It was when I was deep in my above noted ‘Tofino zone’ that I was thinking... the Vancouver Real Estate market seems to behave very similarly to me.  Around the end of October, things start to slow down, Christmas brings on a little excitement, but then it seems to just coast along slowly losing steam.  It is during this slow and somber downturn that we start hearing things about “the bubble”, “the crash”, “the correction”. Then, as if it took a trip to Tofino and reset itself, things start to turn around and the negative rhetoric turns to “the Vancouver market is an anomaly”, “#1 city in the World”, “Landlocked... prices can only go up”, “inflow of Asian money”, etc.

So, in case you didn’t notice, Spring is upon us and I'm pretty sure I saw a more chipper looking Market on the ferry back with me.  

First off, HST and GST are only applicable on new construction.  Any resale is exempt from HST or GST. Also, the elimination of the HST also means the elimination of the new housing rebate for homes up to $850,000.

So let’s look at the example of a $500,000 home:

- If the home completes on or before April 1, 2013 then HST will apply: 

• Purchase Price = $500,000
• HST (12%) = $60,000
• Re Home Rebate* = $25,000
• Net purchase price = $535,000

- If the home completes after April 1, 2013, then GST and the transitional tax will apply: 

• Purchase Price = $500,000
• GST (5%) = $25,000
• Transitional Tax (2%) = $10,000
• Net purchase price = $535,000

So as you can see, there is essentially no difference before or after April 1, 2013 except if construction is less than 10% complete before April 1, 2013.  If the construction starts after April 1, 2013 or is less than 10% complete before this date, then the transitional tax does not apply and the purchaser will save 2%.

It should also be noted that there will definitely be some savings for homes purchased over $850,000 as the new housing rebate has a threshold of $850,000.

* The New Home Rebate requires certain criteria that must be met in order to qualify. 

** The information above is not to relied upon and you should consult a tax accountant or lawyer for specific tax advice.

Mayor Robertson began by looking back at Vancouver circa 1974. In that year, our population was mainly Anglo Saxon. We were dependent on motor vehicles, transit was basic, housing was cheap, our waterfront was industrial and the economy was resource-based. 
Today, we are the most Asian city outside of Asia. Thirty per cent of our commuters walk, cycle or use transit. Our economy runs on brain power and we are an international hub for film/television production, digital media, IT and green power. And, each year, Vancouver ranks in the Top 5 listing of the world’s most livable cities.
While all of that is wonderful, there is a downside. We are becoming a land for the rich.  This has created an affordability issue which prevents business from locating in Vancouver. It is also pushing our population further east, and forcing us to remove land from the Agricultural Land Reserve. 
Making Vancouver a ‘model city’ for the future is one of Mayor Robertson’s goals. Not only does he want us to remain in that Top 5 list, he is going after the title of Greenest City. That means upping our game on transit (particularly the Broadway corridor), land use, housing affordability, and cultural and economic issues.
It was a breath of fresh air to see a council looking so far forward. Our city is in the midst of a major transformation and we must think progressively. The population of Vancouver proper may only be 600,000, but there are 2.3 million people in Greater Vancouver and smart solutions are needed to ensure that everyone is accommodated, and that we continue to thrive.

Do we really need eight lanes on the Granville Bridge? 4 in each direction, that's more than the lanes on our No.1 highway.

The city planners are entertaining the idea of turning some of these lanes into a tree-lined pedestrian mall– a foot-friendly, cycle-friendly pathway right down the middle of the bridge.

As part of Vancouver’s Transportation 2040 report, in total 187 proposals are on the table – nothing is off limits such as widening sidewalks. – in a bid to convert two-thirds of all trips in the city to cycling, walking and public transit by the year 2040.

What do you think?  Should two lanes of Granville Bridge be set aside for a pedestrian mall?  Would it make Vancouver a more walkable city? 

The Vancouver Sun published an artist’s sketch last week of the theoretical mall over the Granville Bridge.  Couples and families with little kids stroll down the middle of the lush pathway, while car traffic whizzes by on either side.  Trees and shrubs form a leafy green corridor.  Cyclists zip by under a heavenly blue sky.  Looks pretty darn nice to me.

Granville Bridge currently has eight lanes of traffic.

But would it work? That’s open to debate.  I personally think it would get plenty of use – from residents and tourists alike.  Strolling down Granville Street itself is a consummate Vancouver experience.  Wouldn’t it be great if you could continue your walk over the bridge, enjoy some great views of False Creek, then hook up with the galleries, boutiques and restaurants of South Granville?

Of course, that’s just one perspective.  Cost and traffic concerns also have to be factored into the equation, plus impact on local businesses.

Over the past 5 years an additional 286,000 people have made BC home with the majority landing in Vancouver. This equates to roughly 35,000 immigrants a year moving to Metro Vancouver. The majority of these immigrants fall under the investor designation. Today, that means these households have a net worth of $1.6 million and have made a temporary investment of $800k in Canada. If we add in some inter-provincial migration, we soon realize that the busy bees erecting those towers can’t stop. They need to keep building in order to handle the flood of affluent, educated people looking to call “the Most Liveable City in the World” home.

Price is another interesting issue. Can the cost of Vancouver homes continue to rise?  The rules of economics state that if demand is greater than supply, then prices should rise, and if supply exceeds demand, prices should drop. The West side of Vancouver isn’t adding any many more single family homes. Neither is the East side, the North Shore, or Delta. However, the people keep coming. Each municipality has realized they have to increase density in order to sustain population growth. This means going vertical - aka more construction. A typical downtown condo building has roughly 150 units which equates to about 250 people. Therefore, we will have to build roughly 140 towers a year in order to handle our current population growth.  

So the next time you get a flyer advertising a new development, think about those 35,000+ people waiting at the airport and our land-locked city. Vancouver, they say, is a real estate anomaly, so maybe our best plan would be to embrace it and go for a walk. If you would like the company of a philosophical dog, then feel free to drop by the Blu Headquarters and pick up Lenny. He is always up for a walk & talk - rain or shine, in any market.

Read this whole article in our online magazine here. 

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