Townhouses on the Rise in Greater Victoria

Townhouses represent just 11 per cent of units sold compared to condos and single detached homes. However, they are generally less expensive than detached residential homes because of shared walls and amenities yet have more square footage than a condo.

“They tend to be more suitable for families than high density condos,” said Casey Edge, executive director of the Victoria Residential Builders Association. “As land and [government] taxes and fees on housing increase, there is more need for low rise density such as [townhouses] to replace single detached housing.”

Here's a townhouse listing (new price) in the U Vic/Arbutus area:
http://janelogan.com/listing2.html?agency_id=45&%20building_id=242842

Victoria Neighbourhoods - James Bay

James Bay is the oldest residential neighbourhood on the west coast of Canada and the hub of Victoria’s tourist industry. The south end of the Inner Harbour, the Royal BC Museum, the Legislative Assembly and Emily Carr House all find their home here, and tourists arrive by the thousands in the summer months to enjoy them.

It is surrounded by water on three sides; the Victoria Harbour to the north and west, and the Strait of Juan de Fuca to the south. Just around the corner from Victoria’s Inner Harbour, west of the Inn at Laurel Point, you will find the delightful Fisherman’s Wharf; an active marina full of food kiosks, shops and eco-tour adventures scattered among fishing vessels, pleasure boats and float homes.
The outer harbour is ringed by a heliport, coast guard facilities and cruise ship terminal at Ogden Point.

To the east, the larger part of Beacon Hill Park falls within the neighbourhood; a serenely beautiful area full of water features and displays by master gardeners. The park’s sylvan diversity includes Garry Oak, Douglas Fir and Black Cottonwood trees. The park also contains the Beacon Hill Children’s farm full of peacocks, birds, goats and other animals your kids will love.
Other parks in James Bay include Holland Point Park along Dallas Road, waterfront parkland in the Laurel Point area, MacDonald Park, Fisherman’s Wharf Park, and more.

The heart of the neighbourhood is James Bay Village, filled with local shops and services and the James Bay Community Centre. The village is a hub for many community sporting events that use Dallas Road as a major portion of their routes.

Schools in the neighbourhood include South Park Elementary School and James Bay Elementary School.

James Bay is delightful to walk and bike along the waterfront. Or treat yourself! Take one of the horse-drawn carriages and see the neighbourhood in leisurely style.

B.C. Economy Checkup:

B.C.’s economy grew by an estimated 2.4 per cent in the 2018 calendar year, the third highest rate in the country, led by goods-producing industries with notable gains in mining, oil and gas extraction, construction and manufacturing. B.C. also had the lowest unemployment rate in Canada at 4.7 per cent in 2018, down from 5.1 per cent in 2017. Wage and salary growth also led the country at 5.9 per cent in 2018.

Source: https://vancouversun.com/news/local-news/b-c-posts-1-5b-surplus-as-tax-revenue-increases-and-real-estate-market-cools

The B.C. government ended its fiscal year with an operating surplus of $1.5 billion.

The 2018-19 public accounts released Thursday by Finance Minister Carole James show that the surplus was about $1.3 billion higher than anticipated, driven by $2.9 billion in increased revenue primarily from personal and corporate income taxes.

James said the previous Liberal government relied on an out-of-control real estate market to boost its budget while her NDP government has a long-term economic plan.

“In fact, my bigger worry… is running an economy based on a speculative real estate market and skyrocketing housing prices, which meant that people couldn’t build their lives here in British Columbia,” she said.

Source: https://vancouversun.com/news/local-news/b-c-posts-1-5b-surplus-as-tax-revenue-increases-and-real-estate-market-cools

10 More Details About the First Time Buyer Incentive

1. Total borrowing is limited to 4 times the qualifying income. The combined mortgage and Incentive amount cannot exceed four times the total qualifying income. The amount for the mortgage loan insurance premium is excluded from this calculation.
   
2. The maximum threshold for debt service ratios are GDS 39% and TDS 44%. This is only applied on the first mortgage and is subject to requirements by lenders and mortgage loan insurers.
   
3. The Incentive is a second mortgage on the title of the property. There are no regular principal payments. It isn’t interest bearing and has a maximum term of 25 years.
   
4. The Government of Canada will share in the upside and downside of the property value upon repayment.
   
5. Mortgages must be eligible for mortgage loan insurance through either Canada Guaranty, CMHC or Genworth. The first mortgage must be greater than 80% of the value of the property and is subject to a mortgage loan insurance premium.
   
6. The premium is based on the loan-to-value ratio of the first mortgage only. That is, the first mortgage amount divided by the purchase price. The Incentive amount is included with the total down payment.
   
7. Mortgage loan insurance premiums may be subject to provincial taxes.
   
8. Minimum down payment is 5% of the first $500,000 of the lending value and 10% of the lending value above $500,000.
   
9. The minimum down payment must come from traditional down payment sources.
   
10. Traditional down payment comes from the borrower’s own resources and may include:

• savings
• withdrawal/collapse of a registered retirement savings plan (RRSP)
• non-repayable financial gift from a relative

Note: Unsecured personal loans or unsecured lines of credit used to satisfy minimum down payment requirements are not eligible for the program.

Reference: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive

Victoria Neighbourhoods – Fernwood

Fernwood is a highly active and inclusive residential neighbourhood with Fernwood Square at the heart of its village centre. The square is the community’s gathering place with seasonal markets and lively summer celebrations.  The Belfry Theatre’s excellent theatrical productions, the unique shops and cozy eateries draw Victorians in to enjoy the Fernwood scene.

Fernwood has several neighbourhood parks and natural spaces. Stevenson Park next to the Fernwood Community Centre sports playground equipment and open lawns. An orchard and kitchen garden are located next door. Stadacona Park, to the south, hosts tennis courts amongst well-established trees and garden beds. Fernwood has o the Fernwood Community Centre. Spring Ridge Commons hosts an eclectic variety of plants and is open to the public, and there are a variety of other parks amongst residential areas of the neighbourhood.

Victoria High School is a prominent landmark adjacent to the village. The original version opened in 1876 which was the oldest high school west of Winnipeg and north of San Francisco. The current Vic High building on Grant Street is the fourth iteration and opened its doors in 1914. Other schools include: Central Middle School, George Jay Elementary School, Victor Elementary School and Victoria High School.

Fernwood is well-loved by its residents. Passionate artisans and community minded members operate the Fernwood Neighbourhood Resource Group (https://fernwoodnrg.ca). Their mission is to preserve the neighbourhood’s heritage and diversity and ensure the social, environmental, and financial sustainability of the neighbourhood. They plan and run a variety of events through the year, most notably the annual “Fernwood Bites” which features local fare in the beautiful Fernwood Square and taste the best food & drink Victoria and Southern Vancouver Island have to offer, and Fern Fest (more info https://www.facebook.com/FernFest.FernwoodNRG/); a jam-packed, community-based, family, art, and music festival.

Fernwood is a diverse mural of creativity and you’ll love living there.

More News About the First Time Home Buyer Incentive.

Jean-Yves Duclos, the Minister responsible for CMHC, has announced that the First Time Home Buyer incentive program is set to be available from September 2, 2019. The incentive will allow eligible first-time homebuyers who have the minimum down payment for an insured mortgage with CMHC, Genworth or Canada Guaranty, to apply to finance a portion of their home purchase through a form of shared equity mortgage with the Government of Canada.

Incentive program details:

• The First Time Home Buyer Incentive will be 5% for the purchase of an existing home, while for the purchase of a newly constructed home, an incentive amount of 5% or 10% may be available.
• No on-going repayments are required, the incentive is not interest bearing, and the borrower can repay the incentive at any time without a pre-payment penalty.
• The government shares in the upside and downside of the change in the property value.
• The buyer must repay the incentive after 25 years, or if the property is sold.
• The incentive will be available to first-time homebuyers with qualified annual household incomes up to $120,000.
• Participant's insured mortgage and the incentive amount cannot be greater than four times the participant's qualified annual household income.

Reference: https://www.canadianrealestatemagazine.ca/market-update/launch-date-and-other-info-about-first-time-home-buyer-incentive-276351.aspx?utm_source=Pinpointe&utm_medium=20190715&utm_campaign=CREW-Weekend&utm_content=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB&tu=3AB553C5-4FBB-49B5-8918-4AF4FE09BBAB