| Monday, July 27, 2009 Top Remodeling Projects for Boosting Your Home’s Valueby Wade Allen on Mon, Jul, 27, 2009 08:59 AM Whether you are thinking about putting your home on the market or you are concerned about increasing your home’s equity over time, knowing which remodeling projects yields the best return on investment, is critical.
Not all home remodeling projects are equal in terms of ROI, however. Here are the National Association of Home Builder’s suggestions for the best ways to add value to your home:
• A Home Office Remodel
With more and more people telecommuting in today’s difficult business climate, home offices are becoming less of a luxury and more of a necessity. Creating a state-of-the-art space for potential teleworkers is a surefire way to increase your home’s value.
• Renovate or Add a Family Room
A family room is an excellent way to make existing homes more like new construction. Take into account what homes in your area are like. People like to purchase homes that blend with other homes around them.
• Replace the Roof
The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.
• Landscape Your Yard
Landscaping is also an integral part of your home’s first impression. A professionally landscaped yard adds value to your home and increases your living space.
• Replace Old Windows
Thirty percent of a home’s energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overall quality of the house and saves you money on monthly utility bills.
• Remodel Your Basement
Do you have space that serves as a black hole of unused items…like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.
• Paint, Paint, Paint
It’s been said over and over but can’t be emphasized enough. Hire a professional if you need help and keep the colors neutral if you’re looking to sell.
• Remodel Your Kitchen
Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you’ll see payback 10 years down the road. Sometimes doing it yourself can save money, but always bring in a professional for the big jobs.
• Remodel or Add a Bathroom
A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home. Saturday, July 25, 2009 HST effective July 1, 2010, payable on NEW housingby Wade Allen on Sat, Jul, 25, 2009 11:34 AM Yesterday, the Premier announced that a new harmonized sales tax would be introduced in B.C., effective July 1, 2010, which will combine the provincial sales tax with the federal Goods and Services Tax. The new tax, known as the HST, will be 12%.
The proposed HST will include a partial rebate of the provincial portion of the single sales tax for new housing to ensure that new homes up to $400,000 will bear no more tax than uner the current PST system, while homes above $400,000 will receive a flat rebate of about $20,000.
The list of services that will be subject to HST includes real estate fees, or commission.
We will keep you posted as more details are available. If you have any questions, I always welcome your calls. Tuesday, July 21, 2009 Bank of Canada Holds Key Rate Steadyby Wade Allen on Tue, Jul, 21, 2009 09:11 AM The Bank of Canada announced this morning that it will leave its key interest rate unchanged at 2.25%. The Bank also reiterated its commitment to hold its key rate at the current level until the end of the second quarter of 2010, conditional on the outlook for inflation.
In its statement the Bank noted that in Canada, “stimulative monetary and fiscal policies, improved financial conditions, firmer commodity prices, and a rebound in business and consumer confidence are spurring domestic demand growth. However, the higher Canadian dollar, as well as ongoing restructuring in key industrial sectors, is significantly moderating the pace of overall growth.”
Lenders are expected to keep their prime lending rate steady. Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate.
Pricing for fixed-rate mortgages is not directly affected by today’s announcement.
What does this mean for our Vancouver Real Estate Market? Well currently we have a lot of action from buyers who are locked in at their low fixed rates for the next 60-90 days. Most people are locked in around 3.75%. You can also get a variable rate of Prime + 0.6% (2.85%). If after another 2-3 months when those who have locked in have not bought a home, they will be forced to go with today's 5 year fixed rate of 4.25% (which is still incredibly low). But it also might make sense to look at a variable mortgage because a 1.4% difference between the two rates is very attractive. Monday, July 13, 2009 Recovery Underway in Key Canadian Marketsby Wade Allen on Mon, Jul, 13, 2009 01:26 PM Pent-up demand for residential housing has bolstered sales in Canada’s major markets—a clear signal that the housing sector has shifted into recovery mode, according to a report issued by RE/MAX.
More balanced market conditions have emerged, effectively ending the stronghold that buyers had on the market over the past six to eight months. Canada’s largest markets, Toronto and Vancouver, led the charge—with June sales among the highest in history for both local real estate boards. Close to 11,000 properties changed hands in Toronto, up 27 per cent over one year ago, setting a new record for sales in the month of June. The figure was just slightly off the all-time peak of 11,146 units. Residential sales in Greater Vancouver increased 75.6 per cent over one year ago, to 4,259 units, just short of the record breaking 4,333 sales, which occurred in June 2005. Overall, major markets began to recover in March, posting escalating sales in April, May and June. The impetus is expected to continue throughout the remainder of 2009, with most centres now forecasting year-end sales on par or ahead of 2008 levels.
While sales are the leading indicator, there are other clear signals that recovery is indeed underway. Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news. In addition, we’ve seen sale price-to-list price ratios climb across the country, rising as high as 105 per cent in some communities. Vendor incentives have also come off the table, both for resale and new housing stock.
The recent surge in resale activity can be attributed to three key factors—pent-up demand, low interest rates, and greater affordability. The combination—in conjunction with declining inventory levels—has created heated market conditions in hot pocket neighbourhoods, prompting a resurgence in multiple offers in June. Average prices are holding steady or climbing, days on market are down, and inventory levels continue to tighten, especially at entry-level price points.
The strength of the market, amid the most significant global recession in recent history once again underscores its relevance to the nation’s economic engine. Canadians believe in homeownership --a fact best illustrated by the purchasers who ventured forward in recent months and snapped up some of the best real estate deals this market has seen in years. Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat of rising interest rates, low inventory levels, and upward pressure on housing values.
Although the current pace may be unsustainable, all markers point to greater stability in the market, leading to healthier activity in the long run, with inventory levels a key variable influencing pent-up demand. Wednesday, July 8, 2009 Condo Tower Downtown Considering RE-LAUNCHby Wade Allen on Wed, Jul, 8, 2009 08:10 PM From CBC.ca
The 60-storey Ritz-Carlton tower in Vancouver was scheduled for completion in 2011 before the project was suspended. (Holborn Group)
A Vancouver developer's plan to resume construction on a luxury high-rise building where work stopped last fall may be another sign that Vancouver's real estate market is picking up steam again.
Last October when the global economy tanked, construction on the six-star hotel and condominium tower on West Georgia Street in downtown Vancouver ground to a halt, leaving a giant hole in the ground. By spring buyers were given their deposits back.
The project was one of several cancelled across Metro Vancouver last fall and winter because of the real estate downturn.
But in June real estate sales in Vancouver were up 75 per cent over the previous year and prices were picking up as buyers took advantage of record low interest rates.
On Wednesday Joo Kim Tiah, the president of Holborn Group, told CBC News he is hoping construction of a more modest four-star version of the Ritz-Carlton project could begin this fall.
"If not the fall, then by early next year we will begin construction again, so that project is going to move ahead," said Tiah.
It is not clear yet if the new design would still carry the Ritz-Carlton name. Wednesday, July 8, 2009 Housing prices to drop 2 per cent in 2009?by Wade Allen on Wed, Jul, 8, 2009 09:11 AM A new forecast from a major Canadian real estate company predicts that the national housing market is stabilizing, after seeing a "remarkable turnaround" in the second quarter of 2009.
Royal LePage predicts that the selling price of the average house will drop by only two per cent this year -- an improvement over the real estate company's prior forecast from six months ago that predicted a three per cent drop.
The real estate company also predicts that the number of unit sales will drop about one per cent in 2009 to an estimated 430,000 sales.
Phil Soper, the president and CEO of Royal LePage Real Estate Services, said that the forecast adjustment is the result of the improved real estate sales numbers seen in the second quarter of this year.
"We've got the most important quarter in the real estate calendar behind us -- the second quarter -- and it really was a remarkable turnaround," Soper said during an interview on CTV's Canada AM on Tuesday morning.
"As steep as the decline was, the bounce-back was just as dramatic," he added.
While the year's second quarter saw housing prices beginning to appreciate, the average national housing prices still remain below their values from 12 months ago.
According to the Royal LePage figures:
- The average price of a detached bungalow declined to $327,964, about 3.5 per cent below what it was the year before
- The average price of a two-storey home was down 3.7 per cent to $392,378
- The average price of a condominium dropped four per cent to $236,612
Soper said a combination of lower mortgage prices and a housing supply shortage in parts of Canada helped push the market upward during the second quarter.
But he cautioned that the market still has a long way to go, when it comes to recovering the value lost during the recent setback.
"It's going to look better for the second half of this year," he said. "It's not going to be a startlingly good year like earlier in the decade, but I think just the bounce-back, the comeback from where we were, is going to make a lot of Canadians feel a lot more comfortable about the homes they live in."
In many Western Canadian cities, including Calgary, Edmonton and Vancouver, housing prices are still between 10 and 15 per cent below what they were a year ago, Soper said. But they are "gaining back ground," he said.
In Ontario, Royal LePage said Ottawa would likely see stable prices throughout 2009, with Toronto's market stabilizing towards the end of the year.
Montreal is expected to remain a strong real estate market this year, helped by low interest and unemployment rates.
In Atlantic Canada, housing prices were much more stable than in cities further west in Canada throughout the recession, meaning that their pricing fluctuations have been less volatile overall, Soper said.
And according to the Royal LePage figures, demand for housing has so far been strong in 2009, due to strong local economies coupled with moderate housing prices. Wednesday, July 1, 2009 7 ways to help get your offer accepted!!!by Wade Allen on Wed, Jul, 1, 2009 12:38 PM First time home buyers are looking at a market that shows no mercy, is highly competitive and does not reflect the conditions of a so-called "depressed real estate market." It is frustrating, and can become very tedious. It is not easy to find a good house at the entry level without having to compete with other buyers, but with persistence, good preparation and the help of a professional Realtor (I happen to know one), your chances of becoming a homeowner are better. Above all, be realistic, your very first house is not your "Dream House" but getting on the homeownership wagon will eventually get you there.
How can a home buyer compete and win a bidding war? By understanding how offers are viewed by the seller and being prepared to meet those requirements as much as possible. If you can pay all cash, there will be no financing contingencies or appraisals to wait for, and it can close within days, but if that is not possible, follow these steps to strengthen your position and get your offer accepted:
1. Be pre-approved from your bank and have a letter signed from them showing that you are;
2. Get in as early as possible, even if the offers aren't being looked at until Sunday night. The sooner you get in, you can then bring back an inspector with you on a 2nd viewing to maybe remove that subject from your offer;
3. Request all the strata documents, PDS, and Title search before offers are being presented so that you can read and approve all of these documents, and then write your offer without the subject to reviewing them. The cleaner the offer the better;
4. Ask what closing and possession dates work best for the seller, and match those dates in your offer;
5. Get your Realtor to do a in depth CMA (Comparative Market Analysis) of the property and find out exactly what the market value of the home is. Then discuss the pros and cons of offering more money than the asking price.
6. Always, always try to get your offer presented by your Realtor. This way we have the chance of selling you as the best possible buyers for the property. We may also have a chance at negotiating a potential counter offer if there is another offer higher.
7. If you get in early enough, you can actually get your mortgage broker to formally approve you for this property. This should only take 3-4 days (or sooner) so if you get "approved" for this home before offers are being presented, you can go in with a clean offer.
If you follow all 7 of these steps you will have the BEST chance at getting the home you want, at a price you are comfortable with. Sellers usually don't care who buys their home, it who has the best offer. Follow those 7 steps and that will be you. |
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