sibo zhang real estate

B.C.’s New Real Estate Taxes – Part 2

The Additional Property Transfer Tax

As mentioned in my last blog in March, one of two new real estate taxes announced by the B.C. government in its 2018 budget this past February is the Additional Property Transfer Tax. In this blog I will provide an outline of the measures covered by this tax and highlight some of the main points that could affect current B.C. property owners and prospective home buyers.

Prior to February 21, 2018, the property tax transfer rate was 15 % on properties in the Greater Vancouver Regional District. After February 21, the transfer tax increased from 15 % to 20 %, based on the fair market value at the time of registration for property transfers in the following areas in the province of British Columbia:

  • Greater Vancouver Regional District
  • Capital Regional District
  • Fraser Valley Regional District
  • Regional District of Central Okanagan
  • Regional District of Nanaimo

Two Important Exceptions

Excluding the Greater Vancouver Regional District, the remaining four regions noted above have two instances where you don’t have to pay the additional transfer tax on property transfers after February 21: First, you don’t have to pay if you register before, or on, May 18, 2018, as long as the property transfer is subject to a written agreement dated on or before February 20, 2018; and second, if the transfer is subject to a court order dated before February 20, 2018, or several other specific legal conditions on property transfers related to divorces, separations, or estates of deceased persons. I advise you to get advice from your lawyer if any of these situations applies to you.

As a general guide, the changes introduced on the property tax transfer took effect February 21, 2018. If you purchase a property that is registered at the provincial Land Title Office, you will need to pay certain transaction costs which are taxable. Without going into the details of the various legally required transactions – which your Realtor can explain to you – I want to point out to you that you can qualify for a reduced tax if you are: a) purchasing your first home; or b) purchasing a newly built home.

The tax is calculated on the fair market value at the time of property registration. Note that properties on the Tsawwassen First Nation lands are exempt from the additional property transfer tax. There are also two other exemptions which I would advise you get legal advice if you not sure they apply to you. The first is any exemption that applied to you for the previous property tax transfer also exempts you from the additional transfer tax, except in the following situations: i) a transfer resulting from an amalgamation; ii) a transfer to a surviving tenant; iii) a transfer where the transferee is or becomes a trustee in relation to the property, even if the trust does not change; and second, if you are confirmed B.C. Provincial Nominee and certain criteria are met for foreign nationals under the B.C. Provincial Nominee Program.

Foreign Nationals and Foreign Entities

If you are a confirmed under the B.C. Provincial Nominee Program when the property transfer is registered with the Land Title Office; ii) the property is to be used as your principal residence; iii) the property transfer is made to an individual. Note that the additional property transfer tax does NOT apply to registration of mutual fund trusts, real estate investment trusts or specified flow-through trusts. You should also note that if you were confirmed as a B.C. Provincial Nominee between August 2, 2016 and March 17, 2017, you might be eligible for a refund of the additional transfer tax if you paid it.

If you happen to be a foreign national, a foreign corporation, or a taxable trustee, there is also an additional transfer tax on residential properties in certain areas of British Columbia, as listed above.

This summary of the new Additional Property Tax is based on information provided by the Government of British Columbia. I have summarized what I think are the major points of interests for my clients; however, like any tax measures, there are always situations that may require more in depth information. I would recommend that if you think you may be in such a situation that you talk to a knowledgeable tax lawyer about your specific situation. I hope the above summary has informed you adequately to understand if the new transfer tax may apply to you, You may find additional information on the new transfer tax at: B.C. Provincial Budget Tax Changes.

I will watch for any changes in these tax rules and report what I see in the blog space. Please feel free to ask for any advice that I might be able to provide. I’m always happy to help in any way I can.

Thanks for reading!

Sibo Zhang, REALTOR®

Rainy Days By The Numbers

Rainy days by the numbers In case you haven’t noticed, it’s been raining a lot lately! That’s not a surprise in Vancouver. We’re used to long stretches of rain (and sometimes some snow) from around November to April each year. About this time every year, those warm sunny beach holidays in another country start looking very enticing.

Yet, according to measurements in Vancouver last year, it was March that had the most precipitation with 199.4 millimetres. It wasn’t until November that we got close to that again with 194.8 millimetres. It was newsworthy when November 2017 was recognized for its 27 days of rain out of 30 days, which tied it for the most days of rain in any month since 1953. The summer months were quite low in contrast. June had 46.4 millimetres and then the rain dropped dramatically in July and August to 1.8 millimetres and 5.0 millimetres respectively. Back to the present, however, this January has been very rainy, As of January 19, this month’s precipitation, measured at the sea level in Vancouver’s Coal Harbour, was already at 115.4 millimetres, significantly higher than all of January 2017 at 98.8 millimetres.

You may be someone who thinks about the number of rainy days rather than the amount of rain that actually fell. In that case, here’s a tabulation of the number of days in 2017 with rain fall over four different thresholds.

It’s noteworthy, though not surprising, that the greatest number of rainy days are those above 0.2 millimetres. This is evidence that our sense of that long stretch of rainy days from November to April is correct, but we should also note that the amount of actual rain each day is typically quite low. And the number of really heavy rain days is also quite low.

I think many people will find this to be counter-intuitive – especially this year, when it seems like almost every day is one of heavy rainfall. Perhaps this is a good reason to remind ourselves that our perceptions of rain can be emotionally influenced. So, it worthwhile to check the actual statistics occasionally. It’s a good reality check.

Over the past 25 years, annual precipitation in Vancouver has almost always exceeded 1,000 millimetres. Data collected by Environment and Climate Change Canada show only three years below that amount: 1993 with 837.0 millimetres; 2002 with 857.6 millimetres; and 2013 with 944.0 millimetres. It’s interesting that the lower volumes are increasing as we go forward, but is it a trend? Something to watch I think. For the years above 1,000 millimetres, the precipitation volume in 2016 was the highest at 1,356.8 millimetres. Close behind that was 2007 with 1,322.4 millimetres; 2014 had 1,276.3 millimetres and 2017 had 1,239.3 millimetres. There are a lot of ways to measure rain.

These statistics from Environment and Climate Change Canada are a great way to slice and dice the weather. As I have often mentioned, I like to analyze things statistically, but sometimes it’s also good just to use your basic intuition. For example, I was not able to find any statistics that correlated the amount of rain with a wind factor. With this correlation I think we could also develop a rain wetness index that is similar to what is called a chill factor. Meteorologists have devised the chill factor to indicate how cold it “feels” when you combine the wind and the temperature. So why not a rain wetness factor that would indicate how wet you get when the rain is blowing on you? For example, a heavy downpour in a 40-kilometre per hour wind might be the same rain wetness factor as light rain in an 80-kilometre per hour wind storm. Imagine the calculations you could do! Maybe that will help keep your mind off the rain.

I send you warm and cheery wishes during these rainy and grey winter days.

Thanks for reading!

Sibo Zhang, REALTOR®

green timbers urbanforest

North Surrey’s Green Timbers Urban Forest

One of my favourite places in Surrey is the Green Timbers Urban Forest, near the King George Skytrain station; or by car just off Green Timbers Way from 140th Street. It’s almost like a secret park – nestled behind big trees that hide it — and sound proof it — from the nearby Fraser Highway. For many families who live in towers or townhouses, this lovely park is their big back yard with lots of space for their kids to play, and for adults just to enjoy experiencing nature’s gifts. The expansive green space has hills and bushes that make for a perfect game of hide-and-seek, or just letting your energetic children run around to their heart’s content. There’s also an enchanted forest – well, the wooded area that can seem like one to a small child who will love to climb on the giant tree stump, or build a fort out of branch poles. At age two, my son Kingston had a wonderful time finding interesting little bugs on the forest floor. His curiosity about nature grew immensely and he still stops any time he sees a little insect on the ground and watches it intently.

Not only is the outdoor area a natural classroom, but the Park also has an indoor learning centre which can be used for social events as well. One year we reserved the large room for my son Warren’s eighth birthday. After he and his friends were worn out from all their outdoor games in the park, everyone came inside for cake and juice, and there were lots of indoor activities for the group as well.

During the school year, the Park offers a great choice of actual outdoor education courses to supplement regular school classes. Teachers can sign up their whole class for special elementary education, and there are even pre-school field trips for younger kids. There’s even something for teachers themselves. For the next Pro-D day, they might want to check out the outdoors teaching workshop offered at the Park.

This fall there are some great programs lined up at Green Timbers. Some are free and others that are longer and have more structure have a charge. For kids aged 3 to 5, there are Saturday morning sessions that are free. On October 20th and November 10 there are free Discovery Days for families with kids of all ages. Activities on these days are from 10 am to 2 pm and include a Nature Guide, books, puppets and other materials in the Sky Room before heading outdoors to explore the natural surroundings. If you have teenagers from 13 to 17 in your family, they can enjoy the Surrey Youth Stewardship Program, which has a collaborative art project and is also free on November 18 from 10 am to 2 pm.

Or there is the 24-session program on Tuesdays and Thursdays starting September 26 for about $400.00. This sounds like a great combination of day care and outdoor education. For older children aged 6 to 9, there are full day Friday classes on November 3rd and 9th which combine art with nature studies for about $50.00.

And I’ve saved for the last an event for what my own kids really love – Halloween! On Saturday October 28, there will be “Halloween in the Forest” from 10 am to 2 pm. This will be a free indoor and outdoor event complete with Halloween treats and a special Forest Fairy for young children.

You can find out more about the great times for families at Surrey’s Green Timbers Urban Forest by phoning 604-502-6065 or visiting the website at http://www.surrey.ca/culture-recreation/2311.aspx

Image via www.surrey.ca

Thanks for reading!

Sibo Zhang, REALTOR®

Coming Soon! HUGE 1 bedroom in the Observatory!

#606 – 10899 University Drive, Surrey BC

Coming soon to MLS! Welcome to the Observatory – Surrey’s concrete high-rise 1 block from the Gateway Skytrain. This HUGE, North-East facing 1 bedroom unit boasts mountain, river, AND city views! Everything you need within steps – access Downtown Vancouver in less than 40 mins, steps to Chuck Bailey Recreation Centre and Whalley Athletic Park, and shopping centre to be completed right beside Gateway Sky Train Station. Facilities include exercise room, sauna and hot tub.

Listed at $269,900. Bring your offer today. This deal will not last long!

Open House Saturday Aug. 19 and Sunday Aug. 20 2-4PM

Call Sibo with your questions: (604) 779-7992