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GREAT VALUE!
#1106 121 W 15th Street
North Vancouver
Wood-frame vs. Concrete? This is a no brainer...buy concrete. Can't afford a concrete condo with a sweeping view...Think again! This one bedroom condo is located on the NW corner of an 11 year old concrete building. With sweeping mountain views and peek-a-boo water views to the west this unit is one of a kind. This suite has an open plan with lots of windows, in-suite laundry, lots of storage (5 closets plus a storage locker) and stunning new floors. Enjoy the view while you BBQ on your large balcony. Steps to shops, restaurants, transportation and library. All the features you need at a price you can afford! What are you waiting for?! $299.000
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INVESTOR ALERT!
$2,500 per month
#103 1655 Nelson Ave
Vancouver
This large 2 bed +den offers flexibility not found in most 2-bed condos. The den has a large south facing window and is large enough to be a small third bedroom (8' x 9'). This turnkey condo offers stylish upgrades including designer paint, crown moldings and new lighting. It boasts a newer kitchen w/new eating bar. This suite is currently rented furnished for $2,500 per month. Call now! $474,000
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SOLD!
1367 W 7th Avenue
Vancouver
Treat yourself to the old world charm of this classic London inspired townhome. Step through the wrought iron gates into a beautiful garden courtyard. Tucked away on a quiet tree-lined street this corner unit features bay windows, skylights, two fireplaces, parquet flooring and extensive millwork unlike anything currently available in Vancouver. This inspired space offers house-size living, dining and rec rooms. Enjoy a view of the city from your massive master bedroom w/luxurious marble ensuite; simply the largest 2-bed townhome available. New light fixtures, paint, newer s/s appliances, the list goes on and on. Don't miss your chance to live a life of convenience, class and inspiration at Wemsley Mews. $799,900
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Greetings!
Our local real estate market has been trending toward a balanced market for the last five months. We currently find ourselves on the lower end of a balanced market which is offering great selection and opportunity for buyers. According to the Real Estate Board of Greater Vancouver (REBGV) the sales of detached, attached and apartment properties on the region's MLS system is the second lowest total for October in the last 10 years. Although there are great opportunities for buyers, many are taking a wait and see approach. Seller's should be mindful of market conditions and focus on accurate and competitive listing prices. |
Goodbye HST...How will this affect the market?
With the recent defeat of the HST (to be implemented in March 2013), I have received some questions about how this will affect the real estate market. The short answer is: there will be a minimal effect, and some people will win, while others will lose.
While we can prognosticate about how these changes will affect the market, the government has yet to come up with a set of transition rules for how this will go ahead. However, to predict how things will be affected, we must break down its effects into 3 categories: New Construction, Resale, and Fees.
New Construction
This category is the one that is likely to be most influenced by the change back from HST to GST. All new residential construction will be taxable at the 5% rate rather than the previous 12%. However, the government will also be eliminating the New Housing Rebate, which was introduced to offset the burden of the HST on a property valued up to $525,000. For new construction valued at over $525,000, the rebate of $26,250 is being eliminated as well, but with the lower tax burden, there should be a net savings.
But that's not the end of the story. The change back from the HST to the GST & PST will result in higher construction costs as government rebates for input costs are eliminated. That means that while the tax burden may go down on these homes, the cost base will go up.
The net result is that for homes valued at more than $525,000, the overall cost will likely go down, while homes that are valued at less than $525,000, the overall cost will likely increase.
I expect pre-sales on new construction projects to slow until the transitional rules are in place. The uncertainty around the new rules will push many buyers to lean toward the resale market or to wait for further clarification.
Resale
The change back to GST should have little to no effect on the resale market as 'used' homes are not subject to HST and will not be subject to GST or PST. Instead, the government has a Property Transfer Tax, which will remain the same: 1% on the first $200,000; 2% on the balance.
Fees
The change back to GST will apply to the fees associated with a transaction and will lead to a slight decrease in these fees. That said, many of the fees currently associated with transacting a home already charged both GST & PST so there will be no change; however, the taxes on a realtor's fees will decrease by 7%. For a $1,000,000 home, real estate commissions typically average 2.95% of the purchase price. A tax decrease of 7% on this amount means that the tax on a typical realtor commission should decrease by roughly 0.2065% of a home's purchase price.
Taking all of this into account, it is clear that the change back to the GST will have a positive effect on the market, but only slightly so. That said, depending on your asset class, you may end up behind.
Please do not hesitate to contact me if you have any further questions regarding this issue. |
October 2011 in your neighbourhood:
North Vancouver:
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Avg Sale Price (year to date) | Median Sale Price |
Sales | Listings |
% Sales to Listings | | Detached Homes |
$1,031,399 | $912,000 |
92 | 116 |
79% | |
Townhomes & Duplexes |
$640,148 | $670,000 |
25 | 52 |
48% | | Condos |
$400,432 | $382,250 |
86 | 140 |
61% |
West Vancouver:
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Avg Sale Price (year to date) | Median Sale Price | Sales | Listings | % Sales to Listings | | Detached Homes |
$2,180,259 | $1,800,000 |
90 | 149 |
60% | | Townhomes & Duplexes |
$1,101,025 | n/a |
4 | 15 |
27% | | Condos |
$1,043,355 | n/a |
13 | 20 |
65% |
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Popularity of the Variable's dominance coming to an end?
In a recent interview with the Globe and Mail, one of Canada's top mortgage brokers was quoted as saying that variable rate mortgages are 'so over'. In the past decade we've seen borrowers flock to variable rate mortgages, but recent changes by the big banks and volatility in financial markets have bucked this trend. When variable rate mortgages stopped being profitable by big banks, we saw huge cuts on discounts offered. Where borrowers used to get 2.25% on a 5 year variable, today they are getting closing to Prime (3.0%). In financial markets, we saw a flood of activity moving out of stocks and into bonds, which put downward pressure fixed rate mortgages.
Today we're seeing the lowest cost of borrowing in 4 and 5 year fixed mortgages. So far this has been welcomed by borrowers who are looking for certainty amidst the financial volatility abroad.
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