Gemma Beierback Realtor www.realgem.ca

Rate increase...

2010-06-02T00:13:00.001-06:00

FOR IMMEDIATE RELEASE
1 June 2010
CONTACT: Jeremy Harrison
613 782-8782

Bank of Canada increases overnight rate target to 1/2 per cent
and re-establishes normal functioning of the overnight market
OTTAWA – The Bank of Canada today announced that it is raising its target for the overnight
rate by one-quarter of one percentage point to 1/2 per cent. The Bank Rate is correspondingly
raised to 3/4 per cent and the deposit rate is kept at 1/4 per cent, thus re-establishing the normal
operating band of 50 basis points for the overnight rate.
The global economic recovery is proceeding but is increasingly uneven across countries, with
strong momentum in emerging market economies, some consolidation of the recovery in the
United States, Japan and other industrialized economies, and the possibility of renewed weakness
in Europe. The required rebalancing of global growth has not yet materialized.
In most advanced economies, the recovery remains heavily dependent on monetary and fiscal
stimulus. In general, broad forces of household, bank, and sovereign deleveraging will add to the
variability, and temper the pace, of global growth. Recent tensions in Europe are likely to result
in higher borrowing costs and more rapid tightening of fiscal policy in some countries – an
important downside risk identified in the April Monetary Policy Report (MPR). Thus far, the
spillover into Canada from events in Europe has been limited to a modest fall in commodity
prices and some tightening of financial conditions.
Activity in Canada is unfolding largely as expected. The economy grew by a robust 6.1 per cent
in the first quarter, led by housing and consumer spending. Employment growth has resumed.
Going forward, household spending is expected to decelerate to a pace more consistent with
income growth. The anticipated pickup in business investment will be important for a more
balanced recovery.
CPI inflation has been in line with the Bank’s April projections. The outlook for inflation reflects
the combined influences of strong domestic demand, slowing wage growth, and overall excess
supply.
In this context, the Bank has decided to raise the target for the overnight rate to 1/2 per cent and
to re-establish the normal functioning of the overnight market.
This decision still leaves considerable monetary stimulus in place, consistent with achieving the
2 per cent inflation target in light of the significant excess supply in Canada, the strength of
domestic spending, and the uneven global recovery.
Given the considerable uncertainty surrounding the outlook, any further reduction of monetary
stimulus would have to be weighed carefully against domestic and global economic
developments.

Information note:
The next scheduled date for announcing the overnight rate target is 20 July 2010. A full update
of the Bank’s outlook for the economy and inflation, including risks to the projection, will be
published in the MPR on 22 July 2010.

This press release is now available on the Bank of Canada’s website at:
http://www.bankofcanada.ca/en/fixed-dates/2010/rate_010610.html

May market decline

2010-06-01T23:38:00.001-06:00

News Release
For more information contact:
Jason Martin, Communications Manager
(403) 463-2735

May Brings Marked Decline in Home Sales
Average price rises as move-up buyers enter market

Calgary, June 1, 2010 – Calgary home sales showed a marked decline in the month of May, according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in May 2010 in the city of Calgary was down 20 per cent from the same time a year ago, and condominium sales saw a decrease of 21 per cent from the same time a year ago.

May 2010 saw 1,262 single family homes sold in the city of Calgary. This is a decrease of 7 per cent from 1,352 sales in April 2010. In May 2009, single family home sales totaled 1,584. The number of condominium sales for the month of May 2010 was 518. This was a decrease of 19 per cent from the 639 condominium transactions recorded in April 2010. In May 2009, condominium sales were 653.

“The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes,” says Diane Scott, president of CREB®. “We believe there are a number of factors contributing to this marked slowdown including a declining number of first-time homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis,” says Scott.

“Consumers are feeling a little nervous about the recent instability of the stock markets—and with mortgage rate hikes behind us, it’s understandable that feelings of urgency among buyers have lessened,” adds Scott.

The average price of a single family home in the city of Calgary in May 2010 was $483,240, showing an increase of 5 per cent from April 2010, when the average price was $460,378, and showing an increase of 11 per cent from May 2009, when the average price was $436,427. The average price of a condominium in the city of Calgary was $304,662, showing a 5 per cent increase from April 2010, when the average price was $289,588 and an 11 per cent increase over last year, when the average price was $275,212. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

“Our inventory is shifting to higher price points as move-up buyers enter the market. This has resulted in an overall boost in average price,” says Scott. “Nonetheless our days on market year-over-year has decreased—suggesting that competitively priced homes are selling.”

The median price of a single family home in the city of Calgary for May 2010 was $420,000, showing a 1 per cent increase from April 2010, when the median price was $417,000, and an 8 per cent increase from May 2009, when the median price was $390,000. The median price of a condominium in May 2010 was $279,900, showing a 5 per cent increase from April 2010, when the median was $267,500. That’s up 10 per cent from May 2009, when the median price was $255,000.

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

Single family listings in the city of Calgary added for the month of May totaled 2,966, a decrease of 4 per cent from April 2010 when 3,082 new listings were added, and showing an increase of 33 per cent from May 2009, when 2,235 new listings came to the market. Condominium new listings in the city of Calgary added for May 2010 were 1,221, down 9 per cent from April 2010, when the MLS® saw 1,335 condo listings coming to the market. This is an increase of 22 per cent from May 2009, when new condominium listings added were 998.

“I believe this recent decline in sales is the result of an unsmooth transition from a first-time buyer market to a move-up buyer market. And it is likely that investors who waited out 2009 are now listing second homes and condos—giving an added boost to our inventory,” says Scott.

“Nonetheless our economic fundamentals, including employment and net migration, seem to be building momentum and Canada’s overall outlook is positive. These steady improvements should offer some stability to Calgary’s housing market as we enter the second half of 2010,” adds Scott.

CREB® is a professional body of 5,495 licensed brokers and registered associates, representing 244 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR® members.

REALTORS® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the board’s website at www.creb.com.

To access the full statistics package, please click here.

Mortgage Rate Update

2010-05-27T10:09:00.001-06:00

Mortgage Rates

Last updated: May 27, 2010

Term

Posted Rate

Our Rate

1-year

4.05%

2.60%

2-year

4.55%

3.20%

3-year

5.21%

3.60%

4-year

5.74%

4.09%

5-year

6.10%

4.37%

7-year

6.59%

4.90%

10-year

6.90%

5.20%

50/50 mortgage

n/a%

3.10% APR

Home LOC

3.25%

2.85%

Variable Rate

1.70%

Prime Rate

5.55%

*OAC. Rates subject to change without notice. Please contact us for more information or for current rate specials.

Realtors to Canadians: Chill out

Steve Ladurantaye Real Estate Reporter

Globe and Mail Update

There will be no drastic drop in Canadian housing prices, the Canadian Real Estate Association said Thursday, because house prices will stabilize and climbing household income will make owning a home more affordable.

Responding to reports from some of the country’s largest banks that prices could see drops of as much as 10 per cent in the next two years as higher mortgage rates and rising prices make housing more expensive, the association said the naysayers are ignoring the cyclical nature of Canada’s real estate market.

“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said the association’s chief economist Gregory Klump. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”

The housing market has been key to Canada’s recovery, with average prices up 23 per cent from their recessionary lows at the end of April. The average price of a home at the end of April was $344,968, the highest on record and 7 per cent higher than before the recession.

Home foreclosures don’t add up

Andrew Allentuck, Financial Post

Why do people default on mortgage and other loans? It turns out that it's not so much the amounts they owe, but that they are unable to do the math that tells them exactly what their financial situation looks like. Lack of ability to add turns out to be a cause of many consumer insolvencies.

The damage caused by failure to do sums becomes evident when people find themselves in credit counselling.

"The common characteristic of people in serious debt is that they don't know how to budget or track expenses," says Sandra Sherk, executive director of the Credit Counselling Service of Ontario's Durham Region. "They let what they owe and incidentals get ahead of them."

The problem is not limited to Canada.

In a Federal Reserve Bank of Atlanta working paper published in April 2010, economists Kristopher Gerardi, Lorenz Goette and Stephan Meier found, "a large and statistically significant negative correlation between financial literacy and measures of mortgage delinquency and default."

Translation – folks who can't add up their obligations are more likely to default on them than those who can do their sums.

The researchers asked a series of questions to test responders' financial fluency.

For example: "a second hand car dealer is selling a car for $6,000. This is two-thirds of what it cost new. How much did the car cost new?"

Gerardi and his Fed colleagues connect lack of financial fluency to the U.S. mortgage meltdown. Their argument – soaring house and condo prices in 2004 to 2008 led some people to think that finance cost did not matter and therefore did not need to be tracked or even understood. All that followed is history, but as Gerardi noted, low levels of saving are correlated with inability to do simple calculations. When income, which is correlated with education, is statistically removed from the analysis, the conclusion remains – if you can't add up what you owe, you can be in big trouble. And that's how innumeracy, the lack of ability to cope with numbers, became one of the causes of the mortgage meltdown.

What happened to arithmetic? In many schools, the three Rs – readin', ‘writin' and ‘rithmetic – have had to make way for the teaching of social skills and community values. According to Statistics Canada, high school dropout rates, 12.2% for young men and 7.2% for young women in 2004-2005, have declined from the level in 1990-1991 when the rates were 19.2% and 14.0%, respectively. The dramatic improvement in school retention rate reflects students' awareness that education is the ticket to employment and a good income. It also reflects grading standards that allow those with poor academic skills to advance rather than be stigmatized by flunking out. The consequence of this shows up when graduates can't handle questions such as another asked in the Atlanta Fed survey:

"In a sale, a shop is selling all items at half price. Before the sale, a sofa cost $300. How much will it cost in the sale?"

Lack of basic arithmetic skill compounds a serious and growing problem. The days of a farmer or shopkeeper with one debt to one bank are long gone. As Brock Cordes, a lecturer in marketing at the Asper School of Business at the University of Manitoba notes, "people are baffled by the many credit obligations they may have. A few decades ago, a person might have one credit card and one mortgage. Today, he may have seven credit cards, a few lines of credit, and a mortgage. There are different payment options. And there is ever more fine print on credit card disclosures and other documents. People have lost the ability to add. They let little calculators do it for them. It is no wonder that innumeracy is a problem."

Inability to add shows up in Canadian bankruptcy data. Bill Courage, a Chartered Insolvency Restructuring Professional in the Owen Sound, Ont., office of BDO Canada LLP says, "lack of numeracy is a contributing factor in personal bankruptcy. People don't keep track of what they are doing. ‘No money down and $27.95 per month starting next year, is something that they can understand, but they don't use their common sense. Many people just don't add up what they owe."

This casual attitude toward debt shows up when snowballing debts become an avalanche of obligations. "People who get into credit trouble don't watch the cost of loans They go from 5% on a mortgage to 15% to 19% on standard credit cards like Visa, then they load up on credit on store plastic that may have 28% interest rates, then borrow from payday loan stores at rates that may work out to 58% per year," Ms. Sherk explains. These rates, to which they agree, trap them in debt forever, she explains. "If you owe $3,000 on a major credit card and you pay $60 per month, which is a minimum, and the interest rate is 17%, it will take 7 years and 4 months to pay if off."

What to do? "We prepare people for budgeting, even if we turn them down for a loan," says Laura Parsons, area manager for specialized sales at the BMO Financial Group in Calgary. "It is not so much that people don't know that they should sharpen their pencils, it's not knowing what to do with them."
Read more: http://www.financialpost.com/personal-finance/mortgage-centre/story.html?id=3068447#ixzz0p81lNaoP

Kevin MacGregor
Lead Planner, Mortgage Architects
(403)275-6848 phone
kevin.mtgarc@gmail.com
www.kevinmacgregor.com

Kevin MacGregor AMP
Lead Mortgage Planner
Designed around you!

403.275.6848

45 thoughts to live by... I just really liked this!

2010-05-19T20:58:00.000-06:00

Written By Regina Brett, 90 years old, of The Plain Dealer, Cleveland , Ohio

"To celebrate growing older, I once wrote the 45 lessons life taught me.. It is the most-requested column I've ever written.

My odometer rolled over to 90 in August, so here is the column once more:

1. Life isn't fair, but it's still good.

2. When in doubt, just take the next small step.

3. Life is too short to waste time hating anyone...

4. Your job won't take care of you when you are sick. Your friends and parents will. Stay in touch

5. Pay off your credit cards every month.

6. You don't have to win every argument. Agree to disagree.

7. Cry with someone. It's more healing than crying alone.

8. It's OK to get angry with God. He can take it.

9. Save for retirement starting with your first paycheck.

10. When it comes to chocolate, resistance is futile.

11. Make peace with your past so it won't screw up the present.

12. It's OK to let your children see you cry.

13. Don't compare your life to others. You have no idea what their journey is all about.

14. If a relationship has to be a secret,you shouldn't be in it.

15. Everything can change in the blink of an eye. But don't worry; God never blinks.

16. Take a deep breath. It calms the mind.

17. Get rid of anything that isn't useful,beautiful or joyful.

18. Whatever doesn't kill you really does make you stronger.

19.. It's never too late to have a happy childhood. But the second one is up to you and no one else.

20. When it comes to going after what you love in life, don't take no for an answer.

21. Burn the candles, use the nice sheets, wear the fancy lingerie. Don't save it for a special occasion. Today is special.

22. Over prepare, then go with the flow.

23. Be eccentric now. Don't wait for old age to wear purple.

24. The most important sex organ is the brain.

25. No one is in charge of your happiness but you.

26. Frame every so-called disaster with these words'In five years, will this matter?'

27. Always choose life.

28. Forgive everyone everything.

29. What other people think of you is none of your business.

30. Time heals almost everything. Give time time.

31. However good or bad a situation is, it will change.

32. Don't take yourself so seriously. No one else does.

33. Believe in miracles.

34. God loves you because of who God is, not because of anything you did or didn't do.

35. Don't audit life. Show up and make the most of it now.

36. Growing old beats the alternative -- dying young.

37. Your children get only one childhood.

38. All that truly matters in the end is that you loved.

39. Get outside every day. Miracles are waiting everywhere.

40. If we all threw our problems in a pile and saw everyone else's,we'd grab ours back.

41. Envy is a waste of time. You already have all you need.

42. The best is yet to come.

43. No matter how you feel, get up, dress up and show up.

44. Yield.

45. Life isn't tied with a bow, but it's still a gift."

Five BAD home reno ideas...

2010-05-18T08:31:00.000-06:00

Five Bad Home Improvement Ideas
Published on Saturday, May 15, 2010, 6:18 PM Last Update: 9 hour(s) ago by Kimbrough Gray
Category: All Articles » Sales Strategies and Tactics
When considering adding value to a home, you consistently hear from the real estate industry that updated bathrooms and quality kitchens stand out in a home sale. Those are proven sale closers. There are certain other improvements you can make to your home that will beautify it or create convenience for your family. When it comes time to selling, however, those improvements may do nothing to increase the value of the property and may even turn off potential homebuyers.

Over-the-Top Renovations

Au contraire mon frère, not all renovations will raise the value of your home. Just `cause it's bigger doesn't mean it will be perceived as better by future homebuyers. Unless your home is located in Beverly Hills or some other very posh neighborhood, don't install the bathroom with the supersized steam shower, imported Italian marble and several different spray heads ... unless you have the money to do it for your own pleasure and enjoyment only. That kind of improvement doesn't typically do anything to increase the value of the average home.

On the other hand, if you updated an old bathroom, you could see an increase of several thousand dollars to your home's bottom line. Real estate professionals suggest that homeowners pour over local home listings to see what amenities are the standard in your area, then upgrade your home to meet it. If you overdo it, however, you may not recoup your investment.

Swimming Pools

If you think installing a swimming pool in the back side of your home will draw hoards of homebuyers clamoring to make offers on your home at sale time, you'd be wrong. Some may consider it a perk, but others may perceive it as a pain with all the maintenance it will require.

Homeowners have even paid to have their swimming pools buried to create more yard space. If you shell out the expense to build one, don't expect your home's value to budge. The only exception to building a swimming pool is if you live in states where they are considered the norm.

Home Office Renovations

Although, a home office is often an amenity appreciated by those shopping for a home, it should be built with frugality in mind. Overhauling an office doesn't pay off when it's time to sell your home. Don't steal usable space from another living area to create a home office. Instead, make sure the space can easily be converted back into a bedroom or other living space if needed. If you decide you just have to have the built-in Curly Maple wood shelves, know that you will only recoup around 50 percent of your cost at sale time.

Unique Builds

Home magazines are always coming up with clever and creative ways to change the look of your living space. Some are exotic and outlandish, but they can pique your interest. Tempted to put a classic disco ball with lights in your bedroom, a constellation ceiling in your family room or a peaceful Koi pond in your back yard? Avoid making outlandish changes to your home or changes that will be perceived as adding work for a future homeowner. Don't be tempted to incorporate these ideas into your own home, unless you don't plan on selling anytime soon. Homebuyers may not share your enthusiasm.

Roof Renovations

If your roof needs repair, don't hesitate to have the work done. It will be one less issue you'll have to deal with when listing your home. If in your pursuit to list your home you think replacing your roof with cedar shakes or clay tiles will increase the value, think again. Although they have the ability to make your home stand out, they probably won't inspire homebuyers to pay more for them. So, unless you have the money to burn, keep it simple when preparing your home to be listed on the real estate market.

Ki has been an investor in the Austin real estate market for several years. The website has an Austin home search for listings in Austin, Texas. It also has general statistics covering Austin real estate along with several neighborhoods in Barton Creek.

Bursting the Alberta Housing Myth

2010-05-17T13:37:00.001-06:00

Bursting the Alberta Housing Myth
The 2009 real estate market started out slow and ended with a bang. With prices and interest rates plummeting, many consumers took advantage and became homeowners.
2010, however, has been shrouded with whispers of a housing boom, with some suggesting that prices are creeping up to the staggering highs of 2007.
REALTORS® know differently and can use the following statistics to demonstrate to prospective clients that, while the economy has raised real estate costs, Alberta boasts some of the most affordable house prices in Canada.
• Housing prices are region-specific. Housing on the West Coast and in southern Ontario costs exponentially more than Alberta’s reasonably priced real estate, highlighting that the pricing is specific to different regions of Canada.
o Average prices in Edmonton are as much as 7.5% lower than the 2007 peak, with a similar trend in Calgary.
o In a side-by-side comparison, the average house price (including condos) in Toronto was up to $438,600 in March, 2010. Edmonton came in at about $330,000, according to a Scotiabank report.
• Alberta homes are affordable when local factors are taken into account. Alberta homes score high on the attainability scale, a measure that compares local average income with average house prices.
o A study by RBC Economics (http://www.rbc.com/economics/market/pdf/house.pdf) that measured the percentage of median pre-tax combined household income needed to cover a 25-year mortgage at market prices, put Edmonton and Calgary in the spotlight for affordability*:
- Edmonton: 32.9% of combined income was needed for a typical bungalow
- Calgary: 37.1%
- Toronto: 49.1%
- Vancouver: 69%
- National average: 40.6%
* The fourth quarter of 2009 was the last period covered
Compare that with a Pitney Bowes Business Insight study, which documented median combined household income in Canadian cities:
- Edmonton: $90,000
- Calgary: $113,000
- Toronto: $101, 400
- Vancouver: $82,300
These statistics paint a picture of affordability within the Alberta market. Rather than trying to convince your prospective buyers that now is a good time to buy, consider using these statistics to show them, instead.

Mortgage Rate Update

2010-05-13T11:56:00.001-06:00

Mortgage Rates

Last updated: May 13, 2010

Term

Posted Rate

Our Rate

1-year

4.05%

2.64%

2-year

4.55%

3.20%

3-year

5.21%

3.60%

4-year

5.74%

4.09%

5-year

6.25%

4.49%

7-year

6.59%

4.90%

10-year

6.90%

5.35%

Home LOC

3.25%

2.85%

50/50 mortgage

N/A

3.22% APR

Variable Rate

1.75%

Prime Rate

2.25%
Next announce: June 2nd

*OAC. Rates subject to change without notice. Please contact us for more information or for current rate specials.

Even recession didn't slow down Canadian's spending, report finds

By Julian Beltrame, The Canadian Press

OTTAWA - Neither recession, global uncertainty nor growing joblessness appears to have stayed Canadians' appetite for spending money they don't have.

A new report by the Certified General Accountants Association of Canada shows that household debt in the country kept rising through the recession and peaked in December at $1.41 trillion.

That's $41,740 on average per Canadian, or debt to income ratio of 144 per cent that is the worst among 20 advanced countries in the OECD.

"This report is another indication of Canadians' readiness to consume today and pay later," says association president Anthony Ariganello.

"The concern is do they understand the full cost of paying later?"

The Bank of Canada has also voiced similar concerns, with governor Mark Carney having repeatedly advised Canadians to ensure they will be able to meet their mortgage commitments once rates increase. Ottawa has put that cautionary principle into effect by stiffening the means test chartered banks must apply when issuing open-ended mortgages.

Most Canadians don't yet share that concern. The accountants' survey found that almost 60 per cent of Canadians whose debt had increased still felt they could manage it or take on more obligations.

But the accountants say many households could find themselves in difficulty when interest rates, as expected, begin to rise.

The report estimates that even a small two per cent increase in rates would mean that mid-income and higher income households would have to cut their outlays on non-essentials by between nine and 11 per cent.

The finding is similar to one reached by the Canadian Association of Accredited Mortgage Professionals in a survey results release Monday.

The survey showed that while Canadians appeared well positioned to absorb higher rates, there would be a significant number that would come under stress. The mortgage professionals estimated that 475,000 households would be challenged if mortgages rates rose to 5.25 per cent, and that 375,000 were already facing pressure paying their bills.

The most likely outcome for a debt squeeze is that households will stop spending on non-essentials, and that could ripple in a general slowing of economic growth.

Household spending, particularly in the housing sector, was a mainstay of the economy during the recession. But as interest rates grow, a bigger percentage of household income may need to be diverting into paying off debt, meaning less cash for other purchases, like autos, appliances, furniture and clothes.

BMO Capital Markets economist Sal Guatieri says that is the flip-side to the Bank of Canada's decision to slash rates to historic lows during the recession.

"That's why we did not experience a great recession," he noted. "That was the intention all along of the Bank of Canada, to get people borrow and spend. The problem is if that continued, Canada eventually would have a debt problem."

But that is why the central bank is preparing to reverse course and start increasing the cost of borrowing, he added.

Most analysts believe Carney will start moving on rates on June 1 with a small quarter-point hike. http://ca.news.finance.yahoo.com/s/11052010/2/biz-finance-recession-didn-t-slow-canadian-s-spending-report.html

Feds want tighter rules to ground fly-by-night movers

By Dean Beeby, The Canadian Press

OTTAWA - The federal government is putting the moves on movers.

Industry Canada wants to tighten the rules for moving companies after a deluge of complaints from consumers who say they've been ripped off by crooked operators.

Armed with a cellphone and a Kijiji or Craigslist ad on the Internet, scam artists are preying on Canadians looking for cheap moving help, says the department.

"Complaints include holding furniture hostage at the destination until consumers pay more than the original estimate and producing new hidden costs such as packaging," says an internal document.

"In some cases, the belongings are not delivered but are dumped or remain in warehouses and storage facilities. Consumers in this market are particularly vulnerable to such practices because of the ability of movers to confiscate or ransom their belongings."

The Consumer Measures Committee, a federal-provincial group run by Industry Canada, launched a project last July to better monitor the household moving sector by analyzing consumer complaints.

"This work is in the very early stages of development and findings are not yet available," department spokesman Michael Hammond said.

Regulation of the moving sector is largely a provincial responsibility, even though some moves cross provincial boundaries. Eight provinces have highway traffic legislation that governs the household-goods moving trade, with Prince Edward Island and Newfoundland and Labrador the exceptions.

Many provinces also have consumer protection laws, as does the federal government.

But industry players contacted by the committee in the last few months say officials want to end that patchwork coverage by harmonizing laws, regulations and practices across the country.

The 2006 census of Canada found that 1.2 million households had moved in the last five years. Some estimates say Canadians change addresses an average of 13 times through their lifetimes.

And the Canadian Council of Better Business Bureaus says complaints about movers were No. 7 on its Top 10 list of consumer beefs in 2009. Just over half of the 636 formal complaints about moving firms last year were settled.

An Industry Canada briefing note, obtained under the Access to Information Act, suggests about one of every four moves generates a consumer complaint.

The head of Canada's largest industry group, the Canadian Association of Movers, supports harmonization but says the best protection for consumers is education.

"You have people having all their life possessions destroyed, stolen, rifled through, held for ransom, overcharged," president John Levi said in an interview from the group's Mississauga, Ont., headquarters.

But even with tougher regulations "there's no government agency out there that can help you in a timely fashion."

Consumers are understandably intimidated by large men suddenly demanding more cash before unloading the truck, Levi said.

"There's sufficient legislation and regulation in place — if it were enforced."

The best defence is to do some research, he said.

The mover's association — with about 200 members, including big operators like Atlas, Allied, Mayflower, United, North American — certifies its firms after checking their standards and reputations, and having them sign a code of ethics.

The Better Business Bureau as well as Industry Canada posts consumer checklists and advice on moving on their websites. A joint consumer tips release is also planned shortly by the movers' association and the business bureau.

Better Business Bureaus across Canada fielded almost 98,000 inquiries about moving companies last year, the second-most common query after consumer questions about roofing contractors.

http://ca.news.finance.yahoo.com/s/09052010/2/biz-finance-feds-want-tighter-rules-ground-fly-night-movers.html

Kevin MacGregor AMP
Lead Mortgage Planner
Designed around you!

403.275.6848

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Exciting news about US economic recovery

2010-04-26T15:20:00.001-06:00

http://www.inman.com/news/2010/04/26/get-ready-a-runaway-recovery

Exciting news about US economic recovery

2010-04-26T15:20:00.000-06:00

http://www.inman.com/news/2010/04/26/get-ready-a-runaway-recovery

Mortgage Rate Update

2010-04-06T16:51:00.000-06:00

Mortgage Rates

Last updated: April 06, 2010

Term

Posted Rate

Our Rate

Home LOC

3.25%

2.85%

1-year

3.65%

2.49%

2-year

3.95%

2.95%

3-year

4.70%

3.49%

4-year

5.34%

4.04%

5-year

5.85%

4.25%

7-year

5.99%

4.65%

10-year

6.30%

4.99%

5 yr, 5% cashback

5.85%

5.85%

Variable Rate

1.75%

Prime Rate

2.25%

*OAC. Rates subject to change without notice. Please contact us for more information or for current rate specials.

Canadian economy grows faster than expected in January

OTTAWA – The stalwart Canadian economy marched doggedly forward in January, growing faster than anticipated thanks to a healthy boost from a manufacturing sector that appeared to be in full rebound from the recession.

The month’s 0.6 per cent rise in real gross domestic product, reported today by Statistics Canada, was the biggest one-month lift in more than two years and just ahead of an economist consensus forecast of 0.5 per cent.

“The Canadian recovery is becoming more fully entrenched and is showing surprising strength, with the goods-producing sector in full rebound mode,” Douglas Porter, deputy chief economist for BMO Capital Markets, wrote in a note to clients.

“Importantly, the recovery looks to be broadening beyond the initial push in housing and consumer spending, as manufacturing has advanced for five straight months.”

The solid improvement will likely put more pressure on the Bank of Canada to raise interest rates in the next couple of months from their historic lows of 0.25 per cent.

Goods-producing industries grew 1.3 per cent, largely on the strength of manufacturing and construction, the agency said. After a 1.2 per cent gain in December, manufacturing was up 1.9 per cent in January, with 17 of 21 major groups advancing.

The construction sector advanced 1.7 per cent, on a four per cent increase in residential construction and a one per cent rise in engineering and repair work. Non-residential building construction bucked the trend, falling off a slight 0.5 per cent.

“These are unambiguously strong results, with GDP now rising at a whopping 6.9 per cent annual pace over the November-to-January period,” Porter said.

“And, the economy has already recouped more than half of its recession losses, with GDP now up by 2.7 per cent from last May’s low.”

The loonie rose following the announcement, moving up 0.43 cents to 98.52 cents US in morning trading.

Mining and oil-and-gas extraction also increased in January.

The production of services advanced 0.4 per cent, led by wholesale trade.

Retail trade, the finance and insurance sector, transportation and the public sector also rose.

Meanwhile, the output of real estate agents and brokers, some tourism-related industries as well as agriculture and forestry retreated.

The volume of wholesaling activity increased 2.9 per cent with all wholesaling trade groups posting gains except apparel and alcohol and tobacco.

Value added in the retail trade sector rose 0.8 per cent in January.

Significant increases were registered in building and outdoor home supplies stores, home furnishings stores as well as food and beverage stores. Declines were recorded at new- and used-car dealers and at gasoline stations.

Porter added that early statistics for the month of February also look promising, with the gain of 60,000 full-time jobs, housing starts up six per cent and auto sales at their highest level in almost two years.

“Given today’s results, and the fact that February is shaping up well, first-quarter GDP growth looks set to easily surpass our recently revised call of a gain of 4.7 per cent (let alone the Bank of Canada’s latest estimate of 3.5 per cent), with growth on track for 5 ½ per cent even if the next two months come in at just up 0.2 per cent.”

The Canadian Press http://news.therecord.com/Business/article/691423

Where is the time going...

2010-04-05T11:15:00.002-06:00

I can't believe it is already April, and for me this month is so busy before I know it it will be May. This has been such a hectic year in Real Estate it is truly amazing how time is flying. I have really been blessed to work with some fantastic clients so far this year and I totally appreciate all the referral business. When I tracked my business last year 89% of it comes from referral and repeat business and I have all of you to thank for that! I appreciate you trust.
Have a wonderful spring, enjoy the warm weather and remember if you need real estate help call me!
Gemma

Competition Bureau....thoughts

2010-03-25T23:23:00.002-06:00

I have been keeping in the loop as much as seems humanly possible and practical with respect to developments with the complaint launched by the Competition Bureau against the Canadian Real Estate Association(CREA). Frankly I have found the whole situation rather a bore, simply because from my perspective there is really no issue.
There are 98,000 REALTORS® in this country and just about as many business models. I know there are agents that charge much less than me and some that charge much more. Some Real Estate professionals have a large staff of people working to sell a home and include a bundle of services ranging from staging to organizing, photography and professional consultations and some simply get the info, put it on the MLS® and wait for it to sell. There is no right or wrong business model, just a variety of different products that meet different needs and concerns. The diversity of this industry is what makes it great!
However, lately I have read a few articles, in well respected newspapers, that seem to insinuate that CREA is in some way telling REALTORS® what they must charge. Nothing could be further from the truth. In fact all the governing bodies within the Real Estate industry make it VERY VERY VERY clear that discussing commissions (with other agents) and telling the public their is a 'standard' commission is absolutely prohibited. In fact we are instructed that if asked we are to tell the public that commission is always negotiable. What other industry tells their practitioners that they must let their potential clients know that their fee is up for debate.
Think about that, the last time you went to the lawyer, accountant, grocery store, did anyone stop you at the door and tell you to haggle on the price and direct you to a cheaper option at a different business...NO... BUT in Real Estate we have to let the public know they are free to negotiate commission.
I have a business model, and I am an independent contractor which essentially means, like other REALTORS® I am a small business person. My business is selling homes. I invest a lot of time and money in my small business. I have spent thousands of dollars on education, training and upgrading. I spend thousands on maintaining my license, keeping my office and paying my fee's. I have advertising and marketing costs as a component of my business model as well as signage to contend with...
Like every other small business owner I take a risk, I put money into my small business in the hope that I will make money! There are no guarantee's in Real Estate. Given the stat that roughly 95% of new agents leave the business in the first year and 99% are gone within 5 years I am guessing that maybe it isn't quite as easy as it seems to create a viable small business in Real Estate. It just might take a bit of hard work, investment, time, expertise and probably a share of luck too!
With all small business there are varying degrees of return on investment. You take a risk, it might pay of, it might not... Contrary to popular belief, not every Real Estate agent is a millionaire, driving a Porche, and taking 6 months off a year. In fact we are probably guilty as an industry of portraying this image as, for years, old school theory said that the public was attracted to perception of your wealth in order to think you are successful. The truth is, I know a LOT of agents and I don't know many that don't work darn hard for every penny they make. The vast majority live in your standard, middle class, neighbourhoods, with children in public school, living 'normal' lives, as mom's, dad's, community volunteers, coaches, friends etc... Sadly,
it doesn't help that recent TV shows depict agents as somewhat dimwitted and overpaid, but just like most reality TV it is a little light on the REALITY side of things! It might be fun to watch but it doesn't reflect the true nature of Real Estate in the REAL WORLD!
I built my business, like most other respected REALTORS® on trust and referrals. In fact last year 90% of my business came from referrals and repeat business. 90% think about that. If you own a business and 90% of your business comes from people appreciating your service enough to use you again, or tell someone about you, I think that speaks volumes. It is funny that not one of these people ever tells me I get paid too much, or I don't work for my money... In fact I get clients telling me all the time they don't know how I do it and I don't get paid enough!!! Imagine that! What it comes down to is service. They come to me for a specific service and I provide that service and they are satisfied that they got good value.
I encourage sellers to find the right fit for them. If you want a bargain price you can find it and it may well be the service that meets your needs. It is not the service that I provide but it is available.
In my estimation as long as the information that is provided to me on the MLS® systems is reliable I don't care how much the person who put it there is getting paid. I want Real Estate to continue the steady ascent to becoming a respected profession and for that to happen the system we all rely on for data has to be maintained. As soon as we compromise the MLS® data the consumer will suffer. It will be the consumer buying a home without being made aware of any possible areas of concern. Even less serious but almost more annoying... imagine going onto the REALTOR.CA to start looking for a home in the town 500 km's away that you are being transferred to. Imagine you get to REALTOR.CA only to find that there are no pictures, properties are not mapped at all, room sizes are not listed, the house square footage and age are missing, taxes are a guesstimate and all the other information you rely on when determining what properties to view are missing or inaccurate. If we remove the requirement for REALTORS® to be accountable for their data then how will we police the accurate inputting of sale prices? If the MLS® data is compromised to this degree we will see a breakdown in other areas. When you get a mortgage the lender will no longer be confident enough to rely on this sales data for appraisal purposes or lending value verification... This could mean an increase in costs, difficulty and time, again for the consumer.
There is so much more at stake here than what is being carved out to be a public vs organized Real Estate debate. The reality is that the only people who will suffer from any drastic changes to the MLS® database (ie. opening it up to unlicensed people) are the consumers. Ensuring that those people, with access to adding properties to our current database, are licensed is the only effective way of policing and protecting the accuracy of the data. In our current system consumers have more choice than you can imagine both within the MLS® system and outside it, after all you don't HAVE to use a Real Estate Agent to sell your home!
The Real Estate industry has long been advocating for consumer protection, for programs that increase quality of life, provide affordable housing and affordable and realistic lending option not to mention working tirelessly to make sure that when you buy or sell a home you are legally protected... This isn't about the Public vs The REALTOR®, we are all on the same team, look around your community and you will see Real Estate professionals doing exactly the same things you do every day, building a business, going to work, working hard, paying taxes, paying the bills and making a life...
We are all playing on the same team here!
Next time you need to buy or sell a home, shop around and find the business model and fee structure you feel comfortable with and be sure to work with someone you trust, because at the end of the day that is all that will really matter!
Feel free to ask me questions on this topic or send me your comments. www.realgem.ca

Save some TAX $$$ when moving

2010-03-23T20:06:00.000-06:00

Have you recently moved to a new location? Do you know that you can deduct certain moving expenses on your next tax return, including transportation, packing and storage costs.

Many people never realize these tax benefits because they don't know what can be deducted. If you are preparing to move, it's best to be informed beforehand so you know which receipts to keep. You may find it worthwhile during a move to pay for various services that are tax-deductible rather than doing them yourself. A typical move involves a number of costs including hiring a company to transport personal effects and furniture, hotel stays and meals (if the move involves driving a long distance to a new home), and service fees to disconnect and reconnect utilities. In addition, renters who leave on short notice may have to pay the cost of breaking a lease.

Homeowners will incur closing costs and commissions on the sale of their home as well as legal and other fees on the purchase of their new home. This article provides information regarding tax deductible moving expenses.

To claim moving expenses on your taxes, your move has to meet the following conditions:

You moved to your new home or new apartment to start a job or a business, or to attend full-time post-secondary courses at a university, college or other educational institution
Your new place of residence is at least 40 km closer to your workplace or school than your previous home.
You moved from one place in Canada to another place in Canada.
Two groups are eligible to deduct a portion of their moving expenses: students moving away from home to attend school and people moving to a new area for a job or relocation by their employer. There has been a challenge to the rules regarding eligibility for the self-employed as you'll read later in this article.

Students

Students must fulfill two main qualifications: the distance between your home and school must be at least 40 km (by the shortest public route) and you must be a full-time student. A full-time student is defined as someone who regularly attends a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not) and is taking at least 60% of the usual course load during each semester.

As a student, you can only deduct eligible moving expenses from award income (scholarships, fellowships, bursaries, prizes, and research grants) that you report on your return. Your moving expenses must be greater than your award in order to deduct any moving expenses. As Revenue Canada's website reads, "If your moving expenses are more than the award income you report for the year, you can deduct the unused portion of those expenses from the award."

Although many students will not earn award income and will therefore not be able to deduct moving expenses, tuition fees themselves are a tax deduction. If a student has a part-time job, tuition can reduce taxes paid on those earnings. Students who meet the qualifications and have received award income can deduct the costs of travel, shipping and transportation of belongings, as well as items listed below under 'Expenses you can deduct'.

Employees

If you are moving for work (e.g. a company relocation or new job), are employed and establish a home at least 40 km closer to a new job than your old home, then you qualify to deduct moving expenses. Similarly, if you are self-employed, and you establish a home at least 40 km closer to your new operational business than your old home, you also qualify to deduct moving expenses.

According to Revenue Canada, you must establish your new home as the place where you and members of your household ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home.

Employed and Working from Home: an Exception to the Rule

Until recently, employees who work from home and move have faced some restrictions regarding moving expenses. In the court decision Gary Adamson v. the Queen, Mr. Adamson had incurred moving expenses as an employee who was required to provide his own office in his home.

Expenses you can Deduct:

transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers;
traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence (you can choose to claim vehicle and meal expenses using the simplified method);
costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household (you can choose to claim meal expenses using the simplified method); and
the cost of canceling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

When your old residence is sold as a result of your move, eligible moving expenses also include:

legal or notaries fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence, and
the cost of selling your old residence, including advertising, notarial or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

Expenses that are not Deductible:

expenses for work done to make your home more saleable;
any loss from the sale of your home;
expenses for house-hunting trips before you move;
the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products;
expenses for job hunting in another city (such as traveling expenses);
expenses to clean or repair a rented residence to meet the landlord's standards;
expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets;
mail-forwarding costs (such as with Canada Post);
costs of transformers or adaptors for household appliances; and
costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved.

Remember to keep receipts and documents supporting your claims, you do not have to include these documents in you tax claim but Canada Revenue Agency may want to see them at a later date.

Keep in mind that this article is for information only. The tax laws are frequently modified. We recommend that you visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim or consult a professional accountant to maximize your tax return.
Reprinted from Canada Realty News

What do the new mortgage rules do to or for you?

2010-03-08T13:18:00.001-07:00

The 5-year Funnel
Take all the high-ratio borrowers with above-average debt ratios and funnel them into 5-year fixed terms.

That’s what the government has done with its new posted qualifying rate.

The instinctive conclusion after hearing about posted qualifying rates is that droves of people will no longer be able to qualify for a mortgage.

Not so. Posted qualifying rates won’t keep the masses from buying homes.

To illustrate this, pretend you live in the typical Canadian household which makes about $66,343 a year. Perhaps your family has $500 a month in non-housing debt obligations. How much mortgage can you afford?

Well, maybe your name is ‘Mr. Leveraged’ and you want to stretch your budget. You can get yourself qualified today using a 3-year fixed rate of, say, 3.49%. That’ll get you a $314,000 mortgage, or thereabouts.*

If the new qualifying rules were in effect today, you’d get more buying power with a 5-year fixed mortgage. That’s because variable-rate mortgages and 1- to 4-year fixed terms would (will) require you to qualify using a 5-year posted rate. Posted is 5.39% today.

The qualifying rate on a 5-year fixed mortgage, however, might only be 3.75% (and even less with some lenders).

Having to qualify with 3.75% instead of 3.49% would knock Mr. Leveraged’s maximum mortgage down to $304,000. That’s a mere $10,000 less than he can get under today’s qualifying rules (which still apply until April 18, 2010).

This small loss in buying power isn’t that big a deal. The government’s new qualifying rate policy will not be an obstacle to people buying homes.

What it does, however, is funnel people with higher debt ratios and less equity into 5-year fixed mortgages.

Who’s happy about that?

Big Lenders: Because 5-year fixed terms are usually more profitable than variables or shorter terms.
Bankers and Mortgage Professionals: Because they often get paid more up front for selling 5-year fixed mortgages as opposed to shorter terms.
Many Others: Because 5-year fixed terms help: 1) Keep high-ratio applicants with less equity from overextending themselves; and, 2) reduce payment shock as interest rates start climbing.
Who’s not happy?

Qualified Homeowners Without 20% equity: Because many of them will no longer be approved for lower-cost variable-rate mortgages, 1- to 4-year fixed terms, or hybrid mortgages.
Smaller Non-Bank “A” Lenders: Because it’s harder to compete with big banks in the prime 5-year fixed market.
A final reminder for good measure: The new posted qualifying rate will not apply to all mortgages. CMHC says it will apply after April 19 only to insured mortgages with less than 20% down.

Rate Holds steady...

2010-03-02T18:36:00.001-07:00

Bank of Canada Holds Rate Steady

Bank of Canada maintains overnight rate target at

1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

The ongoing global economic recovery is being driven largely by strong domestic demand growth in many emerging-market economies and supported in advanced economies by exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.

The level of economic activity in Canada has been slightly higher than the Bank had projected in its January Monetary Policy Report (MPR). The economy grew at an annual rate of 5 per cent in the fourth quarter of 2009, spurred by vigorous domestic spending and further recovery in exports. The underlying factors supporting Canada’s recovery are largely unchanged – policy stimulus, increased confidence, improved financial conditions, global growth, and higher terms of trade. At the same time, the persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to act as significant drags on economic activity in Canada.

Core inflation has been slightly firmer than projected, the result of both transitory factors and the higher level of economic activity. The outlook for inflation should continue to reflect the combined influences of stronger domestic demand, slowing wage growth, and overall excess supply.

Conditional on the current outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.

The risks to the outlook for inflation continue to be those outlined in the January MPR. On the upside, the main risks are stronger-than-projected global and domestic demand. On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar. The Bank judges that the main macroeconomic risks to the inflation projection are roughly balanced.

Information note:

The next scheduled date for announcing the overnight rate target is 20 April 2010.

A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 22 April 2010.

This press release is now available on the Bank of Canada’s website at:

http://www.bankofcanada.ca/en/fixed-dates/2010/rate_020310.html

Get in the buying mood...

2010-03-02T18:17:00.001-07:00

http://morrisontheweb.com/InformedHomeBuyer/Informed%20Home%20Buyer%20Mar%2010.pdf

Rates heading up???

2010-02-24T09:36:00.000-07:00

Paul Vieira, Financial Post

OTTAWA -- With Bay Street convinced the Bank of Canada will maintain its pledge to wait until July to begin raising interest rates, the debate now turns to how aggressively the central bank should behave thereafter.

In the view of a paper prepared for the C.D. Howe Institute, the central bank should act with zeal. If it wants to get ahead of the inflation curve, the bank should raise its benchmark rate by 50 basis points at every scheduled rate announcement until the middle of next year, the paper said.

Michael Parkin, an economics professor at the University of Western Ontario and member of the think-tank's monetary policy council, said "steep" increases would be required to make up for keeping the benchmark rate so low for so long.

The paper comes a week before the Bank of Canada's next interest-rate statement, scheduled for March 2 and the same day Mark Carney, the bank governor, held an annual meeting with leading private-sector economists in Ottawa.

The bank cut its benchmark rate last year to a record low 0.25%, and made a pledge -- conditional on inflation -- to keep it there until the end of June in an effort to pump up the economy amid the financial crisis. Analysts say the move has worked. Figures on gross domestic product, to be reported next week, should indicate the economy grew roughly 4% in the fourth quarter, above the central bank's own expectations. And inflation is closer to the bank's 2% target earlier than envisaged, although analysts suggest price increases could lose some steam in the weeks ahead.

The main thrust of Mr. Parkin's argument is the central bank needs to raise rates as aggressively in anticipation of the recovery as cut in response to the financial crisis. This would be in line with the Taylor rule, which dictates by how much a central bank should move its benchmark rate in response to inflation.

Based on the central bank's own economic projections, Mr. Parkin calculated the future path of interest rates. "When the [benchmark] rate starts to rise, it must be on a steep upward path," he wrote. Under the Taylor rule the benchmark rate should in fact, be higher than present levels. As a result, a target rate "somewhat higher" than what otherwise would be required might be necessary for the latter half of this year and all of next, he said, "to avoid inflation running above target."

Economists indicate the central bank, if possible, will keep its pledge because reversing course now could damage its credibility.

Other analysts also signalled that they shared some of Mr. Parkin's view.

"In order to move from an exceptionally low to low-rate environment, you need to move fast," said Sébastien Lavoie, economist at Laurentian Bank Securities, which last fall indicated in a report Mr. Carney would need to entertain rate increases of up to a percentage point.

Michael Gregory, senior economist at BMO Capital Markets, said that by mid-2011 the benchmark rate would "have to be in proximity of being neutral."

However, he added the central bank would have to take into account the strength of the loonie in determining the appropriate level of interest rates. The currency is likely to climb as the Bank of Canada moves ahead of the U.S. Federal Reserve, and perhaps more aggressively, Mr. Gregory said. http://www.financialpost.com/news-sectors/economy/story.html?id=2602124

Have a great day!...and GO CANADA GO!

Changes to Mortgage Regulations explained!

2010-02-19T12:52:00.000-07:00

Government of Canada Takes Action to Strengthen Housing Financing

The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.

"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

Here is the link for this article on the Dept of Finance website http://www.fin.gc.ca/n10/10-011-eng.asp

Mortgage changes target ‘reckless’ buyers: Flaherty

New mortgage rules

Paul Vieira, Financial Post with files from Garry Marr in Toronto

OTTAWA -- Jim Flaherty, the Finance Minister, says he is targeting "reckless" speculators who buy up multiple condominium units in the country's biggest cities with new rules introduced yesterday that will make it tougher for Canadians to get a mortgage.

The reforms were submitted after nearly a week of non-stop warnings from people ranging from a prominent money manager to former Bank of Canada governor David Dodge about an impending housing bubble. The concern was that the real estate market was getting ahead of itself, as buyers took advantage of record-low interest rates to acquire homes.

In introducing the tougher mortgage requirements, Mr. Flaherty said there was "no clear evidence" of a real estate bubble in this country, the kind of which sideswiped the U.S. economy and sparked the worldwide financial crisis.

"The measures will not affect the ability of a Canadian family to buy a house. It will affect those who are speculating," the Finance Minister said. "What we're getting at is the speculation in multiple condominium units in particular which we see in Vancouver, Montreal, Toronto and in some other places in Canada."

Home builders were taken aback by the measures introduced, saying they could result in "severe implications" for the condo and housing markets.

The changes, scheduled to come into effect on April 19, will make it harder for first-time buyers to qualify for government-backed mortgage insurance -- from either Crown agency Canada Mortgage and Housing Corp. or private-sector providers -- which is required if down payments are less than 20% of the property's value.

Borrowers now have to meet standards for a five-year fixed-rate mortgage, even if the buyer wants a shorter-term, variable rate product.

Some analysts, however, indicate the shift is not as big as it appears. Eric Lascelles, chief economist at TD Securities, said the revamped rule likely means the minimum household income cutoff for Canadian mortgage applicants would be about $5,000 to $8,000 higher.

Further, Ottawa has raised the minimum down payment on rental income properties -- where the buyer does not plan to live -- to 20% from 5%.

Mr. Flaherty said one goal is to protect Canadians from overextending themselves financially as interest rates are likely to climb from present historic lows. The other, he added, is to root out speculation in real estate, which he suggested was happening with greater frequency based on prebudget consultations.

"I don't know how that serves the Canadian people and why the government should insure mortgages like that," Mr. Flaherty said. "People can do it with their own money and if they can find someone who will lend them the money on an uninsured basis. But I just don't want CMHC and the Canadian people to be in the business of guaranteeing speculative mortgages."

Derek Holt, vice-president of economics at Scotia Capital, said the condo market could feel the pinch. Industry experts estimate roughly 40% of condo purchases are investment-related, with buyers looking to rent the units for income and perhaps sell them at a later date at a higher price.

"Evidence of the greatest speculative excess has been in the condo segment in the past few years," Mr. Holt said.

Others weren't so sure. Ben Myers, executive vice-president of Urbanation, a Toronto firm that tracks the city's condo market, said the move would have "very little" impact because most condo builders already require down payments of 15% to 20% for their units once they are occupied.

Still, home builders were shocked by Mr. Flaherty's contention that the real estate market was at the mercy of speculators.

"I don't know if they have thought this through as to who a speculator is," said Peter Simpson, chief executive of the Greater Vancouver Home Builders Association. "Just because someone buys a second property doesn't make them a speculator."

He added that these new regulations, combined with the coming harmonized sales tax in British Columbia on July 1, could lead to a "perfect storm" that hits the province's housing market.

The chief operating officer of the Canadian Home Builders Association, John Kenward, said the rule aimed at condo speculation came as a surprise to his members.

"It had not been the subject of conversation [between the government] and the industry," said Mr. Kenward. "It could have serious implications going forward. We don't know why it was introduced."

Overall, Mr. Lascelles said, the economic implications from the proposed moves "are unlikely to be severe, and we expect the housing market to slow its ascent without crashing back down to Earth."

SUMMARY OF CHANGES

*Borrowers must qualify for a five-year fixed rate mortgage instead of a three-year loan when calculating gross debt service and total debt service ratios.

*Refinancing will be capped at 90% for government-backed high-ratio mortgages versus 90% previously.

*A down payment of 20%, instead of 5%, will be required for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.

WHAT CHANGES MEAN FOR A $337,000 HOUSE

*The difference between a three-year mortgage rate and a five-year mortgage rate is currently in the range of about 50-100 basis points. The average house in Canada costs $337,000, which means that this change will require that mortgage applicants have the capacity to absorb an extra $2,500 per year in mortgage costs than in the past, according to calculations by Eric Lascelles at TD Securities. Effectively, the minimum household income cut-off for Canadian mortgage applicants is now about $5,000-8,000 higher than it was previously, to fulfill the new rule. http://www.financialpost.com/news-sectors/economy/story.html?id=2569008

Financial Post

Have a great day!

Mortgage Rate Sheet

2010-02-16T21:09:00.000-07:00

Cameron Financial Consultants Ltd.
Rates as of February 16, 2010
Don’t miss this opportunity to Finance a New Home, Rental, Second Home, Renovate and Refinance!
Customer service is my #1! I work evenings and weekends!
Term Our Rates Posted Rates
*3 Year ARM Quick Close Prime MINUS .30%
*5 Year Fixed Quick Close 3.69%
1 Year Fixed 2.65% 3.65%
2 Year Fixed 2.95% 3.95%
3 year Fixed 3.50% 4.30%
4 Year Fixed 3.69% 5.04%
5 year Fixed 3.89% 5.39%
5 Year CashBack 5.39%
*3 Year ARM Quick Close special is 1.95%! Must close within 30 days.
*5 Year Fixed Quick Close special must be closed by March 26th, 2010.
PRIME Rate is 2.25%
Courtesy of: **Please note that all rates outlined
are applicable for the quoted date.
Rates may change, be extended or
withdrawn at any time. Applicants
must meet the requirements and
qualify for the products being offered.
Angela Ziniewicz, Mortgage Associate
Cameron Financial Consultants Ltd.
Cell: 403-473-2600
Fax: 403-855-1183
Email: angela@cameronfinancial.ca
Web: http://cameronfinancial.ca

CREA Forecast... What do you think?

2010-02-10T18:26:00.001-07:00

CREA forcasts record home market this year

Garry Marr, Financial Post

Canadian real estate sales and prices are poised to set records this year, according to a new forecast that is bound to reignite calls in some quarters for tighter lending rules.

The Canadian Real Estate Association, which represents 100 boards across the country, said Monday it expects existing-home sales to reach 527,300, a 13.3% increase from a year ago and a 1.2% increase from the record high set in 2007.

The new-home market appears to be picking up steam, too. Canada Mortgage and Housing Corp. said there were 186,300 starts in January on a seasonally adjusted annualized basis, the highest level of new construction since October 2008.

Bank of Canada governor Mark Carney has warned about rising levels of household debt, which is reaching record levels. Finance Minister Jim Flaherty has suggested he is prepared to tighten mortgage requirements and continues to monitor the market.

"One of the legitimate concerns of the Finance Minister might be if you make qualifying for mortgage default insurance prematurely restrictive that it will quell housing activity even as erosion in affordability continues," said Gregory Klump, chief economist with CREA.

There are have been some rumblings that the government is considering new rules that would require buyers who need mortgage insurance to have at least 10% down and amortize their mortgage over just 25 years instead of the current 35 years.

Anybody with less than a 20% downpayment must get mortgage insurance, if they are borrowing from a financial institution governed by the Bank Act.

Mr. Klump's group contends the market is going to correct on its own in the second half of 2010. CREA has called for sales to drop 7.1% in 2011. The group says that while prices will rise by 5.4% in 2010, to a record high of $337,500, they will drop by 1.5% in 2011.

That view of the housing market is not out of step with some economists, who say that once interest rates rise and inventory levels increase, price increases will shrink. Year-over-year price increases in some markets, such as Toronto, have been around 20% for the past few months.

"There is still a sense of urgency to get into the market. The market will continue to be strong over the next few months," said Benjamin Tal, senior economist with CIBC World Markets, adding he could see new construction also touching 200,000 starts before beginning to fall.

Part of that urgency in the housing sector is being driven by the introduction of the harmonized sales tax in Ontario and British Columbia on July 1. The tax would apply to real estate services and could increase the cost of buying a home by a few thousand dollars.

"It's a factor fuelling a higher level of activity in Ontario and British Columbia," Mr. Klump said. "What's more Canadian than avoiding taxes?"

Elton Ash, vice-president of Re/Max of Western Canada, said he thinks the forecast put out Monday was a little optimistic for 2010, specifically the 4.2% price increase for British Columbia. "But I also think the market will be better in 2011 [than CREA]."

Mr. Ash is actually in favour of some measures to cool the market, like reducing the amortization period back to 25 years. But he wonders whether increasing the downpayment will take some people out of the housing market.

"I think leaving it at 5% would be okay," Mr. Ash said.

Read the latest copy of informed home buyer/seller

2010-02-05T11:45:00.001-07:00

Click on the title to connect to a copy of the latest issue of informed home buyer/seller!
Cheers
Gemma

Pricing recommendations from a professional can save you money!

2010-02-02T22:58:00.003-07:00

So much truth in this link! Read it before you list... I want to be your LAST Real Estate agent...http://www.brokeragentsocial.com/VIPREALTYPLATINUM/blog/4293/

Mortgage Rate Sheet

2010-02-02T20:45:00.001-07:00

Cameron Financial Consultants Ltd.
Rate Sheet as of 01/31/10
**Please note that all rates are applicable for the quoted date. Rates may change, be extended or withdrawn at any
time. Applicants must qualify for the products being offered.
Don’t miss this opportunity to Finance a New home, Rental, Second home, and HELOC!
Term Our Rates Bank Rates
5 Year Fixed Quick Close (30 Days) 3.75%
3 Year ARM Quick Close (30 Days) Prime MINUS .30%
6 Month Convertible 4.60%
1 Year Fixed 2.65% 3.65%
2 Year Fixed 2.95% 3.95%
3 year Fixed 3.50% 4.50%
4 Year Fixed 3.85% 5.14%
5 year Fixed 3.99% 5.49%
1 Year Open 6.55%
5 Year 5% CashBack 5.49%
Courtesy of: Angela Ziniewicz, Mortgage Associate
Cameron Financial Consultants Ltd.
Cell: 403-473-2600
Fax: 403-855-1183
Email: Angela@cameronfinancial.ca

Basement Suites make them safe

2010-02-01T22:48:00.003-07:00

Please take a minute to print this checklist provided by the city of Calgary and determine whether your basement suite would pass inspection... Remember it isn't a matter of saving money it is a matter of life and death. Last year a young woman from Cochrane died because she was trapped in her basement suite during a fire... Please pass this information along to anyone who may be interested!
Cheers
Gemma

CBC Marketplace supports my earlier post on the Real Estate Seminar scams...

2010-01-31T20:23:00.001-07:00

Remember when I said I thought most of these Real Estate investment seminars are scams well... Check this out!!!http://www.cbc.ca/consumer/story/2010/01/28/consumer-rich-dad-poor-dad-marketplace.html?ref=rss

The tide is turning towards a sellers market... for NOW!

2010-01-25T17:59:00.001-07:00

Written by Gemma Beierback

A resurgence in the housing market is just what the doctor ordered for many sellers who have been waiting to get their properties sold and be able to move on. The later part of 2008 and most of 2009 was very slow going for sales in the Calgary and area marketplace. Home values were significantly eroded and many home owners were left in a negative equity position, which either precluded them from selling or forced them to sell at a loss. All indications are the 2010 will be a reboot in the local housing market and it seems to be off to a great start.
Interest rates are still very low and buyers are in the enviable position of being able to profit from both lower housing costs and reduced borrowing costs. A general confidence in the economic forecast is also stimulating buyers. Combine these factors with a listing inventory which has been dramatically diminished and you have a recipe for an emerging sellers market.
Over the past year I have been continually encouraging those people who follow my blog to buy some real estate. I have insisted that this was an opportunity to create wealth through real estate. We know from plentiful historical data that the real estate market does go through cyclical peaks and valleys but the next peak has always eclipsed the previous one. There is no reason to suspect that this cycle will be any different.
Calgary is a strong diversified marketplace with a variety of favourable geographic and economic factors which combine to create a strong real estate marketplace. If we compare property values in Calgary with other major Canadian centres like Toronto and Vancouver we can see that there is still significant value in this market and possible opportunity for beneficial appreciation. I see more and more buyers approaching the 2010 real estate market with excitement and anticipation ready to profit from the reduced prices. There are still good deals available and this is definitely a perfect opportunity to start the process.
In the passed few weeks I have been involved in several multiple offer situations and in speaking to my colleges I am not alone. The market it responding to the favourable selling conditions and buyers are noticing a trending market and taking action. I think it is unrealistic to predict that we are heading back to marketplace similar to the 2006-2007 frenzy. However, it would be irresponsible not to notice the market shift and respond to it accordingly. The economic pundits are predicting roughly 5% appreciation this year in the Calgary and area re-sale marketplace. Sellers beware though, don’t wait to list your house in the hopes of capturing all that appreciation. I predict that the pent up seller demand will explode by the mid point this year and we may see an increase in inventory as sellers who have been on the fence decide the time is right! Get a REALTOR® working for you so that you get the timing right and seize this real estate opportunity whether you are buying or selling.

Gemma Beierback

The Forecast feeds the homeless...

2010-01-25T17:49:00.000-07:00

Written by Gemma Beierback

On Wednesday, January 20th 2010 roughly 1400 members of the Calgary Real estate board converged on the Telus convention centre for the annual forecast conference and trade show. This fantastic event is hosted by the Calgary Real Estate Board for its membership and provides expert panels and speakers on all sorts of topics of interest.
The event begins with breakfast and the presidents speech. This years incoming president Diane Scott was very well received and numerous attendees commented on her wonderful speech. Following the breakfast participants had an opportunity to stroll through the trade show booths and preview a variety of products and services related to the real estate industry; home staging, mortgage lending and virtual tours...
There were numerous breakout sessions throughout the morning including and economic panel, a speakers forum and a technology discussion.
Lunch was a brown bag style lunch box with fruit, a sandwich, a bag of chips and a bottle of water. Once all of the REALTORS® had finished eating the conference volunteers, themselves real estate agents, noticed that many of the lunches had not been used. This is when some quick thinking on the part of the volunteers at the event made sure that there was no waste. The troops quickly rallied and we loaded a car full of lunch boxes and headed over the Mustard Seed to drop them off. The staff were very pleased and the delivery created a lot of attention from onlookers interested in what was in the boxes. Thanks to the generosity and quick thinking of REALTORS® roughly 300 lunches along with additional chips, apples and juice boxes, got to the homeless last wednesday. It isn’t enough to change the world but it may have improved a few lives for a day.
It makes you wonder what happens to all of this left over conference food? There are conventions and conferences everyday and I hope they have the same opportunity to take a few minutes and improve the community. I must say while we were at the Mustard Seed I was touched by the volume of donation traffic making it to the facility. In the short time it took to unload there were numerous Calgarians dropping off donations. It is a powerful reminder of the charity of Calgarians and the misfortune of those who are in need of the services of the Mustard Seed.
I want to challenge you to take a moment to reflect on everything you have in your life and see if you can spare a few dollars, some used clothing or mittens, blankets or sleeping bags or better yet a few hours of your time to share your wealth and fortune with those who have much less. If everyone gave just one dollar that would make a difference. Nothing you have to give is too small. Every donation is a reflection of human kindness and that is the biggest and brightest gift of all!

Interest Rate update!!!

2010-01-21T12:19:00.002-07:00

Central Bank holds Rates Steady

FOR IMMEDIATE RELEASE
19 January 2010
CONTACT: Jeremy Harrison
613 782-8782

Bank of Canada maintains overnight rate target at
1/4 per cent and reiterates conditional commitment to hold
current policy rate until the end of the second quarter of 2010

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the
overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is
1/4 per cent.
The global economic recovery is under way, supported by continued improvements in financial
conditions and stronger domestic demand growth in many emerging-market economies. While
the outlook for global growth through 2010 and 2011 is somewhat stronger than the Bank had
projected in its October Monetary Policy Report, the recovery continues to depend on
exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support
financial systems.
Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked
up further in the fourth quarter. Total CPI inflation turned positive in the fourth quarter and the
core rate of inflation has been slightly higher than expected in recent months. Nevertheless,
considerable excess supply remains, and the Bank judges that the economy was operating about
3 ¼ per cent below its production capacity in the fourth quarter of 2009.
Canada’s economic recovery is expected to evolve largely as anticipated in the October MPR,
with the economy returning to full capacity and inflation to the 2 per cent target in the third
quarter of 2011. The Bank projects that the economy will grow by 2.9 per cent in 2010 and
3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.
The factors shaping the recovery are largely unchanged – policy support, increased confidence,
improving financial conditions, global growth, and higher terms of trade. At the same time, the
persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to
act as significant drags on economic activity in Canada. On balance, these factors have shifted
the composition of aggregate demand towards growth in domestic demand and away from net
exports. The private sector should become the sole driver of domestic demand growth in 2011.
Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its
current level until the end of the second quarter of 2010 in order to achieve the inflation target.
Consistent with this conditional commitment, the Bank will continue to conduct term Purchase
and Resale Agreements based on existing terms and conditions and according to the
accompanying schedule:
http://www.bankofcanada.ca/en/notices_fmd/2010/notice_fad190110.pdf
In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility,
consistent with the framework outlined in the April 2009 MPR.
The risks to the outlook for inflation continue to be those outlined in the October MPR. On the
upside, the main risks are stronger-than-projected global and domestic demand. On the
downside, the main risks are a more protracted global recovery and persistent strength of the
Canadian dollar that could act as a significant further drag on growth and put additional
downward pressure on inflation. While the underlying macroeconomic risks to the projection are
roughly balanced, the Bank judges that, as a consequence of operating at the effective lower
bound, the overall risks to its inflation projection are tilted slightly to the downside.
Information note:
A full update of the Bank’s outlook for the economy and inflation, including risks to the
projection, will be published in the Monetary Policy Report on 21 January 2010. The next
scheduled date for announcing the overnight rate target is 2 March 2010.

Alberta REALTORS® address the issue of Drug houses!

2010-01-13T11:07:00.000-07:00

No Provincial Mould or Air Quality Standards in Place
There are no consistent remediation standards in place for mould or air quality in properties previously used as
marijuana grow-ops or other drug operations.
• Differing Standards: Currently, Alberta municipalities may allow a property to be re-inhabited when local
standards are met. However, the conditions under which a local authority grants re-habitation differ from
community to community. Universal standards for the province of Alberta are needed.
• No Consumer Protection: The potential exists for a property to become ‘sick’ after re-habitation. There are
currently no provisions in place provincially to protect the consumer should this situation arise.
• No Guidelines for Properties that Fail Local Review: There are no guidelines in place to handle properties
that cannot be remediated to the satisfaction of local authorities.
Alberta REALTOR® Position
The province, on its own or in conjunction with the federal authorities, needs to play a leadership role to establish
universal remediation standards for Alberta by:
• Amending building and health codes to create minimum acceptable remediation standards that will assure
Albertans that properties previously used as illegal drug operations are safe for habitation.
• Establishing provisions to protect the consumer in the event a property becomes ‘sick’ after re-habitation.
• Establishing guidelines for properties that fail remediation standards so that properties that cannot be
remediated to the satisfaction of the local authorities are dealt with appropriately.
Alberta REALTORS® Take Action
AREA commissioned local indoor air quality experts Tang G. Lee and Karen Rollins to develop provincial
standards for the assessment and rehabilitation of properties seized due to illicit drug operations.
After much consultation with stakeholders, including law enforcement agencies, health authorities, safety code
officers, environmental consultants, REALTORS® and more, the final report is now ready.
Next Steps
The report, Recommendations for the Assessment and Remediation of Properties Used as Illegal Drug
Operations, will be presented by REALTORS® and AREA representatives to government and industry
stakeholders for endorsement.
AREA Contact
Bill Fowler, Director of Industry & Government Relations
Alberta Real Estate Association (AREA)
403.209.3606
bfowler@areahub.ca
This project is supported by a grant from the Alberta Real Estate Foundation (www.aref.ab.ca).
Suite 300, 4954 Richard Road SW, Calgary, AB T3E 6L1
Phone: 403.228.6845 Fax: 403.228.4360 Toll free: 1.800.661.0231
governmentrelations@areahub.ca www.AREAhub.ca
The Alberta Real Estate Association (AREA) represents the interests of more than 10,500 licensed REALTORS® and 11 local real estate
boards across the province of Alberta.
Illegal Drug Operations Place
Albertans and Their Properties At Risk
October 2009

Real estate market expected to remain strong in first half of 2010

2010-01-11T23:03:00.001-07:00

Real estate market expected to remain strong in first half of 2010

David Paddon, THE CANADIAN PRESS
TORONTO - Canada's residential real estate market is expected to remain unusually strong through the first half of this year after a strong finish to 2009, according to a survey published Thursday by Royal LePage.

The Royal LePage analysis is consistent with other recent reports on the state of the Canadian real estate market, which has rebounded over the past 12 months after sales dried up in late 2008 and hit a multi-year low in January 2009.

The Canadian market's sudden plunge was sparked by a credit crunch that originated in the U.S. housing and lending industries - eventually spreading globally, causing a worldwide recession in the late summer and early fall of 2009However, the Canadian real estate market has been much quicker to recover than its American counterpart, in part because of a more stable banking industry, historically low interest rates and improving consumer confidence.

Royal LePage executive Phil Soper says Canada's real estate market enters 2010 with "considerable momentum from an unusually strong finish to the previous year."

The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity to new highs, he said in a statement.

Royal LePage says house prices appreciated in late 2009, with fourth-quarter price averages higher than in the fourth quarter of 2008.

The average price of detached bungalows rose to $315,055 (up six per cent), the price of a standard two-storey home rose to $353,026 (up 5.2 per cent), and the price of a standard condominium rose to $205,756 (up 6.4 per cent).

Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C.

Vancouver, which is frequently Canada's most expensive real estate market, experienced a particularly robust quarter, with home prices rising across all housing types surveyed.

"No other sector of the economy has been as highly affected by economic stimulus as housing," said Soper.

"As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property."

Royal LePage estimates that Vancouver's real estate prices will rise a further 7.2 per cent this year, although February may be soft because of the Olympic Winter Games that will be held in the city and nearby Whistler, B.C.

Detached bungalows in Vancouver sold for an average of $828,750 in the fourth quarter, up 11.4 per cent from the same period last year. Standard condominiums in Vancouver went up 11.8 per cent year-over-year to an average of $452,750. Prices of standard two-storey homes in Vancouver rose 9.6 per cent year-over-year, selling at $917,500.

In Toronto, the average price of a standard condo rose 2.9 per cent to $309,316, detached bungalows rose 9.9 per cent to $446,214 and standard detached homes increased 3.5 per cent to $564,175.

In Montreal, the average price of a detached bungalow rose to $245,125 (up 3.1 per cent; a condo increased to $216,667 (up 16 per cent) and a two-storey house increased 12.3 per cent from a year earlier to $345,789, Royal LePage said.

The Greater Montreal Real Estate Board reported Thursday that the number of sales last year increased 41,802, up three per cent from 2008. The median price of a single-family home was $235,000 last year, up four per cent from 2008.

"Although sales decreased the first four months of 2009, Montreal's real estate market rebounded and finished the year on a positive note," said Michel Beausejour, the Montreal board's chief executive.

The group that represents Toronto-area realtors reported Wednesday that there were 87,308 transactions last year through the Multiple Listing Service, a 17 per cent increase over 2008.

In December, there were 5,541 sales in the Greater Toronto Area (average price $411,931), up from 2,577 sales in December 2008 (average price $361,415), according to the Toronto Real Estate Board.

The Toronto board also said the number of sales of existing homes rebounded in the latter half of 2009 after a slow start at the beginning of last year.

Royal LePage's average price estimates for other Canadian cities include:

-St. John's, N.L.: Detached bungalow, $217,167 (up 14.3 per cent); standard two-storey house $298,833 (up 14.1 per cent).

-Halifax: Detached bungalow, $238,000 (up 10.7 per cent); standard two-storey homes, $265,333 (up 1.8 per cent).

-Charlottetown: Detached bungalow, $160,000 (up 1.9 per cent); standard two-storey $195,000 (up 3.7 per cent).

-Saint John, N.B.: Detached bungalow, $228,000 (up 1.3 per cent); standard two-storey $299,000 (up 1.5 per cent).

-Moncton, N.B.: Detached bungalow, $152,300 in the fourth quarter (up 1.5 per cent); standard two-storey home, $131,000 (up 4.0 per cent)

-Fredericton: Detached bungalow, $182,000 (up 12.3 per cent); standard two-storey, $210,000 (unchanged).

-Ottawa: Detached bungalow, $332,417 (up 3.4 per cent); standard two-story home $331,917 (up 3.7 per cent).

-Winnipeg: Detached bungalow, $241,650 (up 9.9 per cent); standard two-storey home $275,500 (up 10 per cent).

-Edmonton: Detached bungalow, $299,286 (down 0.7 per cent); standard two-storey home, $340,557 (down 1.2 per cent)

-Calgary: Detached bungalow, $412,478 (up 0.5 per cent); standard two-storey home, $427,067 (up 2.3 per cent).

Staging outside your home! Link!

2010-01-06T21:20:00.002-07:00

Teaching at the Real Estate Board...

2010-01-06T19:26:00.002-07:00

I have been teaching the rural real estate program for over a year now at the Calgary Real Estate Board and at Mount Royal University (I like to joke this makes me a university professor)... I get such a rush from teaching it has truly become a bit of a passion for me. Today I had my largest class to day with 32 learners and the residential class next to us (which will eventually be taking my class) has 36 learners... This is an exceptional barometer of the Real Estate climate as last year we had very few learners in our classes... Clearly those people thinking of getting into the industry are feeling far more confident about where things are going.
I really feel confident that the calibre of industry member is very high having seen numerous new real estate professionals coming through the program. I am really looking forward to meeting them in the market place and getting to do business with them!

Is it possible 20% of the inventory isn't even available?

2010-01-04T15:09:00.003-07:00

As of this very second there are 3277 listings on the market in Calgary. That might seem like a big number but it is well below average. I generally expect to see as many listings as agents. There are over 5000 REALTORS with the Calgary Real Estate Board and a normal number of listings in Calgary is usually around the 5000 mark. In 2008 at the bottom of that lull in the economy, we had about 9000 listings on the market and at the peek in 2006-2007 we were down to 900. So, what it means to me is that we are probably on the cusp of a sellers market. I have been shouting for about 8 months that if you didn't act fast you might miss the boat and I still believe that. I don't think we are heading back to the frenzy of late '06 early '07 but quite possible we will see significant appreciation this year, driven by low inventory!
So what does the title of this entry really mean; "20% of the inventory isn't available"? Well in the past couple of weeks I have been very busy with buyers. I realize it is the week after Christmas but when a buyer is ready, they are ready. I have been shocked and disappointed to find that when I am booking showings there is a large portion of Real Estate agents that are not returning showing request calls! WOW!! I am shocked and disappointed!
In fact the way the numbers have added up since Christmas about 20% of the agents I call don't call back at all...I left 6 messages on 3 different numbers for one agent over the course of 3 days and never even got a response!
I have to wonder if the sellers realize that their house is only on the market in principal because other agents are unable to show it without confirmation from the listing agent.
If my findings are representative of the greater population it means that in essence there are only 2621 listings on the market in Calgary as the balance, over 600 listings, are not being represented so it is basically impossible to get access and show them to buyers!
Now if I am a seller in this market, I want to make sure I am listed with an agent that is booking showings. The market is busy right now, sellers need great representation in order to get maximum exposure and a sale! All the advertising in the world can't sell your home if the buyer can't get inside!
There are exceptional Real Estate Professional in Calgary, there are many of them... Make sure you work with one!

Are all these Real Estate Investment Seminars Legit?

2009-11-28T14:25:00.002-07:00

You know what I'm talking about. There is an abundance of companies/individuals now that are promoting themselves as Real Estate investment guru's. This is obviously profitable for them as they can spend thousands on advertising their "free" events. I know your mama told you this..."If it looks too good to be true it probably is." This still stands to reason even as adults.

I get calls, periodically, from people asking me questions about Real Estate that are clearly canned questions they learned in the latest seminar. Now don't misunderstand, there are some excellent Real Estate investment organizations out there. I have clients who are members of these organizations and enjoy the networking and idea sharing. Of all of the seasoned and successful investors I have ever dealt with none of them have been products of the get rich quick seminars, none of them!

Don't become the unsecured money source for someone's get rich quick scheme, we have seen in recent months more than a few of these companies/individuals leaving their investors out in the cold! GET EDUCATED AND TAKE CONTROL OF YOUR MONEY!

Here are a few things to watch out for:

1) Many of these programs are built out of an American Real Estate model... Canada is VERY VERY different and in fact each province has different legislation so make sure you are talking to a local expert, ask them where they invest, why and how and who finances them.

2) My favorite "Buy real estate with no money down"... Let's think about that for a minute. Is it possible, YEP... Does it happen very often? NOPE! It used to be quite easy to do this, however, it is much more complicated now. In Alberta, as an example, you could at one time assume mortgages without qualifying, that is no longer the case and in fact, even if you qualify to assume many of the lenders are still stipulating a down payment aspect as a component of that qualification. Can you buy property using someone else's money...YEP and that would mean no money down for you RIGHT... but honestly if you are a rookie you will likely find it difficult to find backers who are willing to invest in your Real Estate ideas. There is also the vendor take back (or seller financing option)... However this may influence the financing decisions of your other lender(s). Lending is about security, and if you fail to disclose vendor financing in your application you are committing fraud and assume HUGE liability...

3) Foreclosures... This is a big one. Here are a couple of myths. Foreclosures are sold for the mortgage amount only (WRONG), Foreclosures are always a great deal (WRONG), People facing foreclosure will be happy to sell their home to me for below market value and I can make a quick profit (GENERALLY WRONG).

- Once the bank has the property for sale it is required to have a professional appraisal and a Current Market Evaluation, the mortgage amount outstanding is not considered by either of these professionals. In fact think about a bank owned property more like a relocations firm owning a property. It is a similar process, Appraisal, Market Evaluation and Pricing all go together and can be re-evaluated after a period of time but in general are not a FIRE SALE!

- Sometimes Foreclosures are sold for below market value however consider that the bank owned property generally comes with NO warranty, NO representation, NO real property report and in many many cases is marginally/VERY distressed. In many cases offers are only accepted when unconditional, you have to be prepared to shoulder a burden of risk in order to save the money.

- Sellers /owners who are facing foreclosure are likely in a serious level of financial distress and as such my observation has been that when they attempt to sell their property prior to the bank taking ownership they often price it in an unrealistic fashion because they have other financial obligation to cover as well.

All that being said is it possible to make money investing in Real Estate? Absolutely... Real Estate is an excellent investment, but it comes with risk and your best protection, especially when you are getting started, is to find a professional Real Estate Agent and ask a lot of questions. Don't assume that you will get a better deal going it alone.

So my tips to starting out investing in Real Estate.

1) Go and get an idea of what your financing options are. Do you want to do an equity take out of your home to use to purchase something else? How much of a down payment will the lender require, how much will you qualify for? Ask a few lenders or mortgage brokers for their opinions and experiences with investors.

2) Once you know what you can afford decide where you want to buy and for what purpose. Do you want a rental or a flip and where in terms of geographic location or community, you might want it to be quite close for the first one so you can keep an eye on it.

3) Get professionals involved. Real Estate Agent, Mortgage Broker, Home Inspector, Lawyer, renovator etc... Find professionals that you trust so you can work quickly and efficiently to get a good deal.

4) Be realistic and anticipate risk. Can you afford to be without a tenant for a few months, how much will the flip cost and what is the upside potential?

If you want to start out investing and want some solid information please don't hesitate to call me!

Cheers

Gemma

Time to sell? Or Buy?

2009-11-20T09:46:00.002-07:00

There are a few fantastic deals out there at the moment and if you know where to look and what value is this might just be the best time in years to get a great deal. Super interest rates, quality inventory at prices significantly below 2007 prices...A recipe for buying success! If you want quality real estate guidance don't hesitate to give me a call! 403-813-0879

Political Action in Real Estate

2009-11-19T14:08:00.002-07:00

Earlier this year I was in Ottawa for PAC days. The real estate industry has been actively lobbying the government to make changes to the home buyers plan. The plan that allows you to use RRSP money as a down payment on a home. We want all Canadians to have the ability to use RRSP money as a down payment, not just first time buyers. This year we did see a little success with the plan increasing in the last budget from $20k-$25k, now we want it indexed to inflation.

We are also asking the government to allow for capital gains rollover for reinvestment in real property within a 12 month period.

In any case I got to meet the PM and that was exciting!

There are some really great buys out there!

2009-11-19T08:01:00.005-07:00

If you are interested in getting a good deal this is still a good time. Prices are still competitive and in some cases really low.

Click on the title of this entry to check out the web commercial for a couple of my listings! We want these sold!

Gemma

Inventory much lower than a year ago

2009-11-18T12:57:00.004-07:00

Inventory levels have dropped considerably over the past year and the market has strengthened slightly. In fact there almost half as many listings in the Calgary area now that there were a year ago. That doesn't mean we are expecting prices to start climbing like crazy BUT we can now breath a sigh of relief that the dramatic equity loses in the Calgary houses market are over!

There are still some great deal out there though!

Gemma

More good news

2008-11-20T21:43:00.003-07:00

Further to the Todd Hirsch commentary below here is an little article with more good news in it! YIPPPEEEEE!!!

I hope you can zoom in to read it but to highlight Todd's Economic Comment:

"Residential Construction activity gives one of the best indications of the overall health of an economy...the slowdown in Alberta's economy seems to be leveling off."

"Housing starts in Alberta on a per population basis are still stronger in the province than they are in Canada as a whole."

So if you read my synopsis of Todd's talk at ATB on Wednesday and you realize that rates are hitting super lows that may not last past early spring my only question is WHAT ARE YOU WAITING FOR? BUY!!!

More good news on the economy...

2008-11-20T21:05:00.003-07:00

Thanks to the Rocky Ridge ATB (403)208-4071 for hosting this fantastic evening. WOW Todd Hirsch, Senior Economist with ATB was a real breath of, economic, fresh air in what is, increasingly, a stiflingly negative environment.

It was great to get a professional prospective; always more insightful than the media rhetoric.

Todd pointed out that although it is easy to hype where we are now, compared to where we were in 06/07 in Real Estate and earlier this year in Oil it is important to remember that those peaks were NOT normal, not sustainable. As Todd put it 'that was Disney Land and now we have to get back to reality'. The reality is that the equity markets also spiked and were out of line with reality and now they have plunged to temporary lows. There are buying signals all over the place at this point and I still strongly believe that 2008-2009 will be remembered as the opportunity window, certainly for those of us between 20-50...We are still able to make some long term investment commitments and wait patiently for the rebound.

Todd predicts that the US will hit bottom (the bottom of the seemingly endless bottom) in the Real Estate market in Spring 2009. Once the US market settles out a general stability will follow. He made a great point, a painful point but a great point...A recession is a good economic wake up call. I know it has changed some of my strategies for saving and spending (OK so I only had a strategy for spending and I now have one for saving too...). I think the timing of this slow down probably saved many young Canadians from finding themselves in the same financial position as their southern neighbours. The economic boom and flowing cash spin off had many people buying fancy cars and toys before the focused solidly on building equity in their first home and building a nest egg, and getting an education. We are fortunate that we have an opportunity to stop the consumer debt freight before it hit the wall.

Todd also spoke briefly about the Asian situation. Although that economic Goliath has slowed it is still just shy of double digit growth figures, these are not typical growth figures...Yes they have slowed...but to 8% growth, from 12%...Let's have a little perspective for a change! China is stimulating that economy with lowering interest rates, they need growth to carry them through a new wave 'industrial revolution' episode of in migration to cities.

Speaking of interest rates Todd suggested he felt we will see a further rate reduction in the beginning of December by possible .5%, however he predicted that by the spring as things settle across the board the need to increase rates will mean that rates will start to climb slightly.

Overall this was a fantastic presentation and as always I am constantly seeking opportunities to hear the best and brightest give their views on the current situation and their crystal ball predictions for the future!

Interesting facts

2008-11-13T13:57:00.002-07:00

Just crunching some numbers as the Real Estate Board doesn't crunch these kinds of numbers for each small centre.
You can see what I found below but most interesting sales increased 100% between 2000 and 2001 and remained pretty much steady through to this year. However in 2000-2001 the average sale price of a home only increased 1%. Conversely, 2007-2008 saw a 25% drop in listings but a 2.5% increase in average sale price! Hummmmm!

Cochrane Stats for past 9 years

2008-11-13T13:51:00.000-07:00

Cochrane’s Real Estate Market:
A historical perspective
November 8, 2008

2008 Year to Date (YTD)
Sold: 268
Average Days On Market (DOM): 65
Average Sale Price: $434,752.00
Average List Price: $453,203.00

2007 YTD
Sold: 364
Average DOM: 45
Average Sale Price: $423,978.00
Average List Price: $432,472.00

2006 YTD
Sold: 367
Average DOM: 26
Average Sale Price: $360,571.00
Average List Price: $364,276.00

2005 YTD
Sold: 385
Average DOM: 63
Average Sale Price: $255,729.00
Average List Price: $261,274.00

2004 YTD
Sold: 360
Average DOM: 52
Average Sale Price: $237,610.00
Average List Price: $242,547.00

2003 YTD
Sold: 354
Average DOM: 60
Average Sale Price: $224,499.00
Average List Price: $229,306.00

2002 YTD
Sold: 358
Average DOM: 53
Average Sale Price: $208,218.00
Average List Price: $212,294.00

2001 YTD
Sold: 313
Average DOM: 75
Average Sale Price: $194,105.00
Average List Price: $198,913.00

2000 YTD
Sold: 157
Average DOM: 46
Average Sale Price: $192,230.00
Average List Price: $196,400.00

2008-10-25T16:45:00.000-06:00

Media Hype

2008-10-10T22:34:00.000-06:00

In the past few years I have been increasingly drawn to the notion that the mass media seems to create, not report the majority of the news. Certainly this conspiracy theory isn’t new but until the Real Estate explosion in 2005-2006 I was blissfully unaware of how misguided the reporting could be.
While Calgary experienced Real Estate mania a couple of years ago I was struck by how delayed the media reporting was about what was actually happening in the market, and equally confused when they continued to report a boom when we had already begun to return to a balanced market. Even more shocking was in the later part of 2007 when the media began to hype the idea that the ‘bubble’ was about to burst. In fact at that time we were certainly experiencing a very balanced market with confident economic and financial conditions (at least in this country). However like lemmings we have managed to follow to media to a self fulfilling prophecy and a buyers market. Sporadically there will be reports of increasing prices and activity but only to keep us on this media rollercoaster.
The slumping financial markets have added fuel to the media fire and I am again left questioning how much of this hysteria is actually created by bad media coverage. If someone tells us something long enough are we likely to believe it at any cost. As a new years resolution last year I pledged to stop listening to talk radio in an attempt to find a positive instead of negative focus for my energy. It helped, instead of focusing on all the bad in the news I focused on the reality; what was actually happening in my real life, the things I can actually control. If the stock market plunges I can’t fix it so I shouldn’t worry about it. I get the information I need to make informed decisions, but that information doesn’t come from talk radio or the media at large; I ask professionals in these areas about their thoughts, predictions and opinions. I want the facts not the hysteria.
It is time we take back control of reality. Instead of following, believing, panicking every time reporters demand that of us we need to take stock of what we are living and find comfort in that. Staying informed is very important however think clearly about what sources you use to get your information; the old saying “don’t believe everything you hear” rings true. Ask questions, seek experts and professionals and ask their opinions, think critically and rationally be an informed consumer not a hysterical lemming!
Here is the first step for you: Real Estate FACTS!
Cochrane Real Estate Year to Date: Sales 257, Median List Price $424,900, Median Sale Price $424,500, Median Days on the Market 51.
Cochrane Real Estate same period in 2007: Sales 339, Median List price 409,900, Median Sale Price 402,500, Median Days on the Market 36.
So is it really that bad? Sales have dropped 25%, but the prices have remained fairly steady with a slightly longer marketing time. However sales have actually doubled since 2000 when in the same period only 124 homes sold with a median list price of $174,900 a median sale price of $173,000 and 36 days on the market.
Real Estate continually proves it is a good investment. Don’t get left behind!

40 year~0 down still available!!! HURRY!

2008-09-12T12:21:00.000-06:00

On July 9, the Department of Finance announced adjustments to the rules for government guaranteed mortgages aimed at protecting the strengthening the Canadian housing market. CMHC supports the new parameters and the government’s ongoing efforts to maintain a strong Canadian housing market.Consistent with the government’s direction, CMHC will no longer be accepting mortgage insurance applications for 40-year amortizations or 100 per cent loan-to-value mortgages on or after October 15, 2008. Those mortgages with a 40-year amortization and the 100 per cent loan-to-value mortgages already insured by CMHC are not affected. CMHC mortgage insurance coverage on these mortgages is good for the entire life of the mortgage. Other mortgage insurers including Genworth and AIG will follow suit.However, CMHC and other mortgage insurers will continue to offer mortgage loan insurance for amortizations of up to 35 years and up to 95 per cent of the value of the property, and will continue to offer a wide range of innovative products that meet the needs of borrowers. Another program that will allow purchasers to buy a home with zero down is called Flex Down. This program allows purchasers to put 5% down from borrowed funds from a personal line of credit or a loan from family or lender cash back incentives from the Mortgage Lender or Bank. This option works well and actually is better than zero down as the mortgage amount is reduced by 5% and at renewal time, the loan can be placed into a regular mortgage at prime rates, based on qualifying.What this all means to individuals and families that are looking at buying or refinancing their homes in the next few months need to get organized now. Although most lenders are already reacting to the Government’s announcement, there are still lenders that are offering 40 year amortizations and zero down mortgages. This can be retracted at anytime by the lenders, but as of the date of this publication, they are still available.The guidelines are that the application for the mortgage along with the offer to purchase is submitted to the lender by the Bank or Mortgage Specialist on or before October 14, 2008. If you are already pre-qualified with your Lender or Bank, your offer should be put in with the MLS listing and Offer to Purchase with your Realtor as soon as you have completed the agreement with the Seller.Clients that have already qualified and have mortgages in place with 40 year amortizations need not worry. If you have already qualified and your mortgage is in repayment, you are not affected by the reduction in amortizations from 40 to 35 years. Once you mortgage renews in say 3 years from now, your mortgage company or your Mortgage Specialist can shop the market for your renewal and rate. The mortgage from that point on would be calculated on 37 years left to repay at the renewal mortgage interest rates. Should you wish to refinance your mortgage now on a high-ratio basis over 80% of the value of your home, you will be capped at a maximum of 35 years to repay.With any questions regarding your mortgage, please feel free to contact Kevin MacGregor with Home Loans Canada 403-852-2908 to see what options are available to you on renewal of your current mortgage or to use your home equity for improving your current home or investment.

Organizing your Mortgage Documents

2008-09-12T12:04:00.001-06:00

There are two categories of documents that the lender will require; income and down payment. As a component of income verification the lender will need to determine whether you are employed or self employed.
If you are salaried or paid hourly, you should provide 3 pieces of information to confirm your annual income. You should have a job letter that confirms your position, income and start date, a recent pay stub and your current years T4 slip or your NOA, notice of assessment from your tax return. If you have regular overtime and annual bonuses, these can be used for qualifying purposes, but a two year average would need to be provided to confirm they happen regularly.
If you are self employed, commission paid or on contract, the lender will look to see that you have a least 2-3years in your line of work and the track record to confirm the worthiness of your business or a record of earnings. You will be asked for a recent years T1 general tax return form, NOA’s, business license, articles of incorporation and information of what your business does. Recent changes with the mortgage insurers allow the self employed to qualify with a little as 5% down from their own resources and will extend the amortization beyond 25 years if desired.
Since the lender will not have direct access to your banking information, they ask for printed statements of your accounts. Normally they need 3 months of bank statements that have your name and account number on them. If you have savings in RRSP’s or investments the lender will need your most recent quarterly statement. Gifted monies from an immediate family member is also permitted for a down payment on your new home; a gift letter and the deposited funds are also legitimate as a down payment.
Dealing with a mortgage specialist, mortgage broker, means you have access to over 30 lenders and all 3 mortgage insurance companies. Mortgage Brokers are Mortgage specialists and they deal solely in Real Estate lending, they are experts on getting people mortgage funding that suites their needs.
In most cases the mortgage broker is paid directly by the lender and as such no additional fee is incurred by the borrower, In any case all fees are required to be fully disclosed to the borrower by the mortgage broker. Mortgage specialists are also flexible with their hours and when you have a busy work schedule of your own it is nice to know that someone will be available to meet with you on evenings and weekends and in many cases in your own home.
The mortgage lending market, just like the housing market, is constantly changing. You want to make sure that you are working with a mortgage specialist and that you are well advised when choosing your next mortgage.
Thanks so much to Kevin MacGregor, Mortgage Specialist with Homes Loans Canada for helping craft this information; as usual Kevin is a resource I know I can always count on. You can contact Kevin at 403-852-2908

Motgage 101

2008-09-12T12:03:00.000-06:00

Starting the journey to home ownership or looking into the possibility of upgrading your current home is an exciting time. Whether you’re preparing financially, searching for the right mortgage, going through the mortgage process or looking for savings a mortgage broker is a valuable resource.
With all the options available in the mortgage market place you need a professional to guide you to the right product to meet your borrowing needs. Mortgages have changes tremendously over the years with new options and lenders coming and going. You need to be informed and prepared and a professional mortgage broker is definitely the right resource to use. Here are a few hints to help your mortgage approval process run smoothly. If you’re looking for a professional mortgage broker to guide you call Kevin MacGregor with Homes Loans Canada at 403-852-2908.

Determine how much you can afford: Based on your down payment, income, existing debt, regular expenditures and other key financial information a mortgage broker can help you determine how much you can afford to pay every month and the price range that will work within your budget.
Get pre-approved…properly: Pre-approval and pre-qualification are different, the pre-approval process is a more formal process you will need to provide 3 key pieces of information; your income verification, proof of funds available for your down payment and your credit report. The three key ingredients allow your mortgage professional to determine your budget and credit worthiness.
Be Organized: By having all of your paperwork and information organized, your lender can make and easy analysis to determine what you can qualify for. With all the changes in the mortgage lending market it is important to have all your ‘duck’s in a row’. Being well qualified will save you heartache when you find a home you love but find that your funding is insufficient to purchase it.
Understand your credit rating: The mysterious credit rating is something most buyers don’t completely understand. Canada has 2 credit agencies Equifax and Trans Union; either of these agencies can generate your FICO score, commonly known as your credit score. Equifax Canada uses a range of scores from 300-900. Generally for credit qualifying lenders are looking for a higher number. Lenders will consider applications for the best rates with scores ranging from 580 or more. Below 500 means you have some missed payments, collections and credit difficulty. Your mortgage professional can offer you advise to improve your score as this will qualify you for better rates. If your score is in the mid range from 540-650, you are doing OK but may have some minor blips in your credit report. 650+ means you will qualify under most lender and mortgage insurance programs. You can obtain your own credit report online for a small fee at www.equifax.ca. It might be worth checking your current credit rating if you are thinking of buying in the next year so that you can try to improve your score if necessary.

Next Week Organizing your Documents

Cochrane Labour Day Rocks

2008-09-12T12:02:00.002-06:00

Cochrane really shines over the Labour Day weekend, even when the weather doesn’t cooperate. We kick it all off with the well organized, well attended rodeo, followed by the famous and funny outhouse races and round it all out with a parade that is truly fun for the whole family.
Rain or shine volunteers, participants and spectators take in the festivities. An incredible amount of time and energy goes into pulling Cochrane’s Labour Day weekend together and amazingly it all orchestrated by volunteers. As a proud member of the Cochrane community I’d like to thank everyone who contributed this weekend. Extra Kudos goes to the volunteers who worked outside on the rainy and cold Sunday and managed to keep a positive attitude and a smile on their face.
I am always proud to call Cochrane my home. Cochrane is a safe, clean community in one of the most beautiful parts of the world. It isn’t the location and the amenities that make Cochrane shine; it is the people. Despite the pressures of growth Cochrane maintains that ‘small town feel’. It is often easier to dwell on the problems that growth brings to a community but if we stand back and look at the incredible abundance around us we must take a moment to focus on all the good that happens in Cochrane.
I have had numerous opportunites to witness firsthand the generosity, of wealth and spirit that always seems to rise when someone is in need. How many other communities could raise hundreds of thousands of dollars to help those displaced by a closed trailer court? Wherever there is a need the great people of Cochrane find the capacity to fill that need!
The commitment of volunteers in the community is the strongest asset Cochrane has to offer. It is the people after all that make the community. Whether people choose to live here because they already espouse these generous views, or whether watching others in the community acting with genuine compassion is the catalyst for further generosity is hard to tell but the result is a real ‘home town’.
I am proud to call Cochrane home and I am grateful to all the volunteers who continue to make this the best place in the world to live.
I want to know what makes you proud to call Cochrane home! Email me at info@realgem.ca with your story before September 30th and your name will be entered to win a pair of tickets to the Lenny Kravitz concert on November 1, 2008.
On October 1st, one of my impartial children will pull a winning name out of the hat! This is your opportunity to brag about Cochrane…Don’t be shy…

On an Tangent

2008-09-12T12:02:00.001-06:00

Yesterday afternoon I was out with clients showing property. These clients have a delightful 5 year old son who loves chatting with me. He asked if he could ride with me to our next property and as I have a booster seat in my car we agreed that would be just perfect. On our short trip to the next home we chatted away and then he asked; “Gemma, did you go to work today?” I paused reflectively and responded “This is my job, I’m working right now” he said “You look at houses for your job?” “Yes” I said, “I have a great job don’t I?”
We finished the rest of our viewings and as I drove the 45 minutes it took me to get home I reflected on our brief exchange. I thought profoundly about how truly fortunate I am to have found a profession which I genuinely enjoy and which affords me the opportunity to meet such wonderful people. One of my goals in life has always been finding joy in my work and thankfully I do. I tell my children it is easier to be great at something you love than to fake it.
Of course not every day is a pure blissful occupational delight but even in the midst of a challenging negotiation or trying transaction I still love what I do. There are many times when I spend an entire day with clients and it feels more like a day with good friends; we laugh, we chat and generally enjoy each others company. In many cases my clients do become good friends with whom I have ongoing, lasting friendships.
It isn’t only the clients that make this such a fabulous profession but also the other Real Estate Agents that I encounter day to day. There have been numerous occasions when other REALTORS® have gone out of their way to help me. There is a true sense of camaraderie that branches across the various brokerages. Working with such wonderful professionals makes it easy to be proud to be a REALTOR®.
For the balance of my journey home last night, I reflected on some of the other tasks that Real Estate often entails, funny little things that you don’t necessarily consider in the standard job description. There have been times when I have carried babies so mom and dad could look more carefully at a home. I have cleaned up my share of pet accidents in the course of showing or open housing property. I’ve noticed leaks while showing and shut off the water so that the other agent could alert their client and no further harm would come to the home. There are hundreds of funny stories and I tell my clients that when I retire I am going to write a tell all book…of course I’ll have to change names to protect the…innocent!
That short conversation with such a little boy made me reflect on my gratitude to my clients and colleagues for everything they do to make my life more joyful, entertaining and full…Thank you all, for making real estate such a great job!

Getting Ready to Buy Part 2

2008-09-12T12:01:00.000-06:00

Shopping for your new home is exciting but once you have decided which property you want to buy you need to make some important decisions; how much will you offer, when would you like to take possession, how much of a deposit do you have available, what conditions do you need and are there any other matters that need to be addresses in the contract?
Paramount is the availability of a deposit to accompany to offer. This amount is deposited into the seller’s Brokerages trust account no later than 2 business days after receipt of the deposit, which general goes with the offer or a day or so afterwards. The size of the deposit can influence the seller’s decision to work with an offer. It is security for them that you are going to complete the transaction once you have removed all of your conditions. If you are unable to remove your conditions you do get the deposit beck however if you waive all of your conditions you would loose the deposit to the seller in the event you failed to complete the transaction.
Your offer price should be carefully considered. If you have done your homework and you are working with an experienced Real Estate professional then you likely know what the property is worth and what you should pay for it. Your REALTOR® will be your negotiator and advocate. You always expect to get a counter offer, it is rare that an offer is accepted as written however at some point you have to concede satisfaction with the offer and that will likely mean a bit of give and take on the part of both buyer and seller. The possession date is one of these points of give and take and often has as much significance to the seller and buyer as the price. Be prepared to give a little to get what you want.
When you went through the home prior to making an offer you should have made a list of chattels (unattached goods) that you want to include in the offer. These include appliances, window coverings, sheds, hot tubs, even area rugs or sometimes specific furniture. This list needs to be very specific so be diligent.
You will need to talk to your REALTOR® about various conditions that may be necessary. In the case of the majority of residential real estate contracts these conditions are fulfilled prior to a specific date within 1-2 weeks of when the contract is initially written. Conditions may include; financing, home inspection, review of the condominium documents, lawyer’s review… It is important to remember conditions need to have a specific objective to be performed to the satisfaction of a specific party to the transaction prior to a specific date. Terms on the other hand are more along the lines of special requests or instructions and may include things like; the seller will have the carpet professionally cleaned prior to possession, or the alarm system contract is to be terminated at the seller expense prior to possession. Your recourse in the event these specific terms are not met is varied and you should consult your lawyer if you have concerns about the enforceability of the contracts terms.
Next week Making the offer subject to the sale of your home…

Getting Ready to Buy Part 1

2008-09-12T12:00:00.000-06:00

When you begin to contemplate purchasing a home, whether it is your first home or you are a seasoned buyer you need to make sure you put all the essential pieces of the process in order to facilitate a smooth and successful process.
There are a multitude of factors to consider, and for most people the primary factor is budget. You home buying budget may be determined by your lender telling you how much money they are willing to provide in financing or it may be dictated by your own personal goals and aspirations, perhaps downsizing. Regardless of you personal circumstance a solid financial guideline is a logical starting point.
Once you have established how much you intend to spend you should sit down as a family and write a list of priorities. What is most important to you and what are you willing to compromise on? This list will be very unique to your family. Consider whether you are willing to move your children to a different school? If you are moving from an existing home what is the motivator; size, location, yard, age? Is there another factor influencing your decision, perhaps a disability that would make living in a bungalow a lot more convenient? If schools are important you need to recognize that certain areas are in certain school catchment areas and in order to guarantee your child’s spot in their desired school you need to reside in that area. You also need to decide if there is a certain minimum size, number of bedrooms, bathroom or parking space.
Once you have your list of must haves, would likes and can live with outs you are ready for the next step. Call you REALTOR® and make an appointment to sit down together and go over all of this homework you have completed. Your real estate agent will be able to set you up on a personal search database that will direct you to appropriate properties that match up with your requirements.
You need to go through these properties and decide which listings are of most interest to you. Start out by looking at 4-6 properties at a time with your REALTOR®, more that that can become a blur. You may need to take a few separate outings with your real estate agent in order to see all the properties that interest you. Likely your REALTOR® will also direct you specifically to the properties that they think will be most suitable for you.
The final step in the house hunting process is determining which property you are going to pursue by way of an offer. You will want to create a short list out of the homes that you have viewed and consider going back for a second viewing if necessary. Pick the property that most suits your needs and sit down with your real estate agent and begin the paperwork. You’ll need to consider offer price, included goods (i.e. hot tub? window coverings? Etc.), possession date and what conditions and terms will need to be included in the contract.
Next week we’ll talk about terms and conditions so stay tuned!

Frustrated Sellers Take Heart

2008-09-12T11:59:00.000-06:00

This is a very challenging Real Estate market for both REALTORS® and sellers. There are fewer buyers, prices have softened and the average days on the market has sky rocketed…Sellers are frustrated because their house is no longer worth the peek values of last year and they are finding it frustrating to be on the market for such a long period of time with few, if any showings. REALTORS® are trying every avenue available to secure showings and offers for their clients and in many cases with no results. There are just simply fewer buyers and those buyers that are out there are in a great position, they get to take their time and be very picky. The knee jerk reactions of many frustrated sellers is to point the finger of blame at their Real Estate Agent…If a seller expected multiple offers and numerous showings in the first week or two of their listing then they are likely very, very frustrated.
The reality is that much of the marketing that Real Estate agents put in place takes many weeks to get rolling. Of course you don’t notice this delay in a vigorous market because the lawn sign and the MLS® are enough to generate interest, however in a market where buyers need to be found the other advertising avenues need to be fully exploited. There are several very successful highly acclaimed monthly Real Estate magazines that do actually attract buyers, however as they are monthly and the print deadlines are a couple of weeks before they hit the newsstands there is a feasible 6 week lag where a new listing is simply unable to appear in this publication. The weekly publication has a delay as well. Ad copy is due at the latest 2 days prior to the paper going to print, so if you miss that deadline by listing the next day it will be over a week before your listing appears in the paper. Virtual tours, glossy brochures, video tours and REALOR open houses all take time to plan and implement… There is also the time that it realistically takes in this market to achieve showings and get feedback. The majority of buyers have a house to sell so, although they may love a property, they are in limbo waiting for their own home to sell. Many factors contribute to a lengthening marketing time and certainly none of those factors are a Real Estate agents disinterest in selling the home.
As a seller you need to truly think like a buyer. What factors attract you to a home? Likely price is a big one and if you are suffering from a lack of showings or simply a lengthy listing period with no offers you need to seriously reevaluate the properties pricing.
If you’d like to read other articles from previous issues or comment on them please visit my BLOG, go to www.realgem.ca and click on BLOG.

Click on graph to see where Real Estate has been since '05

2008-07-02T14:27:00.003-06:00

Calgary Real Estate Board Stats~click on picture to view~

2008-07-02T14:21:00.003-06:00

Buying a house subject to Selling your home!

2008-06-27T11:20:00.001-06:00

Clause Offers:
One of the most confusing aspects of a Real Estate Purchase contract for both buyer’s and sellers is the concept of the ‘clause sale’. A clause offer is an offer to purchase which considers the sale of the buyer’s home as a condition. This differs substantially for a ‘conditional offer’ and this is the basis for the confusion. Typical conditions such as financing or home inspection have a relatively short turn around. The buyer writes the offer, the seller accepts the offer and within a matter of days the buyer either satisfies, and waives, conditions and the home is sold or the buyer is unable to remove conditions and the home is actively back on the market again.
When a condition for the sale of the buyer’s home is considered it is unlikely that the process will be completed in mere days; unless of course the buyer already has an offer on their home in which case the condition for the firm sale of that home is typically handled in the same way as other conditions. However in many cases the buyer doesn’t even have their home on the market yet, as a result a longer timeline is required… possibly months into the future.
The seller would be very reluctant to take their home off the market for months at a time and have it appear as conditionally sold in order to wait for a potential buyer to sell their home. The seller would lose months of marketing time, miss other buyers and accrue carrying costs all to the benefit of the buyer and with no recourse to the buyer if they were unable to sell their home. The solution to this situation is the ‘clause offer’. The buyer writes a standard offer, a schedule is attached which outlines the framework for the sale of their home…including asking price, location and brokerage information. The schedule also outlines the responsibilities and obligation of the seller. The seller is permitted to continue to market their home ‘for sale’ as an active listing. They are also permitted to have the property shown and even entertain other offers. However the schedule provides the buyer with a notice period. If the seller accepts another offer (conditional upon the first offer falling through, of course) then the buyer has usually 24/48/72 hours to either remove ALL of their conditions and create a firm sale (SOLD) or lose the house and allow the seller to proceed with the new offer.
In essence the ‘clause offer’ allows the buyer a first right of refusal should another offer come in (regardless of the price or terms in the other offer). It also sets out the purchase price and terms so the buyer knows what they are paying for their new home and can appropriately handle the sale of their existing home. However don’t be disappointed if you get your heart set on the house you have written an offer on and someone else buys it out from under you…until you have a conditional offer or a firm sale there is always the possibility of losing your dream home!

Buying in a buyer's market!

2008-06-27T11:18:00.000-06:00

It’s a Buyer’s Market…So Buy Something!
By Gemma Beierback
It wasn’t that long ago when buyers were screaming that the greedy sellers were pricing them out of the market. As prices steadily escalated and sellers could seemingly get any price for their home buyer’s became increasingly frustrated with the whole process. However buyers still lined up around the block to look at property and forked out many thousands of dollars over the asking priced in the hopes of being the successful offer.
Fast forward 18 months…inventory has more than doubled, prices have softened and properties are staying on the market for a much longer period of time. Now it is the seller who is in competition for the buyer. Sellers are presenting a better, cleaner, tidier home at a much more competitive price in order to attract the smaller pool of buyers.
After many years to the contrary buyers have all the power. Logically buyers would be excited and eager to get involved in the Real Estate market and realistically many prudent well informed investors and home buyers are eager to snatch up property they know is priced to make them money in the long run. However there is still a segment of the buying public hopeful that prices will return to 1990 levels and unwilling to recognize the good fortune of this softened market.
If you have considered buying, whether for investment, the first time or to change your lifestyle you need to seriously consider this real estate market as a prime opportunity and a buying signal. You still need to use good judgment and you can not assume that every property on the market is a great deal, nor should you assume that every seller is going to accept a drastically reduced offer price. The well priced properties are selling and selling close to their asking price. You really need to find a REALTOR® that you trust to help guide you through this market. There are a lot of listings out there and you don’t want to or need to see them all. Your real estate agent should be able to guide you to the good values and offer you prudent advice as to an attainable purchase price.
Your job as a buyer is to set realistic goals. No matter how many homes are on the market there is no perfect house, you still need to be prepared to compromise and you still need to be prepared to pay a fair price.
The local real estate market may have shifted to a buyers market but this is not California or Florida and we are not experiencing increased foreclosures or panic sales. We need to put into perspective what we hear on the news about the real estate market in the US, because that isn’t Canada. There are good prices and great deals out there but it is fairly unrealistic to expect to get a massive discount on an already well priced home. You need to find a real estate agent you trust and trust them to show you the deals and help you buy one.
Opportunity is knocking at the real estate buyer’s door; many people will buy in this market and be glad they did, other will wait and realize they missed the bottom of the market when it is heading back up again!

Your First Investment Property!

2008-06-27T11:17:00.001-06:00

Buying Your First Investment Property
By Gemma Beierback

Many people dream of one day owning their own rental property, starting their own little empire and building a nest egg for the future. The question is where to start and what are the risks?
The first step in determining the viability of this endeavor is to sit down and realistically access your goals, financial capability and risk tolerance. Are you looking to generate immediate cash flow or are you more interested in an asset that you may choose to liquefy at retirement? Can you afford to carry the property in the event of a vacancy? How much do you comfortably have available for a down payment? Do you qualify for another mortgage?
Once you have reviewed your personal position you should call in the professionals. You need to find a Mortgage Advisor and a Real Estate agent that you trust. Your REALTOR® should be able to help you determine what types of rental properties are in demand and how much they generate in terms for rental revenue. This is a key ingredient in both choosing a property and arranging financing.
Believe it or not there are mortgage products available that allow you to finance 100% of your revenue property purchase…as with everything in life ‘some conditions apply’. If you want to find out what those conditions are give Kevin MacGregor a call at 403-852-2908, he is a Mortgage Specialist with Home Loans Canada. Kevin will be able to ascertain whether you would be in a position to buy an investment property with no money down!!!
Once you have an understanding of what type of property you are looking for you can start house hunting. The important thing to remember when you are looking at investment property is…YOU ARE NOT GOING TO LIVE THERE!!! The purchase of a revenue property should be completely unemotional. Don’t focus on whether you like the paint, carpet or décor…you don’t even need to like the neighbourhood. The key is ‘is it rentable?’
Once you’ve purchased your first rental property you can experience the excitement and trepidation that comes with finding your first tenant. Make sure you thoroughly review the Landlord Tenant Act to ensure that you fully understand your rights and responsibilities. You also need to prepare a package of paperwork including the lease agreement you will use as well as the move in, move out inspection check list. Remember you need to make prudent decisions regarding the tenants that you choose…they will be living in a home you own and are in a position to positively or negatively effect your investment!

Measuring your home by the YARD...

2008-06-27T11:16:00.000-06:00

Measuring your home by the YARD...
Written by Gemma Beierback

If you are considering selling your home in the near future it is time to take a hard look at your property through the eyes of a buyer. You need to seriously and objectively view your home as a buyer does. Often times this is an ideal time to interview several Real Estate Agents and decide who you will be working with in the future…If you already have a trusted Real Estate professional you can skip this step. When you have your chosen REALTOR® over ask them to be honest about what needs to be changed. This may mean they tour the house, go back to their office and give it some consideration and then return with a ‘fix it, move it, ditch it’ list for you to go through. In some cases a professional stager may be money well spent to help you maximize your assets and minimize your flaws. Although the inside of your home is absolutely critical you must not neglect the outside of your home.
The first impression a buyer gets of your home, beyond pictures and virtual tours, is the yard and front appearance of the property. If they have chosen to see your home that means either they chose it themselves from the MLS information and pictures, or the REALTOR® believes this is a good property for them. Either way you have made it through the first part of the process to the first short list. You must make sure that when they approach the front of the house they can imagine themselves living there. It needs to feel like home. Believe it or not buyers do occasionally decide NOT to go inside of a property simply because they don’t like the exterior; as a seller you have to consider that opportunity lost!
Take the curb appeal of your home seriously; ensure that all flower beds, rock gardens and other decorative areas are clear of weeds and debris, pick up toys and garbage that may have crept onto the lawn, keep the grass mowed and watered and the edges of the yard trimmed. You can decorate in the summer by adding some flower baskets or planters to spruce it up and cedar trees either side of an attached garage can be very attractive. The paint on the house should be in good condition, windows clean, verandah or front pathway should also be clean and clear.
The back yard is equally important. You need to consciously assess the yards strengths and weaknesses, just as a buyer will. Can you add privacy, space or appeal to the yard in any way. If you have a small yard for example and a large trampoline you might consider putting it away for a while. If your yard is not very private you may want to invest in some trees, lattice or perhaps a gazebo of some sort. Always be thorough and creative when it comes to assessing the improvements you could make to you house both inside and out. It is to you benefit to present a perfect product and will be reflected in the sale price!

Real Property Reports

2008-06-27T11:14:00.001-06:00

Real Property Reports
Written By Gemma Beierback

What is a Real Property Report (RPR)? Why do I need one? Where do I get one? What is a compliance stamp? What does it all mean?
These are all common and valid questions and if you have ever wanted to ask them you are not alone. The existence and validity of a Real Property Report generally comes up when you are making alterations to your property; a deck, a fence, a garage…or when you decide to sell.
An RPR is a survey of your property. It looks like an outline of the footprint of your house and shows the location of the property lines and any fences, decks, planters, sheds and other permanent fixtures. When contemplating a change to your property it is essential that you can accurately determine your property boundaries otherwise you risk the expense of having to remove the alterations at a later date if they are encroaching on a neighbouring property or on a town right of way. The City/Town has guidelines that provide information about the requirements of additions to a property; how high fences can be, how far back from the road a garage must be, how close to a neighbouring property a deck can be etc. It is crucial that a home owner reviews and abides by these guidelines, in conjunction with consulting their RPR to ensure that all of these requirements are met.
When the time comes to sell your property the first thing you should look for is your RPR. The listing REALTOR® will likely ask to look at it and together you can review the RPR to see if there have been any changes to the property since the RPR was created. If the seller has made changes then a new/updated RPR should be ordered. It generally takes about 2 weeks to get back from the survey company. In that time they will send a crew to your property to survey it and then take it back to drafting for completion. Expect to spend around $400-$450 for an RPR in town. Once you receive your updated RPR you will need to take a copy to the City/Town office to receive your compliance stamp. This process takes about a week and cost approximately $100. In order to receive a compliance stamp from the town the property and additions need to comply…They need to meet the guideline discussed above regarding fitting within the property boundaries and setbacks.
This is why it is of paramount importance that your RPR is current and accurate at the time of listing the property. The purchase contract stipulates that the seller warrants that the land and buildings comply with municipal regulations…It is impossible to make that warranty if you don’t have a current RPR. In turn this can cause delays at the time of possession if your property does not receive a stamp of compliance and alterations are necessary. Imagine the burden and expense to remove a deck, patio or fence because it is resting on a City/Town utility right of way.
Think ahead and be prepared, make sure you consult with the City/Town and your RPR when it comes to making changes to the permanent structures on your property and ensure that when you decide to sell your home you know that what you are selling complies with municipal regulations. Don’t get caught on the day of possession with a big headache and even bigger expense!
(Occasionally an existing RPR may need to be updated even if changes have not been made simply because of its age…consult your lawyer for their opinion on this matter)

Pricing in a Changing Market

2008-06-27T11:13:00.002-06:00

Pricing in a changing market!
In a changing real estate market exact and effective pricing is crucial. A couple of years ago as the market rose dramatically day after day it was not always easy to determine market value, but it was mostly pleasant as the sellers were generally happily surprised at the value of their home…and when it sold for more well that was a bonus. Today’s real estate market is another pricing challenge for real estate professionals. Real estate sales people are often put in the awkward position of having to tell sellers their home will not sell at the price they want or expect. In many cases significant improvements are required to put the property into saleable condition at all. This is difficult news to deliver.
Sellers have a whole host of reasons why the ‘need’ to sell their home for a certain amount; “they paid that much for it”, “they owe that much on it”, “they need that much for it to afford their next home” or most probably “it was worth that much last year”…
All of these are valid arguments but none of them influence the important ingredient in the sale…the buyer. A home’s market value is only truly relevant at the time of sale, that it was higher last year has no immediate relevance on the buyer’s willingness to pay more than the current market value.
The real estate market has historically followed an upwardly moving rollercoaster… going up and down but generally increasing in value over the long term. Clearly house prices in 1950 were significantly less than 1980 which is also significantly less than 2008. There have always been pockets of time, opportunities, when home prices were lower than the previous year but overall prices have increased.
When markets experience moments of down turn sellers have two options, the option to stay or the option to sell. This is a very personal decision and each seller should consult a real estate professional to determine their properties realistic market value and then examine their individual personal and financial circumstance.
Sellers need to also consider whether they intend to become buyers in the same market. Clearly if your own home is worth less than you expect it is quite likely that a home you would want to buy in that market place is also going to be a better value…another opportunity. If you do plan to become a buyer in the same market you want to sell in don’t be short sighted, price you home aggressively, get it sold and become the powerful buyer and get a great deal.
Today’s real estate market is definitely different to the market we experienced two years ago but it is an excellent opportunity. A chance to save money as a buyer and get into a home that was perhaps out of reach last year. The way to make that happen is proper pricing. In a tight market with lots of inventory you can’t afford to be even a few thousand dollars overpriced. A home will only sell for what the market will bare and to enjoy a quick and efficient sale that price is paramount. No matter where the home starts out in price it will only ever sell for market value… When you are a seller you need to think like a buyer and get results.
Written by Gemma Beierback

Political Action in Real Estate

2008-06-27T11:13:00.001-06:00

Political Action in Real Estate
At the beginning of May approximately 300 REALTORS® from across Canada met in Ottawa to begin 2 days of lobbying on Parliament hill. Although most Canadians are completely unaware of this effort it is in fact a yearly event. Local Real Estate Boards and Associations have volunteer committees dedicated to Governmental Affairs. The members purpose is to keep in contact with their assigned MLA’s and MP’s in the hope that when matters relating to Real Estate come before the government the Real Estate Boards and Associations will able to have constructive input. The Canadian Real Estate Association (CREA) is in fact one of Canada’s largest single industry trade association. CREA has over 94,000 members in 99 local Boards or Associations, 10 provincial Associations and 1 territorial Association, CREA also owns the MLS® and REALTOR® trademarks. Not all Real Estate Agents are REALTORS®, this trademark can be used in Canada only by members of The Canadian Real Estate Association who accept and respect a strict code of ethics.
During this years Political Action Day’s on Parliament hill the delegates from the various boards met with over 100 MP’s to discuss the issues that CREA had determined were the most urgent; an increase in the Home Buyers Plan and a capital gains rollover for reinvestment in real property.
The Home Buyer’s Plan has been used by more than 1.5 million Canadians since its inception in 1992. Under this plan first time buyers can withdraw up to $20,000 per person out of their RRSP, without penalty, to be used as a down payment towards their first home. The buyer is then given 15 years to repay the money to their RRSP in order to remain penalty free. This is a successful and helpful tool which allows new buyers an opportunity to have a down payment on a home. The inception of this plan was in no small part the result of lobbying by CREA and now CREA is lobbying for an increase in the withdrawal limit. As home prices have increased the maximum withdrawal amount of $20,000 has remained the same. CREA is requesting an immediate increase of $5000.00 to a maximum of $25,000 per person and then a periodic review to adjust for inflation. In a climate of decreasing affordability it is believed that this is a necessary and important change that will genuinely help first time buyers in all markets across Canada.
The second issue is the Capital Gains Rollover. In the 1980’s Real Estate was eliminated from the lifetime capital gains exemption, this cost along with the elimination of soft cost deducibility and some of the GST regulations have actually served to discriminate against rental housing as an investment. CREA is recommending to government that the Income Tax Act be amended to enable a deferral of both capital gains and capital cost allowance when a Revenue property is sold IF that gain is reinvested in real property within a one year period. That sounds complicated but what it means to small investors is that they can sell their one unit, perhaps apartment or duplex and take the money they have made and reinvest it into other real property, perhaps a larger rental unit or several rental units. This really would allow opportunity all over the spectrum as small investors took their profit and planted it in larger rental investments. This is a twofold benefit; firstly more small investments would become available for those wishing to dabble with their first rental property and secondly more rental units would be created as investors reinvest their cash in other areas. There is currently a private members bill (Bill C-532) which captures the essence of this principal while stipulating that the reinvestment must be in low cost residential housing a term which will need some definition. Perhaps now is the time to send your MP an email asking them to support Bill C-532 when it comes before Parliament?
REALTORS® across Canada aren’t just busy selling homes, they are also trying to make a difference in the lives of Canadians and that is a real value to consumers.
Information for this article came from CREA brochure Legislature and Policy Issues 2008.

Realtors at work

2008-06-27T11:10:00.000-06:00

REALTORS® from across Canada keep busy with more that just Real Estate sales. Once a year delegates meet on Parliament Hill to lobby on behalf of all Canadians with respect to Real Estate related matters. This year the main issues discussed with MP’s by the delegates were; The Home Buyers Plan, as discussed in last weeks Cochrane Times and The Capital Gains Rollover for reinvestment in Real Property. In the 1980’s Real Estate was eliminated from the lifetime capital gains exemption. This cost, along with the elimination of soft cost deducibility, and some of the GST regulations have actually served to discriminate against rental housing as an investment. The Canadian Real Estate Association, CREA, is recommending to government that the Income Tax Act be amended to enable a deferral of both capital gains and capital cost allowance when a revenue property is sold IF that gain is reinvested in real property within a one year period. That sounds complicated but what it means to small investors is that they can sell their one unit, perhaps apartment or duplex and take the money they have made and reinvest it into other real property, perhaps a larger rental unit or several rental units. This really would allow opportunity all over the spectrum as small investors took their profit and planted it in larger rental investments. There is a twofold benefit; firstly more small investments would become available for those wishing to dabble with their first rental property or simply buy an entry level property, and secondly more rental units would be created as investors reinvest their cash in other areas. It is no surprise to anyone looking for rental housing that there is a shortage of available property to rent, anything that stimulates investment in rental accommodation is certain to have a softening affect on this shortage!
There is currently a private members bill (Bill C-532) which captures the essence of this principal while stipulating that the reinvestment must be in low cost residential housing a term which obviously needs some definition and clarification. Proposed Bill C-532 is by no means without flaws; however it is a positive step in the right direction and an initiative that could easily lead to the kinds of changes CREA is seeking. Perhaps now is the time to send your MP an email asking them to support Bill C-532 when it comes before Parliament? REALTORS® have presented this issue for two consecutive years and from discussions with MP’s it seems progress has been made, perhaps all that remains is for the electorate to take a moment to voice their opinions to elected officials and next year the CREA Political Action delegates can tackle another hot topic in Canadian Real Estate!
Written by Gemma Beierback with information from CREA brochure Legislature and Policy Issues 2008.

Another day in Ottawa

2008-05-05T18:13:00.002-06:00

This has been a wonderful trip to the nations capital. Yesterday Dr. David Suzuki was the main speaker and certainly as a Calgarian he managed to offend me. He said something along the lines of Calgary not being part of the developed world. He also alluded to our back track record on environmental issues...Today, however, we were treated to a discussion on various national initiatives with regards to sustainability and alternative energy and guess what.... The Alberta Real Estate Association is the only Real Estate Association in Canada that has already created a household sustainability hand out(brochure)...and yes the windmills in Pincher Creek also got a mention...Too bad Mr. Suzuki missed the discussion today! We were also treated to the Chief Economist with BMO Dr. Cooper who gave an excellent and insightful discussion on the sub prime crisis in the US and the horizon of the Canadian Economy...You'll have to watch my newspaper column to get the full scoop there! This evening we headed to the Parliament building and had a cocktail reception with the MP's. Again as a Calgary area resident I was slightly affronted by the lack of participation by local conservative representatives. Keeping in mind that there are nearly 300 Political Action reps on the hill at the moment all with the express intent to lobby and with many arranged functions it troubles me the my elected representative was unwilling to attend any of the arranged events. I will be meeting with 2 MP's tomorrow but neither of them are my own! I hope to have time tomorrow to take in a couple of the fantastic sites around here including the Museum of Civilization and the Mint. Now I am off to a haunted tour of Ottawa with a couple of other Calgary and Area Political Action Rep's.

Real Estate Political Action

2008-05-04T10:09:00.002-06:00

Well here I am in Ottawa waiting for Political Action(PAC) days to commence. The Canadian Real Estate Association (CREA) hosts PAC days every year and this is our opportunity as politically active Real Estate Agents to meet with MP's and each other and talk about issues that have an impact on the lives and finances of Canadians. A little know component of the organized Real Estate industry in Canada is our Lobbying impact. CREA is the largest single industry lobbying group in Canada...CREA takes this role seriously and in the majority of cases the lobbying is not directed solely to improvement of the Real Estate industry but for the benefit of all Canadians. CREA lobbies on behalf of Canadians with regards to property rights, affordable housing, tax incentives and initiatives as well as helping lead plans like the 'Home Buyers Plan' where you can use money from your RRSP for a down payment! Next time you use a professional REALTOR don't forget that the dues they pay to be members of CREA help improve the lives of all Canadians.

Interest Rate Update

2008-04-22T13:43:00.000-06:00

Press Release April 22, 2008
Bank of Canada lowers overnight rate target by 1/2 percentage point to 3 per cent
OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 3 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3 1/4 per cent.
Growth in the global economy has weakened, reflecting the effects of a sharp slowdown in the U.S. economy and ongoing dislocations in global financial markets. Growth in the Canadian economy has also moderated as buoyant growth in domestic demand, supported by high employment levels and improved terms of trade, has been substantially offset by the fall in net exports. While both total and core CPI inflation were running at about 1.5 per cent at the end of the first quarter, the underlying trend of inflation is judged to be about 2 per cent, consistent with an economy that was operating just above its production capacity.
The Bank is now projecting a deeper and more protracted slowdown in the U.S. economy. This has direct consequences for the Canadian economic outlook, with declining exports projected to exert a significant drag on growth in 2008. In addition, tightening credit conditions and softening sentiment are expected to moderate business investment and consumer spending. Nevertheless, domestic demand is projected to remain strong, supported by firm commodity prices, high employment levels, and the effect of cumulative easing in monetary policy.
The Bank projects that the Canadian economy will grow by 1.4 per cent this year, 2.4 per cent in 2009, and 3.3 per cent in 2010. Consistent with this growth profile, the economy moves into excess supply in the second quarter of 2008, and spare capacity continues to increase through early next year. However, a gradual recovery in the U.S. economy, a return to more normal credit conditions, and accommodative monetary policy should generate above-potential growth and bring the economy back into balance around mid-2010.
The recent price-level adjustments for automobiles and the effect of past changes in indirect taxes will keep measured inflation below target through 2008. The emergence of excess supply in the economy should keep downward pressure on inflation through 2009. Both core and total inflation are projected to move up to 2 per cent in 2010, as the economy moves back into balance. There are both upside and downside risks to the Bank's new projection for inflation; these risks appear to be balanced.
In line with this outlook, some further monetary stimulus will likely be required to achieve the inflation target over the medium term. Given the cumulative reduction in the target for the overnight rate of 150 basis points since December, the timing of any further monetary stimulus will depend on the evolution of the global economy and domestic demand, and their impact on inflation in Canada.
A full analysis of economic and financial developments, trends, and risks will be set out in the Bank's Monetary Policy Report, to be published on 24 April 2008.
Information note:
The Bank's next scheduled date for announcing the overnight rate target is 10 June 2008.

Lending institutions will review their own policy and make adjustments and announce when prime lending rates are effective.

Kevin MacGregor Mortgage Specialist Home Loans Canada Phn: 403.275.6848 Fax: 403.770.8418 kevinmacgregor@telus.net www.hlcmortgages.com/kevinmacgregor

Ask Away

2008-04-14T14:17:00.002-06:00

Finally a place to ask all your Real Estate questions...In a changing market it is crucial that you keep up on all the Real Estate information that is available to you! Please feel free to ask questions and post comments.
SELLERS
The Market in Calgary and the outlying communities has changed considerably. We really need to ask ourselves what does it take to get a house sold in this market? The first thing you need to ask yourself as a seller is "DO I WANT TO SELL MY HOME?" if the answer is 'hummmm, not sure, maybe, perhaps if I can get $________ amount of money for it'...then this is NOT the right time for you to have your house on the market. If your answer is 'heck yeah, I gotta move' then we need to talk seriously about pricing. If you want your house to compete with the masses, and there are masses of listing out there at the moment, then you need to present the BEST PRODUCT, for the BEST PRICE... This likely means your house is not worth what you think it is. The upside is two fold, 1) if you have lived in your home for more than about 18months - 2years you are likely making gobs of equity anyway regardless of whether you list it for 5-10% less than you think it might be worth...2) if you are buying in this market then you are likely going to save a substantial amount of money on you purchase as well, and as you are likely moving up in price point you are proportionately saving more than you are losing...5% of $600k is more than 5% of $400K, make sense? Don't be afraid to market you home efficiently...make sure you price it right and only consider putting your house on the market if getting it SOLD is the only solution you are looking for! I have an excellent video for sellers that really puts pricing into perspective, especially in this changing marketplace! Feel free to ask for a copy!
BUYERS
Tell me what the heck are you waiting for...please tell me because I can't for the life of me figure out what is the hold up...Prices and market conditions are in your favour...There is inventory galore, great product at almost the same price as a year ago...This is your opportunity to play catch up...Remember when prices went mad in 2006 and you thought darn it I missed the boat on home ownership...Well the tide is coming back in for you...Paddle out quick before you miss it again! How many times have we all had opportunities that we let pass us by only to say in the years to come how we wish we had taken the chance...This is it...jump in! Whether you are a first time home buyer or looking to make an investment there hasn't been a better time in many years to get involved. 1) You need to choose a Real Estate Agent that knows the market and knows a deal, not all the listings out there are bargains at the moment. 2) You need to get your financing in order because interest rates are great get a rate hold and save money. It is a win-win pricing and interest rates working for the buyer. 3) Don't foolishly wait for the 'market bottom' you won't know the lowest price until it is too late and they are already going up...what you do know is that you can finally afford to buy and this might be your last chance!
Get involved, Ask Questions,
Gemma Beierback
Real Estate Associate Broker with RE/MAX First
and this Blogs resident Real Estate GURU
Not intended to solicit clients already under contract

Real Estate a Decade in Review

2008-02-21T16:42:00.003-07:00

Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada, according to a report released by RE/MAX.

RE/MAX Decade in Review 1997 - 2007 found that major housing centres across the country experienced strong consecutive growth between 1997 and 2007. Average price spiraled upward while unit sales climbed in tandem as more and more Canadians bought into homeownership. Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return. Home sales across the country increased just over 57 per cent from 331,092 units in 1997 to more than half a million sales last year. Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007. Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period.

Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade. At first, there was an influx of American buyers, especially in Canada’s coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap’ by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there’s no question that Canadian real estate brings good value to the table.

Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John’s at 106 per cent, Kelowna at 84 per cent, and Saint John at 77 per cent. Most markets (12 of the 19 surveyed) reported increases between 40 and 60 per cent. Average price has also seen substantial escalation over the 10-year period, with posted gains ranging from a low of 54.4 per cent in London-St.Thomas to a high of 203 per cent in Edmonton. Appreciation in Western Canadian markets surpassed all others between 1997 and 2007, with Calgary ranking second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.

-In 2006, homeownership rates in the country were the highest on record at 68.4 per cent. Population growth has contributed to heated market conditions – especially in Calgary (+31.4 per cent), Edmonton (+20 per cent), Toronto (+20 per cent), and Vancouver (+15 per cent) where percentage increases have hovered in the double-digit range. Overall, Canada’s population rose to almost 33 million in the 2006 census, up approximately 10 per cent from 1996 figures.

The non-cyclical nature of the decade comes as some surprise. Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation.

Robust economic performance in Western Canada has also drawn job seekers from across the country, looking to capitalize on employment opportunities.

As demand for housing increased across the country, the supply of homes listed for sale began to contract. Multiple offers were commonplace in many areas, some with sales-to-listings ratios as tight as 80 to 90 per cent. Nationally, 1997 marked the first year since 1988 that the sales-to-listings ratio hit 50 per cent. The sales-to-listings ratio would remain above 60 per cent from 2001 onward – rising to as high as 68 per cent in 2002.

The decade was not without its obstacles – the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border. Given the continuation of sound economic fundamentals, it’s expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.

RE/MAX of Western Canada (1998) Inc. Decade in Review issued February 21, 2008.

Fantastic Chinook in Cochrane

2007-03-13T15:02:00.000-06:00

Thanks to Bob Doornenbal for this great picture of a Chinook in Cochrane...Unbelieveable...It's hard to believe that when this picture was taken the temperature got up to 15 degrees and now we have a foot of snow...Only in Calgary (and Cochrane) If you have any truly wonderful images e-mail info@realgem.ca

Real Estate Update

2007-02-13T20:59:00.000-07:00

The Real Estate market has changed so dramatically over the past year it seems appropriate to launch a current and interactive source for you to keep in touch with the market. Please visit www.realgem.ca to find out the degree of expertise offered by our team. If you have questions you would like answered regarding Real Estate, Mortgage Financing or Home Inspection we will do our best to get answers to these questions posted on the blog promptly.
E-mail questions to info@realgem.ca .
Market Information:
Current Active Listings:
Cochrane, Alberta : 73 prices from $210,000-$1.3 million
Calgary, Alberta: 2537 prices from $117,000-$12.0 million
Airdrie, Alberta: 138 prices from $165,000-$659,900
Inventory is definately up from the all time lows of last year. We have seen inventory numbers drop since the beginning of this year. This is exciting and may point to another increase in pricing.
If you are thinking about buying you need all the information in a timely manner. Don't hesitate to contact us with questions.
Team Real Gem