Scott Hannah
Province

Q: We’re ready to buy a home and can’t decide between buying an older home or a brand new one. Any advice?

A: You may have a picture of your ideal house in mind, but before backyards and barbecues, consider your budget.

– Location: How will your commute to work be affected by where you choose to buy? Will your transportation costs increase or decrease? Newer homes are often located in the suburbs and older homes in more established areas.

– Looks: Older homes may have been updated to suit the tastes of the previous owner. Do you share their tastes or do you want to remodel? Factor renovation costs into your budget as you consider the purchase price. With a new home, how much extra will you need to pay for customization?

– Maintenance: Costs could be identical, but for different reasons. Older homes need money for maintenance (for example, roofs, hot water tanks), while new homes may need to be fully finished, (for example, the basement or yard).

– Property taxes, municipal-utility bills and strata fees: Research your added obligations carefully and factor them into your overall monthly commitments. Strata fees, in particular, may vary greatly depending on amenities and the age of the home.

The only real right or wrong decision is what your budget dictates. If you’re not sure what you can afford, test drive owning the home of your dreams before you commit. Set aside the difference between your current monthly housing expenses and the estimated amount it would cost at your new home in a separate account for three to six months. You will gain insights about your lifestyle choices and priorities and can make a more informed decision about what to buy.

Scott Hannah is the president and CEO of the B.C.-based Credit Counselling Society. For more information about managing your money, check www.nomoredebts.org or call 604-527-8999.

© Copyright (c) The Province

Martin Crutsinger, AP Economics Writer
USA Today

WASHINGTON — Housing construction posted a better-than-expected performance in March, rising to the highest level in 16 months on the strength of multi-family homes.

The Commerce Department report Friday showed that construction of single-family homes, the most important segment of the market, fell. It dropped 0.9% to an annual rate of 531,000 units, after a strong 5.7% gain in February.

But permits for single-family construction, a barometer for future activity, were up. That raised some hopes that the recovery of the housing market will stay on track and help sustain the broader economic rebound.

Overall, construction rose 1.6% to a seasonally adjusted annual rate of 626,000. That was higher than the 610,000 level that economists expected. In addition, the government revised February’s numbers to show a 1.1% gain rather than the initially reported drop of 5.9%.

Applications for building permits recorded a better-than-expected increase in March, rising 7.5% to an annual rate of 685,000.

Analysts are looking for any rebound in housing to be modest at best given the severe problems facing the industry. These include record home foreclosures and high unemployment, which robs potential buyers of the income they need to support a home purchase.

The weakness in single-family construction was offset by an 18.8% surge in the smaller multifamily sector, which rose to a seasonally adjusted annual rate of 95,000 units. Analysts do not expect this strength to continue given a multitude of problems facing commercial real estate at the moment. That includes high apartment vacancy rates and rising foreclosures of commercial properties.

Paul Ashworth, an economist at Capital Economics, noted that even with the March gain, the level of housing construction is still slightly more than one-fourth of where it was during the boom years in the middle of the decade. He said this burst of activity could well fade after home buyer tax credits expire at the end of this month.

By section of the country, all the strength in March came in the South. Construction activity there jumped 18.2%, the best advance in 10 months. Building activity plunged 28.4% in the Midwest and was down 8.3% in the Northeast and 2.1% in the West.

The National Association of Home Builders said Thursday its housing market index, which tracks industry confidence, jumped four points to a reading of 19 in April, the highest level since September.

Builders are reporting a pickup in sales and customer traffic as homebuyers rush to qualify for expiring tax incentives. The tax credits — $8,000 for new buyers and $6,500 for current owners — expire at the end of this month.

Many economists believe the tax incentives will boost the number of buyers now but lead to a drop in sales in the second half of the year.

Home sellers are also having to cope with banks tightening up on lending standards and a sizable supply of unsold homes.

The number of homes seized by banks jumped 35% in the first quarter from a year ago, RealtyTrac said Thursday. In addition, households facing foreclosure increased 16% in the same period and 7% from the last three months of 2009.

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when the foreclosure listings firm began reporting the data.

Copyright 2010 The Associated Press. All rights reserved

Granville and Drake residential building sure to be a Vancouver original

Province

The Facts

WHAT: 187 units in a 23-storey tower
WHERE: Granville at Drake
 DEVELOPER: Rize Alliance Properties Ltd.

SIZE: 461 sq. ft. -890 sq. ft.
PRICE: From $300,000

OPEN: Sales centre: 999 Seymour Street (at Nelson); hours: noon -5 p.m., Sat –Thur (opens mid-May)

The Rolston, a 23-storey new-home project that will be rising from the roots of the old Cecil Hotel, promises to be a Vancouver original — much like the woman who shared its name.

In the early 1950s, Tilly Rolston was B.C.’s education minister, and a member of W.A.C. Bennett’s Social Credit Party. She was also co-founder of the B.C. Council of Women.

“Tilly Rolston was someone who was very pioneering,” says Will Lin, chief executive officer of Rize Alliance, the developer behind the 187-unit Rolston project. “Architecturally, the building feels very original to us, as though it says, ‘I’m strong and I belong here.'”

The Rolston — the name has also been given to a Granville-area street called Rolston Crescent — will be located at the site of the Cecil, an infamous strip joint adjacent to the Yale Hotel at Granville and Drake.

The Rolston project was initiated by Wade Luciak, the long-term owner of the Yale and a previous owner of the Cecil. Lin says Luciak aimed to do a sensitive redevelopment, and that refreshing the Yale was also a priority. Yale Hotel housing will be modernized with 44 rooms renovated for single-room occupancy.

Meanwhile, design of the new Rolston tower and residences is suitably daring.

The building has a dynamic tiered exterior expression, a strong juxtaposition next to the heritage neon face of The Yale. Without being fussy, it’s a multi-faceted tower worthy of anchoring the north side of the Granville Street Bridge, signifying the emergence of the lively new neighbourhood tagged Midtown.

The Rolston steps backs politely from itself at level 16, with The Terrace protecting the coveted downtown view corridor while offering residences a generous amenity for barbecues and outdoor living. On a higher level The Garden terrace has a long communal party table, adding to a sense of openness, with space for all the necessities of city living: yoga, chilling and urban farming.

Inside, design and layout of the units by Vancouver’s Cause + Affect is unique and alluring.

“Rather than a predetermined floor-plan design,” says Bill Szeto of Otezs Marketing, who is charged with selling the units, “here, owners can decide between two layouts or what we call personalities, for almost every suite.”

The residences are outfitted for style, ease and entertaining with lots of glass and a generous balcony in each. A suite of full-sized stainless steel appliances means business in the kitchen, while custom-designed built-in wardrobes and closets add efficiency, blending in seamlessly.

Here and there, stylish little touches such as the Blanco undermount kitchen sink and tile-surround soaker tub stand out. In addition to the boudoir finery, the Cecil layout also offers a cool built-in credenza for entertainment systems, plus a dining space.

“It’s going to be a person who’ll treat the coffee shop, the pub, the bagel store downstairs or in the nearby streets as an extension of their living room,” says Lin of his buyer. “Mostly singles or young couples who are a little more creative in terms of their selection process.”

© Copyright (c) The Province

Respondents also say big kitchen better than separate dining room

Bob Ransford
Sun

Homebuyers are willing to trade yesterday’s once-popular home theatres or media rooms for a more practical space to accommodate a home office or study.

That’s just one of the findings of a recent annual consumer survey of North American homebuyer preferences.

The survey, conducted by AVID Ratings Company, identifies “must have” and “really want” features in new homes across a number of buyer groups, such as first-time buyers, move-up buyers who are seeking larger and/or better homes, and empty nesters — those semi-retirees or retirees seeking age-restricted housing developments.

The survey was conducted in the fall of 2009 and involved over 22,000 homeowners who had previously bought or built a home within the last nine years in U.S. and Canada.

In Canada, over 12,000 people from B.C., Alberta, Ontario, and New Brunswick were surveyed.

It found that more than double the number of first-time buyers and move-up buyers opted for the home office or study space rather than a home theatre or movie room on their list of design preferences.

This shift in consumer choice could be attributable to a couple of factors.

One might be the rapid improvements in personal multimedia technology. Some consumer surveys suggest more Canadians are viewing movies and broadcast programming on computers than on televisions. The recent economic downturn might be another factor driving this shift, as homebuyers are perhaps thinking more about making money than spending it on big-ticket items such as home theatre systems.

Large kitchens with a work island are near the top of the shortlist of “must” features in new homes, according to the survey.

Homebuyers would also rather have a large kitchen than a formal dining room. Less than 60 per cent of Canadian homebuyers surveyed rated a formal dining room as a “must have” or “really want” feature. Barely a third of those surveyed in the U.S. rated the dining room as a “must-have” or “really want”.

Canadian buyers have divergent preferences when it comes to buying a new home and Americans seem to have set their sights lower than Canadian homebuyers.

For example, about a third of U.S. buyers want brick exteriors on their new homes. About two-thirds of Canadian buyers rate this feature as a “musthave” or “really want”. Canadian buyers also seem to want to live in more manicured developments and have children’s playgrounds close by, while 10 to 20 per cent fewer of their U.S. counterparts rate these amenities as a “musthave” or “really want” neighbourhood feature.

The automobile still dominates in the U.S., with all three categories of buyers south of the border rating a three-car garage higher on their list of features than Canadian buyers. In fact, when it comes to the empty nesters, almost double the number of Americans, more than 40 per cent, rate a three-car garage as a “must-have” or a “really want” in a new home.

Americans also seem to want to have a constant breeze blowing in their homes, with two-thirds demanding ceiling fans in a new home, where barely 20 per cent of Canadian buyers rate this feature as a “musthave” or “really want”.

Older Americans apparently like to cook outdoors, with 40 per cent of U.S. empty nesters rating an outdoor cooking area as a “must-have” or “really want”. Half the number of Canadians seem to want to escape the stale air of their homes to deep-fry their turkeys.

More Americans than Canadians seem to be thinking about aging in place in their homes, with a majority of buyers rating main-floor master suites high on their list of design features — close to 80 per cent among U.S. empty nesters. Barely more than a half of Canada’s empty nesters demand this feature and only a third of Canadian buyers in other categories.

Finally, ecological performance and environmental sustainability features aren’t rating particularly high on either side of the border. Around two-thirds of buyers rate energy-efficient appliances as a “must-have”, but the use of recycled materials is only borderline desirable, and less so in Canada than the U.S.

Clearly, this study indicates new homebuyers in Canada and the U.S. are looking for homes that are practical, functional and supportive of their current lifestyles, while still offering a range of affordable creature comforts.

Bob Ransford is a public affairs consultant with COUNTERPOINT Communications Inc. He is a former real estate developer who specializes in urban land-use issues. E-mail: [email protected].

© Copyright (c) The Vancouver Sun

High Point sales staff direct their pitch at buyers who want a bucolic experience

Caralyn Campbell
Sun

HIGH STREET

Project location: 2950 King George Boulevard

Project size: eight townhouses and 80 apartments

Residence size: 714– 1,394 sq. ft.

Price from: $279,900 — $495,900

Developer: Grosvenor

Architect: Rositch Hemphill and Associates

Interior design: BYU Design

Sales centre: 401 2950 King George Highway

Hours: noon — 5 p.m., Sat — Thur

Telephone: 604-536-9333

Web: www.southpointelife.com

Occupancy: immediate

—

Master-planned communities are nothing new. The concept is familiar throughout the world and dates back centuries. Whether these new communities enhance or detract from surrounding neighbourhoods depends on the vision and skill of the developer.

More than 300 years ago, the real estate property developer Grosvenor began transforming areas on the outskirts of central London into Mayfair and Belgravia.

Mayfair is recognized worldwide as the finest London address, with its elegant facades and leafy streets and squares that provide a quiet oasis in the heart of the city. The grand stucco terraces of Belgravia, home to exclusive Eaton Square, are just a stroll from the best restaurants and shopping in London.

Eight years ago, Grosvenor developers focused their formidable talents on creating South Point Exchange in South Surrey, with a long-term vision of transforming the district into a vibrant mixed-use neighbourhood with a blend of residences, shops and services.

Smack between two major thoroughfares on a former llama farm, South Point Exchange has brought much-needed amenities into an area that was largely under-serviced. Major retailers such as Save-On-Foods, Canadian Tire and Staples now anchor a massive shopping centre.

Living in such a busy district on the edge of a mall may not sound appealing, but somehow, High Street at South Point has an insular feel. It’s like a village within a community within a city. The streetscape is Whistler-esque, with a vibrant village atmosphere and pedestrian-friendly walkways.

Every amenity is within walking distance of High Street, including gourmet groceries, restaurants, coffee shops, a neighbourhood pub, and shops that sell fresh produce, fine wines, and the latest in home decor and fashion.

High Street, which is comprised of 88 suites in two four-storey buildings, has strong architecture that was created by the award-winning firm of Rositch Hemphill and Associates, which used such materials as brick and HardiePlank siding, along with such details as moulded cornices and rich wood trim. Lush landscaping complements this esthetic.

Interiors are airy and spacious, with over-height ceilings and free-flowing floor plans. Kitchens feature six-piece professional appliance packages, stone countertops and rich wood cabinetry. The bathrooms have oversized porcelain tile floors, marble countertops and designer tubs.

These details, along with the convenient amenities, may explain the predominance of downsizing home-shoppers attracted to High Street.

That may also explain why the largest building in the South Point complex is a mini-storage facility, since parting with stuff may be the hardest part of downsizing for many people.

“Our sales team has noted that downsizing to a condo from a 2,000-square-foot home is, in many cases, a tougher decision than that of a first-time buyer,” says James Patillo, senior vice-president and general manager of Grosvenor Americas Vancouver/Calgary.

Downsizers don’t want to end up in “a shoebox” that’s priced the same as they house they sold. And of course, the size of outdoor space can be a letdown for people who are used to having a large back yard.

The sales team at High Street felt that focusing on the positive side of downsizing would help condo-curious shoppers buy with confidence, so they compiled the following list.

Pros to downsizing:

– Low-maintenance living: No yard work; the majority of home maintenance is taken care of by the strata; less to clean, and more time to do the things you love.

– Lock-and-leave sensibility: The opportunity/freedom to come and go as you please (in other words, to travel).

– Perceived safety: Living within a community surrounded by neighbours, interphones, and elevators with electronic key-fob access.

– Single-level living: No more stairs to deal with; makes it easier to get around a home.

– Efficient use of space: The opportunity to take advantage of ALL the rooms in your home.

– NEW home: Many downsizers have been living in a single-family home for decades and don’t have the sleek new appliances, gourmet kitchens and modern bathrooms that are offered at new communities like High Street.

– Affordability: The opportunity to bank some cash, live mortgage-free and spend money on the things you enjoy.

– Intimacy: Opportunity to reconnect and enjoy time with loved ones.

“Grosvenor is proud to say that they have been able meet all of these “pros” with their High Street project,” Patillo says.

They even have solutions for what some consider the “cons,” such as a lack of outdoor space; High Street has large patios and covered balconies that act as an extension to indoor living space.

© Copyright (c) The Vancouver Sun

Scott Simpson
Sun

LiveSmart BC‘s household energy conservation program is getting a $35 million extension.

British Columbia Minister of Energy, Mines and Petroleum Resources Blair Lekstrom said on Friday that the program, which offers financial support for household energy assessments as well as rebates up to $1,450 for installing energy efficient appliances, has been a huge success.

The government took heat last year from New Democrat John Horgan after funding for the original LiveSmart initiative ran out, with the NDP energy critic suggesting that the government was not placing a priority on conservation initiatives.

Lekstrom said the closure of the original project was indicative of its popularity — all the funding was used up.

“Many people had a misconception that it was cancelled. Well no, it was so good actually that we consumed all of the revenue we budgeted and decided we would do our best come next budget to find additional money.”

The incentives are being provided in partnership with gas and electricity utilities BC Hydro, Terasen and FortisBC, and Lekstrom said he’s hoping that Pacific Northern Gas, which serves customers in west-central B.C., will also participate in the new offerings.

Homeowners can contract certified energy advisers to audit their energy habits and recommend the most efficient upgrades to save energy and reduce costs.

Rebates run as high as $1,450 for air source heat pump installations that meet specified efficiency targets, while gas furnace replacements can earn rebates as high as $1,130 in interior and northern B.C. and up to $770 on the south coast.

Insulation, window replacements and draft-proofing can net lesser amounts.

© Copyright (c) The Vancouver Sun

Martin Crutsinger, AP Economics Writer
USA Today

WASHINGTON — Housing construction posted a better-than-expected performance in March, rising to the highest level in 16 months on the strength of multi-family homes.

The Commerce Department report Friday showed that construction of single-family homes, the most important segment of the market, fell. It dropped 0.9% to an annual rate of 531,000 units, after a strong 5.7% gain in February.

But permits for single-family construction, a barometer for future activity, were up. That raised some hopes that the recovery of the housing market will stay on track and help sustain the broader economic rebound.

Overall, construction rose 1.6% to a seasonally adjusted annual rate of 626,000. That was higher than the 610,000 level that economists expected. In addition, the government revised February’s numbers to show a 1.1% gain rather than the initially reported drop of 5.9%.

Applications for building permits recorded a better-than-expected increase in March, rising 7.5% to an annual rate of 685,000.

Analysts are looking for any rebound in housing to be modest at best given the severe problems facing the industry. These include record home foreclosures and high unemployment, which robs potential buyers of the income they need to support a home purchase.

The weakness in single-family construction was offset by an 18.8% surge in the smaller multifamily sector, which rose to a seasonally adjusted annual rate of 95,000 units. Analysts do not expect this strength to continue given a multitude of problems facing commercial real estate at the moment. That includes high apartment vacancy rates and rising foreclosures of commercial properties.

Paul Ashworth, an economist at Capital Economics, noted that even with the March gain, the level of housing construction is still slightly more than one-fourth of where it was during the boom years in the middle of the decade. He said this burst of activity could well fade after home buyer tax credits expire at the end of this month.

By section of the country, all the strength in March came in the South. Construction activity there jumped 18.2%, the best advance in 10 months. Building activity plunged 28.4% in the Midwest and was down 8.3% in the Northeast and 2.1% in the West.

The National Association of Home Builders said Thursday its housing market index, which tracks industry confidence, jumped four points to a reading of 19 in April, the highest level since September.

Builders are reporting a pickup in sales and customer traffic as homebuyers rush to qualify for expiring tax incentives. The tax credits — $8,000 for new buyers and $6,500 for current owners — expire at the end of this month.

Many economists believe the tax incentives will boost the number of buyers now but lead to a drop in sales in the second half of the year.

Home sellers are also having to cope with banks tightening up on lending standards and a sizable supply of unsold homes.

The number of homes seized by banks jumped 35% in the first quarter from a year ago, RealtyTrac said Thursday. In addition, households facing foreclosure increased 16% in the same period and 7% from the last three months of 2009.

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when the foreclosure listings firm began reporting the data.

Copyright 2010 The Associated Press. All rights reserved

Spring last gasp before housing sales begin to drop

Garry M
Province

The spring home-buying season has reached a fever pitch with a record number of “for sale” signs on Canadian lawns for the month of March.

But there are indications the market has reached a peak with nowhere to go but down.

The Canadian Real Estate Association said Thursday that 97,663 residential properties were put on market last month, a 25-per-cent increase from the number of new listings in March a year ago. Since the beginning of the new year, there have been 233,402 homes put on the market, the most ever for a first quarter.

With demand still strong, sales continue to soar. There were 49,256 units that traded hands in March, the second most for March on record, and a 40.8-per-cent rise from a year earlier.

But March was the fifth-straight month that the percentage increase has declined. In some markets, sales are already falling. Seasonally adjusted sales in B.C. dropped 17.8 per cent from a quarter earlier and Alberta sales dropped 9.7 per cent.

Phil Soper, chief executive of Royal LePage Real Estate Services, said affordability and consumer confidence drive the market. “The former has not eroded enough to affect the market and the latter has improved considerably.”

Still, he conceded that the spring market may be the top for real estate. “It will be the top from an industry-volume perspective. It’s the last hurrah for the pent-up demand in the market,” said Soper, who expects prices to continue to rise, but more slowly.

Many in the industry concede, however, the spring market could be the last gasp before housing sales start to drop, along with prices.

© Copyright (c) The Province