Posted on
February 17, 2012
by
Bob Sethi (RE/MAX Westcoast)
Threshold being raised to $850,000 effective April 1, 2012
Government announces the transition rules for the HST early
BURNABY, BC (February 17, 2012) - The Honourable Kevin Falcon, Minister of Finance held a press conference today in Victoria to announce transition rules for the harmonized sales tax and the affect it will have on the home building industry. Effective April 1, 2012 the threshold for new housing rebates will be increased from $525,000 to $850,000, including secondary homes.
"We are elated the Provincial Ministry of Finance and the Federal Finance Department asked for our input and that our provincial government listened to the lobbying efforts of CHBA BC," said CEO, M.J. Whitemarsh. "We had the confidence the Government would take our concerns to heart and implement the best solution for our industry, the news today was worth the wait and is even better than we could have anticipated."
Since the referendum results to rescind the tax, the Canadian Home Builders' Association of BC (CHBA BC) has worked diligently providing information from members to the government requesting the implementation of the transition rules be done as simply and quickly as possible to prevent any further stalling of the residential housing industry.
"The out-of-box forward thinking from the Government has created a stable situation for all CHBA BC members who build secondary homes," Whitemarsh said. "Houses purchased as of April 1st will ultimately be receiving a $42,500 discount, now that the threshold has been raised."
Releasing the transition rules on housing early was a wise and bold move on government's part, one that is mutually beneficial. CHBA BC lobbied for a tax rebate to be created for consumers on new home purchases and renovations, so the industry could move forward and gain momentum once again.
"Raising the threshold is a brilliant decision that is fair and equitable, a huge benefit to all consumers that will spur the market," said Doug Wittal, President of CHBA BC. "Including the second home market outside the GVRD and CRD will create a huge boom, creating jobs and pushing the industry forward in very innovative ways."
The 2012 budget will be announced Tuesday, February 21, 2012.
For more on how the transition rules affect your new home purchase contact me at bob@bobsethi.com.
Taken from CHBA BC. The Canadian Home Builders' Association of British Columbia is the voice of the residential construction industry in BC fostering a housing environment in which the industry operates effectively and professionally.
Posted on
February 8, 2012
by
Bob Sethi (RE/MAX Westcoast)
Grade 12 Bursary Program Now Accepting Applications
What is the RE/MAX Quest for Excellence?
The Quest for Excellence Program is a bursary program for grade 12 students in Western Canada. It was established by RE/MAX of Western Canada to recognize the success and ongoing pursuits of Western Canadian students in regards to leadership and community contribution initiatives. Scroll down to enter.
What is Awarded?
RE/MAX of Western Canada will award 16 bursaries of $1,000 each to qualifying Grade 12 students. In addition, the 16 bursary winners will be entered into a draw and one lucky recipient will receive a RE/MAX Hot Air Balloon ride for two. Bursary winners will be notified in May, 2012.
All Winners will be posted in May 2012.
Who Can Participate?
The Quest for Excellence is open to all Grade 12 students attending high school from September, 2011 – June, 2012. Grade 12 students may not have participated in graduation commencement ceremonies in the past. Applicants must be a resident of one of the following provinces/territories.
• British Columbia
• Alberta
• Saskatchewan
• Manitoba
• Yukon Territory
What is Required?
Students are to convey the contributions they have made to their communities in a short online essay, maximum 1,250 words. Key qualities students should demonstrate are leadership, motivation and communication skills. Other attributes may include volunteering, participation in charitable events or fundraising, and contributions that enrich the lives of others and their communities.
Note: All entries become the property of RE/MAX of Western Canada and photos and names of winners may be used in print publications and media.
Submission Instructions
Complete the following on-line application form.
Deadline for entry is March 12th, 2012.
A maximum of one on-line essay per student.
Posted on
September 7, 2011
by
Bob Sethi (RE/MAX Westcoast)
Important information on the HST referendum
The Provincial Government has received the results of the HST referendum. The outcome was decisive, with just under 55% of voters choosing to extinguish the HST and return the province to a system of taxation using both the PST and GST.
The government says no changes will occur until at least May 2013. There is no information yet on what the details of the tax system will look like at that time.
In terms of what this means to you, the HST is still in place and will be until at least May 2013. I will be updated this blog as we learn more. If you're interested in learning how this affects your plans to buy or sell real estate please contact me at:
Bob Sethi, RE/MAX Westcoast
604-273-2828
With information provided by the Real Estate Board of Greater Vancouver.
Posted on
August 11, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
2011, agricultural land reserve, ALR, apartments, April, attached, BC, bc hydro, BC Real Estate, benchmark price, Bridgeport RI, Brighouse, Brighouse South, Broadmoor, Burnaby East Real Estate, buyers, buying selling investing mortgage home equity loan loan to value ratio, change, cmhc, CMHC Goverment of Canada Line of Credit mortgage insurance amortization loan, detached, Downtown VW, East Burnaby, East Cambie, East Vancouver Burnaby, energy, families, first time homebuyer, fortis bc, Garden City, grants, Greater Vancouver, Greater Vancover, gst, gvhba vancouver real estate peter simpson cmhc bob rennie bob ransford u.s. mainland china tsawwassen nimby banana nope delta lo, Hamilton RI, harmonized tax, high density housing, home owner grant, house prices, Housing Price Index, HPI, hst, Immigration, investment, Ironwood, Kevin Falcon, Mainland China, McLennan, McLennan North, McNair, Metro Vancouver, Minister, MLS, mortgage rules 2011 cmhc goverment of canada mortgage insurance housing market bank of canada income borrowing, MV RGS, N. Delta Real Estate, New Westminster, New Westminster Real Estate, North Shore, North Surrey, North Surrey Real Estate, owners, problem solvers, property, Province, Provincial Government, PST, PTT, Queen Mary Park Surrey, Queensborough, RE/MAX, RE/MAX Housing Barometer Report 2010, Real Estate, Real Estate Board of Greater Vancouver, Realtors, rebates, REBGV, reduce, Regional Growth Strategy, rental, Richmond, Richmond condo strata development project six storey wood frame, Richmond Real Estate, Riverdale RI, Saunders, Schools, solar, South Arm, Steveston North, Steveston South, Sunshine Hills Woods, Surrey, Surrey City Centre, Surrey Real Estate, tax deferment, taxes, terasen, towhomes, vancouver, vancouver real estate rebgv statistics buying selling average prices market conditions, Vancouver West, water meter, West Cambie, West Newton, Whalley, WHL hockey RE/MAX
Changes to Canadian Immigration Rules
On June 24, the federal government instituted rule changes related to new applications under the Federal Immigrant Investor Program (IIP), the Federal Skilled Worker Program (FSW) and the Federal Entrepreneur Program. The changes are as follows:
- Federal Entrepreneur Program: A temporary moratorium on new applications.
- Federal Immigrant Investor Program (IIP): A cap of 700 new IIP applications will be considered for processing each year.
- Federal Skilled Worker Program (FSW): A cap of 10,000 new FSW applications, without an offer of arranged employment, will be considered for processing each year. Within the 10,000 cap, a maximum of 500 new applications per occupation will be considered each year.
BC, and Vancouver in particular, has been one of the primary recipients of immigrants under the IIP, accounting for half of total Canadian investor class immigration. From 2005 to 2010, over 30,000 investor class immigrants have located in BC, an average of about 5,000 per year. This number relates to roughly 2,000 households per year.
Implications
The Government's stated reason for instituting the application cap is to reduce a backlog in applications and to shorten wait times. In 2010 there were 3,223 applications approved under the IIP and the government has indicated that it has received applications well in excess of that number in recent years, creating a large backlog of applications. It has not indicated that it wishes to lower the number of immigrants processed under the IIP, but simply to reduce the current backlog.
Therefore, as old applications are still being processed, the implementation of the new rules may not have an impact on the number of immigrants entering under the IIP and therefore may not have a material impact on BC housing markets.
All information subject to verification by independent legal advice.
Posted on
May 31, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
agricultural land reserve, ALR, apartments, BC, BC Real Estate, high density housing, Immigration, Mainland China, Metro Vancouver, MV RGS, Regional Growth Strategy, Richmond, Schools, towhomes, Vancouver
Think housing in Vancouver is too expensive? That Metro Vancouver is becoming a market only for the rich or foreign investors? Seems local housing experts don't think so and they've got the numbers to back it up.
Tuesday's Globe and Mail interviewed Vancouver multi-family real estate marketer Bob Rennie and housing consultant Dale McClanaghan regarding Rennie's argument that Vancouver real estate is not expensive. Rather, as the stats prove, its prices in Richmond and Vancouver west side that are skewing market perceptions. With 30-year old single-family homes in Richmond selling between $800k-$1.3m and similar homes in Vancouver's west side selling for more adding those sales into the local stats is creating the perception that all of Metro Vancouver is expensive. Blaming foreign investors for driving the prices up is also not accurate. Rather, the buyers are new immigrants looking for the best homes for their families. With safe streets, plenty of schools, government supported medical system plus all the other reasons you and I choose to live here, who wouldn't want to live here?
Both Rennie and McClanaghan do agree that Metro Vancouver does need to do more to ensure a supply of mid-priced housing. This goal is the same shared by other large cities except Metro Vancouver's policies are not allowing for room to grow or a supply of land for housing.
Metro Vancouver's Regional Growth Strategy (MV RGS) has met heavy resistance from housing affordability experts and the housing industry. The MV RGS is designating where and what type of housing can be built. In most cases that means high-density multi-family apartments or townhomes with little allowance for new single-family homes. The MV RGS also locks away buildable land for the next 30 years continuing to drive up the cost of land and the (multi-family) homes built on it. The majority of these lands include ALR properties - lands that are not viable for farming due to small size, poor soil conditions or proximity to residential/industrial properties but more than suitable for housing. While these policies may win Metro Vancouver politicians points with special interest groups they are failing to address the current or future needs of homebuyers by limiting the supply of land to build single-family homes. After all, if buying a house is just attainable for current homebuyers how will future generations buy a home?
Read more of the interview at http://www.theglobeandmail.com/news/national/british-columbia/busting-the-myths-of-vancouver-real-estate/article2033738/ (The Globe and Mail, May 24, 2011)
If you have any questions or comments feel free to contact me directly.
Curious where home values in your neighborhood are going? Click here to find out.
Bob Sethi, BComm
RE/MAX Westcoast
o. 604-273-2828
f. 604-273-0685
e. bob@bobsethi.com
w. www.bobsethi.com
Not intended to solicit properties currently listed for sale. All information contained in this communication is believed to be correct and taken from reliable sources but should be independently verified by the recipient prior to purchasing and/or selling real estate. RE/MAX Westcoast. Each office independently owned and operated.
Unless otherwise stated, the opinions of the author are of the author alone. The contents of this communication, including any attachment(s), are confidential and may be privileged. If you are not the intended recipient (or are not receiving this communication on behalf of the intended recipient), please notify the Sender immediately and delete or destroy this communication without reading it, and without making, forwarding, or retaining any copy or record of it or its contents. Thank you. NOTE: We have taken precautions against viruses, but take no responsibility for loss or damage caused by any virus present.
Posted on
May 26, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
BC, change, families, GST, harmonized tax, HST, Kevin Falcon, Minister, Province, Provincial Government, PST, reduce
INFORMATION BULLETIN
|
2011FIN0051-000598
May 25, 2011 |
Ministry of Finance
|
Government commits to 10 per cent HST
VICTORIA –The Province is committing to bold, responsive, and balanced changes to the Harmonized Sales Tax to make British Columbia families better off while ensuring government can meet its commitment to balanced budgets, Finance Minister Kevin Falcon announced today.
The plan, which is to be confirmed by legislative motion, is to reduce the total HST rate to 10 per cent from 12 per cent in two stages. The provincial portion would be cut by one percentage point to six per cent from seven per cent on July 1, 2012. A further one percentage point reduction would take effect on July 1, 2014.
All British Columbia families will benefit from these changes and, on average, pay less on their routine expenditures under the 10 per cent HST than going back to the PST and GST. To help offset the costs of the HST before the rate reduction in 2012, one-time transition cheques of $175 per child would be issued to families with children under 18 years old. In addition, low- and modest-income seniors will receive a one-time transition cheque of $175. The cost of the transition cheques is expected to be $200 million, and they will be issued by the end of the year.
The independent panel that reviewed the HST and the PST plus GST tax systems recently estimated that families now pay an average of $350 more in sales tax under the HST than they paid with the PST plus GST system. With a 10 per cent HST rate, instead of paying $350 more tax, B.C. families will on average pay $120 less tax than under the PST.
The independent panel also noted that while consumers are paying more, businesses are saving money. Furthermore, the Province remains committed to balancing the budget in 2013/14 while reducing the HST burden on families and modest income seniors. To help meet this commitment, government will increase the general corporate income tax rate to 12 per cent from the current 10 per cent on Jan. 1, 2012, and postpone the reduction in the small business tax rate planned for April 1, 2012. The measures would be temporary until the fiscal situation allows for further reductions.
Proposed changes to the HST will only take effect should British Columbians vote to keep the HST.
For more information about the HST, visit: www.HSTinBC.ca
Contact:
David Currie
Ministry of Finance
250 387-6591
BACKGROUNDER
HST policy change details
The Province plans to reduce the total HST rate to 10 per cent from 12 per cent in two stages should British Columbians vote to keep the HST in this summer’s referendum. The provincial portion of the HST would be cut by one percentage point to six per cent from seven per cent on July 1, 2012, and cut one more percentage point to 5 per cent on July 1, 2014. The rate reduction will benefit all B.C. families. The Independent Panel estimated that, on average, harmonization costs B.C. families $350 more per year on their typical expenditures. By reducing the HST rate to 10 per cent, the $350 average cost now becomes a $120 average benefit for B.C. families.
10 per cent HST
Family Income Net increase (Decrease) Net increase (Decrease)
Per Independent Panel With 10% HST rate (07/14)
$10,000 or less ($73) ($170)
$10,001-20,000 $32 ($159)
$20,001-40,000 $129 ($155)
$40,001-60,000 $366 ($81)
$60,001-80,000 $527 ($53)
$80,001-100,000 $657 ($61)
Over $100,000 $1,029 ($45)
Average $350 ($120)
2011 Transition Payments
All B.C. families will receive $175 for each and every child under 18, and low and modest income seniors will also receive a cheque for $175.
HST Referendum Details
British Columbians will be voting in a mail-in referendum on the HST. Ballots will be mailed in June and must be returned to Elections B.C. or a Service B.C. office by 4:30 p.m. on Friday, July 22, 2011.
For more information about the HST, visit: www.HSTinBC.ca
You can also follow us on Twitter at: http://twitter.com/hstinbc
Connect with the Province of B.C. at www.gov.bc.ca/connect
Contact:
David Currie
Ministry of Finance
250 387-6591
Posted on
May 9, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
, 2011, house prices, North Surrey, North Surrey Real Estate, Real Estate Board of Greater Vancouver, Realtors, Richmond, Richmond condo strata development project six storey wood frame, Surrey City Centre, Whalley
For anyone still questioning the safety of mid-rise wood-frame buildings, following is the Canadian Wood Council's media release from Friday, May 6, 2011.
Posted on
May 4, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
2011, April, attached, benchmark price, detached, Greater Vancover, Housing Price Index, HPI, MLS, RE/MAX, Real Estate Board of Greater Vancouver, REBGV
|
Greater Vancouver housing market sees typical spring activity in April
Greater Vancouver saw a typical, solid month of residential home sales on the Multiple Listing Service® (MLS®) in April, in contrast to the near record pace witnessed in the two preceding months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.
Looking back further, last month’s residential sales represent an 8.8 per cent increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8 per cent decline compared to the 3,387 sales in April 2007.
“While it continues to be a seller’s market in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,” Rosario Setticasi, REBGV president said. “The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS®, as there were more detached and townhome sales this April compared to last year.”
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,847 in April 2011. This represents a 23.5 per cent decline compared to April 2010 when 7,648 properties were listed for sale on the MLS®, which was an all-time record for April. Compared to March 2011, last month’s new listings total registered a 14 per cent decline.
At 14,187, the total number of residential property listings on the MLS® increased 8.2 per cent in April compared to last month and declined 10 per cent from this time last year.
“There’s considerable variation in activity within the communities in our region. This is causing home price trends to differ depending on the area,” Setticasi said. “Your local REALTOR® is a valuable resource for obtaining the most accurate, up-to-date market evaluation.”
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.
Sales of detached properties on the MLS® in April 2011 reached 1,402, an increase of 2.3 per cent from the 1,370 detached sales recorded in April 2010, and a 17.8 per cent increase from the 1,190 units sold in April 2009. The benchmark price for detached properties increased 7.4 per cent from April 2010 to $879,039.
Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property increased 2.9 per cent from April 2010 to $409,242.
Attached property sales in April 2011 totalled 622, a 1 per cent increase compared to the 616 sales in April 2010, and a 4.7 per cent increase from the 594 attached properties sold in April 2009. The benchmark price of an attached unit increased 2.4 per cent between April 2010 and 2011 to $514,670.
May 3, 2011
| |
Posted on
May 4, 2011
by
Bob Sethi (RE/MAX Westcoast)
Why wood-frame mid-rise construction works
By now you've heard of the fire that destroyed a condo project in Richmond. If not, check out CBC News or other news outlets for coverage. Still under construction there were no deaths reported but, undoubtedly, you'll start hearing from 'experts' why they think five to six-storey mid-rise wood frame projects are unsafe versus similiar height concete projects.
One of the key arguments against six-storey wood frame is in regards to rescuing those out-of-reach of the fire department's ladder trucks. This argument catches alot of support until you ask yourself "if the fire department's ladders can't reach the sixth floor of a wood frame condo building (making it unsafe) then how is it any easier for them to reach the sixth floor (or higher) of a concrete building?". The answer is the sixth floor of a concrete tower is no easier to reach than the sixth floor of a wood-frame mid-rise.
Another argument made is that a wood-frame building will burn quicker than a concrete building. In last night's case keep in mind neither the fire sprinkler system nor the siding been completed. Both of these componants are designed to stop or slow a fire, allowing residents to get out and minimize damage to the building and surrounding structures.
As for any argument against the structural strength of six-storey wood frame versus concrete, if you've got a few minutes check out the six-storey wood-frame Japanese Quake test to see why that argument holds no merit. In this experiment they built a complete six-storey wood-frame condo building on a tri-axial shake table inside a purpose-built facility and subjected it to once in two-thousand year earthquake forces. The results speak for themselves.
Take a few minutes to check out the above links to learn more and form your own opinion.
Bob Sethi, BComm
RE/MAX Westcoast
604-273-2828
Posted on
March 10, 2011
by
Bob Sethi (RE/MAX Westcoast)
Posted in
bc hydro, buyers, cmhc, energy, first time homebuyer, fortis bc, grants, gst, home owner grant, hst, investment, owners, property, PTT, Real Estate, rebates, rental, solar, tax deferment, taxes, terasen, vancouver, water meter
Top 25 grants and rebates for property buyers and owners
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 $525,000 are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250. www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate | 1.800.959.8287
4. 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 of the HST, up to $26,250 per unit. http://www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate | 1.800.959.8287
5. 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.rev.gov.bc.ca/rpt | 250.387.0604
6. First-Time Home Buyers’ Tax Credit (HBTC)
This federal non-refundable income tax credit is for qualifying buyers of detached, attached, 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 2010) x $5,000. For the 2010 tax year, the maximum credit is $750. Canada Revenue Agency www.cra.gc.ca/hbtc | 1.800.959.8281
7. BC Home Owner Grant
Reduces school property taxes by up to $570 on properties with an assessed value up to $1,150,000. For 2011, the basic grant is reduced by $5 for each $1,000 of value over $1,150,000, and eliminated on homes assessed at $1,264,000. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,150,000 and eliminated on homes assessed at $1,319,000+. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/hog or contact your municipal tax office.
8. 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 Revenuewww.sbr.gov.bc.ca and enter ‘Property tax deferment’ in the search box or contact your municipal tax office.
9. 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
10. 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
11. 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
12. 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 renovation 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 and www.rbcroyalbank.com and in the search box enter ‘energy saver loan’.
13. 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 Terasen Gas, BC Hydro, and FortisBC. 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
14. 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/documents_library/notices/HST_Notice_010.pdf or go to Google and in the search box type in ‘Residential Energy Credit rebate program.’ It is the first item. | 1.877.388.4440
15. BC Hydro Appliance Rebates
Mail-in rebates of $25 - $50 for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers until March 31, 2011, or when funding for the program is exhausted. www.bchydro.com/rebates_savings/appliance_rebates.html | 1.800.224.9376
16. 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
17. BC Hydro Windows Rebate Program
Pay no HST when you buy ENERGY STAR high-performance windows and doors. This offer is available until March 31, 2011. www.bchydro.com/rebates_savings/windows_offers/current_offers.html | 604.759.2759 for a free in-home estimate.
18. 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
19. Fortis BC (formerly Terasen Gas) Rebate Program
A range of rebates for home owners include a $50 rebate for upgrading a water heater, $150 rebate on an Ener-Choice fireplace (both good until March 31, 2011) and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system (good until February 29, 2012). http://www.fortisbc.com/NaturalGas/Homes/Offers/Pages/Residential-Water-Heater-Program.aspx | 1.888.224.2710
20. Fortis BC (formerly Terasen Gas) 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. http://www.fortisbc.com/NaturalGas/Business/Offers/Pages/default.aspx | 1.888.477.0777
21. City of Vancouver Solar Homes Pilot
This rebate of $3,000 (about 50% of the cost) is for a Vancouver home owner upgrading to a solar hot water system from a gas system. Offered by the City of Vancouver, SolarBC, Terasen Gas and Offsetters on a first come, first served basis until March 2011 or until the City reaches its target of 30 solar homes. www.vancouver.ca/sustainability/SolarHomes.htm | 604.873.7748
22. 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. www.vancouver.ca and in the search box enter ‘rain barrel program.’ 604.736.2250. Other municipalities have similar offers.
23. 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.
www.vancity.com/MyCommunity/NotForProfit/Grants/ActingOnClimateChange GreenBuildingGrant | 604.877.7000
24. 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.
25. 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.
Posted on
March 8, 2011
by
Bob Sethi (RE/MAX Westcoast)
Why Realtors are great problem solvers
By Ari Lahdekorpi
Mar 1, 2011 - REM Newspaper
If nothing else, Realtors are skilled problem solvers. The one trait that glues together all of the successful agents across Canada is the ability to work through the myriad of roadblocks that confront what seems like a simple task – that of bringing buyers and sellers together on a transaction within a given time frame.
Keeping a real estate deal together and navigating through the increasingly complex minefield of laws and restrictions that surround the industry is not a task that can be accomplished effectively without logical and creative problem solving skills, along with a strong emotional foundation.
I commented to one of our seasoned agents on how unflappable he seemed in the face of the activity that surrounds him. His response was a shrug of the shoulder and the comment, “If there is an obstacle, you just have to work around it, that’s all.” That sums up nicely one of the key skill sets to an effective long-term real estate career.
It is so very true that although you can’t control the circumstances around you, you can control their impact on you. There is nothing more valuable than clear-headed thinking in a time of crisis. The ability to not throw up your hands in surrender or run away when the bullets are flying around you can come only with experience, training and mental attitude. The storybook and film maker image of the steady handed protagonist who guides the frightened hoards through a crisis is not entirely fictitious. The hero of the real estate deal is a real-life agent who doesn’t allow emotional pressure to impact on his rational and logistical task of serving his client’s best interests through to the completion of the transaction.
Problem solving is a mental process. Considered the most complex of all intellectual functions, problem solving has been defined as a higher-order cognitive process. It is a process that has been studied by psychologists over the last hundred years, as well as by computer programmers trying to perfect the latest artificial intelligence algorithms. The key to Internet giant Google’s success is in the top secret A.I. code that they have perfected to solve the problem of searching the Internet for information that is not tainted by spammer tricks. Make no mistake; problem solving is an intelligence marker of the highest order.
Early experimental work centered on simple tasks so that researchers could analyze and capture real-world problems by understanding the cognitive processes involved. In clinical psychology, researchers have focused on the role of emotions in problem solving. D’Zurilla, Goldfried and Nezu published findings in the early ’70s and ’80s demonstrating that poor emotional control can disrupt focus on a target task and impede problem solving.
Human problem solving consists of two related processes: problem orientation, (the motivational/attitudinal/affective approach to problematic situations) and problem-solving skills (the actual cognitive-behavioural steps, which, if successfully implemented, lead to effective problem resolution). Researchers in neuropsychology have found that frontal lobe injuries will cause deficiencies in emotional control and reasoning. Those findings have concluded that one’s emotional state can impact on the ability to solve problems.
Researchers have also learned that the problem-solving process differs across domains and levels of expertise and emotional wellness. There can be no universal answer to why one can resolve problems under a crisis management mode more efficiently than another. It is clear however, that experience in problem solving in a given discipline helps to calm the emotional impact of confronting problems.
Difficult problems have some typical characteristics, such as lack of clarity of the situation, multiple objectives, decisions hierarchy, communication breakdown and dynamic unpredictability. In all of these characteristics the resolution of difficult problems requires a direct attack on each that is encountered.
Even more than the emotional steadiness and expertise that a skilled problem solver must have is the creative mental process of creating a solution to a problem. Creative problem solving is a special form of problem solving in which the solution is independently created rather than learned with assistance.
Creative problem solving always involves using the creative side of the brain. To qualify as creative problem solving, the solution must either have value, clearly solve the stated problem or be appreciated by someone for whom the situation improves. These are all traits that apply readily to the real estate trade. The situation prior to the solution might not even be recognized as a problem. Alternate labels for hidden problems include words like a “challenge, an opportunity or room for improvement”.
A good Realtor knows from experience that one must be aware of the unintended consequences in any action or inaction. Sometimes a small detail can impact on many elements of a successful transaction with a ripple effect. This is pre-emptive problem solving that can only be done through experience or training.
The value of a real estate professional is much deeper than the average consumer sees on the surface of a problem-free transaction. It could be stated that a good agent is a problem cognoscente in the best sense of the word.
Ari Lahdekorpi is managing broker at Re/Max Select Properties in Vancouver.
Posted on
February 22, 2011
by
Bob Sethi (RE/MAX Westcoast)
RE/MAX Housing Barometer Report 2000-2010
for the Greater Vancouver area of British Columbia
Over the past decade, Greater Vancouver saw one of the most heated housing markets in the country, with conditions fi rmly in favour of the seller during the vast majority (55 per cent) of the 11-year period. The stretch running from 2001 to 2007 was even tighter, when purchasers vied for properties 76 per cent of the time, with little relief from the supply crunch. Buyers took the helm in only 13 per cent of the decade, while balance characterized the remainder. In fact, all but three of the last 11 years measured up as seller’s markets. It took a full-scale recession to ease conditions signifi cantly; with 2008 the only year buyer’s ruled Vancouver real estate. As a result, it comes as little surprise that returns from 2000 to 2010 in this housing hot spot exceeded the national average. Values rose from $295,978 in 2000 to $675,853 in 2010—for a compounded rate of return of 7.8 per cent. Canada earned a 6.8 per cent return over the same duration. Its price growth helped position the city in the top tier, out-performing two-thirds of Canadian markets, ranking six nationally and fi fth in Western Canada for return on investment.
While balanced conditions provided some relief for purchasers in Greater Vancouver in 2010, the market was relatively short-lived. Seller’s conditions began to take shape once again in the latter months of 2010, with the sales-to-new listings ratio reaching 82 per cent in November and 110 per cent in December. The demand for single-familyhomes, in particular, picked up steam in early January. Builders and new immigrants are snapping up properties two at a time, in cash purchases, for future development. Most of these homes are older, on larger lots, and will be torn down to make way for custom-built homes. With competition underway once again, multiple offers have reemerged, especially for homes that represent land value in well-established neighbourhoods. Activity was solid out of the gate in Vancouver West, East Vancouver, Burnaby, Richmond and the North Shore. Most sought after are single-family homes, priced between $1 million and $2 million. Days on market has been falling steadily, as move-up purchasers re-enter the market en masse. In Canada’s priciest market, affordability remains top of mind, with reasonably-priced units in good neighbourhoods snapped up quickly. Momentum continues unabated in the upper end, although confidence is building at all price points, setting the stage for a solid 2011.
For a full copy of this report including other areas/provinces email me at info@bobsethi.com
Posted on
February 2, 2011
by
Bob Sethi (RE/MAX Westcoast)
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January Stats
Stability and regional ‘hot spots’ characterize January housing market
The Greater Vancouver housing market remained in balanced market conditions in January, although higher levels of buyer demand were seen in some of the region’s largest communities.
The number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) last month outpaced the 10-year average in both categories for January.
“There was a healthy balance between the number of home buyers and sellers in our market in January, but there’s always variation in activity from region to region,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). "We’re seeing strong sellers’ market conditions in areas like Richmond and the west side of Vancouver.”
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price of detached homes increased 22.6 per cent in Richmond and 12.2 per cent in Vancouver West. In comparison, detached home prices across the region increased 2.7 per cent over the same period.
“When you’re looking to buy or sell a home, it’s important to familiarize yourself with the wider trends in the market. It’s equally important to seek out knowledge of your local area so you understand current market conditions in your neighbourhood,” Moldowan said.
Looking across the region, the REBGV reports that residential property sales in Greater Vancouver reached 1,819 on the MLS® in January 2011. This represents a 4.2 per cent decline compared to the 1,899 sales recorded in December 2010, a decrease of 5.4 per cent compared to the 1,923 sales in January 2010 and a 138.7 per cent increase from the 762 home sales in January 2009.
From a historical perspective, January’s 1,819 homes sales slightly surpassed the 1,790 home sale average recorded in the region over the last ten years.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,801 in January 2011. This represents a 6.7 per cent decrease compared to January 2010 when 5,147 properties were listed, and a 182 per cent increase compared to December 2010 when 1,699 homes were added to the MLS® in Greater Vancouver.
At 10,438, the total number of residential property listings on the MLS® increased 5.8 per cent in January compared to last month and increased 2.2 per cent from this time last year.
Sales of detached properties on the MLS® in January 2011 reached 793, an increase of 12.5 per cent from the 705 detached sales recorded in January 2010, and a 171.6 per cent increase from the 292 units sold in January 2009. The benchmark price for detached properties increased 2.7 per cent from January 2010 to $810,045.
Sales of apartment properties reached 713 in January 2011, a decline of 20.8 per cent compared to the 891 sales in January 2010, and an increase of 97.5 per cent compared to the 361 sales in January 2009.The benchmark price of an apartment property increased 1.4 per cent from January 2010 to $390,935.
Attached property sales in January 2011 totalled 313, a decline of 4.3 per cent compared to the 327 sales in January 2010, and a 187.2 per cent increase from the 109 attached properties sold in January 2009. The benchmark price of an attached unit increased 2.6 per cent between January 2010 and 2011 to $495,140.
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Posted on
January 24, 2011
by
Bob Sethi (RE/MAX Westcoast)
Homeowners - if you have or want a line of credit, read below for changes effective April 18, 2011.
New Parameters Regarding the Application of the Government Guarantee for Mortgage Loan Insurance
On January 17, the Government of Canada announced new mortgage insurance parameters regarding the application of the government guarantee. The News Release and Backgrounder issued by the Department of Finance, summarizing the new rules, is attached for your information.
Consistent with the parameters, CMHC will:
Effective March 18, 2011
- Limit the maximum amortization period to 30 years for a mortgage loan with a loan-to-value (LTV) ratio above 80%. (The maximum amortization period will continue to be limited to 25 years for chattel loans insured under CLIP and for on-reserve loans secured by a Ministerial Loan Guarantee.)
- Limit the loan to value ratio to 85% for the refinance of an owner-occupied residential property with 1 to 4 units.
Effective April 18, 2011
- Mortgage Insurance for non-amortizing housing loans (lines of credit) will no longer be available. (CMHC Mortgage Insurance will continue to be available for amortizing housing loans with loan to value ratios of up to 80, with single or multiple components, secured by a collateral mortgage).
CMHC supports the Government of Canada’s on-going efforts to maintain a strong Canadian housing market and encourage Canadians to save through homeownership. Consistent with the parameters, CMHC will no longer offer insurance for mortgages falling outside the scope of the new parameters after the effective date. Similarly, only mortgage loans that fit within the scope of the new parameters will be eligible for CMHC securitization programs.
Posted on
January 24, 2011
by
Bob Sethi (RE/MAX Westcoast)
News update from CMHC's website:
New Government Guarantee Parameters for Mortgage Loan Insurance and CMHC Product Changes
The Government of Canada has recently announced new parameters regarding the application of the government guarantee supporting the Canadian mortgage insurance industry ( view the Department of Finance’s news release). The effective date when the new rules are to come into force is April 19, 2010.
CMHC supports the Government of Canada’s on-going efforts to maintain a strong Canadian housing market. Consistent with the parameters established by the government, CMHC will no longer offer insurance for mortgages falling outside the scope of the new parameters after the effective date. CMHC will be implementing the following changes with respect to the new parameters on April 19, 2010:
- The qualifying interest rate used to assess borrower eligibility will change only for loans with a loan to value ratio (LTV) greater than 80% as follows:
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Fixed Rate Mortgages and Variable Rate Mortgages: For loans with a fixed rate term of less than 5 years and for all variable rate mortgages, regardless of the term, the qualifying interest rate is the greater of the benchmark rate1, and the contract interest rate. For loans with a fixed rate term of 5 years or more, the qualifying interest rate is the contract interest rate.
Mortgages with Multiple Interest Rates (e.g. Multi-Component Mortgages): Each component must be qualified using the applicable criteria defined above.
1CMHC defines the benchmark rate as the Chartered Bank — Conventional Mortgage 5-year rate that is the most recent interest rate published by the Bank of Canada in the series V121764 as of 12:01 AM (Eastern Time) each Monday.
- The maximum amount Canadians can withdraw in refinancing their mortgages will change to 90 per cent from 95 per cent of the value of their homes.
- A 20 per cent down payment will be required for 1-4 unit rental (non-owner occupied) properties.
In support of the government position, CMHC will also be implementing changes to the calculation of a borrower’s Total Debt Service Ratio where rental income is generated from the subject property. Effective April 19, 2010, fifty percent of the gross rental income from the subject property may be included into the borrower’s gross annual income for the purposes of calculating the borrower’s Total Debt Service Ratio. Additionally, CMHC Second Home product will only be available for a one unit owner occupied property.
Furthermore, CMHC subsequently announced that effective April 9, 2010 self-employed borrowers with more than 3 years in the same business and commissioned-income borrowers will be required to provide third party validation of income to qualify for CMHC’s Self-Employed Product.
For the majority of self-employed borrowers, income validation is readily available through financial statements, contracts, T4s and other third party income validations. The changes will ensure that self-employed borrowers with third party income validation will benefit from a lower premium.
A small portion of borrowers, such as those recently self-employed, may continue to apply for the CMHC Self-Employed Product Without Traditional Third Party Validation of Income, subject to a maximum loan-to-value of 90% for purchase transactions and 85% for refinance transactions.
Inquiries should be directed to CMHC’s Client Service Centre at 1-888-GO-emili (I 888 463 6454).
Posted on
January 17, 2011
by
Bob Sethi (RE/MAX Westcoast)
RE/MAX Canada and I are offering you a chance to win tickets to upcoming WHL games. Click the CONTEST tab for a chance to win @ http://www.facebook.com/WHLHockey#!/WHLHockey?v=app_11007063052.
If you already entered to win tickets to WHL games follow the @TheWHL on Twitter and answer the weekly question for additional chances to win!
Enter as often as you like and good luck to you all!
Posted on
January 17, 2011
by
Bob Sethi (RE/MAX Westcoast)
New, tighter mortgage rules coming!
The Goverment of Canada has announced new, tighter mortgage rules effective March 18, 2011 with the goal of keeping Canadians out of unmanageable debt http://www.ctv.ca/CTVNews/Canada/20110117/flaherty-mortgage-rules-110117/.
New mortgage rules include:
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35-year mortgage amortization period reduced to 30-years maximum;
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90% mortgage loan to home value reduced to 85%; and
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Home equity loans no longer backed by the goverment.
The above changes are meant to encourage more Canadians to secure their financial position before buying and limit extra secured loans to home improvement projects.
If you would like to purchase a home or investment property under the current rules, or want to know how this will affect your home equity loan, give me a call at 604-273-2828 or email bob@bobsethi.com.
Posted on
December 20, 2010
by
Bob Sethi (RE/MAX Westcoast)
2010 a better year than 2009 -- except in Tsawwassen
Housing starts nearly double in number over the same period last year, while residents of Delta community reject densification
By Peter Simpson, Special to the Sun
December 18, 2010
Two weeks ago, Canada Mortgage and Housing Corp. released its Metro Vancouver housing-starts summary for the January-to-November period. Vancouver Sun reporter Brian Morton filed a fine story, but the statistics-laden media release was spiked by other news outlets, never to see the light of day.
Perhaps the newshounds were chasing reaction to the increase in gang violence, or analyzing how NDP politicos actually managed to out-self-destruct the Liberals. Anyway, a good-news story slipped between the cracks.
So, for all you housing junkies out there, here's some positive news. Housing starts reached 13,502 in the first 11 months of 2010, nearly double the 7,329 starts recorded during the same period last year.
Granted, 2009 was a brutal year for housing activity, and the region came within a whisker of recording the worst one-year housing-starts total since the 1960s. But the improvement this year, although still below the previous five-year average, is cause for a few high-fives, nonetheless.
In fact, CMHC predicted 13,000 starts this year -- single-detached homes, town houses and apartments. So, here we are, 500 starts ahead of the prediction, with one more month still to count.
Why am I so stoked about these numbers? It's all about people and their livelihoods. The additional 6,173 starts this year generated 17,284 more full-time direct and indirect jobs, with more to come.
Not only are there more workers on the construction sites, but Vancouver-area manufacturers of products such as windows and doors ramped up production and hired more workers. This season will no doubt go down as one in which celebrations for Christmas and Hanukkah, among others, were happier.
CMHC's 2011 forecast is for modest growth throughout Metro Vancouver (15,000 starts comprised of 4,400 single-detached and 10,600 multiples). Who knows: those numbers might end up higher if mortgage rates remain at current low levels. And it seems more first-time buyers are out looking. Not surprisingly, pundits predict real-estate prices will rise as this awesome region continues to attract folks from other provinces and abroad. Here's a fun fact: Condo marketer Bob Rennie says more than 60 per cent of homes priced above $1.7 million on Vancouver's west side are sold to buyers from Mainland China.
Developers and builders are looking ahead to 2011 with confidence, as many new-home projects are planned throughout the Lower Mainland.
In stark contrast, reports are surfacing that there are more than 10 million unoccupied homes in the U.S. Entire communities have become ghastly ghost towns, and industry insiders believe a meaningful recovery in the U.S. housing market is at least two years away. Political hullabaloo and a variety of prickly issues notwithstanding, we should all be very thankful we live here.
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One group's good intentions often bring out the worst in people. This is particularly true when NIMBYISM -- the not-in-my-backyard minority cabal -- raises its voice to shrill levels.
In Tsawwassen, resistance to change has progressed past NIMBY. It has even surpassed BANANA -- Build Absolutely Nothing Anywhere Near Anything. It is now NOPE -- Not On Planet Earth.
A contingent of vocal Tsawwassen residents packed a public hearing last month to protest a proposed Tsawwassen Area Plan that called for higher-density housing, such as town houses. The residents expressed fears of decreased land values and a loss of neighbourhood character.
Here's the thing. I believe Tsawwassen is more than just the gateway to Point Roberts. It is a wonderful community where many of my friends and colleagues live. But as fellow columnist Bob Ransford warned in his Sun column on Nov. 13, Tsawwassen, without more housing diversity, will inevitably experience a decline in infrastructure, amenities and community fabric.
Last week, I wrote to Delta Mayor Lois Jackson and council. I lamented the unfortunate outcome of the public meeting, which was the scrapping of the area plan. It's like the snakes and ladders game, where you climb the ladder, then with one roll of the dice you slide down the snake, and start again.
For residents to insinuate that new town houses would lower the value of their single-detached homes is both unfounded and unfair. Twenty-five studies of affordable housing in Canada and the U.S. concluded there was no impact on property values. The province of B.C. undertook seven studies, and in no community did property values decrease. In some cases, property values actually increased.
In the letter, I also pointed out the residents' allegations that their community would be "destroyed" or "destabilized" by new residential development are groundless.
Managed growth enhances the opportunities for all residents and creates the capacity for governments to invest in important public services.
Growth leads to vibrant communities, a talented workforce, quality public services and a healthy, sustainable environment.
Growth also creates the conditions necessary to attract and retain investment and the brightest people, and it creates a better-performing economy and higher standard of living.
Where's the foul in all that?
Some of the young people at the public hearing wore T-shirts pronouncing support of the proposed area plan. Those brave souls were outnumbered by a large margin. I hope we hear more from these young people, from new families and new Canadians -all of whom require housing that is affordable.
Those people need confidence that Delta council will deal with this important issue based on sound urban-planning rationale, not on self-serving, negative assumptions from a vocal minority.
And we should all ask ourselves this important question: Where will our children live?
It has been a pleasure sharing my thoughts with you this year. My column will return mid-January. Best wishes to you and yours.
Peter Simpson is president and chief executive officer of the Greater Vancouver Home Builders' Association. E-mail peter@gvhba.org.
© Copyright (c) The Vancouver Sun
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