Luxury waterfront property in Oakville !

This isn't going to help those empty condos that the Chinese love so much.

"Vancouver mayor promises new vacant home tax by 2017"
Vancouver mayor promises new vacant home tax by 2017 - British Columbia - CBC News


I recall reading an article about business owners in these condo's hurting because they were duped into thinking the condo would be full of residence, only to find out that most of the units remain empty as foreign investors would rather the place be empty and "new" than rented.

 

I expect that you are right. It might well be wiser for a foreign investor to forego rental income than have to deal with some aspects of the BC landlord tenant legislation. A small tax will not be an incentive to rent out the condo or house that has been purchased as a commodity rather than a residence or revenue source. And, there is the problem of determining which condos or houses are vacant or "under utilized" to the extent that that should be taxed.

 

Very true. I'm not familiar with the landlord legislation in Vancouver.

This article seems to say the legislation is already passed and it's $10K per year.

http://www.calgaryherald.com/vancouver+slaps+year+empty+homes+about/12372683/story.html

 

Looks like the purpose is more to track and gather information than do anything about the problem directly.

$3.65M in taxes per year as a penalty will definitely motivate some honesty. Smart idea.

 

I understand that it's 1% of the assessed value, so could well exceed $10K / year for many of the vacant houses and condos. Good tax grab, if the city can prove the property should be subject to the tax. Properties that are listed on AirBnB for short term rentals (< 6 months) might be easy targets. Other vacant properties might be much harder to catch and enforce, e.g., the city can't set rental rates, so presumably an owner could "offer" their property for rent that insures there are no renters. And, owners might be prepared to pay an additional 1% to to keep their property investment unoccupied - consider it akin to a fund management fee. I agree, the tax probably won't do much about addressing any rental shortage or affordability.

 

You maybe correct, however Vancouver and Toronto are 2 different markets. Toronto has a larger immigration, 150k a year last I heard. Trends are showing families starting to sell their houses and buy condos in the city rather than sell and move out. When the US housing bubble burst there was a slow down of sales but prices did not drop by anything significant. I have a feeling Toronto and surrounding areas will still see growth to double where they are over the next 8 - 10 years, with some slowing down here and there but no massive drop in price..

Also don't forget Toronto is going through massive growth, 2nd fastest in the world I believe, this isn't starting any time soon. Stock of tower cranes are empty, I've heard up to 4 year wait lists for available ones. Factories which build cranes can't keep up with demand. Sounds crazy..

Then again I maybe completely out to lunch lol

 

Yes, I expect that you are correct that Vancouver and Toronto are different markets, subject to different forces on development and prices. Speaking personally, I'm pleased to see some decline in the Vancouver market and gladly surrender the title of Canada's most expensive real estate to Toronto.

 

If you look at Canada real estate prices in US dollars some regions already down more than 20%.

http://cdn.tradingeconomics.com/charts/canada-gdp.png?s=wgdpcana&v=201610011445r&d1=19160101&d2=20161231

Canada GDP in US dollars is showing a cliff dive!

Look, Canada gov has a choice now. Either they let the currency collapse down to 30-40cents and save the 'nominal value' of homes by reducing the real value of the debt or pray for oil to come back to $100. Either way Canadians are getting POOR(considering nothing nice is made in Canada and has to be imported).


For most of Canadians all of their free income is now going to insurance, real estate and interest on loans. So no demand to drive employment! Look at the unemployment rate now its almost double the US. Remember when everyone on here a few years ago was all smug about beating America. Hah!

Lets all ignore(being poor) and just dance with Trudeau at PRIDE parades!

 

Toronto has no wage growth occurring. Tell me what exactly is 'made in Toronto'? The only way to keep Canada from cratering into debt deflation is by driving down the value of the Canadian dollar and spurring huge inflation(remember Canada imports everything valuable and exports wood pulp and oil sand). Compound interest was the reason the US credit bubble collapsed, does math not apply to Canada? Canada GDP in nominal terms is growing at 0-2% per year but interest rates on most debt is 2-4 times that. What does that mean? It means all of Canada growth is being gobbled up by the financial sector in the service of debts + more. Under this situation you must have a shortage of spendable money. Spending = income, so with reduced spending = unemployment. Canada youth unemployment in 'booming' cities like Toronto is 20%. Those aweful communist inspired glass/concrete towers popping up in Toronto like an eyesore are masking the cratering living standards/incomes of the vast majority of the population.

If you drive down the value of the dollar and boost nominal wages, people will be able to breath and pay their huge mortgages/credit cards/credit lines.

So yea Ferraris are going up up up in Cad dollars as is anything that is imported(which is anything nice!). Canadians are going to need to get used to being poor in order to save the value of homes(and bondholders). Can most even afford Florida these days?

 

I was quite happy being Canada's 2nd most expensive place. Lol

 

That may all be true, my conversation was about Van vs TO and the housing price growth. We all know things aren't good out there, still doesn't change the fact housing prices in TO are still on the rise for the foreseeable future and won't be crashing to previous pricing.

 

I say this and mortgage rates get hiked next day... Ugh

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Looks like I'm going to be listing the house. Current suggested listing price is now 700k. That gives me 500k in equity. I'm going to down size for a bit, buy a town house cash, and then after a couple of years rent out the town, and buy another property to Iive. Have the rental pay for my next homes mortgage. Going for the 2 for one deal on this one. Does this make sense?

 

Good plan.
Remember maintenance, vacancy, etc.
Long term funds for roofs, driveways, etc.
Real estate commissions,
Legal fees,
Appraisal fees,
Insurance,
Land transfer tax,
Property tax
Administrative time
Accounting fees

Just of the top of my head. Probably more. Make sure you cover it all in your budgets and enjoy!

 

They are saying the market has about 24 months left in it. Although we have heard the before.

 

I like the idea, but it only works if you plan on remaining downsized.

Any income you profit will be lost on your next purchase, assuming prices continue to rise the way they have been.

 

New condo listing in Oakville on the waterfront at $4.65mm on the old Gilgan Estate.

My bet is this property will sell quickly at, or near, full price. These places are stunning.

https://www.realtor.ca/Residential/Single-Family/17802136/11---10-MAPLE-GROVE-Drive-Oakville-Ontario-L6J0E1-Eastlake

 

Exactly.
As much as property values have gone up, rents haven't, and won't be allowed to.
Not to mention the headaches of being a landlord (first hand experience).
The problem with moving up the property ladder is, while your place goes up, so does the next one you buy, unless you move to a vastly different location.
You'll also get hit with capital gains tax when you sell the second property, as CRA have gotten better with tracking this stuff than they did 10 years ago, when it was more or less honour system. I deferred most of that by making a huge RRSP contribution in that tax year (if you have the room).

 

It's an NDP proposed bill so I would take it with a grain of salt, but the discussion might be on the table with the elections not too far away.

Ontario NDP bill would extend rent control to units built after 1991 - The Globe and Mail

 

Gorgeous homes! Those are unique and I would think they are all sold out already.

 

My company did work in one of the units recently. I was hired by the owner who needed to do custom closets to sell the place. I dont recall the details, but there was something weird with the condo corp. I seem to recall something about the original developer went bankrupt, so someone else stepped in to complete the project - to less than what was originally promised to the owners.

They also own all the land, yet to be developed to the west of the condos. But thats been put on hold.

The units themselves are really awesome. Each unit has a private garage within the underground, and elevators to get to their unit. Both a nice touch or a condo development
.