Maple Ridge

Tax Assessed Value vs Fair Market Value?

In just this past month, I’ve had 3 buyers tell me that they aren’t willing to pay much higher above what the tax assessed value of the property is. Reason? They all seem to be under the impression that tax assessed value equals what the price of the property should be.

It’s because of this misconception that some listing agents write things such as “priced under assessed value” etc in their marketing remarks, and in turn, partially because of those marketing remarks properties priced under assessed value have been deemed good deals. This is not necessarily true.

ASSESSED VALUE is a valuation placed on property by a public tax assessor (in BC it’s a provincial crown corporation called BC Assessment) for purposes of taxation. Tax authorities, for example the City of Vancouver, then apply their own tax rates to the assessments provided.

FAIR MARKET VALUE is the price that a knowledgable, willing and unpressured buyer is willing to pay to an owner who is willing and is under no obligation to sell their property. Prior to listing a property, the listing agent typically will pull up comparable properties that sold in the last 3-6 months, depending on what they find. They then guide the seller as to how to price their property. The agreed upon price between a buyer and seller effectively becomes the fair market value of that property. This is also why you should take a look at comparable sold listings prior to making an offer; it’s a great way to determine whether the subject property is priced accurately.

Have any questions? Feel free to reach me or my partner Laura at any time.

Amy Kizaki
Team Leader
Vancouver PowerSearch

778 855 0841 direct
604 209 3674 Laura direct
amy@vancouverpowersearch.com
laura@vancouverpowersearch.com

Have you used your home renovation tax credit?

Deadline is approaching! At the end of January 2010, the Federal Home Renovation Tax Credit incentive, part of Canada’s economic action plan, will be coming to an end. If you’re a Canadian homeowner and were thinking of a kitchen remodel or finally landscaping your front or back yard…time to move.

Here’s the low-down on the Home Renovation Tax Credit.

What is it? : It’s a federal non-refundable tax credit based on eligible expenses for improvements to your house, condo or cottage exceeding $1,000 but not more than $10,000.

Maximum credit: $1,350.
Valid period: Purchases made before February 1, 2010.

Eligible expenses must be of an enduring nature and integral to your property (no, new TVs or lawn mowers don’t count, sorry).

Be sure to get your contracts in writing, and keep your receipts. Claim the credit on your 2009 income tax return at the time of filing.

Examples of Eligible Expenses:

• Kitchen, bathroom, basement renovations
• New windows, doors, flooring
• Major remodels such as building an addition, garage, deck, shed or fence
• A new furnace, woodstove, fireplace, water softener, water heater
• A new driveway or resurfacing a driveway, re-shingling a roof, or painting of a house
• Landscaping- new sod, perennial shrubs and flowers, trees, etc
• Swimming pools (must be permanent, in and above ground)
• Fixtures- blinds, shades, shutters, awnings, lights, fans, etc
• Associated costs such as permits, professional services, equipment rentals, and incidental expenses

Examples of Non-eligible Expenses

• Furniture, appliances, tools, and audio and visual electronics
• Routine repairs, maintenance and cleaning (eg. furnace cleaning, snow removal, lawn care, pool cleaning, house cleaning)
• Financing costs

For more information on the tax credit, call 1-877-959-1CRA or visit www.actionplan.gc.ca.

Hope that you’ve all had a fantastic holiday season and a great New Years! 2010 is going to be an exciting year for Vancouver and we wish you all the best as well!

Vancouver Real Estate Sales break records in July

And we thought June was a great month for the Vancouver real estate market.

The Vancouver Sun reported a couple of days ago that both the Metro Vancouver and the Fraser Valley real estate boards reported record home sales for the month of July. Below are the juicy details (aka the numbers)!!

July Sales for Vancouver Real Estate

4,114 sales in Metro Vancouver (via MLS)
–> 89% increase from July 2008
Price of typical single family home in Greater Vancouver area: $711,702
–> -5.5% since July 2008
–> +10% since beginning of 2009

2,089 sales in Fraser Valley (via MLS)
–> 62% increase from July 2008
Price of typical single family home in Fraser Valley area: $477,420
–> almost -6% since July 2008
–> almost +4% in the last 3 months

Of these sales, a whopping 37% were comprised of first time home buyers.

#1 Place to Live!!

Vancouver has come out on top of a recent Livability survey!

Its not that surprising for the people that have already moved here, lived here or has ever been here.  But it might surprise people who have not been to Vancouver. Here is the Full Story.

http://www.news1130.com/more.jsp?content=20090608_174330_9272

Makes me proud to be living in a world class City!

Government’s Action Plan for the Economy and how it affects Home Buyers and Home Owners.

Earlier this year Prime Minister Stephen Harper rolled out Canada’s Economic Action Plan. In it there are some plans to help current home owners and First time home buyers.

Current homeowners would be able to get tax incentives or relief up to $1350 for renovating their current home between Jan27,2009 and Feb 1, 2010.

For First time home buyers, the withdrawal limit from your RRSP’s has been increased from $20,000 to $25,000. Withdrawals have to be made after Jan 27, 2009.

Also for first time home buyers, there is up to $750 of tax credit for closing costs for those who purchase after Jan 27, 2009.

for more information and full details go to www.actionplan.gc.ca

Edison Chua
Real Estate Consultant
604 – 728 – 1939

edison@vancouverpowersearch.com

Maple Ridge