Important Update for Strata Property Owners and Prospective Buyers in B.C.

As a realtor dedicated to providing the most current and impactful information to my clients, it's important to discuss the recent changes to the British Columbia Strata Property Act concerning depreciation reports. Effective July 1, 2024, these changes will affect anyone who owns or is considering purchasing a strata property, especially in smaller strata corporations.

Understanding the Changes to Depreciation Reports

Depreciation reports are critical documents that help strata corporations plan for future repairs and maintenance by outlining the anticipated costs over a 30-year period. Previously, strata corporations with five or more lots could defer the requirement to obtain these reports by a 3/4 vote at annual meetings. However, under the new regulations, this deferral is no longer possible, and all applicable strata corporations must update their depreciation reports every five years without exception.

Impact on Strata Owners and Purchasers

  1. Increased Costs for Small Stratas: For owners in smaller stratas, the new requirement to obtain and regularly update depreciation reports every five years can represent a significant financial burden. Smaller stratas often operate with tighter budgets, and the cost of hiring qualified professionals to prepare these comprehensive reports can be substantial.

  2. Benefits for Prospective Buyers: For those looking to purchase a strata property, the availability of up-to-date depreciation reports is immensely beneficial. These reports provide a clear picture of the property’s condition and the expected future expenses, which can influence purchasing decisions and financing options. Prospective buyers can better assess the value and potential long-term costs of a property, making for a more informed investment.

  3. Long-Term Planning for Current Owners: For current strata property owners, regular depreciation reports facilitate better financial planning. Knowing the anticipated maintenance and repair costs helps strata corporations set appropriate reserve funds and plan for special levies or loans, which can stabilize financial management and avoid unexpected expenses.

  4. Enhanced Transparency and Property Value: Regular and updated depreciation reports enhance the transparency of a property’s management, which can be appealing to prospective buyers and contribute to maintaining or increasing property values over time.

Advice for Strata Owners and Buyers

  • For Owners: Engage with your strata council to understand the implications of these new requirements and ensure your strata is preparing adequately for the financial aspects of compliance.

  • For Prospective Buyers: Always request the most recent depreciation report when evaluating a strata property. Consider the long-term financial obligations and how they align with your investment goals.


The new regulations for depreciation reports in B.C. represent a significant change for strata property management, particularly affecting smaller stratas with the financial implications of compliance. However, these changes also bring about benefits such as improved transparency and better long-term planning capabilities, which can enhance property value and investment potential. Whether you are a current owner or a potential buyer, it's crucial to understand these changes and how they can impact your property decisions.

If you're considering buying a strata property or if you currently own one and have questions about how these changes affect you, please reach out. As your trusted real estate advisor, I'm here to help you navigate these changes and ensure your real estate decisions are informed and strategic.


Navigating Canada's 2024 Capital Gains Tax Changes for Real Estate Owners

With the unveiling of the 2024 federal budget, significant changes are on the horizon, particularly affecting real estate owners. Among these changes, modifications to the capital gains tax structure are pivotal, especially for those holding secondary properties. Understanding these changes is essential for effective financial planning and investment strategy.

Understanding Capital Gains in Real Estate

Capital gains refer to the profit realized when a property is sold for more than its purchase price. For example, if you bought a home for $550,000 and later sold it for $850,000, your capital gain would be $300,000. In real estate, capital gains tax is typically not applied to the sale of a primary residence but does affect secondary properties like cottages, vacation homes, or investment properties.

The New Changes to Capital Gains Tax

Currently, capital gains are taxed at a 50% inclusion rate, meaning only half of your gain ($150,000 of your $300,000 profit) is taxable. The proposed changes in the 2024 budget will increase this rate to two-thirds for gains exceeding $250,000. In the previous example, this means that $200,000 of your $300,000 profit would now be taxable instead of $150,000. This will likely affect many who have real estate investments.

Why the Change?

The government has introduced this change to address income inequality and ensure that those with higher earnings from investments pay a proportionate amount of taxes. This threshold aims to exempt the average Canadian homeowner from increased taxes, targeting instead high-value transactions typically seen in the luxury and investment property markets.

Impact on Real Estate Investors

For those wanting to invest in real estate or purchase a second property for personal use, such as a vacation home, this change means a significant adjustment in calculating potential returns on investments, particularly when selling properties that have appreciated substantially. If you're contemplating the sale of a secondary property that has seen considerable appreciation, you'll now face a higher tax bill on the profit exceeding $250,000. It's crucial for property investors to reevaluate their portfolios and consider timing their sales or exploring other tax strategies.

Strategies for Mitigating Impact

To mitigate the impact of these changes, consider consulting with a real estate lawyer or a tax professional who can provide guidance on planning and possibly restructuring your investments. For example, it might be advantageous to sell certain properties before the tax changes take effect or explore ways to offset losses due to taxation with gains from other investments.

Market Predictions and Economic Impact

Experts predict that these changes might cool down the overheated segments of Canada’s real estate market by discouraging rapid buying and selling of high-value properties. However, the long-term effects on market dynamics and property values remain to be fully seen. Economists expect that the main housing market should remain largely unaffected by these changes.

The 2024 capital gains tax adjustment marks a significant shift for real estate investors in Canada. While it aims to foster fairness in the tax system, it requires careful consideration and planning from those who will be affected. As always, staying informed and seeking professional advice are your best strategies in navigating these changes.

If you own secondary properties or are considering real estate investments, now is the time to talk to your advisor. Understanding these changes and planning accordingly will be key to maintaining the health and profitability of your investments. Have questions or need advice? Feel free to reach out or leave a comment below. Let’s navigate these changes together.

Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.