Here’s an Interesting Twist in Home Selling

Alla Wagner is a 58-year-old with limited mobility after a fall. She could no longer live comfortably in her 5,000-square-foot home in the foothills of the Canadian Rockies, so she put it up for sale last year in order to downsize to a smaller bungalow. The market was slow and prices low in Alberta, so she decided to "think outside of the box.” Late last year, she came up with a contest called "Write a Letter, Win a House." Entrants were instructed to explain how owning the home could change their lives. She set the entry fee at $25 with the goal of receiving 65,000 entries to cover her investment in the house.

Wagner will pick the top 500 essays by July 5 and a panel of independent judges will choose a winner. If she doesn't reach her monetary goal by then, she plans to return all entry fees.

Photo: The Canadian Press / Jeff McIntos

Source: https://www.ctvnews.ca/canada/win-a-house-alberta-homeowners-trying-to-sell-properties-with-essay-contest-1.4419002

Will Horse Drawn Carriages Disappear into Victoria’s Past?

Victoria Councillor Ben Isitt holds the position that the city should develop regulations next year to phase out commercial horse-drawn carriage operations by 2023. His motion went to councillors this week. “It’s just signaling that the era of horse-drawn carriages on the streets may be coming to a close. There’s many other opportunities that we can look to in the 21st century,” he said.

This question arose last year when the SPCA called for a ban on using horses to draw carriages, which they have since revoked, in a reaction to an online video showing horses downed and struggling after their carriage was clipped by a bus. SPCA’s recommendations to the city council were adopted and Councillor Charlayne Thornton-Joe has been working with the SPCA and carriage operators to ensure the horses are well taken care of. Local operators have been careful to adhere to the guidelines set out by the city.

“This motion misses the whole premise of a horse-drawn carriage experience. Our services are about providing the public an opportunity to interact with and learn about our amazing horses, slow down and experience life at an easy pace, and remember our historical roots,” said Donna Friedlander, owner and operator of Tally-Ho Carriage Tours.

The polar positions held by Isitt and Thornton-Joe will certainly cause debate. The horse drawn carriages congest traffic, but many feel they are iconic part of Victoria’s charm.

Victoria has the Lowest Unemployment Rate in the Country

Victoria now has the lowest unemployment rate in the country, according to the latest release by Statistics Canada. The national agency’s monthly labour force survey pegged Victoria’s unemployment rate at 3.1 per cent in April from 4.2 percent a year ago.

Any job losses were offset by gains in the transportation and warehousing sector, which added 4,000 positions over the last year, the accommodation and food-services sector added 2,100 jobs and the public administration sector added 1,800 positions.

Victoria is a great place to work and live!

Source: https://www.timescolonist.com/business/victoria-has-canada-s-lowest-unemployment-rate-1.23819723

Land Owner Transparency Act

Bill 23, the Land Owner Transparency Act will soon become law. The law’s intention is to remove the masks of anonymity some individuals use to disguise their holdings through faceless corporations.

Finance Minister Carole James describes it as a commitment to end hidden ownership through shell companies, trusts and partnerships. Bill 23 was passed after watchdog group Transparency International Canada reported almost one third of the 100 most expensive homes in Vancouver were owned by shell companies.

Just as individuals must register land title ownership and transfers, corporations will now need to do the same. The new law requires them to list names, home addresses, citizenship and social insurance numbers of individuals behind the corporate entities holding title — the beneficial ownership.
Basic details will be available to the public. More sensitive information will be available to law enforcement, tax officials and some regulators, to help address tax fraud and money laundering.

Source: https://www.leg.bc.ca/parliamentary-business/legislation-debates-proceedings/41st-parliament/4th-session/bills/first-reading/gov23-1

Mayan Culture Alive and Well at Royal BC Museum

Did you know there are more than six million people in Guatemala who continue to practise Maya traditions and speak Maya languages? The Mayan culture is alive and well, and guest curator Nikolai Grube will open a Mayan exhibit on Friday, May 17 at the Royal B.C. Museum to feature the largest collection of Maya artifacts outside of Guatemala. 

The immersive experience will include jungle sounds, videos featuring the 30 Mayan languages still spoken today, and many jade stone and textile artifacts that have never been displayed before. Enjoy the world premier of “MAYA - The Great Jaguar Rises” on from May 17th – December 31st, 2019.

More info: https://royalbcmuseum.bc.ca/visit/exhibitions/maya

Canadian Real Estate Sales Rise Over 4 Per Cent in April

Canadian real estate sales climbed out of its multi-year low hit last year.  CREA reported 48,461 sales in April, up 21 per cent from the month before. This represents an increase of 4.2 per cent when compared to the same month last year. For context, it’s a 9.96 per cent decline compared to April 2017. Most of the increase was a partial offset from the huge drop made last year. Over the past 5 years, April 2018 was the only month with fewer sales.

B.C. real estate markets have not followed the national trend. Vancouver real estate had the biggest declines in Canada with 1,850 sales in April, down 29.7% from last year. Vancouver had also seen sales decline 48.9% last year, when compared to the year before. Fraser Valley had the second largest drop with 1,308 sales in April, down 18.9% from last year. Last year the Valley had also seen sales decline 38.8% from the year before. In Victoria, April 2019 sales were at 665, a 10.1 per cent drop from April 2018 which saw 740 sales, and a 21.5 per cent drop from the year before which saw 847 sales.

Source: https://creastats.crea.ca/natl/index.html

Buying Investment Real Estate? Four Things to Know

Positive cash flow property is a safer investment

A positive cash flow property makes money in two ways: appreciation and rental income. On average, through the ups and downs, real estate has appreciated at around 5 per cent per year. Rental income that leaves you with a positive cash flow after expenses is important. Properties that do not rent out for enough to cover your costs, also called a “negative gearing” will eventually make money when they are sold for a lump sum but are more difficult to manage. Building real estate wealth is often a long-term plan (unless you’re renovating and flipping). You don’t want to be in a position where you’re forced to sell due to financial hardship. Cashflow really is king.

Passive income can’t be beat

While real estate isn’t quite passive income (defined as making money even when you are not working), it is certainly an excellent way to leverage wealth over time. To be profitable in real estate investing, rental income should exceed total expenses and generate excess cash returns.  This will give you a financial cushion you can count on for operational costs, your major repairs fund and management expenses if you choose to hire that out instead of doing it yourself. There’s no better feeling than making a few extra dollars to pay for a better lifestyle or to put towards more investments.

Raise that rent!

Some real estate investors do not raise the rent on a yearly basis, though they should. That’s because the costs of maintenance, repairs, and the cost of living all increase. If you keep your rental property in good shape, it will be worth the value and your renters will usually be happy living there. Your major expenses such as the mortgage payments, will stay relatively the same, so higher rental income means more cash flow returns earned per month. Build towards financial freedom.

Build wealth over time.

Real estate investing will always be in demand, and it will never go out of style. It’s an excellent asset to own and a good way to build wealth and long-term financial security. You build your equity through time and eventually gain full ownership of the rental property. If you choose, you can use this equity against buying more real estate to build your real estate business and diversify your portfolio. Make sure you consult your financial adviser and lawyer. And take the time to contact Jane Logan to learn how to find the right rental property before you make a purchase.

A Perfect Spring for Gardeners!

Delay in the onset of warm weather has delivered an extended period of perfect conditions for seeding and transplanting hardy flowers and vegetables. Not too hot. Not too cold. A Goldilocks Spring. According to Helen Chesnut’s Garden Notes in Times Colonist, the long, cool spring is ideal.

Read the T.C. article online: https://www.timescolonist.com/homes/helen-chesnut-s-garden-notes-long-cool-spring-ideal-for-seeding-transplanting-1.23811771

Renovating to Improve Your Home Value?

NB: Prices quoted in this article are from Clayton DeKorne, chief editor of the JLC Group and not from Jane Logan.

Homeowners who want to maximize the appraisal value of their home should think about outside space. Renovating kitchens and bathrooms do improve values, but curb appeal and outdoor spaces are extremely important too. Clayton DeKorne, chief editor of the JLC Group, (Journal of Light Construction) has four recommendations for outdoor upgrades to help maximize your home’s value:

Garage door replacement

Average cost: $3,611 - Average resale value: $3,520 - Cost recouped: 97.5 percent

A good-looking garage door tops the list when it comes to getting cash back on your investment when you decide to sell your house, according to the 2019 Cost vs. Value report. The estimate for this job is based on the cost of removing and disposing of an existing 16-by-7-foot garage door (or two-car garage door) and replacing it with a new four-section garage door with heavy-duty galvanized steel tracks, assuming the motorized garage door opener is compatible. This curb-appeal enhancer will get you back almost every dollar you spent on it when you sell your house.

Manufactured stone veneer

Average cost: $8,907 - Average resale value: $8,449 - Cost recouped: 94.9 percent

Replacing vinyl siding with stone veneer on part of your home, such as an entryway, is a big curb-appeal upgrade for your home. For this project, existing vinyl siding is replaced with adhered manufactured stone veneer. This average cost estimate is based on installing 36 linear feet (LF) of sills, 40 LF of corners and one address block, with materials including two layers of a water-resistant barrier, corrosion-resistant lath and fasteners and more. This cosmetic improvement and accent design element can catch the eye of a potential buyer and can allow you to recoup an estimated 95 percent of renovation costs.

Deck addition

Average cost: $13,333 - Average resale value: $10,083 - Cost recouped: 75.6 percent

If you own a house with a big yard, a wooden deck can be an extra enhancement to enjoy the outdoors around your home. The average cost of adding a new wooden deck (estimated based on a 16-by-20-foot deck, including a railing system with pressure-treated wood posts, railings and balusters) is approximately $13,333.

Siding replacement

Average cost: $16,036 - Average resale value: $12,119 - Cost recouped: 75.6 percent

Old, dilapidated siding can make even the nicest house look worn-out. For the average home, replacing 1,250 square feet of old siding will cost you just over $16,000 and you’ll get back roughly three-quarters of that investment upon resale.

Source: https://www.jlconline.com/how-to/exteriors

Bicycles for Humanity

It’s springtime, and the bikes are coming out! Do you have an old or extra bike you or your family are not using anymore? The local grassroots group Bicycles for Humanity has collected 300 bicycles and have room for about 150 more to fill a shipping container headed for Africa. This will be the 11th shipment since the group started the project in 2009. Two container loads have gone to Namibia, two to Uganda and six have gone to Malawi. If you have a spare bike, consider sending it to Africa. You’d be amazed how much a bike will change lives!

More details: http://b4hvictoria.blogspot.com

CMHC’s Report on Canadian Real Estate

The Canadian Real Estate Association recently rated the national housing market as only moderately vulnerable for the first time in over two years. The national House Price Index (HPI) declined by 0.5 per cent in March, its biggest decline since 2009. But there were wide variances across the country. The HPI was up by more than five per cent on Vancouver Island, in Montreal, and in the Ontario markets of Ottawa, Guelph and the Niagara area. Conversely, it fell by more than five per cent in Greater Vancouver, in British Columbia's Lower Mainland and Barrie, Ont. Patrick Perrier, deputy chief economist, said the report is good news for Canadians. "What we want is a soft landing rather than a crash landing."

Sources:
https://www.cbc.ca/news/business/crea-house-price-march-1.5098120
https://www.cbc.ca/news/business/cmhc-housing-vulnerability-market-assessment-1.5119932

Are you Moving to Victoria?

Congratulations. You’ve picked one of the world’s loveliest cities! As you get ready for your move, here are four tips to keep in mind that will help you ensure you have a safe and enjoyable move:

Move Less Stuff.

Now is the time to divest yourself of unnecessary stuff. Moving it can be exhausting. You will quickly find you have more than you imagine, so get rid of everything you don’t need; do a garage sale, advertise on Craigslist, or just give that stuff you don’t need to someone that does. Old computer monitors, CDs, cracked plastic kids swimming pools and two of the three lawn mowers in your shed can safely be disposed of. Less junk equals easier move

Pack up One Room at a Time.

If feels amazing to finish a room, then close the bedroom door knowing that all your belongings in that room are carefully packed and ready to go. Make sure you keep a working suitcase with all the necessary items you need during the move. Bonus tip: Save the kitchen for last so you don’t end up eating fast food the entire trip.

Hire Professionals. It’s Worth the Money.
Professionals have the right tools and equipment for the job, and while you can help, you can leave the heavy stuff to them. They know how to properly load a semi-trailer and they are far less likely than you to have a mishap with a truck you’re unfamiliar with. Some companies use a container which gets delivered to your driveway, then delivered to your new residence where you can unpack at your leisure.

Plan a Moving/Goodbye Party.

If you decide to do the move yourselves, keep in mind moving is exhausting work, and many people hurt their backs because they didn’t get enough help. Even if you’re physically fit, pulling your 150-pound freezer up the stairs will be difficult. Get your friends over to help but make it fun. And make sure everyone lifts with their legs and stays safe. You don’t want the last memory they associate to you to be their strained hamstring.

Once you arrive in Victoria, if you are renting to start and looking for a place to purchase, please do give me a call. I know the city well and can help you find what you are looking for.

Budget 2019 Introduced First-Time Home Buyer Incentive.

The Incentive would allow eligible first-time home buyers who have the minimum down payment for an insured mortgage to apply to finance a portion of their home purchase through a shared equity mortgage with Canada Mortgage and Housing Corporation (CMHC).

There would be no monthly payments with the Incentive, meaning families would have a lower monthly mortgage payment. For example, if a borrower purchases a new $400,000 home with a 5 per cent down payment and a 10 per cent CMHC shared equity mortgage ($40,000), the borrower's total mortgage size would be reduced from $380,000 to $340,000, reducing the borrower's monthly mortgage costs by as much as $228 per month.

CMHC would offer qualified first-time home buyers a 10 per cent shared equity mortgage for a newly constructed home or a 5 per cent shared equity mortgage for an existing home. The larger share for newly constructed homes is aimed at encouraging new builds to address chronic inventory shortages.

Terms and Conditions:
The Incentive would be available to first-time home buyers with household incomes under $120,000 per year. As well, participants' insured mortgage and the Incentive amount cannot be greater than four times the participants' annual household incomes.

The First-Time Home Buyer Incentive would be available over three years with the aim of assisting 100,000 Canadian families purchase their first home.

Home Buyers’ Plan: 

Budget 2019 proposed an increase the Home Buyers' Plan withdrawal limit from $25,000 to $35,000, providing first-time home buyers with greater access to their Registered Retirement Savings Plan savings to buy a home.

Put the Power of Artificial Intelligence (AI) to Work on Your Household Budget!

RBC’s NOMI Budgets uses AI to help their customers keep track of their household budget. It’s available through the bank’s mobile app. If you put it to use, it will apparently use AI to proactively analyze spending and recommend an appropriate budget. If you struggle to control your budget and save for a down payment, it could be a useful tool.

Source: https://www.canadianrealestatemagazine.ca/market-update/rbc-launches-firstofkind-aipowered-budget-tool-256801.aspx?utm_source=Pinpointe&utm_medium=20190426&utm_campaign=CREW-Morning&utm_content=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB&tu=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB

Are You Self Employed and Looking for a Mortgage?

From an income tax perspective, it’s advantageous to expense as much as you can to lower your taxable income, but that can cause a problem when it’s time to qualify for a mortgage. CMHC is starting to be less ridged towards self employed people who can afford a mortgage. Where as before, flexible and common-sense approaches such as a notice of assessment accompanied by a T1 General tax form, a proof of income statement from the Canada Revenue Agency, and a T2125 form, which is a statement of business or professional activities. Before October 2018, these practices were only available to B lenders and alternative lenders.

Sources: 

https://www.theglobeandmail.com/investing/personal-finance/household-finances/video-self-employed-canadian-workers-face-challenges-in-obtaining-mortgages

https://www.cbc.ca/news/business/cmhc-self-employed-mortgages-1.4753446

Bank of Canada

Any plans the Bank of Canada had to move interest rates up are off the table for the foreseeable future as global trade conflicts, domestic oil and the housing markets slow resulting in a subdued GDP and inflation growth. On April 24^th, the Bank of Canada announced it will hold the Overnight Lending Rate at 1.75 per cent. This rate is used by consumer banks to price their variable-rate lending products. The Bank of Canada has changed their stance from two years ago when they predicted multiple rate hikes in 2019.

Reference: https://www.bankofcanada.ca/2019/04/fad-press-release-2019-04-24

Zoocasa completed a study called “The Income Group You Need to be In to Buy a House or Condo in Canada”.  The study analyzed how much income prospective buyers would need to afford the benchmark home in their city, calculated the minimum income required to qualify for a mortgage, in 13 census metropolitan areas (CMAs) across Canada, assuming a 20% down payment, 3.75% mortgage rate, and 30-year amortization.

Source: www.zoocasa.com 
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