The social and economic of 2020 and 2021 proved to be no worry for the real estate market. The demand simply skyrocketed for industrial and residential properties. Properties across the Fraser Valley were selling in days for far over asking, so we ask the question. Will my property value increase because my neighbor sold? And the answer is that it is quite likely.
Your property value is assessed based on replacement costs and the market in the direct surrounding area. When it comes to replacement costs, everything needs to be considered. This includes building material costs, finishes, and age. If you own a property in a market with high demand, your property value will increase as your assessment is often based on recent market trends. For 2022, your as of market value date will be July 1, 2021. Here's what you can expect from your upcoming assessment.
The commercial and industrial real estate market has picked up quite some momentum over the past couple of years. Properties of all sizes across Greater Vancouver and the Fraser Valley and beyond to Chilliwack have sold quickly and for above asking. This momentum is thanks to the quickly approaching post-pandemic economic upswing. Additionally, the current interest rates are at an all-time low, which makes affording a property a lot easier. These two factors have driven market demand to the moon. But how does it impact you as a commercial tenant paying property taxes, or the property owner?
In British Columbia, property taxes are based on your property value assessment. Recent trends demonstrate that there is likely going to be an increase in the average industrial, commercial, and residential property price. For any property owner in the Greater Vancouver area and Fraser Valley, that means your property’s value can increase as well even if you have not sold recently. If you are looking to sell your property, this can be great news. For those who don’t, you might be dreading the upcoming tax season. Coupled with increased property valuations, the province’s return to regular property tax rates following the pandemic, will show could be a sticker-shock.
While there may be no way to avoid an unparalleled jump in your property value assessment this year. You can turn to the Sidco consultants for an assessment review. Our team can advocate for your property despite the initial assessment and ensure that it is assessed fairly and equitably. Then you can be confident that your property taxes paid in July, is the fairest amount possible.
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