Market update from wesellvancouver

Conditions continue to favour buyers in the Greater Vancouver housing market

The summer of 2012 drew to a close in September with home sale activity well below historical averages in the Greater Vancouver housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 1,516 in September, a 32.5 per cent decline compared to the 2,246 sales in September 2011 and an 8.1 per cent decline compared to the 1,649 sales in August 2012.

September sales were 41.6 per cent below the 10-year September sales average of 2,597.

wesellvancouver wants to inform people that there has been a clear reduction in the demand the past three months since the federal government made the decision to eliminate the availability of a 30-year amortization on government-insured mortgages which is now making homes less affordable for the people in the region.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,321 in September. This represents a 6.3 per cent decline compared to September 2011 when 5,680 properties were listed for sale on the MLS® and a 31.6 per cent increase compared to the 4,044 new listings in August 2012.

At 18,350, the total number of residential property listings on the MLS® increased 14.1 per cent from this time last year and increased 4.5 per cent compared to August 2012.

Since March our sales-to-active listing ratio was 19 percent because this ratio has been declining and now our current ratio sits at 8 percent which puts us into a buyer’s market.

The MLS HPI® composite benchmark price for all residential properties in Greater Vancouver is $606,100. This represents a decline of 0.8 per cent compared to this time last year and a decline of 2.3 per cent over last three months.

Sales of detached properties on the MLS® in September 2012 reached 594, a decrease of 37.9 per cent from the 957 detached sales recorded in September 2011, and a 31.4 per cent decrease from the 866 units sold in September 2010. The benchmark price for detached properties decreased 0.5 per cent from September 2011 to $935,600.

Sales of apartment properties reached 676 in September 2012, a 26.7 per cent decrease compared to the 922 sales in September 2011, and a decrease of 30.4 per cent compared to the 971 sales in September 2010. The benchmark price of an apartment property decreased 0.7 per cent from September 2011 to $368,600.

Attached property sales in September 2012 totalled 246, a 33 per cent decrease compared to the 367 sales in September 2011, and a 35.8 per cent decrease from the 383 attached properties sold in September 2010. The benchmark price of an attached unit decreased 2.7 per cent between September 2011 and 2012 to $458,600.

Amalia Liapis states, “While I expect the market to remain slow, I do believe we will see a slight increase in activity mid to late October, lasting until sometime in November. From there, I anticipate the market to remain quiet until the end of February. Now is a great opportunity for Buyers looking to upgrade, as prices have trended downwards and interest rates remain low”.

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Resolving strata disputes will soon become faster, more accessible and more affordable thanks to recent provincial legislation.

 Bill 44: The Civil Resolution Tribunal Act, which passed in 2012, creates an independent body, the Civil Resolution Tribunal, which will provide dispute resolution tools as an alternative to going to court. The tribunal is expected to be operational by 2014.

 This is welcome news for the Real Estate Board of Greater Vancouver, which together with BC Real Estate Association (BCREA) had, for many years, voiced concerns about strata property legislation.

BCREA advocated for this change and in 2011 reiterated the industry’s position during the province’s 2011 consultation process on strata dispute resolution.

 Who can access tribunal services?

Strata corporations, strata owners and tenants will be able to access tribunal services. 
• If two individuals are in a dispute, both must need to agree to participate in the tribunal.
• If a strata owner or a tenant decides to use tribunal services, the affected strata corporation must participate.

 The tribunal will have the authority to handle strata disputes between strata property owners and strata corporations, including: 

• non-payment of monthly strata fees or fines;
• unfair actions by the strata corporation or by those owning more than half of the strata lots in a complex;
• uneven, arbitrary or non-enforcement of strata bylaws (such as smoking, noise, pets, parking, rentals);
• issues of financial responsibility for repairs and the choice of bids for services;
• irregularities in the conduct of meetings, voting, minutes or other matters;
• interpretation of the legislation, regulations or bylaws; and
• issues regarding common property.

 The tribunal will not decide matters that affect land, including: 

• ordering the sale of a strata lot;
• court orders respecting rebuilding damaged real property;
• dealing with developers and phased strata plans; or
• determining each owner’s per cent share in the strata complex (the “Schedule of Unit Entitlement”).

 These matters will continue to be heard in the BC Supreme Court, as will other matters, including: 

• the appointment of an administrator to run the strata corporation;
• orders vesting authority in a liquidator;
• applications to wind up a strata corporation;
• allegations of conflicts of interest by council members; or
• appointment of voters when there is no person to vote in respect of a strata lot.

 How will tribunal services be accessed?

The tribunal services will be available online 24/7. Assistance will also be offered by phone, mail or even in person. Disputes are expected to be resolved within 60 days, compared to 12 to 18 months for the court process.

 The tribunal will have five stages

Souce: BC Ministry of Justice

 Stage 1 - Self-Help

Information and tools will be available online 24/7 to help parties resolve disputes.

Stage 2 - Online Party-to-Party Negotiations

If Stage 1 fails, parties can go through a guided negotiation monitored by tribunal staff.

Stage 3 - Facilitated Settlement

Where an agreement is still not reached, parties can pay applicable fees and request active facilitation by the tribunal involving mediation or other dispute resolution processes. All parties must consent.

Stage 4 - Case Management Preparation

A case manager will facilitate mediation and explore options for settlement.

Stage 5 - Adjudication

Any dispute not settled by agreement will be heard by an adjudicator with the authority to decide the outcome and make binding decisions.

Fees for tribunal resolution of a dispute have not been finalized.

 Learn more

Information on strata property and the tribunal available at: www.housing.gov.bc.ca/strata

The MLS HPI benchmark price for all residential properties in the region is currently $616,000, that’s an increase of less than 1% compared to July 2011. However, we have seen slight reductions in home prices over the last 3 months. 

Resident or non-resident?
Under Canada’s income tax system, whether and individual is a resident or a non-resident can play a significant role in how much tax they pay.

• A resident must pay Canadian income tax on his/her worldwide income from all sources.
• A non-resident must pay Canadian income tax only on income from sources inside Canada.

Residents
Canada Revenue Agency (CRA) defines a resident as someone who has lived in Canada for a minimum of 183 days within the past year.
If your client is considered a resident of Canada, they will not have to pay taxes owing on the sale of property in Canada until they file their income tax return for the year in which they sold the property,

Non-residents
Your client is a non-resident for tax purposes if they:
• live in another country and are not considered a resident of Canada;
• do not have significant residential ties including a home, spouse or common law partner or property in Canada; and
                • live outside Canada through the tax year; or
                • stay in Canada for less than 183 days in the tax year.
For information visit www.cra.gc.ca and in the search box enter IT221R3. This will take you to a form, Determination of an Individual’s Residence Status.
If your client would like a CRA opinion about their residency status, they should complete and submit Form NR74, Determination of Residency Status (Entering Canada). Visit www.cra.gc.ca and in the search box enter NR74.

Non-residents and property ownership
A non-resident who buys a property and does not rent it, and does not earn income in Canada does not have to file an income tax return.

Non-residents and rental property
A non-resident property owner who rents their property is required to pay a 25% withholding tax on either gross or net rent and have it remitted monthly.

1. Withholding tax on gross rent
A non-resident property owner withholding 25% of the gross rent is required to have a Canadian agent remit the withholding tax to CRA within 15 days or each month-end together with Form NR4 Statement of Amounts Paid or Credited to Non-Residents of Canada.

2. Withholding tax on net rent
A non-resident property owner can apply to have the 25% withholding tax applier to net income instead of gross income, under Section 216 of the Income Tax Act. This will allow the owner to deduct expenses such as mortgage interest, property taxes and maintenance. 

If CRA approves withholding on the net rent rather that gross rent then non-resident property owners must file Form NR6, Undertaking to File and Income Tax Return by a Non-Resident Receiving Rent from Real Property or Receiving a Timber Royalty.
When filing Form NR6, the owner or property manager must still report the gross amount of rental income for the entire year on Form NR4.
A non-resident owner must also file a Section 216 income tax return for the year even if the property owner has no tax payable or no refund coming.

When a non-resident sells a property
All non-resident sellers of Canadian property (including assigning a pre-sale) must notify the CRA within 10 days of the date of the property sale to obtain a Certificate of Compliance and remit 25% of any capital gain (profit).
The Certificate of Compliance is proof that the CRA has received prepayment of the taxes owing on profits. The tax is 25% more of the difference between the sale price and the cost of the property including improvements made during ownership.
If the seller doesn’t obtain a Certificate of Compliance, their notary or lawyer must withhold and remit 25% of the gross proceeds of the sale to CRA.
Buyers also typically request a holdback of 25% or more of the purchase price until the Certificate of Compliance is delivered.
This is to protect the buyer. If a seller were to disappear without paying the required taxes, they buyer would be liable for those taxes.
Sellers taking a loss on a property must obtain a Certificate of Compliance; otherwise 25% of the sale price will be used as a holdback
When a non-resident owner sells a Canadian property that has never been rented, they must complete a Section 116 income tax return, Procedures Concerning the Disposition of Taxable Canadian Property by Non-residents of Canada – Section 116. (Visit CRA website and in the search box enter IC72-17R6).
When a non-resident owner sells a Canadian property that has been rented, they must complete a Section 216 income tax return in the year after the sale. This allows them to claim a refund on their income tax for expenses related to the sale such as notary of legal fees, inspection and survey fees and realtor commissions when they file their tax return.
This return must be filed by April 30.

Article from The Open House, July 27, 2012, Volume 7, Number 8

The REALTOR® Commitment

You're trusting a REALTOR® with your most valuable possession: your home. REALTORS® take this responsibility very seriously. Here's what a REALTOR® promises:
• Your REALTOR® is highly trained
• Your REALTOR® is continuously trained
• Your REALTOR® does everything by the book
• Your REALTOR® is an ethical business person
• Your dealings with a REALTOR® are insured
• Opportunity for recourse
• Your REALTOR® will grant you access to the exclusive Multiple Listing Service®

These measures will take effect July 9, 2012.

The number of properties listed for sale continued to increase in the Greater Vancouver housing market in May. The number of sales decreased year over year, but remained relatively constant compared to recent months.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,853 on the Multiple Listing Service® (MLS®) in May 2012. This represents a 15.5 per cent decline compared to the 3,377 sales recorded in May 2011.

May sales were the lowest total for the month in the region since 2001 and 21.1 per cent below the 10-year May sales average of 3,617. However, sales have been constant throughout the spring months, with 2,874 sales in March and 2,799 sales in April.

“Home sellers have outpaced buyers in recent months, however, there continues to be an overall balance between supply and demand in our marketplace,” Eugen Klein, REBGV president said.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,927 in May 2012. This represents a 16.8 per cent increase compared to May 2011 when 5,931 homes were listed for sale and a 14.4 per cent increase compared to April 2012 when 6,056 homes were listed for sale on the region’s MLS®.

Last month’s new listing total was 15.3 per cent above the 10-year average for listings in Greater Vancouver for May.

At 17,835, the total number of homes listed for sale on the region’s MLS® increased 7.9 per cent in May compared to last month and increased 21 per cent from this time last year.

“Our sales-to-active-listing ratio sits at 16 per cent, which is indicative of balanced market conditions,” Klein said. “As a result of this stability, home prices at the regional level have seen little fluctuation over the last six month.”

The MLS® HPI benchmark price* for all residential properties in Greater Vancouver currently sits at $625,100, up 3.3 per cent compared to May 2011 and up 2.4 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland** is $558,300, which is a 3 per cent increase compared to May 2011 and a 2.3 per cent increase compared to three months ago.  

Sales of detached properties on the MLS® in May 2012 reached 1,180, a decline of 24.8 per cent from the 1,570 detached sales recorded in May 2011, and a 6.1 per cent decrease from the 1,256 units sold in May 2010. The benchmark price for detached properties increased 5.1 per cent from May 2011 to $967,500.

Sales of apartment properties reached 1,156 in May 2012, a decline of 5.9 per cent compared to the 1,228 sales in May 2011, and a decrease of 14.6 per cent compared to the 1,354 sales in May 2010.The benchmark price of an apartment property increased 1.7 per cent from May 2011 to $379,700.

Townhome property sales in May 2012 totalled 517, a decline of 10.7 per cent compared to the 579 sales in May 2011, and a 5.3 per cent decrease from the 546 townhome properties sold in May 2010. The benchmark price of a townhome unit increased 0.9 per cent between May 2011 and 2012 to $470,000.

Article from the Real Estate Board of Greater Vancouver, June 4, 2012, available online at http://www.rebgv.org/news-statistics/spring-activity-remains-balanced-greater-vancouver-housing-market-0

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.

Excerpt from Real Estate Weekly

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.

As always I am available for any questions.

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.

 Excerpt from realtylink, 2012

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.

BC Ministry of Small Business and Revenue
www.sbr.gov.bc.ca/individuals/Property_ Taxes/Property_Tax_Deferment/ptd.htm

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.

www.vancity.com/Loans/BrightIdeas

www.rbcroyalbank.com/ products/personalloans/energy-saver-loan.html

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

18) BC Hydro Appliance Rebates
Mail-in rebates for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers.
www.bchydro.com/rebates_savings/appliance_rebates.html
1.800.224.9376

19) BC Hydro Fridge Buy-Back Program
This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.
www.bchydro.com/rebates_savings/fridge_buy_back.html
604.881.4357

20) BC Hydro Windows Rebate Program
Pay no HST when you buy ENERGY STAR high-performance windows and doors.
www.bchydro.com/rebates_savings/windows_ offers/current_offers.htm
604.759.2759 for a free in-home estimate.

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.

www.vancouver.ca/energyloan

www.vancity.com/Loans/homeenergy

http://energyloan.eventbrite.com
Email: energyloan@vancouver.ca
604.374.0507

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.

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

Investing 101 Novice investors took plunge on becoming landlords in small-town British Columbia

Investors: Professional working couple

Investment: Rental condo

Strategy: Buy, rent out, sell

Time frame: 4 years

Bought for: $50,000

Rented for: $400 per month

Sold for: $85,000

First time investing can feel a little intimidating in the beginning. As a young professional couple, we questioned whether investing was a smart idea at all. 

We worried about risking our savings and taking out another mortgage. If we had extra finances, why not use it to pay down our current mortgage? We were concerned about finding the right property to invest in. How far would we need to travel to get something in our price range? How would we know if we were getting a good deal? Then we knew we'd have the ordeal of finding good tenants and maintaining a property from afar. With both of us being academics, rather than handy or businesslike, these were real concerns.

Yet , we saw that real estate had the potential of bringing in a better return on our investment than did our measly 2.5 per cent "high-interest" savings account. WE could keep a property short term and bring in a chunk of money to apply to our next real estate purchase or another investment.

Where to start?

To start, you need to decide what to invest in and how much moeny you want to put into it. In our case, as people who generally avoid risk, we decided on finding something we could afford, where the rent would pretty much pay for the mortgage. For us to feel secure, that meant looking for out-of-town older residential apartments.

Finding a property

Finding an area was our first challenge. We looked at small towns with properties in our price range, and tried to locate places where big companies were moving to, growth was projected and residential vacancy rates were low. We choose Kimberley, B.C., which had opened a ski resort and had an airport close by. The only problem.... it was 12 hours away.

This meant we had to get pre-approved with a good mortgage broker who could act from afar if necessary. We also had to check out what had been selling, what the average prices where and what units were renting. And finding a good realtor was essential. We phoned and emailed a couple before settling on one we believed we could trust. By the time we visited, we were in good position to view suites of interest to us and make offers on any good deals we saw.

We wasted some time getting distracted by nicer places rather than what we could afford. On the other hand, it was still important to do the work to find a unit that would be easy to rent at decent rate. So, we spent a lot of time understanding the area, looking for an accessible building with a great location and amneties nearby. After viewing several units, we found the one we wanted to make an offer on. We made sure to do our due diligence: read the strata minutes, walked the suites, got a home inspector in, talked to neighbours and collected as much information as we could. Eventually, we bought a 600- square foot condo on the ground floor of a low-rise building, which was walking distance to town centre and a short drive from the ski hill.

Expenses

We were surprised by all the costs we hadn't anticipated with our investment property. In the end, the rent we received did not cover our costs and we had to subsidize it by about $100 per month when the suite was rented, and $500 when it was not. Think about how much you are able to put into this at the beginning and throughout. At the outset, consider not only the down payment, mortgage and legal fees, but any potential upgrades you may require to attract a higher rent. On an ongoing basis, remember you'll need to cover strata fees, maintenance, insurance, property taxes (with no homeowner's grant). Also, we found city utilities in a small town astronomical compared with our residence in the city. In addition, don't forget to set aside money for emergencies - months when your unit sits vacant when a tenant bails, replacing appliances, or special levies. And don't forget about capital gains tax when you sell.

Tenants

To attact a good rental income, you want to make your apartment as appealing as possible to tenants. This can mean getting it properly cleaned, painted and perhaps replacing cupboards or appliances that our outdated to give your suite an edge over others in the building. We lucked out by finding a relaiable person to check our suite between tenants, and a good affordable painter. 

Although we could have directly managed the tenants, we decided to get some help as we were so far away. During the four years we owned the suite, we had three different rental experiences - a rental pool and two different proerpty managers. In the rental pool, several units pooled their rents together and then split it proportionally (by square feet),  regardless of whether units were rented or not. This allowed for a regular income stream, but in the end felt frustrating to those whose units were always rented.

Management

Finally, we found an excellent solution - an independent property manager. He charged us 10 per cent of the rent, but found us a tenant who never left. He also had excellent relationships with service providers, including a plumber, electrician and carpenter, so repairs could be quickly handled. Having the property manager gave us the peace of mind that our property was being looked after. 

Our strata also voted on being able to communicate and vote electronically if necessary. Above all, we found that one of the best methods to ensure that our unit was looked after was to show extra apprecaition to everyone involved.

Cashing out

In the end, no matter how pleasant your situation is, you are still looking to make money on your investment. For us, as we saw prices rising, we allowed our place to sit vacant, got it repainted again and put it on the market. After four years, we decided it was time to liquidate our investment property. We made quite a good profit, something that never could have happened in four years with a savings account.

Overall, buying and selling our first investment property was a scary but exhilarating process. This experience gave us the confidence that we can buy and sell real estate. In the end, we made a chunk of moeny we never would have if we didn't take the risk, and look forward to taking the plunge again.

Article taken from January 2012 Edition of Western Investor (www.westerninvestor.com)

Moving forward to our Fall market, I expect an increase in housing/land prices and a stable condo/townhome market. The exception will be view properties, which will see a significant spike in demand and pricing in an increasingly competitive market.

VANCOUVER, B.C. – July 5, 2011 - Home sellers outpaced buyers on Greater Vancouver’s Multiple Listings Service® (MLS®) in June, drawing the market back toward balance this summer. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 3,262 in June, a 9.8 per cent increase compared to the 2,972 sales in June 2010 and a 3.4 per cent decline compared to the 3,377 sales in May 2011.