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.
Saturday, January 27, 2007
One Big Home Selling Mistake You Don't Want to Make
Pricing your property too high is one of the biggest mistakes you can make when you list your home for sale. Obviously every seller wants to get the most money for his or her property. Unfortunately, the best way to do this is NOT to list your product at an excessively high price! A high listing price will sell your neighbour's house, not yours. Some prospective buyers will lose interest before even seeing your property. Also, it may lead other buyers to have unrealistic expectations of what you have to offer. As a result, overpriced properties tend to take longer to sell, and when they do finally sell, they end up being sold at a lower price than if they had been priced according to market data to begin with. Enlist the services of a professional REALTOR® to assist you in determining the correct listing price for your home. REALTORS® have access to the sale prices of homes in your area through the MLS®.
It matters who you select to represent your best interests. Choosing the wrong REALTOR® to represent you can be as disastrous as pricing your home incorrectly. Choose a REALTOR® who you like and trust to make sure that YOUR best interests are represented in your home sale or purchase. Trust Cyndi to protect YOUR best interests!
It matters who you select to represent your best interests. Choosing the wrong REALTOR® to represent you can be as disastrous as pricing your home incorrectly. Choose a REALTOR® who you like and trust to make sure that YOUR best interests are represented in your home sale or purchase. Trust Cyndi to protect YOUR best interests!
Monday, January 22, 2007
Rental Vacancies Tighten, Rents Rise
Canada Mortgage and Housing Corporation's annual rent market survey shows that the vacancy rate in Greater Vancouver is now the lowest in 17 years.
In Abbotsford, the average vacancy rate dropped nearly two percentage points from 3.8 per cent in 2005 to 2.0 per cent in 2006, stopping the recent trend of rising vacancy rates observed since 2002. Strong demand was observed for all bedroom types.
This has an obvious effect of allowing landlords to raise rents (within their legal rights, of course), which may mean that for some people the gap between renting a home and buying a home is closing.
In Abbotsford, the average vacancy rate dropped nearly two percentage points from 3.8 per cent in 2005 to 2.0 per cent in 2006, stopping the recent trend of rising vacancy rates observed since 2002. Strong demand was observed for all bedroom types.
This has an obvious effect of allowing landlords to raise rents (within their legal rights, of course), which may mean that for some people the gap between renting a home and buying a home is closing.
Friday, January 19, 2007
One Important Tip To Buying The Best Home For Your Money!
Get "Pre-Approved" - Not "Pre-Qualified!" Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible.
Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of time to completion, are critical to a seller. In years past, it was always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc. So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
I would be happy to provide you with contact information for a few different lenders for your consideration. Just give me a call at 604-820-7733.
Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of time to completion, are critical to a seller. In years past, it was always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified! Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc. So the way to make the strongest offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
I would be happy to provide you with contact information for a few different lenders for your consideration. Just give me a call at 604-820-7733.
Thursday, January 18, 2007
Real Estate Market Bubble?
I would like to briefly tell you about the CMHC Market Insight Presentation that I attended today. This presentation was meant to answer the questions that REALTORS® in the Fraser Valley (and most other areas) are asked daily:
What are interest rates expected to do? Where's the market headed? Are we in a housing market bubble?
The answers that I will give here are applicable to the Fraser Valley of B.C., Canada, and may also apply to the Greater Vancouver area.
Well, the short answer is that for 2007, the interest rates are expected to stay rather flat. If any change occurs, it will be in the range of a quarter to three quarters of a point.
Due to the strong economy, labour shortage, low unemployment rates and interprovincial and international migration to B.C., demand for housing will remain high, which will keep housing prices high. There will most likely be fewer housing sales in 2007 compared to 2006, however prices are likely to increase in the order of approximately 8% over the year. Housing starts remain high in B.C. There were approximately 9,800 in 2006, many in Multi-Family units, and the number for 2007 is expected to be very similar.
Regarding the "bubble" question that many people are fearing may happen, the bottom line that is coming out of the mouths of most experts lately is that without a decrease in demand for housing, prices will remain high. As long as people find the Fraser Valley a desirable place to call home, and as long as people have secure, steady employment that gives them the means to buy a home, we will see high housing prices. The only thing that would cause prices here to fall would be a severe blow to B.C.'s economy, or for people to stop realizing what a beautiful place the Fraser Valley is to call home.
If I can be of any help to you, please do not hesitate to contact me. Thanks! Cyndi
What are interest rates expected to do? Where's the market headed? Are we in a housing market bubble?
The answers that I will give here are applicable to the Fraser Valley of B.C., Canada, and may also apply to the Greater Vancouver area.
Well, the short answer is that for 2007, the interest rates are expected to stay rather flat. If any change occurs, it will be in the range of a quarter to three quarters of a point.
Due to the strong economy, labour shortage, low unemployment rates and interprovincial and international migration to B.C., demand for housing will remain high, which will keep housing prices high. There will most likely be fewer housing sales in 2007 compared to 2006, however prices are likely to increase in the order of approximately 8% over the year. Housing starts remain high in B.C. There were approximately 9,800 in 2006, many in Multi-Family units, and the number for 2007 is expected to be very similar.
Regarding the "bubble" question that many people are fearing may happen, the bottom line that is coming out of the mouths of most experts lately is that without a decrease in demand for housing, prices will remain high. As long as people find the Fraser Valley a desirable place to call home, and as long as people have secure, steady employment that gives them the means to buy a home, we will see high housing prices. The only thing that would cause prices here to fall would be a severe blow to B.C.'s economy, or for people to stop realizing what a beautiful place the Fraser Valley is to call home.
If I can be of any help to you, please do not hesitate to contact me. Thanks! Cyndi
Wednesday, January 17, 2007
For Sale By Owners Not Thinking About Prospective Buyers
If you are thinking of selling your home yourself, you may want to put yourself in the shoes of the Buyers who you are trying to attract.
You are most likely aware that it is the seller that pays the commission of both their REALTOR® and the buyer’s REALTOR®, which is why you are thinking of "saving money" by doing it yourself. If you are thinking about doing it yourself, please consider the following:
Ask yourself this question: Why would a buyer go to a FSBO website or respond to a FSBO ad in the paper instead of searching on the MLS and using a REALTOR®? I mean, what possible benefit does a buyer have by not using a REALTOR® to help them negotiate the best price on the home that they want to buy, when the cost of their REALTOR® is coming out of the seller's net proceeds of sale?
While I can't speak for all buyers of FSBO's, chances are that they believe that it is they that will save money, not the seller. These savvy buyers know that most homeowners don’t truly know the value of their home, and will often list their property for less than it is worth. Or, even worse for you, they could be very experienced negotiators and they know that they can bargain you down because they have refined their skills to manipulate people.
Are you a skilled negotiator who most definitely knows the value of your home and can ensure that you don't undersell yourself? If so, GREAT! Then you are also aware that when two people both know the value of a home and both are trying to end up with the "commission savings" in their pockets, the chances are that you will not be able to come to an agreed price and terms with them.
When you work with a REALTOR® to sell your home, you hire someone trained to negotiate to get you the best price and terms for your home. You also gain an expert in marketing to get the best exposure for your home and an ally who will protect you legally when writing the contract of purchase and sale.
There are many more benefits to using a professional REALTOR® to market and sell your home. If you want the sale of your home to go as smoothly as possible, to have your best interests protected and to sell your home for the most money possible, then you need to work with a professional REALTOR® to sell your home.
If you are thinking of selling your home yourself, you may want to put yourself in the shoes of the Buyers who you are trying to attract.
You are most likely aware that it is the seller that pays the commission of both their REALTOR® and the buyer’s REALTOR®, which is why you are thinking of "saving money" by doing it yourself. If you are thinking about doing it yourself, please consider the following:
Ask yourself this question: Why would a buyer go to a FSBO website or respond to a FSBO ad in the paper instead of searching on the MLS and using a REALTOR®? I mean, what possible benefit does a buyer have by not using a REALTOR® to help them negotiate the best price on the home that they want to buy, when the cost of their REALTOR® is coming out of the seller's net proceeds of sale?
While I can't speak for all buyers of FSBO's, chances are that they believe that it is they that will save money, not the seller. These savvy buyers know that most homeowners don’t truly know the value of their home, and will often list their property for less than it is worth. Or, even worse for you, they could be very experienced negotiators and they know that they can bargain you down because they have refined their skills to manipulate people.
Are you a skilled negotiator who most definitely knows the value of your home and can ensure that you don't undersell yourself? If so, GREAT! Then you are also aware that when two people both know the value of a home and both are trying to end up with the "commission savings" in their pockets, the chances are that you will not be able to come to an agreed price and terms with them.
When you work with a REALTOR® to sell your home, you hire someone trained to negotiate to get you the best price and terms for your home. You also gain an expert in marketing to get the best exposure for your home and an ally who will protect you legally when writing the contract of purchase and sale.
There are many more benefits to using a professional REALTOR® to market and sell your home. If you want the sale of your home to go as smoothly as possible, to have your best interests protected and to sell your home for the most money possible, then you need to work with a professional REALTOR® to sell your home.
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