April 09, 2012
Vancouver and British Columbia's Top 28 Grants And Rebates For Property Buyers And Owners
Vancouver and British Columbia have some amazing grants and rebates for buyers and owners. Here a a few of them.
1) Home Buyer's Plan: Qualified home buyers can withdraw from their RRSP up to $25,000 and $50,000 for couples for a downpayment. See www.cra.gc.ca and entry Home Buyers Plan documents-in the search box.
2) BC First Time New Home Buyer's Bonus: First time buyers may be qualified for a one-time grant equal to 5% of the purchase price of the home or if you are building a home up to 5% of the land and construction costs. www.sbr.gov.bc.ca/documents_library/notices/FTHB_Bonus.pdf call 1-877-387-3332
See the following link for the entire top 28 grants and rebates:
http://www.realtorlink.ca/portal/server.pt/document/3377963/top_28_grants_and_rebates%2C_march_20%2C_2012
Posted on April 9, 2012 at 01:50 PM in British Columbia Real Estate News, Grants and Rebates, Vancouver Real Estate News | Permalink
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February 22, 2012
Finance Minister Kevin Falcon Scraps HST And Returns PST
B.C. will scrap the HST and return to the PST on April 1 2013, Finance Minister Kevin Falcon announced on Friday in Victoria.
Until that time new home buyers will be able to take advantage of expanded rebate program and a transitional tax designed to ensure that there is no tax difference whenever they choose to buy their home — provided it costs $850,000 or less.
"The B.C. new housing rebate threshold will be increased to $850,000, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500," said a statement issued by the Ministry of Finance on Friday.
"The housing transition rules help ensure when people buy a newly constructed home under the PST, whether built entirely under the HST, entirely under the PST, or partly under HST and partly under the PST, they will all pay a consistent and equitable amount of tax."
The government also rolled out a new grant designed to encourage people to buy vacation homes outside of Metro Vancouver and Victoria.
"In addition...purchasers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012."
Falcon said he expects the new rules will bring certainty to new home buyers and the building industry.
"The relief measures announced today are a boost to home buyers purchasing either a new primary residence or a secondary home. At the same time, they help an important job-creator in all parts of the province."
The move was welcomed by the homebuilding industry on Friday.
More details on how the transition back to the PST will affect other goods and services will be rolled out later this spring.
"For goods and services that will be subject to PST, PST will generally apply where tax becomes payable on or after April 1, 2013."
Posted on February 22, 2012 at 04:45 PM in British Columbia Real Estate News, Buying a Home, Provincial Governments, Tax issues | Permalink
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January 29, 2012
British Columbia Real Estate Association First Quarter Housing Forecast Update Calls For Average Performance For Housing Market In 2012
Vancouver, BC – January 27, 2012. The British Columbia Real Estate Association (BCREA) released its 2012 First Quarter Housing Forecast Update.“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist.
BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 2.1 per cent from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7 per cent to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS® residential sales were recorded in 2005.
"While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir.
Home prices in most BC markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand. The average MLS® residential price in the province is forecast to edge down 2.2 per cent to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8 per cent to $553,000.
For a PDF version of this news release, including data table, follow this link:
http://www.bcrea.bc.ca/docs/news-2012/2012-01-27forecast.pdf
Posted on January 29, 2012 at 11:11 PM in BC & Greater Vancouver Reports, British Columbia Real Estate News | Permalink
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January 13, 2012
The New MLS Home Price Index - What's New, What's Different. - Re-Indexing To Equal 100 In January 2005 As Base 100
As announced in December, a new national home price index will launch in February. This index will replace the MLS®Link Housing Price Index, which has been used by Greater Vancouver and Fraser Valley REALTORS® since the mid 1990s. To read the full report follow this link read
Posted on January 13, 2012 at 05:05 PM in British Columbia Real Estate News, Canadian Real Estate News | Permalink
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January 05, 2012
Renewing Your Mortgage This Year? 5 Year Term Lowest In 65 Years
RENEWING YOUR MTGE IN 2012?
If it was a 5 year term aren”t you lucky!
Rates are back down to 65 and 70 year lows! A 5 year term at over 5% in 2007 will enjoy renewing at rate lows of 2004. WOW!
This would be the time to consolidate some debt or plan that kitchen renovation. Use the increase in equity in your home to add further value. Payments may actually stay the same or reduce at these low rates eventhough increasing your mtge.
The key, though, is to lock-in these rates with an early pre-approval.
| JAN 5 2012 |
|
Mortgage Brokers |
Most Banks |
| 6 mo. |
4.45 |
4.55 |
| 1 yr |
2.80 |
3.50 |
| 2 yr |
3.20 |
3.85 |
| 3 yr |
2.99/SPCL/CMHC |
4.05 |
| 4 yr |
3.09 |
4.79 |
| 5 yr |
3.24/SPCL |
5.29 |
| 7yr |
3.89 |
6.35 |
| 10 yr |
4.39 |
6.75 |
|
|
5 yr VARIABLE 2.90 %
50/50 5YR/VAR 3.25 %
PRIME 3.00 %
|
Posted on January 5, 2012 at 05:02 PM in British Columbia Real Estate News, Buying a Home, Residential Financing | Permalink
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December 22, 2011
10 Ways To Sell In Winter
RE/MAX Agents Share Ten Ways to Get the Best of Winter When Selling Your Home
If your home will be for sale this winter, it is important to master certain seasonal issues that are less significant or even non-existent at other times of the year. Here are 10 bits of sage advice from RE/MAX agents that can help put a “Sold” sticker on that yard sign.
Let Those Lights Shine: The best way to combat winter’s short and frequently cloudy days is to turn on your house lights. For a showing, every single light in the house must be on, even in the closets and utility/mechanical rooms, according to Marlene Granacki of RE/MAX Exclusive Properties, Chicago.
“Make sure all the bulbs are working, and stock up on all the right bulbs for lamps and fixtures so burned out bulbs can be replaced immediately,” she advises. “Also, it’s a great idea to keep the lights on in the front of the house even if no showings are scheduled. People are always driving past the house, and keeping it lighted makes it look happy and welcoming.”
She also advises opening the drapes and blinds during the day to let in light and let visitors enjoy the view.
Provide Convenient Parking: It’s vital that buyers have a convenient place to park. They won’t want to walk very far in cold weather or be forced to climb over a snow bank to exit their vehicle. Because parking is often more restricted around condominiums, sellers should make sure their agent can pass along parking details to buyers.
Make It Easy to Enter: Winter showings can get off to an awkward start if prospective buyers arrive with snow or salt on their shoes.
“Make it easy for buyers to deal with their shoes when they arrive,” recommends Barbara Hibnick of RE/MAX Showcase, Long Grove, Ill. “Put a festive area rug at the front door for a great first impression and so visitors can wipe their feet. Have slippers or disposable booties available, along with a bench or chair, if there is room for one, where a visitor can sit and easily remove or put on their boots.”
Keep Odors Under Control: Any home tends to be stuffy in winter when windows are opened rarely. That can allow odors to build up, which can be a turn-off to buyers.
“Pet odors can be especially worrisome in winter,” says Mike Mondello of RE/MAX Synergy in Orland Park, Ill. “Use a room fragrance if needed, but nothing too strong, and I recommend that in winter sellers clean more often.” For example, change the cat litter daily, rather than every third or fourth day, or even consider using an air purifier.
If pets are in the house, consider setting the thermostat control so that the furnace fan runs constantly during the day to keep air moving through the house and dissipate odors. Also try to avoid strong cooking odors, especially if a showing is scheduled that day.
Cultivate a Festive Look: Appropriate decorations for Thanksgiving, Christmas and even St. Valentine’s Day help give a home a cheerful look during the winter months.
“I really believe that holiday decorations can help homes sell, but don’t go to excess,” suggests Starr Zook of RE/MAX On Track in Aledo, Ill. “Keeping small, decorative white lights on trees and bushes pretty much through the winter season is fine, but other decorations should be taken down quickly once the holiday passes.”
Don’t Ignore the Outdoors: Make a good first impression on buyers with a neatly maintained yard. Walks and steps should be kept clear, especially of snow and ice.
Look after Condo Common Areas: If the home you are selling is a condominium, your job as a seller may be relatively easy in winter, with no snow to shovel or yard work to worry about. However, that is only the case if your condominium association does its job well.
If the association isn’t doing it, the homeowner may have to take responsibility for keeping the entrance area and hallways clean. If the association isn’t getting snow shoveled promptly, consider buying some de-icing salt and sprinkling it judiciously around the building entry.
Don’t Roast Buyers: We all tend to prefer a specific temperature for our homes during the winter, but don’t blast buyers with hot air. Keep the temperature at a comfortable 65 degrees for all showings. Remember, buyers are likely to be wearing their coats even as they walk through the house.
Keep Seasonal Clothing under Control: “One major challenge of selling a home during the winter months is the overabundance of cold weather gear that must be stored,” says Mike Mondello. “A buyer doesn’t want to find the mudroom filled with boots or the hall closet overflowing with heavy coats. Shift some winter coats to another closet and put anything not needed in the closet into storage.”
To keep gloves and scarves from piling up in the front hall or mudroom, put a special container for them, such as a decorative chest, where the family typically enters the home.
Encourage Day Time Showings: A home shows to its best advantage during daylight hours, which are relatively scarce in winter.
“Encourage your agent to show your home before 3 p.m. and have it ready to show by 9 a.m. if you want the best results,” Granacki recommends.
Despite the special challenges of marketing a home during winter, there also are benefits, notes Laura Ortoleva, a spokesperson for the RE/MAX Northern Illinois real estate network.
“Buyers out looking at homes in December or January are, as a group, quite serious about buying. Therefore, sellers tend to benefit because each showing is more productive, and fewer showings are needed to sell the property,” she said.
Posted on December 22, 2011 at 03:31 PM in British Columbia Real Estate News, Buying a Home, Canadian Real Estate News, Homes for Sale, Selling a Home | Permalink
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December 19, 2011
Property Transfer Tax Is 25 Years Old
For 25 years, the PTT has been adding to the cost of homes.
Hardest hit are low equity buyers who may not qualify for the
PTT First Time Buyer’ Program exemption. Many may have
spent years saving a downpayment. Faced with a tax that adds
$10,442 to a home with a benchmark price of $622,087, they stay
put.
The Real Estate Board’s response
Since before the PTT was first brought in by the BC Government
in 1987, the Real Estate Board has actively and persistently
campaigned against the tax.
At every opportunity, the Board has hammered home to the
provincial government the message that the PTT makes home
buying unaffordable. For example:
1. Each year the Board prepares a pre-budget submission to the
BC Select Standing Committee on Finance and Government
Services, a committee whose primary purpose is to seek
input about spending and tax priorities for the upcoming provincial
budget. Our submissions focus on the PTT’s harmful
effects on our neighbourhoods and our economy.
2. Each year the Board’s Government Relations Committee
(GRC) and Board representatives such as the president,
meet with MLAs in Victoria to recommend changes to help
mitigate the tax.
3. Year-round, the Board’s GRC meets with MLAs at public
functions and in their constituency offices in communities
throughout the Lower Mainland to again describe the harmful
effects of the tax and to recommend changes.
What has worked?
We have seen some progress.
• From 1987-1994, the Board asked the government to introduce
a rebate program for first-time buyers. In 1994, the gov
ernment
introduced the First Time Home Buyers’ Program.
First-time buyers can claim a PTT exemption provided they
meet eligibility requirements.
• In 2005, we asked the government to simplify eligibility
requirements so that more first-time buyers would qualify
for the rebate. The government implemented changes in the
Budget 2006
• In 2006 we asked the government to raise the first-time
buyer exemption price threshold to $375,000 from $325,000.
The government did this in
Budget 2007
.
• In 2007, we asked the government to raise the first-time
buyer exemption price threshold to $425,000 and to give
breaks to home buyers going green. The government raised
the price threshold to $425,000 and offered sales tax exemp
tions
for ENERGYSTAR qualified appliances, windows,
doors, skylights, home heating equipment and other energy
efficient
home upgrades.
What hasn’t worked?
Each time we’ve asked the government to remove the PTT, the
government has said no. This is because the tax generates sig
nificant
revenue which rather than being earmarked for housing,
goes into general revenue. We don’t see this simply as revenue.
We see it as excessive taxation against a targeted group which
results in an unnecessary, unaffordable closing cost to home buyers.
In 2011-12, the tax is forecast to cost BC home buyers $910
million. Since the tax was implemented in 1987, it has cost home
buyers $11.9 billion.
Continued on page two
Did you know?
While overall government tax revenues increased at an annual
compound rate of 4.2% since the 1999/2000 fiscal year, PTT
revenues ballooned at a rate of 21% per year. During the same
period, the contribution of the PTT to total tax revenue has
increased to 5.2% from 1.8%.
Source: Cameron Muir, Chief Economist, BC Real Estate Association
When REALTORS® ask potential home buyers what one expense can mean the difference between signing a
contract to buy a home and sitting on the fence, they’ll likely say the same thing: it’s the taxes. The tax that makes
homes more unaffordable in an already expensive market is the Property Transfer Tax (PTT).
.
Posted on December 19, 2011 at 02:50 PM in British Columbia Real Estate News, Buying a Home, Provincial Governments | Permalink
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What Is The Property Transfer Tax
How does the First Time Home Buyers’ Exemption work?
The Property Transfer Tax (PTT) is a tax of 1% on the first
$200,000 and 2% of the remaining value of the purchase price,
when the transaction is registered at a Land Title Office.
Qualifying first time buyers may be exempt from the PTT if
they meet the First Time Home Buyers’ Program requirements.
The buyer must:
• be a Canadian citizen or permanent resident;
• have lived in BC for 12 consecutive months before the date
of registration, or have filed two income tax returns as a BC
resident within the last six years;
• never owned an interest in a principal residence anywhere in
the world at any time; and
• not have previously obtained a First Time Home Buyers’
Exemption.
In addition:
• The maximum purchase price of the home is $425,000.
There is a proportional exemption for homes priced up to
$450,000.
• The land may be a maximum of 0.5 hectares or 1.24 acres.
• The mortgage term taken must be at least one year. If the
term is less than one year, a rebate may be applied for after
the qualifying individual has resided at the residence for 12
months.
• The mortgage financing must be 70% or greater of the
purchase price (mortgage financing cannot be from family
members).
• The property must be owner-occupied (no rentals or investment
properties).
If the home exists, the buyers must move
into it within 92 days. If it is vacant land,
the buyer must build and move into the
new home within one year.
• Buyers must reside in the home for at least
one year.
Please note:
You cannot re-qualify as a first time home buyer. This rule may be different from federal programs for first time homebuyers ( e.g., the Canada Revenue Agency Home Buyer's Plan).
Posted on December 19, 2011 at 02:15 PM in British Columbia Real Estate News, Buying a Home, Canadian Real Estate News | Permalink
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September 23, 2011
Does Affordable Rental Housing Lead To Lower Property Values?
To find out the facts, we went looking for credible research on the topic. We started with the Chicago-based National Association of REALTORS® online library where we found links to more than 20 comprehensive studies and articles, some of which, in turn, reviewed and analyzed data from other studies.
The authors were academics, government, non-profits and independent researchers, ranging from Harvard University’s Joint Center for Housing Studies to the Journal of Policy Analysis and Management.
The geographic areas studied included high-density urban areas, upscale suburbs and rural areas. Typically, studies compared the sale prices of nearby homes before, during and after rental housing is built.
What did the data find?
There is increasing evidence that affordable rental units are not a threat to local property values and are instead a net plus. This is because compact development can help build stronger, healthier communities.
In Vancouver, whether it’s laneway homes or new multiple family units, there has never been an example of neighbourhood property values declining because of higher density, reports the City of Vancouver.
In contrast, quality higher density developments bring benefits including decreased pollution since more residents walk, cycle and take transit.
Most often, average home prices increase more in areas where there is new high density development than in areas where there is not, according to research in seven communities done by the BC Housing Policy Branch.
So why do some existing residents oppose affordable rental development?
Michael Geller, an architect, planner and SFU adjunct professor at the SFU Centre for Sustainability, has been involved with numerous rezoning applications throughout the Lower Mainland which have been oftentimes vehemently opposed by NIMBY groups in both public and private sectors.
Geller explains that existing residents often fear that new development will create significant traffic congestion and other friction which will reduce property values.
“The solution is to engage the neighbourhood at an early stage in the planning process” says Geller, “so that residents don’t think that a building has been designed without any input and has been thrust upon them.”
Geller advises that if the appearance of the new housing development is similar to the appearance of the surrounding neighbourhood, and if the buildings are well maintained and managed, there will be less resistance, and myths that lead to NIMBY syndrome will not become a reality.
What about property values? “If the new rental housing is at higher density compared to the surrounding area it could well lead to an up-zoning of adjacent properties resulting in higher values,” says Geller.
A key benefit to higher density affordable housing is keeping property taxes stable, according to Geller. “Infrastructure such as roads and water pipes typically have to be replaced every 50 years. If there are no new residents to share upgrading costs, then home owner property taxes are going to increase.”
To read the studies we refer to:
National Association of REALTORS® (NAR): www.realtor.org and click on Library and then Field Guides (scroll down) and then Effects of Low-Income Housing on Property Values.
BC Office of Housing and Construction Standards: www.housing.gov.bc.ca/pub/index.htm and select the section headed Planning Information and Social Housing (for studies on NIMBY and property values).
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Posted on September 23, 2011 at 09:20 PM in BC & Greater Vancouver Reports, British Columbia Real Estate News, intriguing/ intersting Real Estate Stories | Permalink
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Mortgage Rate Outlook For British Columbia
The third quarter saw a stunning collapse in government bond yields as markets digested weak US economic data and an increasingly serious debt crisis in the Euro-zone. The yield on five-year Government of Canada debt fell an incredible 150 basis points from its peak in the first quarter to 1.35 per cent, the lowest level on record.
The current level of bond yields would normally prompt a dramatic fall in mortgage rates. However, there are a number of factors complicating the normal arithmetic. First, some lenders are offering deeper discounts for the most creditworthy borrowers. This allows banks to provide competitive rates while also filtering out higher-risk borrowers. Second, the short-term cost of funding for financial institutions worldwide, thereby squeezing profitability.
Moreover, the increasing popularity of variable rate mortgages due to very low rates may be putting further strain on the profitability of mortgage portfolios. Nearly a third of mortgages in 2011 are variable rate compared with 25 per cent five years ago and just ten per cent a decade ago.
Since variable rate mortgages tend to carry lower profit margins, the shift in consumer preferences to variable rate mortgages is likely cutting into profits. Shrinking profit margins have even prompted some banks to increase their offered variable rates in absence of a change in the reference prime rate.
Our forecast for the remainder of 2011 assumes that very low bond yields will persist through the end of the year and will therefore lead eventually to a cut in mortgage rates.
The five-year fixed rate has the potential to decline to its previous historical low of 5.19 per cent and will likely average around 5.3 per cent in the second half of 2011. The one-year rate is expected to average 3.5 per cent.
Given current economic weakness and the almost certain delay in any monetary tightening by the Bank of Canada until as late as mid-2012, both long-term and short-term rates will likely stay very low for most of 2012.
We expect that rates will move higher in the second half of next year, with the five-year rate hitting 5.6 per cent and the one-year rate reaching 4 per cent.
You can read BCREA’s full mortgage rate outlook at www.bcrea.bc.ca/economics
Posted on September 23, 2011 at 09:07 PM in British Columbia Real Estate News, North American Economics | Permalink
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