Anshu Arora LLM, MSc, PMP

The speculation and vacancy tax is an annual tax based on how owners use residential properties in major urban areas in B.C. All residential property owners in the designated taxable regions must complete an annual declaration for the speculation and vacancy tax.

The speculation and vacancy tax is due on the first business day in July (July 2 in 2020). However, you can pay the tax anytime after you receive a Notice of Assessment in the mail, which will show the amount of speculation and vacancy tax you owe. After you declare, a Notice of Assessment will be generated and mailed to you if you owe the tax.

For properties owned on December 31, 2018, the tax rate is the same for everyone: 0.5% of the assessed value of your residential property on July 1, 2018, as determined by BC Assessment. B.C. owners are eligible for a tax credit of up to $2,000 on secondary properties to offset their tax payable.

For 2019 and onwards, the speculation and vacancy tax rate varies, depending on your residency and where you pay income tax:

• 2% for foreign owners and satellite families
• 0.5% for British Columbians and other Canadian citizens or permanent residents who are not members of a satellite family

The speculation and vacancy tax applies based on ownership as of December 31 each year.

If a residential property has multiple owners, any owed tax is divided among each owner based on their ownership share. For example, if you and your spouse are equal owners of a residential property in a taxable region, and no exemption applies, you’ll each owe tax on 50% of the home’s assessed value.

The tax rate for a corporation, trustee or business partner will be the highest rate applicable to any of the corporate interest holders, beneficial owners or business partners if they held the residential property individually.

BC Assessment notices have arrived in the mail, giving some homeowners a big smile and a bit more spring in their step (increased property taxes aside), while others wilt and lament at a modest gain or decrease in assessed value.

But hold on a sec. Neither this assessment document, nor either parties’ emotions, are tied to a current true market value. In fact, provincial property assessments can be significantly too high or too low. Values are determined in July of the previous year, and properties are rarely visited in person by provincial appraisers.

For this reason, provincial property assessments should never be solely relied upon as any sort of relevant indicator of true market value for the purposes of purchase, sale or financing.

A quick survey of recent sales and their relation to assessed values will often demonstrate no clear relationship between sale price and assessed value. It’s often all over the map.

BC Assessments were done in July 2019 and market significantly went up in October, November and December 2019!!

Tahiti is a French Polynesian island located a sizable distance from all the main continents. That remoteness lends to its beauty and exclusivity!

If you have dreams of buying a house in Tahiti, it’s important to know a little background first. Real estate there is very affordable. With easy access to the island via multiple airports, it can be a great getaway for those who are free to travel throughout the year. By visiting, you also skirt the residency requirements to live in Tahiti, although you’ll still need a passport.

Before you can purchase any land on the island, you’ll need approval from the French Polynesian government. The government is most likely to approve purchases if your presence will boost the economy. If, for instance, you’re building a big hotel or opening a restaurant on the island, you’ll be seen as an asset and more likely to get approval.

Now, when it comes to helping and/or guiding you buy and sell Real estate,

• anyone can say that they mail out flyers, and they probably will...
• anyone can hold an open house and sit there for 2-3 hours, and they do...
• anyone can "customize" a plan for you, and they will...
• anyone can pull comparables off the internet and show you the numbers, and they will...

I do more than what anyone can or will...

I use my knowledge and expertise in marketing, research & analysis, sales, development & real estate and various other fields (including strategic positioning, communication, technology) to sell and/or help you purchase your property. My custom designed real estate/investment algorithm takes into account over 50 tangible and intangible factors, including

• Walk score
• Number of development permits in your area
• Number of building permits in your area
• Transit proximity
• Proximity to elementary and secondary schools
• Proximity to university
• Proximity to shopping and hospitals
• Latest solds
• Number of active listings
• The “feel” of the neighborhood
• Local crime stats
• Topographical/Geographical features