Real eState

Is flipping a house now a flop? Why the practice has lost its cachet in Vancouver – Vancouver Sun

Published

3 years ago

September 13, 2021

Real estate insiders say the party is probably over, for now, as housing becomes a hot election issue even as the market cools.

Author of the article:

Gordon McIntyre

Veteran Vancouver realtor Carollyne Sinclaire says it’s not just wealthy people flipping homes, but also a lot of families who knew how to do some construction and repair work, and want to move up to bigger digs. Photo by Arlen Redekop /PNG

If you saw COVID-19 as a golden opportunity to flip a house, your timing was impeccable. Prices soared, flippers cleaned up.

In response, federal Liberals, Conservatives, NDP and Greens are tripping over themselves promising they’ll bring down housing costs.

And the Grits, while promising an anti-flipping tax for properties sold in less than 12 months after purchase, have a candidate in Vancouver Granville, Taleeb Noormohamed, who has flipped at least 21 homes for $4.5 million more than he paid for them.

Regardless, real-estate insiders and observers say the party is probably over anyway.

For awhile, at least.

“I think in the past year-and-a-half since (COVID), house-flipping has been as popular as ever,” Adam Major, managing broker at Holywell Properties, said. “As prices rise, it is easier to make a profit so provided you bought before the summer of 2020 it has been easy money.

“With the COVID insanity that took place in the last year, it will be more difficult for flippers as they have had to compete to buy just like everyone else.”

In other words, if house prices flatten, flippers will have to swallow the added cost of materials and labour, squeezing profits.

“Flippers will be aware that with interest rates eventually starting to rise, it could be a risky business, so I suspect we will see a slow down in flips over the next few years,” Major said.

If you search “flip this house Canada” online, all sorts of websites pop up, including tax tips and advice from real estate companies.

As the reaction to Noormohamed’s house flips shows, moral outrage is part of the reaction.

But Carollyne Sinclaire, a veteran Vancouver realtor, cautions that many people flipping houses are doing so to improve their station in life.

“It wasn’t just (Noormohamed) doing it, it wasn’t singular to the wealthy,” she said. “It was a lot of families who knew how to do some construction and repair work. Actually, there was more flipping going on by multi-generational immigrant families than there was by the wealthy.”

Such as one family who were clients of hers who crammed five people into a one-bedroom townhouse in Fairview Slopes or the three generations of family who comprised eight people living in a two-bedroom home in East Vancouver.

“They fixed up inexpensive homes and were trying to climb the market to a bigger, better home,” Sinclaire said.

As for flipping itself, does it actually increase the price of housing?

“It could directly if you take a $1 million or $1.5 million home and fancy it up, you might make the house more expensive then, while adding to the housing stock by improving quality of the home,” said Tom Davidoff, assistant professor at the Sauder School of Business at the University of B.C. and a real estate expert.

“But if all the houses in Vancouver got fancy, you might generally have more affluent buyers purchasing, so in that way you could diminish affordability.”

In other words, flipping can attract wealthier buyers who wouldn’t have come into the community had a house not been upgraded.

“On the other hand, you could take it the other way and take an unlivable house and spend some money on it to add to the housing stock,” Davidoff said.

We apologize, but this video has failed to load.

Supply and NIMBY-influenced zoning, he said, are prime factors in house prices: “The flipping stuff … is second order. That said, I think flipping can exacerbate cycles. You get people buying when the market is hot, that adds fuel to the fire.”

In any event, clamping down on the principle residency provision is a good idea, he said, but it goes beyond capital gains.

“We have relatively low property taxes with a relatively high burden put on income taxes, which is lousy for renters but great for homeowners,” Davidoff said. “But the (political) parties aren’t going to touch that.”

Under Canadian tax laws, Major added, people are rewarded for owning and flipping properties, especially if they can take advantage of personal residence exemption and pay no tax on the gains.

“And even if you do pay capital gains, it’s 50 per cent exempt before being taxed at your personal rate,” he said. “Not to mention we have very low property taxes compared to what we pay in income tax.

“Dumb saps like us who work for a living and have half our income deducted before we even see it are likely the ones who need a wake-up call.”

gordmcintyre@postmedia.com

twitter.com/gordmcintyre

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Real eState

Two Quebec real estate brokers suspended for using fake bids to drive up prices

Published

4 days ago

September 11, 2024

Anne Joseph

MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.

Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.

Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.

She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.

The two brokers were suspended in May 2023 after La Presse published an article about their practices.

One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.

This report by The Canadian Press was first published Sept. 11, 2024.

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Real eState

Montreal home sales, prices rise in August: real estate board

Published

1 week ago

September 6, 2024

Anne Joseph

MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.

The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.

The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.

The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.

QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.

Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.

This report by The Canadian Press was first published Sept. 6, 2024.

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Real eState

Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis

Published

2 months ago

July 24, 2024

Harry Miller

In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.

Here are the top 10 cities that emerged as the best for renters in 2024:

St. John’s, NL

St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.

Sherbrooke, QC

Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.

Québec City, QC

Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.

Trois-Rivières, QC

Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.

Saguenay, QC

Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.

Granby, QC

Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.

Fredericton, NB

Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.

Saint John, NB

Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.

Saint-Hyacinthe, QC

Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.

Lévis, QC

Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.

This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.

Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.

Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.

For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.

While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.