Pages Navigation Menu

The Hidden Fees We All Forget About

The Hidden Fees We All Forget About

Huge land fees and investors from overseas with bottomless pockets have helped to fuel the rising cost of buying a home in Vancouver. But these two factors are not alone when looking at the different reasons as to what makes a house price in a certain district go through the roof.

Research carried out by the Fraser Institute has determined that approval times matter, compliance costs affect house prices, zoning matters and even the grumpy sod who might live next door can all go to affect the cost of a home in Vancouver. Although we do tend to overlook these cost factors, they are very much a factor to be taken into consideration when the house is priced by a real estate agent.

Delays in municipal regulation can have an effect on house prices and if the home has development levies, it can also ramp up the end estimate cost when it comes to the surveyor’s visit. Unfortunately for home buyers looking to buy property in Vancouver it can find the onerous fees and levies end up being so much higher than Lower Mainland.

Rezoning requirements in Lower Mainland are rather high – even when compared to Vancouver – but this is about the only levy where Lower Mainland homes take a hit. In Vancouver, this region’s housing costs are substantially higher because of so many indicators (rezoning aside).

A recent survey found a typical residential development in Vancouver will set a building company back $37,000 before the foundations have even been laid. Now compare that with a district like Abbotsford, where developers must fork out around $15,000 before any work has been carried out on the new build, and you can see how many extra costs have to be heaped upon developers looking to build in Vancouver.

The trouble is with Vancouver is that it’s so heavily regulated. But not everyone agrees with these claims that Vancouver is too heavily regulated and fees are the second highest in the region. Brian Jackson is a planning director in Vancouver and he says a recent study showed development charges per square foot in high density residential complexes puts Vancouver about average in the table of municipalities within the region.

Jackson also says that levies paid by Vancouver developers also have to take into account things like building and running day care centres and park acquisition. And also that higher fees reflect the higher cost of land in Vancouver.

Antonia Tong will be glad to assist you searching for your dream home in lower mainland in BC.