So what factors make the Canadian mortgage market tick?
How has Canada avoided the foreclosure crisis?
How stable is our economy in relation to the rest of the World?
What percentage of Canadian households own their homes?
What is the average rate of equity within each Canadian home?
How has the Canadian government addressed speculators within the marketplace?
All of these answer are within the link below:
http://www.td.com/economics/special/el0610_cdn_mort_market.pdf
Monday, June 28, 2010
Wednesday, June 23, 2010
Divorce advice for appraisals
One of the most common words that married couples love to hate is “DIVORCE”; yet Canada’s divorce rate is one of the highest in the World @ 40%!!!!! This number is staggering but not surprising. From past experiences, the couples emotions are at an all time high and quite often people do not think rationally. The new words of the day are “child support”, “child custody”, “alimony”, “divorce cost”, “timing” however a key term for an appraiser is “property division”.
So who get’s the house?
For all separations there are two options in respect to real estate. The first choice would be to sell the property and divide the proceeds; while the second option would be for one party to “buy out” the other.
This is the time when things may become nasty!
One tidbit of advice is to never become attached to a commodity. Fighting over the LCD TV or that new dining room table takes up your legal representative’s time and in the long run will most likely cost more than their original purchase price.
It is highly recommended that each spouse hire a designated and licensed residential appraiser, known locally as a CRA (Canadian Residential Appraiser). In short, these folks are experts in their local market and these fine appraisers require annual recertification and educational development.
So why would a family require two valuations?
This is done to ensure that there is no undue influence being portrayed by the property owner. It is common to have one spouse wishing (or should I say pushing) for a high value; while the other wishes for a lower amount. As you can appreciate, there is an element of subjectivity with each appraisal, so a wise rule of thumb would be to accept a 10% variance between each valuation.
Another common practice is to hire a single appraiser by both spouses. This is by far the most cost effective measure. In this case, it would be best for both partners to arrange a mutual time to meet with the appraiser, to ensure that the appraiser does not overlook any deficiencies that may not be clearly visible!
Another tidbit of advice is to split the difference between each appraisal, which is save time and money for monopolizing your lawyer’s time.
Please keep in mind, an Appraiser’s final estimate of market value is the only opinion that is accepted within the court of law therefore a Realtor or Mortgage Broker opinions do not apply!
The value of the home is next divided equally between each partner. Another important element is the date of separation, which is sometimes not crystal clear. In this instances, it better to be proactive on having the appraisal completed since I have seen firsthand in the past- many properties appreciate in value rather quickly from the date of separation to the date of disposal.
Generally those folks who are most satisfied with the divorce proceedings are the instances which have been settled quickly. Keep in mind that respect is a two way street and this is not the time to get “revenge” on that the spouse who has not treated you with dignity.
Last January was a historic date in Halifax, as this region hosted the Canada’s first divorce fair. One day was allocated for the males and the next day was allocated for the females.
The verdict is still out on how well this schedule works for same sex couples!
I hope you have learned one facet of the appraisal process during divorces and contact me for further information.
I’ve included links for the Halifax Divorce Fair, Nova Scotia Barristers’ Society and the Nova Scotia Real Estate Appraisers Association:
http://www.legalinfo.org/index.php?option=content&task=view&id=243
http://www.nsbs.org/
http://www.nsappraisal.ns.ca/directory.html
So who get’s the house?
For all separations there are two options in respect to real estate. The first choice would be to sell the property and divide the proceeds; while the second option would be for one party to “buy out” the other.
This is the time when things may become nasty!
One tidbit of advice is to never become attached to a commodity. Fighting over the LCD TV or that new dining room table takes up your legal representative’s time and in the long run will most likely cost more than their original purchase price.
It is highly recommended that each spouse hire a designated and licensed residential appraiser, known locally as a CRA (Canadian Residential Appraiser). In short, these folks are experts in their local market and these fine appraisers require annual recertification and educational development.
So why would a family require two valuations?
This is done to ensure that there is no undue influence being portrayed by the property owner. It is common to have one spouse wishing (or should I say pushing) for a high value; while the other wishes for a lower amount. As you can appreciate, there is an element of subjectivity with each appraisal, so a wise rule of thumb would be to accept a 10% variance between each valuation.
Another common practice is to hire a single appraiser by both spouses. This is by far the most cost effective measure. In this case, it would be best for both partners to arrange a mutual time to meet with the appraiser, to ensure that the appraiser does not overlook any deficiencies that may not be clearly visible!
Another tidbit of advice is to split the difference between each appraisal, which is save time and money for monopolizing your lawyer’s time.
Please keep in mind, an Appraiser’s final estimate of market value is the only opinion that is accepted within the court of law therefore a Realtor or Mortgage Broker opinions do not apply!
The value of the home is next divided equally between each partner. Another important element is the date of separation, which is sometimes not crystal clear. In this instances, it better to be proactive on having the appraisal completed since I have seen firsthand in the past- many properties appreciate in value rather quickly from the date of separation to the date of disposal.
Generally those folks who are most satisfied with the divorce proceedings are the instances which have been settled quickly. Keep in mind that respect is a two way street and this is not the time to get “revenge” on that the spouse who has not treated you with dignity.
Last January was a historic date in Halifax, as this region hosted the Canada’s first divorce fair. One day was allocated for the males and the next day was allocated for the females.
The verdict is still out on how well this schedule works for same sex couples!
I hope you have learned one facet of the appraisal process during divorces and contact me for further information.
I’ve included links for the Halifax Divorce Fair, Nova Scotia Barristers’ Society and the Nova Scotia Real Estate Appraisers Association:
http://www.legalinfo.org/index.php?option=content&task=view&id=243
http://www.nsbs.org/
http://www.nsappraisal.ns.ca/directory.html
Thursday, May 20, 2010
It's renovation time...
Spring has spring and many folks have the renovation itch on their minds!
Within the last month, I had the sincere pleasure to speak with Donna D'Amour, a freelance writer for a new publication "Your Atlantic Canada Home".
This was an informal interview and I had the opportunity to speak about many misconceptions about the renovation process.
If I am planning renovations to my home in the hopes of improving the resale value, which are the best to take on?
People complete renovations for two reasons, one as a personal taste / lifestyle choice and the other being for adding value to your property.
It should not come as a surprise that the kitchen and bathroom are focal points for any property. These renovations also tend to be the most costly! The renovations project should depend upon the price point of your home.
You do not want to be the Best or Worst property in a neighborhood. The surrounding neighborhood will provide the parameters for your property worth. Knowing the current and potential value of your property is your guide as to where you spend time and money. It is a combination of projects that add the greatest value such as painting, floor cover replacement, modern hardware and fixtures, good storage and landscaping are all interrelated.
I see a growing trend of clients converting cottages into year round residences,
particularly retirees. Their focus is towards making properties more comfortable such as upgrading insulation, modernizing ceiling or wall finish, replacing older windows with more energy efficient products, installing a more conventional heating system, kitchens and baths and upgrading appliances.
We all know energy costs are not going down, so there has been increased interest on high efficiency / specialized products such as dual flush toilets, and energy star rated appliances.
What kind of return on investment could they produce?
The Appraisal Institute of Canada has developed a public web based guide identified as: RENOVA, which showcases to the consumer an estimated return on their investment, based on professional appraisers surveys. This interactive model is available to the general public free of charge and highlights over a dozen common items that are often renovated. For kitchens and bathrooms, expect a return of 75-100%. The Institute’s website is: www.aicanada.ca
Do you have any tips for economical renovations that can have a positive impact on resale value? (People may have limited resources, yet still want to improve the value.)
We’ve all been impacted by the downturn in the economy, so every penny counts. By far the most economical and highest return on investment is interior and exterior painting, which typically commands up to 100% payback.
Other budget orientated items would be upgrading light fixtures and modern light & wall switches, ceiling molding, baseboard trim / interior doors, painting kitchen cabinet doors, upgrading kitchen and bedroom hardware, replaced worn flooring and kitchen/bath counter tops.
Decks, awnings and solar exterior lighting are popular for homes and cottage and return up to 75%.
What are the renovations that do not produce much if any return on investment as far as resale value is concerned?
Any over improvement to a home or cottage could be considered a poor investment.
Having an in ground pool or a $50,000 designer kitchen within a cottage is not common and would not return much value. Pools are not high maintenance or expensive anymore but appeal to a certain segment. Items such as skylights, whirlpool tubs or a fence typically have returns as low as 25%. Although these items can enhance a sales.
Another factor that is often misjudged is the quality of workmanship. Poor quality craftsmanship and incomplete finish can contribute negatively to your property value. An example would be a residential market that typically contains two bedrooms on the main level. Removal of one room to expand the bedroom to include an office or walk in closet would reduce your pool of potential purchasers and will likely reduce property value.
How do I know what my house is worth before and after renovations?
Professional appraisers complete this type of analysis routinely. They have the sales and experience to interpret both markets and form an opinion of value prior to and after your proposed renovations. Each improvement is itemized to ensure that your proposed changes are functional, adequate and is in conformity with your influential marketplace. It is highly recommended that you hire an appraiser prior to starting any renovations, to ensure you enhance value to your property.
What would it cost me to hire an appraiser - I realize this may vary depending on the property and time it takes but could you give me a range?
For an urban or recreational property valuation, expect to pay $300-400, which is similar to what you pay for a home inspection.
Is there anything I didn't ask that you would like to add?
Nova Scotia, New Brunswick and Alberta are the only Canadian provinces where appraisers are licensed by the Government. The appraisal standards, ethics, insurance and requirements are those of the Appraisal Institute of Canada. The Nova Scotia Real Estate Association publishes a directory of professional fee appraisers for all areas in Nova Scotia. This can be accessed at www.nsappraisal.ns.ca.
Each valuation is independent, objective and unbiased. Experience truly matters and it is best to hire an appraiser who is familiar with the type of property being considered and the geographic area.
The two most common mistakes with renovation or construction are poor workmanship and failure to plan. There is an adage that goes - ” Fail to plan – Plan to Fail”. For example you shouldn't’t replace your bathroom fixtures and later decide you now want a new ceramic tile new floor. Local home improvement stores have much free print materials and staff. Use their staff and resources in your planning stage.
Here's the link for a trendy new magazine sponsored by Kent Building Supplies.
http://www.kent.ca/flyer/atlantic_canadian_mag_pdf.pdf
Within the last month, I had the sincere pleasure to speak with Donna D'Amour, a freelance writer for a new publication "Your Atlantic Canada Home".
This was an informal interview and I had the opportunity to speak about many misconceptions about the renovation process.
If I am planning renovations to my home in the hopes of improving the resale value, which are the best to take on?
People complete renovations for two reasons, one as a personal taste / lifestyle choice and the other being for adding value to your property.
It should not come as a surprise that the kitchen and bathroom are focal points for any property. These renovations also tend to be the most costly! The renovations project should depend upon the price point of your home.
You do not want to be the Best or Worst property in a neighborhood. The surrounding neighborhood will provide the parameters for your property worth. Knowing the current and potential value of your property is your guide as to where you spend time and money. It is a combination of projects that add the greatest value such as painting, floor cover replacement, modern hardware and fixtures, good storage and landscaping are all interrelated.
I see a growing trend of clients converting cottages into year round residences,
particularly retirees. Their focus is towards making properties more comfortable such as upgrading insulation, modernizing ceiling or wall finish, replacing older windows with more energy efficient products, installing a more conventional heating system, kitchens and baths and upgrading appliances.
We all know energy costs are not going down, so there has been increased interest on high efficiency / specialized products such as dual flush toilets, and energy star rated appliances.
What kind of return on investment could they produce?
The Appraisal Institute of Canada has developed a public web based guide identified as: RENOVA, which showcases to the consumer an estimated return on their investment, based on professional appraisers surveys. This interactive model is available to the general public free of charge and highlights over a dozen common items that are often renovated. For kitchens and bathrooms, expect a return of 75-100%. The Institute’s website is: www.aicanada.ca
Do you have any tips for economical renovations that can have a positive impact on resale value? (People may have limited resources, yet still want to improve the value.)
We’ve all been impacted by the downturn in the economy, so every penny counts. By far the most economical and highest return on investment is interior and exterior painting, which typically commands up to 100% payback.
Other budget orientated items would be upgrading light fixtures and modern light & wall switches, ceiling molding, baseboard trim / interior doors, painting kitchen cabinet doors, upgrading kitchen and bedroom hardware, replaced worn flooring and kitchen/bath counter tops.
Decks, awnings and solar exterior lighting are popular for homes and cottage and return up to 75%.
What are the renovations that do not produce much if any return on investment as far as resale value is concerned?
Any over improvement to a home or cottage could be considered a poor investment.
Having an in ground pool or a $50,000 designer kitchen within a cottage is not common and would not return much value. Pools are not high maintenance or expensive anymore but appeal to a certain segment. Items such as skylights, whirlpool tubs or a fence typically have returns as low as 25%. Although these items can enhance a sales.
Another factor that is often misjudged is the quality of workmanship. Poor quality craftsmanship and incomplete finish can contribute negatively to your property value. An example would be a residential market that typically contains two bedrooms on the main level. Removal of one room to expand the bedroom to include an office or walk in closet would reduce your pool of potential purchasers and will likely reduce property value.
How do I know what my house is worth before and after renovations?
Professional appraisers complete this type of analysis routinely. They have the sales and experience to interpret both markets and form an opinion of value prior to and after your proposed renovations. Each improvement is itemized to ensure that your proposed changes are functional, adequate and is in conformity with your influential marketplace. It is highly recommended that you hire an appraiser prior to starting any renovations, to ensure you enhance value to your property.
What would it cost me to hire an appraiser - I realize this may vary depending on the property and time it takes but could you give me a range?
For an urban or recreational property valuation, expect to pay $300-400, which is similar to what you pay for a home inspection.
Is there anything I didn't ask that you would like to add?
Nova Scotia, New Brunswick and Alberta are the only Canadian provinces where appraisers are licensed by the Government. The appraisal standards, ethics, insurance and requirements are those of the Appraisal Institute of Canada. The Nova Scotia Real Estate Association publishes a directory of professional fee appraisers for all areas in Nova Scotia. This can be accessed at www.nsappraisal.ns.ca.
Each valuation is independent, objective and unbiased. Experience truly matters and it is best to hire an appraiser who is familiar with the type of property being considered and the geographic area.
The two most common mistakes with renovation or construction are poor workmanship and failure to plan. There is an adage that goes - ” Fail to plan – Plan to Fail”. For example you shouldn't’t replace your bathroom fixtures and later decide you now want a new ceramic tile new floor. Local home improvement stores have much free print materials and staff. Use their staff and resources in your planning stage.
Here's the link for a trendy new magazine sponsored by Kent Building Supplies.
http://www.kent.ca/flyer/atlantic_canadian_mag_pdf.pdf
Tuesday, January 19, 2010
Property Tax Assessment 101
Property Tax Assessment 101
Property Tax Assessment 101:In Nova Scotia, our property tax assessment notices are issued the third week of January. We all anticipate opening this notice to determine how much our properties have changed in value over the last twelve months! In most regions, market values in Nova Scotia have improved at a more gradual pace when compared with other Provinces. For example, the Canadian Real Estate Association (CREA) recently reported that the average price for residential properties in Nova Scotia during the last several years were virtually unchanged, when comparing November 2008 and November 2009 property values. CREA statistics indicate that the average price in 2008 for a home in Nova Scotia was $239,438 compared to $239,514 in 2009. In British Colombia, the average price in November 2008 was $395,697, which shot up to $482,392- a 21% improvement!
The Property Valuation Service Corporation (PVSC) is a municipally controlled non for profit organization property tax assessment authority. Properties are reassessed each year and utilize a base date two years prior to the calendar date. The base date for the 2010 assessment notice would be January 1, 2008. A market value approach is utilized by PVSC for each and every assessment.
Let’s first consider the definition of Market Value provided by the Appraisal Institute of Canada:
"The most probable price for which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus."
There are three types of assessment categories within Nova Scotia:
1) Residential
2) Commercial
3) Resource
It is common to have split classifications for a property, especially on a commercial orientated property. For example, if a two unit dwelling offers retail space on the main level and a residential unit on the upper floor, the classification would most likely be a combination of residential and commercial. Resource classifications could include: farming, forestry or a community fishing service buildings. There are other properties that are exemplt from property taxes such as Government buildings.
Your property assessment is calculated by mass appraisal techniques. PVSC's large data base records characteristics within each and every property throughout Nova Scotia. Statistical analysis is used and sales are reviewed to capture general trends and features within your local marketplace. One could argue that mass appraisal reports are not as detailed or precise as receiving a single valuation completed by a fee appraiser. Questions do arise such as: what happens if your property does not fit the mass appraisal type of mold? There could be a likelihood that your property may be over assessed.
In theory, your assessment should reflect the current market value, matched with its base date. As previously noted, the base date in Nova Scotia is two year prior to the current year. Fee appraisers complete consultating services and we offen assist homeowners in the assessment appeal process. If you strongly believe that your assessment does not truly reflect the base date value, it is in your best interest to contact an appraiser. After the assessment notice is issued, the property owner has 21 days to file an appeal with PVSC. Once the property owner grants permission to the consultant, the appraiser contacts PVSC authorities and has the ability to work on their behalf to complete further analysis. Next, the appraiser carefully reviews the assessment file to determine if there are grounds for an appeal. It goes without saying; the appraiser should never complete an appeal that has no merit. The final stage is when the appraiser negotiates with the assessor and if that fails, the consultant can attend an appeal board hearing or to abandon the appeal.
One of the largest expenditures for commercial businesses is property taxes. There are a very limited number of firms in Canada that specialize in commercial property tax consultation. One of the most trust authorities in this business is AEC International. This organization has offices from coast to coast in six Canadian cities and has been in this highly specialized business for nearly four decades. Please view their website at:
http://www.aec-international.com/
Finally, I’ve provide a link for tax rates in each municipality throughout Nova Scotia and another link to the official PVSC website.
http://www.gov.ns.ca/snsmr/muns/fin/tax/pdf/nsmuntax2010-11.pdf
http://www.pvsc.ca/index.html
Property Tax Assessment 101:In Nova Scotia, our property tax assessment notices are issued the third week of January. We all anticipate opening this notice to determine how much our properties have changed in value over the last twelve months! In most regions, market values in Nova Scotia have improved at a more gradual pace when compared with other Provinces. For example, the Canadian Real Estate Association (CREA) recently reported that the average price for residential properties in Nova Scotia during the last several years were virtually unchanged, when comparing November 2008 and November 2009 property values. CREA statistics indicate that the average price in 2008 for a home in Nova Scotia was $239,438 compared to $239,514 in 2009. In British Colombia, the average price in November 2008 was $395,697, which shot up to $482,392- a 21% improvement!
The Property Valuation Service Corporation (PVSC) is a municipally controlled non for profit organization property tax assessment authority. Properties are reassessed each year and utilize a base date two years prior to the calendar date. The base date for the 2010 assessment notice would be January 1, 2008. A market value approach is utilized by PVSC for each and every assessment.
Let’s first consider the definition of Market Value provided by the Appraisal Institute of Canada:
"The most probable price for which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus."
There are three types of assessment categories within Nova Scotia:
1) Residential
2) Commercial
3) Resource
It is common to have split classifications for a property, especially on a commercial orientated property. For example, if a two unit dwelling offers retail space on the main level and a residential unit on the upper floor, the classification would most likely be a combination of residential and commercial. Resource classifications could include: farming, forestry or a community fishing service buildings. There are other properties that are exemplt from property taxes such as Government buildings.
Your property assessment is calculated by mass appraisal techniques. PVSC's large data base records characteristics within each and every property throughout Nova Scotia. Statistical analysis is used and sales are reviewed to capture general trends and features within your local marketplace. One could argue that mass appraisal reports are not as detailed or precise as receiving a single valuation completed by a fee appraiser. Questions do arise such as: what happens if your property does not fit the mass appraisal type of mold? There could be a likelihood that your property may be over assessed.
In theory, your assessment should reflect the current market value, matched with its base date. As previously noted, the base date in Nova Scotia is two year prior to the current year. Fee appraisers complete consultating services and we offen assist homeowners in the assessment appeal process. If you strongly believe that your assessment does not truly reflect the base date value, it is in your best interest to contact an appraiser. After the assessment notice is issued, the property owner has 21 days to file an appeal with PVSC. Once the property owner grants permission to the consultant, the appraiser contacts PVSC authorities and has the ability to work on their behalf to complete further analysis. Next, the appraiser carefully reviews the assessment file to determine if there are grounds for an appeal. It goes without saying; the appraiser should never complete an appeal that has no merit. The final stage is when the appraiser negotiates with the assessor and if that fails, the consultant can attend an appeal board hearing or to abandon the appeal.
One of the largest expenditures for commercial businesses is property taxes. There are a very limited number of firms in Canada that specialize in commercial property tax consultation. One of the most trust authorities in this business is AEC International. This organization has offices from coast to coast in six Canadian cities and has been in this highly specialized business for nearly four decades. Please view their website at:
http://www.aec-international.com/
Finally, I’ve provide a link for tax rates in each municipality throughout Nova Scotia and another link to the official PVSC website.
http://www.gov.ns.ca/snsmr/muns/fin/tax/pdf/nsmuntax2010-11.pdf
http://www.pvsc.ca/index.html
Subscribe to:
Posts (Atom)
