Gord Steeves Archives - Winnipeg Real Estate Blog

Short Term Rental Accommodations, Winnipeg

March 8, 2023 By Winnipeg Real Estate Leave a Comment

Looking for an open concept living room, kitchen. For more information click on photo or call Michael Leclerc (204)792-6453.

Short Term Rental (STR) Accommodations

Housing attracts some of the most agile and intelligent entrepreneurs in our community. The Short-Term Rental market is an interesting amalgamation of the internet and housing entrepreneurial community over the last decade. The government is now becoming more involved.

The City of Winnipeg is taking steps to regulate the Short-Term Rental market. Short Term Rentals are, primarily, internet-based housing units which are private homes, but rented by people on a short term, much like they would a hotel, (Airbnb etc.). The process is now almost complete and the City of Winnipeg has passed a report at council and directed its administration to draft a by-law within 6 months containing the following rule components for these short-term rentals: Any rental under 30 days is considered short term, the 5% civic accommodation tax will apply, all units must be licensed as a STR by the city, any individual(s) can rent out their primary residence as an STR, if they already own them as an individual or if owned by a Winnipeg based corporation, you can rent out 3 non-primary residence properties, but only in certain parts of the city, but you cannot transfer them ever to anyone else, once you do, the grandfathering is lost. If you are renting out your house, there is no limit on amount of days you can rent out if you are in the house, but only for 150 nights per year if you are not. Only 2 adults per bedroom (no limit on kids), it appears owners may be subject to a criminal record review, it also appears that internet platforms that collect monies for people online who rent out their place, must also be registered. There are other parts that are also contained in the report but those are the main ones. Seemed like council was a bit divided on the issue with parts of the community wanting to level the taxation levels with existing hotels and others liking the idea of less regulation and more available units. Will be interesting to see how our clients adapt.

Complimentary Legal Advice at AVS Law LLP Please click AVS logo below

**as always, every situation is different and laws can change if you have doubts, call us

GORD STEEVES
B.A., LL.B.
Barrister, Solicitor and Notary Public
200‑600 St. Anne’s Road
WINNIPEG, MB., R2M 2S2
Direct Tel: 431.478.1280
Tel: 204.254.3511
Fax: 204.257.5139
Email: gord@avdkslaw.ca
Web: www.avslaw.ca

Principal Residence what you need to know.

February 22, 2023 By Winnipeg Real Estate Leave a Comment

Looking for a luxury spa like bathroom.

For more information click on photo or call Michael Leclerc (204)792-6453.

Definition of “Principal Residence”

The changes to the principal residence exemption for capital gains on sales of homes in Canada. While still exempt from capital gains tax, principal residence will be assessed the tax if the occupants lived there less than a year. The discussion has given rise to a legal discussion on what exactly constitutes a “principal residence” for a person? The importance of a seller being able to define a house for sale as their “principal residence” is that if it is, then they can avoid the capital gains tax on the profit achieved on sale when they file their income tax return. If the client is wrong (according to CRA) with their assumption that the property is their principal residence, it could be expensive for them. Clients (and us) should be aware that if CRA characterizes the sale of the house as “an adventure in the nature of trade”, they do not consider this a principal residence and then they will classify the sale profits as business income to the seller. If there is a disagreement on whether a sale is a capital gain between a taxpayer and the CRA, and it cannot be resolved then it can go to the relevant courts for a decision. When deciding if a property is in fact a person’s principal residence, they look at things like the nature of the property (historically a rental?). How long did the person own and live there? Was the taxpayer involved in house transactions on a frequent basis up to that point? how much work was put into the property? And the circumstances that dictated the reason for sale of the property. Effectively the court wants to see a true intent to make the house a person’s main home, the place they truly lived in and kept as such. You could imagine how, when a person is challenged on this it could be complicated for them.

Complimentary Legal Advice at AVS Law LLP Please click AVS logo below

**as always, every situation is different and laws can change if you have doubts, call us

Common concerns when buying a condominium in Winnipeg

December 31, 2022 By Winnipeg Real Estate Leave a Comment

Looking for an 3 piece bathroom in your basement.

For more information click on photo or call Michael Leclerc (204)792-6453.

What are client’s common concerns when buying a condominium in Winnipeg.

From time to time, we are asked to review condominium documentation with clients during their one week cooling off period. Usually, they have an idea already that they quite like the condominium they are buying, and they have had the benefit of a realtor to look at the documents with them, which really helps. We may have similar experience with the client that you do in this area but when we discuss it with buyers, and while the questions are varied, they often can be broken down perhaps into a few common themes.

First people are always very interested in the common elements’ expenses and the reserve contribution they pay each month. Usually, this amount is in the range of around $300.00 to $500.00 per month, but of course there can be variations on this depending on what the history of the building is. Older buildings can be more expensive in terms of upkeep, but not always.

People always want to ensure they have a good understanding of parking, smoking, pets and whether there are any big projects (perhaps as “special assessments”) coming along in the reserve fund that are of interest. Of course, an upcoming big project might have a cost, but it also enhances the value of the building, and it is preferable to having something being put off.

Lately the idea of renting condominiums out to a tenant is of interest, sometimes short-term rentals on apps or websites need to be investigated. There is generally a cost for renting places out and some condominiums prohibit certain types of rentals while allowing others. Fortunately, the way the documents are structured, the information can be picked out very quickly and clearly.

Complementary Legal Advice at AVS Law LLP Please click AVS logo below

**as always, every situation is different and laws can change if you have doubts, call us

Winnipeg home ownership exemption on the capital gains tax.

December 28, 2022 By Winnipeg Real Estate Leave a Comment

Looking for a Kitchen with Stainless Steel Appliances.

For more information click on photo or call Michael Leclerc (204)792-6453.

One of the more attractive things about home ownership has been the exemption on the capital gains tax by virtue of home ownership. It is likely an important part of people’s financial future and retirement. The application of the tax to principal residences is changing.

Changes to Principal residence exemption

This is a tax that attaches to the “profit” or increase in value that is gained when a house is sold compared with the original cost of the house minus costs etc. To oversimplify things a bit if a house was bought for $100,000.00 then sold for $150,000.00 later, then the “capital gain” is $50,000.00 (minus input costs).

Normally a portion of this gain is added to the seller’s income and then taxed accordingly. There is, however, an exception to this rule: if the house sold is the person’s principal residence, then there is no capital gains tax applied. This is a good thing for all our clients as I would say most houses sold are in fact principal residences and thus not taxable as a capital gain. This principal residence exception component is evolving a bit though. The federal government is implementing new legislation beginning January 1, 2023.

The new rule effectively says that if you have lived in a house for less than a year, even if it was your principal residence, it still will be subject to capital gains taxes. The federal government passed this legislation with the premise that this new initiative is to combat house “flippers” or people who purchase a home, live in it for a short period of time while renovating it, and then sell the property. The government stated concern is that the practice of flipping is putting unwanted pressure on the housing market.

This has been a debated idea in politics but regardless, beginning in 2023, if you buy and then sell your principal residence within the same 365 days, then any gain realized is 100% taxable as income (on a net of cost basis). There are some exceptions outlined in this new legislation: if the sale was needed for reasons involving death, disability, separation and/or work relocation then it may not apply.

Capital gains taxation in the housing market has long been a point of political discussion in the last years, with rumours that ultimately this tax could be even more universally applied than it is currently. This may be a step in that direction.

Complementary Legal Advice at AVS Law LLP Please click AVS logo below

**as always, every situation is different and laws can change if you have doubts, call us

Last Quarter 2022

November 23, 2022 By Winnipeg Real Estate Leave a Comment

looking for a home office

For more information click on photo or to arrange a private viewing call Michael Leclerc 2047926453

Last quarter of 2022 already,

As we evolve back towards a market that is a bit more normal than what we have seen over the last couple years, there can be a bit of risk if things do not go smoothly.

Default on Purchase

There have been some notable anecdotes coming from back east in the housing market. These stories are new because it has been a while since we have seen a market where prices are decompressing. I am not sure it is as pronounced an issue here at home but in some eastern markets there have been some graphic decreases in housing prices over the last couple months. I am not sure how or if that will ever affect us, but I did want to give a bit of a refresher on purchaser default on a purchase. The concern is that there might be a sense that if a purchaser defaults on a purchase of a home, the full extent of liability to them is simply the deposit they put down. This is not accurate. It is understandable as to why some clients might be under that impression because in the past several years, if for any reason, a purchaser defaulted on a signed purchase contract, the vendors could simply re-list the property and very likely achieve a better sale price then they had from the defaulting purchaser, in fact it seemed that even after a contract was signed, sometimes vendors were actively looking, hoping, and even offering, to let purchasers out of contracts because the sale they signed 3 months ago, looked like a bargain once possession day arrived. This reality has really changed in the market and there are stories of purchasers signing contracts of purchase and then come possession date the value of the home has fallen, sometimes quite a bit. I suppose, depending on the timing, this could cause some lenders some pause for their purchasing clients and that could put a purchase in peril as well. Regardless of the reason, remember always that a purchaser who defaults in not just responsible for the deposit but potentially for any shortfall on default if the vendor then sells at a lower price than their original contract with the first purchaser. The gaps in some of the Ontario markets over even a short period from contract signing to possession can be large and can lead to a huge issue for the purchaser. I guess we have the benefit of a less turbulent market and maybe the stakes, price wise, are lower, but I suppose the reality may be that a house purchased today might not be worth quite as much come possession in a few months. It’s ok, the market may come right back, and if everyone can deal with the short term and is informed, it can be managed.

Information Courtesy of Gord Steeves

**as always, every situation is different and laws can change if you have doubts, call us

It pays to know the average price of homes for sale in your neighbourhood, as well as that of homes that have sold, including both over-list and under-list sales. We track all Winnipeg neighbourhoods daily, which allows us to more accurately set list prices on the homes we sell, while also making intelligent offers.

If you would like a Free Home Value Appraisal in River Heights, Tuxedo, Fort Garry, Linden Ridge, St. Norbert, Bridgewater Forest, Headingley, St. Boniface, St. Vital, River Park South, Windsor Park, Southdale, Island Lakes, Royalwood, Sage Creek, East Kildonan, North Kildonan, Eaglemere, Sun Valley, Kildonan Meadows, Transcona, Birds Hill, East St. Paul, West Kildonan, Riverbend, Garden City, Deer Lodge, St. James, Grace Hospital, Optimist Park, West. St. Paul, and East St. Paul. please Contact Us or Call (204) 792-6453.

Track the Winnipeg Real Estate Market!! Free Automated Email Service allows you to track the MLS market in real time. Follow the values in any neighborhood in Winnipeg. Find out what your neighbor’s house down the street sold for. Follow Winnipeg MLS listings in real time. Visit Winnipeg Market Tracker!

This information is courtesy of:

The Michael Leclerc Home Selling Team
Royal LePage Top Producers
Winnipeg MB
Phone: (204) 792-6453

November 2024
M	T	W	T	F	S	S
« May
				1	2	3
4	5	6	7	8	9	10
11	12	13	14	15	16	17
18	19	20	21	22	23	24
25	26	27	28	29	30