Fraser Valley

Demand for Land!

By:  Shane Toews

I’m sure you’ve noticed the papers read “Abbotsford Booming!”  or “Vancouver Market BOOM!”  or maybe “Fraser Valley Market Is Red Hot”.  Well due to increasing population and decreasing supply of land, real estate prices go up.  This is a natural law of the world.  Many communities have slow growth or no-growth because they cannot meet rapidly expanding needs for their community.  With our government, this is not the case.  Our government understands that restrictions on land availability means new development.  This causes land value to go up in value in the Fraser Valley housing market.  Real Estate is a commodity that the public needs.  Other investment commodities are not so reliable because they don’t constitute a public need.  Sometimes people will live in the lower mainland and want Vancouver Island as a retreat.  Vacation property or places of retirement creates further demand for land.  And so the cycle goes.  You can see why real estate can be a solid investment for your Canadian dollar’s.

For all the reasons outlined in earlier points, clearly buying a new home in British Columbia has the potential for an attractive return on your investment.  Before and after tax.  In fact some of the tax advantages of real estate investments include the following:

(i)                  tax free capital gains on your principle residence

(ii)                the “ability” to write off principal residence suite’s rental income against your home expense!

(iii)               Writing off home based business income against your home expense.

(iv)              Reduction tax rate of 50% of capital gain form your investment in real estate

(v)                Write off deprecation of the building against income.

(vi)              Much, Much more!  (contact your local realtor for more information)

A prudent Fraser Valley investor can result in a net positive cash flow income to you every month.  Not only can the money provide you with additional money in the lower mainland but the fact that you have a positive cash flow is one factor that automatically increases the value of income acquiring real estate.