A change to the property transfer tax threshold in British Columbia for first-time buyers has come into effect.
The increased threshold means that first-time buyers are now exempt from the tax on homes up to $500,000 rather than $475,000 previously. The move was introduced as part of the provincial government’s 2017 budget.
The increase has been welcomed by the British Columbia Real Estate Association but it is urging the government to index the exemption so that it increases annually.
The newly-increased exemption for first-time buyers also falls well short of the association’s recommended level of $750,000 which it was asking for during the budget consultation.
Source: http://www.canadianrealestatemagazine.ca/market-update/firsttime-buyers-get-25k-boost-221622.aspx
Monday, February 27, 2017
Thursday, February 23, 2017
Credit card management linked to mortgage delinquencies
The way that consumers manage their credit cards reveals how likely they are to default on mortgage payments.
A study by lender TransUnion in Canada, the US and Hong Kong, reveals that those who consistently pay more than the minimum payment on their credit card statement are less likely to be risky borrowers on other credit products.
Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.
“We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights,” said Todd Skinner, president of TransUnion Canada.
The TransUnion survey of 1,010 consumers in Canada reveals that 88 per cent of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39 per cent) are uncertain about the importance or benefits of paying off an increasingly greater amount.
Source: http://www.canadianrealestatemagazine.ca/market-update/credit-card-management-linked-to-mortgage-delinquencies-221621.aspx
A study by lender TransUnion in Canada, the US and Hong Kong, reveals that those who consistently pay more than the minimum payment on their credit card statement are less likely to be risky borrowers on other credit products.
Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.
“We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights,” said Todd Skinner, president of TransUnion Canada.
The TransUnion survey of 1,010 consumers in Canada reveals that 88 per cent of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39 per cent) are uncertain about the importance or benefits of paying off an increasingly greater amount.
Source: http://www.canadianrealestatemagazine.ca/market-update/credit-card-management-linked-to-mortgage-delinquencies-221621.aspx
Thursday, February 2, 2017
New development in market popular among investors
Is this traditional student rental market ready for luxury homes?
St. Catharines, Ontario, is growing, according to a developer with high hopes for the city.
New projects, such as Union Waterfront, a development planned for the Port Dalhousie neighbourhood, is a 19 storey condo and hotel that aims to “change the face of Niagara realty.”
A lofty goal.
Arbour Vale, a new by Pinewood Niagara Builders, will include luxury condos, townhomes, and single-family residences.
“We’re bringing a new kind of look and feel to the cityscape,” says Cindi Loforti-Lepp, representative for Arbour Vale. “This development is an elegant lifestyle community more akin to what you would see near the waterfront in Oakville or Burlington.”
St. Catharines saw its average home price jump 16.4% year-over-year last year and its sales increase 15.3%.
So interest is certainly building in the small market.
“We’ve had a lot of interest so far, which is a good sign that St. Catharines is ready for and excited about this kind of lifestyle,” Loforti-Lepp said.
The Arbour Vale home will range in price from $565,888 to $778,888. The community is set for completion later this year.
It remains to be seen what sort of appetite investors will have for pricier homes in what has, for the most part, been a market geared toward affordable older homes and student rentals.
Source: http://www.canadianrealestatemagazine.ca/news/new-development-in-market-popular-among-investors-220352.aspx
St. Catharines, Ontario, is growing, according to a developer with high hopes for the city.
New projects, such as Union Waterfront, a development planned for the Port Dalhousie neighbourhood, is a 19 storey condo and hotel that aims to “change the face of Niagara realty.”
A lofty goal.
Arbour Vale, a new by Pinewood Niagara Builders, will include luxury condos, townhomes, and single-family residences.
“We’re bringing a new kind of look and feel to the cityscape,” says Cindi Loforti-Lepp, representative for Arbour Vale. “This development is an elegant lifestyle community more akin to what you would see near the waterfront in Oakville or Burlington.”
St. Catharines saw its average home price jump 16.4% year-over-year last year and its sales increase 15.3%.
So interest is certainly building in the small market.
“We’ve had a lot of interest so far, which is a good sign that St. Catharines is ready for and excited about this kind of lifestyle,” Loforti-Lepp said.
The Arbour Vale home will range in price from $565,888 to $778,888. The community is set for completion later this year.
It remains to be seen what sort of appetite investors will have for pricier homes in what has, for the most part, been a market geared toward affordable older homes and student rentals.
Source: http://www.canadianrealestatemagazine.ca/news/new-development-in-market-popular-among-investors-220352.aspx
Monday, January 23, 2017
Trump effect: US searches for Canadian real estate surge
There has been a surge of interest in Canadian real estate from south of the border following Donald Trump’s election as US president.
A report from real estate brokerage Royal LePage reveals that searches on its portal from the US increased 329 per cent on the day after the election and in the week following there was a 210 per cent year-over-year rise.
For the whole of November, American’s eyeing a move to Canada increased more than 70 per cent compared to the same month of 2015 and there was a 40 per cent increase for the whole of the fourth quarter.
"Always a desirable destination for migrants, Canada's attractiveness as a country for international relocation has surged this decade," said Phil Soper, president and chief executive officer, Royal LePage. "The United States was already a top source for immigration into Canada, and now in the period following the recent U.S. election, we are witnessing a material bump in American interest in Canadian real estate."
Ontario, British Columbia and Quebec are the most searched regions for potential homebuyers from the US. While some of the search increase is for commercial property, residential searches accounted for three quarters of the total.
"Given America's vast population, even a fractional increase in the number of households following through on this initial interest and successfully completing the demanding process of emigrating to Canada could drive a material increase in the number of home-buyers from south of the border," concluded Soper. "Our federal government is seriously considering increasing the quota of new Canadians welcomed from abroad, and with the high value of the U.S. dollar increasing Americans' purchasing power, we may be seeing more moving trucks with U.S. license plates in our future."
Source: http://www.canadianrealestatemagazine.ca/market-update/trump-effect-us-searches-for-canadian-real-estate-surge-219919.aspx
A report from real estate brokerage Royal LePage reveals that searches on its portal from the US increased 329 per cent on the day after the election and in the week following there was a 210 per cent year-over-year rise.
For the whole of November, American’s eyeing a move to Canada increased more than 70 per cent compared to the same month of 2015 and there was a 40 per cent increase for the whole of the fourth quarter.
"Always a desirable destination for migrants, Canada's attractiveness as a country for international relocation has surged this decade," said Phil Soper, president and chief executive officer, Royal LePage. "The United States was already a top source for immigration into Canada, and now in the period following the recent U.S. election, we are witnessing a material bump in American interest in Canadian real estate."
Ontario, British Columbia and Quebec are the most searched regions for potential homebuyers from the US. While some of the search increase is for commercial property, residential searches accounted for three quarters of the total.
"Given America's vast population, even a fractional increase in the number of households following through on this initial interest and successfully completing the demanding process of emigrating to Canada could drive a material increase in the number of home-buyers from south of the border," concluded Soper. "Our federal government is seriously considering increasing the quota of new Canadians welcomed from abroad, and with the high value of the U.S. dollar increasing Americans' purchasing power, we may be seeing more moving trucks with U.S. license plates in our future."
Source: http://www.canadianrealestatemagazine.ca/market-update/trump-effect-us-searches-for-canadian-real-estate-surge-219919.aspx
Monday, January 16, 2017
Consumers more accepting of mortgage robo-advisors
The disruptive influence of technology is highlighted by a new survey which shows growing acceptance of so-called robo-advisors.
The global poll which includes the US and Canada, by professional services firm Accenture, reveals that seven out of ten consumers welcome the idea of using automated advice services but there are still important roles for humans!
Robo-advice is most accepted for investments (78 per cent), choosing insurance products (74 per cent) or a bank account (71 per cent) but for mortgage advice, most respondents (61 per cent) said they would prefer to deal with a human advisor.
“While financial institutions may expect to benefit from internal cost reduction by providing customers with a ‘robo’ option, our research found that consumers also expect first-class human interaction,” said Piercarlo Gera, senior managing director, Accenture Financial Service.
As well as for mortgages, most consumers would also prefer to deal with a person for complaints (68 per cent).
The survey also reveals that consumers are becoming more open to buying financial products from non-traditional outlets with almost a third saying they would consider getting financial advice from Google, Facebook or Amazon.
While the Canadian responses show that 56 per cent are willing to use a robo-advisor, Gera says the future appears to be a hybrid model.
“Successful financial services firms will therefore need a "phygital" strategy that seamlessly integrates technology, branch networks and staff to provide a service that combines physical and digital capabilities and gives consumers a choice," he concluded.
http://www.canadianrealestatemagazine.ca/market-update/consumers-more-accepting-of-mortgage-roboadvisors-219514.aspx
The global poll which includes the US and Canada, by professional services firm Accenture, reveals that seven out of ten consumers welcome the idea of using automated advice services but there are still important roles for humans!
Robo-advice is most accepted for investments (78 per cent), choosing insurance products (74 per cent) or a bank account (71 per cent) but for mortgage advice, most respondents (61 per cent) said they would prefer to deal with a human advisor.
“While financial institutions may expect to benefit from internal cost reduction by providing customers with a ‘robo’ option, our research found that consumers also expect first-class human interaction,” said Piercarlo Gera, senior managing director, Accenture Financial Service.
As well as for mortgages, most consumers would also prefer to deal with a person for complaints (68 per cent).
The survey also reveals that consumers are becoming more open to buying financial products from non-traditional outlets with almost a third saying they would consider getting financial advice from Google, Facebook or Amazon.
While the Canadian responses show that 56 per cent are willing to use a robo-advisor, Gera says the future appears to be a hybrid model.
“Successful financial services firms will therefore need a "phygital" strategy that seamlessly integrates technology, branch networks and staff to provide a service that combines physical and digital capabilities and gives consumers a choice," he concluded.
http://www.canadianrealestatemagazine.ca/market-update/consumers-more-accepting-of-mortgage-roboadvisors-219514.aspx
Thursday, January 12, 2017
Stricter Chinese money rules might stifle foreigner influx into Canada
The Chinese government’s new, stricter rules on money exchange may have a domino effect on the foreigner-dependent Canadian housing sector.
Beginning this month, mainland authorities will now be requiring documents providing details on the reasons for yuan conversion, and when the money will be used. Improper use of the converted funds (e.g. the purchase of a residential property) will entail stiff penalties such as being banned from exchanging money for a significant duration, The Globe and Mail reported.
The stricter guidelines represent the culmination of Chinese authorities’ months-long effort to moderate the outbound flow of funds, which experts said has massively depleted the government’s foreign reserves over the past few years.
Economist Andy Xie warned that the regulatory revision will lead to a “sharp” decline in housing markets dependent on foreign capital like Canada—a dangerous proposition when one of the nation’s erstwhile hottest cities (Vancouver) has already reached peak sales volume and prices in spring 2016.
However, Real Estate Board of Greater Vancouver president Dan Morrison said that it will still take some time until the effects of this development become apparent.
“There are so many factors in the housing market,” Morrison stated. “Vancouver is not a homogeneous market. Some people want to point to one easy problem or one easy solution, and there is no such thing.”
http://www.canadianrealestatemagazine.ca/news/stricter-chinese-money-rules-might-stifle-foreigner-influx-into-canada-219382.aspx
Beginning this month, mainland authorities will now be requiring documents providing details on the reasons for yuan conversion, and when the money will be used. Improper use of the converted funds (e.g. the purchase of a residential property) will entail stiff penalties such as being banned from exchanging money for a significant duration, The Globe and Mail reported.
The stricter guidelines represent the culmination of Chinese authorities’ months-long effort to moderate the outbound flow of funds, which experts said has massively depleted the government’s foreign reserves over the past few years.
Economist Andy Xie warned that the regulatory revision will lead to a “sharp” decline in housing markets dependent on foreign capital like Canada—a dangerous proposition when one of the nation’s erstwhile hottest cities (Vancouver) has already reached peak sales volume and prices in spring 2016.
However, Real Estate Board of Greater Vancouver president Dan Morrison said that it will still take some time until the effects of this development become apparent.
“There are so many factors in the housing market,” Morrison stated. “Vancouver is not a homogeneous market. Some people want to point to one easy problem or one easy solution, and there is no such thing.”
http://www.canadianrealestatemagazine.ca/news/stricter-chinese-money-rules-might-stifle-foreigner-influx-into-canada-219382.aspx
Monday, January 9, 2017
Kitchener-Waterloo housing market has unprecedented year
Sales of homes in the Kitchener-Waterloo region in 2016 were up by 1,000 compared to the previous year.
The 18.1 per cent increase meant that 6,655 homes were sold through the MLS system of the Kitchener-Waterloo Association of Realtors while the total dollar volume was up 30.9 per cent to $2,578,176,468.
“2016 was marked by unrelenting demand for homes, in the face of fewer homes being put on the market,” said James Craig, President of the KWAR.
The average sales price of all residential properties sold in 2016 increased 10.8 per cent to $387,404 in comparison to 2015.
And for the year ahead?
“Mortgage rates remain low, inducing more consumers to get into the market. Home prices remain affordable when compared to the average GTA prices,” said Craig.
The challenge for the market, he says is that inventory remains low as many would-be sellers are staying in their homes longer with some put off moving up due to the hot market.
“What I hope to see is more balance returning to the market, because I sure don’t see the appetite for home ownership in Waterloo region letting up anytime soon,” Craig concluded.
Source: http://www.canadianrealestatemagazine.ca/market-update/kitchenerwaterloo-housing-market-has-unprecedented-year-219204.aspx
The 18.1 per cent increase meant that 6,655 homes were sold through the MLS system of the Kitchener-Waterloo Association of Realtors while the total dollar volume was up 30.9 per cent to $2,578,176,468.
“2016 was marked by unrelenting demand for homes, in the face of fewer homes being put on the market,” said James Craig, President of the KWAR.
The average sales price of all residential properties sold in 2016 increased 10.8 per cent to $387,404 in comparison to 2015.
And for the year ahead?
“Mortgage rates remain low, inducing more consumers to get into the market. Home prices remain affordable when compared to the average GTA prices,” said Craig.
The challenge for the market, he says is that inventory remains low as many would-be sellers are staying in their homes longer with some put off moving up due to the hot market.
“What I hope to see is more balance returning to the market, because I sure don’t see the appetite for home ownership in Waterloo region letting up anytime soon,” Craig concluded.
Source: http://www.canadianrealestatemagazine.ca/market-update/kitchenerwaterloo-housing-market-has-unprecedented-year-219204.aspx
Subscribe to:
Posts (Atom)