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Victoria rental housing market and related issues discussion


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#1381 Victoria Watcher

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Posted 12 January 2022 - 06:55 AM

Original schoolhouse converted 50+ years ago to residential rental building, located in City Centre in Langford's OCP. Currently grosses over $100k/year & consists of 10 units, including six studio/bachelor suites, two 1 bdrm suites, one 2 bdrm suite & one 3 bdrm suite. 2020 gross rent was just over $104k with most suites well under market potential rents. 2020 expenses were just under $33k for a net rental income of $67,613. However, the real value is in the land development potential (see supplements) and applying to municipality for City Centre Zoning outlined in OCP, with the possibility of developing at least 50 units. Building is in good condition, has been well maintained and kept in line with municipal codes, which makes it an excellent holding property while awaiting rezoning approval. The income will help to offset building demolition, or provide a steady income for many years if preferred. 

 

$2,350,000

942 Preston Way

 

https://www.realtor....angford-jacklin

 

891747_4.jpg

 

screenshot-www.google.com-2022.01.12-09_58_00.png

 

 

 

Interesting that is was formerly a schoolhouse.


Edited by Victoria Watcher, 12 January 2022 - 07:01 AM.


#1382 Sparky

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Posted 12 January 2022 - 01:11 PM

Geoff Young is proposing that rents increase when property taxes increase.

https://www.timescol...creases-4945883
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#1383 Nparker

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Posted 12 January 2022 - 01:41 PM

Geoff Young is proposing that rents increase when property taxes increase....

Well that settles it; Geoff Young is not running for CoV council again.


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#1384 Mike K.

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Posted 12 January 2022 - 01:47 PM

Who needs economists proposing changes to the way the municipal tax portion of rents are depicted, when we have these groups?

“It’s about as misunderstood a policy as you can possibly put in terms of affordability in housing,” said Douglas King, executive director of Together Against Poverty Society.

Landlords have options to apply for loans and grants to pay for property tax increases, and they sit on the value of their asset, while tenants rarely have options if they can’t afford rent, King said. “I just don’t understand how you could possibly push forward a motion that would increase rent at a time like this. It makes no sense.”

Jeremy Schmidt, a contributor to Homes for Living, a group of homeowners and renters dedicated to making Victoria housing more affordable, said the proposal seems like “an absurd way” to increase civic engagement among renters.

Renters are already indirectly paying property taxes through their rents, he said, and there are better ways to engage renters in municipal decisions, such as a more scientific budget engagement survey, rather than a self-selecting survey.

Debt and grants? What are these grants? I’ve never heard of a tax grant available to rental landlords. And is the solution to paying taxes on commercial properties debt?

Can someone provide some insight into this?

And what’s absurd about breaking out the impact of taxes on rents? More transparency is important, is it not?
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#1385 Victoria Watcher

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Posted 12 January 2022 - 01:55 PM

Geoff Young is proposing that rents increase when property taxes increase.

https://www.timescol...creases-4945883


Talk about out of his lane.

#1386 Mike K.

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Posted 12 January 2022 - 02:21 PM

Why? Mortgages rise when the property tax rises (the tax portion of the monthly lumped in payment).

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#1387 Victoria Watcher

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Posted 12 January 2022 - 02:22 PM

The city does not control the maximum rent increases. Why does the city want to get involved in lobbying for changes there? What they could do is keep property tax increases down. So landlords do not feel pressure there.

Edited by Victoria Watcher, 12 January 2022 - 02:24 PM.

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#1388 Mike K.

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Posted 12 January 2022 - 02:26 PM

Yes they could, but they don’t, so renters currently don’t see a break-down of what their inputs cover. But renters, like homeowners, direct the budget.

More transparency is a good thing. Renters should be able to clearly see what their money goes towards, like homeowners do. I don’t understand why Homes For Living doesn’t want more transparency. That seems very bizarre to me.
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#1389 Nparker

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Posted 12 January 2022 - 02:31 PM

...What they could do is keep property tax increases down...

:lol:  :lol:  :lol:



#1390 kitty surprise

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Posted 12 January 2022 - 02:33 PM

Talk about out of his lane.


Just a minute now, this might be the poison pill to quash the indigenous forever grant. Recall he mentioned such a motion a few weeks back when the forever grant was proposed.

Edited by kitty surprise, 12 January 2022 - 02:33 PM.


#1391 Mike K.

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Posted 12 January 2022 - 02:36 PM

He’s also been quite vocal about the need to share the tax burden more equally between commercial and residential properties.

The wants of the electorate have to be paid for, and transparency is key.

I mean for crying out loud, automakers give you more transparency when you build a custom vehicle on their website. While with budget planning everything is opaque and disconnected, but every resident is paying for that budget.
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#1392 Victoria Watcher

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Posted 12 January 2022 - 02:39 PM

Yes they could, but they don’t, so renters currently don’t see a break-down of what their inputs cover. But renters, like homeowners, direct the budget.

More transparency is a good thing. Renters should be able to clearly see what their money goes towards, like homeowners do. I don’t understand why Homes For Living doesn’t want more transparency. That seems very bizarre to me.

 

I agree!  So let's charge renters a "municipal services tax" directly in some way.  Even if it's only the police and parks portion of current property taxes.  That would create more transparency.

 

Maybe a renter does not want to pay tax for new 75-year sewers or street paving that will last 20 years.  But he can pay for the current year policing and parks upkeep.


Edited by Victoria Watcher, 12 January 2022 - 02:40 PM.


#1393 Moderation

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Posted 13 January 2022 - 03:28 PM

Do owners of residential buildings pay city taxes at the business rate rather than a home owner rate?

 

If they do........?

 

The business rate is more than 3 times the home owner rate. If all the rate is passed on to the renters as one would expect then renters are paying up to 3 times more city taxes based on assessed value than a home owner?.



#1394 Victoria Watcher

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Posted 04 February 2022 - 08:44 AM

Victoria wants B.C. to regulate rent increases between tenancies

Uncontrolled price increases for vacant units are outpacing inflation in Greater Victoria

https://www.vicnews....ween-tenancies/




Property tax hikes have been outpacing inflation for decades now.

Edited by Victoria Watcher, 04 February 2022 - 08:45 AM.

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#1395 rjag

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Posted 04 February 2022 - 08:52 AM

Rent controls will kill this market! 


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#1396 Nparker

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Posted 04 February 2022 - 08:57 AM

...B.C.’s pandemic-derived rent freeze, which took effect in March 2020, expired at the end of 2021, allowing landlords to raise tenant payments by a maximum of 1.5 per cent this year...  

 

The Consumer Price Index increased at an annual pace of 4.8 percent in December, as sharply higher prices for food led to the cost of living going up at its fastest rate since 1991...

https://www.cbc.ca/n...rate since 1991.

The CoV must be using some new form of math where 1.5 is greater than 4.8.


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#1397 On the Level

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Posted 04 February 2022 - 09:25 AM

Victoria wants B.C. to regulate rent increases between tenancies

Uncontrolled price increases for vacant units are outpacing inflation in Greater Victoria

https://www.vicnews....ween-tenancies/

Property tax hikes have been outpacing inflation for decades now.

 

There is a huge push to decouple landlord costs from Property Taxes and Mortgage payments from rent by renter advocacy groups and some on council.  There aren't enough rental units to go around, and new units come with high costs. 

 

When a landload is paying $2,500 to $4,000 a month, it makes the argument for controlled rent rates difficult.  Ultimately, new rentals will not come onto the market because they are financially impossible.


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#1398 Victoria Watcher

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Posted 04 February 2022 - 09:54 AM

There are not enough rental units to go around? Never in our history have so few people inhabited so many units.
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#1399 marks_28

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Posted 04 February 2022 - 10:02 AM

The CoV must be using some new form of math where 1.5 is greater than 4.8.

 

That is if it is the same tenant staying in the suite. If someone new moves in, they are free to raise the rent however much they want, and spoiler, it's been more than 4.8%.



#1400 sdwright.vic

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Posted 04 February 2022 - 04:29 PM

I agree! So let's charge renters a "municipal services tax" directly in some way. Even if it's only the police and parks portion of current property taxes. That would create more transparency.

Maybe a renter does not want to pay tax for new 75-year sewers or street paving that will last 20 years. But he can pay for the current year policing and parks upkeep.


IMHO I think you may be a little confused who pays the property taxes in a rental unit.

The owner of the property SHOULD be charging enough rent that the property taxes are paid for via the collection of rents. That means that a portion of the property tax is paid for by each renter... not the landlord, who is only a conveyor of the money to the property taxes.
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