The 2010 Five Year Financial Plan
May 31, 2010
The 2010 Five Year Financial Plan has been finalized and indicates an overall effective tax increase of 3.2 percent; for the Municipal portion of the tax bill. This increase takes into consideration the effect of about a 3.4 percent growth in our assessment base.
There are three major influences that affect how much your tax bill will be for 2010 relative to the increase in the budget. The first influence, of course, is the financial plan, or how much revenue the municipality needs to fund the planned service and capital programs for the year. Second, the proportion of tax collected from each property classification varies the
Third, is how your property assessment value changed relative to the overall average change in the assessment base.
What increase can property owners expect on the tax bill this year?
A Residential property assessed at the average of $374,000 (which increased from 2009 by about 3 percent) will see a total tax bill of $2,222, which is an increase of:
Municipal Tax $65 or 4.8 percent
All Other Tax ($16) or (2.0 percent)
Net increase $49 or 2.3 percent
A business property assessed at the average assessment of $481,000 (which decreased by about 10 percent) will see a total tax bill of $8,655 which is a decrease of:
Municipal Tax ($357) or (6.8 percent)
All Other Tax ($659) or (15.0 percent)
Net increase ($1,016) or (10.5 percent)
The wide variance between a 2.3 percent increase for residential and a 10.5 percent decrease for business is based on the change to the average assessment only. The proportion of tax to be collected from each classification remains almost exactly the same as last year with no shift in tax burden.
Property Tax Notices will be mailed during the last week in May.
www.squamish.ca
New Mortgage Rules
April 19, 2010
Canadian borrowers and lenders have been anticipating some new mortgage rules since the Department of Finance issued their press release in February 2010. As promised, the changes to the mortgage insurance guarantee framework took effect today, April 19, 2010.
“Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” said Finance Minister, Jim Flaherty in that press release.
The new mortgage rules target government-backed insured mortgages, making it tougher for first time home buyers as well as mortgage refinancing. In October 2008, the Government started to tighten the reigns of the Canadian housing market by fixing the maximum amortization period for new CMHC (Canada Mortgage and Housing Corporation) mortgages to 35 years – previously it was 40 years.
Residential Mortgage Financing
With current interest rates at record low levels, the Department of Finance emphasizes that it is important that Canadians borrow prudently and are able to manage their debts even if interest rates go up.
According to the Department of Finance, borrowers are now required to meet the standards for a five-year fixed rate mortgage. For example, if a borrower wants to get into a six-month variable mortgage, he can, but he’ll need to be able to qualify for the higher interest rate mortgage regardless.
The Government suggests that this new requirement of home mortgage financing will help Canadians prepare for imminently higher mortgage interest rates.
Home Mortgage Refinancing
Refinancing mortgages historically have been done for home renovation financing or to consolidate credit card debt. The thought to bundle debt into a lower interest rate is very attractive, but the Government is making this tougher for a small amount of homeowners.
Prior to today, Canadians were able to withdraw up to 95 percent of the equity of their homes during home mortgage financing. The new mortgage rule affecting government-backed mortgages will lower the maximum amount withdrawn to 90 percent of the home’s value.
Creative Mortgage Financing for Investment Mortgages
The Government now requires that those purchasing a property that will not be occupied by the owner, will require a 20 percent down payment. This still leaves the door open for creative mortgage financing options such as vendor financing, loans from family and credit cards to make up the difference.
Investment property purchased on speculation of increasing home values is always an incentive to buy, but at what cost? By increasing the down payment, these government-backed mortgages don’t have to assume as much risk.
With the busy real estate months of spring and summer just around the corner, will borrowers be adversely affected by these new mortgage rules? Or, will the average borrower meet the new requirements and continue with their mortgage refinancing or become a first time home buyer anyways?
HST a factor in price paid for resale homes
March 30, 2010
While the harmonized sales tax (HST) doesn’t directly apply to the selling price of a resale home as it does with new homes, that doesn’t mean buyers of resale homes are completely off the hook for the new tax.
According to industry and tax experts, the homebuyer and seller still face a slightly higher bill because the HST will apply to such things as real estate fees, home inspections, appraisals and the costs of clearing title.
However, it won’t affect other services associated with real estate transactions including bank fees — which are not subject to the GST and won’t be subject to the HST — and notary public and lawyers’ fees, which are already subject to the GST and the provincial sales tax, which add up to the same additional cost as the HST.
As well, buyers of resale homes would be subject to the new tax for such things as renovations, maintenance, upgrades, environmental consultants and moving expenses.
“It can add up, but it’s nowhere near the same degree as you’d pay in HST on a new home,” Michael Welters, a tax lawyer with Bull, Housser and Tupper, said in an interview. "I don’t think the HST will be significant. I think it will be a minor addition in the overall cost.
“But it can still [increase costs]. You can easily pay $2,000 for a small move in the Lower Mainland.”
Neil Davie, real property section chair, Canadian Bar Association, B.C. branch, agreed that the new tax will have an impact on transactions. He said, for example, an environmental consultant may have to be hired by the buyer of an older house to investigate an underground storage tank. That cost would increase with the HST, he added.
Cameron Muir, chief economist for the B.C. Real Estate Association, said in an interview that there’s an added cost for resale homes, but that the real impact will be with new homes.
“It [the HST] will add to closing costs for resale homes,” said Muir. “It will take a bite, but not dramatic enough to have a significant impact on the marketplace.”
So how does this all reflect on the bottom line of buying a resale home?
If someone buys a $450,000 resale home, there will be about $16,500 in closing costs for such things as appraisals, inspections, survey fees and realtors’ fees.
With the HST, the buyer will pay more than $1,100 more due to the new tax.
bmorton@vancouversun.com
© Copyright © The Vancouver Sun
Squamish Sales Up
April 21, 2007
The total number of sales in Squamish was up 559 in 2006 from 435 sales during 2005
The number of single family homes sold was up by 6 per cent from 24 in 2005 to 257 in 2006, with little price increase.
Sales of town houses were up by 16 per cent, from 146 in 2005 to 170 in 2006. Prices increased 14 per cent.
The market is expected to remain steady and price increases to be modest for 2007.
Million-dollar homes will be common
April 21, 2007
Real estate market stronger than ever(31/12/1969)
Million-dollar homes will be common
By Sylvie Paillard, Reporter
Squamish might never see an end to the booming real estate market, according to market sources in Squamish’s real estate market. With the continuing development of Highway 99, developers are flocking to Squamish to meet the demands on the city of Vancouver’s newest bedroom community.
There is a strong demand from North Vancouver and with the commute to Vancouver now shorter than from the Fraser Valley, there is a lot of interest from the valley. There are currently eight $1,000,000 plus homes for sale in Squamish, and in a couple years time, it will be quite common to see $1,000,000 homes.
But the Squamish market is still attracting young urban dwellers hoping to buy moderately-priced homes in their favourite recreation destination, and the future looks bright for Squamish. Squamish believes it can sustain this growth and that it will probably become a market town of the Sea to Sky corridor, with all the stores and shopping malls experienced in the city. Pemberton and Whistler will now go to Squamish to shop, rather than having to drive the extra miles to North Vancouver.
The fact that 20-something professionals can afford a home anywhere in the Lower Mainland is “man-bites-dog” news, according to the Vancouver Sun’s recent three-page spread on the virtues of Squamish real estate. Moderately priced homes and a stabilization of the number of under $400,000 homes are on the rise. There was a substantial increase in the sale of detached and attached homes from July 2004 —when nine detached and four attached sold — to July 2005 — when 28 detached and 14 attached sold, according to the Real Estate Board of Greater Vancouver (REBGV).
The trend mirrors a recent REBGV report stating that the residential housing market “remains brisk” throughout Greater Vancouver, but that a higher demand than supply is not eliminating affordable housing prices.
“While prices are increasing, there are many properties priced within affordable ranges,” said REBGV president Georges Pahud.
Developments in downtown Squamish will offer townhouses and condos at under $300,000 while $300,000 ranch-style homes are currently available in Valleycliffe and Brackendale. And Garibaldi Highlands continues to see rising real estate prices.
The trend of increasing housing prices in Squamish began in 2002 and continued to rise with the low supply of listings in 2003 and 2004. The increase may have seemed extreme, but it actually brought Squamish to a normal level. Prices continue to rise due to increased international attention, high gas prices and highway construction. But the price increases are merely on par with other communities in the GVRD.
Although the REBGV still lists the Squamish benchmark price at $422,688, the board can get facts wrong because the selling of several newly developed townhouses may not make it onto their website, so this price is not completely accurate.
Housing Starts
September 15, 2009
• Housing starts in August:
Total 150,400
British Columbia, urban centres 17,000
Canada, rural areas 18,600
Canada, urban centres 131,800
Canada, singles, urban centres 54,200
Canada, multiples, urban centres 77,600
Atlantic region, urban centres 8,000
Quebec, urban centres 41,000
Ontario, urban centres 42,000
Prairie region, urban centres 23,800
Source: CMHC
Home Renovation Tax Credit
May 28, 2009
The 2009 federal budget provides a temporary incentive for Canadians to implement new renovation projects or accelerate planned future projects.
The temporary HRTC provides a 15% income tax credit on eligible home renovation expenses for work performed or goods acquired after January 27, 2009 and before February 1, 2010.
The credit may be claimed for the 2009 tax year on eligible expenses over $1,000 but not exceeding $10,000 and will provide up to $1,350 tax relief.
Eligible:
- Renovating a kitchen, bathroom or basement
- New carpet or hardwood floors
- Building an addition, deck, fence ore retaining wall
- A new furnace or water heater
- Painting the interior or exterior of a house
- Resurfacing a driveway
- Laying new sod
Ineligible:
- Purchase of furniture and appliances (ex: refrigerator, stove and couch)
- Purchase of tools
- Carpet cleaning
- Maintenance contracts (ex: furnace cleaning, snow removal, lawn care, and pool cleaning)
*Source: Canada’s Economic Action Plan Budget 2009 Jan 27, 2009
Mortgage rates are at historical lows right now, by refinancing your current mortgage you may be able to borrow more money to fund your renovation project and keep your payment the same, or even decrease it.
For a free mortgage evaluation call Suzie West at 604.849.4610
www.suziewest.com
Large retail has arrived in Squamish
April 21, 2007
Large retail has arrived in Squamish with Wal-Mart and Home Depot set as the first anchor tenants in a line of quality retailers soon to open up shop in Squamish.
Soon Squamish will have all the city amenities in one of the most beautiful places in Canada.
Squamish’s rock solid real estate market with it’s diversity of new and pre owned homes means there is something for everyone. With the word spreading quickly about what a value compared to other communities and the 2010 Olympics just around the corner, the time to purchase in this growing waterfront and mountain community is now.
As referenced in the Vancouver Sun article on October 14th Squamish was named with 9 other communities as the next hot spots.“House hunters put off by the out-of–reach prices in Vancouver’s overheated neighborhoods are finding good values in comminutes outside the buying frenzy” While sales in all area of the market are up over this time last year the prices have been remaining steady, with modest gains in specific areas.Prices for existing residential properties remain a great value as the new construction boom for the area has prices on that product rising as the cost of construction continues to climb. The most active market segment has been town homes that range in price between 275,000 and 400,000. Most of these are existing homes but you can still find new product at the 400,000 range and just above.
The 600 million dollar Sea to Sky highway improvement project is moving forward on time and will soon give commuters an estimated 45min drive to downtown Vancouver and 30 min drive to Whistler on one of the most scenic highways in BC.
Squamish’s life style is a balance of outdoor beauty and recreation with fine dinning, theatre and the arts. Squamish offers a true sense of community with its small town charm with big city amenities.
www.blacktuskrealty.com
Vancouver housing market still strong: CMHC
May 21, 2007
The real estate market in Greater Vancouver is expected to remain strong over the next couple of years, says the Canada Mortgage and Housing Corporation.
CMHC says the resale market and new home construction will hold steady, with price increases expected to moderate.
Corporation analyst Robyn Adamache said housing starts will stay at the same level in 2007 as last year, at about 19,000 new homes.
But she noted that demand for housing is high because of B.C.‘s strong economy, and that there could be more construction if it weren’t for a couple of limiting factors.
“Builders are being challenged with increasing construction costs as well as labour shortages that are keeping projects going longer. So at this point, they’re unable to start new projects until they get the old ones finished.”
In the resale market, about 35,000 Lower Mainland homes will be sold this year, and the same number next year, Adamache predicted.
Growth isn’t expected, because high prices are keeping would-be first-time homebuyers out of the market.
Adamache said prices are expected to increase in the next two years — about eight per cent this year and about five per cent in 2008.
credit: cbc news
CHMC expects sellers market to continue next year.
November 12, 2007
By Derrick Penner
Vancouver Sun
Fuelled by job and population growth, average house prices are expected to continue to rise through 2008.
Expect the average single-family house price to hit $900,000 in Greater Vancouver next year as new jobs and new residents keep the city in a seller’s market, according to Canada Mortgage and Housing Corp.
However, while CMHC, in a forecast released Friday said the region’s average price across all property types will rise nine per cent in 2008, the market will have reached “cruising altitude,” according to CMHC analyst Robyn Adamache, who used the analogy of an airplane flight to describe Vancouver’s position in the market cycle. “The ride up is always exciting, kind of thrilling, a little scary,” she said in an interview. Now, however, the flight has levelled off and the city has “so far avoided” the turbulence that has beset American real estate markets.
In the market cycle, Adamache said sales peaked in 2005, and inventory levels of unsold homes are rising. CMHC revealed its major forecasts for 2008 real estate markets during its annual housing outlook conference held at Vancouver’s Hyatt Regency hotel. With the Vancouver region experiencing still strong economic conditions, Adamache believes there is still room for prices to rise.
Adamache’s forecast anticipates the arrival of some 35,000 new residents to the area and the creation of 33,000 new jobs, adding “its job growth and population growth that supports demand.” She is forecasting that demand will generate the need for 18,500 new housing starts in 2008, down from an estimated 19,000 this year. Adamache is also forecasting 37,200 unit sales across Greater Vancouver in 2008, down from an estimated 38,700 this year.
Mark Belling, president of Fifth Avenue Real Estate Marketing Lt., offered an assessment of the Fraser Valley’s prospects during the conference’s panel discussion. He said prices there would rise between three and eight per cent, depending on property type and location. Belling said single-family houses will see the least amount of appreciation in 2008, as they did in 2007. He said in surrey alone, some 2,900 building lots could be put onto the market in 2008, when there is likely only demand for 2,500.
CMHC regional economist Carol Frketich said uncertainty in U.S. housing and investment markets is the biggest threat to B.C.’s real-estate outlook, but so far the damage there hasn’t cut too deeply. Expected U.S. housing starts this year of about 1.2 million are the lowest in 14 years, Frketich said, and “there is no debating that housing in the U.S. is in recession. However, U.S. job, income, manufacturing and export growth are all in positive territory, which Frketich said is expected to keep the overall American economy out of a recession. The decline in U.S. construction does hurt B.C.’s lumber sector, Frketich said but overall B.C.’s real estate sector will head into its seventh straight year of seller’s-market conditions.
Frketich’s forecast is for 33,250 housing starts in B.C. in 2008 and 96,671 sales – both down slightly from 2007. The average B.C. home price, which includes all types of residential property, is anticipated to climb a further six percent to $464,500 in 2008. “As long as people can afford to pay the prices, they will continue to push up prices,” Frketich said in an interview. “[The forecast] is a plateau in resale activity, new home construction and price growth.”
Sales for 2007 ranked as the second highest on record
February 22, 2008
Lisa Bjornson
Black Tusk Realty
The Greater Vancouver Real Estate Board has reported that housing sales for 2007 ranked as the second highest on record and Squamish was no exception. In fact, when you take into account sales of property not listed through the MLS service, this is the highest level of sales for Squamish ever. One should keep in mind when comparing the Squamish real estate market to the Lower Mainland that the total sales of units reached 679 and 38,050 respectively. So when we talk about sales in comparison, the volume of sales for Squamish is still a small number.
Like 2006, the biggest area of growth for units sold was in apartments. There was a 41% increase in 2007 with 224 sales compared to 132 sales in 2006. Apartment sales now account for 1/3 of all sales for the Squamish market. This number is expected to climb as affordability remains a factor along with the ease to maintain, allowing the owner more time to do other things. Over the past year we have seen prices for apartments stabilize. The median selling price rose by 15%: the median price for 2006 was $251,750 and rose to $295,000 in 2007. This is the smallest gain in the past three years. The largest gain in median price was 2003 to 2004 when there was a 31% increase in the selling prices. Several new developments coming to the market over the next 5 years have large numbers of apartments so this will remain a growing market segment. However, with inventory levels rising for apartments, the overall effect should see prices remain moderate.
Sales of town homes saw a 10% increase in volume with sales of 190 units in 2007 versus 170 units in 2006. Prices rose by 21% over last year with the median price for 2006 at $308,500 whereas in 2007 it reached $389,900. Like apartments, many of the new developments planned for Squamish over the next five years have a large town house component. Many of the design elements have features you would find in a house and with the ease and affordability factor, demand should remain strong in this area for both new and resale. Presently, town homes account for 28% of all product sold and this figure will rise over the coming years as prices for residential single family homes continue to reach new heights.
Single family homes made a surprising comeback after the slow down in both sales volume and price increase between 2005 and 2006. There were 265 reported trades by MLS for 2007, up just slightly from 2006’s total of 257. The most significant change was a price increase of 18% year over year. The median price increase from 2005 to 2006 was only 1%, while the increases in median price in 2007 to $470,500 was up from $386,500 in 2006. Unlike town homes and apartments, this is one area where development of new subdivisions is slow. With the cost of construction and the shortage of trades, this market segment will remain challenging. In 2003, 62% of all sales that occurred in Squamish were single family residential; in 2007 that number declined to 39%. The number of homes sold is expected to remain unchanged and BCREA and Royal LePage predict that the increase in prices will be more moderate for 2008, not going into double digits as was the case last year.
The general outlook in all areas, National, Provincial and locally, is for steady sales volume and prices to move upward slightly in the year ahead.
The 10 mistakes home sellers make
April 4, 2008
By Barbara Corcoran
If you’re thinking of selling your home in today’s highly competitive market, you need to avoid the following mistakes:
The open house
1. Hosting an open house is one of the most popular ways to let people know that you’re home is for sale. There are, however, certain instances when they can be a big mistake. Hosting lots of open houses is not good. Very often open houses are used as an expression that you are doing something, or hosting something special. It’s an event. If you have an event that constantly happens, it loses its allure. They have to be well planned and there should be a reason for them, like a considerable drop in price. If they are not well utilized, they can be a waste of your time, and reduce excitement and expectations. Also, you tend to have a lot of timewasters coming, which can make your home look like a shopworn and unwelcoming.
2. When you’re selling your home, ensuring it is always available for showings can be inconvenient. When it comes to setting appointments, sellers often make the mistake of being inflexible. Compared to any other age group, generation Y buyers are the most likely to purchase a home in the next two years. They’re young professionals under 30 who work long hours and have limited spare time. Not showing your house in the evening is like sending away a big chunk of your market.
3. Don’t hang around like a bad smell during the open house; it makes buyers uncomfortable. Buyers need to see themselves living in your home. With you there, watching their every move, you make this leap of imagination all but impossible.
The negotiation
4. A major mistake sellers make when they put their house up for sale starts with their language. How would you feel about a seller, or real estate broker who says, “the price is firm”? It conveys many things in one breath. It says, that they are unreasonable. It also says that their home is overpriced. Most importantly it says that they have laid out an “unwelcome mat”.
5. Negotiating can be really stressful, especially when it deals with something as important as what your home is worth. A big mistake sellers make is not considering every offer presented, even the low ball, and possibly insulting offers. The way people bid has nothing to do with the property itself, so you need to allow for people’s differing styles. You should consider every bid, and offer a counter bid. You should never take a bid personally, it isn’t meant that way. Granted, there are wise guys out there but more often than not the bidder will move up, they just want to get the ball in the air as low as they can.
6. Many sellers refuse the first offer, which can also be a big mistake. First bids often create a sense of confidence in the seller. They think that if one person has bid, there will surely be more and better bids to follow. The very first bid is often the best one you will get. Whatever the bid is, however low you think it is and however insulted you might be, you need to consider that you may not get another hat high.
Home interiors
7. We all have it, that leaky faucet, or the doorknob on the back door that needs repair. If you’re selling your home you need to know how much these minor things matter. Buyers have something you don’t have; a fresh pair of eyes. They see things that you don’t see anymore. Make every possible change you can make. If you don’t you will pay dearly. The buyer will want to be compensated for every little defect and will negotiate your price down, essentially getting you to pay for those repairs yourself anyway, but by their terms. It is better to have everything fixed beforehand when you can control what it is going to cost.
8. We all take pride in our homes, we like artwork on the walls and we like to be surrounded by photos of people we love. In fact we think these things give the house plenty of appeal to visitors. This is a mistake when it comes to selling. People need to visualize how they can make the space their own. Get rid of your photos and replace the art you have with something more neutral.
9. A big mistake sellers make is having a home that looks more like a dungeon than a place you’d actually want to live. We get comfortable, we close the blinds, our lampshades get old and dirty and our windows blacken with dust. Before you let any potential buyer into your home you need to let in the light. Go crazy: clean the windows, replace the lampshades, up the wattage of your light bulbs, pull the curtains down — remember, the lighter the better.
Pets
10. Pets are a big no-no when it comes to sellers. They are like the ugly in-law nobody likes; they have to be taken away, or hidden. As much as buyers smile and say, “cute dog”, they are gritting their teeth and don’t want the dog in the way when they are looking at a new home. Also, animals leave odors in your home. People think a house with animals is less clean, even if it’s not. If you can hide or ditch the pets, do.
For more of Barbara Corcoran’s real estate tips and advice, visit barbaracorcoran.com.
Lure of Squamish piques interest
April 25, 2008
Lure of Squamish piques interest
By SUSAN M. BOYCE, 24 HOURS
vancouver.24hrs.ca
2010. The buzzword of the province. And as speculation about all things real estate runs rampant, there are few municipalities where the impact of this almost magical number is being felt more than in Squamish.
The self-proclaimed Outdoor Recreation Capital of Canada, Squamish is seeing prices skyrocket.
According to the Real Estate Board of Greater Vancouver, in 2007, housing prices in this suburban community climbed faster than any others in the Lower Mainland.
New construction finishing details are going beyond upscale to become unabashedly luxurious, and an exploding number of urbanites giving in to their fascination with the active lifestyle.
Multi-family developers are responding with innovative, targeted amenities including on-site bike and kayak storage, built-in wine fridges, and even a rock climbing wall (found at Red Point – a 185-unit condo development located just south of the Mamquam Tidal Channel).
Coastal Village, a multi-phased, six-acre, master-planned community on the banks of the estuary, is incorporating the community’s first public swimming pool into its design as well as what builder Thomas Ivanore, president of Bel Tar Holdings, says is the most technologically advanced dike system in the province.
Just down the road, Streams, part of Solterra’s Eaglewind development, boasts tennis courts, sports lawns, and the Yaletown-styled finishing that are now de facto standards.
Single-family developments are equally lavish.
Thunderbird Creek by Townline Homes, and University Heights by University Heights Developments come with an attention to detail, square footage and quality that rival tony neighbourhoods like West Vancouver or Shaughnessy.
And while increased demand is clearly driving prices up, Squamish still represents a value many consider better than equivalent suburbs to the east of Vancouver.
Neat, tidy homes with some age can be found for under $450,000, and for $600,000 you’ll get most of the bells and whistles plus a minimum of 2,500 square feet of living space – typically much more.
A mansion of 5,550 square feet is currently listed for $1.5 million – a fraction of the cost if the same home was to be located in the British Properties.
Apartments offer the broadest range of product both in new and resale.
Older, solid and often renovated units are still available for under $250,000.
But with new condos now starting in the $350,000 range, many are choosing the security of a home warranty and contemporary design.
Penthouses at Aqua are currently at the top of the scale, with a price tag of up to $820,000 for more than 2,100 square feet.
Townhouses, the most limited market choice, are available for less than $350,000 if you look.
But as with condominiums, the allure of new construction for as little as $100,000 more is tough to ignore.
Fewer Sales and Large Inventory Cool Housing Market
August 4, 2008
Fewer Sales and Large Inventory Cool Housing Market
Vancouver, BC – July 16, 2008. British Columbia Real Estate Association (BCREA) reports
residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 34 per
cent to $3.31 billion in June, compared to June 2007. Residential unit sales fell 36 per cent to 7,133
units during the same period. The average MLS® residential price in the province was $463,458,
up 4 per cent from June 2007.
BC MLS® Residential Market
“Weaker consumer confidence and eroded
affordability are slowing home sales in the province,” said Cameron Muir, BCREA
Chief Economist.
Seasonally adjusted MLS® residential unit sales in June were near 2002 levels. During the first half of the year, BC MLS® residential sales were down 22 per cent to 42,907 units, when compared to the same
period last year. The average residential price rose 9.6 per cent to $473,536 over the same period.
“The combination of a larger inventory of homes for sale and fewer home sales have tilted most BC
markets in favour of homebuyers,” added Muir. “This means little upward pressure on home prices
in many markets.” Victoria was in balanced conditions, while Northern Lights remained a sellers’
market in June. “Despite a dip in home sales, inventories could soon edge lower as home sellers
adjust their asking prices to reflect market conditions.”
Home Improvements That Don't Pay
October 15, 2008
By SONYA STINSON, Bankrate
Most people’s idea of a dream home is a haven they would live in for the rest of their lives. But the reality is, you’re probably going to be selling your house someday.
In fact, in a 2007 report, the National Association of Realtors said the median length of time recent sellers had spent in their previous homes was six years.
So before you dive into a major renovation project to give a house your special signature, consider how long you’re likely to stay.
“Where a lot of people get into trouble is that they go into a home that they’re only going to be in for a relatively short period of time, and they start doing renovations and additions that are sort of on their fantasy list, but that they’re not going to be there long enough to really enjoy,” says Jeff Beneke, author of more than a dozen home improvement books, including his most recent title, “The Fence Bible.”
“And when they turn around to sell, they’re just not going to get their money back.”
Here are four reasons to proceed with caution, particularly if you want to maximize your chances of a profitable resale later on.
1. High maintenance If your upgrade requires too much upkeep, buyers may view it as more of a nuisance than an asset.
A prime example is an in-ground swimming pool, which can cost a small fortune to install, secure, heat and clean. That may not be an issue in California or Florida, where the possibility of year-round pool parties makes it easy to get your money’s worth. But in a location where the season for outdoor swimming is much shorter, a pool can be a risky investment.
“Real estate agents anywhere, except in exclusive neighborhoods of warm climates, will tell you that a swimming pool can be more of a negative than a positive on resale,” Beneke says.
“My sense is that for what it costs to put a swimming pool in your backyard and maintain it, you can join the nicest swimming club in town, buy a car to get you there and back, and still have some cash leftover.”
Tim Carter, the syndicated columnist from askthebuilder.com, says homeowners often assume that a swimming pool adds value to a home.
“But if you talk to real estate brokers, some people may not look at a home that has a swimming pool because they think it’s a liability,” he says.
2. Overdressed Don’t make your house look like the guest who wore a ball gown to a picnic. Luxurious amenities can be a good selling point, but only if they blend in with rather than outshine what the neighbors have.
“Buyers are becoming more and more savvy, and they understand that having the nicest home in the neighborhood can be a bad thing when it’s time to sell,” says Columbia, S.C., Realtor Brandon Hoffman.
“A lot of times, if an owner overimproves for the value of the neighborhood, they won’t get their money back. It can also make the home more difficult to sell at fair market value.”
A case in point: While homebuyers love a kitchen renovation, it is possible to get carried away.
“I don’t think we need to see granite countertops in entry-level housing,” says Pat V. Combs, a Realtor in Grand Rapids, Mich., and immediate past president of the National Association of Realtors. “I think that’s overkill. You have to improve for your specific marketplace.”
While those glossy, upscale shelter magazines may be great sources of inspiration, trying to copy a cover story kitchen can be a dangerous move.
“One of the biggest-ticket items anybody does in remodeling is the kitchen,” Beneke says. “From a resale standpoint, I think it’s crazy to start drawing your kitchen remodeling ideas from high-end home magazines.”
Instead, Beneke suggests getting a peek at some of your neighbors’ kitchens.
“If the kitchen remodels in your neighborhood include moderately priced cabinets and something other than expensive granite countertops, then you’re taking a chance if you go the more expensive route,” he says.
3. Too personal You remake a cookie-cutter house in the image of your own exquisite taste. Nothing wrong with that. Just don’t be surprised if your masterpiece is underappreciated at resale.
A vacation in Tuscany inspired a $160,000 makeover of the interior of Dane Madsen’s Las Vegas home with travertine floors, exposed weathered beams, stone walls and murals painted by a local artist.
When Madsen got divorced 18 months later and put the home on the market, Realtors told him some house hunters turned to leave as soon as they stepped inside the front door. One even called Madsen directly to offer $100,000 less than the asking price as compensation for having to tear out all the changes if he bought the place.
Madsen did sell the house after repainting the walls a neutral color — including painting over the more personal of the two murals — and making some other adjustments. He says he has no regrets about the renovation, though he admits it was “way overdone.”
Miami Realtor Moe Veissi has seen everything from a water canal running through a house and flowing into a pool, to a bathroom with rock walls, live palm trees and other lush foliage, and an automatic misting system to keep it fresh.
“That’s the kind of interesting thing that maybe if you take a vacation to Tahiti or Maui you’d love to have for three or four days, but I’m not sure that it’s part of the norm,” Veissi says.
“And any time you deviate, no matter what the improvement is, from what is a fairly traditional, single-family house, you run the risk of improving in a fashion that will not lend itself to additional dollars.”
4. Unpopular If no one else on the block has a room like the one you’re adding, or all the other houses boast the very feature you’re getting rid of, watch out.
For example, although converting your garage into an office, bedroom or playroom can be a less expensive way to add square footage and create more living space, it can have drawbacks. Potential homebuyers might miss the sheltered parking more than they welcome the additional room, especially if other homes in the neighborhood have garages.
Diana Bull, a Santa Barbara, Calif., Realtor, says a garage conversion is a resale dud in her market.
“People just shy away from it, and I think it’s because … the guys, particularly, have a lot of toys — cars, motorcycles, off-road vehicles — so garages are real popular here,” Bull says.
The same is true in Hoffman’s South Carolina neck of the woods.
“The additional square footage (from a conversion) doesn’t increase the value of the home very much, if at all,” he says. “Sometimes it can actually have a negative impact on the sale.”
If you decide to go ahead with such a transformation, be sure to check your local zoning regulations to see if you’ll have to replace the lost parking space.
Finally, Beneke offers a useful tip for whatever type of home renovation you may be contemplating.
“I always suggest that before you do anything in a house, you live in it for a while,” Beneke says. "I’ve gone through this myself. I write about home improvement, but I also fix up old houses. Typically, when I move into a place, I prioritize what needs to be done, and I’m always amazed a year later when I go back and look at that list, how much it’s changed.
“Having lived in the house, you start discovering that you might have problems that you didn’t realize were problems before … but often things that you thought were problems have faded in importance. Just living in a place can help you get a much better priority list in order.”
Benefits of Using a Realtor to Sell your Home
November 24, 2008
Selling your home is a complex process that can be stressful and time-consuming. An experienced Realtor has the knowledge, skills, and connections to help you through the process every step of the way. Consider the following benefits of working with a Realtor:
Professional Experience:
With knowledge and training in marketing strategy, negotiation tactics, and the workings of the current real estate market, a Realtor will be able to guide you through the steps of the home-selling process and be able to explain exactly what to expect. S/he will make you aware of your rights and responsibilities, work with you to strategize the best moves according to your own goals, discuss financing options, and point you in the direction of other specialized professionals who will aid you in different stages of the process.
Best Price:
Realtors have their fingers on the pulse of the current real estate market, and will know what comparable properties in your area are selling for. They have the resources and knowledge to establish the best asking price and to attract the highest selling price. With access to their company’s professional marketing resources and connections, they will ensure potential buyers are immediately made aware of your home and market the property to sell as quickly as possible and for the most money.
“Showcasing” Experience:
Your Realtor will know the importance of a property’s first impression. S/he will have experienced first-hand, for example, the impact a property’s “drive-up appeal” has on the rest of a potential Buyer’s experience of your home. Your Realtor will be able to offer you tips and information on how to get your home in the best selling shape possible, in order to sell your property quickly and for top dollar.
Access to Qualified Buyers:
Realtors save time and effort by dealing only with qualified buyers. They have access to a pool of pre-screened and pre-qualified buyers who are serious about buying a home in your neighbourhood. Realtors work hard to develop this base of qualified buyers which will become an invaluable resource for you.
Negotiation Skills:
Realtors serve many functions, but perhaps the most important is their role as primary negotiator on your behalf. Your Realtor realizes your goal is to sell your home as quickly as possible, and for the most money possible, and will work closely with you during the negotiation process to facilitate this goal. Realtors bring to the process the knowledge and skills to draw up legally binding contracts, to assist in negotiating offers and counter-offers, and to offer counsel and perspective as you work toward your selling goals.
Eaglewind up for Georgie, SAM awards
December 15, 2008
Downtown Squamish’s skyline is changing at a rapid pace, and some of the new housing developments cropping up are earning some high praise from the industry, including a nomination for best residential development of the year. The Canadian Home Builders’ Association of B.C. recently announced five Georgie award nominations for Solterra Development’s Talon and Summit Views developments spanning the northeast end of downtown. The developments, part of the Eaglewind project, are for best low-rise multi-family; most innovative design; successful public-private partnerships; and community enhancement, and best residential development.
Meanwhile, the national Canadian Home Builders’ Association has nominated Talon for a SAM award for best community design. “That’s just a fantastic acknowledgement from the industry,” said Solterra vice-president of development Mike Bosa. The award nominations can be attributed to the diversity the entire project provides, he said. “We managed to incorporate the carriage homes as well as your standard tandem townhouses as well as duplex homes. And we were able to provide a larger variety of price ranges for homeowners in such a small project as Talon.” “We’ve taken special time with the Eaglewind project, and that had a lot to do with the nomination and because it is a masterplan we’re able to put different types of housing in the development, so overall community, we’re not going to have one type of home,” said Bosa.
“For us to be recognized and in turn the District of Squamish… our goal is that people truly get to see what’s available in Squamish.” Eaglewind’s Talon project was recognized for the innovative design it used in creating carriage homes, which are located above parking or courtyard spaces, and differ from typical apartments as more isolated units. “There’s no internal hallways and also your home has double decks, usually, and double light, in the front and the rear,” said Bosa, who added the option was made possible due to the property’s broad land use regulation. “It was pretty wide open what we could provide to the district.” Eaglewind was also nominated for the public-private partnership established with the district in dedicating 11 acres of land to tennis courts, a community garden, dog park, walking trails, children’s playground and lawn bowling.
“That’s just recently turned over to the district,” said Bosa. “Hopefully the people in the community know that it’s there. It’s a little hidden gem at this point. But we’re getting more and more people to see it, and the tennis courts are there and our goal is that eventually these tennis courts get programmed with kids’ activities or lessons.”
Parts of the massive project are still under construction, and the push is on to complete it all in 2009, said Bosa. Talon is currently occupied. In early 2009, a freestanding commercial building and piazza will be ready for occupation. The Streams townhouse complex should have occupancy in January 2009, said Bosa. And the Rockcliff complex of 90 condos and six-storey building with senior centre and commercial space, should be completed by May of 2009, he said.
By Reporter
Sylvie Paillard
squamishchief.com
Why Hire a Realtor?
February 21, 2009
- Realtors do this for a living. They have a great deal of experience selling homes.
- You open yourself up to a greater volume of exposure to prospective buyers, since realtors find homes for buyers for a living. This exposure increases your chances of finding a buyer that matches your needs and subsequently speeds up the selling process.
- A realtor is required to be familiar with up-to-date market values and will work with you to set a competitive asking price.
- Window shoppers will be deterred from wasting your time; the realtor will be predominantly dealing with serious prospective buyers.
- Realtors are skilled in reading contracts and will be sensitive to any fine print that you may have dismissed as unimportant.
Self-employed? Mortgages are easier than ever
March 13, 2009
More Canadians than ever before — almost 20% of workers, according to Statistics Canada, are now in the category of self-employed. Until recently, it could be difficult to obtain a mortgage unless you were on a company payroll. Now lenders and mortgage insurers are responding to the unique needs of the self-employed, resulting in more options than ever before. You may be surprised to learn how easy it can be to obtain a mortgage for a primary residence, as a self-employed person. You will also discover that you have the choice of most options in the marketplace, with terms of up to 35 years, fixed- and variable-rate mortgages, and even high-ratio, insured mortgages.
What’s changed: income statements. Most notably in recent years, many lenders have loosened their documentation requirements for stating self-employed income. While qualifications vary, most mortgage products currently on the market have only few minimum requirements:
• You have been self-employed in the same line of work for at least two years. Proof required: Business license or articles of incorporation; income tax returns; statement of business activities; or financial statements.
• You have a good personal credit history. Proof required: A standard credit check.
• You have no tax arrears outstanding. Proof required: A recent Canada Revenue Agency Notice of Assessment.
As well, some lenders require that the property you’re buying meet certain conditions, and most will need a property appraisal to confirm value.
A Canadian Accredited Mortgage Professional (AMP), has access to the widest range of lenders that offer financing solutions for the self-employed. An AMP can review your needs to find exactly the financing for you, for your current priorities and goals.
Weigh your priorities when choosing your mortgage
Whether it’s your first-ever mortgage or one of many renewals, there are plenty of options available. Here’s a quick face-off of what the basic choices give you:
Conventional: More savings for you plus improved cash flow from not having to purchase mortgage default insurance (CMHC requirement).
High-ratio: Ability to either enter the market sooner or to free up cash for large expenditures.
Fixed Rate: Protection from rising interest rates, plus the knowledge of how much principal you’re paying off each month.
Variable Rate: A lower interest rate, plus the potential to chip away even more from the principal, if rates fall.
Closed: A lower interest rate than a comparable open mortgage, in return for locking in until end of the term. Also offers prepayment privileges.
Open: The flexibility of being able to pay off as much of your mortgage as you like — even all of it — whenever you choose.
An Accredited Mortgage Professional (AMP) can review the buying process with you from start to finish, to your best convenience. They offer unbiased professional advice with your best interest in mind. An AMP meets stringent requirements and is bound by the strict Code of Ethics of the Canadian Association of Accredited Mortgage Professionals (CAAMP).
When it comes to finding your best financing solution, and accessing your best options, call your Accredited Mortgage Professional (AMP).
Michele Ellis BA, AMP
Accredited Mortgage Professional