There are things you can do to help sell your home faster.
1. Check your curb appeal Drive down your street and view the front of your home. Make sure the outside is as attractive as the inside. Weed, cut the grass, edge the beds and drive, trim the hedges and plant flowers. Next, paint or power-wash your siding to give it a fresh appearance.
2. Make a great first impression When it comes to selling a house, a good first impression can actually mean more money, so make sure the entryway is impeccable. Sweep the porch, dust the door, wash the windows, vacuum the mats -- give potential buyers a warm welcome.
3. De-clutter There should be no clutter. All miscellaneous items should be removed or stored on shelves in attractive baskets. In the kitchen, clear the refrigerator of pictures, drawings and magnets. In fact, remove everything personal -- family photos, keepsakes, tchotchkes. Leave surfaces empty, with maybe one dramatic decorative piece as an accent. Your home will appear more spacious and open, which are key selling benefits.
4. Clean and/or paint Walls should be freshly painted or, at a minimum, the trim should be touched up and clean. Chipped and peeling paint, scratches and dings on the walls can give the impression the home is not well cared for.
5. If it's broke, fix it Ensure it is all in working order, especially when it comes to faucets, fixtures and drawers -- anything that's easy for people to test.
6. Tidy behind closed doors Clean and organize your cabinets, drawers and closets. Yes, people will open them, and they'll form an opinion.
7. Look at it through a visitor's eyes Be prepared to do the work on your home before listing it. After that, a critical eye is your best tool. Walk through your home and check every room to make sure it's clean and uncluttered.
And, when it comes to an open house or private tours, step aside and allow your Realtor to show the home and answer any questions.
B.C. condo unit owners have yet to take a run at challenging the fairness of deductible downloading bylaws of strata corporations, although case law seems aligned for such an opportunity.
Krista Prockiw of Alexander Holburn Beaudin & Lang LLP mentioned this state of affairs while discussing insurance law issues arising out of British Columbia’s Strata Property Act. She was speaking on May 10 at the Insurance Brokers Association of B.C.’s annual convention in Kelowna, B.C.
First, Prockiw observed the provincial act does not limit the ability of a strata corporation to sue a condo owner to recover a deductible. Such an action can proceed if the strata corporation has a valid bylaw or rule in place allowing the damage to be charged to a unit owner.
Second, a strata corporation can sue a unit owner for the insurance deductible if “the owner is responsible for the loss or damage.”
Prockiw suggested this scenario is akin to strict liability, meaning a condo unit owner can be found “responsible” for damage without requiring a finding of negligence on the part of the owner.
Consider, for example, OSP KAS 1019 v. Keiran, Simkus and Wawanesa Insurance. The owner of a condo unit had a pipe burst in the bathroom wall because high acid levels in the water caused a coupling to break down. The court determined the owner had a duty to repair and maintain the unit, which was not common property, and, therefore, was “responsible for the loss, regardless of the absence of fault or negligence on their part.”
Finally, as Prockiw and brokers attending the seminar noted, policy deductibles for some strata corporations are substantial, running anywhere from $25,000 to $500,000.
“If you live in a strata corporation, you share everything in proportionate shares,” Prockiw said. “You share maintenance fees, you share liability, so this whole idea that one owner is responsible for the entire deductible could be seen as contrary to [the common expense philosophy],” she added.
“No one’s ever taken a run at it, but we are certainly waiting for the case in which you do have an exceedingly high deductible, a strict liability bylaw and no negligence on the part of an owner. The owner might then take a run at [the deductible download] being significantly unfair.”
Four years ago, a case commenced relating to the Strata Property Act’s provisions on “significantly unfair” deductible downloads, Prockiw reported. But the case settled before trial, meaning B.C. courts still have not been called upon to interpret the standard of fairness.
“The courts have held that ‘significantly unfair’ is a really high threshold to meet,” Prockiw said. “It might not be possible to meet that.”
FOR IMMEDIATE RELEASE - from the desk of AMALIA LIAPIS
The political elections in Europe went as expected, the parties who promised MORE won but it is doubtful they will be able to keep most of their promises as they are so far in debt that there is simply no more to give. Markets worldwide went down as the reality of the results sunk in, more instability & market volatility over the next few months. Hollande, the new President of France, is already making his presence felt & could put the Franco-German relationship under threat. The last socialist president of France, Mitterand, nationalized the Banks & imposed a wealth tax. Hollande has already stated he will introduce a 75% tax on the wealthy, so maybe the banks are next. The wealthy are usually the wealth makers so they will leave France like they have done previously & like they have done in other countries when overtaxed. I seem to remember the Beatles leaving England after they were given an award in the Queen’s Honors list for bringing in so much foreign money in from their records sales etc. Then the Government introduced a wealth tax that sent the Beatles & most other high earning entertainers overseas; some never to return.
Greece appears to be in total confusion with no clear winner & this could result in further decline of Greek prospects of recovery. It was hopeless anyway. Rating agencies are still closely looking at the sovereign & bank risks in Europe. I believe we should expect further downgrades in Spain, France & Greece.
So what about our Vancouver Real Estate market?! Well to begin with we are still awaiting the Finance Minister to introduce an incentive package for First Time Buyers of New Condos. Developers screamed loud enough with the HST issue that this package looks like it might just become reality. It is expected to get voted around June 2012 and is only available until March/April 2013. This will help the new condo market.
I’ve been saying it for a couple of years now…Gastown is the favourite neighbourhood to live in…not a lot of product and what comes up for sale is usually gone quickly. The downtown condo market will remain steady though out the summer with an emphasis on the entry level purchases. Westside homes continue to be active with steady activity in the $5million and up market. Price and location will bring immediate results but the general market is still price sensitive...off by $10,000 or $20,000 and there will be little interest from Buyers. It’s still a buyer’s market overall but have to say the available inventory is rather average.
Home sale and listing activity has maintained a consistent pace on the Mul- tiple Listing Service® (MLS®) in Greater Vancouver in recent months, which has helped create balanced conditions for the region’s housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,799 on the Multiple Listing Service® (MLS®) in April 2012. This represents a 13.2 per cent decline compared to the 3,225 sales recorded in April 2011 and a decline of 2.6 per cent compared to the 2,874 sales in March 2012.
April sales were the lowest total for the month in the region since 2001 and 16.9 per cent below the 10-year April sales average of 3,369.
“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ra- tio of nearly 17 per cent, a balanced relationship between buyer demand and seller supply in our marketplace,” Eugen Klein, REBGV president said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,056 in April 2012. This represents a 3.6 per cent increase compared to both March 2012 when 5,843 homes were listed and April 2011 when 5,847 homes were listed for sale on the region’s MLS®.
Last month’s new listing total was 6.7 per cent above the 10-year average for listings in Greater Vancouver for April. At 16,538, the total number of homes listed for sale on the region’s MLS® increased 8.5 per cent in April compared to last month and increased 16 per cent from this time last year.
“Recent activity has had a stabilizing effect on home prices at the regional level, although pricing can vary depend- ing on area and property type,” Klein said “To best understand conditions within your area of interest, it’s important to do your homework and consult a local REALTOR®.”
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $683,800, up
3.7 per cent compared to April 2011 and an increase of 2.8 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland is $612,000, which is a 3.4 per cent increase compared to April 2011 and a 2.6 per cent increase compared to three months ago.
Sales of detached properties on the MLS® in April 2012 reached 1,126, a decline of 19.7 per cent from the 1,402 detached sales recorded in April 2011, and a 17.8 per cent decrease from the 1,370 units sold in April 2010. The benchmark price for detached properties increased 6.3 per cent from April 2011 to $1,064,800.
Sales of apartment properties reached 1,190 in April 2012, a decline of 0.9 per cent compared to the 1,201 sales in April 2011, and a decrease of 22 per cent compared to the 1,526 sales in April 2010.The benchmark price of an apart- ment property increased 1.1 per cent from April 2011 to $375,900.
Townhome property sales in April 2012 totalled 483, a decline of 22.3 per cent compared to the 622 sales in April 2011, and a 21.6 per cent decrease from the 616 townhome properties sold in April 2010. The benchmark price of a townhome unit increased 1.7 per cent between April 2011 and 2012 to $487,300.
1. Green neigbourhoods Buy a home in a neighbourhood close to work, transit, shopping, community centres and other services
2. Transit-orientated density (TOD) New, compact, complete green neighbourhoods are being built with transit as their focus. Instead of owning a car, join a car share cooperative, take transit, cycle or walk.
3. Lower Cost Luxury If it's features such as a gym, or pool you want, buy a strata unit with these amenities and share costs.
4. Score your location Walkable neighbourhoods offer health, environmental, financial and community benefits. Enter your address or the address of a home you want to buy at www.walkscore.com. This tool calculates a walkability soce based on the home's proximity to transit, grocery stores, schools and other amenities.
HOME IMPROVEMENT Heating and Cooling
5. Get an energy audit LiveSmart BC will cover $150 of the cost.
6. Install a high-efficiency heating system Make sure it's ENERGY STAR rated.
7. Weatherize your home From windows (BC Hydro provides grants of $60-$120) to doors to insulation and weather stripping. Don't forget to seal your ducts.
8. Insulate your pipes It will prevent costly heat loss. Here's how.
9. Insulate your hot water heater Buy a pre-cut jacket or blanket for $10-$20. You'll save up to 10% on heating costs.
10. Install a programmable termostat Set it lower at night and during the day when you're away. Lower the temperature. Each degree below 20C saves you 3-5% on heating costs.
11. Clean your furnace filter This optimizes performance.
13. Use curtains In the daytime during summer, close to help cool your home.
14. Install ceiling fans The energy it takes to run a fan is less than an air conditioner. In summer, make sure the fan's blades are rotating anti-clockwise for a cooling effect. In winter, the fan should be running clockwise, pushing the warm air down.
15. Use an electric fan Skip the air conditioning. On hot summer days, place a bowl of ice in front of a fan to cool down.
WATER
16. Fix leaks. Fix leaking taps One drop per second equals to 7,000 litres of water wasted per year.
17. Instal a filter Stop buying costly bottled water which adds to the landfill.
LIGHTING
18. Change your light bulbs Lighting accounts for 15% of your energy bill. Replace old bulbs with ENERGY STAR rated bulbs. Check for rebates.
19. Sensor lights Turn lights off outside when not in use.
20. Keep it dark Light pollution is an increasing problem. Turn off outdoor lights to save energy and encourage night life such as bats and frogs. A single bat can eat tens and thousands of mosquitoes nightly. If you have safety concerns, use motion detector lights - which come on, only as needed.
22. Replace your fridge An old energy guzzling fridge costs you about $85 a year to operate. Replace it with an ENERGY STAR Fridge, BC Hydro will rebate you $50. BC Hydro will also not only come and pick up your old fridge for free-of charge, they'll rebate you $30.
23. Replace your dishwasher Buy an ENERGY STAR appliance. BC Hydro will rebate you $25.
24. Replace your freezer Buy an ENERGY STAR appliance and BC Hydro will rebate you $25.
BATHROOM
25. Low flow shower Hot water accounts for 25% of your energy costs. For a $15 investment you can save half the water of a standard shower say experts.
26. High efficiency or dual flush (you choose the amount of water used) toilets These are now required in new homes because of water savings.
OFFICE
27. Use smart strips Also know as power bars, this lets you power off all equipment at the same time.
28. Buy energy smart electronics There are rebates available.
30. Conserve Water Fresh water comprises just 3% the world's total water supply, so conserve. Get a rain barrel and harvest water you can use in your garden. Local governments such as Vancouver and Richmond will subsidize the cost.
31. Drip irrigation It saves water compared to sprinklers.
32. Elbow grease Don't power wash your driveway. Sweep it or use a scrub brush and pail.
33. Less lawn Lawns waste water. Instead conserve and beautify using indigenous plants such as ferns, tiger lillies and hostas.
34. Grow your own How much more will you spend on food this year. Even a few miniature fruit trees and a small vegetable garden in a raised bed or in containers will help keep you healthey and save you dollars. Lettuce, spinach, tomatoes, cucumbers, strawberries and blueberries thrive in our climate. Here's how.
35. Presever your produce Invest in home canning jars and equipment and a small freezer and enjoy your produce year round - at considerable savings. Here's how.
36. Bee friendly We need bees to polinate, so get a few plant bee friendly annuals such as asters, marigolds, sunflowers, zinnias; or perennials such a clematis, foxgloves, hollyhocks, roses or shrubs such as Buddleia.
37. Go chemical-free "Get rid of weeds without using chemicals that harm us and our pets," advises REALTOR and Rechmond City counselor, Derek Dang, who led the way to a bylaw banning cosmetic pesticides. His suggestion, "Use dish detergent or weed by hand."
40. Clean freen Vinegar, baking soda and lemons clean as well as expensive, chemical filled cleaning supplies for a fraction of the cost.
41. Green Laundry detergent Use phosphate-free, biodegradable detergent.
42. Upgrade your washing machine Replace your old washing machine with an ENERGY STAR washer that gets clothes clean using cold water and BC Hydro will rebate you $75. Wait until you have a full load instead of washing clothes as you need them. Clean your lint trap after every use.
44. Get a rack If your neighbourhood or strata prohibits clotheslines, buy a small drying rack.
LIVING GREEN
45. Recycle
46. Buy local your food doesn't travel long distances, you support local farmers and the local economy and you consume less pesticides.
47. Don't use paper or plastic Use cloth bags when you shop or reuse your plastic bags.
FINANCING
48. Borrow green Most financial institutions offer "green" mortgages, including: • BMO Eco Smart Mortgage offers home buyers a 3.89% rate on qualifying green properties. • RBC Energy Saver Mortgage gives home buyers a $300 rebate for a home energy audit and five-year 4.34% rate. • TD Canada Trust offers a Green Mortgage and Green Home Equity line of credit - for each green mortgage TD donates $100 to the TD Friends of the Environment Foundation. • Vancity offers a Bright Ideas home renovation loan - at prime +1% to home buyers and owners making green renovations. • The City of Vancouver with Vancity offers a home energy loan program for home buyers and owners makeng energy efficient upgrades and 4.5% fixed rate over 10 years. The loan program is a 12 month pilot project with a goal of 500 homes participating. It will wrap up October 21, 2012. For more information attend a loan info workshop or call 604-374-0507. • CMHC offers a 10% Mortgage Loan Premium refund a possible extended amortization for buyers purchasing and energy-efficient mortgage or making energy saving rennovations.
RESOURCES
49. Green Tool Kit BC Real Estate Association's Green Tool Kit provides information, references and links. It also provides comprehensive information of rebates and incentives.
COMING SOON
50. Loan programs Pay-as-you-Save (PAYS) loan program will help home owners and businessed finance energy efficiency improvements through a loan from BC Hydro or FortisBC. Expected to launch in 2012.
February 6, 2012, Real Estate Board of Greater Vancouver Article
1) Home Buyers’ Plan Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time. Canada Revenue Agency www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box. 1.800.959.8287
2) GST Rebate on New Homes New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. Canada Revenue Agency www.cra.gc.ca. Enter ‘RC4028’ in the search box. 1.800.959.8287
3) BC New Housing Rebate (HST) Buyers of new or substantially renovated homes priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $42,500. Homes priced at $850,000+ are eligible for a flat rebate of $42,500. www.hstinbc.ca 1.800.959.8287
4) BC New Housing Rebate (HST) for Secondary Vacation or Recreational Homes Buyers of new or substantially renovated secondary or recreational homes outside the Greater Vancouver and Capital Regional District priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $42,500. Homes priced at $850,000+ are eligible for a flat rebate of $42,500. www.hstinbc.ca/buying_goods/buying_a_home/new_ home_tax_calculator 1.800.959.8287
5) BC New Rental Housing Rebate (HST) Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST, up to $42,500. www.hstinbc.ca 1.800.959.8287
6) BC First-Time New Home Buyers’ Bonus First-time new home buyers may be eligible for a one-time grant equal to 5% of the purchase price of the home, or if you are building a home, 5% of the land and construction costs, up to $10,000. The bonus is based on the net income of the home buyer. This program ends March 31, 2013. www.sbr.gov.bc.ca/documents_library/notices /FTHB_Bonus.pdf 1.877.387.3332
7) BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. BC Ministry of Small Business and Revenue www.sbr.gov.bc.ca/business/Property_ Taxes/Property_Transfer_Tax/ptt.htm 250.387.0604
8) First-Time Home Buyers’ Tax Credit (HBTC) This federal non-refundable income tax credit is for qualifying buyers of detached, townhome, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2011) x $5,000. For the 2011 tax year, the maximum credit is $750. Canada Revenue Agency www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/369/menu-eng.html 1.800.959.8281
9) BC Home Owner Grant Reduces property taxes for home owners with an assessed value of up to $1,285,000. The basic grant gives home owners: • a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts; • an additional grant of $770 to rural homeowners elsewhere in the province; and • an additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/hog or contact your municipal tax office.
10) BC Property Tax Deferment Programs
Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes.
Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes.
Property Tax Deferment Program for Families with Children. Qualifying low-income home owners who financially support children under age 18 may be eligible to defer property taxes.
11) Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants. This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites. www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm 1.800.668.2642 | 604.873.7408
12) Home Adaptations for Independence (HAFI) A new program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low-income seniors and disabled home owners and landlords to finance modifications to their homes to make them accessible and safer.
BC Housing www.bchousing.org/Options/Home_Renovations 604.646.7055 or toll-free 1.800.407.7757 extension 7055
13) CMHC Mortgage Loan Insurance Premium Refund Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations. www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno 604.731.5733
14) Energy Saving Mortgages Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage, may qualify for a rebate of $300 to their RBC account. www.rbcroyalbank.com/products/mortgages/ energy-saver-mortgage.html 1.800.769.2511
15) Low Interest Renovation Loans Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 rebate on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution.
16) LiveSmart BC: Efficiency Incentive Program Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with FortisBC and BC Hydro. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider. www.livesmartbc.ca/rebates 1.866.430.8765
17) BC Residential Energy Credit Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST. www.sbr.gov.bc.ca/business/consumer_taxes/residential_ energy/residential_energy.htm 1.877.388.4440
21) BC Hydro Mail-in Rebates/Savings Coupons To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone. Check for new offers and for deadlines. www.bchydro.com/rebates_savings/coupons.html 1.800.224.9376
22) FortisBC Rebate Program A range of rebates for home owners include a $50 rebate for upgrading a hot water tank, $300 rebate on an Ener-Choice fireplace and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system. www.fortisbc.com/NaturalGas/Homes/Offers /Pages/default.aspx 1.888.224.2710
23) FortisBC Efficient Boiler Program For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits. www.fortisbc.com/NaturalGas/Business/ Offers/Pages/default.aspx 1.888.477.0777
24) City of Vancouver Rain Barrel Subsidy Program The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency. http://vancouver.ca/engsvcs/watersewers/water/ conservation/programs/rainbarrel.htm 604.736.2250 Other municipalities have similar offers.
25) City of Vancouver Greenest City 2020 Pilot Home Energy Loan Program The City of Vancouver in cooperation with Vancity, FortisBC, BC Hydro and Natural Resources Canada offers access to loans for energy retrofits including heating systems, insulation and air sealing. The Home Energy Loan from Vancity is a 12 month pilot program that will end October 21, 2012. For more information attend a workshop (see third link below). The goal is 500 homes, and loans are offered at 4.5% fixed rate over 10 years. The program also helps with accessing grants from the federal ecoENERGY program, the provincial LiveSmart BC program and FortisBC.
26) Vancity Green Building Grant In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies. The deadline for applications was January 23, 2012. If you are still interested in this grant, open the link and consider contacting Vancity to express your interest. www.vancity.com/MyCommunity/NotForProfit/Grants /ActingOnClimateChange/GreenBuildingGrant 604.877.7000
27) Local Government Water Conservation Incentives Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.
28) Local Government Water Meter Programs Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.
April 5, 2012, Real Estate Board of Greater Vancouver Article
FOR IMMEDIATE RELEASE - From the desk of AMALIA LIAPIS
About 3 weeks ago I noticed a change in the Vancouver market – things went relatively quiet.
Looking forward into the summer I predict the general market will continue that trend. What that means is that there will continue to be moderate activity overall. The properties that are receiving the most amount of attention are homes on the East Side of Vancouver in the $1,000,000 range (and yes this is considered good value). Any property; house, townhome or apartment that is on waterfront (or with a great view) and priced well is getting immediate attention. Vancouver West homes from $3,000,000 and up are selling steadily. But it all comes down to price so if the property has any shortcomings then an adjustment in price will be needed to gain a buyers interest.
World activities have had an effect on the real estate markets as well. Recent manufacturing data out of China indicates that the economy is still contracting, however at a slower rate than previously expected. The political problems in Europe continue to surface as seen in the resignation of the Dutch cabinet over night & the weekend’s French election result. These events together with some weaker economic data saw the European markets tumble & Bond rates rose. The sovereignty risk rose in Greece, Spain & Italy when government control was weakened through political unrest. The Dutch problem arose last week when Fitch said it would put Holland (AAA) on ratings review if the government failed to take action to cut their budget deficit & stop their debt from rising. Now Holland will head to elections, earlier than expected, after 7 weeks of negotiations among the ruling coalition parties on budget cuts of Euro 14billion collapsed on Saturday. The Dutch economy is feeling the pinch including a housing market slump. Sounds familiar. Greece, Ireland & Spain revisited? Italy & Portugal?
Most European countries are living well above their means, especially those with pensions, welfare & unemployment benefits. Those earning incomes don’t want earn less through paying more tax in order to help keep these benefit payments at the same level. Who is going to pay? There is no short term fix & so far the decisions made amount to just kicking a can down the road. The debt remains as long as the will to reduce it to manageable levels falls into the political too hard basket. One step at a time, Europe will unravel. The first step could come from the French as they desert their president Nicolsas Sarkozy for a socialist government who would not cooperate with German Chancellor Angela Merkel in keeping Europe afloat. Sarkozy & Merkel have been the glue to keep the Euro together as most other leaders have only been interested in their own problems.
US reporting season continues & this is going well but not standout unless you are one of the favored Tech companies like Apple & Microsoft. GE & McDonalds were also better than expected. Investors have been disappointed with some of the Banks & some of the guidance given for future quarters. Despite its debt worries, the US market has outperformed the ASX thanks to QE1 & QE2.
Overall it’s the worry about Europe that keeps the US market on its toes. Everybody seems to be watching someone in today’s market & just shows what a small world we live in.
As of November 5, 2012, federally-regulated financial institutions will be required to disclose information to borrowers about prepayment and refinancing options, amounts and charges, penalties and ways to avoid them. The Mortgage Prepayment Information Code of Conduct also requires lenders to make this information available on a website which includes calculators and guidance to borrowers. Lenders must also provide toll-free telephone help and a written statement of prepayment charges as requested by borrowers. The federal goverment did not standadize the penalty calculation formula in this new code.
Federal Finance Minister Jim Flaherty tabled the 2012 Federal Budget on March 29, 2012. Eliminating the deficit by 2015 is a key goal and the government plans to do this by cutting spending by $1.4 billion in 2012/13 and by $3.9 billion in 2013/14 for a total of $5.3 billion. With unemployment steady at 7.5% and record household debt, property buyers and owners were looking for any glimmer of good news. The government did offer some hope.
Spending
• $205 million to extend the Hiring Credit for Small Business program to encourage hiring. A small-businessemployer can receive credit of up to $1,000 to help offset employment insurance premiums.
• $165 million over 2 years for responsible resource development which creates jobs and protects the environment.
• $150 million over two years on the Community Infrastructure Improvement Fund for repairs and improvements tocommunity facilities.$99.2 million over three years to help provinces develop permanent flood mitigation measures.
• $67 million through the National Research Council on business-led, industry-relevant research.
• $60 million over two years to protect wildlife at risk.
• $35.7 million over two years for inspections and emergency preparedness to improve oil tanker safety.
Spending on innovation
• $500 million over five years, (to begin in 2014) to the Canada Foundation to support innovation in advancedresearch infrastructure.
• $105 million over two years to support forestry innovation and market development.
• $100 million to the Business Development Bank of Canada to support its venture capital activities.
• $37 million annually to granting councils to enhance support for industry-academic research partnerships.
Cutting red tape
• Streamline the multiple-step regulatory process to a single-step review known as “one project, one review.” This will include amending the Canadian Environmental Protection Act.
• Streamline the process for approving major economic projects.
• Introduce a legislative amendment clarifying the prohibition against banks selling life insurance.
There will be no new personal or corporate taxes or tax increases.
Congratulations on achieving membership in the Platinum Club for 2011! You should be very proud of your accomplishment and we consider ourselves honoured to have you on the RE/MAX Team.
RE/MAX Associates are truly “Canada’s Most Productive Agents.” Your production and obvious customer-orientated service is a prime example of why RE/MAX is ‘Above the Crowd!®’.
As the real estate network with the most market share and greatest brand recognition, we have the most to offer home buyers and sellers. Due to professionalism exhibited by Sales Associates such as yourself, RE/MAX can lay claim to the phrase: “RE/MAX Outstanding Agents. Outstanding Results®”
We missed not being able to present this award to you personally at our recent 29th Annual RE/MAX of Western Canada Conference in Victoria, BC, however, it gives us great pleasure to present it to you now!
We are proud to have you on the RE/MAX Team and wish you continued success for 2012!
Closer alignment between home buyer and seller activity helped to bring greater balance to the Greater Vancouver housing market in February.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2, 545 on the MLS System in February 2012. This represents a 61.4 per cent increase compared to the 1,577 sales recorded in January 2012, a decline of 17.8 per cent compared to the 3,097 sales in February 2011 and a 2.9 per cent increase from the 2,473 home sales in February 2010.
February sales in Greater Vancouver were the third lowest February total in the region since 2002, though only 151 sales below the 10-year average.
“With a sales-to-active-listings ratio of 18 per cent, we fairly balanced conditions in our marketplace as we move into the traditionally busier spring season,” Rosario Setticasi, REBGV president said.
New listings for detached, attached, and apartment properties in Greater Vancouver totalled 5,552 in February 2012. This represents a 2.5 per cent decline compared to February 2011 when 5,693 properties were listed, and a 3.5 per cent decline compared to January 2012 when 5,756 homes were added to the MLS in Greater Vancouver. Last month’s new listing count was the second highest February total in Greater Vancouver since 1996.
At 14, 055, the total number of residential property listings on MLS increased 12 per cent in February compared to last month and increased 17.9 per cent from this time last year.
“Region-wide we’ve seen relative stability in home prices over the last six months, but it’s important to do your homework and consult your REALTORS because pricing can vary considerably depending on the neighbourhood and property type,” Setticasi said.
The MLS HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900 up 6 per cent compared to February 2011 and an increase of 0.9 per cent compared to January 2012. The benchmark price for all residential properties in the Lower Mainland is $601,300 an increase of 5.5 per cent compared to February 2011.
Sales of detached properties on the MLS in February 2012 reached 1,101 a decline of 21.5 per cent from the 1,402 detached sales recorded in February 2011, and a 12 per cent increase from the 983 units sold in February 2012. The benchmark price for detached properties increased 10.5 per cent from February 2011 to $1,042,900.
Sales of apartment properties reached 1,020 in February 2012, a decline of 15.4 per cent compared to the 1,206 sales in February 2011, and a decrease of 5 per cent compared to the 1,074 sales in February 2010. The benchmark price of an apartment property increased 2.8 per cent from February 2011 to $373,300.
Townhouse property sales in February 2012 totalled 424, a decline of 13.3 per cent compared to the 489 sales in February 2011 and a 1.9 per cent increase from the 416 townhouse properties sold in February 2010. The benchmark price of a townhouse unit increased 0.7 per cent between February 2011 and 2012 to $472,800.
March 12, 2012 REBGV Article available online at http://www.rebgv.org/news-statistics/greater-vancouver-housing-market-trends-near-long-term-averages-spring-market
Canada ranks "in the middle of the pack" on the global real estate froth scale, Bank of Nova Scotia says in a new look at housing markets around the world.
"The global housing boom which began in the mid- to late-1990s and extended through the mid- to late-2000s was notable in its breadth, strength and longevity," economist Adrienne Warren says, and has taken different paths across different markets. Ms. Warren tracked inflation-adjusted prices in 12 advanced economies. In Japan and Germany, prices declined. In four markets - the United States, Britain, Ireland and Spain - average prices have plunged markedly from their peaks. And in six - Canada, Australia, France, Italy, Sweden and Switzerland - prices remain in record territory or close to it. On average, a cycle of rising prices was 12 years. Italy saw the shortest, at eight years, and Ireland and Sweden the highest at 15. Canada's boom has run for 13 years.
"Based on cumulative price increases since the start of their respective cycles, the U.S. real estate market appears the least overvalued, with average prices having reverted back to mid-1990s levels," Ms. Warren said of the country most cited for the housing crash. She found "little evidence" of marked overvaluation in Switzerland and Italy, at about 30 per cent over the cycle, and counted Ireland, Sweden and Britain as the most overvalued, at between 130 per cent and 150 per cent. "Canada falls in the middle of the pack, with inflation-adjusted average home prices rising 83 per cent since 1998. The relatively smaller cumulative price increase compared with some of the frothiest markets reflects in part a later takeoff. Canada residential real estate boom started several years after many of its counterparts, with the economy still feeling the effects of the deep recession of the early 1990s and a weak labour market recovery through mid-decade. "Canada's housing market has been cooling, though few see a melt down in the works.
According to new projections from the Canadian Real Estate Association today, home sales in Canada are expected to inch up this year and dip next, while prices slip this year and rise in 2013. National numbers in each case are skewed by Ontario and Vancouver, respectively. "Risks to the Canadian economic outlook remain elevated owing to the European sovereign debt quagmire, but the continuation of low interest rates is the silver lining," the group's chief economist, Gregory Klump, said in the new report today. "So long as the European debt crisis is contained and a global economic recession avoided, low interest rates will support Canadian home sales and prices. Recent trends are reassuring, but interest rates remaining low for longer will doubtless keep the Canadian housing market under scrutiny for signs of overheating. "CREA forecast sales will climb 0.3 per cent this year to 458,800 on better demand in Alberta, Saskatchewan and Nova Scotia, but slip by the same percentage, to 457,200, in 2013. However, all provinces but Ontario will see "modest gains" next year.
National average prices have spiked on sales of rich properties in Vancouver, but CREA said that won't likely happen again this year. Thus, the national average is projected to slip 1.1 per cent to $359,100 this year, and rise 0.9 per cent in 2013 to $362,300. Finance Minister Jim Flaherty said today he's still concerned about the condo market, but that housing overall has moderated.
Economists paint rosier view Canada's finance minister got an upbeat forecast today from private sector economists, who predict his government will have more revenue coming in over the next few years thanks to increased stability in Europe and better-than-expected U.S. growth. It was only a few months ago that the same group of economists were urging Jim Flaherty to pad Ottawa's books with prudence in case the global economy worsened, The Globe and Mail's Bill Curry reports.
China cuts forecast China has cut its forecast for economic growth for the first time in seven years, though economists don't actually accept the new numbers and aren't rushing to rejig their own projections. Chinese Premier Wen Jiabao unveiled the new growth target today at the opening of the National People's Congress, Carolynne Wheeler reports from Beijing, trimming it to 7.5 per cent from 8 per cent, a move that sparked some concern. Economists say "growth stability" is the primary focus for Beijing, and generally believe the economy will perform above the official target. "Of course, to what extent this means anything sustainable going forward depends upon the success with which Chinese authorities are able to engineer such a soft landing," said Derek Holt and Dov Zigler of Scotia Capital. "In that context, note that Chinese growth has often overshot the 8-per-cent target that has been in place since 2005. In fact, only one year 2008 came in lower than the target as all other years since recorded growth of 9.8 per cent to 11.2 per cent. So much for targets. What it does signal, however, is that market expectations for further policy easing by way of cuts to required reserve ratios and/or fiscal stimulus through large pump-priming outlays should be held to a moderate slant."
Markets eye Greek bond swap Markets are watching developments in Greece - again - as Athens nears results of the "voluntary" debt swap that could yet again determine its fate. Thursday marks the deadline for private bondholders to agree to the exchange of debt, part of a sweeping plan to to ease its debt crisis. Athens needs 75 per cent to agree, but has targeted 90 per cent. Standard Poor's has already decided Greece is in "selective default" after changing the terms of some payments through what are known as collective action clauses, or CACs. And last week, a key industry body, the International Swaps and Derivatives Association, found Greece had not defaulted. "The worst scenario is one where Greece fails to even meet the threshold for introducing CACs so the whole deal falls apart," said currency strategist Elsa Lignos of RBC in London. "But for CACs to become binding, just 50 per cent of the face value needs to register and of those 2/3 need to consent to the CACs.
Given that Greece holds the voting rights to debt previously held by the [European Central Bank] and is assured co-operation from Greek banks and funds, that is a low threshold to meet. The most likely scenario is take-up that exceeds 75 per cent but doesn't reach the target 90 per cent, with Greece using CACs to force the holdouts. "Several major institutions said today they would agree.
EU to act on board glass ceiling The European Union is eyeing measures, such as quotas, to increase the number of women on corporate boards. A report by the European Commission released today shows what the group called "limited progress" a year after Justice Minister Viviane Reding urged companies to adopt self-regulatory moves. According to the report, women account for only on in seven directors at Europe's major companies. While that's up marginally from 2010, the EC said, "it would still take more than 40 years to reach a significant gender balance (at least 40 per cent of both sexes) at this rate. "Gender balance at top levels lead to better performance, the group said, and it launched a consultation program as to what measures it could take that will run until May 28. Then it will make a decision.
The true north strong (at least one of us) and free The idea of Iceland adopting the Canadian dollar isn’t as nutsy as it might seem to some. Indeed, says Justin Wolfers, a prominent U.S. economist, if Iceland really wants to do it, Canada should go for it. And if we don't, maybe the Aussies will. It also appears there's nothing to stop the Icelanders from doing it on their own, by the way. The suggestion, which has been tossed around in some quarters in Iceland over the past several months, picked up steam late last week when Canada ambassador to the tiny nation, Alan Bones, said Ottawa is open to talking about it if Iceland makes the request. What we know the nature of the final agreement is will depend very much on the expectations of both countries, Mr. Bones told a broadcast interviewer in Iceland. But in a straightforward unilateral adoption of the Canadian dollar by Iceland, where it is clear that there's no input into monetary policy, then we'd be certainly open to discussing the issue. Mr. Bones had actually prepared to take it further, and was planning to deliver a similar message Saturday to a conference on Iceland currency, the krona. But, as The Globe and Mail's Barrie McKenna reported, Canada Foreign Affairs and International Trade Department pulled the plug at the last minute.
Coincidentally, that happened just a few hours after my colleague story was published online, picked up by other media and flashed around the world via Twitter. Canadian officials said Ottawa won't talk about the currencies of other countries (though that didn't seem to be an issue when the G7 intervened to stem a surge in the yen a year ago) and that it wouldn't have been right to make such comments at a political event, in this case one held by Iceland's opposition Progressive Party. I agree it wasn't the venue for it, particularly given that Iceland's government is officially preparing to join the 17-member euro zone, but it does seem clear that someone somewhere has been talking about this. It's highly unlikely that Mr. Bones went rogue. Iceland, of course, was the original poster child of the meltdown, suffering a banking collapse, an economic mess and capital controls.
An independent currency for a country with the population of the size of a decently sized Canadian city was always going to be a problem, said Sebastien Galy, senior currency strategist at SocitGrale. Having that country run a financial bubble while offering very high yield was a recipe for a very rapid rise of a financial empire followed by a catastrophic collapse, with the currency ceasing to have a market at one point. The past few years have been of picking up the broken pieces, and a move to a new currency would help to bring credibility while forcing adjustments in internal prices. Should that new currency be the loonie, as it's known in Canada, which is actually a coin rather than a bill? While both currencies share some commonality with their exposures to energy and commodities, it is a reaction to the government negotiating and preparing for the eventual introduction of the [euro], Mr. Galy said of the weekend discussion in the opposition camp. Neither currency is optimal for this country and it is atug of war between Iceland's European and more independent Nordic roots.
Mr. Wolfers thinks the Australian dollar would be a better fit for Iceland. But from Canada's perspective, it would be a no- brainer,the associate professor of business and public policy at the Wharton School of the University of Pennsylvania told me. Honestly, other countries should compete with Canada for Iceland's business,” said Mr. Wolfers, also a visiting fellow at Princeton, citing Australia in particular. This followed his comments Friday on Twitter, to which Australian MP Andrew Leigh, a former economics professor, responded that, indeed, Iceland would be better off adopting the Aussie dollar. So maybe we can get a competition going. Mr. Wolfers was referring to what is known as seigniorage, which is how Canada could benefit should Iceland actually ever ditch the krona for the loonie. I'm not talking about a currency union here, just Iceland using the loonie.
Here are five things to consider:
1. Seigniorage This is the biggie, if a bit complex. Seigniorage is the difference between the cost of printing a currency and its value. As the Bank of Canada explains it, it's the difference between the interest the central bank reaps on a portfolio of government securities, in turn basically the same amount as the value of outstanding bank notes, and what it costs to issue, distribute and replace the bills. On its website, the central bank uses the example of a $20 bill, which has an average lifespan of three years and is the most commonly used. If it invests the proceeds of issuing that note in a government security that yields interest of 5 per cent, the bill yields $1 a year. Producing that bill costs 9 cents. Given the three-year lifespan, it costs an average of 3 cents a year to produce the note. Add 2 cents a year to distribute it, and the annual cost is 5 cents, which means revenue for the central bank of about 95 cents a year for each $20 bill that’s out there. More than $50-billion has been circulating at any given time, though that can and does change.
Generally, the central bank says, it reaps about $2-billion a year. Some is used for general expenses - $366-million in 2009 – and the rest goes to government coffers. Given Iceland's small size its population is just 320,000 and the fact that its people have embraced electronic banking, we're not talking about a seigniorage windfall here. But Canada's Finance Minister Jim Flaherty is looking to get his hands on whatever he can. Printing money is a good thing for Canada, Mr. Wolfers said. Every dollar in circulation is on the debit side of the central bank's balance sheet, and they're effectively borrowing from the Icelanders at a zero-per-cent interest rate.
So if there are no strings attached, why not? Or, as Mr. Wolfers put it, referring to Iceland, as long as you're a bastard, it's all profit.
2. A stable currency Iceland could of course benefit from a devalued currency. Instead it would get a strong, stable currency that has been something of a haven during this post-crisis period of uncertainty. While strong, exporters at least know what to expect. Consider, too, that the Canadian dollar is liquid. The krona was "blasted through smithereens and very few banks can trade [it] in anything else than very small amounts," Mr. Galy noted. The dollar has been hovering around par with its U.S. counterpart and is expected to remain there, at least through the end of this year.
I'm not sure Ontario Premier Dalton McGuinty would agree, but Mr. Galy believes that the Bank of Canada has held interest rates below where they should be to hold the loonie down and give exporters more time to adjust to the currencys strength. So that's at least something for Iceland if you take that view. This soft approach means that capital may be increasingly misallocated at too low a rate (e.g. potentially housing),” he said. The more German approach, familiar to many German communities in Canada, is to get down and fix the productivity issue, irrespective of any short-term pain. There is a fine balance between the easy and hard way, we must all tackle whether in Iceland, Europe or Canada.”
3. Respected central bank Iceland would of course have no say in monetary policy, but it would have a currency overseen by a very strong central bank and governor, who led Canada out of the recession admirably. Mark Carney is also respected on the global stage, having recently been named to head up the Financial Stability Board. "Dear Canada: If Iceland wants you rather than their own inept central bank to earn their seigniorage, accept the deal," Mr. Wolfers said on Twitter.
4. Fiscal, economic stability Iceland has no reputation in the wake of its banking collapse. Who would you prefer at that point, a euro zone crippled by recession and a two-year-old debt crisis, or Canada? With Canada, you get a stable, if lukewarm, economic outlook, a government that’s still rated triple-A, and a fiscal standing to die for (if you're Greece or Portugal). And, we can count.
5. Our glowing hearts For Iceland, do not underestimate friendship in this post-crisis era of currency manipulation and mounting trade tensions. We're a wonderful people, they're a wonderful people. We've got a beautiful country, they've got a beautiful country. True, it gets cold in Canada in the winter, but remember we're talking about Iceland. And surely we can forgive them for Bjork. (A colleague quipped today that he wondered whether Bjprk could qualify as Canadian content, or Cancon, should the adoption of the loonie ever take place. So he asked about it, even though it began as a joke. She wouldn't. She'd need to meet two of four criteria, even if totally financed with Canadian dollars. As in, she'd hypothetically have to cover a Tragically Hip number in Canada, or her track would have to be produced by a Canadian like Daniel Lanois. Without that, the Icelandic star is still Icelandic under Canada's rules.
What to watch for this week
The Bank of Canada is back at the table with its policy meeting of the year and an announcement Thursday. No change is expected in the central bank's benchmark rate of 1 per cent. "With investors paring the odds of both a U.S. recession and euro zone train wreck, the odds of an interim bank rate cut have not surprisingly dwindled," said Peter Buchanan of CIBC World Markets. "That said, the last thing Governor Carney wants is to add to the currency’s tailwinds and manufacturers' competitive woes, with the loonie back at five-month highs on triple-digit crude. Look for a cautious statement consequently that stresses continuing global financial risks along with the ongoing dangers of an overvalued currency. "The European Central Bank and Bank of England also meet Thursday. A day later, markets will turn their attention to the key issue of unemployment in both Canada and the United States.
Economists largely expect Statistics Canada's jobs report to show about 15,000 jobs were created in February, and the unemployment rate remained stuck at 7.6 per cent. In the United States, where the labour market has made surprising gains recently, observers expect to see a reading of more than 200,000 jobs, with the jobless rate holding at 8.3 per cent. "We don't anticipate a further rise in the jobless rate, but we also don’t look for a break from the recent lacklustre pace of job growth either," deputy chief economist Douglas Porter of BMO Nesbitt Burns said of the Canadian report. "Mild weather will support some sectors (retail, construction, transportation), but could weigh on others (recreation)." In the markets, earnings are slowing down, but some biggies remain, notably Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Canadian Natural Resources Ltd., Dorel Industries Inc. and Viterra Inc., among others, which report throughout the week.
* Avg home price to fall 1.1 pct in 2012 to C$359,100
March 5 (Reuters) - Sales of existing homes in Canada are projected to increase slightly this year, but dip in 2013, the Canadian Real Estate Association said on Monday.
Sales are predicted to rise 0.3 percent in 2012 to 458,800 nationally, up from 457,305 in 2011, said CREA. The modest increase is attributed to rising demand in Alberta, Saskatchewan and Nova Scotia which is expected to offset declines in British Columbia, Ontario and New Brunswick.
However the trend is expected to reverse in 2013, with national sales dipping 0.3 percent to 457,200.
"So long as the European debt crisis is contained and a global economic recession avoided, low interest rates will support Canadian home sales and prices," CREA Chief Economist Gregory Klump said in a statement.
The Bank of Canada will make its next interest rate announcement this week with analysts anticipating no change to the current 1 percent target, according to a Reuters survey.
On Monday, Finance Minister Jim Flaherty said the Canadian economy should grow modestly and the budget deficit should gradually be eliminated.
CREA also said the average home price this year is expected to fall 1.1 percent from 2011 to C$359,100 ($363,500), down from C$363,116 in 2011. In 2013, the average price is forecast to rebound 0.9 percent to C$362,300.
Ten of 14 economists and strategists surveyed last month in Reuters' first poll on the Canadian housing sector said they expect home prices to stall with a mere 0.1 percent rise this year, and the same in 2013.
In contrast to the United States, the housing market in Canada has remained robust, though some officials have warned of rising household debt levels while mortgage rates remain low.
"There has been some moderation in the housing market. I remain concerned about the condo market, quite frankly," Flaherty said on Monday.
"Interest rates are relatively low, so I again encourage Canadians to be careful in the amount of debt they take on in terms of residential mortgages because rates will go up some day and I would not want people to get caught."
March 5, 2012 Thomson Reuters Article, available online at http://www.reuters.com/article/2012/03/05/canada-economy-housing-idUSL2E8E569Z20120305
In its 2012 Budget announced yesterday, the Provincial Government announced a temporary one-time refundable personal income tax credit worth up to $10,000. Details are on the information sheet below obtained from the Government Website. No doubt the accountants will be busier...
THE B.C. FIRST-TIME NEW HOME BUYERS' BONUS
Subject to approval by the legislature, the B.C. government intends to implement;a temporary BC First-Time New Home Buyers' Bonus. Effective February 21, 2012,to March 31, 2013, the bonus is a one-time refundable personal income tax credit worth up to $10,000. Requirements to Qualify for the Bonus
ELIGIBLE FIRST-TIME NEW HOME BUYER
You will qualify as a first-time new home buyer if: You purchase or build an eligible new home located in B.C. You, or for couples, you and your spouse or common law partner, have never previously owned a primary residence You file a 2011 B.C. resident personal income tax return, or if you move to B.C. after December 31, 2011, you file a 2012 B.C. resident personal income tax return(you will not be eligible for the bonus if you move to B.C. after December 31, 2012); You are eligible for the B.C. HST New Housing Rebate; and you intend to live in the home as your primary residence.
ELIGIBLE NEW HOME
An eligible new home includes new homes (i.e., newly constructed and substantially renovated homes) that are purchased from a builder and that are owner-built. The bonus will be available in respect of new homes purchased from a builder where: A written agreement of purchase and sale is entered into on or after February 21, 2012; HST is payable on the home (e.g., HST will generally be payable if ownership or possession of the home transfers before April 1, 2013 - see further details below); and no one else has claimed a bonus in respect of the home. The bonus will be available in respect of owner-built homes where:A written agreement of purchase and sale in respect of the land and building is entered into on or after February 21, 2012; Construction of the home is complete, or the home is occupied, before April 1, 2013;and no one else has claimed a bonus in respect of the home.; A substantially renovated home is one where all or substantially all of the interior;of a building has been removed or replaced. Generally, 90% or more of the interior of the house must be renovated to qualify as a substantially renovated home.
Amount of the Bonus
MAXIMUM AMOUNT
The bonus is equal to 5% of the purchase price of the home (or in the case of owner-built homes, 5% of the land and construction costs subject to HST) to a maximum of $10,000.; PHASE-OUT FOR HIGHER INCOME
The bonus will be reduced based on an individual's/couple's net income (line 236 of your income tax return) using the following formula: For single individuals, the bonus is reduced by 20 cents for every dollar in net;income over $150,000 (bonus is reduced to zero at $200,000 net income).For couples, the bonus is reduced by 10 cents for every dollar in family net income over $150,000 (bonus is reduced to zero at $250,000 family net income).
THE B.C. FIRST-TIME NEW HOME BUYERS' BONUS
Additional Information
APPLICATION PROCESS
Individuals must apply for the bonus through the B.C. government. Individuals can apply once application forms have been posted on the B.C. Ministry of Finance website later this year. Applicants will be required to submit;documentation demonstrating;eligibility for the bonus.
ELIGIBLE NEW HOME
The bonus is available in respect of new homes (i.e., newly constructed and substantially renovated homes)where HST is payable. HST will generally be payable on homes purchased from a builder where ownership or possession transfer before April 1, 2013. Potential;buyers should consult with the builder to determine if the home will be subject to the HST. For owner-built homes, the bonus will be based on land and construction costs subject to the HST. Eligible new homes will include: Detached Houses, semi-detached houses, duplexes and townhouses,Residential condominium units,Mobile homes and floating homes, and ;Residential units in a cooperative housing corporation.
Tourism Vancouver’s new destination film is blazing a trail around the globe via social media. Just one week after its official release, “It’s You…Vancouver” has received more than 100,000 views in 87 countries worldwide.
Incorporating a local band and original song, Tourism Vancouver’s three-minute production is among the world’s first professionally produced destination films in music video format.
The song is performed by Watasun, a local duo whose music fuses urban beats with traditional folk sounds. The word ‘Watasun’ simply means ‘Life’.
Throughout the video, the band perform their catchy tune while making appearances in, near or atop iconic Vancouver attractions, including snow-covered Grouse Mountain, an Aquabus ferry and the newly renovated BC Place stadium.
In collaboration with Watasun, along with partners Silent Joe West and Barbershop Films, Tourism Vancouver released the video last week through various social media channels, including the organization’s Inside Vancouver blog, Twitter accounts, Facebook page and YouTube.
In addition, Tourism Vancouver members and industry partners were encouraged to help extend the video’s reach by using it in their own marketing initiatives.
“We’re thrilled at the interest our destination film has received both locally and internationally,” said Walt Judas, vice president of Marketing Communications and Member Services at Tourism Vancouver.
“Locals love it, and we’ve had views from as far away as Kenya, Thailand and Jamaica. It’s extremely validating that taking an unconventional approach has paid off and called worldwide attention to Vancouver.”
“We shot the video for ‘It’s You… Vancouver’ over the course of six days, playing the song at least a couple hundred times,” said Watasun’s Reid Hendry.
“It was the first time Adam and I had made a video of such magnitude. Luckily, we had an amazing crew from Barbershop Films and beautiful scenery to keep us motivated. The whole experience reminded us that we can enjoy Vancouver’s natural beauty throughout the year, all around the city – anyone can.”
The government today announced the HST/PST transitional rules on new homes.
As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:
The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.
The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.
Buyers 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.
For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.
HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:
entirely under the HST;
entirely under the PST; or
partly under HST and partly under the PST.
The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.
The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®.
Economists often get a bad rap for seeing the world as exclusively a glass half empty. Given this reputation, it is not surprising that economics is dubbed the ‘dismal science.’ Still, they are also known to call a spade a spade when they see it. We must do just this when we say that the Canadian economy ended last year on a more positive note than they had last predicted. This momentum represents a solid hand-off into 2012. What’s more, financial markets so far this year have enjoyed the absence of volatility that was the dominant theme for 2011.
The latest tracking shows the Canadian economy grew by 2.0-2.5% in the fourth quarter annualized an upside from most banks December forecast. An important part of the story has been Canadian consumers. We saw evidence of this in the retail sales’ numbers for November. They grew month-over-month by 0.3% in real terms and an even stronger 0.5% in nominal terms. With Black Friday and Cyber Monday increasingly becoming important calendar events on this side of the border, retailers were hoping to capitalize on greater mall traffic as consumers stocked up for the holiday season. We will have to wait and see if November’s gain comes at a cost to December. However, data so far suggest that there is an upside risk to our consumer expenditure forecast for the fourth quarter of 2011. The 2012 economic outlook should also be helped by higher consumer and business sentiment.
Also this week, the U.S. Federal Reserve injected further monetary stimulus into its economy by telling markets and investors that it plans to keep its interest rates at near-zero levels until late 2014, or eighteen months longer than was previously stated. In the fallout of the announcement, U.S. and Canadian bond yields fell across the curve. In terms of currency, the loonie reached parity with the U.S. dollar yesterday for the first time since November 2011.
Business investment is expected to be a bright spot in the outlook given the low borrowing conditions and strong currency. The forecast is that Canadians will continue to spend, creating positive pressure for the domestic side of our national forecast. This spending behaviour does not come without repercussions. Canadian households are already posting record debt levels. What’s more, the longer low rates persist, the more difficult it will be to reverse course. If consumers continue to spur heightened real estate activity as well, there could be a larger and steeper correction for the housing market than the 10-15% that has been incorporated into various forecasts over the next few years in certain parts of Canada, but there will be an increase in values in other areas; like Downtown Vancouver and notably commercial real estate in neighbourhoods like Gastown, Chinatown, and the Downtown Eastside Harbour front. Given where this note has ended, perhaps it’s true that economists cannot say sunny and rosy for too long. At the same time, it’s prudent to constantly look for risks, such that there are no surprises if they come to materialize.
Excerpt from January 2012 Action Forex article by TD Bank Financial Group, available online at http://www.actionforex.com/analysis/weekly-forex-fundamentals/the-weekly-bottom-line-20120128158365/
Does the looming tax deadline have you gritting your teeth? Here's how to get a bigger, better refund.
Does the looming tax deadline have you gritting your teeth? We all have to pay our taxes. And nobody wants to pay too much.
“Unfortunately, people tend to pay more tax than they need to because they do tend to overlook some of the savings they can take advantage of,” said Carol Bezaire, vice-president, tax and estate planning, at Mackenzie Financial.
A deduction is valuable because it reduces your income for tax purposes.
Rack up enough of deductions and you’ll pull yourself down into a lower tax bracket and end up with a big refund, if you’re lucky.
These are worth more to those in higher tax brackets. By contrast, a non-refundable tax credit reduces the amount of taxes owed. The value is the same for everyone. The term “non-refundable” refers to the fact that if the tax credit exceeds the amount of tax payable, you won’t get a refund for the difference.
1. RRSPs: Contributions to Registered Retirement Savings Plans are the mother of all tax deductions. Roughly speaking, you are allowed to contribute up to 18 per cent of your earned income from the previous year, and deduct that amount from your income at tax time.
The government even gives you an extra two months past the end of the previous calendar year to sock that money away. (That’s why January and February are known as RRSP season.) The trick here is that you can carry forward contribution room indefinitely.
You can also carry the deduction forward to use in a year when your income is higher. Check your Notice of Assessment from the Canada Revenue Agency for more details about how much you are allowed to contribute and deduct.
If you carry forward those RRSP contributions to deduct in a future year, keep track of them carefull. This amount will determine how much you can put into your account in the current year.
2. Capital losses: Losses from buying and selling shares in an unregistered account (not your RRSP or your TFSA) can be carried back to any of the previous three years or carried forward indefinitely. These can be applied against capital gains to reduce your total income from investments.]
3. An equivalent-to-spouse-tax-credit: Taxpayers who are single, divorced or separated with children, can be claimed for a child. This non-refundable tax credit is worth $10,527 this year federally. (That’s multiplied by 15 per cent when calculating the final credit, but it’s still far higher than the $4,282 tax credit for a dependent child.)
In the case of a child, the dependent has to be a Canadian, resident, under 18, and financially dependent on you.
4. Child care expenses: These expenses, whether for a nanny or day-care centre, must be claimed by the parent with lower net income in most cases. Allowable expenses are those paid for the care of a child age 6 or under, to enable the parent to work, carry on a business, or go to school.
5. Medical expenses: Claim non-refundable tax credits for medical expenses paid by either you or your spouse or common-law partner.
“People forget to take a look or they assume it’s not eligible,” Bezaire said. But, in fact, any non-reimbursed medical expense can be claimed, including prescription medication, dental surgery that’s not covered by insurance, or laser eye surgery.
Expenses that total more than $2,052 or 3 per cent of net income can be claimed. To make the most of the tax credit, the expenses should be claimed by the person with the lower net income, Bezaire said.
6. Moving expenses: If you moved at least 40 km to be closer to a new job, run a business, or go to school, you may deduct the moving expenses. Eligible expenses include transportation and storage costs, reasonable costs for meals and accommodations, real estate commission, legal fees, and costs related to changing your address, such as replacing your driver’s licence and connecting or disconnecting utilities.
“What many people overlook is that you can claim the cost of moving your children to university or college,” Bezaire said. [More: 10 tax tips to save you money]
7. Carrying charges: This refers to costs incurred in order to earn income on your investments. Fees paid for the management of your investments, other than commissions, are eligible. If you use a safety deposit box for safekeeping your investments, you can claim the cost as a carrying charge.
8. Physical fitness and arts activities for children: Eligible programs must be supervised, appropriate for children and must be at least eight consecutive weeks or five consecutive days long, with at least half of the activities involving a significant amount of physical or artistic activity.
Additional tax credits are available for a child with a disability. The sports programs must build muscular strength, endurance, flexibility and balance. On the arts side, eligible programs can focus on literary, visual or performing arts, music or language.
9. Charitable donations: keep in mind that these donations can be carried forward.
“If you’re doing your housekeeping and find a charity receipt and you say, ‘rats, I didn’t use it’, hang on to it. You can still use it still.
If you have a spouse, pool them and include them on the return of the person who pays the most tax, she added.
January 27, 2012 YahooFinance Article by Madhari Acharya-Tom Yew, available online at http://ca.finance.yahoo.com/news/9-tax-deductions-canadians-often-miss.html
Vancouver is the world’s second-least affordable major city to buy a house, according to an annual survey of global housing markets.
The Eighth Annual Demographia International Housing Affordability Survey covers 325 metropolitan markets around the world.
It measures the markets using something called the “median multiple,” which is the median house price divided by gross annual median household income.
The study comes as Canadian banks worry about the state of the market and economists suggest prices could drop by as much as 10 per cent in cities such as Vancouver and Toronto.
Canada was the third most affordable market, behind the United States and Ireland. The markets that were surveyed were Australia, Canada, China (Hong Kong), Ireland, United Kingdom and the United States.
The report suggests the country is actually a very affordable place to own a home. There’s a catch, of course. It depends where you buy. And it’s a big country.
At 10.6 – with prices at $678,500 and incomes at $63,800 - Vancouver comes second only to Hong Kong in the major market category (cities over one million population), which has a rating of 12.6 ($3.1-million median house price, with income at $249,000).
Toronto sits in 18th place ($406,400/$73,600), sandwiched between Boston and Los Angeles with a rating of 5.5.
Montreal is the world’s 23rd least affordable market, with a rating of 5.1 ($281,700/$54,700).
“Canada’s Median Multiple was 3.5, indicating slightly deteriorating housing performance from last year’s 3.4,” the report states.
“All of the 128 affordable markets (having a Median Multiple of 3.0 or below) were in Ireland, Canada and the United States. There were 117 affordable markets in the United States and nine affordable markets in Canada and two affordable markets in Ireland.”
There were no affordable markets in Australia, New Zealand or the United Kingdom.
“The 87 moderately unaffordable markets were divided between the United States (64), Canada (19), Ireland (3) and the United Kingdom (1). There were no moderately unaffordable markets in Australia or New Zealand.”
The report said the world’s least affordable markets all had something in common – “each of the least affordable markets were characterized by more restrictive land-use regulations which materially increases the price of land and makes housing less affordable.”
The most affordable major market in the world was Detroit, with a multiple of 1.4 ($66,500/$48,700).
Over all, Windsor was the most affordable Canadian city of any size, with a ratio of 2.2 ($149,900/ $67,900).
January 23, 2012 Globe & Mail Update, available online at http://www.theglobeandmail.com/report-on-business/economy/housing/vancouver-among-worlds-least-affordable-housing-markets/article2311279/
