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NEW COVID-19 PROVINCIAL ANNOUNCEMENT: Landlords & Renters

The BC Provincial Government has announced financial and overall security measures for both Tenants and Landlords during the Covid-19 emergency. See link below to full release and full measures but part of the package includes:

“a new rental supplement will help households by offering up to $500 a month towards their rent, building on federal and provincial financial supports already announced for British Columbians facing financial hardship.

“With lost jobs and lost wages due to COVID-19, many tenants are worried they can’t make the rent. It’s a challenging time for landlords too,” said Premier John Horgan. “Nobody should lose their home as a result of COVID-19. Our plan will give much-needed financial relief to renters and landlords. It will also provide more security for renters, who will be able to stay in their homes without fear of eviction or increasing rents during this emergency.”

The funds will support renters experiencing a loss of income by helping them pay their rent and will be paid directly to landlords on their behalf, to ensure landlords continue to receive rental income during the pandemic. Benefiting people with low to moderate incomes, this supplement will be available to renters who are facing financial hardship as a result of the COVID-19 crisis, but do not qualify for existing rental assistance programs”.

See link: https://news.gov.bc.ca/releases/2020MAH0048-000561

New Mortgage Stress Test Rule Announced

Ottawa announces changes to the stress test mortgage rules which they claim will make it easier for buyers to qualify based the adjustment from a static rate to one that is now more fluid.   The new bar will be based on the weekly median five-year fixed insured mortgage rate + 2%.  Have a read via below 2 links.  Maybe this is the break many buyers have been waiting for…maybe not.  


https://www.cbc.ca/news/business/mortgage-stress-test-1.5467330


https://www.canada.ca/en/department-finance/news/2020/02/minister-morneau-announces-new-benchmark-rate-for-qualifying-insured-mortgages.html

Do you invest for cash flow or speculative capital appreciation?

Interesting breakdown of real estate investor’s position.  Are you an investor? Do you focus on cash flow? Are you in the black or…  Are you thinking about investing in real estate but not sure if what where how? Give us a call, we are happy to discuss how to navigate real estate investing here in Victoria and beyond. 


Canadian Real Estate Investors Are Losing Money, Pose Risk To System: Veritas
MONTREAL ― A Toronto-based investment research firm has pinpointed what it sees as the key risk to Canada’s housing market: Money-losing investor-owners.In an informal poll of its clientele earlier this month, Veritas found that only half of those who own real estate as an investment are cash-flowpositive, earning more money than the property costs them.About 18 per cent are breaking even, while 33 per cent said they are losing money on their investments. Presumably, they are counting on rising …

Read in HuffPost Canada: https://apple.news/Air1AVD91TsSyGdBbujomDg

Toronto vs Vancouver Condo Price Swings

Well Vancouver did have more room for correction but being a west coaster it does surprise me when Toronto take a run over Vancouver real estate but alas that is what the numbers are showing.
And Victoria…where does that leave our our condo market here in paradise..?  Stay tuned.
Toronto condo prices rocket up — while Vancouver prices fall
The median price per square foot of condos in the GTA rose to $743 over the past year, a jump of 9.1 per cent a new report found.