Vancouver's Real Estate Market

[Wormiez]

Originally Posted by GLOW

my firm underpays compared to the industry forsure, but we have an great workplace culture and outstanding work/life balance. i think they know this is the case and if someone wants to make 10-30% more elsewhere but roll the dice on office culture and workload - they're willing to. i think a part of it is that it's not easy for them to arbitrarily increase salaries, fairly big company.

i know if i get back in to private i can make a killing but i'll but doing a lot more hours, then if you break it down to hourly rate, i'm not sure how much more ahead i am.

i agree it's frustrating losing talented/experienced staff with new staff you need to train whom may not be as experienced, but i think that decision is sometimes made by a diff dept (i.e. HR) and the actual dept has to live with the decision.

Agreed, with the housing market now, experienced reps with a mortgage won't roll the dice and tempt fate with higher pay and risk of job security.

It's only the younger generation with nothing to lose moving around...

[GLOW]

and good for them (the young), more risk/opportunities than when i was starting out but they can advance and improve themselves and level up their career faster...

downside is trying to establish yourself / home in this current real estate environment

[EvoFire]

One thing to think about this imminent crash happening. If we do see a >30% crash, some developments/builds are going to run a deficit in the next 5 years. This is going to mean there would be minimal new builds in the next decade after the current spate of developments are done. When the downturn is over, the rise in RE prices are going to be pretty epic once everyone starts getting in again.

[JDMDreams]

^^

[Harvey Specter]

Originally Posted by EvoFire

One thing to think about this imminent crash happening. If we do see a >30% crash, some developments/builds are going to run a deficit in the next 5 years. This is going to mean there would be minimal new builds in the next decade after the current spate of developments are done. When the downturn is over, the rise in RE prices are going to be pretty epic once everyone starts getting in again.

Likely scenario is we're heading towards are more "normal" balanced RE market with minimal gains for the foreseeable future.

[subordinate]

we're going to see 6% rates on 5 year fixed terms by summer at this speed.

[GLOW]

if that's the case would the smart play be to just let it keep variable or lock in that 6%?

[Hondaracer]

So we were audited for the empty homes tax. What a complete joke. If they think this is an actual representation of who lives here and who doesn’t they are completely oblivious.

Basically have to show them 3 specified bills with a name on them, anyone could photoshop etc. some bills you wouldn’t even have to be living there in order to have your name on

[Gerbs]

Originally Posted by Harvey Specter

Likely scenario is we're heading towards are more "normal" balanced RE market with minimal gains for the foreseeable future.

Yeah, we're more likely to hold steady or maybe see a drop back to 2020 covid levels. But for another 5 - 7 years while interest hovers at 4.5 - 8%. Then let the cash buys start flying.

[supafamous]

Originally Posted by Hondaracer

So we were audited for the empty homes tax. What a complete joke. If they think this is an actual representation of who lives here and who doesn’t they are completely oblivious.

Basically have to show them 3 specified bills with a name on them, anyone could photoshop etc. some bills you wouldn’t even have to be living there in order to have your name on

My parents were also randomly selected for an audit as well and the whole process is so stupid and proves nothing. The website for it is hot garbage as well - there's no way my parents would have been able to fill it out on their own.

What total theatre and a waste of tax dollars.

[donk.]

On the flip side, if there was 0 auditing, then people would be more inclined to run it empty and file as "occupied"

Maybe the fear mongering of investors works well enough to pay for the people that run the audits, maybe even profit on it

Same as CRA audits, imagine if there were no audits on CRA lol......

[Gerbs]

Originally Posted by Hondaracer

So we were audited for the empty homes tax. What a complete joke. If they think this is an actual representation of who lives here and who doesn’t they are completely oblivious.

Basically have to show them 3 specified bills with a name on them, anyone could photoshop etc. some bills you wouldn’t even have to be living there in order to have your name on

Amongst a lot of people I know, the wealthier folks with multiple properties have them under grandma, grandpa, 19 year old daughter, 22 year old son. All "living" in a detached house or a 3BR condo in Brentwood

Double whammy for collecting rent in cash + you're principle residence so there's technically no rent there. No way to audit except to look at bank statements for cash deposits. But I've never seen that happen.

If the CRA ever announced a 25% reward for tax evaded collected, we are dialing that hotline in a heart beat.

[donk.]

Gerbs, you wanna live in my rental, while I live in yours?

You no pay tax, I no pay tax!

[Hondaracer]

If you had a vacant home in Shaughnessy and lived entirely in China, as long as you paid some VERY simple bills online, you’re not a vacant owner.

Nice system.

[quasi]

City of Surrey physically inspected my last home looking for an illegal suite before they backed off on cracking down on them. I didn't care, had nothing to hide.

[supafamous]

Originally Posted by donk.

On the flip side, if there was 0 auditing, then people would be more inclined to run it empty and file as "occupied"

Maybe the fear mongering of investors works well enough to pay for the people that run the audits, maybe even profit on it

Same as CRA audits, imagine if there were no audits on CRA lol......

Audits are not bad by themselves but what they want for the audit is mostly useless - pictures of your driver's license, home insurance, car insurance, utilities bills and your notice of assessment. None of these prove your home isn't empty.

Cities perform a lot of theatre with their bylaws - like how they inspect new builds after a year to see if you've put in an unauthorised suite but they signed off on the house when it was built and all it lacked was a 220v outlet for the range. So we all know what's gonna happen right but we're still gonna inspect you a year later to make sure you haven't done it yet?

[Alpine]

The other workaround is to have some "caretakers" occupying your empty house aka you're renting it out.

[Alpine]

Originally Posted by Gerbs

Amongst a lot of people I know, the wealthier folks with multiple properties have them under grandma, grandpa, 19 year old daughter, 22 year old son. All "living" in a detached house or a 3BR condo in Brentwood

Double whammy for collecting rent in cash + you're principle residence so there's technically no rent there. No way to audit except to look at bank statements for cash deposits. But I've never seen that happen.

If the CRA ever announced a 25% reward for tax evaded collected, we are dialing that hotline in a heart beat.

That's my extended family lol. Except they took it too far. Couldn't find any more names to buy houses under (the grandkids were too young), didn't want to pay any potential capital gains tax and missed out on the 2019+ appreciation lol. Have to also make sure everyone that's of age collects maximum government benefits too. Wealthy satellite families have been working the system for decades.

[Alpine]

Originally Posted by supafamous

Cities perform a lot of theatre with their bylaws - like how they inspect new builds after a year to see if you've put in an unauthorised suite but they signed off on the house when it was built and all it lacked was a 220v outlet for the range. So we all know what's gonna happen right but we're still gonna inspect you a year later to make sure you haven't done it yet?

The best is when there's clearly space for an additional lockoff "suite" in the basement (separate bed + bath + living space), and then you see a single sink against the wall in the middle of the living space lol.

[Gerbs]

Originally Posted by Alpine

That's my extended family lol. Except they took it too far. Couldn't find any more names to buy houses under (the grandkids were too young), didn't want to pay any potential capital gains tax and missed out on the 2019+ appreciation lol. Have to also make sure everyone that's of age collects maximum government benefits too. Wealthy satellite families have been working the system for decades.

Crazy unfair advantage. Evading $2 - 3K/month in rental income pre-tax is equivalent to me making an additional $4 - 6K at work which doesn't happen.

Feels almost forced to play the game. I think after 7 years you're cleared and CRA can't claw back either. Based off of news articles and CRA articles they never really claw back these small time players either.

[JDMDreams]

^ I think the gov is more worried about the pr hell they will have if small time home owners stop renting their basements out then you will see how high rents can get

[supafamous]

Originally Posted by Alpine

The best is when there's clearly space for an additional lockoff "suite" in the basement (separate bed + bath + living space), and then you see a single sink against the wall in the middle of the living space lol.

Yeah, the totally not a suite I had in my duplex had separate laundry hookups and kitchen cabinets installed along with a hole in the wall for the hood vent and a spot for the range. So like what did the city inspector think was going on here when they signed off?

My neighbour and I both rented out our totally not a suites and got inspected just over a year in - she didn't know better and ended up having to remove her suite for about a year before putting the 220v back in. We "obscured" our 220v (and the range) and the inspector was in our suite for not even 30 seconds - all he wanted to see was that we didn't have a second kitchen in our house (even if it was our parents living with us it's illegal to have a second kitchen).

What a waste of time. I like Burnaby's approach - just tell us if you have a suite and we'll just charge you extra taxes and call it a day.

[Great68]

Originally Posted by JDMDreams

^ I think the gov is more worried about the pr hell they will have if small time home owners stop renting their basements out then you will see how high rents can get

Depends how many of those small time home owners need that rent payment for their mortgage....

[Hondaracer]

So I spoke to someone today who basically got renovicted from one of those dumpy low rises behind Metrotown. Burnaby has a pretty sweet deal in place for these people.

So a firm bought his building he was renting in, city of Burnaby now finds you a different home nearby and pays for the move etc. you continue to pay the same rent you were before at the old place with Burnaby topping off anything more.

THEN once the tower that replaced your building is complete, you can either move back into that brand new building paying the same rent, OR he said you can take a fairly substantial payout and move on.

I guess that’s why no one is protesting the renovictions from all those dumpy buildings anymore

[supafamous]

Originally Posted by Hondaracer

So I spoke to someone today who basically got renovicted from one of those dumpy low rises behind Metrotown. Burnaby has a pretty sweet deal in place for these people.

So a firm bought his building he was renting in, city of Burnaby now finds you a different home nearby and pays for the move etc. you continue to pay the same rent you were before at the old place with Burnaby topping off anything more.

THEN once the tower that replaced your building is complete, you can either move back into that brand new building paying the same rent, OR he said you can take a fairly substantial payout and move on.

I guess that’s why no one is protesting the renovictions from all those dumpy buildings anymore

Burnaby's grand bargain - they don't want to touch any SFH area for fear of upsetting landowners so they tear down rentals (which are affordable housing for the most part). To placate the protestors (who I think have a good point - why not tear down some SFH instead?) this is the price Burnaby pays.