Joomla! site syndication http://www.westendrealestate.net Thu, 24 Jul 2008 05:38:09 +0100 FeedCreator 1.7.2 http://www.westendrealestate.net/images/M_images/joomla_rss.png http://www.westendrealestate.net Joomla! site syndication http://www.westendrealestate.net/real-estate/general-information/condos-are-they-for-you.html June 01, 2007It's the economic equivalent of a blast of cold water on a hot summer day.Recent rumblings about the prospect of an inflation-fighting interest rate hike is certain to give Canadians – especially those contemplating a major purchase – something to think twice about. Not that it's likely to be a major deterrent, especially when it comes to the hot market for condominiums.While the real estate market has been remarkably robust for several years, condos are out-performing other residential housing categories both in volume of sales and in price appreciation.In Toronto in April, 47 per cent of all new home sales were condos and there was a 15 per cent increase in sales year over year. Nationally, condos now represent one-third of all new home construction in Canada in the past decade.The really impressive numbers, however, lay in the price gains of condo units across Canada.Data collected by Royal LePage shows that in the first three months of this year, condo prices on average were up 16.3 per cent from a year earlier, compared with 14.9 per cent appreciation in bungalow prices and 11.8 per cent gains for two-storey homes.So what gives here?Well, there are several fundamental reasons for the strength in condo markets.For one thing, they still remain relatively affordable when compared with other residential options. And they are also typically located in central urban areas, which is where – according to the 2006 census results – Canadians are increasingly flocking.That urban trend is reinforced by at least two others.Although they live longer and stay in their homes longer, the aging Baby Boomer demographic is gradually downsizing and looking for a more maintenance and hassle-free lifestyle.That translates into demand for condo units, as does the fact that Canada's future population growth is coming principally from immigration.And census data shows that 72 per cent of all new Canadians choose to live in Toronto, Montreal or Vancouver.Young first-time buyers are also choosing condos for their affordability and their access to downtown amenities – as well as the ability to avoid increasingly fraught commutes to suburban areas.While these substantial attractions make a compelling case for condo life – or investment – there are some other critical considerations to bear in mind, however.First and foremost, you have to be extremely realistic about your ability to live in communal, close-quarters with other people. Condos have abundant shared space and people have radically different expectations about how that should be used.That means that however anxious you may be to secure a unit or win a bidding war, in addition to the fee structure and the special insurance costs, prospective buyers need to have a close look at the condo board, the age and ethnic composition of the building and the bylaws. Because the reality is that fierce legal disputes among unit holders are very common.Doing your due diligence might even include reading the minutes from some past board meetings to get a clear sense of what some of the ongoing issues and debates may be in the building.The age of the condo building – and the implications for tension with the neighbors - is also something upon which to reflect.While an older building tends to have an established fee structure and financial record-as well as experienced condo board members-it is also more likely to require costly maintenance repairs and upgrades. But while both of these are eventualities are usually covered by the reserve fund, which is required by legislation in most provinces, they still tend to spark disputes.Schisms between long-time residents and newcomers to an established building can also cause problems. While the established residents, who've paid into the reserve fund for years, have one set of priorities for spending the capital, the new arrivals - who've paid more for their units but less into the fund - have others.But while living under democratic rules which ensure the majority prevails is one source of acute stress, the forging of those rules-and the attached costs-can also be a hugely contentious issue.In new buildings, there's typically a rough template for governance and by-laws that's passed along from the developer. But refining the regime can be a messy business.One Vancouver condo came close to meltdown over the issue of a concierge, who's salary was covered for the first year by the developer.When the first budget was being drafted and the cost of the concierge service suddenly had to be factored in, there was a 65 per cent hike in the fees. The new board had to decide between expenses or services – a point on which there was little consensus.Some of the most currently divisive issues are smoking and pets.Disputes arise over smoking on balconies and terraces as well as within units, because the smell can permeate common areas like hallways. It's not unheard of for smokers to be asked to pay for special smoke-proofing of their units.Pets and hardwood floors can also be acrimonious issues.Non-pet people can claim allergies as a reason to push for a ban. And while many condos insist on broadloom carpet, banning hardwood floors because of noise considerations, the same allergy card can be played in those circumstances as well.All of which may deliver a second blast of cold water. Real Estate - General Information Wed, 13 Jun 2007 00:29:06 +0100 http://www.westendrealestate.net/real-estate/general-information/taxes-on-selling-your-real-estate.html Selling your cabin. Keep your receipts.With baby boomers scouring the country looking to buy cabins and recreational properties, you may be tempted to sell that slice of summer paradise that has been in the family for 40 years.But it's not a slam dunk, even if you're in a desirable part of cabin country, with strong demand and a bustling regional economy.Cashing in on rising demand and booming prices for cabins could also produce a major tax headache.Let's hope you kept all those bills years ago when you put in a new septic tank, remodelled the bathroom or built a new dock for the boat. You'll need them.Unlike your home, a cabin faces capital-gains taxes if it's sold for a profit. Federal tax changes in recent years have reduced that amount to 50 per cent of the gain, but you're still talking tens of thousands of dollars in potential new taxes.Still, there are ways to minimize the tax hit, but you have to be organized. With capital gains, you almost need to be planning to sell it from the day you buy it. Over time there are any number of things that are improvements to the cottage you can use legitimately to offset the appreciation of the property. Considering how much property prices have increased over the years, anything you can grab on to that reduces the capital-gains impact is really important. A capital gain is the difference between what you get from the sale of a property and what you paid for it. Capital gains don't apply to your principal residence -- your home -- but kick in for cabins, income-producing apartments or other second properties.So, if you sell a cabin that cost $50,000 about 15 years ago for $250,000 today, you would face a $200,000 capital gain. That translates into a $100,000 increase in taxable income you would have to report on your income taxes next spring. That could mean a tax bill of more than $25,000 or more.Even if you transfer ownership of the cabin to your son or daughter to avoid the hassles of a sale, it's called a deemed disposition, with capital-gains-tax implications as well.But there are deductions you can make to reduce your capital-gains exposure. You can deduct what you paid to add value to the property -- everything from a new roof or extra bedroom to a new septic tank -- even landscaping.If over a decade, you spent $50,000 in materials and professional labour to improve the cottage -- and you have receipts to prove it -- you can deduct those costs from your capital gain and cut the tax hit by thousands of dollars.The problem is that you have to have receipts, cancelled cheques and bills of sale to show the Canada Revenue Agency if they carry out an audit. Work you've done yourself can't be included You can claim the materials you use to perform work, but you can't claim your own time, says Hunter. You can't say you're worth $80 an hour and put that against the capital gain. Recent reports from major real-estate brokerages suggest that sales of cottages and luxury recreational properties will soar this spring and summer as affluent baby boomers push up demand across the country.Western Canada's energy-rich economy has seen the biggest increases, with starting prices topping $500,000 in nearly a third of the markets surveyed by the Re/Max brokerage. Baby boomers are investing in the future -- from both a lifestyle perspective and an economic standpoint, says Elton Ash, regional director of Re/Max of Western Canada. Tremendous equity gains have been realized in recent years as demand for recreational properties across the country swells. Given the aging of the population, this trend is expected to continue for at least the next five to 10 years as baby boomers move through the cycle. While the financial implications of capital gains is the biggest headache for cabin owners, Hunter says the practicalities of how to go about selling the property are also top of mind. While the Internet has helped get wider display of properties and help attract new buyers, it's advisable to hire a knowledgeable real-estate agent to help price the cabin properly and show it when you are away.-- Canadian Press TORONTO -- With baby boomers scouring the country looking to buy cabins and recreational properties, you may be tempted to sell that slice of summer paradise that has been in the family for 40 years.But it's not a slam dunk, even if you're in a desirable part of cabin country, with strong demand and a bustling regional economy.Cashing in on rising demand and booming prices for cabins could also produce a major tax headache.Let's hope you kept all those bills years ago when you put in a new septic tank, remodelled the bathroom or built a new dock for the boat. You'll need them.Unlike your home, a cabin faces capital-gains taxes if it's sold for a profit. Federal tax changes in recent years have reduced that amount to 50 per cent of the gain, but you're still talking tens of thousands of dollars in potential new taxes.Still, there are ways to minimize the tax hit, but you have to be organized. Selling a cottage is tricky and you've got to do your homework, says Douglas Hunter, author of The Cottage Ownership Guide, a book chock full of tips for buyers and sellers of recreational properties. With capital gains, you almost need to be planning to sell it from the day you buy it. Over time there are any number of things that are improvements to the cottage you can use legitimately to offset the appreciation of the property.Considering how much property prices have increased over the years, anything you can grab on to that reduces the capital-gains impact is really important. A capital gain is the difference between what you get from the sale of a property and what you paid for it. Capital gains don't apply to your principal residence -- your home -- but kick in for cabins, income-producing apartments or other second properties.So, if you sell a cabin that cost $50,000 about 15 years ago for $250,000 today, you would face a $200,000 capital gain. That translates into a $100,000 increase in taxable income you would have to report on your income taxes next spring. That could mean a tax bill of more than $25,000 or more.Even if you transfer ownership of the cabin to your son or daughter to avoid the hassles of a sale, it's called a deemed disposition, with capital-gains-tax implications as well.But there are deductions you can make to reduce your capital-gains exposure. You can deduct what you paid to add value to the property -- everything from a new roof or extra bedroom to a new septic tank -- even landscaping.If over a decade, you spent $50,000 in materials and professional labour to improve the cottage -- and you have receipts to prove it -- you can deduct those costs from your capital gain and cut the tax hit by thousands of dollars.The problem is that you have to have receipts, cancelled cheques and bills of sale to show the Canada Revenue Agency if they carry out an audit. Work you've done yourself can't be included. You can claim the materials you use to perform work, but you can't claim your own time, says Hunter. You can't say you're worth $80 an hour and put that against the capital gain. Recent reports from major real-estate brokerages suggest that sales of cottages and luxury recreational properties will soar this spring and summer as affluent baby boomers push up demand across the country.Western Canada's energy-rich economy has seen the biggest increases, with starting prices topping $500,000 in nearly a third of the markets surveyed by the Re/Max brokerage. Baby boomers are investing in the future -- from both a lifestyle perspective and an economic standpoint, says Elton Ash, regional director of Re/Max of Western Canada. Tremendous equity gains have been realized in recent years as demand for recreational properties across the country swells. Given the aging of the population, this trend is expected to continue for at least the next five to 10 years as baby boomers move through the cycle. While the financial implications of capital gains is the biggest headache for cabin owners, Hunter says the practicalities of how to go about selling the property are also top of mind. While the Internet has helped get wider display of properties and help attract new buyers, it's advisable to hire a knowledgeable real-estate agent to help price the cabin properly and show it when you are away.(Source: Vancouver Province) Real Estate - General Information Tue, 15 May 2007 01:05:21 +0100 http://www.westendrealestate.net/real-estate/general-information/experts-back-taking-cash-from-rrsp-to-buy-a-home.html Experts back taking cash from RRSP to buy a home.The Home Buyers Plan introduced by then-federal finance minister Don Mazankowski in 1992 was supposed to be a one-year program. But was such a popular way to start building home equity that it became a permanent fixture.According to Canada Mortgage and Housing Corporation figures, 1.3 million Canadians used the plan to withdraw $1.3 billion from their registered retirement savings plans from 1992 to 2002.Author Gordon Pape warns that for some people the plan could be a financial time bomb that could severely compromise their retirement income, but he and most experts agree that for most people the plan presents a great opportunity. I think it makes total sense, said Jim Yih, an Edmonton financial planner, author and speaker. Especially with rising house prices, anything you can do to get into the house market makes sense. I'm a big fan of owning your own home versus renting. I think ownership of a home teaches you so much about the principles of money and wealth. With the housing market mired in a recession during the early 1990s, the Canadian Real Estate Association lobbied the federal government to let people temporarily use some of their retirement funds to purchase a home.The result was the Home Buyers Plan, a one-year opportunity for every Canadian to withdraw up to $20,000 from his or her RRSP towards the purchase of a home, and to be repaid over 15 years.Since then, the program was first extended then made permanent with modifications. It's now available if neither a person nor his or her spouse or common-law partner owned a home and lived in it as a principal residence in the period beginning Jan. 1 of the fourth calendar year preceding the year of the withdrawal.There are other restrictions. Money deposited into an RRSP cannot be withdrawn under the plan within 89 days. And at least one-15th of the amount withdrawn must be repaid each of the following 15 years, with any shortfall being taxed as income.To get the HBP withdrawal, you must make sure you have money in your RRSP that it isn't locked into guaranteed investment certificates. Some institutions let you withdraw locked-in amounts if you take out the mortgage with their firm or if you pay a penalty.The next consideration is weighing the loss of RRSP growth against the savings in mortgage interest plus appreciation in the value of the house. You may be giving up 10 or 15 per cent RRSP returns to save five or six per cent of mortgage costs on the HBP withdrawal amount, with the difference more than likely to be offset by gains in the value of the house -- but not always. Generally, the older you are, the less you might lose in RRSP growth. It's still going to be something that appreciates in value, whether it's real estate, a stock or a mutual fund, said Yih. There are times when real estate exceeds stock markets and times when stock markets exceed real estate -- just keep those in balance. If young people have $20,000 for a down payment for a house and they have RRSP contribution room, I tell them they might as well make the RRSP contribution first, and then use it for the home (after waiting 90 days), said Yih. You put in $20,000, get a 32 per-cent deduction, or whatever the amount is. You now have an extra $6,000 you wouldn't have had in the first place. You use that towards the down payment and take the $20,000 out of the RRSP. (prepared by Ray Turchansky, For CanWest News Service/Vancouver Sun) Real Estate - General Information Sat, 28 Apr 2007 22:54:45 +0100 http://www.westendrealestate.net/real-estate/general-information/older-homes.html Dangerous wiring found in most older homesDangerous electrical wiring exists in the majority of pre-1950 homes in B.C., especially those with secondary suites, according to preliminary findings by a Vancouver company.Of 104 older homes inspected by last year by PowerSafe Inc., 60 per cent had electrical problems requiring immediate attention.Hazards that could lead to a fire zoomed to 84 per cent in 30 homes with secondary suites, said Brian Cook, co-founder of the firm.Horrors like live wires hanging out of junction boxes or dangerously overloaded flexible cords were more than twice as common in homes with secondary suites, Cook said Friday.Bad wiring can be a life or death issue. Of 242 fires blamed on faulty electrical systems, 3.2 per cent of B.C.'s total in 2004, three caused fatalities, according to the most recent numbers from the Office of the Fire Commissioner. Secondary suites are more likely to be home handyman add-ons where homeowners don't use a licensed electrical contractor to put in extra wiring, Cook said. It's illegal for any licensed electrical contractor to wire a home for a secondary suite without taking out a permit, so the work gets done by people who don't necessarily know what they are doing. PowerSafe was launched last year by Cook, a 30-year electrical contractor, and Ric Pow, a professional engineer, to take a closer look at potential electrical hazards that can render pre-1950 homes uninsurable unless thousands of dollars are spent on updating.Six months ago, rather than insist that all owners of older homes bring old-fashioned knob and tube wiring up to current standards, B.C. Automobile Association began referring clients to PowerSafe to make a 50-point electrical safety check.If the home checks out, BCAA insures it and refunds the $250 inspection fee over four years of reduced premiums.While there may be no need to replace the old wiring, Cook and Pow often discover more serious hazards.That's what happened to Daphne and Michael Francis who had been told they could only get homeowner insurance if they rewired their immaculate 1916 heritage home in Vancouver's Point Grey.They called in PowerSafe which determined the old wiring was fine but then spotted a hazard the insurance company's inspector had missed -- a detached emily knob at the point where BC Hydro's power line connects with the house.That was putting tension on the power line which Cook says could have contributed to a huge fire. Daphne Francis immediately called hydro which fixed the problem without charge.BCAA is now extending the program beyond knob and tube wiring, which affects about 200,000 homes in B.C., to include more recently built homes with potential problems like 60-amp rather than 100-amp service, or aluminum wiring.Sixty-amp service was common prior to the 1970s but may not be able to handle extra loads from modern add-ons such as electrical baseboard heating and hot tubs. Aluminum wiring, widely used as substitute for high-priced copper in the decade prior to 1975, can be hazardous when used in conjunction with copper wire. Through our discussions with PowerSafe we came to realize there were better ways of dealing with older wiring and getting a better understanding of the risks, said Brook Hanson, BCAA's product manager for home insurance. It means we don't have to turn members away and it has opened the market to new customers who may not be BCAA members but have heard we have this product. (prepared by Michael Kane/Vancouver Sun) Real Estate - General Information Sun, 11 Feb 2007 00:21:52 +0100 http://www.westendrealestate.net/real-estate/general-information/homes-sales-slow.html BC home sales slow as real estate market re-balancesPublished: Thursday, January 04, 2007 It's official, the Lower Mainland's residential real estate market is definitely slowing down.In 2006, home sales in the Greater Vancouver area -- which stretches from Whistler to Maple Ridge and Tsawwassen -- were down 12.4 per cent from 2005 and two per cent below 2004 numbers. Sales in December were down 28 per cent compared to both a month and year earlier.But the number of sales in December -- 1,686 -- is still considered a good market and nothing will compare to the phenomenal numbers of 2005, said Rick Valouche, president of the Real Estate Board of Greater Vancouver.The beginning of 2006 also started at a blistering pace, but the second half of the year was most definitely slower, he said.And while sales are down, prices continue upward, again at a slower pace, he said. We need that because we were just starting to get a little bit crazy, Valouche said.Average house prices ended the year at $775,700, up 24 per cent from $627,500 a year earlier. Attached homes went to $441,000 from $401,500, an increase of only 10 per cent, and apartments increased 14 per cent to $353,800 from $309,700.Increased listings, usually a sign of a slowing market, failed to materialize in December, but Valouche was hopeful that will reverse this month. I think we are continuing on the road toward balance, he said.David Rishel, president of the Fraser Valley Real Estate Board agreed that the market was different now than it was in the first six months of 2006. The first part of 2006 was very busy and it just slowly got a little bit quieter and a little bit quieter as the year went on, Rishel said. It's a very balanced market now. People don't have to make those rush decisions. They can take their time and be a little bit more well-informed. In the Fraser Valley area, which encompasses north Delta to Abbotsford on the south side of the Fraser River and Mission on the north side, sales were down almost 11 per cent from 2005, but still beat 2004 numbers, which at the time constituted a new record. Over the year, listings were up slightly but the number of active listings at the end of the year were 46-per-cent higher than a year earlier.The average price for a townhouse in the area fell almost seven per cent in December compared to November, while apartment prices fell three per cent and house prices remained steady. But year over year, detached homes were up 19 per cent to $488,000 from $410,000, townhomes rose 10 per cent, from $259,000 to $285,000 and apartments increased 15 per cent, from $168,500 to $193,500.Prices are not expected to drop.Canada Mortgage and Housing Corp. predicts prices in the Vancouver area to increase between six and nine per cent in 2007, with the largest rise in apartments where there is still room for growth, CMHC's market analyst Bryan Yu said.That's a slowdown from the double-digit increases the area has been seeing, Yu said.(prepared by Fiona Anderson/Vancouver Sun) Real Estate - General Information Mon, 08 Jan 2007 12:21:43 +0100