The Central Okanagan’s residential real estate market statistics reveal some interesting insights.
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Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
Starting May 1, 2024, short-term rentals in BC will be limited to the host’s primary residence plus one secondary suite. Bill 35 aims to ban investment properties from being rented out for any period under 90 days. Hosts in Vancouver, Victoria, and Whistler may require business licenses to operate for profit.
Starting on May 1, 2024, the Province will enforce a Provincial principal residence requirement in some areas of the province. This will limit short-term rentals to the host’s principal residence and one secondary suite or accessory dwelling unit on the same property.
In January 2025, the government will require municipalities to change their zoning rules to offer more affordable multi-unit housing options, such as townhomes, multiplexes, and laneway
houses. The Province will introduce new legislation to provide more small-scale, multi-unit housing options for people and to fix outdated zoning rules. This will help build more homes faster.
The crackdown on Airbnb rentals will be aimed at operators of multiple investment units, rather than homeowners who have a primary residence with a suite to rent out. The principal residence requirement will not take effect until May 1, 2024.
Residents of British Columbia will only be allowed to lease their primary residence plus one additional secondary suite for short-term rentals when new regulations are enacted. This includes rental listings on various online platforms like Airbnb, VRBO, Expedia, and FlipKey.
Bill 35 in BC intends to ban investment properties from being rented out for any period under 90 days. The aim is to create more rental housing throughout the province, and the new legislation has been met with both criticism and praise. This has implications for strata corporations in BC.
Province of British Columbia – New rules for short-term rentals
Province of British Columbia – More small-scale, multi-unit homes coming to B.C., zoning barriers removed
City of Kelowna – Short-term rentals
BC homeowner ordered to pay strata thousands for listing home on Airbnb – May 14th, 2024
Civil Resolution Tribunal – Indexed as: The Owners, Strata Plan VR45 v. Dexter, 2024 BCCRT 449
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The Central Okanagan’s residential real estate market statistics reveal some interesting insights.
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The Central Okanagan’s residential real estate market statistics reveal some interesting insights.
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The Central Okanagan’s residential real estate market statistics reveal some interesting insights.
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
Bank of Canada has decisively slashed its key rate by 25 basis points, marking the first drop since the onset of the pandemic. Following a series of interest rate hikes initiated in March 2022 in response to higher-than-anticipated inflation figures in the aftermath of pandemic-related economic support and disruptions in global supply chains, this decision holds significant importance.
This move brings the policy rate down to 4.75 percent, a decline from the 5 percent rate that persisted since July of the previous year.
In light of these developments, it is crucial to note that numerous financial institutions and economists are foreseeing a potential trend of descending interest rates kicking off around mid-2024. Projections range from a 0.25 percent reduction to an overall decrease of 1.00 percent by the year’s end.
The Bank of Canada’s forthcoming announcement on June 5th, 2024 is poised to stand as a momentous occasion for assessing the trajectory of interest rates.
Given these shifts, BMO’s Real Financial Progress Index has reported that 72 percent of prospective homebuyers are awaiting interest rate cuts before entering the property market. Consequently, mortgage brokers are currently managing open files, eagerly anticipating potential buyers.
If banks lower their prime rate, borrowers with variable-rate mortgages will experience an immediate impact, just like they’ve experienced the consequences of increasing rates. People with a fixed-rate mortgage will not experience any changes in their payments until it’s time to renew their loans. Fixed-mortgage rates are influenced by changes in the bond market, which, although also impacted by Bank of Canada rate decisions, are based on overall investor confidence. The rate cut had already been largely factored into the market.
This change underscores the opportune conditions for property listings and purchases.
CTV News: Bank of Canada cuts key rate for first time in more than 4 years
CTV News: What the Bank of Canada rate cut means for mortgages, consumer loans, and investments
The Globe and Mail: Potential Bank of Canada rate cut would jolt slow housing market, experts say
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
New tax proposals have been announced for British Columbia. Key highlights include an increase in the inclusion rate for Capital Gains, a speculation tax effective from January 2024, and a flipping tax effective from January 2025.
Various strategies can be employed such as making use of the capital gains reserve or incorporating the rental property business. The BC home flipping tax applies to residential properties owned for less than two years, with rates at 20% for sales within 365 days, and will decline to zero between 366 and 730 days. The new flipped property rule considers a gain from the disposition of residential property in Canada after 2022 that was owned for less than 365 days to be fully taxable as business income regardless of intention.
To minimize capital gains tax on rental properties, there are several options such as making a gift or inherited property your principal residence, putting earnings in a tax shelter, or making use of the capital gains reserve. If planning to flip a home, be aware of the new tax rules effective from January 2023.
Exemption for Principal Residences
Make a Gift or Inherited Property Your Principal Residence
Incorporate Your Rental Property Business
Put Your Earnings in a Tax Shelter
Make Use of the Capital Gains Reserve
Capital Losses Offset
Carry Forward Your Losses
Starting January 1, 2024, the existing Speculation and Vacancy Tax Act will undergo minor changes. Registered leases in the Land Title Office will now be responsible for paying the tax, instead of the property owners.
Effective January 1, 2025, a proposed BC home flipping tax will apply to income from the sale of a property, including presale contracts, in British Columbia, if the property was owned for less than 730 days. This is separate from federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax. The tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act.
The BC home flipping tax applies to residential properties owned for less than two years and will have rates at 20% for sales within 365 days, and will decline to zero between 366 and 730 days.
Starting January 2023, the Principal Residence Exemption will no longer apply if you plan to flip a home while owning it for less than 365 days. Speak to a professional accountant if this situation may apply to you.
The BC home flipping tax applies to net taxable income from the sale of taxable property that was owned for less than 730 days. Your net taxable income is calculated by multiplying your taxable income by your tax rate, less the primary residence deduction.
Under the new rule, a gain from the disposition of a residential property in Canada after 2022, owned for less than 365 days, is considered fully taxable as business income regardless of intention.
To minimize capital gains tax in Canada, designate the property as your principal residence for each year you own it. The number of years that you can claim the principal residence exemption is limited to four years.
For more information:
Government of BC – BC Home Flipping Tax
Government of BC – Speculation and Vacancy Tax Act
Government of Canada – Changes in Use of Your Property
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The Canadian government aims to introduce more affordable housing by changing zoning rules in municipalities to allow for multi-unit housing options. The Province of British Columbia will soon introduce legislation to create more small-scale, multi-unit housing options.
Starting on May 1, 2024, the Province will enforce a provincial principal residence requirement in some areas of the province. This will limit short-term rentals to the host’s principal residence and one secondary suite or accessory dwelling unit on the same property.
In January 2025, the government will require municipalities to change their zoning rules to offer more affordable multi-unit housing options, such as townhomes, multiplexes, and laneway houses. The Province will introduce new legislation to provide more small-scale, multi-unit housing options for people and to fix outdated zoning rules. This will help build more homes faster.
The Province will make limited exemptions to certain properties, such as hotels, motels, timeshare properties, lodges, student accommodations, and strata guest suites. There will also be exemptions for certain communities, such as farmland, ski and resort regions, and Trust areas under the Islands Trust Act.
The crackdown on Airbnb rentals will be aimed at operators of multiple investment units, rather than homeowners who have a primary residence with a suite to rent out. The principal residence requirement will not take effect until May 1, 2024.
Residents of British Columbia will only be allowed to lease their primary residence plus one additional secondary suite for short-term rentals when new regulations are enacted. This includes rental listings on various online platforms like Airbnb, VRBO, Expedia, and FlipKey.
Province of British Columbia – New zoning, amenities, and tenant protections support people and create livable communities
Province of British Columbia – More small-scale, multi-unit homes coming to B.C., zoning barriers removed
City of Kelowna – Short-term rentals
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The real estate industry is constantly evolving, and 2024 is shaping up to be a year of significant change. To stay competitive, agents need to be aware of the following five key trends: digitalization, changing buyer preferences, suburban markets, data analysis, and sustainability. Real estate websites offer easy-to-buy products to help agents drive engagement and turn prospects into leads.
The Rise of Digitalization
Kelowna, a rapidly growing city in Canada, has witnessed a surge in the selling price of townhouses. At the end of 2023, the benchmark selling price of a typical townhouse in Kelowna was $731,600, which is a bit higher than the previous year-end price of $726,000. However, it’s still $97,400 less than the record-high price of $829,000 set in May 2022.
According to the Community Trends report, Kelowna has grown faster than other fast-growing cities like Surrey. Between 2016 and 2021, the population of Kelowna increased by 13.5%, which is higher than the growth rate of 7.6% in British Columbia and 5.2% in Canada.
Kelowna is becoming one of Canada’s fastest-growing cities due to its excellent cuisine, pleasant weather, and easy access to nature and outdoor activities.
Some 492,083 residential properties are forecast to trade hands via Canadian MLS® Systems in 2024, a 10.5% increase from 2023. This is mostly unchanged from CREA’s previous forecast. The national average home price is forecast to climb 4.9% on an annual basis to $710,468 in 2024.
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
If you live in the Okanagan, there is a high probability that you own a boat. Tired of towing it every time you are looking to go on the water? There are permanent and temporary boat moorage options in Kelowna and the area.
Boating on Lake Okanagan is a popular pastime, but having to hook up the boat and wait in line at the boat launch can take time away from your day on the water. There are several boat moorage options in Kelowna and the area, and they offer a heck of convenience.
Beautiful Downtown Kelowna Marina
In the heart of Kelowna’s downtown core, this is a great catch-all for general boating and watersport enthusiasts. There are 68 moorage slips available for long or short-term rental (seasonal all the way down to hourly boat moorage options in Kelowna), along with full-service fuelling facilities and convenient shops. Additionally, this is your access to party boat charters plus boat (and even jet ski) rentals. It’s a one-stop shop, and you can walk back to your downtown hotel in minutes. If you’re feeling like making a real plunge and have some patience for a waitlist, you can explore the Kelowna Yacht Club. Located just minutes away for a premium Kelowna boat storage/moorage experience.
Located directly on the lake next door to Hotel Eldorado and Manteo Resort in Kelowna’s sought-after Lower Mission, this a very unique opportunity to maximize the enjoyment of your boating life in Kelowna. Just download their app, and they will fuel up your boat and have it in the water ready to go shortly thereafter. Once you’re finished for the day simply toss your keys to the attendance and head home, knowing your boat is safe and sound. Boat storage couldn’t be easier or more convenient outside of a slip at a marina. Luckily, Aqua Marine Valet is much, much cheaper. Bonus: They will completely winterize and wrap your boat for off-season storage at their large lakeside facility, where they also have full fueling and detailing services.
Breathtaking Views from Marina
For those with larger vessels, this marina in West Kelowna is the ideal option. Shelter Bay has 450 boat moorage slips which can accommodate boats up to 60 feet in length. They also benefit from significantly deeper water than most facilities on the Eastern shores of Lake Okanagan. This is ideal for larger sailboats. Amenities include mechanical servicing and parts, detailing, wrapping, a full watersport shop, and so on. No stone is left unturned.
As a community built around amazing lake experiences, Kelowna’s locals and tourists have lots of great options for aquatic sports. Boat storage and maintenance are a huge part of the picture. Boating might not be the least expensive hobby, but at least you won’t get caught double-bogeying the 18th hole.
REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.