Yesterday, British Columbia's finance minister Mike De Jong announced new fiscal calming measures aimed at reducing the rate at which real property is appreciating throughout the province, and in particular in the metro Vancouver area. These measures included a 15% foreign ownership tax which is to be assessed on any person who lives outside of Canada and holds foreign citizenship, and a provision for the Vancouver city council to allow for special 'vacancy' taxes on any property that remains vacant for an extended period of time. The foreign tax is to take place on August 2 2016, and applies to properties that were pre-sold prior to this date and the vacancy tax has yet to be rolled out with no specific details released at this time.
Since then, our office has been flooded with calls from prospective and current clients who are curious about the implication on Alberta or more common; the implication for Alberta based investors who own property in BC. Will these easing measures have an effect on Albertan prices? Are the rules nation wide? Will Alberta follow suit? These are reasonable questions and if you are an Alberta real estate investor, then these issues may have a significant financial burden. We understand that there is much confusion in the market right now.
While the BC government’s plan to tax foreign investors has a bearing on rental rates, we believe the impact will be minimal because relatively few of these properties are put into the rental pool in the first place. We believe that the reduced momentum may succeed in driving prices down, especially in the high end markets which could, in a drawn out and somewhat convoluted way translate to the rental market. Ultimately, we believe that rental homes in the affected price point are somewhat sparse to begin with.
The vacant property holding tax is more likely to have a bearing on investors, however the particulars are entirely ambitious at this time because you draft legislation or bylaw has been drafted, for this reason we are unable to comment on the matter.
Hope Street is a premium provider of professional property management services whose goal is to provide the best property management Edmonton and Calgary have to offer.
Edmonton, AB Hope Street Real Estate Corp, - an innovative property management firm specializing in residential family and executive level rental housing, was awarded "Property Management Service Provider of the Year" at Canadian Real Estate Magazine’s Top Investor Awards Gala on Saturday, March 5, 2016 at The Toronto International Center.
"This award is a huge win for us", said Shamon Kureshi, President & Managing Broker of Hope Street. "I feel it recognizes our team’s success over the years, and celebrates how we’ve improved the residential tenancy management model through our innovation and through new methods of high tech production and automation." Hope Street edged out numerous other finalists including property managers, strata managers, investment dealers, and financial service provides, for the highly contested award.
“The awards committee had a tough time this year due to the volume and quality of the nominations." said Claudine Ting, Marketing Manager for KMI Media, the magazine’s parent company. The Top Investor Awards are an event designed to cite Canada’s thriving investment real estate community in education, ethics, advocacy, and economics. The Top Investor Awards honour the year's best in property management, community involvement, and social impact at their annual awards gala.
"Hope Street has worked very hard to establish themselves one of the Canada’s leading high-tech rental agencies," remarked commercial lawyer and gala attendee and Toronto area broker Melissa Marshall. "They've really been instrumental in rethinking and reshaping the old property management model, known for adversarial 'push' style management and they have created a modern process based model full of innovation and automation. They are really on the leading edge of property managers anywhere - not just in Edmonton and Calgary.”
With offices in Calgary and Edmonton Alberta, Hope Street is a tight knit team of handpicked and hand trained rental real estate insiders who provide solid results for private investors since 2005. The firm maintains a modest staff of about 50, and through an efficient business model successfully manages a portfolio of nearly 1500 high quality detached, executive, and condominium rental properties.