21 Feb

BC Budget 2018 at a Glance

General

Posted by: Angela Calla

 

On Tuesday Feb. 20th, the NDP government released B.C.’s 2018 budget. Below are some of the highlights as it pertains to housing and real estate industry.

  • Creating a new speculation tax for vacant homes. The tax will be two per cent of the assessed value of properties in 2019.
  • Increasing the foreign buyers tax from 15 to 20 per cent, and expanding the tax to properties in the Fraser Valley, Kamloops, Kelowna and Greater Victoria.
  • Increasing the property transfer tax and the school tax on the wealthiest homeowners who buy or own homes valued higher than $3 million.
  • Strengthening tax administrators’ audit and enforcement powers to help close information gaps and ensure tax compliance
  1. Moving to stop tax evasion in pre-sale condo reassignments.
  2. taking action to end hidden ownership.
  3. strengthen provincial auditing and enforcement powers.

Some other items in the budget include:

  • Introducing a new child care benefit that will reduce child care costs by up to $1,250 per month per child for 86,000 B.C. families per year by 2020/21.
  • Providing up to $350 per month directly to licenced child care providers to reduce fees for an estimated 50,000 families per year by 2020/21.
  • Helping to build 114,000 affordable rental, non-profit, co-op and owner-purchase housing units through partnerships.
  • Eliminating MSP premiums by Jan. 1, 2020, saving individuals up to $900 a year, and families up to $1,800 a year.
  • Freezing fares on all major BC Ferries routes, reducing fares on non-major routes and fully restoring the Monday to Thursday seniors passenger fare discount.

 

Read the details of the budget here:  BC Budget 2018

The Angela Calla Mortgage Team will work with you personally to ensure you get the best mortgage options contact us directly at 604-802-3983 or callateam@dominionlending.ca it’s never too early or too late to start planning to position yourself best in the market.

 

6 Feb

First Time Home Buyer’s Guide

General

Posted by: Angela Calla

Benefits of Home Ownership?

Pride of Home Ownership
Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results, will be to your benefit. Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.

Appreciation
In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in Canada your principal residence is exempt from capital gains taxes.

Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, sending your kids to university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?

Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve and sell. Their home is a safe haven for investment.

Are You Ready to Buy a Home?

First – do you have the financial resources? You should have five percent of the purchase price of a home for the down payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your savings? If not, buying a home should be on your radar.

Second – do you expect to stay in your new home for some time? Moving can be expensive and you will want to build some equity before having to relocate. Your job and home life should be stable.

What Can You Afford?

If you haven’t already gone through the mortgage pre-qualification process, you will need to meet with a mortgage broker- us at callateam@dominionlending.ca
We will establish how much of a mortgage you will qualify for. Mortgage rates vary considerably and it is paramount that they shop around for the best rate, terms and options to protect your credit score opposed to doing it on your own.

Our Mortgage Calculator will help you determine what monthly mortgage payment and the maximum mortgage you can manage. Note: if you are buying a condo, the amount of your monthly assessment has a direct impact on how much you can afford to spend on your mortgage.

First time homebuyers may want to take advantage of the federal government’s Home Buyers’ Plan. Under this plan, you may use up to $25,000 of your RRSP towards the purchase of a home. The money is tax-free as long as you pay it back in the next 15 years. Ask your Licensed Real Estate Agent for details.

Questions To Ask When Assessing Home Features
Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?
Do you plan to have children? Downtown or suburbs? Proximity to recreation or work.
Do you need a substantial backyard? Pets?
Is there adequate storage space?
Will any remodeling be required to make the home move-in ready for you?
What service providers (cable, Internet, telephone, Satelite) are available in the area, and is the house completely wired for each? Can you hear me now – how good is the cell phone reception?
How much are the yearly property taxes?
How much do utilities run each month? Does the house use gas or electric for the furnace, water heater, and appliances?
How old are the major appliances, and which are included with the house?
Have there been any major repairs to the house, and if so, when were they completed? For example, how old is the roof? Has water ever damaged the basement or foundation?
Ever had problems with insects, such as termites and spiders, or rodents?
Older homes need to be carefully examined – Windows may need caulking or new sashes, bathroom tiles may need grouting, home may need rewiring (planning on a hot tub or sauna?), a new hot water heater, or a new furnace.

Location, Location, Location
How far will you be commuting and what is the traffic like? Factor in cost of fuel.
Where will your children attend school and how will they commute?
Are there recreational facilities and parks close by?
Are you close to family and friends?
Is safety or high crime an issue?
Is the property close to an obstacle or negative influence? (i.e. an apartment building, shopping centre, school, radio tower, power lines, LRT or railroad track, highway, airport or commercial project).
Access to schools, work, recreation, shopping centres, public transportation, cultural attractions, libraries, churches and hospitals
Adjacent undeveloped land – what is proposed for this or other green space?
Heavy traffic can be noise nuisance and hazard for children
Distance from the unit to amenities, parking, walkways, roads, public transit
Does the neighborhood reflect positively on the value of the condo and your lifestyle choice?
Does this neighborhood, for any reason, have a poor reputation?
Is the future economic climate for the area good? Are businesses moving in? Is there government investment?
Are people moving in or out of the neighborhood? What is their age, income level, family size?
Are there plans for this neighborhood that you may be unaware of (i.e. a future highway, a commercial development or a new housing development) that will provide competition on resale?

Noise and Privacy
Proximity to highways, driveways, parking lots, playgrounds, trains.
Proximity to elevators, garbage disposal, fire exits, heating and air conditioners.
How well is the building soundproofed.
Visit at different times/weekends to check noise levels and activity.

Home buying is an easy process when you are working with the right Real Estate agent. I’m here to help answer any questions you have an help walk you through the process with a free consultation.

Robert Boies Royal Le Page 604-341-3009
 

Questions on the best mortgage for you? Contact The Angela Calla Mortgage Team to help you personally 604-802-3983 callateam@dominionlending.ca