5833 replies to this topic

[LJ]

 

 

 

It's also harder to sell condos with restrictions. If I'm hoping to buy something to fix up and sell again in 5 years, buying a place with restrictions means it could take longer to sell, and I may have to sell for less than I paid into the place.

 

 

 

 

 

So the price of housing is going up exponentially, way faster than wages are apparently, but you're worried you may have sell your place at a loss in 5 years.

 

Go figure, that must be the millennial math.

[shoeflack]

So the price of housing is going up exponentially, way faster than wages are apparently, but you're worried you may have sell your place at a loss in 5 years.

 

Go figure, that must be the millennial math.

 

Millennial math? Sorry, I didn't realize non-millennials aimed to sell at a loss. That's news to me.

[nerka]

I'm assuming that everyone who agrees to an AirBnB tax for Victoria are not going to use AirBnB themselves if they travel, right?  Also, it's not like Canadians buy homes in other countries and only live them a few months a year, or rent them out for short term stays, so it's like totally not hypocritical for us do prevent other people from doing it here!

Why assume that?  It's a flawed comparison. Wanting AirBnB to have to play by some of the same rules as other short term accommodation is not the same as wanting AirBnB to disappear. Or are you assuming that Air BnB is ONLY viable if it skirts the rules.

[nerka]

I think any statistical data will show you that the struggle is worse now than in the 60s. The home price to family income ratio now far exceeds what it was then, coupled with higher ratio of tuition costs and other living expense, coupled with higher debt loads.

 

Yes, it's always been a balancing act. But there was also a time when that balancing act could be pretty easily done with the average family only having one person working. The average family today isn't quite so fortunate.

It's also way way harder breaking into a good job now than it was 40 years ago.  When my Dad finished engineering school there were employers lined up to hire him and his classmates. Now I know some recent engineering graduates that have taken a couple years to find good work.

 

Training requirements have gone up as well. Jobs that used to require a bachelor's degree now require a master's.  I see this at work. We advertise for a job that could legitimately be done with a 2 year technical diploma and we get swamped with applicants with PhDs.

[Mike K.]

I am an immigrant, my immediate family are all immigrants or first gen'rs, almost all family friends growing up were immigrants or first gen'rs.

These folks arrived with no English, no money, no job prospects. Forget the fact they were all professionals in their homeland, Canada relegated their skills to cleaning toilets and mopping floors. Every single immigrant family I rubbed shoulders with, every single one, eventually moved out of low-end apartments to their own homes. They eventually started buying nice cars. Now these folks are driving Lexus' and living in our most desired neighbourhoods. Some are, believe it or not, multi, multi millionaires. You look at them now and say "things were easy back then" but you can't even imagine the struggle they went through to put food on their tables.

I don't buy for a second that things are only now "tough." They've always been tough. What's easy is looking at life through a subjective lens and pretending it's an objective view of the world.

[Szeven]

We can't underestimate interest rates. Anyone who has bought anything in the last 40 years is a millionaire. Literally any asset class.

[RFS]

my parents both had jobs and an entire life in Vancouver but they were renting and when they realized they couldnt afford to buy there, they packed up and bought land on Vancouver Island. sacrifices, but it has all worked out for them in the end.

[sukika]

I'm assuming that everyone who agrees to an AirBnB tax for Victoria are not going to use AirBnB themselves if they travel, right?  Also, it's not like Canadians buy homes in other countries and only live them a few months a year, or rent them out for short term stays, so it's like totally not hypocritical for us do prevent other people from doing it here!

 

 

Why assume that?  It's a flawed comparison. Wanting AirBnB to have to play by some of the same rules as other short term accommodation is not the same as wanting AirBnB to disappear. Or are you assuming that Air BnB is ONLY viable if it skirts the rules.

 

My comment meant to be sarcastic, and was in reference to a previous comment about Helps' empty home/airbnb/foreign buyers taxes, and I didn't mean it to be a comment on AirBnB itself.  I wrote it because I have heard people complain about these issues only because they feel it has a negative impact on them.  On the other hand they have no problems renting an AirBnB when they travel, or think it is fantastic that their friend/neighbor/relative owns vacation property in another part of the world.   If they really think it is such a big problem here, then it is very hypocritical contribute to it elsewhere. 

[rjag]

^ Agreed, its like the liquor issue, the ones that moan the loudest about making sure we cant buy a bottle of wine at Thrifty's or Costco are the first ones off the plane in Maui loading up their booze at....Costco. 

[Mike K.]

How many Victorians own property abroad or outside of Greater Victoria? I'd love to know the percentage. Is this something the census data will include, do we know?

[johnk]

How many Victorians own property abroad or outside of Greater Victoria? I'd love to know the percentage. Is this something the census data will include, do we know?

It's reportable on the T-1 tax form if the purchase price was over$100K.

[nerka]

I don't buy for a second that things are only now "tough." They've always been tough. What's easy is looking at life through a subjective lens and pretending it's an objective view of the world.

I both agree and disagree.

 

I agree because In many ways now is one of the best times ever to be alive and being born in Canada or living here is like winning the lottery compared to many places in the world. We have great education accessible to most. Although we like to complain about our healthcare system, Canadians have never been healthier and almost no-one goes without proper health care. Importantly it is still very possible for most people to improve their situation in Canada through hard work.

 

I disagree because this is a thread on housing and one important thing that really has got harder is affording housing in many Canadian cities including Victoria. While current homeowners might like feeling a bit richer there is a price to be paid if young people move away or if businesses shy away from here due to housing prices.

[LeoVictoria]

I have no problem with a 15% foreign buyer tax. They should have the same rules if you are in Vancouver, Toronto, etc.

 

If the foreign buyers are such a small percentage, then it will have no effect on Victoria.

 

Mainland Chinese face similar rules if they buy property in Hong Kong.  They don't call it a Chinese head tax there.

 

Calling it a "chinese head tax" is a total bullshit attempt to play the race card in a situation that isn't about race.

 

Let's see where buyers came from in 2016 according to the VREB (note this is buyer's previous address, not citizenship):

 

USA 106
Europe 25
Asia 44
Other 23
Total Outside Canada 198”

 

In other words there were more than twice as many buyers moving here from the USA than from Asia.   Where are all the people calling the foreign buyer tax an "American head tax"?

[LeoVictoria]

I think any statistical data will show you that the struggle is worse now than in the 60s. The home price to family income ratio now far exceeds what it was then, coupled with higher ratio of tuition costs and other living expense, coupled with higher debt loads.

 

Yes, it's always been a balancing act. But there was also a time when that balancing act could be pretty easily done with the average family only having one person working. The average family today isn't quite so fortunate.

 

No kidding.   We can measure this stuff.  It's harder now to afford a house than it was in the past.  Simple as that.   This is not up for debate.   

 

Doesn't change anything, but the fact remains.

 

Should I tell an immigrant story?  I'm an immigrant, my parents are immigrants.   They worked hard to establish a life in canada.  They also bought 160 fully fenced acres with a house, a barn, and several outbuildings for $75,000 in the early 90s in the interior.   Currently worth about a million.

Edited by LeoVictoria, 22 April 2017 - 04:46 PM.

[LJ]

johnk, on 22 Apr 2017 - 2:12 PM, said:

It's reportable on the T-1 tax form if the purchase price was over$100K.

Not if it is "personal use property".

[sukika]

Calling it a "chinese head tax" is a total bullshit attempt to play the race card in a situation that isn't about race.

 

Let's see where buyers came from in 2016 according to the VREB (note this is buyer's previous address, not citizenship):

 

USA 106
Europe 25
Asia 44
Other 23
Total Outside Canada 198”

 

In other words there were more than twice as many buyers moving here from the USA than from Asia.   Where are all the people calling the foreign buyer tax an "American head tax"?

 

Unfortunately most people automatically associate 'foreign' with a visible minority.  I was born in Victoria but most people assume I'm from another country because of how I look.  You take some prejudices, mix that with the high number of visible minorities in a city like Vancouver, and it's very easy to make the assumption that 'foreigners' are buying too many houses.  

[Nparker]

How many Victorians own property abroad or outside of Greater Victoria? I'd love to know the percentage. Is this something the census data will include, do we know?

VHF might, but since he doesn't complete the census, we'll never know. 

[Janion Fan]

At what point did I say I wouldn't make adjustments or sacrifices?

 

I've been following this thread for quite some time and I'd say that you, at many points, have said either implicitly or explicitly, that you wouldn't make adjustments or sacrifices FTHC.

 

I know it may not seem this way from your point of view but from where I sit, you are a very lucky young person. You are eloquent, clever, well-educated and well-grounded. You have parents who are very fortunate to own a home in a highly desirable area of an incredible city. You have friends and a partner and generous savings and a plan. You seem to have landed a job with both benefits and prospects. The only thing holding you back is, you.

Edited by Janion Fan, 22 April 2017 - 10:20 PM.

[Mike K.]

I both agree and disagree.

I agree because In many ways now is one of the best times ever to be alive and being born in Canada or living here is like winning the lottery compared to many places in the world. We have great education accessible to most. Although we like to complain about our healthcare system, Canadians have never been healthier and almost no-one goes without proper health care. Importantly it is still very possible for most people to improve their situation in Canada through hard work.

I disagree because this is a thread on housing and one important thing that really has got harder is affording housing in many Canadian cities including Victoria. While current homeowners might like feeling a bit richer there is a price to be paid if young people move away or if businesses shy away from here due to housing prices.

Young people are flooding this city and I can't think of any sizeable business that has recently left this region for a less costlier one.

Vancouver and Toronto are obviously massive draws for youth and businesses, despite much higher real-estate price and high costs of living.

[Hikermatt]

Victoria is at a point where we are seeing 1 bedroom condos selling for what 2 bedroom condos were going for only a couple of years ago. Supply cannot keep up with the demand regardless of whether or not they decide to have a Foreign Buyers' Tax in Victoria.

 

As a Mortgage Broker, I constantly see clients who are shocked when they see how the new mortgage rules limit what they can qualify for. I am sorry but the rules are the rules and unless you have 20% or more down you have to qualify based on 25 year 4.64% posted rate. 20% down means you can qualify at the contract rate and go with a 30 year amortization (granted your interest rate will be slightly higher since it will be an uninsurable mortgage). Not to mention you pay quite a bit in Mortgage Loan Insurance that is rolled into your mortgage. If you are going to buy, you want to be confident that you will be keeping the property for a minimum of 5 years.

 

Even the BC Home Owner Mortgage and Equity Partnership Program further reduces the qualifying limit as lenders must account for the eventual repayment.

https://www.bchousin...ome-partnership

 

My recommendations are:

 

If it is your first place, buy small: As a first time home buyer in BC, anything under 500k and there is no property transfer tax. There is a partial exemption up to 525k

http://www2.gov.bc.c...ime-home-buyers

New builds there is no property transfer tax up to 750k before tax, partial exemption up to 800k. Small also means that you have an increased likelihood of keeping that property as a rental down the road.

 

Home Buyer's Plan: Depending on your income it can make sense to contribute to your RRSPs which you can take out up to 25k (50k total for couples). If you time a contribution before the end of February then when you do your taxes in April, you could use the additional tax refund to increase your overall down payment.

(Spousal RRSP contributions work wonders if the income levels vary significantly). The money must be in the RRSP for a minimum of 90 days before you can withdraw it for the HBP. http://www.cra-arc.gc.ca/hbp/

 

Ask your Parents/Grandparents if they can help: When I purchased my first condo (Studio Pre-Sale in the Promontory), I did not have the available funds for the 10% deposit. I asked my parents and they loaned me what I needed for the deposit. It gave me incentive to pay them back as quickly as possible and save up enough to have 20% by the time it was completed. My parents decided to help me since it was something I was doing to build for my future.

Everyone here knows that it took about 3 years to be built so you have a lot of time to focus on savings in order to reach 20%.

 

If you are purchasing something now, ask if there is any way that they can help you with your down payment so that you can reach 20% down. Or, maybe they can go on title for 1% so that their income can be used to help qualify. The gift could also be placed in an RRSP so that you have the additional refund come tax time which creates an even larger down payment. As awkward as it may be to ask, I tell my clients to ask their parents because what is the worst that they can say? Do you really want to have them tell you that they could have helped you out once you have already purchased? Parents generally want to help out if they are able to.

 

Other options include:

 

Purchasing with a friend: If you decide to do this, you must insure that you are prepared for what could be a difficult situation down the road if either partner decides to they want to sell. Go through all the scenarios and have detailed written agreements for each.

http://business.fina...xpensive-market

 

 

For my clients, I aim to put them into the best position so that they have the option to buy if they so choose. In a lot of cases it takes long term planning in order to be in the position to purchase down the road. It is tough out there, I am not gonna lie, but there are many tools/tips available to increase your overall home buying opportunities.