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Get ready for 2024! New rules and regulations are on the horizon in real estate. Here is a quick list of some of the most important changes coming from local, provincial, and federal governments.

Canmore

Locally in Canmore has a newly proposed housing action plan, which lists 4 main initiatives to combat its ongoing housing crisis. This plan was created to access The Housing Accelerator Fund (HAF) was launched by the Government of Canada and the Canada Mortgage and Housing Corporation (CMHC) in spring of 2023. 

This plan including phasing out tourist homes to open up vacancy for permanent and long-term residents.

If the plan is approved, they’ll be phased out under the action plan. Administration is recommending that council remove the tourist home designation in the land use bylaw. Meaning, no new tourist homes would be approved moving forward. Existing tourist homes would become legally non-confirming — meaning they could continue to operate as a tourist home, unless the use ceased for six consecutive months, at which point they would revert to a residential use.

The plan also includes mention of investigate tax structures to incentivize full-time/long-term occupancy of residential units (see page 492). Nothing has been set in stone, but I envision something like the BC underused housing tax (Spec tax) which is set at 1% of the assessed value per year as a tax (.5% for BC residents). 

Alberta

In Alberta has some new tenancy / landlord rules. 

As of Jan. 1, Alberta landlords will need to pay tenants annual interest on security deposits. Since 2009, the interest rate on security deposits has been zero. But now, under the Residential Tenancies Act and Mobile Home Sites Tenancies Act, the interest rate is 1.6 per cent.

According to the online calculator a tenant who paid a $1,000 damage deposit will be entitled to $16 from their landlord by the end of 2024.

Nationally

In the Fall Federal Economic Update the government committed to clamping down on short-term rentals by denying income tax deductions incurred to make money from short-term rentals in provinces where such the practice is illegal. 

This may affect you if you are operating a short term rental that does NOT confirm to local zoning codes – in Canmore that means outside of the ‘hotel-condo’ or ‘Tourist Zoned’ area. 

The CREA (Canadian Real Estate Association) has changed the rules resulting in an effective end of the so-called “exclusive” real estate listing. These “exclusive” listings, sometimes also called “pocket” or “off-market” listings, are properties put up for sale but not entered on the Multiple Listings Service. On Jan. 3, the new “cooperation policy” formulated by CREA came into effect, forcing any realtor to add an exclusive listing to the MLS within three days of doing any public marketing. Marketing would include everything from a “Coming Soon” sign on a lawn to Instagram posts about a new property.

In BC

Effective May 1, 2024, short term rentals (Airbnb) will not be permitted outside your primary residence. Many different municipalities already restrict Airbnb in principle residences and the result will be a near ban of airbnb in most of BC. Also, protections for legal non-conforming (grandfathered) use of property will no longer apply to short-term rentals. There are 14 resort communities exempt (like Whistler, Sun Peaks, etc) and all areas with a population smaller than 10,000 people are exempt. Read more here.

The Province is also introducing new housing legislation to deliver more small-scale, multi-unit housing for people, including townhomes, triplexes and laneway homes to help build more homes faster. Read more here.

The proposed legislation and forthcoming regulations will permit one secondary suite or one laneway home (accessory dwelling unit) in all communities throughout B.C.

In most areas within municipalities of more than 5,000 people, these changes will also require bylaws to allow for:

• three to four units permitted on lots currently zoned for single-family or duplex use, depending on lot size;
• six units permitted on larger lots currently zoned for single-family or duplex use and close to transit stops with frequent service.

In conclusion, 2024 is shaping up to be a year of significant changes in the real estate industry across Canada. From proposed zoning and taxation changes in Canmore to the introduction of new landlord tenant rules in Alberta, it is crucial for both buyers and sellers to stay informed and adapt accordingly.

Overall, staying educated and up-to-date on these developments will be key in navigating these changing laws and ultimately thriving in the real estate market. So if you have any questions or concerns about how these laws may impact you, don’t hesitate to reach out – I’m always happy to help!

If you’re considering buying a short term rental (Airbnb) property, you may have heard of something called “deferring the GST.” This term is thrown around a lot in real estate conversations, but it can be tricky to understand what it actually means. In this blog post, I’ll explain what GST is, which style of properties are subject to the tax, what deferring the GST really is and why it might be a good option for some investors.

First, what is GST? It’s goods and services tax, a multi-level value-added tax that was introduced to Canada in 1991. But who actually has to pay it? Well, almost everyone does on taxable real estate, goods and services. It’s ultimately up to businesses/seller to collect and remit this tax on behalf of customers. 

So, when you buy certain types of real estate, the seller needs to collect and remit GST. Used residential real estate is almost always exempt, but new construction and nightly rental properties normally aren’t.

For newly built homes or condos, you’ll be paying a 5% GST on the total purchase price – including land. But if you plan to settle in your new place as your primary residence, it may qualify for partial relief from this tax (depending on the purchase price). For more information on potential GST Rebates please follow this link.

Properties that are used for nightly rental revenue purposes are classified as commercial assets and therefore also subject to GST. 

When GST is applicable on a nightly rental property, Buyers can assume liability for remitting the GST on the seller’s behalf, and then pay it with their input tax credit. This means that buyers don’t need to come up with an extra 5% in cash upon purchase. This process is often referred to as “deferring the GST”.

The main advantage of deferring the GST is that it eliminates the need for buyers to come up with extra money upfront when they purchase property. However, it’s important to note that not all properties are eligible for deferring the GST–only properties intended entirely as revenue generating properties qualify. Deferring the GST also requires paperwork and can add complexity to real estate transactions – so make sure to ask your accountant and lawyer in advance of finalizing a sale.

Conclusion:

In summary, deferring the GST can be a useful option for buyers who are purchasing revenue generating properties. While deferring does eliminate this problem, it’s important to note that not all properties are eligible and that paperwork needs to be filled out in order to successfully complete a deferred-GST transaction. 

If you’re considering buying property and want to find out if deferring your GST payment could work for you, talk to your accountant! They’ll be able to provide more information about whether or not this option makes sense for your situation.

Moving from a small home to a larger one can be an exciting and overwhelming experience, especially for busy families. It’s important to take the time to plan ahead so that you don’t wind up feeling frazzled and frustrated while you’re in the midst of the moving process. Here are some tips to help make your upsize more manageable and stress-free. 

Create a Moving Plan 

The best way to start off on the right foot is by creating a detailed plan of action. Make sure to include key dates such as when you need to list your current home, when you will be searching for your new home, and when you need any financing paperwork completed. Also, create a budget and timeline for buying furniture, packing boxes, having utilities switched over, etc. This will help ensure that everything gets done in plenty of time before you move into your new place. 

Get Help 

Upsizing to a larger home is possible and you don’t have to turn your life upside down to achieve it. In my opinion the key to success is having good help. I’d suggest finding yourself a DREAM TEAM. Here is the team I recently used on my move-up.

– a local stager
– cleaner
– painter
– handymen
– and most importantly, a great REALTOR® 

Set Aside Time for Yourself    

It’s easy for families who are in the midst of an upsize move to get caught up in all of their responsibilities and forget about taking time out for themselves. But it’s important not just for mental health reasons but also so that everyone can stay refreshed and focused on what needs to get done throughout this process. Setting aside even just 15 minutes each day for yourself can make all the difference in how smoothly things go with the move. 

Finally ..

Up-sizing a home is no small feat—especially if you have kids! However, by planning ahead, creating lists and setting aside some much-needed “me time” here and there throughout this process, busy families looking at upsizing their homes can ease much of the stress associated with this monumental task…and maybe even enjoy it! Best wishes on your big move!

Home staging has become a popular way to increase a home’s selling price and decrease the selling time.

Staging is effective because it emphasizes a property’s strengths and minimizes its weak points.

The goal is to elicit an emotional response from the buyer. Why? Because buying real estate is emotional! We all want to fall in love with the home we end up buying.

“How will COVID-19 affect the way we work in the future?” This is certainly a question I have heard discussed often these days. The dream of being able to log into a computer rather than drive into the office every morning has become a reality for millions of Canadians over the last few weeks. Sure, virtual working isn’t all glamour and freedom, especially if you are trying to work while homeschooling your kids or chasing your small toddler (as I have been doing) but it is a dream come true for many people.

A green home can go by many different names, such as a resource-efficient home, high-performance home, smart home, sustainable homes, or eco-home.

These homes saves money on operational costs by using resources like energy and water economically and provides a comfortable, healthful living environment for the residents .. who doesn’t want that?

I’ve owned and operated an Airbnb for the last couple of years and have learned some lessons I often share with clients.

Canmore is interesting… If you’re thinking about buying an Airbnb in town you need to know about the two kinds of zoning.

Well, the statistics are starting to look VERY dramatic.

When a buyer visits a home, they want to be wowed! I always tell clients our goal is to elicit an emotional response. We want them to be blown away! The goal is to persuade the buyer to take action.

The goal of every showing is to get you an offer! And you only get one chance to make a first impression!

The key to selling your home quickly and for top dollar is to think ahead and be organized.

Here are 5 top items to get organized…