Wednesday, July 29, 2015

Maria Mak. Burnaby Realtors. Understanding Agency Relationship when working with REALTOR®

The agency relationship is established through a contract between you, the client, and your agent, the company under which the REALTOR® is licensed. Most REALTOR® use a blue brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's Agent /Buyer's Agent /Dual Agency  

•For your REALTOR® to list your property for sale on MLS®, the Real Estate Board of Greater Vancouver requires completion of a listing agreement.

•Signing this agreement with you commits your REALTOR® to uphold the above obligations.

•The listing agreement also states the compensation amount the seller will pay the REALTOR®.

•The contract of purchase and sale is initiated when an offer is made by the buyer to purchase the sellers's property.

•The contract outlines the terms and conditions of the offer, such as offer price and subject conditions.

•The seller may reject the offer or make a counter offer.

•Once all terms have been accepted and both seller and buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

•Dual agency is created when an agent represents both the buyer and seller in a single transaction.

•This can happen if a REALTOR® who is representing a buyer, sells one of their own listings to that buyer.

•A dual agent must be impartial to both buyer and seller and fully disclose all information relating to the transaction.

•A REALTOR® can be a dual agent only if both seller and buyer agree in writing.

Remember: always read all contracts and disclosure forms before signing. If you have questions about agency relationships contact your REALTOR® or Maria Mak @ Sutton Centre Realty or visit her website at www.mariamak.com , You'll be smilling too!

What are the tax implications of building a laneway house?




A laneway house is a small detached residential infill house that typically fronts on the lane of a larger principal house.
It’s important for property owners to understand their options before building a laneway house or buying a property with a laneway house. Here, you'll find information about the tax implications of laneway houses through these scenarios outlined by the Canada Revenue Agency (CRA).
1 You own a principal residence and you hire a builder to build a new laneway house. You then rent or lease the laneway home to a non-relative.
The CRA considers you to be the builder, and to have:
• sold, repurchased, or “self-supplied” the laneway house at its fair market value
• self-assessed and collected the GST on the sale
• paid the GST on the repurchase of the laneway house

You must account for the GST on a GST/HST return (self-assessing), even if you are not a GST/HST registrant. You may:
• be eligible to claim a GST rebate on the construction of the laneway house, which is considered an improvement to the property, and on the land that forms part of the laneway house. Read: Guide RC4033, General Application for GST/HST Rebates
• claim the rebate on Form GST189, General Application for rebate of GST/HST using reason Code 7. For information, read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• be eligible for a GST/HST New Residential Rental Property Rebate as a builder/landlord to recover some of the GST

2 You own a principal residence and hire a builder to build a new laneway house for a relative, former spouse, or common-law partner to live in as their principal residence.
The CRA does not consider that you have sold and repurchased the laneway house and collected the GST if:
• the laneway house is used primarily (more than 50 per cent) as a place of residence
• the laneway house is not used primarily for any other purpose after construction of the house is substantially completed
• the individual (builder) did not claim any input tax credits (ITCs) when building the laneway house

You can’t claim a non-registrant’s rebate for the GST paid on construction costs. You may:
• be eligible for a GST/HST New Housing Rebate for your principal residence
• claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7.

3 You buy a property that includes a new principal residence and laneway house and you rent or lease the laneway home another individual as a place of residence.
The CRA does not consider you to be the builder of the laneway house or to have sold and repurchased the laneway house, or to have collected tax when you rent to a non-relative.
• You may be eligible for a GST/HST New Housing Rebate on the construction of the laneway house if your relative uses it as a principal residence
• If you rent or lease the laneway house to a non-relative, you may be eligible for a GST/HST New Housing Rebate for your principal house if it is your primary place of residence
• You can claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7. Read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• You may be eligible for a GST/HST New Residential Rental Property Rebate.

For more information, tell your clients to read the CRA’s The HST/HST Implications of the Construction of Secondary Housing Unites (Laneway Housing).

Did you know?

A laneway home increases the value of a client’s home. Building a laneway home:
• could affect the client’s eligibility to claim the Home Owner Grant because of the increase in property value beyond the price thresholds
• may also result in increased property taxes

Laneway houses can affect a client’s principal residence exemption

How does a laneway house affect the capital gains principal residence exemption on a property owner’s income tax? The rules are complicated. Click here to read advice from tax advisor Grant Thornton.
As always, we advise you to seek a qualified legal opinion.
It’s important you understand your options before building a laneway house or buying a property with a laneway house.









 



Monday, July 27, 2015

The Benefits of Using a Realtor ®

Selling or buying a home is a huge undertaking involving hundreds of different steps.

Some people go it alone. They see the wealth of real estate resources available online and decide to do it themselves. It's true that there's ample information available, but there are so many tangible and intangible elements to the process that mere information can't cover it all.

Selling or buying a home is a financial and emotional minefield. A Realtor is a local real estate expert with the training, experience, and proprietary market information to guide you through it.
Realtors...
  • Know what to do next—they’ve been through the whole process of selling and buying a home many times
  • Open up possibilities you might not think of—different neighbourhoods, different types of housing, alternatives that suit your needs and budget
  • Ease the intense stress of selling or buying a home by offering perspective and expertise
  • Steer you away from costly mistakes by identifying risks
  • Educate you about the current conditions of the local market—right down to block level
  • Get you the best deal possible by negotiating from experience, not emotion
Search for a Realtor on REW.ca, and browse through the many qualified local experts we have on our site. You can find a local specialist by entering a city or neighbourhood in the search bar. Or you can enter the name of a specific Realtor, real estate office, or franchise.

Saturday, July 18, 2015

Maria Mak- Burnaby Realtor - serving her clients in Metro Vancouver for over 25 years

https://realtimes.real.com/s/AU7W0X

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver and Burnaby in British Columbia in Canada for over 25 years with a big heart, with a big smile, most importantly with passion.

Thinking of Buying and Selling Real Estate, Contact Maria Mak and her elite team at 604-839-6368 or visit her website @ www.mariamak.com



Friday, July 17, 2015

What Bank of Canada's latest interest rate cut mean for Economy and Housing Market


Finance expert Penelope Graham takes a look at the anticipated effects of today’s interest rate cut announcement and offers a word of caution

By
Penelope Graham RateSupmarket.ca
July 15, 2015

So much for “one and done” – the Bank of Canada has implemented a quarter-of-a-percentage cut to its trend-setting overnight lending rate. The move brings the current cost of borrowing to 0.50 per cent, and is the Bank’s second attempt this year to use monetary policy to counter the lower price of oil.

However, unlike January’s surprise rate cut,  which caught economists and lenders off guard, today’s move was widely anticipated as a barrage of negative trade, jobs and GDP data point to an impending recession.

The bank rate is correspondingly 0.75 per cent and the deposit rate is 0.25 per cent.

“The bank’s estimate of growth in Canada in 2015 has been marked down considerably from its April projection,” states the BoC’s release. “The downward revision reflects further downgrades of business investment plans in the energy sector, as well as weaker-than-expected exports of non-energy commodities and non-commodities.  Real GDP is now projected to have contracted modestly in the first half of the year, resulting in higher excess capacity and additional downward pressure on inflation.”

Prior to 2015, the overnight rate had been held at one per cent since September 2010.

What Does This Mean for Canada’s Economy?

The BoC concedes that its previous economic forecast hasn’t hit the mark – and today’s rate cut indicates the first round of “insurance” it took in January wasn’t enough. In that month’s Monetary Policy Report, the Bank stated oil’s impact would be ”front loaded”, be concentrated in oil regions and ease after the first quarter, as other economic drivers would pick up the slack.

But the data has painted a difference picture. The economy contracted by 0.6 per cent in Q1, and trade numbers disappointed with a $13.6 billion trade deficit on the books. Now, the bank has changed its tune to call for resumed growth in Q3 and Q4, to be led by Canada’s non-energy resource sectors. GDP growth forecast has been cut from 1.9 to 1 per cent in 2015, and is expected to hit 2.5 in 2016 and 2017 respectively.

Now, questions remain over the impact on the Canadian loonie, which has already fallen 15.5 per cent against the U.S. greenback this year, and is anticipated to drop to the lowest levels seen since 2009.

Mixed Messaging?

In January, it appeared enough action had been taken to ensure oil’s impact would be temporary. It wasn’t long before talk returned of a potential rate hike as soon as early 2016.

Then, communication went off the rails. The Bank of Canada Governor stated that Canada’s Q1 economy would be “atrocious”, and that growth would be stagnant until Q2. The BoC held this stance as recently as June when, in its semi-annual Financial Systems Review, it named a housing crash, rather than oil, as our nation’s greatest economic vulnerability.

“ … given that the oil-price shock is predominantly supply-driven, the negative impact of low oil prices on aggregate income, while large, will be concentrated in the oil-producing regions,” the FSR stated. “… the vulnerability associated with household indebtedness is edging higher, and the overall risk to financial stability in Canada is slightly higher.”

Then, Poloz likened January’s rate cut to “surgery to avoid death”, and the nation braced for a recession reality.

How Will This Affect the Housing Market?

Market watchers have voiced concern that a rate cut would further fuel spiking housing prices.

Today’s record low fixe and variable mortgage rates have made it possible for many buyers to break into the market despite steep affordability. Continued demand has supported price increases.

Royal LePage cautioned the BoC against cutting rates in their latest House Price Survey and Market Survey Forecast http://www.rew.ca/news/vancouver-house-prices-to-rise-by-9-4-in-2015-royal-lepage-forecast-1.1999825. “With most Canadian real estate markets across the country advancing modestly, and some rapidly, Royal LePage advises that a further interest rate cut by the Bank of Canada could over-stimulate markets such as greater Toronto and Vancouver,” their release states.

The Royal LePage survey finds the average price of a home in Canada rose between 3.9 per cent and 7.5 per cent year-over-year in the second quarter, and that “above average price increases aren’t going away any time soon,” according to president and CEO Phil Soper.

“Looking to Canada as a whole, 2015 is shaping up to be a record year for housing, despite the cloud of economic uncertainty caused by low oil prices and twitchy global economies,” he added.

Will This Hurt Our Debt Levels?

Whether lower interest rates would further fuel household debt levels has long been a main economic concern. However, a poll held by CIBC this week finds the vast majority of Canadians would not be prompted to borrow more.

According to the poll: 

  • 93 per cent of Canadians say they are unlikely to borrow more money if interest rates fall;
  • 60 per cent say lower rates would have no impact on them; and
  • 33 per cent say they would use lower rates as an opportunity to accelerate debt repayment.

While historically low interest rates make it possible for consumers to continue buying in markets with steep affordability, the onus is on borrowers to ensure they’re not overextending themselves on their mortgages. Given the Bank of Canada’s current forecast, interest rates are expected to begin their rise over a two-year horizon – so those locking into five-year fixed terms currently could experience a very different rate environment come renewal.

Heed the golden mortgage rule, and build a minimum of two per cent into your monthly housing affordability to protect against future shocks.

For all your professional premium real estate services, contact Maria Mak and her elite team @ www.mariamak.com

Thursday, July 16, 2015

Maria Mak.Burnaby Realtor - Professional real estate services

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver and Burnaby in British Columbia in Canada for over 25 years with a big heart, with a big smile, most importantly with passion.

Thinking of Buying and Selling Real Estate, Contact Maria Mak and her elite team at 604-839-6368 or visit her website @ www.mariamak.com

Monday, July 13, 2015

Maria Mak - Burnaby Realtor - Do Condos Need a Home Inspection?

Condo - to inspect or not to inspect!


2015 has be an amazinyear for real estate in Canada, especially in the Vancouver Area. This assessment is not exclusive to single family homes, as sales of low-rise and condominiums also saw growth. This upward trend is expected to continue, with the spike in condo sales and growing consumer confidence, developers are gearing up for the launch of new projects all over the city.


Moreover, the steady rise in prices for low-rise homes in the Greater Vancouver Area may have an influx of individuals considering condo ownership. The Toronto Star reports, “Sky-high house prices, and a shortage of low-rise homes in the City of Toronto in particular, is also likely to drive more buyers to condos this year.”

With more people expected to pursue condo ownership over home ownership, there is additional emphasis being put on the following concerns: what is a Condo Inspection, and do I need one?






The Government of Ontario’s Ministry of Consumer Services has released a helpful guide for those new to the condo market, outlining what to expect when buying a condo, including a comparison of new versus resale units, condo fees and association memberships, and much more. With reference to inspections, the Ministry of Consumer Services says, “We recommend that buyers of resale condos get a Home Inspection. A quality Home Inspection will help you make an informed decision before buying a home. It will help you to understand a home’s condition and value.”
Many do not see the value in having a Condo Inspection performed. Condos are so different from low-rise homes, and this can lead condo buyers and real estate agents to conclude that they don’t require an inspection. There may be no access to the roof, no basement, no visible structure, and often no separate heating and cooling system – so what’s the point of an inspection?
While a condo does differ from a low-rise home, it still possesses the potential for issues, which buyers should be made aware of. Your inspector may not be able to gain access to the roof, but they will be looking for evidence of what is happening in the unit above 
Is there any leakage or moisture seeping into you unit? 
There may or may not be a complex heating system in your suite, but there are many other systems within your unit that will benefit from being assessed by a professional, like the electrical and plumbing systems.
Your inspector will also check your appliances, both for functionality and safety. Are they working properly? Have they been recalled for safety issues? At the end of your inspection, you will receive a detailed report of the issues that have been uncovered and timelines for maintenance.
Although many people consider a condominium to be low-maintenance, this is generally only true with respect to the common elements. Electrical, plumbing and heating problems that crop up within the unit can surprise many new condo owners. A leaking shower stall, water-damaged hardwood floor, and aging heating coil can each cost thousands of dollars to repair.

Having a Home Inspector go through your condo with you, letting you know of any existing issues, or areas where issues may arise, will help you gain a more complete understanding of what to expect should you become the owner .
Many condo inspectors have been trained to assess condos and do recognize that it is a very different type of dwelling, and perform their inspection accordingly. The Condo Inspections usually include:
  • An inspection of and consultation on the systems within your unit, focusing on their current condition and how they should be maintained
  • A detailed investigation of all major appliances
  • A check for manufacturer recalls on appliances
  • A detailed inspection report that documents the condition of systems, components, and appliances, including illustrations, technical diagrams, and helpful maintenance information
Contact Maria Mak @ www.mariamak.com - your local Metro Vancouver and Burnaby Realtor, she can help up locate the most professional home inspection services should you considering before buying.

Monday, July 6, 2015

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver for over 25 years.

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver in British Columbia in Canada for over 25 years.

Thinking of Buying and Selling Real Estate, Contact Maria Mak at 604-839-6368 or visit her website @ www.mariamak.com 

Maria Mak - Burnaby Realtor - Any property – a home, an apartment building, a farm, or an industrial site – can be on contaminated land.



Any property – a home, an apartment building, a farm, or an industrial site – can be on contaminated land.
Too often, contamination such as hazardous wastes in soil, groundwater or sediment is invisible, and harmful to human health and safety, and to the environment.
Cleanup costs can be expensive and may even exceed the value of the property.
To help buyers find out if a property they’re considering buying is contaminated, ask your REALTOR® to check the provincial contaminated Site Registry.
It has information on more than 9,000 sites, including:
• sites that are being screened and are not yet confirmed as being (or not being) contaminated
• sites that are being cleaned up
• sites that are awaiting final confirmation that cleanup is complete
• sites where cleanup is confirmed
Access to the Site Registry is through BC Online.

Improved website

The Ministry of Environment has detailed electronic and paper records often needed by those engaged in land transactions as part of the due diligence search process.
To make access to these records easier, the BC Ministry of Environment has recently developed a more user-friendly Site Remediation website.
It includes fact sheets, access to the Site Registry and other databases including the:
• Federal Contaminated Site Inventory
• Environmental Violations Database (EVD)

Contact Maria Mak and her elite team @ Sutton Centre Realty for all your premium real estate services, or visit her webiste www.mariamak.com for updated market real estate news.

Friday, July 3, 2015

Maria Mak - Burnaby Realtors - Metro Vancouver home sales set record pace in June



 

Metro Vancouver home sales set record pace in June

Last month was the highest selling June, and the second highest overall monthly total, on record for the Real Estate Board of Greater Vancouver (REBGV).
The REBGV reports that residential property sales in Metro Vancouver* reached 4,375 on the Multiple Listing Service® (MLS®) in June 2015. This represents a 28.4 per cent increase compared to the 3,406 sales recorded in June 2014, and an increase of 7.9 per cent compared to the 4,056 sales in May 2015.
Last month’s sales were 29.1 per cent above the 10-year sales average for the month. It’s the fourth straight month with over 4,000 sales, which is a first in the REBGV’s history. The previous highest number of residential home sales was 4,434, recorded in May 2005.
“Demand in our detached home market continues to drive activity across Metro Vancouver,” Darcy McLeod, REBGV president said. “There were more detached home sales in the region last month than we’ve seen during the month of June in more than 10 years.” 
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $694,000. This represents a 10.3 per cent increase compared to June 2014.
“Housing market activity comes in cycles; we're in an up cycle right now that looks similar to the mid-2000s,” McLeod said. “It would be easy to point to one factor that's causing this cycle, but the truth is that it's a number of different factors.
"Conditions today are being driven by low interest rates, a declining supply of detached homes, a growing population, a provincial economy that's outperforming the rest of Canada, pent-up demand from previous years and, perhaps most importantly, the fact that we live in a highly desirable region," McLeod said. 
New listings for detached, attached and apartment properties in Metro Vancouver totalled 5,803 in June. This represents an 8.7 per cent increase compared to the 5,339 new listings reported in June 2014.
"We’re seeing a steady stream of new listings entering the market, but the overall number of homes for sale is not keeping up with buyer demand," McLeod said.
The total number of properties currently listed for sale on the region’s MLS® is 12,181, a 23.9 per cent decline compared to June 2014 and a 1.3 per cent decline compared to May 2015. This is the lowest active listing total for June since 2006. 
The sales-to-active-listings ratio in June was 35.9 per cent. This is the highest that this ratio has been in Metro Vancouver since June 2006. A seller’s market typically occurs when this ratio exceeds 20 per cent for a sustained period of time. 
“The competition in today’s market means that buyers have less time to make decisions,” McLeod said. “Given this, it’s important to work with your REALTOR® to gain insight into the local market, to get quick access to new MLS® listings, to develop a buying strategy that meets your needs and risk appetite, and to receive other services and protections that come from having professional representation.”
Sales of detached properties in June 2015 reached 1,920, an increase of 31.3 per cent from the 1,462 detached sales recorded in June 2014, and a 74.2 per cent increase from the 1,102 units sold in June 2013. The benchmark price for a detached property in Metro Vancouver increased 14.8 per cent from June 2014 to $1,123,900.
Sales of apartment properties reached 1,774 in June 2015, an increase of 35.6 per cent compared to the 1,308 sales in June 2014, and an increase of 66.1 per cent compared to the 1,068 sales in June 2013. The benchmark price of an apartment property increased 5.3 per cent from June 2014 to $400,200.
Attached property sales in June 2015 totalled 681, an increase of 7.1 per cent compared to the 636 sales in June 2014, and a 44.3 per cent increase from the 472 attached properties sold in June 2013. The benchmark price of an attached unit increased 7.1 per cent between June 2014 and 2015 to $506,900.