Lakeview Heights, West Kelowna  -  3408 Merlot Way, 3,572 sq. ft., 5 bath, 5 bdrm 2 story "Grade Level Entry".  MLS® $768,000

Deluxe Custom Built Lakeview Heights Home! 5 Bdrms (3 w/own ensuites), 5 Bths, 3,572 sq.ft, distressed maple hardwood floors throughout main, large master bedroom w/private balcony, jetted tub & steam shower. Main floor has living room, plus separate family room w/gas fireplace. Basement w/separate entrance, easily suitable. Triple tandem garage with workshop, plus 50 ft. RV pad. A great home for extended family or older children! Lots of space & bathrooms for everyone.

Property information

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

Thanks to Rod Gibbings, Investors Group.

If you waited until now, is it too late?
For investors sitting on the sidelines, there’s good news

Global stock markets have surged dramatically since their lows in early 2009, with economic indicators improving and pointing to recovery. The question is, is it too late to get back in?

The answer is no. Are there perhaps better times than others to get in the markets? Probably. But if you’re trying to time your re-entry, according to Meir Statman, a professor of finance at Santa Clara University, frankly, as investors, we’re just not that good at it.

Statman says that as investors, typically, we make the mistake of investing at the wrong time. He highlighted that costly error in a Wall Street Journal article earlier this year, The Mistakes We Make – and Why We Make Them (August 24, 2009). He points to the fact that history appears to be repeating itself.

“February 2000 was a time of exuberance, and 78% of investors agreed that ‘now is a good time to invest,’ “ Statman wrote. The Toronto stock exchange peaked in February 2000, up 44% and then proceeded to lose ground in 2001 and 2002. “March 2003 was a time of fear, with markets off by 19%, and only 41% agreed that ‘now is a good time to invest’. It turned out to be a great time to invest. I would guess that few investors thought that March 2009, another time of great fear, was a good time to invest. So far, so wrong.” The S&P/TSX composite index was up more than 35% for the year (see fig. 1), in direct contrast to 2008 which was at the opposite end of the spectrum with greater than negative 30% returns.

Taking a look back

In March 2009, Canada’s equity markets sank to their lowest levels in five years, followed by a huge rebound of more than 50%. Wall Street fell to its lowest point in 12 years before rebounding more than 60%. The pattern repeated itself around the world.

But for many investors, the ride was one way only. They left the roller coaster during its gut-wrenching plunge, crystallized their losses, and then had no exposure to the recovery. Unfortunately, full of fear and anxiety, many investors exited the markets at one of the worst possible times to do so. It is very much human nature to extrapolate current events to the future, that is, to assume that things will continue along the same path they are currently on. A down market will stay down, an up market will continue rising. As investors, although it is in our nature to fear crises, by embracing them we can benefit from the opportunities they create.

Success is found not by trying to time market entry and exit points but rather by maintaining a long-term perspective and keeping an eye on the big picture.

History provides us with some good insights about the general nature and scope of markets and economies and how they move in cycles. The business or economic cycle is typically characterized by a series of stages that include: growth, decline, recession, and recovery. These stages basically reflect changes in the rate of economic activity as measured by key indicators like employment, prices, and production. Cycles are recurrent though they vary in frequency, magnitude and duration.

However, looking back, periods of economic expansion have seldom been short. In fact, according to the National Bureau of Economic Research (NBER) economic recoveries following on the heels of recessions have an average duration of close to 5 years. Post-1960, periods of economic expansion are even longer, at close to 6 years. (see fig. 2)

Further, a look back at over 80 years of data show that the average bear market lasted an average of 21 months with an average decline of -39% while the average bull market lasted an average of 51 months with an average increase of 151% -- so bull markets are not only stronger, but they last longer too.

In the words of Benjamin Graham – author of The Intelligent Investor, “In the short run, the market is a voting machine, but in the long run it is a weighing machine.” That is, in the short-term, there is a lot of emotional trading (the voting machine) that is reflected in the day to day price valuations of companies, but that in the long-term, it reflects value creation (the weighing machine).

What the stock market saw

As a leading indicator, the stock market focuses on what’s in front of it, not behind it, and saw the economy was not in as bad shape as was being reported, that capitalism was not in fact failing, and began its ascent. Interestingly, while the moves down were primarily emotional, the comeback has been largely built on fundamentals.

The principle that stock markets rise over the long term is still alive and well. It might have appeared briefly ill with the steepness of declines witnessed during the market downturn, but it’s been quickly nursed back to health by a powerful stock rally and improving economic fundamentals— and unless they get back into the market, investors can’t take advantage of the higher long-term potential offered by equities.

Some market watchers believe a resumption of corporate earnings growth, combined with a return of cash from the sidelines could be major catalysts for a continued stock market advance. They also point to other trends that could prove positive for equities. Key among them is an economic recovery, which is always good for share prices. Plus, there are market sectors that are now coming into their own after lagging in the returns race. Among them, growth stocks that are taking the leadership role from smaller-capitalization and mid-cap stocks that until recently dominated the market upswing.

This recession and attendant recovery have been consistent with past economic cycles. Leading indicators pointed to the end of the recession and the beginning of the recovery as in previous cycles. Sectors have been performing in keeping with the classic sector rotation model —with early cyclical sectors like technology, consumer discretionary, and financials outperforming coming off market lows.

But for sidelined investors, it’s not so much about where markets are likely to go or which sectors are likely to win. It’s still about psychology. And about fear.

The painful stock market tumble from mid-2008 through early 2009 severely altered the risk tolerance of many investors. Many remain extremely risk averse even in the wake of subsequent gains. They dwell on fears of another market downturn while succumbing to the risk of being out of the market during its better days.

What’s an investor to do?

So how can a worried, frightened investor get over the perhaps-irrational risk aversion that could be keeping him or her from reaping decent long-term returns from the stock market?

The key is understanding behaviour and how your own psychology can affect your investment decisions. Are you out of the market because you have a well-founded and well-researched belief the immediate future is gloomy, or because you’re anxious? Is your current investment position rational or emotional? Are you driven by logic or frozen by fear?

·       Consider re-entering the market slowly. Invest a bit at a time through an automatic plan and dollar cost-averaging. This means you can take advantage of the current growth in the markets but offset some of the risks by controlling your exposure.

·       Ensure your portfolio continues to meet your needs by aptly capturing your risk tolerance. Keep your portfolio balanced and you increase your opportunity for investment success, and at the same time smooth out the emotions of investing.

·       Think long-term. Remember, focusing in on the day-to-day machinations of the market won’t get you where you want to go. Keep your eye on the horizon and don’t lose sight of your long-term goals. This is where the value of a well-constructed financial plan comes into the picture.

Because we’re inundated with information on a daily, even hourly basis, it’s easy to get caught up in the short term and forget that there is equilibrium in the equity markets. Over the longer term, investment performance tends to revert to the mean. As an example, since 1947, the average 30-year rolling return of the S&P/TSX is in excess of 10% compounded annually. So the long-term stock market advance never ends, it is only interrupted.

Five positive trends

Economic recoveries are always good for stock markets and for those investors looking to get back in – here are some trends worth considering:

·       Earnings. Company earnings continue to exceed expectations, boding well for ongoing profitability and stock market returns.

·       Company expansions. Data show that companies are expanding at their fastest pace in almost four years, signalling the economic recovery will continue in 2010. The ISM business barometer rose to 60, its highest level since January 2006. (Readings above 50 signal expansion).

·       Manufacturing moving into recovery. Inventories are being rebuilt, which means product is moving and exports are also looking strong.

·       Consumer confidence. The consumer confidence index is up, and has risen for two consecutive months, pointing to potential strength for retail sales.

·       Interest rates. Low interest rates remain a key component of current monetary policy that will continue to provide a support for consumers and consumer spending.

Rod Gibbings, Senior Financial Consultant
Investors Group Financial Services Inc.
Region Office #4
Landmark IV #100 - 1628 Dickson Ave., Kelowna BC
Ph (250) 762-3329 ext 377 Fax (250) 868-9332

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

Thanks to Spagnuolo & Company Real Estate Lawyers for the following information

:

THE NEW HST TAX & HOW IT APPLIES TO RESIDENTIAL REAL ESTATE

GENERAL DISCUSSION
On July 23, 2009, British Columbia announced its plans to implement a Harmonized Sales Tax (“H.S.T.”) for B.C. effective July 1, 2010. The H.S.T. is a combination of the 7% Provincial Sales Tax (“P.S.T.”) with the 5% federal Goods and Services Tax (“G.S.T.”) for a single sales tax rate of 12%.

For consumers, goods and services (with some exceptions) will be subject to the H.S.T. in the same manner as they are currently subject to GST. This applies to real estate as well.

For both used and new homes, there are some extra costs for buyers or sellers but these are for the services required to buy or sell, not on the price of the home.

Buyers of used residential real estate can expect to pay H.S.T. on items such as home inspectors, appraisals and other such services. Lawyer fees will not change as they have been forced to charge P.S.T. for years.

Sellers of used residential real estate can expect to pay H.S.T. on realtor commissions, and any other services they may use (we can’t think of any).

H.S.T. has different implications for used residential real estate and new residential real estate. There are also different rules for commercial properties, mobile homes and other types of real estate. Below is an explanation of each situation.

USED RESIDENTIAL REAL ESTATE
There is no H.S.T. on the price of used residential real estate, much like the current rules regarding G.S.T. There are no extra closing costs on the purchase or sale of a used residential house, subject to the comments above.

NEW HOUSING
Here is where the costs will increase.

H.S.T. will be payable on the sale of new or substantially renovated homes, where the Contract of Purchase and Sale was entered into after November 18, 2009 and both ownership and possession of the home is transferred after June, 2010. H.S.T. will not be payable on sales of newly constructed or substantially renovated homes where ownership or possession of the home is transferred before July 2010, or where the Contract of Purchase and Sale is dated prior to November 18, 2009.

New Housing Rebate
The Provincial Government is proposing a New Housing Rebate (“the Rebate”) to ensure that purchasers of homes priced up to $525,000 would pay no more tax, on average, than under the current P.S.T.

The Rebate is 71.43% of the provincial component of the H.S.T. paid, up to a maximum of $26,250.00.

To illustrate this, let’s assume a purchaser is purchasing a new home for $500,000.00.

Note that in the above example the purchaser is paying about $10,000 more with the H.S.T. This is approximately 2% more than under the current G.S.T.

The government states that while sales of new homes in B.C. are not directly subject to the P.S.T., building materials used in the construction of homes are subject to the 7% P.S.T. The total amount of P.S.T., on average, embedded in the selling price of a new home is estimated to be equal to two percent. As a result, the government claims that purchasers of homes priced up to $525,000 would pay no more tax, on average, than under the current P.S.T. This of course assumes that the price of homes drop 2% due to the elimination of P.S.T. on building supplies.

Note also that the maximum rebate is $26,250.00. This means that the extra tax will increase dramatically for homes over $525,000.00. Consider the following example for a home priced at $900,000.00.

Using the above example, the purchaser of a new home priced at $900,000 will pay an additional $36,750.00 with the imposition of the H.S.T.

The new housing rebates would be federally administered in a manner similar to the G.S.T. rebates for new housing. Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency. However, in the case of homes sold by the builder, similar to the G.S.T. new housing rebates, the builder would have the option of paying or crediting the new housing rebate to the purchaser at the time of purchase.

Other rebates
New housing rebates would be available for the provincial component of the H.S.T. paid for all types of housing eligible for G.S.T. new housing rebates. This includes rebates for the following:

New housing rebate – for purchasers of new houses together with leased land
New housing rebate – for purchasers of new mobile homes and floating homes
New housing rebate – for houses acquired through the purchase of qualifying shares in a housing co-op
New housing rebate – for owner-built homes
New rental housing rebates

Rather than retyping the government announcement on these rebates, please visit http://www.rev.gov.bc.ca/documents_library/shared_documents/HST/new-housing-rebates.pdf. This has complete details on all of the above rebates. It also has information on rentals of new homes by builder-landlords and purchaser-landlords, as well as transitional rebates for partially constructed homes.

We have been unable to find information related to the change in use of properties (primarily short term rental property).

The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice regarding your own situation.

Copyright © 2005 by Spagnuolo & Company Real Estate Lawyers. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.

http://www.bcrealestatelawyers.com/faqs/harmonizedtax.htm

Rutland North, Rutland  -  Announcing a price reduction on #130 - 914 Craig Road, a 1,702 sq. ft., 4 bath, 4 bdrm townhouse "2 Story with finished basement". Now MLS® $329,900 - DRASTICALLY REDUCED AGAIN.

Property information

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

For immediate release

Vancouver, BC – February 11, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 118 per cent to 4,619 units in January compared to the same month last year. On a seasonally adjusted basis, MLS® residential sales in the province declined 16 per cent last month compared to December 2009.

“Home sales in the province eased in January as a result of waning pent-up demand and eroded affordability,” said Cameron Muir, BCREA Chief Economist. “While low mortgage interest rates will continue to entice many home buyers through the spring market, consumer demand is expected to moderate from its frenetic year-end pace."

The BC residential sales dollar volume increased 160 per cent to $2.27 billion in January compared to the same period last year. The average MLS® residential price climbed 19 per cent to $491,571 over the same period.

"Upward pressure on home prices, particularly in Victoria, Vancouver and the Fraser Valley, is beginning to slow as fewer home sales and a larger inventory reduce the chance of multiple offers,” added Muir.

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For more information, please contact: 

BCREA represents 12 member real estate boards and their approximately 17,500 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and Continuing Professional Education (cpe).

To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports growth that encourages economic vitality, provides housing opportunities, respects the environment and builds communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.

To change your email address or subscribe to more BCREA publications, click here.

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

February 5, 2010 

LESS LISTINGS ~ MORE SALES!  January 2010 stats are out and I am pleased to report that 2010 Kelowna real estate sales has started the year off with a BANG! 

Of course it's not hard to believe that we are up over last year (January 2009), since we were hard in the middle of a recession at that time.  
Nevertheless, January 2010 has started out as another record month here in Kelowna and the Okanagan!

Total Units Sold were 252, up +123%, and Sales Volume up +157%, vs. last YTD.  The number of Active Listings dropped -11.36% to only 4,120 active listings.  Good news for those trying to sell their homes as they will get more exposure!

For those that bought last year (during the recession) you will be pleased to know that our Average Single Family Home Prices have already risen nearly +18% from last year and are now up to $484,065 for January 2010!   The Median SF home is now $441,500 up nearly +12% vs. last YTD.

Condos over supply is still causing prices in that market to drop.  Condo prices dropped nearly -5% January 2010 vs. last YTD.  While condo sales are up vs. last year, the over supply has caused lower prices.  Currently there is an alarming 922 condos for sale in Kelowna!

Townhomes sales showed steady growth as the demand for townhouses increases again, especially as the SF home price increases.  Average price for a townhome is now $373,785, up +3.59% vs. last YTD.  

If you are thinking of selling your home, now is still a great time!  Your home will get more exposure now as there are less listings out there.  Buyers who are looking now tend to be more serious, rather than just shopping around.  As Spring gets closer the market will again get flooded with new listings.

If you are thinking of buying, they are predicting mortgage rates to increase sometime before the summer.  Don't wait too long!

Also, if you are thinking of buying a NEW home remember that the HST (+12% tax) will kick in July 1st, 2010.  A great incentive to get started on that new building project now!

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

For immediate release

Vancouver, BC – January 12, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 132 per cent to 5,703 units in December compared to the same month last year. More homes were sold last month than in any December on record except 1989 when 6,014 units were sold.  

“2009 came in like a lamb and went out like a lion,” said Cameron Muir, BCREA Chief Economist. “The year began with home sales trending at a 25-year low and ended at a 20-year high. Low mortgage interest rates, pent-up demand and improving economic conditions were key drivers of consumer demand."

A total of 85,028 residential units were sold through the MLS® in 2009, up 23 per cent from 68,923 units in 2008. The residential sales dollar volume increased 26 per cent to $39.6 billion last year, while the average MLS® residential price increased 2 per cent to $465,725.

"Considerable momentum in the housing market is expected to carry through the first quarter of 2010, before home sales begin to moderate as a result of eroding affordability and less pent-up demand,” added Muir.

JUST LISTED!

Glenmore, Kelowna  -  We invite everyone to visit our open house at 1438 Lombardy Square on Saturday February 6th and Sunday February 7th from 1:00 PM to 3:00 PM daily.

This unique 1960's immaculate 3 Bdrm, 2 Bth home has retro appeal, large private yard and garden, full basement with suite potential and is move-in ready!

Come take a look this weekend.

Property information

Rutland North, Rutland  -  We invite everyone to visit our open house at #130 - 914 Craig Road on January 30 from 1:00 PM to 3:00 PM.

Property information

• 1,702 sq. ft., 4 bath, 4 bdrm townhouse "2 Story with basement" - MLS® $349,000 - JUST LISTED !!

Rutland North, Rutland

Property information

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

For immediate release

November Home Sales Continue at Torrid Pace

Vancouver, BC – December 9, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 165 per cent to 7,182 units in November compared to the same month last year. Last month posted the highest number of MLS® residential sales for the month of November since 2005, when 7,721 units changed hands. Triple-digit gains in province-wide unit sales reflect a low number of unit sales in November 2008.  

“BC home sales remained at an elevated level in November,” said Cameron Muir, BCREA Chief Economist. “Low mortgage interest rates, pent-up demand and strong consumer confidence continue to be key drivers in the market."

The torrid pace of home sales in the Fraser Valley, Vancouver and Victoria has propelled the provincial total to near record levels. However, consumer demand in these markets is expected to moderate in the new year as pent-up demand is largely expended and higher home prices erode affordability.

Year-to-date, MLS® residential sales dollar volume increased 21 per cent to $36.8 billion over the same period last year. A total of 79,325 units were sold in the first eleven months of 2009, up 19 per cent from 2008, while the average MLS® price increased 2 per cent to $463,555.

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For more information, please contact: 

BCREA represents 12 member real estate boards and their approximately 17,500 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports growth that encourages economic vitality, provides housing opportunities, respects the environment and builds communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

Strata lot ownership is “having title to real property combining fee simple interest or leasehold interest in a strata lot, with an undivided interest in the common property and common assets of a strata corporation with other owners as tenants in common”.  The term “strata lot” does not refer to any particular type of structure, but is a legal arrangement in the form of ownership. 

Strata lot may be apartments, townhomes, retail, commercial and industrial units or parking stalls.

The boundaries of your strata lot are shown on the strata plan and consists of the area within your unit from the mid way point of the common walls inwards.  In addition, the strata plan may have allocated you the exclusive use of some defined common property such as a patio, balcony, locker space or parking stall.  This is referred to as limited common property.  If not defined on the strata plan, parking stalls, lockers and other areas can be assigned to a specific strata lot by the Council.  Common property is all areas within the strata plan, which are not included within any strata lot.

The term “unit entitlement” indicates the proportionate share that each owner has in the common property, facilities and assets of the Strata Corporation.  This is the basis for the calculation of each owner’s contribution to the operating fund and the contingency reserve fund of the Strata Corporation, which are referred to as strata fees.  The unit entitlement for each strata lot is shown on the registered strata plan, which may differ from the Disclosure Statement.

All Strata Corporations are governed by the Strata Property Act which includes the bylaws which govern their affairs.  These bylaws are contained within the Standard Bylaws of the Strata Property Act and any amendments to these will be included in your Disclosure Statement.  All bylaws can be further amended at the owners’ discretion.  Bylaws provide for the control, management, maintenance, use and enjoyment of the strata lots, common property and common assets of the strata corporation.  Rules provide for the use, safety and condition of the common property and common assets of the strata corporation and can be established by the Council.

Thanks to Robert Zivkovic, (APM) for the above.

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

Owning a Home Vs. Renting 

If you’ve recently decided to make the transition from renter to homeowner, you are about to make an important investment in your long-term financial wellbeing.  Still on the fence?  Consider the following benefits.  Owning your own home can allow you to:  

Build equity 
When you purchase your own home and make mortgage payments, you accumulate equity in the property.  You may borrow against this equity or convert it into cash when you eventually sell your property.   

Stabilize housing costs 
While rent typically increases from year to year, with fixed-rate and some variable-rate mortgages your payments remain unchanged throughout the term of the financing.  The impact of inflation over the years means you pay the same amount, but in devalued dollars. 

The opportunity to profit from appreciation 
Housing has historically increased in value over time.  At the same time as you build equity by making mortgage payments, what you can get when you sell your home may increase over the long term. 

Enjoy tax benefits 
Homeowners can enjoy tax benefits not available to renters.  Portions of the interest paid on your mortgage may be tax deductible, and capital gains when you sell your home are in most cases tax exempt – your Invis mortgage professional can provide you with more information and guidance.

Ultimately, buying a home isn’t only about money.  Home ownership makes it easier to put down roots in your community, and can give you a new sense of pride in your surroundings.  You have full freedom to renovate your space to fit neatly with your family’s lifestyle. 

 Thanks to Mark Clifton with Invis Mortgages for this article! 

By Jaime Briggs, REALTOR® www.BriggsOnHomes.com

“We heard the concerns from consumers and industry about how the HST might affect

home buyers, and this increase will move the threshold to above the average new home price in

the province. At $26,250, this provides the highest maximum provincial rebate in Canada,” said

Hansen. “A similar rebate will also support the construction or substantial renovation of

affordable rental housing.”

For more information on government services or to subscribe to the Province’s news feeds using

RSS, visit the Province’s website at www.gov.bc.ca.