Investment Radio Show with Tina Mak
Listen Live Radio "Investment Golden Page" every Saturday
between 5pm & 6pm
Tina Mak is back on the air with her new radio show which focuses on investing.
Feb.18 2012
Transition measures support new-home buyer, builders
Please click podcast listen to Cantonese interview
OK Economists, can u predict how our B.C. housing market is going to be like for the rest of the year when the govt is introducing a new HST threshold rebate from 525kk to 850k, rebate amount up from $26,250 to $42,500? This new rule comes effective on April 1st, 2012 to April 1st, 2013 when the HST will officially be gone. More than 90 per cent of newly built homes sold in B.C. are below the new higher rebate threshold.
Click Transition measures support new-home buyers, builders to read more.
Feb.11, 2012
Strata Property Act Amendments effective December 2013
Please click podcast listen to Cantonese interview
By December 2013, all strata building needs to have a Depreciation Reports for maintenance purpose.
Depreciation reports which estimate the repair, the replacement cost & the expected life of major item will be required.
It must be prepared by a qualified person who has the knowledge & expertise to understand not just inspecting the strata building but that the strata corporation is responsible to maintain or repair under the Act & prepare a depreciation report that complies with the Act. The professional teams could involve contractor, engineer, accountants. Here are the major items:
- Building structure
- Building exterior including roof, roof decks doors, windows skylights
- Building systems including electrical, heating, plumbing, fire protection, security
- common amenities
- parking facilities & roadways
- Utilities, including water & sewage
- Landscaping, paths sidewalks, fencing irrigation
- interior finishes including floor covering & furnishings
- Green building components
- Balconies & patios
The report must also include a financial forecast on anticipating maintenance, repair & replacement costs for all the major items.
Which buildings could have the exemption:
1) the owners have passed a resolution approved by a 3/4 vote that waives the requirement.
2) the Strata Corporation has fewer than 5 Strata Lots.
Potential value depreciation: Should owners of the building vote against preparing this depreciation report, there is a great potential that buyers might not wanting to buy into this building. Banks might not want to fund the buyer who wants to buy into the building.
By March 1st, 2012, all Form B is required the attachment of "most recent Depreciation Report, if any".
Alberta strata buildings have been providing this depreciation report for a long time. It is actually very good for the building & maintaining the value of the building for the owners. In my opinion, this will definitely reduce the potential special levy on major repairs. Prevention is better than cure. Buyer always like to buy well maintain property regardless it is strata or detached house.
Jan 7, 2012
Is there any relationship between property assessment, property market value & property tax?
Please click podcast listen to Cantonese interview
- Over 98.4 per cent of property owners accept their property assessment without proceeding to a formal, independent review of their assessment.
- Assessments are the estimate of a property’s market value as of July 1, 2011 and physical condition as of October 31, 2011. This common valuation date ensures there is an equitable property assessment base for property taxation.
- Changes in property assessments reflect movement in the local real estate market and can vary greatly from property to property.
- When estimating a property’s market value, BC Assessment’s professional appraisers analyze current sales in the area, as well as considering other characteristics such as size, age, quality, condition, view and location.
- Real estate sales between Jan 1st & Oct 31st determine a property’s value which is reported annually by BC Assessment. Local governments and other taxing authorities are responsible for property taxation and, after determining their own budget needs this spring, will calculate property tax rates based on the assessment roll for their jurisdiction. However, they normally don't enter the property whereas real estate agent will physically visit the property to see if there is any improvement done on the property. If home owner doesn't report the renovation, the assessment therefore cannot reflect the true value.
- Assessment value, property tax & actual property market value are not necessary related to each other. This is just a general perception in the general public.
- Last date to appeal is Jan 31st in each year.
- Should you wish to sell your property in the following year. The assessment value doesn't necessary reflect the current market condition because it is already 6 months old & in today's fast changing market, owner needs a professional honest agents to share t he most update market condition with you.
- Home owner can visit BC assessment E-valueBC to check if you property was fairly assessed: http://evaluebc.
bcassessment.ca/
Dec 10, 2011
Shall we invest in today's unstable global economy?
Please click Podcast listen to Cantonese interview
We know our pension is not going to get us through our retirement years. However, the unstable global economy environment worries us whether or if we should invest. Well, so many recent report came out from all over the world as well as our economists agree Canada is one of the safest place to invest in the world. I met an immigration lawyer recently & he is helping immigrants from all over the world like Egypt. We are having more & more rich people around the world wanting to come to Canada. I understand many of us believe Vancouver real estate is very unaffordable. However,if you have good planning & stop thinking of buying the "Perfect" property but just get your foot into the real estate door, there are many opportunity out there. The most important rules for investment is :
1) we buy what we can afford. If we can't afford DT, Westside, Richmond, etc, then just have to accept that you need to consider further East areas
2) Be an investor not speculator. The reason why I love real estate is I am the President, CEO of my property. I can keep it as long as I can hold on to it.
3) plan ahead for the down payment. For eg: Burnaby apartment at 250k, rent approx. $1200 20% is $50000. 5 yrs term, 3.29%, 30 yr amortization, monthly pmt $872 + $200 strata fee + $131 ppty tax=$1203. Cost to buy is $53000. After 1 yr, $3992.41/$53000 gives u 7.5% ROI!
There are many property around $250k range, brand new development in the lower mainland but maybe in Fraser Valley but some in Richmond or New Westminster. If you don't mind older building, you can stay find them in Burnaby.
If you are able to invest millions like those who does it in Westside, Richmond, etc. There are more choices than just buying resident detached house like multi family, shopping mall, warehouses, hotels, gas stations, storage
Knowledge means everything, following what your friends buy is not the right way to invest. What works for them doesn't mean it works for you. I now have a consultation group called West Noble Real Estate Investment Consultant. 3 of us cover residential & commercial real estate with a combination of over 80 yrs of experience. If you not sure what is right for you or not, we'll offer you our advice based on your situation to see if residential or commercial real estate is right for you. Feel free to contact me at 604-412-5860 or www.tinamak.com
Dec 3,2011
Nov Housing Stats from Greater Vancouver real estate Board
Please click Podcast listen to Cantonese interview
The Real Estate Board of Greater Vancouver reports that residential property sales of detached, attached & apartment properties on the region's MLS reached 2,360 in November, 1.9% increase compared to the 2,317 sales recorded in October 2011. Listing on another hand declined 26.3% compared to October 2011 at 3,222 in total.
If you are interested in knowing which part of the city is better for return on investment, here's the quick summary chart below for your reference on the increase of the price range percentage for each city:
Detached:
1) Port Moody 15.4%
2) Squamish 10.8%
3) Pitt Meadows 9%
4) Sunshine Coast 7.1%
5) Coquitlam 6.2%
6) Port Coquitlam 5.1%
7) South Delta 4.9%
8) West Vancouver/New Westminster 4.2%
9) Maple Ridge 3.4%
10) North Vancouver 2.9%
11) Richmond/Vancouver West 2.7%
12) Burnaby 2.6%
13) Vancouver East 2.4%
Apartment:
1) West Vancouver 9.8%
2) South Delta 5.7%
3) Maple Ridge & Pitt Meadows 3.2%
4) Port Moody 3%
5) Port Coquitlam 2.7%
6) North Vancouver 2.2%
7) New Westminster 2.1%
8) Vancouver East 2%
9) Richmond 1.5%
10) Burnaby 1.3%
11) Vancouver West 1.2%
Although sales are down no matter we compare to last year same month or last month, the housing price are still appreciating. To see the full report, please click November Vancouver Housing Stats
Should you have any question, please feel free to contact me at 604-412-5860 or email me at tinamak@tinamak.com
Nov 5, 2011
Chinese investment in Australia
I did a live radio interview between Vancouver & Australia with Mr. Alex Caraco, CEO of CB Australia on Nov 5th on my weekly real estate radio show. That was an eye opening interview for me. I learned so much from Mr. Caraco. As we know, Canada & Australia are the 2 most popular countries to the Mainland Chinese immigrants. However, the fact is as Mainland Chinese wealth improves, they will go anywhere. I was talking to my Chinese friends recently & apparently, Chinese immigrates to S. Africa too. Vancouverites just have to feel lucky that our housing value hasn’t reached the Australia level YET. However, it doesn’t mean that day won’t come.
Just to warn you that the interview is 22 mins long because it’s bilingual. I have all questions with English & Chinese subtitles. The interview touched price range, interest rate, popular areas, school situation etc etc for us to compare to our market. Enjoy this youtube version
Nov 05,2011
How does the home auction process work in Australia?
Please click Podcast listen to Cantonese interview
Buying and selling houses at auction is hugely popular in Australia. The following is a basic guide to how the home auction process works.
Registration of Interest
Once you’ve found a property, by law, you need to contact the real estate agent and register your interest (laws vary state by state; for example, bidders don’t need to register in Victoria).
You will need to show proof of identification so take your passport, driver’s licence, credit card and bill with your name on it. You will then be issued with a bidder number which you will show every time you bid.
Registering interest does not mean you are obligated to bid. If you haven’t registered beforehand with the agent, you can do so on the day.
If you are bidding jointly, only one person needs to register but they will also be the only one allowed to bid.
Reserve Price
All properties up for auction have a ‘reserve’ price, which is the lowest price the seller is willing to accept. It is usually set just prior to the auction and is confidential. To get an idea of the reserve, research recent sales of equivalent properties in the area, or employ the services of a professional valuer.
Tip: If the vendor is receptive, you can make an offer prior to the auction.
Bidding
Once the reserve price is met or surpassed, the property is sold to the highest bidder on the fall of the hammer. The winning bidder must then sign a Contract of Sale and pay a deposit, usually 10%, on the day. The successful buyer must also have their finance pre approved by their lender. Failure to finance the sale may result in the loss of your deposit.
If the highest bid is below the reserve price, the property will be passed in. The person who made highest bid is usually given the chance to negotiate with the seller.
Oct 15,2011
Interview Shelly Zhou from Washington on Vancouver Chinese buyers buying in US
Please click Podcast(Part 1) and(Part 2) listen to Cantonese interview
This interview was in Bilingual (Mandarin & Cantonese).
1) Q:since when you noticed more n more Chinese going to buy in WA?
A:Since 2010, after Summer, Sept, Oct, more during X'mas, continuously increasing now.
2)Q: are they new immigrants? or are they Canadian citizen already?
A:Buyers usually have been living in Vancouver a few years, 5/6 yrs or even longer. Usually husbands work in Asia & wives look for property.
3) Q:what price range do they buy?
A:Principle resident: $700k to $1m. School catchment is extremely important. Investment: they are interested in buying either single strata unit, the whole apartment building or even storage facilities. Price for storage facilites can be as little as unde $200k to $3m+.
4)Q: do they pay all cash? or get mortgage?
A:Usually pay all cash, only small portion obtain mortgage because it's not easy to get mortgage approval. Fo Canadian citizen, they can get same amount of mortgage as the US citizen which is only 50%. IF not, bank only grant 25% loan.
5)Q: How does th deposit/Ernest wors?
A:Deposit(Ernest): they require min 2.5% to 3% of purchase price upon mutual agreement acceptance. They don't recommend more than 5% because in case the buyer back out the deal, they might loss the deposit. There are a few conditions usually put on the offer for 3 days: a) neigbourhood review b) inspection c) mortgage. If all the conditions have been fulfilled but buyer still want to back out, buyer's deposit monies could be forfeited. There is one very crusial point on the contract that must be filled properly or else the buyer could find himself in serious legal situation. In the contract, there are 2 check boxes regarding the right of the seller to sue the buyer in the event buyer back out the deal without any valid reason. 1) seller can sue unlimited liability 2) Seller maximum take the Buyer's deposit amount.
All these rules are based on NW Multiple listings standard form. Different States have different rules.
6)Q: what is the min down payment? is every States different? or more or less the same?
A:Down payment amount is depending on how much mortgage buyer can obtain from the bank.
7) Q:is it difficult for Chinese buyer to get mortgage? US mortgage terms are different from Canada? can u explain how mortgage works in WA?
A:It is difficult. You have to proof your income source, proof your income earning power & they will look at your Notice of Assessment. All document must be provided & if buyer's income statement is from China or other part of Asia, you must certified all documents. One way of doing it is to certify it at the US Embassy or hire US recognized translating company to do the translation. In order to get the best rate, you MUST provide all required documents. If not, buyer won't get the best rate.
Oct 08,2011
Texas Escrow closing vs Vancouver closing system
Please click Podcast listen to Cantonese interview
Different States have different rules for Escrow closings. Today I'm sharing the Texas Escrow closing vs Vancouver closing system.
Major differences as follows:
1) Canada called is as "Deposit" whereas US called it as "Ernest"
In Canada: normal practice is min. 5% of purchase price once we have an unconditional offer then the rest upon closing.
US : it can be as little as couple thousands dollars on million dollars home upon accepted offer then pay the rest upon closing.
2) Tight financing approval
Texas: out of the area appraiser was being asked to do the appraisal. Then they need to approve the appraisal report by another dept & sometimes take a long time. Bank still has the right to refuse funding to the buyers in the last minute if they "Doubt" the buyer's intention on the purchase.
Vancouver: Appraiser writes the report for the bank & that's it.
3) Escrow closings vs our closing:
Title companies normally handle closings. Don't use lawyer like us. Lawyer only charges couple hundreds dollars. If you want legal advice, you need to pay extra. Buyer buyer & seller go to the Title companies to sign all documents. If documents are missing from any dept like the banker, buyer & seller can't close & have to go back to the title office the next day to wait again. It can be a waste of time for both seller & buyer. Both parties still have the option to back out the deal on that day. Therefore, there is no guarantee that you actually bought or sold a house until you actually sign all papers. Property taxes notices are send around October 1st, but are not due until the end of the year.
Canadian closing: easy system. Buyer & seller go to their own Lawyers or Notary Public, sign all necessary paper then the legal firm will handle all registration with Land Title office. Both Listing & Selling agents exchange keys & delivery keys on Possession date without Buyer & Seller meeting each other.
4) Property tax:
I was in Forth Worth area. Property tax dept has a lot of arrears payment due to the amount of foreclosure properties. The govt then raise the other properties owners property taxes. My friend's 6000 sf house is paying $24,000 a year. However, the property tax on agriculture lands are way less than the residential property, only thousands of dollars on hundreds or even thousands of acres of land.
Thank goodness we don't have this problem in Vancouver.
Should you wish to buy properties in US, please give me a call & I can refer you to agents in the area you are interested in. You must understand the system before you do any purchase. It's very different from Vancouver.
Sept 10,2011
Joint tenants vs. tenants-in-common:
Please click Podcast listen to Cantonese interview
Most home owners usually don't know the different between the 2 & when they ask if there is any difference, the short answer is "Yes".
When a property is held in joint tenancy, this means "the last man standing" owns the property. When one joint tenant dies, the entire property belongs to the remaining, surviving joint tenant(s). Whoever is the last joint tenant to die owns the property. Only that last person can use his or her Will to give the property to someone else.
For example, Alan, Bob & Charlie are joint tenants of a house. Alan passes away. Even though Alan would like to leave his share to his wife, he can't because he's a joint tenant. Bob n Charlie then own the property. Bob dies. Charlie now owns the whole property. Because Chris is the only name on title now, he can leave the property to his wife & children. There is nothing for Alan or Bob's families.
Tenants-in-common is a different story. In this arrangement, each person owns a half, or third, or some other portion that belongs only to them. They can leave their share to someone in their Will or sell it (never mind the logistical problems of trying to sell one third of a house).
To adapt our example above, let's say Alan, Bob & Charlie are tenants-in-common of the property and each owns and equal 1/3. When Alan passes away, he leaves his share to his wife, Deana. Now the owners are Bob, Deana and Charlie. Then Bob passes away and leaves his shares to his wife, Roberta. Now the owners are Deana, Roberta and Charlie. In this way, each of the individual owners retains control of his or her share. If there is no Will, there will be an administrator appointed by the court. Whoever is the beneficiary of the estate will become the new owner of the deceased's portion of the property. The portions of the property owned by the other tenants-in-common are not directly affected.
Between a husband and wife, a title is almost always held as joint tenants. This is so that when the first spouse dies, the other one will automatically own the family home without having to go through probate. Note that this is not always done in second marriages, depending on the situation.
Aug 27,2011
Importance of having a will
Please click Podcast listen to Cantonese interview
There is a recent case happened that a BC resident passed at the age of 62 without a will. Her husband then asked wife's sister to help prepared a will because the couple didn't have children. The problem is the husband didn't sign it before he died a year after. All of the couple's possessions are now in the custody of the Public Guardian & Trustee of B.C., which is searching for the husband's overseas distant blood relatives but no relatives are found. The couple didn't have a huge pile of assets but had some life insurance money, investments in the bank, paintings & jewelries. Now the wife's family faces the prospect of buying back family heirlooms including jewelries that the wife inherited from her mother from public auction.
20% of B.C. residents' over 55 don't have a will, a number that rises to 51% among those between the ages of 35 & 54 according to recent poll study. Only half of the adults have a will. It is particularly important if you have acquired assets such as real estate.
New legislative changes pending to regulations around wills by Sept 1st, 2011.
1) One of these changes affects the amounts granted to the surviving spouse in cases where there is no will. Under existing law, the surviving spouse is entitled to the first $65,000, with the balance divided between the spouse and the couple's children. That minimum will be increased to $300,000 under the new law, or $150,000 in cases where the deceased has children that are not also the surviving spouse's
2) pending change is the minimum age at which somebody can have a will, which moves from 19 to 16. Some younger people under 19 are acquiring substantial assets
3) 3rd changes involve representation agreements, which are powerful documents that cover health care treatment and other end-of-life wishes, he said. The agreements allow a person to appoint someone else to make decisions for them if they are unable to make decisions themselves, and permit the appointment of a monitor as a check on the representative's activities.
More information on the Sept. 1 changes will be published that day on the Public Guardian and Trustee of B.C. website (trustee. bc.ca), to the Public Guardian's office.
The information will be posted in the Financial and Personal Care Services for Adults category under the Incapacity Planning
Aug 06,2011
What is the difference between hiring a lawyer vs a notary public on real estate closing?
Please click Podcast listen to Cantonese interview
The difference between lawyers and notaries is something like the difference between doctors and nurses. Virtually every lawyer has an undergraduate degree and a law degree from a recognized university. A Notary Public, while they must have matriculated from high school, their training consists of anywhere from a six-month correspondence course to a two-year correspondence course.
Most real estate deals are fairly straightforward and both a lawyer and notary will prepare the documents for you.
If you are buying a home, they will:
conduct a title search
investigating titleLand Title Registration fees
obtain tax information
andany additional info to prepare a Statement of Adjustments.
Work with mortgage company's Lawyer/Notary
prepare closing documents,including a title transfer, mortgage, property transfer tax forms and forward them to the seller’s lawyer or notary for execution.After you sign your papers, the lawyer or notary will register the transfer and mortgage documents and transfer funds to the seller’s lawyer or notary.
If you are selling a home, they will:
attending to execution documents
Costs of clearing title, including: discharge fees charged by encumbrance holders
After closing, deposit funds into the seller's bank account or prepare cheque for seller to pick up in person.
You are probably saying, "What's the big deal? Most real estate deals are simple and the secretaries do most of the work anyways." You would, in many cases, be right. Nine out of ten residential real estate deals are fairly straightforward. What if you are the odd man out, that unlucky tenth deal?
For example, if you ask questions like: "I think my neighbour's fence is on my land, what should I do?" or "I allowed the new buyer conduct minor renovation on my vacant condo & now the trades had a plumbing accident & water leaks to the lower floor, what should I do? the notary cannot give you advice on what your recourse is.
One of the common aspects about the notary - solicitor division involves the perception that notaries are somehow cheaper then lawyers. Sometimes that is true but sometimes it isn't. Some notaries are more expensive than some lawyers and, of course, prices may vary from lawyer to lawyer and notary to notary. One simple example, you wouldn't know if they use first class or third class courier but it affects the time the Seller receive the funds from the transaction.
I often decide on who I would like to work with based on:
1) if the lawyer or the notary they handle the file themselves or like most cases just supervise the preparation of documents.
2) Can I communicate to the lawyer or the notary directly? or I can only talk to the secretary.
It is fairly safe to say, however, that you tend to get what you pay for, whether it be a cheap notary or a cheap lawyer.
July 30,2011
Does buyer needs to conduct inspection when buying new property?
Please click Podcast listen to Cantonese interview
pls click the link to view the content radio show July 30
July 23, 2011
Summary of Vancouver 5 major cities in the first half of 2011
Please click Podcast(Part 1) and(Part 2) listen to Cantonese interview
There are a few Economists predicted Vancouver housing market is going to drop. They range from 1.6% in the 2nd half of 2011, 15% by 2012 & 25% within 3 years. Back to 2008, Economists predict Vancouver market was going to drop as big as 35%. However, I shared with the listeners in the past that even Economists said their accuracy maybe 20%-30%. I feel that the world leaders have learned a good lesson from 2008. I logically think they will do their best to avoid it repeats the 2008 situation again. I always said the weather forecasts can only forecast the next couple of days, can I believe in their 3 yrs prediction? No matter we hear positive or negative news, I hope we don't treat these news like watching the stock market.
There are 4 major cities in Lower Mainland & 1 city in the Fraser Valley area that are popular to the Chinese new immigrants. Let's me start to share the following areas with you:
| Richmond | |||
| Total | over | at | |
| Jan | 206 | 77 | 17 |
| Feb | 251 | 88 | 21 |
| March | 207 | 57 | 19 |
| April | 138 | 27 | 8 |
| May | 145 | 18 | 7 |
| June | 147 | 11 | 7 |
| July | 53 | 7 | 3 |
| West Vancouver | |||
|
|
Total |
over |
at |
| Jan | 64 | 6 | 4 |
| Feb | 111 | 18 | 7 |
| March | 135 | 28 | 10 |
| April | 149 | 31 | 14 |
| May | 160 | 46 | 8 |
| June | 116 | 27 | 6 |
| July | 44 | 8 | 2 |
| White Rock | |||
|
Total |
over |
at |
|
| Jan | 114 | 15 | 10 |
| Feb | 180 | 29 | 7 |
| March | 231 | 48 | 24 |
| April | 208 | 22 | 13 |
| May | 184 | 19 | 4 |
| June | 115 | 17 | 12 |
| July | 43 | 3 | |
| Burnaby | |||
|
Total |
over |
at |
|
| Jan | 83 | 17 | 2 |
| Feb | 135 | 30 | 6 |
| March | 153 | 57 | 5 |
| April | 152 | 58 | 6 |
| May | 144 | 59 | 9 |
| June | 101 | 32 | 9 |
| July | 48 | 13 | 3 |
| Vancouver West | |||
|
|
Total |
over |
at |
| Jan | 168 | 53 | 11 |
| Feb | 261 | 114 | 17 |
| March | 258 | 109 | 16 |
| April | 214 | 81 | 13 |
| May | 239 | 80 | 13 |
| June | 180 | 66 | 10 |
| July | 65 | 24 | 3 |
Jul 16,2011
Rental Housing Crisis looming:
Please click Podcast listen to Cantonese interview
Metro Vancouver needs 65,000 new rental units a year, yet only 600 are built annually. Metro Mayors blamed the Federal Govt eliminated tax incentive & capital gains exemption in the 1980s & 1990s. This resulted in landowners focusing more on developing condos because they are more profitable than rental housing. Since 2004, only 6% of new market development has been rental housing, despite the fact 52% of residents don't own their own units. Condo units tend to be on average 45%-60% higher than typical rentals because they include features like Concierge service, in-suite laundry & fitness facilities. However, they have the "saving grace" in Metro Vancouver because they have eased the rental crunch by adding new stock to the rental pool. To read more, go to Rental housing crisis looming.
July 09,2011
Real Estate Market Update in Canada & What is happening in Vancouver market
Please click Podcast listen to Cantonese interview
Based on one recent report by the Teranet-National Bank Composite House Price Index on Canada 6 major metropolitan areas Toronto, Montreal, Ottawa, Halifax, Calgary & Vancouver. It was the 1st time in 10 months that prices rose in all 6 cities. Analysts said the higher prices shown in the past few surveys were fuelled by a rush to buy before stricter mortgage rules came into effect in the spring, therefore, it should not be a lasting trend. The pro-Spring market is being fuelled by both local home owner buyers as well as both local & foreign investors
Numerous reports concluded the Vancouver housing market is driven by Mainland China immigrants. Since July 1st, immigration law has changed. Investor program limited to 700 people. Skilled worker 500 per profession. However, Montreal investors program is going to increase the number of applicants. I strongly believe this new policy doesn't reduce the current number of immigrants coming to Canada. It is simply for the purpose of easing off the backlog cases. I'm not surprised the immigration department will relax the policy once again when the circumstances improved.
Some Economists predict Vancouver housing price is going drop 25% due to the new immigration policy, other Economists disagreed. A sharp and brisk tightening cycle is unlikely. There are two reasons trigger for a price crash, quick increases in interest rates and a high-risk mortgage market sensitive to changes, they are both not in play. Even in the weakest segment of the mortgage industry
Households with both low equity positions and high debt-service ratios only account 4.6% of the total.
“Shock the system with a 300-basis point rate hike and that number would rise to a still-tempered 6.5%!” Historically, even in that group, the default rate has been well below 1%. Short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.”
Vancouver housing market is a very unique market. There is no one theory can analysis our market. All I recommend is we should all empower knowledge to make sensible decision. This is how I educate my buyers. I always have a meeting with them, analysis the market for them, listen to what they want then make appropriate recommendation. IF you or your sphere of influence want to understand the market in regards to where to invest, make an appointment with me at tinamak@tinamak.com or 604-412-5860 & let me taylor made an investment program that is suitable to you personally.
July 02,2011
Landlord and Tenant Fact Sheet---Selling a Tenanted Residential Property
Please click Podcast listen to Cantonese interview and click landlord and tenant fact sheet
to read the content
June 18,2011
Where to invest in today's real estate market?
If you understand Cantonese, pls click my radio show podcast to hear the live interview.
Vancouver Canada is the best place in the world to live. This is according to the top 10 chart of the world’s most liveable cities revealed by the Economist Intelligence Unit. This is the fifth straight year that Vancouver, with its world class services and facilities has topped the chart. This time the report put its victory in part to the massive infrastructure boost the city received as host of the Winter Olympics 2010. Click here to read details: Vancouver is the Best Place to Live in 2011 Based on the recent report I sent you from our Coldwell Banker Real Estate Home Listing Report, in the top 10 most expensive housing market in the country, BC has 4 cities on the chart. #1 Vancouver, #2 Kelowna, #3 Burnaby, #6 Victoria. Among N. America, Vancouver is #3 most expensive market behind California's New Port Beach & Pacific Palisades. The Canadian market continues to experience record or near-record housing prices in major markets across the country with Western Canada posting some of the nation's highest prices. Click here to read details: Survey for the most expensive homes in Canada Even though we had the Stanley Cup incident, Vancouver residents showcased the REAL citizens of Vancouver to the world in all their amazing gracefulness the very next day. I've heard people asked if this will affect our housing market. I personally don't think we need to worry at all. We have so many immigrants all over the world as well as migration within. Our housing market shows it will continue to be very strong. Help your children to start invest in their early stage. Read the chart below from the real estate board May housing stats & get some idea where is appropriate location to invest. If you have further question, please don't hesitate to call or email me.
B. Regards, Tina
May 28,2011
Canada Banks easing qualifications for conventional mortgage loans & apartment market vacancy rates:
Please click Podcast listen to Cantonese interview
Bank of Canada likely raise interest rates by 0.25% in July, and as much as a further 1.5% by Fall. As investors, get yourself pre-approved to the current low interest rates. Last month, Scotiabank lowered its conventional qualifying interest rates, and last week FirstLine(a division of CIBC) did the same. Lower qualification rates make it easier for borrowers to qualify for variable & 1-4 year fixed mortgages. Whereas big banks have been using posted 5 year fixed rates to qualify shorter-term conventional mortgages.
Major banks are making it easier for those with at least 20% down qualify for a mortgage, according to a recent report in Mortgage Broker News. These qualifying rates are for those who do not require Canada Mortgage & Housing Corporation mortgage insurance (or private insurance) for high-ratio loans.
Those thinking of getting into the B.C. apartment market needs to know Metro Vancouver & Victoria cap rates are less than other part of B.C. The typical cap rate for recent apartment building sales are in the 4.6% range in Victoria. Average rents in Victoria are $1,024 for a 2 Bedroom & $806 for 1 Bedroom from a year ago. The current vacancy rate is 1.5%, the 6th lowest in Canada n expects to fall to 1% this year in the capital city. The cap rates will remain among the lowest in Canada. In order to have higher cap rates, investors might want to consider outside the Metro Vancouver but the vacancy rates are higher. Prince George is around 7%, Abbotsford & Chilliwack are at 6.5%, Squamish has a 5.2% vacancy rate and much of NorthWest B.C. & the Cariboo in double digits.
If you wish to know more, please contact me at 604-412-5860 or tinamak@tinamak.com
May 28,2011
Can Canadians retire handsomely?
Canadian Middle-class retirement outlook takes hit: the radio show discussion is based on this report. How Canadian should help their children or grandchildren build their wealth through real estate. Pls click the link below for report details : Middle-Class retirement outlook takes hit
http://m.theglobeandmail.com/report-on-business/middle-class-retirement-outlook-takes-hit/article2002892/?service=mobile
May 07,2011
Greater Vancouver housing market sees typical spring activity in April
Enclosed the April housing stats from Vancouver real estate board. I'm sure u have heard about it on the news or read on the newspaper. However, the following article will allow u to understand it in more details.
Click the podcast I enclosed here listen to the summary version I did on my May 7th, Saturday AM1320 Radio Golden Page radio show.
Greater Vancouver saw a typical, solid month of residential home sales on the Multiple Listing Service® (MLS®) in
April, in contrast to the near record pace witnessed in the two preceding months.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.
Looking back further, last month’s residential sales represent an 8.8 per cent increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8 per cent decline compared to the 3,387 sales in April 2007.
“While it continues to be a seller’s market in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,” Rosario Setticasi, REBGV president said. “The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS®, as there were more detached and townhome sales this April compared to last year.”
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,847 in April 2011. This represents a 23.5 per cent decline compared to April 2010 when 7,648 properties were listed for sale on the MLS®, which was an all-time record for April. Compared to March 2011, last month’s new listings total registered a 14 per cent decline.
At 14,187, the total number of residential property listings on the MLS® increased 8.2 per cent in April compared to last month and declined 10 per cent from this time last year.
“There’s considerable variation in activity within the communities in our region. This is causing home price trends to differ depending on the area,” Setticasi said. “Your local REALTOR® is a valuable resource for obtaining the most accurate, up-to-date market evaluation.”
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.
Sales of detached properties on the MLS® in April 2011 reached 1,402, an increase of 2.3 per cent from the 1,370 detached sales recorded in April 2010, and a 17.8 per cent increase from the 1,190 units sold in April 2009. The benchmark price for detached properties increased 7.4 per cent from April 2010 to $879,039.
Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property increased 2.9 per cent from April 2010 to $409,242.
Attached property sales in April 2011 totalled 622, a 1 per cent increase compared to the 616 sales in April 2010, and a 4.7 per cent increase from the 594 attached properties sold in April 2009. The benchmark price of an attached unit increased 2.4 per cent between April 2010 and 2011 to $514,670.
April 9,2011
CANADA A ‘SAFE HAVEN’ FOR REAL ESTATE INVESTMENT
For those worrying that the Canadian real estate market is in a bubble ready to burst and unleash a U.S.-style financial collapse, it’s time to do some economics homework, says Real Estate Investment Network President Don Campbell.
________________________________________
By Shane Buckingham
CRE Senior Staff Writer
Please click Podcast (Part 1) and (part 2) listen to Cantonese interview
For those worrying that the Canadian real estate market is in a bubble ready to burst and unleash a U.S.-style financial collapse, it’s time to do some economics homework, says Real Estate Investment Network President Don Campbell.
What the sceptics are missing, Campbell told a crowd of more than 300 delegates at CRE’s Investor Forum, is that today’s global economic uncertainty has positioned Canada as “safe haven” for international investors looking for a secure place to store their wealth.
Situations, such as the tsunami and nuclear disaster in Japan, rising tensions in the Middle East and North Africa, and the mounting debt crisis in Europe, along with a slow, wobbly U.S. economic recovery, have many investors rushing to put their capital into Canadian real estate.
For instance, Campbell talked to an investor from Bahrain who’s investing more than $200 million in Canada because he’s concerned about the instability in his country, where there have been a series of violent clashes between government forces and protesters.
The 3 Fs
Aside, from the stability factor, Campbell told delegates that the critics are also overlooking the growing demand for what he calls the three “Fs”: food, fuel and fertilizer.
"Canada is uniquely positioned to provide the world with the three ‘Fs,’ and our supply chain is safe. The inflation in these commodities will drive prices upwards and boost jobs into key areas of the country, which in turn will lead to migration of people to those regions, driving real estate and rental demand upwards," Campbell said.
Consider the world’s food supply. The United Nations Food and Agriculture Organization reported in March that global food prices reached their highest point in the last two decades during February.
Not to mention, salt water that washed over the Japanese crops and the nuclear fallout in and around the Fukushima Reactor has virtually destroyed the soil in many areas of Japan.
“Did you know we’re one bad harvest away in China from starvation?” Campbell told delegates.
This precarious situation has arisen in a decade during which about 300 million Chinese will move from the countryside to urban centres. That means China will have to switch to more intensive form of farming to feed its people, Campbell said.
And the only way they’re going be able to do that is by using petroleum products, such as potash, which is mined in Canada and Australia, he added.
Then, there’s rising demand for fuel, which Canada can provide from the country’s large oil reserves, second only to Saudi Arabia.
The growing demand for oil and natural gas sector means more jobs and more government revenue, Campbell said, which means more investment in social programs such as education and health care.
One more F
There is, however, one more F Campbell added to the other three: forestry. Canada will be entering into a “forestry super-cycle,” he told delegates, as Japan, a large importer of high-quality lumber, starts to rebuild and the U.S.-residential construction sector begins to recover in 2014.
“You’re going to see lumber markets spike in the next few years, so that means more jobs,” he added.
All this translates into more overall economic growth. Campbell predicts that Canada’s gross domestic product during 2011 will reach 3.3%.
April 09, 2011
2011 1st quarter stats for regions that are popular to Chinese immigrants
Please click Podcast listen to Cantonese interview
Check out these interesting detached house & resale apartment sales stats between Jan & Mar in some popular Chinese immigrant’s areas:
Burnaby North & South:
Total sales: 287
Sold over 1m: 90
Sold over asking above 1m: 16
Sold over asking under 1m: 78
Resale Apartment total sale in Burnaby:447
Vancouver West:
Total sales: 654
Sold under 1m: 12 only 1 sold over asking
Sold over asking:312
Resale Apartment total sale in Vancouver West: 1254
Vancouver East:
Total sales: 487
Sold over 1m: 66
Sold at or over asking: 216
Resale Apartment total sale in Vancouver East: 467
Richmond:
Total sales: 651
Sold over 1m: 334
Sold over asking over 1m: 124
Sold over asking under 1m:143
Resale Apartment total sale in Richmond: 540
April 02,2011
Mainland Chinese buying wave hit Burnaby area
Please click Podcast listen to Cantonese interview
During my 1st real estate seminar in January, I share my view about Burnaby being the next hit area for Mainland Chinese buyer. Well, 2 months later, here they come. Check out these stats below:
Burnaby Stats between Jan & Mar, 2011:
January total sales: 71, 21 over 1 million, highest sold price at $2,460,000
February total sales: 117, 35 over 1 million, highest sold price at $4,300,000
March total sales: 99, 34 over 1 million, highest price at $1,925,000
Sold at asking price or over asking over 1 million mark:
January: 1
February: 5
March: 10
Sold over asking under 1 million mark:
January: 14
February: 27
March: 37
Highest price sold in Burnaby in 2010 was at 2 million, so far the highest price is at $4.3m. To understand the market condition in details, email me your contact info at tinamak@tinamak.com or call me at 604-412-5860.
March 26, 2011
Market analysis on White Rock & Morgan Creek areas between Jan & Feb 2010 & Jan & Feb, 2011:
Please click Podcast listen to Cantonese interview
We have been focusing on Richmond & Vancouver West area in the recent months how Mainland Chinese immigrants influence the market in those 2 areas. Today, I would like to share the market condition in the Fraser Valley areas. Fraser Valley incl: N. Delta, Surrey, White Rock (S. Surrey), Langley, Abbotsford & Mission. The most popular areas to the Chinese buyers are White Rock & Morgan Creek.
2010 sales: Jan (24 units) + Feb (31 units)= 55 sales.
listings sold in Feb: 31units
Total 9 sold over 1 million, highest price at $1,686,000
4 units sold by Chinese agent among the million $ listings
2011 sales: Jan (44units) + Feb (66 units) = 111 units
Listings sold in Feb: 66 units
Total 33 units sold over 1m, highest at $2,850,000
21 listings sold by Chinese agent among the million $ listings.
I was showing many properties in those 2 areas with my non Chinese buyer n many listing agents said I was the only non Chinese group buyer. There was a Morgan Creek listing sold back in Oct for $1,387,000 n now back on the market at $1,598,000. Had offer at 1.5m with 8% increase in the last 5 months but seller wouldn't sell at that price.
Should you wish to know the market condition on regular basis, contact me at 604-412-5860 or email me at tinamak@tinamak.com
March 19,2011
Code of Ethic for real estate agent in BC:
Click here to listen to the podcast (1) (2) (3) (4)
Mr. Satnam Sidhu, Former President of Real Estate Board of Greater Vancouver, Former President of Canadian Real Estate Association & Former Chair of the Real Estate Council of B.C. Tina is honored to have the opportunity to interview Mr. Satnam Sidhu to share his experience, knowledge & insight with the listeners. Don't miss out this English/Cantonese interview.
1. Is there any code of ethics against the real estate agent?
2. What are the requirements of the Code?
3. Why does such code so important to the public?
4. Under this code, what is the role of a real estate agent?
5. Is the code different from province to province? Are there any special requirements in BC?
6. Does the standard of conduct exceed the basic legal requirements?
7. If an agent violent the code of ethics, what is the punishment?
8. How about the license of the agent? Will it be suspended or pulled?
9. What is the qualifications requirement of a real estate agent eg. English Level?
10. Is there any advice to our listeners when they intend to hire an agent?
March 12,2011
Canadians Optimistic About Housing
90% Canadians are confident about real estate in Canada as an investment and 85% feel that they are doing a good or excellent job of paying down their mortgage. In B.C, interest in home purchase has remained steady.
To read more about Canadians Optimistic About Housing, here's the report details: http://www.propertywire.ca/news/national-news/887-canadians-optimistic-about-housingrbc.html
Click Podcast to listen to the brief summary in Cantonese.
Feb 26,2011
What is MLS(Multiple Listing System) & why should buyers have their own buying agent?
Please click Podcast listen to Cantonese interview
Canada has the best unified MLS system in the world. What we have here is all listings submit to the real estate board & even the public can see all listings across the country on our public website. However, only agent can see the sale price. Agents can then share all the sale prices with their buyers. Everything is open & there is nothing to hide. New immigrants come to Canada usually not used to the way we operate because when they buy in their own countries, all real estate companies prefer to operate with exclusivity especially the big players. They don't want their competitors to gain access into their inventory data base. Therefore, they can make money from both buyers & sellers. Do you think those types of agents are working for your best interest or do they just want to close the deal & make their commission?
Well, when new immigrants are used to this operating system, it is totally understandable that they view all real estate agents are the same - just want to sell them something & make the commission. In fact, new immigrants need to understand that it is the safest & fairest process buying in Canada. Since the info is public info, all the buyers need to do is to interview a few agents incl the one being referred to you by your friends. We all have different style to do business. However, the most important element is that you want your agent to work for your best interest. Knowledge is everything. Your agent should be able to give you the right advice where you should buy. Also, should you just go out & shop for properties yourself then call up one of the agents from the business card that you have collected? Don't expect that agent will be working for your best interest. Just treat the agent the way you want to be treated with respect & loyalty. It is very important for your agent to know your needs so they can give you the right recommendation. Even if you go to buy the pre-sale project, bring your own agent. Have your agent explain the process of buying & what do you have to be aware of when you buy. You don't want to get into any legal problems. The sale people in the pre-sale sale centre is unable to give you any further discount so why not bring your own representative.
Be loyal to your agent, have a life time realtor who works for your best interest is better than working WITH whoever is willing to give you the kick back. I always say if an agent cannot negotiate for their own commission with you then don't expect them to negotiate a good price when they sell your home or when you are buying another home.
Should you wish to know more, pls call Tina at 6040-412-5860 or go to my site at www.TinaMak.com or www.TinaMak.ca (Chinese)
Feb 12. 2011
Interest Rate vs Economy
Please click Podcast listen to Cantonese interview
Well, we can't have our pie and eat it too! The interest rate hike was made based on surveys from both side of the border detecting identical pattern of rising confidence. A hopeful sign for the still fragile recovery. A stronger economy will offset the effects of higher mortgage rates and keep Canadian house prices stable over the next two years, according to the Royal Bank of Canada. If the economy stays weak, the interest rate will stay low, & country with huge debt like US would be able to pay their interest easier. So, do u want to see the economy improve or remain weak??
As far as I'm concern, even though the rate has gone up, it is still extremely historically low! It has been 20 PLUS % in 81, 13% in the early 90's to today's lows OF 4%. I remember when I bought my investment property in 2008 during the economic crisis. I asked the experienced mortgage brokers about locking the rate or stay IN A variable when the 4% 5 yr fixed was available. They told me to lock because they firmly believe the rate couldn't possibly go below 4%. Guess what, it has been below 4% for over 2 years. For those who has rates below 4%, ENJOY! Today's 4.04% is not going to kill the housing market in my opinion, and neither will 5% or 6%. Canadians in the past 2 years have learned lessons from the Global economic crisis. My clients these days are a lot more cautious & only spend on what they can afford.
Will the interest rate keeps going up? Well, the RBC report said the economic recovery will gather strength in 2011, continuing to boost employment and family incomes. On the downside, interest rates are expected to rise. One interesting point in the report is that one Economist suggested higher interest rates could drive prices down as much as 25% over the next 3 yrs while the Canadian Real Estate Association Economist suggested even though mortgage rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. It raised its sales forecast for the next 2 years as it suggested that a stronger economic recovery & continued low interest rates would keep the market balanced.
Despite who said what. The fact is January market starts stronger than expected. In the last 12 months, detached house in Richmond went up 22% while Vancouver West went up 12%. By 2040, Metro Vancouver’s population will grow by 1.2 million newcomers and employment will increase by 600,000 new jobs. In the next decade alone, to accommodate new residents, the demand for ownership homes will increase by 120,700 units and the demand for rental units will increase 64,900 units!!! Based on traditional analysis, yes, housing prices especially in Vancouver may be overvalued but based on the population forcast. It's all about supply & demand. Don't forget Canada is not just the best place to live in the world politically, it is the safest place to invest in the world as well.
Back to my last week topic. How much do you want to believe in the Economists prediction? You have to use your own judgement just like everything else. After all, real estate is not like stock. We are the President of our property. We decide whether we want to sell or not. Unlike stocks, where you are only a small share holder, we own 100% of our property. If interest rates squeeze out the entry level buyers, it won't stop the investors to buy as more people will be looking for rent if they can't afford to buy.
Feb 02,2011
10 most expensive real estate cities & 18 most unaffordable cities in the World. Where is Vancouver stands in the chart?
Please click Podcast(part 1) and Podcast (part 2) listen to Cantonese interview
First: Monte Carlo, Monaco (4420 U.S. dollars per square foot).
Monte Carlo residents can enjoy the blue coast, sandy beaches, enchanting nightlife, as well as the benefits of tax havens, but they also have to pay the price. This resort ranks first on the world's most expensive real estate market list for two consecutive years with an average price of up to 4420 U.S. dollars per square foot.
Second: Moscow (1937 U.S. dollars per square foot).
Thanks to the strong economic growth (and to some extent due to the recent high oil prices), and driven by rising housing prices in the first three quarters, Moscow jumped to the top three.
Third: London (1928 U.S. dollars per square foot).
As one of the world's financial centers, London house prices are certainly high, reaching 1928 U.S. dollars per square foot.
Fourth: New York (1384.1 U.S. dollars per square foot).
New York housing prices dropped from last year's second place to sixth place, and this is somewhat unexpected. The average New York housing price is 1384.1 U.S. dollars per square foot.
Fifth: Hong Kong (1373 U.S. dollars per square foot).
Naturally, the shopping paradise housing prices are high. Due to land scarcity and the big resident population, Hong Kong's house has always been in short supply.
Sixth: Paris, France (1126.20 U.S. dollars per square foot).
Paris, fashion capital, and housing prices are as expensive as luxuries.
Seventh: Tokyo (1103 U.S. dollars per square foot).
As the world's most crowded cities, Tokyo has a high house prices is not surprising.
Eighth: Singapore (901.20 U.S. dollars per square foot).
Ninth: Rome, Italy (851.50 U.S. dollars per square foot).
Tenth: Mumbai, India (851 U.S. dollars per square foot).
In Mumbai prime residential area the price is US$1,500 & more square foot. One apartment which was sold for US$2,800 per sf. In these prime area, the rental is around US$6,000 per month for a 2700 sf foot apartment. In middle class residential area the price would be US$500 per sf.
Severely Unaffordable Housing Markets Ranked by Severity of Housing Unaffordability:
Rank Nation Metropolitan Market Median Multiple
1 China Hong Kong 11.4
2 Australia Sydney, NSW 9.6
3 Canada Vancouver, BC 9.5
4 U.K. Bournemouth & Dorset 9.3
5 Australia Coff's Harbour, NSW 9.1
6 Australia Melbourne, VIC 9.0
7 U.S. Honolulu, HI 8.5
8 Australia Sunshine Coast, QLD 8.4
9 U.K. Warwichshire 8.1
10 U.K. London(Greater London Authority) 7.9
11 U.K. Plymouth & Devon 7.9
12 Australia Gold Coast, QLD-NSW 7.7
13 U.K. Swindon & Wiltshire 7.5
14 Australia Geelong, VIC 7.4
15 Australia Wollongong, NSW 7.2
15 U.S. San Francisco-Oakland, CA 7.2
15 U.S. Santa Cruz, CA 7.2
18 Australia Adelaide, SA 7.1
18 Canada Victoria, BC 7.1
18 U.K. London Exurbs (E & SE England) 7.1
Sales Volume between Jan 17th & Feb 5th, 2011 in Richmond & Vancouver Westside. Richmond had 100 sales, 42 sold over asking. Vancouver Westside had 79 sales, 34 sold over asking. If you wonder if there is more room for Vancouver housing price to move up, well, I believe as long as our Asian investment keeps coming in, I don't doubt the possibility at all. Even as unaffordable as Hong Kong, they had 50% increase in the past 2 years & anticipate higher this year. Therefore, don't understand estimate Vancouver's potential. Vancouver has been a popular city among the Mainland Chinese conversation.
Feb 05,2011
Economists prediction vs Reality on housing prices
Please click Podcast listen to Cantonese interview
Recently I read a few online articles & one of them was an interview with Robert Shiller, Economics Professor at Yale University. The interesting point was that he admitted the economists only advising their firm get prediction right about 3 - 4 times out of 10. Think how difficult it is to predict the weather. Overall, though, weathermen do okay, because they know their limits; they look four or five days ahead, but not much more. Economists, in contrast, have to make 5 years or more long-range predictions. Couple of weeks ago, Egypt was fine, now, the country is in a mess. How could Economists predict this was going to happen? Paradoxically, while everybody knows that forecasts are mostly wrong, everybody still demands them.
Back in 2008 during the Global Economic Crisis. Many Economists predicts real estate market was going to drop 30% to 40% but it never happened. While the market rebounded a little bit, some Economists did another prediction for further housing price drop. I attended one of the Vancouver Economists seminar at that time. During his seminar, he firmly believe Vancouver housing prices were going to drop for another 15%. I challenged him afterwards how he could be so sure that our market would drop another 15%, he said it was the worst scenario prediction. However, I questioned him why he didn't tell the public that it was his worst case scenario prediction instead, he presented it the way that the market WOULD drop for 15%.
Our recent tighten on mortgage regulation was not enforeced purely for mortgage debt. It was very clear that the consumer debt was on a rise & created a concern. However, Economists would not understand how Mainland Chinese immigrant way of spending habit. I recently sold a listing listed just under 2 million & sold ALL CASH at $2,316,000. Interest rise doesn't affect the Mainland Chinese buyer. Housing prices in popular cities around the world can somehow wear the storms better than the other less popular cities. Cities like Vancouver, Toronto & Calgary in Canada, Taipei in Taiwan, Shanghai & Beijing in China, New York, Mahattan, Washington in US. We just have to accept the fact that we need to pay the price to live in the World's popular cities.
Jan 15,2011
2011 BC assessment & if it relates to the value of the property value
Click here to view the 2011 Market Movement Map all BC cities:
http://www.bcassessment.bc.ca/Pages/2011CompareAssessmentsOnlineAreaMap.aspx
I'm sure most of you have received the BC assessment in mail. Go to visit www.bcassessment.ca to compare your assessment with your neighbor’s property. Just to remind you that you need to submit your appeal by Jan 31st, 2011. For those who wants to sell the property, they probably would like the high assessed value. For those who are home owners would prefer to keep the assessed value on the low side.
Assessment’s appraisal reflects the value as of July 1 of the previous year. When reviewing the annual property assessment notice, property owners should check that it reasonably estimates what the property would have sold for on July 1 of the preceding year, and that it relates to the value of other properties in the neighbourhood.
Do taxes increase as a result of the gain on the assessment value? Not necessarily. One of the reasons that the property taxes increase is the tax authority raises the property tax rate to raise more revenue for the city. eg. Vancouver raises property tax for the 2010 Winter Olympic game.
If you are interested in deferring paying your property tax, here's the eligible criteria to apply the Property Tax Deferment Program:
- Be 55 years of age or older
- OR a surviving spouse
- OR a person with disabilities
- OR have a dependent child under age 18
- Be a Canadian citizen or permanent resident
- Has to be a Principle Residence
- Have a minimum equity of 25% in your home
- Have a fire insurance policy on your home
Listen to the Cantonese podcast for more info.
Dec 18th, 2010
Is now the best time to list your property?
Please click Podcast listen to Cantonese interview
Dec 11th ,2010
5 Tips to work with a real estate agent
Please click Podcast listen to Cantonese interview
1) Agency relationship: The agency relationship exists between you, the principal, and your Brokerage, the company under which the individual (Real Estate Agent) who is representing you, is licensed. Client can terminate working relationship with her realtors anytime without any penalty. There are 2 types of cancellation. One is "Conditional" & the other is "Unconditional".
2) How does a realtor get pay? It is important for you to understand how we get paid. We get paid on results rather than hourly wage & that’s what gives us the “incentive” (commission) to work at all hours of the day & night. The level of incentive might affect the real estate agent's level of commitment to their client.
3) How professional is the realtor? Well, since the Real Estate Board allows realtor to have second income, it is important for you to find out if your realtor devotes her time to be a full time professional realtor. It is important for you to use your life experience to judge if the agent is a “Tail Gate Realtor” or not. That's when the last time you saw your real estate agent was when you signed the contract and saw their tail lights as they drove away.
4) Knowledge & know how: To listen what our clients goals are. Give “Ultimate Service” to our clients by providing our experience & knowledge in order to protect their biggest investment in their life.
5) People before Profit: real estate agent needs to look after her client’s best interest & her commission should be secondary
Dec 04,2010
There’s No Place Like Home – If You Can Afford the Taxes
Please click Podcast listen to Cantonese interview
Presentation to the Select Standing Committee on Finance and Government Services • John Les, MLA, Chair
By Sylvia Sam, Chair, Government Relations Committee, Real Estate Board of Greater Vancouver • October 15, 2010
The story they tell is the same. They’re potential home buyers, eager and even desperate to buy a home in Canada’s most expensive housing market. Coming out of one of the worst recessions, they’ve managed to hang onto jobs and through sheer effort and thrift, they’ve saved for their downpayment, needing every cent and more.
Then comes the surprise and the shock when they realize they’re unprepared for the overwhelming taxes associated with the purchase of their property.
First it was the Property Transfer Tax (PTT), which adds about $16,000 to the average price of a detached home in Greater Vancouver. Now, new home buyers must also pay a 12% Harmonized Sales Tax (HST), which is 7% more than they used to pay with the Goods and Services Tax (GST).
Fence sitters are candid: paying both the PTT and the HST is too much. In the Board area, fewer and fewer potential home buyers can afford to buy a small starter home even in an outlying area. Even modest condominiums are taking longer to sell. Wary buyers wait, hoping the HST will be eliminated following next year’s referendum, while they calculate taxes in the Lower Mainland that are more than twice those of other areas across the province due to the higher home prices.
Over the life of a mortgage, the $96,939 in taxes (see table below) that a Metro Vancouver home buyer pays will cost a total of $152,976, using a 4.00% mortgage rate and 25 year amortization, with monthly payments of $509.92.
How have home buyers in Greater Vancouver reacted to the HST so far?
In the two weeks leading up to the July 1, 2010 implementation of the HST, home buyers jumped off the fence and into the market. In contrast, home sales in the two weeks after July 1, 2010 dropped 16%. (see chart opposite)
Although REALTORS® continue to inform buyers that the HST applies to new homes only and that there is a rebate program, buyers incorrectly believe the HST applies to all properties, including resale properties according to a recent survey.
The results of the misperceptions are clear. In the last two months MLS® home sales have further fallen and we’re hearing that home buyers are holding off buying a home until next year.
Pls click here to enlarge the chart
Dec. 04, 2010
Hong Kong Announces New Anti-property Speculation Measures
Please click Podcast(part 1) and Podcast (part 2) listen to Cantonese interview
November 19, 2010 - Financial Secretary John C. Tsang today announced further measures to curb short-term property speculation, reduce the risk of asset bubbles forming, and ensure the healthy development of the property market.
The measures include introducing a special stamp duty on residential properties on top of the current ad valorem property transaction stamp duty, and disallowing deferred payment of stamp duty, including special stamp duty, for residential property transactions of all values.
The government will table the amendments at the Legislative Council as soon as possible.
Speaking at a press conference today, Mr. Tsang said the local property market had become increasingly exuberant due to global financial conditions.
“With abundant liquidity worldwide and persistently low, in fact, ultra-low interest rates, there is a huge amount of hot money flooding into our region, including Hong Kong. This has led to hefty increases in asset prices and overheated speculative activities. There is heightened risk of property bubbles forming.”
Special stamp duty
Residential properties bought from tomorrow – either by a person or a company, listed or unlisted, and regardless of where it is incorporated – and resold within 24 months will be subject to the proposed special stamp duty payable by the buyer and seller.
The special stamp duty payable will be calculated based on the consideration for the resale transaction at the following regressive rates for different holding periods:
• 15 percent if the property is held for six months or less;
• 10 percent if the property is held for more than six months but for 12 months or less; and,
• 5 percent if the property is held for more than 12 months but for 24 months or less.
Before the requisite legislative amendments take effect, the Inland Revenue Department will record all residential property transactions during the interim period – from tomorrow to the date legislative amendments take effect – to identify the parties liable for special stamp duty. Demand notes on special stamp duty will then be issued after the new legislation is enacted.
The Hong Kong Monetary Authority will also introduce further measures to enhance risk management in mortgage lending by banks in Hong Kong, Mr. Tsang added.
“This will, among other things, include guidelines to banks to lower further the loan-to-value ratio for mortgages. This will help promote prudent lending and reduce the excess liquidity in our market.”
Risk management measures
Hong Kong Monetary Authority Chief Executive Norman Chan said a circular had been issued to banks requiring them to implement measures to strengthen risk management in residential mortgage lending business. They include:
• lowering the maximum loan-to-value ratio for residential properties with a value at US$1.5 million (HK$12 million) or above from 60 percent to 50 percent;
• lowering the maximum loan-to-value ratio for residential properties with a value at or above US$1 million (HK$8 million) and below US$1.5 million (HK$12 million) from 70 percent to 60 percent, but the maximum loan amount will be capped at US$769 thousand (HK$6 million);
• maintaining the maximum loan-to-value ratio for residential properties with a value below US$1 million (HK$8 million) at 70 percent, but the maximum loan amount will be capped at US$615 thousand (HK$4.8 million); and,
• lowering the maximum loan-to-value ratio for all non-owner-occupied residential properties, properties held by a company and industrial and commercial properties to 50 percent, regardless of property values.
The above measures take effect immediately, but loan applications in respect of transactions where a provisional sale-and-purchase agreement for the property was signed on or before November 19 will not be affected.
The Hong Kong Mortgage Corporation will introduce a cap of US$871 thousand (HK$6.8 million) on the value of property that can be covered under the Mortgage Insurance Program for all products. As a result, for mortgage loans with Mortgage Insurance Program cover starting from the 70 percent loan-to-value threshold, the maximum loan amount will be reduced from US$923 thousand (HK$7.2 million) to US$784 thousand (HK$6.12 million).
For mortgage loans with the Mortgage Insurance Program cover starting from the 60 percent loan-to-value threshold, the maximum loan amount will remain at US$769 thousand (HK$6 million).
The revision will apply to loan-to-value applications with provisional sale and purchase agreements signed on or after November 20. For homebuyers who have executed the provisional sale and purchase agreement before that date, their mortgage loan applications can be submitted by Mortgage Insurance Program participating banks for processing in accordance with the existing scope and criteria of the Mortgage Insurance Program.
Market analysis
Mr. Tsang said external factors, coupled with a low supply of flats, have prompted local property prices to surge over the past two years. Overall, prices rose 15 percent in the first nine months of the year. Compared with the ebb in 2008, prices have surged by 47 percent. Property transactions in the first 10 months of this year grew 17 percent compared with the same period last year.
“The rate of increase in the number of transactions in small and medium sized units is even greater than those in the luxury market. This suggests that the exuberance has begun to spread to the mass market.”
Short-term resale transactions are increasing rapidly, he added. In the first nine months of this year, the number of resales within 12 months of acquisition increased by 114 percent compared to the same period last year.
“These initiatives are extraordinary measures under exceptional circumstances. The effects of quantitative easing combined with other abnormal influences on our property market are far from over. We will introduce further measures if circumstances so warrant in the future.”
The Financial Secretary’s full remarks on new anti-property speculation measures are available at www.info.gov.hk/gia/general/201011/19/P201011190280.htm
Hong Kong Monetary Authority: www.info.gov.hk/hkma/
Nov.06,2010
Interview with Danny Chow from Rennie & Associate discuss what caused financial problems at the Olympic village
Please click Podcast(Part 1) and (Part 2) listen to Cantonese interview
How city hall messed up Millennium Water
By adding millions of dollars to the cost unnecessarily, Vancouver created the problem that it's trying to get everyone else to solve
BY ROB MACDONALD, SPECIAL TO THE SUNOCTOBER 16, 2010
The financial problems with the Olympic village project have not all been caused by the developers, Peter and Shahram Malek, who seem to be taking all the heat from both the media and current Vancouver councillors.
These criticisms are being levelled by people who are either unfamiliar with, or wish to ignore, all the facts surrounding the development on False Creek.
When Mayor Gregor Robertson asked me and several others to review the affairs of the Olympic village last year, I took my investigations seriously and a number of things came to light that are important to put on the table to provide some measure of historical context and balance to the discussion.
1. After the city committed to building the athletes' village for the 2010 Olympics two administrations ago, municipal staff waited too long to get the project underway. These delays created a host of costly problems, which were ultimately dealt with by the developers' company, Millennium Development Corp., to get the project completed on time.
These delays and the resulting costs were not the developers' fault, yet the city assumed they would bear the costs which were then supposed to be magically passed on to buyers.
2. The city delivered the development site with contaminated soil. Though the city would normally be responsible for cleaning up the soil on its own property, the developer was forced to pay more than $20 million to remove the contaminants. That process caused a further delay in construction of at least three months, which in turn led to higher costs because of overtime for workers.
3. The project's late start created a situation in which the development was being built at the same time as it was being designed. The city also imposed the highest possible "LEED Gold" environmental standards of design after the developer had been enticed into the deal based on the lower "LEED Silver" standard.
The rushed construction and the scope of environmental changes imposed by the city resulted in massive cost overruns that would have been impossible for any developer to control.
4. The project's late start and Olympic-related complications contributed to a transaction structure that made the project almost impossible to finance on normal lending terms. As a result, the developer had to seek out financing that bore a high interest rate that added probably another $50 million to the development. Normally, a project would be fully designed and costed out, then pre-sold to the public and financed at normal bank rates of interest, which are now about three per cent. The city threw standard development procedures out the window and the developers had to bear the extra costs.
5. With all the additional costs foisted on the developers, the project's basic hard construction cost ballooned to about $450 per square foot compared with other large-scale developments that were being built at the same time in the normal marketplace at about $300 per square foot.
The environmental and construction acceleration costs (picture men and women working 24 hours a day, seven days a week, incurring massive overtime charges) caused at least $125 million in extra costs. When one adds the additional interest that was paid because of the deal structure, the additional financial burden on the developers approaches $175 million.
6. Once the city took over the project financing, it in turn borrowed the money at an interest rate of about 2.5 per cent. Even though the city was substantially responsible for many of the project's cost overruns due to timing and environmental delays, it would not pass all the interest savings on to the developer. When I suggested to the city that this would be a fair thing to do, I was summarily rebuked.
It is worthwhile to also note that when the city now says that the developer owes more than $560 million in debt including accrued interest, you have to remember that what the city owes to its own lenders is probably $30 million less than that, because the city's incurred rate of interest is much less than the developer is being forced to pay the city.
7. The developer had to endure a host of issues associated with the Winter Games, which affected more than just the costs. For instance, the sales program had to be essentially halted for security reasons just when a world of customers had come to visit. And, of course, during that time the city's interest clock kept ticking.
8. Some people at city hall have been saying things about the development that have substantially damaged the project's salability and brand reputation -- something that no sensible lender would do.
Peter and Shahram Malek did an incredible job getting this project delivered on time for the Olympics after facing every possible obstacle. To wholly blame them for the project's financial difficulties is neither right nor fair.
So what is the real financial condition of this project? The value of the market condos after paying sales commissions, marketing costs and further interest charges is about $500 million. In addition, the extra residential rental tower and the commercial space in the project are together worth about $70 million, so the total net asset value is about $570 million.
The city now owes about $530 million on its debt, so the surplus of about $40 million could be applied to the remaining purchase price for the land on which the developer purportedly still owes the city $170 million.
If the city works with the developer and does no further harm to the project, now called Millennium Water, the city will pay off its debt and receive another $40 million attributable toward the land sale, which would be a positive outcome. Though the city would receive about $130 million less than the original land sales price, it will get about what it deserves, given its costly conduct.
Unfortunately, the developer is facing a loss of all its equity investment of about $60 million, and though the city now wants the Maleks to kick in more money, that would be plainly foolish.
If the city thinks it can sue the developer for the balance of the land price originally owed, then the biggest construction litigation case in British Columbia's history would probably ensue. That would only enrich the lawyers, damage the project further and dredge up so much toxic mud that city hall would be shaken right off its murky foundations.
Of course, the mayor realizes that this all could become politically explosive and he is understandably trying to distance himself and his political colleagues from any culpability. However, if a major legal battle ensues then it will be impossible to avoid all the flying mud, particularly when city officials have said things that have damaged the project's reputation and sales.
City staff and council should take the advice of experienced real estate professionals, such as the very capable Bob Rennie, and get all inexperienced hands off the tiller. The litigation lawyers should be kept away from the deal.
Millennium Water is one of the finest environmentally conscious projects ever built. It is located in a beautiful spot in one of the world's greatest cities. It will prove to be tremendous success in the long-run. All it needs is experienced calm hands to guide it through the selling stage. Peter and Shahram Malek are decent, award-winning developers. They deserve to be treated with respect and handed a silver medal for delivering the project on time for the Olympics despite all the difficulties they faced.
Rob Macdonald is president of Macdonald Development Corp. and a director of the Urban Development Institute.
Oct 30,2010
Tips for Non-Resident Buyer & Seller
To read details, pls click the following link
Non-Resident Seller: http://www.tinamak.com/NonResidentSellers.php
Non-Resident Buyer: http://www.tinamak.com/NonResidentBuyers.php
To listen the live interview again on AM1320,click Podcast
Oct 23, 2010
Tips to buy Court Ordered Sales or Foreclosure properties in Vancouver
To read details, please go to my Buyer Guides.
To listen the live interview again on AM1320, click Podcast.
Oct 9,2010
Top 21 grants and rebates for property buyers and owners
Please click Podcast(for point 1 to 8) and Podcast (for point 9 to 21) listen to Cantonese interview
1. Home Buyers’ Plan
Qualifying homebuyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Homebuyers who have repaid their RRSP may be eligible to use the program a second time. Go to www.cra.gc.ca, enter "Home Buyers’ Plan" in the search box or, phone 1.800.959.8287
2. GST Rebate on New Homes
New homebuyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. (Go to www.cra-arc.gc.ca, enter "RC4028" in the search box or, call 1.800.959.8287)
3. BC New Housing Rebate (HST)
Buyers of new or substantially renovated homes priced up to $525,000 are eligible for a rebate of 71.43% of the provincial portion (7% of the 12% HST) paid to a maximum rebate of $26,250. Homes priced at $525,000+ are eligible for a flat rebate of $26,250. (Go to http://hst.blog.gov.bc.ca/faqs/new-housing-rebate or, call 1.800.959.8287)
4. BC New Rental Housing Rebate (HST)
Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $26,250 per unit. (Go to http://hst.blog.gov.bc.ca/faqs/new-housing-rebate or, call 1.800. 959.8287.)
5. Property Transfer Tax (PTT) First Time Home Buyers’ Program
Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. (Go to www.rev.gov.bc.ca/rpt or, call 250.387.0604)
6. First-time Home Buyers Tax Credit (HBTC)
This is a non-refundable income tax credit for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. It’s calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the maximum credit was $750. (Go to www.cra-arc.gc.ca/hbtc or, call 1.800.959.8281)
7. BC Home Owner Grant
Reduces school property taxes by up to $570 on properties with an assessed value up to $1,050,000.
For 2010, the basic grant is reduced by $5 for each $1,000 of value over $1,050,000, and eliminated on homes assessed at $1,164,000+. An additional grant reduces property tax by a further $275 for a total of $845 for seniors, veterans and the disabled. This is reduced by $5 for each $1,000 of assessed value over $1,050,000 and eliminated on homes assessed at $1,219,000+. (Go to www.rev.gov.bc.ca/hog or, your municipal tax office.)
8. BC Property Tax Deferment Programs
Property Tax Deferment Program for Seniors Qualifying home owners aged 55+ may be eligible to defer property taxes.
Financial Hardship Property Tax Deferment Program
Qualifying low-income home owners may be eligible to defer property taxes.
Property Tax Deferment Program for Families with Children Qualifying low income home owners who financially support children under age 18 may be eligible to defer property taxes. (Go to www.sbr.gov.bc.ca, enter "Property tax deferment" in the search box or, call your municipal tax office.)
9. Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants
This federal program provides financial aid to qualifying low income homeowners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and for the creation of secondary and garden suites. (Go to www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm, or, call 1.800.668.2642)
10. CMHC Mortgage Loan Insurance Premium Refund
Provides homebuyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient home or make energy savings renovations. (Go to www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno or, call 604.731.5733
11. LiveSmart BC: Efficiency Incentive Program
Homeowners improving the energy efficiency of their homes who hire a certified energy advisor may qualify for cash incentives through this provincial program provided in partnership with Terasen Gas, BC Hydro, and FortisBC.(Go to www.livesmartbc.ca/rebates or, call 1.866.430.8765)
12. BC Residential Energy Credit
Homeowners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST. (Go to http://hst.blog.gov.bc.ca/faqs/energy-credit or, call 604.660.4524)
13. BC Hydro Appliance Rebates
Mail-in rebates of $25-$50 for purchasers of ENERGY STAR™ clothes washers, refrigerators, dishwashers, or freezers between June 1, 2010 and March 31, 2011, or when funding is exhausted. (Go to www.bchydro.com/rebates_savings/appliance_rebates.html or, call 1.800.224.9376)
14. BC Hydro Fridge Buy-Back Program (different from Appliance rebates)
This ongoing program rebates BC Hydro customers $30 to turn in spare fridges measuring 10-24 cubic feet in working condition. (Go to www.bchydro.com/rebates_savings/fridge_buy_back.html or, call 604.881.4357)
15 BC Hydro Windows Rebate Program
Customers can save $100
per window on BC made ENERGY STAR windows until
August 18, 2010.
www.bchydro.com/rebatesavings/current_offers.html
16. BC Hydro Mail-in Rebates/Savings Coupons
BC Hydro offers rebates including 10% off an ENERGY STAR™ cordless phone; 50% off an E2TM dual-flush toilet; $15 off a clothes drying rack; and 50% off Earth Massage showerheads. Check for deadlines. (Go to www.bchydro.com/rebates_savings/coupons.html or, call 1.800.224.9376)
17 Terasen Gas Rebate program
Rebates for homeowners include a $25 gift cards for furnace servicing; $50 rebates for upgrading a water heater; $150 rebate on an EnerChoice fireplace; $1,000 rebate for switching to natural gas and installing an ENERGY STAR heating system. (Go to www.terasengas.com/homes/offers/lowermainlandsquamish.html or, call 1.888.224.2710)
18. SolarBC Incentives
Contractors will provide homeowners buying a solar hot water system with a $2,000 discount at the point of sale until December 31, 2010. (Go to www.solarbc.ca/learn/incentives-costs or, call 1.866.650.6527)
19 City of VancouverSolar Homes Pilot
Offers $3,500 (about 50% of the cost) towards the cost of a solar hot water system for anyone building new homes in Vancouver. Offered by the Cityof Vancouver, SolarBC, TerasenGas and Offsetters to 50 new homes on a first come, first served basis, January 2010- March 2011, with building permits issued in 2010.
http://vancouver.ca/sustainability/SolarHomes.html
604.873.7748
20. RBC Energy-Saver Mortgage
Homeowners who have a home energy efficient audit within 90 days of receiving an RBC Energy SaverTM Mortgage may qualify for a $300 rebate credited to their RBC account. (Go to www.rbcroyalbank.com/products/mortgages/energy-saver-mortgage.html or, call 1.800.769.2511)
21. Vancity Green Building Grant
In partnership with the Real Estate Foundation of BC, Vancity grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for building renovations/retrofits, regulatory changes to advance green building development, and education to increase the use of green building strategies. (Go to https://www.vancity.com/mycommunity/notforprofit/grants/actingonclimatechange/greenbuildinggrant or, call 1.800.224.9376)
Oct 09,2010
"September 2010 Vancouver Housing Stats from Real Estate Board of Greater Vancouver"
Please click Podcast listen to Cantonese interview
As I expected, Sept market showed more strength than August which is a typical slow month every year due to the beautiful weather. Besides the sales are up, prices are also higher than Sept 2009 as well as Aug, 2010. Visit my National Real Estate Market Information Centre page http://www.tinamak.com/CanadaRealEstateStats.ubr & click the Vancouver page http://www.tinamak.com/vancouver . U can compare all the stats that I posted there way back to 2007. As we knew, housing value peaked in April, 2010 (only we know now when we look back but who would know at the time). Residential benchmark price was average at $593,419. Well, let see how the benchmark price changes since April:
May: $590,662
June: $580,237
July: $577,074
Aug: $576,897
Sept: $577,174
As you see, it’s not as bad as what you hear from the media & is creeping back up despite everybody blaming on the HST. Everything sells when the price is right. I just went to Wall Centre False Creek Presentation Centre on Thursday (7th) http://www.rennie.com/wallcentrefalsecreek/. Where is it? GHOST TOWN AREA, behind the Olympic Villages! Yes, the wonderful media likes to label negative title on everything. Official Preview opening is on Oct 16th. Guess what, already over 80% sold. Why? Price is right! Quality is great! What about HST? DOESN’T MATTER ANYMORE when the value & potential is there! I couldn’t help it & bought one for myself. J Want to know more, CALL ME, I CAN HELP!!
Great to see housing price is stabilizing so you don’t need to worry about the downhill trends.
September 25th,2010
Leasehold Property
Please click Podcast listen to Cantonese interview
In Asia, our home lands were mostly or even 100% leaseland so many buyers might not think it is a big deal when they look at leasehold property like those in UBC or Simon Fraser University area.
In Vancouver East, Vancouver West, North Vancouver, Downtown just to name a few areas, there are hundreds of leasehold condos, leasehold townhouses and detached houses. They are either owned by the city, the federal government, the UBC Properties Trust, the 1st Nations bands or private individuals. Leasehold ownership means the tenant owns the right to use the property for a given amount of time, which ranges from 30 to 99 years depending on the nature of the lease.
Price difference: The variance in price could range from 20-35%. .A $500,000 leasehold waterfront townhouse in westside would be worth $800,000 or more if it was freehold. A leasehold property definitely has great value when compare with the cost of renting. The price of entry is cheaper because you don’t own the land. You look at it like you’re renting an apartment.
Some areas you don't have a choice. For example, UBC, SFU, and the 1st nations projects at Raven Woods (NV). Here you buy the location because the land is not for sale, and there is not much available nearby that is Freehold that is newer. There are risks, such as if it’s not prepaid for the term, there are regular lease payments on top of mortgage payments. Those payments could come up for renewal that is based on a much higher market value than when the property was purchased. The other risk is that a leasehold property is marketable only when there’s lots of time left on the lease. As it gets closer to its renewal date, its value is certain to drop. Therefore, purchase leasehold property with many years left. The 1st nations land and private leases are more difficult to resell thus greater discounts here. Contrary to popular thinking, leaseholds do appreciate, but just not as much as a freehold. They appreciate because rents also escalate. When you buy leasehold property, you are buying the right to occupy that unit in today’s dollars which down the road will be more, because everything goes up after a while.
Lending institution has very different requirement granting loans to leasehold property. Therefore, if you consider purchase leasehold property, please make sure you talk to your banker before you make an offer to make sure you have no problem getting a mortgage.
Should you have any further question, please feel free to contact me at 604-412-5860 or visit my website at www.TinaMak.com or www.TinaMak.ca
September 18th, 2010
Do we need to worry about "Housing Bubble"?
Please click Podcast listen to Cantonese interview
What is the definition of Housing Bubble? A real estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in the valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic indicators, followed by decreases that can result in many owners holding negative equity (a mortgage debt higher than the value of the property).
It is in our Chinese blood & nature that we like to flip/speculate real estate & stocks to make quick money. In my opinion, housing bubble more likely to happen in Hong Kong, China than here due to the on going speculation.
Since I got into the business in 1992, the longest period for Vancouver real estate to rebound from the bottom was between 1996 to 2000. The housing value went up significantly in the early 90's due to the Hong Kong immigrant wave after the China Tiananmen Square protests of 1989. Hong Kong Chinese bought without putting the local economic environment into consideration. Instead, we only compared what we could get in Vancouver vs what we could get in Hong Kong with the same amount of money so everything was a great deal in Vancouver. When the transfer of sovereignty over Hong Kong from the United Kingdom to the People's Republic of China on July 1, 1997, Chinese immigrants saw everything was going strong both real estate & stock market in Hong Kong, they started moving back & make quick money. However, In Oct 27, 1997, Hong Kong experienced a stock market crash and those new immigrants who bought from 1989 to 1996 had to sell and move their money back to Hong Kong in order to keep their business alive. They were willing to take a lost of up to $300k when selling their property so they could return to Hong Kong to recovered their losses through Hong Kong stock market. This created a huge correction or in other words "housing bubble burst" and the Vancouver real estate market dropped 18%.
Since then, our housing market has been sustained by local buyers and from 2003 to 2008 we had increases of 40% caused by strong migration globally. During the Global economic crisis in 2008 prices dropped average 20% but it only took us 6 months to rebound to the highs of early 2008 which out perform any economists prediction. Had a "housing bubble" existed it wouldn't rebounded in such a short period. It was very much due to media doom & gloom coverage in the States and Canada's close ties to the U.S.. 3 Years later, people finally realized Canada's banking system is secure and stable. A good example to follow by the rest of the world. We can't resist that we now have PRC immigration wave. Let's hope we can educate them so they don't pay ridiculous price for any property.
Net immigration for B.C. is projected to be 50,000 to 60,000 annually for the next 25 years which bodes well for house prices in Vancouver.
There was a headline on the news few days ago said "Buyer's market is over". We can understand that this is due to the low listing inventory. Supply & demand determine the price movements in the housing market. I always said Summer is the best time to buy, I predict we are going to have a strong Fall season with the record low mortgage rate. I'm already feeling it from holding opens & going to opens with my buyers in the last 2 weeks.
September 4th, 2010
Real Estate Market Condition in August in Greater Vancouver
please click Podcast listen to Cantonese interview
Conditions in the Greater Vancouver housing market continued to favour buyers in August. Since April, prices have edged down slightly as the number of sales and the number of properties coming on to the market have been declining.
The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,202 in August 2010. This represents a 36 per cent decline from the 3,441 sales in August 2009, the second highest selling August ever recorded, and a 2.4 per cent decline compared to July 2010.
From a wider perspective, last month’s residential sales represent a 40.4 per cent increase over the 1,568 residential sales in August 2008, a 34.9 per cent decline compared to August 2007’s 3,384 sales, and a 26.6 per cent decline compared to August 2006’s 2,998 sales.
New listings for detached, attached and apartment properties declined 17.5 per cent to 3,750 in August 2010 compared to August 2009 when 4,544 new units were listed. Total active listings in Greater Vancouver currently sit at 15,421, a 6.1 per cent decline from last month and a 29 per cent increase from August 2009.
“We’re seeing moderate demand, low interest rates and a healthy but slowing stream of supply in our marketplace, all variables that favour those looking to purchase a home,” Jake Moldowan, REBGV president said. “The last few months have also shown some stability when it comes to price fluctuations in the region, which is a welcome trend after reaching record highs in April.”
Since spring, housing prices have decreased 2.8 per cent compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.9 per cent to $576,597 in August 2010 from $539,600 in August 2009.
“Canada remains an attractive destination for foreign buyers, a fact that continues to affect activity in the Greater Vancouver housing market,” Moldowan said.
Sales of detached properties in August 2010 reached 893, a decrease of 34.7 per cent from the 1,367 detached sales recorded in August 2009 and a 66.9 per cent increase from the 535 units sold in August 2008. The benchmark price for detached properties increased 8.5 per cent from August 2009 to $795,076.
Sales of apartment properties reached 935 in August 2010, a decline of 36.1 per cent compared to the 1,464 sales in August 2009 and an increase of 26.4 per cent compared to the 740 sales in August 2008.The benchmark price of an apartment property increased 4.5 per cent from August 2009 to $385,968.
Attached property sales in August 2010 totalled 374, a decline of 38.7 per cent compared to the 610 sales in August 2009 and a 27.6 per cent increase from the 293 attached properties sold in August 2008. The benchmark price of an attached unit increased 6.6 per cent between August 2009 and 2010 to $489,511.