Have you heard the news?
The local real estate "crash" seems to be over. The power of the media over the last few months certainly affected the market. But Victoria seems to hold it's own, even in times of global recession and financial crisis. That's one of the beauties of investing in property here. Residential properties are currently selling at a higher than expected volume. Just looking through the listings in our office - there aren't really that many compared to a month or two ago. Yes, they've sold. "Lower interest rates and resulting increased affordability have energized the entry-level housing market", says Victoria Real Estate Board President Chris Markham. It's a great time to buy or sell. There are lots of buyers looking, which is good for sellers, and there are some great deals to be found, which is great for buyers. With the first sunshine we've had for a while, that puts everyone in a positive, optimistic frame of mind also!

Victoria Real Estate Board Green Task Force update

The work of the Green Task Force has been completed. I would like to thank Tony Joe, Past President of the Victoria Real Estate Board, for his leadership in bringing "Green Real Estate" to the forefront. Victoria was the first Real Estate Board in Canada to offer the National Association of Green Realtors and Brokers courses to it's membership. Close to 50 Victoria realtors have taken advantage of this online training. This increases knowledge and awareness of energy efficiency of homes which the realtor is able to pass along to their clients. As the construction and building industry moves ahead with both LEED and BUILTGREEN, we as realtors need to stay current with terminology, practices and products.

The Green Task Force also began the process of providing information packages for realtors full of locally relevant resources that they can give to their clients. An example of what is in the package are the government rebate programs available to home owners. These will be available to realtors in the next month or so.

The Green Task Force also decided to support the Ministry of Education's Greening of Schools program. Through the Community Relations Committee, funding will be made available to schools to help them with their projects.

I would like to thank the chair of the Green Task Force, Dennis Fimrite, for inviting me to join the Community Relations Committee as the Green Task Force representative, to enable easy transition of information.

Real estate warming up for spring

First-time owners drive market as housing affordability improves

By Carla Wilson, Times Colonist; With files from Canwest News Service
March 12, 2009

More people are starting to show up for open houses.

Photograph by: Darren Stone, Times Colonist, Times Colonist; With files from Canwest News Service

First-time home owners are driving home-buying as affordability improves across the country, says real estate company RE/MAX.

Canadian real estate markets are "reawakening" as the weather warms up, said Elton Ash, regional executive vice-president for RE/MAX of Western Canada. "First-time buyers seem more acclimatized to economic factors, even though the barrage of bad news continues to flow.

"Those who are secure in their jobs, have accumulated good down payments and have acceptable credit ratings continue to venture forward, undeterred by tighter lending criteria."

In Victoria, the market's upswing is reflected in the number of people showing up for open houses, Wayne Schrader of RE/MAX Camosun said yesterday.

That's grown from a few couples in January and the months prior to 30 to 50 people since mid-February, he said.

Residential sales in the capital region rose to 403 in February from 247 in January.

The market is continuing to build and 59 per cent of sales are for properties

that changed hands for less than $450,000, Schrader said.

"Many first-time buyers are looking to downtown Victoria and Esquimalt to realize their dream of homeownership," the report said.

The starting price for a single-family home in Greater Victoria has dropped to $310,000 this year from $350,000 last year, RE/MAX's report said. Schrader noted, however, that in the capital region, few single-family homes are available in that range, or even at $350,000 to $380,000.

The report also put the starting price for a 1,000-square-foot condominium at $190,000 this year, down from $200,000 last year. Many condos are priced at more than $250,000, Schrader said.

Low interest rates and government incentives to home buyers and for home improvements are helping to fuel the market, he said.

Stephen Gagnon, a mortgage broker with Mortgage Architects, who works with RE/MAX, is seeing an increase in the number of first-time buyers this year. Minimum credit requirements have tightened in today's market.

First-time buyers will often put a five per cent down payment onto a purchase, with many choosing condominiums or townhouses, or single-family homes with rental suites to help offset mortgage payments, he said.

Mortgage rates can change daily and a variety of options are available. If a buyer put five per cent down on a $225,000 condo and signed up for a five-year fixed rate of 4.15 per cent on a 35-year amortization, monthly payments would be just over $990, he said.

RE/MAX said people are being lured out of the residential-rental market by lower mortgage rates and home prices.

"Increased inventory and longer days on the market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade," the company said.

Of the 32 local markets

it tracks in Canada, RE/MAX said 22 of them, including Victoria, are "firmly in buyer's-market territory."

It said single-family homes can be found in 40 per cent of these locations for less than $200,000 and condominiums for even less in more than 70 per cent of the markets.

Millan Mulraine, economics strategist with TD Securities, agreed that conditions are ideal for first-time buyers to enter the housing market, or existing homeowners to upgrade, if their respective financial situations are secure.

While it's hoped improved affordability might plant the seeds for future recovery in the housing market, Mulraine said many economic impediments remain.

"The economy as a whole is not in great shape," Mulraine said. "The Canadian labour market itself seems to be turning belly up. For a number of people, it clearly isn't a time to be purchasing or getting into a big investment like buying a home when you're not sure about your employment situation."

The Canadian economy lost a record 129,000 jobs in January, according to Statistics Canada, and a loss of about 50,000 jobs for February is expected to be reported tomorrow.

Real estate market prime for first-time buyers

Many incentives for new homeowners

Marty Hope

Calgary Herald

CREDIT: Justin Sullivan, Getty Images While zero-per-cent down payments and 40-year mortgages have gone the way of the penny match, mortgage rates and housing prices are trending down--at least for the time bein

They're back--but if they're not, they should be. A few years ago, before diminishing affordability sent them scurrying to the sidelines to continue to share accommodation or hang out at their parents' homes, first-time buyers were a force to be reckoned with.

If they had full-time jobs and could muster together five per cent of the value of a home for a down payment, they were in.

They were the starting point that set the whole chain reaction in motion.

They would buy a resale home and the sellers would move to something else, and those sellers --well, you get the idea.

I recall a housing seminar that strongly suggested first-time buyers were accountable for something like 35 per cent of all homes sold in Calgary.

Then, prices started to jump. Homes were selling in a matter of hours at above asking prices.

Multiple offers forced many potential purchasers to bail because their budgets just weren't high enough to compete.

Sellers, meanwhile, were reaping the benefit of being behind the steering wheel.

Well, things have turned. Firsttime buyers are back in the game, if they want to be.

Sellers are having to bring their asking prices back to more realistic levels to attract an anxious, but cautious, pool of buyers who know they now have more say over what happens in the marketplace.

At the same time, though, jobs are being lost in some sectors, salaries are likely being frozen, and consumer confidence has taken a hit. While there is some pent-up demand for homes, the buyer pool has gotten shallower. Sellers have to realize this.

On the other side of the coin, while zero-per-cent down payments and 40-year mortgages have gone the way of the penny match, mortgage rates and housing prices are trending down--at least for the time being.

That should be good news for those looking at home ownership for the first time.

Add to this the fact builders are focusing on giving home shoppers more for their money. in many homes, prices have been cut by many builders, and they are open to negotiation.

There also seems to be a new emphasis on quality now that the market has somewhat calmed.

Bill Bobyk, general manager of the Sterling Group of Companies, says there are two basic reasons people should be buying: "very good" prices and attractive mortgage rates.

Another factor to consider is that "because this is not the market to be flipping homes, people should be buying with the intention of living in them for a few years," he says. "Buy them because they can be homes, not a short-term investment."

Another thing to remember are the tax breaks for buyers and home renovators in February's federal budget, presented by finance minister Jim Flaherty.

"The federal government's recent budget has added more reasons for Canadians who aren't yet homeowners to consider entering the real estate market this year," says Gary Siegle, Calgary-based regional manager for mortgage brokerage Invis. "For those who are feeling secure about their income and want to take advantage of low rates and a more affordable market, the budget provisions could make an enormous difference in terms of the properties they can afford."

Homebuyers can now withdraw up to $25,000-- up from $20,000 --from their RRSPs as a down payment under the Home Buyers Plan.

Secondly, they can qualify for a $750 tax credit to help them pay for closing costs, such as appraisal or legal fees.

"We are now seeing more first-time buyers seriously considering making the jump this spring into ownership," says Siegle. - Get documentation, such as proof of income and down payment, in place. A mortgage expert can also check credit history to ensure lender's requirements are met. - Apre-approved mortgage can save time, so establish a price range. Mortgage rates are also guaranteed by many lenders for up to three months. - In this type of market, there is room to negotiate with sellers on prices as well as any other terms set out in the listing, such as possession date, appliances being added, and home inspections.

There are plenty of homes to choose from, so don't rush things. - A mortgage is a big debt--probably the largest debt anyone can incur. As a result, it's wise to try to get it paid off as soon as possible.

There are several payment acceleration options out there, so find out what they are and save money in the long run. - Find a mortgage and a home that suits your lifestyle. The mort-gage should reflect your current financial status, but also fit with long-term goals. Don't just buy for the sake of buying in a buyer's market. Find yourself a home that fits your lifestyle as well as your future needs.

mhope@theherald.canwest.com

© The Calgary Herald 2009

Homeowners get answers

Be sure you understand the details from the start

By Pedro Arrais, Times Colonist February 25, 2009

The Home Renovation Tax Credit plan is part of the federal government's aim to inject $3-billion to stimulate the economy. It has met with a lot of enthusiasm -- but also with a lot of questions.

The plan seems simple enough at first glance: Spend up to $10,000 on renovations and construction on the family home, and you get a tax credit of 15 per cent back, up to a maximum of $1,350. It's a credit, so it reduces the amount of federal tax you have to pay; it doesn't mean you get a cheque for $1,350. The plan will be administered by the Canada Revenue Agency.

The plan encourages homeowners to open their wallets with the promise of a reduction on personal income taxes paid next year.

"It's money in the pocket," says Ian B. Lawson, a certified general accountant who operates a practice that bears his name. "It's a win-win situation for homeowners and legitimate, tax-paying businesses."

He notes that the incentive is also a boon to the Canada Revenue Agency, as homeowners will be keen to use legitimate contractors who can supply invoices for work performed. Operators of unlicensed, non-tax-paying companies or people who ask for payment under the table will likely see their business suffer.

"It will definitely affect the underground economy," Lawson says. "It's not good news for those in the building trades that who don't declare income."

For more information, visit www.cra.gc.ca or call 1-800-959-8281

- How do I apply?

There are no application forms. There will be a line in the 2009 personal tax return.

- Do I need to be pre-approved before work can start?

No.

- What is the eligibility period?

The credit is based on work done and materials acquired after Jan. 27, 2009, and up to Feb. 1, 2010.

- When will I get the tax credit?

The tax credit will be applied when homeowners file their 2009 tax return next year.

- I don't pay very much tax. If the tax credit is more than my personal income tax paid for 2009, will I get a tax refund?

No, it is a non-refundable tax credit.

- Can the credit be carried forward?

No, it can only be applied for the 2009 tax year.

- Who is eligible?

The plan is family-based. In the eyes of the CRA that means an individual or an individual and his/her spouse or common-law partner, including children under 18 at the end of 2009.

- What if two or more members of a family co-own a property?

Each family member will be eligible to file for their own separate credit.

- What is the definition of a family for the purposes of this credit?

A family is generally considered to consist of an individual and spouse or common-law partner if applicable.

- Is it just houses that are eligible?

No, the credit also includes work on condominiums and cottages owned for personal use.

- Does it include rental units, such as basements or apartments?

No, just property owned for personal use.

- Do I have to spend $10,000 to qualify?

No, homeowners can spend a lesser amount and receive a proportionate amount in tax credit.

- What if the work is over $10,000?

Homeowners are free to spend more than $10,000 on their renovations but they will not get a credit on any work over the limit.

- How is it calculated?

The 15 per cent credit is based on expenditures of more than $1,000 of work, but not more than $10,000. The maximum credit of $1,350 is based on 15 per cent of $9,000.

- Can I do the work myself?

Yes. In such cases, the tax credit will apply to the materials, fixtures, rentals and permits purchased. Keep those receipts as well as delivery receipts to show the goods came to your principal residence.

- Can I hire somebody in my family to do the work?

It depends. Usually the work should be done by an individual dealing at arm's-length. But if the person doing the work is registered for the GST/HST under the Excise Tax Act, the expenditure will be eligible.

- What are eligible expenses?

The cost of labour and professional services, building materials, fixtures, rentals and permits.

- Does the work have to be done by a business, not an individual?

No, an individual can perform the work. But that individual has to be able to produce receipts and invoices for homeowners to apply for the credit.

- Is it just on renovations?

No, the credit can be claimed for new construction, such as alterations and additions to a property.

- Are roofs covered?

Yes. According to the CRA, the credit applies to any renovation or alterations of an enduring nature and integral to the dwelling.

- I want to build a wheelchair ramp. Can I also claim the Medical Expense Tax Credit?

Yes, a homeowner can claim both credits.

- Can we piggyback on other grants currently being offered by other federal programs?

Yes. Homeowners are eligible for both.

- What documents do I need to submit?

Homeowners need to retain all agreements, invoices and receipts for the work performed available in case the CRA requests them. The documentation must identify the goods purchased and services provided, and must identify the contractor or vendor. The invoices must be dated. They must also provide proof of payment.

Ont. to have green regime: Energy minister.

By Lee Greenberg, Canwest News ServiceFebruary 23, 2009 9:01 PM

Photograph by: Peter Redman, National Post

TORONTO — The province is prepared to impose a green regime that will direct how homeowners sell their property, set prices on alternative energy and cut municipalities out of deciding where wind and solar energy projects can be located.

The sweeping legislative package known as the Green Energy Act will amend 15 statutes and the government says it will create 50,000 new jobs.

For homeowners already facing one of the worst markets in decades, the new law will mean that they will be forced to pay for an energy audit before putting their house on the market.

Energy Minister George Smitherman said he wants a home's energy efficiency to play as much of a factor in a sale as fuel efficiency does in a car purchase.

"If you go to a car showroom today, what's the big sticker on the window? It's the (sticker) that tells you about the energy use of the vehicle," he told reporters Monday. "And the very same principle will apply in this case."

It is unclear when the first mandatory home energy audits will occur. Smitherman said he wants to ensure there are enough auditors working before the plan goes ahead. The audits cost about $300 and are required for a rebate program for energy retrofits offered by the provincial and federal governments.

The act is designed to encourage massive investment in renewable energy production and conservation.

Those measures include streamlining lengthy approval processes and offering a generous, fixed price (which has yet to be set) for all wind, solar, hydro, biomass, biogas and landfill gas projects. Smitherman said that provision, known as a feed-in-tariff, would put Ontario on the level of "global green power leaders like Denmark, Germany and Spain."

New large energy projects will also be required to contain a certain, as yet undetermined, percentage of local content.

For smaller producers, including homeowners, the government will offer zero or low-interest loans to build a small-scale renewable project — like rooftop solar panels or micro wind turbines.

The government will also amend building codes for new construction, mandate more efficient appliances and set the stage for electric cars.

Note:

In Victoria, the Real Estate Board is in discussion with the Municipality of Oak Bay to be the first pilot project for mandatory energy audits for home sales in Greater Victoria.

New Listing at Aquattro

Two bedroom plus den TOP FLOOR corner unit with almost 1600 sq ft of new construction living space - unheard of luxury! 14 foot ceilings and designer finishings. Located on the Esquimalt Lagoon, with 50 acres of walking, hiking & biking trails, nestled in a preserved natural setting of heritage orchards and bird sanctuary, next to Royal Roads University. Large principal rooms including gourmet kitchen. Energy efficient geothermal heating and cooling systems. Assignment of contract. Sizes taken from builders floor plan. Available for occupancy June 2009. $881,900. mls 258485