surrey 604

End of the year, beginning of another

As we approach the end of 2018, I want to first thank my clients and others of you who have been my regular readers throughout the year. In addition to my monthly newsletter on real estate market activity in the Lower Mainland, it has been a pleasure to provide you with two personal blogs each month on a variety of topics normally about life in Surrey, where I live with my wife and two sons, and where I focus on my real estate business. My blog has given me the opportunity to get to research and appreciate the many amenities in Surrey that make our family life most enjoyable here, and also to provide an opportunity for the many people I meet in the course of my work to get to know me a bit better through my opinions and observations that have been expressed in this space. Among the benefits of generating a regular blog is not only for the information that readers can use in some practical way, but also as a way for me to stay involved in the life of my community and hopefully contribute, even If only in small way, to the quality of life we enjoy in our neighborhoods and in our city as a whole. I certainly hope that this will continue in the new year almost upon us.

End of my blog

When I meet anyone among my great circle of friends and acquaintances in the cafes, malls, and streets around our city I hope we will always have time to discuss the many topics that affect our dynamic and growing city. I will be looking forward to that very much because I’m afraid that the growing constraints on my time are not going to allow me to continue writing this twice-monthly missive in the new year. I will miss the opportunity to comment here as I have been doing for the past year; however, I must consider the many things that I need to attend to, and the needs of my growing list of real estate clients will be my communications priority. This means I will be continuing with my newsletter where I will analyze the changing market conditions each month, and offer advice based on market trends and a sound quantitative approach to the real estate conditions across the lower mainland. I know my clients appreciate the kind of information that I am capable of deriving from statistical data. This has been my formal educational training, and by combining it with my business experience in finance, investing and, real estate sales transactions both in residential and commercial properties, I believe this is where I can generate the greatest value for you. At the same time, I do not want to ignore the positive feedback I have received from my blog readers, particularly on civic topics of concern to Surrey residents. So, you can expect to find from time to time a commentary from me in other media as I continue to be an active and proud Surrey resident. This past year, for example, I had a commentary published by Surrey604 – a great website source of news and views about Surrey events – our famous Little League team from Whalley Sports Field that went all the to the World Little League championship in 2018. This made us all proud, and it’s the kind of event that I hope to write about when there’s an opportunity to give deserved kudos to a Surrey organization.

Merry Christmas and Happy New Year

I want to wish everyone a very Merry Christmas and also most prosperous and Happy Year. From my wife Cindy and my two sons Warren and Kingston, we send heartfelt best wishes to everyone we know and appreciate so much.

Thanks for reading!

Sibo Zhang, REALTOR®

Halloween Events in Surrey

Halloween is nothing if not popular. Last year in this blog space I wrote about the history of this annual celebration, which is a favourite time for scary costumes and “trick or treating” kids collecting candy with door to door visits in their neighbourhoods. As mentioned before, I like this event because it has adapted to new customs throughout many countries since its origin in ancient times. It is now a mix of popular themes from the many ideas that make up the Canadian cultural mosaic. For families with children there are special events on Halloween in areas throughout Metro Vancouver. Whatever your favourite Halloween costume or party theme might be, I’m sure you will be able to find some fun for your whole family this October 31. Here is selection of some of Surrey events to choose from:

Bear Creek Park Train

Children can enjoy the Pumpkin Express at Bear Creek Park. This little train offers a thrilling ride through a forest decorated specially for Halloween. And kids will get a small pumpkin as a treat on the platform to remember the event. If you can’t make it on Halloween, or if you want to keep that day for your own door-to-door trick or treating, you can still catch Woo Woo the train on days leading up to Halloween. enjoy. Here are dates and address: Each day leading to and including Halloween from 10:00 am to 4:30 pm at Bear Creek Park. There is a ticket price of $10. (Address below)

There is also a more frightening train ride for older children called the Scream Train at Bear Creek. On this ride you will experience Chain Saw Charlie and other ghoulish characters. The special effects and sounds along the route through the forest will be just what a thrill-seeking person is looking for on Halloween, but it’s too much for younger kids so keep in mind you have choice depending on the age of your children. Tickets for the Scream Train are $13 per person. The Scream train runs between 6:30 pm and 10 om each day leading up to and including Halloween. Bear Creek Part is at 13759 88th Avenue in Surrey. For more information online: www.bctrains.com/halloween

Potter Houses of Horror

Another Surrey favorite is Potter’s House of Horrors. Once again, these will be two haunted houses to explore. The long-time favorite, Monstrosity 2.0 will be open again with its gothic scariness. This can be a lot of fun for older kids and adults, but I wouldn’t recommend it for young toddlers who could be too frightened by the creatures inside. For youngsters under 10 years old I would recommend the L’il Haunters. However, for the very young even this might be a bit too spooky so I suggest you check it out first before taking in your very young children.

The second haunted house at Potter’s is Devil’s Descent, which opened for the first time last year. This is a more rugged design into mine shafts with rotting wood and machines, along with zombies and other scary monsters. You will need separate tickets for both haunted houses. These are available online which is recommended to avoid line-ups. The Potter Haunted Houses are also open on days leading up to and including Halloween. They are open each day from 4:00 pm to 6:30 pm (this time is recommended for younger kids as it is less scary) and from 7:00 pm to 10:00 pm (for the full frightening version). Located at Potters House, 12530 72nd Avenue, Surrey. You can find more details online at www.pottershouseofhorrors.com.

Not everything on Surrey’s Halloween agenda is just for kids. For teenagers and even adults there are great activities to enjoy on October 31.

Halloween for Teens

At the Surrey Centre Library from 3:30 pm to 5:30 pm teens from 13 to 18 years of age are invited to the free workshop where you can explore the spooky history of Halloween’s ancient origins. This is a free event so teens can enjoy learning about Halloween before they head out for an evening’s fun on October 31.

Halloween for Adults

For older adults 55 and older, there is a Halloween Tea at the Guildford Recreation Centre on October 31 from 1:00 pm to 2:30 pm The cost is only $15 and will get you tea and a light lunch of soup, sandwich and treats complete with live entertainment. And don’t be shy about coming in a costume. There will be prizes for the best ones. Register online at Guildford Recreation Centre with the registration code: 4632039.

Also in the afternoon on October 31, adults 55 and older are invited to the Fleetwood Community Centre for a Halloween Costume Party. This is a costume contest so get your best ideas on and show up between noon and 2:00 pm. There will be lots of fun with halloween music, games and entertainment as well as light food and refreshments. Tickets are $20 and can be purchased online at Fleetwood Community Centre with registration code 4626683.

However, you choose to enjoy Halloween this year, remember that there will be young children on our streets and we need to be extra careful as we drive on October 31. Wishing everyone a safe and fun Halloween 2018.

Thanks for reading!

Sibo Zhang, REALTOR®

How to Spend July in Surrey, BC

Now that July is here and kids are out of school for the summer, it’s time again to post some of the great activities happening this month in Surrey. Our Canada Day celebration on July 1 was a super way to kick of this month and was a great success with entertainment and activities for the whole family at the Bill Reid Millennium Amphitheatre. Here are some other activities for the rest of July.

A fun way to stay cool: swimming

If you are looking for somewhere to stay cool when the July weather gets hot in Surrey there are public swimming pools which are now open until September, and they’re free! Try a pool in your area. There are great outdoor pools in all around Surrey so you won’t have to drive a long way to find one. Here’s a list of neighbourhood outdoor pools:

  • Sunnyside Outdoor Pool at 15433 – 26 Avenue in South Surrey
  • Bear Creek Outdoor Pool at 13820 – 88 Avenue in North Surrey
  • Kwantlen Outdoor Pool at 13035 – 104 Avenue in North Surrey
  • Unwin Outdoor Pool at 6845 – 133 Street in Newton
  • Greenaway Outdoor Pool at 17901 – 60 Avenue in Cloversdale
  • Hjorth Road Outdoor Pool at 10277 – 148 Street in Guildford
  • Holly Outdoor Pool at 10662 – 148 Street in Guilford
  • Port Kells Outdoor Pool at 19340 – 88 Avenue in Guildford

There are also excellent indoor pools throughout Surrey but you will need to get a recreation pass for these: Grandview Heights Aquatic Centre; North Surrey Recreation Centre; South Surrey Indoor Pool; and the Surrey Sport and Leisure Complex.

There is also a great indoor wave pool at the Newton Recreation Centre at 13730 – 72 Avenue, and thanks to sponsorship by Fortis BC sponsorship, this is a free activity for the whole family to enjoy.

Newton Days

Newton also has a special program of summer events on four Saturdays this month. July 7, 14, 21, and 28 mark the return of the second Newton Days this year. On each of these Saturdays from noon to 4:00 pm at the Newton Grove there will be a number of fun events for families to enjoy such as a farms’ market, food trucks, and a free BBQ along with lots of activities for kids like a fun zone, face painting, and a Science World demonstration. Be sure to pick up your free $5.00 Farm voucher beforehand (one customer per day) at the Newton Recreation Centre, Newton Senior Centre, Newton Library, or from the Newton BIA photo booth.

Surrey’s neighbourhood parks are also great places for families with kids to enjoy this summer. Starting July 2 and running though to August 23, each of the parks will have free sports, games, and other activities.

On July 21 at Cloverdale Youth Park and Chuck Bailey Park there will be the Surrey Rides Tournament. Whether it’s on a skateboard, scooter or bike, young riders are invited to show their skills, as well as practice, in a safe and competitive environment provided in Surrey’s various parks. The Surrey Rises event series takes place at all Surry youth parks listed here:

  • Bear Creek Park, 84 Avenue and King George Blvd.
  • Chuck Bailey Youth Park, Tom Binnie Park at 12458 197 A Avenue.
  • Cloverdale Youth Park, 17800 64 Avenue
  • Fleetwood Youth Park, 16555 Fraser Highway
  • Fraser Heights Youth Park, 10588 – 160 Avenue
  • Guildford Youth Park, 15105 – 105 Avfenue
  • Kwantlen Youth Park, 13035 – 104 Avenue
  • South Surrey Youth Park, 14601 – 20 Avenue

Nature hikes and sights

If you would prefer a connection to nature, I recommend exploring Blackie Spit Park in the Crescent Beach area of South Surrey. Here you can find birds of many kinds. As one of the best bird watching areas in Canada, there are some 200 different species throughout the year. And basking in the sun on the sandbars you will see harbour seals and their pups. You can get some great walking exercise too. The nature trail around the park is 5 kilometre long and seeing the sights in this urban forest is a great way to spend a couple of hours.

Summer Music Series

Summer is Surrey is also rich in cultural life as well. This July you can take in some excellent music at free live performances featuring music styles from Bluegrass to New Orleans Jazz. Bring a blanket with you for these evening concerts and enjoy the music in one of these lovely park settings:

  • July 4 in Glades of Garden Park at 561 – 172 Street it’s Pop-eclectica with Caviar & Lace from 6:30 pm to 8:00 pm.
  • July 11 in Fleetwood Park at 15802 – 80 Avenue it Celtic with Tiller’s Folloy from 6:30 pm to 8:00 pm.
  • July 18 in Bear Creek Park Garden at 13750 – 88 Avenue it’s Folk Blues with Cannery Row from 6:30 t0 8:00 pm.
  • July 25 in Darts Hill Garden Park at 1633 – 170 Street there’s a free concert from 6:30 to 8:00 pm. Gates open at 5 pm, but note the park does not allow pets.
  • And if it’s an afternoon concert that appeals to you, then on July 13 Darts Hill Garden Park from 1:00 to 2:30 pm there’s the Razz Matazz Trio jazz concert.

Surrey Fusion Festival

Photo via: https://www.facebook.com/pg/SurreyFusionFestival/

Of course, you don’t want to miss Surrey’s annual Fusion Festival which takes place this year July 21 and July 22. This is a must attend event in Holland Park just south of the Surrey Centre Mall. The festival is a fantastic multicultural celebration of Surrey’s incredibly diverse population and this year will host over 45 cultural and community groups from around the world including more than 150 artists and performers.

These are just some of the great summer activities happening in Surrey during July. I don’t have space to describe everything there is to do, but Surrey is never without fun activities. They show you why Surrey is such a great place to live and raise a family.

Thanks for reading!

Sibo Zhang, REALTOR®

April’s Market Update for Metro Vancouver and the Fraser Valley

OUR CURRENT RESIDENTIAL MARKET

As we move into the second quarter of 2018, I’m sure everyone is looking forward to more sunshine and fewer rainy days. The weather can be a factor in our outlook and affect our decision-making even on major transactions like buying or selling a residential property. That’s a good reason to pay close attention to some key market trends occurring in local prices and inventories. With so much recent news on new government regulations and taxes on property, it’s easy to develop negative views that are not wholly informed by the facts of the marketplace. Another thing that can contribute to unnecessary pessimism is an over-emphasis on longer term historical comparisons. Regular readers of my monthly newsletter get a picture of the marketplace which is as up-to-date as available statistics make possible, allowing them to understand the where and why of prevailing prices in a context that is relevant to current circumstances. I will continue to breakdown the market segments for each property type in the following geographical regions of Metro Vancouver and the Fraser Valley.

METRO VANCOUVER

In the past month of March there were total of 4,450 new listings in Metro Vancouver which was increase of 5.4 per cent over the preceding February. That’s good news for the active home seeker; yet, it’s fewer than the 4,762 listings that occurred in the same month one year ago. The latter statistic might be of interest in broader academic analysis of the Vancouver residential market, but it’s probably not going to affect a decision to buy or sell at the current time because the prevailing market psychology doesn’t believe that prices are going to move backwards in time. 00 For that reason, I am always talking to my clients to understand what they really want to know for the decisions that are important to them. And what I hear is that you wish to know about what is happening now, and in a context of what it points to in the near term. So here are my selected key metrics based on market activity tabulated on the end of last month.

Across all residential property types in Metro Vancouver there were 2,517 sales at the end of March. This was 14 per cent higher than the preceding month of February, so we can see there is still upward pressure on based on demand and the relatively low increase in new listings. At the end of March, the total inventory of listed homes in Metro Vancouver was 8,380. Breaking down the demand in each property type, we see 14.2 per cent for detached homes; 39.9 per cent for townhouses; and 61.6 per cent for condominiums. The composite Benchmark price for all Metro Vancouver residential properties at the end of March was $1,084,000, an increase of 1.1 per cent over one month. Below I will look at each property type in more detail.

Detached Properties

The Benchmark price for a detached residential property in the Greater Vancouver area at the end of March was $1,608,500, more than half a million dollars above the composite benchmark price for the region. This may give you an idea of a general price level. However,it needs to be considered in relationship to the property types factored into the composite benchmark, which we can look at under their individual headings below. For Single Family Detached homes, the Benchmark price is an average between price extremities of $3,449,000 in Vancouver West (noteworthy: higher than West Vancouver at $3,115,400.) and $606,000 on the Sunshine Coast. I have selected three municipalities closest on the upper side of the Benchmark, and three which are closest on the lower side, where you can see the price change in the past month. On the higher side of the Benchmark were South Burnaby at $1,673,700, a decline of 0.5 per cent in one month; Richmond at $1,708,400, an increase of 0.6 per cent in one month; and North Vancouver at $1,723,200, an increase of 2.2 per cent in one month. On the lower side of the Benchmark are North Burnaby at $1,544,100, an increase of 0.7 per cent in one month; Vancouver East at $1,553,100, a decrease of 0.5 per cent in one month; and Port Moody at $1,484,800, an increase of 0.1 per cent in one month.

Townhouses

The Benchmark price for townhouses in the Greater Vancouver area at the end of March was $835,300, an increase of 2.0 per cent over one month. This average had extremities of $1,271,000 in Vancouver West, and increase of 1.7 per cent in one month; and $575,100 in Maple Ridge, an increase of 4.3 per cent in one month. Excluding Squamish and Whistler for their distance from Metro Vancouver, I have selected three municipalities closest on each side of the Benchmark. On the upper side are Vancouver East at $908,200, an increase of 4.5 per cent in one month; North Vancouver at $1,005,400, an increase of 0.7 per cent in one month; and Vancouver West at $1,271,000, an increase of 1.7 per cent in one month.

Condominiums

The Benchmark price for condominiums in the Greater Vancouver areas at the end of March was $693,500, an increase of 1.6 per cent in one month. The extremities for this average were West Vancouver at $1,278,600 and Ladner at $459,300. Again, excluding Squamish and Whistler because of their distance for Metro Vancouver buyers, here are three municipalities with closest prices on the upper and lower side of the Benchmark, along with their month over month price change: South Burnaby at $727,300, an increase of 2.4 per cent in one month; East Burnaby at $727,800, an increase of 3.0 per cent in one month; and Vancouver West at $844,700, an increase of 1.1 per cent in one month. Closest to the Benchmark on the lower side were Port Moody at $675,000, an increase of 1.0 per cent in month; Richmond at $659,700, an increase of 0.3 per cent in one month; and North Burnaby at $641,600, a decrease of 0.1 per cent in one month.

FRASER VALLEY

The Valley continues to be a very active market which shows no sign of slowing. With Spring around the corner, I urge anyone who is seriously contemplating a purchasing a Valley residence of any type to take advantage of open houses in their desired category. There were 2,865 new listings in March which was a close to a 25 per cent increase from February’s new listings. Keep in mind that new property listings in an active market can attract more prospective buyers, especially as the weather invites more viewers. Even with an increased inventory, demand is still very strong putting upward pressure on prices. At the end of last month there was a total inventory almost 5,000 properties overall. Townhouses and condominiums made up just over 50 per cent of all Valley sales and were the fastest to sell after their listing, on average 16 days for a townhouse and 13 days for a condominium. Single detached homes sold on average in 30 days after listing. Below I examine at each property type by their current Benchmark prices and make some recommendations on which municipalities you might wish to look.

Single Family Detached

A major milestone has been reached in the Fraser Valley. The million-dollar mark for a single detached residence was reached for the first time at the end of March with a Benchmark price $1,001,400, an increase of 0.9 per cent in one month. We have been waiting for several months to see this threshold reached. It now remains to be seen if this will be a psychological threshold as well, both for buyers and sellers. For the former, some prospective buyers may decide they are now priced out of a single detached home and begin to look for a home of another property type. For sellers, we will have to see if the new price level encourages more listings. Focusing on prices closest to this Benchmark average, along with their month-over-month price change, here is my standard selection of three areas above and below the Benchmark. On the upper side of the Benchmark were: Langley at $1.026,600, a decrease of 0.2 per cent in one month; Surrey at $1,031,500, an increase of 1.2 per cent in one month; and Cloverdale at $1,045,400, an increase of 0.8 per cent in one month. Closest on the lower side of the Benchmark price were: North Surrey at $980,100, an increase of 0.8 per cent in one month; North Delta at $950,200, an increase of 0.6 per cent in one month; and Abbotsford at $814,000, an increase of 1.3 per cent in one month.

Townhouses

The Benchmark price for a Fraser Valley townhouse at the end of March was $541,800, an increase of 2.0 per cent in one month. The extremities of this average were South Surrey/White Rock at $678,000 and Abbotsford at $383,000. Municipalities with prices closest to the Benchmark were: On the upper side, North Surrey at $573,800, an increase of 2.4 per cent in one month; Surrey at $577,800, an increase of 1.6 per cent in one month; and North Delta at $591,300, an increase of 1.8 per cent in one month; closest on the lower side of the Benchmark were: Langley at $514,900, an increase of 1.3 per cent in one month; Mission at $446,500, an increase of 3.0 per cent in one month; and Abbotsford at $383,000, an increase of 3.1 per cent in one month.

Condominiums

The Valley Benchmark at the end of March for condominiums was $440,400, an increase of or 4.3 per cent in one month. The extremities for this average were South Surrey/White Rock at $524,100 and Mission at $329,500. Municipalities with prices closest on the upper side of this Benchmark were: Langley at $444,500, an increase of 4.8 per cent in one month; Surrey at $452,300, an increase of 5.8 per cent in one month; and Cloverdale at $507,100, an increase of 3.9 per cent in one month. On the lower side of the Benchmark, the closest prices were in North Delta at $425,900, an increase of 8.1 per cent in one month; North Surrey, at $424,900, an increase of 3.5 per cent in one month; and Abbotsford at $336,600, an increase of 6.6 per cent in one month.

AFTERWORD

In closing, I suggest you pay close attention to any trends you may spot in the month-over-month increases in Benchmark prices that I mention in each newsletter. This may help you see where prices are driven by demand and as you become familiar with increases – or decreases – in the short term, this may assist your decision making. However, keep in mind that there may be other factors that cause price changes which is out of the usual range. If you have any questions and need specific information on any housing type in any of the areas in the lower mainland, please don’t hesitate to call me. I keep an close eye on the residential market, and I want to help my clients find what they are looking for, or to make a listing decision when the time is right.

Thanks for reading!

Sibo Zhang, REALTOR®

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®

B.C.’s New Real Estate Taxes (Part 1)

You have probably heard about two new taxes related to real estate transactions in the province of British Columbia. In order to give you a general understanding and to highlight some key issues that may affect prospective home buyers, I will devote this blog and my next one to these new taxes announced in the B.C. provincial budget this past February. In this blog I focus on the new Speculation Tax. In my next blog in early April, I will discuss the province’s Additional Property Tax Transfer.

New Speculation Tax

The British Columbia government announced in its 2018 Budget in February that it would introduce what is called a Speculation Tax which will affect some home owners and prospective home buyers. At this time, the government has not released all the details of this new tax, but in the blog I will outline the general features of the proposed legislation as there are many questions owing to a lot media attention on the topic.

The first thing I want to draw to the attention of my readers is that the majority of homeowners in B.C. will be exempt from the tax, which will apply initially in Metro Vancouver, the Fraser Valley, the Capital Regional District, the Nanaimo Regional District, and in the municipalities of Kelowna and West Kelowna. Home owners will receive first tax notice in the fall of 2018.

The government has said it will be effective for the 2018 tax year, and that it will target foreign and domestic persons who are speculating with their purchases of residential properties in the province. The tax rate for 2018 will be $5.00 per $1,000 of the assessed property value. In 2019, the rate will increase to $20.00 per $1,000 of assessed value. The government’s early information on what this means is not highly detailed yet, but its intent seems quite clear. Speculators will be considered as home owners who are primarily interested in the rising value their property may acquire during a time that it is not occupied by the owner, or a least occupied very little of the time, and is not a long-term rental property. Long-term rental properties will be exempt from the tax, but short-term rentals by out of province owners will be taxed.

Without digressing from the basic facts of the new tax, I think it’s safe to assume that this tax measure is an attempt to keep speculators from driving up housing prices by buyers who wish to invest in a residence to make money primarily from its rising value and not as place to live as a principal residence. In fact, the government’s preliminary information describes some of these owners as “Satellite families – households with high worldwide income that pay little income tax in B.C.”

Tax Credit for B.C. Residents Affected by the New Tax

For B.C. residents who may be caught by the tax because they vacate their home for extended vacations, or who may wish to rent the property on a short-term basis, the provincial government is going to implement a corresponding income tax credit to help offset the tax for B.C. residents. More information on this income tax credit has been promised by the government before the tax is implemented, but it has announced that Satellite families will not be eligible for a principal residence exemption, although they will still be eligible to claim the income tax credit – to the extent that they pay tax in British Columbia.

In cases where a B.C. resident who own two homes, for example a principal resident in Vancouver and a vacation property in Kelowna, they would be able to apply for the B.C. income tax credit. In other words, the vacation property will be subject to the new tax, but the owner will be able to claim an income tax credit in such a case. The B.C. government has said that among its goals for the new tax will be to minimize the administrative compliance burden for the vast majority of home owners who will be claiming the up-front exemption. The objective is to reduce the number of notices that will need to be sent in future years.

Obviously, there are many questions that need to be answered at this time. B.C. property owners that may be subject to the tax will want to know the definitions of key terms such as short-term and long-term rentals, and other specifics of the new speculation tax. I will endeavor to provide additional information for my readers when it is available. The B.C. government has said it will issue notices by mail to advise residential property owners to a B.C. Government website that will have an electronic tax form or phone numbers with more information. Until then, you may find some information at www.gov.bc.ca/propertytaxes

Thanks for reading!

Sibo Zhang, REALTOR®

Valentine’s Day and Family Day in Surrey, BC

February is a lovely month – perhaps it’s better to say a month in which we celebrate love – with Valentine’s Day on February 14. By happy timing it follows close behind another day to celebrate a different kind of love: Family Day, a B.C. holiday which this year falls on February 12. Each lovely day has different ways of expressing its own celebration.

Valentine’s Day is Big Business

The celebration of romantic love is big business. Statistics for Valentine’s Day spending in the USA in 2017 show the total economic value to that economy was $18.2-billion. That wasn’t even the all-time record high spending, which occurred in 2016 with $19.7-billion, but the trend appears to be upward. In 2015, it was $18.9-billion and in 2014 it was 17.4-billon. In case you are wondering how that breaks down into different kinds of Valentines expenditures, here are some statistics on the most popular types of gifts. Candy or chocolates account for about 50 per cent of gift choices and $1.7-billion spent by consumers last year. Greeting cards came in around 46 per cent but of course with a lower dollar amount totalling 1.0-billion. Going out for an evening of entertainment was the choice of 37 per cent for romantic celebrations with $3.8-billion spent. Close behind in popularity was the category of flowers with 37 per cent accounting for $2.0-billion; and finally, 19 per cent of romantics spent money of jewelry but with a whopping $4.3-bilion in expenditures.

For Canada, I found Statistics Canada figures that tracked similar categories of spending for all of 2015. Let’s assume these numbers are close to this year’s expenditures, and, keeping in mind that Canada’s population is much smaller than the USA, we’ve still got some serious romantic spending. For jewelry, it was $3.60-billion taking top spot. Next were perfumes and cosmetics at $2.89-billion. Canadian households spent an average of $225 on chocolates. Another source of statistics for Valentines spending in 2016 showed Canadian men spent more on gifts than women, with men averaging over $200.00 and women just over $100.00. One very interesting statistic I found was that just over 10 per cent of Canadians celebrate Valentine’s Day with their families. Which brings me to our other celebration this month, Family Day.

BC’s Family Day: An Economical Celebration

Unlike Valentines Day which has the same date each year, Family Day is set for the second Monday in February so the date changes. And of course, the history of Valentine’s Day goes back thousands of years, some scholars say to the second century AD. BC’s Family Day was established by an Act of the provincial Legislature and came into existence as an annual February holiday in 2013. I think it’s a wonderful holiday because my family is the most important part of my life and it gives us a day, along with other families, to enjoy doing something together. My wife and I can still exchange Valentine’s gifts and this is nice way keep the romance in our relationship, but when we are all together on Family Day, it let’s me know this is the happiest way to live.

One of the really nice things about Family Day is that you don’t have spend a lot of money on a big-ticket item to show your love. In Surrey, where we live, there are some great Family Day events this year that are absolutely free! Check out the Stewart Farm in South Surrey at 13723 Crescent Road where they will have free crafts, games and tours of the farm house. Or visit any of these Recreation Centres for free family friendly games late morning until early or mid-afternoon: Chuck Bailey Recreation Centre; Cloverdale Recreation Centre, Fleetwood Community Centre, Fraser Heights Recreation Centre, Guildford Recreation Centre and South Surrey Recreation Centre. There’s even free swimming at the South Surrey Indoor Pool from 1:30 to 3:00 pm on Family Day.

Whatever you happen to enjoy, living where we are to able to experience the joy of love in both our romantic relationships and with our families is worth a great fortune. I wish you much happiness for this time of year.

Thanks for reading!

Sibo Zhang, REALTOR®

Your January Real Estate Recap for Metro Vancouver and the Fraser Valley

A New Year and New Considerations

As we launch into a new year of residential sales across B.C.s Lower Mainland, there are developing issues that prospective home buyers and sellers will want to track, such as how increased mortgage rates and how new government regulations on qualifying for a mortgage may affect the market. I want to help my readers keep abreast of these developments and to make sense of the real estate market dynamics, so I invite you to check this newsletter each month for the latest updates.

In this my first newsletter of 2018, I will start with an overview of the how the residential market place looks compared with last year. This will give you a baseline for watching trends over the coming year, and hopefully will help your plans for either a selling or buying transaction, or simply being an interested observer of one of Canada’s most active real estate market places. I will start first with Metro Vancouver, with the most recent figures from the Real Estate Board of Greater Vancouver

METRO VANCOUVER

Overall, residential prices in the Greater Vancouver area (Metro Vancouver) rose substantially during 2017. The composite Benchmark price for all residential properties in Metro Vancouver at the end of last year was $1,050.300. That was almost 16 per cent higher than one year earlier. Breaking down the year-over-year increase to different property types, detached properties rose 7.9 per cent; townhouses rose 18.5 per cent; and condominiums rose 25.9 per cent. The higher relative price increases reflect greater sales activity in the latter two categories.

Detached properties

As was the case for much of last year, detached properties did not show large month-to-month price increases. In that category it still appears to be waiting game. Owners of detached homes are not rushing to list their properties at a Benchmark price of $1,605,800. If it is price that determines when to list a property for sale (remember the maxim: ‘everything has its price’), this suggests owners see more residual value in their detached properties than the current price level would fetch. There was actually a decrease of 54 per cent in detached listings from November to December 2017. So, if you want to consider the purchase of a detached home at this time, I believe it would be an excellent investment even at Benchmark price over $1.5-million. You should also keep in mind that new government regulations on mortgage qualifications (see my blog post for December 2017, Your December Real Estate Recap), as well as the prospect of higher interest rates coming later this year, will likely shrink the number of buyers for higher priced properties in the detached property category. For home seekers with a lower price in mind, I would recommend looking in townhouse or condominium market where there are some very good opportunities with Benchmark prices for properties in Metro Vancouver still under $1-million.

Townhouses and Condominiums

The Benchmark price for townhouses in Metro Vancouver at the beginning of 2018 was $803,700 and for condominiums $655,400. For townhouses, this was a slight decrease of 0.2 per cent from the previous month, while for condos it was an increase of 1.1 per cent. In last month’s newsletter I said I would watch a possible widening in the difference between townhouse and condo prices based on monthly increases and decreases. The current differential is a total of a 1.3 per cent compared to last month’s 0.7 per cent, so it is continuing to look as if a widening gap is beginning. It is too early to be certain at this time, but I’ll continue to track this metric so you can check next month to see how it is developing. Below is a breakdown of my suggested areas to look for these two property types based on Benchmark prices at the end of December 2017. This month I have selected three areas with the greatest month-over-month increase and three with the biggest declines, but each with prices still under $1-million.

For townhouses, the greatest increases in Benchmark prices were in East Vancouver at $879,200, a 2.0 per cent increase over one month; Ladner at $776,900, a 2.7 per cent increase over one month; and North Burnaby at $728,200, a 2.3 per cent increase over one month. The biggest decreases from the preceding month (excluding the outlying areas of Whistler and Squamish) were in North Vancouver at $982,800, a decrease of 0.1 per cent over one month; Port Coquitlam at $632,700, a decrease of 0.5 per cent over one month; and Maple Ridge at $527,500, a decrease of 1.0 per cent over one month.

For condominiums, the greatest increase in Benchmark prices were in Richmond at $637,200 an increase over one month of 4.0 per cent; Pitt Meadows at $422,800, an increase over month of 2.1 per cent; and Burnaby East at $681,400, an increase over one month of 1.9 per cent. Two others also had month-over-month increases of 1.9 per cent: New Westminster at $503,300 and Coquitlam at $502,900. Three areas had one month decreases: North Vancouver at $560,600, down 1.0 per cent; Tsawassen at $462,400, down 1.1 per cent; and Vancouver West at $807,100, down 0.5 per cent.

FRASER VALLEY

The Benchmark price for a detached property in the Fraser Valley at the end of last year was $976,400, a slight increase from the preceding month but still under the $1-million bracket in Metro Vancouver. However, as was the case throughout the year, townhouse and condominium sales dominated residential sales in the Valley at the end of 2017. These two property types made up more than half of all Valley sales 2017, with 5,198 townhouses and 6,183 condominiums.

The Fraser Valley continues to be the area of choice for many first-time home buyers in 2018, both for young families and individuals starting out in their careers. It offers very attractive properties in comfortable and enjoyable neighborhoods with excellent lifestyle options for both families and singles. Public transportation planning across the region makes any of the municipalities an excellent investment option for the long term. And with prices still significantly below those in Metro Vancouver, the Fraser Valley continues as one of the hottest residential markets. In the month December 2017, there were a total of 1,344 sales, the second highest December volume ever. Nonetheless, there were 1,277 new listings during the month, and the inventory for December 2017 ended with 3,818 active listings, so I encourage anyone looking for Valley home to shop seriously at this time. Below I make my monthly recommendations for the areas to search for excellent value. For each property type this first month of January, 2018, I have chosen to compare the year-over-year increase along with the last month increase or decrease. In some municipalities the Benchmark price has crept above the $1-million mark for the first time. Many clients in this market segment want to consider their investment compared to Metro Vancouver, so I have therefore selected four municipalities where the detached Benchmark price is over $1-million. For townhouses and condos, I have selected areas with the biggest increase from one year earlier.

Detached Homes

At the end of 2017, the December Benchmark price in Surrey/White Rock was $1,472,300, an increase of 4.8 per cent from one year earlier, and an increase of 0.2 per cent from the preceding month. The Benchmark price for a detached property in Surrey Central was $1,014,900, an increase of 17.1 per cent from one year earlier, and an increase from one month earlier was 0.2 per cent. In Cloverdale, the December Benchmark price was $1,004,900, an increase of 17.2 per cent from one year earlier, and an increase of 0.7 per cent from the preceding month. In Langley the December Benchmark price was $1,002,200, an increase of 15.8 per cent from one year earlier, and a decrease of 0.5 per cent from the preceding month.

Townhouses

The biggest year-over-year increase in townhouse Benchmark prices at the end of December 2017 was in North Surrey with a Benchmark price of $414,200, an increase of 28.8 per cent from the end of 2016, and a 1.8 per cent increase over the preceding month. The Benchmark price in Surrey Central was $549,700, an increase of 27.2 per cent from the end of 2016, and an increase of 1.6 per cent from the preceding month. In Cloverdale, the Benchmark price was $572,600, an increase of 26.9 per cent and a 0.9 per cent increase from the preceding month.

Condominiums

North Delta saw the biggest year-over-year increase in the Benchmark price for condominiums. There the Benchmark price at the end of 2017 was $361,800, an increase of 44.1 per cent since the end of 2016, and a 3.9 per cent increase over the preceding month. The Benchmark price in Langley was $396,900, and increase of 40.3 per cent over one year, and an increase of 2.0 per cent from the preceding month. In Abbotsford, the Benchmark price was $286,600, an increase of 33.6 per cent over one year, and a increase of 2.5 per cent from the preceding month.

I hope you fill find these suggestions helpful, and I wish you great success in your home search or sale as we begin this new year. I am always eager to help my clients in any way I can. Remember, I keep a close watch on market changes, so please feel free to call me any time you have a question.

Thanks for reading!

Sibo Zhang, REALTOR®

5 Ways to Achieve Your New Year’s Resolutions in 2018

Happy New Year!

It’s that time of year again, that annual ritual of making promises to ourselves – what we like to call our New Years Resolutions. Even if it’s a not quite a promise, most of us will make a kind of mental preparation to improve some aspect of our life, whether it’s a positive activity like going to the gym regularly, or quitting a bad habit like smoking. The nice thing about personal resolutions is that when we keep them we can feel proud of our accomplishment, and if we don’t… well then, there’s always next year. I found some research by the Statistics Brain Research Institute on the length of time most people keep their resolutions. This may help you with the kind of resolution you want to make.

Statistically, 76.2 per cent of people who make New Years resolutions are only able to keep them for one week. For two weeks, it’s 68.4 per cent. Only 58.4 per cent get through a whole month, and beyond six months it’s 44.8 per cent. Unless we are doggedly determined to keep a resolution, we can feel better that we belong to the three quarters of people who fail by the end of January, or are part of more than half of people who fail by the end of June.

For those who really want to succeed in their Resolutions, I dug up this advice from an article by a psychologist, Joseph Luciani, Ph.D., published in US News in 2015. I think it’s still very applicable advice.

To summarize what Dr. Luciani says:

1. Think small

Choose simple challenges and make them happen every day. When you get used to keeping your personal commitments, then move on to step 2.

2. Build self-trust

Cultivate your capacity for self-trust. Choose challenges that you know you can succeed at. Don’t make a pledge that you’re not sure you can keep.

3. Invent challenges

This is something you should do all day long. For example, finish your paperwork before watching TV

4. Cultivate optimism

Don’t let negatives rule your life. Focus on positives. If you’re a complainer, then stop complaining to yourself and to others.

5. Develop critical awareness

This means you should strive to shed light on any negative habits you have, and don’t let them dominate your life. Now, if you are still convinced you want to make a News Years Resolution, I found a list of ones that statistically you should probably not make.

According to Time magazine, the top ten resolutions that are most commonly made and then broken are: 1) lose weight/get fit; 2) quit smoking; 3) learn something new; 4) eat healthier and diet; 5) get out of debt and save money; 6) spend more time with family; 7) travel to new places; 8) be less stressed; 9) volunteer; 10) drink less. I’ll bet there’s at least one resolution in the above list that you have tried to make in the past.

Before you decide it’s pointless to try any more, remember that 1) you don’t have to be a statistic (that is, an average – you are still a unique individual; and 2) why not see what happens if you apply Dr. Luciani’s advice to the big goals listed in the Time magazine article! Instead of resolving something so big as to quit smoking, try to quit smoking for one day. Or instead of saying something so general as learning something new, try to focus on something specific like, “Learn how to cook new dish.” I adopted the following formula for reaching achievable goals in business. Maybe it can also be used for personal resolutions too.

The formula is called SMART. Make your goals 1) Specific; 2) Measurable; 3) Attainable; 4) Relevant; 5) Time-sensitive.

 

Of course, if you simply cannot keep your New Years Resolutions, maybe it’s better simply to resolve not to make any resolutions at all. But I’m guessing you won’t be able to keep that one either.

Whatever you decide, I urge you to make this one resolution with me: Have a Happy New Year!

Thanks for reading!

Sibo Zhang, REALTOR®

 

Living and Investing in Surrey

In my last blog, I referred to a recent report from the Real Estate Investment Network (REIN) which ranked Surrey in the top 10 cities in British Columbia. That’s a major endorsement for Surrey when it comes to deciding where you want to invest in a home and raise a family! And when a city gets known for something like that, its reputation escalates as everyone gets even more excited about what they’ve got.

You can be certain that purchasing a home in Surrey is truly an investment, and an exceptionally good one. My wife and I are raising our family here and we couldn’t be happier. I had to dedicate my entire last blog to the multitude of events here just for youth. In this post I will try to balance the scale a bit in favour in why Surrey is great place for adults too; and of course having a great choice of things to do together with your children is also one of the biggest rewards!

Let’s begin with a theme that is the hallmark of living everywhere in British Columbia – the great outdoors! Surrey has preserved some of the most beautiful areas for parks – and the City’s Parks Board has developed breathtakingly beautiful parks. In fact, there are so many parks in Surrey I would have to publish a book to mention them all. The City of Surrey’s website says there are 200 parks here, but if you count all the greenbelts and nature areas, there are over 600 sites according to British Columbia tourism ministry. I have gone to a tourist website, Trip Advisor Canada, and the British Columbia’s Tourism website to narrow the list to 10 of their top picks (just to be impartial). I’ve started in South Surrey and picked some great parks and nature preserves moving northwards.

There are beautiful parks with unique programs in every one of Surrey’s neighbourhoods.

i) Crescent Beach

This spectacularly beautiful area is the perfect place for a walk along the ocean or taking in a sunset on the western horizon.

ii) Redwood Park on 20th Avenue

This beautiful forest has lots of trails for exploring, and the park has lots of fun things for kids too, like a playground keeping with the Redwood theme of the park, and “fairy houses” along the main trail.

iii) Blackie Spit Park at 3135 McBride Ave

This area is also on the ocean coast and is a great place to walk with kids, or you can walk your dog on leash. For the more adventurous, it’s also a great place to launch a kayak and a paddle the coast line.

iv) Urban Safari Rescue Society at 1395 176 St.

Even if you don’t like lizards, spiders, snakes, turtles, and all sorts of bugs, then I’ll bet your kids do! This place isn’t exactly a park, but for nature it’s a great place to learn about all those interesting creatures that children are curious about.

v) Unwin Park in the Newton Area

Large 36-acre community park with a host of different activities for the whole family. Check out the baseball diamonds, batting cage, cricket fields, soccer fields, lacrosse boxes, and even a basketball court.

vi) Green Timbers Urban Forest at 4600 Block of 100th Ave.

My family loves this place. It’s a tranquil and quiet park off the Fraser Highway near King George Boulevard. You can go biking or for lovely walk along a beautiful pond. There is lots to do here for adults or children.

viii) Bear Creek Park at 13759 88th Ave.

A great place to entertain young children. There is the Bear Creek miniature train, a waterpark and outdoor pool to cool down in the summer or you can play mini-golf or hike along the trials.

ix) Fleetwood Park in the Fleetwood area

This is a perfect place for picnics and play areas (including a spray park) to scenic gardens and nature trails.

x) Guildford Height Park

This is a 16-acre park near Guildford town centre, two blocks east of the Guildford Mall. Its games court and multi-use grass field is perfect for a game of pick-up soccer of frisbee.

Now, let’s take depart from the great outdoors and take a quick look at what Surrey offers for arts and cultural activities. There is already an abundant appreciation of the cultural activities that make for a vibrant community life in Surrey. Here are just a few examples of the kind of investments the City has made to ensure a enhanced cultural and artistic community is appreciated and enjoyed.

The Surrey Arts Centre at 13750 88 Ave. is like a one-stop shop for visual and performing arts. It is the arts hub for the Surrey Art Galley and the Surrey Civic Theatre’s Main Stage and Studio Stage Theatre. Here you can discover contemporary art through changing exhibitions, permanent artworks, and free events like tours, talks and art-making opportunities. Or you can watch actors, dancers and musicians perform on stage. You can even explore your own creativity through the many art and performing arts classes offered here. In the Newton area, the Arts Council of Surrey has turned the old Firehall into its new headquarters. Named the Surrey Cultural Centre, it is a thriving centre advancing arts appreciation in the heart of the Newton in Surrey. This is just a small sample of what has already started in Surrey’s cultural life. The City is committed to developing its arts and cultural communities. In 2011, Surrey adopted a broad framework – The Surrey Cultural Plan — to enhance the City’s ability to effectively mobilize the resources and talent available within the community towards a sustainable, dynamic, and socially cohesive city with an enviable quality of life. These are just a few of the factors that contribute to Surrey’s making the top 10 list in the REIN report.

You can see that choosing Surrey as place to raise your family is indeed smart investment in the future!

Thanks for reading!

Sibo Zhang, REALTOR®

 

*image via www.surrey.ca