A new poll suggests economists are increasingly convinced the government will move to ratchet down mortgage rules in 2012 – that even as the broker channel ramps up lobbying efforts to block the move.

Some 10 of 14 economists and strategists surveyed for Reuter’s first poll on the Canadian housing sector last week said Ottawa does, indeed, seem poised to tighten mortgage rules within the next 12 months.

Moreover, they believe that intervention is likely to come as early as the busy spring season.

That opinion may be reflected in their proјections for home prices this year, with respondents predicting a mere 0.1 percent climb for this year and again in 2013. That’s down from last year’s near-1 per cent price growth.

The poll results may only add to broker concerns that the federal government is planning to reduce the maximum amortization for CMHC-insured mortgages to 25 years instead of the current 30.

Brokers are already concerned that the CMHC has effectively moved to discourage lenders from growing their business-for-self portfolios.

Earlier this month, the Crown corporation warned lenders they’ll face increasingly limited access to bulk insurance for their conventional loans as the CMHC‘s $600 billion fund comes within 10 per cent of its government-set ceiling. At the same time, documents from the Office of the Superintendent of Financial Institutions revealed the regulator’s concerns over mortgage lending for self-employeds and lender underwriting standards on those loans.

Economists polled by Reuters are suggesting more formal rule changes are in the works. Industry analysts are betting on that chop in the amortization cap and/or an increase in the cost of mortgage insurance.

CAAMP is now actively lobbying against any such move, with its CEO twice travelling to Ottawa this month to deliver that message to Finance committee members in person.

It has also crafted a new industry report documenting what could well be at stake with further tightening of the country’s mortgage rules – detailing the economic impact of the housing and mortgage industry.

We want the government to be aware of the economic and јob contribution that housing and the real estate industry provide,” said CAAMP CEO Jim Murphy, coming off a second visit to Parliament Hill. “CAAMP, based on current data and research, sees no need to further tighten or restrict access to residential mortgages at this time.”

The new report by CAAMP Chief Economist Will Dunning is bringing that point home by identifying all the ways that the Canadian housing sector is a significant economic driver.

Vancouver Housing and mortgage activities, along, “could account for more than 1.35 million direct and indirect jobs about 8 per cent of total Canadian
employment,” writes Dunning. “The housing and mortgage industry has been particularly important to job creation these past five years.”

The report estimates that from 2006 to 2011, 18 per cent of all јob creation occurred as a direct and indirect result of growth in the housing and mortgage sector.

Hi folks,

I just wanted to share a question that is always asked by many of our clients and provide you with an answer on how you can calculate capital gains tax in Vancouver & Canada. But before I go ahead to explain the simple methods to you, I will explain what capital gain tax means first so you can gain an insight into what am about to share with you. So here is a simple definition of what capital gain tax is;

Capital gain tax is the tax you pay on half the profit you make while selling a Vancouver property. What this means is that if you sell your property for let’s say $500,000 and you made a gain or profit of say $300,000 then you will only be taxed half the amount you have gained, which is $150,000. This is the simplest definition of capital gain you can find anywhere! Now that you have an understanding of what capital gain tax is let us look at how to calculate it.

To calculate capital gain tax all you need to know is a simple formula which is; net sales proceeds minus the cost equals gain or profit. Allow me to explain.

The net sale proceeds is the selling price for which you made the sale or are willing to sell the Vancouver home and this includes commissions to realtor and lawyers.

Also the cost is the amount of money you paid to get the property in the first place and this includes land transfer tax, improvement cost on the property (any renovation work on the structure of the property, (ie changing the roof, kitchen renovation, etc), legal fees and so on.

The gain or profit is the amount of money you have left when you subtract the cost of acquiring (and improving) the property from the selling price of the property.

I think with the simple explanation above you should be able to understand how to calculate capital gain tax on your own although there are several other steps to take finally do the calculations but I think this understanding this simple and powerful formula will do a lot of help to you.

If you have any questions feel free to give me a quick shout: 604-767-3703.

I am always here to help!
Cheers!
Richard.

Before getting all their emotions typed up in a panicked knot, or taking off on a joyful spending spree thinking the equity in their home is worth far more than it is, homeowners should clearly try to understand one very important thing – tax assessment is not market value in Vancouver BC.

Simply put, the tax assessment on a piece of property is the amount of money the government has decided it needs to collect from property owners for the shared cost of paying for government services and expenses for that political subdivision. The government takes a look at the homeowner’s property, decides what it thinks the market value of their home should be from their perspective and experience, then applies their tax assessment to that figure. The problem today is that home markets and values have changed drastically, making all the government’s past experience in determining property values and assessments unreliable when trying to apply that knowledge to homeowners’ properties today. Worldwide, homeowners have appealed assessments over these discrepancies, often winning themselves huge savings over neighbors with similar homes who didn’t appeal their assessments. In those cases, apparently, homeowners took action once they understood that vital concept – tax assessment is not market value in Vancouver BC real estate or too many other places around the world right now.

From a quite different perspective, a prospective buyer will look at a property owner’s home, make them an offer they think that home is worth to them, and if the seller accepts that offer or a modified one that both buyer and seller both agree on, then that is the actual true market value of their home. It is the actual value of the home because that’s what it actually sold for in the marketplace on that date.

In all actuality, the market value of any home is what a reasonable buyer actually pays to a reasonable seller for their home in a reasonable marketplace, without duress or any other disadvantage pressing upon an otherwise normal marketplace and otherwise reasonable buyers and sellers. Homes sold under threat of or in actual foreclosure or bankruptcy are not part of a reasonable typical marketplace.

The catch today is that there is nothing typical about the economic Vancouver marketplace at this time. So when looking at the numbers any government assigns for market value and tax assessment now, well, it just can’t be trusted to tell a homeowner any kind of reliable information about the true value or market value of their home.

In fact, the only solid bit of analytical data Vancouver homeowners can rely on in today’s market is that tax assessment is not market value in Vancouver BC.

Let’s face it: Your kitchen is probably the most important place in your Vancouver home. Here you not only prepare your food, spend most of your time eating breakfast, lunch and dinner, but nowadays, you also entertain there, and quite often end up spending most of your social time there as well!

For this reason we have to think of good ideas to update your home to enhance the way it appears before you sell it. The question then becomes: How to improve your kitchen without a huge cost? The major common difficulty is the spending budget.
Can we really update your Vancouver home kitchen area without having to spend a lot?

Below are some factors that may improve your kitchen look without having to spend a lot:

1) Nothing enhances the appearance of a kitchen far more than painting worn out wood made cupboards. In case your kitchen area is dark and also your cupboards old-fashioned, all you need to try to bring them back to normal is clear away the equipment, paint the doorways and box, and set up new, modified equipment. Select a light shade to embellish within the room. We are on our way to a better home.

2) Accessories – There numerous types of kitchen accessories you may use to make a awesome kitchen to a good kitchen with photos, flowers, different bath towels, rugs also a dish of fresh fruit. In case you glassy screen cabinets, place attractive colored items offer a ideal impact.

3) Cupboard Re-facing – To move another action from re-finishing your cupboards, you might have them refaced. This can definitely cost extra but still is less than a new your kitchen.

4) Door pulls and Handles – In case you are not modifying the look of your cupboards you may still create a minor change by upgrading the styles of handles to extra modern look.

5) Draperies – kitchen draperies are often very affordable easy to fit. Drapes might be a great place to begin when choosing color schemes through the walls to cupboards and accessories.

There are many factors you can do for your kitchen, and without having to spend lots. It is important is that you have a plan.
You must also provide the time to find affordable materials because Vancouver real estate materials are quite expensive.
There are numerous options in the marketplace; you need to simply take some time discovering them!

For more tips feel free to contact me at 604-767-3703. I am always full of handy ideas!
Cheers!
Richard

Announced last month, the new guidelines of British Columbia HST Transitional tax have given a much-needed certainty in terms of tax structure for the new home buying market for Vancouver homes.

As British Columbians were not in favor of the HST last year, the British Columbia Government left with no option than to wait and discuss the transitional guidelines for the HST tax on property that is newly developed in the province. Due to this delay in feedback, lots of Vancouver and British Columbia real estate professionals kept on giving warning about a ‘Vancouver housing bubble’, with home buyers not interested in buying until there is more certainty in the market.

The announcement by Finance Minister was quite significant in the sense that it injected confidence in the real estate market of Vancouver, which has witnessed tremendous dip in sales over the year or so, while prices continue to jump in lots of Lower Mainland portions. On the other hand, outside of Vancouver, British Columbia property prices continued to decrease because of increased inventory and not many buyers.

According to the announcement of Finance Minister, the new property taxes are going to be equitable in the transition. Below you will find more information on the 2012 BC HST Transitional Rules, which was announced last month.

To start with, from April 1, 2013, British Columbia is going to become PST rather than HST. Furthermore, new homes will be subjected to only the British Columbia part of HST. Talking about the British Columbia HST Rebate threshold, there has been a jump from the previous $525,000 to $850,000. What’s more, the maximum British Columbia HST Rebate has been increased to $42,500 from the earlier $26,250.

Finance Minister is of the opinion that more than 80 percent of new houses in British Columbia are much lower than the threshold limit. With these new rules, new Vancouver home buyers are going to save around $60 million.

With the reappearance of high buyer activity and prices which are escalating day in day out in Vancouver’s high real estate market, sellers are on the gaining end. High demand and insufficient supply leads to multiple offer situations which is a common phenomenon in real estate market.

Many home buyers table a bid on an appropriate house within their price range, only to realize that there are contending offers. This leaves the seller with an option to decide the best offer.

If you are sure about a property you want, you will want your bid to be accepted straight away. These few tips on how to beat the competition in multiple offer situation in Vancouver will ensure your offer get picked.

Early timing
By hiring a Vancouver real estate agent, you place a professional in the field to represent you. The realtor has access to the listing information immediately when placed on the professional database which becomes available to the public later on. You just let him or her know your preferences and what to do in multiple offer situations. This way, the realtor will be able to act swiftly than you could if you searched independently thus submitting your offer ahead of your competitors.
Paying higher than the requested price
This should be done if the market research supports the higher pricing-which is a usual occurrence in Vancouver real estate market. Any seller will tend to accept the highest bid, a sure way to beat other buyers. You live with the satisfaction that you acquired what you really wanted.

Offering a higher deposit or paying immediately
A deposit assures the seller that you are serious about buying the Vancouver property. Therefore, the seller is more likely to turn down other buyers as they may not have upfront or large deposits. In addition, a bird in hand is worth two in the bush, thus cash in hand is more valuable than a later date payment. This will effectively prompt the seller to heavily consider your bid, beating several others.

We have many other strategies which we can share with you and have over 40 years of combined experience. Call us today and we can help you for FREE of charge: 604-767-3703.

If you are purchasing a home in Vancouver, Canada, you will have to pay for a Property Tax Transfer or PTT. Amount of payment will basically depend on the property’s fair market value. One thing you should know about PTT is that it is not the same as property tax. A property tax is something that you will need to pay for on a yearly basis for all the property services that you may have received from the local government of Vancouver. On the other hand, PTT will have to be paid upon purchasing a property. Moreover, knowing how to calculate the property transfer tax in Vancouver, Canada is imperative and as mentioned earlier, it will be on the basis of the fair market value of a given property.

How Much Do You Have To Pay For  Transfer Tax in Vancouver property in Canada?

There is one percent property tax rate in Vancouver, Canada for the first 200,000 dollars of a property’s fair market value. Two percent tax will be charged for the remaining amount. In an instance, if you purchase a property for 120,000 dollars, it will have a taxable amount of 1,200 dollars which is one percent of its actual fair market value. If you are buying a property that’s worth 250,000 dollars, it will have a 2,000-dollar tax charge for the 200,000 dollars while the remaining 50,000 dollars will have a two percent tax of 1,000 dollars which brings it to a total of 3,000 dollars tax.

As a first-time buyer, you will be exempted on this tax calculation ruling if you are making a purchase for a property that will not go beyond 450,000 dollars. However, there are also qualifications for these first-time buyer tax exemptions such as being a permanent resident in Vancouver, Canada for at least a year.

Knowing how to calculate the transfer tax rate in Vancouver property is a must. This will help you ensure that you are paying only the right amount when purchasing a property in the said city, nothing more and nothing less.

If you are looking for properties to buy in Vancouver, you may ask, why is it advantageous to use buyer’s agent in Vancouver? Its free! You do not have to pay anything for the service. The seller will pay your agent when the transaction closes. Apart from this, there are many other advantages of using the services of a buyer’s agent when purchasing in Vancouver.

One is that you will not have to waste time as you look for properties. The agent will also work with you so that you can be pre-approved for a loan. In addition to this, you have the freedom to view the properties that the agents have listed for sale. You also have the opportunity to view the properties that lenders own and properties for sale by owners. Another advantage is that the agent will give you the estimate of the market. He or she will also analyze properties based on your needs and provide value estimates based on the market.

The agent will be in a better position to assist you to get a property for you because the information he/she has is up to date. Apart from that, the buyer’s agent will also provide you with current listing information that is updated on a monthly basis. He/she is also aware of your tastes and preferences and compares a number of markets to inform you about the prices. For this reason, you can be sure of getting a wonderful property for a low price. In addition to that, the agent will help you to do your financing, act as a negotiator when you are purchasing competitive real estate and remind you on all the important issues among others.
Another benefit is that the agent will be in charge of all the responsibilities that will lead to a successful search. While carrying out the responsibilities, he/she will ensure that it has not exceeded what you had budgeted for.

What is the Playhouse Theatre Company?

It is one of Vancouver’s old and highly esteemed theatre companies. Among Canada’s oldest fifteen big regional theatre companies, the Playhouse is one. The Playhouse had staged performances for the last 49 years in Vancouver’s west downtown. Its 50th anniversary was to be celebrated this year.

Why did it shut down?

It has planned to shut down due to acute financial crisis. Their final performance was on last Saturday.

Who made the announcement?

The board chairman Jeff Schultz announced this on last Friday. The decision was taken after an emergency meeting.

What were the reasons of the closure?

Schultz said that the company’s debt was almost $1 million despite it received around $1million from city council only last year. Therefore,it was very difficult for them to continue with their work in that situation of crisis. This year it had sought $657,920 grant for rent from the city. However, it was granted only $500,000 which was not enough.

Who attended the conference where this announcement was made?

Around one hundred theatre personalities including actors, directors, and their own employees attended the conference, which took place at the Playhouse Theatre, where this announcement was made. The Board Chairman said he was not only sad but also disappointed at the turn of events. But, he mentioned that everybody would surely remember the playhouse in future.

What was their last performance?

The goth-musical Hunchback, co-produced by Catalyst Theatre, was the last performance performed by the Vancouver East Playhouse.

Who are going to be affected by this shutdown?

The company’s plan to shutdown will affect some 15 full time employees. This closure will also bring loss to the local theatre community by
$ 2.9 million per year that was spent on costumes and props, fees of actors and directors, lightings, and set design.

Is there any chance of their revival?

Schulz said that it would take a million dollars of money to get the Playhouse going and also another half a million dollars of money in each of the subsequent years for it to run successfully.

May you rest in peace, wonderful Vancouver Playhouse. You gave us many years of wonderful performances.

Vancouver is an upwardly mobile city in Canada. Recent statistics for 2012 shows that Vancouver is on the top 10 list of Canada‘s riskiest cities for cyber crime. It actually placed third this year, just under Port Coquitlam, British Columbia at number two and Burlington, Ontario in the number one slot. It is nice to see that Vancouver was even able to move up a notch from fourth place in 2010. The statistical research combined new sets of variable when it was looking seriously at levels of cybercrime activities. Studies showed overall that there were a number of common risk factors in areas where most cyber crime was on the rise.

These risk factors were fairly general. Places like Vancouver city had a significant increase of computer networks, smartphone usage, unsecured localized WiFi hotspots, wide spread access to social media networking websites, and open access to bandwidth in any major city area. This is about as inviting as you can get for the cybercrime hackers on the worldwide wireless web awaiting to pounce. Without a doubt, Vancouver qualifies in all these major ways and it is a prime target for such activity in 2012.

To actually make the Candian top 10 list, cities could be victims of both successful and unsuccessful hacking or cybercrime, but they had to qualify in other areas of distinction. Such qualifications included a population that is on the move greatly, a technically savvy community of travelers through the city regularly, and they had to be on a major connectivity level with other metropolitian cities both locally and globally. Once again Vancouver area is just ripe for the picking, so to speak. In hope to keep yourself safe from an invisible wireless cybercrime attack, there are no guarantees. Still turn off your open WiFi and uncheck your automatic passwords when in Vancouver.