The HST effect
By Bill de Mooy
Speaking to local real estate agents from Macdonald Realty Westmar and being involved in sales of properties with multiple offers it plain to see the effect the Harmonized Sales Tax is having on the real estate market. The HST has prompted Asian buyers in BC to purchase their own property rather than buying a finished brand new home from a builder. Jim McNaught of PacWest International Management provides the example a $2 million home would come with a $240,000 HST bill, and Asian buyers are opting to purchase the lot themselves and then bringing in a reputable builder to build a customized home.
The most desired areas for the "buy now - build later" buyer in Richmond is in west Richmond such as the "monds", "mores", Broadmoor, Riverdale subdivisions.
Sample sales include:
Raymond Av - LP $1,098,000 SP $1,060,000 DOM 4 days 66' x 121'
"Large 66' x 121' lot with sunny Southern exposed backyard on a quiet, tree lined street in popular Seafair area. Many new homes already built on this presetigious street with few opportunities left! Solid 3 level split, easy to rent. Great location close to Dixon Elementary (French Emmersion) and Hugh Boyd High School. Short stroll to Seafair shopping and Scenic West Dyke. Great investment to hold or build now up to 3650 sq.ft."
Clematis Dr - LP $1,180,000 SP $1,300,000 DOM 8 days 65' x 126/127'
"To build or hold this over 9,000 sq.ft. lot in "Riverdale". This spacious 2 level family home has been nicely updated. Painted and updated with REAL hardwood floor on both levels, newer boiler, furnace, baseboard and trims, new appliances, double glazed vinyl windows. Upstairs has 3 generous bedrooms, 2 full baths, huge living room, kitchen and good size deck. Downstairs has separate self contained suite of 2 bedrooms, 1 full bath and a kitchen. Single garage plus carport & lots of open parking."
Minler Rd - LP $1,250,000 SP $1,180,000 DOM 11 days 66' x 125'
"Solid house with lots of updates on a beautiful 66' x 125' lot. Total 6 bedrooms, 3 kitchens, 4 bathrooms. (2 suites in lower level). Nice neighbourhood and beautiful street appeal with many house around. Hold or build your dream home. Property will be sold as land value only. Another 2 bedroom suite potential in lower level. Great investment opportunity."
Lucas Rd - LP $1,250,000 SP $1,200,000 DOM 12 days 66' x 124'
"Beautiful 66' x 124' corner lot backing onto park. Located in subdivision with many new multi million dollar homes. No ditches. Property is being sold mainly for lot value. Month to month tenancy."
NOTE: that the extra 4' to 6' depth definitely increases the selling price as this translates into being able to build a bigger house. Also note that in these examples, a well maintained home does command a higher selling price, as the Clematis house shows versus the "lot value" properties of Minler and Lucas.
For an up-to-the-minute valuation of your home in today's market, give me a call 604-274-2222. And if you are not ready to sell now, I can keep you informed monthly of changes to the market until you are ready to move.
Speaking to local real estate agents from Macdonald Realty Westmar and being involved in sales of properties with multiple offers it plain to see the effect the Harmonized Sales Tax is having on the real estate market. The HST has prompted Asian buyers in BC to purchase their own property rather than buying a finished brand new home from a builder. Jim McNaught of PacWest International Management provides the example a $2 million home would come with a $240,000 HST bill, and Asian buyers are opting to purchase the lot themselves and then bringing in a reputable builder to build a customized home.
The most desired areas for the "buy now - build later" buyer in Richmond is in west Richmond such as the "monds", "mores", Broadmoor, Riverdale subdivisions.
Sample sales include:
Raymond Av - LP $1,098,000 SP $1,060,000 DOM 4 days 66' x 121'
"Large 66' x 121' lot with sunny Southern exposed backyard on a quiet, tree lined street in popular Seafair area. Many new homes already built on this presetigious street with few opportunities left! Solid 3 level split, easy to rent. Great location close to Dixon Elementary (French Emmersion) and Hugh Boyd High School. Short stroll to Seafair shopping and Scenic West Dyke. Great investment to hold or build now up to 3650 sq.ft."
Clematis Dr - LP $1,180,000 SP $1,300,000 DOM 8 days 65' x 126/127'
"To build or hold this over 9,000 sq.ft. lot in "Riverdale". This spacious 2 level family home has been nicely updated. Painted and updated with REAL hardwood floor on both levels, newer boiler, furnace, baseboard and trims, new appliances, double glazed vinyl windows. Upstairs has 3 generous bedrooms, 2 full baths, huge living room, kitchen and good size deck. Downstairs has separate self contained suite of 2 bedrooms, 1 full bath and a kitchen. Single garage plus carport & lots of open parking."
Minler Rd - LP $1,250,000 SP $1,180,000 DOM 11 days 66' x 125'
"Solid house with lots of updates on a beautiful 66' x 125' lot. Total 6 bedrooms, 3 kitchens, 4 bathrooms. (2 suites in lower level). Nice neighbourhood and beautiful street appeal with many house around. Hold or build your dream home. Property will be sold as land value only. Another 2 bedroom suite potential in lower level. Great investment opportunity."
Lucas Rd - LP $1,250,000 SP $1,200,000 DOM 12 days 66' x 124'
"Beautiful 66' x 124' corner lot backing onto park. Located in subdivision with many new multi million dollar homes. No ditches. Property is being sold mainly for lot value. Month to month tenancy."
NOTE: that the extra 4' to 6' depth definitely increases the selling price as this translates into being able to build a bigger house. Also note that in these examples, a well maintained home does command a higher selling price, as the Clematis house shows versus the "lot value" properties of Minler and Lucas.
For an up-to-the-minute valuation of your home in today's market, give me a call 604-274-2222. And if you are not ready to sell now, I can keep you informed monthly of changes to the market until you are ready to move.