West Van is one of the hottest real estate markets in Canada. Prices are expected to continue to rise for many years to come. In addition, most new construction homes in the area feature waterfront views, which can double the asking price of a property. This makes finding a property with a waterfront view even more important, especially for investors.
Rent controls
While the BC government has enacted rent controls, it has done little to reduce the cost of housing in Vancouver. The rent increases that are allowed are well below market rate. As a result, demand for rental housing is higher than supply, and there’s a shortage of units. Meanwhile, the supply-side response has been poor, with fewer new units being built and less maintenance of existing units.
Rent controls also make existing rental units more expensive, as landlords are unable to cover the increasing costs. They are also unable to refinance their mortgages, which means their margins are small. This lack of incentive prevents landlords from providing tenant services. As a result, rents in Vancouver are skyrocketing.
The underlying problem is that rent controls are a major impediment to new construction. It discourages builders and developers from building rental properties, which are needed to fill the demand. Many landlords choose not to build rental buildings because of rent controls, and they instead opt to convert their properties into condominiums.
The government should invest in affordable housing for the low-income and vulnerable groups. As a result, landlords should not have to spend money on restoring old apartment buildings. It is the government’s responsibility to provide adequate housing for all residents. In addition, landlords should be allowed to buy out tenants. However, this is a controversial proposal, as landlords are outnumbered by tenants, and they are usually convinced that rent control is in their best interest. However, this might be an effective political measure to end rent controls in the long run.
The rent controls in Vancouver are not a panacea, and will not solve the housing crisis in Vancouver. The situation is likely to get worse in the future, and governments must take steps to ease the price of rental units in order to ease the housing shortage. The province’s government should consider the issue, and take action to provide incentives to developers to build new apartment units.
Foreign money
If you’re looking to buy or sell a foreign currency, West Vancouver has a number of currency exchange options. You can either use a bank or an exchange franchise, both of which have pros and cons. For example, banks mark up their rates by up to 3%, which can add up to a significant amount of money when it comes to exchanging your currency. An outside source is Knightsbridge Foreign Exchange.
According to city of Vancouver data, nine out of 10 new comers in Vancouver over the past 20 years were born overseas, with most of them coming from Asia. Many of these new property owners are “circulatory migrants” who have come to Canada to work or invest. However, detractors of this practice argue that foreign wealth only contributes to the upscale housing market in Vancouver, and thus does not make a significant impact on prices or neighbourhoods.
While Canadian politicians and commentators have cited foreign money as a possible factor in the high price of real estate in West Vancouver, there is no clear evidence that foreign money is the primary culprit. In fact, the high price of housing is hurting businesses that are trying to recruit workers. For this reason, some have proposed banning the sale of property to foreign nationals.
West Vancouver is home to more than six hundred thousand people. The city is less politically polarized than other parts of Canada, but its real estate market is dominated by ultra-rich real estate investors. The unaffordability ratio in West Vancouver is as high as that of New York City.
Property taxes
While it’s possible that the high tax rates in west Vancouver are partially responsible for the housing affordability crisis, the reality is that they’re not the only culprits. Lack of supply in the region has contributed to a shortage of homes in general. According to the British Columbia Real Estate Association, which represents over 23,000 realtors in the western province, a shortage of housing is contributing to rising housing costs.
West Vancouver’s population has been declining for years, which means the city is struggling to keep up with the cost of providing municipal services. The solution has been to reduce costs, which resulted in deferred maintenance. However, a population increase in the city would help lower the city’s per-capita tax.
The foreign buyer’s tax, introduced in 2016, was a popular policy in the area. However, it pushed foreign investment out of the market. In 2016, British Columbia imposed a 15% foreign buyer tax in Metro Vancouver and raised the luxury home tax to three percent from two per cent. This step was taken to reduce the price of luxury homes and to promote affordability for residents.
In the coming years, Vancouver property taxes will continue to rise. In the near future, the average homeowner will be paying an additional $1,350 per year. But in the meantime, Vancouver will still have one of the lowest property tax rates in North America. In fact, the increase is a mere 0.26% more than the rate of inflation.
Some residents think that raising the rate on the land portion of property tax would lead to affordability benefits. This is a viable solution if it is backed by a legal change. Historically, Vancouver imposed higher property taxes on land than buildings. Since BC Assessment records separate assessments for land and buildings, transitioning to a land-value tax would be administratively simple.
Trendy neighbourhoods
The West End is one of the most fashionable neighbourhoods in Vancouver. It borders Stanley Park and is home to popular beaches such as English Bay. This neighbourhood also boasts some of the best dining options and shopping in Vancouver. It is also home to Denman Street, a shopping district that features upscale restaurants and cafes.
The area is home to many retirees and professionals who enjoy the short commute into Downtown Vancouver. There are also a number of excellent schools and plenty of community activities. This area is also great for families who prefer a slower pace of life. West Vancouver has plenty of shopping options, as Marine Drive runs along the waterfront, brimming with shopping options.
West Point Grey is the oldest neighbourhood in Vancouver. This neighbourhood is near Pacific Spirit Park and the University of British Columbia, and is home to many families. There is a true community feel in this neighbourhood, and the Point Grey Fiesta is a popular weekend celebration with mini donuts and live music.
During the Prohibition, Yaletown was an industrial area, and it likely housed illegal hooch. Today, however, this neighbourhood is a hip, fashionable neighborhood filled with chic boutiques and trendy cafes. Many of the area’s historical buildings date back to the early twentieth century, and it has become an artsy, diverse area.
In the 1960s, Kitsilano was known for its hippie vibe, and today, the neighbourhood is home to trendy boutiques and a saltwater public pool. Kitsilano is a short walk from downtown Vancouver and is surrounded by the waterfront and West 16th Avenue.
Cost of living
The cost of living in West Vancouver is high, especially for those who want to own their home. Rent can easily reach more than $1,400 per month for a single person, and a family of four could end up spending around $3250. In addition, utilities and transportation can add up to over $1000 per month. However, the city offers plenty of things to do and a rich cultural life.
Compared to other Canadian big cities, Vancouver’s rent per square foot is much higher. If you rent a one-bedroom apartment with 915 square feet, you would pay C$1,800 per month. This is less than half the rent you would pay if you lived in Toronto. In contrast, an unfurnished one-bedroom apartment would cost about $1,300.
In comparison to other major cities, Vancouver’s cost of living index is higher than the national average. The index includes a range of living costs, from taxes to rent and health services. This index is updated periodically, but it should be viewed as a guideline and not a precise number.
Rent in West Vancouver is also more expensive than in other areas of Vancouver. The city’s average three-bedroom unit costs $3,702, with utilities and taxes included in the rent. Despite the high prices of rental housing, the city also offers affordable secondary suites. For lower-income residents, this can be an ideal choice.
Compared to other Canadian cities, the cost of living in West Vancouver is comparable to that of Toronto and Seattle, although it is slightly less expensive when you factor in the exchange rate. However, salaries in Vancouver are usually below Seattle’s.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.