Fixed Rates on the Rise

There is a plenty of uncertainty as to whether the economy is recovering quicker than expected and if inflation and interest rates will rise in the next few months.

The Bank of Canada once again stated on June 4, that it will keep its current interest rates until the second quarter of 2010 to help combat the recession and forecasts inflation to climb back to 2% by the third quarter of 2011.
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The Spring Market is Heating Up

The birds and the bees are not the only ones busy this May as spring fever has sprung in the Real Estate market. There are two major factors that are helping to achieve this recovery from the dramatic slump that started in the latter half of 2008.
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Deck Out Your Home Right

In terms of home renovations, decks are a great idea and will add value to a home but they are a big ticket item and must be done right to ensure that the homeowner can recoup some or all of their costs when they go to sell their home. Here are some of the right steps to initially take when renovating a deck or installing a new one:
Build it for yourself first. Build the deck to your needs, wants and expense first but be sure to keep the idea of resale in the background. Do keep in mind that the main value of a deck comes from your personal enjoyment of it, not from the value it adds during resale. If you are thinking of selling your home quickly and want to make money by adding a deck, talk to your REALTOR® first to find out what value it could add and whether or not that money could be better spent on other upgrades. Read More...
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The New Home and Builder Registries Now Online

The Homeowner Protection Office (HPO) has recently posted some very welcome additions to their website www.hpo.bc.ca. The New Homes Registry is up and running and should be visited by anyone about to purchase a new home.

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The Myth of the Foreclosure

The foreclosure sale has always had a sense of the mythical about it. The biggest myth that has sprung up at the moment is that the market is full of them as US network news has led many to believe. Fortunately, this is not the case in Canada and again you can thank our excellent banking system. So instead of 1 in 5 homes being in foreclosure think closer to 1 in 100. Read More...
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First Home Buyers First to Take Advantage of Lower Home Prices

March has seen a welcome increase in sales Canada wide that, according to a recent report released by RE/MAX, can be attributed to first-time home buyers acting as the driving force in the market.
It would seem that the improved affordability that the softening market has brought combined with the record low interest rates have created bargains just too good to pass up, especially those wishing to enter the market for the first time.
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Are We There Yet?

Last month's 33 home sales in Campbell River were over two and a half times higher than January's, and were almost on par with February 2009's 36 sales providing a very welcome thaw to all involved in the real estate market. This increase in activity can be seen as a direct result of the recent reductions in home prices brought on by the current economic climate that have created a plethora of bargains. Read More...
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The Home Renovation Tax Credit

One of the most promising rebates for average Canadians in the federal government's budget of 2009 is the Home Renovation Tax Credit (HRTC). Of course, being a budget designed to stimulate the economy, to receive the benefits of the rebate you will need to spend some money up front.

Fortunately, home renovations are a great avenue to spend money on as they help add value to your home, especially if you are thinking of selling in the future.
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Buy Low, Sell High

Riding out financial markets is like traveling an unknown road in the pitch black with dim headlights, you can only know you've hit the bottom of a hill once you start going up the other side. While everyone would like to buy at the bottom of the market and sell at the top, the odds of achieving this are very low and generally happen by luck rather than skill. Fortunately, to be successful in Real Estate you do not have to buy at the bottom and sell at the top, you need only to buy a home lower than what you sell it for. However, this is not the whole story. Read More...
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A Year for the History Books

Happy New Year to everyone as we welcome in the last year of the first decade of the new millenium. Judging from the new economic and political climate that the latter half of 2008 rudely ushered in, this coming year can only be historic, hence its new title. As to what it will hold for the real estate market remains to be seen but a recap of the last year may help indicate what should happen.
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Disclose, Disclose, Disclose

I visited with clients of mine in their recently purchased home and was shocked to find out, as I am sure they were too, that the previous owners had a fire in the roof which required action by the Campbell River Fire Department. Thankfully their quick response resulted in no structural damage being done to the home save for an insurance claim for a new roof. Read More...
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Time is of the Essence

On the top of page 3 of the standard contract of purchase and sale there is a clause that states the following:
Time will be of the essence hereof, and unless the balance of the cash payment is paid and such formal agreement to pay the balance as may be necessary is entered into on or before the Completion Date, the Seller may, at the Seller’s option, terminate this Contract, and, in such event, the amount paid by the Buyer will be absolutely forfeited to the Seller in accordance with the Real Estate Services Act, on account of damages, without prejudice to the Seller’s other remedies. Read More...
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The Cost of Uncertainty

Nobody likes uncertainty, especially those wanting to buy a new home. One of the biggest uncertainties of buying a home is when you find a material latent defect or in other words a defect that is not readily seen that may affect the value of the home or worse make it unfit for habitation or dangerous to the occupants.

If you are currently selling your home or thinking of it and you have a niggling suspicion that you may have a material latent defect, such as a roof nearing the end of its life, or an insect infestation, get it checked by a professional and confirm whether you do or not.
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Separating Fear from Fact

“Our distrust is very expensive” Ralph Waldo Emmerson

These five words describe the current financial crisis the US is facing better than any Wall Street Journalist could ever dream. The current climate of uncertainty in the US is unbearable for many investors causing many of them to react out of fear creating record dips and gains on a harrowing roller coaster of a ride, one that many, I am sure, would be glad to be off of.

For us north of the border it is hard not get caught up in the fear that has gripped the US and even harder to know what to believe will happen with regards to our own economy and real estate market. In times of uncertainty, it is always a good idea to give up on rumours and trust the facts before making a decision that will affect your future. Here are some about Canada and BC in particular to dwell on.
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September Brings a Welcome New Trend September Brings a Welcome New Trend September Brings a Welcome New Trend September Brings a Welcome Trend

September, has always been my favourite month in Canada as it is a month of seasonal transition and in this year’s case economic. While those heavily invested in the stock market might not be too appreciative of this Monday’s transition, those in our local Real Estate can be somewhat comforted by the months performance in general.

Its true that May, June, July and August saw a record number of homes listed helping to create a buyers market, one in which the buyers appear to have taken a wait and see approach as the less than stellar number of home sales indicate. If you were trying to sell your home in August, you were amongst a group of 394 others competing for just 43 sales a ratio that was very similar to the July stats.
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The Economic Impact of Selling Your Home

Have you ever wondered what the economic impact of selling your home is? The British Columbia Real Estate Association BCREA has just released a report which investigates this exact question for home sales in 2007, and the findings may surprise you.

The first stat which surprised me was the fact that in BC over 102,000 homes were sold through the MLS® last year. If this doesn’t convince you that sticking a sign in the ground and hoping for a buyer to walk by may not be the best way to sell your house, it is hard to imagine what would.
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Listing Your Home to Sell

With the summer coming to a close and most of BC - Campbell River included - in a buyer’s market, many sellers may be wondering whether they are actually going to be making their planned move in the fall. With over 400 single family homes for sale and around 50 sales per month, only 12.5% of those with a home for sale will be ordering the movers by the end of this month. Read More...
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Stage Your Home for the Lead Role

In the world of real estate, Shakespeare’s adage about it being a stage couldn’t be truer. When it comes to the actual staging of a home to sell however, being ‘merely players’ is often not enough to get a lead role with a buyer.
When staging your home for buyers, it is important to cater to their human senses as you try to set your home apart from the other bit players.
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New FINTRAC Private Information Regulations

As of June 23 all canadian REALTORS® are required by the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC) to obtain, record and retain the personal information of their clients. This will include the date of birth and occupation and requires asking for government issued ID such as a drivers license, passport or residency card. Obviously, this is going to cause some concern and raise questions for a great number of people, including those not involved in the criminal activities that these measures are meant to stifle. It is hoped that the following Q & A session will help alleviate any of these concerns. Read More...
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Buyers Rejoice

Homebuyers in Campbell River, and BC for that matter, can all breath a collective sigh of relief as rising inventories are putting less upward pressure on house prices and creating more choice for buyers. In May Campbell River saw an increase of 14% in the number of homes listed (116) and a 25% decrease in the number of homes sold (44). This gives a sell to list ratio of 38% which means only approximately 4 out of every 10 homes listed were sold last month. Read More...
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Sellers Take Heed

Are you thinking of selling your home? You should know that you are not alone. In the one week period Wed May 21 to Tues May 27 there were 34 new listings of homes alone, add another 23 to that number if you want to include condos and lots. Compare that with the 9 home sales that occurred during that period (16 sales in total) and you get a sale to list ratio of just above 25%. Read More...
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Riparian Area Regulations

Living by the water, whether it be the ocean, the lake or the river, is a dream for most people - one for which many will pay top dollar. In recent years as our fish stocks have declined to frightening levels, the inherent value of the watercourses themselves have increased to the point where many are now considered priceless.
To protect these important assets, the Ministry of Environment has created the Riparian Area Regulations (RAR) which requires local governments (ours included) to protect Riparian areas - any land within 30m or ~100’ of a natural watercourse. These regulations help ensure that the owners of these lands do not degrade valuable fish habitat through improper development.
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Changes to the Homeowner's Protection Act

BC residents benefit from the highest level of new home protection in Canada with the 2-5-10 New Home Warranty’s minimum coverage of 2 years on labour and materials, 5 years on the building envelope, and 10 years on structure. For this you can thank the Provincial Government’s Homeowners Protection Act, which applies to all new homes built after July 1 1999. This act has now been modified to further protect buyers and help restrict the abuse of those who use the owner builder’s exemption from providing a new home warranty to buyers in order to compete unfairly with registered builders. A welcome change for most builders. Read More...
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Is Your Home Undervalued, the IMF Thinks it is

Is your home undervalued? The International Monetary Fund thinks it is. The IMF recently released a report that evaluated housing prices and mortgage debt in 17 countries and its findings should interest many Canadians. Out of the 17 countries only Canada and Austria had homes that were considered undervalued based on current trends in personal income, demographics and interest rates. Read More...
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Renovate Smarter

Almost everyone has thought about changing something in their home, and for the most part renovations can help to improve the resale value of your home. Before you plug in the saws-all however, talk to a Realtor® and have him/her explain what renovations influence the resale value of your home the most. Read More...
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Strata Documents

When purchasing a strata unit, one of the most important clauses a buyer can put in the contract of purchase and sale is the “subject to receiving and approving the strata documentation” clause. This clause requires the buyer to approve the Form ‘B’ information certificate including the strata corporations rules, and current budget. It should also require approval for the current bylaws and financial statements of the strata corporation, the registered strata plan and the minutes of all strata meetings for the last two years (at minimum) if available. Read More...
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Dont’ Believe the Hype, the Sky is not Falling

One of the most prevalent questions I am asked as a Realtor® is when the crash is going to come. It seems that record gains in housing prices of the past few years - Campbell River saw a 13% increase in the average home price for 2007 - has spawned a Chicken Little syndrome which is affecting many buyers.

My only advice is don’t believe the hype or you may be waiting yourself out of the market, which is the same advice that I, along with most other Realtors®, gave last year when homes were 13% cheaper. Next year I will most probably be giving the same advice, as buyers look at homes forecast to be 6-8% more expensive.
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The Budget vs the Market

The B.C. Budget was announced yesterday with some interesting environmental initiatives and the much publicised “revenue neutral” carbon tax. Of particular interest to those in the Real Estate environment was how the government plans to help improve housing affordability.

The good news is that the Property Transfer Tax, or PTT, threshold has been raised for the third year in a row, from $375,00 to $425,000. This equates to a maximum savings of $6,500 (1% on the 1st $200,000 + 2% on the remainder). The bad news is it is also a sign that the market is going to continue to be hard to buy into, you would need to be a first home buyer purchasing a $425,000 home to receive the maximum rebate.
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Securing More Than the Deal

Last week 24 year old RE/MAX agent Lindsay Buziak was stabbed to death while showing a vacant home to a unknown buyer. In light of this tragedy many Realtors® are now reviewing their security precautions.

If you are thinking of working with a Realtor® that you are not formally acquainted with here are some general guidelines that can help smooth the process.
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Resolve Your Mortgage Woes

After seeing the mortgage fiasco that the US is having, many of you have made a New Years resolution to reduce your mortgage debt.

While Canada is still somewhat immune to the US’s credit problems, it is generally a good idea to reduce your mortgage on your primary residence quickly. Here are some tips on how to do that.
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The Year in Review

For many, the New Year calls for reflection and for those interested in real estate the same holds true, especially this year which has surprisingly seen record breaking statistics in Campbell River, and BC in general. Read More...
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'Tis the Season

December fell upon us with a little more gusto then expected this year - kind of like the real estate market. Historically this is the time of year when the market slows down as people concentrate on the holidays instead of houses. This is an understandable phenomenon, but although the market slows down, it does not stop altogether.
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Woo Wee 5% GST!

After Canada posted record budget surpluses across all forms of government this year, the federal government has proposed to lower the GST by a full 1% starting January 1, 2008. I guess a tax break before Christmas was too big an ask - it is the Government after all, not Santa Claus.
GST must be paid on the purchase price of any new real property and 6% on every $100,000 is a fair chunk of change for anyone. What is more irksome is that the government already collects GST on the majority of the property’s improvements through the purchase of the building materials etc. Fortunately, there is a GST rebate that can result in up to 36% of the GST being refunded to the purchaser.
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Multiple Offers

Real Estate inventory in Campbell River is at a seasonal low at the moment, especially for homes under $300,000 and there seems to be a corresponding rise in the amount of multiple offer situations.
If you are a seller this is great news, having more than one person offering to buy your home creates a bidding war and the sale price should rise accordingly.
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Surveyor's Site Certificates

With the real estate market booming many mortgage companies are now enforcing more stringent security measures to help counter possible fraud. One of the most glaring changes is the increase in demand for a current certified surveyor’s site certificate. Read More...
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Where Have all the Houses Gone?

The summer is over and although it was a terrible season weather wise, Campbell River still managed to shine in Real Estate. What was particularly interesting in this summer’s statistics was the list to sell ratio. This describes the amount of houses sold compared to the amount listed.
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Find Your Mortgage Before You Find Your Home

To successfully purchase real estate, you must have sufficient financing. This is why, as a buyer, during your first conversation with a Realtor® you are going to be asked how you are going to finance the transaction. Read More...
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The Winter Buying Season Is Upon Us

It is October and the rains have come, and although it makes showing and viewing homes a little more inconvenient, the winter is a great time to buy a home. This is when you can see how a potential home holds out against our mighty South Easters. Read More...
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Test Driving Your New Home

With most purchases, you get to try before you buy. With a house, most buyers only get to view a home briefly, not spend a week in it to see if it works for them. How then do you test drive a home?
Hire a professional property inspector. By hiring a professional you reduce your risk by shifting certain responsibilities to those better suited or certified and insured to do so.
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Shine Your Home

Buyers rarely find their perfect home. They generally settle on the house with the greatest appeal for the best price. As a seller there are several improvements you can do to make your home outshine the others on the market.
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Clearing up the Property Transfer Tax

Property Transfer Tax (PTT) is like bad breath. It creeps up the morning after the romance. For too many buyers, the first they learn of PTT is at the conveyancers after they have fallen in love with a house, the subject clauses have been removed and the deal is all but final. Boom! It hits like halitosis - a tax of 1% of the first $200,000 and 2% of the remainder of the sale price must go from your pocket to the provincial government. Read More...
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If the Price is Right

There are many ways to come up with a price to list your home, from the professional Comparative Market Analysis (CMA), to the exciting and all-too-common tea leaf reading.
Most homeowners, who are thinking of selling, have been watching the market through the Homefinder, or on the TV Wheel and have formed a preconceived idea of what their home is worth based on what others are trying to sell at. Read More...
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The Duplex Dilemma

Many duplexes are strata corporations under the Strata Property Act.
However, co-owners do not always manage their duplex as a strata corporation. Lack of strata management occurs often enough that there is a standard clause developed for use in a contract of purchase and sale that states that a property has not been run as a strata corporation, has no strata council, budget, or contingency fund.
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The Condo Catch 22

Do rentals in a strata complex drive down the average price of strata units?
In Campbell River, there are more rental units in the less expensive stratas. It can also be said that most buildings with units over $200,000 tend to not allow, or severely limit, rental units.
Are rentals really the cause of the lower prices?
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Who's Buying What and Why

The real estate market is a fascinating field to be involved with at the moment.
It can also be bewildering.
I have started this column to explore the many aspects of real estate, not just for my interest, but hopefully for your benefit. The first question that’s been gnawing at me is “who’s buying these houses anyways?”
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