PICTURE; Our Neighbours in Beachcomber, Nanoose Bay - Vancouver Island
There are three types of people in the world; those who make things happen, those who wait for things to happen, and those who wonder what happened.
RRi
New mortgage rules won’t affect most homeowners or buyers
Finance Minister Jim Flaherty has announced three new mortgage rules saying the government is taking "proactive, prudent and cautious steps" to prevent a housing bubble. Well, there’s probably no reason for alarm: these new mortgage rules won’t affect most homeowners or buyers.
The gist of the new rules is that it won’t be as easy to teeter at the top of your lending limit; the government thinks homeowners should have a bit of equity hedge and a realistic expectation of what they can pay each month. Most Canadian homebuyers are already managing their mortgages according to these standards anyway, although some new and very leveraged buyers could be affected. Real estate investors and speculators may notice these rules the most, which take affect April 19, 2010. Here’s the quick rundown on what’s new:
Think five-year, fixed-rate. Whatever kind of mortgage you eventually decide on, the new rules say that you must qualify for a standard five-year, fixed-rate mortgage. What you choose, of course, is up to you and your mortgage planner; you may opt for a shorter term and /or a lower rate. While the government has said this test will help homebuyers prepare for higher rates, most lenders were already qualifying homeowners on the three-year fixed rate. As a result this shouldn’t affect too many homebuyers. Buyers who don’t qualify for the five-year, fixed rate will need to downsize their expectations on how much home they can afford. Based on a 5% downpayment, 35-year amortization, and a home price of $300,000, a buyer would need about $7,400 more in annual income to qualify under the posted five-year fixed rate versus the three-year rate.
Protect at least 10% of your equity. Refinancing your home to pay down high-interest debt is still a smart strategy to save interest in the long term. There are common sense limits to using your home as a piggy bank, of course, and now the new rules dictate that you must protect at least 10% of your equity, up from 5%. Where this could cause a problem is with those who are overextended on high-interest debt. They may no longer be able to payout all of these debts and get on a sounder financial footing with a lower payment and less interest costs. Depending on their reasons for having a high debt load these clients may end up in a bad credit situation or bankrupt. While the mortgage planners at Mortgage Architects have been offering credit and debt counselling to their clients for years, more people may now be in need of this service.
You need 20% down on an investment property. This is a change that primarily affects investors. If you’re not personally living in a property that you own – such as a second home or a rental property – you will now need a minimum downpayment of 20%, up from 5%. Investors used the 5% rule to leverage their mortgage for tax purposes: so they could write off more interest against their rental income. This could slow speculative real estate purchases, for instance buying new properties with the intention of flipping them later, which is common in the condominium market. While we are looking at rising rates in the future, the housing market remains healthy. These upcoming changes are unlikely to affect the majority of Canadians, although there could be a flurry of activity before April 19 – as homebuyers take advantage of the last few weeks of the existing rules by moving up purchases and refinances. If you think the new rules could affect you, call an experienced mortgage planner right away.
At The Beach
• 347 sq. ft., 1 bath, 1 bdrm other "1/4 Share Resort Condo" - 
MLS® $41,000 - Great Investment!
The Beach Club, Downtown - The Beach Club - your chance to own a piece of Paradise. This ground floor Tower unit offers the luxury of walking out onto an expansive new boardwalk and miles of sandy beach with unrivaled panoramic views. Quarter share ownership - open plan hotel style suite with kitchen facilities is yours to enjoy twelve weeks a year. When you are away you have the option of management renting it on your behalf. This family friendly residence offers something for everyone - the warm shallow waters of Parksville Bay, laps in the pool or a workout at the exercise facilities - fine dining, pampering at the spa or a round of golf at one of half a dozen top ranked courses can all be arranged by your concierge. Visiting in the winter - don't miss the slopes of Mt. Washington - only an hour away and famous for its snow cover. The Beach Club ownership also offers exchange privileges with luxury resorts worldwide. This is the Pacific West Coast at its best.
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A Piece of Paradise
• 1,273 sq. ft., 3 bath, 2 bdrm other "1/4 Share Luxury Resort Condo" - MLS® $215,000
The Beach Club, Downtown - The Beach Club - your chance to own a piece of paradise. This ground floor get-a-way not only offers the luxury of magnificent ocean views, you also have miles of sandy beach at your doorstep. This beautifully appointed (1/4 share ownership) suite is yours to enjoy twelve weeks a year. When you are away you have the option of management renting it on your behalf. This family friendly residence offers something for everyone - the warm shallow waters of Parksville Bay, laps in the pool or a workout at the exercise facilities - fine dining, pampering at the spa or a roulnd of golf at one of half a dozen top ranked courses can all be arranged by your concierge. Visiting in the winter? - Don't miss the slopes of Mt. Washington - only an hour away and famous for its snow cover. The Beach Club ownership also offers exchange privileges with luxury resorts worldwide. This is the Pacific West Coast at its best.
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Ocean View & Ready to Build
• MLS® $174,800 - HOT PRICE!
Nanoose Bay, Central Island - Sweeping ocean view of Georgia Strait and Islands. Close to Schooner Cove Marina and renowned Fairwinds Golf Course. Ready to build with services at lot line and state-of-the- art Norweco septic system. Ten minutes to shopping, fifteen minutes to downtown Parksville, twenty minutes to Woodgrove Centre (Nanaimo) & thirty minutes to Departure Bay Ferry to Mainland. Great Value at this price!
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FOR IMMEDIATE RELEASE
March 1, 2010
VIREB reports active market continues
NANAIMO, BC – Single family unit sales last month were up 47% from February 2009 and up 28% from the previous month on a Board wide basis. The average sale price meanwhile is 11% above February 2009 according to Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board (VIREB) for February 2010. There were 289 single family unit sales across the VIREB region in February 2010.
VIREB President Cliff Moberg said, “We continue to remain busy, and are slowly starting to see our inventory levels recede. I am very happy with the direction the market is heading.” Jim Stewart, VIREB’s President Elect said that, “The market is much stronger than a year ago, homes priced well are selling in a reasonable length of time. I am cautiously optimistic moving forward.”
The average sale price across the VIREB region for February 2010 was $$342,047 up 11% from the $307,919 posted in February 2009, but very close to the January 2010 average price of $339,327.
For the period comparing data from the end of February 2009 to the end of February 2010, average sale prices in VIREB's six zones saw: Campbell River increase 7% (to $282,235), the Comox Valley decreased 4% (to $341,003), the Cowichan Valley was up 14% (to $359,169), Nanaimo also increased 14% (to $370,747), Parksville/Qualicum was up 12% (to $388,339), and Port Alberni slipped 2% (to $194,040).
There were 11% more single family residential properties put on the market in February 2010 compared to 12 months earlier, but overall there are 14% fewer homes for sale now than a year ago.
Consumers should check with their local REALTORS® for specific neighbourhood price information. VIREB represents approximately 1,070 licensed REALTOR® members in more than 84 member offices on Vancouver Island (north of Victoria).
VIREB cautions that average price information can be useful in establishing trends over time, but does not indicate the actual prices in centers comprised of widely divergent neighbourhoods or account for price differential between geographic areas.
2010 Winter Olympics - Best Ever!!!
NATURAL ACHIEVERS OVERCOME ADVERSITY
Focus on possibilities, rather than challenges.
Focus on solutions, rather than problems.
Focus on tomorrow, rather than yesterday.
RRi
RE/MAX REPORTS - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
“Affordability is the catalyst for the vast majority of purchasers in today’s housing market,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.”
Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo
(-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.
The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.
“There have never been so many motivating factors in play at once,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’re in for a heated Spring market that will, in all probability, spill over into the summer months as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.”
While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.
“The level of frustration is growing, as pent-up demand builds,” says Polzler. “For every successful offer, there are those that will walk away empty-handed. They’re thrust back into the buyer pool and the process starts all over again. Some buyers are upping the ante, while others are considering alternate housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.”
Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a reality—particularly in the larger centres. This simply means they may go smaller or further in their pursuits.
“It’s been a 180 degree turnaround from this time last year,” says Ash. “It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders. The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the remainder. Opportunity exists in some areas, but the question is for how much longer?”
RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.
Canadian Olympics 2010, Vancouver - The Olympic Cauldron
Human beings are truly amazing and can do the most incredible things, as long as we have enough reasons WHY.
RRi
Although wood-burning fireplaces are no longer the main source of heat for modern homes, many home buyers still desire them. They associate fireplaces with cosy homes. Knowing the common problems with wood-burning fireplaces and how they can be fixed will help real estate professionals counsel clients on their pros and cons.
... according to a study by Environment Canada reported in the Toronto Star, "Using a wood-fire stove for only nine hours...produces as much fine-particle pollution as does a car in a year."
...there are ways that residents can eliminate the amount of smoke from a wood-burning fireplace, making them more environmentally friendly. First, they need to understand how the fireplace works. Smoke should be drawn naturally up the chimney at all times. If the fireplace smokes when it's operating, it's not designed properly, or there is something in the house that is causing the fireplace to smoke.
There are some configurations that are more likely to smoke than others. For example, chimney height has a big influence on how well the fireplace draws. A taller chimney will draw better. Also, the flue size should be at least 1/12 of the fireplace opening size in order to provide an optimal draw and eliminate smoke.
It's common for the fireplace to smoke when the fire is first lit and when the fire has burnt down. This is called the cold hearth syndrome. When the chimney flue is hot, it draws well, and when it's cold, air flows down the chimney rather than up. Somethimes this can cause soot and cold air to pour down the chimney when the fireplace is not in use, even when the damper is closed. This is indicative of a less than ideal fireplace and chimney design.
Homeowners should also check for soot under the mantel. If there is soot on the underside of the mantel, it could indicate a fireplace with chronic back-drafting.
Solutions for smoking fireplaces include:
Add glass doors: They reduce the effective fireplace opening size and volume of air going up the chimney. These both improve the fireplace draw.
Decrease the fireplace opening size: Anyghing that reduces the opening size of the fireplace will result in better draw.
Extend the chimney: A taller chimney draws better. This is a good solution, but it is more expensive than the other suggestions.
Convert to gas: If all else fails, consider installing a gas direct-vent fireplace. These fireplaces vent out the wall of the house. No chimney is needed.
Excerpt from article written by Dan Steward, President Pillar to Post - Home Inspection
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486 sq. ft., 1 bath, 2 bdrm single story - MLS® $399,000
North Qualicum, Qualicum Beach - On the sunny side of Horne Lake. Large, gently sloping property. Cottage ambience - charming log cabin with two bedrooms plus loft. Large lake side deck for entertaining & relaxing on lazy summer days. Sandy beach with handy ramp leading onto like-new dock for all your water activities. The strata has a common asset of 3,200 acres of privately managed forest.
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Front Yard Display in Beautiful Nanoose Bay, Beachcomber Neighbourhood
NATURAL ACHIEVERS OVERCOME ADVERSITY
The accomplishment of any great goal or worthwhile conquest is never going to be easy. Why would we want it to be easy anyway; that which we work hardest for, we appreciate the most.
RRi
In just a few short days the 2010 Olympics will officially begin. Of course, for those involved, the ones who have put their hearts and souls into it, they began many years ago.
We listened to Michael Campbell's editorial this morning on CKNW and he expressed our feelings very well. Nothing big is ever acomplished through negativity. It's amazing to hear people criticize stuffed animals, uniforms & 2 weeks of inconvenience when they could be celebrating Canada's Excellence. We have set the bar for all Olympics to come. The cost? IT'S PRICELESS!
It's here - embrace it - soak up the energy - get inspired! See you at Parksville Civic Centre!
The Beach Club Luxury Resort
• 1,296 sq. ft., 3 bath, 2 bdrm apartment "The Penthouse" - $198,800 - 1/4 Share
Parksville, Central Island - The BEACH CLUB has been nominated one of three national finalists for New Business Of The Year Award by The Tourism Industry Assoc. Of Canada. and THE PENTHOUSE with the big wow factor is available. Vaulted ceilings and big windows filled with big ocean/mountain views at the incredible Beach Club Resort. One of the best locations on earth – in the heart of Parksville with miles of pristine beach at your doorstep and an abundant choice of golf courses nearby. 1,300 sq. ft. of luxury – full amenities include indoor pool, hot tub, exercise centre, full spa services and a fine dining restaurant. Your quarter share ownership allows you to exchange the use of your suite with similar world class properties in Italy’s Tuscany, Mexico, the Caribbean, the US and others. Let the professional in-house management company generate income when not in use. All this and it’s affordable. Owner will consider all offers.
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FOR IMMEDIATE RELEASE
February 1, 2010
VIREB reports market continues to be strong
NANAIMO, BC – Single family unit sales last month were up 97% from January 2009 but down 24% from the previous month on a Board wide basis. The average sale price meanwhile is 6% above January 2009 according to Multiple Listing Service® (MLS®) sales summary data released by the Vancouver Island Real Estate Board
(VIREB) for January 2010. There were 225 single family unit sales across the VIREB region in January 2010.
VIREB President Cliff Moberg said, “We are seeing continued optimism from consumers, as we move into 2010. There is activity in all categories of the market”.
Jim Stewart, VIREB’s President Elect said that, “We are seeing inventory levels beginning to increase. It is probably a good time for sellers to put their home on the market if they are considering selling this year. “We have to remember that a year ago the world was in financial turmoil and real estate has helped lead in our recovery. Our market is strong on Vancouver Island and real estate is still a solid, affordable investment here, “says Stewart.
The average sale price across the VIREB region for January 2010 was $339,327 up 6% from the $321,425 posted in January 2009, but very close to the December 2009 average price of $341,974.
For the period comparing data from the end of January 2009 to the end of January 2010, average sale prices in VIREB's six zones saw: Campbell River increase 9% (to $288,541), the Comox Valley increased 6% (to $323,860), the Cowichan Valley was also up 6% (to $379,489), Nanaimo increased 4% (to $363,093), Parksville/Qualicum was down 8% (to $346,207), and Port Alberni jumped 18% (to $253,575).
There were 15% more single family residential properties put on the market in January 2010 compared to 12 months earlier, but overall there are 28% more homes for sale now than a year ago.
Consumers should check with their local REALTORS® for specific neighbourhood price information