Home speculators beware! As proposed back in November 2020, Vancouver plans on tripling the vacant home tax this year. The council voted to increase the tax to 3% of the assessed value for 2021. The tax, which places a penalty on underused homes, was put in place to help encourage more efficient use. If you want to know how this will affect you, read on!

Impact.

The City’s vacant home tax appears to be making a big impact, with the total number of units falling. In 2017, the first year the City had a vacancy tax, there were 2,538 homes found vacant without exception. By 2018, that number fell to 1,989, and finally down to 1,893 in 2019. When including the number of exempted homes that transitioned to tenanted use, this added over a year of housing supply. Although the low rate of, or negative, price appreciation also tends to contribute to more efficient use as well.

Why is it Tripling?

The tripling of the tax might seem like Vancouver’s politicians just have big hearts, but it may be the City getting ahead of bigger problems. The pandemic’s acceleration of work from home (WFH) and shuttering of local shops has lessened the importance of expensive urban hubs. So far this has been a big gain for the suburbs, and more affordable cities. Without more incentives, such as more affordable housing, the long-term viability may be impacted. No one wants to live in a City with expensive and hard to find housing, to be next to Starbucks, when they’re paid the same to work anywhere now.

What it means for you.

If you don’t have any vacant properties, this increase will only benefit you as the city will have more funds for city projects. However, if you have empty investment properties, this is a reminder to consider your options. A 3% tax, especially on expensive properties, can be expensive, so if you want to get ahead of the curve and sell your property, contact us and we will help you every step of the way!

Home transformations are a great way to personalize your home and really make it your own, but if you're thinking about moving around and potentially selling the place, be aware of some changes that might be appealing to you, but not worth the compromise for prospective buyers.

ADDING EXTRA WALLS

Espcially right now, making use of extra space can seem like the smart thing to do, particularly if you have a sizeable, open concept living room or a larger studio. Putting up walls can effectively turn one room into two, creating a permanent work station or playroom instead of constantly reorganizing for different needs. A permanent wall can easily decrease appeal by making rooms appear much smaller than they actually are, disrupting natural lighting, or creating a mismatched overall look.

BOLD ACCENTS AND COLOURS

A splash of your unique creativity may excel at capturing your guests' attention and keep them asking questions, but it can be risky to assume that those looking for a new place to settle will be equally enthralled by the stark colours and unusual styles that made your home your prized piece of art. Opt to stick to designs and tones that resonate with the general population instead of only a select few, or consider having your home repainted prior to listing and marketing the property. Neutral shades and stylish yet classic furnishings are always a safe bet, especially if the buyer isn't interested in doing a complete transformation for themselves.

MISMATCHED RENOVATIONS

Sometimes home projects happen on a whim, fueled by a spontaneous moment of inspiration. Other times, it's impractical to have the entire home renovated all in one go. In these circumstances, despite there being a lag in the overall timeline, it's important to ensure that one change doesn't differ drastically from the next. If you're redoing the flooring in one room before moving on to the next room months later, keep in mind that too many different types of floor coverings can present a disorganized look. The same thing can be said about surfaces, colours, and furnishings. At the end of the day, they should all complement one another!

Planning to buy or sell a home in the near future? From an outside perspective, it may seem relatively simple and while there may be aspects of working alone that individuals find appealing, real estate professionals have years of experience under their belts as well as plenty to offer, from vast networks to tips that are tried and true. Why use the help of a realtor? Find out below:

If you're on the search for a new home, a licensed realtor has the expertise to provide detailed market analysis when analyzing the best choices to suit your needs. From having worked in the industry, they can explain to you the current and projected market conditions, which may help you optimize the time of your purchase or associated sale. Assuming that you screen carefully for a diligent realtor, they can focus on your specific needs, research and arrange for you to see prospective homes, and inquire about important details that might otherwise go unaddressed. Once you find the perfect place, they are there to represent you in the negotiation process, assist with home inspections and support you through the entire closing process until you take possession.

Alternatively, if you're looking to sell your home, a licensed realtor is the best person to turn to when working out comparables in the process of arriving at the best asking price. Especially given the importance of marketing, they will have trusted connections who can help showcase your home in the best possible manner, from drone photography to virtual staging and video tours. Their expansive network of colleagues and clients will quickly help get the word out and your listing would be shared with a massive number of potential buyers. Similarly, realtors will help you through the entire negotation process and work by your side to ensure a smoothing closing. 

Working with a realtor takes away from the burden of having to either be already proficient or willing to spend a large amount of time becoming familiar with the relevant terminology and paperwork. Pricing your home and closing a deal can be intimidating on your own, and effective marketing will usuallyy require a significant level of dedication. With plenty of work on everybody's plate, you might want to consider whether one of these options would be more beneficial to you in the long run.

Have you recently put your property on the market or are thinking about selling your home in the near future? With buying and selling activity exceeding historical levels, how can you stand out with just a little bit of work? Check out advice from home stagers about undesirable features that could turn away prospective home buyers, and replace them with strategies that will increase the chances of selling your home.

CLUTTER HAS NO PLACE

Crowded rooms not only look less visually appealing, they can also give off the impression that cleanliness and hygiene are not prioritized. Be consistent throughout the home; just because one rooom looks magnificently put together, it will be altogether forgotten when your home buyers stumble upon the disorganization across the hall. Even with spaces that are less commonly accessed or out of sight, buyers may form their own judgments based off of first impressions and assume that what's present in one room extends to the rest.

MOULD IS A RED FLAG

No matter how beuatiful the rest of the home is, or how impeccably it's been staged, the smallest signs of damp stains, stained ceilings, or crumbling plaster work can easily turn a prospective buyer away. Apart from the fact that it's visually unappealing, this also signals potential problems down the line and a more expensive investment than what might have been envisioned.

OVERGROWN GARDENS NEED SOME WORK

Landscaping, yardwork, and garden maintenance can take up a lot of your attention, particularly if you have a sizeable property. Gardens surrounding the home itself form a significant part of first impressions, which can negatively downplay your chances of selling if the buyer is already turned off by knee-high weeds or the leaves stuck to their shirt. A well-kept exterior does an amazing job of signalling to buyers that the interior is just as likely to be equally well cared for.

If you're thinking of selling, the bottom line is to put yourself in a potential buyer's shoes, and think about what would put you most at ease and most willing to commit to a large investment.