Contact Angel Now for this property!

1. BC assessment values real estate properties in Vancouver area to be increased about 10% averagely. The increasing value by the government will definitely support increasing house price.
2. Although major banks increased prime rate a little bit since last year, mortgage rate still keeps at a lower level.
3. Appreciation of the Renminbi vs Canadian Dollar from 1:6.8 to 1:6.2 since last year, will encourage more Chinese buyers to come to the Canadian real estate market because of higher purchasing power.
4. Chinese governments’ real estate investment rules force more Chinese investors to look at real estate investment opportunities overseas.

By Vancouver top real estate agent – Angel Wang

Last Chinese New year we saw such a surge of business during the first two weeks of February that our fellow realtors and assistants worked day and night shifts to find homes for Chinese buyers visiting during the Lunar New Year. many of you heard Multi offers on properties in Richmond, vancouver and west vancouver. Will this year be the same? Nobody knows. However Angel and I have been receiving phone calls and emails enquiring about properties and schools in Vancouver.

Why do Chinese buy/invest properties in Vancouver? There are two major reasons:

1.   Good schools, a marine climate and the large, established Asian community make Vancouver attractive. end of the year. take time off best time for new immigrants landing. Husband takes time off, kids finish school to have a new start

2.   While education for children often is the primary goal, some immigrants just want to move money out of China because they don’t feel it’s safe, as China tries to damp property speculation at home., Buyers from mainland China are leading a wave of Asian investment in Vancouver real estate.

The overnight interest rate set by the Bank of Canada, now at one per cent, banks clamouring for a piece of a tighter market and cheaper bonds are reasons why mortgages are so low right now, RBC Global Asset Management’s Eric Lascelles told CTV News Channel Friday. But buyers should be thinking ahead when rates eventually return to “normal,” he said.

“I think it is fairly clear that home prices are overdone in certain urban areas. The map I’ve done says if we ever return to normal interest rates, home prices are 15 per cent too high,” Lascelles said. That doesn’t mean home values need to come down by that amount, he added, suggesting instead prices could stagnate for a few years and be matched by higher household incomes to ease any bubble “reasonably benignly.”

The caveat for homeowners is to buy what they can afford because when rates rise again and the mortgage needs to be renewed, refinancing costs can be overwhelming, Lascelles said. BMO’s offer comes at a time when the big banks are also pressuring Ottawa to lower the maximum amortization period (the number of years a person has to pay off a mortgage), now set at 30.

It had been 40 years but persistent worries over the accumulated debt of Canadians convinced the federal government to lower it over the past two years.

The latest mortgage cut by BMO will likely trigger increased competition among the major banks as they battle for a share of the shrinking housing market. The five-year fixed rate is used by the banks as a benchmark for borrowing costs and is typically the rate applied to first-time homebuyers. The BMO rate cut is good news for people shopping for a home and bad news for those worried about a potential housing bubble, says a Queen’s University professor who specializes in real estate.

“This move by BMO will no doubt be quickly followed by the other major banks,” said John Andrew in a media release Friday, adding rate cuts have actually been lagging behind falling bond yields that are typically the barometer of mortgage costs. “What’s interesting are the conditions that BMO has attached to this mortgage rate, which are consistent with the lending industry’s move to even more responsible lending practices,” he said.

It did not take long for other major lenders to follow suit — by Friday afternoon both TD Bank and RBC Royal Bank were offering four-year special fixed rate mortgages at 2.99 per cent. Both offers expire in February.

Other banks are expected to make similar offers as they struggle with reduced borrowing by consumers.

This is usually a win-win transaction for both the homebuyer and the developer. Buyers are able to select the homes they want to buy and developers know, with some certainty, their ability to successfully market and finance the projects they are offering to the market.

Rewards Usually Outweigh Risks

Buying a home is likely the largest personal financial transaction a consumer will make, and there are many complex decisions involved. Building a new home is also a complex process that stretches over a relatively long period of time and has inherent risks for the developer. These risks are typically associated with a free market for materials and skilled trades, and changing interest rates.

Even though there are certain risks associated with presales, there have been very few instances where the purchase agreement was not honoured by the developer. When a developer is unable to complete the transaction, the purchase agreement will usually specify how the intended transaction is unwound. A deposit made by a buyer must be held in trust by a lawyer, notary or REALTOR® and the full deposit is returned to the buyer if the home builder/developer is unable to meet their commitment to deliver the home. The only exception to this is described in NOTE 5 on page three of this information brochure.

Do Your Homework

Before deciding to buy a new home in a presale transaction, a buyer should do their homework and feel totally comfortable with the builder/developer and with the terms of the purchase agreement. Start by researching the business history and reputation of the home builder. Ask for references from past homebuyers who have bought from the developer. Seek the advice of your REALTOR®, lawyer, mortgage broker, banker or other professionals and determine whether they know the history of the developer.

Read the purchase agreement and the disclosure statement in their entirety. Hire your own lawyer who has experience in residential real estate transactions. Ask them to review the purchase agreement. Make sure you ask them about wording in the purchase agreement that you do not understand. Clarify all of the relevant dates, including dates on which the developer has opportunities to terminate the purchase agreement.

Finally, there is a seven-day rescission period during which a buyer may rescind their purchase offer.

Cross Reference List for Presales of Multifamily Residential Development Properties

The following is a list of important information for buyers of multifamily units under development. Buyers unfamiliar with such projects may require extensive consultation with knowledgeable REALTORS®, accountants, lawyers or notaries familiar with presale investments. This list is intended as a starting point for buyers to determine whether enquiries, advice or clarification is needed.

Use the following table to locate and understand important information in the disclosure statement and the purchase agreement. These two documents are central to a presale transaction and outline the specific terms being agreed to. The far right-hand column in the table provides a cross reference to the notes section on pages 3 and 4 of this presale cross reference document. The notes explain the key information items in more detail. Once completed, keep the table for future reference to quickly find important information about your transaction.

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time.
Canada Revenue Agency www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box. 1.800.959.8287

#2 GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.
Canada Revenue Agency www.cra-arc.gc.ca. Enter ‘RC4028’ in the search box. 1.800.959.8287

#3 BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250. www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate 1.800.959.8287

#4 BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit. www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate 1.800.959.8287

#5 BC Property Transfer Tax (PTT) First Time Home Buyers’ Program

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/rpt 250.387.0604

#6 First-Time Home Buyers’ Tax Credit (HBTC)

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the maximum credit is $750. Canada Revenue Agency www.cra.gc.ca/hbtc 1.800.959.8281

#7 BC Home Owner Grant

Reduces school property taxes by up to $570 on properties with an assessed value up to $1,150,000. For 2011, the basic grant is reduced by $5 for each $1,000 of value over $1,150,000, and eliminated on homes assessed at $1,264,000. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,150,000 and eliminated on homes assessed at $1,319,000+.
BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/ hog or contact your municipal tax office.

#8 BC Property Tax Deferment Programs

Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes.
Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes.
Property Tax Deferment Program for Families with Children. Qualifying low income home owners who financially support children under age 18 may be eligible to defer property taxes.
BC Ministry of Small Business and Revenue www.sbr.gov.bc.ca and enter ‘Property tax deferment’ in the search box or contact your municipal tax office.

#9 Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants.

This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites.
www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm 1.800.668.2642 | 604.873.7408

#10 CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations.
www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno 604.731.5733

#11 Energy Saving Mortgages

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage, may qualify for a rebate of $300 to their RBC account. www.rbcroyalbank.com/products/mortgages/energy-saver-mortgage.html 1.800.769.2511

#12 Low Interest Renovation Loans

Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 renovation on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution. www.vancity.com/Loans/BrightIdeas and www.rbcroyalbank.com and in the search box enter ‘energy saver loan’.

#13 LiveSmart BC: Efficiency Incentive Program

Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with Terasen Gas, BC Hydro, and FortisBC. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider.
www.livesmartbc.ca/rebates 1.866.430.8765

#14 BC Residential Energy Credit

Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST. www.sbr.gov.bc.ca/documents_library/notices/HST_Notice_010.pdf or go to Google and in the search box type in ‘Residential Energy Credit rebate program.’ It is the first item. 1.877.388.4440

#15 BC Hydro Appliance Rebates

Mail-in rebates of $25 – $50 for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers until March 31, 2011, or when funding for the program is exhausted. www.bchydro.com/rebates_savings/appliance_rebates.html 1.800.224.9376

#16 BC Hydro Fridge Buy-Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.
www.bchydro.com/rebates_savings/fridge_buy_back.html 604.881.4357

#17 BC Hydro Windows Rebate Program

Pay no HST when you buy ENERGY STAR high-performance windows and doors. This offer is available until March 31, 2011. www.bchydro.com/rebates_savings/windows_offers/current_offers.html 604.759.2759 for a free in-home estimate.

#18 BC Hydro Mail-in Rebates/Savings Coupons

To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone. Check for new offers and for
deadlines. www.bchydro.com/rebates_savings/coupons.html 1.800.224.9376

#19 Terasen Gas Rebate Program

A range of rebates for home owners include a $50 rebate for upgrading a water heater, $150 rebate on an Ener-Choice fireplace (both good until March 31, 2011) and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system (good until February 29, 2012).
www.terasengas.com and in the search box enter ‘rebates’. 1.888.224.2710

#20 Terasen Gas Efficient Boiler Program

For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits. www.terasengas.com and in the search box enter ‘gas efficient boiler program’. 1.888.477.0777

#21 City of Vancouver Solar Homes Pilot

This rebate of $3,000 (about 50% of the cost) is for a Vancouver home owner upgrading to a solar hot water system from a gas system. Offered by the City of Vancouver, SolarBC, Terasen Gas and Offsetters on a first come, first served basis until March 2011 or until the City reaches its target of 30 solar homes.
www.vancouver.ca/sustainability/SolarHomes.html 604.873.7748

#22 City of Vancouver Rain Barrel Subsidy Program

The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency. www.vancouver.ca and in the search box enter ‘rain barrel program.’ 604.736.2250. Other municipalities have similar offers.

#23 Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies.
www.vancity.com/MyCommunity/NotForProfit/Grants/ActingOnClimateChangeGreenBuildingGrant 604.877.7000

#24 Local Government Water Conservation Incentives

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.

#25 Local Government Water Meter Programs

Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.

Home renovations have also seen a decline since the implementation of the HST, as consumers continue to hold back on major purchases until the PST is reinstated.In addition to the stalls in building projects, the industry is anticipating that more than 8,000 potential construction jobs will be put in jeopardy along with roughly 250,000 related jobs annually–for which the industry is seeking compensation from the government.In response to the stall surrounding the PST the Urban Development Institute is proposing to the provincial government that there be transition rules created to address the move from the HST back to the PST/GST system. The UDI is also suggesting that rebate cheques be offered to consumers who purchase homes above the $525,000 mark and that the threshold be raised to encourage more new home purchases up until the HST is removed.

UDI’s president Don Forsgren is hoping that by looking into transition strategies and minimizing the continued negative effects of the HST on the housing industry that consumers will continue to purchase new homes in the interim rather than holding off until 2013. Representing more than 550 BC developers, the UDI will continue to lobby the government for assistance in this tumultuous season.

With the BC HST Price Difference, What Major Impact Does That Have on First Time Homebuyers?

Although an increase in purchase price of 2 to 5% may not sound like much, we are still talking about thousands of dollars. The new home BC HST tax increase is very substantial even for a small condo that costs $300,000. Do you know of many Vancouver first time homebuyers who can pay an extra $6,140 in BC HST on their new home upon closing? Remember that the major banks are unlikely to finance a 12% HST tax burden, which basically means that the first time home buyer will need to cover the BC HST price difference. Coming up with an extra $6,140 is tough enough, but when it comes to this new home BC HST tax increase for first time homebuyers, it is money out of their wallet that does not even increase the value of their home. The implication of the BC HST price difference and extra tax burden is that many first time homebuyer in Vancouver and British Columbia will stay away from the new construction housing market. The costs and the new home BC HST tax increase for first time homebuyers is too high, forcing many purchasers to either wait and rent for a while or to purchase resale Vancouver property instead. The secondary effect of the new BC HST price difference on new homes is that with fewer first time homebuyers driving the new housing market, the construction industry is likely to suffer. BC new housing sales and construction will drop, forcing many people in the industry to move out of the province or to seek alternate employment.

Not a single new home sold! September 2011
Not one single new home sold in September on the west side of Vancouver. The significance of this cannot be understated. For the past couple of years Vancouver’s west side housing market (along with that of the Vancouver suburb of Richmond) have been red hot. Back in March of 2011, Real Estate Board of Greater Vancouver president Jake Moldowan said in an interview that “it’s a huge sellers’ market, the strongest in those areas I’ve ever seen. And there’s no question that it’s the offshore market that’s focused on these two areas.”According to the March 2011 report by the REBGV, demand for detached homes remained strong across the region, with particularly high sales volumes and price increases in Richmond and Vancouver’s west side. In fact Moldowan said that it’s single detached homes in Richmond and Vancouver’s west side that are the most sought after properties in the entire Lower Mainland marketplace. September 2011 marks the first ‘no new home sale’ month on the west side of Vancouver since records started been complied in 1994. Even the minicrash of 2008 saw four sales of new homes on the west side.”This information has been obtained from sources deemed to be reliable and while thought to be correct is not necessarily guaranteed.”

A big Canadian bank predicts the slumping economy will put interest rates on hold, or moving lower, until at least until 2013.

In an interest rate outlook released Tuesday, the Bank of Montreal said it does not expect interest rates to rise again until the early part of 2013.

That’s about six months later than earlier forecasts that rates would stay flat until the fall of 2012 as the Bank of Canada tries to boost the sagging economy.In the bank’s report, BMO Capital Markets senior economist Michael Gregory said the weaker global economy has squeezed commodities, the Canadian dollar and undermined growth in Canada.That has kept inflation in check and made it more likely the Bank of Canada will hold the line on rates.In fact, Gregory said, there is a good chance the central bank will cut rates over the next six months — by close to half a point.The BMO report also projected the loonie will settle at around 93 cents U.S. next year.”During the second half of 2012, with global economic and commodity price prospects improving, the currency’s fortunes should shift with a flight plan back to parity by January 2013.

Furthermore, another major Canadian Bank said, “A worsening outlook will keep the Bank of Canada from raising interest rates until at least March 2013″, according to the Toronto-Dominion Bank forecast on Tuesday.TD, Canada’s second biggest lender, became the first of the country’s big banks to push out its forecast for a rate increase into 2013, citing intensifying downside risks in the United States and Europe.