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BC Assessment data for Greater Victoria and the CRD


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#1 VIResident

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Posted 10 December 2019 - 08:24 AM

Greater Victoria home assessments to fall up to 10%

Single-family homeowners in Greater Victoria could see their assessed property values drop by as much as 10 per cent this year according to B.C. Assessment.

 

The Crown corporation, which will be sending out this year’s assessment notices in the first week of January, says Victoria homeowners will see anywhere from a 10 per cent drop in the assessed value of their homes to a five per cent increase.

https://www.timescol...o-10-1.24031491


Edited by VIResident, 10 December 2019 - 08:24 AM.


#2 Nparker

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Posted 10 December 2019 - 08:43 AM

I suppose this means my property taxes will only go up 20% next year.



#3 lanforod

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Posted 10 December 2019 - 08:57 AM

It means basically nothing.


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#4 Mike K.

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Posted 10 December 2019 - 09:19 AM

Great. Now we’ll see months of hysteria from the usual suspects.

What really gets the hive going is when values rise despite lower assessments.
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#5 DavidL

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Posted 10 December 2019 - 09:36 AM

Headline could have just as easily read, "Greater Victoria Assessments to rise up to 5%".  But where's the scare in there?


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#6 tommy

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Posted 10 December 2019 - 09:46 AM

Greater Victoria home assessments to fall up to 10%

Single-family homeowners in Greater Victoria could see their assessed property values drop by as much as 10 per cent this year according to B.C. Assessment.

 

 

The Crown corporation, which will be sending out this year’s assessment notices in the first week of January, says Victoria homeowners will see anywhere from a 10 per cent drop in the assessed value of their homes to a five per cent increase.

https://www.timescol...o-10-1.24031491

...if everyone's assessment drops the same 10%, everyone's property tax will remain the same...

 

...but as is usually the case, assessment decreases will vary from neighbourhood to neighbourhood  so some will pay more tax, others will pay less...but overall a change in assessments is revenue neutral, simply a change in distribution of tax burden...



#7 VIResident

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Posted 10 December 2019 - 11:00 AM

Ahhhhhh.....BUT lower assessments means less collectable by municipality means municipality will have to collect more for the services they provide.  



#8 Sparky

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Posted 10 December 2019 - 11:12 AM

^ It doesn't work that way.

 

The municipality will collect whatever they need in accordance with their budget. 

 

The assessed value just determines the portion (in relation to other properties) of the entire tax needed to be collected. 


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#9 tommy

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Posted 10 December 2019 - 04:54 PM

^ It doesn't work that way.

 

The municipality will collect whatever they need in accordance with their budget. 

 

The assessed value just determines the portion (in relation to other properties) of the entire tax needed to be collected. 

^ exactly

 

they simply adjust the "mill rate" to exact the same amount of tribute from the populace


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#10 spanky123

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Posted 10 December 2019 - 04:58 PM

^ It doesn't work that way.

 

The municipality will collect whatever they need in accordance with their budget. 

 

The assessed value just determines the portion (in relation to other properties) of the entire tax needed to be collected. 

 

Might be a little skewed though. I am assuming that the properties with the greatest depreciation will be those at the top end of the market as pricing has been under pressure there all year. The entry level and mid market units will have appreciated. The tax revenue loss at the top end will likely amount to more than the gain at the low end so taxes will need to adjust a little.



#11 Victoria Watcher

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Posted 10 December 2019 - 07:58 PM

it doesn’t work that way. the muni just adds all values together then applies the mill they need.

#12 tommy

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Posted 10 December 2019 - 10:33 PM

so i made an explanatory spreadsheet;

 

 

value / tax @1%  /  assmt drop  / new value  / new tax@1.086%
 
1000000  / 10000 /  -10.00%  / 900000  / 9777
800000  / 8000  / -10.00%  / 720000  / 7821
650000 / 6500 /  -9.00%  / 591500  / 6425
600000  / 6000 /  -7.00%  / 558000 /  6062
550000 / 5500  / -5.00%  / 522500  / 5676
450000 / 4500  / -5.00%  / 427500  / 4644
300000 / 3000  / -5.00%  / 285000  / 3095
 
total assmt value
 
4350000  /  4004500
 
total tax revenue
 
43500  /  43500

 

houses range from 1 million down to 300k, and assessment decreases range from 10% at the top end of market to 5% at low end

 

the city takes the same amount of revenue, and adjusts their "mill rate"accordingly

 

as you see, the high end of market with the biggest drop saves  some money while the lower end with lowest drop pays more

the mid market is a wash, more or less

 

the same amount of tax is raised, the take is just distributed differently.


Edited by tommy, 10 December 2019 - 10:47 PM.


#13 lanforod

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Posted 11 December 2019 - 08:40 AM

Seems about right. Excepting that every city around here is on a spending spree and increasing budgets far more than inflation.


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#14 VIResident

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Posted 11 December 2019 - 09:01 AM

Seems about right. Excepting that every city around here is on a spending spree and increasing budgets far more than inflation.

and my point exactly. 

Drop in assessments, increase in taxes because of increase in spending, spread it around however you like it is reducing affordability.  

 

Galls one to hear politicians moaning about housing affordability when they have zero intention to do a thing about it.

Oh sure they support density, blanket zoning and so on but what about pressuring province to drop the transfer tax? 

Don't think that affects affordability? 

Or how about Province putting caps on municipal budgets/spending? 

Don't think municipal gov. spending affects affordability?

Or how about transparency on CRD and all 13 muni's costs, services etc.?

Don't that government giant dinosaur affects affordability (13 munis + CRD) ? 

Each home built in Greater Victoria has 10's of thousands $ added on because of local government inefficiencies. 

Then all the lovely little tiny add-on levies that each muni slips through (not added to the property tax bill).

Take care of all of the above and suddenly a house will become affordable.  Like magic! 



#15 Mike K.

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Posted 11 December 2019 - 09:07 AM

We're now into the $100,000's tacked on to the price of each home due to local bureaucracy.

 

Chard Development says every condo they sell has $100,000 of local government costs associated with the price tag. And you can imagine that number to be far higher for single-family-dwellings or more complex development proposals.

 

Even something as simple as a density increase yields a 75% value payback to the City of Victoria, so a $500,000 increase in land value for a three home subdivision comes with a $133,000 fee payable immediately for each lot, totalling $400,000.

 

And despite the high real-estate prices here, first-time purchasers remain limited in how much they can actually pay and remain within the first-time buyer tax savings bracket. Push north on price out of basic necessity and tough luck, you're taxed.


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#16 VIResident

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Posted 11 December 2019 - 09:54 AM

We're now into the $100,000's tacked on to the price of each home due to local bureaucracy.

 

Chard Development says every condo they sell has $100,000 of local government costs associated with the price tag. And you can imagine that number to be far higher for single-family-dwellings or more complex development proposals.

 

Even something as simple as a density increase yields a 75% value payback to the City of Victoria, so a $500,000 increase in land value for a three home subdivision comes with a $133,000 fee payable immediately for each lot, totalling $400,000.

 

And despite the high real-estate prices here, first-time purchasers remain limited in how much they can actually pay and remain within the first-time buyer tax savings. Push north out of basic necessity and tough luck, you're taxed.

**BOOM!**

Get a grip politicians, decision makers in the 13 municipalities and Provincial Gov. and do it fast. Blaming everyone for the 'affordability' issue is wearing thin.  


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#17 Citified.ca

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Posted 12 December 2019 - 09:56 AM

Looking into the numbers a little deeper, Oak Bay's valuations plunged by nearly 10% in Q3 or 2019. Much of the core, other than Oak Bay, was flat. The Westshore's real-estate gained in value, and the peninsula fared better than the core but not quite as well as the Westshore.

 

Of course the BC Assessment data is not indicative of much when it come time to sell a property, but it's good for making broad determinations on value vs. demand (such as in the case of Oak Bay where appreciation over the years has eroded demand and prices are falling).

 

A tale of two cities emerges as BC Assessment data sheds light on Capital's real-estate valuations

https://victoria.cit...ate-valuations/


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#18 Mike K.

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Posted 12 December 2019 - 11:46 AM

The big question on the minds of many homeowners and would-be purchasers is: has the urban core reached its affordability ceiling? Is $1 million for a half-decent bungalow in Fairfield now the new plateau, and we can expect to shimmy along that valuation for the next half-decade until inflation necessitates a push higher?

 

If we take that to be the case, and clearly 2019 supplants that idea as prices were stagnant during a year when many experts called for a price drop, are homes on the Westshore the most likely to see a rapid upwards trajectory in valuation between now and 2025?

 

Historically the Westshore has been the first to feel the effects of a declining market, but that was when affordability for many two-income families still allowed a relatively easy entry into the market at $600k-$700k, which is now the average price for an SFD in Langford outside of up-market neighbourhoods. In theory, a declining market could have a more favourable effect on the Westshore as that's where the affordable homes remain, whereas a drop from $1 million to $900k won't make much of a difference to a family able to afford $750k.

 

Thoughts?


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