{"id":15491,"date":"2020-10-08T18:45:14","date_gmt":"2020-10-09T01:45:14","guid":{"rendered":"https:\/\/www.vancouvernewcondos.com\/?p=15491"},"modified":"2023-09-05T19:02:08","modified_gmt":"2023-09-06T02:02:08","slug":"non-resident-canadian-citizens-buying-property-in-vancouver","status":"publish","type":"post","link":"https:\/\/www.vancouvernewcondos.com\/non-resident-canadian-citizens-buying-property-in-vancouver\/","title":{"rendered":"Non-Resident Canadian Citizens Buying and Owning Residential Property in Vancouver and British Columbia &#8211; End Users &#038; Investors"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/N1AEfj8wuuk\" width=\"668\" height=\"450\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/p>\n<div class=\"hidden-desktop\">\n<h2>Sign up to hear about BC property opportunities<\/h2>\n<h3><iframe id=\"JotFormIFrame-60895217399268\" style=\"min-width: 100%; height: 786px; border: none;\" title=\"VNC VIP Contact Form\" src=\"https:\/\/form.jotform.com\/60895217399268\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"> <\/iframe> <strong style=\"color: var(--global-palette1); font-family: 'Roboto Condensed', sans-serif; font-size: 40px;\">What we are going to discuss &#8211; Canadian Citizen Non-Resident Buying Property in BC<\/strong><\/h3>\n<\/div>\n<p><span style=\"font-weight: 400;\">We are going to discuss the process of buying and owning residential properties in Vancouver and British Columbia, for Canadian citizens who are end users and for investors who are non-residents of Canada. We\u2019ll also talk about the process to rent out properties before moving in or to keep them as investments, along with taxation.<\/span><\/p>\n<h2>What we are <em>not<\/em> going to discuss:<\/h2>\n<ul>\n<li><strong>We are not going into minute detail on tax, renting, and purchasing <\/strong>as we\u2019re talking about an entire province with a lot of variation and many, varied types of properties. Instead, we are going to give an overview of the process of buying, holding, and taxation of real estate in BC.<\/li>\n<li><strong>For more detailed questions, myself and all of the panelists have plenty of time after the webinar to answer all of your detailed questions at length<\/strong>. Furthermore, if you have any questions that we cannot answer because it is outside of our area of expertise, we will find those who can answer those questions after the webinar.<\/li>\n<li><strong>We are not going to discuss purchases by non-Canadian citizens<\/strong>, due to <a href=\"https:\/\/www2.gov.bc.ca\/gov\/content\/taxes\/property-taxes\/property-transfer-tax\/additional-property-transfer-tax\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">BC\u2019s 20% Foreign Buyers\u2019 Tax<\/a>.<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">I will start with a discussion of current market conditions across British Columbia with a particular focus on the Vancouver area, but at <\/span><a href=\"https:\/\/www.vancouvernewcondos.com\"><span style=\"font-weight: 400;\">vancouvernewcondos.com<\/span><\/a><span style=\"font-weight: 400;\"> you\u2019ll find a network of 10 realtors who cover Greater Vancouver, the Fraser Valley, southern Vancouver Island, the Okanagan Valley, and Northern BC. I will also discuss the effect of COVID-19 on the market here in BC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Please do keep in mind that British Columbia is a province of over 5 million people and almost a million square kilometres, so we will be discussing <\/span><i><span style=\"font-weight: 400;\">generalities<\/span><\/i><span style=\"font-weight: 400;\"> in this webinar. We are keen to answer all questions, so if you are not able to have your questions answered here, feel free to reach out to any of us after, at any time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next, Adam Scalena, a Vancouver Realtor, will discuss the process of purchasing a property in BC as a non-resident (by visiting or doing so remotely) and how we can make it a simple and easy process for buyers who are not located in BC.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, Klaus Rode will discuss the process of renting a property once you have purchased it. This will include a discussion of how Klaus finds and qualifies potential tenants, how rent collection is now automated, and how he helps with taxes on rent. We will also touch on what happens if there are issues with a tenancy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, Ruby Chouhan, will discuss non-resident property purchase and ownership taxation, and taxation issues around purchasing and owning properties as a non-resident Canadian citizen in BC.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once we have heard from our panelists, we will have 20 minutes for your questions. If we cannot answer a question you may have, rest assured we have a network of real estate, mortgage, rental, and tax professionals across BC who can answer any questions after this webinar.<\/span><\/p>\n<hr \/>\n<h3><strong>Keynote<\/strong><\/h3>\n<p><strong><span style=\"font-size: 18px; color: #008080;\"><a style=\"color: #008080;\" href=\"https:\/\/www.vancouvernewcondos.com\/group\/mike-stewart\">Mike Stewart<\/a> &#8211; Founder, Vancouver New Condos<\/span><\/strong><\/p>\n<h4>Market Conditions and Overview<\/h4>\n<h4>What was happening in BC real estate before COVID-19?<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15492 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1-750x363.png\" alt=\" canadian citizen non resident buying property in bc - market conditions graph - population vs year\" width=\"750\" height=\"363\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1-750x363.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1-360x174.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1-768x371.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1-480x232.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P1.png 883w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><b>Strong, stable economy with low unemployment <\/b><span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> BC has had, and continues to have, a growing population. The BC economy was growing by just over 2% prior to the COVID-19 crisis, which is good for a mature, advanced industrialized economy. Unemployment in the province in 2019 was quite low at 4.9%, and was trending down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of real estate sales volumes, using Vancouver data, we saw a surge in late 2019 from a bit of a lull in early 2019 and 2018. 2019 was a bit of an anomaly as the spring was slower than the fall and winter, which saw significantly increased sales volumes and upward pressure on prices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This happened because of:<\/span><\/p>\n<p><b>Constrained supply.<\/b><span style=\"font-weight: 400;\"> Particularly in the Vancouver area, many municipal and city governments do not see increasing the supply of new homes as a solution to high housing prices. The development of new homes is a highly politicized process with NIMBYs and progressive politicians who don\u2019t want to see more density successfully opposing new housing developments across the region. This has resulted in not enough new homes being built not only in Vancouver but in other BC cities, as well.<\/span><\/p>\n<p><b>Ever-increasing demand.<\/b><span style=\"font-weight: 400;\"> BC\u2019s population continues to grow, but lifestyle changes have dramatically increased housing demand. As more people forgo marriage and having families, there is demand for a higher number of smaller studio or one-bedroom condo units for individuals or couples to live in, as opposed to larger properties to accommodate families with children. The demand for different types of housing is increasing faster than population growth.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15494 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2-750x420.png\" alt=\"metro Vancouver housing starts and population change\" width=\"750\" height=\"420\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2-750x420.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2-360x202.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2-768x430.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2-480x269.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P2.png 887w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p>The elephant in the room is COVID-19: How is it affecting the real estate market in BC?<\/p>\n<h4>What happened in BC real estate during COVID-19?<\/h4>\n<p><b>Sales volumes dropped <\/b><span style=\"font-weight: 400;\">around 45% in the spring, starting from March. Lockdown was a major contributor to the fall in transactions.<\/span><\/p>\n<p><b>Real estate prices were stable<\/b><span style=\"font-weight: 400;\"> during COVID-19. Although unemployment surged, it didn\u2019t have a big impact on BC real estate prices. With the exception of the odd panicked sale, real estate prices remained stable.<\/span><\/p>\n<p><b>Bounceback<\/b><span style=\"font-weight: 400;\">. The bounceback in sales volume began in April\/May and by July 2020, the <\/span><a href=\"https:\/\/www.vancouvernewcondos.com\/statistics\/rebgv-stats\"><span style=\"font-weight: 400;\">Real Estate Board of Greater Vancouver<\/span><\/a><span style=\"font-weight: 400;\"> (REBGV) sales volumes were 22.3% higher than July 2019 sales volumes.<\/span><\/p>\n<p><b>Sales volumes continued to rise.<\/b><span style=\"font-weight: 400;\"> Sales volume for properties listed by the REBGV for August 2020, the most recent data we have, are up 36% over 2019. This is a continuation of the rising real estate market we saw across BC that started in mid-2019 after a soft 2018.<\/span><\/p>\n<h4><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15499 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4-750x403.png\" alt=\"number of jobs and home sales by region graph\" width=\"750\" height=\"403\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4-750x403.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4-360x193.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4-768x412.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4-480x258.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P4.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/h4>\n<h4>Why were prices stable and continue to be so? Why have volumes bounced back?<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15497 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3-750x413.png\" alt=\"Bank of Canada &amp; federal spending\" width=\"750\" height=\"413\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3-750x413.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3-360x198.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3-768x423.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3-480x264.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P3.png 874w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><b>Central Bank and Central Government injections of huge liquidity<\/b> <span style=\"font-weight: 400;\">\u2013<\/span><span style=\"font-weight: 400;\"> The Bank of Canada issued rate cuts that have pushed <\/span><a href=\"https:\/\/www.ratehub.ca\/current-mortgage-rates-british-columbia\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">5-year fixed rate mortgages below 2%<\/span><\/a><span style=\"font-weight: 400;\">. This is very common across the country now, but not historically. <\/span><\/p>\n<p><b>Quantitative easing<\/b><span style=\"font-weight: 400;\"> has allowed the Bank of Canada to commit to keep rates low over the medium term, and <\/span><b>massive federal spending<\/b><span style=\"font-weight: 400;\"> for income support across the economy have worked to avert a deflationary spiral in Canada. This has pushed up the value of real estate assets and the stock market: if people holding these assets feel wealthy, they will continue to spend.<\/span><\/p>\n<p><b>Unemployment is up to around 11.5%<\/b><span style=\"font-weight: 400;\"> because of COVID, but the job losses tend to be among lower-income earners and renters rather than mid or high-income earners and prospective property buyers. Furthermore, unemployment peaked in BC during spring at around 13%, and it\u2019s currently falling.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All of this has been very effective in keeping the real estate market strong.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15501 size-medium\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P5-360x326.png\" alt=\"British Columbia Unemployment Rates\" width=\"360\" height=\"326\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P5-360x326.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P5-480x435.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P5.png 595w\" sizes=\"(max-width: 360px) 100vw, 360px\" \/><\/p>\n<h6>Source: https:\/\/www2.gov.bc.ca\/assets\/gov\/data\/statistics\/employment-labour-market\/lfs_highlights.pdf<\/h6>\n<h4>What is happening now in BC Real Estate?<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15503 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6-750x344.jpg\" alt=\"BC Real Estate\" width=\"750\" height=\"344\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6-750x344.jpg 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6-360x165.jpg 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6-768x352.jpg 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6-480x220.jpg 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P6.jpg 872w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><b>Making up for lost time<\/b><span style=\"font-weight: 400;\">. Sales continue to rise across BC as people who wanted to buy or sell in the spring couldn\u2019t do so. COVID-19 didn\u2019t destroy demand; it deferred demand.<\/span><\/p>\n<p><a href=\"https:\/\/www.vancouvernewcondos.com\/statistics\/vreb-stats\"><span style=\"font-weight: 400;\">Sales volumes in Victoria<\/span><\/a><span style=\"font-weight: 400;\"> in August 2020 are up 29.1% for condos and 45% for single family houses compared to August 2020, and prices are roughly stable. The <\/span><a href=\"https:\/\/www.vancouvernewcondos.com\/statistics\/fvreb-stats\"><span style=\"font-weight: 400;\">Fraser Valley had the second busiest month<\/span><\/a><span style=\"font-weight: 400;\"> of property sales in the past 20 years in August 2020, and prices are stable to slightly rising. Greater Vancouver sales volumes were 19.9% above the 10-year August sales average. For August 2020, the Vancouver sales ratio (the ratio of\u00a0 sales to active listings for each month) was, depending on property type, 21.6% to 30.7%. Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For certain property types, there is upward pressure on prices. You hear doom and gloom from the media and other sources, but take these predictions with a grain of salt as their crystal ball really is as good as mine or yours. For instance, the CMHC predicted in May 2020 that <\/span><a href=\"https:\/\/www.cmhc-schl.gc.ca\/en\/housing-observer-online\/2020-housing-observer\/2020-housing-market-outlook-special-edition\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">sale prices would fall 18%<\/span><\/a><span style=\"font-weight: 400;\"> across Canada this year, but it isn\u2019t happening. You can also look at the sale prices from 1977 to August 2020 to compare.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15505 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7-750x393.png\" alt=\"Residential Average Sale Prices Graph\" width=\"750\" height=\"393\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7-750x393.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7-360x189.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7-768x402.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7-480x251.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P7.png 922w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15507 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8-750x280.png\" alt=\"\" width=\"750\" height=\"280\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8-750x280.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8-360x134.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8-768x286.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8-480x179.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P8.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><strong>Houses slightly favoured over condos, due to COVID.<\/strong> Sales ratios are higher for single family homes compared to condos. This could be due to COVID-related factors of not wanting to be in high density housing or the need for more space to work from home.<\/p>\n<h3>Opportunities<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15509 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9-750x332.png\" alt=\"BC Regional Overview\" width=\"750\" height=\"332\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9-750x332.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9-360x159.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9-768x340.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9-480x213.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P9.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">While Greater Vancouver has a lot of potential for capital appreciation, you won\u2019t see a lot of gross revenue (maybe 5%). Southern Vancouver Island is similar. The reason is likely because many high-net worth people move to these areas, not for economic reasons but for lifestyle reasons. In the Fraser Valley, which is close to Vancouver, you\u2019ll see relatively high rental revenue and more capital appreciation than in Greater Vancouver. For example, a colleague of mine sold their clients a <a href=\"https:\/\/www.vancouvernewcondos.com\/cities\/abbotsford-presale-condo-projects\/\">Fraser Valley property<\/a> for $283,000 with a gross cap rate of 6.7%. <a href=\"https:\/\/www.vancouvernewcondos.com\/cities\/okanagan-presale-condos\/\">The Okanagan<\/a> and especially <a href=\"https:\/\/www.vancouvernewcondos.com\/cities\/new-developments-kelowna\/\">Kelowna real estate investments<\/a> offer relatively high rental revenue but with less capital appreciation. Northern BC is similar with revenue, as people move for the short-term to work. But, it does have large capital appreciation potential from large-scale natural resource and infrastructure projects. We work with a client in Fort St. John who has furnished rental options with shockingly high cap rates.<\/span><\/p>\n<h4><a name=\"_nvhihydo8jbl\"><\/a>Presales<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15511 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10-750x332.png\" alt=\"Presales (Off-Plan) Across British Columbia\" width=\"750\" height=\"332\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10-750x332.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10-360x159.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10-768x340.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10-480x213.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P10.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Buying a presale is a very straightforward process and there are lots of opportunities in BC. You\u2019ll get a lot of documentation with floor plans and information on finishes and other things, and doing a transaction remotely is very simple with DocuSign.<\/span><\/p>\n<p><b>Some benefits of presales include:<\/b><\/p>\n<p><b>Low hassle and easy to purchase from overseas<\/b><span style=\"font-weight: 400;\">. Presales offer non-resident buyers a relatively simple and easy opportunity to invest in the Vancouver market, with typically a 20-30% deposit payable (wire transfers are mostly used for non-residents) over 18-24 months and the balance payable upon completion of the project.\u00a0<\/span><\/p>\n<p><b>Detailed digital renderings, floor plans, and documentation <\/b><span style=\"font-weight: 400;\">of the projects and their features and finishings. This allows for a hassle-free experience and expectation of a perfect, brand new property upon completion of the building with a full government-regulated <\/span><span style=\"font-weight: 400;\">2-5-10 year third-<\/span><span style=\"font-weight: 400;\">party <a href=\"https:\/\/www.vancouvernewcondos.com\/bc-new-home-warranty-2-5-10-warranty\/\">BC new home <\/a><\/span><span style=\"font-weight: 400;\">warranty<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>No need for a mortgage right away.<\/b><span style=\"font-weight: 400;\"> You have flexibility for your intended return to Canada to get better financing or for other personal and\/or financial needs and requirements.<\/span><\/p>\n<p><b>Available incentives<\/b><span style=\"font-weight: 400;\">, although typically prices for presales are not negotiable. These incentives vary by project and can be quite generous depending on the developer\u2019s requirements.<\/span><\/p>\n<p><b>Some options for customization<\/b><span style=\"font-weight: 400;\">, especially for more expensive, higher-end presale options.\u00a0<\/span><\/p>\n<p><b>Less labour required<\/b><span style=\"font-weight: 400;\">, as existing properties are somewhat more labour intensive for a prospective non-resident buyer. Existing properties are typically less expensive than comparable presales but are not as uniformly perfect and hassle-free.\u00a0<\/span><\/p>\n<p><b>More flexibility in terms of price and completion dates as you negotiate<\/b><span style=\"font-weight: 400;\"> with individual needs and requirements.\u00a0<\/span><\/p>\n<p><b>Rental revenue<\/b><span style=\"font-weight: 400;\"> and\/or the opportunity to take advantage of the ultra-low sub-2% rates currently available in BC.<\/span><\/p>\n<p><b>We have:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Early access to presales of every size and configuration<\/b><span style=\"font-weight: 400;\"> for both end users and investors across Greater Vancouver, the Fraser Valley, southern Vancouver Island, the Okanagan, and Northern BC.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Great email lists for presales<\/b><span style=\"font-weight: 400;\"> for all of the above regions that we can add you to.<\/span><\/li>\n<\/ul>\n<h4>What is happening going forward in BC real estate?<\/h4>\n<p>The governing NDP has called an election for October 24, 2020 and based on current polling is expected to win. What that means for the real estate market in BC remains to be seen. John Horgan has positioned himself as somewhat of a pro-business Premier during the current minority government, but one could assume that will continue given Horgan\u2019s success in assuaging the electorate&#8217;s past concerns about the NDP\u2019s record on the economy. Immigration is expected to resume.<\/p>\n<p><strong>Beware of future predictions! <\/strong><\/p>\n<p>A perfect example of what to be wary of in terms of a future prediction for the Vancouver and BC real estate market was the <a href=\"https:\/\/www.cmhc-schl.gc.ca\/en\/housing-observer-online\/2020-housing-observer\/2020-housing-market-outlook-special-edition\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Canada Mortgage &amp; Housing Corporation&#8217;s prediction that prices in Vancouver would fall by 18% in 2020<\/a>.<\/p>\n<p>The CMHC was a venerable and credible institution that most Canadians, until quite recently too what it said quite seriously.<\/p>\n<p>Fortunately for homeowners and current investors the CMHC was wrong. (Though unfortunate for the owners of the CMHC &#8211; all Canadians &#8211; who have to contend with a serious decline in CMHC credibility with its irresponsible and consistently inaccurate predictions)<\/p>\n<p>Real estate prices in BC and in the Vancouver area are stable and are actually rising for certain types of properties (lower density options further from the core and closer to recreation and lifestyle options &#8211; think Nanaimo, Bowen Island, Squamish and single family houses).<\/p>\n<p>Beware of future predictions on the BC real estate market!<\/p>\n<hr \/>\n<h3><strong>Panel<\/strong><\/h3>\n<p><span style=\"color: #008080;\"><strong><span style=\"font-size: 18px;\">Adam Scalena, <a style=\"color: #008080;\" href=\"https:\/\/www.vancouverrealestatepodcast.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Scalena Real Estate<\/a> <\/span><\/strong><\/span><\/p>\n<h4>Purchasing process and areas that are popular with investors<\/h4>\n<p>Adam and I have both lived overseas and we have many clients throughout the UK, Europe, Asia, and North &amp; South America. We are familiar with the needs of people buying properties from overseas and have a whole suite of research tools and resources to help Canadians who want to buy properties in BC.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15513 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11-750x308.png\" alt=\"Adam Scalena bio\" width=\"750\" height=\"308\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11-750x308.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11-360x148.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11-768x315.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11-480x197.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P11.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h3>How can we buy a property in BC from the UK or Western Europe?<\/h3>\n<h4>Tools for Buyers<\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/www.privateclientservices.com\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><b>Private Client Services<\/b><\/a><span style=\"font-weight: 400;\">: we helped with beta testing and research for this tool and have used it with clients for almost a decade. You can set search parameters by geographic area (even down to address or neighbourhood), property type, and price. You\u2019ll get realtor-level information like sold prices and days on market. We can also communicate with you directly from its own portal. It\u2019s a great tool, especially to start out while abroad and monitor the market. It typically also avoids the lag you see on Realtor.ca so you can see listings before the general market.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Presale email lists and real estate statistics<\/b><span style=\"font-weight: 400;\">: if you join our presale email lists, you\u2019ll get sales ratios and benchmark price index stats to broadly monitor the market or submarkets, so you can see if we\u2019re in a buyers\u2019 or sellers\u2019 market. There are lists for all cities in Greater Vancouver, the Fraser Valley, <a href=\"https:\/\/www.vancouvernewcondos.com\/cities\/victoria-presale-condo-projects\/\">Victoria<\/a>, Nanaimo, the Okanagan, and <a href=\"https:\/\/www.vancouvernewcondos.com\/cities\/squamish-presale-condo-projects\/\">Squamish<\/a>. Sign up at <\/span><a href=\"https:\/\/www.vancouvernewcondos.com\"><span style=\"font-weight: 400;\">VancouverNewCondos.com<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"http:\/\/mikestewart.ca\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">MikeStewart.ca<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.vancouvernewcondos.com\"><b>VancouverNewCondos.com<\/b><\/a><span style=\"font-weight: 400;\">: this site tracks new construction condos across BC and offers early access and incentives for projects, often before the general market.<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"http:\/\/vancouverrealestatepodcast.com\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><b>VancouverRealEstatePodcast.com<\/b><\/a>: I\u2019ve co-hosted this podcast on the Greater Vancouver area for 5 years, which has over 200 hours of content. We talk to economists, urban planners, developers, politicians, and industry experts, and we were featured in the top 10 business podcasts on Apple Podcasts Canada.<\/li>\n<\/ul>\n<p><strong>What\u2019s the process to buy a property here from, say, London?<\/strong><\/p>\n<p>We would start with a phone consultation to discuss areas you\u2019re interested in and Greater Vancouver areas that would fit your lifestyle, as well as your goals. If you can\u2019t come in person for property tours, we can arrange for tours via Zoom or FaceTime, which we\u2019re now doing more often. Our presale or pre-construction resources, such as floor plans and models, are online. It\u2019s really easy to buy off-plan because of developers\u2019 amazing resources. We can walk you through the paperwork and provide a location overview. Recently, we\u2019ve been FaceTiming clients from the future building site to give a better sense of the surrounding area.<\/p>\n<p>There is also the option to fly into Vancouver, once COVID restrictions are over, so we can hit the ground running in person and make really efficient use of your time. We can get you set up with the tools above so that you can do your research and prepare far in advance of your visit to buy, or get up to speed on the market and options to buy, from the UK or other points overseas.<\/p>\n<p>Should you want to come to visit BC, we can introduce you to colleagues who specialise in the areas above to help with a purchase. If you would like to purchase remotely, we can also introduce you to area specialists who can help with a remote purchase.<\/p>\n<p>&#8211;<\/p>\n<p><span style=\"color: #008080;\"><strong><span style=\"font-size: 18px;\"><a style=\"color: #008080;\" href=\"https:\/\/klausrode.ca\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Klaus Rode<\/a> &#8211; Associate Broker, Century 21 In Town Realty Vancouver \/ Salesperson\/Property Manager, Century 21 Percy Fulton Toronto<\/span><\/strong><\/span><\/p>\n<p>Your Rental Resource &#8211; specializes in rentals and property management<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15515 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12-750x354.png\" alt=\"Klaus Rode bio\" width=\"750\" height=\"354\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12-750x354.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12-360x170.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12-768x362.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12-480x226.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P12.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4>What is happening with the rental market across BC?<\/h4>\n<p><span style=\"font-weight: 400;\">While rents are down in a few markets across BC, cap rates are between 3% and 5% in most markets. Places like Kelowna or Prince George may have lower rents, but purchase prices are also less. Cap rates tend to be higher further away from larger centres, like Vancouver, and in smaller towns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Vancouver, the <\/span><a href=\"https:\/\/liv.rent\/blog\/2020\/09\/september-2020-vancouver-rent-report\/\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">average one-bedroom rent is $2,000<\/span><\/a><span style=\"font-weight: 400;\">, and purchase price will depend largely on the neighborhood in which you are purchasing, which affects your cap rate.<\/span><\/p>\n<h4>What has been the impact of COVID-19 on rentals across BC?<\/h4>\n<p><span style=\"font-weight: 400;\">The impact has been less than we anticipated at the beginning of COVID. Initially, we didn&#8217;t know what to expect, and everyone was in a bit of a holding pattern. After the first month, the initial hit was on furnished rentals, some of which were used as Airbnb-type rentals. The demand just was not there any longer, and the number of furnished suites available saw a sharp increase in most markets. Slowly, as corporate transfers started up again, we saw a slow recovery in the furnished long-term rental market but with slightly more competitive pricing. On the unfurnished rentals side there was a slight rent reduction on the larger suites, as demand went down. On one bedroom suites, everything was stable and demand was good, as couples downsizing from a two-bedroom suite were driving a bit of the demand in order to save some money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We now seem to be stable in Vancouver with one-bedroom rentals going between $1,900 and $2,100. Two-bedroom suites are a bit more varied in price, based on location, view, and amenities. We are seeing ranges from $2,400 to $3,200 a month. This seems like a large spread; however, you have to keep in mind that two-bedroom suites in Vancouver also have a big size range, and that is reflected in the pricing. In other areas like Kelowna, demand is still high for rentals. This can be in part attributed to professionals being able to work from home and relocating into smaller communities that offer a quieter lifestyle, still with some of the \u201cbig city\u201d services they are used to. In the Lower Mainland, we are seeing more demand for the outlying areas for rentals, as some people prefer to live in smaller buildings.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15517 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13-750x361.jpg\" alt=\"BC's Rental Market\" width=\"750\" height=\"361\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13-750x361.jpg 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13-360x173.jpg 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13-768x370.jpg 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13-480x231.jpg 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P13.jpg 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4>If a non-resident is to buy a property here in BC and wants to rent it out, what are the next steps when working with you?<\/h4>\n<p><span style=\"font-weight: 400;\">If you need help with property management or just want to double check what the estimated renal rate would be on a property, you can call or text me at 604-760-5856 or email <\/span><a href=\"mailto:klaus@klausrode.ca\"><span style=\"font-weight: 400;\"><span style=\"display:inline;unicode-bidi:bidi-override;direction:rtl;\" class=\"\">ac.edorsualk<span style=\"display:none;\">obfsctd<\/span>&#64;sualk<\/span><\/span><\/a><span style=\"font-weight: 400;\">. I can review the agreement with you by email, phone, or Zoom call. If the property is vacant, my team will need to schedule professional pictures and a virtual tour for marketing.<\/span><\/p>\n<h4>How do you screen tenants?<\/h4>\n<p><span style=\"font-weight: 400;\">With COVID, we have streamlined our process. If the suite is vacant, we have professional pictures and a 360-degree virtual tour done, and use this for advertising and the initial showing. If a tenant is interested, we send out the link from our partner site, <\/span><a href=\"http:\/\/liv.rent\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">liv.rent<\/span><\/a><span style=\"font-weight: 400;\">, and ask the tenant to apply for pre-approval. We do this partly to make sure that the tenant is qualified and interested in the rental, and also to cut down on the number of in-person viewings. We will only confirm an in-person viewing once we have an application, in order to minimize contact. Once this is done, and the tenant wants to proceed with a lease, we sign the paperwork virtually with DocuSign, and then set them up on our payment platform, RentMoola. This gives tenants a variety of ways to pay their rent.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15519 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14-750x231.png\" alt=\"How do you screen tenants\" width=\"750\" height=\"231\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14-750x231.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14-360x111.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14-768x236.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14-480x148.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P14.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4>What system do you use to collect and disburse rents?<\/h4>\n<p><span style=\"font-weight: 400;\">Rent collection is done online through our partnership with <\/span><a href=\"http:\/\/rentmoola.com\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">RentMoola<\/span><\/a><span style=\"font-weight: 400;\">, and owner payouts and statements are tracked in our accounting software, Yardi. This enables us to set up the landlord in an owner portal, and they have access to monthly owner statements. Payouts are done by the 17<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> of the month and directly transferred into the owners\u2019 bank accounts.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15521 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15-750x300.png\" alt=\"What system do you use to collect and disburse rents\" width=\"750\" height=\"300\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15-750x300.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15-360x144.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15-768x307.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15-480x192.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P15.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The whole rental management process is taken care of for our clients, from screening to dealing with issues to finding new tenants, so you don\u2019t have to do anything.<\/span><\/p>\n<h4><b>Do non-resident property owners need a bank account here in Canada for their rental income?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Owners will need an account in Canada. First, we need to deposit funds into a Canadian bank account and second, the owners will likely find it more convenient to set up monthly payments on strata fees or yearly tax bills through a Canadian account.\u00a0<\/span><\/p>\n<h4><b>As a segue to hear from Trowbridge\u2019s Ruby Chouhan, our tax specialist, do you help with BC and Canadian tax on rental income?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">We do monthly submissions to the CRA for non-resident tax on rental income. This is typically 25% of gross income. At the end of the tax year, we provide owners with the NR4 form so they can file their Canadian tax return with the CRA. Owners are also responsible for filing declarations for the Vancouver Empty Homes Tax and the <\/span><a href=\"https:\/\/www2.gov.bc.ca\/gov\/content\/taxes\/speculation-vacancy-tax\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">BC Speculation and Vacancy Tax<\/span><\/a><span style=\"font-weight: 400;\">. Ruby can discuss tax implications in more detail.\u00a0<\/span><\/p>\n<p><u>\u00a0<\/u><\/p>\n<p><span style=\"color: #008080; font-size: 18px;\"><strong><a style=\"color: #008080;\" href=\"https:\/\/www.linkedin.com\/in\/ruby-chouhan\/?originalSubdomain=ca\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Ruby Chouhan<\/a> &#8211; Associate, Private Client Non-Resident Real Estate Services, Business Development, Trowbridge<\/strong><\/span><\/p>\n<p>Tax issues with purchasing and owning a property in BC as a non-resident<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15523 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16-750x372.png\" alt=\"Ruby Chouhan bio\" width=\"750\" height=\"372\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16-750x372.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16-360x179.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16-768x381.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16-480x238.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P16.png 939w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4><b>Do non-residents who own property and collect rent in British Columbia need a bank account? Does this have an impact on their non-resident status from a tax perspective?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Bank accounts are seen as a secondary tie to Canada; most property owners will have Canadian bank accounts to receive payments\/pay bills and it\u2019s not a problem at all. In general, residency status\/ties are based on a number of other factors like economic ties, family ties, etc. If you have concerns about your residency status, it\u2019s best to call and talk to us about your specific situation.<\/span><\/p>\n<h4><b>What taxes are payable on the purchase of a property in British Columbia as a non-resident of Canada or someone from abroad, even if they\u2019re a Canadian Citizen?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">In certain parts of BC (e.g. Fraser Valley, Metro Vancouver) there is an \u201cadditional property transfer tax for foreign individuals and entities\u201d at 20% of fair market value. <\/span><b>This tax is based more on immigration status, rather than tax residency status<\/b><span style=\"font-weight: 400;\">. Essentially, if you are a Canadian Citizen or Permanent Resident, you are exempt from this tax. It\u2019s important to work with a good real estate lawyer, as they register the tax at final closing. The tax is payable on your proportionate share of ownership of the property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Otherwise, there are refunds available in situations where you become a Permanent Resident or Canadian Citizen within one year of the property registration, and you must have lived in the property for a certain period of time (over one year as your principal residence).<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15525 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17-750x450.png\" alt=\"Tax issues re purchasing and owning property in BC as non-resident\" width=\"750\" height=\"450\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17-750x450.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17-360x216.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17-768x461.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17-480x288.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P17.png 831w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4><b>Can you tell us about Vancouver&#8217;s <\/b><a href=\"https:\/\/vancouver.ca\/home-property-development\/empty-homes-tax.aspx\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><b>Empty Homes Tax<\/b><\/a><b>?<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/vancouver.ca\/home-property-development\/empty-homes-tax.aspx\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><span style=\"font-weight: 400;\">Vancouver Empty Homes Tax <\/span><\/a><span style=\"font-weight: 400;\">is issued by the province rather than on an income tax level. It\u2019s for properties deemed empty, which get taxed 1% of the property value. It doesn\u2019t apply to principal residences or properties rented for more than 6 months of the year. If you have a long-term lease in place, you don\u2019t have to worry about this tax. Each year, you must prepare a declaration of the status of the home to the BC government.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15557 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-750x243.jpg\" alt=\"Vancouver empty homes tax\" width=\"750\" height=\"243\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-750x243.jpg 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-360x117.jpg 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-768x249.jpg 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-1536x498.jpg 1536w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2-480x156.jpg 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P19-2.jpg 1920w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4><b>Can you tell us about the British Columbia Speculation and Vacancy Tax?\u00a0\u00a0\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">There is a Speculation and Vacancy Tax in BC designed to turn empty homes into housing and ensure foreign owners and those with primarily foreign income contribute fairly to BC\u2019s tax system.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For 2019 and subsequent years, the tax rate is 2% for foreign owners and satellite families. A satellite family is considered one that is untaxed on worldwide income in Canada, i.e. a non-resident for tax purposes. If there is an arm\u2019s length tenant in place for at least 6 months, you are exempt from this tax. There are other specific exemptions, also for non-arm&#8217;s length tenants.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15559 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-750x243.jpg\" alt=\"British Columbia Speculation Tax\" width=\"750\" height=\"243\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-750x243.jpg 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-360x117.jpg 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-768x249.jpg 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-1536x498.jpg 1536w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20-480x156.jpg 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P20.jpg 1920w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The Vancouver Empty Homes Tax and BC Speculation and Vacancy Tax are two individual taxes that each require a declaration to be made.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span> <span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<h4><b>How does it work for non-residents paying taxes on rental revenue of a property here in BC?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">As a non-resident of Canada collecting rental income from Canadian property, the CRA requires that \u201cnon-resident withholding taxes\u201d be paid on your monthly rental income. The CRA provides two options that are broken down into the three steps.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The first option, which is the CRA\u2019s default requirement, is to <\/span><b>withhold 25% of the gross rent on a monthly basis<\/b><span style=\"font-weight: 400;\">. Once the year is over, you are issued an NR4 slip indicating the amount of tax withheld, and you then have two years to file your Section 216 return and be refunded any overpayment of tax that was withheld.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The second option uses the NR6 form, which allows you to <\/span><b>pay reduced tax withholdings based on 25% of your estimated net income<\/b><span style=\"font-weight: 400;\">. Most people prefer this method because 25% of your monthly rental income can greatly affect your cash flow. You must have a third party, such as Trowbridge, registered with the CRA as a tax withholding agent. Then, once the NR6 form is approved and you make a tax payment, for the rest of the year you don\u2019t have to worry: we prepare an NR4 slip. The CRA has a strict tax filing deadline of June 30<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> of the following year, and not meeting it results in a hefty penalty of 25% of the gross rental income.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15527 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18-750x374.png\" alt=\"Non-resident tax withholding\" width=\"750\" height=\"374\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18-750x374.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18-360x179.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18-768x383.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18-480x239.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P18.png 897w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<h4><b>What kind of rental expenses are deductible?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Almost everything related to your rental property is deductible. For example, repairs and maintenance, property taxes, leasing fees, accounting fees, mortgage interest (which is usually the largest expense), and property management fees. The only rental expense, depending on the number of properties you have, is travel and vehicle expenses.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15561\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-750x276.png\" alt=\"deductible rental expenses\" width=\"668\" height=\"246\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-750x276.png 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-360x132.png 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-768x283.png 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-1536x565.png 1536w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21-480x177.png 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P21.png 1538w\" sizes=\"(max-width: 668px) 100vw, 668px\" \/><\/p>\n<h4><b>Let&#8217;s talk about selling a property in BC as a non-resident. Can you tell us about the 25% non-resident withholding tax on the sale of a property in Canada?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b><\/h4>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Certificate of Compliance applications must be submitted to the Canada Revenue Agency (CRA) within 10 days of final closing.<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Failing to submit the applications in a timely fashion may result in penalties of up to $2,500 per non-resident taxpayer.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The processing timeframe is normally 12-16 weeks.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your real estate lawyer is required to hold, in trust, 25% of the gross sales proceeds until such time that final certificates are issued by the CRA. 50% of gross proceeds may be withheld due to the property being a rental.<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The CRA will request a payment of 25% of your net capital gain; this amount will be paid from the funds held by your lawyer. Upon receipt of payment, the CRA will issue the final certificates.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The following year, you\u2019re required to submit a Non-Resident Canadian Tax Return to report the sale and selling-related expenses.<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The tax paid to the CRA while processing your Certificate of Compliance applications will be reported as a \u201ctax installment\u201d and you will be refunded any overpayment of tax once the tax filing is assessed by the CRA.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-15563 size-large\" src=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-750x264.jpg\" alt=\"selling property in BC non-residents - Let's talk about selling a property in BC as a non-resident. Can you tell us about the 25% non-resident withholding tax on the sale of a property in Canada?\u00a0\u00a0\" width=\"750\" height=\"264\" srcset=\"https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-750x264.jpg 750w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-360x127.jpg 360w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-768x270.jpg 768w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-1536x540.jpg 1536w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22-480x169.jpg 480w, https:\/\/www.vancouvernewcondos.com\/wp-content\/uploads\/2020\/10\/P22.jpg 1920w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/p>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-avkqg-79elbk h-full dark:bg-gray-800\">\n<div class=\"react-scroll-to-bottom--css-avkqg-1n7m0yu\">\n<div class=\"flex flex-col text-sm dark:bg-gray-800\">\n<div class=\"group w-full text-token-text-primary border-b border-black\/10 dark:border-gray-900\/50 bg-gray-50 dark:bg-[#444654]\" data-testid=\"conversation-turn-7\">\n<div class=\"p-4 justify-center text-base md:gap-6 md:py-6 lg:px-0 m-auto\">\n<div class=\"flex flex-1 gap-4 text-base mx-auto md:gap-6 md:max-w-2xl lg:max-w-[38rem] xl:max-w-3xl }\">\n<div class=\"relative flex w- flex-col gap-1 md:gap-3 lg:w-\">\n<div class=\"flex flex-grow flex-col gap-3 max-w-full\">\n<div class=\"min-h-[20px] flex flex-col items-start gap-3 overflow-x-auto whitespace-pre-wrap break-words\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<h3><strong>FAQ for Non-Resident Canadian Citizens Buying Property in Vancouver<\/strong><\/h3>\n<ol>\n<li>\n<h5><strong>Who is considered a non-resident Canadian citizen?<\/strong><\/h5>\n<ul>\n<li>A non-resident Canadian citizen is someone who holds Canadian citizenship but does not reside in Canada.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>Can non-resident Canadian citizens buy property in Vancouver?<\/strong><\/h5>\n<ul>\n<li>Yes, non-resident Canadian citizens can buy property in Vancouver and BC.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>Are there any additional taxes for non-resident property buyers in Vancouver?<\/strong><\/h5>\n<ul>\n<li>There may be additional taxes such as the &#8220;additional property transfer tax for foreign individuals and entities.&#8221; It&#8217;s essential to consult with a local real estate expert or lawyer.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>What is the Vancouver Empty Homes Tax?<\/strong><\/h5>\n<ul>\n<li>This is a tax issued by the province for properties deemed empty, which get taxed 1% of the property value.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>What is the BC Speculation and Vacancy Tax?<\/strong><\/h5>\n<ul>\n<li>This tax is designed to turn empty homes into housing and ensure foreign owners and those with primarily foreign income contribute fairly to BC\u2019s tax system.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>How does taxation work for rental revenue from a property in BC for non-residents?<\/strong><\/h5>\n<ul>\n<li>The CRA requires &#8220;non-resident withholding taxes&#8221; to be paid on monthly rental income. There are specific processes and options available.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>Are there any benefits to buying a presale property in Vancouver as a non-resident?<\/strong><\/h5>\n<ul>\n<li>Yes, presales offer non-resident buyers a straightforward opportunity to invest in the Vancouver market with various benefits like detailed digital renderings, no need for a mortgage right away, and potential incentives.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>How can non-residents manage rental properties in Vancouver?<\/strong><\/h5>\n<ul>\n<li>Non-residents can work with property management companies or real estate professionals who specialize in rentals and property management.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>What kind of rental expenses are deductible for non-residents?<\/strong><\/h5>\n<ul>\n<li>Most expenses related to the rental property, such as repairs, maintenance, property taxes, leasing fees, mortgage interest, and property management fees, are deductible.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h5><strong>What should non-residents be aware of when selling a property in BC?<\/strong><\/h5>\n<\/li>\n<\/ol>\n<ul>\n<li>Non-residents should be aware of the 25% non-resident withholding tax on the sale of a property in Canada.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"flex justify-between lg:block\">\n<div class=\"text-gray-400 flex self-end lg:self-center justify-center mt-2 gap-2 md:gap-3 lg:gap-1 lg:absolute lg:top-0 lg:translate-x-full lg:right-0 lg:mt-0 lg:pl-2 visible\"><button class=\"flex ml-auto gap-2 rounded-md p-1 hover:bg-gray-100 hover:text-gray-700 dark:text-gray-400 dark:hover:bg-gray-700 dark:hover:text-gray-200 disabled:dark:hover:text-gray-400\"><\/button><\/p>\n<div class=\"flex gap-1\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"h-32 md:h-48 flex-shrink-0\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"absolute bottom-0 left-0 w-full border-t md:border-t-0 dark:border-white\/20 md:border-transparent md:dark:border-transparent md:bg-vert-light-gradient bg-white dark:bg-gray-800 md:!bg-transparent dark:md:bg-vert-dark-gradient pt-2 md:pl-2 md:w-\">\n<form class=\"stretch mx-2 flex flex-row gap-3 last:mb-2 md:mx-4 md:last:mb-6 lg:mx-auto lg:max-w-2xl xl:max-w-3xl\">\n<div class=\"relative flex h-full flex-1 items-stretch md:flex-col\">\n<div>\n<div class=\"h-full flex ml-1 md:w-full md:m-auto md:mb-4 gap-0 md:gap-2 justify-center\"><\/div>\n<\/div>\n<\/div>\n<\/form>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\ufeff\ufeff\ufeff\ufeff Sign up to hear about BC property opportunities What we are going to discuss &#8211; Canadian Citizen Non-Resident Buying Property in BC We are going to discuss the process of buying and owning residential properties in Vancouver and British Columbia, for Canadian citizens who are end users and for investors who are non-residents of&#8230;<\/p>\n","protected":false},"author":33,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[4544,4545,2504,4090,2496],"taxonomy_info":{"category":[{"value":1,"label":"Uncategorised"}],"post_tag":[{"value":4544,"label":"Investing in Vancouver"},{"value":4545,"label":"Vancouver Homes"},{"value":2504,"label":"Vancouver Housing Market"},{"value":4090,"label":"Vancouver New Homes"},{"value":2496,"label":"vancouver real estate"}]},"featured_image_src_large":false,"author_info":{"display_name":"Vicky Aulakh","author_link":"https:\/\/www.vancouvernewcondos.com\/author\/vicky\/"},"comment_info":0,"category_info":[{"term_id":1,"name":"Uncategorised","slug":"uncategorised","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":43,"filter":"raw","cat_ID":1,"category_count":43,"category_description":"","cat_name":"Uncategorised","category_nicename":"uncategorised","category_parent":0}],"tag_info":[{"term_id":4544,"name":"Investing in Vancouver","slug":"investing-in-vancouver","term_group":0,"term_taxonomy_id":4544,"taxonomy":"post_tag","description":"","parent":0,"count":16,"filter":"raw"},{"term_id":4545,"name":"Vancouver Homes","slug":"vancouver-homes","term_group":0,"term_taxonomy_id":4545,"taxonomy":"post_tag","description":"","parent":0,"count":16,"filter":"raw"},{"term_id":2504,"name":"Vancouver Housing Market","slug":"vancouver-housing-market","term_group":0,"term_taxonomy_id":2504,"taxonomy":"post_tag","description":"","parent":0,"count":85,"filter":"raw"},{"term_id":4090,"name":"Vancouver New Homes","slug":"vancouver-new-homes","term_group":0,"term_taxonomy_id":4090,"taxonomy":"post_tag","description":"","parent":0,"count":22,"filter":"raw"},{"term_id":2496,"name":"vancouver real estate","slug":"vancouver-real-estate","term_group":0,"term_taxonomy_id":2496,"taxonomy":"post_tag","description":"","parent":0,"count":87,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/posts\/15491"}],"collection":[{"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/comments?post=15491"}],"version-history":[{"count":0,"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/posts\/15491\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/media?parent=15491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/categories?post=15491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vancouvernewcondos.com\/wp-json\/wp\/v2\/tags?post=15491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}