If you're looking to purchase real estate in Metro Vancouver, you may find yourself deciding between a leasehold or a freehold property. Both options come with their own set of pros and cons, but it’s crucial to understand what each term means and how it affects your investment and future plans.

What’s the Difference?

A leasehold is an agreement where you own the property (like a home or condo) for a fixed period, typically between 20 and 99 years, but not the land beneath it. Essentially, you’re leasing the land from its owner, which can be a university, government, private entity, or Indigenous group. Once the lease expires, ownership of the land reverts back to the landlord. For example, if you buy a property on a 99-year lease with 50 years remaining, you only get the remaining 50 years.

Leasehold properties are generally less expensive than freeholds because they don’t include land ownership, which is a big part of the property’s value. However, the tradeoff is that leasehold properties don’t appreciate as much over time, and as the lease shortens, the value of the property can decrease, making it harder to resell.

On the other hand, a freehold means you own both the property and the land it's on, with no time limit on your ownership. Freehold properties are more expensive but are usually a safer long-term investment, as they appreciate more consistently and you aren’t at risk of lease expiration or renegotiation.

The Uncertainty of Leaseholds

A big downside of leasehold properties is the uncertainty that comes with a lease nearing its end. The landowner isn’t required to renew the lease, and if they do, it could come at a much higher cost. As the lease gets closer to its expiration date, buyers may find the property’s value decreasing, which can make it harder to secure financing or find a buyer when it’s time to sell.

Also, keep in mind that leaseholds are not governed by the Residential Tenancy Act (RTA), which covers rental properties in BC. Instead, they’re governed by specific lease agreements, so your rights and responsibilities differ from those of a typical tenant.

Which is Right for You?

While leaseholds can be more affordable upfront, they come with potential risks, especially as the lease runs down. Freeholds, though pricier, offer more stability and long-term value. If you’re looking for a home to stay in for the long haul, a freehold might be your better bet.

In Metro Vancouver, you’ll find leasehold properties around areas like SFU and UBC campuses or on First Nations land. These can be great options for some, but it’s crucial to understand the terms of your lease, how much time is left, and what your rights are as a leaseholder before making a decision.

In the end, whether you go for a leasehold or freehold depends on your priorities—affordability and short-term flexibility versus long-term security and ownership. Just make sure you know what you’re getting into.

Some details provided by- https://dailyhive.com/vancouver/leasehold-freehold-metro-vancouver?utm_campaign=Newswire_Real%20Estate%20Insider&utm_medium=email&_hsenc=p2ANqtz-_zKaaPpv-_nlgTbmRfYdQ60Iqdx8qQdI869OG7bU4TkRnIDqCOBbV4U4MBpGorNyYWJp_J44G7ktR70Nmuf0_fqn4wsQ&_hsmi=344322975&utm_content=344322975&utm_source=hs_email

When buying a home, most people focus on the property’s physical condition and location. But sometimes, what has happened in or near the home can have a lasting impact on its marketability—regardless of how perfect the house seems otherwise. These properties are known as "stigmatized" properties, and their value can be significantly affected by non-physical events tied to their history.

What Makes a Property Stigmatized?

A stigmatized property is one that has been impacted by an event that affects how buyers perceive it, even though the property itself is in good condition. These events don’t usually affect the property’s structure or use, but they can make it less desirable.

Examples include:

• Criminal activity: A home next to a reputed gang member’s house.

• Violence or death: A murder, suicide, or other violent crime associated with the property.

• Unusual occurrences: The property being rumored to be haunted or previously used for illegal activities.

Although these events don’t change the property’s physical condition, they can deeply affect how buyers feel about living there.

Why Do Stigmatized Properties Lose Value?

The stigma surrounding certain events or circumstances can have a powerful psychological effect on potential buyers. Even if a property is in excellent shape, buyers might not want to live in a home with a violent or unsettling history, particularly if the event was widely publicized. For some, a tragic past might be a dealbreaker, while others might be more open-minded—or even intrigued by the property’s story.

The perception of stigma varies from buyer to buyer. For example, a house with a history of ghost sightings might scare some away, while others may find the supernatural element a unique charm that adds character to the property.

The Subjectivity of Stigmatization

What one buyer finds off-putting, another might see as a selling point. For example, some buyers may be perfectly fine with the fact that a murder occurred in the house, while others might consider it a dealbreaker. This subjectivity makes it challenging to determine whether a property is stigmatized and how it will affect the market value.

This unpredictability also makes it hard to decide whether sellers should disclose these events. After all, revealing the property’s history could lower its value, but keeping it a secret may lead to legal trouble later on.

Legal Considerations

In places like British Columbia (BC) and Ontario, there’s no specific law requiring sellers to disclose stigmatizing events. However, in some areas like the U.S. and Quebec, there are disclosure requirements.

While these laws vary, they highlight the importance of understanding how psychological factors can impact a property’s sale. Even if there’s no legal requirement, sellers should consider how a property’s past might influence potential buyers' decisions.

Conclusion

Stigmatized properties are a reminder that, in real estate, perception can be just as important as physical condition. While the house may be in top shape, its history—whether tied to crime, death, or rumors—can make a significant impact on its value and desirability. Whether you’re buying or selling, understanding the emotional and psychological factors at play is key. After all, what’s considered a "haunted" house to one person might be the dream home for someone else.

Details courtesy of - https://bcrealestatelawyers.com/knowledge-centre/legal-issues-faqs/stigmatized-properties/

The B.C. Real Estate Association (BCREA) reports that the province’s housing market ended 2024 on a strong note, setting a positive outlook for 2025. The latest data shows a significant 24.7% increase in residential unit sales in December compared to the same month in 2023, with 4,484 homes sold. At the same time, the average price of a home in B.C. rose to nearly $1.1 million, marking a 5.6% year-over-year increase. This uptick in both sales and prices indicates a market that’s gaining momentum as it moves into the new year.

Brendon Ogmundson, BCREA's chief economist, highlights that active listings have increased by almost 17%, which is the highest start-of-year inventory level in B.C. since 2019. This increase in listings means that buyers now have more choices available to them, helping to balance supply and demand. "There are enough listings in the market right now to absorb that extra demand without prices rising too much," Ogmundson told CBC News. This stable inventory, combined with a steady demand, sets the stage for a more balanced housing market in 2025. The Canadian Real Estate Association (CREA) also predicts a solid year ahead, with home sales in B.C. expected to see an 8.6% increase, largely driven by a recovery in the province’s housing inventory.

Despite the positive outlook, affordability remains a challenge for many in B.C. Even as interest rates have begun to decrease, they’re still coming off a high base, which means home prices have not fully adjusted to the earlier rate hikes. University of British Columbia business professor Thomas Davidoff points out that while falling interest rates are a welcome relief for buyers, the overall affordability crisis persists. As the market stabilizes and demand continues to grow, B.C.'s housing affordability will continue to be a key issue to watch in the year ahead.

Though the housing market is entering a period of relative stability, there are still external factors that could disrupt this equilibrium. Ogmundson has expressed concerns about potential tariffs or other trade-related issues from south of the border, which could impact B.C.'s housing market by raising construction costs and affecting supply chains. For now, however, the market remains in a relatively balanced state, providing some relief for buyers, though challenges remain in the form of high prices and the ongoing affordability crisis.

Details courtesy of - https://www.cbc.ca/news/canada/british-columbia/b-c-housing-market-forecast-2025-1.7435419

When you purchase or gain an interest in property that is registered at the Land Title Office, you or your legal professional must file a property transfer tax return and pay the applicable property transfer tax, unless you qualify for an exemption. The property transfer tax is based on the fair market value of the property (land and improvements) at the time it was registered. The tax is calculated using a tiered rate: 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, and 3% on amounts above $2,000,000. However, if you are a foreign national, foreign corporation, or taxable trustee, an additional property transfer tax applies on the residential portion of the property if it is located in a specified area of B.C. The first-time home buyers' program may reduce or eliminate the amount of property transfer tax you owe when purchasing your first home. To qualify for an exemption, you must be a Canadian citizen or permanent resident and meet one of the following criteria: have lived in B.C. for at least a year immediately before the registration date, or have filed at least two income tax returns as a B.C. resident in the last six taxation years before the registration. Additionally, you must have never owned a registered interest in a property that was your principal residence anywhere in the world and have never received a first-time home buyers' exemption or refund. The property itself must be used exclusively as your principal residence, have a fair market value of $835,000 or less (effective April 1, 2024), be 0.5 hectares (1.24 acres) or smaller, and contain only residential improvements. If one or more purchasers do not qualify, only the percentage of interest owned by the qualifying first-time home buyer(s) is eligible for the exemption. For example, if you acquired 60% interest in the property and another person acquired 40% interest, but only you meet the qualifications, only your 60% would be exempt. It’s also important to note that property transfer tax is distinct from annual property taxes, which are paid to your municipal or rural tax office to fund local services. The fair market value refers to the price a willing buyer would pay a willing seller for the property in the open market on the registration date. The government provides an online calculator to help estimate your property transfer tax, which should be factored into your closing costs.

Details provided by - https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/first-time-home-buyers + https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax

So you got your BC Assessment in the mail last week and you don't like the number you see. Do you have any options as the homeowner, what can you do?  Well before filing a complaint or appeal regarding your property assessment, it's recommended that you first review your assessment and compare it with the sales data of similar properties using the Assessment Search tool. (Or contact CJ or Garry and we can help pull sales data for you.) This will help ensure that your assessment is accurate. If you still have concerns, You are encouraged to contact BC Assessment for clarification before formally submitting a Notice of Complaint (Appeal). The deadline for filing a complaint or appeal for the 2025 assessment is January 31, 2025.

Many concerns can often be addressed through direct discussions with the staff, outside of the formal complaint process. If, after contacting BC Assessment, you remain unsatisfied, you have the option to proceed with the formal appeal process for an independent review of your assessment. You can reach them by phone at 1-866-VALUEBC or use the Contact Us form for electronic assistance. If you prefer in-person service, you can schedule an appointment by contacting the same number. The first level of appeal is to the Property Assessment Review Panel (PARP), with a filing deadline of January 31, 2025. If you wish to pursue the matter further, the second level of appeal is to the Property Assessment Appeal Board (PAAB), which has a filing deadline of April 30. Please note that you must file with the PARP before escalating your appeal to the PAAB. For more information on the process and preparing for a hearing, please consult the Appeal Guide or visit the Ministry of Finance website.

Data courtesy of BC Assessments  - https://info.bcassessment.ca/Services-products/appeals