Posted on
March 7, 2019
by
Tibor Bogdan
The British Columbia government says it has launched Canada’s first registry aimed at cracking down on pre-sale property flipping and tax evasion in B.C.’s real estate market.
The Ministry of Finance says the Condo and Strata Assignment Integrity Register will improve fairness and transparency in property transactions.
Finance Minister Carol James says in a news release that the register will take “real action to moderate the condo market,” and is already starting to see results in Metro Vancouver.
Condo developers will be required to securely gather and report the identity and citizenship of anyone completing a contract assignment in a project.
A contract assignment occurs when a buyer sells, or “flips,” their purchase contract of a condo to another buyer, often at a higher price, before construction of the building is complete.
Currently flipping can occur without any oversight and the province says the practice has been a factor in raising real estate prices while facilitating tax evasion when capital gains and other taxes are not applied.
“For too long, speculators and tax evaders have been taking advantage of loopholes in our real estate market, driving up prices and shutting British Columbians out of the market,” James says in the news release.
The finance ministry says it’s unknown how many pre-sale property flips occur each year because the transactions aren’t reported.
Developers are now required to collect and record assignment information and file a report each quarter, with the first due April 30, covering the period from Jan. 1 to March 31, 2019.
“The B.C. government will use this information to ensure that people who assign condos are paying the appropriate income tax, capital gains and property transfer tax,” the release says.
The filing fee per assignment is $195, which the government says is a small fraction of the cost of flipping a condo unit.
The register is one part of the New Democrat government’s 30-Point Housing Plan to address housing affordability.
Article: Vancouver Sun https://goo.gl/uC58Jb
Tibor Bogdan
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
February 22, 2019
by
Tibor Bogdan
Here's an interesting article I read this week.
Son evicts mom who paid down payment, contributed to mortgage on shared house
A son and mother who bought an Abbotsford house together have been ordered to sell the shared residence after he evicted her, claiming the home was his – although she made the down payment and contributed toward the mortgage.
B.C. Supreme Court Justice Christopher Grauer said Anne Iberg and Russell Gordon Claridge have had a strained relationship for some time.
Since the eviction, Grauer said in a Feb. 12 decision, “they have been fully estranged, and it is clear that sharing the same residence is no longer practicable.”
In June 2008, Iberg, 75, paid more than $100,000 towards the purchase of a house to live in with Claridge, the ruling said. She also paid significant sums for furniture and appliances in two suites in the house and for landscaping.
Claridge, said the court, contributed no money of his own toward the purchase, but did pay equally with his mother towards the mortgage payments and expenses.
Iberg testified that she understood they would be joint owners, each living in their own suite.
They had shared the house for a decade but on Feb 26, 2018, Claridge served his mother with a two-month notice to end tenancy for landlord’s use of property.
“He said that he did so because he had a new child on the way, and wanted to live in the larger upstairs suite, switching with his mother, an idea she had raised herself,” Grauer said.
When she missed her contribution to the March 2018 mortgage payment, the first such instance, Claridge served a 10-day notice to end tenancy for unpaid rent.
Iberg testified she realized only then that she had signed the assignment of purchase contract in favour of her son. Soon after, she also realized she had apparently signed a residential tenancy agreement with her son as landlord, she said.
“There is no doubt that she signed the documents,” Grauer said.
Claridge claimed the money was a gift – a condition required by the lender – and that the house is his and that he was entitled to evict his mother.
“This would leave Mrs. Iberg with nothing after a lifetime of supporting her son,” Grauer said in his ruling.
Grauer ruled Iberg should receive $130,000 to reflect what she had put into the property and that any equity left from the payout of a first mortgage on the house should be divided equally. Always be fully aware of everything you sign and obtain professional and legal advise...especially when purchasing property with the intention of being joint tenants.
Posted on
February 15, 2019
by
Tibor Bogdan
If you are buying a house that was built in the 70's, 80's and some even in the 90's, then you will likely find Poly B water pipes. The question I am often asked is whether they leak and will they need to be replaced?
I found this article that explains the issue well.
What is Polybutylene piping?
Polybutylene piping, or Poly-B for short, is a flexible plastic supply plumbing material that was in use in home construction between 1978 and 1995. Poly-B can be identified by its light grey colour and the permanent markings on the tubing. As a cheaper and easier-to-use alternative to copper, Poly-B was installed in over 6 million American, and over 700.000 Canadian homes.
What is the issue? Over the years there were a number of class action suits, primarily in the Southern United States, against the manufacturer of Poly-B due to claims with its potential to leak.
- Initially there were issues with plastic fittings and elbows, which were prone to crack or break. In Canada we mostly alleviated this problem by using primarily copper and brass fittings and elbows. Plastic fittings, however, can still be found in some homes.
- Another claim is that Poly-B piping can deteriorate and fail, when exposed to extreme heat, very hot water and where water has high chlorine levels. Chlorine levels in Canada are much lower than those in the United States.
- Poly-B is permeable to oxygen. Poly-B used in circulating hot water loops is prone to deliver oxidized water, which can be very hard on water heaters and boiler and drastically shorten their life.
- When exposed to sunlight for an extended amount of time, Poly-B piping can break down. Poly-B should not be used nor stored outdoors.
Should I be concerned? It should be noted that the vast majority of Poly-B related issues were reported in the United States. Very few cases have been reported in Canada and most of those seem to be related to poor workmanship rather than the piping itself. While numbers for British Columbia are unknown, Alberta Municipal Affairs is aware of approximately four Poly-B failures in Alberta over the last 20 years, all of which were related to improper installation rather than the materials. I’ve seen copper and PEX fail too, nothing is 100% guaranteed.
What can I do to make the best of my poly-B?
- Check all visible joints for leaks or cracks and ensure they are copper or brass, rather than plastic
- Ensure your home water pressure is between 40 – 60 psi
- If you live in an area with very high chlorine levels, consider installing a water filter close to where the water enters the home
- If your Poly-B only distributes hot and cold water throughout the house set your hot water tank to about 125 – 130F
- If Poly-B is used in a circulating hot water loop have the system assessed for possible corrosion
- Ensure no Poly-B pipe is connected directly to a hot water heater
What about home insurance? Most insurance companies in Canada do not consider Poly-B with copper or brass fittings to be an added risk factor.
Posted on
February 8, 2019
by
Tibor Bogdan
Currently, many strata properties have some type of bylaw regarding rentals. Some prohibit all rentals, some will allow them, but most of them are in between and have a bylaw in place that allows a maximum number of units to be rented out.
Judging by this article, it seems to me that the Strata property owners have the right to elect an appropriate rental bylaw for their complex. This is now another thing that government wants to take away.
Condo rental bans may be on way out with B.C. empty home tax
Forcing B.C. strata councils to remove restrictions on rentals is part of the B.C. NDP government’s speculation tax that is taking effect this year, opposition critics say.
The move was not formally announced, but guidelines for the imposition of the vacant home tax say strata councils won’t be able to restrict rentals after 2019. B.C. Liberal finance critic Shirley Bond said the change was recommended last year by the government’s rental housing task force, and “just happens to coincide with the tax taking effect.
“It certainly looks like the NDP have been planning all along to eliminate the rental restriction powers of strata councils,” Bond said Wednesday. “The NDP have been creating tax policy on the fly and the so-called speculation tax is a perfect example of that. It looks like strata property owners are next on the hit list.”
Posted on
January 25, 2019
by
Tibor Bogdan
Are you a homeowner considering downsizing? You’ve spent your life building your assets and working hard. Now is the time for you to enjoy the fruits of your labor and live a simpler life.
Below are just a few of the many benefits downsizing can offer.
- Less cleaning– Smaller spaces inherently mean less dusting, sweeping, vacuuming, scrubbing, wiping, and so on, which allows more time for relaxation.
- Less maintenance– You’ll have fewer rooms and a smaller lawn to upkeep.
- Fewer expenses– During the winter, you’ll have fewer spaces to heat; in the summer, fewer spaces to cool. Also, a smaller property means lower insurance premiums.
- Less clutter– Less space means less stuff. You won’t be hoarding the clothes you haven’t worn in two years, the books you never intend to read, the kitchen appliances and dishes you never use, and the family heirlooms you keep out of duty.
- More savings– If you own your home with equity, a sale will result in a profit, and you can reinvest into something smaller while keeping the rest in savings.
- More joy– According to HomeAdvisor, “Having fewer financial and maintenance-related responsibilities will allow you to focus more on your happiness and less on your home.” For example, you can invest in your life by going on that hard-earned vacation.
To read more about Finding the Right Home and What to Keep & What to Toss, click here: https://goo.gl/2p87Mn
Posted on
January 16, 2019
by
Tibor Bogdan
You will have to apply for an exemption from the speculation tax by March 31st.
The Ministry of Finance said letters outlining the first speculation tax fees and exemption processes will begin arriving at all homes in Greater Victoria, Nanaimo, Kelowna and Metro Vancouver (excluding Bowen Island and Lions Bay, but including Abbotsford, Mission and Chilliwack) starting this week.
It will be up to all homeowners to apply for exemptions, with a deadline of March 31. Those who don’t apply, or qualify, will be sent tax bills due to be paid by July 2. The opt-out process will become an annual event for property owners under the new speculation tax rules. People who pay mistakenly can get a rebate within six years, according to the ministry.
To read the full story click here.
Tibor Bogdan
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
January 10, 2019
by
Tibor Bogdan
It's Property Assessment time, and we would just like to remind everyone that if you are not satisfied with the assessment, there are steps you can take to have it re-assessed.
Act quickly If you feel you've been unfairly assessed in comparison to your neighbors, you'll have to act quickly, as the deadline to appeal is Thursday, Jan. 31.
B.C. Assessment says most complaints get resolved through discussions between property owners and staff. Complainants should contact B.C. Assessment through its website, in person or by phone at 1-866-825-8322.
If your concerns still haven't been resolved with an appraiser, the next step is to go through an appeal process. You'll have to submit a written request to a B.C. Assessment office no later than Jan. 31, 2019.
To appeal or not to appeal? Expert advice for dealing with your new property assessment The ministry has created a video outlining how to prepare for your hearing and what evidence you will need to support your claim. Hearings are open to the public and typically lasts 30 minutes.
During that time, you will have to provide evidence that your property assessment notice is inaccurate. The panel will likely ask you questions and you are allowed to ask the panel questions.
To read the full article click here: https://www.cbc.ca/news/canada/british-columbia/how-to-appeal-bc-assessment-1.4964053 If you are planning on appealing your property assessment and you would like to discuss the strategy or find comparables to back up your case, then call or email me, I can help.
Tibor Bogdan
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
January 2, 2019
by
Tibor Bogdan
Did you know that there's rebates available to home owners in B.C? Whether you're looking to sell, or stay in your home long term, many of these upgrades could add value to your home and save you money on electricity and gas in the long run.
If you're thinking of upgrading or replacing items in your home, have a look at the website below to see if there's any rebates/incentives that apply to your home improvements. https://goo.gl/iynTA5
There's rebates for items such as heat pumps, geothermal heat, natural gas boiler & water heaters, windows, doors, appliances, insulation, and more!
The incentives offered are not solely for residential homes, there's rebates available for new construction residential, non-profit housing and commercial structures as well.
Tibor Bogdan
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
December 19, 2018
by
Tibor Bogdan
Are you a homeowner? Are you a senior citizen? Are you ready for a change? Do you find yourself wanting to decrease your responsibilities? Would you like to have some extra cash and less debt? If the answer is yes to any or all of these questions, then it may be time for you to consider downsizing. You’ve spent your life building your assets and working hard. Now is the time for you to enjoy the fruits of your labor and live a simpler life.
Benefits to Downsizing
Below are just a few of the many benefits downsizing can offer.
- Less cleaning – Smaller spaces inherently mean less dusting, sweeping, vacuuming, scrubbing, wiping, and so on, which allows more time for relaxation.
- Less maintenance – You’ll have fewer rooms and a smaller lawn to upkeep.
- Fewer expenses – During the winter, you’ll have fewer spaces to heat; in the summer, fewer spaces to cool. Also, a smaller property means lower insurance premiums.
- Less clutter – Less space means less stuff. You won’t be hoarding the clothes you haven’t worn in two years, the books you never intend to read, the kitchen appliances and dishes you never use, and the family heirlooms you keep out of duty.
- More savings – If you own your home with equity, a sale will result in a profit, and you can reinvest into something smaller while keeping the rest in savings.
- More joy – According to HomeAdvisor, “Having fewer financial and maintenance-related responsibilities will allow you to focus more on your happiness and less on your home.” For example, you can invest in your life by going on that hard-earned vacation.
Find the Right Home
After you’ve decided to downsize, the next step is finding your new home. It’s not enough to find a home with less square footage — you’ll want to make sure your new home comes with all the benefits associated with downsizing. If you’re living in a five-bedroom home in a small country town, downsizing to a one-bedroom apartment in the city probably won’t be cost-effective.
Consider the reasons for needing to downsize, such as tax considerations, smaller outdoor spaces, costs, and needs for renovations. Then, evaluate what you want, which may be things such as community, new appliances, or locality. Utilize online sources when searching for listings to narrow down your options, and then schedule tours of your favorite homes.
What to Keep and What to Toss
The moment you’ve decided to downsize to a smaller home, be proactive indecluttering. Smaller living spaces will also mean you’ll have less space to house your belongings. Start by going through your items and decide whether you want to take them, give them away, sell them, or trash them. Above all, if at all possible, avoid storage. The belongings you take with you should be either meaningful or items you use all the time.
Consider giving items to loved ones or donating gently used items to people in need. Conduct a cost-versus-value analysis when it comes to selling your belongings, and determine whether the time it takes to sell the item will outweigh the amount you can bring in. Perhaps a half-day garage sale will bring in a good amount of money, or maybe you have a few things you can sell online to bring in some extra revenue. Finally, all the items that don’t belong in any of the other categories should be trashed or recycled.
There’s no time like the present to live life to the fullest. By downsizing, you can reap the benefits that come with it. So, evaluate the benefits when searching for a home that will meet your desires and embrace the decluttering process and free yourself from excess items. Downsizing is a great way to begin a new chapter, and the best is yet to come.
Guest article written by:
Mike Longsdon
ElderFreedom.net
mike@elderfreedom.net
Photo Credit: Pexels
Posted on
December 13, 2018
by
Tibor Bogdan
Quite often, purchasers don't know the importance of Title Insurance.
Here are some risks that Title insurance covers:
- Unpaid strata assessments
- Work orders and/or zoning setbacks that are non-compliance
- Liens, encumbrances, or defects in the title to a property
- Property Tax Arrears
- Defects that would have been revealed by an accurate, up-to-date survey
- Governmental Authority forcing you to remove or remedy your existing structures or any part of them, other than a boundary wall or fence, because any portion of your existing structures was built without obtaining a required building permit
- Another party claiming an interest in the property
- Impersonation, forgery, fraud, duress, incompetence, incapacity
- Title is unmarketable, which allows another person to refuse to perform a contract to purchase, to lease, or to make a mortgage loan
When a property is purchased, Title insurance can be purchased for a one-time fee. Depending on the premium you pay, it can protect you and your lender, or your lender only. A title insurance company issues the policy, and the policy remains in effect for as long as you own the property.
Note that a new policy may be required if you change mortgage lenders. To obtain a quote on Title Insurance in BC, call 1-866-570-2206 or visit https://www.fct.ca/contact/ for a list of locations in all of Canada.
This information is being provided to assist in the planning of a home purchase. It is not intended to be legal advice and the information set out may not be applicable in all cases. In some situations, a purchaser may be required to pay for other additional expenses such as a second mortgage, an assignment of rents, power of attorney, or independent legal advice.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
 What is a pre-sale?Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.
Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.
If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.
The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.
Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.
A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.
If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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