Last
week, it was reported that Vancouver plans to create a database of empty houses
and condos in an effort to determine to what extent vacant properties
contribute to the city’s affordability crisis.
The news
comes from a memo sent by Mukhtar Latif, the city’s chief housing officer to
mayor and council. In his
memo, Latif acknowledged it is difficult to determine how many homes are empty,
and why. Therefore, the city plans to retain a consultant who will use B.C.
Hydro consumption data, national census information, and other statistics to
assess the situation.
The city
will also set up a website where people can report houses they believe to be
empty.
As I have
noted in previous columns, other jurisdictions have imposed special taxes on
foreign real estate buyers, and also attempted to discourage empty properties
through regulations, with limited success. While I
question how much the city can do on its own, if it can collect substantive
data to demonstrate empty properties are exacerbating housing affordability,
the federal and provincial governments may take some action.
I
recently came across another interesting newspaper story on the topic of vacant
housing. To quote the article:
“Middle-aged
couples in large homes should be encouraged to sell and downsize to a smaller
property to benefit society,” said the Minister. “More than half the people
over 55 years old had spare rooms and he suggested the Government should help
them move.”
In case
you are wondering why you missed this story, it might be because it is not from
a Vancouver newspaper; it is from England’s Daily Telegraph.
I find it
ironic that while the U.K. government is exploring how best to encourage older
people to move out of their larger homes, the B.C. government is doing the
exact opposite.
Why I
write this, you ask.
The
British Columbia Property Tax Deferment Program allows those 55 and older to
defer property taxes on their principal residence. If you are not aware of this
program, you can find details on the BC Government website. While
there is no doubt the program benefits some low income elderly people who
simply do not want to move, I have long questioned the broader societal
cost-benefits. There is no means test; anyone 55 or older can sign up. Indeed,
I take advantage of the program and encourage my contemporaries to do the same.
One
reason is the interest rate, which is currently just 1 per cent. It is not even
compounded. On a $7,000 tax bill, that’s only $70 in interest. There are so
many better things I can do with that extra money, including travel and investment. Just as
importantly, whether intentional or not, the program encourages many of us to
remain in larger homes with empty rooms when both we and society might benefit
from a more efficient use of our housing stock.
Lord
Newby, the deputy government chief whip in the U.K. House of Lords who proposed
government assistance to seniors with empty rooms pointed out that for many
older people the major constraint is often the lack of appropriate alternative
accommodation.
Ross
Altmann, the U.K. government business champion for older workers agreed.
“We have
not been building new homes that older people might want to downsize to; the
new houses are typically small flats that might suit ‘first time buyers’, not
‘last time buyers’.”
A similar
problem exists in Vancouver. While
thousands of new apartments are being built, often they are too small and not
in the neighbourhoods where longstanding Vancouver residents want to live. They
are also located along busy arterials, not on the quiet leafy streets many
prefer. Furthermore,
many of us are not yet ready for an apartment. We want a smaller house or
townhouse.
While I
endorse Mr. Latif’s initiative to study empty houses and condos, I would also
encourage him to examine what to do about all the empty bedrooms throughout the
city. While few
us are prepared to take in boarders, (even though doing so would solve the
rental housing crisis overnight), by shining a light on the situation we might
encourage city planners and Council to push for more suitable neighbourhood housing
accommodating last-time buyers.
- See
more at:
http://www.vancourier.com/opinion/it-s-time-to-help-the-last-time-buyer-1.1873811#sthash.hyRKfKut.dpuf
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