BC 2009 Property Tax Assessments

Yep, property tax assessments are out and the Vancouver Sun asks how did you do?

This year — unlike in January of 2009 when the system was turned on its ear by political interference — it’s fairly easy to figure out if you’ll win or lose when your tax bill comes out in July.

Let me illustrate with an example that, on the surface, looks scary: Say your assessment notice shows a 15-per-cent increase in the value of your home or business. What to do?

First, don’t panic. Take a moment to read this column, check our website and figure out what this really means.

You’ll find a 15-per-cent increase is no big deal if your home is in New Denver, Kitimat or Clearwater, or your business is in Peachland, Sparwood or Smithers. Because in these places the average assessment — not just yours — is up about 15 per cent. So the impact will be nil. Any hit on your tax bill in July will be due solely to increased municipal spending.

Phew!  But it’s a different story if you own property in a major urban center.

However, if this hypothetical 15-per-cent increase is for property in most urban centres — almost all of the Lower Mainland, the Capital Region or the Okanagan — then now might be a good time to panic. Because the average in these places hovers just a few points above or below zero. And if you have a significantly higher-than-average change in value, you get a bigger tax bill.

It’s how the change in your assessed value compares to the average for other properties in your community — not the absolute value of your assessment — that matters to your tax bill.

Well, I guess we’ll just have to hope that Vancouver City Council doesn’t want to raise any more tax money in the near future.  You can check the assessment online here if you haven’t received any mail yet.

UPDATE: Don and Larry point out that the REBGV stats package PDF for December is now available online.

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

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[…] EconomicBoom2010 at vancouvercondo.info 5 jan 2010 12:22 pm – “My property got assessed 20% higher than last year! Wooooohooo! I’m going to refinance for another house while you cry-babies live in the dumpsters.” […]

rp
rp
10 years ago

Salaries and prices in Japan:
http://www.worldsalaries.org/japan.shtml http://www.tokyoprices.com/

1 CAD = 90 JPY. So it is expensive, but not insane. Tokyo rent is ~800 for a 1 bedroom apartment. Vancouver is catching up quick.

Anonymous
Anonymous
10 years ago

@Wreckonomics:

Its purchasing power we are concerned about. People in Japan makes 20,000 yen, but it cost them 2,000 yen to buy a can of coke.

kansai_92
kansai_92
10 years ago

Western and European standard of living is being subsidized by China and other developing nations.

They are consuming less so that we can consume more.

Thus we are living on credit while they are amassing savings.

China is already trying to diversify out of the dollar. In recent months we've seen them sign bilateral agreements with other nations that bypass the US dollar completely.

They are also using these reserves to purchase hard assets and long term contracts for resource rights.

What happens when you continue living on debt?

Eventually the one lending you the money ends up owning everything that used to belong to you.

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[…] January 2010 · Leave a Comment taylor192 at vancouvercondo.info 5 Jan 2010 10:12 am – “We’re in a $458K condo and saving 30% by renting (compared to a 35/5 mortgage, or […]

Wreckonomics
Wreckonomics
10 years ago

@Anonymous: I think you missed RPs point. He was saying that cheap products from china have replaced wage inflation in the west. We earn less money than we did 25 years ago, but many household items are cheaper. When chinese imports get more expensive here either wages go up or a lot of people are fucked (stagflation).

jesse
10 years ago

@rp:

But these people are ideologically opposed to giving money to poor people.

Quite the opposite. "Poor" people tend to consume instead of save. Giving money only to the rich is a sure way to exacerbate deflation. Heard of "cash for clunkers?"

Anonymous
Anonymous
10 years ago

@rp:

YOu don't make sense at all. You talk about inflation and money supply in the first three paragraph which I agree. But then you talk about import of cheape goods from China contributing to the issue. Please take an economics course. Inport of cheaper goods helps regulate the inflation. Inproves purchasing power.

I agree and supporting buying goods made in Canada (not so much made in USA), the fact of the matter is, if I restrict myself to buying items only made in Canada, I would lose at lease 50% of my purchasing power.

rp
rp
10 years ago

Education is even more outrageously overpriced than houses. I'm waiting for the day when people pay $50 for a 12 week course, book included, and watch recorded lectures over the internet. They could get help by email from the very same graduate students or they can drop in at a workshop on campus. Every year the cost of university goes up 10-15%, while professors and TAs are paid less in real terms. How can this happen? One is that more people are going so government subsidy has less of an impact. But I can't help at look at all the university presidents who are paid $500k like CEOs for running a public service. They are paid more than the Prime Minister! And they have legions of friends on boards of directors setting salaries for themselves. It's just a big insiders… Read more »

rp
rp
10 years ago

#44 @observer: Rest assured, governments everywhere are trying to create substantial inflation. It's the only way out of the debt hole, and the banksters who "advise" on global economic policy won't be much poorer if prices go up 10x and the rabble starve. The thing is, while they may set policy they now have very limited control over the real economy. They've already set interest rates to zero and started printing money with QE. What more can they do? They've pulled the monetary policy lever so much it broke. The current policy is merely inflating asset bubbles and if commodity prices shoot up (again) it will be another big shock to the real economy. How can they spur inflation? Drop money from helicopters. But these people are ideologically opposed to giving money to poor people. The problem with the economy… Read more »

jesse
10 years ago

I take two $5000 vacations a year.

One must wonder what's better for a child's education: regularly seeing the far expanses of the world or chained to BC as the parents pay off their debts.

Given the choice I'd take an ivy league education and seeing the world over a UBC student loan and rarely having set foot outside of North America.

VRENGD
VRENGD
10 years ago

The benefits of renting:

I live on the water in false creek in a 1200 SF two bed two bath condo. My place costs me 15% of my AFTER TAX income. I take two $5000 vacations a year. I save $20,000 per year to send my kids to Harvard when they are of age. I still contribute to my retirement plan that will give my 70% of my income every year from retirement until death.

If I bought the place I'm living in (I'm pre-approved), my kids would be on the own for university, I would not go on vacation and I would not have any retirement.

Who is the sucker? Me or the no-life debt slaves who are stretched to the limit?

Vancouver Real Estate Never Goes Down. Fine, but the rents never go up!

Anonymous
Anonymous
10 years ago

My condo assessment went from 796K in 2008 to 760K this year (3 year old building, Fairview, 1019 sq feet, 9th floor with a view). I suspect the nice overseas couple I sold it to in November will be pissed when they realize $870 was perhaps a little high to pay. I wonder how much the sale (which was too late for BC Assessment) will lift the prices in the building next year (small building which hasn't had a sale in 2 years).

John

observer
observer
10 years ago

@taylor192: Couldn't agree with you more. People who made money from the run up in RE haven't been selected for economic fitness – it was merely a luck of timing. As they say, easy come easy go. In a way, it will all balance out in the end. Very few will sell before the correction, only to see their paper gains evaporate. The irony is that if many were realize this and decide to sell, it will precipitate the very correction they are trying to escape. All in all, it is very karma like. The government and banks can try to keep things afloat for a while, but at some point, the economic clout of the next generation of taxpayers will be too great to repress. There has been a lot of fear of inflation. But it does not seem… Read more »

Mr. Reasonable
Mr. Reasonable
10 years ago

US Housing may be headed for a double dip.

The figures echoed what homebuilders saw in November and showed how dependent the housing market is on government programs to lower interest rates and lure buyers with tax credits. If those programs expire as planned early this year, the housing market will have to stand on its own.

stagnate
stagnate
10 years ago

that's an interesting statistic blueskies, another indication of post stimulis hangover. i don't think the economy is going to get rolling on its own, i wouldn't be suprised if interest rates are the same this time next year that they are now.

blueskies
blueskies
10 years ago

from the US:

Slowing Pace of Home Sales Raises Fears of New Retreat

"The National Association of Realtors said that its index of pending home sales plunged to 96 from a revised level of 114.3 in October. Analysts had predicted a drop, but nothing like that.

“We thought it would drop 2 percent,” said Jennifer Lee of BMO Capital Markets. “When you see 16 percent, the first thing you say is, what the heck happened here?”

Since the majority of pending sales become final in six weeks to two months, the index is considered a reliable indicator of where the market is headed."

yet another bearish North American statistic

bubbly
bubbly
10 years ago

Vancouver Home Prices:
http://i49.tinypic.com/j0jneb.jpg

Guess Again
Guess Again
10 years ago

#38 Guess

Actually last time interest rates went up, it was Spring 2008 and only going from 5-6% prompted, in part, the 2008 15% decline in prices. Now we are back to the same peak prices and eroded affordability, which means a little 1% increase on a VRM can make a nice disincentive to buying…