“Let Me Tell You How It Will Be”

FYI Day

This is one of those information flying through your door days. First, it was the previous post about new construction and now this one, what you can expect to pay for your property taxes in 2011.

Compliments of Rudy Neilson at Landcor® Data Corp you will find a link herein to his predictions.

Winners and Losers

If you bought a home in Whistler expecting that the Olympics were going to give you the Midas touch you are not going to be happy about the downhill slide. Rudy says to expect taxes to reflect a drop of 12% for detached homes and 14.5% for condos.

Using Rudy’s numbers, if you bought a home of the West Side of Vancouver, you will have benefited from the ‘mythical Midas of the east’ described in the UBC report as you watch your property tax values rise by 27.7% for a detached home and 14.1% for a condo.

With a degree of ‘they told you so’ perspective, somebody has to pay for the party and the legacy of the Millenium. Nobody will escape this as I expect that landlords soon will be increasing their rents in 2011 to offset these accelerated taxes.

Best Place to Own a Loser

Mackenzie BC, that sunspot of a mill town north of Prince George which will see its property taxes drop a whopping 55.1% – an indication of how bad it can get in a one industry town. Not far behind was Invermere, a quaint place I like to visit, that took second place as it watches its property values succumb to a drop of 46.4%

Soothe Your Soul

In keeping, no discussion about taxes would be complete without a little music from the Beatles to soothe your soul.

Sources:

Rudy’s Tax Value Predictions

UBC Study

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

davers Says:
December 8th, 2010 at 5:22 pm

Too bad the landlords can only charge as much as people will pay. Thats the thing about renting out a place, if you could get someone to pay more, you already would have.

It’s not like the landlords are looking for a certain cap rate (however small it may be in Vancouver) they are just looking for as much money as they can get with a comfortable tenant. The ‘risk’ the landlord is willing to take on in terms of tennant varies from landlord to landlord, but none of them are only charging so much rent based on their expenses. They charge what the renters will pay.

On top of that, under the RTA rent can only go up 4%/ year, and average rents havent ever gone up more than 3%/ year from what I understand.

fish10 Says:
December 9th, 2010 at 8:12 pm

Larry…I think it will be more accurate to say ; landlords will ‘try’ and pass on the increased cost of taxes on to tenants.

Whether they can or cannot remains to be seen.

I just locked in a two year lease at 20% off the asking price, so pricing power may not be as strong as some hope.

December 9th, 2010 at 8:24 pm

@fish
“accurate” – fair comment when applied to existing tenancies.

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