Maria Mak- Burnaby Realtor - Season's Greetings

Merry Christmas and Happy New Year!

Maria Mak - Burnaby Real Estate Agents - Mortgage rates slightly higher in 2015

    

      

Highlights Mortgage rates modestly higher in 2015 Robust growth in the Canadian economy tested by falling oil prices Bank of Canada likely on hold until late 2015

Mortgage rate outlook 

Long-term interest rates have remained near their lowest levels of the year for most the second half of 2014, even in the face of an improved outlook for economic growth and higher inflation. The five-year Government of Canada bond yield, the benchmark for the five-year mortgage-qualifying rate, has trended at or below 1.5 per cent for much of the year. Indeed, for the past several years interest rates have frustrated forecasters predicting an imminent normalization.
Persistently low long-term bond yields can be partially explained by factors such as an aging population and associated slowing of potential economic growth as well as increased demand by foreign investors for safe Canadian assets. Ultimately, what may be keeping long-term bond yields and mortgages rates near historic lows is a lack of confidence in the sustainability of economic recovery. If so, an important catalyst for an eventual normalization of interest rates is some signal to markets that the US economy has finally healed. The best candidate for such a signal is the US Federal Reserve tightening monetary policy following six years holding the federal funds rate at zero.

Most forecasters have penciled in a Fed rate hike in the spring of 2015, with the Bank of Canada following later in the fall. However, there may be ample reasons for the Fed to stay on hold in 2015. First, US economic growth forecasts have been notoriously optimistic since the end of the Global Financial Crisis. Indeed, while the US economy is currently posting its strongest growth in years, global economic growth seems to be deteriorating as Europe struggles and China slows. Any disruption in global financial markets stemming from those economies would likely delay a move by the Fed. Moreover, inflation in the United States is already running well below the Fed’s target of 2 per cent and should track lower due to falling energy prices.
That said, our baseline forecast remains tilted toward a probable rate increase by both the Fed and the Bank of Canada in 2015. Long-term interest rates will likely move modestly higher beginning in early to mid-2015 in anticipation of monetary tightening, which should put some upward pressure on mortgage rates. We expect that the five-year fixed rate will average 5.15 per cent in 2015 and the one-year rate will average 3.29 per cent.

Economic outlook

The Canadian economy was hammered by severe winter weather to start the year but has since posted average quarterly growth of over 3 per cent. Indeed, the outlook for growth in the Canadian economy is as bright as it has been in years. That said, the recent dramatic downturn in oil prices will very likely trim growth in coming quarters.

While lower prices for gas and other energy goods may be seen as positive, untangling the macroeconomic consequences of declining oil prices can be complex for an oil-producing country like Canada. The Canadian dollar is implicitly tethered to the price of oil, and has trended lower alongside oil prices. That decline will act as a shock absorber, boosting Canadian export competiveness. On the downside, dramatically lower oil prices will be felt immediately though Canada’s terms of trade as the value of Canadian exports is dragged lower by energy goods.
If low oil prices persist, investment, output and employment in the Canadian oil and gas sector could be in jeopardy as well. Fortunately, other parts of the Canadian economy continue to prosper. In particular, momentum in business investment and non-energy exports has been growing and should provide a decent handoff to 2015. Overall, we anticipate that the Canadian economy will match 2014’s estimated growth of 2.4 per cent next year before decelerating slightly to 2.3 per cent in 2016.

Interest rate outlook

In its most recent interest rate decision, the Bank of Canada emphasized that the Canadian economy is as healthy as it has been in many years. Faster than expected economic growth in 2014 has helped close much of the Canadian output gap, and the economy is on track to return to its full employment level faster than previously expected.
With inflation trending above 2 per cent and the economy accelerating, we would normally expect to see some tightening of interest rates from the Bank of Canada. However, the Bank remains reticent. One reason is that although the Canadian unemployment rate has fallen to its lowest level in six years, both total hours worked and average wages have not registered the type of gains we would normally see in a thriving economy. Indeed, the Bank of Canada cited excess slack in labour markets as the key offset to an otherwise very healthy economy.

Additionally, the steep decline in the price of oil, if sustained, will be a significant headwind for both growth and inflation next year. Our model simulations show that a sustained drop in the price of oil will delay the closing of the Canadian output gap by several months. Given these factors, if the Bank does decide to raise its overnight rate in 2015, we expect that it would not occur until the later part of 2015.

Copyright British Columbia Real Estate Association. Reprinted with permission.

 

© 2008-2014 Real Estate Board of Greater Vancouver

 

 

*Maria Mak. Burnaby Real Estate Agents - CMHC Housing Outlook Conference: Steady as she goes for Greater Vancouver housing market

National, provincial and local economists from the Canada Mortgage and Housing Corporation (CMHC) agree: the real estate market in British Columbia, and specifically in the Lower Mainland, will remain strong and steady into 2016. That was the overall message at their 2014 Housing Outlook Conference. 

Reasons why

Presenters cited several reasons for that housing market stability. Chief Economist Bob Dugan noted that Canada’s economy should continue to improve, which in turn will continue to attract immigrants and new residents to BC. He also noted that CMHC doesn’t expect any interest or mortgage rate increases until late in 2015.

Shifting demographics will also play a role in this stability moving forward. As the baby boomer generation continues to age, we’ll see more senior-led households and more single owners in the market. They’ll either be looking to age in place (creating more jobs for home renovations) or move to smaller townhomes or condos (keeping the detached resale stock buoyant while keeping the demand for new condos and townhomes high).

Total sales in the region are forecasted to reach 32,800 this year, then slip slightly to 32,250 sales in 2015 and to 31,600 in 2016.

Senior Market Analyst Robyn Adamache pointed out that while no definitive data exists on the influence of foreign buyers on our local market, trend data can be drawn from REBGV’s monthly poll to REALTORS® who complete a sale each month. Our data indicates that foreign buyers make up approximately three per cent of home sales in any given month.

Housing affordability - steady supply

Keynote speaker and REBGV member Bob Rennie weighed in on the affordability issue. When you factor out the top 20 per cent of sales, he said, average prices become much more reasonable. Using this method, the average price of a detached home drops from the one million dollar range to around $670,000, while condos drop from $470,000 to $316,000.

He also stressed the need to assess and review zoning policies to create more opportunities for density. Today’s buyers are attracted to ‘energy centres’ where amenities like shopping, transit and schools are easily accessible. Rennie pointed specifically to strong condo sales in areas like Metrotown and the forthcoming Marine Gateway project. Keeping this supply steady while an estimated 40,000 new residents move to BC each year is key to keeping affordability in check.

“Because without supply, there’s no cure for affordability,” said Rennie.

 

Maria Mak- Real Estate Agents - how to buy a home before it's built : Pre-Sale Tips

*How to Buy a Home Before It's Built: Pre-Sale Tips*

Thinking of buying a pre-sale condo? You might be tempted by the tantalizing array of pre-sale development units available in the Lower Mainland, some with attractive incentives. (Just check out our Developments section!)

Here's how it works. When you agree to buy a pre-sale unit, you're actually entering into a contract for the right to receiveand an obligation to pay fora finished condo at a set point in the future. This forms the basis for some of the unique opportunities and risks that go along with buying pre-sale.

Advantages

There are definitely advantages to buying pre-sale. You can pay just a small deposit now, save money while it's being built, then pay the balance of your deposit when you move in. Or you can pay your deposit in bite-sized increments during the building process.

You can also customize design elements, finishes and even your layout. Because you're buying a brand-new home, you won't have to worry about doing costly repairs for at least another decade. And your unit will be covered under the BC government's 2-5-10 Year Home Warranty Insurance program, so that if something does go wrong, you won't have to pay for it.

Risks

But there are also risks and unique obligations that need to be considered before you sign on the dotted line and hand over your deposit. Here's what you need to know: your rights and responsibilities under the Real Estate Development Marketing Act(REDMA).

Though there are advantages to buying pre-sale in any market, the greatest opportunities arise in a rising or hot real estate market. That's because, by the time you move into your completed condo, it's already worth more than what you agreed to pay for it.

In a softening market, on the other hand, by the time you complete the sale, you might already have lost money. If you're relying on a mortgage, lenders may only cover the market value of the property at the time of completion, leaving you scrambling to raise more cash for the difference.

The mortgage climate can change without warning as well. Many people who purchased before the federal government administered tighter mortgage rules found they no longer qualified for the amount they were pre-approved for by the time they had to pay up.

So what happens if you can't raise the cash you need to complete the sale, or your unit is worth less than what you owe when it's time to pay up? Unless the developer violates the terms of your agreement, you are legally obligated to complete the saleor forfeit your deposit.

Besides market changes, there are other unknowns, from unexpected construction delays to condos that don't get built at all.

So how can you mitigate some of the potential risks?

Lay the groundwork

Long before you're ready to sign anything, find out everything you can about the builder of each development you're considering. Do they have a reputation of building on time? Talk to your Realtor and to homeowners who've purchased from them in the past. And if you're a first-time buyer with a small down payment, consider sticking with pre-sale units that are already close to completion to eliminate some of the unknowns.

Talk to an independent mortgage broker as well, to find out what you can afford and to make sure your credit is in shape before you go in. That way you'll be financially ready.

Review the developer's Disclosure Statement

Before you sign a purchase contract, you have the right to review a Disclosure Statement prepared by the developer, according to Section 21.2 of REDMA. The Disclosure Statement lays out everything you will be buyingincluding proposed and filed bylaws, common property and storage allocations, and descriptions of appliances, furnishing, and finishes.

Under REDMA, it also has to include an estimated construction start and end date, as well as any "material facts" that could "reasonably be expected to affect, the value, price, or use of the development unit or development property."

The developer is obligated to keep you up-to-date on amendments to estimated dates and material facts. This is important because building a new development is a long and complex process, and things often morph as it progresses.

Take time to review the statement carefully and make sure you understand all the terms set out in it. This step is best tackled with an experienced lawyer specializing in residential real estate and, of course, your Realtor (not the developer's).

Check the small print before you sign

Check the Pre-sale Contract

After you've thoroughly reviewed the Disclosure Statement, look over the Pre-sale Contract with a fine toothcomb. Here are a few things to look for:

Deposit Besides the obvious (how much, when it's due, and how it should be paid), look to see who gets the accrued interest during the construction process. It can be either the buyer or developer, and this should be stipulated in the contract. Generally your deposit is held in trust until it becomes part of the purchase price at completion, but REDMA allows the developer to get insurance allowing them to use your deposit in the interim. This should also be stated in the contract.

Forfeiture clause This clause gives the developer the right to claim your deposit if you breach your contract. It usually includes the wording that the deposit will be considered a genuine pre-estimate of damages and not a penalty, giving them a better chance of hanging on to your deposit if you try to back out and end up in court.

Right to terminate the contract Developers may need to walk away from a project for various reasons, including being unable to get skilled trades or permits. The contract will usually outline this right to cancel the project, at which point your deposit plus interest would be returned to you.

Right of rescission The contract will also cover when you can terminate the contract without losing your deposit. Under REDMA s. 21.2, once you sign the pre-sale contract, or a receipt acknowledging you've had time to review the Disclosure Statement (whichever comes later), you are given a 7-day "rescission period" where you can serve written notice to the developer to terminate the contract. Also, if you receive an amended Disclosure Statement outlining material changes to be made to the layout and size of your unit or to the common facility because of the issuance of a building permit, you're entitled to another 7 days to rescind your contract ( REDMA Policy Statement 5).

Allowable unit changes Contracts usually give the builder the right to change the size, certain design features, or substitute comparable materials. The contract should also outline any adjustments to the purchase price that would be made if the finished size varies by more or less than 5% than planned, say. The contract should also allow you to cancel the contract if the difference is extreme.

Assignments This section covers whether or not you can sell and assign your contract to a third party before completion, what fees would be involved, and what would happen to your deposit.

Buying pre-sale has some unique rewards, but the process can be far from simple. REDMA legislation leaves room for interpretation and is being shaped by a number of ongoing court cases. So it's a wise move to enlist an experienced Realtor, mortgage broker and lawyer to help safely guide you through the processand into your swanky, custom home.

 

Advantages Risks

Greater customization:Choose your preferred design, layout, décor upgrades, and even parking configuration.

Terms of contract may change:You might not get exactly what you wanted. Check the fine print with your Realtor and lawyer.

Warranties:

1-year developer's warranty to cover issues before building is complete but after you've put down a deposit.

2-5-10-year warranty program covered by the BC Government.

No mortgage guarantee:Not all banks will fund pre-sales. Some lenders will only cover the value at completion, which could be less depending on market conditions. And if your financial picture changes, you may not qualify even if you were pre-approved.

Low hassle:Minimal replacements or repair costs and work for 1015 years. No way to back out:Once you're all in with a signed contract, you're in for the long haulor you forfeit that deposit.

Low cost of ownership:New energy-efficient homes mean lower utility costs, lower maintenance fees, and minimal chance of paying special assessments for repairs.

Must have patience:Properties can take up to several years to build. And unexpected delays may have you hunting for temporary living situations until move-in day.

In a rising market:The value of your unit can be higher upon completion than when purchased, giving you instant equity.

In a soft/falling market:By the time you move in, you already owe more than your condo's worth.

© Copyright 2014 - See more at: http://www.rew.ca/news/buying/how-to-buy-a-home-before-it-s-built-pre-sale-tips-1.1341873#sthash.KJ87klkL.dpuf*How to Buy a Home Before It's Built: Pre-Sale Tips*

     

Thinking of buying a pre-sale condo? You might be tempted by the tantalizing array of pre-sale development units available in the Lower Mainland, some with attractive incentives. (Just check out our Developments section!)

Here's how it works. When you agree to buy a pre-sale unit, you're actually entering into a contract for the right to receiveand an obligation to pay fora finished condo at a set point in the future. This forms the basis for some of the unique opportunities and risks that go along with buying pre-sale.

Advantages

There are definitely advantages to buying pre-sale. You can pay just a small deposit now, save money while it's being built, then pay the balance of your deposit when you move in. Or you can pay your deposit in bite-sized increments during the building process.

You can also customize design elements, finishes and even your layout. Because you're buying a brand-new home, you won't have to worry about doing costly repairs for at least another decade. And your unit will be covered under the BC government's 2-5-10 Year Home Warranty Insurance program, so that if something does go wrong, you won't have to pay for it.

Risks

But there are also risks and unique obligations that need to be considered before you sign on the dotted line and hand over your deposit. Here's what you need to know: your rights and responsibilities under the Real Estate Development Marketing Act(REDMA).

Though there are advantages to buying pre-sale in any market, the greatest opportunities arise in a rising or hot real estate market. That's because, by the time you move into your completed condo, it's already worth more than what you agreed to pay for it.

In a softening market, on the other hand, by the time you complete the sale, you might already have lost money. If you're relying on a mortgage, lenders may only cover the market value of the property at the time of completion, leaving you scrambling to raise more cash for the difference.

The mortgage climate can change without warning as well. Many people who purchased before the federal government administered tighter mortgage rules found they no longer qualified for the amount they were pre-approved for by the time they had to pay up.

So what happens if you can't raise the cash you need to complete the sale, or your unit is worth less than what you owe when it's time to pay up? Unless the developer violates the terms of your agreement, you are legally obligated to complete the saleor forfeit your deposit.

Besides market changes, there are other unknowns, from unexpected construction delays to condos that don't get built at all.

So how can you mitigate some of the potential risks?

Lay the groundwork

Long before you're ready to sign anything, find out everything you can about the builder of each development you're considering. Do they have a reputation of building on time? Talk to your Realtor and to homeowners who've purchased from them in the past. And if you're a first-time buyer with a small down payment, consider sticking with pre-sale units that are already close to completion to eliminate some of the unknowns.

Talk to an independent mortgage broker as well, to find out what you can afford and to make sure your credit is in shape before you go in. That way you'll be financially ready.

Review the developer's Disclosure Statement

Before you sign a purchase contract, you have the right to review a Disclosure Statement prepared by the developer, according to Section 21.2 of REDMA. The Disclosure Statement lays out everything you will be buyingincluding proposed and filed bylaws, common property and storage allocations, and descriptions of appliances, furnishing, and finishes.

Under REDMA, it also has to include an estimated construction start and end date, as well as any "material facts" that could "reasonably be expected to affect, the value, price, or use of the development unit or development property."

The developer is obligated to keep you up-to-date on amendments to estimated dates and material facts. This is important because building a new development is a long and complex process, and things often morph as it progresses.

Take time to review the statement carefully and make sure you understand all the terms set out in it. This step is best tackled with an experienced lawyer specializing in residential real estate and, of course, your Realtor (not the developer's).

Check the small print before you sign

Check the Pre-sale Contract

After you've thoroughly reviewed the Disclosure Statement, look over the Pre-sale Contract with a fine toothcomb. Here are a few things to look for:

Deposit Besides the obvious (how much, when it's due, and how it should be paid), look to see who gets the accrued interest during the construction process. It can be either the buyer or developer, and this should be stipulated in the contract. Generally your deposit is held in trust until it becomes part of the purchase price at completion, but REDMA allows the developer to get insurance allowing them to use your deposit in the interim. This should also be stated in the contract.

Forfeiture clause This clause gives the developer the right to claim your deposit if you breach your contract. It usually includes the wording that the deposit will be considered a genuine pre-estimate of damages and not a penalty, giving them a better chance of hanging on to your deposit if you try to back out and end up in court.

Right to terminate the contract Developers may need to walk away from a project for various reasons, including being unable to get skilled trades or permits. The contract will usually outline this right to cancel the project, at which point your deposit plus interest would be returned to you.

Right of rescission The contract will also cover when you can terminate the contract without losing your deposit. Under REDMA s. 21.2, once you sign the pre-sale contract, or a receipt acknowledging you've had time to review the Disclosure Statement (whichever comes later), you are given a 7-day "rescission period" where you can serve written notice to the developer to terminate the contract. Also, if you receive an amended Disclosure Statement outlining material changes to be made to the layout and size of your unit or to the common facility because of the issuance of a building permit, you're entitled to another 7 days to rescind your contract ( REDMA Policy Statement 5).

Allowable unit changes Contracts usually give the builder the right to change the size, certain design features, or substitute comparable materials. The contract should also outline any adjustments to the purchase price that would be made if the finished size varies by more or less than 5% than planned, say. The contract should also allow you to cancel the contract if the difference is extreme.

Assignments This section covers whether or not you can sell and assign your contract to a third party before completion, what fees would be involved, and what would happen to your deposit.

Buying pre-sale has some unique rewards, but the process can be far from simple. REDMA legislation leaves room for interpretation and is being shaped by a number of ongoing court cases. So it's a wise move to enlist an experienced Realtor, mortgage broker and lawyer to help safely guide you through the processand into your swanky, custom home.

 

Advantages Risks

Greater customization:Choose your preferred design, layout, décor upgrades, and even parking configuration. Terms of contract may change:You might not get exactly what you wanted. Check the fine print with your Realtor and lawyer.

Warranties:

1-year developer's warranty to cover issues before building is complete but after you've put down a deposit.

2-5-10-year warranty program covered by the BC Government.

No mortgage guarantee:Not all banks will fund pre-sales. Some lenders will only cover the value at completion, which could be less depending on market conditions. And if your financial picture changes, you may not qualify even if you were pre-approved.

Low hassle:Minimal replacements or repair costs and work for 1015 years. No way to back out:Once you're all in with a signed contract, you're in for the long haulor you forfeit that deposit.

Low cost of ownership:New energy-efficient homes mean lower utility costs, lower maintenance fees, and minimal chance of paying special assessments for repairs. Must have patience:Properties can take up to several years to build. And unexpected delays may have you hunting for temporary living situations until move-in day.

In a rising market:The value of your unit can be higher upon completion than when purchased, giving you instant equity. In a soft/falling market:By the time you move in, you already owe more than your condo's worth.

© Copyright 2014 - See more at: http://www.rew.ca

Maria Mak - Burnaby Realtors - Vancouver home sales jump 15% in October and prices are still rising

The country’s most expensive market saw an almost 15% jump in October sales from a year ago, the Real Estate Board of Greater Vancouver said Tuesday.

The board said there were 3,057 sales in October, up from 2,661 sales a year earlier. Sales jumped 5.9% from September and were 16.6% above the 10-year average for October.

Prices also continue to rise with the board’s benchmark index up 6% from a year ago to $637,000.The average sale price of a detached home in the Vancouver area is now $1,250,557 but that’s still below the all-time high which was once close to $1.4-million.

“We’ve seen strong and consistent demand from home buyers in Metro Vancouver throughout this year. This has led to steady increases in home prices of between 4% and 8% depending on the property,” said Ray Harris, president of the board, in a statement.

New listings were up 4.4% in October from a year ago but dropped 14.7% from September. Detached homes were the exception with new listings dropping.

“Detached homes continue to increase in price more than condominium and townhome properties. This is largely a function of supply and demand as the supply of condominium and townhome properties are more abundant than detached homes in our region,” Mr. Harris said.

Detached home sales in October  were up 19.1% from a year ago and 60.1% from two years ago. The benchmark price for detached homes was $995,100, a 7.9% increase from a year ago.

Source: Garry Marr, Financial Post

Maria Mak- Burnaby Realtors - Metro Vancouver home sales above average in October

Metro Vancouver home sales above average in October

Home sales in the Metro Vancouver* housing market continue to outpace long-term averages for this time of year.   

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 3,057 on the Multiple Listing Service® (MLS®) in October 2014. This represents a 14.9 per cent increase compared to the 2,661 sales in October 2013, and a 4.6 per cent increase over the 2,922 sales in September 2014.

Last month’s sales were 16.6 per cent above the 10-year sales average for October.

“We’ve seen strong and consistent demand from home buyers in Metro Vancouver throughout this year. This has led to steady increases in home prices of between four and eight per cent depending on the property,” said REBGV president Ray Harris.

New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,487 in October. This represents a four per cent increase compared to the 4,315 new listings in October 2013 and a 14.7 per cent decline from the 5,259 new listings in September.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,851, a 9.2 per cent decline compared to October 2013 and a 6.6 per cent decrease compared to September 2014.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $637,000. This represents a six per cent increase compared to October 2013.

“Detached homes continue to increase in price more than condominium and townhome properties. This is largely a function of supply and demand as the supply of condominium and townhome properties are more abundant than detached homes in our region,” Harris said.

Sales of detached properties in October 2014 reached 1,271, an increase of 19.1 per cent from the 1,067 detached sales recorded in October 2013, and a 60.9 per cent increase from the 790 units sold in October 2012. The benchmark price for detached properties increased 7.9 per cent from October 2013 to $995,100.

Sales of apartment properties reached 1,268 in October 2014, an increase of 15.5 per cent compared to the 1,098 sales in October 2013, and a 57.9 per cent increase compared to the 803 sales in October 2012. The benchmark price of an apartment property increased four per cent from October 2013 to $380,200.

Attached property sales in October 2014 totalled 518, a 4.4 per cent increase compared to the 496 sales in October 2013, and a 53.3 per cent increase over the 338 attached properties sold in October 2012. The benchmark price of an attached unit increased 4.7 per cent between October 2013 and 2014 to $479,500.

Important information

The Real Estate Board of Greater Vancouver is an association representing more than 11,000 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.

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Maria Mak. Burnaby Real Estate - preparing for a flood

Many residents and businesses in the Lower Mainland are located in a floodplain - close to or beside local rivers, creeks, or coastlines.

Reduce the chances of flood damage by:

1  Reading material about flood reduction supplied by the local
       municipality.
2  Walking around the home after heavy rainfall to see where water
       is pooling. If water flows toward the home, the owner should get
       professional advice about directing water away from the home.
3  Cleaning gutters and downspouts.
4  Making sure the home’s drain tiles work. The basement will
       flood if tiles are old or plugged and need replacing.
5  Flood proofing the basement or ground floor, which involves
       sealing the foundation.
6  Installing backflow valves on basement floor drains, washing machine drains, toilets and sink drains.
7  Locating the storm sewer on the road. It will look like a large grate and is designed to carry storm related water runoff. If
        it’s plugged with leaves, the owner should phone the local municipal public works department and they will clean it.
8  Buying a sump pump and testing it so it’s ready to be used if needed during heavy rain storms.
9  Contacting the municipality to find out where sand and bags are available should a flood occur.

Maria Mak. Burnaby Real Estate Agents - buying a home

Maria Mak- Burnaby Real Estate Agents - Buying a home.

Homebuying Step by Step: CMHC's Homebuying Step by Step guide is here to make things easier for you by providing the information you need to make a wise homebuying decision. This section provides examples and worksheets that will guide you through the entire homebuying process, from the moment you make the decision to buy your own home to the moment the movers carry the first box through the front door. It couldn't be easier!

In this Section:

• Step 1: Is Homeownership Right for You?
  Buying a home is one of the biggest emotional and financial decisions you'll ever make. Prepare by learning about the process of home buying and the responsibilities of homeownership.
• Step 2: Are You Financially Ready?
  This step guides you through some simple calculations to figure out your current financial situation, and the maximum home price that you should consider.
• Step 3: Which Home is Right for You?
  Once you have a good idea about your finances, you’ll need to think clearly about the home you’d like to buy. You need to think about your current and future housing needs and what characteristics are important to you in a home.
  

• Step 4: The Buying Process
  Before you start searching for a home you need to think about your current and future housing needs and what characteristics are important to you in a home.
• Step 5: Now That You're a Homeowner
  Practical advice for homeowners on their financial responsibilities as well as the importance of home maintenance and renovations.
  
• Words to Know When Buying a Home
  This glossary provides simple yet accurate definitions of certain terms you may encounter in the Homebuying Step by Step guide.
• Worksheets
  These user-friendly checklists and worksheets will help you all throughout the home buying process.

https://www.cmhc-schl.gc.ca/en/co/buho/hostst/index.cfm

Maria Mak.Burnaby Realtors - right time to reduce the PPT

*Home Sense - right time to reduce the PPT*

Each year, the BC Legislature's Select Standing Committee on Finance and Government Services travels throughout BC seeking input about spending and taxation priorities for the upcoming provincial budget.

The Committee reviews and summarizes this information and reports its findings to the Finance Minister, who uses it as input in budget deliberations.

Representatives of the Real Estate Board of Greater Vancouver had the opportunity to make recommendations.

Here is our written submission. (The printer-friendly copy is the full written version that contains a page of income and housing price data for neighbourhoods in the Real Estate Board area.)

BCis on target to balance the 2014/15 budget with a projected surplus of $266 million. This means the time is right to reduce the Property Transfer Tax (PTT).

Reducing the PTT matters to families and anyone working in real estate-related jobs including architecture, construction, home inspection, leasing, brokerage, mortgage lending and legal services.

Real estate plays a vital role in growth, providing jobs and small business opportunities.

Real estate’s contribution to the economy in Greater Vancouver is enormous. In 2013, 28,524 MLS® home sales in the Real Estate Board’s area generated $1.84 billion in economic  pin-offs and created 13,977 jobs. Real estate is the backbone of our communities. Province-wide, the housing sector (construction and real estate) accounts for 25.6% of total economic activity (GDP).

Government is responsive

In 2013, in response to our message, “Help Reduce the Property Transfer Tax", the government made it possible for first-time buyers to buy a home worth up to $475,000 and not pay the PTT. Previously the threshold was $425,000.

Given the projected 2014/15 budget surplus, the government can afford to make changes to the PTT. Continuing to rely on the PTT for a large share of revenue – estimated to be $854 million in 2014/15 – unfairly increases the cost of homes and reduces access for middle- and lower-income buyers.

Who will benefit?

Our communities, including first-time buyers and anyone working in real estate-related jobs will benefit.

Think about when we were younger, landing a first job, buying a modest first home, starting a family and then trading up to a larger home has been a right of passage for generations.

Today, this is possible for fewer and fewer younger British Columbians. The rate of home ownership for 25-34 year olds in BC is now 48.2%. In Ontario it’s 53.8%, in Alberta it’s 59.3% and Canada-wide it’s 52.4%.2

In our Real Estate Board area, the benchmark price of a detached home is $633,500.3 The PTT adds $10,670 to this price given that this home does not qualify for the first-time buyers’ exemption. It’s difficult for first-time buyers to afford this home given that the annual income required is $100,216.4 The average household total income in the Vancouver CMA is $83,666.5

As a consequence, six in 10 first-time buyers are delaying their home purchase, which in turn, significantly dampens economic activity in our neighbourhoods.6

Making adjustments to the PTT would ensure home ownership is more affordable, which in turn is a strategy for a secure and prosperous future.

Recommendations

The PTT is charged at a rate of 1% on the first $200,000 and 2% on the remainder of the home price. We urge the government to:

1. Increase the 1% threshold to $525,000 from $200,000 to modernize the PTT to better reflect the current price of homes. The 2% rate would be applied to the remainder of the home price.

2. Index the 1% threshold to ensure it more accurately reflects housing market changes over time, using Statistics Canada’s New Housing Price Index or the MLS® Home Price Index, and make annual adjustments.

1 Natural Resources 7.7% is comprised of Agriculture, Forestry, Fishing and Hunting at 1.85% and Mining, Quarrying and Oil and Gas Extraction at 5.81%.

2 Statistics Canada 2011 National Household Survey. Home ownership, by province, as a percentage of all households where the primary maintainer is aged 25 to 34 years old.

3 Real Estate Board of Greater Vancouver composite residential benchmark price, as at September 2014.

4 See Footnote D on reverse.

5 Statistics Canada 2011 National Household Survey. Vancouver Census Metropolitan Area (CMA) Average Household Total Income.

6 BMO Home Buying Report, First-time Buyers’ Budgets Increase to $316,100 (Canada-wide) While Rising Prices Cause Delays, BMO,

March 18, 2014.

 

 

Maria Mak. Burnaby Realtor - what is a contract and when is it legally binding?

  

A contract is a legally binding agreement between two or more parties and describes the rights and obligations of the parties to the contract.

Where a contract has been properly drafted and signed by the parties to the contract, and where the terms are clear and the contract is not for an illegal purpose, then it is likely that a Canadian court would consider the contract valid and enforceable.

Only the parties to a contract can sue or be sued under the terms of that contract.
Before you sign a contract

1. Never sign a contract if you don’t understand it.

2. Before you sign a contract, consult your REALTOR®, your REALTORS®’ managing broker, and/or your lawyer for advice.

As a general rule, Canadian courts expect that if you have signed a contract, you have agreed to it and you will therefore be bound by its terms. You may not be protected if you claim you did not understand what you were signing. Always make sure you understand a contract before you sign it.
Standard form contracts.

The real estate contracts used by REALTORS® are standard form contracts. The wording and terms of these contracts have been prepared by lawyers and have been tested in Canadian courts.

Cancelling a contract.

If you have signed a standard form Multiple Listing Contract, Exclusive Listing Contract or Exclusive Buyer Agency Contract and you wish to cancel the contract early, you can only do so if the other party to the contract (your REALTOR®’s company) agrees. The Real Estate Board cannot require its members to cancel listing or buyer agency contracts early.

If you have signed a contract to buy or sell a property (contract of purchase and sale) and wish to cancel it you should seek legal advice without delay. 

REALTORS® are not parties to these contracts and therefore cannot cancel them unless the contracting parties agree, in writing, to do so.

What happens if a buyer or seller doesn’t fulfil the terms of a contract?

Even though your REALTOR® may have drafted the contract to sell or buy a property for you, s/he is not a party to that contract. A REALTOR® cannot force his/her client to fulfil the terms of a contract with the buyer or seller. If the buyer or seller does not fulfil the commitments they have made in the contract, you may have legal recourse and should seek legal advice.

If you do not have a lawyer, you may wish to contact the Lawyer Referral Service: 604.687.3221. If you have difficulty understanding English then you may wish to contact organizations like S.U.C.C.E.S.S., call 604.684.1628 for assistance.

Here are examples of common issues for which the buyer or seller (not the REALTOR®) is responsible: •  Buyer does not close the sale. •  Buyer does not remove the contract’s subject clauses. •  Seller does not close the sale. •  Seller does not remove the contract’s subject clauses. •  Property is left untidy or dirty by the seller. •  Seller has removed items that were included in the contract. •  Transaction does not close on time. •  Appliances break down or a previously unknown property defect reveals itself after closing.

Your REALTOR® and his/her brokerage may be able to assist you to resolve this type of complaint. Typically your REALTOR® will contact the other party’s REALTOR® or brokerage and let them know about your concerns and ask them for assistance in resolving your concern. As noted, your REALTOR® cannot force the other party to do what they said they would do in the contract. (For this, you need the assistance of a lawyer or the Courts.)

Maria Mak - Burnaby Real Estate Agent - - I am honoured to be a member of Quarter Century Club of the Real Estate Board of Greater Vancouver

Maria Mak - Burnaby Realtor - I am honoured to be a member of Quarter Century Club of the Real Estate Board of Greater Vancouver.

Maria Mak - Burnaby Real Estate Agent - - I am honoured to be a member of Quarter Century Club of the Real Estate Board of Greater Vancoucer

Maria Mak - Burnaby Realtor - I am honoured to be a member of Quarter Century Club of the Real Estate Board of Greater Vancouver.

Maria Mak- Burnaby Real Estate Agents - REBGV - September 2014 Housing Market Update

Home buyers were active in Metro Vancouver last month, with home sales well exceeding the 10-year average for September.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,922 on the Multiple Listing Service® (MLS®) in September 2014. This represents a 17.7 per cent increase compared to the 2,483 sales in September 2013, and a 5.4 per cent increase over the 2,771 sales in August 2014.

Last month’s sales were 16.1 per cent above the 10-year sales average for the month and rank as the third highest selling September over that period.

“September was an active period for our housing market when we compare it against typical activity for the month,” Ray Harris, REBGV president said.

New listings for detached, attached and apartment properties in Metro Vancouver* totalled 5,259 in September. This represents a 4.6 per cent increase compared to the 5,030 new listings in September 2013 and a 33.5 per cent increase from the 3,940 new listings in August. Last month’s new listing total was 0.4 per cent above the region’s 10-year new listing average for the month.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,832, an 8 per cent decline compared to September 2013 and a 0.4 per cent increase compared to August 2014.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $633,500. This represents a 5.3 per cent increase compared to September 2013.

“Gains in home values are being led by the detached home market. Condominium and townhome properties are not experiencing the same pressure on prices at the moment,” Harris said.  “Individual trends can vary depending on different factors in different areas, so it’s important to do your homework and work with your REALTOR® when you’re looking to determine the market value of a home.”

Sales of detached properties in September 2014 reached 1,270, an increase of 24.1 per cent from the 1,023 detached sales recorded in September 2013, and a 113.8 per cent increase from the 594 units sold in September 2012. The benchmark price for detached properties increased 7.3 per cent from September 2013 to $990,300.

Sales of apartment properties reached 1,188 in September 2014, an increase of 16.7 per cent compared to the 1,018 sales in September 2013, and a 75.7 per cent increase compared to the 676 sales in September 2012. The benchmark price of an apartment property increased 3.3 per cent from September 2013 to $378,700.

Attached property sales in September 2014 totalled 464, a 5 per cent increase compared to the 442 sales in September 2013, and an 88.6 per cent increase over the 246 attached properties sold in September 2012. The benchmark price of an attached unit increased 4.2 per cent between September 2013 and 2014 to $477,700.

Contact Maria Mak @ Sutton Centre Realty @ www.mariamak.com for all your premium real estate services , thank you.

Maria Mak. Burnaby Real Estate Agent - Why the Bank of Canada will keep interest rates low

On September 3, 2014, the Bank of Canada announced that it was holding its trend-setting overnight lending rate at one per cent. The overnight rate has not moved in four years. It’s likely that it will remain where it is for some time yet. Why?

1. Inflation is on target

Inflation recently increased and is tracking close to the Bank’s two per cent target. However, the Bank believes the increase reflects temporary factors and cited evidence in support of this in its policy rate announcement. As a result, it does not see interest rate hikes as being necessary to rein it in. Instead, the Bank thinks inflation will keep itself in check as temporary factors dissipate.

2. Uncertainty remains high

While the U.S. economic recovery appears to be back on track after a dismal first quarter, European economic growth has faltered due in part to its trade sanctions with Russia. This means low interest rates are still needed to support Canadian economic growth while question marks loom about the outlook for global economic growth, demand for Canadian exports, and Canadian economic growth.

3. Canadian exports need help from the currency exchange rate

The Bank rate announcement noted that “Canadian exports surged in the second quarter.” The reasons cited were strengthening U.S. investment and “the past depreciation of the Canadian dollar.” Hiking interest rates too soon would result in a stronger loonie and dampened Canadian exports. The Bank is counting on stronger exports to lift business investment and economic growth.

4. Higher exports have not yet translated into stronger investment or hiring

The Bank was pleased to see the pickup in exports but noted, “While an increasing number of export sectors appear to be turning the corner toward recovery, this pickup will need to be sustained before it will translate into higher business investment and hiring.” As such, interest rates will need to remain stimulative in order to entice firms into increased investment and hiring even if exports remain strong.

Housing market

With these reasons in mind, interest rates are unlikely to rise in the near future. One notable change in language in the September 3 announcement was the removal of any references to a soft landing in the housing market. The Bank said that the housing market has in fact remained stronger than previously anticipated and that risks associated with household imbalances have “not diminished.”

That said, it is possible that stronger U.S. growth, a surge in exports, and the current strength of the housing market could all reflect a rebound from weak performances this past winter, which was unusually harsh.

As such, the Bank said that it remains “neutral with respect to the next change of its policy rate,” and will wait for new information as regards their outlook and assessment of risks to economic growth
and inflation.

As of September 3, the advertised five year lending rate stood at 4.79 per cent, unchanged from the previous Bank rate announcement on July 16, and down 0.55 percentage points from the same time one year ago.

The next interest rate announcement will be on October 22 and will be accompanied by an update to the Monetary Policy Report which contains the Bank’s outlook for the economy and inflation, risks to its economic projections, and an update to its estimate for potential Canadian economic growth.

Source: Canadian Real Estate Association

 

Maria Mak.Burnaby Realtor-B.C. to tighten standards for home inspectors

VANCOUVER — By the end of next year, home inspectors will have to meet a standard set of professional criteria to be licensed in British Columbia.

Housing Minister Rich Coleman said Friday the improved requirements will help safeguard home buyers who rely on the inspections for making what is likely the largest investment of their lives.

Consumer Protection B.C. will set the education and training requirements and be responsible for testing and licensing home inspectors.

“At the end of the day, buying a home is one of the biggest purchases somebody ever makes, and we’ve always been very supportive of any move toward consumer protection in this area,” said Tayt Winnitoy, vice-president of operations for Consumer Protection B.C.

In 2009, B.C. became the first jurisdiction in Canada to require licences and insurance for home inspectors, and there are now about 440 licensed in the province.

A few months later, a North Vancouver couple won an unprecedented award in the civil lawsuit they brought against their home inspector.

Three years earlier, Manuel Salgado and Nora Calcaneo bought a home for $1.095 million.

They paid $450 for an inspection, which found a number of structural deficiencies. The inspector, Imre Toth, estimated the repairs would cost them $15,000 to $20,000.

They closed the deal.

When the bill came in, it totalled $213,000.

They filed suit against Toth, the sellers and the real estate agents, but settled with the previous owners and dropped their claim against the agents.

Justice Grant Burnyeat said Toth’s estimate was “woefully inadequate.”

The purpose of the inspection is to provide a homebuyer with expert advice about any significant deficiencies, the judge wrote.

“I have no hesitation in coming to the conclusion that the plaintiffs relied upon the report received by Mr. Toth to decide whether they would purchase the property,” he wrote.

“Plainly, if prospective home purchasers did not believe that they could secure meaningful and reliable advice about the home they were considering purchasing, there would be no reason for them to retain an inspector to inspect that home.”

Currently, inspectors must pass regular examinations to obtain and keep their licence but there are four different associations that can licence, each with its own evaluation process.

In a survey by the provincial Office of Housing and Construction Standards, 78 per cent of home inspectors felt the requirements for a licence are too lax.

“It is clear ... that action is needed to increase consumer protection and to address the challenges in the current model,” the report said.

The Canadian Association of Home and Property Inspectors — one of the four groups that license inspectors — said non-existent standards improved with the 2009 regulations, but loopholes remain.

Winnitoy said home buyers can rest assured that the inspectors they’re dealing with now have met minimum training and education requirements.

“What we see now and what we’re looking forward to is a deepening and an improving of the framework to help ensure that there’s a level playing field for all home inspectors and a clear set of expectations for consumers to have.”

© Copyright (c) CP

Maria Mak. Burnaby Realtor - Serving her clients in Greater Vancouverand Burnaby for over 25 years with a big heart, with a big smile.

Maria Mak. Burnaby Realtor - 

Serving her clients in Greater Vancouver and Burnaby 

for over 25 years with a big heart, with a big smile. 

Contact Maria and her elite team for all your premium real estate services, you'll be smiling too.

www.mariamak.com

 

Maria Mak. Burnaby Real Estate Agent - How to avoid real estate investment scams

The global slowdown has shaken everyone’s investment portfolio in one way or another, while real estate values in most geographical areas continues to rise. No doubt many investors are asking themselves if they should be putting more of their money into real estate.

Real estate is one of the biggest investments people make. Unfortunately, criminals and con artists go where the money is – which means real estate and mortgage fraud. While there is no centralized database that tracks figures, most experts agree that real estate fraud is on the rise.

Common Scams

Title fraud is one of the most devastating types of scam. Imagine coming home to find your house has vanished into thin air. In some ways, this is what happens with title fraud, in which a criminal assumes your identity and uses forged documents to sell your house or get a new mortgage. This kind of fraud is often perpetrated against houses that are mortgage free – which means it often targets seniors. Scammers can also use personal information to impersonate you when applying for a loan or mortgage, leaving you – the unsuspecting victim – on the hook for the loan.

Foreclosure rescue and home equity fraud preys on those struggling with their mortgage payments. The homeowner pays up-front fees and transfers the property title to a new lender in exchange for a consolidation loan and/or lower monthly payments. The scammer then has the victim’s monthly payments and the option to sell or remortgage the house without the victim knowing.

Of course, owning a home is the way most investors will get into the real estate market, but those wanting more might look at real estate syndicates, in which a pool of investors become limited partners in a real estate project, and are part-owners of the assets. The general partner or syndicator manages the assets and investment on their behalf.

Sounds easy, right? Yet last year in Ontario, a well-known real estate syndicate collapsed into bankruptcy, and in April of this year, a real estate financier from Chilliwack faced the B.C. Securities Commission, accused of fraud and misleading investors through millions of dollars raised for Falls Capital Corp. and Deercrest Construction Fund. The allegations have not been proved in court and no charges have been laid, but these examples should serve as cautionary tales.

Tips for protecting yourself

• First and foremost, make sure you are following best practices in protecting your personal information. Protect your SIN, shred documents before recycling and put a lock on your mailbox. Don’t give personal information over the phone unless you initiated the call. Learn how to protect yourself from phishing, update security software regularly and change your passwords on a regular basis.
• Be skeptical in all transactions – scammers are successful because they engender trust. Rely on your own team of experts to verify the fine print. Know and understand what you are signing. Ask questions. Never sign incomplete documents.
• When money changes hands, ensure the funds are held in trust until the paperwork clears.
• Do some basic research on the property. A land title search can show you the name of the owner, mortgages and liens, and a record of previous transactions.
• Regularly check your credit report to make sure there are no surprises. Consult the provincial land registry office to make sure your house is in your own name.
• Consider purchasing title insurance to protect against title fraud.

Remember the golden rule of investing – if it sounds too good to be true, it probably is, and there’s no such thing as a guaranteed return. Don’t be swayed by fancy marketing. Do your research, get professional third-party advice, and you may well reap the rewards.

Maria Mak. Burnaby Realtor - Pottery by Maria Mak. Burnaby Real Estate Agent

Maria Mak. Burnaby Realtor - 

Serving her clients in Greater Vancouver and Burnaby 

for over 25 years with a big heart, with a big smile. 

Contact Maria and her elite team for all your premium real estate services, you'll be smiling too.

www.mariamak.com

 

Pottery by Maria Mak. Burnaby Real Estate Agent