Hello there,
Let me be the first to say….. SEASON’S GREETINGS! Yes it is true, December is here and people are starting to prepare for the holidays. This past October held the highest sales in six years and overall in 2009, we saw a 20% increase from 2008. Now this is all fine and dandy but be on guard for potential turmoil for 2010. Are we out of recession already? Is the worst of this global financial crisis behind us? I don’t think so and we need to keep in mind that the American economy is very fragile right now. It just seems like we got out of that mess too easily.
Let’s chat about the Olympics and how this could affect Vancouver’s real estate. Historically cities hosting the Olympics saw a decline in real estate shortly after the event. However I don’t expect the decline to be that bad in Vancouver because our city is very different from other cities. We are continuously voted as one of the top livable cities in the world, Vancouver is a destination city and will always hold its value due to attractive conditions like being on the water. As we close in on the New Year, remember that there are less offers (competition) during the month of December and early January. Less offers means as a buyer you have more leverage. Interest rates are still VERY low and this could be a good time for you. If you are currently home shopping, do you have a rate hold in place?
HST (Harmonized Sales Tax): How it works, the simplified version. HST is a new tax being introduced next year (2010) that will greatly affect real estate. The basic concept of the HST is to reduce the cost to create product before you pay for it. Presently, PST is applied at every step along the path to the creation of product and is generally charged many times before that product finally reaches your possession. HST essentially removes the taxes during the product’s creation and in turn provides it to the consumer at a lower cost. Will we really see this price reduction? It’s doubtful on the small stuff but probable on large ticket items (example: wood for construction, etc). Believe it or not, that one piece of 2×4 wood gets taxed many, many times before becoming your new home….. CLICK HERE TO READ THE FULL ARTICLE
HST rebate explanation for home buyers – simplified version with graph. The concept of HST scares many people and I am asked about this all the time, so I put together a simplified version of how this will affect you. So how will HST affect real estate? Previously we were charged 5% GST on new construction, plus property transfer tax (if applicable). Starting July 1st, 2010 we must pay 12% (5% GST & 7% PST), plus property transfer tax (if applicable). Find this disturbing? I certainly do. Not a big surprise, the public doesn’t agree with HST on real estate and all of a sudden a rebate system pops up. Was this planned the entire time? Maybe, maybe not… CLICK HERE TO READ THE FULL ARTICLE
The last seminar until after the Olympics is this coming Thursday December 3rd at the Roundhouse from 7:30 – 8:30 pm. If you are interested in getting some free education and entertainment, click here to reserve seats.
Social Media Revolution: Is social media a fad? Or is it the biggest concept in business since the Industrial Revolution? CLICK HERE TO VIEW THIS VIDEO that details out social media facts and figures that are hard to ignore. This video is produced by the author of Socialnomics and I highly approve of the content.
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Are you selling your home? If so I would seriously consider staging your property: Prospective buyers form an opinion of a property within the first 30 seconds of entering a home. Make that first impression a positive one. Give Aura Interiors a call to discuss possibilities. They can be found online here: www.aurainteriors.ca
Interest Rates
Last Summer the Bank of Canada initially promised to not increase the overnight lending rate. It’s been six months and they have so far kept their promise but are now saying the rate is pending inflationary concerns. Interest rates are predicted to increase in both the fixed and VRM (variable) markets. All that Canadian government stimulus that has appeared to have worked is starting to take its effect on inflation. Generally government stimulus takes six to nine months before the negative effects are felt. Well guess what, it’s starting to tingle and inflation is on the rise. How do you curb inflation? By increasing the overnight lending rate. Now lets focus on fixed rates and what a roller coaster it has been. The bond yield has dropped again bringing down fixed rates. I personally feel this is only temporary but we will just have to wait and see. For those of you who want to refinance but the IRD penalty is too high, you might want to consider a blend and extend at this point. Call me any time for an explanation.
Media
AM730 Testimonial: CLICK HERE TO LISTEN Social Media Entourage: - Featured article for CMP magazine CLICK HERE TO VIEW THE ARTICLE
Client Success
About six months ago we were contacted by a potential client from AM730. She had a mortgage coming due in October and wanted to make sure she was prepared. The best rate hold her bank would give her was a 60 day hold (2 month) and the interest rate was nothing special. We were able to offer her a 120 day hold which worked out perfect for her and obviously our rate was significantly better. Lo and behold the bond yield jumped and some banks were at 4.65% when her mortgage was due. She capitalized on the rate hold and probably saved over $10,000! The rate hold is a wonderful thing and it’s free. You just have to ask for it 
Let me introduce you to: Antoine Mandy from Macdonald Realty (Vancouver).
Are you looking for expert advice so you can make the best decisions when it comes to real estate? Because most people find it stressful when it comes time to buy or sell, Antoine Mandy makes it his mission to take the stress out of real estate. You deserve the process to be easy & enjoyable, so you can achieve your investment goals and real estate lifestyle. Check out Antoine’s website by CLICKING HERE
Suggest someone you think would appreciate some real estate advice and get a free copy of the Tipping Point.
The Tipping Point by Malcolm Gladwell: Personally, I am one of those people who has trouble staying focused. Border line ADHD perhaps and things become even more difficult when it comes to reading. The Tipping point was a book I couldn’t put down. An entire book on the social tipping points that shape our trends, marketing and social behavior. What makes something popular? What causes a particular product line to explode? Using historic examples to allow the reader to relate to Malcolm’s hypothesis’s makes for one heck of an intriguing read. The concepts discussed in this book have always been on my mind, I personally felt that no-one else really had his perspective on these issues. Malcolm did an excellent job explaining his thoughts and keeping the reader entertained.
Please CLICK HERE to purchase a copy of the Book from Amazon.ca |
