Recently a member of our Fraser Valley Real Estate Board shared an excerpt from the December 25, 2006, issue of Maclean’s magazine, and I would like to share some of the details with you:
Apparently a recent study by Statistics Canada was full of good tidings about the wealth of Canadians. The article says that the total value of Canadians’ assets is up 42 per cent since 1999, to a staggering $5.6 trillion. And the net worth of the median Canadian family now stands at $148,400.
Although most of the published reports on the study focused on the increase in household debt, which also rose substantially to $760 billion, a closer look at the study reveals not a dangerous predilection for careless spending, but rather an astute investment in both personal wealth and social stability.
It turns out that about three-quarters of total household debt is mortgages. Credit card debt is a mere 3.4 per cent. This great emphasis on mortgage debt has pushed the rate of home ownership in Canada from 59.6 per cent to 61.9 per cent over the past six years.
The article goes on to explain that not only are the financial benefits of owning your own home substantial to families and individuals, (since the home represents the bulk of Canadian families’ personal assets as well as a kind of retirement savings program), but the country as a whole also gains from broad-based home ownership. Homeowners tend to be regular voters, are more engaged in their local institutions, and contribute to their neighbourhoods in ways that renters do not.
Rising home ownership rates reflect a general sense of optimism in Canada. Even higher levels of debt would thus be welcome, if it meant more Canadian families were getting their own bit of land.
I have helped first-time buyers and repeat buyers to get the best possible value in their real estate transactions and I would like to help you do the same. If you are in need of a REALTOR® you can trust to take care of your best interests in your home purchase or sale, please contact me at your convenience. I look forward to helping you!
Thursday, February 8, 2007
Saturday, February 3, 2007
PROVINCE WILL INCREASE HOMEOWNER GRANT THRESHOLD
British Columbia will raise the home owner grant threshold in response to significant increases in property values, Finance Minister Carole Taylor announced today.
“British Columbia enjoyed another year with a booming construction sector, strong real estate market and increased investment in our economy,” said Taylor. “We also recognize property values continue to rise across the province and that’s why, for the fourth consecutive year, we will increase the threshold to assist B.C. homeowners with their property taxes.
”The new threshold at which homeowners may be eligible to receive the full grant will be $950,000 in assessed property value, up from $780,000.
“Higher property value assessments are certainly a mark of our economic strength in British Columbia and demonstrate that this is a truly desirable place to live,” Taylor said. “On the other hand, higher values don’t always translate into more money in people’s pockets. Through this increase to the homeowner grant threshold, we can continue to make a real difference for B.C. homeowners today.
”Consistent with adjustments made over the previous three years, the new threshold ensures more than 95 per cent of B.C. homeowners receive the full grant.
The Home Owner Grant Program reduces the burden of residential property taxes for eligible homeowners. The basic grant entitles a homeowner to a maximum reduction in residential property taxes of $570. An additional grant of $275 is available if the owner is over 65, or permanently disabled, or eligible to receive certain war-veteran allowances.
Over the past year, assessed residential property values in British Columbia, including new construction, increased by 24 per cent. The new threshold will allow up to 41,000 homeowners, who would otherwise face a reduced benefit, to receive the full grant.
In Budget 2006, government also increased the basic grant from $470 to $570.
More information on the Home Owner Grant Program is available online at www.sbr.gov.bc.ca/hog.
“British Columbia enjoyed another year with a booming construction sector, strong real estate market and increased investment in our economy,” said Taylor. “We also recognize property values continue to rise across the province and that’s why, for the fourth consecutive year, we will increase the threshold to assist B.C. homeowners with their property taxes.
”The new threshold at which homeowners may be eligible to receive the full grant will be $950,000 in assessed property value, up from $780,000.
“Higher property value assessments are certainly a mark of our economic strength in British Columbia and demonstrate that this is a truly desirable place to live,” Taylor said. “On the other hand, higher values don’t always translate into more money in people’s pockets. Through this increase to the homeowner grant threshold, we can continue to make a real difference for B.C. homeowners today.
”Consistent with adjustments made over the previous three years, the new threshold ensures more than 95 per cent of B.C. homeowners receive the full grant.
The Home Owner Grant Program reduces the burden of residential property taxes for eligible homeowners. The basic grant entitles a homeowner to a maximum reduction in residential property taxes of $570. An additional grant of $275 is available if the owner is over 65, or permanently disabled, or eligible to receive certain war-veteran allowances.
Over the past year, assessed residential property values in British Columbia, including new construction, increased by 24 per cent. The new threshold will allow up to 41,000 homeowners, who would otherwise face a reduced benefit, to receive the full grant.
In Budget 2006, government also increased the basic grant from $470 to $570.
More information on the Home Owner Grant Program is available online at www.sbr.gov.bc.ca/hog.
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