The Johnson Street Bridge, Victoria. Photo credit: Sylpherware on Flickr
The latest data from our Member Market Survey has just been released by the Victoria Real Estate Board. Each month, agents who’ve completed a transaction while acting for a buyer are polled on various questions about their buyers. The goal is to get a snapshot of the situation on the street directly from agents who are actively involved serving their clients.
Highlights from this month’s data:
First-time buyers represent the largest segment of the buying population, with 36.5% identified as such
Interestingly, the number of people moving from a single family home to a condo or townhouse was nearly the same as those moving from one property to a similar one.
Single females bought more houses last month than single males.
Only one buyer came from outside of Canada last month.
Check out the full details of this month’s survey here.
The Capital Regional District (CRD), along with non-profit The Land Conservancy (TLC) has agreed to buy up more than 2300 hectares (nearly 5700 acres) of land that was slated to go up for sale today. The land, belonging to Western Forest Products (WFP) has been the subject of much controversy in our area since the provincial government allowed WFP to remove its private lands from a tree-farm license (TFL) in 2007.
While some of the land on the interior side of the highway may be sold off to help finance this purchase, most of it will be dedicated as park. One exciting feature of this deal is that the land acquired near the Potholes completes the Sea-to-Sea Green-Blue Belt, which, besides having the distinction of being the most awkwardly-named park reserve/network on the Island, will now stretch all the way from the Sooke Basin to Saanich Inlet.
The land deal is worth nearly $19 million, most of which is coming from the CRD’s parkland acquisition fund, and will be paid over 3 years. The rest of the money will come from TLC, and hopefully, the provincial government, who have been under fire since the land was released from the TFL three years ago. Many see it as an opportunity for the province to right a wrong that caused great controversy.
And speaking of the parkland acquisition fund… this is part of your yearly property taxes. Since it was established in 2000, it has been $10 per household per year, which has been well used in my opinion, protecting nearly 3000 hectares of land at a value of nearly $31 million. Your contribution to the fund will be going up this year by $2, and will eventually rise to $20 per year, allowing the CRD to purchase lands such as the Jordan River WFP parcels for everyone’s use and enjoyment, forever. I’d happily pay $50 or even $100 per year to pad this fund and enable the special areas in our region to be protected. It’s a great example of taxpayer money going into something we all benefit from.
The deal is still tentative, but is slated to close in August. I’m looking forward to the CRD’s plan and longterm vision for these newly acquired lands.
What’s your take on this announcement? Good, bad, otherwise? State your opinion, but be nice to one another!
Something’s been bugging me for a while now, and I’ve been meaning to write about it. You know the commercials on the radio and TV. I probably hear them half a dozen times a day, more if I’m listening to a Canucks broadcast.
“Making your home equity work for you…..”
“If you own your home,” say the commercials, “we’ll lend you money.”
Sounds great, right? Free money! Against the value of my home! More and more, Canadians’ chief source of wealth these days is the equity built up in their home. Equity is the difference between the market value of the home and the outstanding balance on the mortgage on the property.
Homeowners should approach equity take-outs with extreme caution, because managed improperly, they can cost dearly. Many financial advisers will tell you it makes good financial sense to refinance high-interest debt such as personal loans, lines of credit, and credit card debt with low-interest mortgage money. While this is true, one needs to first examine how the indebtedness happened. If you’ve got $30,000 of student loans at a high interest rate, it makes good financial sense to pay them out with lower interest money. However, if you’ve racked up $30,000 of credit card debt at really high interest rates by consistently spending more than what you make, what is stopping you from doing it again once you’ve paid it out?
The point is: spend within your means. Irresponsible credit use is one of the biggest financial problems in this country, if not the world.
Some people have the mistaken assumption (and perhaps some members of my profession are partially responsible) that real estate prices only go up. We don’t have to look far back in history to bust this myth. If you had purchased a home in Victoria in the spring of 2008, with a 5% down payment, there is a very good chance you owed more on it than it was worth by February or March of 2009. Real estate prices fluctuate, and the worst situation you can be in is to owe more than you could get for your home if you had to sell it.
Treating your home like an ATM is a great way to end up in that situation.
…And answers to other frequently asked questions about Sunriver Estates in Sooke – one of the most popular new neighbourhoods in the greater Victoria, BC area.
Because I write a lot about Sooke, I get plenty of questions about living here, working here, and of course, about the neighbourhoods. Sunriver Estates is a huge master-planned community on the banks of the Sooke River, sloping up the Sooke Hills with various creeks and other natural features. It’s a very nice looking development, so it’s no surprise that it’s very popular. Also, the lots are larger than most other new developments in our area, so you can have a real back yard instead of a postage stamp. People move out here for the natural beauty, recreational options, quiet lifestyle, and of course the value. It amazes people when they visit Sooke what you get for your money, and how much more a similar house would cost (usually on a tiny lot) in Victoria, or even Langford, just 20-25 minutes’ drive away. Below are some answers to some frequently-asked questions about Sunriver Estates in Sooke.
Q. Is Sunriver Estates a strata development?
A. No, all homes in Sunriver are freehold, fee simple titles (except for the townhouses). Read details in this post.
Q. How many homes have been built at Sunriver?
A. There have been 371 houses built at Sunriver since it broke ground in 2004.
Q. How many homes are planned?
A. There will be 715 houses at Sunriver when construction is completed.
Q. How many more years will construction be taking place at Sunriver until it’s built-out?
A. At the current pace of construction, all homes will be sold and construction complete in approximately 5 years.
Q. What about the building scheme? I’ve heard that boats and RVs, etc are not allowed? Who enforces it?
A. The building scheme at Sunriver allows boats and RVs, etc, but stipulates that they must be behind a fence, lattice, or other sort of screening so that they don’t clutter up the character of the neighbourhood. The developer has sent out letters to offending properties asking them to comply. To date no one has been fined or needed action beyond the letter.
Q. Are any condominiums planned for Sunriver?
A. No, condos are not being built at Sunriver Estates. There are some very nice townhouses at The Pointe, and there may be a few more built.
Q. Will there be any commercial space built at Sunriver? Neighbourhood shops, cafes, etc?
A. When construction is completed, the sales centre will be sold off as commercial space. It will be up to the buyer (and Sooke zoning and business bylaws) what goes in there. Anything is possible – cafe, restaurant, pub? Who knows!
If you have any more questions about Sunriver Estates or other areas in Sooke or would like information about homes for sale in Sunriver Estates and Sooke, give me a call at 250-885-0512, email Tim@TimAyres.ca or fill in my contact form!
Do you live in Sunriver? What’s your favourite thing about living there?
Following a couple months of speculation, Finance Minister Jim Flaherty brought in some new regulations designed to tighten up lending practices and cool off the housing market in Canada. The government didn’t go so far as to reduce maximum amortization from 35 to 30 years, or increase minimum down payment requirements higher than 5%, but did take the following three actions:
Borrowers must now qualify for a five-year fixed rate, even if they are applying for a variable rate mortgage. Variable rate mortgages are based on the prime rate, which is at a rock-bottom 2.25% currently, and is expected to rise over the next 12-18 months. By qualifying buyers at the higher 5-year fixed rate, it is hoped that a cushion will be created such that borrowers can still afford the payments when the prime rate increases, as it will inevitably do.
Home owners who want to take out some equity from their homes when they refinance their mortgage will no longer be able to take out up to 95% of the lending value of their homes, only up to 90%. This is designed to prevent home owners from using their homes as an ATM and getting in over their heads if their property value declines. Probably not a bad idea, but it will prevent some home owners from paying off high-interest debt with low-interest mortgage funds. Overall, I’m happy about this one.
Purchasers of non-owner-occupied real estate, ie, investment properties, will now need 20% down instead of 5%. The government says this is to prevent speculation by investors. I’m of two minds on this move. It will certainly put a squeeze on buyers of investment properties, which may in turn lead to fewer rental properties available and hence a corresponding rise in rents.
The reader needs to bear in mind that the above rules are for CMHC-insured mortgages only. Private insurers like Genworth and AIG Guaranty may be more flexible. Mortgage insurance is mandated on all mortgage loans in excess of 80% loan to value ratio, which offers the lender protection should the borrower default. This way, lenders are able to offer borrowers lower rates because they do not have to compensate for the additional risk of a high-ratio mortgage.
Also, most lenders qualify a buyer on a 3- or 4-year fixed rate already when applying for a variable rate mortgage, so this won’t be a huge change for most institutions.
The new rules are set to come into force April 19th. I would expect a surge in activities in the market as buyers and investors try to get in under the deadline, even though most residential, owner-occupier borrowers won’t be too affected by the changes. All they will hear is “harder to get a mortgage” and they’ll rush out to get pre-qualified and then go shopping.
Image Credit: Jeffery Simpson on Flickr (Click for profile)
I was one of those people before. I had no interest in taking the ferry to Vancouver and braving the crowds, lines and security to hang out downtown. What’s the big deal?
I was wrong. I returned from Vancouver yesterday totally energized and excited about the Games. The city is simply buzzing with activity 24 hours a day. Yes it’s busy, yes it’s crowded, but that’s half the fun. If you’re complaining that the Olympics are a 2-week party for the rich, you’re dead wrong. I didn’t have a ticket to any events, nor a plan or a list of attractions I wanted to see. I spent next to nothing, but felt like I took in everything.
And it couldn’t be easier for us in the greater Victoria area. BC Ferries has added an early morning (6:00am) and late evening (midnight) sailing for your convenience. Bus to or park at Swartz Bay terminal, walk on the ferry. Take one of the many buses outside the Tsawwassen terminal and get on the Canada Line downtown. Quick and easy. There might be a lineup, but with trains coming every 3 minutes or so, you won’t be waiting long. I never had to wait for more than one train before being able to get on. Wander around, explore. Take in some of the free entertainment at the various pavilions. See the Olympic flame burning outside the convention centre. Feel the vibe and enjoy the spirit!
Watch the events unfold from numerous outdoor high-definition screens. There really is nothing like it – standing on the street, cheering on our athletes with 1000 of your closest friends. Everyone is smiling, waving flags and having a great time.
The Richmond O-Zone is great too. Just steps from the Richmond-Brighouse Canada Line station, this 60-acre site includes a large mainstage with free concerts all Games long, beer gardens, restaurants, arts and culture displays, the ever-popular Holland Heineken House, and BC Street, where you’ll find displays from all over our glorious province, enticing the world to come and visit. Sooke’s booth has really stolen the show, people absolutely love it.
Try out the Olympic line – an electric streetcar (with comfy leather seats!) on loan from Brussels, Belgium – and you thought sprouts were the attraction from Brussels. It runs from Olympic Village Canada Line station to Granville Island, where you can take in even more Olympic fun, including House of Switzerland, and Atlantic Canada House.
I had an awesome, exciting weekend and didn’t spend a lot of money. Transit is cheap and reliable, and with so much free stuff to do, you’d be remiss not to take it all in.
As of July 1st, 2010, the 5% GST and 7% BC PST will be replaced by a 12% Harmonized Sales Tax. How does this affect buyers of housing in British Columbia?
HST will only apply on new housing. Just like today with the GST, HST will not be applicable on previously-occupied, resale houses. I get this question all the time. Unless you’re buying a new home, or one that has been substantially renovated such that it is as-new, you will not pay HST on the sale.
Below is a table which outlines the current GST burden on new housing and the proposed HST burden on new housing after July 1, 2010. Keep in mind that often for properties priced under $450,000-$500,000 the builder includes the GST in the purchase price, and the new housing rebate is assigned to the builder. For example, it would be rare to purchase a $275,000 condo and pay GST on top, but it would not be uncommon to buy a $600,000 home and then have to pay the GST in addition to the purchase price.
As long as I write this blog, I’m certain to never forget that two years ago today, February 2nd, is the day that Lindsay Buziak, a 24 year old real estate agent from Victoria, was murdered in the house she was showing to prospective buyers.
In the month or so before the anniversary of her death, searches for “Lindsay Buziak” and related keywords surrounding the case show up with increasing frequency on my blog stats because of what I wrote the days after the murder and on the one-year anniversary in 2009.
It’s only natural I guess – people scouring the Internet for information on the case: clues, speculation or rumours. I’d like to think that some of the traffic is law enforcement, hoping that somebody somewhere has posted a new tip or clue about the case.
Because it’s ridiculous that the police have next to nothing to go on. She was killed in the early evening in a residential neighbourhood where people would be getting home from work. Somebody saw something. Somebody knows something that will lead to an arrest. Saanich Police concede that she was intentionally targeted and that the murder was planned many weeks in advance. You can’t plan something like that and have no one know about it.
“Lindsay was intentionally targeted, she was intentionally lured to the home and she was intentionally killed.” – Saanich Police spokeswoman Sgt. Julie Fast.
Lindsay’s family has announced a reward of $100,000 for information leading to an arrest. The Victoria Real Estate Board and the Canadian Real Estate Association have each contributed $25,000 to the reward pool, in a show of support. What happened to Lindsay, while not a direct result of her profession, could happen to any of us in real estate. All too often we get complacent in the chase for another deal. If something doesn’t feel right, don’t do it – listen to your instincts.
I really hope I never have to write another Lindsay Day post on this blog. Please, if you know anything about this case, no matter how small it may seem, call the Saanich Police tip line at 250-475-4356.
With just 10 days to go until the 2010 Olympic Winter Games open in Vancouver, the excitement is growing and reports from Vancouver indicate the atmosphere on the streets is electric as athletes, supporters, and visitors are already arriving in town.
Sooke is one of several British Columbia communities taking part in the B.C. Street exhibition, which is taking place throughout the Games at the Richmond O-Zone, just minutes away from the speed skating oval and a short ride from the airport or downtown on the Canada Line.
A team of artists, designers, visionaries and builders have been hard at work in the Sooke Fire Hall building what is sure to be an amazing display of the Sooke to Port Renfrew region. The display is about 40 feet long and is designed around the theme “Wild by Nature.” It will feature an “ocean” and “beach”, trees, and boardwalk, overlooking a 40×8 foot panoramic photo of Sooke Harbour. A killer whale is captured in sculpture, breaching the water, and the familiar site of Sheringham Point Lighthouse is also present.
Local graphic designer, photographer and videographer Jason van der Valk of Inktvis Creative shot the panoramic photo and produced the Sooke 2010 website and video, shown below. The work he put in was extensive and the results definitely show. If you’re looking for somebody with creative vision and skill for your next project, Jason is your man!
For those of us that live here, the video reconfirms that we live in an amazing place – perhaps Vancouver Island’s best-kept secret. For everyone else, perhaps it’s time to have a look at the video, and find out what you’ve been missing.
