- Affordable housing is a priority for Vancouver residents according to annual TD Canada Trust Condo Poll -

 

VANCOUVER, April 18, 2012 /CNW/ 

 

Attracted to an urban lifestyle in one of Canada's most expensive real estate markets, nearly two-thirds (62%)

of Vancouver condo buyers say their main reason for buying a condo is that it's more affordable than a house.

Another third (34%) say they believe owning a condo may be cheaper than paying rent according to the 2012

TD Canada Trust Condo Poll, which surveyed Vancouver residents who recently bought or intend to buy a condo.

 

More than one-quarter (28%) of Vancouver condo dwellers say that their monthly strata fees make it feel like they

are still paying rent, so they are saving up to buy a home without set monthly maintenance fees.

 

"Purchasing a condo allows you to build equity rather than continuing to pay rent as you save for a house," says

Brett Currah, District Vice President, TD Canada Trust. "At the same time, determining what makes the most

sense financially is not just a straight comparison of your monthly rent and some utilities to a monthly mortgage

payment and condo fees, so it's important you talk to a mortgage expert before making the decision to buy a

condo."

 

According to the poll, Vancouverites tend to be conscious of monthly maintenance fees. Vancouver condo buyers

say they understand that monthly fees can increase at any time and have a plan: 28% have a buffer built into their

current budget and 36% say they could cut back in other areas in the event of an increase.

 

Vancouver condo dwellers may be wise to prepare their finances for the possibility of a maintenance fee increase.

New regulations announced last year under the Strata Property Act will impact depreciation reports and

contingency reserve funds. Some corporations may need to contribute more to their contingency reserve fund to

better manage the future maintenance of common property and it is possible that this could result in higher strata

fees for their residents. For people buying condos, these changes may help to budget - as it will help predict the

likelihood of a strata fee increase if they're considering a strata unit that is older or currently has unusually low

fees.

 

"The possibility of a fee increase can be a little unnerving," says Currah. "While there's no way to 'lock-in' to a

monthly fee like you can with a mortgage, you can prepare for a fee increase by building a buffer into your monthly

housing budget, as some Vancouverites have wisely done. That way if fees go up, it won't be a major shock to

your cash flow. If they don't increase, you have extra money to put aside in savings or towards your mortgage. You

can also explore flexible mortgage options that allow you to pay more towards your mortgage when you can, then,

upon an approved application, ease off on payments when you need to. This can be a useful feature in the first few

months of transition to a fee increase."

 

Top features Vancouver residents look for in condos

According to the poll, condo buyers think the most important features when deciding on a condo to buy are:

1. Low condo fees (97%)
2. Good building security (96%)
3. Attractive interior design (95%)
4. Energy-efficient building features (93%)
5. A balcony (92%)

Nationally, women are more likely than men to look for a building with a balcony (92% versus 87% of men) and

environmentally-friendly features (86% versus 79% of men), while men are more likely to say finding a brand new

condo - not a resale (56% versus 46% of women) - is important to them.

 

Condos as investments

Almost one-third of condo buyers (31%) in Vancouver say the main reason for their condo purchase is that it is a

good investment. Recent housing forecasts do not seem to have fazed most buyers. Only 21% of condo buyers

inVancouver say recent forecasts have made them less likely to buy a condo.

 

"Recent housing forecasts have predicted that an over-supply of condos will cause a drop in prices. How this

affects your decision to purchase a condo comes down to your goals at that time" says Currah. "If you are buying a

condo and see it as a source of rental income that you'll move into when you are ready to downsize, this drop in

value will likely not have a big effect. On the other hand, if you see a condo purchase as a way to build equity as

you save up to buy a home, you need to consider the potential effect of a decreased price when you sell on the

money you will have towards a down payment for a house."

 

Of those who are buying condos that will not be their primary residence, 39% think they are a good investment to

buy and sell at a profit when prices have gone up. But - that is not the only way Vancouver residents see a condo

purchase as an investment. More than half (55%) see them as a long-term source of rental income and 37% see

them as a source of rental income for now that they will move into later when they are ready to downsize.

 

TD hosts an online community for homebuyers at www.tdcanadatrust.com/homeownership. The online

community allows home buyers to learn from each other's experiences, share stories on a wide range of home

financing topics and pose questions to TD expert, Farhaneh Haque, Director of Mortgage Advice.

About 7,800 new units will be launched in first six months of year, says MPC Intelligence

BY BRIAN MORTON, VANCOUVER SUN

 

Concrete condo sales are heating up in Metro Vancouver, but only for the right projects in the right location - near

rapid transit.

 

That's the word from Jeff Han-cock, a senior manager with real estate market firm MPC Intelligence, who said

presales of concrete condos in the right location and at the right price point continue to escalate with Asian

investors largely driving the market.

 

"It's not market-wide," he said. "It's more spotty. If you are 10 out of 10, you'll do well. That means a great location,

welldesigned, priced appropriately and definitely [served] by transit. Other projects are having to struggle a bit."

 

Hancock said an MPC forecast earlier this year that 8,000 new units in concrete towers would be launched in the

first six months of 2012 has been down-graded to about 7,800.

 

He said about 3,800 new concrete condominiums across 19 projects have started presales since Jan. 1 and that

60 to 65 per cent have been sold, "an impressive metric."

 

Hancock cited last month's sellout of 415 homes at Marine Gateway and the Telus Gar-den's 428 condos as

examples of strong sales in the sector. Two other condo towers in Burnaby - Silver by Intracorp and The Met by

Concord Pacific - also sold extremely well in presales over the past two weeks, he added.

 

Hancock noted that the market has been driven by Asian investment segments, most for long-term investments

but also for family use. "End user groups have also been active, specifically in North Vancouver, New

Westminster, Burnaby North and downtown Vancouver."

 

He said the resale market for concrete condos has not been as strong as the market for new units, possibly

because investors buying a presale unit like the idea of having a year or two to complete the purchase.

 

Cameron Muir, chief economist for the B.C. Real Estate Association, characterized overall condo sales in Metro

Vancouver as "moderate," with no significant change in activity over last year and little pressure on prices.

 

He said some areas are under-supplied, while some areas, like Langley and Surrey, have a significant amount of

inventory.

 

"In certain areas, particularly close to downtown, the inventory has been drawn down. And condo projects well

located to transit are doing well to date.

 

"But that's the exception rather than the rule. We're still facing headwinds due to the overall economy."

 

bmorton@vancouversun.com

FRANCES BULA Vancouver— Globe and Mail Update

As wheels continue to come off the TransLink bus, Vancouver’s mayors have voted to suggest cancelling transit

improvements that had been planned for 2013 and 2014 until there’s a way to pay for them.

 

A letter issued late Thursday by TransLink mayors’ council chair Richard Walton said the mayors voted at their

monthly meeting this week “for the two-year, $30-million in property tax funding for TransLink’s latest expansion

plans to be cancelled, until alternative funding sources are determined.”

 

Those improvements – a rapid bus along Highway 1 and the new Port Mann Bridge, another rapid bus down King

George Boulevard in Surrey, 615,000 extra hours of service throughout the region, and some station upgrades –

were meant to assure taxpayers that everyone was getting something out of TransLink’s three-year plan for

expansions.

 

If the plans to cancel go through, the Evergreen Line – funded by a two-cent-a-litre gas tax increase that kicked in

April 1 – will be the only part of the improvements package. That was their response to a letter earlier in the week

from Transportation Minister Blair Lekstrom, turning down all three suggestions the mayors had made for

alternatives – a vehicle levy, another gas-tax increase, or a regional carbon tax.

 

The vote was not unanimous.

 

City of Langley Mayor Peter Fassbender said three mayors from south of the Fraser, where most of the

improvements would have occurred, voted against the call to cancel.

 

“It took us a long time to get these enhancements,” he said. “It would be ludicrous not to have buses on the new

Port Mann Bridge. We are adamant.”

 

The mayors of the Township of Langley and of White Rock were also opposed to any cancellation. Surrey Mayor

Dianne Watts was out of town, and Councillor Marvin Hunt voted to support the cancellation in her absence.

 

The motion was another blow for TransLink management in a series of them this year.

 

It has already in the past two months seen some mayors lead a charge to have an audit, heard Premier Christy

Clark order one while turning down any possibility of a vehicle levy to pay for new services, gone through a media

grilling about bonuses for managers, and received the news Tuesday that Transportation Commissioner Martin

Crilly would not allow fares to be raised more than the inflationary rate allowed.

 

All of that has meant the agency is being asked to come up with $45-million a year by running the billion-dollar

service more efficiently – something that its planners are not sure is possible.

 

While they’ve said they believe TransLink is already on track to improvements, as a result of ongoing work to

reduce less productive bus routes, tighten up administration costs, and streamline other services, they say there

might not be $45-million worth of savings. That would mean cutting services to make up the differences.

 

In a statement released an hour after Mr. Walton’s letter, TransLink CEO Ian Jarvis said: “In the past few days, we

received two decisions that impact our business: the Commissioner’s decision to reduce our proposed fare

increase and the recent Mayors’ Council motion to eliminate reliance on property tax to fulfill the Moving Forward

Plan. We need time to review the information and understand what these decisions mean for TransLink, our

customers and the public we serve.”

 

It’s still unclear how part of the transit-improvement plan could be cancelled legally.

 

The mayors’ council also asked for a new audit on the agency, but quite a different kind from those previously

suggested.

 

Instead, they would like to see one done on whether the efficacy of TransLink’s new governance model introduced

by then-transportation minister Kevin Falcon in 2007, which took away the mayors’ power to control the agency

and gave it to an appointed board.

 

TransLink was the first regional transportation authority to be created in North America with the power to plan

finance and manage all transit, as well as regional roads and bridges.

 

 

 

Saving money for a down payment, especially in British Columbia’s high-priced housing markets, is one of the

biggest challenges that homeowners face, but mortgage experts say, it’s not impossible.

 

The minimum down payment new homeowners need is five per cent of a home’s purchase price, which can be

particularly difficult to accumulate for those in the most need: young people, often with student debt and lifestyles

that involve a lot of restaurant meals and going to movies once or twice a week.

 

“There are options,” said Chris Pughe, a mortgage broker with Verico Complete Mortgage Services.

 

For starters, there’s always Mom and Pop to help you on your way — Pughe said gifts from family members are

one alternative.

 

She added buyers can borrow the down payment through a line of credit, personal loan or possibly cash

advances against a credit card.

 

The caveat, she said, is the buyer would have to be able to afford to service the mortgage debt, pay property taxes

and heating costs plus an additional payment on the borrowed funds.

 

As well, first-time buyers can tap into their RRSPs — an option not available to investors — as a way to get the

necessary cash in hand.

 

Pughe said this is a popular option. Borrowers can withdraw up to $25,000 from their RRSP under the federal

Home Buyers’ Plan without any tax being withheld, noting that it’s not just for first-time buyers.

 

“It’s as long as you haven’t been on title to anything for the last five years,” she said. “If it’s you and your spouse,

it’s $50,000.

 

“But you have to repay it [in yearly instalments] into your RRSP over 15 years. If not, you pay tax on it.”

 

Pughe noted that purchasers can borrow money for the RRSP and get the tax saving for a down payment the

same year, provided it stays as an RRSP for 90 days.

 

The provincial government’s new bonus for first-time buyers of new homes, which is a one-time refundable

personal tax credit equal to five per cent of the purchase price of a home to a maximum of $10,000, can also be

used to help with a down payment.

 

Pughe said some lenders have a cashback option that can be used against a down payment. “The clients have to

take posted rates [not discounted] and some lenders will give you five per cent of the mortgage amount as cash

back. On $400,000 that would be $20,000, the five-per-cent down payment that is required.”

 

However, she recommends against that option because borrowing costs are much higher than discounted rates.

 

One thing worth remembering, Pughe said, is that if clients have less than 20 per cent as a down payment, they

have to prove that they have the five-per-cent down payment plus 1.5 per cent in closing costs.

 

Meanwhile, Ryan McKinley, mortgage development manager at Vancity in Vancouver, said “it would be nice to have

a magic bullet,” but that the classic approach to saving up the down payment can “definitely be a challenge.”

 

McKinley believes one approach could be to set up an automatic transfer into a high interest savings account

every month or every paycheque to save for a deposit.

 

Regarding parental help, McKinley said parents can use their own savings, investments or potentially the equity in

their own home to help a child with a down payment.

 

They could also co-purchase a home with their children, he said, allowing the child “to get into the market, while

concurrently being an investment for the parents.”

 

BY PAUL BIANCHINA, Inman News®

 

The sun is peeking out and the plants are starting to blossom, so it must be about time for spring chores again.

Here's my annual spring checklist of important issues to tend to around the house.

 

1. Roofing repairs:

 

If you suspect winter storms may have damaged your roof, it needs to be inspected. (If you're

not comfortable with the height or steepness of your roof, hire a licensed roofing contractor for the inspection.)

Look for missing or loose shingles, including ridge-cap shingles.

 

Examine the condition of the flashings around chimneys, flue pipes, vent caps, and anyplace where the roof and

walls intersect. Look for overhanging trees that could damage the roof in a wind storm, as well as buildups of

leaves and other debris.

 

If you have roof damage in a number of areas, or if older shingles makes patching impractical, consider having

the entire roof redone. Also, remember that if the shingles have been damaged by wind or by impact from falling

tree limbs, the damage may be covered by your homeowners insurance.

 

2. Check gutters and downspouts:

 

Look for areas where the fasteners may have pulled loose, and for any sags in the gutter run. Also, check for water

stains that may indicate joints that have worked loose and are leaking. Clean leaves and debris to be ready for

spring and summer rains.

 

3. Fences and gates:

 

Fence posts are especially susceptible to groundwater saturation, and will loosen up and tilt if the soil around

them gets soaked too deeply. Check fence posts in various areas by wiggling them to see how solidly embedded

they are.

 

If any are loose, wait until the surrounding soil has dried out, then excavate around the bottom of the posts and

pour additional concrete to stabilize them. Replace any posts that have rotted.

 

4. Clear yard debris:

 

Inspect landscaping for damage, especially trees. If you see any cracked, leaning or otherwise dangerous

conditions with any of your trees, have a licensed, insured tree company inspect and trim or remove them as

needed.

 

Clean up leaves, needles, small limbs and other material that has accumulated. Do any spring pruning that's

necessary. Remove and dispose of all dead plant material so it won't become a fire hazard as it dries.

 

5. Fans and air conditioners:

 

Clean and check the operation of cooling fans, air conditioners and whole-house fans. Shut the power to the fan,

remove the cover and wash with mild soapy water, then clean out dust from inside the fan with a shop vacuum --

do not operate the fan with the cover removed.

 

Check outdoor central air conditioning units for damage or debris buildup, and clean or replace any filters. Check

the roof or wall caps where the fan ducts terminate to make sure they are undamaged and well sealed. Check

dampers for smooth operation.

 

6. Check and adjust sprinklers:

 

Run each set of in-ground sprinklers through a cycle, and watch how and where the water is hitting. Adjust or

replace any sprinklers that are hitting your siding, washing out loose soil areas, spraying over foundation vents, or

in any other way wetting areas on and around your house that shouldn't be getting wet.

 

7. Check vent blocks and faucet covers: As soon as you're comfortable that the danger of winter freezing is over,

remove foundation vent blocks or open vent covers to allow air circulation in the crawl space.

 

While removing the vent covers, check the grade level around the foundation vents. Winter weather can move soil

and create buildups or grade problems that will allow groundwater to drain through the vents into the crawl space,

so regrade as necessary. Remove outdoor faucet covers. Turn on the water supply to outdoor faucets if it's been

shut off.

 

8. Prepare yard tools:

 

Replace broken or damaged handles, and clean and condition metal parts. Tighten fittings and fasteners,

sharpen cutting tools and mower blades, and service engines and belts in lawn mowers and other power

equipment.

 

9. Change furnace filters:

 

Now is the time to replace furnace filters that have become choked with dust from the winter heating season. This

is especially important if you have central air conditioning, or if you utilize your heating system's fan to circulate air

during the summer.

 

10. Check smoke detectors:

 

Daylight Savings Time snuck up early again this year, and that's usually the semi-annual reminder to check your

smoke alarms. So if you haven't already done it, now's the time. Replace the batteries, clean the covers, and test

the detector's operation before it's too late.

 

If you have gas-fired appliances in the house, add a carbon monoxide detector as well (or check the operation of

your existing one). CO2 detectors are inexpensive and easy to install, and are available at most home centers and

other retailers of electrical parts and supplies.

 

By Amy Fontinelle, Investopedia

 

Many homebuyers think that purchasing a brand-new home is smarter than purchasing a "used" home. A new

home's maintenance costs should be minimal; its construction materials, systems and appliances should be up-

to-code and energy efficient; the floor plan and amenities should meet the needs of modern buyers and the home

should be move-in ready. A new construction also has an emotional appeal for buyers who like the idea of living in

a home that's completely clean and potentially perfect.

What many buyers don't realize is that new homes often have numerous hidden costs. If you're considering a new

construction, here's what you should look out for to make sure you're spending your money wisely and you don't

experience any unpleasant surprises.

 

Hidden Defects

Just like an older home, a brand-new home can have hidden defects (also called "latent defects") that require

expensive repairs. Heavy rains can reveal inadequate waterproofing or grading that leads to leaks or flooding in

your home. A weak slab could crack. Siding could fall off. The wood floors could warp. Your toilet could overflow.

Electrical wiring could be done incorrectly. Any problem that you might be afraid to find in an older home can also

appear in a brand-new home.

 

To protect yourself, research the builder's reputation and don't skip a thorough inspection by an independent

home inspectorwho is not affiliated with the builder. Ideally, you would have one inspection after the home has

been constructed but before all the finishes have been put in, when some problems are easier to identify, and

another inspection just before your loan closes and you take possession.

 

Also, find out what kind of warranty the home comes with and read it carefully before you buy the home. You

may have to rely on that warranty if any latent defects pop up, because your homeowners insurance policy may not

cover them. Different aspects of the home may be covered for different lengths of time, so make sure you're aware

of those limitations and report any problems to the builder as soon as you notice them.

 

Missing Necessities

New homes often don't come with everything you need. It's quite common for them to lack fences, decks, window

coverings, appliances, landscaping and other essentials.

 

Each of these missing items can be a major added expense. Before you make an offer, note what's missing and

do some research to figure out how much these items will cost. Make sure to factor these purchases into your

budget. If you can't afford to pay for them out of pocket, getting the builder to pay your closing costs might free

up the cash you need for blinds, sod and a washer and dryer.

 

If that doesn't work, look for a new home that comes with all the essentials, or consider a property that's almost

brand new and is just lived-in enough that the previous owner has installed all the missing necessities.

 

Pricey Upgrades

The showy model you'll tour will typically have all the upgrades the builder offers, from hardwood floors and granite

counters to bay windows and oversized bathrooms. Seeing what you could have can lure you into spending

significantly more than the base price that originally attracted you to the community. The price difference between

the base model and the model with all the bells and whistles can be tens of thousands of dollars.

 

Also, if you buy the upgrades through the builder, you might pay an upcharge and have a limited selection

compared to doing the upgrades yourself. You also have to consider the future resale value. Choose finishes that

will appeal to a wide variety of buyers and pick options that won't make your home over- or under-improved

for the area.

 

Some builders do include upscale features in the standard model and factor them into the base price. Just make

sure you know what you're looking at before you tour a home and fall in love with something you can't afford.

 

Uncertain Future

In a new community, you don't really know what you're buying into. Who will your neighbors be? What will get built

on that vacant land? How good will the new school system be? How will these unknowns affect your quality of life

and your home's resale value? "New construction" is not a synonym for "low crime," "friendly neighbors" or

"excellent education."

 

It's OK to take a chance on these unknowns--just realize that you're taking a chance. Conditions can change in

established neighborhoods, too, but a well-established area might give you a better idea about what life will be

like in your new home.

 

Lack of Representation

When you buy a new construction, you shouldn't walk into the sales office unarmed. The builder's sales agent

represents the builder--not you--and any financing the builder may have arranged will not necessarily be the best

available financing. Get your own agent and your own lender to make sure you get the best price on the

home and the lowest interest rate and fees on your mortgage.

 

Conclusion

Don't make any assumptions about what you'll be getting if you buy a new home. Buying a new home can be more

expensive and come with many more uncertainties than you bargained for. However, if you prepare for the

experience, you'll know how to watch out for your best interests and spend your money wisely.

By Thomson Reuters, Financial Post - April 4 2012

Canada’s finance minister said on Wednesday he would rather not tighten mortgage rules again to curb high

household debt and that banks themselves are taking on that job by becoming more strict with their lending

criteria.

 

Jim Flaherty said he has seen signs of moderation in the Toronto condominium market and expects to see a

similar trend in Vancouver, one of the country’s hottest real estate markets.

 

“Part of that is based on what I’m being told by people who build condominiums, and also what I’m being told by

some of our banks about their standards becoming more stringent with respect to their loans for condominium

development,” Flaherty told reporters in Vancouver after making a speech there.

 

Flaherty said it was up to markets to “fix” the housing and debt problem, not the government.

 

“I’ve tightened up the mortgage insurance market three times … I really don’t want to do it again,” he said.

“And I’m glad that some of the banks – at least one of the bank executives yesterday indicated that he agreed that

actually the banks should exercise prudence and not rely on government to do it for them,” he said.

 

Bank of Nova Scotia Chief Executive Rick Waugh said on Tuesday that the simmering housing market gives

reason for caution, but that it’s up to the country’s banks, rather than the government, to manage the risks of their

massive mortgage portfolios.

 

Several other bank executives – Toronto-Dominion CEO Ed Clark in particular – have said they would welcome further government moves on mortgages.

 

The government and central bank have been warning Canadians of the dangers of taking on too much debt,

particularly through mortgages, at a time of historically low interest rates and high housing prices. The ratio of debt

to personal disposable income hit a record high last year and has moderated somewhat since then.

 

Despite some resemblance to the U.S. housing market prior to the crash, most economists expect a soft landing

in Canada.

 

Flaherty has tightened rules three times since 2008 in the mortgage insurance market but left them untouched in

the federal budget last week, to the surprise of many.

 

The budget did propose enhanced supervision of the federal housing agency that issues mortgage insurance.

Flaherty said the banking regulator, the Office of the Superintendent for Financial Institutions, was studying the

matter.

City of Richmond - A Press Release

The strongest real estate markets in the Metro Vancouver

 

The City of Richmond remains one of the strongest real estate markets in the Metro Vancouver region. An

innovative and ambitious City Centre Area Plan, the arrival of the Canada Line rapid transit service and the

Richmond Olympic Oval are among the catalysts fuelling billions of dollars of new growth in Richmond.

 

The strong interest in the Richmond real estate market was illustrated by an average 16.5 per cent increase in

property assessments during 2011. The construction value of building permits issued in Richmond in 2010 and

2011 exceeded $1.2 billion.

 

Richmond's population passed 200,000 in 2011 and is projected to grow dramatically over the next three

decades, with much of that growth centered in Richmond’s City Centre. Richmond is also projecting a 33 per cent

growth in the number of jobs in Richmond by 2041.

 

The current pace of growth is driven by new high density residential projects concentrated in Richmond's City

Centre. An example of this includes the River Green development near the Richmond Olympic Oval, which will

transform 30 acres of riverfront land into a master planned community. Other major developments are planned for

the Capstan Village area, near the north end of No. 3 Road. Preliminary approval has been given for the first of a

potential 3,000 new residential units that would re-make the northern gateway of Richmond's City Centre. New

development in the Capstan Village will also fund a new Canada Line station to serve the new neighbourhood.

The West Cambie area is another significant redevelopment in the City.

 

Richmond's growth is not just fuelled by residential growth. Currently, there are proposals for many new hotels in

Richmond under consideration. The largest project ever seen in Richmond, a four million square foot

commercial-office space development, is being proposed for Duck Island, immediately west of the River Rock

Casino.

 

Outside of the City Centre, YVR is planning significant new development on its lands on Sea Island. This includes

Canada Post's new regional sorting centre, which should bring over 1,200 jobs. Port Metro Vancouver also plans

continued expansion in southeast Richmond, which will be supported by a newly-opened Highway 91 interchange

that greatly enhances traffic access to those lands. With some of the last remaining large parcels of industrially-

zoned lands with waterfront access in the region, Richmond’s port lands continue to be in high demand.

 

Richmond's future is bright. To find out more about Richmond, visit our website at www.richmond.ca or contact our

Economic Development Office at 604-276-4000.