Posted on
December 6, 2018
by
Tibor Bogdan
A few years ago, city officials in Vancouver began seeing a rise in special applications by commercial and residential developers asking for permission to skip any floor that contained the number four, in addition to the 13th floor.As the city continued to build up, this meant that more buildings were shooting up without a fourth floor, a 13th floor, a 14th floor, 24th floor and so on.
What began as an accommodation soon became a bureaucratic headache for city staff and a glaring safety risk for emergency personnel.
“It happened with just one or two buildings at first and then spread rather rapidly. So before we knew it, it was being applied to most new applications coming in,” said Pat Ryan, Vancouver’s chief building official.
“It was starting to spiral out of control.”
In 2015, Vancouver announced it was banning the practice of leaving out floor numbers in new condo and office tower developments.
The biggest concern, says Ryan, was that fire crews and condo owners were being put at risk by the unpredictable numbering system, noting that firefighters climbing stairs in a smoke-filled environment could easily be off by a number of floors if they’re not in sequential order.
“On a fire truck, you also put the pressure of the water hose to match the floor of the building. If you’re off by 10 stories, that could create confusion,” he said. “Basically, it just wasn’t worth the risk of continuing.”
Vancouver buildings that were already missing floors were not required to re-number, but they had to add extra signage and lighting on the floors, in the stairwells and in the elevators to assist emergency personnel.
Ryan said the city didn’t want to continue to allow the long-held practice of doing away with the 13th floor, but not allow the same practice to be applied with any floors that contained the number four, for fear of being seen as favouring one cultural group over another.
“So we put all the numbers back. It just made our lives so much simpler,” he said. “We were expecting backlash, but it just didn’t happen.”
Edmonton says it also has a similar policy in place. But just north of Toronto, which allows irregular address numbering, the town of Richmond Hill, Ont., approached this issue in a different way: it has banned outright the number 13 and four from any new housing developments. The town was getting inundated with special requests from homeowners to add suffixes, like an A or B, to addresses containing the number four because they were having difficulty selling their homes.
Richmond Hill council passed a resolution in 2013 to disallow the number four to be used in any new ground-level housing developments. ” The number 13 had already been banned from addresses for at least 20 years, said Gus Galanis, director of development planning for the town.
“What really prompted the change was the frequency in requests,” he said. “They said it was basically for cultural reasons, they didn’t want to go into details but said it was because of bad luck.”
Galanis says it came down to the council providing good “customer service” to its constituents. “We’ve been trying to work with the public to see where we can accommodate, and I think in my mind, we’ve been very flexible,” he said.
For real estate agent Tina Mak, she says cultural superstitions — whether it be a property address or the way a front door is lined up with a backdoor — can be an immediate deal breaker for her clients, and her.
“I’ve done it a million times… (I’ve told them) I don’t want you to buy this because I see that you will have a hard time selling it in the future,” she said.
“If you want to buy it, I’m not going to give you any advice because I don’t believe this is the right purchase for you.”
What's your opinion? Should the municipal governments consider requests of this kind? Please comment.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
November 29, 2018
by
Tibor Bogdan
Mortgage fraud occurs when someone deliberately misrepresents information in order to obtain mortgage financing that would not have been granted if the truth had been known.
This can include:
-Misstating one's position or inflating one's income or length of service at their job;
-Misstating employment status (i.e. salaried/full time versus contract, part time, hourly or commission-based or self-employed);
-Misrepresenting the amount and/ or source of the down payment;
-Purchasing a rental property and misrepresenting it as owner-occupied;
-Not disclosing existing mortgage and/or debt obligations;
-Misrepresenting property details or omitting information in order to inflate the property value;
-Adding co-borrowers who will not be residing in the home and do not intend to take responsibility for the mortgage.
Another common form of fraud is when a con artist convinces someone with good credit to act as a "straw buyer."
A straw buyer is someone who agrees to put his or her name on a mortgage application on behalf of another person. In return for their participation, straw buyers may be offered cash or promised high returns when the property is sold. Often, straw buyers are deceived into believing they will not be responsible for the mortgage payments. Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be responsible for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.
(This article was reported originally by Vancouver Sun)
If you have any questions or would like to discuss this, please contact me.
Tibor Bogdan & Associates *Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
November 23, 2018
by
Tibor Bogdan
In Mortgages, What’s Old is New Again - The "One Week's Salary" Rule
Back in the good old days – assuming you deem pre-Second World War the good old days – there was a time-honoured maxim. It went like this: "One week's salary for one month's mortgage payment."
That was the measuring stick for how large of a mortgage you should get. It defined a comfortable life whereby your payment would never be big enough to cause ulcers, marriage breakups and other bad stuff.
Over the years, for reasons that follow, that measuring stick got bigger. But in 2016 and 2017, regulators put the smackdown on free-spending mortgagors, bringing us all the way back to the days when families gathered around the radio and ate dinner at the same table.
As the 1980s began, homeowners spent an average of 17 per cent of their income on mortgage payments, property taxes and heat. But as people demanded nicer homes closer to big cities, home prices climbed faster than incomes, and so did debt-servicing costs. By the fall of 2016, new home buyers were spending an average of 25.6 per cent of their income on basic housing outlays.
Most new buyers have never heard of the one-week pay rule because one week's pay stopped buying what it used to. Today, it doesn't get you to first base in our biggest cities. As of December, the average wage earner making $992.87 a week and putting down 20 per cent could get a $289,000 mortgage with a payment that's 25 per cent above their weekly earnings. As years went by, lenders and policy makers catered to home-buyer demand by allowing a bigger percentage of income to be consumed by housing costs. Whereas the old rule of thumb suggested no more than one-quarter of your income should go to housing, the industry let that number rise, up to 39 per cent (or even 50 per cent at pricey non-prime lenders).
The trouble is, not only did debt ratios and allowable amortizations go up, but interest rates went down. So people could take on more and more debt with the same payment size. That's a concern when rates are falling. But it's a macroeconomic danger when rates are climbing.
Until somewhat recently, the stats hadn't been overly alarming. Most people were merely taking on the same amount of debt as they always have, relative to income. But a rising-rates environment changes everything. A significant minority of those same borrowers would find it much harder to make those payments if interest costs "normalized."
Seemingly overnight, federal policy makers have taken us back to yesteryear.
By imposing new mortgage stress tests, they've required most lenders to use a two-percentage-point higher interest rate when assessing people's debt-service capacity.
Effectively, that has pushed down the maximum mortgage payment that the average Canadian can be approved for to, you guessed it, about one week's pay.
So, it seems what's old is new again. Whether it was Ottawa's intention or not, they've single-highhandedly brought us back to a quaint historic metric: "One week's salary for one month's mortgage payment."
Posted on
November 16, 2018
by
Tibor Bogdan
Have you ever wondered what type of insurance you require when purchasing a strata unit?
Q. Recently we bought a strata unit and we were advised to get liability insurance. We understand that there is strata insurance already in place that contains liability insurance and we are wondering why we should get our own as well?
- J & A
A. Hello J & A,
I have asked Terry McCarthy, CIP from Payne, Travis & Associates to explain strata insurance. Terry is a Chartered Insurance Professional with 15 years experience in handling strata building claims.
Individual strata unit owners are strongly encouraged to purchase their own Condo insurance coverage which covers their contents, any tenant improvements and additional living expenses. This should also include liability coverage.
Strata Building Insurance carries deductibles as do other types of insurance. They can be quite large, typically $5,000, but some are $25,000 or more. They often have different deductibles for water losses and other types of losses such as fires. Keep in mind that strata building insurance only covers common property.
The strata act protects unit owners and tenants from action in the event of their negligence causing damage to the building. The new act, however, stipulates that if owner is found “responsible” for a loss causing building damage, they can be charged for the amount of the building deductible only. Then their condo policy will respond to the building deductible. If the damage they cause is in excess of the building deductible, then the building insurer must cover the excess. We find owners are found “responsible” if the cause of the loss occurs in their unit, for instance a pipe in the unit bursting and causing building damage. As long as the by-laws of the strata note that unit owners must pay for the building deductible then the owners insurance will respond. The unit owner will still pay the deductible noted on their own policy which is usually $500.
Unit owners can still be held liable for their negligence if damage is caused to contents or tenant improvements of other unit owners. This is dealt with by their liability coverage.
To conclude, I suggest that you always read the strata documents and bylaws to verify what type of insurance the Strata carries and how it will effect you if there is a claim made against you. Also, consult an insurance provider to determine whether or not you need to purchase any additional insurance to protect yourself and your contents in the result of loss or damage.
If you have more questions regarding property insurance contact:
Terry McCarthy, CIP Payne, Travis & Associates
Phone: (604) 951-3011
terry.paynetravis@telus.net
Posted on
November 2, 2018
by
Tibor Bogdan
I have another Q & A today...
Q: Many years ago we decided to share the expenses with our next door neighbor and drill a well. The well is on our property and our neighbors have free access to maintain their lines if necessary. Now we are thinking of selling our acreage and I wonder if we should do something about it before we sell. James B.
A: Hello James. This sounds like a good question for a lawyer. Over the years I have come across similar situations and from my perspective this looks like an issue of an unregistered easement. Your neighbor has been using part of your property for the purpose of supplying water to their property and even though you don't have anything in writing, it is likely that the easement exists (implied easement). My advice to anyone in this circumstance would be to inform the listing agent about this and make sure this is properly disclosed in writing to all potential buyers. However, the best thing to do would be to visit a Real Estate Lawyer for advice, because they may suggest that you register an easement on title.
Do you have a Real Estate question? Call me or email me your questions
Tibor Bogdan *Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
tbogdan41@gmail.com
Posted on
October 26, 2018
by
Tibor Bogdan
Q: With the recent legalization of cannabis, any person can legally grow 4 cannabis plants per residence for personal use. I know that lenders have strong policies on issuing mortgages that were growing Cannabis. Have lenders updated their policies in this regards? - Peter
A: Thanks for your timely question Peter. I called Mr. Pat Pelletier from Dominion Lending Centres to help me answer this for you and here it is:
In lieu of the recent legalization of Cannabis the lenders have updated their Standard Mortgage documents to reflect their position on the issue. They have changed their Standard Mortgage to include the following. Whether it is enforceable in court is unclear, but here it starts.
"You certify that you have made reasonable investigations and inquiries and that, to the best of your knowledge, no part of your property or any land next to your property is, or has been, or will be, used to manufacture, refine, handle, treat, store, dispose of or in any other way deal with any substances, except as allowed by laws, regulations and orders, provided any growing, manufacturing, refining, handling, treating or storing of marijuana on your property is strictly prohibited whether permitted by law or otherwise."
Pat Pelletier Dominion Lending Centres http://patpelletier.com/
Posted on
October 19, 2018
by
Tibor Bogdan
B.C.'s finance minister has introduced legislation to move ahead with a controversial speculation tax on vacant or underutilized properties.
The bill ends months of speculation about how the province planned to use the new levy to help deal with runaway housing prices in some B.C. communities, outlining a range of tax rates from 0.5 to two per cent and a number of exemptions.
If the legislation is passed, the new tax will apply to all properties in designated regions of B.C. These include most parts of Metro Vancouver and the Capital Regional District (excluding the Gulf Islands), along with Abbotsford, Mission, Chilliwack, Kelowna, West Kelowna, Nanaimo and Lantzville.
Homeowners who live at their properties — or rent them out — will receive an exemption by filing an annual declaration form.
To read the full article, click the link below:
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
--------------------------
This past 7 days there were 69 new listings in Abbotsford.
32 Residential Detached and 37 Attached (Condo's & Townhomes)
Residential Detached Listings:
Residential Condo's / Townhomes:
I'll be back next week to report all of the new listings.
Tibor
Posted on
October 12, 2018
by
Tibor Bogdan
I came across an interesting article by Kelleway Mortgage Architects...
Have Us REVIEW Your Mortgage Renewal Before You Sign
Recently I was invited to attend an all-day financial planning seminar hosted by Custom Plan Financial located in Vancouver, BC. From a presentation by Manulife One and several conversations with financial planners, here are a few thoughts to pass along.
1) In Canada, 50-60% of mortgage borrowers automatically sign a renewal with their current lender after their mortgage term expires (e.g., most commonly 5 years after the original funding date).
2) As a mortgage broker, I have heard many times from borrowers that the rates their current lender (e.g., big bank or credit union) were offering at renewal were 0.5% to 0.75% higher than mortgage rates currently available elsewhere.
3) Even after negotiating with their current lender at renewal, borrowers often received a mortgage rate higher than a new customer would receive from that same lender at that same time.
In addition, some borrowers discover that their current advanceable mortgage (which allows them to easily borrow money from their home equity) has a collateral charge attached. A collateral mortgage cannot be transferred to another lender - even at the end of your mortgage agreement - without the help of a real estate lawyer to break your agreement, thus incurring legal costs. Also, on paper, the collateral charge can make it look like you have more debt than you do as the lender can register your mortgage for up to 300% of the value of your home. In effect, there may be no “equity room” left for another lender to offer you a second mortgage secured by your property.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
--------------------------
This past 7 days there were 69 new listings in Abbotsford.
32 Residential Detached and 37 Attached (Condo's & Townhomes)
Residential Detached Listings:
Residential Condo's / Townhomes:
Foreclosures (from Hope to Whistler) - none this week.
I'll be back next week to report all of the new listings.
Tibor
Posted on
October 6, 2018
by
Tibor Bogdan
Q: My son wants to buy a condo and we were told it is an Assignment of Contract. Could you tell us what that means, if it is legal, and what we should be aware of? Doreen
A: Hello Doreen,
With the changing market, assignments of purchase contracts are starting to pop up. Currently there are 29 in Abbotsford Click Here to View Listings and only 4 in Chilliwack Click Here to View Listings
In most cases these are new properties that buyers secured a contract for, during the pre-sale phase of marketing (1 or 2 years ago) and now they want to sell the contract as the possession dates are getting closer.
What's an assignment? A contract assignment occurs when a buyer transfers their contract to buy a property to someone else before the completion date. The buyer can transfer the contract for any price, even for a higher price than they paid for the property.
Are they legal? Yes. Real estate contracts are assignable under the law unless the contract expressly forbids it. Make sure that the contract stipulates that.
What to be aware off? Since this is a very complex transaction, there are many things to be aware of and I highly recommend that you talk to a real estate professional and lawyer prior to committing to anything.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
Posted on
September 28, 2018
by
Tibor Bogdan
The season of windy and rainy weather has begun; be pro-active with house preparations.
Gutters have an important function: they direct water off the roof and away from the home. But gutters are only effective when they’re clear — and Mother Nature ensures those occasions are rare.
Clogged gutters can send water pouring over the sides to pool around the foundation. This causes cracks and damage to the foundation, resulting in wet basements, mold growth and expensive repairs.
Water from clogged gutters also can damage fascia boards, which could lead to interior wall and ceiling damage. And water that spills over gutters can land on flower beds, small trees or shrubs that surround the home’s base.
In addition to landscape damage, standing water can create a breeding ground for mosquitoes and other insects. This is why it’s important to protect your gutters.
What can you do? Of course the regular maintenance of your gutters is necessary. Besides that, you could invest into products that would prevent the leaves and small branches from getting into your gutters.
For example, here is something I saw recently, and I like it. The cost is very low compared to other systems.
Tibor Bogdan & Associates
*Personal Real Estate Corporation
Sutton Showplace Realty
cell: 604-855-2521
TF: 1-877-858-2408
 What is a pre-sale?Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.
Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.
If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.
The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.
Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.
A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.
If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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