Latest Articles by jsamson

Canadian Realty Holding Its Own

Tue, 22 Jan 2008 00:00:00 -0600

The annual winter lull in the real estate market means that the time is good for prospective buyers who like to take their time. With Canadian unemployment at a 33 year low, the realty market looks like holding strong.

It is difficult for many of us Canadians to accept that while the US realty market may be floundering, the Canadian market is steady. In fact, due to the strength of our dollar and the weakness of the US dollar against International currencies, many Americans are actually buying into Canada to preserve their funds.

While coastal and lake areas would seem an obvious choice for American speculation, many are buying properties simply as an investment project. Renting a condo is one of the easiest way to make money and have the property 'buy itself', and condo sales everywhere have jumped as people are realizing the enjoyment of life without maintenance!

Condominium prices in Ottawa have been climbing upwards all year, with an increase of 7% over this time last year. The strong job market was partly the cause of this. The increase in national employment has marked the 15th. straight year of national employment growth.

In Calgary, condos are also a good investment and offer a reasonable price range if you are trying to get started on the property ladder. The increased inventory of all properties has slowed the market at the moment, so now is a good time to look for a condo. Some builders have even dropped their prices, so brand new ones can be snapped up by the shrewd buyer.

Despite the changes emanating from the famous revisions to the oil royalty revenue, Calgary has a strong economy and has seen a large population increase. According to one national forecast, it is poised to experience moderate growth and a sustainable real estate market though 2008.

Average house prices in Calgary are set to increase by 4% and in a slower moving market, first time buyers may be encouraged to put their toe in the water.

One of the mandatory requirements for a mortgage for first time (or any other) buyers is a good credit rating. If there is no credit rating recorded against you then apply to a bank for a credit card. They may require you to deposit $500.00 or $300.00 and then you will be required to leave that untouched in the bank as security.

By using your card every month, and paying it every month - on time, you will begin to build up a good credit history. Of course, other data is required by a lender. You will need tax forms showing your income and a letter on headed notepaper from your company stating your earnings.

It is always advisable to get "pre-approved" before looking for a house. This means you sort out the finance before checking out the realty. If you proceed in this order, you will know if you have to save more money for the down-payment, or which price range you can look in when choosing.

Things often 'heat up' in the housing market in the spring, so now may be a good time to invest in some Canadian realty.

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This article was written on behalf of Joe Samson. Joe is a REALTOR® who has been helping clients achieve their goals in the Calgary real estate market since the year 2000. If you would like to invest in Northwest Calgary real estate, visit www.JoeSamson.com.

Source: http://www.articletrader.com

Should Government Profits on Realty Be Lowered?

Thu, 10 Jan 2008 00:00:00 -0600

If you are planning to sell your house this spring, and are disheartened by the amount of brand new homes for sale in your area, take heart! It seems the Government slide off more of our bucks than we probably realize, but at least one of these taxes could work in your favor.

A new report that has been commissioned by combined builder and broker mortgage associations has been be-wailing one big disadvantage when buying a new home. The Canadian Government will levy GST on a new home, whereas re-sale homes are exempt.

On an average house price this can add an extra $20,000 into the outlay. This is $20,000 that is not included in the asking price, it is an add on. Since the GST was introduced in 1991, house prices have more than doubled, which means that the GST portion has doubled too. However, the house prices have jumped up and over the rebate ceiling and many people are not able to take advantage of the rebate anymore.

This means that whereas, in 1991 when the bill was introduced, over 90% of house owners qualified for a full rebate, now only 52% qualify. The GST bill was supposed to be reviewed every two years, but the rates have never once been adjusted.....

The Chairman of the Residential Construction Council of Ontario, has pointed out that the effective amount of GST paid per new home increased by 95% from 1991 to 2007. This is 2.5 times more than the rate of growth for the average weekly wage in Canada.

All this is of interest to you if you are selling your home, as your home will not include the hefty GST bill at the end of the sale. Unfortunately, the report turned up one other deficiency which will affect your house sale, as well as also affecting the sale of new homes.

The Canadian Association of Accredited Mortgage Professionals investigated the Home Buyers Plan which was introduced in 1992. Under this tax umbrella, first time buyers are allowed to withdraw up to $20,000 tax free from their Registered Retirement Savings Plan to be used as a down payment on a home.

This is still in effect, but this amount has also not been increased since its initiation, while house prices have gone up by 104%! The Home Buyer's Plan has been renounced in the report, as 'becoming less effective as a means to support Canadians in their aspirations for home ownership'.

Land transfer taxes are another lucrative area for government cream-offs. Toronto is just about to put theirs up at February 1st., making them the holder of the highest land transfer tax (LTT) in Canada. In Toronto the average house pays $8,300 in LTTs. Land Taxes have also increased in much larger percentages than the house prices that they are related to.

In B.C. they rose by 179%, asking an average of nearly $7,000 per land transfer. Quebec increased their LTT by 136% to $1,800. per home.

If anyone feels like taking up the challenge, the author of the report, Will Dunning, has stated that these increases fail to meet any definition of fairness. He says that they are a discriminatory tax and as such, have to justify the government's or society's at large expenses for the related service ( home buying). This, it does not do.

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Joe is a REALTOR® who has been helping clients achieve their goals in the Calgary real estate market since the year 2000. If you would like to view South-west Calgary real estate listings, visit www.JoeSamson.com.

Source: http://www.articletrader.com

The Great Canadian-American Exchange

Wed, 02 Jan 2008 00:00:00 -0600

It seems there could be an exchange of property buying going on across the Canadian border. On the one hand Canadians are buying over the border in USA, and on the other hand Americans are opting to buy in the stronger Canadian realty market.

Although contradictory, both scenarios can make sound financial sense, depending on which logical trail you are following. According to American Dollar Index figures, the American dollar has dropped to its lowest rating since the Index started in the seventies. In the Index, the dollar is rated against six international currencies. There is speculation that this falling dollar may still continue downwards, causing some Americans to choose to hedge their bets and change some of their green back dollars into Canadian multi-colored dollars!

One way to do this is to invest in some Canadian real estate. The market is very strong in Canada and the funds to buy the house would be held in Canadian dollars, of course. Cities such as Calgary, Edmonton, Vancouver and Saskatoon have been enjoying high increases in house prices this year. These cities are all reporting large increases in sales as well as higher than average sales for this time of the year.

As at November 2007, Canadian existing home sales had already hit an annual record. Average home prices rose 11% and the trend looks like continuing. Nationally average house prices are predicted to rise by 3.5% in 2008. The number of homes trading hands in 2008 is also expected to remain higher than in all years prior to 2007. These figures are from
Royal LePage's 2008 Market Survey Forecast.

In spite of the American slump, Canada expects its realty market to rise by nearly 4% into 2008. The Vancouver City News report that it would seem wise for Americans to 'invest in the Canadian real estate market and take advantage of soaring house prices which have not yet peaked and the of the rising Canadian dollar'.

These factors all make investing in Canadian real estate a viable proposition for holders of the falling American dollar. Given these facts, does it make sense that many Canadians are doing the exact opposite and going over the line to buy real estate in he USA? Well, with the Canadian dollar almost on par with the U.S. dollar, Canadians get more for their buck than they used to when they lost 10% for every loony.

What is more, prices over the line are often cheap at the moment, with some of them actually being given up to foreclosure sales. The discount on these prices is quite considerable and realtors in places such as the Pacific North West have reported a substantial increase in Canadian Buyers. Another popular area for Canadians - especially snowbirds - is Nevada. It has the highest foreclosure rate at the moment, so good deals can be picked up there.

The property market is always a gamble, but there are also always deals to be made if you are in the right place at the right time!

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Written on behalf of Joe Samson. Joe is a highly skilled REALTOR® who has been helping clients achieve their goals in the Calgary real estate market since the year 2000. For more information on buying or selling South-West Calgary real estate, visit Joe at www.joesamson.com

Source: http://www.articletrader.com

Positivity Pays!

Wed, 02 Jan 2008 00:00:00 -0600

The way you greet and interact with the people who come to view your home - however minimal - could make or break the possibility of an offer. If your prospective buyer is a hesitant or indecisive person, your approach could be critical.

That is because attitude is powerful! Optimism is catching! Have you ever gone out in a great frame of mind, and come back feeling awful? That is probably because you met someone who was inundated with problems, who regaled you with their complaints, who told you that your solutions were 'hopeless' and who completely sucked all your positive energy out of you!

When your prospective buyer comes, you want him to enter your home with an open, positive mind and leave with the same feeling. This is where home staging has something to offer. The art of home staging is to de-clutter your home of your own personal bits and pieces so that your buyer can visualize himself living in your environment.

But home staging is also done to ensure that any negative vibes are removed. For instance dirty dishes left in the sink suggests work. Garbage cans left on show may remind the prospective buyer about trundling out in the cold and rain to set the cans out for pick-up etc. This reminder of working in your house may not help him to feel good about buying it, so let that thought stay in his subconscious!

Another factor which can be formulated in a positive way is the reason why you are moving out of this lovely/easy care/well kept home. Saying something like, "We can't wait to move closer to our daughter now she has a baby' is a much more positive suggestion than saying, "We can't handle the stairs - or the garden - anymore."

Don't give them the feeling that will be worn out in your house running up and down the stairs or doing all that gardening!

Optimism is one of the factors in the Law of Attraction. That Attraction theory states that you get back what you give out. If you are giving out that you are happy and content living in this lovely home, the ambience may be infectious and your buyer will have an intuitive feeling that this place is the right place for him!

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Written on behalf of Joe Samson. Joe is a Calgary REALTOR® who has been helping clients achieve their goals in the Calgary real estate market since the year 2000. For more information, visit Joe at www.joesamson.com

Source: http://www.articletrader.com