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Vancouver is least affordable city to buy a house in Canada

david.hutchinson@century21.ca — Fri, 24 May 2013 00:00:00 GMT

The costs of owning a detached bungalow in Vancouver take up 82.3 percent of a typical household’s income, says RBC.

Photograph by: Gerry Kahrmann, PNG Files , The Canadian Press

Vancouver remains the least affordable city to buy a house in Canada while home ownership in Toronto is becoming more difficult, Royal Bank of Canada Economics Research said.

The costs of owning a detached bungalow in Vancouver take up 82.3 percent of a typical household’s income, up 0.1 percentage points from the previous quarter. In Toronto, the largest city in Canada, that figure is 53.8 percent, up 0.8 points, according to a housing affordability report for the first quarter produced by Canada’s largest lender.

"The Canadian housing market cooled significantly in the past year," Craig Wright, chief economist at Royal Bank of Canada, said in a statement. "There is mounting evidence that activity is no longer weakening."

A "significant nationwide price correction" isn’t imminent as long as affordability stays within the current range, Wright said.

Exceptionally low mortgage rates have been the chief factor in keeping homeownership costs relatively affordable, RBC said.

Finance Minister Jim Flaherty tightened mortgage rules four times in the last five years amid concern that overbuilding in some markets could lead to a sharp drop in prices. The Bank of Canada forecasts housing investment will be a drag on economic growth this year and next.

"While affordability levels are manageable at this point, we’d be humming a very different tune if interest rates were to suddenly rise substantially," Wright said. "Fortunately, the likelihood of a surge in rates is slim at this stage."

14 Metro Vancouver homes at rock-bottom prices

david.hutchinson@century21.ca — Fri, 24 May 2013 00:00:00 GMT

Burnaby: 6445 ARBROATH ST, Highgate, $521,800.00

http://www.vancouversun.com/business/mortgages/Photos+Metro+Vancouver+homes+rock+bottom+prices/8427259/story.html

Reclusive heiress bequeaths $34 million to Vancouver Foundation

david.hutchinson@century21.ca — Fri, 24 May 2013 00:00:00 GMT

The WilMar Estate, at 2050 block of S.W. Marine drive, is a historic 1925 mansion in Vancouver, B.C., February 15, 2012. The 1925 mansion is up for sale for the first time. It belonged to the Kitchen family that has died out. The house is being sold with the money going to charity

How to make the most of your home renos

sukhi.kang@century21.ca — Fri, 24 May 2013 00:00:00 GMT

Sukhi Kang 604-377-1246 www.sukhikang.com

Renovating your home can be stressful if you have to stay put while the work's being done, but you can get through the hectic time by following these pieces of advice.

Renovations can add significant financial strain to a household budget and stress to an already busy family, says Avi Kay, branch manager at Envision Financial. But with a bit of planning and research, much of the pain and uncertainty can be avoided and that long-awaited renovation can become a wise investment.

Plan ahead Kay recommends getting several estimates from qualified contractors and to anticipate an additional 10 to 15 per cent for unexpected costs. It's also important to make sure you have a signed agreement with the contractor you select.

Educate yourself Be sure to check with your municipal building department to see if your planned renovations are allowed under current zoning and bylaws and make sure they conform to building code.

Choose renovations with good resale value "The best and cheapest renovation you can undertake is to repaint your house inside and out and a close second is to replace outdated lighting fixtures," says Ron Todson, president of the Fraser Valley Real Estate Board and realtor of 30 years. "Paint and lighting, which can be quite economical, really spruce up an older home and make buyers feel like they are getting something fresh and new.

"The renovations that offer the next best return on investment are kitchens and bathrooms - but the price tag on these items may be a lot higher. Energy efficiency is also a priority on buyers' lists so it's worth considering a new furnace or replacing windows. However, high-end multimedia rooms and elaborate outdoor spaces including pools do not provide a good return. These items should be added for personal use, not to try and sell your home.

Fund wisely

After you've made a plan with a qualified contractor and drawn up a budget you feel comfortable with, don't forget to take the time to make sure you have a cost-effective way to pay for your upcoming renovations.