TRICK OR TREAT?
On a dark and stormy night, what is today’s real estate investor to do?
Treats first?!? Of course! This week’s treat is a drop in interest rates from the Bank of Canada. https://www.bankofcanada.ca/2024/10/fad-press-release-2024-10-23/. Last week’s treat was a drop in inflation, https://www150.statcan.gc.ca/n1/daily-quotidien/241015/dq241015a-eng.htm. Apparently, the treat bowl is full of real estate influencers.
Or is it? Politics can be a big influencer. BC Politics? Anyone’s guess in an election that has yet to be decided. I wonder how long that government can last, before everyone goes back to the polls again? How about American politics? Those folks go to the polls in about 10 days. Like it or lump it, the outcome may have protectionist implications for little ol’ Canada. Nationally, we’re all still processing yesterday’s announcement to limit immigration numbers, https://www.canada.ca/en/immigration-refugees-citizenship/news/2024/10/government-of-canada-reduces-immigration.html. Is this a trick or a treat? What are the implications for student rentals, or small businesses, or affordability? As for home grown politics in Alberta, some communities will receive a critically important treat with the new Local Growth and Sustainability Grant, https://www150.statcan.gc.ca/n1/daily-quotidien/241015/dq241015a-eng.htm. There are many smaller towns that urgently need water/sewer and infrastructure upgrades. We’ll have fire hydrants on our Christmas wish list! IYKYK, right Bragg Creek?
The undeniable trick of the week? Probably the new case law coming out of CRA, demanding GST/HST when a short-term rental is sold. Sadly, not kidding. There are better articles in various news feeds, but this is easily shareable: https://www.pallettvalo.com/articles/tax-court-of-canada-holds-that-the-sale-of-an-airbnb-rental-property-is-subject-to-gst-hst.
On this Hallowe’en weekend, it might be hard to spot the difference between the witches and the good fairies, the zombies and the devils. In spite of the appeal of a great costume (sales pitch), investors are wise to pause, investigate, and “paper their deals” carefully. Ironically, one of our favourite voices of wisdom is retiring on October 31, 2024. Barry McGuire is to the real estate investing world, as Dumbledore was to Hogwarts. Who will pick up the “Tales from the Trenches” torch and carry it forward? Learning opportunities still exist with their digital education, https://barrymcguire.ca/shop/. We wish Barry and Donna wonderful, treat-filled adventures in their next chapter!
Real estate investors have been adapting to perpetually changing fundamentals and influencers for many months now. In some parts of the country, the dark and stormy nights aren’t over yet. And like Halloween, all that stimulation can be a bit overwhelming! Gone are the days of the “Great Pumpkin Charlie Brown.” But as the sun comes up, on the morning after the chaos of Halloween, strategic investors are still paying close attention: finding the opportunities in the early morning.
Be safe and be well my ghoulish friends.
