Real Estate Information

Hello Everyone,

Well we have what you have been waiting for....the winner from the colouring contest at Port Moody's annual Golden Spike Days event over the July 1st weekend at Rocky Point Park.

The winner was a lovely girl named Sarah who was picked in the draw from the coloring contest. We would like to thank all that participated in this event and made it the huge success that it was.

We look forward to next year and more coloring contests to come.

When trying to decide whether to buy an older home or a newly constructed one, many questions come to mind. Start by educating yourself and knowing the pros and cons of each.

If you're deciding between buying a new home and buying one that someone else has owned, you need to consider several issues.

In most cases, existing homes have a touch of character with their own charm and details. They are often located in more established neighbourhoods with mature trees and desirable landscaping, and may be closer to city services such as schools, libraries, hospitals, shopping centres and public transportation.

Older homes may come with window coverings and appliances which are often included with the home. If you are lucky, you may still get an updated kitchen and bathrooms if the home has been renovated.

However, existing homes are generally less energy efficient and are typically more costly to heat and cool. They may need updating and require expensive repairs, and sometimes it may be difficult to find or match older building materials.

Newer homes usually have bigger rooms, more built in wardrobes and closets, and more bathrooms. If you are building a new home you can also influence the layout and the finishes within the home as part of the negotiations with the builder or developer.

Whereas with an existing home you will inherit what the previous owner built or remodelled over time. Very rarely will an existing home be built and finished exactly to your liking. Think about how much renovating you'll need to do to an existing home. If you can buy an existing home that's been totally renovated in a great neighbourhood within a good school district this might be a better choice than moving into a newer neighbourhood with an unestablished school district.

On the other side, buying a newly-built home tends to cost more than an existing home, unless you buy outside of the city, where land is cheaper. Of course, you will have to consider the price of gas to get to your job.  And it isn't just about getting to your job. You'll also want to think about how long it will take to get to a grocery store, dry cleaners, your kids' school, your house of worship and other places you get to by car.

With new homes you get warranties and guarantees on appliances that come with the new home. Dangerous building materials, such as lead and asbestos, will likely not be a problem. A new home will meet modern safety and building codes and usually use building materials that offer improved insulation, thereby reducing your heating bill.

New homes though have their own disadvantages. Higher taxes could be required to bring water, gas or electrical services to a still under-populated area. Resale could be difficult if the entire neighbourhood is not yet complete, and you may have to cope with construction noise, dust and mud. New neighbourhoods frequently lack the relaxing appearance of mature trees, and your new subdivision may require costly landscaping.

Happy house hunting!

Compliments of Canada Realty News

We were pleased to be part of Port Moody's annual Golden Spike Days event over the July 1st weekend at Rocky Point Park.

Endless entertainment, a cooperative weather man, loads of activities for families and, of course, the beer garden all contributed to make this event very successful.

At our tent we offered children face painting, a bean bag toss game-including a prize-and our colouring contest.  Stay tuned for the colouring contest draw on July 16 for a basket filled with summer fun activities

!

If you've been considering buying a house but you're still unsure, consider some of the personal and economic conditions that favour home purchases. If you find that a number of these signs ring true for you, it might be time to contact a real estate agent and start shopping.

1. You're Ready to Commit

First and foremost, if you're not ready to commit to owning a home, you should not buy a house. Home ownership comes with a plethora of responsibilities, including home maintenance, property taxes and the process of selling the property when it comes time to move.

Legal fees, moving expenses, and all of the incidental costs associated with buying a home can really add up. To make the most of these costs, it's best to plan on living in your new home for a stretch of time. Consider whether you have a stable job that will provide a solid income for a mortgage, and if there's any chance you'll have to relocate in the near future. If you feel you can commit to sticking with a home for at least five years, then it might be just the right time for you to buy. If you're typically a hardened commitment-phobe, remember that you can sell or rent your property if your situation changes dramatically.

2. Owning Costs Less than Renting

If you've examined your budget and realized that your monthly payments associated with buying a home are less than you're currently paying in rent, it's time to consider a home purchase. Talk to your bank and look at what your mortgage payments would be for a variety of different properties and gauge what you can afford. Factor in any additional costs you may have to pay, such as condominium fees or extra utility bills, and compare your total costs to what you're paying in rent. If it's roughly the same or less, you could be saving money by purchasing a home - plus there's the added benefit that you'll be putting your monthly home expenditures toward your own home equity!

3. Buyer's Market

When demand for housing is low and there's a wealth of properties on the market that aren't moving too fast, that's known as a buyer's market. You'll have a lot more bargaining power under these conditions than if you're buying in a seller's market, which is when demand for homes is high, resulting in few properties on the market that are selling fast. In a buyer's market, chances are you'll be able to negotiate a seller's list price down - sometimes quite substantially - and save yourself a lot of money in the process.

4. Low Interest Rates

When interest rates are low, it's a great time to look at buying a home. You will be able to get a reasonable interest rate on your mortgage loan, which can save you a lot of money in the long run. A home is generally the single largest purchase anyone makes, and the amount of interest tacked onto a mortgage really adds up over the years that you're repaying the loan. Even a difference of a fraction of a percentage point can make a pretty big difference over the long term. Consider a mortgage of $220,000. The difference between a rate of 4.2 per cent and 4.5 per cent results in an extra $13,993 paid toward interest over the course of a 30-year mortgage. That's a lot more than just pocket change.

5. Adequate Funds for A Down Payment

Having a hefty down payment helps in the same way as finding a low interest rate. Ultimately, the less you owe, the less you'll have to repay and the less you'll have to tack on for interest. If you find yourself with a nice lump of cash, putting it toward a home purchase is definitely a solid financial investment. Just think, you'll be building equity in your home which you'll see again when you sell, and you'll have somewhere to live in the meantime. Though it may be tempting to put the money toward a trip, a new car or a luxury shopping spree, the return on investment on these sorts of purchases - at least in the strict financial sense - can be rather disappointing.

6. Seasonal

During the springtime, more house listings tend to come on the market. With the poor winter weather over and the kids nearly done school for another year, this seems to be the time when most people are willing to take on a move. Having more homes on the market means a wider selection - and a greater ability to negotiate price. However, this is also the time of year when more buyers are in the market. Circumstances will depend on your particular market conditions, but the arrival of spring typically revives the real estate market after quieter winters. Alternatively, if you're willing to move during the winter months, sometimes owners of homes that have been sitting on the market for a long time are more willing to negotiate.

The Bottom Line

Occasionally, timing the buying or selling of your home may not be within your control, however, if you do have the opportunity to choose when you enter the market, doing it at the right time can save you a lot of money. Always remember that buying a home is a big commitment, so at the very minimum, you should never purchase a home without being completely sure that you're ready to take on the responsibility. If you're ready to commit and you find yourself with a number of other favorable factors like a low interest rate and a good sum of money you can put toward a down payment, then it's probably a great time to take the plunge!

Janet Fowler

Investopedia.com

Referenced by Michael Hallett
Mortgage Consultant
Dominion Lending Centers
604-616-2266

1. Of course I look familiar. I was here just last week cleaning your gutters, painting your soffets, or delivering your new appliances.

2. Thanks for letting me use the facilities when I was working in your yard last week. While I was in there, I unlocked the back window to make my return a little easier.

3. Nice flowers. You have taste … and taste means there are nice things inside. Those yard toys your kids leave out always make me wonder what type of gaming system they have.

4. Newspapers  piled up on the driveway, always a good sign.  I should leave a pizza flyer in your front door to see how long it takes you to remove it.

5. If it snows while you’re out of town, have someone walk around in the snow or pull a car in the driveway and drive out. Unblemished drifts in the driveway are a dead giveaway.

6. If decorative glass is part of your front entrance, don’t let your alarm company install the control pad where I can see if it’s set. That makes it too easy.

7. A good security company arms the window over the sink as well as the windows on the upper floors, which often access the master bedroom — and your jewelry. It’s a good idea to put motion detectors up there too.

8. It’s raining, you’re fumbling with your umbrella, and you forget to lock your door — understandable. But understand this: I don’t take a day off because of bad weather.

9. I always knock first. If you answer, I’ll ask for directions somewhere or offer to clean your gutters. (Don’t take me up on it.)

10. I will look in your sock drawer? I check dresser drawers, the bedside table, and the medicine cabinet for things that you thought were hidden.

11. I almost never go into kids’ rooms.

 Not much in there of interest.

12. I won’t have enough time to break into that safe where you keep your valuables. But if it’s not bolted down, I’ll take it with me.

13. A loud TV or radio can be a better deterrent than the best alarm system. If you’re reluctant to leave your TV on while you’re out of town, you can buy a $35 device that works on a timer and simulates the flickering glow of a real television.

Norris and Company

Come and join us in celebration of Canada Day at Rocky Point Park!  The venue will come alive this weekend celebrating the 125th anniversary of the arrival of the first trans-Canada passenger train in Port Moody which was the western terminus.  This celebration is the largest community event and runs July 1 - July 3.  It's great family fun with loads of entertainment, food (including free Canada Day cake everyday), and of course renouned Can Can Dancers.

Admission is by donation and includes all the concerts and there free parking during the event is available at Port Moody Rec Centre, Inlet Park, the West Coast Express station, Moody Elementary and Kyle Centre. Or, of course, you could walk, cycle or take transit.

Stop by our tent for kids games and face painting, or find out the value of your home on site.

We look forward to seeing you.  Happy Canada Day!

"Bank of Canada maintains overnight rate target at 1 per cent
OTTAWA, May 31, 2011 /CNW/ - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
The global economic recovery is proceeding broadly as expected in the Bank's April Monetary Policy Report (MPR). The U.S. economy continues to grow at a modest pace, limited by the consolidation of household balance sheets. Growth in Europe is maintaining momentum, although the risks related to peripheral economies have increased. The disasters that struck Japan in March are severely affecting its economic activity and causing temporary supply chain disruptions in advanced economies. Commodity prices have declined recently but are expected to remain at elevated levels, supported by tight global supply and very strong demand from emerging markets. These high prices, combined with persistent excess demand conditions in major emerging-market economies, are contributing to broader global inflationary pressures.  Despite the challenges that weigh on the global outlook, financial conditions remain very stimulative.
In Canada, the economic expansion is proceeding largely as expected in the April MPR. The economy grew at an annual rate of 3.9 per cent in the first quarter, reflecting continued strong business investment, smaller contributions from household and government spending, and a modest drag from net exports. Although temporary supply chain disruptions are expected to restrain growth sharply in the current quarter, this is expected to be unwound in subsequent quarters.
While underlying inflation is relatively subdued, the Bank expects that high energy prices and changes in provincial indirect taxes will keep total CPI inflation above 3 per cent in the short term. Total CPI inflation is expected to converge with core inflation at 2 per cent by the middle of 2012 as excess supply in the economy is gradually absorbed, labour compensation growth stays modest, productivity recovers and inflation expectations remain well-anchored.
The possibility of greater momentum in household borrowing and spending in Canada represents an upside risk to inflation. On the other hand, the persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.
Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. To the extent that the expansion continues and the current material excess supply in the economy is gradually absorbed, some of the considerable monetary policy stimulus currently in place will be eventually withdrawn, consistent with achieving the 2 per cent inflation target. Such reduction would need to be carefully considered."

http://www.newswire.ca/en/releases/archive/May2011/31/c9084.html

Benjamin Tal is one of Canada’s most quoted domestic economists. In speaking to an audience at Dominion Lending Centre’s recent National Conference Tal outlined what interest rates may take the slow road higher.

Echoing words from the U.S. Federal Reserve, Tal said we’re in an “unusually uncertain market.” Canadian and U.S. central bankers would be the “first to admit” they don’t know what to do.

When policy makers don’t know what to do, says Tal, they tend to be “very conservative." That is essential because:

Trillions of dollars in economic output are riding on interest rate policy

Past recessions have frequently been caused by “monetary policy error.”

Complicating things is the fact that we’re in the midst of what could become an oil shock. Every oil shock of the last 40 years has ended in recession, stated Tal. If history is any guide, this raises the odds of economic weakness next year.

Tal summed up by saying that deleveraging consumers, tapped-out government budgets, and a double-dipping U.S. housing market all reinforce the slowdown theory. He indicated there is nothing to suggest that persistent inflation is waiting nearby in the wings.

For these reasons, Tal expects no U.S. economic recovery for at least a year. He says the most important indicator the Fed is watching is the relatively lifeless U.S labour market.

“The Fed is not even dreaming of raising rates in the next 12 months,” Tal told the audience.

As for the Bank of Canada it has no desire to derail our U.S.-linked recovery in the absence of troublesome core inflation. It will therefore limit Canada's rate increases, he says, at least until the Fed starts tightening.

Written By Frank Fik

Dominion Lending.

250-837-7804

Re-Roofing?  Let’s look at some options:

• Asphalt and Fibreglass Shingles

These are the most widely used Shingle to re-roof because they are relatively inexpensive and easier to install than other shingles.  You will find the material light in weight, and have the highest fire rating of all of the roofs (that we are comparing anyways), protecting the roof from the spread of flames.  They require maintenance but not extensive. 

• Synthetic Plastic and Rubber based Shakes and Slates

These Shakes are among the top rated environmentally of all the roofs, light in weight, and easy to cut, 50 yr warranty in some cases, and minimal repairs needed make this choice over the long run more cost effective.  Growing in popularity. 

• Metal Roofing

Best from all the comparables at sealing out water, strong against wind.  Do not mold or rot. Considerably lighter than other materials.  Price per sq foot in most cases is the highest from the other options.  One big bonus is if you live somewhere with high precipitation in the winter months if you have a big enough slope to your roof, you will eliminate the need to shovel the roof in the winter. 

• Cedar Shingles and Cedar Shakes

Aesthetically pleasing, more so than other options in some opinions.  Cedar Shakes are the highest on the list of being subject to fire so the shakes need to be treated with a fire retardant.  Require bi-annual or annual maintenance.  You will find this type of shake in higher end homes. 

LOOK BEYOND THE RATE

It’s easy to get caught up in the idea that comparing mortgage rates will guarantee you get the best bang for your mortgage buck. While this may be true for particular situations, there are many scenarios where this strategy is not effective. Following are three reasons why it doesn’t always pay to make a decision based solely on rates.

Reason #1

Your long-term plan and risk tolerance should determine which mortgage product is right for you. This product may or may not have the lowest rate.

For instance, there are cases where lenders will offer lower rates for insured mortgages. With insured mortgages, however, you’re charged an insurance premium, which is usually added to the mortgage amount. But if you’re not planning on keeping the property for a long enough time to offset that cost, it may be better to take an uninsured mortgage with a slightly higher rate. The cost difference you will pay with the higher interest rate may still be less than what you may pay in insurance premiums.

As another example, if you prefer to budget for a consistent payment and can’t handle rate fluctuations, it may be better to go with a higher fixed-rate mortgage. If you think current rates are low enough and you will be living in your property for at least five years, it may be wise to also opt for a mortgage with a longer term.

Reason #2

One of the biggest mistakes people make when merely comparing mortgage rates is failing to consider important factors such as prepayment options to help pay off the mortgage faster, whether secondary financing options are allowed, early payout penalties, or what fees are involved.

It’s not enough to simply compare mortgage rates because you have to know what “clauses” are contained within the mortgage deal. There may be cases where you will find a lender with the lowest rate and willing to pay for your closing costs, or even provide you with cash-backs after closing.

Reason #3

Lenders can change their rates at any time. As such, if you’re shopping for rates with one lender and then approach another that gives you a lower rate, it’s quite possible that the first lender has also dropped its rates. This is why it’s important to get pre-approved with a lender once you a mortgage that fits your needs. In some cases, you can secure your rate and conditions for up to 120 days.

For any mortgage related questions or inquiries, please contact Michael Hallett, Dominion Lending Centres at 604 616 2266, mhallett@dominionlending.ca or twitter.com/mortgagesinbc – business hours, evenings, weekends and social media 24/7 - not just bank hours!

DREAM TODAY. OWN TOMORROW.