Real Estate Information

Why not make your money work for you.

With the recent recession, everyone is getting back to the basics, and thinking about where their

money goes.  People are thinking twice about debt, and spending beyond their means.  This is why buyerss are becoming smarter, and more knowledgeable.  Now more than ever we have to squeeze every penny out of our hard earned money.  So this is why we love the ability for first time buyers to be able to use their RRSP savings for a down payment on their house without a tax penalty.

People who invest their money into an RRSP understand the real benefit of this government incentive.  It is like getting an automatic 15-25 % gain on your money in one year.  If you’re in the lowest tax bracket let’s see an example.  You make 35,589 this year (just squeezing you into that lowest tax bracket), and decide to save 5,000 towards the down payment of your dream home so you put this money into an RRSP, instead of paying the normal $4,476 tax you will pay only $3,473 in tax (this calculation is an estimate). An automatic 20% return on investment!  Which at the same time, you will receive this payment after you file your taxes in April, then what you can do with it is up to you, but why not invest that money too!  So now you have $6,000 saved up already for your down payment.  Keep going on with this process and you will have the money in less than 3.5 years in addition you may have banked a few extra dollars if the RRSP’s have gone up in those 3.5 years.

Now to use this RRSP savings for a down payment you can use up to $20,000.  Most banks require a minimum of 5% down for a home, so that 5% down can go towards a $400,000 home.  But wait let’s say you’re married, you and your spouse can both contribute $20,000 of RRSP’s to your down payment, and let’s take that same $400,000 house, and you have just made a 10% down payment.  Much more than most first time buyers.  Making that extra 5% down payment will save you a good chunk of money in interest.

Now just like government incentives there are some rules and regulations here are some of the them:

-          You must begin to pay back your RRSP account 2 years after the money has been withdrawn

-          You have 15 years to pay back the money and each year you must contribute 1/15 the amount you owe.

-          The funds must have been deposited more than 90 days prior to the withdrawal

-          A signed agreement proving that you actually intend on buying or building a home must be provided (if you’re trying to just scam the system jokes on you because you are pulling your money out of the stock market with a good cause.)

-          You must buy or build before October 1^st of the following year you withdrew the RRSP funds.  (why October 1^st?  We don’t know but do let us know if you find a good reason for that day!)

For more information on tax calculations, and is a great tool to see what your tax savings will be if you invest in RRSP’s visit:

http://www.taxtips.ca/calculators/taxcalculator.htm

For more information on using an RRSP as a down payment through the Home Buyer’s plan visit:

http://www.canequity.com/mortgage-resources/library/using_rrsp_downpayment.stm

Lower Mainland Transit

We are getting connected.

The Canada line has reached their goal of over 100,000 riders per day and at that, 3 YEARS early!!  Currently in July there were 106,000 (approximately) riders on the Canadian Line Monday to Friday.  So, BC if you build it they will come!  We are highly anticipating the Evergreen line, with all the talk about it we are ready to see the start of construction.  With the gas prices reaching $1.19 today, I think British Columbia is sure to have the same response with the new Evergreen line as they did for the Canadian Line.  Well our administrative assistant comes into our Coquitlam office from Vancouver everyday and she will be thrilled when it’s finished. 

So when are we going to see the construction?  Well it is anticipated to start early 2011, however with all the planning, and environmental studies the government needs to do; we all know they will probably start late as per usual but it’s better late than never.  It will be a fast, frequent line, which will take you from the Lougheed Town Centre to the Coquitlam Centre in 13 minutes! AMAZING!

So my question is, like London England, Will driving to work become a thing of the past?

For us once the new line has started construction we suspect we will be doing a lot of business in all the areas that have purposed stations, as it will most definitely become more popular due to the convenience. 

Check out the Evergreen Line link for more information.

http://www.evergreenline.gov.bc.ca/

The Axfords,

Prudential Sterling Realty

www.PortMoodyCondos.com

www.theAxfords.com

Tax Break for New Buyer’s

FEDERAL FIRST TIME HOMESOWNER’S TAX CREDIT STILL AVAILABLE

In 2009 the federal government introduced a new tax line in the personal income tax return allowing a credit for first time home owners.  This is exactly what the government should be doing.  Helping people live the Canadian dream, and become a homeowner.   And hey who knows maybe that credit will buy you a new couch!

The credit comes by multiplying the lowest personal tax rate for the year the home is purchased by $5,000.  The maximum credit for 2010 will be $750. 

To qualify you must buy a home in Canada, (if you can buy a vacation home on a tropical island for your first house please invite us!), the home can be any type of dwelling (condos, town homes, duplex, triplex ….) even co-operative housing, however a share that only provides right of tenancy will not be included.  You will also not be considered a first time home owner if you or your spouse/ common law partner has purchased a new home in the same calendar year, or four calendar years preceding.   The buyer must intend to occupy the home no later than one year after purchase.  

Any unused portion of the credit may be claimed by your spouse or your common law partner. 

Details are best explained on the Governments Website, check it out:

http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

We, The Axfords, have helped many first time buyers through the purchase of their new home. It is an exciting, and nerving process and we would be honoured to be your Realtors. 

The Axfords,

Prudential Sterling Realty. 

10 Reasons to live in Port Moody,

“Port Moody, City of the Arts, is a unique, safe, vibrant waterfront city of strong neighbourhoods; a complete community that balances growth with its natural environment and heritage character.”  City of Port Moody.

1.  Outdoor Recreation: Between the Inlet, the Lakes, and the surrounding Mountains how can you create a better place?  Port Moody is a vibrant city, suiting the recreation needs of all ages.  You can enjoy summer sailing in the Burrard Inlet, or relax in one of Port Moody’s outdoor pools, or unwind and pack a picnic at many of Port Moody’s Parks, or rev up your heart rate trekking the trails (or do as we do and just enjoy a relaxing walk through them).
2. Walk-able Neighbourhoods, get on the trend of a simpler and healthier life with this well-planned city you can walk to the drug store, the corner store, and the grocery store. Ditch the old suburban habit of driving everywhere! 
3. Growing City, this city is rapidly developing. Move in to one of Port Moody’s fantastic new condominiums, settle down with your family in Heritage Mountain, or enjoy the history in “old” Moody.   
4. People and Varity, the people range from lots of young singles, first time home owners, young families, laid back retiree’s, and US!!  The common denominator is friendliness!! 
5. Shopping.  Port Moody has it all.  From wonderful florists, to clothing, to home accessories, you will find it all, and find it all within your neighbourhood.
6. History and Culture.  Everyone can appreciate the history that is restored here in Port Moody.  From the City Hall, Museums, and even one of our favourite Port Moody restaurants Heritage Pizza. 
7. Recreation Centre.  There is plenty of indoor recreation to get involved in Port Moody.  Enjoy the brand new Rec Centre with Ice Sports, year-round field sports, indoor gymnasiums, fitness centre, and plenty other events. 
8. Accessibility.  Drive 45minutes and arrive at the US border, 30 minutes to local skiing, and 30 minutes to downtown Vancouver. 
9. Public Transportation.  Take the west coast express to downtown Vancouver in a flash, lots of buses, and the soon to arrive Evergreen Line.
10. Housing.  You can find housing for all types. Old heritage buildings, new condominiums, acreages, 1 bedroom chic condos with access to Recreational facilities, and fantastic family homes. 

We are a family team of Realtors, specializing in Port Moody.  We love it and we know you will, too! 

Check out our specialized website for Port Moody Condos

www.portmoodycondos.ca

Or Search for family homes at:

www.theAxfords.com

Green your Home!

A great way to start is to call a professional, and get an Energy Audit.  This will help you determine what you can do to improve your homes energy efficiency. 

 Tips and Tricks for old Windows and Doors.

• Use Insulator Film.  It is a cheap and easy way to save money in the winter months.  It is a thin clear plastic that gets attached to your window with double sided tape, and a blow-dryer.  Creating insulation in minutes!
• Caulking and Sealant.  Ideal for doors, or windows not made to open.  This will come in thick liquid or expanding foam that is relatively easy to apply.  The trick is to read instructions carefully, as there are specific materials for exterior and interior.  Also it will require maintenance over the years, but it will block incoming or outgoing drafts.  Saving you money!
• The old trick that never gets old, close the blinds while you’re away in the day.  This will block the sun from turning your house into an oven.  Also open some windows at night to change the air, and release the heat!!

If you are in the mood, and financially ready to renovate use Energy Star Windows.  This renovation will save you money on your Utilities Bill, as well as raise your home’s value substantially.  Also to top it off BC Hydro offers rebates, check out what you’re entitled to at:

http://oee.nrcan.gc.ca/residential/business/manufacturers/rebates-and-incentives.cfm?attr=4

Appliances

Dishwashers: 

• Run your dishwasher only when it’s full
• Clean the filter (there’s a filter!  Better get on that!) 
• Use the good old fashion way of drying dishes, and set your cycle to “Air Dry” if you have the option
• Scrape the food of your dishes before placing them into the dishwasher, there is no need to rinse they are just going into the dishwasher anyways.

If you are planning on replacing your dishwasher look for the Energy Star, a ton of our Clients buying Real Estate in the Tri-Cities, look for homes with efficient appliances!

Fun Fact Dishwashers today are 95% more efficient than when they first came out in the 1970’s.  Think about how efficient they will be when our kids are buying them? 

Refrigerators,

• Make sure you buy the correct capacity.  If it’s too big, you’re wasting space, and money paying to operate it.  If it’s too small you may be overcrowding all your products allowing your fridge to be less efficient. 
• Use your separate temperature dials for the fridge, and freezer.  No need to over freeze, or over cool! 

If you are planning on replacing your refrigerator again look for the Energy Star, our Clients buying Real Estate in the Tri-Cities, are starting to look for homes with efficient appliances!

Washers and Dryers,

• Clean the filter before EVERY  load
• Use your cold wash cycle for the not so important washes like towels! 
• Use your water-level control
• Don't put dripping wet clothes into your dryer - Wring them out.
• Sort your clothes by thickness dry thin and quick dry together, then the thickest together like towels.
• Start your second load of drying as soon as the first is finished. The dryer will be warm, and you'll save energy.
• Avoid over-drying your clothes. Reduce the drying time for lighter loads.
• Always do full loads. Drying partial loads wastes energy.

If you’re planning on buying a new washer look for a front loading machine, they are more efficient and apparently there is less wear and tear on your clothes! 

Government and BC Hydro Incentives

http://oee.nrcan.gc.ca/residential/business/manufacturers/rebates-and-incentives.cfm?attr=4

Water;

• Wrap your hot water tank in an insulating blanket; this trip is only handy if your tank is more than 7 yrs old.
• Wrap the first 3 feet of your hot and cold water pipes in the type of insulated blanket
• Use a low flow showerhead, trust me your not THAT dirty that you need all that water!

“Let there be Energy Efficient Light!”

• Compact Fluorescent Lamps use 75% less of the energy that incandescent bulbs and deliver the same amount of light.
• Yes CFL’s cost more ($3 to $10 on average), but however they use much less energy, you'll save on your power bill as soon as you start using them And they last 10 times longer. 

Recycle:

We’ve all heard it, we all do it to some extent but this year take it up a notch.   

Fun Fact:  The energy saved from recycling one aluminum can is enough to run a T.V. for 3 Hours.    

Unplug: 

When it’s not in use unplug it!  It’s just that simple!  Computers, cell phone chargers, the hair straighter,

More and more people are starting to get onto this bandwagon, and we see it daily from our Tri-Cities clients, looking to buy homes with energy efficiency. 

The Axfords,

Call your Tri-City Real Estate Specialists.

604-931-8152

Should you BUY or SELL first?

Which came first the Chicken or the Egg?

This is an age old Real Estate question and a question all sellers should ask themselves first and go over your own unique pros and cons list before you come up with a conclusion. 

For argument sake let’s start with BUY first:

Some of the pros:

• You can eliminate unnecessary moves having a house to transfer all your belongings to without needing to find a temporary rental in the event your current home sells quickly. 
• If you are transferring in the same city, or a nearby city you can transfer all belongings efficiently without rushing eliminating nights sleeping on an air mattress or eating on the coffee table. 
• You can be meticulously picky finding your dream home without the pressure of homelessness in the event your house sells quickly. 

Some of the cons:

• You could be forced to carry two mortgages, two utility bills, and two tax bills. 
• You could end up accepting a lower value on your current home due to the pressure of getting it sold quickly

Now let’s say you SOLD first:

The Pros:

• You will not be on a tight deadline to sell therefore having an upper hand in the negotiation, accepting only the value you consider to be fair for your home.
• You can get pre-approved for a mortgage so you can look for housing in a specific price range
• You can use the money from the sale of your original home, to purchase your new home

The Cons:

• You may end up buying something a touch less than perfect with the added pressure of your finalized sale date
• You may face temporary living and storage situations

If you do sell your house first here is our tip:

Go browsing with your Real Estate Agent during the marketing of your current home to get a feel for what you like, and dislike.  After your house becomes conditionally sold go shopping again and choose three of your favourites and be prepared to write on one of them.  

In both scenarios it is important to receive a professional Current Market Analysis of your current home before making any decisions, this way you will know what to expect as a sale price for your home, and how long a typical house is selling in this current market.  To start your research today you can visit our website at

www.theAxfords.com   and click on our tool “Your Home’s value” and you can receive a free analysis right to your email inbox. 

Also we suggest talking to your bank, see what the current rates are, receive a pre-approval and get a quote and they can lock you into an interest rate for the next three months. 

But please note that everyone’s situation is different and unique and there is no correct answer here but always remember the worst case scenario is rarely as bad as you think. 

If you are looking to buy or sell your home, please don’t hesitate to call with any questions or Concerns,

The Axfords,

604-931-8152

HST

It was a long and stressful battle between the Government and the citizens of British Columbia about our new HST taxing system, and it has arrived.  We haven’t noticed much of a change yet in our day to day lives, but we have decided like many of our fellow citizens to start embracing the system and become educated on the rebates and benefits of the new tax system. 

For us our main concern is for our Clients looking to buy new homes.  So specifically in our research we found all of our clients buying new homes are eligible of a rebate totalling 71.43 % of the provincial portion of tax (7%) up to a maximum amount of $26,250.  This will mean all homes purchased for $525,000 or more will receive a rebate of $26,250.  On top of this rebate, the government argues due to removal of the embedded PST system, the additional costs from the PST system will be removed allowing for builders to lower their cost which reduces the price for the end consumer. 

However our clients purchasing pre-owned homes will remain with the same concept of the previous tax system paying 0% HST on a pre-owned home. 

For more information of changes in tax rates we found an easy to read chart you could refer to:

http://www.realtorlink.ca/portal/server.pt/document/3226406/what%27s_taxable_under_the_hst_and_what%27s_not_

The Axfords,

604-931-8152

Going to College Next Semester.

It has come to be that time of year again.  Just as the excitement of summer is building, the start to summer time barbequing and the beginning of our nice bronzed skin it is already time to start thinking about your September living arrangements for school.  You have already made a choice of where you are studying, and it’s a good time to think about where you want to live, so you can beat the August rush. 

Here’s a question that students might ask themselves,

Should I consider buying?

Now in this decade younger generations have gathered more information about their future, thought more about their objectives and are ready to start building on their wealth right from the day they finish secondary school.  Bankers are surprised daily by the amount of young adults starting RRSP’s, investorlines, and wanting a co-signed mortgage.  And as happy as you make the bankers you yourself will be pleased with the end result of wealth building at a young age.   

Some great reasons to buy a condo while you are studying,

• You can help out a friend who needs a place to live, and they can help you by paying some of your  mortgage
• The earlier you start to build wealth the faster it multiples in upcoming years.
• Buying near a thriving college College will always maintain its value because the location, location, location always plays a huge factor in your return investment. 
• You can live in self chosen location, where perhaps the standard of living is higher than in a rental unit. 

In the area of Douglas College (within walking distance) there are to date 25 listings with two bedrooms under $275,000.

With the current interest rates on a 5 year fixed mortgage high ratio (less than 20% down payment) you can realistically obtain a mortgage for $1,100 per month or less.  Plus you get to minus the collected monthly rental payment from your trusty roommate. 

Added costs include your condo fees, unit maintenance, and taxes.  So in any case you perhaps are going to pay more to buy then to rent depending on your rental unit however this will be your beginning to building wealth and investing.   

Some things you should consider:

Can you or a family member afford a 5% or more down payment?

Are you studying long term at Douglas College or just a semester?

Do you plan on staying in the lower mainland for a period of time?

Can you obtain a mortgage, by yourself or with a co-signer?

Before any major investment there is always homework, here are some sites that might help:

To view current listings visit: and click on “Search MLS listing”

http://www.theaxfords.com/

To gather averages for a room rental visit:

http://vancouver.en.craigslist.ca/pml/roo/

To gather more specific mortgage information visit:

http://www.rbcroyalbank.com/services/mortgage2008/mortgages_first_search.html?passBT=1&V_TID=31176&ProspectID=E2D4E6B126E242E597F28D36F7CE595B

For more information we have years of experience helping first time buyers and can be contacted anytime of the day at 604-931-8152.

The Axfords.

HAPPY 143^nd BIRTHDAY CANADA!

Canada Day is one of our favourite days to celebrate.  It brings family and friends together to celebrate what a truly amazing country we live in.  It celebrates culture, arts, our past victories, and our present ones to come.  It is our biggest nationally celebrated holiday involving every single member of our Country because let’s face it who isn’t proud to be Canadian!  This year we will be celebrating our day in Coquitlam, where the festival never seizes to be entertaining.  Coquitlam has a long list of events going on at one of Coquitlam’s finest location of Lafarge Lake and Evergreen Cultural Centre.  The events include different sporting activities at “Adventure Village”, several art activities, multiple art performances with several stages, our favourite “Taste of Coquitlam” event in the Lafarge Dining tent, and the must have finale of fireworks. 

For more information visit the website:

http://www.culturecoquitlam.ca/festival/Canada+Day.htm

Canada Fun Facts:

Canada did not have our own official flag until 1965

The Baseball glove was invented in Canada in 1883

Canada is believed to have the smallest jail in the world in Rodney, Ontario

Canada is the second largest land mass country in the world

Canada has the world's longest coastline: 202,080 km

Canada has more inland waters and lakes than any other country in the world

Canada has one-tenth of the world's forests

Canada's east coast is closer to London than to its own west coast.

As many of you  know, there have been a multitude of changes recently announced by both the Government and the Insurers across different areas that will affect how we do our jobs.

1.  Qualifying Rate Changes:  Starting April 19th all High Ratio Mortgages qualifying for terms less than 5 years and all variable rate mortgages must use the 5 yr benchmark rate.  

Fixed Rate Mortgages and Variable Rate Mortgages: For loans with a fixed rate term of less than 5 years and for all variable rate mortgages, regardless of the term, the qualifying interest rate is the greater of the benchmark rate, and the contract interest rate. For loans with a fixed rate term of 5 years or more, the qualifying interest rate is the contract interest rate.

Mortgages with Multiple Interest Rates (e.g. Multi-Component Mortgages): Each component must be qualified using the applicable criteria defined above.

The "Benchmark rate" is the typical 5-year fixed posted rate of the Big 5 banks.  That is 5.39% currently.

2. Rental/Revenue Property Changes:  Starting April 19th, the max LTV for the purchase, porting or refinance of 1 to 4 unit non-owner occupied investment properties will be 80%.  2nd homes should still be OK, but CMHC will no longer insure 2nd homes with more than one unit.  The borrower or his/her relative must live in the property "at some point during the year" and on a "rent-free" basis.  Lenders must confirm that this will be the borrower's intention. Previously investors were able to finance up to 95%.

3.   Refinance of Owner Occupied Property: Starting April 19, reduced to 90% of the value of the property, down from 95%.

4.  Rental Debt Servicing Changes:  CMHC is changing how rental income is used in a borrower's debt service calculations (TDS formula).  Effective April 19, 50% of the gross rental income from the subject property and other revenue property may be added to the borrower's gross annual income for the purposes of calculating the borrower's TDSR.  An 80% rental offset will no longer be used past April 19th. Keep in mind this applies to CMHC high ratio mortgages only.  Here is an example to highlight the impact of this change:

5.  CMHC BFS (Business for Self) Changes:  The CMHC Self Employed without Traditional Third Party Income is intended for self employed borrowers who cannot confirm income via a 2 year NOA average.  Typically, these are borrowers who are newly self employed (and have 2 years experience in the same line of work) and are the target sector of CMHC's BFS program.   Starting April 9th 2010, the following changes will apply to stated income (BFS) applications with CMHC:                                                                                                                                                                            -for purchase transactions, max LTV is being reduced from 95% to 90%
-for refinance applications, max LTV is being reduced from 90% to 85%
-Borrowers who have been BFS for more than 3 years will no longer be eligible for this program; these borrowers need to income qualify via a 2 yr average
-100% commission borrowers are no longer eligible for this program; these borrowers need to income qualify via a 2 yr average
-if the borrower has other income not related to their business, that income is eligible to be included as longer as it can be substantiated

Mike Blady TMG Mortgages