Tag Archives: property

CRA plans increased ‘lifestyle audits’ in Vancouver

The CRA suspects some people in Vancouver might not be paying tax on all world-wide income and are going to be taking an extra hard look at big spenders who aren’t big tax-payers.

Over at the Globe and Mail Christine Duhaime a lawyer who focuses on financial crimes explains how it works:

“They all follow what we call the same typology. … They all want an expensive Lamborghini or a Ferrari, they want a really expensive house, they send their kids to the most expensive private schools they can get in Vancouver,” she said. “So when you try to find money launderers, that’s what you look for. Who went to the Ferrari shop? And that’s what they mean by the ‘lifestyle audit.’”

Ms. Duhaime said while many people think of money laundering as something done by drug dealers, in fact the activity is more often associated with white-collar crime and usually involves tax evasion.

Will going after tax cheats have any effect on the overinflated housing market in Vancouver?  Read the original article here.

Property tax deferment and empty bedrooms

Peter Ladner over at the Vancouver Courier asks the question ‘why reward Vancouver seniors for staying in big empty houses‘?

The oldest of us will be 80 in 10 years, well past the time we needed all those bedrooms for our children, even the ones who stick around into their 30s. And we have lots of those bedrooms. Canadians have the most living space per person of any country in the world (2.5 rooms per person), according to Organization for Economic Co-operation and Development stats. I confess: I have two empty bedrooms in my home, even after converting the basement into a suite.

A decade ago, Urban Futures estimated that around 30 per cent of homes in Metro Vancouver had at least one unoccupied bedroom. That would be 220,000 empty bedrooms then, and many more in coming years as the boomer tsunami arrives. It would be interesting to calculate how many years we could go without building any new homes simply by filling up the ones we already have.

The opposing viewpoint says that asking people to pay their property tax is the same as kicking old people out of their homes, some calling Ladner ‘a disgusting human being’.  But as George points out is it really unfair to ask people who’ve benefitted from decades of rising property values to pay their share of the tax bill?

…Whenever young people cry about high housing prices in Vancouver, we’re told that’s the free market, suck it up, supply and demand, blah blah blah. It’s actually not a free market, it’s a highly distorted market, but that’s besides the point. If it’s good for the goose, it’s good for the gander. If young people in Vancouver are just supposed to accept being priced out due to the free market, then elderly people should have to accept the same thing. I am not saying I want to see elderly people displaced out of Vancouver. But Peter Ladner is right, it’s just not fair that elderly people sitting on massively overvalued homes get what amounts to a tax subsidy from the young, the very people priced out of the city.

What do you think? Are you against young families or the elderly?

 

Friday Free-for-all!

It’s the end of another week and that means it’s Friday Free-for-all time!

This is our regular end of the week news round up and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Assessments and sales
Canada in ‘serious trouble’?
Optimism Fading?
Rent vs. buy math
High debt a way of life
Oil brings doubt
Chinese investors not afraid of ghosts
Realtor Hunger Index at 68%
Prices down in Yuan

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Friday Free-for-all! Happy Weekend!

It’s the end of another work week and that means it’s time for our regular Friday Free-for-all!

This is our usual end of the week news roundup and open topic discussion thread for the weekend.

Here are a few recent links to kick off the chat:

Balancing Retirement & mortgage
27% don’t count mortgage as debt
Vancouver closet for rent
Longest interest rate pause
Higher tax for empty houses?
Millionaire visa for only 50 people?
Dipping under a million on the coast

So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!

Should you just move to an island?

Skook has a post over at VancouverPeak.com about an island dream gone sour.

A BC couple purchased land on Mayne island and started building their dream home only to run into a confluence of cost overruns and real estate market downturn.

Today, their house is only a wood frame shell that looks out over one of B.C.’s most dramatic views, with the Lower Mainland in the distance, and regular sightings of ferries, whales and seals. The tiered wooded lot is only a five-minute drive to the ferry.
It is the idyllic best that B.C. has to offer, and yet the Klingsats won’t even break even on the near $1-million they spent on the property and construction. They have relisted it for $539,000, after previous listings at $649,000 and $699,000 didn’t get any offers. “Everybody loves the place, but the people don’t want a house that’s not finished,” says Mr. Klingsat, who gave up on the project six months ago. “And I can’t do it. I haven’t got any more money to put into it. “The whole economy everywhere is lousy – nothing is gangbusters. There are places for rent all over here on Vancouver island.”

The original article in over at the Globe and Mail. Skook adds some extra thoughts and information.

RFM has also added some information summarizing other properties in that particular island market.  There are 113 properties for sale on an island with a population of 900.