If you’ve been following the Calgary real estate market, you’ve likely heard about the ongoing Calgary rezoning discussions. This is a major topic that could directly impact Calgary real estate, land value, and future development opportunities.

Calgary City Council is currently holding public hearings to decide whether to repeal the 2024 blanket rezoning policy, which allowed for more housing types such as duplexes, rowhomes, and townhomes in traditionally single-family neighbourhoods across Calgary.

What Are the Proposed Changes?

The current proposal would reverse the blanket rezoning and return many communities to their previous zoning rules. If approved, properties would once again require individual rezoning applications to allow for multi-family development in Calgary, including rowhomes and fourplexes.

There are also discussions around changes to zoning districts like R-CG, which play a key role in inner city infill and redevelopment in Calgary. Changes include building height, parking restrictions, lot coverage, build feasibility for corner unit vs. interior lot, number of units per parcel and more. This is projected to impact over 300,000 parcels within the Calgary limits. 

Why This Matters in the Calgary Real Estate Market

These decisions will directly influence housing supply in Calgary, affordability, and how quickly new developments can move forward. For buyers and investors, especially those focused on Calgary investment properties or multi-family real estate, this could shift where the best opportunities exist. For investors, particularly zoning can significantly impact property value, especially for homes with redevelopment potential. 

What This Means for You

Whether you are buying, selling, or investing in Calgary real estate, zoning changes like this shape the market in a big way. Areas that were primed for infill development may shift, while others could become more competitive depending on the outcome.

Staying informed is key, especially if you are considering buying in inner city Calgary or exploring real estate investment opportunities in Calgary.

My Take

This is one of the most important shifts we are seeing in the Calgary housing market right now. The outcome will influence development, density, and long-term property values across the city. It will also have a huge impact on land value. 

If you are thinking about making a move, this is exactly the kind of market change you want to understand before making a decision. As someone who owns multiple investment properties, including land that is currently awaiting development permits for a multi-family project I thoroughly believe in doing the upfront research, educating clients and having an ongoing awareness of any upcoming changes.

Reach out if you have any questions about the current zoning changes happening in Calgary right now! 

-Kait

If you're planning to buy or sell real estate in Alberta, you'll want to be aware of a significant change coming into effect on October 20, 2024. The Alberta government has announced an increase in land title transfer fees, which could impact both buyers and sellers. Here’s a breakdown of what you need to know.

What Are Land Title Transfer Fees?

Land title transfer fees are administrative costs associated with the legal transfer of property ownership from one person to another. These fees are paid to the Alberta Land Titles Office, which oversees property records and guarantees title ownership in the province. They are part of the closing costs that buyers must consider when purchasing real estate.

What’s Changing?

Effective October 20, 2024, Alberta will implement an increase in these fees, which have remained relatively low compared to other Canadian provinces. The land title fees used to include a basic charge of $50 for both transfers and mortgages, plus an extra fee based on the property's or mortgage's value. Currently, for property transfers, an additional $2 is charged for every $5,000 of property value, and mortgage registrations have an extra fee of $1.50 per $5,000 of mortgage value.

In the 2024 budget, the basic charge remains at $50, but the additional fee increases to $5 for every $5,000 of value, applying to both property transfers and mortgage registrations.

For example, a $500,000 home with a 10% down payment currently costs $435 in land registration fees. After the change, the same home will cost $1,050 in fees.

Who Will Be Affected?

• Homebuyers: If you’re purchasing a property after October 20, you’ll need to factor the increased fees into your budget. While these costs are typically modest compared to the overall purchase price, they still represent an additional expense in a market where affordability is already a concern for many.

• Sellers: While sellers are not directly responsible for paying land transfer fees, higher transaction costs could affect the overall market, potentially slowing down sales or affecting pricing negotiations.

• Real Estate Investors: For those buying multiple properties or investing in larger commercial properties, the cumulative effect of the increased fees could be more significant. This might influence decisions around property acquisition strategies in the coming years.

Why Is This Happening?

The increase comes as part of Alberta’s broader effort to align its land title fees with current market conditions and administrative costs. The province is also looking to ensure its revenue streams reflect the costs of maintaining an efficient and secure land title system. With the booming real estate market and rising property values, the fee adjustment aims to balance the system’s sustainability with the demands of growth.

What Can You Do to Prepare?

1. Budget for the Change: If you're planning to buy property after October 20, 2024, be sure to factor the increased fees into your financial planning. Speak to your real estate agent or lawyer for estimates on how this may impact your total closing costs.

2. Close Before the Deadline: If you’re in the process of buying a home, you may want to expedite your closing process to avoid the fee hike. Keep in mind that the title transfer must be completed before October 20, not just the sale agreement.

3. Stay Informed: Keep an eye out for further announcements or clarifications from the Alberta Land Titles Office or your legal professional. It’s important to stay up to date on how these changes will be implemented.

Conclusion

While this fee increase may seem like a small adjustment, it could still affect overall real estate transaction costs, especially for first-time buyers or those making large property investments. As with any policy change, preparation is key. Make sure to talk to your real estate professionals to understand how this increase will impact your plans.

If you have questions or concerns, it’s always a good idea to consult with your lawyer or financial advisor for personalized advice. Stay informed, plan ahead, and make sure you’re ready for Alberta’s new land title transfer fee structure starting October 20, 2024.