SHORT TERM RENTALS
Inasmuch as most municipalities now have a vacancy rate above 3% the BC government indicated an announcement is coming soon regarding short-term rental rules, specifically tied to exemptions (e.g., Kelowna). That suggests the government is actively reconsidering parts of the policy. Don’t hold your breath, we are not going back to the ‘way we were’.
The current system (since 2024) likely stays:
- Short-term rentals limited to: Principal residence + one suite. Applies across most BC cities
- Mandatory: Business licence, Provincial registry, Platforms must share data and remove illegal listings
If a municipality can prove that its vacancy rates are above 3% and for 2 years (yep!) there will be some sort of relaxation. But we await the details anxiously.
DRIPA
Premier David Eby recently announced a 3-year delay (postponement) on full implementation of parts of DRIPA. What is being postponed?
Why the delay? Too much uncertainty for investors and developers Concerns from: Real estate industry Natural resource sector Municipal governments. Translation: “Deals are stalling because nobody knows how approvals will actually work.”
As ridiculous as it sounds DRIPA actually is trying to become a BC lawaligning provincial policy with UN Indigenous rights standards. The United Nations writes Canada laws? Why ridiculous? It includes concepts like: Shared decision-making – Free, prior, and informed consent.
Major Point: NO one even knows what ‘consent’ means yet’. And free, prior and informed?
This is classic government timing: “We’re not cancelling the rules… we’re just not quite ready to live with them yet.” Last week the Government announced maybe IT WILL not go ahead with THE delay of three years. Shorter period? Cancel delay? Either way it’s the uncertainty that has seen over $100 billion leave the province in the last 7 months … and investors, developers, buyers … remain spooked.
DEEMED DISPOSITION: THE TAX HIT ON RENTALS & COTTAGES
If you own rental properties, cottages, or vacation homes, here’s the reality: You don’t have to sell to trigger tax. Death triggers it automatically! WHAT HAPPENS? At death, the government assumes you sold all non-exempt properties at market value. No actual sale, No cash received, But full tax payable.
This is called deemed disposition. A DASTARDLY UNEXPECTED TAX.
SIMPLE EXAMPLE – WHISTLER OR ONTARIO LAKE COTTAGE
Purchase price: $300,000 – Value at death: $1,200,000
→ Gain: $900,000
→ Taxable portion: $450,000
→ Plus: recaptured depreciation (fully taxable if claimed)
Result: Often the largest tax bill of your life, because if you own it at death, the government DEEMS it sold and heirs have to pay taxes. If they don’t have it hey must sell.
WHAT HEIRS FACE Heirs inherit at the new market value (good)……but first:
• The estate must pay the tax !!!
If there’s no cash:
• Property may have to be sold quickly
• Or heirs must fund the tax
THE COTTAGE PROBLEM
Cottages and vacation homes are especially exposed:
• No principal residence exemption (in most cases)
• Large long-term gains
• No income to cover taxes
Result: Family asset… forced sale
INVESTOR REALITY
If you hold long-term real estate:
• You are building equity
• But also a future tax liability
WHAT SMART OWNERS DO
• Plan liquidity (often life insurance)
• Review ownership structure
• Consider gradual transfers to hirs while alive
• Know your true unrealized gain BOTTOM LINE
“Your biggest tax event isn’t when you sell… it’s when you don’t.”
COMMENTS
Ozzie says:
- Please read comments on Oz Buzz #117 regarding the sending of texts (NOT), the labelling of questions (EMAIL only with DOAL in subject line). Email me (info@ozbuzz.ca). I have Wechat, Whatsapp, text, 3 emails, FB messages, Instagram, Linkedin, Twitter, Realestatetalks.com etc.All of these I may get to or I may not. But I will answer all emails.
- US, THE WORLD, CANADA AND US IN IT, Recession, crash, etc. (Revisit Oz Buzz #117). Investor thoughts, suggestions, ideas, 7 cities in trouble.
- Lots of comments on my anti-gambling stance.
- Lots of general pats on the back for Oz Buzz #117 (best yet, love the details, real stuff.)
- Inflation. Currently we are experiencing massive inflation in everything. Food, gas, gold, silver, commodities, stock markets, restaurants, most regular use items. You name it: Nothing goes up only ‘under 3%’. Nothing! Inflation is visible and here. Well, what about real estate? The average home price in Vancouver has been inflating from $13,500 in 1966 to $2,300,000 in 2025. In our view it directly relates to how much money we are printing (Milton Friedman – money in circulation)…and we are continuing to print. However in 2026, for real estate markets to visibly rise we need to consider inflation with timing, trends and cycles. Uncertainty drives our markets, Government interference at all levels adds and so our timing is : wait and see. Eventually (after a crash?) we will return to rising real estate prices, but not this year.Ozbuzz headline in February of 2022 was: ‘The high is in place’. And it was.“Milton Friedman: Sustained, across-the-board inflation only happens if the money supply expands.”
- Interest rates. Historically the best real estate buying opportunities appear when: headlines are negative, inventory is high, but interest rates start falling. That combination has created three of Canada’s biggest real estate buying cycles (1996, 2009, 2019). Today, the rate call is clouded. Experts are at opposite ends. The pressure on visibly rising inflation will be to increase rates. Trump needing to win the midterm elections will get him to work very hard to get rates down. Who will win? Rates I leave to your call. (My call, Trump.)
APRIL HOT PROPERTIES (See below)
Questions, Questions
Q: You said you would answer questions. I sent one, but you did not give a definite answer. Friend of Ozbuzz.
A: Dear ‘Friend of Ozbuzz’. You wrote a selection of impossible outcomes of a complicated individual situation for me to pick the best from. I did that. Then you sent a follow up asking for ‘more certainty in my answers’. Certainty? I think you did all the work necessary already. We chatted. You understand the problems. No further input from me necessary. What I think is irrelevant. It’s your call. Also, please remember I do not give advice. I voice opinions, all of which are featured in this blog.
Q: I am a subscriber but I do not get the Ozbuzz publication in my inbox. Can you always publish on the same day please?
A: 1. The reason the blog is free, so I am not stuck to a fixed schedule (which I have done from 1993 – 2017). 2. We culled again over 2,300 subscriptions. Our mail program shows that it was sent, received and opened/not opened. If you don’t open it for 3 months we cancel you. We figure we help you. We did that in March (again). If you don’t see it – maybe in spam?
Q: Ozzie, bring back the 5-year comparison. I live by it. I know – extra work, but let me buy you a beer? Or a case of beer?
A: Not because of the offered bribe, but we had several requests for it. This month’s numbers are back to the “way they were”. Next month? No promises.
Q: Loved the 7 cities (that see crashing value) to buy in. More strategies – always welcome.
A: Thanks.
Q: I liked all your three “stink-bid strategies” but in particular the suggestion that you always leave a bid – in sales offices or in sellers home. I have copied the whole piece on your strategies and put said copies to my son, daughter, brother and left a copy in my car.
A: Hmm, interesting. I’m not going to ask why in the car? But thanks. I once was part of a group that offered on 140 units. It was turned down, but we left a bid in writing. 7 months later we got the call!
Q: The best newsletter yet! Actual advice with real life examples of areas and how-tos! Plus actual areas of possibly good deals. How do I get into your Inner Circle.
A: Blush. Glad you see the value. Sorry, no new member openings.
Q: What is your overall prediction on the stock market? Crypto market?
A: I m only interested in stocks/crypto in what a crash might mean to real estate values. I mentioned several times that in my opinion we are in a like ‘.com bubble’ (read Ozbuzz #114, #115, #117). Also a MBS like private capital crunch in CLO’s.
Finally, Buffet (Hathaway) has now 362 billion in cash (yep!). Why?
Crash is likely. Just an opinion! What do you call a crash anyway? Crypto went from $126,000 to $68,000 and now $75,000. That’s a crash. How many of our 25 – 45-year-old real estate buyers lost it all in crypto? No money left to buy a house. We have become a nation of gamblers. There will be a day of reckoning.
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