north of the bridges

Good afternoon, Investors and Landlords,

On July 3, 2024, the Provincial Government announced significant changes that took effect on July 18, 2024, aimed at protecting residential tenants from ending tenancies in bad faith. Under the Residential Tenancy Act, landlords can end a tenancy for personal use or for caretaker use.

As you navigate the complexities of selling tenant-occupied properties, it’s crucial to be aware of the latest regulations, including Bill 14 Tenancy Statutes Amendment Act, 2024, and best practices to ensure compliance and protect all parties involved. Here are the key points you need to know.

Key Changes Effective July 18, 2024

Mandatory Use of Landlord Use Web Portal:

• Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.
• Access requires a Basic BCeID.
• The portal will collect details about the new occupant, which will be shared with the tenant.
• Information about the conditions for ending a tenancy and associated penalties will be provided.
• Landlords will be informed about the compensation required to issue to tenants when ending a tenancy.

Extended Notice Period:

• The Two-Month Notice is changing to a Four-Month Notice.
• Tenants now have 30 days to dispute Notices to End Tenancy, extended from 15 days.

Occupancy Requirements:

• The individual moving into the property must occupy it for at least 12 months.
• Landlords ending a tenancy in bad faith could be ordered to pay the displaced tenant 12 months’ rent.

Considerations for Selling Tenant-Occupied Properties

Investors and landlords need to be aware of these new rules when dealing with tenant-occupied properties if the buyer wants vacant possession. Any notice to end a tenancy for the buyer’s personal use given to a tenant on or after July 18, 2024, cannot end the tenancy until after the expiration of the four-month notice period.

Example Scenario:

• If all contract subjects were satisfied or waived on July 22, 2024, a Four-Month Notice to tenants using the portal’s notice generator could be provided on or before July 31, 2024, requiring the tenant to vacate the home by November 30, 2024.

Handling Non-Compliance:

• If the tenant does not vacate the home, sellers and buyers should seek legal advice to understand their rights and responsibilities.

Legal Advice for Ongoing Transactions

For transactions involving tenant-occupied properties currently underway, seeking legal advice is strongly recommended to navigate these new regulations effectively. Legal counsel can help ensure compliance and protect the interests of all parties involved by clarifying their rights and obligations under the new rules.

Additional Resources:

• For more details on the new regulations and to access the Landlord Use Web Portal, visit BC Government Residential Tenancies.
• Contact the Residential Tenancy Branch at 1-800-665-8779.

Canada’s updated tax regulations on capital gains could potentially increase tax liabilities for those owning cottages, possessing unregistered online brokerage accounts, or making investments within their corporations.

The recent budget announcement by the Liberal government was packed with changes, making it challenging to digest. Key amongst these, from a personal finance perspective, was the alteration to the capital gains tax, bumping the inclusion rate from 50% to 66.67% for certain individuals and corporations. This modification is immediate after June 25^th, 2024 and substantial, warranting everyone’s attention.

The biggest unfair impact in my opinion is that it is applied on all your historically generated gains that are behind you and not from inception of new rules forward.

What does this new 66.67% inclusion rate mean? Essentially, the government isn’t just tweaking the tax rate on capital gains but adjusting the inclusion rate. Until now, the Canada Revenue Agency taxed only half of your capital gains. For instance, if you bought a stock at $50 and sold it at $100, only $25 of your $50 gain was taxable. This was under the rationale that corporations had already paid taxes during their growth phases. The new rate means a higher portion of capital gains will now be taxable.

This change targets wealthier households and, more pointedly, business owners. The new rules will particularly affect those who have invested inside a corporation, such as affluent professionals or contractors. For individual taxpayers, the first $250,000 in capital gains each year will remain taxed at the old rate, but any gains beyond this threshold will see the new rate applied.

The government has given taxpayers a 10-week window to decide whether to realize their capital gains at the old rate before the new one takes effect. This strategic move might prompt an early realization of gains, boosting tax revenues for 2024—a significant consideration given the looming 2025 election.

Looking specifically at CCPC business owners, the new regulations pose a distinct challenge. Historical government actions have already tightened the noose on tax strategies for small business owners. Now, with the refusal to adjust the $500,000 small business deduction for inflation and the new capital gains tax structure, it’s clear that the government’s focus is on pushing business owners to disperse profits akin to regular salaried employees.

For smaller businesses making under $250,000 in profit, the strategy might still involve paying out salaries or employing legal income-splitting tactics. This approach maximizes RRSP contributions and sets up a favorable baseline for CPP benefits, which remains advantageous under the new tax regime.

However, for larger estates or substantial investment portfolios, the implications are stark. Consider a hypothetical scenario where a well-off elderly couple has accrued significant assets. Upon their passing, the estate could face a dramatically higher tax bill under the new rules, compared to the current system.

In light of these changes, the response from the business community and wealthier individuals will be pivotal. Will this lead to increased asset movement overseas, or a strategic holding of assets in anticipation of a possible tax rollback by a future government?

Despite the tougher stance on capital gains, the budget wasn’t all gloom for business owners. Measures like carbon tax rebates and a new Canadian Entrepreneurs’ Incentive could offset some of the financial impacts, albeit selectively.

As the landscape shifts, staying informed and proactive in tax planning will be crucial for Canadians, especially those with substantial assets or business interests.

Buying a home is likely the largest purchase/investment you’ll make. Especially for first-time buyers, this can mean a lot of pressure and sometimes anxiety. The most important thing any buyer can do is align themselves with professionals that can help them ask and get answers to the right questions along the way.

At the KymBuna group, we know these questions (and we often know the answers, too!) and can make sure our clients have as much information as possible to feel comfortable making this purchase. Not only are we experts in the Greater Vancouver real estate market (including North, East, South, and West Vancouver), but we also pride ourselves on understanding how to work within a client’s unique needs. From the first conversation to viewings to document reviews and the final purchase, we are there at every step.

Our team of knowledgeable and experienced Greater Vancouver Realtors know that buying a property is serious business and we are here to help make the process as smooth as possible. We have created this Buyer’s Guide to help address the big questions that you may have during your home-buying experience.

Are you considering selling your home? Spring might just be the perfect time to make your move. With warmer weather on the horizon and potential buyers eager to find their dream home before summer vacation kicks in, the spring market offers a prime opportunity to showcase your property. In this blog post, we’ll explore why selling in spring can be advantageous, essential tips for preparing your home, and key areas to focus on for a successful sale.

The Benefits of Selling in Spring

One of the primary benefits of selling your home in spring is the reduced competition. Unlike the busy fall season, spring sees a surge in buyers but often fewer homes on the market. This can create a favorable environment for sellers, with increased demand and potentially faster sales.

Additionally, buyers in the spring are typically more motivated. They’re looking to settle into their new homes before the summer months, making them more decisive and eager to make offers.

Assessing Your Home’s Condition

Before listing your home, it’s crucial to assess its condition and address any necessary repairs or improvements. While minor fixes like fresh paint and updated fixtures can enhance your home’s appeal, it’s essential to consult with a professional like Realtor Roland Kym to determine if substantial renovations are worthwhile. A real estate expert can provide valuable insights into which upgrades will add value and attract potential buyers.

Key Areas to Focus On

1. Curb Appeal: First impressions matter, so invest in enhancing your home’s curb appeal. This includes maintaining a well-manicured lawn, adding colorful flowers, and ensuring the exterior is clean and inviting.
2. Kitchen: The kitchen is often a focal point for buyers. Consider updating outdated appliances, refreshing cabinets with a coat of paint or new hardware, and decluttering countertops to create a spacious feel.
3. Bathrooms: Upgrade bathrooms with modern fixtures, replace worn-out caulking and grout, and add fresh towels and accessories for a spa-like ambiance.
4. Floors and Walls: Repair any visible damage to floors and walls, such as scratches, stains, or cracks. A fresh coat of paint in neutral tones can also make rooms appear brighter and more spacious.

Tips for a Successful Sale

• Stage your home to highlight its best features and create an inviting atmosphere for buyers.
• Declutter and depersonalize spaces to help buyers envision themselves living in the home.
• Price your home competitively based on market trends and comparable sales in your area.
• Work with a reputable real estate agent like Realtor Roland Kym, who can market your home effectively and negotiate on your behalf.

By taking these steps and leveraging the advantages of the spring market, you can position your home for a successful sale and attract motivated buyers ready to make a move before summer arrives. Happy selling!