Buying Investment Property in BC

Why British Columbia? 

They say the West Coast is the Best Coast and British Columbia is undoubtedly one of the reasons why. BC isn’t just a province; it’s a promise of distinctly West Coast lifestyle. It’s where the Pacific Ocean meets rugged mountain ranges, where one can frolic on nature’s playground or just take in the scenery. For those looking to invest in real estate, BC offers more than just properties; it offers experiences.

The real estate market here is a unique blend of urban sophistication and natural landscapes. In a city like Vancouver with its vibrant vibe, opportunities to venture into real estate investing are as diverse as the city’s cultural mosaic. In these urban havens, every listing isn’t just a transaction but an invitation to Find Your Havn in a place where majestic mountains, abundant parks, and ocean breezes merge with diverse culture.

Meanwhile, the serenity of regions like the Okanagan and scenic spots like Whistler and Squamish, often referred to as the “Outdoor Recreation Capital of Canada”, provide a different kind of appeal. These places cater to nature enthusiasts who also yearn for sanctuary away from the city’s hustle and bustle, where a ‘home’ means waking up to vineyards, lakes, or mountain trails.

In short, investing in BC is not just about finding a property. It’s about discovering a place where your heart feels at home, where the saying “Welcome home” takes on a deeper meaning. It’s a curated collection of lifestyles, each uniquely appealing and promising unparalleled experiences.

Understanding the Market: Residential Investments 

Diving into the British Columbia residential property market is akin to exploring an abundance of opportunities. From the vibrant streets of Metro Vancouver to the tranquil ambiance of the Okanagan, the province presents a rich palette of investment options.

In Metro Vancouver, the real estate market has its own rhythm. Any Vancouver Realtor would agree, the market here is dynamic, with neighborhoods varying from the hip and happening to the serene and scenic. This region, constantly buzzing with “new listing” and “just hit the market” offers something for every investor. Whether it’s a high-rise apartment overlooking the cityscape, or a cozy townhouse tucked away in a leafy suburb, the Vancouver property market is a cornucopia of choice.

Moving away from the city vibe, the Okanagan Valley offers a contrasting picture. Here, investment is synonymous with a lifestyle close to nature. Imagine owning a property surrounded by vineyards and lakes, where every sunrise is like a painting. The region’s growing reputation as a year-round destination makes it a smart choice for investors looking for properties with both seasonal appeal and long-term value.

But let’s not forget the adventure capitals of BC – Whistler and Squamish. These areas are magnets for those seeking a blend of thrill and tranquility. Investing here means tapping into a market fueled by tourism and outdoor recreation, with potential for both residential and Airbnb opportunities. 

In BC, residential investment is more than just a financial decision. It’s a choice to be part of communities that are diverse and celebrated. Whether you’re a first-time home buyer or a seasoned investor, the market is primed to offer unparalleled opportunities that align with diverse goals and lifestyles.

Airbnb and New Bylaws: What You Need to Know

Navigating the waters of Airbnb investments in British Columbia can be tricky, but with the right knowledge, it’s entirely manageable and rewarding. Recent bylaws have reshaped the landscape for short-term rentals, particularly for areas like Whistler, Squamish, and the Okanagan.

In British Columbia, especially in tourism hotspots, Airbnb has transformed from a side hustle into a significant investment strategy. However, with great potential comes great regulation. New bylaws aim to balance the thriving tourist industry with the needs of local communities. In BC legislation has been enacted to give local governments stronger enforcement tools for their short-term rental bylaws, return short-term rentals to the long-term rental market, and establish a new Provincial role in regulating short-term rentals.

Whistler, known for its ski slopes and picturesque landscapes, has specific regulations that govern short-term rentals. These regulations ensure that the area maintains its charm and accessibility for both tourists and residents. In Squamish and the Okanagan, similar rules apply, with a focus on preserving the community feel while still capitalizing on the tourist appeal.

For investors, this means doing your homework is more crucial than ever. Understanding these bylaws is key to ensuring your investment doesn’t turn into an unexpected game of ‘Monopoly’. Investors need to be strategic and should consider factors like zoning regulations, licensing requirements, and community impact before diving into the Airbnb pool.

Moreover, it’s essential to stay updated as these bylaws are as ever-changing as the BC landscapes. Regular follow-up with your real estate expert and local authorities will keep you on top of this constantly evolving market. In the world of Airbnb investments, it’s not just about riding the wave; it’s about navigating it with the right strategy and profound insight.

Key Areas for Investment 

Whistler: A Winter Wonderland Turned Investment Haven

Whistler is not just a skier’s paradise; it’s a goldmine for real estate investors. This world-renowned resort town, with its snow-capped mountains and vibrant village life, offers lucrative opportunities for both residential and Airbnb investments. Properties here are not just homes; they’re gateways to an enchanting lifestyle, attracting tourists year-round. The demand for short-term rentals, especially during ski season, makes Whistler a hot spot for those looking to cash in on British Columbia’s tourism boom.

Squamish: Where Outdoor Adventure Meets Real Estate Opportunity

Squamish, the outdoor recreation capital of Canada, is rapidly becoming a sought-after location for real estate investments. With its breathtaking scenery and endless adventure opportunities, from rock climbing to windsurfing, Squamish appeals to a growing demographic of outdoor enthusiasts. Investing in Squamish means tapping into a market that’s as dynamic as the town’s landscape, offering potential for both long-term residential rentals and vacation properties.

Okanagan: A Year-Round Retreat with Vineyards and Views

The Okanagan is British Columbia’s hidden gem, known for its sunny climate, stunning lakes, and world-class vineyards. The region offers diverse investment opportunities, from lakeside condos to vineyard estates. The Okanagan’s charm isn’t seasonal; it’s a year-round destination for tourists and a beloved home for residents. This unique blend makes it an ideal spot for investors looking for properties that offer both lifestyle and rental income potential.

Metro Vancouver: Urban Investment at its Finest

Metro Vancouver, with its cosmopolitan flair and robust economy, is the heart of BC’s real estate market. The area offers a spectrum of investment opportunities, from luxury downtown apartments to charming suburban homes. Investing in Metro Vancouver means being at the center of a bustling market, where each property is part of a “Curated collection” of urban living experiences. Whether for rental income
or capital appreciation, Metro Vancouver’s diverse neighborhoods cater to a wide range of investment strategies.

Each of these key areas in British Columbia brings its unique flavor to the real estate table, offering unparalleled opportunities to experience and invest in the Beautiful British Columbia for savvy investors and homeowners alike.

Making the Right Choice: Tips and Strategies

Investing in real estate, especially in a market as vibrant as British Columbia’s, can feel like navigating uncharted waters. Here are some tips and strategies to ensure your investment journey is smooth sailing.

• Research is Key: Research the market data. From Metro Vancouver to the Okanagan, understanding local trends, property values, and future developments is crucial.
• Consider Lifestyle and Investment Goals: Are you looking for a sanctuary away from the city’s hustle, or an elevated experience in urban living? Align your investment with your lifestyle aspirations and financial objectives.
• Consult the Experts: Engaging with one of our top-performing real estate agents who are strategy-led and results-focused can be a game-changer. Their insights and knowledge about areas like Whistler or Squamish are invaluable. At Stilhavn, we understand the unique opportunities and challenges that our markets have to offer. Reach out to one of our market-leading Realtors® today.
• Understand the Legalities: Especially with the new Airbnb bylaws, it’s vital to stay compliant. Ensuring your investment adheres to local regulations will save you from future headaches.
• Plan for the Long Term: Real estate investment is often a long game. Think about long-term potential and sustainability of your investment, considering factors like community growth, infrastructure development, and market stability.

Welcome to Your Next Havn

As we’ve journeyed through the vibrant landscapes of British Columbia’s real estate market, one thing is clear: whether it’s the snowy peaks of Whistler, the windswept beauty of Squamish, the sun-drenched vineyards of the Okanagan, or the bustling streets of Metro Vancouver, BC offers a world of opportunities for the savvy investor or a current homeowner looking for their second property. Remember, investing here isn’t just about purchasing real estate; it’s about anchoring yourself in a community, a lifestyle, a dream. So, as you take the plunge into this exciting market, may you not just find a property, but also find your very own havn.  

*Original article from Stilhavn Real Estate

Are you a first-time homebuyer eager to make the most of tax savings? Look no further than the First-Time Home Buyers' Tax Credit (HBTC) offered by the government. This incentive allows eligible individuals to save a substantial $1,500 on their taxes by simply claiming $10,000 on Line 31270 on their 2023 tax returns.

So, how can you ensure you qualify for this generous tax credit? Let's break down the criteria:

1. Property Purchase in 2023: To be eligible for the $1,500 tax savings, the homeowner (or their spouse/common-law partner) must have purchased a property in the year 2023.

2. No Previous Homeownership: The homeowner must not have resided in any other home, either within or outside Canada, that was owned by them or their spouse/common-law partner in the year of purchase or in any of the four preceding years. Essentially, if you haven't lived in a home that you or your spouse owned during this timeframe, you can confidently claim the HBTC by entering $10,000 on Line 31270.

Additionally, here are some noteworthy details to consider:

• Sharing the Credit: The HBTC can be split between purchasers, allowing flexibility for couples or multiple individuals involved in the property purchase.

• Persons with Disabilities: Individuals with disabilities have the option to apply for the HBTC more than once, providing an extra avenue for potential savings.

• Claiming for Previous Years: If you missed out on claiming the HBTC in the past, don't worry. You can still unlock these savings by adjusting your previous tax returns. Simply use the My Account feature on the CRA online platform to make the necessary adjustments. It's worth noting that the claim amount was $5,000 for the year 2021 and previous years, showcasing the government's commitment to supporting first-time homebuyers.

In conclusion, the First-Time Home Buyers' Tax Credit is a valuable opportunity for eligible individuals to save on their taxes. By meeting the outlined criteria and taking advantage of the various provisions, you can maximize your savings and pave the way to financial success as a new homeowner. So, if you've recently purchased your first home or are planning to do so in 2024, make sure to explore the benefits of the HBTC – your path to $1,500 in tax savings awaits!

Let's chat about how we can make this work for you! Get in touch here.

1795 Victoria Drive

East Vancouver

$1,599,000

3 bedrooms & 3 bathrooms

1397 sq. ft.

1 covered parking

Built in 2005

3 reasons to come and view this home:

*No maintenance fees

*air conditioning

*extensively renovated

Oh and no GST!

Come and see.

Begin with the fundamentals. Keep a snow shovel for your driveway and walkways to promptly clear snow after a snowfall, ensuring that outdoor spaces stay functional and safe without unnecessary delays. Severe winter conditions, including ice, wind, and snow, can lead to power outages. Be prepared to endure days without power. According to Emergency Preparedness B.C., have emergency supplies ready for at least two to seven days, charge all devices, and keep flashlights with extra batteries on hand.

The best ways to prepare your home for the winter:

• Weatherproof Your Home
• Inspect Your Heating System
• Protect Your Garden and Exterior
• Check for Energy Efficiency 

Weatherproof Your Home

Maintaining proper home insulation during winter is crucial, impacting both comfort and energy efficiency. Reduced energy consumption benefits not only your finances but also the environment.

Seal gaps around doors and windows with weatherstripping, reducing the workload on heating and cooling systems, leading to energy savings and lower utility bills.

Install window treatments to trap heat inside, reducing the need for excessive heating and, consequently, lowering energy consumption and heating costs.

Before winter sets in, inspect your roof for damage. Colder months often bring snow and rain, and a damaged roof can allow water to penetrate your home. Checking for leaks or vulnerabilities ensures your roof is watertight, preventing water damage to your home's interior.

Inspect Your Heating System

Schedule a furnace inspection to ensure safe operation. Technicians can identify and address issues such as gas leaks, carbon monoxide leaks, or other potential safety hazards.

Efficiently program your thermostat to conserve energy, save costs, and enhance comfort. Adjust the temperature based on your daily schedule, avoiding unnecessary heating or cooling during periods of absence or sleep, resulting in reduced energy consumption.

As you'll likely use your fireplace more in winter for additional warmth, cleaning and inspecting the chimney ensures efficient operation, maximizing heat output and minimizing energy waste.

Protect Your Garden and Exterior

Clean gutters and trim trees to reduce the risk of ice dams and falling branches that could damage your home, vehicles, or property. Ice dams can form when snow accumulates on the roof, heat escapes from the interior, and the exterior temperature freezes.

Disconnect and drain outdoor faucets to prevent freezing and subsequent damage to the plumbing system. Water left in outdoor faucets during cold temperatures can freeze, causing pipes to expand and potentially burst.

Check for Energy Efficiency

Consider upgrading to energy-efficient windows and doors for benefits such as energy savings, improved temperature regulation, better insulation against noise, and reduced UV rays entering your home.

Properly seal ducts, a crucial component of a home's HVAC system, to retain heat, optimize heating system efficiency, and maintain better indoor air quality by preventing the infiltration of pollutants.

Lastly, schedule a home energy audit to gain insights into energy usage, identify inefficiencies, and make informed decisions to improve consumption. Professional auditors use specialized equipment to detect energy waste, such as drafts, air leaks, and insufficient insulation. Addressing these issues improves overall home efficiency.

For those considering selling, repairs, renovations, or upgrades enhance property functionality, market appeal, and potential resale value I am ready to guide you through your individual home-selling journey.

Lets connect!

*original article from Stilhavn Real Estate Services 

Before you buy a house or condo, it is a great idea to investigate the neighbourhood, not just for what is currently in the area but what might be there in the FUTURE.

When you drive around Vancouver, especially on the arterial roads, you can see For Sale Signs on several houses in a row that say Land Assembly. That is an indication of a change in zoning from single family homes to mulit-family homes, which could be anything from low rise townhouses like you see on Oak Street to potential 12 plus storey towers on Broadway.

For example, if you are looking at homes on East 8th or East 10th (Broadway is 9th Avenue) make sure you investigate what the zoning is and what it could potentially be built along that stretch of Broadway. Call the City of Vancouver for details, and ask your realtor as well to see how your view might change or the density/traffic change in a way that affects your enjoyment and possible future value of the home.

I have moved a lot. And on move in day (Possession Day) excited about our new home, many times we discovered that the Sellers had left behind personal items, some of it essentially garbage. 

There are always bumps in the day, but as Sellers, don't contribute to this already hectic day by leaving behind unwanted items such as:old broken step ladders, 10 year old paint cans, old vinyl flooring, rusty push mowers. You get it.

If you think the Buyers may want something of value (I repeat value!) that you don't need in your next home, reach out to the Buyers through your realtor and see if you can leave it behind. Don't assume. Buyers - make sure your purchase contract states that the Seller will remove all personal items and debris from the condo, balcony, storage locker, end of the parking stall. For a house, from the garden shed, the yard, the garage, the house!

This situation reminds me of the old adage I learned growing up: Do unto others as you would have them do unto you. Sellers: the day you move out may be the day you move in to your new home, hoping to find it spick and span. N.B. Spick and Span was an all-purpose household cleaner introduced in 1933. I am not that old but we always used that expression!

If your new home is clean and clear of debris, you will be very appreciative of the the Buyers and will be left with a more positive moving experience.

In 2023, Vancouver's real estate market defied predictions by finishing the year with positive price growth, despite facing the highest borrowing costs in over a decade. According to the Real Estate Board of Greater Vancouver, the composite benchmark home price index for all residential properties in the city concluded the year at $1,168,700. This reflected a 1.4% decrease from November but a significant 5% increase from December 2022. However, this price resilience occurred alongside a notable decrease in sales.

Start of 2023

The early part of 2023 witnessed two rate holds by the Bank of Canada, creating false impressions that the rate-hike cycle was concluded. This led to a temporary surge in home prices during the spring, accompanied by heightened inflationary pressure. Subsequently, the central bank implemented two additional quarter-point rate hikes during the summer.

Despite this, both markets and economists appeared optimistic that 2023 marked the peak of interest rates, with expectations of rate relief and potential cuts by mid-2024.

Inflation Stats

Simultaneously, there was a parallel trend of declining inflation. Starting the year with Canada's headline Consumer Price Index inflation at 5.90%, it slowed to 3.10% by November.

Residential Property Prices

The average non-seasonally adjusted house price reached a peak of $729,044 in May but receded to $646,134 by November. While still exhibiting a 5.5% increase from January, this figure represented a decline of more than 20% from the all-time high recorded in February 2022.

Real estate trends are largely influenced by prevailing economic conditions, and in 2023, the Canadian real estate market experienced fluctuations due to the three interest rate hikes by the Bank of Canada.

Home Prices Forecast

Looking ahead to 2024, most experts and analysts anticipate a gradual recovery in the Canadian housing market as interest rates stabilize.

At Stilhavn

We recognize the uniqueness of each local market and possess the expertise to identify opportunities and challenges within them. I am here to provide expert guidance and address any questions or concerns you may have, ensuring an elevated experience in your next buying or selling journey. Lets connect!

*Original article from Stilhavn Real Estate Services.

As we got closer to the holidays and the weather became colder, November showed an increase in housing inventory, giving home buyers across Metro Vancouver* among the largest selection to choose from since 2021. With one month left in 2023, home sales activity remained up but still modest compared to the long-term averages, and listings were down across Greater Vancouver’s housing market.

 Residential Home Sales

The Real Estate Board of Greater Vancouver (REBGV)^ reports that residential sales in the region totaled 1,702 in November 2023, a 4.7% increase from the 1,625 sales recorded in November 2022. This was 33% below the 10-year seasonal average (2,538).

Read more...

https://stilhavn.com/metro-vancouver-housing-update-november-2023/

The single-family home may become more scarce with the new housing legislation the Province of British Columbia is introducing.

“B.C. isn’t building enough small-scale multi-unit homes that fit into existing neighbourhoods and give people more housing options that are within reach. That’s why we’re taking action to fix zoning problems and deliver more homes for people, faster.” – said Premier David Eby.

Read more...

https://stilhavn.com/the-end-of-single-family-zoning-across-bc/

The FHSA - The First Home Savings Account is an incentivised savings strategy for first time home buyers.

You must be a minimum of 18 years old (19 in some provinces to enter into a legally binding contract) up to the age of 71 years 

For the purpose of opening an FHSA, you are considered to be a first-time home buyer if you did not, at any time in the current calendar year before the account is opened or at any time in the preceding four calendar years, live in a qualifying home  (or what would be a qualifying home if located in Canada) as your principal place of residence that either:

• you owned or jointly owned
• your spouse  or common-law partner  (at the time the account is opened) owned or jointly owned

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html