Real estate sales are the predominant factor in determining property assessments in B.C.
And much has been written about how the residential housing market on the West Shore and elsewhere in Greater Victoria has been moving upward in the past year or more, from a price perspective.
So, none of us should be surprised if that envelope from the B.C. Assessment Authority comes in the mail (or into our electronic in basket) and tells us our property value has gone up, significantly in some instances.
While some homeowners will argue that the higher amount does not reflect reality in their neighbourhood or municipality, having a larger value placed on your property is not necessarily a bad thing. In fact, it’s a sign that our economy is in good shape here in the Capital Region.
When people have more money to buy a home, it generally means they’re earning more and spending more on other items too.
While one’s investments in stocks and mutual funds are quite a different animal than real estate, the rough ride financial investors have been taking this week, as the North American markets respond to uncertainties in China, might make some people glad the value of their home and property is going up.
We often use this space during the week when assessments are sent out to remind readers that an increase in your home’s valuation does not necessarily translate into increased property taxes come the middle of the year.
Unlike the provincial or federal governments, municipalities are required by law to balance their budgets. How they get there is a delicate balancing act that not only takes into account the collective assessment roll for residential and commercial properties, but many other factors.
Revenues come mainly from property tax, but such things as business licensing, development fees, fines, as well as government grants to help with infrastructure projects, are also worked into the equation during budget time to determine how much municipal taxes will go up.
With that in mind, municipalities busy with developments such as Langford, Colwood and View Royal should, theoretically, be more likely to hold the line on taxes.
So we can, in some ways, celebrate higher property assessments. They can be seen as a sign that our area is in good shape – which is positive – and they don’t always prompt the financial gurus at our municipalities to look for more money from their taxpayers, which is about the best scenario we can all ask for.