For a while there the most sensible money move if you had a small apartment available was to rent it out in a short term basis on Air BnB, but that market has crashed lately.
Does that mean more units looking for long term tenant and with more supply will we see lower rent prices? So far rents are down about 7% since December, will they bounce back soon?
Vancouvers empty home tax is bringing in some decent coin – almost $40 million in 2018.
If you believe in a vibrant vancouver and want to do your part to support it, you can own a home here and keep it empty – that extra tax income goes to support affordable housing and rent protections.
If you really want to go the extra mile, don’t report your empty home: Audits raises $22.1 million in taxes and fines from empty home owners.
Read more here.
Sorry to tell you, but we’re not number 1 – that honor goes to New Zealand, but Canada is right up there on this visual map of countries at the greatest risk of a bursting housing bubble.
Thanks to southseacompany for the link, see all the data here.
…At least that’s what CTVnews says.
The city of Vancouver is facing a crisis in housing affordability, with one bedroom units averaging about $1,730 per month.
But these rentals offer a single room in a multi-bedroom house for anywhere between $700 and $1,500, with more than 5,000 empty bedrooms available across the city.
“Maybe the cheapest real estate right now is mansion rentals,” Roy said.
While most owners contacted by CTV News said they don’t want groups renting out the homes, the rentals present a cheaper housing alternative for students and young professionals.
Sehrish Qureshi is one of 14 students who applied online and was placed in a Vancouver mansion nicknamed “the castle,” paying around $1,000 a month for a mansion with a pool, home theatre, and games room.
When move-in day arrived, she was shocked by the furnished, $5-million home.
“Me and my family were just like, ‘What? Is this for real?’” she said.
“I’ve compared it to some of my classmates, and they pay, like, $1,300, $1,400 for small studio apartments in downtown … I’m so happy with what I’m paying.”
Read the full article here.
Will a new tax on vacant homes help solve the affordability crisis?
The speculation tax will apply to those who own multiple properties in Metro Vancouver, the Capital Regional District (excluding the Gulf Islands and the Strait of Juan de Fuca), Kelowna, West Kelowna, Nanaimo-Lantzville, Abbotsford, Chilliwack and Mission.
The tax will apply at a reduced rate in 2018, based on property owned as of Dec. 31. It expands in 2019 to 0.5 per cent of assessed value for B.C. residents, one per cent for Canadians from outside B.C., and two per cent for non-Canadians.
Owners are exempt if they rent their properties for at least six months a year. And there is also a tax credit for B.C. residents with second homes valued under $400,000.
James pointed to exemptions she said will make the tax fair, including for people facing medical emergencies, people who have to relocate suddenly for a job, seniors who enter care homes, people undergoing a separation, and those with disabilities.
“If people choose to leave their homes vacant where the housing crisis is the deepest, we are asking them to pay their fair share. All that revenue will be returned to British Columbians in the form of affordable housing,” said James.
Read the full article here.