misery at Vancouver housing cost?
#256
Re: misery at Vancouver housing cost?
What happens in high value markets generally is that the people who inherit houses in gentrified areas are squeezed out because the value of the house is such that they can't pay the property taxes. I imagine this works somewhat differently in vacation destinations and in Vancouver. If the property owners live abroad and want the property for an annual week in the sun or as a bolt hole in case trouble at home then they likely only want enough rent to break even, hence expensive properties with low rents.
#257
Re: misery at Vancouver housing cost?
Vancouver Regent Hotel tenants fight for heat, hot water - British Columbia - CBC News
Apparently residents have gone a while without hot water and heat.
Apparently residents have gone a while without hot water and heat.
#258
Re: misery at Vancouver housing cost?
This is a subject that always annoyed me a little. Unrelated to Vancouver, of course.
Here in New Brunswick property taxes are effectively doubled if the owner doesn't occupy. I can kind of understand it if a home wasn't housing someone full time, but not where a home is someone's home.
That aside, there's a view that this "double taxation" is a cost borne by tenants and the increases are passed onto them.
Not so.
To begin with, the tax bill arrives about April with the new amount being due from January. You can't backdate a rent increase.
Even if you can feasibly increase the rent by the tax increase divided by 12, with the notice required you're already on the hook for 6 months of the higher rate.
A year after I bought my rental the taxes went up so much that something like a $50 rent increase would have been necessary. Impossible even without today's high vacancy rates.
#259
Re: misery at Vancouver housing cost?
Or renting somewhere else.
This is a subject that always annoyed me a little. Unrelated to Vancouver, of course.
Here in New Brunswick property taxes are effectively doubled if the owner doesn't occupy. I can kind of understand it if a home wasn't housing someone full time, but not where a home is someone's home.
That aside, there's a view that this "double taxation" is a cost borne by tenants and the increases are passed onto them.
Not so.
To begin with, the tax bill arrives about April with the new amount being due from January. You can't backdate a rent increase.
Even if you can feasibly increase the rent by the tax increase divided by 12, with the notice required you're already on the hook for 6 months of the higher rate.
A year after I bought my rental the taxes went up so much that something like a $50 rent increase would have been necessary. Impossible even without today's high vacancy rates.
This is a subject that always annoyed me a little. Unrelated to Vancouver, of course.
Here in New Brunswick property taxes are effectively doubled if the owner doesn't occupy. I can kind of understand it if a home wasn't housing someone full time, but not where a home is someone's home.
That aside, there's a view that this "double taxation" is a cost borne by tenants and the increases are passed onto them.
Not so.
To begin with, the tax bill arrives about April with the new amount being due from January. You can't backdate a rent increase.
Even if you can feasibly increase the rent by the tax increase divided by 12, with the notice required you're already on the hook for 6 months of the higher rate.
A year after I bought my rental the taxes went up so much that something like a $50 rent increase would have been necessary. Impossible even without today's high vacancy rates.
#260
Re: misery at Vancouver housing cost?
I can understand the additional taxes on the place that's unused most of the time. Providing it would otherwise be habitable year round and isn't just a beach hut or something.
#261
Re: misery at Vancouver housing cost?
Or it's a holiday home. Like 'the cottage' that's empty apart from weekends and the occasional week in summer.
I can understand the additional taxes on the place that's unused most of the time. Providing it would otherwise be habitable year round and isn't just a beach hut or something.
I can understand the additional taxes on the place that's unused most of the time. Providing it would otherwise be habitable year round and isn't just a beach hut or something.
Is this an envy tax?
#263
Re: misery at Vancouver housing cost?
It depends. It is sometimes used to discourage under occupation in areas where there is a housing shortage. London would do well to introduce this kind of system, for example.
#264
Joined: Aug 2005
Posts: 14,227
Re: misery at Vancouver housing cost?
Edit: apparently not.
Last edited by Alan2005; Dec 2nd 2015 at 3:37 pm.
#266
Joined: Aug 2005
Posts: 14,227
Re: misery at Vancouver housing cost?
Well, you can same the same for Vancouver probably. Although property taxes where I live are over double the council tax I used to pay and that's with a home-owner discount (houses are similarly valued).
#267
Re: misery at Vancouver housing cost?
Kensington & Chelsea top band is £2124 p.a.. Even if that were to double it would be nothing to someone owning a £1MN vacant investment flat.
#268
Joined: Aug 2005
Posts: 14,227
Re: misery at Vancouver housing cost?
Maybe. Although you would be relying on appreciation > 2% p.a otherwise it's not much of an investment is it. Might as well leave the cash in the bank
#269
Re: misery at Vancouver housing cost?
However, the reality is that in this province the powers that be have decreed that where the owner doesn't reside in the property, the taxes are doubled. Technically there are two elements to the property tax, one of which is rebated where you occupy, effectively doubling the amount payable.
There's no reason to charge double if there's a renter living there instead of an owner. The renter doesn't produce more garbage than an owner; have more fires; get broken into; borrow more books from the library; need a wider road; want different traffic lights etc etc
There is, perhaps, a cost to society in having a property suitable for housing and not using it for housing.
And it's not unique to this province or this country.
#270
Account Closed
Joined: Jan 2006
Posts: 0
Re: misery at Vancouver housing cost?
Can get way nicer houses in Phoenix area for what we pay in rent per month. That might be our sulution to BC housing issue.
One house super nice with pool. Mortgage and taxes about 920 month.
Sold last in 2011 for 92k now listed for 159k but still affordable.
One house super nice with pool. Mortgage and taxes about 920 month.
Sold last in 2011 for 92k now listed for 159k but still affordable.