Latest Jurock.com Video:


Ozzie Jurock: Vancouver October real estate numbers are down year-over-year but up from September. Ozzie also outlines a few selling tips for this tough market.
Date: Wednesday, November 05, 2008 (Length 4 min 13 secs)
56K or High Speed
26 Ways To Make Your Home Sell Faster
More Real Estate Videos

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Latest Mortgage Rates:
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Kyle Green (Meridian Financial Services Ltd. 604-949-1070 ext. 227) says: "With all of the lenders moving from Prime Minus to Prime Plus on their variable rates, most clients have opted for the safer bet with a 5 year fixed rate or longer. We expect this trend to continue until a lower cost of funds for the banks allows them to go back or close to Prime Minus again. In other words, you will know when the lending crisis is improving when Prime Minus products return to the market. Best 5-year rate 4.9%."

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Weekly Real Estate Deals:
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1. Campbell River, refurbished studio suites. Building is in excellent condition with new fire system, parking lot, all new carpeting and paint in common areas and lots more. Prices: $77,900, 2 bedroom units $99,900;

2. Prince George, duplex. Cash return 11.5%. Price $85,000;

3. Yorkton, Sask. 3 lots ... 25 x 120. Price: $30,000 for all three.

These properties have not been seen by us, just seem like good deals. You have to vet them yourself. Look them up at the 'deal' section of your password protected website at Jurock.com. (Anyone can be here, there is no fee. If you have a good deal ... send it, we'll look at it.)

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The following are the latest Questions and Answers from Jurock.com's "Ask an Expert"
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Ask Ozzie : Ozzie   Jurock
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Q: I have had a home for sale on the Westwood Plateau for two months with no offers. Last year (June 2007) I was told that the home is worth $1,050,000. I listed it well below that. It was assessed in 2008 at $940,000. Presently there are 55 listings for sale price range $800,000 to $975,000 in my immediate area. There were only two sales since Aug. 1, 2008. One was listed for $888,000 said for $771,000 and the other was originally listed for $998,000 reduced to $939,000 and then sold for $905,000. I need to sell. How can I get the place sold?

A: Well, you pretty well answered your own question. As we have written for a few months now ... expect 'the market' to reverse more than it should ... since it went up higher than it should have. Whatever it was worth last year, or whatever your assessments say is not relevant. Your property is offered in today's market conditions. Your assessments of 2008 (January) are actually based on what the Assessment Authority estimated your home was worth in July 2007. You are doing the right thing ... you looked over what is for sale and what was sold. That is all that matters. Go with your Realtor to at least seven houses or more of the 55 for sale. Compare them to yours. Then list it below what the average offering is. (Also look up on my website Jurock.com the free story: 26 ways to make your home sell faster.)

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Ask Ozzie : Ozzie   Jurock
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Q: My bank has advised me to lessen my monthly payments by rolling my car loans and my mortgage together into a home equity line of credit that will reduce my monthly payments. Is this a good idea? It's an open variable line of credit and the interest rate is five per cent. Will the interest be tax deductible?

A: Woah! 1. You have a mortgage now (which is not reported as a debt to your credit bureau). 2. If you roll it into a credit line ... the whole amount ... credit line and mortgage will be reported to the credit bureau as a debt. 3. Your interest on your residence is not deductible. If you used your credit line for personal purchases it is not deductible either.

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Ask Ozzie : Ozzie   Jurock
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Q: A few years ago, I bought a one bedroom suite in Yaletown. I lived in it for two years and then rented it out - now for three years. Can I deduct any expenses - cost of purchase, maintenance, legal fees, etc. - against my rental income?

A: Eva Milz, CMA, pointed out that I "should have informed the reader that the Capital Gains Tax kicks in after four years." Because the Capital Gains Tax on a private residence is an oft asked question I thought I would bring it to you again.

(My original answer): Yes, all expenses relating to the rental income, such as mortgage interest, condo maintenance fees and utilities, are deductible. However, you will have to pay capital gains tax when you sell. The capital gain will be pro rated between the years that you stayed and the years that you rented.

Ms. Milz said further that "the Tax act states: an individual who moves out o a principal residence can retain principal residence treatment for the property, for up to four years."

Of course, I should have mentioned that. In fact when a person moves out of a personal residence because they were transferred to another city, there is no four year limitation. The person could be transferred to Toronto for instance and rent out the Vancouver condo for 15, 20, 30 years or more (not just four) and not owe capital gains tax (according to David Ingram). They merely have to make an ELECTION UNDER SECTION45(2) - something like this - "I hereby elect to treat the property at xxx Any Street, Vancouver, B.C. as my principal residence even though I did not ordinarily inhabit it:" However, there are also two caveats whether the time limit is three, four or 25 years. 1. If the person claims CCA (depreciation), 45(2) does not apply and 2. If they buy another house or live in a legal or common law relationship with a person in that person's house, only one of them can be tax free. So claiming the rental condo tax free could trigger a larger tax bill if the person had moved to a more expensive house that increased in value more than the condo. One other small point. Although the act says four years as you suggest, it is actually a practical five years. Form T2091 clearly allows you to designate the four years and then add one making an effective five. Anyone wanting to look at the form and the four plus one rule can find it here. Thanks to both Ms. Milz and Mr. Ingram. It just goes to show ... in this complicated world you need an expert accountant, lawyer, mortgage broker and Realtor.

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Ask Ozzie : Ozzie   Jurock
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Q: I am wondering what home prices have done historically over the last 50 years. Do you have a chart or graph that shows the ups and downs. Homes 50 years ago where worth, what, $15,000 and values have gone up and down but must have shown a somewhat steady increase. I'm curious to see a chart. A picture is worth a thousand words.

A: The fine Vancouver Real Estate Board has great statistics. Go to www.realtylink.org and click on news releases. Click on house price index and/or listed versus sold index and the later is available in graph form. The board also has a graph showing prices from 1960 ($13,500) to today with year end totals for every year in between. You could write to the news department. I am sure they would send the graph to you.

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Ask Ozzie : Ozzie   Jurock
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Q: I am planning to buy real estate in Scottsdale, although I wish I had converted my funds into US dollars when it was a $1.10. Where is the best place to analyze different cities in the US and is there a listing service like mls.ca?

A: I did (ahem) advise all my subscribers to lock in their Canadian dollars at $1.02 in May his year and asked Sun readers here on May 29, 2008 as part of an answer: Have you converted your likely down payment now when our dollar stands at over par? Invest $200,000 and if the dollar is down to 95 cents that will cost you $10,000. Well, the best place for real estate is www.realtor.com. The best place for details of a neighbourhood is found at neighborhoods.realtor.com. Hover your mouse over a city and then drill down into each neighbourhood to find school ratings, number of properties for sale and for rent as well as average length of time tenants are likely to stay and a slew of other useful information.

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Ask Ozzie : Ozzie   Jurock
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Q: I bought a pre-construction condo this spring. I have been keeping an eye on the condo sales in the neighbourhood of the condo I purchased. Based on recent sales and listings in the area it appears that my condo is not worth what I committed to for it. It is due to be complete this time next year. If it is worth less than the purchase price at time of completion what are my options? Can I forfeit my deposit and walk away? Will the developer come after me for the purchase price? My concern is that I won't be able to obtain financing if the unit is not worth the purchase price?

A: We have already discussed a similar question here a few weeks ago. But I receive at least 10 questions a week just like this one. So, I'll tackle it once more. I assume it is a development that will definitely go ahead? If so, take your contract to a lawyer. Just because you think it is worth less, does not mean that the developer has an obligation to just accept your deposit. Depending on the actual contract you signed, he could sue for specific performance. However, if you feel you do not qualify for financing you may initiate a meeting with the developer now. He may have a financing solution, he may have an amount he will accept as damages. Rest assured, you are not the only buyer with second thoughts.

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Ask a Mortgage Broker : Jared    Dreyer
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Q: If a wrap mortgage is used in Canada, what are the legal remedies for the wrap mortgage purchaser if the 1st mortgage holder fails to remit the required payments to the 1st mortgage lender?

A: If the buyer of the home has not been approved by the bank, you will still be liable for the mortgage.

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Ask a West Vancouver real estate expert : Clara   Hartree
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Q: I'm a US Resident interested in buying an investment property in Vancouver. I'd like to keep the property rented until after the Olympics, at which point I'd like to relocate there. What areas of Vancouver are up and coming and expected to see the most gain after the Olympics? Do I need a special visa to buy property in Canada? Is it possible for a US resident to obtain financing from a Canadian lender?

A: In this slow market you can find good values in excellent areas of Vancouver, no need to go to the fringe and up-and-coming, but there are great choices there as well.

Depending on your budget I would suggest West End, Downtown and parts of Kits for good deals in the low end, Cambie for brand new units in an up-and-coming area (there is a developer offering a Honda with each purchase of a unit). For higher end there are good deals in Coal Harbour and False Creek.

Just a reminder, it is important to get a good realtor who will help you identify and negotiate the best deals. You don't need any special visa to buy in Canada and Canadian lenders are happy to help. Again, you need a good mortgage broker. I'll be able to suggest names if you wish.