Photo: Realtor.ca
A Kelowna landowner was surprised this week to find that the valuation of her property on Belaire Avenue had risen by more than 50 percent.
According to Kelsey Fagan, not only did BC Assessments’ property valuation jump from $ 654,000 to $ 988,000, but the quarter-acre lot on which the home sits rose from $ 464,000 in 2020 to $ 978,000 this year.
The home is now valued at only $ 10,000.
“It’s a little interesting. I don’t know if it’s a bug or not,” Fagan told Castanet News.
The house, owned by her father, is one of eight on Belaire Avenue that are putting their homes up for sale and jointly marketing them in hopes of attracting a developer.
“However, we have a state assembly, which I understand should not influence the assessment.”
This is one of the few properties that is going down the same path by marketing their homes together. In fact, a month ago the council approved a three-story land assembly at Belaire and Chandler Streets for a six-story development with 94 units.
Fagan says she contacted her agent and BC Assessment to find out why the assessment is so.
Some research by Castanet shows that four of the other properties in Belaire are also valued at $ 988,000 for a building value of just $ 10,000.
Tracy Wall, associate reviewer for BC Assessments, says these types of assessments are not uncommon.
While she couldn’t speak to us about the specific Belaire properties, she stated that properties with higher development potential will usually have a much higher land value, like these houses.
“I believe we have done so that it is now ripe to redevelop these properties and the market is showing this through listings and sales. We are following the market,” said Wall.
“When we see property sales, especially those properties that are demolishing the houses, they usually pay a lot of money for the property.
“It would not be fair for us to apply the principle of increasing the land value to market value and doing nothing with the building. If the building is still usable if someone lives in it or rents it, then we put a face value on it.
“But if we significantly increase the value of the land in this way, we would in turn decrease the value of the building.”
