Victoria, BC – April 26, 2010. The British Columbia Real Estate Association (BCREA) is in Victoria this week to highlight to the Government of British Columbia that, with the highest home ownership costs in the country, BC is at a competitive disadvantage to attract skilled labour and professionals to the province.

“The availability of affordable housing not only dramatically impacts one’s quality of life, it also significantly impacts the ability of the province to attract the labour and talent we need to ensure future economic growth,” says BCREA President, John Tillie. “BCREA is committed to working with the provincial government to find solutions to make the purchase of a home in British Columbia as affordable as possible."

BCREA is asking the Government of British Columbia to examine shelter taxes and take measures to encourage housing affordability and tax fairness for British Columbians. This is necessary in order to attract much‐needed skilled workers to the province. Although BC ranks as one of the four most competitive provinces in terms of sales tax, fuel tax and net property tax, high shelter taxes and housing costs serve as a deterrent for workers and companies considering relocation to BC.  

Shelter taxes significantly contribute to the cost of a home purchase. A growing proportion of British Columbians have been subject the Property Transfer Tax (PTT) – originally intended as a luxury tax on high‐priced homes – since its introduction in 1987. BC families pay 12 per cent of their annual income in PTT when buying a home, a heavy burden on households. For example, a couple earning $40,000 each in taxable income pays almost three times their annual BC income tax for the privilege of buying a home, $2,880 versus $7,811. The implementation of the new Harmonized Sales Tax (HST) will add an additional tax burden on BC homebuyers, homeowners and landlords.

The government has taken some steps to lessen the tax burden on British Columbians, including competitive personal and corporate tax rates, and increasing the threshold for HST rebates for house purchases. However, the total tax burden in BC is still a heavy one – British Columbians pay at least 122 per cent more in property transfer taxes than the average buyer in Ontario, for example. With additional shelter taxes, attainable housing is becoming increasingly unrealistic for many.

Specifically, BCREA is asking government to implement the following measures:  

Recognize significant differences in home prices across the province and implement regional rebate thresholds for new housing, which will be indexed annually
Index the HST rebate threshold to maintain the current percentage of tax exempt buyers – unless the threshold is indexed, as new home prices rise over time, a higher proportion of buyers will have to pay HST on new homes
Adjust the PTT to help restore fairness by implementing a three‐year phase‐out of the PTT, including increasing the one per cent tax threshold (from $200,000 to $500,000) starting on July 1, 2010
"Through implementing our recommended measures to enhance shelter tax equity, the provincial government can make great strides in improving housing affordability in British Columbia,” added Tillie. “BCREA encourages British Columbians to get educated and advocate for housing affordability in their community – together we can work to improve housing attainability."

For more information about HST and how it will affect British Columbians, visit www.bcrea.bc.ca/sheltertaxes.

For a PDF version of this news release, including data table, follow this link: www.bcrea.bc.ca/news_room/2010-04-26Shelter_Taxes.pdf.

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 43 per cent to 7,110 units in March compared to the same month last year.
On a seasonally adjusted basis, MLS® residential unit sales in the province increased 6 per cent compared to February 2010. However, home sales in March were 20 per cent lower than December 2009 on a seasonally adjusted basis.

"Home sales have moderated since the beginning of the year," said Cameron Muir, BCREA Chief Economist. Waning pent-up demand and eroding affordability were key factors in the market. "Despite an improving provincial economy, higher mortgage interest rates and tighter credit conditions for low-equity homebuyers and investors will squeeze some prospective buyers out of the market this spring," added Muir.

The BC residential sales dollar volume increased 95 per cent to $9.22 billion in the first quarter of 2010 compared to the same period last year. Residential units sales rose 64 per cent to 18,284 units, while the average MLS® residential price climbed 19 per cent to $504,312 over the same period.

For the complete news release, including detailed statistics, follow this link: here.

Vancouver city council will consider Tuesday whether to develop a “community vision” for the West End, as opposition mounts over its plans to build highrises in the neighbourhood.

COPE Coun. Ellen Woodsworth will put forward the motion Tuesday asking city staff to report back on the process for a proposed West End “community visioning process.”
The process would look at the needs and priorities of the community — something that hasn’t been done in the West End for more than 20 years even though it’s one of the city’s densest neighbourhoods.
So-called visions are already in place in areas such as Dunbar, Fraserview and Mount Pleasant. Woodsworth will also ask for a public meeting to be held to get public input on the neighbourhood’s needs, noting the recent debate has divided the community.“The public has been pitted against each other,” she said. “We need to call a meeting to get a sense of what people want.”

Her proposal follows council’s spot rezoning last December for a 20-storey project at Bidwell and Davie streets, ahead of several other requests for comprehensive highrise projects. These include a 22-storey residential tower for the 100-year-old St. John’s United Church site, at 1401 Comox St.
The projects, proposed under the city’s Short Term Incentives for Rental (STIR) program, are recommended for approval by city staff to secure more rental housing in the city. The city hasn’t built any rental housing in the West End for at least a decade.
But Woodsworth said the city has recently determined that there are rental units in the West End, and that those being built now aren’t necessarily affordable because they’re being offered at current market rates. As well, she said, the STIR program is not providing the community amenities that are needed in the West End.
West End residents have been vocally opposed to the developments, saying they will radically change the skyline and alter their protected views, and should not be rushed through without public consultation and a neighbourhood plan.
Residents have collected about 1,800 signatures on a petition entitled “No Rezoning without a Comprehensive Plan” that calls for Mayor Gregor Robertson to uphold the existing community-zoning guidelines for a maximum height of six storeys in the West End.
They claim the city is allowing developers to change the face of their neighbourhood by demolishing low-rise heritage buildings and churches to put up profitable highrise residential towers.
“Almost everyone can accept new construction and taller buildings, but it should be part of a comprehensive and transparent process,” said resident Randy Helton.
“This is what really outrages us: It’s such an extreme departure from the current rezoning guidelines. It really gets people upset.”

Helton said building more highrises in the West End would have major consequences for taxpayers owing to the impact on such infrastructure as electricity grids, roads and libraries.
“The taxpayers will pay the price of the increasing wear and tear on the infrastructure,” he said.
“There are so many things wrong with this.” Woodsworth said a public meeting on her motion will be scheduled for Thursday.

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