vicre

LMAO. Must be a coincidence that Ravi’s brother is a builder/small time developer. They will likely benefit from this the most.


Air bnb hosts use the exact scheme, buy furniture/house hold items for home use but claim it as air bnb related expense.


So outside of 2012, this is the slowest October since 2011, crazy. Didn’t feel like 2013 was that busy from what I recall but looks like it had another 100 sales.


Not a good idea to use your real name and elude to potentially participating in a tax evasion scheme on a public internet forum. Unlike being criminally charged, the onus is on you to prove that you are innocent once the CRA sets their crosshairs on you.


Most hhvers probably didn’t experience 2008 in the states, they cannot fathom how a 400k place can go down to 90k. There are differences in the Canadian Market and vacancy rates are much lower in Victoria but I see a real possibility that those units in the Janion going down 50% in value.


Yes that is exactly what I think will happen lol. For example I think airbnb would have seen a significant downturn next summer that would have flushed out alot of the recent buyers anyways. But I guess May 2024 is better than October 2024.


That would be sensible but too late now, government at all levels are looking for extreme measures to appease the public and buy votes. Right now airbnb and landlords with mulitple units are in the crosshairs. You already saw what happened with airbnb


I’d suggest you rethink that, you are implying that the capital gain exemption is to account for inflation on investment properties? I think you need to go back to googling.


Would also take away a primary appeal of acquiring additional investment properties. I would say on a net basis it would likely result in more homes used as primary residence and boost ownership rates.


Yes that is the intent, to force the condos and SFH on the market in short order while still making it attractive for larger scale residential investment to occur. No one complains when someone buys up an 100 unit apartment building as an investment but people are up in arms when someone or persons buys up 100 individual condos as an investment.


Just had a chat with my own insider contacts on bay street. Seems like the capital gains exemption on investment properties is something that is being discussed in Ottawa, 25% on 2nd property and 0% on third or more is one of the proposals. Multi unit (over 4) buildings would be exempt.


Wont’ matter for jobs that are bonus heavy as the bonus could be a big range, for example a posting that says 140k to 160k salary with a max bonus of up to 100% base salary still won’t tell you much.


Funny how this is coming in now just as the labour market is tightening up. The quality of resumes our firm got in the last 2 months is drastically different from a year ago. Anyone else seeing the same thing?


There are other items you can deduct in an airbnb, think furniture, cleaners, household items etc. If one wanted to operate in the grey area they can try and deduct household expenses incurred on their principal residence.


All I can say is that the province had all their ducks in a row prior to announcing this, keep in mind they have an entire ministry full of internal lawyers who’s job is to draft legislation (where eby was previously the minister in charge) supplemented by specialized expertise from the external big law firms.


There are no big developers in Victoria outside of maybe the Jawls and their specialty is office which is why they teamed up with Concert to do Capital Park. No one local is capable of doing a 1000+ unit project.


I wouldn’t get too cocky on this part, once government decides it needs more tax revenues then things can shift in a hurry. I rather get my paper work proper and ready than count on some lazy union worker not giving a crap about their job.


meh, that was always a risk if they bought it in June 2022. I am very curious to see how the new dockside condos do, people who pre-purchased there were not contemplating current rates at closing. If Marko is $700 a month cashflow negative without paying principal then some of the others will be in much worse shape.


Buying houses as an investment is no different than buying any other investment on leverage, you are exposed to both regulatory risk and general economic conditions. Just let the cycle play out, I said in 2022 that rate duration is key and we are just getting past the one year mark now and things appear to be breaking only now, so just let it ride and see what happens.


I didn’t realize the Janion used to be a hotel, I suppose a case could be made to still allow short term rentals in there….. Maybe anything less than 400 sqft or something.


Which is precisely why you need to use a comparative approach as I had detailed. The changes in inventory, interest rates and any other macro factors would be normalized when your are comparing the delta of the change in value in an airbnb building versus a none airbnb building pre and post legislation.


There are purpose built extended stay hotels for this very purpose, see Chateau Victoria downtown or the Residence Inn brand under Marriot for example. The idea of having an apartment like experience for extended travel stays is not something airbnb invented..


So basically you found a place to stuff as many people as you can in there because it was cheaper. Exact reason why airbnbs are popular as they aren’t really able to enforce how many people are using the unit unlike a hotel.


Good write up Ira, here are my thoughts:
1) Product differentiation in condos (location, amenities) drives a significant differences in value so comparing between buildings is almost impossible. You already mentioned that in the Aria versus the Falls as the Aria carries the “Humboldt Valley” premium (which has diminished now for part of the building due to the Telus tower). Same goes to what floor the condo is on but that should be normalized as you are doing the price/sqf over a year so the product mix of the sales should be similar between two similar buildings.
So really the only way to isolate the impact of the legislation is to compare prices in the same building pre and post announcement, how did the value in the Falls perform versus the Aria? Measuring this way will also eliminate any impacts from interest rates and general market conditions.
2) The people in the airbnb units who will sell at lower prices resulting in lower comps likely won’t be the people forced to sell. They will be the early investors who just want to cash out at a reduced profit. Think of the $250k 1bdrm pre sale buyers in the Union, after 5+ years of getting airbnb cashflow, selling for $400k now doesn’t seem like a bad idea. Unlikely someone who paid $600k last year will sell at a steep loss, they will likely try to list at $599k or something while trying their best to manage the mortgage inevitably chasing the market down in the process.


Nobody cares frank, you can see that via the lack of engagement on your posts. I only respond because while find your b.s. annoying but at the same time it is amusing to clap back because it’s so easy.


801 – 834 Johnson St (834, never had AirBnB zoning) sold June 6th, 2023 for $476,500. 542 sq/ft with parking @ $879 per foot.
Come on marko, you know you can’t compare an 8th floor condo vs a 3rd floor condo on a pure $/sqft basis. A true analysis would be to see the sales price change pre and post airbnb announcement on similar units in the same building.


I don’t know, Juliet, ERA and Falls are fairly well known Airbnb buildings, they just happen to also have a substantial amount owner/occupiers as well. I guess it will be interesting to see the transaction values pre and post announcement.
I said he had 6 months to unload. I don’t know what clip you are watching but the man specifically said people/companies buying up multiple homes to airnbnb and leaving them empty for part of the year is the problem they want to address. The man also clarified that they are not incentivizing bringing airbnb’s back to the LTR but instead they will be taking action to do so in the fall. Not sure how much more clear it can get.


Do you think the average airbnb “investor” would be able to grasp that concept? The sob story in the media is a perfect representation, someone with the advertised skillset of:
“With my business background I specialize in helping business owners and investors determine the feasibility of a purchase or a sale and can help with forecasting and scenario planning.”
“our resident business guru, with a background in finance and marketing, and solid experience analyzing income statements and creating profitability projections.”
Proceeds to buy an airbnb last year in a rising rate environment and did not unload when Ravi literally said in April of this year that they will be cracking down in the fall. Not to mention spending capital to decorate the place like “Friends”, lol I would love to see the ROI analysis on that investment.. But somehow very quickly calculated that he’s unit is worth 150k less…. just full of b.s.






As usual another absolutely clueless take. True or false, more bylaw officers are able to better enforce and give out more parking tickets, more CRA agents would be able to audit and assess more tax returns and increase therefore increase collections? As long as the marginal cost is less than the marginal collections it’s accretive, and in this case its measured both in dollars and supply.
Stick to immigration frank or maybe go offer 100k above asking for a unit in the janion.


That is what I said before. The likely scenario is that she is living in a rent controlled apartment in James Bay and doing an arbitrage with airbnb plus collecting her DB pension if she is actually retired now.


Why May 2024? the timeline should be appropriate for the amount of work involved. The airbnb legislation gave owners ~6 months to decide whether to sell or rent long term. So if the choice was to bring it up to code then I think the appropriate time would be like at least 1 year or more. You can’t please everyone with any choice you make.


Sure, if you don’t mind packing up your personal belongings and have a stranger move in for couple months. I am sure it’s not everyone’s cup of tea but if you don’t mind that part then its a great set up. I am guessing basement suits in cook street village, fairfield, james bay and fernwood would also benefit from this as they are the only alternatives compared to a hotel now.