Vancouver Real Estate Blog

The Federal Proceeds of Crime(Money Laundering) and Terrorist Financing Act

Yesterday I was asked by a client why I needed to collect personal information, when I never asked for it the last time I sold his property. My answer to him was simple. IT'S THE LAW. Then I went into why it became law and who else has to go through the same procedures.

On June 23, 2008 new federal money laundering and anti-terrorist financing regulations came into effect that require REALTORS®to collect personal identification information from buyers and sellers. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as I know it keeps all this information and tracks everything. Here is a list of others that also follow the same procedures.

Who must report to FINTRAC

In addition to REALTORS®, other professionals and organizations are also required to ask for your personal information, including:

• financial entities including banks, credit unions, trust and loan companies and agents of the Crown that accept deposit liabilities
• life insurance companies, brokers or agents
• securities dealers, portfolio managers and investment counsellors who are provincially authorized
• persons engaged in the business of foreign exchange dealing
• dealers in precious metals and stones
• money services businesses
• accountants and accounting firms when carrying out certain activities on behalf of their clients
• casinos
• individuals and any entity importing or exporting currency or monetary instruments (such as a money order) of $10,000 or more
• lawyers and notaries public
• real estate developers and builders

For additional information about this federal initiative, please visit FINTRAC's website or call toll-free 1-866-346-8722

Harmonize Sales Tax - Decreases affordability

 To help mitigate the effects of the HST, the Real Estate Board of Greater Vancouver made five recommendations to the provincial government in a presentation to the Selection Standing Committee on Finance and Government Services on October 16, 2009.

To read BCREA full submission visit: Learn more >>

Top 8/10 Reasons why I love to live in kitsilano. - People

The people that live in Kits seem to me like they have a relaxed outward going attitude with a very active lifestyle. Age is not the factor here, but it's the attitude that comes with those that live near the beach. Whether you are in your teens or pushing 70 the common element that exists here is everyones love of life. It is very common to see some of the local residence having an early morning swim. The oldest person I had the pleasure of swimming with was a local resident living in Kits Point(grandmother to many) who swam just in front of the Watermark Restaurant most days.

One of my favorite images of living in kitsilano was on a beautiful day in July a couple of years ago a man came down the beach wearing his suite and tie and as he approached the water, he took off his shoes and rolled up his pants, threw his tie into the sand  and walked into the water and stood there. I introduced myself to him and asked him what he was doing after he came back up to the beach. His reply was simple. "After a long and hard day... The quickest way for me to relax is to cool my feet and day dream for awhile before heading home". I couldn't have said it better myself. 

Top 7/10 Reasons why I love to live in kitsilano. - Shopping

With over 300 stores, shops, restaurants, to choose from, the 4th Ave location in Kits, is where it happens. It's a mix of contemporary living meeting the confident, laid back personalities of the West Coast. I am choosing Capers Community Markets to represent the "North of Fourth" shopping area. And it's a shop that you will find me in many times a week. The food is always fresh, the experience is always rewarding and the staff know their foods. Did I mention Organic too.. This is a big draw on me, as I eat a lot of organic foods.

Top 6/10 Reasons why I love to live in Kitsilano - Restaurants

From the Watermark Restaurant the food is served to you, with a style that encompasses the west coast. This particular item is know as the Shrimp Tower. It is as good as it looks. All the other items on the menu are as appetizing as this one.

After a long day or a family get together the Watermark is great to walk down to from our home in Kits.

The sunsets, the beach, the Pacific ocean are just below. Vancouver Island to the west, to the north is Stanley Park and the North Shore Mountains all within your view.

One of my favorite things to do is to arrange with my wife to meet for a drink after work. Once there, we usually order appetizers and sometimes it turns into a full dinner. It's just a nice place with great food and an amazing view that all can enjoy.

If you have never been before, try it out.....You'll love it.

PS. It is also a great place to take client!!!

British Columbia leads the way in Residential Sales

The vancouver Sun is reporting today that British Columbia  led Canada in a record for new monthly residential sales in October. In an interview CREA"S Chief economist Gregory Klump said "of all the Provincial monthly gains, BC's was the highest"

For more information follow this link:

http://www.vancouversun.com/business/real-estate/leads+nation+record+residential+sales/2229190/story.html

Harmonized Sales Tax

The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.

The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.

This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.

A similar rebate will also support the construction or substantial renovation of affordable rental housing.

The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:

Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;

Grandparenting: sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.

For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html

MLS Stats on Average prices across Canada

Click on the link below to find the average price of homes across this country. These stats are compiled by The Canadian Real Estate Association (CREA)  across Canada. This map will show the latest stats for all major markets.

http://www.crea.ca/public/news_stats/statistics.htm

Highest number of MLS sales in October since 2003 reports BCREA

Vancouver, BC – November 17, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 115 per cent to 8,624 units in October compared to the same month last year. Last month posted the highest number of MLS® residential sales for the month of October since 2003, when 8,682 units changed hands. The average MLS® residential sales price in the province climbed 17 per cent to $493,328 from $420,259 in October 2008.  

“BC homes sales continued on an upward trend in October,” said Cameron Muir, BCREA Chief Economist. “Despite a lackluster economy, low mortgage interest rates have induced many potential buyers into the market. However, the recent phenomenal pace of home sales is expected to moderate in the coming months as pent-up demand dissipates and eroding affordability begins to impact the purchasing power of households.”

For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2009-10.pdf.

 

British Columbia's Economic and Fundamental Business Indicators -part 4/4

Out of all the indicators out there, one that remains rather robust and less understood is Housing Starts. The biggest problem with the section is that Housing starts always "Lags Behind" what the market is doing. Simply because builders do not want to build unless their is a demand. Once there is a demand, they then have to have land ready to build on, or more precisely buy the land, then start the application process for their project, lets say a high rise in down town Vancouver. Start, draw and submit architectural drawings, meet with the board of variance to get the project approved, investigate any environmental concerns,etc. to get it to the point of getting a housing permit.

In the meantime, the British Columbia market place is thirsty for inventory and the only thing out there is re-sale homes. Buyers have no choice, so they must buy these homes as no new one are out there on the market. So housing starts next year in 2010 are expected to increase 46% compared to 2009. If what I am seeing in the market place is any indication, I think that we will see housing starts to rise sharply to keep up with demand.