JUST REDUCED from $499,800 to $474,800 for this 3 bedroom 2 FULL bathroom townhouse in Quilchena Park Estates, West Richmond.  

What makes this home rather special is that it has a ground entry MASTER Bedroom and two more bedrooms upstairs.  A suitable floor plan for those with a teenager or two that what some separation from the parents, or for the person not wanting or able to climb stairs everyday to go to bed.  

1,611 sq.ft. makes for a reasonable size and coupled with being an end unit with 2 private patio areas, one for sun lovers while the other helps provide an escape from the heat, there are more nice features to enjoy such as 

• a wood burning fireplace (for good old fashioned marshmellow toasting on rainy days)
• a storage shed in the carport (a place for your bikes and tools)
• an upstairs landing for use as a den area
• laundry room next to the kitchen's eating area (not a stacking set up squeezed in a closet)
• an eating area for informal and a dining room for more formal meals
• close to public transit, parks, and the west side dyke (taking the dog for a walk is handy)

See this 3 bedroom and 2 bathroom townhome in Quilchena by calling Bill de Mooy today. 

A West Richmond (Quichena Park Estates) townhouse with 3 bedrooms and 2 full bathrooms.  Master on Ground floor.  Have a look at #42-3900 Moresby Drive.  2:00 - 4:00 pm. 

Diane Francis

Taxpayers also victims of ‘hot money’ behind Canada’s condo bubbles

Diane Francis May 4, 2012 – 2:38 PM ET | Last Updated: May 4, 2012 3:01 PM ET

National Post

There are three times more condo high-rises being built in Toronto than in New York City and seven times’ more than in Chicago.

The condo bubbles in Toronto and Vancouver are caused by foreign speculation and are making housing unaffordable and creating financial risk for the country in terms of government-insured mortgages. But there’s another issue of vital concern to taxpayers.

There are three times more condo high-rises being built in Toronto than in New York City and seven times’ more than in Chicago. This boom is not the market at work, but is manipulation by “hot money” from abroad.

“I have come across something that I find astonishing, and which amounts to systemic tax fraud by investors, mostly foreign, on a massive scale,” wrote an investor involved in the industry.

Related

• Diane Francis: Taming Toronto’s housing ‘bubble’ requires ban on foreign buying

• Diane Francis: Foreign control of Canada’s great companies not in national interest

• Toronto housing market still on fire as sales jump in April

• Why Toronto’s overheated housing market is unsustainable

He explained how it works:

1. Foreigners sign an agreement of purchase for a condo unit, or for 50 at a time, and put down a 5% deposit. This buys a right to buy the unit in future at a fixed price. In financial markets, this is known as a derivative.

2. Many developers include in the agreement of purchase the right to “assign” this right to buy at a fixed price. In financial markets, this is called creating a futures market. This assignment of a right to buy at a fixed price turns buyers into speculators (unless they want to move in or rent out the unit) who are set up to flip the units for a profit as prices are pushed upwards.

The Australians were victims of the same shenanigans and shut it down and now Canada must too

3. Some developers, and intermediaries, are in the business of helping speculators flip their rights and pocket a fee for doing so. For instance, Mr. X from Asia pays $15,000 for the right to buy a $300,000 condo, then, when the price of similar units rise to $400,000, he can assign the right, get his deposit back and make the $100,000 difference. There is a frenzy of this speculation going on which makes prices escalate so rights can be bought and resold over and over again before a building is completed.

4. The paperwork for these agreements is kept in-house and my source said one intermediary told him that there are no T-5s issued to the speculator or to the Canada Revenue Agency, something that stock and futures market intermediaries must do so that taxes can be paid on the $100,000 trading profits. Instead, the profits vanish, possibly along with the paperwork, and taxes paid will be by the end user if they buy, rent out the unit and make a capital gain down the road.

“[Condo] brokers tell me I can flip my assignment and pay no tax and there is no paper trail. They say we do it all day long,” said the investor who asked to remain anonymous.

Under CRA rules, foreigners making Canadian-sourced income are fully taxable by the federal and provincial governments. In Ontario or BC, the total tax bill would be 46% or $46,000 in tax for $100,000 profit.

The unpaid taxes could be staggering, said a real estate agent. In Toronto, 20,000 condo units have been sold each year for the past five years. Let’s assume one-quarter were sold to foreign speculators who flipped the assignment and made $100,000 profit without paying taxes. Their Canadian-sourced income would total $500 million a year, and they would owe 46% of that in taxes or $230 million.

Most condo developers may not be involved in this game, but a few – notably developers with Asian and Middle East owners or backers and buildings located in downtown areas – certainly are.

So this is what must happen. As I argued last week, Ottawa must forbid the purchase by foreigners of any residences in Canada as Australia did in 2010 after foreign speculation and tax evasion damaged its housing market.

The Canada Revenue Agency should send in auditors to the lawyers and intermediaries and developers who have the lists of those who signed agreements of purchase. If they did not close on those deals, and the deals sold for more money than the agreements, then auditors must work backwards and assess income taxes.

The Ontario and other securities commissions should get involved because what is happening, if these reports hold true, is that an unregulated financial futures market is being created using and abusing Canadian residential properties as vehicles. Likewise, the federal and provincial government tax collectors should get involved.

If speculators who owe taxes are long gone – many of them are offshore funds that buy out entire buildings then sell units abroad – then the intermediaries and developers should pay the taxes.

This frenzy is forcing prices upwards. Meanwhile, condos in the suburbs often take months to sell because buyers want them as homes, not as convenient money machines to flip.

The investor who described the tax shenanigans took his information to several politicians and called the CRA hotline, but got nowhere. Tax officials said they needed specific names and addresses to investigate, but this is beyond a simple case. This requires a task force to look into this.

A realtor said ordinary foreigners are buying from “funds” that are bundling units in Toronto and promising huge returns.

“Foreigners have been lured into so-called investment products, property units, with promises of high yields,” wrote this real estate professional. “They are often small investors who go to property seminars overseas. Many of these buildings do not allow Canadians to buy these units, obviously because of the tax implications.”

The Australians were victims of the same shenanigans and shut it down and now Canada must too.

A new breed of so-called "micro-lofts," some as small as the size of two parking spaces, are being hailed as a small solution to some of Vancouver's biggest housing problems.

Ranging from 226 to 291 sq. feet, the units, located in the once-condemned Burns Block building on West Hastings Street, are compact and clever living spaces that are the smallest rental units in the country.

Furnished with built-in tables, Murphy bed, flat-screen TV with free cable, and a galley-style washroom, the heritage units rent for around $800 a month. The three-piece bathroom has a showerhead installed directly above the toilet to save space. 

For the full report, see this CTV news video. 

More at Bill de Mooy's www.HomesWithSuites.ca

April 23rd, 2012

HomeGain.com announced today that it has released the results of its nationwide home improvement and home staging survey. Past findings from the survey have been a guide for thousands of home sellers in preparing their homes for sale.HomeGain recently surveyed nearly 500 real estate agents nationwide to determine the top 10 low cost*, do-it-yourself home improvements for people getting their home ready to sell.

“In a buyer’s market, sellers need to dress their homes for success before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain. “The HomeGain results show that do-it-yourself home improvements like cleaning and de-cluttering and lightening and brightening your home are cost effective ways of increasing your chances of selling faster and closing closer to the asking price than homes rushed to the market with no improvements.”

In past surveys, Home Staging and Lightening and Brightening were battling it out for the number two spot on the top 10 list. In the 2011 survey, Lightening and Brightening reclaimed the number two position and held on to it in 2012. Home Staging, however, fell to the number five position.

The options to landscape the yard and repair electrical and/or plumbing stay in the top five, both jumping past Home Staging.

The home improvements with the highest price increases to a home’s resale value continues to be Updating the Kitchen and Bathroom ($3,255 price increase), followed by Repairing Electrical & Plumbing ($3,175 price increase) and Painting the Exterior of the Home ($2,176 price increase).

Download this report from HomeGain.com about the improvements that have the highest return

Featuring a master bedroom at ground level for those wishing to avoid stairs while still having a couple of bedrooms  for guests or older children.  Upstairs there are two bedrooms and a full bathroom.  Lawns and pruning is done for you while you can enjoy some gardening if you wish.  An ample storage shed as part of the carport is handy for bikes and BBQ's.  Two private patios, a wood burning fireplace, an eating area as part of the kitchen all add to the comfort. 1,611 sq.ft. corner unit near transit, schools, park, and west dyke.   Click here for details 42-3900 Moresby Drive

Call Bill de Mooy for viewing appointments or to buy. 604-279-3815.

Marnie wanted to celebrate her birthday with her friends.  So she organized this event and after enjoying a good meal with everyone that attended, I took this brief video for Marnie to remember the event.  

 Peter, Tim, Daisy, Nicole, Allison, Heather, Barbara (Bobbie), Heather, Marnie and Bill

Toronto- Foreign students drive real estate market
Mar 15, 2012

As more people get exposure to Canada as an offshoot of globalization, the overseas investor market will rise, Hlinka said. As an instructor at George Brown College in Toronto, he has seen an explosion in the number of foreign students.

"When their parents come to visit, they get an idea of what real estate costs here, and they can't believe how cheap it is. They want to buy because they think it's a bargain."In addition to China, investors pouring money into real estate are flocking to Canada from the Middle East, Korea, Russia, India and the Philippines as well, said Tony Ma, who owns HomeLife Landmark Realty in Markham.About 65 per cent of Ma's agents are Chinese and the bulk of his business comes from Chinese clients. Most are new immigrants to Canada, but about 20 per cent are foreign investors, including parents overseas who buy on behalf of their children studying in this country.

Fewer than five per cent are pure investors with no ties to Canada, said Ma, a former neurosurgeon who moved to Toronto from Zhengzhou, China, in 1998."Most of our buyers are part of Canadian culture. I don't think they are going to push local Canadian people out of the market. When immigrants come to Canada today, they have money, not like when I came to Canada 20 years ago. I didn't have money."Last year, buoyed by his strong ties to the mainland China market, Ma's agency sold 263 homes priced at more than $1 million, with about 40 per cent of those being all-cash deals with no conditions attached.

Drawn to Canada

Canada's stable government and banking system and the relatively low prices draw investors, he said, pointing out that while condos in downtown Toronto can sell for $800 per square foot, in Beijing, the price is $2,000 per square foot and in Hong Kong it's double that.Moreover, to control prices, the Chinese government allows each family there to bank finance only two properties — one to live in and one to invest in — and buyers must pay 100 per cent cash for anything above the two-property limit, Ma said.

Not only are prices in Canada more affordable, homes and condos are a better value proposition, since they come ready to move into, unlike in China, where buyers get a concrete shell they have to pay to finish, he said."So they see an $8 million house here, they see the quality, they see the finishes and they think it's cheap," Ma said. "They can move in today."

Vancouver tops the list with Chinese investors because of the city's temperate climate and proximity to their homeland, he added. Janet Sinclair of Re/Max Hallmark Realty Ltd. in the Beaches neighbourhood of Toronto, routinely deals with foreign investors."They have driven prices up," she said. "Whenever we launch a new condo downtown we get a number of Hong Kong investors and a lot of people coming over from England. People want to put their money in Canadian real estate because they think it's safe."

Above article from an email received from 

PacWest International Management Inc.
Government and Corporate Consultants
Vancouver-Geneva-New York
Beijing-Shanghai-Guangzhou
25 Years in China

By Referral Only
Since 1985

Country Research
Hotel Development
Business Valuation
Executive Recruitment
Economic Development
Real Estate Consultants
(40 Real Estate Expertise)
Natural Resources & Tourism

International Head Office
250-7580 River Road
Richmond, BC Canada V6X 1X6
James McNaught, MBA, President
Direct 604-779-0028
pacwest@consultant.com

Senior Associates
Douglas Webster, Construction Management
Esther Catherine Yan Xu,BSC,   Dr.Nancy Rajabian,MSC,PHD,ABMP,
Bill de Mooy,B.Com,  Song Zhou,MA,  Mandy Li,MA,  Brenda Russell,Realtor-Victoria,BC

Vancouver's Hastings-Sunrise to adopt the name 'The East Village'

For Vancouverites who have dreamt of living in the Big Apple's East Village, the east end of Hastings Street may now be the next best thing. The commercial district formerly known as Hastings-Sunrise is adopting the same moniker as the historically hip New York neighbourhood.

The East Village is just the latest example of an area being given a new brand reflecting varied commercial interests and changing demographics.

--->Read more about this here.

Keeping Up with Demand 

(click the title for the news article)

TheTyee.ca

"It is quite interesting to hear the discussions about affordability. It is actually a very simple issue. There are only two things that influence price -- supply and demand,"

Blaming it on foreigners is an embarrassment. The three things we need to do to get control of housing prices are supply, supply, supply."

A reader's comment:

The only way to get to affordable housing is to put more units on the land which means building upwards= highrises. The cities appeal internationally has moved the affordable break-point past ground level densification.

http://thetyee.ca/News/2012/03/19/Vancouver-Housing-Demand/index1.html

The Vancouver Sun published an article summarizing the various government programs and incentives that real estate salespeople keep current about.  Dated February 24, 2012, I thought this summary a handy reference guide for my clients and thought best to make it available for easy access by people when needed.  

Look for the handy reference guide on the Top 25 grants and rebates for home buyers and owners here.

I get more than my share of emails from friends and clients and a few of them are truly priceless.  This is a delightful one that makes fun of those moments when we forget what was in our thoughts just a second ago.

I hope you enjoy this as much as I did.  It's a video of a matured gentleman singing to a group of fellow mature ladies and gentlemen. 

Senior Moments

Thanks Ron 

BUYERS' DUE DILIGENCE OBLIGATIONS

There have been a number of recent articles on a seller's obligation to make full and complete disclosure of all issues respecting property offered for sale. What about a buyer's obligation when purchasing property?

Most real estate professionals are familiar with the doctrine of caveat emptor or 'buyer beware.' That maxim holds that a seller has no obligation to disclose patent defects: those discoverable upon a reasonable inspection. However, a seller does have an obligation to disclose latent defects – those not discoverable upon a reasonable inspection – which make the premises dangerous or unfit for habitation. Courts have balanced a seller's duty to disclose certain facts and to avoid misrepresentation with the buyer's duty to protect their own interests.

Characterizing a defect as patent or latent is a question of fact requiring consideration of the defect's nature, its importance to the buyer, and the extent of the inspection and inquiry that would be reasonable in the circumstances to reveal the defect. In determining the applicable standard of care, the court will consider the investigative actions that a reasonably prudent buyer would take in the circumstances. The buyer's level of sophistication is relevant in determining the standard.

Our courts consider that buyers have the primary responsibility for investigating a property they propose to purchase, and a duty to carefully review all information provided to them regarding the property.

Consider the facts in Creswell Investments Inc. v. Pavone1: a sophisticated commercial buyer purchased a commercial strata unit that had a removable mezzanine installed without the necessary building permit. The buyer's offer was non-subject and specified that the mezzanine was included. While the seller had completed a Property Disclosure Statement (PDS), which indicated the seller was aware of alterations or additions done without a required permit and referred to the mezzanine, the buyer did not ask for the PDS and thus it was not provided.

Prior to completion, and at his request, the buyer received authorization from the seller to review the property's city file and received the contact information for the mezzanine manufacturer. The buyer did not follow up in reviewing the file or contacting the manufacturer.

After the sale completed, the buyer discovered the mezzanine did not comply with the building code. The buyer sued the seller for failing to disclose the mezzanine's status. After dismissing the claims for misrepresentation against the seller, the ultimate issue for the court was whether the mezzanine's status constituted a latent defect, which the seller was obliged to disclose, or a patent defect.

The court found that the mezzanine did not comply with the fire safety provisions of the building code and this was a latent defect as the premises were potentially dangerous. However, the court concluded that, as the mezzanine's status could have been discovered by a reasonable investigation by the buyer, the defect was patent.

The court held that a reasonably prudent buyer in the buyer's position would have made enquiries about the property at the time of his offer and made the agreement subject to being satisfied with the results of those enquiries. The court held that at the very least, the buyer should have requested a copy of the PDS. Had those steps been taken, the buyer would have discovered the mezzanine's status.

The decision serves as a reminder that while sellers are obliged to make full and complete disclosure of defects not readily discoverable, making the property dangerous or unfit for habitation, buyers are equally obliged to exercise due diligence in investigating properties they propose to purchase. The standard of inquiry will be that of a reasonably prudent buyer in the circumstances.

Jennifer A. Clee
B.A., LL.B.

1. Creswell Investments Inc. v. Pavone, 2011 B.C.S.C. 1069 (S.C.).

Legally Speaking is published eight times a year by email and quarterly in print by the British Columbia Real Estate Association, and funded in part by The Real Estate Foundation of British Columbia. Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: "Copyright British Columbia Real Estate Association. Reprinted with permission."

Strata-Properties (Townhomes and Condo's)

"What many owners of new homes may not realize is that failure to perform regular maintenance or improperly performed maintenance could limit their home warranty insurance coverage,"

Following good maintenance practices is one of the best ways that homebuyers can protect their investment. Visit www.hpo.bc.ca and check out the HPO's Maintenance Matters bulletin series. 

Non-Strata Properties (Houses)

Homeowners can use the Residential Construction Performance Guide to determine whether a possible construction defect might be covered by home warranty insurance and to better understand how warranty providers may evaluate claims in new homes.

This very cool piece of film  sat in an attic in Australia for over 100 years, and was discovered just a few years ago and restored. It's a film of everyday Vancouver life in 1907, filmed from a trolley car by a filmmaker who died five years later as he filmed the maiden voyage of the Titanic.

The film starts at Georgia Street looking north down Granville, then follows Granville,turns right on Hastings and follows along Hastings.  It skips a bit but turns left to go up Main St.   Hope you enjoy the film.

See the link below. 

http://www.youtube.com/watch?v=vzjRs3ARo0g&feature=youtube_gdata_player

The government today announced the HST/PST transitional rules on new homes.

As the province transitions back to the PST, which will replace the HST effective April 1, 2013, measures to ease the HST burden on new home buyers include:

•The BC New Housing Rebate threshold will increase to $850,000 from $525,000, so that more than 90% of newly built homes will now be eligible for a provincial HST rebate effective April 1, 2012.

•The maximum rebate will increase to $42,500 from $26,250 effective April 1, 2012.

•Buyers of new secondary vacation or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 will now be eligible to claim a provincial grant of up to $42,500 effective April 1, 2012.

•For newly built homes where construction begins before April 1, 2013, but ownership and possession occur after, purchasers will not pay the 7% provincial portion of the HST. Instead, purchasers will pay a temporary, transitional provincial tax of 2% on the full house price.

HST/PST transition rules will help ensure that whenever purchasers buy a new home they will all pay a consistent and equitable amount of tax, whether the home is built:

•entirely under the HST;
•entirely under the PST; or
•partly under HST and partly under the PST.

The temporary housing transition measures will be in place until March 31, 2015. The tax only applies to homes where construction begins before the transition date and ownership and possession occur after.

I'm told videos are where its at.  What do you think?

This is a video I took when I went to view a new listing of a converted heritage house.  Coincedently, I met the two builders of the project.  Click here to see the video stored on YouTube. 

February 15 report from the Canadian Real Estate Association.

Click on the line above for the full report about real estate across Canada, but in a nutshell...

Highlights:

• Home sales were down 4.5% from December to January.
• Actual (not seasonally adjusted) activity came in 4.0% above levels in January 2011, and stood even with the 5 and 10 year averages for January sales.
• The number of newly listed homes edged down 1.4% from December to January.
• With sales down by more than new listings, the national market shifted further into balanced territory.
• The national average home price was up less than 2% year-over-year in January, ranking it among the smallest increases of the past year. 

A number of financial institutions have recently dropped their five-year lending rates to a record low of 2.99 per cent. This is down considerably from the advertised five-year rate of 5.29 per cent when the Bank last met on December 6^th, 2011.