In the journey toward generational wealth, it’s crucial to remember that progress isn't always measured by immediate asset growth. Sometimes, the wisest move is to pivot from 'expansion' to 'fortification.'

It's perfectly fine—in fact, it's strategic—to have a year dedicated solely to diligently paying down debt or accelerating your mortgage payments. This isn't stagnation; it's preparation. For Canadian families focused on building a legacy for their kids, establishing a foundation of minimal or zero consumer debt is the most powerful launchpad for future success. It gives you the financial resilience and borrowing power you'll need for those bigger, strategic property investments later on.

If this year is about securing that foundation, here are 5 straightforward ways to start paying off debt today:

1. Attack the High-Interest Debt First (The Avalanche Method): List all your non-mortgage debts (credit cards, lines of credit). Focus every extra dollar on the one with the highest interest rate, while maintaining minimum payments on the rest. Once it's gone, roll that payment amount into the next highest rate.

2. Consolidate High-Interest Debt: Explore a lower-interest debt consolidation loan or a balance transfer to a credit card with a promotional rate. Caution is key: Use this strictly to pay down the principal, not to accumulate new debt.

3. Create a "Debt-Killing" Budget: Scrutinize your monthly spending. Find 2-3 areas where you can comfortably cut back (e.g., streaming services, eating out) and redirect that exact amount immediately to your debt.

4. Maximize Your Mortgage Pre-Payments: If your mortgage allows, utilize any lump-sum payment options or slightly increase your regular payment amount. Even small, consistent increases can save you thousands in interest over the long term.

5. Stop the Bleeding: Put the brakes on new debt. Temporarily switch to using a debit card or cash for daily purchases until your targeted debt is significantly reduced.

September 2025 Market Insight | By Monica

The Fraser Valley real estate market has entered a significant transition as we head into the fall season. For months, both buyers and sellers have been navigating a market shaped by economic uncertainty. Now, we’re beginning to see the effects of that uncertainty reflected in price adjustments, inventory stabilization, and shifting buyer behaviour.

In August 2025, home sales in the Fraser Valley dropped more than 20% compared to July, and 13% year-over-year. According to the Fraser Valley Real Estate Board (FVREB), just 931 homes sold on the MLS® last month—making August 36% below the 10-year average for sales. However, for strategic buyers, this cooling activity signals something important: opportunity.

Despite the decline in sales, the number of active listings held steady, with over 10,000 homes currently available across the region. While new listings declined by 19% from July, year-over-year inventory actually ticked up slightly—giving buyers a wider selection of properties without the urgency that once dominated the market.

The sales-to-active listings ratio dropped to 9%, well below the 12–20% range that defines a balanced market. This confirms what buyers and agents alike are experiencing on the ground: a true buyer’s market, where negotiations can be more favourable and conditions more flexible.

💰 Prices Have Softened Across All Property Types

August also brought a modest but meaningful price correction. The composite Benchmark Price across the Fraser Valley dropped by 0.9% month-over-month to $936,200. This price easing is consistent across all housing types:

• Detached homes: $1,436,800 (↓ 1.0% from July, ↓ 5.7% from Aug 2024)

• Townhomes: $807,800 (↓ 0.9% from July, ↓ 4.5% from Aug 2024)

• Apartments: $514,100 (↓ 1.0% from July, ↓ 5.9% from Aug 2024)

For buyers who have been holding out, this correction offers a lower entry point than we’ve seen in some time—particularly in desirable segments like detached homes and townhouses, which had previously surged beyond affordability for many.

⏳ Homes Are Taking Longer to Sell—And That’s Good News for Buyers

In addition to softer pricing and greater choice, the pace of the market has slowed. In August, the average time on market was:

• 41 days for condos

• 38 days for single-family homes

• 32 days for townhouses

This extended timeline gives buyers room to make informed decisions, complete proper due diligence, and negotiate on terms that support their goals—without fear of being outbid in hours.

The market is no longer in a state of frenzy—and that’s a good thing for serious, financially prepared buyers. As Baldev Gill, CEO of the FVREB, noted, the economic uncertainty of early 2025 has largely been factored into today’s market dynamics. What remains is an environment where buyers can re-enter with confidence and strategy.

While no one can predict the exact bottom of any market, smart buyers know that the best time to act is often when others are hesitant. With prices trending downward and inventory holding firm, this fall could represent a rare alignment of timing, value, and negotiation power.

🎯 Final Thought: The Market Is Whispering, Not Shouting—Are You Listening?

For those with a long-term outlook, this is a market to approach with clarity, not fear. It’s an ideal time for buyers to secure not just a property, but a smart investment backed by data and discernment.

If you're considering making a move or simply want personalized insight into what these changes mean for your goals, let’s connect. I’m here to provide honest, grounded guidance—driven by data, elevated by experience.

📩 Contact me today for a private consultation or a custom property report.

Why I’m Inspired by Langley’s Nicomekl Plan—and You Might Be Too

Sometimes you come across a project that makes you pause—not because it’s big, but because it’s deeply aligned with what matters.

Langley’s Nicomekl River Neighbourhood Plan is that kind of project.

It’s about how we grow.
Here’s what stood out to me—and why it matters for anyone building a future with intention.

🌿 1. Homes That Work for Real Life

Townhomes. Garden suites. Artisan studios. This plan creates options for families, creatives, and multigenerational living—all in a way that feels human, not cookie-cutter.

🌊 2. Letting Nature Lead

Instead of overengineering, this community is embracing the land: soft trails, permeable surfaces, native planting. It’s calm. It’s smart. It’s lasting.

🎨 3. Space for Storytelling

I love that they’re not just preserving buildings like Michaud House—they’re creating places for culture, history, and human connection to live and breathe.

🛝 4. Designed for Joy (and Safety)

Playgrounds. Art. Riverfront platforms. The whole area is being shaped with care and creativity. It feels like a place where kids can be free—and everyone can feel safe.

🏡 5. Form That Follows Feeling

From “riverhouse” architecture to native landscaping, every detail supports a sense of home, place, and purpose.

💡 Insight: Owning property in a zone that supports multi-functionality gives your portfolio more ways to work for you.

In times of uncertainty, wise decisions stand out.

The Fraser Valley real estate market continues to evolve, and while many are waiting on the sidelines, those with a discerning eye and financial foresight are recognizing something different: opportunity hidden in plain sight.

The Current Landscape: Stability in Numbers, Shifting in Sentiment

The latest June figures from the Fraser Valley Real Estate Board reveal a market that has cooled in sales but warmed in opportunity:

• 📈 1,195 sales recorded in June — up just 1% from May, but down 9% year-over-year, and 33% below the 10-year average.

• 🏘️ Active listings reached nearly 11,000, marking a 30% increase from June 2024.

• 📉 New listings declined 10% from May, showing sellers are holding, not flooding.

• 📊 The sales-to-active listings ratio holds steady at 11%, keeping the market firmly in buyer’s territory (a balanced market ranges between 12%–20%).

What does this mean for buyers? Quite simply: more options, less competition, and stronger negotiating power.

Softening Prices, Expanding Inventory: Timing Is on Your Side

With inventory rising and average selling times stretching (39 days for condos, 35 for detached homes, 30 for townhomes), pricing is under natural pressure. That’s good news for strategic buyers who can tolerate short-term uncertainty in pursuit of long-term gain.

Buyers with cash flow confidence and a clear purpose now have an edge in negotiating better deals, finding properties that were previously out of reach, and structuring offers that work in their favor.

For First-Time Buyers: The Window Is Open

This moment is especially favourable for first-time buyers who may have previously felt priced out. With less buyer competition and more listings on the market, there’s room to breathe, explore, and make a move that aligns with both budget and lifestyle.

Perspective from the Ground: What You’re Not Seeing in the Headlines

The broader economy may be wrestling with volatility — from global trade to inflation — but within real estate, we’re seeing a recalibration, not a collapse. And it’s precisely these recalibration periods where seasoned investors and savvy first-time buyers find their entry point.

Yes, interest rates and broader economic forces are factors. But so are timing, vision, and values — and those are harder to track in a headline.

Move with Discernment, Not Distraction

This market is not for the impulsive. It’s for those who lead with clarity, seek legacy over hype, and value alignment over noise.

As your trusted local real estate advisor, I’m here to help you move with intention, armed with data, strategy, and integrity.

Whether you're looking to buy your first home, upgrade strategically, or invest in long-term value — this market could be your moment.

📩 Let’s have a confidential, no-pressure conversation about your goals.
Schedule a strategy session today and discover what’s truly possible.

Your Local Real Estate Professional
Trusted. Creative. Community-Focused.
🧭 Integrity | Wisdom | Vision | Purpose

🔍 Recent Bank of Canada Announcement: What You Need to Know

The Bank of Canada (BoC) has maintained its overnight rate at 2.75%, marking the second consecutive pause following a total of 2.25% in rate cuts over the past 10 months.

📊 Key Drivers Behind the Decision

While the decision to hold rates steady was widely anticipated, it reflects a nuanced economic landscape. Inflation remains persistent, particularly due to elevated goods and food prices, which has raised concerns that inflationary pressures may prove more stubborn than expected—even as overall economic momentum continues to ease.

At the same time, the broader economy is showing resilience, avoiding a significant downturn. However, ongoing trade uncertainties—especially those stemming from the U.S.—continue to cast a shadow over growth prospects. For the moment, Canada’s economy remains relatively stable.

📉 Implications for Mortgages and Real Estate

📌 Variable-Rate Mortgage Holders:

• With the BoC holding steady, the prime rate remains at 4.95%.

• There’s no immediate change to variable-rate payments, but the Bank continues to monitor the economic situation closely.

• A rate cut could still be on the horizon in the coming months.

📌 Fixed-Rate Mortgages:

• Fixed mortgage rates have edged lower in anticipation of a potential BoC rate cut before year-end.

• Lenders are adjusting proactively, which may offer a favourable opportunity for borrowers coming up for renewal to lock in a competitive rate.

📉 Real Estate Market Sentiment:

• Buyer activity is currently subdued, though not entirely absent.

• When rates begin to fall, a resurgence in market activity is expected.

• Savvy buyers are moving early, taking advantage of quieter competition ahead of any renewed demand surge.

In May 2025, the Fraser Valley housing market experienced a modest yet encouraging uptick, signaling a potential shift towards a more balanced environment for both buyers and sellers. With inventory levels rising—active listings increased by 6% to 10,626 properties—the market is offering more choices for prospective homeowners. This growth in inventory, coupled with a 7% rise in new listings, suggests a move towards equilibrium, where informed decisions can flourish.

Despite a 22% decline in sales compared to May 2024, the 13% increase from April 2025 indicates a cautious optimism among buyers. The current sales-to-active listings ratio stands at 11%, indicating a buyer's market, yet approaching the balanced threshold. Homes priced appropriately for today's market are finding buyers, reflecting a return to thoughtful, value-driven decisions.

For those considering entering the market, whether buying or selling, this period offers an opportunity to approach real estate decisions with wisdom and discernment. Aligning your choices with your values and long-term goals can lead to outcomes that honor both your financial and personal aspirations.

Sometimes they’re dismissed as simply storage space – where your furnace and water heater are located, along with bins of clothes you’ll never wear again. If this is your mindset, you’re missing out on some great opportunities to use your basement with a fresh perspective. Here are a few ways that you can optimize your basement for a better living experience:

Personal gym
Forget paying for a membership. By investing in a few pieces of quality gym equipment, you can bring your workout home. It’s not always easy to stay motivated, but having easy access to your treadmill at home could be one less excuse to skip your run, especially on those cold days. And with a home gym, you can make exercise time a part of your family’s routine.

Playroom
If you have children, you know how quickly their toys can take over a room. By making the basement (or part of it) a dedicated play area, you can keep the clutter out of sight downstairs while giving the kids plenty of room for imaginative games and activities. Add a fresh coat of paint, a few whimsical decals and the toys of course, and you’ll have a playroom that dreams are made of.

Home theatre
With so many movies available on streaming platforms, trips to the cinema have become rare. But, you can recreate the experience at home with a large screen, projector, and theatre-style armchairs. For those with smaller basements, a quality flatscreen TV and a comfortable couch with lots of pillows can be just as enjoyable for family movie nights or entertaining friends.

Library
For all the book lovers out there, imagine having a special place to read, with all the paperbacks you’ve collected over the years at your fingertips. Whether it’s a few bookshelves and some comfy seating, or custom built-ins that showcase your collection in a creative way – a library is a wonderful addition to any home. Coordinating rugs, throws, and cushions can give this space a luxe yet cozy feel. It’s the perfect place to get lost in a good book!

Home office
Maybe the kitchen table isn’t cutting it. For some, working from home is now part of the regular routine but many still don’t have a dedicated home office. A well-designed workspace with an ergonomic desk and chair can not only increase your productivity and help motivate you to check off your daily to-dos faster, it can reduce the physical stress that your body endures during long stretches of sedentary activity. And the best part is, you don’t have to clear away your work day each time you sit down for a meal.

Basements are a blank canvas; extra square footage to play with and room to try something new. So, however you decide to use this part of your home, choose something you love and make the space your own!

Maple Ridge is evolving, and as it grows, they vouch to  assure that nature remains at the heart of their development plans. The Maple Ridge Moves initiative, with its Bus Rapid Transit (BRT) system, offers a sustainable solution to meet the needs of a growing community while preserving the environment that makes this region so special.

The 22-kilometre BRT corridor will connect 13 stations across Maple Ridge, providing residents with a fast and efficient way to access jobs, education, and essential services. This innovative infrastructure will not only alleviate traffic but also reduce emissions, supporting our efforts to protect the local ecosystem and promote greener living. In a region known for its natural beauty, this is a win-win scenario.

In addition to its environmental benefits, BRT is set to unlock new opportunities for Maple Ridge residents. With improved accessibility, more families will be able to enjoy the advantages of living in our growing community. This increased demand for accessible housing will likely drive up property values, making the area even more desirable for investment.

The Maple Ridge Moves plan represents the future of smart, sustainable development. By prioritizing both the environment and efficient public transportation, they’re setting the stage for a healthier, more prosperous community. As the BRT system moves forward, Maple Ridge will remain a place where nature and progress coexist, offering families the chance to thrive in a connected, eco-friendly environment.

It will be interesting to see how this project plays out. As of January 2025, TransLink announced the locations of the planned Bus Rapid Transit (BRT) stations along the Langley-Haney Place route, which includes Maple Ridge. However, the project is currently unfunded, and no specific completion date has been established. Once funding is secured, the construction phase is estimated to take approximately five years. This could be a good time to think about getting into the Maple Ridge market as a long term investment goal. 

SURREY, BC – Exciting opportunities are emerging for buyers in the Fraser Valley real estate market. For the first time in four months, home sales have experienced a notable uptick as buyers benefit from a broader selection of properties and a softening in prices.

In February, the Fraser Valley Real Estate Board recorded 920 home sales, marking a 13% increase compared to January. However, sales were still 26% lower than those in February 2024. Despite a slight 9% drop in new listings on the Multiple Listing Service® (MLS®), inventory levels remain strong, with 3,121 new homes listed—14% above the 10-year seasonal average. In total, there are 8,070 active listings, which is a significant 45% higher than February 2024 and 55% above the 10-year seasonal average.

The market dynamics indicate a strong position for buyers, with the sales-to-active listings ratio sitting at 11%. A balanced market typically falls between 12% and 20%, suggesting that buyers have an upper hand right now. With inventory accumulating and prices continuing to ease, buyers, especially those looking at single-family detached homes, are experiencing greater leverage.

Why Is This a Great Time for Buyers?

Baldev Gill, CEO of the Fraser Valley Real Estate Board, highlights that this favorable market trend is largely due to the abundance of options and the gradual softening of prices. “Buyers now have more flexibility and time on their side to explore their options—whether it's a family home or an investment property,” Gill says. “If this trend continues, we could see even more opportunities for buyers, especially with the ongoing economic shifts.”

Home buyers will also be pleased to know that properties are selling faster than before. In February, single-family detached homes took an average of 39 days to sell, condos took 36 days, and townhomes sold in an average of 32 days.

Current Market Snapshot:

• Single-Family Detached Homes: The benchmark price is $1,489,100, reflecting a slight increase of 0.5% compared to January 2025 but a modest 0.6% decrease compared to February 2024.

• Townhomes: Priced at $820,600, townhomes saw a small dip of 0.7% compared to January 2025 and a 2.1% decrease compared to last year.

• Apartments/Condos: With a benchmark price of $533,200, condo prices have decreased by 0.3% compared to January 2025 and 2.4% compared to February 2024.

Why Now Is the Time to Act

Whether you’re looking to buy your dream home or make a smart investment, the current market in Fraser Valley offers numerous opportunities. With a variety of properties available and prices still adjusting, now is a prime time to take action.

If you're considering buying or selling in this shifting market, I’m here to guide you through every step of the process. As your dedicated real estate professional, I’ll help you navigate the market with confidence and secure the best deal for your unique needs.

Let's connect and discuss your options today! Reach out to me, and let’s make your real estate goals a reality.

The replacement of polybutylene (often referred to as poly B) piping in homes has indeed become a significant issue in the home insurance and real estate markets in recent years. Polybutylene pipes, which were commonly used in residential plumbing from the 1970s to the 1990s, have been found to deteriorate over time, leading to leaks, water damage, and other costly issues. This has led to increased challenges for homeowners trying to secure home insurance coverage, especially in older homes. Let’s break down the key points regarding this trend and what homeowners can do about it.

1. Be aware of the Risks with Polybutylene Pipes

• Polybutylene pipe failures: Poly B pipes, although initially marketed as a cost-effective and flexible alternative to copper, have been linked to frequent failures due to the chemical breakdown of the material over time. These pipes are prone to becoming brittle, cracking, and bursting, often leading to water damage.

• Insurance carriers' response: Insurers became more aware of the risks associated with polybutylene pipes in the 1990s and began to either exclude coverage for homes with these pipes or impose higher premiums due to the increased risk of water damage. Over the past few years, there has been a growing trend of insurers becoming more stringent, refusing to insure homes with polybutylene piping unless the pipes are replaced.

2. Increased Difficulty in Getting or Maintaining Homeowners Insurance

• Insurance exclusions: In recent years, many homeowners have found it difficult to obtain new homeowners insurance policies if their home contains poly B piping. Some insurers flat-out refuse to cover homes with these pipes, while others may offer coverage at significantly higher rates. The risk of pipe failures, resulting in costly damage claims, is seen as too high.

• Mortgage companies’ involvement: Lenders, particularly in areas where poly B was commonly used, may also require a replacement of polybutylene pipes before they will approve a mortgage, further complicating the situation for buyers and current homeowners looking to refinance or sell.

3. Increased Awareness Among Homebuyers and Real Estate Markets

• Disclosure requirements: Real estate agents and sellers are often required to disclose the presence of polybutylene piping to prospective buyers. This disclosure can make homes with polybutylene plumbing less desirable on the market, reducing their overall value.

• Cost of replacement: The cost of replacing polybutylene pipes can be substantial, often ranging between $5,000 to $15,000 or more, depending on the home’s size and complexity of the plumbing system. This can be a deterrent for potential buyers, even if they are aware of the risk and are willing to replace the pipes themselves.

4. What Homeowners Can Do About It

• Replacement of pipes: The most straightforward way to address the issue is to replace the polybutylene piping. Many homeowners are opting for PEX (cross-linked polyethylene) or copper pipes as replacements due to their durability and resistance to corrosion. Although this may be an expensive upfront cost, it can increase the resale value of the home and make it easier to obtain insurance.

• Insurance policy endorsements: If homeowners cannot afford or do not want to replace the pipes immediately, they may be able to secure insurance coverage with specific endorsements or exclusions related to polybutylene pipes. Some insurers may offer coverage with the condition that the homeowner agrees to sign a waiver or liability release, which reduces the insurer's financial exposure.

• Negotiating with insurers: Homeowners who already have polybutylene pipes in place may be able to negotiate with their current insurers for a more affordable policy. In some cases, homeowners may be able to prove that the pipes have been regularly maintained, reducing the perceived risk.

• Home inspection and insurance company negotiations: Homeowners can often reduce insurance premiums by having a home inspection done, showing that the home is in good condition despite the presence of polybutylene pipes. The inspection report may highlight the efforts made to prevent damage or leaks, which could lead to more favorable terms with insurers.

5. Type of Demands Insurers Are Making

• Replacement requirements: Insurers are increasingly demanding the full replacement of polybutylene pipes before they’ll offer coverage or may offer only limited coverage for water damage or pipe failure.

• Increased premiums and deductibles: If replacement is not an option or hasn’t been completed, insurers may agree to insure the property but at a significantly higher premium. In some cases, they may also increase the deductible for water damage claims, making it more financially burdensome to homeowners.

• Waivers and exclusions: Some insurance providers may offer policies with exclusions related to polybutylene pipes, meaning they would not cover water damage due to pipe failure. Homeowners may be required to sign an agreement acknowledging this exclusion.

• Insurance surcharges: Some insurers might allow coverage for homes with polybutylene piping but will impose an additional surcharge to account for the increased risk. This is typically not an ideal option for homeowners as it adds ongoing costs.

6. The Issue with Polybutylene and Mortgage Lenders

• Mortgage lenders may balk at insuring homes with polybutylene piping: If a home has polybutylene plumbing and the homeowner cannot find affordable insurance that meets the lender's requirements, the mortgage may be jeopardized. The lender may either reject the application outright or ask for the pipes to be replaced, which adds an additional cost for the borrower.

• Verification of insurance at closing: Before finalizing the mortgage, the lender will often require proof of homeowners insurance, typically by asking the buyer to submit an insurance binder (a document proving coverage) from the insurance company. This ensures that the property will be insured once the loan closes.Homeowners with polybutylene piping should start by understanding the risks associated with their plumbing system and the potential insurance challenges they might face. Replacing polybutylene pipes is the best solution, especially for those looking to sell or secure affordable home insurance. In the interim, homeowners may need to negotiate with insurers or consider specialized coverage options, but being proactive in addressing the problem is key. Homeowners can also stay informed about legal developments and settlement opportunities, which might help offset the cost of pipe replacement.

For mortgage lenders, homeowners insurance is a crucial part of the loan process. Without it, the lender’s financial interest in the property is at risk. Homes with polybutylene pipes complicate this by increasing the likelihood of damage due to pipe failure, which in turn makes insurers hesitant to provide coverage or forces them to offer more expensive, limited policies. Homebuyers or current homeowners looking to refinance need to understand how the presence of polybutylene piping can affect their ability to secure both insurance and a mortgage, and the steps they can take to address the issue, whether through pipe replacement or negotiating insurance terms.

In 2024, the Fraser Valley’s housing market faced unique challenges that had many home buyers feeling uncertain. Despite efforts by the Bank of Canada to cut interest rates mid-year, it was not enough to tackle the affordability issues many potential buyers were experiencing. Let’s break it down and see what happened, why, and what the outlook for 2025 might be!

A Closer Look at Sales and Listings 📊

The Fraser Valley Real Estate Board reported a notable increase in new listings, with 35,698 new homes listed in 2024. That’s a 10-year high, coming in 9% above the 10-year average. Sounds promising, right? But here’s the twist: annual home sales dropped to just 14,570, which is the lowest number in a decade! In fact, that’s a 24% decrease compared to the 10-year average.

Where were the sales happening?

• Surrey: 51% of sales

• Langley: 24% of sales

• Abbotsford: 15% of sales

Home Prices: A Small Dip, But Not Enough 💸

While there was some relief on pricing for buyers, the change was modest. The benchmark home price ended the year at $965,000, down 2% compared to 2023. Prices peaked in March 2024, but by December, they had dropped by 4%. Still, for many buyers, affordability remained a concern.

Market Balance: Buyers & Sellers in Limbo ⚖️

Despite the lower prices, sellers were still active in the market. December saw a 46% drop in new listings, and overall inventory decreased by 23%. The sales-to-active listings ratio closed out the year at 16%, signaling a balanced market. This means the supply and demand were in equilibrium – but that doesn’t always mean an easy process for buyers.

Looking Ahead: A Hopeful 2025? 🌟

What does 2025 have in store?

• Interest Rate Cuts: The Bank of Canada’s rate cuts, combined with new government policies aimed at improving affordability, should bring positive momentum to the market.

• Supply & Demand Adjustments: As more homes enter the market and buyers adjust to new conditions, we can expect a steadier market next year.

So, whether you’re buying or selling in 2025, patience and strategy will be key. Let’s navigate this evolving landscape together! If you’re looking for sound advice, reliable market insights, and a helping hand, don’t hesitate to reach out. 😊

The landscape of property flipping in Canada is changing. If you’re considering flipping homes in British Columbia, understanding the new BC Home Flipping Tax, effective January 1, 2025, is crucial. This new tax is designed to ensure that short-term home sales are taxed fairly and equitably. Let’s break it down in simple terms and explore what it means for you.

What Is the BC Home Flipping Tax?

In short, this tax is a provincial measure introduced to target short-term residential property transactions in BC. It applies to properties that are owned for less than 730 days (2 years) before they are sold.

Key Points to Remember:

1. Taxable Properties: This tax applies to residential properties or properties zoned for residential use in BC, including rights to acquire such properties (e.g., presale contracts for condos).

2. When Is the Tax Due: The tax is due 90 days after the sale.

3. When Does It Apply: The BC Home Flipping Tax kicks in if the property is sold before 730 days of ownership.

4. Exemptions: There are exceptions to the tax in certain situations, such as:

   • Death of the owner

   • Marital breakdown

   • Health-related reasons (e.g., serious illness or disability)

   • Employment-driven moves (e.g., work relocation)

   • Financial hardship (e.g., insolvency)

   • Threats to personal safety

   • Property expropriation or substantial damage

Federal vs. Provincial Rules: What’s the Difference?

In addition to the new BC tax, there’s also the Federal Residential Property Flipping Rule. This rule, which applies to property sold in less than 365 days, taxes any profits as business income. So, regardless of your original intention, if you flip a property quickly, you’re taxed as if you were running a business.

Important Federal Points:

• Profit is fully taxable as business income.

• Capital gains rules don’t apply (so no 50% exclusion).

• You can’t claim the principal residence exemption.

Exemptions under federal rules are similar to those of BC: life events like death, divorce, or health-related moves.

How the Tax Calculation Works:

Let’s take an example:

• Property in BC: If John buys a property for $500,000 and sells it for $700,000 within 364 days, his profit is $200,000.

  • BC Flipping Tax: 20% of $200,000 = $40,000

  • Federal Tax: 40% of $200,000 = $80,000

John’s total tax liability in BC would be $120,000, compared to $80,000 if he sold the property in Alberta, where there is no provincial flipping tax.

Key Takeaways:

• The BC Home Flipping Tax is set at 20% for properties sold within 365 days and decreases gradually after that.

• Exemptions exist, but only for life events or specific circumstances.

• If you’re flipping homes frequently, be prepared for a significant tax hit.

• Plan carefully: Understand the rules, exemptions, and how taxes will affect your bottom line before making that quick sale.

Stay ahead of the tax curve! Make informed decisions when flipping properties in BC. If you have any questions about your tax situation, reach out to us for professional advice!