Investment Radio Show with Tina Mak

Listen Live Radio "Investment Golden Page" every Saturday
between 5pm & 6pm

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Tina Mak is back on the air with her new radio show which focuses on investing.

 


Detached Housing stats in 5 major cities in the Lower Mainland that the Chinese is interested in

Please click the podcast (1) & podcast (2) and listen to Cantonese interview

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Live Interview with  David Ju and Kingsley Ma

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Please click the following podcasts and listen to Cantonese interview

1. Luxury Home trends in Vancouver
 
    Tina interviews David Ju, VP Acquisition & Corporate Development at Westbank Development 


2. 
Change of Consumer & Franchisee behaviors in Canada

    Tina interviews Kingsley Ma,  Director, Franchise Sales and Development


3. 
What is Eco friendly materials? and the need of agents improving the knowledge







Back to balanced market

Please click podcast listen to Cantonese interview

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Even though the March statistic from the real estate board of Greater Vancouver shown  sales declined 18.3% from March 2012 and 30.2% below the 10 year sales average.  It however, shown some good news for Sellers.  The sales-to-activity-listings ratio sits at 15.2%.  What does it mean? A "buyers' market" is generally considered to be when the sales-to-listings ration is less than 13%.  In February was 12.2% and January was at 10.2%.  This means selling a home is getting easier and March was in a "balanced market".  The Seller market back in early 2012 like March was at 19%.


There is an apt pre-sale grand opening in Richmond on April 6 with long line up that we haven't seen it for a while. Is the Chinese finally starting to spend again?  We know the Chinese has been in the wait and see mentality.  Will this project shown some strength of the return of the Chinese buyers or they just try to line up to win the Lexus?   


Just a note to remind you that after April 1st, we are back to GST & PST tax structure.  Sales tax on a new home is total of 7%, tax on real estate commission, lawyer fee and inspection fee have been reduced to 5% from 12%.  





Canada-US Cross border tax guide for real estate investors Pt 2

Tina Mak, real estate consultant at Coldwell Banker Westburn, President of Asian Real Estate Association of America, Vancouver Chapter interview Arthur Azana, Areaa Vancouver Treasurer, CA of D+H Group LLP on Canada-US cross-border taxation issues for Canadian investors.  Canadian is #1 foreign investors in US.  This Part 2 interview covers the following topics:

1) What about capital gains tax when you sell the property? Give example
2) Are there also state capital gains taxes?  Give example
3) Are there any traps to watch out for?  

Here's the youtube:






Canada-US Cross border tax guide for real estate investors Pt 1:


Canadian is #1 foreign investors in US.  Tina Mak, real estate consultant at Coldwell Banker Westburn, President of Asian Real Estate Association of America, Vancouver Chapter interview Arthur Azana, Areaa Vancouver Treasurer, CA of D+H Group LLP on Canada-US cross-border taxation issues for Canadian investors. This Part 1 interview covers the following topics:

1) What tax considerations are there for a Canadian who wants to invest in US property?
2) Does that mean that Canadians are paying tax twice?
3) Example that illustrates that point
4) Which States pay Federal tax only and which States pay both Federal tax and State 
    tax?

Here's the youtube: 




Don't miss Part 2 for more info.


 


Inspectors vs Doctors

Please click podcast listen to Cantonese interview

Just read a report on "buyers left with big bills when home inspectors miss defects".  This is not the first time I read about this and it certainly will not be the last time.  There is a perception out there that inspectors get referral business from realtor so they don't want to fail the inspections worry about the referral business will stop.  This is such a wrong perception.  There are a couple inspectors out there trying to market themselves that they don't take referral business from realtors for that reason.  They have their right to market however they want to market themselves but that is not true!  We as realtors are not supposed to tell our clients who to hire regardless it is inspector, banker or lawyer.  We can only provide a few choices to our clients upon their request and they make their final decision after they do they own duel diligent.  

Inspectors to me is like a family doctors.  They are not specialist.  They have general knowledge.  Some are better than the others.  It is true that it is too easy to obtain an inspector license in British Columbia.  I have seen ex realtors became an inspectors.  If a buyer really wants to inspect a house thoroughly, they really should hire specialists like professional electrician, plumber, roofer, engineer etc separately to give them a proper report.  However, in reality, how many buyers would ever spend the money to get a thorough report on any property.  Another reality is one would be almost impossible to sue inspectors or any medical field professionals for any wrong doing.  Therefore, if you know you are working with a professional realtors who care about their license and reputation, the chance for them to risk their license just to get a deal through is much slimmer.  I feel sorry for those who caught in the middle of this kind of disasters and it is a very expensive lesson to learn.  Just to refresh our memory how the city by law screwed up the building code back in the 90's and put so many innocent home owners in financial jeopardy during the leaky condo era.  If you are interested to have my assistant, please feel free to check me out on my website at www.TinaMak.com, email me at tinamak@tinamak.com or simply call me at 604-412-5860.


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Jan. 4, 2012

Buying commercial real estate 101

Please click podcast listen to Cantonese interview

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Purchasing commercial real estate is much different than purchasing a home.  

1)  Before buying, make sure that you consult a tax adviser for assistance. A tax expert can advise you on how much the property costs and what amount of your real estate income will be taxable.  Consider any tax deductions you might get from your commercial real estate investment.  Investors can get interest deductions and depreciations benefits too.  Work closely with your lawyer as well for all the local legal matter advice.  

2) Secure appropriate financing before going forward.  Commercial property loans and the establishments that finance them are not the same as the world of residential home finance.

3) Different commercial brokers represent different parties.  eg. Retail, office, mall, hotels, apartment building, recreational properties, agricultural, etc.  Some real estate agents will work with Landlords & tenants, but there are also some that only work with tenants.  

4)  Knows your needs before you even start looking for a commercial real estate.  If you want to buy for personal use, draw up a list of specific attributes your office space must have, number of meeting rooms, and available bathrooms, etc.  Keep in mind that the size of a property can be very important if you’re the owner of a growing business. To avoid the need to move in the future, invest in a piece of commercial property that allows for ample growth.
If you are purely investors, have your agent to provide you as much info as possible regarding the unemployment rates income levels, and expansion rates of the area.   In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.

5) When you’re a new investor, the best thing that you could do is to try to learn one kind of investment thoroughly. Select one type of property that appeals to you, and devote your undivided attention to it.  It is in your best interest to stay focused on one type and do your best, than to spread yourself too thin and just do average at multiple investments.






Dec.28, 2012

Should I? or Should I not? Do I? or Do I need? to obtain permits for home
renovation

Please click podcast listen to Cantonese interview 

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Recent statistics released by the Canadian Mortgage and Housing
Corporation revealed that 45 per cent of households intend to do some form
of maintenance and repairs, while 78 per cent will undertake alterations
and improvements. Sixty-eight per cent of the homeowners who intend to
renovate this year will do so to update, add value or prepare to sell their
home.

Most of us realize that major renovations such as building an addition
to a home require a building permit. But I was surprised to learn that
many smaller jobs may require one as well. These jobs include finishing
basements, updating plumbing or electrical equipment, constructing a deck,
changing roof material or even adding a wood burning stove. If you are
making changes to partitions or load-bearing walls or changing the structure
of doors or windows, you may need to apply for a permit as this kind of work
could affect the structural integrity of your home.

Yes, there is a hassle involved in getting a building permit. You will need to
provide the municipality with detailed plans of the renovation to the house
and provide any additional documentation requested. An inspector will be
engaged during the project to ensure that the work complies with building
codes and regulations.

CBC producer recently used her home for a hidden-camera video shoot where three
contractors were asked to submit estimates for expanding a landing off the back of the
home. Price range from $2000, another 5k/6k(both without permits) to $11,500 with
permit. They always ask the homeowners to make the decision.

Permits are intended to ensure sure things are built to code and prevent safety hazards,
like fires caused by faulty electrical wiring. The penalty starts with a fee that is double
the cost of a permit, and could run owners tens of thousands of dollars more. The city
would come in and ask them to remove the work to correct it, to make it compliant with
city bylaws. In, 2011, The City of Vancouver shut down more than 250 projects last
year because they didn't have proper permits.

Seller must disclose everything to the listing agents whether the renovation
was done with or without permit. All these must be disclosed to the buyer.

As a buyer, if you are looking to buy a home that has had recent
renovations, check with the city to see if a building permit was issued and
that the structure was inspected and compliant. You can make your offer
conditional on the availability of the permit. If you accept the renovated
property without any permit, it also means you will be inheriting all the
problems that might occurs after.

A dream home purchase can turn into a nightmare if you do not acquire
the proper permits or if renovations were done by a previous owner
without a permit. The municipality may force you to remove walls, ceilings,
cabinets and other finishes so that an inspector can determine if the work
complies with the building requirements or, in the worst case, remove the
improvement entirely.
 



Dec. 18, 2012

Do you get capital gain exemption if you sell your old principal residence AFTER you moved into your new principal residence in Canada?

Please click podcast listen to Cantonese interview


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It is a common practice that Chinese owners often buy a new home, move in then sell their existing home. Are they still eligible to get capital gain exemption?  
 
1.    The tax free portion of the capital gain from the sale of a principal residence is equal to:
 
        Number of years (or part years) designated as principal residence plus 1 year divided by the number of years (or part years) owned
 
        The “plus 1 year” serves to accommodate the situation where the taxpayer owns 2 homes in the same year – ie.  where the taxpayer buys a new home before selling the old home.
 
2.    Here's an example – the calculation of the tax free portion (if sold in 2011) is as follows:
 
        Principal residence years (2002 to 2011) = 10 years
        Ownership years (2002 to 2011) = 10 years
 
        The tax free portion would be calculated as:
 
                    9 years (2002 to 2010) plus 1 divided by 10 years ownership =  10 years dividend by 10 years ownership = 100% tax free
               
        Due to the “plus 1 year” part of the calculation – the taxpayer does not need to designate the old home as a principal residence for the 2011 year.  Therefore, 2011 can be designated  as principal residence for the new home to ensure that the tax free portion related to the future sale of the new home will be maximized.  
 
 3.    If the old home is sold in 2012 – the tax free portion can still be 100%:
 
                10 years (2002 to 2011) plus 1 divided by 11 years ownership (2002 to 2012)  =  11 years divided by 11 years ownership = 100% tax free
 
        However, the 2012 year can not be designated as principal residence for the new home.  The  loss of this 1 year may result in a portion of any future capital gain being taxable.   However, the “plus 1 year” rule may avoid this problem when the new home is sold in the future.
 
4.    If the old home is not sold until 2013 – then the capital gain will not be fully tax free.
 
5.    The transfer of the old home to an adult child will be treated like an ordinary sale at the current fair market value.  The vendor would calculate his/her principal residence exemption as discussed above.  The adult child will be deemed to have purchased a house  for the same fair market value.  Whether this house can be a principal residence will depend on the adult child and will be subject to the same calculation rules:
 
            the adult child must be a resident of Canada (for tax purposes) to have a principal residence;
            he/she must actually live in the house as a principal residence.
 
6.    The transfer of the old home to a step child will also be treated as an ordinary sale at fair market value – see above comments.









Dec. 14, 2012


"Who buys and sells recreational properties in Canada?"


Please click podcast (Part 1) & (Part 2) listen to Cantonese interview

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1.) Who buys these recreational ppties?

I don't just do rec properties. We do a wide variety of assets including recreational pptys, ski
resorts, ranches, golf courses, marinas and more. In many cases these are businesses that have
a recreational orientation. We never know who the buyer will be because every property is
different. In some cases it might be someone looking for privacy and great waterfront. In other
cases it might be a developer or an investor.

2.) What nationality?

Canadians, Americans, recently buyers from mainland China.

3.) Any difference between those buyers in terms of the investment types?

Canadian and american buyers will be interested in recreational properties. However chinese
buyers will be looking at cash flow return, long-term investment. Such as golf course, not only
for the land, but also for the long-term cash flow.

4.) Do they pay all cash? Or get mortgage?

In some cases it might be cash but in most cases there is a mortgage even if one is not needed since 
borrowing money makes financial sense in this borrowing environment.

5.) How to obtain mortgage? How difficult for them to obtain mortgage or property like the island,
marina?

It can be a challenge. There are certain things you want to make sure you have -such as an
environmental audit or financial statements, depending on the asset. Ability to get a mortgage can
depend on the cash on the deal, the type of property, the covenant of the buyer and many other
factors. But, yes, some properties can be more difficult to obtain a mortgage.

6.) Does buyer buy based on the ROI? Or for status purpose?

Depends on the property. Could be neither or could be one or both.

7.) Example of good ROI project you have listed..(your marina etc)

Again, a good return is dependant on the risk. A fully occupied marina, for example could have a
7% return, which is very low risk. Great cash flow but very limited management. A riskier property
cod be higher than 10 or 12 percent.

8.) How do you find these international sellers & buyers?

Targeted Advertising, web presence, direct contact, working with other realtors that have good
contacts. It's important to be cooperative and to respect established relationships.




 

Dec. 4,2012

The annual Home Listing Report

Please click podcast listen to Cantonese interview

The annual Home Listing Report, released Wednesday by Coldwell Banker Real Estate LLC, covered typical 4 Bedroom, 2 Bathroom homes in the company's active N. America-wide listings - homes aspired to by many move-up buyers.

Comparing 10 Most expensive & 10 most affordable market in Canada & US.


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Following are the 10 most affordable markets in Canada, according to the Coldwell Banker report, based on an average price of a four-bedroom, two-bathroom home:

  • Windsor, Ont. ($170,991)
  • Rimbey, Alta. ($201,950)
  • Welland, Ont. ($218,354)
  • New Glasgow, N.S. ($218,641)
  • Amherst, N.S. ($224,662)
  • Niagara Falls, Ont. ($228,858)
  • Trail, B.C. ($232,300)
  • Smiths Falls, Ont. ($232,343)
  • Trent Hills, Ont. ($237,800)
  • Cornwall, P.E.I. ($239,750)

Following are the 10 most affordable markets in US
#1 REDFORD, MICH: The average listing price of a home is $60,490.
#2 COLLEGE PARK, GA: The average listing price of a home is $62,080.
#3 DETROIT, MICH: The average listing price of a home is $65,155.
#4 CLEVELAND, OHIO: The average listing price of a home is $70,166.
#5 POINCIANA, FLA: The average listing price of a home is $76,341.
#6 HASTINGS, FLA: The average listing price of a home is $78,840.
#7 JONESBORO, GA: The average listing price of a home is $79,686.
#8 PARK FOREST, ILL: The average listing price of a home is $81,107.
#9 AUGUSTA, GA: The average listing price of a home is $83,936.
#10 JOHNSTOWN, PENN: The average listing price of a home is $84,173.


Following are the 10 most expensive markets in Canada:

  • Vancouver, B.C. ($1,876,414)
  • Richmond, B.C. ($1,181,654)
  • Burnaby, B.C. ($917,968)
  • Oakville, Ont. ($745,000)
  • Burlington, Ont. ($709,930)
  • Fort McMurray, Alta. ($608,655)
  • Whitehorse, Yukon ($555,492)
  • Windermere, B.C. ($552,380)
  • Bedford, N.S. ($505,900)
  • Ottawa, Ont. ($500,233)

Following are the 10 most expensive markets in US
#1 LOS ALTOS, CALIF: The average listing price of a home is $1.7 million.
#2 NEWPORT BEACH, CALIF: The average listing price of a home is $1.658 million.
#3 SARATOGA, CALIF: The average listing price of a home $1.58 million.
#4 MENLO PARK, CALIF: The average listing price of a home is $1.5 million.
#5 PALO ALTO, CALIF: The average listing price for a home is $1.49 million.
#6 LOS GATOS, CALIF: The average listing price of a home is $1.44 million.
#7 RYE, NY: The average listing price of a home is $1.3 million.
#8 KAILUA, HI: The average listing price of a home is $1.238 million.
#9 CARMEL-BY-THE-SEA, CALIF: The average listing price of a home is $1.232 million.
#10 SAN CARLOS, CALIF: The average listing price of a home is $1.32 million.




Nov. 27, 2012

CAN YOU SELL YOUR HOME BY EMAIL?


Please click podcast listen to Cantonese interview


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I just want to share this case study with you that I read from the BCREA Legal update article.  You will be the judge about the whole idea of selling your home on line or hire a professional agent to represent you but most importantly to guide you through the sophisticated real estate transaction process. 

"The New Brunswick Court of Appeal recently considered whether an exchange of emails between a prospective buyer and seller of residential property constituted a binding contract.1

The property was listed for sale on Kijiji. After an initial phone call, the buyer and seller negotiated a sale by email. The seller emailed the buyer offering to sell the property for $160,000, providing the buyer assumed the mortgage and paid her legal fees. The buyer emailed agreeing to assume the mortgage, pay the seller's legal fees and offer $155,000. The buyer also emailed asking if his wife could view the property. The seller emailed back advising the buyer that she would accept his offer. The buyer's next email suggested he have a purchase and sales agreement drafted and proposed a closing date. Three hours later the seller emailed the buyer advising that after speaking with her partner, she was not prepared to sell the property. The seller was the sole owner of the property.

The buyer sought a judicial determination that the email exchange resulted in a binding agreement. The buyer argued that the email exchange constituted a written agreement, contained all the essential contract terms, satisfied the definition of electronic signature under New Brunswick's Electronic Transactions Act2 (NB ETA), and therefore satisfied that provisions under that province's Statute of Frauds3 which, like BC's Law & Equity Act4, provide that no contract for the sale of land is enforceable unless the agreement is in writing and signed by the party charged.

While the case concerned New Brunswick legislation, BC's legislation is substantially the same.5 The BC Electronic Transactions Act6, like the NB ETA, provides that contracts for the sale of land may be entered into electronically providing the parties agree, and providing the other common law requirements for contract formation are satisfied. BothActs provide that the legal requirement for a signature is satisfied with an electronic signature and define electronic signature similarly, as information in electronic form that a person has created or adopted in order to sign a document and that is in, attached to or associated with the document.

While the lower court found a binding agreement, the Court of Appeal held otherwise. The higher Court acknowledged that the emails satisfied the written requirement of theStatute of Frauds and commented, without making any conclusion in this case, that it was possible that the method of the seller identifying herself in the emails could satisfy the definition of electronic signature under the NB ETA, and thus the requirements of theStatute of Frauds.

The Court also acknowledged that the email exchange contained the essential elements for a contract: parties, price, property. However, applying the objective standard of the "reasonable bystander", the Court concluded that the parties lacked the requisite intention to contract, a criterion for contract formation. In reaching its conclusion, the Court considered the fact that neither the buyer nor his wife had viewed the property, the buyer's reference to a future draft agreement, and the fact that the buyer was unaware of the terms of assuming the mortgage.

The following passage illustrates the Court's concern with finding enforceable contracts by informal electronic communications, particularly in transactions involving the sale of residential property:

"The notion that a person can sift through a series of emails, identify the 3 P's, find a signature that satisfies the Electronic Transactions Act and, correlatively, the Statute of Frauds, and then have the court fill in any necessary contractual terms is simply out of step with reasonable expectations of today's typical consumer. There are still instances where formalities count. The purchase of a home is one of them."7

The decision is encouraging as the Court recognized that the sale of real property is a sophisticated process, where formality is required and consequently, the expertise of licensees."





Nov. 23, 2012

Cross border taxation for Canadian who wants to invest in US property

Please click here to read
 Cross border taxation for Canadian and click podcast (Part 1) & (Part 2) listen to Cantonese interview

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Make 7% - 8% Return On Investment (ROI)

November 2012


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Please click podcast listen to Cantonese interview  


Why would you buy a revenue property now when you feel the market is not going anywhere fast? Well, how about starting an investment now where you get 7% return per year?

When I started in the business, history has told me that when the market peaks then experiences a recession, it takes an average of 7.5 years before the peak property price is surpassed. This happened in 1981 to 1988 and in 1995 to 2001. The smaller recession in 1990 took 2.5 years for the peak property price to be surpassed.  The shortest one was in 2008, Vancouver rebound in 6 months time when US is just experiencing recovery while we are back at it due to our new mortgage lending rules introduced to us in the Summer.  Each mortgage payment made in the current low mortgage rates will pay off 30% to 45% of the principal owed or in other words, increase your equity just like an automatic savings account with a return on investment of approximately 7%.

Here is an example back in 2009.

Purchase Price:                   $300,000

25% Down payment:         $75,000

1st Mortgage:                       $225,000 @ 4.5% (25 year amortization) = $1,250.62 per month

Property Transfer Tax:    $4,000

Legal Costs:                          $1,000

Total Amount Invested: $80,000

The rent is $1,500 per month which covers the mortgage payment, maintenance fees (if applicable) and the property taxes.

Your amortization schedule will show that after the first year $4,984.43 of the principal has been paid down or your equity has just gone up $4,984.43.

To calculate your basic Return On Investment (ROI)

$4,984.43/$80,000(Down payment or Amount of Investment) = 6.2%

With a lower mortgage rate and/or higher rent you will get a higher return or ROI. Every year your yearly equity increases. By the 5th year you would have paid off a total of about $27,319.66 = 27,319.66/80,000/5 years = 6.8% per year

Here is today’s example with the same amount but different interest rate.

Purchase Price:                   $300,000

                                                    25% Down payment:   $75,000

1st Mortgage:                        $225,000 @ 2.99% (25 year amortization) = $1,063.65 p/m

Property Transfer Tax:     $4,000

Legal Costs:                           $1,000

Total Amount Invested:  $80,000

The rent is $1,500 per month which covers the mortgage payment, maintenance fees(if applicable) and the property taxes.

Your amortization schedule will show that after the first year $4,984.43(2009) & today it will be $6161.29 of the principal has been paid down & the differences between 2009 & 2012 on equity improvement is $1176.86.

To calculate your basic Return On Investment(ROI)

$4,984.43/$80,000(Down payment or Amount of Investment) = 6.2% in 2009

$6161.29/$80,000 = 7.7% in 2012

With a lower mortgage rate and/or higher rent you will get a higher return or ROI.

Every year your yearly equity increases. By the 5th year you would have paid off a total of about $32,720 = 32,720/80,000/5 years = 8.1% per year

The fact is mortgage rate is staying low for a while & rental rate is not dropping.  This market is absolutely an unbelievable opportunity for investors if you have the cash.

Instead of improving home ownership, the new mortgage rules are actually putting more people back to rental market, might actually encouraging them using their originally saved up home buying down payment money into buying material items.  Things they want but not they need.  Unless potential home buyers discipline their spending habits.  The government cannot acts as parents & tell the citizens how to spend.  Recent report from Canadian Institute of Chartered Accountants shows 30% of those surveyed in BC sometimes buy things they can’t afford compared to 24% of the rest of Canada.  While 82% of them are stressed out about it.  77% of us actually develop a budget but only 32% of those with a budget actually say they stuck with it.  People admitted that they know what they need to do but they don’t do it.  Why, it requires discipline, hard work & tough choices.

If you want to learn how to make 7.7% return on your investment or if this is a right time for you to purchase a home, contact me at 604-412-5860 or tinamak@tinamak.com.






Sept 1, 2012

Please click podcast listen to Cantonese interview  

Boom in 12 malls expansion hits Metro Vancouver 


When it comes to investment, I think it is important to have a bigger picture of what is going on in Vancouver regardless you are residential or commercial investors.  A recent report shown Vancouver's enclosed retail sector is undergoing a boom across the region either being built or expanding.  To read details, click Twelve malls in retail renaissance



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July14, 2012 

Some reality figures in some major city in Lower Mainland
 

 Sales Volume between January & July 14th, 2012

Month

 

January-July

January

 

February

March

April

May

June

July

Richmond

588

106

111

101

106

91

67

6

Vancouver West

789

117

167

146

134

120

90

15

Burnaby

481

79

72

84

102

77

63

4

West Vancouver

393

49

77

69

96

57

38

7

White Rock
 

684

88

109

120

112

150

100

5

Vancouver East

794

107

131

150

145

138

106

17

Coquitlam

702 

101

137

147

121

107

85

4

North Vancouver

608

70

105

122

124

112

69

6





























July14, 2012 

Most Expensive Houses For Sale in Canada: June 12 Edition 


Please click podcast Part 1 & Part 2 listen to Cantonese interview  

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Vancouver, Ontario & Quebec have dominated this list.  Click the link & see all details & slide of all houses interior pictures. 





July 7, 2012  

Are you an opportunist or procrastinator?  

I understand the June housing stats is not as rosy as we would like to see.  Typically, people will focus on the negative part of the stats which is sales volume is in 10 yrs low.  I wonder how many of us will talk about the price hasn't changed much.  Apartment increased 0.3%, detached ppty increased 3.3%, attached ppty decreased 0.1%.  Also, real estate is not stock market.  We don't do day trade.  When we take these monthly stats so seriously, it gives us stress.  If your property is your home, ups & downs has nothing to do with you. You still need a home to live. Yes, areas where Mainland Chinese immigrants focused on in the last couple of years definitely shown price adjustment.  However, we also know once the Chinese decides to come back into the market, it'll be hard to compete with them.  The current new lending policy doesn't affect any Asian buyers. Many of them pay all cash. 

I've also seen other report from different banks economists.  All of them are on the bullish side in terms of Canada's outlook to wear calmly through the global economy turmoil.  I look at this as a transition period.  I think the new lending policy does do good for debt control.  However, I won't rule out there might be some political reason behind it.  

Back in 2008, I said it once & I'm going to say it again.  Can you time the bottom or the peak? We only know afterwards not while we are in it.  During 2008 & 2009, majority people did the same thing as what buyers today do, predict the market will goes down.  The different is back then, they predict as far as 35%, this time, 15% is the lowest I have heard so far.  In 2008, Vancouver market bounced back strongly in 6 months when US is still in trouble.  BC unemployment rate this month drop from 7.2% to 6.6%.  Car sales went up average 7% in the last 6 months both domestic & import vehicle.  As a buyer, you have to ask yourself if you agree that Canada is a safe haven compare to the rest of the world.  Are you a speculator? Are you buying a home? Are you a long term investors? All these have everything to do whether you should sell or buy in ANY market not just this market.  Like all professions, there are people more experience than the others.  Among them, there are pessimist & there are optimist.  There are opportunist & there are procrastinator.  No matter what you are, you likely will hang out with the same mind set of friends.  

I just read an article came out on June 27th on "China property developers said looking overseas as rich clients buy abroad".  It said China isn't likely to ease real estate restrictions greatly in the near future.  That, along with a perception among many well-off Chinese that political & economic risk is on the rise in the country, suggests mainland real estate developers targeting customers looking to move money overseas should see good business for at least the near future.  So, back to the point, is Canada a "safe haven" on the global stage? If yes, why do we worry so much?  I would worry if I was living in Greek, Spanish, Italian, etc.  

Should you wish to understand the market condition in more depth, please feel free to contact me at tinamak@tinamak.com or 604-412-5860.


Please click podcast Part 1 & Part 2 listen to Cantonese interview 

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June 30, 2012 

 

How your credit score affects your mortgage application 

Did you know you know you cannot access the best advertised mortgage rates if you have a poor credit score? you need minimum score of 600

There are five different factors that go into your credit score, and understanding them will help keep your credit score healthy so you can access the best mortgage rates when t he time comes to buy a home.

1. Payment history: The bulk of your credit score is made up from your history of delinquent, past-due and late payments. If you miss a payment, your credit score takes a big hit. That means a missed payment of $1.00 is still scored negatively, even if it's only a dollar. Your credit score also factors in the frequency at which you miss payments.

2. Amounts owed: This portion of your credit report tracks the total amount of your debts. This can include credit card debt, student loans, mortgages and lines of credit to name a few. It also keeps track of who you owe and for how long.  The popular myth is that bigger dollar amounts affect your score, when in reality, it is only part of the equation. Having a $1000 credit balance at the end of the month is better if you're available credit is $100,000 versus only $5,000.

3. Length of credit history: Also important to your credit score is the age of each credit account in your name as well as the account activity on them. To help improve your score, it is better to keep older credit cards open because their age benefits you. 

4. New Credit: The number of times you apply for credit, whether it's for a car loan or store credit card, will affect your score. Each time someone other than yourself accesses your credit report - your score takes a hit. However, it is okay for multiple lenders to access your credit score within 30 days for the purpose of comparison shopping for the same product such as a mortgage loan. Typically, these are treated as a single inquiry and will have little impact on your credit score.

5. Types of credit used: The greater the variety of credit accounts you have (line of credit, car loan, mortgage, etc.), the better your standing. The reason is because it shows that you can handle re-occurring monthly obligations (revolving credit) and control the access you have to your available credit. However, having too much credit can mean a lower score because it can signal that you have unhealthy borrowing habits. Lenders like to see that you can responsibly manage your debt.

Some other tips:

- Avoid signing up for promotional store credit cards because the more times your credit is accessed, the more harm your score takes. Plus, the teaser rates or ‘gift' come at a hefty price in the form of inflated interest rates as high as 30% or more.

- A score lower than 600 may require you to seek financing from a ‘B' lender, who will enforce stricter rules and charge more to get financing because you pose a greater risk of default.

Contrary to popular belief, a bigger down payment or better credit score (above the required minimum) will not impact your negotiations for a better mortgage rate. 

For further question, please contact your banker or mortgage broker.

 

Please click podcast listen to Cantonese interview 

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June 23, 2012 

Does the new lending rules affects housing affordability to Canadians? 


Based on this interesting survey, "Affordability" will always be an issue to many Canadians.  I welcomed the Federal government's new lending rules.  Although it seems a bit harsh but if the public is unable to discipline their spending & live pay cheque by pay cheque, it leaves the government has no choice but to take action.  You can click the podcast listen to my live Cantonese discussion on this topic on my radio real estate show on AM1320 or you can click "Do Canadians work for love or money?" to read report details.

Please click podcast listen to Cantonese interview   

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June 2, 2012


Depreciation Report

I’m very surprised how many people buyers, home owners & even realtors don’t have any or very little knowledge about this “Depreciation Report Part 1 & Part 2”.  It is your strata’s Annual General Meeting time.  If your strata council plan on waiving this depreciation report.  You better read this attached report, listen to my Cantonese podcast & think twice before you vote it down.  It has important consequences if you vote it down. 

Please click podcast Part 1 & Part 2 li
sten to Cantonese interview

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May 26,2012 

Is it wise to sell our own properties just to save commission?  What is a full time professional real estate agent should do for their Seller? 

Please click podcast listen to Cantonese interview  

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When the market soften a little bit, there are home owners would like to save some commission & try to sell their property by themselves. I don't blame them, it does takes up a good chunk of money from your sales proceed. However, here's the reality check when you try to sell the property by yourself.

It is NOT always about the money. There are many legal aspects you have to consider. Also, the bank lending policy is changing all the time. How do you know for sure the buyer is qualified to buy your property? Those are just the technical stuff. The emotional part is when seller shows their property to prospective buyer. Most sellers think their property is the best on the block or in the complex, therefore, when the buyer start criticising the property, very often seller will take it very personal & start to defend their property. Buyer who comes thru the For Sale By Owner listing wants to save commission too, therefore, they will use all kind of method to bargain even more. Then comes the Buyer wants to see the property in different time of the day. In most cases, we have to work, therefore, you will eliminate the showing frequency. Also, how do you know if they are real buyer. From the security point of view, would you let a stranger in just because you try to save some commission?

Commission: Everybody try to save some commission regardless what nationality. However Asians love to ask for commission rebate way more often than other nationality. I was trying to refer a listing to my Toronto colleague. Seller is Chinese but speaks good English. My non Asian colleague decline my referral because the image we have in Toronto is we only pays cheap commission so they don't want our business. It is very sad that it is true story.

A full time professional agent has to do a lot of work:

1) We are not supposed to just take a listing at whatever price our seller told us. We need to do a full CMA (Comparable Market Analysis). Our job is to sell the property at the highest price as possible for our seller. Most For Sale By Owners Seller only set their asking price based on other listings asking price because that's all they can see on the public website.

2) understand why the seller wants to sell. Do they just want to test the market? or do they really have a reason to sell?

3) set up a marketing plan for them & most importantly, a strategy how to sell the property.

4) qualify the buyer or the buyer's agent to make sure they have pre-approved mortgage so they can buy. A pre-approved buyer might still get declined by the bank these days.

5) If the property hasn't sold within the expected time, we should re-evaluate the property value with the Seller.

I've been selling Richmond & Vancouver West lately. I've noticed most of the Richmond listings sold below the current assessment value. Vancouver West is very close to assessment value, some higher, some lower. Why do we have more inventories than sold on the market? It is due to most sellers still live in 2011 peak period.

Should you wish to have more detail info, please feel free to call Tina at 604-412-5860 or tinamak@tinamak.com







May 19,2012 

Is the fears of real estate bubble in Vancouver overrated? 

Please click podcast listen to Cantonese interview 

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Vancouver got blame for driving up averages prices across the country. Today, Vancouver being blamed for dragging them down. So, damn u do well & damn u don't. Well, I guess when you are popular, everybody focus on how you do. Some critics or economists happy to see Vancouver not doing well, they are trying to tell everybody that their prediction "FINALLY" correct. In 2011, some Mainland China speculators were being encouraged by some irresponsible local agents who are speculators themselves as well. Many formed a speculate groups included bankers, builders, agents & the Mainland immigrants who has plenty of cash in their pockets. Some agents put up with their own money as well. They bought up many old houses in mainly Richmond, Vancouver West & some in Burnaby, hoping to flip properties like they did in Asia. Well, eventually some got burnt & that is expected. As a result of that, the public calls for banding foreign investors buying in Vancouver. However, what I see these days are healthy adjustments. I still work with Mainland Chinese buying for their children to attend school here. Many of them don't care about their immigration status. Chinese believe in having the roof over our head not renting since their children is going to be in Vancouver for a while for their education. So, why rent? I also work with internal migrants at the moment. My buyers are relocating from Toronto to Vancouver who has strong income & equity from their house.

 

Finance Minister Jim Flaherty warns that Canadians are taking on too much debt. Well, I'm looking at 2m range property with my Toronto Canadian who only needs 300k mortgage. Do u call that too much debt?? For those who are poor in money management, it doesn't matter how high or low the housing price is, how high or low the interest rate is, they can't afford to buy properties. They will just rent & keep spending their disposable income.

 

There is no doubt the market has cooled off. However, I see opportunity instead of fears. If you wish to own a detached house, this is the perfect time for buyers who wants to get back into Vancouver westside or Richmond again. If you are in condo market, Bob Rennie, President of Rennie Marketing system shared his view with the Urban Development Institute on May 17. He noted the number of people aged 55-64 will increase 38% between 2009 & 2018, those 65-74 will increase 56%, while those 35-54 will only increase by 4.6%. Baby boomers are sitting on $88 billion in equity in Greater Vancouver. That equity will be freed over the next 15 years & when they sell their home, they will buy down & help their kids. I love his new saying: In the 70s & 80s it was location, location, location. In the 90s through mid 2000s, it was timing, timing, timing. From here forward, it's transit, transit, transit.

 

We can never time the peak nor the bottom. I personally prefer to live in a vibrant city over a dead boring one.

 






May 5,2012

Metro Vancouver Industrial Real Estate Market Overview (Part 1)
 

 Please click podcast listen to Cantonese interview   

The Metro Vancouver industrial market continues to show signs of strengthening with the

vacancy rate dropping to 3.8 percent in the first quarter of 2012 from 4.0 percent in the

irst quarter of 2011. While tenants remain mindful of the status of the global economy,

investor and owner/user interest in existing buildings and sites between two and five acres

is exceptionally high. Freehold land continues to become increasingly scarce; however,

approximately 1,027 acres of leasehold land has been identiied as available for development

in the core Metro Vancouver markets. Given the continued positive absorption and the

current lack of supply, the development community is expected to begin looking at launching

new projects over the course of 2012.

Richmond:

The vacancy rate in the first quarter of 2012 declined in Richmond

markets, from 3.8 percent in the fourth quarter of 2011, to 3.6 percent. Richmond’s industrial market garnered 92,064 square feet in positive net absorption this quarter.

Leasing activity in the Richmond markets picked up moderately in the first quarter of 2012. 123,681 square feet has been leased out on Blundell Road; 121,350 square feet leased out on No.6 Road; 38,684 square feet leased out on Van Horne Way.

The supply of quality investment product continues to be constrained in both markets; a private investor purchase of 62,271 square feet in Richmond for $8.0 million.

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Info provided by Colliers International 


Is now the best time to buy strata units? and why? 

With all these pre-sale strata units flooding into the market. Who should why? who should wait? Any chance we can wait for Vancouver housing market become more affordable? listen to this AM1320 radio interview podcast my take on this topic.  



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In my opinion, it depends on who you are. There are a few groups of people should absolutely buy now:

1) renters

2) Gen Y - with the help of the parents

3) long term investors

No to those speculators.

There is reason why the city issue building permits. Lower Mainland expects 35.9% population growth over the 2010 to 2036 period. Between 1991 & June 2011, BC population has grown from 3,373,787 to 4,573,321, 1,199,534 more people, a 36% increase. That is exactly 20 yrs difference. Therefore, the new projection is very much in line. The major factor driving population growth over this period will be migration to BC, International migration will account for 77.4% of the population gain, followed by interprovincial migration at 17.3%, and natural increase (birth minus deaths) at about 5.3%. With the detached housing price getting out of reached for many buyers. It is natural to see all the new strata units building everywhere.

During the first 2 months of 2012, the value of building permits issued in the province's regions climbed 52.5% (unadjusted) above the level recorded in the same period last year. Investment intentions were up in 6 regions, including Mainland/Southwest (+31/2%), where planned spending on industrial(+152.1%) & commercial (95.3%) projects soared. The commercial sectors have increasing demand so I'll share more commercial info with our listeners in our program.

Why either we don't have enough strata to sell at one time & then all of a sudden we have over supply? I suspect it has something to do with whether the developers can get financing from the bank or not. Canada being able to ride the global economic crisis smoothly is because our banking system is very conservative. Therefore, I naturally believe banks would not be willing to finance the developers if they worry the buyers will slow down buying & the pre-sale might not be able to as fast during the global economic crisis. Now when all kinds of report shows BC has a bright future with strong population growth, I assume bankers might be more relax & start lending again to developers so building permits climbed again too. After all, each pre-sale centre has banker to do the financing for the buyers.

It is in our blood that we, as Asian likes to make profit off real estate & stocks market. The different is we can't flip real estate in N. America like they do in Asia. We don't have the population nor the income to do that. Talking about affordability. BC has been unaffordable for over 20 years so this is not going to change. In order to be affordable to everybody, we have to expect a good 38% housing price drop & even during 2008, global economic crisis, we only dropped 15% in average. So, we have to forget about affordability. We can only do our best, help the next generation to buy property & force them to save money. The younger generation has very different mentality than us because most hard working parents sometimes over look after their children so the younger generation doesn't know how to value money.

With all the great selection out there now, developers giving incentives, government offers incentives to new home buyers as well as historical low interest rates that is not going to change much till the global situation improves. You really should choose the one that is affordable & right location to buy. Even if you need to subsidized a bit now should you choose to buy in the city, have the children to pay the difference. It'll help them to have a home in the future. Think long term!!



Mar.10, 2012

Market updates on how social media affects real estate market? Sales volume differences between 2011 Chinese NY & 2012 Chinese NY & how mortgage war affects home owners & home buyers? 

 
Please click podcast listen to Cantonese interview  

 
Sales comparison in the 5 Chinese popular areas between last Chinese NY vs this Chinese NY.


 

Sales Volume

Jan.1-Mar.31

2011

Sales Volume

Jan.1-Mar.9

2012

Richmond

663

211

Vancouver West

687

288

Burnaby

371

179

West Vancouver

310

124

White Rock

525

157

Vancouver East

516

236

Coquitlam

371

               220















Over the past few months buyers seeking affordable housing appear to have migrated from the Vancouver West to the Vancouver East and the east side housing price is gradually creeping up with multiple offers particularly along the Main Street corridor with most of the action between Quebec and Fraser from East 12th St. to East 33 Rd. As a result, many of those homes are selling well above asking price. On the Vancouver West , prices are trending flat or slightly down.

Based on the current global economy, in my opinion, the rate needs to stay low or else countries with heavy debts load will have problem paying their interest..  However, if country likes US keeps printing money to create a "fake" economic improvement, FREE money will eventually leads up to inflation, which means higher interest rate.

The following is the example of differences between terms of mortgage :
$500,000.00 mortgage with fixed rate


Example

Amortization

Interest Rate

Interest Term

Monthly payment

Differences

Money pay

A

25 years

2.99 %

5 years

$2,363.67

 

 

B

30 years

2.99 %

5 years

$2,100.36

 

 

C

30 years

3.99 %

5 years

$2,374.77

Between A

$11.10  more

D

30 years

4.99 %

5 years

$2,665.47

Between A

$290.70 more

E

25 years

3.99 %

10 years

$2,627.40

Between D

$37.73   less















No matter interest high or low, Canadian dollars high or low, market high or low, economy good or bad, unemployment rate high or low.  If you were the worry type, the conclusion is you will almost always negative because you worry no matter what the situation is.  However, if  you are the optimistic type, you will always make the most out of any situation.

What does this mean to the housing market? 
With all the government rolling out all the incentives in the past few weeks & now the mortgage wars, it stimulates the local market more than high end housing market.  I'm experiencing DT condo market is really moving fast.  
  


 Feb.25 2012 

 The B.C. First-Time New Home Buyers' Bonus

 Please click podcast listen to Cantonese interview 


After the HST incentive being introduced last week by the Provincial Government to stimulate the housing market, a week later, the government introducing another program called The B.C.first time new home buyers' bonus.  Again, similar to the HST program, this one also only valid for one year starting Feb 21, 2012 to March 31, 2013.  Both programs targeted the sale of the new homes.  Listen to the podcast for more detail discussion in Cantonese or click The B.C. First-Time New Home Buyers' Bonus to read details.  

 



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.
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.

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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.

 



Feb. 4, 2012

Canadian Confidence in Real Estate remains high

Please click podcast  listen to Cantonese interview 

In Canada, confidence remains high coming off good results in 2011, and as long as businesses and consumers remain motivated by the underlying fundamentals and not the headlines, the country’s markets can anticipate ongoing improvement.

Office

Leasing activity was strong across Canada’s office markets in 2011, with vacancy rates decreasing and rental rates trending upward in most markets nationwide.

Retail

The increasing number of new U.S. retail chains entering Canadian markets was noted in almost all cities as Canada’s relative stability, high consumer confidence and healthy retail spending, coupled with proximity to American distribution systems, boosted the country’s appeal for companies wary of further U.S. expansion. On the heels of Victoria’s Secret and Bath & Body Works opening stores in 2010, others followed. In 2011, Canadian consumers welcomed the likes of J. Crew, Express and Marshalls, to name a few. All this activity, of course, is paving the way for U.S.-based giant Target Corporation’s roll-out of roughly 135 stores in early 2013

Industrial

Vacancy rates are declining in most of Canada’s industrial markets as space is steadily absorbed. Stability and modest growth are reported across the country, with some markets anticipating the return of speculative development in 2012.

Investment

Unlike 2009 and the early part of 2010, when product and buyers were largely non-existent, the investment market is back and robust with the relatively ready availability of debt (due to continued historically-low interest rates) creating a large pool of buyers – particularly the Real Estate Investment Trust (REIT) sector. This situation has elevated prices to pre-credit-crisis levels in many markets. A limited supply of highly contested product – as witnessed by an increased number of bids – has resulted in further cap-rate compression

SUMMARY

In all, commercial real estate investment activity in Canada surged to almost $15 billion through the first three quarters of 2011 – nearly $2 billion, or 16%, higher than the same period one year prior. This figure could equal or surpass the $20-billion mark as there were a number of transactions in the final stage of negotiation during the closing months of 2011. For 2012, these trends are expected to continue, tempered only by a scarcity of high-quality assets and the spectre of international economic difficulties.

Review of the current marketplace:

In addition to the Vancouver area being positive and vibrant, based on past 2011 transactions, there is a wide variety of quality projects to suit every investors liking. At this time in January 2012, there are many projects for sale with solid income between $3,000,000 and $20,000,000. A small sample includes 2 Retail Stores or Plazas, 6 Industrial Warehouses, 2 Office Buildings, 4 Hotels, and 7 Multi Family (Apartment Buildings) investments.

 


 

 



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/ 
If you wish to sell your property, pls contact me at tinamak@tinamak.com or 604-412-5860 for a FREE evaluation.



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

tina radio pic oct 15 2011
 

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


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

 6/18 radio show


6/18 radio show 2



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

https://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

there is no place like home--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.

Other Areas

Vancouver Condos For Sale
Vancouver Condos For Sale by Price Range
West Vancouver Homes For Sale
Vancouver Westside Homes For Sale