What's on the market? How much are houses and condos selling for? What's my place worth? Can I get a mortgage? Answers to these and more from seasoned Dominion Lending Centres mortgage consultant, Laura Stein, and top realtor, Lyn Hart with Macdonald Realty Ltd.

When: Tues. Sept. 16th, 2014 7-8 pm
Where: The Drive Mortgage Store, 1250 Commercial Dr. Vancouver

RESERVE YOUR SEAT NOW!
604-258-8897
info@drivemortgage.com

A Little Help to Purchase Your First Home!

• The ability to withdraw up to $25,000 from a RRSP for a downpayment, interest and tax free. (A couple can draw out a total of $50,000). Talk to your bank for more information.
• A $750 First-Time Home Buyers Credit that can help with closing costs.  
• Qualifying first-time buyers may be exempt from paying the BC Property Transfer Tax of 1% on the first $200,000 and 2% of 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.
• The BC Home Owner Grant, which helps reduce property taxes by up to $570 with the basic grant and a further $275 for those who qualify.

You qualify as a first time home buyer for the Property Transfer Tax  if:

• you are a Canadian citizen, or a permanent resident as defined by the Immigration and Refugee Protection Act (Canada),
• you have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property,
• you have never owned an interest in a principal residence anywhere in the world at any time (a principal residence is the usual place where an individual lives), and you have never received a first time home buyers’ exemption or refund.
• the fair market value of the property (land plus improvements) is not more than the qualifying value of $425,000 (only if purchasing an existing home),
• the land is 0.5 hectares (1.24 acres) or smaller, and
• the property will only be used as your principal residence.

Listing Your Home...Seller Beware!

So you’ve decided to sell your home and have an idea of what you think it’s worth. You schedule appointments with three local listing agents who have been referred by a friend or relative, or work in your neighbourhood regularly. Each Realtor recommends a list price and shows you comparative data to back up their opinion.

Two of the Realtors have come up with prices that are lower than you hoped. Although they back up their recommendations with recent sales data of similar homes, you still think your house is worth more.

The truth is, you may have just met an agent engaging in a questionable sales practice called "buying a listing". By suggesting he might be able to get a higher sales price than the other agents recommended, he raised the odds considerably more in his favour that you'd choose him and essentially "bought" the listing. Most likely, he is quite doubtful that your home will actually sell at that price.

The intention from the beginning was to get that listing and eventually talk you into lowering the price. In the long run, you may sell at a price similar to what was suggested by the other agents, or may even lose money if the property is on the market too long.

Remember that, ultimately, the market place establishes your home’s value. There are many factors that determine the market - regional economics, time of year, and condition of the property, to name a few. Realize that a good agent must consider all of these factors and that marketing plans and negotiation abilities are far more important than just a high market estimate.

Choose your agent based on honesty, ethics, experience, marketing, and how comfortable you feel working with them. After all, you are trusting them to advise and act in your best interest.

Macdonald Realty Voted Best Neighbourhood Real Estate Office 2011!

September 22, 2011 - For the second year in a row, Macdonald Realty has been voted Best Neighbourhood Real Estate Office in Vancouver by Georgia Straight readers!

Former FSBO CEO Sells Home the Traditional Way!

AGBeat News, August 3, 2011 -  Founder and former CEO of ForSalebyOwner.com, Colby Sambrotto, listed his 2,000 square foot New York condominium on his own through online classified ads and FSBO sites, but after six months, he opted to hire New York broker, Jesse Buckler, who immediately advised a price change as the listing was not attracting the right buyer.

      AGBeat columnist, Herman Chan, said, “If people want to take a stab at For Sale By Owner (ie: FSBO), go for it. But well over 80% of FSBO’s eventually have to list with an real estate agent to get their house sold. It’s harder than it looks!”

Scrapped B.C. HST Means Consumer Savings!

An independent panel appointed by the government reported in May that families earning between $40,000 and $60,000 a year would pay about $350 more annually in sales taxes due to the HST. That amount rose to more than $1,000 a year extra for individuals or families making more than $100,000.

Range of consumer items:

Some of the items that consumers can expect — in 18 months — to once again be PST-exempt include:

• New homes over $525,000.
• Real estate fees.
• Moving services.
• Home renovations and landscaping.
• Purchase or lease of a fuel efficient vehicle.
• Restaurant meals and snack foods.
• Domestic flights, coach bus, rail and taxi.
• Sporting events, movie tickets, gym memberships, concerts, camping sites
• Beauty salon services.
• Over-the-counter medications.
• School supplies.
• Wedding expenses.
• Telephone and TV service.

Critics of the PST point out that there may not be any real long-term savings under the PST system, because it will provide less government revenue and lead to an increased provincial deficit, which theoretically will have to be paid for eventually with tax dollars.

How to Budget for Home Maintenance

It's important for home buyers to remember that all homes, old or new, need ongoing maintenance.

First, buyers should understand the 1% rule. This rule postulates that normal maintenance on a home is about 1% of the value of the home per year. For example, a $250,000 home would require $2,500 per year to maintain. This would be enough to replace the roof covering...and then, a few years later, to replace a failed hot water tank...and then a few years more until a new central air system is required.

Then there is the 3% rule. Some experts say that home buyers should plan on spending 3% of the value of the home in the first year of ownership. This is because new homeowners will most likely have to buy drapes, blinds, a washer and dryer, a stove, maybe even a new roof covering. Also, new homeowners often customize the environment to their taste, so they need to budget for repairs, replacements and maintenance.

In addition, most home components have fairly predictable life cycles. For example, the typical life cycle of a high-efficiency furnace is 15 to 20 years. What this means is that most high-efficiency furnaces last between 15 and 20 years.

One way to know the extent of the maintenance needed and the costs to repair and/or replace items is to have a home inspection conducted. Home inspectors are required to let the buyer know if a component is significantly deficient or if it is near the end of its life cycle (service life), and a reputable home inspection company may offer up-to-date repair-cost guides to help clients with their planning.

Home inspectors work with Realtors and buyers to help them understand the issues that are found in the home, regardless of age, offering the right perspective and objective information. Home buyers need to understand that it's normal for items in a home to wear out. This should be regarded as normal "wear and tear" and not necessarily a defect.

A good home inspection determines the current condition of the house, offering a report of all the systems and components in need of maintenance, service, repair or replacement.

For example, consider a home inspection that uncovers that the heating system is old and requires replacement. A home buyer may see this as a huge problem. However, this problem may be the only item in the home that requires attention. If a buyer were to look at this situation in perspective, this home could be well above average-a home merely requiring a new furnace.

A good home inspection provides objective information to help the buyer make an informed decision. Knowing what items need to be budgeted for repair or replacement will help home buyers plan or negotiate better and not be stuck with unexpected costs of hundreds, or even thousands of dollars in the long run. Also, fixing these items will make a marked improvement on the performance of a home and minimize issues that could affect its future integrity...and value.

1. Home Buyers’ Plan

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time. Canada Revenue Agency

www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box | 1.800.959.8287

2. GST Rebate on New Homes

New home buyers 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. Canada Revenue Agency

www.cra.gc.ca. Enter ‘RC4028’ in the search box | 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.

www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate  1.800.959.8287

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.

www.hstinbc.ca/making_your_choice/faqs/new_housing_rebate | 1.800.959.8287

5. BC Property Transfer Tax (PTT) First Time Home Buyers’ Program

www.rev.gov.bc.ca/rpt | 250.387.0604

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2010) x $5,000. For the 2010 tax year, the maximum credit is $750. Canada Revenue Agency

www.cra.gc.ca/hbtc | 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 $1,150,000. For 2011, the basic grant is reduced by $5 for each $1,000 of value over $1,150,000, and eliminated on homes assessed at $1,264,000. 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 $1,150,000 and eliminated on homes assessed at $1,319,000+. BC Ministry of Small Business and Revenue

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.

BC Ministry of Small Business and Revenue

www.sbr.gov.bc.ca and enter ‘Property tax deferment’ in the search box or contact 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 home owners 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 owners creating secondary and garden suites.

www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm | 1.800.668.2642 | 604.873.7408

10. CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations.

www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno | 604.731.5733

11. Energy Saving Mortgages

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage, may qualify for a rebate of $300 to their RBC account.

www.rbcroyalbank.com/products/mortgages/energy-saver-mortgage.html | 1.800.769.2511

12. Low Interest Renovation Loans

Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 renovation on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution.

www.vancity.com/Loans/BrightIdeas and www.rbcroyalbank.com and in the search box enter ‘energy saver loan’.

Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with Terasen Gas, BC Hydro, and FortisBC. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider.

www.livesmartbc.ca/rebates | 1.866.430.8765

Home owners 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.

www.sbr.gov.bc.ca/documents_library/notices/HST_Notice_010.pdf or go to Google and in the search box type in ‘Residential Energy Credit rebate program.’ It is the first item. | 1.877.388.4440

15. BC Hydro Appliance Rebates

Mail-in rebates of $25 - $50 for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers

until March 31, 2011, or when funding for the program is exhausted. www.bchydro.com/rebates_savings/appliance_rebates.html | 1.800.224.9376

16. BC Hydro Fridge Buy-Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.

www.bchydro.com/rebates_savings/fridge_buy_back.html | 604.881.4357

17. BC Hydro Windows Rebate Program

Pay no HST when you buy ENERGY STAR high-performance windows and doors. This offer is available

until March 31, 2011.

www.bchydro.com/rebates_savings/windows_offers/current_offers.

html | 604.759.2759 for a free in-home estimate.

18. BC Hydro Mail-in Rebates/Savings Coupons

To save energy, BC Hydro offers rebates including 10 % off an ENERGY STAR cordless phone. Check for new offers and for deadlines.

www.bchydro.com/rebates_savings/coupons.html | 1.800.224.9376

19. Fortis BC (formerly Terasen Gas) Rebate Program

A range of rebates for home owners include a $50 rebate for upgrading a water heater, $150 rebate on an Ener-Choice fireplace (both good

until March 31, 2011) and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system (good until February 29, 2012). http://www.fortisbc.com/NaturalGas/Homes/Offers/Pages/Residential-Water-Heater-Program.aspx| 1.888.224.2710

For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits.

http://www.fortisbc.com/NaturalGas/Business/Offers/Pages/default.aspx. | 1.888.477.0777

21. City of Vancouver Solar Homes Pilot

This rebate of $3,000 (about 50% of the cost) is for a Vancouver home owner upgrading to a solar hot water system from a gas system. Offered by the City of Vancouver, SolarBC, Terasen Gas and Offsetters on a first come, first served basis

until March 2011 or until the City reaches its target of 30 solar homes. www.vancouver.ca/sustainability/SolarHomes.htm | 604.873.7748

22. City of Vancouver Rain Barrel Subsidy Program

The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency.

www.vancouver.ca and in the search box enter ‘rain barrel program.’ 604.736.2250. Other municipalities have similar offers.

23. Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies.

www.vancity.com/MyCommunity/NotForProfit/Grants/ActingOnClimateChange GreenBuildingGrant | 604.877.7000

24. Local Government Water Conservation Incentives

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.

25. Local Government Water Meter Programs

Macdonald Main Street Opens!

The 875 square foot boutique office is located in the trendy Main Street area that borders both the east and west sides of Vancouver and serves Vancouver central and points east. 

Mortgage Rate Forecast

Wednesday, May 5, 2010 - The first survey ranking Canada's top real-estate brokerages is being released today and industry executives are already squabbling over the top rankings.

      The top firm in the country by dollar value of transactions is Vancouver-based Macdonald Realty Group, which had more than $4.7-billion in sales in 2009, says the survey by Real Trends Inc., which provided an advance copy to the Financial Post.

      But the results are being challenged by Royal LePage Real Estate Services Ltd. chief executive Phil Soper, who said they are "self-reported."

      Colorado-based Real Trends, which has been doing the survey for 20 years in the United States, said all the data were verified by either an external accountant's letter certifying the accuracy or, if the firm was part of a branded chain, explicit approval by the franchisor.

      Dan Scarrow, the vice-president of strategy with Macdonald Realty, said since most of the transactions go through the Multiple Listing Service, they are public and easily verifiable. Any brokerage making up a number is sure to be called on it, he said.

      "We are the largest independent brokerage in a very large market and the market is very fragmented," said Mr. Scarrow in explaining his No. 1 ranking on the list.

      The No. 2-ranked firm in terms of dollar value was Re/Max Real Estate Central in Calgary, with $2.75-billion in sales. That Re/Max brokerage, with 242 agents, finished more than $200-million ahead of Mr. Soper's fifth-placed Royal LePage Real Estate Services Ltd., which has 1,258 agents.

      "It's grossly wrong," said Mr. Soper, casting doubt on the findings that did place his firm No. 1 in the country by volume of transactions, with 9,849 sales concluded. Royal LePage operates a franchise model and also has 15 offices that are corporately owned.

      "We sent out announcements multiple times to everybody, from [the Canadian Real Estate Association] to all the national brands. Every single one of them.

"We talked to other brokerages who do business in Canada," said Steve Murray, editor of Real Trends. "I'm sure somebody will be left out, but we tried to make sure every broker who does 500 transactions in Canada had a chance to apply."

      Real Trends does not charge brokers to be part of the list, but does try to sign up companies for its subscription service. "Brokerages can benchmark themselves against others and see the general trends among different brands and provinces," Mr. Murray said. "The large brokers can see whether they are doing better than the market, as well as the market or trailing the market. There is all kinds of statistical stuff that has never before been available to the Canadian market."

      He admitted there has been some resistance to the rankings in the Canadian market because some brokerages have never revealed such information before.

Of the 200 firms that participated, there were 392,898 transactions, Real Trends says. That represents only about 42% of total transactions in Canada. There were 465,251 transactions in Canada conducted through the MLS in 2009, according to CREA, and each transaction has a buyer and a seller.

      Michael Polzler, executive vice-president of Re/Max Ontario Atlantic-Canada, said those not on the list this year because they chose not to participate might think twice in 2010 as the survey becomes more well-known.

      "Our market performance speaks for itself," said Mr. Polzler. Brokerages under the Re/Max brand had four of the top 10 spots in terms of sales and dollar value of transactions.