Latest news with #NovaScotiaAssociationofRealtors
Yahoo
11-06-2025
- Business
- Yahoo
Halifax real estate listings advertising fixed-term leases as financial asset for buyers
While the Nova Scotia government has no plans to regulate a type of lease that's been called a loophole in the province's rent cap legislation, some real estate listings are advertising fixed-term leases as a financial benefit for potential buyers. A brief search by CBC News of multi-unit residential buildings for sale in Halifax in May showed a trend: at least 11 listings mentioned tenants on fixed-term leases. Two listings stated, "Currently double digit returns with rent increases coming in September," with one also saying the property has "little maintenance, zero vacancy and increasing rents." Others mentioned leases ending soon and boasted money-making potential in statements like "for the savvy investor the finances have upside as tenants turn over." Tim Allenby, chair of the Dartmouth chapter of tenant group ACORN, said he's not surprised by this marketing tactic. "It's the incentives of the system that currently exists," Allenby told CBC News in an interview. "They have it set up in such a way that landlords benefit from primarily relying on fixed-term leases, so of course that's going to end up being an investment benefit." According to Nova Scotia's Residential Tenancies Act, a fixed-term lease is entered into for a fixed period of time, with a set end date. This means it doesn't automatically renew every year and landlords can decide whether or not to offer an existing tenant a new lease. Although the province has a temporary five per cent rent cap for existing tenants, fixed-term leases have been criticized by housing advocates as a way around this legislation, allowing landlords to force tenants out and increase prices more than five per cent for new renters. The Nova Scotia Association of Realtors declined to comment on why this type of lease is attractive for property buyers, and why it might be advertised as an asset of a property being listed for sale. It referred CBC News to Rental Housing Providers Nova Scotia, a group that has defended the use of fixed-term leases as a way to mitigate risk when renting to tenants like students, newcomers or people with bad credit or no landlord references. Kevin Russell, executive director of Rental Housing Providers Nova Scotia, said he can't comment on how Realtors market their product — "that's up to them and the owners" — but he said fixed-term leases play an important role in the rental market. "It's difficult to rent when there's no credit history and no landlord references. So they're used to [mitigate] any risk." Russell referenced research done by his organization in 2023 and 2024 that found 86.1 per cent of landlords who responded use fixed-term leases, with top reasons being risk management, limiting property damage and establishing landlord-tenant relationships. The survey found 53.9 per cent of respondents would sell units if fixed-term leases were eliminated or altered. "It will result in thousands of units being unavailable to rent as property owners sell their properties," Russell said. "And a lot of times when we're leasing on fixed-term leases, it's all done … with a partner, with one of the shelter organizations." Russell said the surveys did not ask if landlords chose to use this type of lease to increase profit, recoup costs or circumvent the rent cap. Province says marketing tactic is 'disappointing' An interview request for Jill Balser, the minister in charge of residential tenancies, was declined. "Fixed-term leases, in some situations, work for both tenants and landlords," a government spokesperson said in an emailed statement attributed to Balser. "It is disappointing to see them being used as a marketing tactic." The statement said Balser "strongly suggests" tenants become informed about fixed-term leases before committing to sign one. "I also want to remind tenants there are choices. Periodic leases are another option available," the statement said, before emphasizing the government is focusing on creating more housing to give tenants greater choice in where to live. In mid-May, a provincial official acknowledged that some Nova Scotia landlords are abusing fixed-term leases, but Balser confirmed the following week there are no plans to do anything to help prevent the abuse. "They're aware of the problem," Allenby said. "They have it as a result of a loophole that they created, and now they're telling the whole world they're not going to do anything about it. There is no incentive for a landlord to play by the rules." The provincial government has said there is no data on the use of fixed-term leases. Tenant and landlord groups have been calling for the province to do its own research. "If the Nova Scotia government wanted impartial data on how prevalent this problem is, they have the resources to go out and get it," Allenby said. MORE TOP STORIES
CBC
16-04-2025
- Business
- CBC
Does Nova Scotia's hiked deed transfer tax help or hurt housing?
There's disagreement in the Strait of Canso area over whether a recent increase in Nova Scotia's deed transfer tax for non-resident landowners will help or hurt local housing efforts. The tax, which doubled to 10 per cent from five per cent on April 1, now applies to all residential properties with three dwellings or less, including vacant land that is considered to be residential. The move drew fire from the Nova Scotia Association of Realtors and last week sparked Richmond County council to approach the province and the Nova Scotia Federation of Municipalities with concerns that the increase could hamper the Strait-area housing market. However, not all Richmond councillors agree on the issue, and a local land developer who sells to Canadians and Europeans alike feels the tax hike could halt bidding wars that have clogged the housing market since the depths of the COVID-19 pandemic. Land developer praises province's 'genius move' When the tax increase was introduced as part of the government's Financial Measures Act, Finance Minister John Lohr described the move as a means of helping Nova Scotians compete with out-of-province buyers for new homes. Rolf Bouman, the founder of the property sales firm Canadian Pioneer Estates, agrees with the concept, although he acknowledges those directly involved in house sales rather than land transfers would have an opposing view. "As a land developer, it's pretty good because people will then decide to build houses and it gives a lot of employment," said Bouman, whose company is based in Aulds Cove, N.S. "But as a broker, I probably wouldn't like it, because the broker has the job to get the highest price for the vendor or seller for a house. And, of course, when you exclude people from outside of the province, or you make it harder for them to, in fact, purchase land, that might hurt the bottom line for the seller of the house, as well as the broker for their commission." However, Bouman sees a net benefit from the province's strategy in that it could cool off bidding wars between residents and non-residents. "This was a genius move on the part of the province, or the premier, or whoever came up with the idea," Bouman said. "I would have set the tax even higher. But for now, it's good where it's at." Richmond County calling for changes Meanwhile, Richmond County officials feel the province isn't considering how the tax hike could impact the local housing market. They're also concerned the increase is punitive to former Nova Scotians trying to return home and contribute to the communities they once left behind. "We've got local people who are flagging these concerns and asking for some reconsideration on some of the terms of it," said St. Peter's-area councillor Amanda Mombourquette, who brought the issue to the council table earlier this month. "Businesses and investors, they like certainty. So when we have changes like this that are really disruptive to business models that have been in place for some time, it can create some concern and discourage investment." Warden Lois Landry, who said at the previous council meeting that "there are some advantages to this tax," is hopeful the county and the province can work together to recognize anyone who could be impacted by the recent increase. "We have had some concerns from residents about property values increasing in their assessment, and what that does to the property tax that you're required to pay," Landry said. The county will vote on its next steps regarding the tax at its monthly meeting next week in Arichat.
CBC
28-03-2025
- Business
- CBC
Realtor says non-resident deed transfer tax not enough to stop recreational home demand in region
Royal LePage projecting 8 per cent increase in price of waterfront properties in Atlantic Canada this year The market outlook for recreational homes in Atlantic Canada is stronger than anywhere else in the country, says the president of Royal LePage Atlantic in Halifax, despite widespread concern over the doubling of Nova Scotia's non-resident deed transfer tax. Matt Honsberger said Wednesday that lakefront properties are available on the East Coast for under a half-million dollars, but can go for three times that or more in other parts of the country. The Nova Scotia Association of Realtors and others have said the province's non-resident deed transfer tax, which increases to 10 per cent from five per cent on April 1, could turn off buyers. Honsberger said it might affect some, but Royal LePage is still projecting an eight per cent increase in the price of waterfront properties this year. "I think there's a little bit of politics at play there," he said. "I do think that it has a slowing effect on it. I don't think that it shuts the taps off completely, because when you look at apples-to-apples comparisons in other provinces, we're still going to be affordable, even with that tax." Royal LePage's latest numbers show prices for single-family waterfront homes in Atlantic Canada were nearly 13 per cent higher in 2024 over the previous year. East Coast properties more affordable The company's projection of an eight per cent increase this year is still double the projected national average. Honsberger said properties are still more affordable in Atlantic Canada than in Ontario or B.C. "If you want a lakefront property in the Annapolis Valley here, you can probably find a reasonable lakefront property for three or four hundred thousand dollars," he said. "If you're someone who's in southern Ontario looking to have a vacation property in the Muskokas on a lake, you're probably north of a million and a half dollars. You can still get oceanfront property in Nova Scotia for under a million dollars and you'd be hard pressed to find that outside of Vancouver or Kelowna or some of those areas." Royal LePage said the median price of a single-family home in Atlantic Canada last year was $461,900, while the median price of a single-family waterfront property was $598,000. Non-residents an easy target Honsberger said many Canadians are choosing not to vacation in the United States because of deteriorating relations between the two countries. He said many are looking for vacation homes that in some cases can double as income properties, despite Nova Scotia's hike last fall in short-term rental fees. Honsberger said non-resident taxes and fees are an easy target, because the buyers don't vote in the province, but he said the government should consider easing regulations and taxes anyway, because non-residents contribute a lot to the economy. On the day Nova Scotia Finance Minister John Lohr introduced the province's plan to double the deed transfer tax for non-residents, he told reporters increasing the tax was a way to give Nova Scotian buyers a leg up on out-of-province competition when it comes to house sales. "If a Nova Scotian is bidding for a home and someone else is bidding on it as a cottage, we want that Nova Scotian to have a slight advantage and that's what that non-resident deed transfer tax is — a slight advantage for a Nova Scotian," Lohr said at the March 5 bill briefing.
