Scuttled property deals, legal risks mount from Vancouver’s foreign … – Financial Post

British Columbia’s decision to impose a 15 per cent tax on foreign buyers to cool Vancouver’s scorching housing market is poised to derail more than 400 deals worth millions of dollars and may prompt calls for legal action.

Deals falling apart in Vancouver under weight of new provincial tax

THE CANADIAN PRESS/Jonathan Hayward

Anecdotal tales of offshore buyers walking away from deals in Metro Vancouver are being heard across real estate offices.

Continue reading.

At least 427 deals are likely to collapse due to the new measure, according to Dan Morrison, president of the Real Estate Board of Greater Vancouver, citing responses from 27 brokers to an e-mail inquiry. The group didn’t calculate the value of those sales, though they would be worth about 4 million based on the average purchase by a foreign buyer of 6,945.

That may just be the tip of the iceberg.

“It’s a domino effect,” said Elton Ash, Western Canada regional executive vice president for Re/Max Holdings Inc. Not only will foreign buyers be hit but also Canadians who had contracts to sell and had already put offers on their next house, he said. Morrison said the effects could take years to play out given some deals involve the sales of condos still being built.

Canada’s westernmost province introduced the tax for foreigners as price gains intensified this year. The cost of a detached home in Canada’s third-biggest city soared 38 per cent over 12 months to .58 million in July. British Columbia joins governments from the U.K. to Australia imposing measures to tame markets that have become unaffordable for many local residents. Public support for intervention was building in Vancouver, where anecdotes abound of offshore investors bidding up prices then leaving homes empty. The provincial levy only applies on homes in the Metro Vancouver area, where three-quarters of the foreign money flows.

Legal Challenges

Re/Max is still tallying the fallout of the tax, which took effect Aug 2. At least one million sale in West Vancouver fell through because the levy would’ve added another .1 million to the cost, Ash said.

The measure will hit the lower-end of the market the hardest, such as 0,000 condos, where the cost won’t be so easily absorbed, said Ash. Some sellers will react by cutting prices to salvage deals, he said.

The province’s move may yet face legal challenges.

‘Just Shocking’

The new tax violates several treaties and agreements that Canada holds with at least 28 other countries, including the U.S. under the North American Free Trade Agreement, according to Barry Appleton, managing partner of law firm Appleton & Associates, who specializes in international law and has launched claims in Canada under NAFTA.

“It’s just shocking that a provincial government in Canada would choose to have a knee-jerk reaction in this way,” Appleton, who has been contacted by several entities but declined to name them, said by phone from San Francisco. Depending on the treaty in place, individuals or the state can sue Canada for losses related to the tax, as well as challenge the tax as discriminatory, he said.

It’s just shocking that a provincial government in Canada would choose to have a knee-jerk reaction in this way.

“All legislation is vetted to ensure it complies with the constitution,” said Jessica McLachlin, a spokeswoman for British Columbia’s finance ministry in Victoria. “The government received opinions on the additional property transfer tax and we believe British Columbia is within its rights to act as it did to protect the residential real estate market from distortions.”

Legal Precedent

France may provide a precedent for legal action. Foreign homeowners went to court in 2012 after the nation raised the capital gains tax on overseas investors to as high as 33.5 per cent, arguing discriminatory treatment was illegal under France’s bilateral tax treaties. They were successful, and France reduced the rate to 19 per cent for all sellers, said Miranda Bothe, founder of Paris Property Group.

In British Columbia, an individual U.S. investor could file a claim under NAFTA, as could residents in 28 other countries that have trade agreements with Canada, Appleton said. Chinese buyers, who comprise the majority of foreign investors in British Columbia according to the finance ministry data, could file individual constitutional challenges under Canada’s Charter of Rights and Freedoms. The Chinese government could also go after the Canadian government, Appleton said.

“This government has been going around the world telling people that Canada is open to foreign investment, and now they discriminate against those very individuals, and with little warning,” he said.

Tax Avoidance

In the ultra-luxury real estate market where homes go into the tens of millions of dollars, at least a dozen buyers and sellers moved the transaction closing date up before the tax came into effect, said Sotheby’s International Realty Canada Chief Executive Officer Brad Henderson.

Sotheby’s Canada had about 20 high-end home deals organized the week prior to the tax announcement, and those deals are still proceeding as planned, Henderson said.

A bigger risk than cancelling deals is the possibility that the tax may push some investment into the shadows as investors seek methods around the measure to avoid paying millions, he said.

Henderson’s firm found that the fastest-rising category of luxury homes were in the million-plus space driven by foreign investors, he said by phone Thursday. “People are buying homes worth millions and if they have the means to avoid the tax, they’ll take that route.”

Bloomberg News

Real estate agent offering to help angry, Canada-bound voters sell homes – Fox News

‘If my candidate doesn’t win, I’m moving to Canada.’

It’s a common refrain, perhaps even more so in the heated 2016 race – but one South Carolina real estate agent is trying to cash in on the voter discontent. 

Jeff Cook has put up roughly a dozen billboards across eastern South Carolina with pictures of Donald Trump and Hillary Clinton staring down, next to the phrase, “Moving to Canada? We can sell your home.”

The 48-foot by 15-foot advertisements offering the services of Jeff Cook Real Estate started cropping up along freeways and interstate highways back when the Republican convention began last month. The signs are, naturally, a bit tongue-in-cheek – after all, few ever make good on threats to move across the northern border. But Cook tells FoxNews.com they’re generating business, including from people who say they’re looking to make that move.

“It’s a joke, obviously, but we have actually started the application process for people who want to move if their candidate doesn’t win,” Cook said. “I don’t know if they understand the immigration issues, cost and paperwork that comes with this. But they say they’re serious.”

Cook’s billboards have become a sensation across social media, resulting in about 200 additional phone calls a week from around the world. Most of the callers are looking for a good realtor, some are members of the media (including press from New Zealand and Great Britain) and others are fascinated by the ads and want to give their opinion.

The latest headlines on the 2016 elections from the biggest name in politics. See Latest Coverage →

He says his website traffic has jumped from 30,000 to 150,000 hits per month and he has hired additional agents to handle the workload.

But not all the calls are friendly.

“People in Canada are calling saying, ‘Please don’t send those people up here; we don’t want anything to do with those people,’” Cook said. “We also had someone from Mexico call and they were mad that we’re not sending people to Mexico.”

Cook has also fielded calls from Canadian realtors who want the referrals to any clients who move. So far, Cook says he has about 20 people in the application process who say they’ll wait to see if their candidate loses before placing their homes up for sale.

“If their candidate doesn’t get in – they want to go,” Cook said.

Tommy Welch, 34, of Charleston, is one of those people. A Trump supporter mulling over what he would do if Clinton wins, he said he saw the billboard and called Cook. He filled out the paperwork and is now debating: Toronto or Montreal?

“The billboard is kind of comical but right on; the election is a scary deal that everyone is gearing up for,” Welch said. “I would definitely, 100 percent, positively entertain the possibility [of moving] if Hillary won.”

Welch, a real estate investor, says he owns three homes and would sell them all, and uproot his family of four. 

Another Charleston resident and Trump backer who wanted to be identified only by his first name, Jim, said he too called Cook after seeing one of the billboards and filled out the form.

“If Hillary wins, I will definitely move out of this country,” said Jim, 72. “I’d like to say I’ll go to Canada, because it’s the closest place I could get to. Any place but here.”

Cook is casting himself as an equal opportunity realtor. He’ll sell the homes of conservatives who want to flee a Clinton presidency, and liberals who want nothing to do with a Trump-led America. (That latter list would include celebrities threatening to leave if Trump wins like Cher, Samuel L. Jackson and Raven-Symone.)

The clients – and the phone calls – are “pretty evenly split” in their support for Trump or Clinton. So far no one has actually sold their house because of the election, he said. He’s also gotten new clients moving locally who called because they thought the billboards were funny.

As for Cook, who is he voting for?

“I’m not going to say,” he said.

Expect To See More Purpose-Built Rental In Canadian Real Estate … – Huffington Post Canada

Whether or not you are familiar with the term “purpose-built rental stock,” chances are that you will be hearing more about it soon.

The Canadian real estate market is a major driving factor for the economy right now, and the rental market segment is a contributing force. Purpose-built rental units are making a comeback and in coming years they will play a larger role in the Canadian rental real estate market.

The Canada Mortgage And Housing Corporation (CMHC) defines purpose-built rental stock as “privately initiated, purpose-built rental structures of three units or more.”

If you can’t picture what that looks like, a quick drive down the Gardiner Expressway will make it very clear. Interest rates are low, renter demand is high and investors are looking for alternate income streams. These combined factors create the perfect condition for purpose-built housing projects to thrive.

Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

Here’s an INFOGRAPHIC published by Canadian Real Estate Finder RentSeeker.ca showing how many rental apartments there are in Toronto, Ottawa, Montreal, Vancouver and more cities across Canada.
Primary vs. Secondary Rental Market

Properties within the rental real estate market are categorized into two sub-groups. The primary rental market consists of purpose-built rental stock, which are large structures with multiple units that were built with the intent of each unit being rented. Most of these structures are apartment buildings, as the primary rental market (made of purpose-built rental stock) consists of rental units that exist within privately owned structures in groups of three or more, including both apartment buildings and row housing divisions.

On the other side, the secondary rental market consists of renter-occupied rental units that do no fall into the above category. This includes buildings with fewer than three units, condominiums (often which have a mix of owners and renters) single detached homes and various other structures. This market is steadily growing along with sprawling urban developments, but this has been the case for several years.

On The Rise Since 2000

During the mid 90s, construction of new purpose-built rental projects took a major nose dive. After Canadian interest rates hit an all-time high of 16 per cent in February of 1991, to little surprise, people weren’t buying properties. Since 2000, interest rates have been below five per cent and real estate has been sky rocketing, including construction projects in both the primary and secondary rental markets.

Furthermore, when borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners. Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy.

vancouver rental
A modern concrete apartment building in Vancouver, B.C.

Fresh Investment Opportunity

As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming. Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide. Since the 1990s, the percentage of apartment construction projects that are purpose-built has never been higher. While there is debate of how much of that can be accounted for by foreign investment, there is no shortage of articles talking about the effect of Chinese investors on housing prices.

Renting is Back!

The idea of working for your whole life, making sacrifices and being “house broke” to pay your mortgage is becoming an antiquated train of thought, especially when prices are this high. Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

There are a host of social factors that also contribute to the increase demand for rental units. The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals.

You’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial “now.”

The future of Canada looks extremely bright, and there are new Canadians every year looking for places to live in high-demand markets, thereby also driving up the need for rental units. Here is a list of what average rents are in cities across Canada and what that rent cost can get you.

Vacancy Rates

The vacancy rates for the primary rental market in Canada was 3.5 per cent as of October 2015, which is a 0.5 per cent increase from the previous year. Rental markets in cities like Calgary (that have a high number of temporary energy sector workers) are soft, contributing to the overall high vacancy rate which is much lower in the blazing hot Toronto and Vancouver markets. Overall, there are lots of options out there and new developments are transforming Canadian neighbourhoods into world renowned cities.

This means that smart renters know there are deals to be had, which is why it’s so important to use the resources at your disposal to find the best place to live. Apartment and real estate finders like RentSeeker.ca have helped thousands of renters across Canada find apartments to rent using intuitive search features which allow users to sort through thousands of apartment listings which match the criteria searched.

There are more options in the rental market than ever before, and there are no signs of it slowing down, so use the resources available online and you’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

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Expect To See More Purpose-Built Rental In Canadian Real Estate … – Huffington Post Canada

Whether or not you are familiar with the term “purpose-built rental stock,” chances are that you will be hearing more about it soon.

The Canadian real estate market is a major driving factor for the economy right now, and the rental market segment is a contributing force. Purpose-built rental units are making a comeback and in coming years they will play a larger role in the Canadian rental real estate market.

The Canada Mortgage And Housing Corporation (CMHC) defines purpose-built rental stock as “privately initiated, purpose-built rental structures of three units or more.”

If you can’t picture what that looks like, a quick drive down the Gardiner Expressway will make it very clear. Interest rates are low, renter demand is high and investors are looking for alternate income streams. These combined factors create the perfect condition for purpose-built housing projects to thrive.

Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

Here’s an INFOGRAPHIC published by Canadian Real Estate Finder RentSeeker.ca showing how many rental apartments there are in Toronto, Ottawa, Montreal, Vancouver and more cities across Canada.
Primary vs. Secondary Rental Market

Properties within the rental real estate market are categorized into two sub-groups. The primary rental market consists of purpose-built rental stock, which are large structures with multiple units that were built with the intent of each unit being rented. Most of these structures are apartment buildings, as the primary rental market (made of purpose-built rental stock) consists of rental units that exist within privately owned structures in groups of three or more, including both apartment buildings and row housing divisions.

On the other side, the secondary rental market consists of renter-occupied rental units that do no fall into the above category. This includes buildings with fewer than three units, condominiums (often which have a mix of owners and renters) single detached homes and various other structures. This market is steadily growing along with sprawling urban developments, but this has been the case for several years.

On The Rise Since 2000

During the mid 90s, construction of new purpose-built rental projects took a major nose dive. After Canadian interest rates hit an all-time high of 16 per cent in February of 1991, to little surprise, people weren’t buying properties. Since 2000, interest rates have been below five per cent and real estate has been sky rocketing, including construction projects in both the primary and secondary rental markets.

Furthermore, when borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners. Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy.

vancouver rental
A modern concrete apartment building in Vancouver, B.C.

Fresh Investment Opportunity

As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming. Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide. Since the 1990s, the percentage of apartment construction projects that are purpose-built has never been higher. While there is debate of how much of that can be accounted for by foreign investment, there is no shortage of articles talking about the effect of Chinese investors on housing prices.

Renting is Back!

The idea of working for your whole life, making sacrifices and being “house broke” to pay your mortgage is becoming an antiquated train of thought, especially when prices are this high. Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

There are a host of social factors that also contribute to the increase demand for rental units. The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals.

You’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial “now.”

The future of Canada looks extremely bright, and there are new Canadians every year looking for places to live in high-demand markets, thereby also driving up the need for rental units. Here is a list of what average rents are in cities across Canada and what that rent cost can get you.

Vacancy Rates

The vacancy rates for the primary rental market in Canada was 3.5 per cent as of October 2015, which is a 0.5 per cent increase from the previous year. Rental markets in cities like Calgary (that have a high number of temporary energy sector workers) are soft, contributing to the overall high vacancy rate which is much lower in the blazing hot Toronto and Vancouver markets. Overall, there are lots of options out there and new developments are transforming Canadian neighbourhoods into world renowned cities.

This means that smart renters know there are deals to be had, which is why it’s so important to use the resources at your disposal to find the best place to live. Apartment and real estate finders like RentSeeker.ca have helped thousands of renters across Canada find apartments to rent using intuitive search features which allow users to sort through thousands of apartment listings which match the criteria searched.

There are more options in the rental market than ever before, and there are no signs of it slowing down, so use the resources available online and you’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Follow HuffPost Canada Blogs on Facebook

MORE ON HUFFPOST:

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Canada’s Most Expensive Homes Include Only Two Not From B.C.

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BC Real Estate Association predicts ‘moderated’ Metro Vancouver housing market – CKNW News Talk 980

B.C. Real Estate Association predicts 'moderated' Metro Vancouver housing market

The B.C. Real Estate Association is out with its third quarter report.

This time around, the association predicts the 15% foreign buyers tax will have a moderating effect on the housing market in Metro Vancouver through to the rest of the year.

However, that would be offset by strong sales in markets outside of that.

Residential sales are expected to climb this year to about 10.4%, which would break the previous record of 106,310, set in 2005.

It’s also predicting housing demand will moderate by next year, but only to about 8%, to 104,400 units.

BC Real Estate Association predicts ‘moderated’ Metro Vancouver housing market – CKNW News Talk 980

B.C. Real Estate Association predicts 'moderated' Metro Vancouver housing market

The B.C. Real Estate Association is out with its third quarter report.

This time around, the association predicts the 15% foreign buyers tax will have a moderating effect on the housing market in Metro Vancouver through to the rest of the year.

However, that would be offset by strong sales in markets outside of that.

Residential sales are expected to climb this year to about 10.4%, which would break the previous record of 106,310, set in 2005.

It’s also predicting housing demand will moderate by next year, but only to about 8%, to 104,400 units.

Scuttled property deals, legal risks mount from Vancouver’s foreign … – Financial Post

British Columbia’s decision to impose a 15 per cent tax on foreign buyers to cool Vancouver’s scorching housing market is poised to derail more than 400 deals worth millions of dollars and may prompt calls for legal action.

Deals falling apart in Vancouver under weight of new provincial tax

THE CANADIAN PRESS/Jonathan Hayward

Anecdotal tales of offshore buyers walking away from deals in Metro Vancouver are being heard across real estate offices.

Continue reading.

At least 427 deals are likely to collapse due to the new measure, according to Dan Morrison, president of the Real Estate Board of Greater Vancouver, citing responses from 27 brokers to an e-mail inquiry. The group didn’t calculate the value of those sales, though they would be worth about 4 million based on the average purchase by a foreign buyer of 6,945.

That may just be the tip of the iceberg.

“It’s a domino effect,” said Elton Ash, Western Canada regional executive vice president for Re/Max Holdings Inc. Not only will foreign buyers be hit but also Canadians who had contracts to sell and had already put offers on their next house, he said. Morrison said the effects could take years to play out given some deals involve the sales of condos still being built.

Canada’s westernmost province introduced the tax for foreigners as price gains intensified this year. The cost of a detached home in Canada’s third-biggest city soared 38 per cent over 12 months to .58 million in July. British Columbia joins governments from the U.K. to Australia imposing measures to tame markets that have become unaffordable for many local residents. Public support for intervention was building in Vancouver, where anecdotes abound of offshore investors bidding up prices then leaving homes empty. The provincial levy only applies on homes in the Metro Vancouver area, where three-quarters of the foreign money flows.

Legal Challenges

Re/Max is still tallying the fallout of the tax, which took effect Aug 2. At least one million sale in West Vancouver fell through because the levy would’ve added another .1 million to the cost, Ash said.

The measure will hit the lower-end of the market the hardest, such as 0,000 condos, where the cost won’t be so easily absorbed, said Ash. Some sellers will react by cutting prices to salvage deals, he said.

The province’s move may yet face legal challenges.

‘Just Shocking’

The new tax violates several treaties and agreements that Canada holds with at least 28 other countries, including the U.S. under the North American Free Trade Agreement, according to Barry Appleton, managing partner of law firm Appleton & Associates, who specializes in international law and has launched claims in Canada under NAFTA.

“It’s just shocking that a provincial government in Canada would choose to have a knee-jerk reaction in this way,” Appleton, who has been contacted by several entities but declined to name them, said by phone from San Francisco. Depending on the treaty in place, individuals or the state can sue Canada for losses related to the tax, as well as challenge the tax as discriminatory, he said.

It’s just shocking that a provincial government in Canada would choose to have a knee-jerk reaction in this way.

“All legislation is vetted to ensure it complies with the constitution,” said Jessica McLachlin, a spokeswoman for British Columbia’s finance ministry in Victoria. “The government received opinions on the additional property transfer tax and we believe British Columbia is within its rights to act as it did to protect the residential real estate market from distortions.”

Legal Precedent

France may provide a precedent for legal action. Foreign homeowners went to court in 2012 after the nation raised the capital gains tax on overseas investors to as high as 33.5 per cent, arguing discriminatory treatment was illegal under France’s bilateral tax treaties. They were successful, and France reduced the rate to 19 per cent for all sellers, said Miranda Bothe, founder of Paris Property Group.

In British Columbia, an individual U.S. investor could file a claim under NAFTA, as could residents in 28 other countries that have trade agreements with Canada, Appleton said. Chinese buyers, who comprise the majority of foreign investors in British Columbia according to the finance ministry data, could file individual constitutional challenges under Canada’s Charter of Rights and Freedoms. The Chinese government could also go after the Canadian government, Appleton said.

“This government has been going around the world telling people that Canada is open to foreign investment, and now they discriminate against those very individuals, and with little warning,” he said.

Tax Avoidance

In the ultra-luxury real estate market where homes go into the tens of millions of dollars, at least a dozen buyers and sellers moved the transaction closing date up before the tax came into effect, said Sotheby’s International Realty Canada Chief Executive Officer Brad Henderson.

Sotheby’s Canada had about 20 high-end home deals organized the week prior to the tax announcement, and those deals are still proceeding as planned, Henderson said.

A bigger risk than cancelling deals is the possibility that the tax may push some investment into the shadows as investors seek methods around the measure to avoid paying millions, he said.

Henderson’s firm found that the fastest-rising category of luxury homes were in the million-plus space driven by foreign investors, he said by phone Thursday. “People are buying homes worth millions and if they have the means to avoid the tax, they’ll take that route.”

Bloomberg News

Expect To See More Purpose-Built Rental In Canadian Real Estate … – Huffington Post Canada

Whether or not you are familiar with the term “purpose-built rental stock,” chances are that you will be hearing more about it soon.

The Canadian real estate market is a major driving factor for the economy right now, and the rental market segment is a contributing force. Purpose-built rental units are making a comeback and in coming years they will play a larger role in the Canadian rental real estate market.

The Canada Mortgage And Housing Corporation (CMHC) defines purpose-built rental stock as “privately initiated, purpose-built rental structures of three units or more.”

If you can’t picture what that looks like, a quick drive down the Gardiner Expressway will make it very clear. Interest rates are low, renter demand is high and investors are looking for alternate income streams. These combined factors create the perfect condition for purpose-built housing projects to thrive.

Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

Here’s an INFOGRAPHIC published by Canadian Real Estate Finder RentSeeker.ca showing how many rental apartments there are in Toronto, Ottawa, Montreal, Vancouver and more cities across Canada.
Primary vs. Secondary Rental Market

Properties within the rental real estate market are categorized into two sub-groups. The primary rental market consists of purpose-built rental stock, which are large structures with multiple units that were built with the intent of each unit being rented. Most of these structures are apartment buildings, as the primary rental market (made of purpose-built rental stock) consists of rental units that exist within privately owned structures in groups of three or more, including both apartment buildings and row housing divisions.

On the other side, the secondary rental market consists of renter-occupied rental units that do no fall into the above category. This includes buildings with fewer than three units, condominiums (often which have a mix of owners and renters) single detached homes and various other structures. This market is steadily growing along with sprawling urban developments, but this has been the case for several years.

On The Rise Since 2000

During the mid 90s, construction of new purpose-built rental projects took a major nose dive. After Canadian interest rates hit an all-time high of 16 per cent in February of 1991, to little surprise, people weren’t buying properties. Since 2000, interest rates have been below five per cent and real estate has been sky rocketing, including construction projects in both the primary and secondary rental markets.

Furthermore, when borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners. Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy.

vancouver rental
A modern concrete apartment building in Vancouver, B.C.

Fresh Investment Opportunity

As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming. Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide. Since the 1990s, the percentage of apartment construction projects that are purpose-built has never been higher. While there is debate of how much of that can be accounted for by foreign investment, there is no shortage of articles talking about the effect of Chinese investors on housing prices.

Renting is Back!

The idea of working for your whole life, making sacrifices and being “house broke” to pay your mortgage is becoming an antiquated train of thought, especially when prices are this high. Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

There are a host of social factors that also contribute to the increase demand for rental units. The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals.

You’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial “now.”

The future of Canada looks extremely bright, and there are new Canadians every year looking for places to live in high-demand markets, thereby also driving up the need for rental units. Here is a list of what average rents are in cities across Canada and what that rent cost can get you.

Vacancy Rates

The vacancy rates for the primary rental market in Canada was 3.5 per cent as of October 2015, which is a 0.5 per cent increase from the previous year. Rental markets in cities like Calgary (that have a high number of temporary energy sector workers) are soft, contributing to the overall high vacancy rate which is much lower in the blazing hot Toronto and Vancouver markets. Overall, there are lots of options out there and new developments are transforming Canadian neighbourhoods into world renowned cities.

This means that smart renters know there are deals to be had, which is why it’s so important to use the resources at your disposal to find the best place to live. Apartment and real estate finders like RentSeeker.ca have helped thousands of renters across Canada find apartments to rent using intuitive search features which allow users to sort through thousands of apartment listings which match the criteria searched.

There are more options in the rental market than ever before, and there are no signs of it slowing down, so use the resources available online and you’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Follow HuffPost Canada Blogs on Facebook

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Canada’s Most Expensive Homes Include Only Two Not From B.C.

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BC Real Estate Association predicts ‘moderated’ Metro Vancouver housing market – CKNW News Talk 980

B.C. Real Estate Association predicts 'moderated' Metro Vancouver housing market

The B.C. Real Estate Association is out with its third quarter report.

This time around, the association predicts the 15% foreign buyers tax will have a moderating effect on the housing market in Metro Vancouver through to the rest of the year.

However, that would be offset by strong sales in markets outside of that.

Residential sales are expected to climb this year to about 10.4%, which would break the previous record of 106,310, set in 2005.

It’s also predicting housing demand will moderate by next year, but only to about 8%, to 104,400 units.

Expect To See More Purpose-Built Rental In Canadian Real Estate … – Huffington Post Canada

Whether or not you are familiar with the term “purpose-built rental stock,” chances are that you will be hearing more about it soon.

The Canadian real estate market is a major driving factor for the economy right now, and the rental market segment is a contributing force. Purpose-built rental units are making a comeback and in coming years they will play a larger role in the Canadian rental real estate market.

The Canada Mortgage And Housing Corporation (CMHC) defines purpose-built rental stock as “privately initiated, purpose-built rental structures of three units or more.”

If you can’t picture what that looks like, a quick drive down the Gardiner Expressway will make it very clear. Interest rates are low, renter demand is high and investors are looking for alternate income streams. These combined factors create the perfect condition for purpose-built housing projects to thrive.

Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

Here’s an INFOGRAPHIC published by Canadian Real Estate Finder RentSeeker.ca showing how many rental apartments there are in Toronto, Ottawa, Montreal, Vancouver and more cities across Canada.
Primary vs. Secondary Rental Market

Properties within the rental real estate market are categorized into two sub-groups. The primary rental market consists of purpose-built rental stock, which are large structures with multiple units that were built with the intent of each unit being rented. Most of these structures are apartment buildings, as the primary rental market (made of purpose-built rental stock) consists of rental units that exist within privately owned structures in groups of three or more, including both apartment buildings and row housing divisions.

On the other side, the secondary rental market consists of renter-occupied rental units that do no fall into the above category. This includes buildings with fewer than three units, condominiums (often which have a mix of owners and renters) single detached homes and various other structures. This market is steadily growing along with sprawling urban developments, but this has been the case for several years.

On The Rise Since 2000

During the mid 90s, construction of new purpose-built rental projects took a major nose dive. After Canadian interest rates hit an all-time high of 16 per cent in February of 1991, to little surprise, people weren’t buying properties. Since 2000, interest rates have been below five per cent and real estate has been sky rocketing, including construction projects in both the primary and secondary rental markets.

Furthermore, when borrowing money is cheap, both builders and buyers of apartments and condos reap the benefits. Lowered interest rates mean less debt for builders, and low mortgage rates makes buying more affordable, especially for first-time property owners. Both factors fuel the need for new developments, and the added jobs created from all these projects has certainly helped the Canadian economy that is experiencing tough times in other sectors like manufacturing and energy.

vancouver rental
A modern concrete apartment building in Vancouver, B.C.

Fresh Investment Opportunity

As investors and stock holders deal with a stormy economic situation, new investment streams are needed, and real estate is booming. Builders are hammering out buildings in record numbers, and investors like the steady and reliable income that the purpose-built units provide. Since the 1990s, the percentage of apartment construction projects that are purpose-built has never been higher. While there is debate of how much of that can be accounted for by foreign investment, there is no shortage of articles talking about the effect of Chinese investors on housing prices.

Renting is Back!

The idea of working for your whole life, making sacrifices and being “house broke” to pay your mortgage is becoming an antiquated train of thought, especially when prices are this high. Buying a home is far less attainable than it used to be for young couples and home ownership isn’t the holy grail of retirement that it was for previous generations of Canadians.

There are a host of social factors that also contribute to the increase demand for rental units. The consumeristic, modern mentality of making life count and living in the moment means short-term life enjoyment (travel, fine dining) can supersede long-term financial goals.

You’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

Whether you attribute that to the generation of Millennials or simply acknowledge that many people now prefer to have liquid assets and enjoy themselves, Canadians are living a more nomadic lifestyle than previous generations. This includes life changes like switching careers (let alone jobs) and living in the proverbial “now.”

The future of Canada looks extremely bright, and there are new Canadians every year looking for places to live in high-demand markets, thereby also driving up the need for rental units. Here is a list of what average rents are in cities across Canada and what that rent cost can get you.

Vacancy Rates

The vacancy rates for the primary rental market in Canada was 3.5 per cent as of October 2015, which is a 0.5 per cent increase from the previous year. Rental markets in cities like Calgary (that have a high number of temporary energy sector workers) are soft, contributing to the overall high vacancy rate which is much lower in the blazing hot Toronto and Vancouver markets. Overall, there are lots of options out there and new developments are transforming Canadian neighbourhoods into world renowned cities.

This means that smart renters know there are deals to be had, which is why it’s so important to use the resources at your disposal to find the best place to live. Apartment and real estate finders like RentSeeker.ca have helped thousands of renters across Canada find apartments to rent using intuitive search features which allow users to sort through thousands of apartment listings which match the criteria searched.

There are more options in the rental market than ever before, and there are no signs of it slowing down, so use the resources available online and you’ll find it can be a good time to be a renter while housing prices continue to stay at multi-year highs.

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