Vancouver's Real Estate Market

[PeanutButter]

Originally Posted by donk.

I'd spend the money, and pay an accountant for his time in regards to CCA.
Find someone who deals with CCA on the regular, lots of accountants "know" how to file it, but stutter when you ask them questions on the phone...

Spending 100-200$ today for an accountant, may very well save you 10-20fold + unnecessary paperwork when CRA, or whoever may start questioning your filings

I use CCA, and this will need to be "repaid" when the property sells. (Different scenario than yours)

Money today > money tomorrow

I have an appointment with a tax guy, but just wanted some background information first, just so I have an idea of what's going on before I talk to this guy.

We filed our taxes already and I didn't put any of the renovations on the taxes, so I can always do it for 2022 tax season. Essentially, I'm going to get him to audit my taxes to see if I did anything wrong.

[ssjGoku69]

Originally Posted by PeanutButter

Does anyone understand how capital costs work in regards to recapture when selling a house with a rental in it.

We have a primary residence with a basement suite.

I have about $30k in renovations for the suite we are renting out. Is this considered the same thing is a capital cost allowance (CCA) if I claim it on my taxes? I will not be depreciating the house for CCA, but I'm wanting to claim the $30k as a capital cost to lower my tax bill.

Is it correct to say that once I sell the property, I will have to "recapture" the $30k in capital costs for the renovations and then pay tax on the $30k? Is that correct? or is recapture only if I depreciate the property?

You shouldn't claim the renovations as a Class 1 addition for CCA or else you would forfeit the principal residence exemption for that property. It isn't worth it.

However, if your rental suite has appliances (Class 8 - 20%), you could capitalize those to your rental schedule and claim the CCA on those specific items. In the event that you sell your home with those appliances included, then you could potentially face recapture which reverses some/all of those previously claimed CCA deductions.

[Euro7r]

I've been asking around to get a quote for window screen installation for 2x windows & 1x patio door for my condo. I've been getting quotes for like $700ish, $800 if you factor in taxes. Seems hella expensive for 2x windows & 1x door. One shop with good google reviews wanted taxes on top (Asian shop), told me he pays taxes too, I'm like the fuck you do LOL

Is this the norm nowadays? Anyone got a cheaper lead/referral?

[6thGear.]

That's what I paid for 1 phantom screen for patio and 2 standard window casement screens. If it's anything less than a phantom screen that's a ripoff

[van_driver]

April sales were 1.5% above 10 year average compared to March sales that were 25% above average. Seems like a pretty big jump, maybe prices will follow soon

[winson604]

Originally Posted by Euro7r

I've been asking around to get a quote for window screen installation for 2x windows & 1x patio door for my condo. I've been getting quotes for like $700ish, $800 if you factor in taxes. Seems hella expensive for 2x windows & 1x door. One shop with good google reviews wanted taxes on top (Asian shop), told me he pays taxes too, I'm like the fuck you do LOL

Is this the norm nowadays? Anyone got a cheaper lead/referral?

This was 4 years ago so don't know about now. Paid $500 from this dude @ https://www.yelp.ca/biz/lams-window-...inds-vancouver

1 x balcony sliding screen
2 x large window screens (living room and master)
2 x regular window screens (2nd and 3rd bedroom)
2 x small window screens (bathroom x 2)

4 years no issues, quality from what I can tell is good I definitely didn't have a moment where I questioned it might be on the cheap side.

[Euro7r]

Originally Posted by winson604

This was 4 years ago so don't know about now. Paid $500 from this dude @ https://www.yelp.ca/biz/lams-window-...inds-vancouver

1 x balcony sliding screen
2 x large window screens (living room and master)
2 x regular window screens (2nd and 3rd bedroom)
2 x small window screens (bathroom x 2)

4 years no issues, quality from what I can tell is good I definitely didn't have a moment where I questioned it might be on the cheap side.

This was the Asian guy that wanted taxes on top, when I asked if he can do a cash deal. 1x door & 2x windows, wanted essentially $800 taxes in. Hella steep.

[quasi]

Originally Posted by Euro7r

This was the Asian guy that wanted taxes on top, when I asked if he can do a cash deal. 1x door & 2x windows, wanted essentially $800 taxes in. Hella steep.

Probably charge you close to the same whether you get 2 windows or 6.

I know for us on small projects materials are such a small piece of it, it's the travelling to a location and setting up that accounts for most the cost regardless how much work we have. We end up paying our guys for the day, we can't ask them to go to a job in Delta in the morning and then drive out to North Vancouver when their done to finish the day.

BTW I'm not saying this guy isn't expensive because that sounds like a lot but it's the travelling to a location where the costs add up.

[Harvey Specter]

Originally Posted by van_driver

April sales were 1.5% above 10 year average compared to March sales that were 25% above average. Seems like a pretty big jump, maybe prices will follow soon

Vancouver Real Estate Price Growth Is Beginning To Moderate

Both monthly and annual price growth are decelerating. Monthly growth for March had been 3.6% and April came in at a third of that rate. Annual growth was also nearly two points lower, also indicating deceleration. These are still very large gains but some signs of moderation are beginning to show.
Greater Vancouver Home Sales Fell 34%

Greater Vancouver home sales suddenly took a huge dive last month. REBGV reported 3,232 homes sold in April, a drop of 25.6% from a month before. Sales are 34.1% lower than last year. The sharp drop helped to cool demand, which is a general theme seen in the past few weeks across Canada.

Greater Vancouver New Listings of Homes Fell 23%

New listings in Greater Vancouver also pulled back. There were 6,107 new listings of homes for sale in April, down 8.5% from a month before. Last month was 23.1% lower than the same month last year. These are big declines but not as much as seen for home sales, meaning less inventory pressure.

The easing inventory pressure was visible in the sales to new listings ratio (SNLR). April’s SNLR was 52.9%, indicating a balanced market that priced right for demand. Generally speaking, a balanced market is when the SNLR is between 40% and 60%. If the SNLR is higher, it’s a sellers’ market where prices rise, and below is a buyers’ market where prices fall.

Greater Vancouver real estate is still coasting on significant momentum. Recent gains would be huge if not compared to the past few months. This can be easily attributed to the fall in sales and healthier inventory. In the coming months, higher mortgage rates are likely to weigh down sales even further.

Toronto's RE market already getting rocked by raising rates, we'll probably see something similar happening in our market in the coming weeks as rates start climbing...

Greater Toronto Home Prices Fell $22,000 In Just One Month

Greater Toronto home prices fell and the City climbed at a much slower pace than we’ve seen this year. The TRREB composite benchmark (a.k.a. a typical) home fell to $1,354,000 in April, down 1.6% (-$22,000) from a month before. In the City of Toronto, the benchmark reached $1,373,300, up 0.6% (+$7,600) from the month before. The movement might seem mixed at first, but the common trend is a very sharp drop in growth.

One month before the momentum seemed like it would carry price growth forever. In March, home prices jumped across TRREB (+$36,000) and the City of Toronto ($57,400). April’s negative growth across TRREB might seem much worse than Toronto at first. However, the City went from a $57,400 increase to a $7,600 increase in just one month. At this rate, it would surprise few to see flat or negative growth in May, as mortgage rates climb.
Home Prices Have Seen Annual Growth Decelerate Fast

Greater Toronto real estate is also seeing annual growth decelerate very quickly. Last month’s annual growth for TRREB (+30.5%) was 4 points lower than reported in March. The City of Toronto (+25.6%) saw a more modest ~2.5 point deceleration. While more modest, losing a tenth of growth in a matter of days isn’t something to just look over.

Greater Toronto Home Sales Fell 41% In April

Greater Toronto home sales suddenly shrunk after a heated first quarter. TRREB reported just 8,008 sales in April, a drop of 26.9% from a month before. Sales came in 41.2% lower than last year, excluding April 2020. It was the fewest sales in the region since 2018. Falling sales aren’t unusual in markets with low inventory, but that wasn’t the case this time. Inventory levels are improving.

Toronto Home Sales Fell Faster Than Inventory, Releasing Pressure

TRREB reported fewer new listings, but the decline wasn’t nearly as significant as the drop in home sales. New listings came in at a healthy 18,413 units in April, down 11.7% from last year. Since 2015, only two Aprils have seen a higher number of new listings — 2021 and 2017. It fell less than sales, but the number of listings was above typical for the period.

Home sales falling faster than new listings means less pressure on inventory levels. The sales to new listings ratio (SNLR) fell to 43.5% in April, meaning the market is now on the low end of “balanced.” An SNLR between 40% and 60% is considered balanced, where home prices are suitable for the level of demand. Below is a buyers’ market where prices can fall, and above is a sellers’ market where prices generally rise.

Greater Toronto real estate slowed last month and it’s not a total mystery. Demand is eroding due to higher rates and buyer exhaustion. This has led to healthier levels of relative inventory, allowing price growth moderation. Economists warn once prices slow (or fall), more investors will be motivated to sell. Considering investors represent over a quarter of buyers, that’s a lot of potential inventory that can drive prices lower.

[gilly]

Recently bought windows too.

16 windows with screens and 2 patio doors. $13000 including tax.
Canto speaking sales and measurement person and caucasian installers.

[Hondaracer]

The brand of windows matters a lot more than installers or estimaters lol

I have some windows which are basically unbranded, installed under 10 years ago, they all are going to get replaced with starline windows in the next few. Absolutely terrible quality

[PeanutButter]

Originally Posted by ssjGoku69

You shouldn't claim the renovations as a Class 1 addition for CCA or else you would forfeit the principal residence exemption for that property. It isn't worth it.

However, if your rental suite has appliances (Class 8 - 20%), you could capitalize those to your rental schedule and claim the CCA on those specific items. In the event that you sell your home with those appliances included, then you could potentially face recapture which reverses some/all of those previously claimed CCA deductions.

ok, this is what I wanted more info on because I didn't understand which capital expenses would disqualify me from the PRE.

Thanks! I'm still going to speak to that accountant and get him to audit my taxes, but I always want information before I speak to someone about stuff like this!

Super appreciated!

[Alpine]

I used Starline and they have been good. A couple of loose trim issues that were warrantied pretty quickly.
My neighbor went with Centra and they had a few issues with water ingress after installation (also fixed by warranty).

[Hondaracer]

Starline probably makes the best vinyl windows available in the lower mainland imo

[Alpine]

6585 brooks sold for 3.8m!

[spacemanrick]

I had Westeck vinyl windows installed 5 years ago and am pretty happy with them. I do see a lot of Starline windows being installed these days. Does anyone know how the quality of Starline compares to Westeck windows? My sister is looking for windows and I recommended Westeck but maybe I should also have her look at Starline.

[Alpine]

According to my wife, Westeck is a tier above Starline. She finds that Westeck is able to offer more variations/customizations with their offerings (things like shape, sizes, profiles, etc...)

[SSM_DC5]

And your wife is in the window industry?

[6thGear.]

https://dailyhive.com/vancouver/deve...-parking-stall

Wesgroup defending themselves in response to this parking spot issue emailed out an Industry Release Statement. Of course I was sifting through my inbox looking for a lost email that I stumble upon this in my junk box. Copy/pasted for you guys



Wesgroup Properties Diligent in Following City of Vancouver Parking Guidelines

Developer disappointed in report of inaccurate facts regarding parking standards and practices


Vancouver, April 6, 2022 — As one of Western Canada’s largest, and most respected private real estate organizations, Wesgroup Properties is proud to have built more than 7,000 homes, in addition to owning and managing a significant portfolio of commercial space, with integrity and attention to high quality detail.

The River District community’s Avalon 3 is an example of a market residential project that Wesgroup is proud to have presented to the community when completion began in January of 2022. Hundreds of happy Avalon 3 homeowners are enjoying the River District lifestyle, set in the backdrop of this Fraser River community.

Wesgroup was disappointed to see media profile on a parking spot complaint that contained several inaccuracies and mispresented the company’s constant attention to both municipal guidelines and transparency with valued homeowners. Our customer service team had communicated with the purchaser in advance of this topic being presented to the media, and we had informed the purchaser that all parking spots, including the spot in question, are within City of Vancouver size standards and actually exceeds the standards on some measurements. We pride ourselves on our strong reputation and if there was an issue with the parking stall, we would diligently be addressing it with the purchaser, however, that is not the case.

As the real estate industry may be aware, BC municipalities, including The City of Vancouver regulate parking and set guidelines for the number of parking stalls, along with the size of the stalls. As a developer, we follow these guidelines and submit both a development permit and building permit, with parking detail, to the City for review and approval in advance of any construction start.

“We take municipal requirements seriously and we, along with our consultants and architect, work diligently to abide by these guidelines,” says Wesgroup Properties President Beau Jarvis. “It concerns us that a media outlet would present inaccurate information and that this may confuse any of our valued industry partners.”

The stall in question meets all of the City of Vancouver requirements, which has been confirmed by our architect IBI Group in writing, in addition to being constructed following an approved development and building permit from the City of Vancouver. Unfortunately, the measurements completed by the home purchaser, and members of the media, were not correctly executed in accordance with the regulations set out by the City of Vancouver.

Wesgroup Properties is available to answer specific questions at any time and we trust that our partners’ years of experience working with us as a company valuing honesty, transparency and integrity, will further confirm our practices and position on this matter.

Daily Hive - Please note that Daily Hive ran a subsequent piece to correct inaccurate references.


For more information, please contact:
Brad Jones
Wesgroup Properties Senior VP
604-648-1831
bjones@wesgroup.ca

For Chinese language information, please contact:
Carmen Ip
Wesgroup Properties Sales Manager
778-836-4886
cip@wesgroup.ca

[Alpine]

Originally Posted by SSM_DC5

And your wife is in the window industry?

Works for an architectural firm that does custom homes.

[Euro7r]

Originally Posted by 6thGear.

https://dailyhive.com/vancouver/deve...-parking-stall

CoV need to get their heads out their ass. Their zoning regulations are so outdated, makes you wonder what these clowns even do everyday.

[donk.]

Originally Posted by Euro7r

CoV need to get their heads out their ass. Their zoning regulations are so outdated, makes you wonder what these clowns even do everyday.

Stupid article.....

Buddyguy in article owns a 2018 X6 by the looks of it:
Width with mirrors is 86"
Stall clearance is 91" minus the bullshit pillar
91-86=5" (less due to pillar, he might need to consider his first world problems, and not back in)

5" / 2 sides = 2.5" clearance on each side of his vehicle.

The buyer messed up, by cheaping out, and getting a small stall (il give him benefit of the doubt, that his unit only comes with the "small car" stall, which he agreed to)
An X6, is not a "small car"

Play stupid games, win stupid prizes

[winson604]

Originally Posted by donk.

Stupid article.....

Buddyguy in article owns a 2018 X6 by the looks of it:
Width with mirrors is 86"
Stall clearance is 91" minus the bullshit pillar
91-86=5" (less due to pillar, he might need to consider his first world problems, and not back in)

5" / 2 sides = 2.5" clearance on each side of his vehicle.

The buyer messed up, by cheaping out, and getting a small stall (il give him benefit of the doubt, that his unit only comes with the "small car" stall, which he agreed to)
An X6, is not a "small car"

Play stupid games, win stupid prizes

On paper sure there's enough room if he in fact had a small car. I will say based on my one experience of moving into a new development 4 years ago that reality is a different thing. We have 55 units and thus our parkade had 55 spots (1 for each) + like 5 visitor spots. There was a mix of regular spots and small car spots. Nobody got to pick it's literally just at random. The small spots were questioned as being too small. The city came and measured proving it met the bylaw case closed. I can tell you for a fact that even with small cars and 100% perfectly executed parking that people still couldn't actually fit and reasonably get out of their car without dinging the other car. We are talking like a Honda Fit and Civic parking in these stalls it was pretty ridiculous. We were forced to be creative as strata and ended up taking away the visitor spots and giving them to 5 people who were effected instead.

[Alpine]

Originally Posted by winson604

On paper sure there's enough room if he in fact had a small car. I will say based on my one experience of moving into a new development 4 years ago that reality is a different thing. We have 55 units and thus our parkade had 55 spots (1 for each) + like 5 visitor spots. There was a mix of regular spots and small car spots. Nobody got to pick it's literally just at random. The small spots were questioned as being too small. The city came and measured proving it met the bylaw case closed. I can tell you for a fact that even with small cars and 100% perfectly executed parking that people still couldn't actually fit and reasonably get out of their car without dinging the other car. We are talking like a Honda Fit and Civic parking in these stalls it was pretty ridiculous. We were forced to be creative as strata and ended up taking away the visitor spots and giving them to 5 people who were effected instead.

Similar situation happened at my previous condo. Parking stalls handed out randomly, and the small car spots were small. We ended up converting several visitor stalls into owner occupied stalls too. I know the spots are fine according to our building code, but in reality, these spots are only meant for minis/fiats/smart cars. Most passengers would exit the car before the driver parked so they could get really tight on one side.

[Euro7r]

Originally Posted by donk.

Stupid article.....

Buddyguy in article owns a 2018 X6 by the looks of it:
Width with mirrors is 86"
Stall clearance is 91" minus the bullshit pillar
91-86=5" (less due to pillar, he might need to consider his first world problems, and not back in)

5" / 2 sides = 2.5" clearance on each side of his vehicle.

The buyer messed up, by cheaping out, and getting a small stall (il give him benefit of the doubt, that his unit only comes with the "small car" stall, which he agreed to)
An X6, is not a "small car"

Play stupid games, win stupid prizes

The owner never got to pick his stall nor does any owner really get to these days with new condo developments. He upgraded to a stall that has an EV charging port, which got assigned by the developer.