EVERYTHING YOU NEED TO KNOW ABOUT THE BC ASSESSMENTS

The New Year has arrived and that means your BC Assessment letter will soon be in the mail, notifying you of your current property value AND potentially increased taxes.

As one of the top Vancouver Real Estate Team’s in Greater Vancouver, we understand how frustrating it can be for homeowners continuing to see their property taxes increase year over year. That’s the downside. The upside is the value of your property is increasing and creating more equity in your home. Many of our clients are now looking to tap into that equity and purchase investment properties in the Greater Vancouver Real Estate Market.
If you haven’t already, you should be receiving your BC properly assessment in the mail shortly. But wait, what is the BC assessment all about? BC assessment is conducted by government appraisers and establishes a value of your property to determine your property taxes. The property tax raises over 7 billion dollars in revenue a year to pay for local government services like schools hospitals emergency services, parks, and roads and is therefore, one of the province’s biggest revenue source.

Assessment of a property

What is the assessment of a property and who does it? A BC assessment appraiser will determine the assessed value by taking comparable property prices in the Vancouver area, location, size of the home, size of lot, physical condition of the property, local services, age of the property and miscellaneous features that can affect the home’s value into consideration to make the appropriate estimate. When you receive the letter in the mail, the assessed value is based on the market value of your property as of July 1stof the previous year. To determine the correct value, while constantly chasing current sale prices the appraiser uses the methods:

The direct sales comparison approach which is based on comparable sales in the area and time period.
The income approach, which looks at the potential revenue of property in comparison to its expenses to generate profitability.
Lastly, the cost approach is used when there is a non-comparable property. In which case a property’s value is estimated as the current cost of reproducing or replacing structures on the land. The approach is determined by the properties current use and how often properties with similarity types are bought and sold on the open market.

Why would they assess my property you ask? Easy, Vancouver is known for its soaring Real Estate prices, creating a great source for the city to collect billions in revenue. The higher your property value, the higher, unfortunately, your taxes. The assessment appraiser calculates the property’s value based on the factors above and multiplies it by the current property tax rate which then equals your property taxes.

Is it all bad? Not at all. Increasing property value can sometimes help speed up the selling process as many looks at the asking vs. assessed price when purchasing a property. But more importantly, it can help you create more equity for your home, which in turn can help you purchase more properties and increase your overall assets.

Do I pay the full amount of property taxes?

It depends…. The City of Vancouver offers a Home Owners Grant to those that are Canadian Citizen or landed immigrants, ordinarily reside in British Columbia and are a registered owner of a home in Vancouver. Some homeowner may be eligible for an additional grant if they 65 or older, have a disability or receive a veteran’s allowance. Homeowners whose property value is above 1.764 million, however, are eliminated from the basic grant and homeowners that own a home with an assessed value over 1.819 million are eliminated from the additional grant.

In addition, you have the right to appeal your tax assessment and try to lower the assessed value to reduce your property taxes. Statistically, about one to two percent of homeowner appeal the assessment.

It’s important to note that the assessment was determined in July 2018 and the market condition can change quickly, especially in Vancouver. Therefore, it’s critical to get a current and accurate valuation of your property if you are considering selling. With prices softening, now may be the perfect time to consider buying an investment property in Vancouver. Give our team and call with the best real estate agents and we can advise you on whether purchasing another property makes sense for you. It can be a great source of income over the long term.

The New Year has arrived and that means your BC Assessment letter will soon be in the mail, notifying you of your current property value AND potentially increased taxes.

As one of the top Vancouver Real Estate Team’s in Greater Vancouver, we understand how frustrating it can be for homeowners continuing to see their property taxes increase year over year. That’s the downside. The upside is the value of your property is increasing and creating more equity in your home. Many of our clients are now looking to tap into that equity and purchase investment properties in the Greater Vancouver Real Estate Market.
If you haven’t already, you should be receiving your BC properly assessment in the mail shortly. But wait, what is the BC assessment all about? BC assessment is conducted by government appraisers and establishes a value of your property to determine your property taxes. The property tax raises over 7 billion dollars in revenue a year to pay for local government services like schools hospitals emergency services, parks, and roads and is therefore one of the province’s biggest revenue source.

Assessment of a property

What is the assessment of a property and who does it? A BC assessment appraiser will determine the assessed value by taking comparable property prices in the Vancouver area, location, size of the home, size of lot, physical condition of the property, local services, age of the property and miscellaneous features that can affect the home’s value into consideration to make the appropriate estimate. When you receive the letter in the mail, the assessed value is based on the market value of your property as of July 1stof the previous year. To determine the correct value, while constantly chasing current sale prices the appraiser uses the methods:

The direct sales comparison approach which is based on comparable sales in the area and time period.
The income approach, which looks at the potential revenue of property in comparison to its expenses to generate profitability.
Lastly, the cost approach is used when there is a non-comparable property. In which case a property’s value is estimated as the current cost of reproducing or replacing structures on the land. The approach is determined by the properties current use and how often properties with similarity types are bought and sold on the open market.

Why would they assess the property you ask? Easy, Vancouver is known for its soaring Real Estate prices, creating a great source for the city to collect billions in revenue. The higher your property value, the higher, unfortunately, your taxes. The assessment appraiser calculates the property’s value based on the factors above and multiplies it by the current property tax rate which then equals your property taxes.

Is it all bad? Not at all. Increasing property value can sometimes help speed up the selling process as many looks at the asking vs. assessed price when purchasing a property. But more importantly, it can help you create more equity for your home, which in turn can help you purchase more properties and increase your overall assets.

Do I pay the full amount of property taxes?

It depends…. The City of Vancouver offers a Home Owners Grant to those that are Canadian Citizen or landed immigrants, ordinarily reside in British Columbia and are a registered owner of a home in Vancouver. Some homeowner may be eligible for an additional grant if they 65 or older, have a disability or receive a veteran’s allowance. Homeowners whose property value is above 1.764 million, however, are eliminated from the basic grant and homeowners that own a home with an assessed value over 1.819 million are eliminated from the additional grant.

In addition, you have the right to appeal your tax assessment and try to lower the assessed value to reduce your property taxes. Statistically, about one to two percent of homeowner appeal the assessment.

It’s important to note that the assessment was determined in July 2018 and the market condition can change quickly, especially in Vancouver. Therefore, it’s critical to get a current and accurate valuation of your property if you are considering selling. With prices softening, now may be the perfect time to consider buying an investment property in Vancouver. Give our team and call with the best real estate agents and we can advise you on whether purchasing another property makes sense for you. It can be a great source of income over the long term.


Get in touch with us to discuss the best opportunities for you in this market. We are never too busy to find the right strategy for you.
info@leeandpete.com
604- 729-5646

Leave a Reply

Your email address will not be published. Required fields are marked *