--The 2009 Royal LePage Recreational Property Report found that 59% of British Columbians agree that a cottage is a good long-term investment and 43% think a recreational property provides a good financial return on investment. Sixty-three per cent said they would be most likely to purchase a cottage on a lake.
--British Columbians are the most willing Canadians (62%) to make financial or lifestyle changes in order to buy a recreational property. One in five (22%) would purchase with friends or family members – the highest rating in the country – 13% would rent out during the year and 11% would move into a smaller, more affordable primary residence to make a vacation home purchase.
Monday, August 31, 2009
Why now is an ideal time to buy
Given the current national credit-crunched lending environment and the slower real estate market – which has shifted to a buyers’ market – there are several reasons why now is an ideal time to purchase your first home, upgrade to the house of your dreams, purchase vacation property or buy a real estate investment property.
With purchase prices levelling out and interest rates sitting at “emergency” levels – lower rates than your parents and possibly grandparents have ever seen – you should be able to more easily obtain financing for your property.
During a buyers’ market in the real estate cycle, sellers are far more flexible and willing to work with you because they are not receiving much traffic through their doors, let alone being bogged down with multiple offers. And in cases where property has been on the market for quite some time, negotiating a sales price should offer you even more added flexibility.
When it comes to choosing a home that meets your needs, now is also a great time because the inventory of available properties is plentiful. You will have multiple properties to look at and not be rushed into making a hasty decision with a long list of other buyers ready to make a purchase.
First-Time Buyer Incentives
When it comes to making your very first purchase, the latest federal budget offers a couple more reasons why now is the optimal time to take the plunge into homeownership.
First, the budget proposed a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.
The budget also proposed a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date).
You are considered a first-time homebuyer if neither you nor your spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
Renovation Perks
If you’ve been thinking about doing some home renovations to a property you’d like to purchase, a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010 that was proposed in the latest budget may help in your decision.
The credit will apply to expenditures in excess of $1,000, but not more than $10,000, for the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. You can claim this credit (including expenditures made in January 2010) in your 2009 income tax returns.
As always, if you have any questions, I’m here to help!
With purchase prices levelling out and interest rates sitting at “emergency” levels – lower rates than your parents and possibly grandparents have ever seen – you should be able to more easily obtain financing for your property.
During a buyers’ market in the real estate cycle, sellers are far more flexible and willing to work with you because they are not receiving much traffic through their doors, let alone being bogged down with multiple offers. And in cases where property has been on the market for quite some time, negotiating a sales price should offer you even more added flexibility.
When it comes to choosing a home that meets your needs, now is also a great time because the inventory of available properties is plentiful. You will have multiple properties to look at and not be rushed into making a hasty decision with a long list of other buyers ready to make a purchase.
First-Time Buyer Incentives
When it comes to making your very first purchase, the latest federal budget offers a couple more reasons why now is the optimal time to take the plunge into homeownership.
First, the budget proposed a $5,000 increase to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.
The budget also proposed a $750 tax credit for first-time homebuyers to help with closing costs, such as legal fees, disbursements and land transfer taxes.
The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009 (ie, the closing is after that date).
You are considered a first-time homebuyer if neither you nor your spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
Renovation Perks
If you’ve been thinking about doing some home renovations to a property you’d like to purchase, a 15% Home Renovation Tax Credit (HRTC) of up to $1,350 on eligible home renovation expenses undertaken before February 1, 2010 that was proposed in the latest budget may help in your decision.
The credit will apply to expenditures in excess of $1,000, but not more than $10,000, for the 2009 taxation year. Expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, will be eligible for the credit. You can claim this credit (including expenditures made in January 2010) in your 2009 income tax returns.
As always, if you have any questions, I’m here to help!
Saturday, August 29, 2009
Glossary of Mortgage and Real Estate terms "A"
Agreement of Purchase and Sale - A legal agreement that offers a certain price for a home. The offer may be firm (no conditions attached), or conditional (certain conditions must be fulfilled before the deal can be closed).
Amortization Period - The actual number of years it will take to pay back your mortgage loan, or the time over which all regular payments would pay off the mortgage. This is usually 25 years for a new mortgage, however can be greater, up to a maximum of 35 years.
Anniversary - Many mortgage products allow you to make payments against the principal on the anniversary of the mortgage.
Appraisal - The process of determining the value of property, usually for lending purposes. This value may or may not be the same as the purchase price of the home.
Appraisal Value - An estimate of the market value of the property.
Assumability - Allows the buyer to take over the seller's mortgage on the property.
Amortization Period - The actual number of years it will take to pay back your mortgage loan, or the time over which all regular payments would pay off the mortgage. This is usually 25 years for a new mortgage, however can be greater, up to a maximum of 35 years.
Anniversary - Many mortgage products allow you to make payments against the principal on the anniversary of the mortgage.
Appraisal - The process of determining the value of property, usually for lending purposes. This value may or may not be the same as the purchase price of the home.
Appraisal Value - An estimate of the market value of the property.
Assumability - Allows the buyer to take over the seller's mortgage on the property.
Tuesday, August 25, 2009
Buying recreational property
What should I look for when viewing a recreational property?
Nothing can spoil your summer fun as much as a cottage plagued with costly and time-consuming maintenance problems.
Protect yourself and your investment, and gain a little peace of mind by hiring a qualified home inspector before you buy.
But, even before you hire a home inspector, there are warning signs to look for. Recreational properties are often unoccupied for several months of the year, so they are vulnerable to infestation, freezing pipes, mildew, vandalism, and theft. When viewing recreational property, take special note of potential problem areas:
Exterior
Signs of infestation – Check along the foundation, under eves, around windows, doors, vents, and chimneys for signs of animals or insects. Watch for small piles of sawdust, unsecured holes, nests, signs of chewing, and animal droppings.
Roof – Look for loose or missing shingles. A sagging roof will mean a costly replacement.
Decks and stairs – Check for rotten timber, missing nails, warping, and peeled paint. If the deck is listing or sagging it may not be safe.
Dock – Look for signs of rot, missing nails, and warping. Are the floats and supports in good shape? Are swimming ladders, tie-ups, and other hardware firmly fixed?
Trees and utility poles – Check for dead or leaning trees or unsecured utility poles that could be a hazard to you or the building.
Windows and doors – Check the caulking and weather stripping around doors and windows. Check for rot on frames and sills.
Siding – Examine the siding for loose or missing planks. Look for peeling or bubbling paint.
Driveway and access roads – Is the driveway full of potholes, puddles, or trenches? Is the access road private or publicly owned? Find out who is responsible for maintenance and if there are any special conditions concerning its use?
Septic and water supply – Are the water pump, well, and pipes in good condition? Is there a sewage system or a septic tank or field? How old is the septic system?
Interior
General state of repair – Note the general state of the cottage. Is it clean and well kept? Walls in need of paint, loose banisters, stains, and a general state of disrepair may indicate there are other, bigger problems the owner has neglected to fix.
Electrical – Check the fuse box for signs of water damage. Test light switches and outlets. Make sure appliances included in the sale are in good working order.
Furnace – Check the condition. Turn on the heat and see how well it works (and how noisy it is).
Water damage – Examine ceilings and walls for stains and bulges. Excessive mildew can be a sign of a leak or poor ventilation.
Plumbing – Turn on all faucets to test water pressure and hot water. Flush toilets to ensure proper drainage. Examine the base of faucets, bathtubs, and under sinks for signs of water damage.
Water quality – What is the source of the water? Is it reliable and consistent? Can you drink the water? Does it have any unpalatable odours?
Security – An unoccupied cottage is an inviting target for burglars. Are there good locks on all outside doors and windows? Is there an alarm system?
Nothing can spoil your summer fun as much as a cottage plagued with costly and time-consuming maintenance problems.
Protect yourself and your investment, and gain a little peace of mind by hiring a qualified home inspector before you buy.
But, even before you hire a home inspector, there are warning signs to look for. Recreational properties are often unoccupied for several months of the year, so they are vulnerable to infestation, freezing pipes, mildew, vandalism, and theft. When viewing recreational property, take special note of potential problem areas:
Exterior
Signs of infestation – Check along the foundation, under eves, around windows, doors, vents, and chimneys for signs of animals or insects. Watch for small piles of sawdust, unsecured holes, nests, signs of chewing, and animal droppings.
Roof – Look for loose or missing shingles. A sagging roof will mean a costly replacement.
Decks and stairs – Check for rotten timber, missing nails, warping, and peeled paint. If the deck is listing or sagging it may not be safe.
Dock – Look for signs of rot, missing nails, and warping. Are the floats and supports in good shape? Are swimming ladders, tie-ups, and other hardware firmly fixed?
Trees and utility poles – Check for dead or leaning trees or unsecured utility poles that could be a hazard to you or the building.
Windows and doors – Check the caulking and weather stripping around doors and windows. Check for rot on frames and sills.
Siding – Examine the siding for loose or missing planks. Look for peeling or bubbling paint.
Driveway and access roads – Is the driveway full of potholes, puddles, or trenches? Is the access road private or publicly owned? Find out who is responsible for maintenance and if there are any special conditions concerning its use?
Septic and water supply – Are the water pump, well, and pipes in good condition? Is there a sewage system or a septic tank or field? How old is the septic system?
Interior
General state of repair – Note the general state of the cottage. Is it clean and well kept? Walls in need of paint, loose banisters, stains, and a general state of disrepair may indicate there are other, bigger problems the owner has neglected to fix.
Electrical – Check the fuse box for signs of water damage. Test light switches and outlets. Make sure appliances included in the sale are in good working order.
Furnace – Check the condition. Turn on the heat and see how well it works (and how noisy it is).
Water damage – Examine ceilings and walls for stains and bulges. Excessive mildew can be a sign of a leak or poor ventilation.
Plumbing – Turn on all faucets to test water pressure and hot water. Flush toilets to ensure proper drainage. Examine the base of faucets, bathtubs, and under sinks for signs of water damage.
Water quality – What is the source of the water? Is it reliable and consistent? Can you drink the water? Does it have any unpalatable odours?
Security – An unoccupied cottage is an inviting target for burglars. Are there good locks on all outside doors and windows? Is there an alarm system?
Thursday, August 13, 2009
Outlook 2007 tip
Add Canadian holidays to your Outlook 2007 calendar:
Open Outlook 2007. From the tools menu, click Options. Click Calendar Options. Click Add Holidays. Place a check beside the appropriate country/countries and click OK.
Tip I recommend clicking on Canada and unclicking the United States or you will end up with double entries for Christmas, Easter, etc.
Click OK to close the Calendar Options dialog box and OK to close the Options dialog box.
Open Outlook 2007. From the tools menu, click Options. Click Calendar Options. Click Add Holidays. Place a check beside the appropriate country/countries and click OK.
Tip I recommend clicking on Canada and unclicking the United States or you will end up with double entries for Christmas, Easter, etc.
Click OK to close the Calendar Options dialog box and OK to close the Options dialog box.
Saturday, August 8, 2009
did you know...
One of the most important features to look for when you’re obtaining a mortgage could very well be prepayment privileges. Having a prepayment privilege that works to your specific needs could mean the difference of thousands of dollars over the life of your mortgage. Although many lenders offer some form of prepayment privilege, the amount and how it can be applied varies from one to another. Some only offer up to 10%, once per year, and on the anniversary date, while others offer as high as 20% per year, and prepayments can be made throughout the year as long as the total does not exceed 20%. Many mortgage shoppers often get so caught up in the rate debate that they overlook this interest-saving feature. A Mortgage Borker can help determine the best mortgage features to meet your unique needs!
Friday, August 7, 2009
FVREB's July market poll
The results are in for the Board's second monthly market poll regarding home buyers. Over 100 members who sold a property within the first two weeks of July participated. Here are some highlights:
First time buyers (37%) are still the most active segment of those buying homes in the Fraser Valley, followed by those moving from one property to a similar property (25%), followed by those moving from an apartment or a townhouse to a detached house (16%).
Almost half of the buyers (47%) paid 25% or more for their down payment, however 42% required a high ratio mortgage with less than 25% as their down payment.
Who's buying? Families with children are still the main group at 40%, while young couples with no children represented 25% of July's buyers, 16% were singles and empty nesters/retirees rounded out the final 17% of buyers. Interesting that from June to July, families as the number one group dropped from 51%, while young couples with no children went up from 18%.
Where people bought in the Fraser Valley was pretty evenly divided in July between Surrey (24%), Langley (27%) and Abbotsford (25%). South Surrey/White Rock was at 12% and Mission and North Delta, 3%.
First time buyers (37%) are still the most active segment of those buying homes in the Fraser Valley, followed by those moving from one property to a similar property (25%), followed by those moving from an apartment or a townhouse to a detached house (16%).
Almost half of the buyers (47%) paid 25% or more for their down payment, however 42% required a high ratio mortgage with less than 25% as their down payment.
Who's buying? Families with children are still the main group at 40%, while young couples with no children represented 25% of July's buyers, 16% were singles and empty nesters/retirees rounded out the final 17% of buyers. Interesting that from June to July, families as the number one group dropped from 51%, while young couples with no children went up from 18%.
Where people bought in the Fraser Valley was pretty evenly divided in July between Surrey (24%), Langley (27%) and Abbotsford (25%). South Surrey/White Rock was at 12% and Mission and North Delta, 3%.
Wednesday, August 5, 2009
JULY REAL ESTATE SALES REACH RECORD LEVELS IN FRASER VALLEY
News Release: August 5, 2009 -
Fraser Valley saw the highest number of real estate transactions ever recorded for the month of July. There were 2,089 sales processed on the Fraser Valley Real Estate Board's Multiple Listings Service® (MLS®), an increase of 62.3 per cent compared to 1,284 sales in July of last year. The previous highest July was in 2005, with 2,051 sales. "The factors contributing to last month's sales are completely different than they were in 2005," explained Board President Paul Penner. "Low interest rates, home prices that are lower than last year by about 6 per cent, and a surge of first-time home buyers that came back to the market in late spring have created the right conditions for a 'move-up' market. "In July, 37 per cent of Fraser Valley buyers were first-timers. In June, it was one third. That volume creates a significant ripple effect, as the sellers of those homes buy up." Penner said that despite seeing an increase in new listings over the last few months, current demand has led to a shortage of inventory in certain markets. "Whether you're buying or selling, it's important to tap into local housing market expertise. Your REALTOR® will be able to explain why some properties are attracting multiple offers, while others aren't moving."
The Fraser Valley Board's MLS® showed 9,510 active listings at the end of July, a decrease of 22.7 per cent compared to the record high of 12,299 listings available in July of last year. It received 14.3 per cent fewer new listings in July; 3,207 compared to the 3,742 new listings received during the same month last year. The benchmark price measures the value of a 'typical' Fraser Valley home as determined by the MLSLink® Housing Price Index (HPI). The HPI benchmark price of a detached home in July was $477,420, a decrease of 5.6 per cent compared to July 2008. In the last three months, the HPI benchmark price of a detached home has increased by 3.7 per cent. The HPI benchmark price of Fraser Valley townhouses decreased 6.9 per cent from $327,604 in July 2008 to $304,940 in July 2009, and in the last three months has increased by 3.3 per cent. The benchmark price of apartments also decreased year-over-year by 8 per cent, going from $254,510 in July of last year to $234,178 in July 2009, and has increased by 1.7 per cent in the last three months.
Fraser Valley saw the highest number of real estate transactions ever recorded for the month of July. There were 2,089 sales processed on the Fraser Valley Real Estate Board's Multiple Listings Service® (MLS®), an increase of 62.3 per cent compared to 1,284 sales in July of last year. The previous highest July was in 2005, with 2,051 sales. "The factors contributing to last month's sales are completely different than they were in 2005," explained Board President Paul Penner. "Low interest rates, home prices that are lower than last year by about 6 per cent, and a surge of first-time home buyers that came back to the market in late spring have created the right conditions for a 'move-up' market. "In July, 37 per cent of Fraser Valley buyers were first-timers. In June, it was one third. That volume creates a significant ripple effect, as the sellers of those homes buy up." Penner said that despite seeing an increase in new listings over the last few months, current demand has led to a shortage of inventory in certain markets. "Whether you're buying or selling, it's important to tap into local housing market expertise. Your REALTOR® will be able to explain why some properties are attracting multiple offers, while others aren't moving."
The Fraser Valley Board's MLS® showed 9,510 active listings at the end of July, a decrease of 22.7 per cent compared to the record high of 12,299 listings available in July of last year. It received 14.3 per cent fewer new listings in July; 3,207 compared to the 3,742 new listings received during the same month last year. The benchmark price measures the value of a 'typical' Fraser Valley home as determined by the MLSLink® Housing Price Index (HPI). The HPI benchmark price of a detached home in July was $477,420, a decrease of 5.6 per cent compared to July 2008. In the last three months, the HPI benchmark price of a detached home has increased by 3.7 per cent. The HPI benchmark price of Fraser Valley townhouses decreased 6.9 per cent from $327,604 in July 2008 to $304,940 in July 2009, and in the last three months has increased by 3.3 per cent. The benchmark price of apartments also decreased year-over-year by 8 per cent, going from $254,510 in July of last year to $234,178 in July 2009, and has increased by 1.7 per cent in the last three months.
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