BC Assessment’s recent announcement regarding the 2017 property assessment changes for the homeowners in Greater Vancouver has left the residents in sticker shock. Though, a significant increase of 30 to 50 percent in home assessment values for single-family houses in areas such as Vancouver, North Shore, Burnaby, the Tri-Cities, Richmond, and Surrey was hinted last month.
According to the data made available online, the increase in price for detached houses would be 30 to 50 percent. Whereas the values of condo and townhouse divisions would increase between 15 and 30 percent, and the prices for commercial and industrial properties would go up by 10 to 30 percent, as reported by assessor Jason Grant. This home assessment data was established on the market activity from July 1, 2015, to July 1, 2016.
Now, for example, a typical single-family detached house with a breadth of 33 feet (10 m) on Vancouver’s west side rose 41 percent in value. There are various factors, which are believed to affect a property’s value assessment such as significant renovations, the attractiveness of your neighbourhood to financiers and homebuyers, and zoning changes, for example, to increase density.
Further, property taxes allocated for the year 2017 would be centred on these assessed values of properties at a tax rate to be fixed in comparison to others in your taxing dominion. If the price of a house is raised up to 50 percent and the average for that municipality is 30 percent, then the owner of the house will face a rise in tax. Thus, Grant said, ‘about 4.5 percent of all properties province-wide will receive the letters." Assessed house prices in Vancouver have risen 30.6 percent on average for all types of housing.
Now, homeowners are encouraged to communicate BC Assessment as soon as possible if they have any apprehensions about the evaluated values of their properties. And to make a request, they need to submit a Notice of Complaint by January 31.
Look at the Brighter Side
A message was sent to the citizens of Greater Vancouver by a noted real estate expert, Tom Davidoff. In the message, he asked the Vancouverites not to press the panic button. He further explained that if a house is assessed more than it was anticipated it infers that that property is being valued more than before. Hence, this is great because it means one is getting rich. "Of course, they aim to estimate your property value as of July 2016, so your price may have fallen a bit since then if you’re in Vancouver. It could be higher than that if you’re outside the 15 per cent foreign buyer tax zone," stated Tom Davidoff in the context of BC Assessment Agency.
He also advises the homeowners not to be stressed about the rise in value since that will not directly increase your property tax. But what will relate to it would be, how relative a property is when equated to others in the same municipality. Relativity would be the basis to set the tax rates.
Bottoming out Phase of Vancouver’s Real Estate Market
According to Royal LePage Realtor Adil Dinani, "There’s nothing typical about Vancouver’s real estate market. I think we’ve witnessed that and I think we’ve come to a realisation that it doesn’t perform alongside other markets."
As earlier, the 15 percent foreign tax appeared to have a soothing effect, but now the market direction is uncertain.
The present scenario of the market explains that the Vancouver housing market is moving towards a bottoming out phase. Hence, the demand and supply will decide the fate of the market.
For more information about the assessment, homeowners can take the assistance of realtors at Sutton Centre Realty.