Other

Freehold

A freehold interest (also known as a fee simple) is the more precise term for what we ordinarily refer to as ownership of a property.  The owner of the freehold interest has full use and control of the land and the buildings on it, subject to any rights of the Crown, local land-use bylaws and any other restrictions in place at the time of purchase.

Leasehold

In some cases you might purchase the right to use a residential property for a long, but limited, period of time.  The owner of this right of use has a type of ownership called a leasehold interest.  This type of ownership is used most often for townhouses or apartments built on city-owned land.  It is also occasionally for single detached houses on farm land, on First Nations reserves, and for apartments where the owner of the freehold interest of an entire apartment block sells leasehold interests in individual apartment units to other owners. 

Leasehold interests are frequently set for periods of 99 years, but regardless of the length of the original term, you will only be able to purchase the remaining portion.  Of course, the shorter the remaining portion, the less you, or the person who eventually purchases from you, will be willing to pay for the leasehold interest

Strata

The strata form of ownership is designed to provide exclusive use and ownership of a specific housing unit (the strata lot) which is contained in a larger property (the strata project), plus shared use and ownership of the common areas such as halls, grounds, garages, elevators, etc. 

This type of ownership is used for homes, duplexes, apartment blocks, townhouse complexes, warehouses, and many other types of buildings.  Because ownership of the common space is shared, the owners also share financial responsibility for its maintenance such as the commonly owned roads, disposal system, landscaping, elevators, management, etc.

Cooperative

In the cooperative form of ownership, each owner owns a share in a company or cooperative venture, which, in turn, owns a property containing a number of housing units.  Each shareholder is assigned one particular unit in which to reside. 

Buying Your Home or Property

What Should YOU Purchase?

Before you begin looking for your new home, it is important that you consider the needs of all the people it must shelter. What their daily activities will be and their desire for a certain size or location, both now and in the future. 

Thinking about some of the following factors will help you determine where and what you should purchase.

Community: 

• Rural?  Small town? Suburban?  City?
• What facilities are available: Shopping centers?  Places of worship?  Recreational facilities?  Hospitals?  Schools?
• Are property taxes comparable to those in other communities? 
• Are there any future developments planned which you may not like? 
• Are the sewage and water systems adequate? 
• What is the availability and cost of utilities: Electricity?  Gas?  Water? 
• What public services are provided?  Police?  Fire protection?  Ambulance?  Garbage collection?  Mail delivery?  Snow removal? 

Transportation:  

• Is there nearby public transportation available? 
• Do you mind a long commute to work or to visit friends?
• Can you afford to drive and park at your workplace? 
• Will another car be needed for your spouse to drive to work, to shop, or to take the children to school or other activities? 
• Are major roads easily accessible?  

Neighborhood:

• Is public and private property maintained to your satisfaction? 
• What is the composition of families living nearby?  Quiet, mature people?  Teenagers?  Potential playmates for children?  Are their incomes and lifestyles compatible with yours?
• Have property values risen, fallen, or remained stable in the recent past? 
• Are there any known projects on the horizon that could substantially change the quality of the lifestyle or the property prices in the area?
• Do you feel comfortable with the current zoning regulations?  Will they protect property values yet still allow you to use a dwelling in the way you envision?  Outdoor basketball hoops and barbecues?  Storing your boat?  A home-based business?  Keeping chickens, rabbits, horses?  Cutting trees?  High fences?  A basement suite? Etc., etc.
• When you walk up and down the streets of the neighborhood, can you picture yourself living there for several years into the future? 

Dwelling: 

• Are you interested in brand new only?  An historic, character house?  An already renovated resale?  A solid, older house that just needs redecorating?  Or can you purchase a fixer-upper and do major renovations yourself? 
• What combination of space do you require?  Think not only about bedrooms, bathrooms and garages, but also about areas for hobby activities and childrens play; and storage for clothes, skis, bicycles, wind-surfers, tools, garden equipment, etc. 
• Is a large well-equipped kitchen important to you?  How about a fireplace?  A large entrance hall?  A sundeck?  A pool? 
• Would you prefer a small lawn and low-maintenance garden, or do you enjoy cutting grass and making things grow? 
• Do you need a dwelling with room to eventually accommodate more children?  Elderly parents?  In-laws? 

Schools:

• What schooling is available?  Primary?  High School?  Adult evening programs?  College? 
• How close are the schools and how do the children get there? 
• Are the schools crowded?  Is the sports program satisfactory?  Do the students have a high achievement record? 
• If your family has special educational needs, are these available

Other

The Teranet-National Bank House Price Index™ for August 2011 shows a continuing upward trend in the price of single-family homes across Canada. The index showed a gain of 0.9 per cent, the fifth time in its nine-month rise that it has shown a 0.9 per cent increase or higher.

Metro Vancouver house prices climbed for the eleventh month in a row, increasing by 0.6 per cent.

For the first time, the index included Victoria, where house prices remained flat compared to July.

The index measures the rate of change in single-family home prices and is based on property records of public land registries. It measures data from the 11 major metropolitan areas across Canada.

© 2011 REW. All rights reserved.

Other

On Vancouver’s west side, the single family detached market is currently experiencing some price softness. Property listings on MLS have increased to 872 homes listed for sale. This time last year, there were about 600 homes listed for sale and in October 2009 there were 550 homes for sale in Vancouver’s west side. With the current pace of sales, we have an 8 month supply of inventory and this is a RARE buyer’s market. Richmond’s single family detached market is even softer with a 9 month supply but keep in mind that both these markets witnessed a stratospheric rise on the order of 20% and 25% respectfully from last fall to this past spring so this minor correction is healthy. Both North Vancouver and East Vancouver are more balanced, each having a 4 – 5 months supply of detached homes for sale and while market activity has been slower as of late, it can be either a buyers or sellers market depending on the situation and on the listing. West Vancouver is hanging on to a balanced market with a 7 month inventory supply.

GREATER VANCOUVER: Overall, the market seems to be normalizing. After 8 or 9 years of snap, crackle and pop, market activity appears to have moderated across Greater Vancouver this fall, however, just in the past few days we have already seen a dramatic increase in market activity so things can change quickly

SUPPLY / DEMAND & THE CONDO MARKET: Real estate is always changing! In Vancouver, real estate developers are very busy building in many areas of the city. Land assemblies are visibly active along Granville Street and Cambie Street. The areas all along W 2nd Ave, E 2nd Ave, behind Olympic Village and along Main Street, Fraser Street and Kingsway are going higher density. The same for East and West Broadway, new condo projects have sprung up and will continue to do so.

IT’S HARD TO GO WRONG BUYING IN KITSILANO. Even with lower sales volumes in the last 12 months, Kits condos have still increased in price by 5% on average. Kitsilano townhomes and 1/2 duplexes are up 12% since the summer of 2010. If they are up 12% in Kits, then you can bet that the same type of housing is up at least 5% and more everywhere else. In other areas, Cielo in Coal Harbour, Yaletown Park, Kings Landing on the north shore of False Creek and the Bosa built Portico buildings at 6th, 7th & Granville are all examples of condo buildings that out perform the market.

IT MAY BE TIME to trade the condo for a townhome or a single family detached home with a secondary suite to help pay the mortgage while interest rates are still low? If financial growth is your primary goal, don’t delay, own land!

Julian Beltrame
Other

OTTAWA – The Bank of Canada is hinting that it will need to keep interest rates super low for an extended period to stimulate an economy being battered by a sharp global downturn and rising risks.

As expected, the central bank left its target overnight rate at one per cent for the ninth decision date in a row on Tuesday.

But, in an pessimistic new forecast of future expectations, it gave every indication that Canadians can bank on lending conditions staying “stimulative” well into the future.

For Canada, the bank slashed its forecast for growth this year and next year by 0.7 percentage points to 2.1 and 1.9 respectively.

The United States, China and emerging countries will also grow slower than previously thought, while Europe will fall into a “brief” recession, the bank added. That’s the most likely scenario, but it could be worse, the bank adds.

“The bank’s base-case scenario assumes that the euro-area crisis will be contained, although this assumption is clearly subject to downside risks,” the bank said.

That was more likely Tuesday with news out of Europe that the long-anticipated rescue of its banking sector is far from settled and speculation that the government of Silvio Berlusconi of Italy could fall in squabbling factions over emergency restraint measures.

The Canadian dollar dropped immediately after the central bank’s statement was released at 9 a.m. ET and kept going down as markets reacted to the pessimistic tone of the message. The dollar, which had briefly breached parity, was down 1.17 cents at 98.52 US in midday trading.

Bank of Montreal economist Michael Gregory said the central bank’s dropping of a long-standing caution about interest rates eventually needing to rise constituted a strong message to markets.

“The mere fact of going from this slight, vague hint of eventually tightening down the road to, ‘Hey guys, we are doing absolutely nothing for a long time,’ you necessarily then at the margin raise the risk that in the interim rates could actually fall,” he said.

Scotiabank and TD Bank economists don’t see a rate cut in the offing, but said they believe the central bank is preparing to stay on the sidelines well into 2013.

For investors, the message not to expect “meaningful changes in interests rates” for several years and that cash is king, said Denis Senecal of State Street Global Advisors in Montreal.

He added that the risk is for even lower interest rates and possibly a bout of deflation.

While the rate decision was no surprise, the tone of the bank’s unusually long accompanying statement was darker than some had expected, even though economists had been calling on bank governor Mark Carney to sharply revise the summer’s sunnier economic forecast.

The bank’s policy team took the advice to heart. Not only is growth braking dramatically in the industrialized world, even China and other emerging countries can be expected to lower their sights in the near future. And of course, Europe will most likely now experience a recession, it said.

“The global economy has slowed markedly as several downside risks… have been realized,” the bank said.

“The combination of ongoing deleveraging by banks and households, increased fiscal austerity and declining business and consumer confidence is expected to restrain growth across the advanced economies. The bank now expects the euro area … will experience a brief recession.”

Canada‘s economy is currently feeling the impact of Europe, the U.S. and slower growth in the emerging countries.

“Although Canadian growth rebounded in the third quarter (which ended Sept. 30) with the unwinding of temporary factors, underlying economic momentum has slowed and is expected to remain modest through the middle of next year,” the bank said.

The bank delayed it’s expectation for a return to normal growth from mid-2012 to the end of 2013. That’s more than four years after the official end of the 2008-09 recession.

Low foreign demand for Canada’s exports, a high dollar, falling commodity prices, skittish markets and a more cautious consumer were among the reasons cited.

Given the underutilization of the economy’s capacity and weakness abroad, the Bank of Canada was not particularly worried about inflation, despite a report last Friday showing consumer prices rose 3.2 per cent in September — above the bank’s range — and that underlying inflationary pressures continue to rise.

The bank said it expects consumer price increases will soon start slowing and bottom out at around one per cent next summer before trending upwards toward the bank’s two per cent target at the end of 2013.

That would suggest the bank might be thinking of cutting the overnight rate before raising it, but the bank statement suggests it was comfortable with where it is for now.

© 1999-2011 Rogers Communications

As you know, your variable rate mortgage, lines of credit and/or student loans are all based on the Prime Rate and as promised, here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 9:00 am EST, October 25^th, 2011, the Bank of Canada did what we expected them to do… they maintained their overnight rate. What this means to you is that the prime rate on your mortgage or line of credit will not change and remains at 3.00%. This is great news as you still have a great low rate and so continue to make the most of the low payments you will still have and maybe chat with a financial advisor about a Tax Free Savings Account or some RRSP contributions to trigger a potential income tax refund next year! If you don’t have a financial advisor, let me know and I’d be happy to recommend one to you.

Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision:

“The global economy has slowed markedly as several downside risks to the projection outlined in the Bank’s July Monetary Policy Report have been realized. Financial market volatility has increased and there has been a generalized retrenchment from risk-taking across global markets. The outlook for the Canadian economy has weakened since July, with the significantly less favourable external environment affecting Canada through financial, confidence and trade channels. Although Canadian growth rebounded in the third quarter with the unwinding of temporary factors, underlying economic momentum has slowed and is expected to remain modest through the middle of next year.”

The outlook has not changed since the last announcement…. the Canadian economic growth stalled in the second quarter but the Bank continues to expect that growth will resume in the later part of this year. Based on this repeated message and economic conditions it is anticipated that prime rate might not actually increase until well into 2012 maybe even 2013. When it does start to increase, it is expected to be gradual and controlled in line with economic recovery, both in Canada and globally. Remember any change to the prime rate since 1992 has only been by 0.25% at any ONE time.

Other

Ask yourself this simple question….which is greater….the number of prospects that view my website ……or the number of prospects that see my signs, print media and marketing materials?

Granted, you might argue that a viewer to your web site is a more likely prospect because they are looking for something, but isn’t someone that stops to read your sign, or better yet scans your sign, flyer, print ad. or bus shelter also seeking the same kind of information?

Next question. Why does someone focus on a particular property… is it price, neighborhood, schools, tax incentives, re-modeled kitchen, landscaping, low interest rates? There are clearly a lot of reasons, or ‘hot buttons” that trigger interest.

One might conclude that for each of these reasons there is way to elicit that interest ….and the way to spark that interest may vary as much as the reasons do….So why market these “many reasons” with a fixed message…..and miss out on activating a response to those other “hot buttons”?

Let’s take a closer look at how to do this.   

Start by carefully analyzing your listing.

• Are there features of the property that would appeal to a target audience such as first time home buyers; retirees; second home buyers…large families etc?

• What message highlighting these features would resonate with your targeted prospect?

• Where will you have the most likelihood of coming into contact with your targeted prospects?

Considering the above, which media format would have the most impact for delivering your message to the target audience…..video, photos, a pdf narrative, etc?

Using your ConnectCode, take your message to your target audience in the format that will give you the most impact……in the places that are most likely to come into contact with your prospects.

Other

Let’s frame this discussion with a hypothetical situation.  You are competing for a listing in your market.  The property will sell for around $400,000.  The commission for selling this listing is 3%, therefore a potential commission of $12,000.  You estimate that like most homes in your area, it will take 6 months to sell the house.            

The owners of the property are interviewing you and your best competitor.  Both of you have comparable experience, represent national brands and have highly professional websites and marketing materials.              

So how will you differentiate yourself to win this listing.  Personality? A better presentation? What’s the cost if you don’t get this listing?             

Now let’s assume that your prospective seller is familiar with smart phones; social networks; viral marketing, and is reasonably objective in the selection process.                         

Now let’s also assume that you interject into your presentation:                         

The ability to turn your signs and other marketing materials into a multi-media presentation.  

The capability to convey infinite marketing messages & strategies into your signs and marketing materials.                            

The ability to connect on a much broader basis with those home-buyers utilizing smart phones/mobile web in their home search.                         

You demonstrate that you’re tech savvy

Purposeful and Well Thought Out Marketing:

The forethought and expertise to show your understanding of their home; its key selling points and your ability to weave that into multiple marketing messages, conveyed from your signs & marketing pieces.    

Is it possible, that the above capabilities might influence a winning listing decision?  Is so, what is your risk/cost?

Our QR codes are free, and the hosting cost for the mobile listing page is just $1 or less per month (over a 6 month listing period that would be $6).

In this example the potential commission was $12,000.  The cost was $6.  Pretty simple math.

Other

These days, QR codes are becoming increasingly popular, especially in Real Estate! Every day companies like Starbucks, IHOP, Macys and Pepsi put the genius of the QR code to work in order to engage their customers and promote their products.  In case you don’t know what QR codes are – a simple definition is that they are like a bar-code, but a 2D barcode. They can be scanned with a smart phone using freely available Reader Apps from the App. Store for iPhone, Android and Blackberry, or by visiting www.GetReader.com on your phone.

Since popularity of QR codes in Real Estate has surged – we’ve been seeing incorrect QR usage everywhere! We thought now would be a good time to lay out a few tips on how to use QR codes – the right way and the wrong way.

The Right Way

1. Print Marketing Campaigns – If you advertise using fliers, signs, direct mail or magazine ads, using QR codes here is practically mandatory.  The ConnectCode will link to a mobile-friendly page specifically created to match the listing. This is the simple system that ConnectCode offers.

2. Real Estate Professionals – If you are not yet using QR codes, you are losing business.  You can use QR codes on property listing posters you leave in public places (The ConnectCode will lead to a mobile friendly version of each online property listing, including pictures, address, contact form, Facebook and Twitter sharing tools and map); on your business cards (your clients will scan and your contact info can automatically be added to their phone’s address book!); on your property’s For Sale sign (talk about instant lead generation!).   Real Estate is winning with QR codes BIG TIME.

3.Give ‘em Instructions! – A lot of people are still confused when they see the funny looking QR code.  For now, until QR codes are literally everywhere, you should include a small instruction (one line only please) telling the user what to do.  How about, “Scan this code on your smartphone using a Free QR Code Reader App! Visit GetReader.com for free downloads” ?

The Wrong Way

1. QR Codes on Websites– This is a BIG NO NO! The point of the QR Code is to get people to scan them and lead them to a special, mobile-optimized website. What use is there for taking someone already looking at your website on their computer, to the same website on their ‘phone?  

 2. Going Home-Your QR Code should NOT take people to the home page of your website. Why?  Marketing is about targeted, specific campaigns. A good QR code mobi page is designed to match the specific property, and leads to a mobile friendly page with detailed information.  If you print a QR code on a flyer for a house you are selling, the scanned code should lead to the listing of that property, not your home page. Common Sense!

3. Size Matters-To ensure your code scans correctly, it needs to be minimum 1″x1″.  Why? You can’t adjust a phone’s lens – it’s set to auto focus.  Also, your code can’t be too big- If you are using a QR code on a large size banner that will be placed near people, size it accordingly- it needs to easily fit in the frame of your mobile phone camera. Your professional sign maker will guide you.

4. Auto Generated QR – if you are just being “pushed” canned information from an MLS or a corporate system, there is a good chance that you are simply (a) recreating a flat flyer and (b) not in control of the information, multimedia, property calendar, listing display etc., on the MOBILE web. ConnectCode has thought through all the tricks of the trade and delivers a compact, easy to use, trackable, flexible system.

Why use ConnectCode instead of what’s already available for free?

With ConnectCode, and our 

• No more linking to slow, cumbersome web pages – quickly create mobile optimized listings
• Flexibility to augment your existing marketing plan
• Display a Mobile Open House “experience” including YouTube videos, virtual tours, image galleries instead of a “flat flyer”
• No more worrying about empty tubes or wet flyer boxes, the ConnectCode is a green solution and never “runs out”
• Cut printing and distribution costs, not to mention save time!
• Re-assign the codes when a property sells – just log in and change the details – use the same yard signs and riders to display a new property
• Add an Open House or Auction Calendar on the fly
• Measure the success of each code with tracking stats
• Generate an automatic Google map link
• Let viewers save each ConnectCode as a mini App. to their phone
• Viewers can share your office or your listings virally on THEIR social media sites such as Facebook, Twitter, Linkedin and 300+ more sites.
• List your inventory in multiple currencies
• The tracking information is not shared with a corporate office or MLS

hey invested about Dh924.08million in first six months this year

Parag Deulgaonkar
Other

While the Chinese have found a place among the top buyers of buildings/villas in Dubai, surprisingly, it is the Canadians who are investing a lot in the emirate’s realty market.

Canadians purchased 68 plots for Dh285 million, 388 apartments for Dh608m and 20 buildings/villas for Dh31.08m in the first six months of 2011, according to data exclusively shared by Dubai Land Department with ‘Emirates24|7’.

Although the Chinese do not figure among the top 10 buyers of apartments and plots, they find place in the list of building/villa purchasers. They rank sixth having bought 25 buildings/villas for Dh49.12m.

Craig Plumb, Head of Research, Mena at Jones Lang LaSalle, says: “While not yet registering in the Top 10 list, there has been increased interest in the Dubai market reported from investors from both China and West Africa in recent months.

The number of Chinese nationals visiting Dubai has increased significantly during 2011 and this is likely to act as a pre-cursor to increased investment in the local real estate market.”

Jordanians have been quite aggressive buyers in the first six months, having purchased 22 buildings/villas for Dh47m. They have bought 261 apartments for Dh330m and 67 plots for Dh304m.

Other top buyers in this buildings/villas category are Indians (Dh338m), followed by Britons (Dh241m), Pakistanis (Dh186m), Iran (Dh161m), UAE (Dh78.68m), Jordan (Dh47m), Americans (Dh30m) and Iraqis (Dh27.32m).

Indians continue to top the list of apartment and villa/building buyers, having spent Dh5.278bn.

Dubai property has become more attractive to Indian nationals living within the GCC, as prices have fallen significantly from their peaks in 2008 and 2009, Plumb mentions.

“These buyers tend to be long term investors in the market and most will hold properties for their own occupation or for their families use, they are not, therefore, so driven by short term market factors.”

Other factors explaining the high levels of Indian investment in Dubai real estate include the growth of disposable incomes from the increasing middle class within India and the feeling that property prices in many Indian markets are currently high and could adjust downwards as the market reaches its peak.

“There has also recently been increased interest from Indian companies in buying units in Dubai to operate on time share or partial ownership basis,” he adds.

Saudis, who have been primarily active in Dubai realty market for years, somehow seem to have limited their investment into land and apartments. They bought 58 plots for Dh320m and 422 apartments for Dh742m.

Iranians invested a total of Dh2.934m in the real estate market, having  bought 101 buildings/villas, 1,517 apartments and 107 plots.

“There continues to be strong interest in Dubai real estate from GCC nationals and those from other Mena countries. There has been a major influx of visitors from the GCC into Dubai over the recent summer months, and many of these may have decided to purchase real estate given Dubai’s status as a ‘safe haven’ within what remains a volatile region.”

He emphasis: “This is also likely to explain the continued interest from Iraqi and Jordanian nationals. With concerns over Iran’s relationship with its regional neighbours once again emerging, it is possible that Dubai may see an increased interest from Iranian investors in the coming months.”　

Copyright © 2011. Dubai Media Incorporated