Doug
Belcher, REALTOR, RE/MAX Nanaimo, BC, Canada
Real Estate Newsletter June 2005
BC Hydro provides rebates
BC Hydro provides rebates for heat-saving renovations undertaken by
customers living in houses, duplexes, mobile homes, townhouses, condos
and apartments with hard-wired electric heat as the primary source of
heating. Condominium and apartment buildings with gas fireplaces are
not eligible. Houses and townhouses must have annual electricity consumption
of at least 15,000 kWh. For houses, duplexes, mobile homes and townhouses,
the following rebates are provided:$1.00 for every square foot of window
area installed with low-emissivity (low-E) coating, or $1.25 for every
square foot of window installed with low-E and argon fill; $0.20 for
every square foot of R12 insulation installed in basement or crawlspace
walls, and for every square foot of R28 insulation on the floor above
the crawlspace; in attics with less than R12 insulation, $0.15 for every
square foot of insulation installed in an open attic to equal a total
R40 value, or $0.10 for every square foot of insulation installed in
a flat roof or vaulted ceiling to equal a total R28 value. For condos
and apartments, the following rebate is provided: $0.75 for every square
foot of window area installed with low-E, or $1.00 for every square foot
of window area installed with low-E and argon fill.
Materials must be purchased and upgrades must be completed between October
15, 2003 and June 30, 2005. BC Hydro also provides a $50 rebate to customers
who submit copies of both the pre- and post-renovation reports from the
federal EnerGuide for Houses Evaluation program.
Windows
Crawlspace insulation
Basement insulation
Attic insulation
NRCan EnerGuide for Houses program
This rebate supplements the related EnerGuide for Houses Retrofit Grant.
For more information:Web site. Phone: 604-431-9463, or 877-431-9463 outside
the Lower Mainland.
How to obtain this incentive:Complete the appropriate Rebate Application
Form. Forms must be accompanied by detailed receipts for all labour and
materials used in the renovations. If a contractor is used to complete
renovations, a Contractor Installation Form (available at the same address)
must also be completed.
Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial
Canada have announced reductions in premiums for mortgage loan insurance,
effective immediately. Genworth, the only private sector supplier of
default mortgage insurance, has cut its premium rates by 15 per cent.
The reduction applies to all borrowers with less
than a ten per cent down payment. “These immediate savings—about $800 for the
average home buyer—will help first time home buyers and current
homeowners who wish to move into their dream homes take advantage of
continuing low mortgage interest rates,” said Peter Vukanovich,
president of Genworth Financial Canada. CMHC’s premiums for first-time
buyers with a five per cent down payment will be cut by 15 per cent.
CMHC has also announced plans to waive the premiums for rental housing
projects funded under the federal affordable housing initiative.
Forms and receipts must be mailed to the Renovation Rebate Program by
July 15, 2005.
Recent activity in the Nanaimo real estate market has caused
intense competition for homes under $200,000. As of May, 26, 2005 22
of the 50 recent sales were sold in less than 2 weeks. If typical subject
removal tales 10-14 days, the homes are in real terms “sold subject” within
a day or so of the for sale sign going up. It should be noted that 10
of the last 50 sales took longer that 75 days. The curb appeal and proper
pricing greatly affect the number of days on the market.
What this means to a buyer?
1) You need to be pre-approved before viewing homes.
2) You need to be ready to make a quick decision. Hesitate
and you can loose the home to another buyer.
3) Be prepared to look at homes on a moments notice. Waiting
for the weekend may be too late. It is a sellers market. Multiple offers
are common!
What this means to a seller?
1) Homes under $200,000 tend to be older and have more
defects. Your home may be hard to sell if it is not insurable. Insurance
companies do not want oil tanks over 20 years old or electrical services
under 100 amps. If you are selling with the intention of buying another
home a bad building inspection can be a deal killer.
2) Clean the home up so that it is attractive to buyer.
Painting, Cleaning and a little yard work do wonders for curb appeal.
You want to be in a position to receive multiple offers and possibly
get over your asking price.
If you own a home that you want to sell in this price
range I would be happy to give you a free, no obligation current market
evaluation. 250-751-1223
CANADIANS BUY INTO HOMEOWNERSHIP EN MASSE
"More Canadians bought into home ownership during the last 10 years
than in any previous decade," says Elton Ash, Regional Vice President,
RE/MAX of Western Canada. "Lower borrowing costs and tight vacancy
rates helped jumpstart the country’s real estate engine in the
latter half of the 1990s. Consumer confidence and solid economic fundamentals
kept the market on track. Despite an increase in mortgage rates from
historic levels reported in 2003 and an abundance of affordable rental
accommodations, Canadians continue to share the dream of home ownership.
That appeal has yet to be duplicated by any other investment vehicle."
Home sales across the country rose to approximately
3.6 million units between 1995 to 2004, up 25 per cent over the 2.9
million sales reported in 1985 – 1994. Statistics Canada pinpoints
home ownership levels at 65.2 per cent nationally in 2002 and rising.
Only Quebec and British Columbia reported home ownership levels under
the national average.
The market is so hot in Vancouver purchasers are
including ´trump
clauses´ in their offers to purchase that allow them to ante up
on any higher offers that may be presented. That’s a first for
this industry."
Trends developing across the country:
~ Luxury homes in virtually every city experienced brisk sales activity
in recent years.
~ Condominiums surged in popularity over the past decade, providing both first-time
buyers and empty-nesters with a lifestyle that both age groups could appreciate.
~ Immigration has played a role in many Canadian markets, with British Columbia
and the Atlantic Provinces enjoying an influx of wealthy purchasers from abroad.
~ Younger buyers are more active in housing markets than ever before, as financial
institutions relax stringent lending policies in place one decade ago.
Two-Unit Homeowner properties
2-unit owner-occupied properties, including single homes with a secondary
apartment and duplexes are an important source of affordable rental housing
for seniors, young adults, recent immigrants, and the working poor.The
associated rental income also helps the borrowers meet the costs of home
ownership. Borrowers who wish to purchase a duplex or a single home with
a secondary apartment can now achieve home ownership sooner with a minimum
down payment as low as 5%. Borrowers can also now use up to 80% of the
confirmed gross rental income from the subject property to qualify for
the insured mortgage loan for purchase, portability and refinance transactions.
Terms and Conditions
CMHC provides mortgage loan insurance to CMHC Approved Lenders. Approved Lenders
are responsible for all aspects of the mortgage loan insurance application.
The following table highlights the policy changes that apply to 2-unit owner-occupied
properties. |
Cuts
to Mortgage Insurance Premiums
| Real
Estate Listings Sold 