The home buyers’ tax credit provides a $5000 non-refundable income tax credit on a qualifying home bought after January 27, 2009. This is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5000. This works out to be a tax relief of up to $750. This is a one-time credit only in the tax year you purchase your home.

First -time home buyers  can now withdraw up to $25,000 per person from their RRSP, in order to purchase or build a home after January 27, 2009.
For more information, go to www.cra.gc.ca.

All property owners are taxed annually based on the assessed values as determined by the BC Assessment Authority. The assessments are based on the market value of the real estate as of July 1st of the previous year.
The appraisers look at recent sales of similar properties, applying similar standard units of comparison: location, size and age.
They get their information from places like the Land Titles Office and Real Estate Transactions. The prices will go up or down, based on market conditions for the area. The only difference will be if there has been a substantial change in your home.
BC assessments are mailed out the first week of January, and you have until January 31st to send in your written appeal. There is no fee to file an appeal.

If you want to compare your home to your neighbor’s assessment, go to www.bcassessment.ca, then click on
E-valueBC, put in your address, and you will be shown the assessed value of all the neighbours on your street. This will give you an idea of the comparable value of your home, and let you determine if you wish to file an appeal.

According to the BC Assessment Authority, Abbotsford residential values have decreased by 1.94% in the last year.
HOMEOWNER GRANTS:
As of January 3rd, the maximum amount of your home owner grant in the Fraser Valley is being raised to $570 and $275 for seniors, disabled and certain veterans, to reflect the general increase in property values in BC.
YOUR BC ASSESSMENT vs.
YOUR HOME’S MARKET VALUE
Although the Assessment Authority works to reflect the market value of your home, our experience has been that your assessment is not an accurate valuation of what you can sell your home for. This is probably a reflection of how much our homes vary in layout, finishing, and buyer appeal. We have found that the current market value can be either higher or lower than your BC assessment.

A husband creates a life lease for his second wife, allowing her to live in their home as long as she lives. When she dies, the home reverts to the heirs. If she lives the entire rest of her life in that home, no problem. But should she move out of that home, say, to go into a care home, what happens to the family property?
Her children might see this property as a money maker and rent it out, or even live in it themselves.
If the husband has put in the life lease a clause stating that should she move out of the property, then it would revert to the heirs, the problem would have been averted.
When you contact your lawyer to write up this life lease contract, make sure that this potential problem is avoided.

 With drastically reduced prices in certain parts of the U.S., cross-border real estate buying can be very tempting.  To be successful, one needs to have up-to-date knowledge of continually changing border, legal and political issues. Read the rest of this entry »

With current low interest rates, it is an excellent idea to pay off your mortgage faster by making extra payments. 

One strategy is to increase your mortgage payments each year to match the rate of inflation.  Today the inflation rate is quoted at 2 % on average.

If your mortgage payment is $1187, then in year 2 it would be $1211, year 3: $1235 and year 4: $1260., etc.  We are talking about a very minimal monthly increase.

Because of compound interest, this small amount makes a huge difference. With a 30-year mortgage, instead of paying $177,458 in interest, that amount now becomes $135,505 and the mortgage payoff time is reduced by eight years.

If you increase your payments by 3%, you could shrink your amortization down to 19.75 years. Read the rest of this entry »

This month, January 2011, the Government of Canada has changed some mortgage rules.

• Mortgage amortization period of 35 years has been reduced to 30 years.  Mortgages with amortization periods longer than 30 years will no longer qualify for government-backed insurance.  This will affect the amount needed to qualify for a mortgage. 
• Home-Equity Line-of-Credit mortgages can only borrow up to 85% of the value of a home, versus 90% in the past.  In our area of BC, this amount is 75% of house value, so this shouldn’t affect us any.  At 75% of equity, this is not covered by government insurance and never has been.
• Minimum down payment of 5% remains the same to be insured.  However, check out another of our blogs to see how lenders are getting around that.
• Rental properties require a minimum of 20% down payment versus 5%.  Here, it has always been 20-25%, so we will see no effect.

Selling a home in December, January, or February in cold climates can be a tough task with a market slowdown and chilly weather.

Typically, buyers searching in the winter months are more serious.

Here are five tips from RE/MAX  Associates in Northern Illinois that may help you:

1. Let those lights shine.  “Turn on interior lights for a showing-even in closets and utility rooms –and make sure the bulbs are working.  Stock up on all the right bulbs for your lamps and fixtures to replace burned-out ones immediately. Keep front exterior lights on even if no showings are scheduled. Open drapes and blinds to let in light and show visitors the view.” (Marlene Granacki) Read the rest of this entry »

Even though the Federal Government has tightened the mortgage rules , lenders and home buyers have found a way around this down-payment rule.

Who qualifies?  Those with GREAT CREDIT AND INCOME, but who find it hard to save the 5% down payment.  Lenders will give these buyers  5% cash back on closing.  The transfer will happen at the lawyer’s office, with the lender providing the funds at the time of completion.  Should the buyer now have the down payment, the cash back can be used by the buyer for other things, such as renovations.

One point to remember: with no down payment, the monthly mortgage payments will be little higher.

Who should be interested?  Those buyers interested in getting into the real estate market, who can afford the home-ownership costs, but just have trouble saving the down payment.

The holiday season is quickly approaching and the team at Fine Redesign is eager to give back in a unique and hands-on way. We are excited to launch our First Annual ‘Stage it Forward – Give Back’ Event in the Lower Mainland this November and are offering a FREE HOME STAGING PACKAGE VALUED AT $5000 to the home that needs us most!

The entire team has been out in full force searching for that special homeowner who has fallen on difficult times; someone who needs help getting their house looking its best in order to sell quickly and for top dollar.

We found them.

Today I met with Ike Klassen from Abbotsford BC. Nominated by Richard Friesen of Re/Max Little Oak Realty, I knew Ike had a sad story to tell and thought I was prepared.  Seeing him wipe away the tears as he spoke so lovingly of his wife and best friend for the past 50 years, and what the future now holds for them, was not easy.

Ike and Alvina – both extremely talented artists – decided to sell the family home this October when they realized the upkeep of the house and property was more than they could manage. They loved their home and selling it was a difficult decision, but one they knew they had to make.

Sadly, Ike woke one morning to find Alvina unconcious, having suffered a serious stroke. She is currently in the hospital, unable to speak or walk, and is paralyzed on the left side of her body. She communicates only by squeezing her hand.

The stress of dealing with Alvina’s condition took its toll on Ike. A few weeks after her stroke, he had a heartattack, was hospitalized and underwent surgery. He is unable to lift anything heavy and even walking up the stairs is a challenge.

Life for the Klassen’s will never be the same. Alvina will soon be moved into a long term care facility and selling their family home has become a neccessity in order to help pay those costs.

Their house is going to receive a complete home staging transformation. The Fine Redesign team and all of the “Stage it Forward” sponsors are excited at the opportunity to showcase all of the beautiful features this property has to offer.

Selling the home is important, but what all of us are truly hoping for is that both Ike and Alvina will be able to recover from their hardships and continue on with a long and happy life together.

Katie Matthewman,

Owner Fine Redesign Home Staging & Decor Inc.

When the housing market is softening, which way you are moving in the market will decide if you come ahead or go backwards.  A softening market has a greater affect on the higher priced homes.  Whereas a $400,000 house will drop to $380,000, an $800,000 house can go down well over $100,000.  So if your next move is to a higher priced home, now would be an excellent time to make that move.  You would a decent price for your average home, but would get a real bargain on your expensive purchase.

If you are staying in the same area, in the same price range, you should be okay.  If you are downsizing from an expensive home to a lesser one, you will have to take a much bigger hit than the house you are purchasing.