial Property Tax for homes purchased in the Greater Vancouver Area. The tax was 1% on the first $200,000 and 2% on the balance. Currently the tax is the same if you are a Canadian resident. However, if you are a foreign Buyer, the tax is now 15% on the whole amount. This is huge for foreign Buyers. It reflected a government attempt to regulate price increases through Government regulation, intervention and taxation. One Vancouver Lawyer told me that if the Provincial Government did not intervene, the coming election would be lost.
Vancouver Island Real Estate Foreign Buyer Tax — The impacts . . .
The obvious result of this regulation, taxation and intervention was an almost immediate price reduction in the price of Vancouver homes. It is a double digit drop in prices and a substantial slow down in the number of sales. You can read the details here — THE GLOBE AND MAIL
There has been talk about putting this new tax on Victoria homes and likely on homes across the rest of the Province. You can read about this in several online articles. Witness the TIMES COLONIST ARTICLE
However, the issue is both political and economic. There has been much concern about the decline of the Vancouver Real Estate Market. The Province is headed into an election and BC home owners concerned about price drops also reflect a huge voter block. Therefore, Premier Christy Clark’s Government is attempting to walk back the challenging aspects of the new added tax. Foreign Buyers who buy and who will be working in Vancouver could soon be exempt from the additional Tax. The Vancouver Sun quotes Christy Clark–VANCOUVER SUN
The Vancouver Sun has further quotes on this from Finance Minister Michael de Jong. Check it out — VANCOUVER SUN
Vancouver Island Real Estate Foreign Buyer Tax — Conclusions . . .
So, the question remains . . . will there be a Vancouver Island Real Estate Foreign Buyer Tax. This realtor believes there will be continued pressure to slow the impact of foreign Buyers on our market. However, at the same time, there will be some refining of the legislation around the matter of who pays the tax and how it is administered. If a foreign Buyer plans to settle down and work in the area, then tax relief is likely. If on the other hand, a Buyer buys a home and plans to be absentee, then likely there will be no tax relief.
In the end. . . time will tell. These are political times. It is fashionable to let others pay taxes–Especially foreigners. It is all good until my / your house value drops.
If you want to discuss this further, Associate Broker and Realtor (R) Lorne Gait is happy to discuss this further. Let’s get in touch.
Greater Victoria’s real estate market continued its strong pace in May as the average price of a single-family house rose to a record $763,517 and the number of properties sold blasted to a new high. The latest average price in the capital region is up by 17.6 per cent from $649,431 a year ago. It’s a seller’s market as buyers face rising prices and multiple offers in hot spots such as Fairfield, Oak Bay and Saanich East. Benchmark prices, calculated by the Victoria Real Estate Board based on a “typical” house, also give a sense of what’s happening. For the entire region, the benchmark was $584,700 in May.
Stunningly beautiful Ocean and Island views are yours in this beautiful Yellow Point oceanfront three bed and two-bathroom rancher.
Enter the property in your own circular driveway with high private hedges to maintain your privacy. There is lots of parking and a garage workshop if you wish. A large home entranceway welcomes you to the plentiful views.
The Kitchen, nook, dining room, living room, den and master bedroom all have ocean views. Sit in the shade on a partially covered concrete patio area. Then go out to an upper deck with hot tub or a lower deck with dining area.
An easy path to the beach winds through your property till you get to an ocean side sitting area with fire pit and private ocean views.
There is a beach, there is opportunity for you to have your own Buoy. The yard is beautifully landscaped. There are many gorgeous shrubs and flowers. A fenced garden area will keep deer away from your veggies.
To view a drone video of this beautiful property, click HERE
Follow this link to a short Video Tour on this Yellow Point Waterfront Home . . . . TOUR
Ladysmith Townhome with Ocean View
#11- 100 Gifford Rd, Ladysmith, BC
Enjoy amazing ocean views from this spacious level entry townhome, in the beautiful seaside town of Ladysmith. This is a rare no stair Ladysmith townhome. Enjoy island living and ocean views in “The Lookout” development.
This handicap friendly, open floor plan features a formal dining area, large living room with a gas fireplace, a kitchen with eating nook, and a bonus covered deck. Views from living room, kitchen and deck are some of the best ocean views that Vancouver Island has to offer. Extras include in-suite laundry, lots of in-suite storage, a master bedroom with large walk-in closet and 4-pieceen-suite, and a second bedroom, also with a large walk-in closet. The covered car port is right at your front door, for easy access. Extra parking is available and can be negotiated with the strata corporation.
A short level walk to town or downhill to Transfer Beach oceanfront park, round out the appeal of this convenient location. In the summertime, you can walk to the park for swimming, sunbathing, kayaking and more. On the August long-weekend, enjoy a night of fireworks, as Ladysmith celebrates its anniversary with Ladysmith Days. In the winter, enjoy watching the sail past as boats are lit-up with Christmas lights. This is Ladysmith townhome living at its best.
Call Lorne Gait for more information or for a viewing today at 250-618-0680. View on line at www.lornegait.com
Regular open houses will be held for this property, contact Lorne for more details. If you are wanting more information on other Ladysmith townhome properties, please get in touch.
If you want to find your way to this property, here is a map . . .
Lorne Gait is a professional realtor who can help you with your Ladysmith Townhome. To start the conversation with us…
Your own private hobby farm close to town. This four bedroom and two bath home has many updates. The property is quiet and private. Come up the driveway, check for ducks in your pond, and enjoy the garden areas as you approach the freshly painted home with double garage.
The roof and decks are all in very good condition. Behind the home is a second detached garage, trees and a horse/animal barn and field. A gazebo and other outbuildings are bonuses.
The home is partially updated, there are new countertops in the bathrooms and kitchen, a near new wood stove and a furnace will keep you warm without using the wood stove.
This is a beautiful property and family home. There is room for you & your projects. Sub-dividable in the near future…