British Columbia Resort Owners offered property tax relief

Published in the Real Estate Weekly of Vancouver, this is an important step and leap for fractional ownership real estate developments in Vancouver and British Columbia resorts.

Those who have purchased or plan to purchase a “fractional” ownership rental unit at a British Columbia resort have had fears of a higher property taxes eased by a recent provincial government ruling. Fractional ownerships, meant to lower the cost for resort buyers, allow investors in property to purchase a share of a property, usually a one-quarter share. Some such units are then placed in a managed rental pool.

However, in a ruling last year, the BC Assessment Authority, said that some resort condominiums may be subject to commercial rather than residential taxation, which would raise the tax exposure by up to six times.

Legislation introduced this month would create a more uniform system for these fractional ownership units. Under new regulations, that come into effect next year, property assessments will reflect how the units are actually used in these fractional ownership type of resorts in BC. Properties already in the residential classification will not be affected.

Rick Thorpe, Minister of Small Business and Revenue, explained, “today, a majority of new tourism and resort properties are strates, and providing certainty on how they are assessed will support growth in our all-season resort capacity and our goal to double tourism by 2015.” For more Vancouver pre-construction and presales real estate properties, click here:

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Some Comfortable with Mortgages
Canada’s boomer generation of homeowners isn’t much concerned about being mortgage free when they retire, according to RBC’s 14th Annual Homeownership Survey. While 66 per cent of all Canadians think it’s very important to have their mortgages entirely paid off by the time they retire, this sentiment decreases with age, dropping to 59 per cent among those aged 55 plus – the lowest percentage among all age groups. More than a third (37 per cent) of the 55 plus age group still has a mortgage on their homes, compared to 71 per cent of those aged 45-54 who have a mortgage – an indication that many older Canadians are successfully paying down their mortgages leading up to retirement. While the national average remaining on Canadians’ mortgages stands at $105,557, Canada’s boomers have an average of $80,331. “It appears that the level of importance in being mortgage free in retirement is decreasing for boomers,” explained Catherine Adams, a vice-president of RBC Royal Bank. You can find more information about new Edmonton Condo real estate properties online.

Most in Greater Vancouver could handle a mortgage rate hike

A new study shows that most Canadian home buyers and owners would shrug off a modest hike in mortgage interest rates according to an article published in the Real Estate Weekly newspaper in May 2007. The Pacific Northwest pre-construction property market in condo tower residences has followed these findings as well.

A report from the Canadian Association of Accredited Mortgage Professionals (CAAMP), states: “Mortgage holders continue to be satisfied with their current rates and could absorb a further 0.5 per cent increase, without it having a ‘significant impact’ on their standard of living.”

The report, authored by CAAMP’s Chief Economist Will Dunning, was based on information gathered by Maritz Research in a phone survey in February. “Canadians are financially fit and the mortgage market reflects this,” said Jim Murphy, President and CEO of the Canadian Association of Accredited Mortgage Professionals. “CAAMP asked Canadians how aware they aware of alternative products such as interest-only mortgages, longer amortization periods and no down payment mortgages. About half of consumers, 51 per cent, said they were aware. Thirty-six per cent responded positively to the alternatives, 27 per cent were negative and 31 per cent expressed a neutral view. Younger Canadians who did not own homes were most interested in these alternatives. On the whole, the CAAMP survey shows Canadians remain confident and optimistic about the future of the real estate market.

Still, borrowers remain cautious. Seventy-three per cent opt for a fixed term compared to 67 per cent a year ago. Variable rate mortgages account for 21 per cent of the total mortgage market and combination mortgages for only 6 per cent (down from 11 per cent a year ago).

Responding to recent increases in mortgage rates, only 16 per cent of Canadians noted a positive impact, whereas 26 per cent noted a negative impact on their overall standard of living.

Single Women Active in Real Estate Market
Single females continue to knock down barriers by purchasing real estate and tackling home repairs. Currently, 30 per cent of single, never-before married women own their own home, while 45 per cent of divorced or separated women and 64 per cent of widowed women are homeowners, according to the Royal LePage Female Buyers Report released last week. Additional new details about pre-construction and Whistler fractional real estate ownership properties are online.