These intrest rate changes won't hurt a bit.

Its important for Kelowna Home Buyers to understand that when the minister of finance is talking about a bubble and trying to prevent the market from over heating, its major centres like Vancouver and Toronto that are driving these decisions. Kelowna Condo sales hardly reflect the speculative market we saw in 2003-2007. Okanagan real estate market is in a very balanced place right now.

The mortgage rule changes announced Monday by Financial Minister Jim Flaherty will weigh a bit on real estate speculators and heavily indebted people who want to fold
their high-rate credit card debt into a lower-rate mortgage. But for rank and file homebuyers, the changes will barely be perceptible when they take effect on April 19, 2010

“This should have a limited impact on what I see daily,” mortgage broker Peter Majthenyi said in an e-mail he fired off after Mr. Flaherty's announcement. “I believe it's more a message that ‘Big Brother' is watching and cares.”

Olympics aside, the favourite Canadian diversion of the moment is to debate whether there is a bubble in the housing market. Those most worried about the housing market plunging have urged Mr. Flaherty to raise the minimum down payment for a home and reduce the maximum payback period.

But the 35-year amortization, favourite of first-time buyers across this land, remains. So does the 5-per-cent down payment, which is heavily relied upon in high-cost cities like Vancouver, Calgary and Toronto.

All the measures announced by Mr. Flaherty affect mortgages covered by government-backed mortgage insurance, where the buyer puts less than 20 per cent down. The key change for typical home buyers is that, regardless of what term or type of mortgage they choose, they'll have to be able to afford the five-year rate.

New Mortgage Regulations from Finance Minister Jim Flaherty

Finance Minister Jim Flaherty announced Tuesday he will be issuing tighter lending standards for mortgages, saying that while the housing market is “healthy” the moves are needed to “help prevent negative trends from developing.”

Under the new rules, all borrowers will need to meet standards for 5-year fixed-rate mortgages regardless of whether they're seeking a loan with a lower rate and shorter term.

Also, the government is lowering the maximum amount Canadians can withdraw when refinancing to 90 per cent of the value of their homes, from the current 95 per cent, and requiring a 20 per cent down payment for government-backed mortgage insurance on “speculative” investment properties.

“There are no definitive signs of a housing bubble,” Mr. Flaherty said. “We think we're being pro-active in the three steps we're taking today.”

Frank Techar, the President of Personal and Commercial Banking for BMO Bank of Montreal, welcomed the announcement.

“While we do not believe that Canada faces a housing bubble, we fully support the minister's actions,” Mr. Techar said in a statement. “Given the prospect of higher interest rates and the recent run-up in housing prices in some markets across Canada, the measures announced today are prudent. Currently, we require high ratio mortgages to be able to qualify using the 5 year rate.”

In a release, the finance department indicated that the three new changes to the mortgage insurance guarantee rules are intended to take effect April 19, 2010.

In reference to the tightening of re-financing rules, Mr. Flaherty said this will encourage Canadians to build equity in their homes instead of tapping that equity as a source of cash.

“This will discourage the kind of mortgage refinancing that can create unsustainable debt levels as interest rates go up. We are encouraging people to build equity over time, using home ownership as an effective way to save, rather than as a vehicle for quick cash,” he said.

In his comments on the third measure, Mr. Flaherty said the hike in minimum down payments for such properties will help keep prices from climbing too high.

“We will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. This will discourage the kind of reckless real estate speculation that can drive prices to unsustainable levels which does not serve Canadian home buyers,” he said.

“We're not aiming here at investment properties,” Mr. Flaherty added. “What we're getting at is the speculation in multiple-condo markets, in particular.”

CIBC economist Avery Shenfeld said “these look to be very well targeted at the one area of concern that we have, which is that low rates are making larger variable rate mortgages look more affordable than they really are on a long term basis.”

The moves send an appropriate message to borrowers about debt, he said. While the rules don't take effect yet, Mr. Shenfeld suggested that the banks might begin adopting them earlier. And they could take a little bit of steam out of the market, he said.

“It may be part of a cooling that we'll see in house price appreciation,” he said. “We were pushing into house prices that were running a bit ahead of rental rates and income fundamentals – not to the point that we feared a huge house price crash, but to the point that it might be time to head-off such risks.”

Jeremy Torobin, Bill Curry and Tara Perkins

Globe and Mail Update

Marketing your Home on the Internet

There are many Marketing Questions to Ask the Real Estate Agent Who Is Offering to List Your Property for Sale. With almost 90% of property buyers searching online for real estate, you'll likely be best served by an agent who understands modern Real Estate web marketing techniques.

• Are you using a professional photographer to capture the best photos of my property?
o How many photos of my home do you intend to post on the web?

• Do you post to Craig’s List, Castanet and Kijiji? Will your ads divert that traffic to more effective website?
o How often will you repost

• Do you use Facebook ad impressions? How will they be targeted?

• Which keywords will you target as part of the Google adwords and/or Bing campaigns will you run for the property?

• Will you post my property to your blog and update your readership at least twice/month with updates etc?

• Can I see the MLS description you plan to write for the property before it is posted? Is it written by a professional copy writer?

• Are you willing to notify the 10 agents who have the most recent sales on properties closest to my property about the listing?

• Which social networks will your blog posts about my listing syndicate to? How many total people do you have on your friends/fans/followers lists?

• Will I be able to access web tracking for the various sites where my listing appears? Can you set me up to be able to view these visitors in real time?

• Can I send your presentation online to my address book of contacts?

• Are you willing to provide a Satisfaction Guarantee

Agents are often chosen solely on the recommendation of a friend or maybe an ad in the newspaper. But choosing the right agent can save you time, effort and aggravation. No matter the source if the agent does not have a marketing plan or does not have a strong grip of real estate marketing in today’s world of tech savvy buyers, how will this agent ensure that your home gets into the hands of as many buyers as possible? Exposure is Key.

If you are thinking of selling real estate in Kelowna or the okanagan? Would like a Vantage West Realty Agent to spend some time with you and show you our extensive property marketing system? Or if you have any questions about marketing your property in your home town please feel free to contact us at info(at)vantagewestrealty.com or 1.877.817.3133

10 ways to improve the value of your home

After you have taken the time to evaluate your real estate professional there are a few more important items that you may want to take a good look at to ensure you are getting the most for your home.

Whether it’s to prepare your property for selling, or even just to enhance the enjoyment of your single largest investment.

Here are 10 ways you can increase the value of your home.

• 10: Showcase that view in an out Purchase New Windows. They not only add to the value of your house, be GREEN and save money by keeping your home more energy efficient.
• 9: Bring your family room up to date, buyers love open space, maybe enough room work out with the Wii! — a feature potential buyers will love!
• 8: Clean up the Kitchen. Yes insides of your kitchen drawers too. Try adding rollout trays and other organizers. Save some space, and make them more attractive to buyers.
• 7: Consider investing in a power generator, to keep the light on, when the electricity goes out! Stand out from the competition
• 6: Do a ‘floor space audit’ in your home. Look for square footage that isn’t being used, or used well, and try to put it better use. With some drywall and a bit of imagination, you can add a new room at little cost.
• 5: Add a deck! One of the best ways to add value is to create a brand new room outdoors! And just think, your grille will love you for it. That Kelowna lifestyle is all about the balance of indoor and outdoor living.
• 4: Upgrade your garage door opener to a keyless touchpad entry system to provide a bit of convenience and high-tech flair!
• 3: Fix up that basement. Whether you do a whole renovation or just a fresh coat of paint, it’s not a dudgeon. It will make a big difference in the value of your home.
• 2: Consider using that attic space for more than just overflow storage, try adding a room. You’ll see a big return on your investment, there.
• 1: Let there be light! Update your light fixtures – a small cost, for a big return!

Do you own Real Estate in the Okanagan? Call a Vantage West agent today we would be happy to help you with a custom list for your home!

BC Real Estate Market Update - Interest rates and inflation...

Real estate activity has been blistering in recent months, fuelled by record low interest rates. The Bank of Canada stated this month it will keep its key lending rate at 0.25 per cent through to mid-year unless its inflation outlook changes.

The flurry of activity has sparked concern about housing bubbles though. The heads of the country's six largest banks have expressed concern over a potential slide in house prices and said they want Ottawa to tighten rules on mortgages, reported The Globe and Mail Saturday.

Finance Minister Jim Flaherty seems to have no near-term plans to tighten mortgage rules.
“Right now, there is no compelling evidence of a housing bubble in Canada,” he told reporters this weekend, though “we're continuing to watch” how the market evolves

HST Real Estate Update

The HST has been looming large in the minds of prospective homebuyers. A recent IPSOS Reid survey indicated 40 per cent of B.C. Home Buyers believe the HST will impact their home buying plans. The question is, how big of an impact will it have?

The jury is still out on exactly how the HST will affect the overall housing market. However under the current proposal a homebuyer purchasing a used or resale home will see only a marginal increase in their actual costs.

According to Tony Spagunolo, “The average buyer purchasing a used home will see an increase of maybe $100 if the HST is implemented in the current form.” Spagunolo owns, The Spagunolo Group of Real Estate Law firms, and specializes in Real Estate conveyance.

When you break down the numbers it becomes apparent Tony is right.

Buyers only pay GST on new real estate. Therefore a resale property should not be subject to HST. Legal fees already include GST and PST therefore will have no change.

The only additional cost will be on home appraisals and inspections. Home appraisers and inspectors currently only charge GST. In the Okangan an appraisal can cost about $300 while an inspection is around $175. The total GST on both is currently $23.75. Once the new rules take effect July 1st, 2010 the total tax will increase to $57.00 which is an increase of only $33.25.

Who will the HST hurt the most?

Sellers will actually pay quite a bit more HST than buyers. Sellers pay Real Estate commissions which are subject to GST. Considering the average $400,000 sale generates a commission of around $16,000 the HST will add an additional $1,120 in tax. Not a small sum, but probably not enough to prevent a sale either.

Perhaps the single group most likely to feel the pinch from the HST are homebuilders. In particular builders who have a building completing after July 1/2010 will be the most impacted. There is a transitional tax planned for these buyers, but rest assured the builders, or more likely buyers are going to absorb some of the new tax.

It seems the provincial government is convinced more tax is the cure for what ails us. Whether this is the case still remains to be seen. At least homebuyers purchasing re-sale real estate can breathe a collective sigh of relief since the increased cost of the HST will be less than a less than a pizza and a six pack of beer

-Scott Peckford – Mortgage Architects

More Kelowna Real Estate News at Vatage West Realty.com
http://www.vantagewestrealty.com

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Kelowna Real Estate Quote of the Day

"No house should ever be on a hill or on anything. It should be part of the hill. Belonging to it. Hill and house should live together, each happier from the other." Frank Lloyd Wright

To view more incredible Kelowna Real Estate visit Vantage West Realty.