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.

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.

Once you’ve found the particular property, checked on the local crime rate, found the cash to pay for the property (difficult to get U.S. financing for Canadians), then you will need to investigate the way you will register your ownership.  As there are 6 to 8 ways to title property and each one with different tax implications, you will see the need for expert advice.

 Then there is the question of property insurance.  Be aware that insurance can be very expensive, especially if you are a non-resident.  Extra insurance such as for flood or other disasters can be in the thousands of dollars. Pay attention to your insurance deductible – they can range from 2% to 25% of the cost of the property.

Check out the details of property taxes, as most states will charge more for foreign ownership.

If you are purchasing for renovations, you will need to investigate who is allowed to do the work.  You will be required to hire American workers, and not your brother-in-law.

Hoping to fix up and resell for a profit?  You will need to check out all the costs of selling in a foreign country.  A non-resident may be subject to a withholding tax, and to do this you will need to file a US tax return (another expense).  There will be capital gains to be paid on the profit you made.  This will be paid to the US government in US dollars and then to Canada Revenue Agency with a credit for the US tax already paid.

Before you buy for the long haul, get expert advice on what happens in the event of the property owner’s death. 

The bottom line:  get experienced, professional cross-border advice before taking the plunge, no matter how attractive it looks.

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.

• 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.

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)
2. Make entry easy. “Winter showings can get off to an awkward start if prospective buyers arrive with snow and salt on their shoes.  Make it easy for buyers to deal with their shoes when they arrive by putting out a nice festive area rug at the front door for wiping their feet, and slippers or disposable booties available. If there’s room, put out a bench for visitors to sit on and remove their shoes.”  (Barbara Hibnick)
3. Keep odours under control.  “Homes can be stuffy in winter when windows are rarely opened, and that can allow odours to build up, which is a huge turn-off to buyers.  Pet odours can be especially worrisome in winter.  Use a room fragrance if needed, but nothing too strong, and clean more often. (Change cat litter every day.) Consider using an air purifier and adjusting your thermostat so that your furnace fan runs throughout the day to move air through the house and dissipate odours.” (Mike Modello)
4. Make it festive. “Appropriate holiday decorations can give your home a cheerful look during the winter months – however, don’t go to extremes.  Small, decorative white lights on trees and bushes are OK through the winter months, but other decorations should be taken down quickly once the holiday passes.” (Starr Zook)
5. Keep it comfy.  Adjust your thermostat so the temperature is warm, but comfortable; you don’t want too hot or cold. “When it comes to keeping heating bills under control, don’t use plastic sheeting to insulate your windows. You may save a few hundred dollars on heating costs if you cover the windows with plastic, but it  could cost you thousands on the sales price because buyers might believe they will have to replace the windows.”(Hibnick)

2010 RE/MAX,LLC.

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.

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.