Glen Godlonton Calgary Real Estate

Alberta will continue to drive Canada’s economy as the federal government fast-tracks major energy projects and immigration reform, Finance Minister Jim Flaherty says.

In a speech to Edmonton’s Chamber of Commerce on Thursday, Mr. Flaherty praised the Alberta economy as a sign of the shifting balance of power in Canada.

The comments come two weeks after he slammed the government of his home province, saying: “Ontario’s spending mismanagement is a problem for the entire country.” In the case of free-spending, rich, debt-free Alberta, however, he strikes a different tune.

“Canada has a brilliant future. Alberta is vital, and growth in Alberta is vital, for Canada’s jobs growth and prosperity in the future,” the minister said, later adding: “In many ways, Alberta is the centre of the Canadian economy today.”

In listing government transfer programs, he singled out equalization payments, again firing a shot across Ontario’s bow. “Of course, Alberta doesn’t get to participate in [equalization]. We have Ontario and Quebec now receiving equalization, which was never the intention of the creators of equalization, but there it is,” Mr. Flaherty said.

Mr. Flaherty’s speech was pinned to last month’s federal budget, highlighting initiatives he believes will support Alberta’s boom. In particular, he cited a decision to speed up environmental assessments for major energy projects – but avoided naming any. (Enbridge’s proposed Northern Gateway pipeline to the B.C. coast from Alberta is currently the subject of controversy over its impact.)

“This is very important for resource development in Canada,” he said, adding that he expects opposition from environmental groups who say comprehensive reviews are required.

“But we have to be realistic. If we’re going to have jobs growth and prosperity in Canada, then on major economic projects we need to make sure we can move them forward – not by disrespecting environmental protection process, not at all, but making sure there are some rational time limits to the processes,” he said.

Mr. Flaherty also emphasized his government’s support of “targeted immigration” meant to ease labour crunches in booming provinces.

Afterwards, he was asked how the 12,000 job cuts that he has said will be the net result of the federal budget will affect front-line services, such as border security and food inspection. He had no details, but said he’s confident “all the necessary functions will continue and we’ll be adequately staffed.”

He appeared with fellow MPs Laurie Hawn and James Rajotte. Asked about Alberta’s provincial election campaign, Mr. Flaherty laughed. “No, I have no comment on that at all.”

Residents at some new condo developments in Toronto will be guinea pigs for a new type of high-tech lifestyle in which their home is controlled by an iPad.

The lights are programmed to automatically come on when they step in the door and their favourite music plays throughout the condo. Or they can remotely have everything ready for when they get home by tapping into an app that can turn everything on and off from anywhere in the world — via the Internet. The thermostat can be adjusted from work so the temperature is just right when they arrive home, or they can use the same app from bed to crank up the A/C or heat. And when sitting down to watch TV or a movie, a single tap of a button automatically starts a sequence that dims the lights, has the curtains close themselves and kicks their home entertainment system into gear.

“Toronto’s very, very competitive when it comes to the condominium field so clearly we would like to have things that add value to the home purchase,” said Jim Ritchie, senior vice-president of sales and marketing for Tridel, Canada’s largest residential condominium developer.

The company partnered with Cisco to create a one-of-a-kind penthouse suite — which is selling for almost $800,000 — in one of its new Toronto buildings, called Reve, just outside the city’s downtown core. It’s decked out with all the latest high-tech bells and whistles and Tridel will see how potential buyers respond to those cutting-edge extras and consider them for future developments.

All the features can be controlled by iPad or iPhone and with one of the touchscreen panels mounted in the unit.

“I think the consumers are going to like what they see here,” Ritchie said.

“It’s going to allow us to get feedback from consumers in terms of what they like and really want, and things they wouldn’t have any use for at all.”

The two companies also struck a deal for Cisco to completely wire one of Tridel’s next Toronto buildings so it can offer high-speed Internet access and other high-tech features to residents.

“It really stems from the idea that everyone is carrying more and more technology around with them and becoming more accustomed to using technology to be more productive and change our experience and everything we do,” said Rick Huijbregts, vice-president of Cisco’s Smart+Connected Communities division.

“We’re really looking at new and innovative ways to deploy technologies in a way that doesn’t feel in your face but it becomes part of the design and part of the space.”

Across town, builder Urbancorp is promoting three developments in Toronto’s east end that are being sold with an iPad and a similar high-tech setup as standard features for each unit.

“Because technology right now is improving day to day we wanted to be part of that and make it a convenience for the homeowners,” said Urbancorp’s director of development Ann Lam.

“We’d like to offer something that’s different.”

But that fancy upgrade isn’t cheap. According to Urbancorp’s website, the properties sell for between $620,000 and $990,000 and Lam estimated the cost of the amenity is around $25,000 per unit.

Consumers can get their own smart-home setup installed, although it's a lot easier and cheaper if the work is done during construction, said Greg Scott of Phand Corporation, which is currently doing similar work on a number of luxury townhouses in Oakville, Ont.

While there's a lot of new wireless technology available, a well-designed system runs a lot better if it's connected by wires hidden behind walls, Scott said. Some options — like in-ceiling or in-wall speakers — require that wires be run, which can be a messy job in a finished home.

The company has been installing automated home systems for years and has seen the technology associated with it evolve. But the release of the iPad in 2010 really sparked a wave of change, Scott said.

“The iPad changed things dramatically. There were things like (on-wall) touch screens before, but then the iPad came out at a cheaper price point, and everybody's familiar with it, so that kinda changed the direction for a lot of companies.”

He said the average system he installs is around $10,000 to $15,000 although he's currently working on one that was priced out at $40,000.

Ritchie said there probably isn’t huge demand for these features today, but he believes that will change. He points to how the industry quickly started embracing environmentally friendly features, even though the demand wasn’t there just a few years ago.

“In 2004 and 2005 I can tell you people were not coming into our showrooms asking for green, they didn’t know anything about it, so we just demonstrated it and brought those products in. There was very little pickup in terms of people buying ... but they liked it,” he said.

“People are now demanding it.”

Extra Items a Canadian Condominium Shopper Needs to Keep in Mind

Often in major urban centres, particularly in Toronto, where condo prices have seen as much as a seven to nine per cent increase in line with demand, condominiums are the more cost and lifestyle efficient choice for on-the-go cosmos or first-time buyers. Condos are usually much cheaper than a detached single-family dwelling and provide conveniences such as snow removal, lawn mowing, external upkeep and recreational common areas.

However, condos also come equipped with one added cost that detached homes, or duplexes, do not - Condo fees. In Toronto, these average 55 cents per square foot, or roughly $550 per 1,000 sq. ft. In some circumstances, these fees are nearly as high as the cost to rent an apartment of virtually the same size.

Before you put in your offer on a condo, it is essential that you determine what these fees amount to; if they will affect your financing and what they give you in return. A portion of the fees should be allocated to a reserve fund for shared area repairs, such as elevator break down and a portion to cover a service such as: water, waste or even cable.

You and your realtor need to do your homework on the condo association to which you are going to be bound to. Ensure that they are financially solvent and have been accumulating reserve funds; otherwise when it comes time to make a major repair or renovation to the property, your door could be knocked on.

Also keep in mind that 50% of your expected condo fees will be tacked onto your monthly expenses when the amount of financing you qualify for is being determined. Earlier this year it was under consideration that that figure be increased to incorporate 100% of the fees.

The best way to ensure that you can afford the condo and the fees it comes with is by using a mortgage qualification calculator. If you estimate fees to be $150/month and really they turn out to be $500, you may not qualify for the financing you need to purchase the condo you are looking at. That’s why it is in your best interest to ascertain these fees so that your mortgage pre-approval numbers are as accurate as possible and you are not disappointed to discover that your dream condo does not really fit within your budget.

As with any home purchase, before you commit to the condo in mind have the property inspected and your proposed contract with the condo association reviewed before you sign anything binding. Condos can make for a good investment property later down the road and are a nice transition between renting and home ownership. If the fees and association have you discouraged, consider adding semi-detached townhouses or duplexes to your listings search as well.

This article was provided by CanEquity.com.

http://blog.zoocasa.com/2011/04/purchasing-condo-in-canada.html?utm_source=maynewsletter&utm_medium=article&utm_campaign=articlebycanequity

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Source: Areahub.ca 

One of the most common and frustrating issues for both real estate industry members and lawyers in closing residential real estate transactions is a dispute over the condition of the property on Completion Day. Rarely are buyers entirely happy with the condition and cleanliness of the property when they take possession. While occasionally their concerns are valid, in most cases they are not. In any event, there is not much that lawyers can do to assist buyers in this regard. This column will explain why the Purchase Contract is worded the way it is and what buyers’ representatives can do to protect their clients where specific concerns are identified when writing up the offer.

1. The seller’s lawyer may be able to convince the seller to offer some compensation to the buyer, repair the problem or agree to a monetary holdback until the problem is resolved; or
2. The seller will refuse to take responsibility for the problem, but at least it will be documented that the problem existed at the time of possession which will help the buyers if they choose to prosecute a small claims action for recovery of damages.

By: Trulia.com, April 6, 2011 

Entire feature films, websites and hour-long cable specials have been devoted to debunking  urban legends, those modern fables that circulate at the speed of the internet. And real estate is not immune; modern-day myths of easy-peasy seller financing, distressed sellers practically throwing their properties at buyers, and cosmetic fixers that can be had for pennies are just that - fairy tales which, if believed, can result in some not-so-happy endings.

The real deal is that real estate is much more affordable than it used to be, but the barriers to entry are higher, and the days in which you could get something for nothing are over.  Here are five real estate and mortgage urban legends, and the truth which lies beneath.

Urban Legend #1: Got bad credit? Get seller financing.  Does seller financing exist?  Of course.  Is it as easy to get - or desirable - as they make it seem in the infomercials? Not even close.

Here's the real deal: most sellers who have a mortgage they obtained in the last 10 years or so also have a due on sale clause which requires them to pay it off when they sell the property. Financing the sale themselves, vs. requiring the buyer to obtain mortgage or other financing to pay for the property, prevents them from having the cash to pay their mortgage off, as required.  And the vast majority of those who don’t have a mortgage of recent vintage need the proceeds from the sale of their homes to buy their next home or invest in their next property. 

What’s more, even the few sellers who don’t need the cash often don’t want to take on the long-term risk and hassle involved with having to collect payments from a buyer for 10, 15, or 30 years.  The sellers who can and will agree to seller financing usually want a premium price and interest rate for it - and the smart ones will require some type of credit check and a deeper down payment than a traditional lender.

And seller financing, as sweet as it sounds, poses risks for buyers, too.  If the seller keeps a bank mortgage on the property and fails to make the payment, the seller-financed buyer could end up losing the home they’ve paid for to foreclosure. Best targets for seller-financing are investor sellers who are looking to avoid capital gains, and best practice is to get a local real estate attorney involved in drafting and recording the transfer and financing documentation.

Urban Legend # 2: Buyers save big bucks on cosmetic fixers.  Sellers aren’t stupid - and neither are their agents.  There might have been a day and time in which you could find listings that were deeply discounted because they needed a little cosmetic refresh.  But those days are long gone - even in today’s down market, sellers expect to invest a little cash into paint and carpet to stage and spruce up their biggest asset and get as much as humanly possible for it.  Today’s sellers also know that homes not  in tip-top shape may not sell at all these days, so they go to great lengths to do make their homes shine.  (And those who can’t afford to aren’t slashing tens of thousands off their homes’ list prices, though some will offer buyers a credit at closing.)

That’s not to say you can’t get a discount on a place that needs some work.  But the meatiest discounts are on the places that need the most work; roof leaks, old windows and laundry-list long pest inspection reports are much more likely to get you a big price break than scuffed walls and grungy carpeting on a home in otherwise sound condition.

Urban Legend #3: 100 percent financing for first-time buyers.  Most of the national first-time buyer programs are mere figments of our collective mortgage memory.  But during the subprime mortgage era, 100 percent financing was available to pretty much everyone, not just first-timers.  And the post-bubble first-time buyer programs tended to be tax credits that could defray some of the up front investment required to buy a home, rather than zero-down home loans.  

FHA loans, which are extremely popular with first-time buyers, are available to any buyer who can qualify, whether or not they have owned homes before or own one now.  Most of the state and local first-time buyer programs that still exist involve some level of down payment or closing cost assistance, but the vast majority also require that the buyer put some of their own cash into the transaction. The prevailing theory today is that homeowners who have put their own hard-earned cash into their homes are less likely to walk away from it later, whether or not they are first-time buyers.  It has also become clear that the financial management skills and discipline it takes to save up for a down payment or closing costs are skills and habits that stand prospective buyers in good stead for the rest of their lifetimes as homeowners.  

Long story short, while virgin homebuyers can and should seek out the assistance programs available to them (local real estate and mortgage pros often know the ins and outs), they should also tuck their pennies away and expect to have to put some of their own financial skin in the game.

Urban Legend #4: Nearly free foreclosures. We've all heard the line that banks don't want to be in the business of owning homes.  That may be true, but they are in that business, whether or not they want to be.  As a result, they're not giving houses away at pennies on the dollar.  In fact, bank-owned homes, as a rule, must be sold at as close as possible to their fair market value. Banks and their Wall Street mortgage investors do this by exposing the property fully to the market, rarely accepting lowball offers, and only lowering list prices in fairly small increments after a listing fails to sell after 60 or 90 days (plus) at the pre-reduction price.

While foreclosed homes do sell for less, on average, than their "regular" sale counterparts, they are also often in worse condition.  And banks are virtually always less negotiable on pricing, repairs and other terms than individual sellers.  The fact of the matter is that some of the best deals on today's market are to be had via negotiations with realistic owners of non-distressed properties who are ready, willing and able to make a deal.

Urban Legend #5: Distressed owners who will sign their home over to you, gratis. This one is fantasy of the highest level.  First off, very few assumable home loans even exist anymore; most mortgage are due on sale, which means that new buyers have to qualify for and secure their own loans.  Secondly, many mortgages that ARE assumable have much higher interest rates than today's home loans. Third, most homeowners who are in a distressed position on their home are in that position because their home has declined in value and they now owe more on it than it's worth, which stops them from pulling off a traditional sale or refinancing it at today's lower rate. 

Ask yourself: why would you, a buyer, want to assume a mortgage balance vastly greater than the property is worth, even if you could?  It's just not worth it, even if you think you're getting a shortcut around the mortgage qualifying rigmarole.

Add to that the fact that many states have consumer protection laws dramatically limiting the sort of 'bailout' that is even legal to propose to a homeowner who is in some stage of the foreclosure process. In addition, many homeowners who have received foreclosure notices are in the process of trying to work out their distress with their lender or staying put without making payments as long as possible before losing their homes.  These folks might be slightly miffed at your intrusion, to put it politely, if you ring them up, send them a note or knock on their door trying to pitch yourself (and your signature) as their mortgage distress solution. 

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Four years into the housing crisis, myths about foreclosure still litter the minds of even the smartest of real estate consumers. When it comes to matters as high stakes as your home, confusion can cost you thousands - or even your home. Whether you’re a buyer looking at foreclosures, a homeowner struggling to keep your home or a seller concerned making sure your home can compete with the foreclosed homes on your block, these foreclosure myths are prime for the busting, with no further ado.

Myth #1:  Foreclosure happens fast. With unemployment and underemployment still affecting nearly 1 in every 4 Americans, no one is immune from fears that a pink slip might quickly turn into a foreclosure notice.  According to NeighborWorks America, nearly 60 percent of families seeking foreclosure counseling cited a lost job or cut wages as the reason they were facing foreclosure. 

While the Obama Administration's Home Affordable Programs haven't been nearly as effective as predicted in actually preventing foreclosures, they have had the effect of extending the foreclosure process for many families.   Even though the legal process of foreclosure can happen in as few as 6 months in most states, it is currently taking much longer for the average foreclosure to get to completion.  Recently, JP Morgan Chase revealed that their average borrower who loses a home to foreclosure has not made any payments in 14 months nationwide; 22 months in FLorida and 26 months in New York.

To be sure, some see this as a good, others view it as unnecessarily dragging out the overall market's recovery. Many insiders will point out that these delays in foreclosure may be calculated to save the banks the costs of owning and maintaining foreclosed homes, not to help homeowners.  In any event, the fact that foreclosure does not happen nearly as fast, in many cases, as expected does give families who are temporarily down on their luck some extra time to try to get back on their feet and save their homes.

Myth #2:  Buyers can’t get clear title or title insurance on foreclosed homes.  When the foreclosure robo-signing scandal first hit, there was widespread concern that buyers would not be able to get clear title on foreclosed homes, because the former foreclosed owners might be able to come get their homes back when the improprieties in the bank's foreclosure documentation processes came fully to light.  At the same time, several of the country's largest title insurance companies publicly balked at issuing policies on bank-owned homes until the issue was resolved.  At this point, the banks claim they have revamped their processes, and all banks have stated that they have found not a single borrower whose home was repossessed without them having missed the requisite number of mortgage payments.  Nevertheless, a number of governmental investigations are still in progress.

The fact is, buyers of bank-owned properties in nearly every jurisdiction are protected from later title attacks by foreclosed homeowners by the bona fide purchaser rule, under which courts would prefer to simply award cash damages to be paid by the culpable bank to a wrongfully foreclosed-on homeowner, rather than reversing the sale or ownership to the new, innocent buyer.  Additionally, the title insurers have now changed their tune and restarted issuing insurance policies on bank-owned homes which protect buyers' interests, after working with the banks for them to take responsibility in the event a former homeowner prevails in a wrongful foreclosure suit. 

While there are still many intricacies of title to be resolved for foreclosure buyers who purchase homes at trustee sales and auctions, or for cash buyers who often went without title insurance in the past, on the average, Trulia-listed, bank-owned property purchased with an average mortgage and title insurance, the chances a buyer's title will later be successfully challenged by the foreclosed homeowner on the basis of robo-signing?  Exceedingly slim.

Myth #3:  Buyers should wait for the shadow inventory to be released.  Many a buyer, discouraged with the homes they see on the the form in their price range, has decided to sit still and wait for the banks to release for sale what is called their "shadow inventory" - rumored to be anywhere from 4 to nearly 6 million homes that have already been foreclosed, but not listed for sale, or will be foreclosed in the near future. The fact is, to the extent that the banks have acknowledged the existence of a pool of homes they own but are not selling, they have expressed that their reasoning for holding the homes off the market is to avoid flooding the market and driving home values down any further.  For that reason, buyers should not expect to see a massive influx of these shadow homes onto the market anytime soon - if ever. 

The banks' current modus operandi is that as they sell a home, the replace it with another home in that market - if they sell 50 homes in a town that month, they'll put another 50 on the next.  So, don't hold your breath waiting for a fabulous new flood of homes.  Instead, set up a Trulia alert to notify you when homes that fit your search criteria come on the market, and be ready to call your agent and go visit any and every one that looks like it might be a good fit.

Myth #4:  If you’re looking for a deal, you’re looking for a foreclosure.  Despite what they may say, no buyer’s heart's fondest desire is to buy a foreclosure.  But almost every buyer dreams of buying a great home - and getting a great deal on it.  Many people think that to get a great value on their home on today's market, it means they must buy a foreclosure.  As a result, the value and other advantages of buying an individually-owned home on today's market are frequently overlooked.  Individual sellers with homes on the market right now are generally quite motivated, and understand that their homes are competing with discounted short sales and foreclosed homes.  Many of these sellers are slashing prices in an effort to get them sold - the most recent Trulia Price Reduction Report revealed that 27 percent of homes on the market across the country have had at least one price reduction.  Now that's what I call a sale!

Further, individual owners are often much more negotiable on a wide range of contract terms than a bank which owns a foreclosed home.  You can work with non-bank owners on things like repairs, closing dates, choice of escrow provider, closing costs and even included personal property much more flexibly than you can when the bank is on the other side of the bargaining table.  On top of that, many individually-owned homes are in pristine, move-in condition; that is much rarer with foreclosures.  So, don't underestimate the value of the deal you might be able to get on a non-foreclosed home.  Just get clear on what you can afford and look at all the homes that are available in that price range, without discriminating against non-foreclosures.

Myth #5: Having a foreclosure on your credit history means it'll take years and years before you can buy again.  One of the most Frequently Asked Questions in the Trulia Voices Community by homeowners who are facing or have just lost a home through foreclosure is how long it will take before they'll be able to buy again.  Until recently, the standard wisdom was that 5 years, minimum, would have to have elapsed between the foreclosure and the new home purchase.  Now, though, borrowers can obtain an FHA loan with the low, 3.5 minimum down payment requirement as soon as 3 years following a foreclosure.  To do so, though, all your other ducks must be in a row. 

Post-foreclosure buyers need a credit score of 620-640 to qualify for an FHA loan; higher for a non-FHA loan - given that the foreclosure itself usually dings anywhere from 100-150 points off the credit score (not necessarily counting a full year or more of pre-foreclosure missed payments), former homeowners who want to buy again need to ensure they have no other late payments or credit dings after they lose thier home.  You must have clean credit with no derogatory marks like late credit card payments following the foreclosure,  and you may also be required to document 12 to 24 months straight of on-time rent payments after the foreclosure. 

Further, the bank may impose a lower debt-to-income ratio on post-foreclosure borrowers than on borrowers who have not had a foreclosure, in an effort to keep your mortgage payments low, keep you from overextending yourself and boost the chances you'll be a successful homeowner over the long-term this time around.  The bank will also need to see 2 years of continuous employment history in the same field, and documentation that you meet other loan qualification requirements.

By Tara-Nicholle Nelson | Broker in San Francisco, CA

Original Article  http://www.trulia.com/blog/taranelson/2010/11/5_more_foreclosure_myths_-_busted#c53446  

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