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Vancouver’s Turbulent Housing Market

vancouver real estate

Analysing the on-going hurly-burly situation of Vancouver’s real estate market, it can be predicted that the cluster of black clouds that has jam-packed the sky of the city will not permit the sky to become clearer and sun to rise anytime soon.

The incessant anger, frustration and rage of Vancouverites towards the housing market of the city have led to some intense situations. From the rise in prices to a shortage in supply of houses and from 15% tax imposition on foreign nationals to the abolishment of the foreign buyer tax on people with work permits, folks have seen it all; and believe it or not, this has given rise to a blame-game.

The Blame-Game

When the first-time buyers were priced out of the real estate market, it gave rise to an array of emotions, strong reactions and never-ending blame-game. The foreigners, the speculators, the real estate agents, Christy Clark, the rich and the poor, all have been blamed for the out-of-control Vancouver housing market.

But out of all, one aspect that has got overlooked in the debate is that the house owners in Canada are the most tax subsidised payers.

Tax Programs to Evenly Distribute British Columbia’s Wealth

The tax program that we’re going to discuss first is the Home Owner Grant. The Home Owner Grant enables the homeowners in Metro Vancouver to base their decision of whether to sell or not sell their real estate properties.

Every year in January a huge wonder game takes place that questions how much B.C. will change the exemption to.

The taxpayer of B.C. pays some of its residents an amount of $570 towards their property taxes every year, but in the case of an unsubsidised market, the house owners might be persuaded to sell their properties. In a housing market where the shortage of supply is often argued as a reason for mountain climbing prices, the B.C. government lays down an unwarranted restraint on the housing market’s original supply of listings with Home Owner Grant.

The next tax program is the property-tax deferral program. This is the only program where when a person turns 55, he/she can apply to have all of their property-tax delayed until the time they sell their home. When one has applied for the program, the B.C. government pays the taxes for the applied and charges a relatively low-interest rate of 0.7% for the benefit.

This way, it would become mandatory for some house owners to sell off their real estate properties, similar to how it is in other housing markets around the world. It is held that downscaling or losing your house is in a way a natural order of a free, housing market and presently the province’s government energetically interferes with this happening.

Further, it has been predicted that during the coming financial year, the Home Owner Grant will cost $857 million to B.C. taxpayers.

In the month of January, Christy Clark’s government presented two taxpayer-funded programs into the housing market – the B.C. Home Owner Mortgage and Equity Partnership. With this, it becomes every individual’s financial concern to possess their primary house at the very least. These programs will cost B.C. taxpayers $728 million during the coming three years. It is further expected that the program would add 1,400 buyers to the B.C. housing market in the future years.

Thus, the government subsidises the housing market around $1.25 billion every year. The two programs impact supply by providing an incentive not to sell their properties, and the other creates demand by motivating individuals to purchase.

The only way to calm the uncontrollable housing market is to put a halt on subsidising homeowners with these financial incentives in order to increase the supply for sale.

Property tax deferral program
Number of Property Tax Deferrals has increased year by year. Source: Metro News

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The Story of the Last Month – Low Supply and Tumbling Sales

Justin trudeau in Vancouver
Justin trudeau in Vancouver

The month of February has limited days and so was the housing supply and home sales across Vancouver in the month – Limited! What a coincidence!

The residential sales in Vancouver dropped dramatically in February 2017 juxtaposed to last year’s record-breaking leap. According to The Real Estate Board of Greater Vancouver, the reason for such a low housing sale is a limitation in the supply of listings and an abnormally snowy start to the year that had an effect on the Vancouver housing market.

There were 3,666 new listings in the February month; this is an almost 37 % fall from February 2016 and an 11 percent decline from the month of January. According to the board, this is the lowest number of new listings registered in February since 2003.

condosinyaletown.com
Vancouver listing February 2017 vs February 2016

The Board mentioned that the housing sales amounted to 2,425 in February, which is approximately a 42% drop from the same month last year. Nevertheless, the residential sales went up an almost 59%, compared to the month of January 2017.

The board further shared more information about the market drop in February. It said that the number of housing properties that got transferred in the month was 7.7%, which is just below the 10-year sales average for February.

The President of the Board, Dan Morrison remarked, “If you go to the store and there’s no bread on the shelf, you don’t buy it.” He further said, “While home sales are not happening at the pace we experienced last year, home seller supply is still struggling to keep up with today’s demand. This is why we’ve seen little downward pressure on home prices, particularly in the condominium and townhome markets.”

Morrison indicated that for months individuals had held a “wait and see” approach towards the housing market that had already begin to cool off before the foreign buyer’s tax was announced by the British Columbia government in Metro Vancouver in August 2016.

Although, Morrison has hope for he mentioned that the signs indicating the return of confidence in the Vancouver real estate market have surfaced. The sales-to-active listings ratio in February was 31.9%, a 10 percentage point surge from the first month of 2017.

Greater Vancouver Condo Values Rise & Benchmark Prices for Properties

The price of condos and townhouses in Greater Vancouver is rising despite of the sinking sales. As discussed above, the sales fell to a considerable extent as compared to last year.

The MLS® Home Price Index composite benchmark price is a representation of the cost of a typical property in the city. The present benchmark price in Metro Vancouver is $906,700, low by 2.8% over the previous six months.

The Real Estate Board said that the benchmark price for detached housing properties is $1.47 million. This figure showcases a 6.5 percent drop over the preceding six months, and there has been no change in the numbers compared to January 2017. On the other hand, the benchmark price for condominiums was $526,300. The price has taken a 2.3 jump over the previous six months.

Let’s sign off by using a statement by Tom Davidoff regarding the matter, “Certainly; I don’t think we’re done with the downward pressures. They still exist.”

Now, let’s see how the coming months for Metro Vancouver’s real estate market unfurl.

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Snowfall warning in effect for Metro Vancouver

Drive Safe everyone!

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The Ups And Downs of Vancouver Real Estate Market

Past Scenario

Housing in Vancouver was one of the biggest stories of 2016. A year ago, the Vancouver real estate market was described as a hot and sizzling market. The housing prices in Vancouver took a great leap and mushroomed over the year. These high rates were considered to be a boon for some and bane for others since after the evaluation, the cost of properties increased by double digits; in a few cases, the costs were raised by 40%.

In March 2016, the yearly homelessness count in Vancouver showed the highest number of people sleeping outside in ten years. Further, in June, the value of single detached houses and condos shot up by 40 and 25 percent respectively. The Finance Minister, Mike de Jong made an announcement of imposing 15 percent tax on foreign nationals. Along with this tax, the Vancouver city was also introduced to empty homes tax and new policies concerning the rental markets. The drastic increase in real estate prices affected the rental market as well.

The Present Situation

In the words of Dan Morrison, Real Estate Board of Greater Vancouver (REBGV) president, “It (2016) was an eventful year for real estate in Metro Vancouver. Escalating prices caused by low supply and strong home buyer demand brought more attention to the market than ever before.” Moreover, the Metro Vancouver real estate market experienced its third highest selling year on record in 2016, behind only 2015 and 2005.

Though, the recent updates have shown that the total number of houses vended in Greater Vancouver dropped more than 22 % in December in contrast with the preceding month. President Dan Morrison said that sales might have slowly risen, but the property costs have not dropped significantly.

According to the calculation, made by the real estate board, the benchmark price for apartments has escalated by 27 % from July 2015 to July 2016.  On the other hand, the price for townhomes has hiked by 29 percent, which is equal to the upper range from B.C. Assessment. Morrison said that it would take a little while for the market to familiarise with the changes that are taking place, and that the limited supply is the reason for a rise in the prices.

Future Forecast

According to Royal LePage, CEO Phil Soper and the latest predictions by real estate groups and financial institutions, the long-awaited corrections required in Vancouver’s inflamed housing market may be just around the corner. It has been forecasted that prices are headed for a double-digit decline in 2017 as the purchasers are dropping out of the housing market.

A report released last month by the B.C. Real Estate Association anticipated an 8.7% fall in housing costs in the area for 2017 with the average MLS value dipping from $1.03 million in 2016 to $940,000 next year. Similarly, in the month of October, the National Bank foretold a 20% drop in the rate of detached houses in Vancouver, a 9% drop for attached houses, and a 5 % decline in the prices of condos.

To these predictions, the economist at University of B.C., Tom Davidoff stated that ‘There’s no question the market is getting buffeted by headwinds.’ He also said that these mid-range conjectures are targeting on a modest correction after months of sinking sales in the Greater Vancouver market.

Besides, for Davidoff, Canada will always remain a prized destination and haven in a tumultuous world. “Having a stable democracy with a beautiful environment, over time, is going to be a real strength of Vancouver,” he said.

 

December Vancouver Real Estate pricing
December Vancouver Real Estate pricing. Source: REBGV

 

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Most Expensive Cities to Live In 2016

All are aware of the fact that the sun rises in the east and night falls in the west. Now, whichever part of the world you live in, this fact doesn’t change, but the aura, taste and stories of every city differ all over the world. Hence, every city has its own philosophy and certainly different ways of philosophizing.

Now, to look at the pragmatic side of the picture, the cost of living in a particular city has divided the cities into various segments. The most expensive cities to live in 2016 will be explored here.

According to the latest annual Cost of Living survey, conducted by the investment consultancy firm Mercer, the below-listed cities are the world’s most expensive cities.

1. Singapore

Marina Barrage in Singapore
Marina Barrage in Singapore. Credit to Jason Goh

With beautiful locations and the largest business centre in the world, Singapore, the only island city-state has become one of the most expensive cities in the world to live. With high-rise price tags,

With beautiful locations and the largest business centre in the world, Singapore, the only island city-state has become one of the most expensive cities in the world to live. With high-rise price tags, the cost per square metre of buying an apartment in Singapore is about 23,426.05 S$.

2. Zürich , Switzerland

Zürich , Switzerland
Zürich , Switzerland. source: Tourist Destinations

Zurich is a global city that has the world’s largest banks and financial institutes. According to the survey, Zurich has the best standard of living life. The current price to afford an apartment in City Centre, Zurich is 13,071.43 Fr. per square metre.

 

3. Hong Kong, China

Hong Kong Skyline
Hong Kong Skyline. Credit to Unsplash

Hong Kong is officially known as a special administrative region of the People’s Republic of China. The city boasts of modern architecture. Hong Kong has sky-high prices to match the sky-high setting. In Hong Kong, the present price of an apartment per square metre is 185,282.05 HK$.

4. Geneva, Switzerland

Geneva,Switzerland
Geneva, Switzerland. Credit to http://www.iises.net/current-conferences/academic/32nd-international-academic-conference-genevaIISES

For living in Geneva, you have to spend some extravagant prices for entertainment and pleasure, yet a falling currency has compensated its cost of living for emigrants. To buy an apartment in Geneva, the price you will have to pay is 12,500.00 Fr. per square metre.

5. New York, U.S.A.

New York, USA
New York, USA. Credit to A.H.


Economic Intelligence Unit stated in its report that
“a stronger dollar and localised inflation mean that New York continues to become more expensive relative to its global peers”. 13, 131.47 $ per square metre is the price that you will have to pay to purchase a property in City Centre, New York.

There are other cities including Los Angeles, Tokyo, Shanghai, Seoul, Copenhagen, and Vancouver with the exorbitant rise in prices that have also made it to the list of world’s most expensive cities.

Have you already started dreaming of living in one of these cities? Hope your bank balance is deep enough to fulfill your grand dreams.

Factors That Led These Cities to be on Top of the List

The survey was based on a comparison between product prices to conclude the world’s most expensive cities. The assessed products included food, drinks, transport, clothing, housing, housing goods and recreation. Further, New York City costs were used as a relative baseline and US dollar as the relative currency.

Before the survey was released, it was preconceived that the western countries will hold the maximum places on the list, but the south-east Asian and African countries have surprisingly hit the top positions on the list.

On the other hand, the US dollar has fairly risen in comparison to the Canadian dollar. The rank of cities in Canada has persistently dropped because of the feeble Canadian dollar. Canada’s highest-ranked city, Vancouver clearly hacked down 23 positions lower. Since the cost of living in Vancouver has dropped, people’s hopes for living in this city have awakened once again. After all, the city has always been ranked amongst the top livable cities in the world.

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B.C. First-Time Home Buyers Program: A Boon or Curse?

vancouverbc-december-15-2016-b-c-premier-christy-clark
Premier Christy Clark announces a new program in Surrey on December 15th. Source: Vancouver Sun

Good news for those who have always wanted to buy a house, but could only fulfil their desire in a dream. Excited to know the entire talk, who wouldn’t be? After all, it’s about your new home that you are going to own and not the one that will be rented! The program will take head from Jan, 16 as the B.C. government offer down payment loans to the first time home buyers.  

Showers of opinions in the form of another real estate debate are attracting tremendous views on air as soon as the news hit the Vancouver housing market. Read the entire discussion worded here:

Highlights of the Program

The first time home buyers plan called the B.C. Home Owner Mortgage and Equity Partnership program has listed different eligibility criteria to provide its benefits to particular people in need. Given below is the checklist that your documents and potentials should match:

  • The 25-year loan is free from interest until first five years and will cover up to a maximum of $37,500. This means you have to pay interest on the current rate after five years.
  • Your down payment amount should be equal to the loan amount.
  • You should be a Canadian citizen or permanent resident for five years and have never previously owned property.
  • You should have lived in B.C. for at least one year.
  • You should be free from any legalities of owning an interest in the residential property at any point in time and in anywhere in the world.  
  • The value of the house you want to purchase should be less than $750,000.
  • Your document credentials should help you in qualifying an insured high-ratio first mortgage for at least 80 percent of the acquisition of prices.  
  • Combined gross household income of you and your home partner should not be more than $150,000.

An approximate figure of 42,000 B.C. residents has been expected to get benefits from the three-year program. Furthermore, the housing program will lessen the effects of the new mortgage rules and help first time home buyers to sustain competitively in the housing market.  

bc-first-time-home-buyers-program

 

All about the Demand and Supply

The market is growing higher and so do the pricing because of the unmatched fulfilment of demand and supply. As a result, sales of expensive single-family homes are falling.

However, as per the senior economist Bryan Yu with Central 1 Credit Union, trade of homes in the more affordable condominiums and town home segments of the market remains full of life. He also stated that the recent findings on program impact had thrown a considerable light on the improved local citizens’ home purchasing abilities than before in the condo and town home market. Nevertheless, the program is playing a significant role in heating further the B.C.’s real estate market which is already strong.

Concerns or Politics

Premier Christy Clark positively reviewed the program by stating that it will wipe out the stress of saving high down payments of the middle-class British Columbians.  The primary concern she raised revolves around the pocket weight and saving obstacles of an average home buyer.

Clark further said that for many first time home buyers, getting past that down payment and saving $25,000 or $50,000 to buy a new home is just impossible.

Tom Davidoff of the University of B.C.’s Sauder School of Business holds an entirely different opinion around the scheme. He settled the program as an amalgamation of bad economics and a step in the wrong direction.  He believed the program to be an attempt by the government to support the real estate market that holds a risk of severe disappointment by coming 2017.

New Democrat David Eby, the Opposition’s real estate critic, resolved a negative approach towards the initiative. He said that the plan increases the debt burden of the home buyers when the government should be constructing affordable accommodation on provincial land.

How people are taking it?

The current scenario hits positive responsiveness among developers, mortgage brokers, the real estate business and some housing forecasters in B.C. Especially, those with insufficient income and savings are looking forwards to getting enrolled in the first time home buyers program as soon as it takes ground. Furthermore, industry experts argued that the plan will help to speed up the entry into the real estate market of those who qualifies for the mortgage.  

The primary concern that is bothering all is whether the program will reveal out as a political stunt, caused only to attain public preference and favorability or will it be the “real thing”, and will the Vancouverites housing dreams come true just the way it’s been pictured by the program founders and the ruling politicians.

Until now, it seems that the first time home buyer scheme will be a boon and not a curse for the residents of B.C., yet only the future can decide the real outcome.

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2+ bedroom for Less than 250K in Greater Vancouver - Really?

In the past 10-Years, we have seen an unbelievable increase in the housing price and that makes this beautiful lower mainland unaffordable.  Vancouver is World’s 3rd Most-Unaffordable city  .

2-Bedroom is Standard

Minimum 2-bedroom suite becomes standard for people that lives in lower mainland. On an average, most people pay from $1200/month to $3500, based on the location and the condition of the suite.  We have discussed about  buying a home than renting one i  in the previous topic, and we would like to further emphasize that Vancouver is not unaffordable anymore.

Today, I am going to list out the homes that are 2-bedroom AND less than 250k, and yet convenient for majority of people. (NOT areas such as Maple Ridge, Pitt Meadow, Surrey, Langley).

 

There aren’t many, but here are the list  (Dec 19, 2016)

106 8040 Blundell Road, Richmond, British Columbia V6Y 1J8

$199,999.00

  • 15 minutes walk to the Skytrain station.
  •  Shops, gas stations etc are all nearby

property-17657696-largephoto-3 property-17657696-largephoto-10

 

306 8040 Ryan Road, Richmond, British Columbia V7A 2E5

$193,000.00

  • 3 bedrooms!
  • 1133 sqft!

property-17647319-largephoto-2 property-17647319-largephoto-8

 

103 9128 Capella Drive, Burnaby, British Columbia V3J 7K3

$239,900.00

  • 15 minutes walk to Burquitlam skytrain station

property-17598862-largephoto-1 property-17598862-largephoto-5

 

 

Looking for MUCH BIGGER space within 250k?

It’s definitely possible but you may need to look into mobile home.

Here’s a mobile home that’s currently in the market, that is over 1500 sqft. Please keep in mind there’s a pad rent of couple hundred dollars per month (usually includes water, sewer, garbage and taxes). Also, you do not own the land of the property.

36 201 Cayer Street, Coquitlam, British Columbia V3K 5A9

property-17647366-largephoto-1property-17647366-largephoto-3

 

 

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Own a Home under $300K in City of Vancouver

Are you tired of renting but cannot afford to buy a place because of the crazy housing market in Vancouver? At the main time, you would also like to live by city center? The truth is that there are always SLIGHTLY REASONABLE homes out there as long as you have an OK job to get a mortgage, as well as updated information about the market.

Here are the reasons why you should probably thinking about OWNING A PLACE.

  • Housing price never go down in the long run, and your salary may not catch up with the increase in housing price.
  • You rents and never own a place. What about you pay the “rents” to the bank and you can actually own a place?
  • No landlord can kick you out.
  • Worse case scenario, sell the home if you really need some cash, and you can never do that when you rent.

 

How about $300k for a home in city of Vancouver ? Does that sound a little bit more reasonable?

You get 10% down payment and the rest you can mortgage.

mortgage
The mortgage rate is approximate based on the current 2-year variable rate. Please check with your bank or mortgage specialist for a more accurate rate. Calculation is completed with the Scotia Bank mortgage calculator.

Looks like you can own home with just a little bit over 1k. I am sure there are many people that pays 1k just for a single room, or for a tiny suite and old neighborhood.  What if I tell you that there are homes under 300k?

Here are the home under $300k that are available for sale in city of Vancouver (YES, it’s Vancouver Vancouver, not Barnaby, Richmond, Surrey…).  – as per December 15, 2016

109 2239 Kingsway, Vancouver, British Columbia V5N 0E5 (Built in 2011)

$253,000.00

property-17560857-largephoto-2 property-17560857-largephoto-4

 

202 930 E 7th Avenue,Vancouver, British Columbia V5T 1P6

$259,000.00

property-17641706-largephoto-1 property-17641706-largephoto-6

1003 3380 Vanness Avenue, Vancouver, British Columbia V5R 6B8

$285,000.00

property-17657701-largephoto-1property-17657701-largephoto-8

114 1149 W 11th Avenue, Vancouver, British Columbia V6H 1K4

$285,000.00

property-17527161-largephoto-6 property-17527161-largephoto-14

 

1003 3438 Vanness Avenue,Vancouver, British Columbia V5R 6E7

$299,000.00

property-17595833-largephoto-3 property-17595833-largephoto-6

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Vancouver Real Estate Market Update – December 2016

Vancouver’s High Housing Prices

This year too, Vancouver made it to the top on the list of high housing prices. In 2016, the average cost of a home in Canada climbed the peak in Metro Vancouver, at $864,556. This means that Canadian families who want to buy a home in that radius must earn nearly $140,000 per year.

According to the latest census, the median household income in Canada is $78,870. Those families who are obtaining the median income can have the wherewithal for a house priced between $460,000 and $490,000 – faintly exceeding bisection of the cost of the average housing price in Metro Vancouver.

canada-housing-price
Overview of average housing price in each major city in across Canada. Source: CTV News

Empty-Homes Tax – A Ray of Hope to Cool Off Housing Market

After public consultation, Mayor Gregor Robertson had revealed a proposal for a one percent tax on empty homes. Now, the proposal is approved by the city council, and thus, it has become the first of its kind in the country.

All non-principal houses and unoccupied residential land that are empty for the period of full six months of the year will be liable to pay one percent empty homes tax. All homeowners in the city will have to self-declare if a property is the typical place they call home, eligible for immunity or vacant.

Robertson said, “I just want to be really clear: Almost all Vancouverites will not pay the empty homes tax. This is only going to apply to those with second or third homes that are sitting empty most of the year.

Undergoing renovations, condos and townhouses that have restrictions on rentals, and homes whose owners are in medical or supportive care will be exempted from the tax.

Such a tax on empty homes can address the spinoff effects of a red hot housing market.

Solution to the Rental Housing Crisis

Vancouver is hopeful that empty homes tax will boost the city’s scanty supply of rental stock. Presently, the rental vacancy rate is 0.6 percent – ensuing in some of the maximum rents in Canada. City data puts forward that more than 10,800 homes are unoccupied and another 10,000 are left vacant for an extended span of time.

Robertson quoted, “Vancouver is in a rental-housing crisis.” “The city won’t sit on the sidelines while over 20,000 empty and under-occupied properties hold back homes from renters struggling to find an affordable and secure place to live,” he exclaimed further.

The city is of the view that the rental vacancy rate would upsurge to 3.5 percent with an upturn of 2,000 rental properties.

The empty homes tax will come into effect at the beginning of 2017. It will be based on the assessed value of the property. This means – the person owning a $1-million home would pay an extra $10,000 a year in taxes.

Vancouver Homes Selling For Less than Purchase Price

Often, Vancouver real estate is acclaimed for exceptional returns. However, recently, this blooming road took a new turn when three single family detached homes bought were listed for less than the owners paid for them. At times, benchmark prices slump due to the distribution of prices, but this isn’t the situation here since these homes were purchased just 8 months before, that owners are selling at a subordinate price.

Surely, the inflated housing market of Vancouver isn’t crashing but isn’t exactly the booming market of the previous years. Does this mean that in Vancouver real estate market, affordability is setting in? Fingers crossed! With British Columbia’s new 15% property transfer surtax on foreign nationals and foreign-controlled corporations, the house sales have become sluggish, and that, in turn, will hopefully lead to moderating prices.

November 2016 Real Estate

vancouver-real-estate-nov-2016
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Planning to buy your Dream House in Yaletown? Trust the experts!

The Present Scenario

Vancouver’s real estate market is heating up, with its recent highest annual price increase recorded at 23.4 per cent. The high real estate prices secure the finances of present-day homeowners but are frustrating for the potential first-time buyers.

According to the recent updates, the Canadian real estate crisis has jerked up parallel to the warning signs of danger. The ability to afford a house in the Canadian city of Vancouver has become a difficult process. The chief economist of Canada Mortgage and Housing Corporation (CMHC) also stated in a news release that today the cost of buying a property is higher than the level of personal disposable income and population growth.

For the first time ever CMHC, the federal agency will be issuing a “red alert” warning for the entire real estate market. The agency believes that the housing market is in need of significant price correction because the cost of homes and debts are on a continuous path of growth.

 

New Mortgage Rules – A bane for first-time buyers

The recent additions to the mortgage rules are real hindrances, particularly for the first-time home buyer. According to the new mortgage rules, a potential buyer with insured mortgages will have to go for a stress test. The stress test is to ensure the financial stability of the borrower in case the rate of interest rises. But the key positive factor in this situation is to secure house owners from taking on excessive debts. It is good news for the fence sitters, who have been waiting for real estate market to soften; now they can buy the house they always wanted too.

Though the people of Vancouver are overwhelmed by the high housing prices, the new move by British Columbia of charging an additional 15 per cent tax on foreign house buyers is highly supported by the residents, especially those in Yaletown.

cmhc-new-10-down-payment-chart2

Yaletown – Still a Ray of Hope for younger Vancouverites

Yaletown is a stylish, historical region of Vancouver, BC. It has a sophisticated and cosmopolitan ambiance that makes it an attractive place to buy a new house. But the housing in Vancouver, BC is out of control. The hike in real estate costs is majorly affecting the young people of the city. For the young natives of Yaletown, housing has become a luxury item and the government is taking a lot of time in arbitrating this crisis.

The contemporary scene of the housing market is frustrating for an average Vancouverite. The young natives in the city have to save more than past times for even a 20 per cent down payment. They are trying to squeeze themselves into the place where they were born and had invested in for so long.

According to Paul Kershaw, founder of Generation Squeeze, the Vancouver’s housing crisis has hit “code red.” The city might lose its people belonging to the younger generation who are the real assets.

Despite the dire situation, many experts believe that the real estate market in Yaletown and the rest of Vancouver will retain its healthy status in the near future. Expert economists in BC have cohesively predicted the same. This poses as a promising situation for youngsters who don’t have to save a lot to invest in a house.

 

Lifestyle Audits by CRA

The skyrocketing real estate market of Vancouver has highlighted individuals who have a luxurious lifestyle and an expensive house, but their earnings are of average category. The Canada Revenue Agency plans to investigate into the matter and their key area of inquiry would be “lifestyle audits.”

Lifestyle audits will include the examination of highly-priced homes, expensive cars, and assets, which will be compared to the income reported on tax returns. The audit will confront the culprits and with a committed execution, the resulting state of Vancouver’s real estate will bring back the brighter days of the city’s housing market.

In the current risky conditions, buying a house or any other property should be dealt with great care. At Yaletown Condo Listing, we customize a plan to meet and exceed our client’s needs. Get in touch with our realtors Tanya Jakubec when planning to buy a new house in Yaletown.