Archive for the 'Real Estate Definitions' Category
Get Rid of Vancouver Realtor’s Conflict of Interest Once and For All
March 26th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Limited Dual Agency refers to a realtor representing both the Buyer and Seller in a Vancouver real estate transaction.
Unfortunately, not all Realtors fully co-operate, as set out under the MLS code of ethics, particularly when they have an opportunity to make double the commission. In many cases, they give our industry a bad reputation. Read the rest of this entry »
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If you Don’t Pay Your Property Taxes
March 1st, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Delinquent taxpayers are charged a percentage of outstanding taxes. Each municipality’s practices vary.
If your taxes remain unpaid for three years, local governments typically hold a tax sale, a public auction of each parcel of real property on which taxes are delinquent. Check for the date with the local municipality. For Example: City of Vanouver’s tax sale in 2007 was held on November 14th.
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What Does This Mean for Vancouver Pre-sales?
February 28th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Rising construction costs are affecting Developer’s ability to complete pre-sale condo buildings.
A few days ago it was Mount Pleasant’s Sophia, now it’s Chandler Developments (fortunately no relation to me!) H&H and their Garden City Richmond project have gone into receivership. So reports the CBC. Both projects were schedule for completion end of June.
The company was running into cost overruns, they were running out of cash and I think the lenders wanted to complete the project,” said Bowra Group President David Bowra.
“But they weren’t convinced it could be completed without the assistance of a third party. So they decided to apply for a receiver to be appointed.”
The receiver has discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value, Bowra said. So they may get to keep their condos, but will likely have to pay today’s prices. How many developers do you think do this?
Apparently there is enough money to finish the job, so the other buyers will get their condos without paying more.
The company was running into cost overruns, they were running out of cash and I think the lenders wanted to complete the project,” said Bowra Group President David Bowra.
“But they weren’t convinced it could be completed without the assistance of a third party. So they decided to apply for a receiver to be appointed.”
The receiver has discovered that 23 condos in the Chandler Development Group projects were allegedly sold to insiders at prices well below market value, Bowra said.
They may get to keep their condos, but will likely have to pay today’s prices, he said.
The Financial Institutions Commission of B.C. published an article on pre-sales in August 2007. Read it here http://www.yattersmatters.com
What do you think causes this problem? How do you think it can be solved? Does this effect your purchase of a pre-sale? Or an assignment?
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Buying in the U.S.? 3 Things You Should Consider Now
February 28th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Tom Wright is a Business Development Consultant for HIFX in San Francisco and offers excellent exchange rates. He sent me this article for Canadians thinking of buying in the U.S.
PROCRASTINATORS BEWARE
Actually, now could be a great time looking to buy and here’s why. Your payments may actually be less today, even if prices fall further in the future.
Assuming a Canadian buyer who’s looking to buy a Condo in Florida priced at $350,000 in USD today and decided to wait for another 6 months because he heard analysts saying that the US real estate market will likely touch bottom towards the end of 2008.
Now let’s look at the monthly payment if we get some possible moves, including further price drops:
So even though real estate prices may have dropped an additional 10% from today’s levels, the individual Canadian buyer would be required to make monthly payments that are roughly 5% higher than is the case today. Companies, like HiFX, Inc. can assist buyers “lock-in” today’s attractive foreign exchange rates.
Considering buying abroad? Does this change your mind regarding timing?
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Nine Secrets of Vancouver Property Taxes
February 25th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
It’s tax time again and because the property prices have risen, our property taxes also rise. No doubt you have a few questions about your property taxes, so I will answer some of the main ones I get asked by clients.
1. How do municipalities set property taxes? Taxes are set by the municipality according to tax rates. These rates vary among property classifications - residential, business, farm, recreation, utility and managed forest land - and are typically calculated by dividing the annual budget needs of the municipality by the assessment base or the total value of properties in each municipality. The market value of each property is determined annually by BC Assessment, as of July l. The BC Government sets the school tax rates.
2. Why have my taxes increased when I haven’t improved my property? Property values have increased throughout the Greater Vancouver Area. Assessment notices sent to home owners in January reflect this increase. When properties sell for more than the assessed value, this can raise market value since assessors look at comparable sales when valuing a property. As well, another taxing authority such as the school district or transportation authority may have raised rates.
3. All the homes on my street are identical, shy are my taxes more than my neighbours? Ease assessment is unique to a specific property. Renovations such as remodeling basements or attics, adding a jacuzzi tub to the master bathroom or major landscaping project will increase the assessment.
4. Like many baby boomers, I own a second home, how are they assessed? A secondary residence is assessed the same way as a primary residence. The key difference is the Homeowner Grant is only available on your primary residence, not on a secondary residence.
5. If I buy a new home and there are taxes owing, who is responsible? You are!! You are liable for all outstanding taxes when you buy a property, unless otherwise written in the contract. If the previous owner paid the taxes or if you have claimed a Home Owner Grant on another property, you cannot claim the HO-Grant for the property in the year you buy it.
6. I didn’t receive my tax notice. What do I do? Immediately contact the tax office in your municipality. It’s your responsibility to ensure that your municipality has the correct mailing address. you are responsible to pay your taxes, whether or not you receive a tax notice.
7. I’m selling my home, should I claim the HO-Grant? If you haven’t sold your home and you live on the property, you may claim the grant. If you have already sold and new owners live on the property, then the new owners should claim the grant.
8. I want to appeal my taxes, what do I do? Property taxes cannot be appealed. Only property assessments, on which taxes are based, can be appealed. Therefore, it is important to review your assessment notice when you receive it from BC Assessment and report any concerns to them by January 31st.
9. I forgot to claim my Home Owner Grant in previous years and I paid the full amount of taxes. You can claim back your grant only for the prior year. Forms are available at City Hall. You will have to provide proof of residency.
Have a property tax question that’s not covered in my articles? Send it to me and I will try to answer it for you.
Have a property tax situation that you’d like to share with us?
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The Greatest Real Estate Agent in the World
February 23rd, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
This was posted by Ardell DellaLoggia at Brio Realty.
Is it possible to have THE greatest real estate agent in the world? And if so, what would be the Top Ten items that they’d have to meet in order to qualify for The Title?
*Making the most money?
*Doing the best job for their client (defined as percentage of repeat business and referral business). Happy clients translate into repeat and referral business.
*Networking online and building relationships, same as we do offline?
*Innovative marketing? Evidence of always being on the cutting edge? Ongoing education?
*Voted #1 by your piers?
*Voted #1 based on what you give back to your community?
*Voted #1 by the community at large?
*Most knowledgeable about all the homes in your neighbourhood?
*Superior negotiating skills?
*Superior customer service which goes beyond any level that is provided by your piers?
What do you think should be in the Top Ten List? What would you expect from the Greatest Realtor in the World? Who would you nominate and why?
Or is it an impossible task?
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Do You Understand Your Vancouver Property Tax Notice?
February 23rd, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
They arrive every January! In Vancouver the taxes are due by the end of January and June.
1. Owner’s name and address - each owner will receive a notice
2. Folio Number - a unique property identification number
3. Access - a code used to epost tax payments
4. Property Value - Class. BC Assessment’s classification of property. e.g. residential, business, farm
5. Assessed - 2007-2006-2005 BC Assessment’s assessed values of land, buildings and total for the last 3 years
6. Average - 2007 Land Three year average of the assessed land value
7. General School GVTA (Trans-link) Taxable values that the tax rates are applied against for each taxing authority
8. PID - parcel identifier used to cross reference to land Title and BC Assessment
9. School - residential. Funds local schools minus the HOGrant
10. Net School Taxes - Total school taxes after the HOG is deducted
11. BC Assessment - Funds BC Assessment operations
12. Municipal Finance Authority - funds the agency that provides capital financing and other financial services to local governments
13. Regional Districts - Funds shared operations and services such as sewer and water
14. Transportation Authority - Funds Trans-Link and other regional transportation (GVTA)
15. Net Other Taxing Authorities - taxed owing to other taxing authorities
16. City of Vancouver General Levy - The municipal tax
17. Net City Taxes - Municipal tax less the unused Homeowner Grant
18. Total 2007 Taxes - Total minus pre-payments
19. Total Outstanding Taxes - What you own. Column A+no homeowners grant. Column B= basic grant. Column C=additional grant
Have a vancouver property tax question? Contact City Hall http://www.vancouver.ca
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5 Ways to Avoid the Property Purchase Tax
February 20th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
1% of the 1st $200,000 plus 2% of the remaining amount.
This Provincial Tax is due every time a property in B.C. changes hands. Your Conveyancing Lawyer will collect the tax on closing and pay it to the Government.
As a first time buyer, you will be eligible for exemption from the Property Purchase Tax under the following conditions:
- Purchase price is less than $385,000 (full exemption)
- Mortage amount is 70% or greater.
- You have never owned a primary residence anywhere in the world.
- Must be a Canadian Citizen or permanent resident for the past 12 (twelve) months prior to your completion date.
- You must reside in the home for a minimum of 1 (one) year following completion.
this information is deemed to be correct but should not be relied
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Defer Your Vancouver Property Taxes/Vancouver Real Estate
February 19th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Having difficulty paying your property taxes? There’s help for you, if you qualify.
Property owners who turn 55 anytime in 2007 or are older, may be eligible to defer all or part of their property taxes, as per the BC Property Tax Deferment program. until 2007, the age for deferral was 60 years. Currently more than 11,000 British Colombians defer their property taxes. Deferred taxes are eventually deducted from the hom’s value when it is sold.
Interest on deferment accounts is not compounded and is charged at a rate not greater than 2% below the bank prime rate. Based on current rates, this means that a tax bill of $1,500 will cost the home owner $60 a year in interest.
To qualify, a home owner must be: 55 or older, a surviving spouse of an eligible owner and/or a person with a disability and a Canadian citizen or permanent resident under the Immigration Act, who has lived in BC for at least one year before applying.
Home owners must maintain a minimum equity of 25% of the assessed value and a fire insurance policy. You cannot defer utility charges, penalties, interest or user fees.
Have you been in this situation? Did you find other alternatives that we didn’t cover above?
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Tell Your Home’s Secrets
February 14th, 2008 Categories: Real Estate Definitions, Vancouver Real Estate
Half the failures in life arise from pulling in one’s horse as he is leaping…Julius Charles Hare
What do you like most about your home?
When you decide to sell your home, it’s useful to tell your realtor some of the things that attracted you to your home. This will help your realtor point out to potential buyers what is unique about your property. Does it have history attached to it and if so, what is it? Who built the property? Who was the architect? The developer? The structural engineer?
What do you love most about it? What is the one feature you will miss most about it? Is this what made you buy it? What is your favourite place in your home? What small details do you treasure the most? Which window has your favourite view? Why do you like living there?
Share your story with us. What is your home’s favourite feature? Or maybe you bought it because you love the neighbourhood or the street?
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