B.C. Home owners to get a tax break

[Sportsdude]

[A href="http://www.theglobeandmail.com/servlet/story/RTGAM.20070112.wbc-homeowners0112/BNStory/National/home"]http://www.theglobeandmail.com/servlet/story/RTGAM.20070112.wbc-homeowners0112/BNStory/National/home[/A]

  B.C. Home owners get tax Break

CP

Victoria- The British Columbia government is raising the homeowner grant threshold in response to huge increases in property values. Finance Minister Carole Taylor says the new ceiling at which homeowners can receive the full grant will be $950,000 in assessed property value.

 That's up from the current threshold of $780,000.

 Taylor says higher property values are a mark of B.C.'s economic strength but they "don't always translate into more money in people's pockets."

 She says the new figure ensures more than 95 per cent of B.C. homeowners receive the full grant.

 The program reduces the burden of property taxes to a maximum of $570 a year, with an additional grant of $275 if the owner is over 65, disabled or eligible for certain veteran's allowances.

 

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 To me property values doesn't mean the economy is gun ho on fire it just means that demand exceeds supply and that living in the lower mainland is very desirable to a lot of people.  Now they could make that case for some of the northern communities.  But to say economy dictates property value while partly true isn't the whole picture.  You've got to take in account other factors.

[Russ]

knew it was going up, didnt realize it was going up to 950... thats what the house across from ours sold for last month.

  The market is slowing down, and only in certain areas it seems to keep going.

[Sportsdude]

what areas?

I've noticed here the housing market has gone to the crapper.  We can't sell our old house and its been a year.  And tear downs/rebuild mcmansions have sorta slowed, finally. (hate those ugly giant homes)

[Russ]

Like you said the housing in BC is in a bubble of its own, that keeps moving due to immigration from external and internal peoples. The apartment/ flat market is slowed right down and either stabilized or decreased in certain areas/ districts (very rare so far). This is due to the flood of people selling, renovations coming on the market, and tons of new developements coming on the market. Housing is still selling but at a much slower rate then a few months ago.. I was talking to a few friends that have been looking and some of the houses they looked at have been reduced. They are still selling more than apartments, but not at the same rate. With the dump in the US market and other parts of Canada, its only a matter of time until the Banks in Canada raise the interest rates.. With many people with holdings in houses or apartments barely making the payments now, alot of houses and apartments will be dumped.. and the bubble will burst. Not as bad as everywhere else, but I predict a shock to alot of people. 2010 will have a major effect as well.

[Sportsdude]

I'm glad I'm able to live at home still because if I had to live by myself the cheapest areas that I can afford are in the dangerous parts of the city.

  Yeah you guys have 2010 which will probably slow the bleeding so instead of a crash, you'll see more of a landing.

[Russ]

Well, we will see after 2010 what happens, but I think you are right where 2010 will 'slow the bleeding to a landing' with investers buying, but after 2010 I predict another burst. People will argue but theres other models to support and destroy the theory so only time will tell.

[Sportsdude]

But a 'soft landing' is better then a crash but yeah people saying property values are just going to go up and up are drinking somebody's kool aid.