10 terms to make sense of wild real estate market of Vancouver
Real estate market of Vancouver and housing crisis are rarely out of headlines.
As politicians look out for solutions amid seemingly endless stories of everyone to artists from families being squeezed out and surface of court cases revealed underbelly of real estate market, here’s a list of terms which help to make sense in real estate market of Vancouver:
1. Snow washing: Think about money laundering in a very safe and a respectable country like Canada. Snow washing is done when international businesses hide all of the illegitimate financial transactions in Canada for the purpose of tax evasion.
2. Fuerdai: It is a Chinese term which refers to second generation children. It is new money as parents have earned all of their wealth within lifetime.
3. Bare trust: Wealthy and Corporations individuals hold properties in bare trusts so that they may avoid paying tax on property transfer.
4. Ghost immigrant: It is a person who secures permanent residency and buys property in Canada and after that returns to their home country.
5. Shadow flipping: Some of the Realtors abuse a clause in contracts of real estate which is known as an assignment clause and allows to transfer purchase of a property to the another property buyer.
6. Affordable housing: Rental incentive guidelines defined for profitable and affordable rental housing that put it up between $1,730 and $1,903 for one-bedroom rental or between an amount of $3,365 and $3,702 for a 3 bedroom unit.
7. Renovictions: Evicting tenants under guise of doing home renovations in order to increase its rent.
8. Speculation tax: A provincewide tax was introduced in 2018 budget which targeted secondary homes which are not occupied. Some areas, like Squamish and Bowen Island, are exempt.
9. Foreign buyer ban: A proposal was issued by B.C. Green Party earlier during this year to copy countries like New Zealand and allows permanent residents to purchase property.
10. School tax: A levy intended to pay for upgrades in school seismic which may increase in property tax by 0.2% on homes that valued between $3 and $4 million and 0.4% on value above $4 million.