Form and function showcase The Residence on Marine in West Van

Mary Frances Hill
The Province

The Residences on Marine

What: 16 two- and three-bedroom condos

Where: 1347 Marine Drive, West Vancouver

Residence sizes and prices: Two- and three-bedroom homes range in size from 950 to 1,321 sq. ft, starting from approximately $1,795,900

Developer and builder: Atti Group

Sales centre: 1347 Marine Drive, West Vancouver

Sales centre hours: By appointment only

Sales centre telephone: 604-281-1878

The kitchen is often the hub of a home’s family and social life, a place where generous cooks serve meals to show affection for loved ones and creative types experiment with new recipes. It’s where guests converge at parties, and children bond with parents and caregivers, revelling in their roles as bakers’ helpers.

It’s an asset of home life, and at The Residences on Marine, the Atti Group’s community in West Vancouver, designer Cristina Oberti shows how to invest in it — namely, by using resilient natural materials to build in practicality and beauty.

“A kitchen is in itself a functional space, a place for work, so it needs to be practical,” says Oberti, principal of Cristina Oberti Interior Design Inc.

At the same time, it’s an esthetic centrepiece, particularly in an open-concept living area, like those on offer at The Residences on Marine.

Known as a luxury single-family home builder, Atti Group shares Oberti’s great appreciation for kitchens; it shows in the focus on details, like Italian cabinetry and marble backsplashes.

“A simple way to really bring a boost to a home is by installing a kitchen backsplash that pops,” Oberti says.

“Most kitchens these days are shared with the dining and living spaces, so a kitchen is often in view, and as such, should make a statement. The solid marble slabs we used for Residences on Marine are extremely effective. The veins in the stone turn the kitchen into a kind of canvas.”

The kitchen is particularly striking, with dark cabinetry on one side accompanying the refrigerator and ovens, and a white prep area and dark backsplash. The mood is deep and dramatic, thanks to the natural stone and aluminum — a sleek juxtaposition of materials, she says.
“This aspect of mixing and matching in the kitchen is, for me at least, a very fun process. I like to experiment and combine different finishes and really make an esthetic statement with my kitchens, and indeed, sometimes even try to create a mood.”

Atti Group sees The Residences on Marine as a perfect space for couples downsizing from single-family homes. Moving can be stressful, particularly for those who move from large homes in which they raised their children — places packed full of memories — but Oberti says the transition can be relatively painless if homeowners focus on why they’re doing so in the first place: to find a greater sense of simplicity.

“Empty nesters and couples looking to downsize later in life often do so to simplify their day-to-day, so a sense of comfort and ease is essential,” says Oberti.

“Downsizing to a smaller space shouldn’t feel like a downgrade, but more like moving into a permanent holiday home, someplace where you can feel at your best, and where stress is kept to an absolute minimum.”

© 2018 Postmedia Network Inc

April sales down 32 per cent

Mortgage Broker News

The Toronto Real Estate Board says home sales in April were down 32.1 per cent compared with a year ago.

The board says there were 7,792 homes sold through its MLS system last month compared with 11,468 a year ago.

The average selling price was $804,584, down 12.4 per cent compared with the same month last year.

However, the MLS home price index composite benchmark, which strips out the impact of changes in the mix of home sales, was down 5.2 per cent compared with a year ago.

The Toronto board says that on a seasonally adjusted basis the month-over-month changes in sales and the average selling price were minimal compared with a steeper drop-off in January and February.

The board says compared with March, sales slipped 1.6 per cent lower, while the average selling price fell by 0.2 per cent. 

Copyright The Canadian Press

Copyright © 2018 Key Media

Zoning land for rental housing one way to regulate prices

Linda Givetash
Canadian Real Estate Wealth

A proposal that would give cities in British Columbia the power to zone land for rental housing could moderate the price of affected properties, experts say.

Port Coquitlam Mayor Greg Moore, who led a committee on housing strategy for the Union of B.C. Municipalities, said the legislation tabled last month by the provincial government would give cities the authority to protect existing rental properties and calm speculation.

Currently, older properties in areas that are slated for higher density are attractive to buyers who want to make a significant profit because they can be turned into high-earning condominiums or houses for sale, he said.

“They’re trying to sell the potential in the increased value. And that increased value doesn’t allow for rental to make financial sense,” Moore said, adding the return on rental housing in the short term isn’t as great as units that are sold to individual buyers.

Cameron Muir, chief economist with the B.C. Real Estate Association, said rental housing gets “crowded out” for other uses, which is often ownership-type properties that offer revenue for developers even as land prices rise.

“If you’re going to build any kind of development, you start off with what the end product is going to be and what the market can bear and then you work yourself back from all the costs and the residual value is in the land,” he said.

“If it’s zoned rental only, of course the value will increase ? but it will only be limited to the sphere of the rental market.”

Brian McCauley, president and CEO of Concert Properties, agreed the legislation would impact property prices, but added it isn’t necessarily an incentive for developers to build more rental.

Concert has just under 5,000 rental units across B.C. and Ontario, and plans to develop more.

Examples of better incentives include support from the province or federal government to finance new developments, McCauley said.

“You can’t get as high of a financing rate so you are investing more capital in building a rental apartment building,” he said.

For Concert, McCauley said financial gains are sought by increasing and maintaining a large portfolio of rental housing.

Funding that’s becoming available through the federal government’s new national housing strategy and B.C.’s promise for $6 billion toward housing development are also intriguing opportunities, McCauley said.

Cities can also create incentives by increasing density for new rental units but Moore said those opportunities only come along when a developer wants to rezone or change the designated us of the land.

Despite record housing starts in many communities, Moore said a continuing shortage of rental housing illustrates why cities need more financial and regulatory authority.

“As a city or as a developer, if you can pull all these (incentives) together ? you can start to make rental and non-market rental a viable thing to build,” Moore said.

Muir said rental-only zoning is a good policy, but cautioned that it will be up to municipalities on how it is used and any new homes will still take years to be planned and built. 

Copyright The Canadian Press

Copyright © 2018 Key Media Pty Ltd

Buyers are not put off by rising interest rates, most are not taking recent mortgage regulation changes into account

Steve Randall
Canadian Real Estate Wealth

The spring homebuying season is underway and the intentions of potential homebuyers remains strong.

But a new report says that although buyers are not put off by rising interest rates, most are not taking recent mortgage regulation changes into account when calculating how much they can afford.

The BMO Spring Housing Report reveals that 23% of respondents are planning to buy a primary residence in the next year with an average price of $474,000 nationwide; $580K in Toronto and $603K in Vancouver.

There is no doubt in homebuyers’ minds that interest rates will continue higher (76%) but 53% said they are not stress-testing their mortgages to ensure long-term affordability; although those in Ontario and BC are more likely to do so (53% and 51% respectively).

“For the first time in years, interest rates are beginning to rise – making it increasingly important for Canadians looking to buy a home to stress-test their mortgage against a higher rate to ensure they can afford it over the long term,” said Martin Nel, Head, Personal Banking, BMO Bank of Montreal.

He added that mortgage professionals can help buyers navigate the regulations to ensure their budget is accurate.

Mortgage preferences tend to be based on rates

The report also shows that Canadians are generally in favour of fixed rate mortgages – 69% have one – but around half of respondents said their choice is based on rates available when they apply.

“It’s encouraging to see that Canadians are thoughtful about weighing their mortgage options based on rate, but it’s equally important that they consider how their choice will affect their day-to-day finances,” said Mr. Nel. “For example, a customer who likes the certainty of knowing exactly how much of their monthly payment is going to principal versus interest may not be the best fit for a variable mortgage even at a lower starting rate.”

Copyright © 2018 Key Media Pty Ltd

James Palanio Leads Provincial Real Estate Organization

BCREA

The British Columbia Real Estate Association (BCREA) is pleased to announce that Penticton REALTOR® James Palanio has been elected as its 2018-2019 President.

“I’m very pleased to be BCREA’s President,” says James Palanio. “This has been a period of significant change in our profession. We will be employing a collaborative and cohesive approach to enhance REALTORS®’ ability to continue to serve the best interests of their clients.”

Licensed since 2002, James Palanio is an Associate Broker with Royal Lepage Locations West realty in Penticton. He is very involved in organized real estate provincially, which allows him to be at the cutting edge of change within the real estate profession in the province. He has served as a Director at BCREA for six years and at the South Okanagan Real Estate Board for six years, as well as serving on numerous committees.

Joining Mr. Palanio as Officers of the Association are President-Elect Michael Trites of Royal LePage Northstar Realty in South Surrey and White Rock, Past President Jim Stewart of 460 Realty in Nanaimo and Chief Executive Officer Darlene Hyde.

BCREA also welcomes new REALTOR® Directors Anthony Bastiaanssen (Kelowna), Dan Morrison (North Vancouver), Katherine Rutherford (Kamloops), as well as new Public Director, Kam Raman. Returning REALTOR® Directors include Ray Harris (Port Coquitlam), Kyle Hislop (Chilliwack), and Cory Raven (Vancouver). Public Director, Mark Sakai, is also returning.

BCREA is the professional association for about 23,000 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.

To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.

Copyright ©2018 BCREA

Investigation finds REALTORS buying presale condos to flip

Ephraim Vecina
Mortgage Broker News

Under-the-table transactions between developers, speculators, and a secretive faction of real estate professionals are playing a major role in the continuous upward pressure on condo prices in Vancouver, according to an investigation by The Globe and Mail.

In the six new high-rise developments investigated (with three still being built), The Globe and Mail found that at least 24 realtors were among the speculators who purchased units early. Meanwhile, 20 others were listed under the names of local real estate professionals, but stated their occupations as “businessperson” in violation of regulations compelling them to indicate their interest in a property to others involved in the sale.

An alarming 56 speculators were listed with either foreign addresses or no Canadian addresses altogether.

The investigation found that such insiders get first access to buy the cream of the crop, the most desirable units which get snapped up almost immediately and then flipped for outrageous prices – drying up Vancouver’s already scarce supply in the process.

 “It’s turned into insider trading,” according to real estate professional Shali Tark, who was not a member of the clique. Buyers with exclusive access purchase “not just one or two – some are buying lots. It’s all behind closed doors, and there is no regulation of who is getting what.”

The Globe and Mail also found that 56 flips (out of a total of 173) in three of the buildings investigated were by insiders and speculators apparently funded by foreign capital. These flippers earned an average profit of $145,759, with some getting as much as $513,200 per transaction.

Allan Ross, who has spent nearly 2 years looking for a high-rise condo under construction, said that he threw in the towel and settled for renting a home for his family in the meantime after learning that developers offer price lists exclusively for agents and select clients (almost always foreigners).

“The whole process is so unfair. It’s about greed and profits. It absolutely is manipulated before you even get a shot at it,” Ross stated. “It’s not a free market. There are different rules for different people.”

Copyright © 2018 Key Media

Canadians remain afloat, for now

Neil Sharma
Mortgage Broker News

While outstanding consumer debt continues its staggering ascent, the diminution in delinquency rates may help some rest easy.

However, according to CMHC’s Mortgage and Consumer Credit Trends National Report for Q3 2017, that also coincides with a drop in mortgage originations.

“Credit, overall, has increased, but at a slower rate than the previous year,” said Tania Bourassa-Ochoa, a senior economic researcher with CMHC. “In terms of outstanding mortgage credit, it has also increased, but at a slower rate than one year earlier. We see that the number of mortgages originated has decreased compared to one year earlier.”

The mortgage delinquency rate—debt is considered delinquent if it hasn’t been paid in 90 or more days—has been steadily dropping, too, and non-mortgage lines of credit also hit a 10-year low. In fact, Bourassa-Ochoa says mortgage arrears have tapered significantly.

But outstanding consumer credit is growing, albeit at a slower pace during Q3 of 2017—it was 5.5%—than a year earlier, when it was 7.4%. Outstanding mortgage balances grew 6.3%, but that figure is down from 8.8%.

“The interesting thing about mortgages is that it’s outstanding balance, and it’s accumulating” said Bourassa-Ochoa. “When you look at mortgages originated in the quarters, we see that the number of new mortgages has actually decreased, but not by a lot. In 2017 Q3, we see a decrease in the number of mortgages issued at -1.6%, but the total balance that was originated increased 2.6% because prices continue to grow overall, so the mortgages that are originated are going to be relatively larger.”

Bourassa-Ochoa added that debt management is not yet a glaring concern, but it nevertheless requires close monitoring.

“Outstanding credit still remains a concern for Canada’s housing and financial stability, but that said, we’re monitoring many indicators and we don’t feel that there are any vulnerabilities, in terms of Canadians’ consumer debt,” she said. “They are managing their debt relatively well overall. Mortgage delinquency rates are some of the lowest, as well.”

Excessive household debt has been the subject of seemingly myriad alarming headlines recently, but the government’s approach has confounded some. According to the president of First Source Mortgage Corporation, homeownership isn’t fueling the looming debt crisis.

“Government should better focus its regulatory activity on credit card companies, as opposed to mortgages and telling Canadians if, and when, they’ll ever be able to become homeowners,” said David Mandel. “The debt that’s mounting isn’t restricted to mortgage debt, but rather easy-to-get revolving credit.”

Copyright © 2018 Key Media