Archive for July, 2010

Saanich to Legalize Secondary Suites

Friday, July 30th, 2010

Secondary Suite

Secondary Suite

Secondary suites in Saanich

There are at least 9,000 secondary suites in Saanich according to a report by municipal planning staff in February, 2010. This means that 30 to 40 per cent of single-family homes have one. Secondary suites are currently illegal under Saanich Zoning Bylaw 8200.

Saanich planning staff have recommended an amendment to the bylaw to legalize secondary suites, subject to several conditions.

In response to these recommendations and input from the community, the District of Saanich will soon legalize secondary suites in a test area south of McKenzie Avenue. Under the new bylaw, which should come into effect at the end of August, existing suits will be recognized and efforts will be made to convert them to meet the legal regulations.

What is a secondary suite?

The Municipality of Saanich currently defines secondary suites as “an additional dwelling unit located within a building of residential occupancy containing one other dwelling unit” They are currently prohibited under Saanich Zoning Bylaw 8200 Section 5.24.

What does this mean for homeowners?

Under the new bylaw existing suites will be required to meet the BC Building Code and pass an inspection. The BC Building Code is available at the public library or on request from the District of Saanich.

A property with a secondary suite in Saanich must meet the following requirements:

  1. No more than one secondary suite is permitted per lot and/or single family dwelling;
  2. The secondary suite must be wholly contained within the single family dwelling;
  3. The registered owner of the property must occupy the residence as their primary dwelling;
  4. A building occupancy permit for the secondary suite must be approved by the District of Saanich;
  5. One additional on-site parking stall for the tenant must be provided and approved by the District of Saanich;
  6. The total number of kitchens within the single family dwelling, including the secondary suite, may not exceed two; and
  7. Boarding is not permitted within the secondary suite.

Secondary Suite

Secondary Suite

Parking

Parking is an area of concern for many Saanich residents who are already dealing with issues around street parking availability. Although secondary suites may increase demand for parking space, parking on streets appears to be an inevitable reality with or without legal suites.

The Municipality of Saanich has recommended a committee be formed to work on parking solutions. Neighbours may be encouraged to rent out extra parking spots on their property.

Status of other suites in the area

Secondary suites are not legal in Oak Bay or Esquimalt. The City of Victoria permits the use of secondary suites. Secondary suites are permitted in Central Saanich as long as the owner of the suite lives in either the suite or the residential single family building.Secondary suites are permitted in the Municipality of Langford as long as the suite exists in an owner-occupied one family dwelling.

Map of the study area

Resources:

Canada Revenue Agency – Rental Income

Rental Owners and Managers Society of BC (ROMS BC)

Residential Tenancy Branch

The BC HST and Real Estate

Saturday, July 3rd, 2010

Well, like it or not the HST (Harmonized Sales Tax) is now in effect, as of July 1, 2010. The HST rate will be 12% (5% federal component + 7% provincial component). There’s seems to be lots of confusion around how HST applies to real estate transactions so we have wanted to provide some information here.

Previously under the GST, new housing is taxed while resale housing was not. No housing sales are directly taxed under the PST, although the B.C. Ministry of Finance states that there an average of 2% PST is embedded in the cost of new homes from PST charges on construction materials. Under the HST the full 12% HST would apply only to new housing.

The key points to be aware of are:

  1. The HST rate will is 12% (5% federal component + 7% provincial component).
  2. The PST will be eliminated completely.
  3. The HST only applies to new housing. HST does not apply to resale housing.
  4. There will be a partial rebate of the provincial portion of the HST of up to $26,250 on new housing.
  5. Input tax credits will be available for HST in the same manner as under the current GST.
  6. BC will provide a rebate for new housing purchased as a primary residence to ensure that purchasers of new homes up to $525,000 do not pay any additional tax.
  7. Real estate services such as real estate commissions and legal fees are now subject to HST.

About the New Housing Rebate

Homes under $525,000 will be subject to a tax 2% higher than the current system. Homes over $525,000 will be taxed at a rate 7% higher than under the current system, less a flat $26,250 rebate (in addition to the GST new housing rebate currently available for homes up to $450,000).

An HST partial rebate (5% of the purchase price up to a maximum rebate of $26,250) will be provided to purchasers on new housing.

The rebate rate was created to ensure that purchasers of eligible new homes priced up to $525,000 do not pay more provincial HST, on average, than under the PST.

Rebate rate: (7% BC HST minus 2% embedded BC PST) / 7% BC HST

Rebate rate = 5/7 = 71.43% of provincial portion of HST paid, to a maximum of $26,250.

Total Sales Tax Payable on New Homes

Total Sales Tax Payable on New Homes

Total Sales Tax Payable on New Homes

Following are a few links to additional information and resources about the BC HST.

If you have any questions about the HST, or anything else regarding real estate, please don’t hesitate to contact Komal or Karn Dodd at 250-744-3301 or email info@KomalDodd.com

Good Choices Available for Buyers as Sales Soften and Inventory Rises in June

Friday, July 2nd, 2010

July 2, 2010

Following is a summary of the market activity during the previous month including comment from the Victoria Real Estate Board President.

Greater Victoria home buyers have a growing number of properties from which to choose as inventory levels rose to 4,730 properties available for sale at the end of June – up 25 per cent from the 3,794 available properties a year earlier. Sales, meantime, softened last month while overall prices showed little change.

A total of 625 homes and other properties sold in June through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®), down from the 695 sales in May. There were 946 sales in June of last year.

Average Selling Price

Victoria Real Estate Board President, Randi Masters, noted that total sales so far this year are running just two per cent ahead of the same period a year ago. “We are seeing a reverse trend to a year ago when sales were slow in the early part of the year then picked up considerably in the spring and summer; this year sales have now begun to slow somewhat following a strong start to the year.” Masters added that despite the increase in the number of properties available for sale, prices have remained very stable. “Last month showed very little change in overall prices and with the growing inventory of available properties we do not anticipate any significant upward pressure on prices in the near future.”

Overall average prices for single family homes and condominiums rose slightly last month while prices for townhomes moderated. The average price for single-family homes sold in Greater Victoria last month was $649,280 up from $646,483 in May. The median price declined to $560,822. The six-month average showed little change at $635,893. There were 27 sales of over $1 million including two on the Gulf Islands. The overall average price for condominiums was $331,131 last month, up from $324,005 in May. The average for the last six months was $325,664. The median price for condominiums in June rose to $295,000. The average price of all townhomes sold last month was $429,549 down slightly from $430,713 in May. The median price declined to $405,500. The six month average was $447,573.

MLS® sales last month included 326 single family homes, 168 condominiums, 67 townhomes and 20 manufactured homes.

If you have any questions about the these stats, or anything else regarding real estate, please don’t hesitate to contact Komal or Karn Dodd at 250-744-3301 or email info@KomalDodd.com

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