Edmonton Real Estate Blog

City Council sets the priorities for LRT construction and determines how funding will be used, however the City’s 30-year Transportation Master Plan includes extending LRT to all sectors of the City by 2040.

Source: www.edmonton.ca

Great starter home. 3 bedroom, 1.5 bath, 1135 sq ft, 2 storey home with fully finished basement and covered carport. Tastefully decorated in modern colours and hardwood floors. Brand new bathroom with marble floor tile, new sink and vanity , new tub and ceramic tile surround. Patio door leads to good size deck and backyard. Conveniently located close to schools, hospital, rec centre, south common with easy access to major roadways and bus routes. Only $269, 900. Call for more information or to book a showing appointment.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

You’ve found a house that you like but it needs improvements. The Purchase Plus Improvement program will allow you to add the renovation cost to the purchase price, so you can benefit from a low mortgage interest rate and make only one payment.
Before, you go and make an offer, there are a few conditions that will help determine whether this program suits your needs. One of the first misunderstandings with Purchase Plus Improvement, is that most people do not realize that they will have to pay for the renovations themselves, until the work is completed. The lender will mandate that the solicitor “hold back” the additional cost added to the mortgage, that represents the improvement amount. Once the work has been completed, an appraiser will have to supply the lender with an inspection report, to verify the work has been completed as agreed. The lender will instruct the solicitor to release the funds from his trust account, to pay for the improvements. My advice in these circumstances, is to take advantage of family, or lines of credit to finance these costs until completion. Some renovation companies my not require payment until work is complete.
Secondly, CMHC and Genworth both have guidelines regarding maximum improvement allowance. The improvements cannot exceed 10% of improved value or $40,000.
Thirdly, before I can submit this type of transaction to the lending institution, you will need to supply me with a quote and/or a renovation contract. For self-renovations provide cost of supplies from Home Depot/ Rona. Note, lender will not pay for borrower’s own labor.

Please ensure to keep all invoices and receipts. All invoices and receipt must also be provided to the lender before instructions are sent to the lawyer to release funds. The cost of appraisal is the responsibility of the borrower.
Here is an example of a Purchase Plus Improvement mortgage. The house is priced at $300,000 but it needs another $20,000 in renovations. You can add in the renovations cost to the purchase price and CMHC or Genworth will lend against the total value (purchase price plus the renovation cost).
Purchase price $300,000
Renovations $20,000
Total cost $320,000
Lending value $320,000
Max. Mortgage $304,000 (95% of $320,000)
Min. down payment $ 16,000
Please don’t hesitate to contact me if you have any questions or require additional information.

Do you have stuff in your home that you need to sell? Perhaps you have some suits or dresses that no longer fit, an older living room set that you’ve just had replaced, or a vinyl record collection you’ve been hanging onto for years.
If a traditional garage sale is not an option for you, there are other ways to sell those items.
For example, you could rent a stall for the weekend at a local flea market. This is relatively inexpensive and can be a fun activity for the whole family.
Another option is to advertise in your local community newspaper. Advertising rates in local publications are often much lower than in major newspapers.
You can also advertise on the internet. There are several popular sites, such as Craigslist.com and eBayClassifieds.com (Kijiji.com in Canada) where you can advertise for free.

Consider this scenario for a moment, the individual on the left invested $2,000 a year for nine years, a total of only $18,000 at which time she became disabled and stopped investing. Her friend on the right took the disability as a wake up call and decided it was time to start her own $2,000 a year investment program but she’s starting nine years later. At the age of 65, when they’re both ready to retire, there is still a difference in their investments even after one of them invested $70,000 over 35 years.

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284

Come check out this beautiful home in person this Sunday, the 5th at our open house.

10632 181 Avenue Northwest
Edmonton, AB T5X 6J8, Canada

IT’S STUNNING!!! 1852 sq.ft. 2 Storey, 3 Bdr Plus Main Floor den that could be used as a 4th bdr. It has 2.5 Bath, & Open Great Room Concept. Featuring Gleaming Hardwood, Earth Tone Tile, Neutral Paint & Laminate Floors, An Amazing Foyer With A Full & Open Ceiling That Accents The Beautiful Pillared Archway Which Divides The Formal Dining Room & Living room. A Lovely Traditional Dining Room Is Terrific For Entertaining During Those Special Occasions & Designed For A Full Dining Suite. The Great Room Has a Gas F/P. The Dinette is Bright & Cheery & the Kitchen Area Is Found At The Back Of the Home Opening up To the Deck & Back Garden. Also On The Main Floor Is A Laundry/Mud Room W/Newer Stainless Steel Front Loading Washer & Dryer W/Access To The Garage. Up The Grand Stairway To The Upper Level Is The Nicely Sized 2nd & 3rd Bedroom W/4Pc Bath & The Master Retreat That Boasts A Walk-In-Closet & A Gorgeous Spa W/Swirl Tub. The Home Also Has P/Fin Basement. For more information view realtor’s website.

To View & Search All MLS Listed Houses for Sale Visit Us At:

www.EdmontonHomesforSale.biz

Edmonton, May 2, 2013: With the a later than expected arrival of spring, average prices for housing in the Edmonton Census Metropolitan Area (CMA) decreased month-over-month in April after a surprising uptick in March. The REALTORS® Association of Edmonton reports that the all-residential price (including single family detached, condominiums, duplexes and row-houses) decreased 1.8% over March to $348,535. Compared to April 2012, the all-residential price was up 2.0%.

“The second quarter is the most active time of year for real estate sales,” said President Darrell Cook. “Both buyers and sellers want to complete the transaction before school starts in September and get settled into the new neighbourhood.” About 33% of annual sales happen in April, May, and June, while 25% occur in Q3 and 19% in the last three months of the year. In April, there were an estimated 1,645 (1,523 actual) total residential property sales through the Edmonton Multiple Listing Service® as compared to 1,656 (actual) in April 2012.

Estimated SFD sales of 1,037 units (960 actual) were down 4.4% from last year but condominium sales increased 4.1% year-over-year to 459 estimated sales (425 actual). There were 118 estimated sales of duplex/rowhouse properties (109 actual) in April (up 15.4% y/y). Sales numbers are estimated to account for late reported sales and provide meaningful comparison to previous year actual sales.

Market activity picked up in April according to both market activity indicators. The sales-to-listing ratio was up at 55% in April while days-on-market was down from 50 in March to 49 in April. Inventory continues to be relatively low with 5,294 residential properties of all types available on the MLS® System at the end of April. There were 2,769 residential properties listed for sale in April (up just 0.5% from April, 2012). “As many as 100 additional homes are listed everyday so motivated buyers need to maintain contact with their REALTOR® to ensure that they are notified the moment that a suitable property becomes available,” said Cook.

In April, the average price for a single family detached home was $402,270 (down 3.5% from March). The average priced condo sold for $243,503 (down 1.3% m/m) and duplex and rowhouses prices were up 2.8% to $324,975 on average. It is important to note that the average price encompasses all properties and can be driven upward by a higher than average number of expensive sales in any given month.  Contact your REALTOR® to get an accurate evaluation of your home.

Source: Realtors Association of Edmonton

As, April 19, 2010, CMHC made changes to minimum down payment requirement for purchasing rental/investment property. Also, rental income allowance to help qualify has been reduced. Ultimately both initiatives have made it more difficult for investors to purchase additional properties.

In order to purchase a rental property, minimum 20% down is required, hence, making it conventional. For investors to acquire multiple units, they will need to qualify for the mortgages using their own income and rental income.

Different lenders use different formulas for rental income. It is important to ensure you maximize your purchase power by using lenders that will allow more of your rental income.

The most conservative lenders use only 50% of the rental income. This amount is added to the applicant’s income and maximum 44% of that income can be used for housing costs and debt (i.e. Mortgage payment, property tax and heat)

Some lenders will allow you to use all of your rental income given they are declared and verified on your income taxes. These lenders will simply take the positive cash flow to add to your income or add the deficit as a liability.

Other lenders will use a rental worksheet. These worksheets will equate to 70% utilization of rental income.

Since, rental properties are not insured, each lender has their own nuances on requirements. This is where it gets tricky. In cases where investors’ portfolios include multiple units it is important to work with a mortgage associate prior to purchasing to review the portfolio and discuss various options. Also, since large portfolios also involve more documentation it would speed the purchasing process to ensure all documentation is in order.

Feel free to call if you have any questions or would like some more information.

For the second year in a row, Alberta has led all provinces in economic growth, according to Statistics Canada.

The federal agency reported Friday that Real Gross Domestic Product growth in the province was 3.9 per cent in 2012 compared with 1.8 per cent across the country.

In 2011, Alberta saw economic growth of 5.3 per cent while Canada’s growth was 2.6 per cent that year.

“Output of the oil and gas extraction industry increased 6.1 per cent. However, support services to the oil and gas extraction industry fell 17 per cent,” said Statistics Canada of Alberta’s economy. “Manufacturing increased 5.3 per cent with gains in fabricated metal products, machinery, wood products and computer and electronic products. Wholesale trade and transportation services advanced in tandem with goods output.

“Construction output rose 7.7 per cent with significant increases in oil and gas and electric power engineering construction. Strong demand for housing contributed to a 14 per cent advance in residential construction. Services output increased 3.7 per cent. Retail trade, professional, scientific and technical services and business services advanced. Health care, education, provincial and local public administration services increased while the output of defence and federal administration declined.”

When you’re looking for a new home, you want to find one in a great neighbourhood – or, at least, in a neighbourhood that is on the upswing. How can you tell if a particular area is improving? Here are some common indicators:

• Pride of ownership. Take a walk around the neighbourhood. Do you get a sense that people take good care of their homes? Are the lawns mowed? Is the landscaping trimmed? Are flowers planted? Homeowners are more likely to look after their properties when they like where they are living.

• Home improvements. Are people investing in their homes? Are they getting their driveways re-done? Their windows replaced? Are there signs of home improvement projects? If so, this is a clear indication that homeowners like the area enough to invest in their properties.

• Real estate sales activity. Do homes tend to sell quickly in the area? Do they sell for a good price? If so, the neighbourhood is probably in demand. If people want to live there, it’s a desirable area. • Business investment. Are businesses investing in the surrounding area? Is there an increase in the number of upscale shops, health clubs, restaurants, and other commercial enterprises that often locate near desirable neighbourhoods?

• Community involvement. Are there signs that the community plays an active role in the look and lifestyle of the neighbourhood? Are there neighbourhood picnics, yard sales and other get-togethers? Check Facebook.com to see if the neighbourhood has a community page.

• City plans. Find out what plans the city has for the area. Will there be road improvements done in the near future? Are there any major construction projects on the schedule, such as a new school or community centre. Although such projects can be disruptive in the short term, they may improve the neighbourhood – and, as a result, boost the value of any home you buy – in the long-term Of course, the best way to find out the desirability of a neighbourhood is to talk to a good REALTOR® who knows the area. Call today 780-634-8151

To view and search all MLS listed houses for sale visit us at www.EdmontonHomesForSale.biz