Daily Market Update

The property tax anomaly; lower values, higher taxes… Commercial property taxes still high compared to residential… Is Vancouver pricing itself out of the rental market?

 

The property tax anomaly; lower values, higher taxes

 

New analysis of figures shows that the lowest property prices do not always mean low property taxes. In fact the stats from the Real Property Association of Canada (REALpac) reveal that those in some of the most expensive markets in the country pay the lowest property taxes. In Vancouver for example, homeowners pay $3.68 per year for every $1000 of the value of their homes while in Regina the figure is around $10 more per $1000. Using average house prices and the REALpac data, Saskatoon has the highest property tax bills in Canada and pay twice that of Vancouverites despite average house prices of around half. Read the full story.

 

Commercial property taxes still high compared to residential

 

While homeowners may complain about the amount they have to pay for property tax, the latest figures from the Real Property Association of Canada (REALpac) show that the ratio of commercial to residential tax paid in Canada’s municipalities is 2.79 to 1. However in Toronto, Montreal and Vancouver the commercial sector contributes to taxes at a ratio of 4:1. Toronto is aiming to bring its commercial rates down to 2.5 times residential, while Montreal’s ratio is increasing although the actual cost to businesses is falling. Read the full story.

 

Is Vancouver pricing itself out of the rental market?

 

With rents continuing to rise Vancouver is becoming increasingly unaffordable.  With a vacancy rate of just 1.8 per cent and rent controls allowing inflation plus 2 per cent, some are finding that they can’t find property they can afford or are just not willing to pay more for less. A report in the Vancouver Sun highlights the issue through the eyes of a single woman who has taken the decision to move to Montreal to be able to afford to live. Having found Vancouver rentals such as a 500 square foot apartment for $1,500 per month she decided that she’s rather take chance on Montreal’s tougher weather conditions and move. Read the full story.

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