IS YOUR HEAD SPINNING YET?
Have you noticed how often the “rules of engagement” are changing lately? Yes, everyone is running to catch up!
Once upon a time … real estate investors just had to fill out a T776 form for each of their properties. Then came the underused housing tax return, with a little dose of doom and gloom and panic … until extra time was added for filing: https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax/who-file-pay.html. Then came the new T3 Trust filing, with massive confusion, until March 28 (3 days before the deadline?!) https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2024/bare-trusts-exempt-from-trust-reporting-requirements-2023.html?rss.
Once upon a time … real estate investors could provide vacation rentals across the country. Then somehow AirBnb-type properties became the scapegoat for the lack of affordable housing. Laws changed dramatically in BC, insurance rules changed, banking rules changed, …. An entire business plan was forced to change with evolving government and institutional policies. Capitalism took a heavy hit from its opponent “political agenda.” Just my opinion, of course.
Once upon a time … real estate investors worked with bankers and mortgage brokers. That hasn’t changed, but some months it feels like the rules are changing daily! This week the Competition Bureau suggested allowing Canadians to move their mortgages to a different bank without re-qualifying with the stress test. Denied by OSFI: https://www.canadianmortgagetrends.com/2024/03/osfi-rejects-competition-bureau-recommendation-to-drop-mortgage-stress-test-for-lender-switches/. Also this week, there are suggestions about new portfolio testing in comparison to income – this is allegedly intended to apply to an institution’s portfolio, but … https://betterdwelling.com/canadian-bank-regulator-to-limit-mortgage-leverage-ahead-of-rate-cuts/. Time will tell how it all plays out … until the next change.
I’m afraid to mention that very soon there will be new Building Codes, many designed to move us toward Net Zero by 2035. Oh yes, and a brand new Renovation Code—the implications of which are not fully clear yet, especially for multi-family buildings. On the positive side, Calgary might be getting closer to passing their new zoning regulations? There might be a looong line up of people waiting for building and development permits this winter if that happens!
The next significant change for consumers and real estate investors alike might be the way property purchases and sales are conducted. A court case and judgement from the USA is predicted to have significant impacts on Canadian practices and rules for real estate agents, https://www.cbc.ca/news/business/canada-realtor-fees-real-estate-armstrong-1.7157501.
New building codes, new products, new financing rules, new tax rules, new business plans …. Phew! Keep that head on a swivel!
Then take a breath.
Is your WHY still worth it? Is pursuing your financial freedom still a valid goal? Ok then, let’s figure it out and keep moving forward, or temporarily sideways if that becomes necessary. We love our team of professionals who keep us informed and help us adapt, adapt, and adapt some more.
