Good News if it is Your First Time Buying a House

Buying a house for the first time? It's your lucky day!!!

The government of Canada has announced, effective February 19, 2014, under the Property Transfer Tax (PTT) First-Time Home Buyers’ Exemption program, qualifying first-time buyers can buy a home worth up to $475,000. The previous threshold was $425,000.

The partial exemption continues and will apply to homes valued between $475,000 and $500,000.

With this change, the government estimates 1,700 additional first-time buyers will annually be eligible to save up to $7,500 in PTT when they buy their home.

If you're in the market for a single family home in Vancouver proper, you might be out of luck due to elevated prices of houses here in Vancouver. There are not too many sub $500,000 currently on the market today.

The Real Estate Board, together with BC Real Estate Association, has actively lobbied to make home ownership more affordable for first-time home buyers. Check out these numbers.

• In 2008, as a result of industry lobbying, the provincial government increased the threshold to $425,000 from $375,000. 
• In 2005, the government increased the threshold to $325,000 from $275,000.

In case you're wondering... The PTT is calculated at a rate of one per cent on the first $200,000 and two per cent on the remaining value of the purchase price.

If you want to know more about the budget: 

http://www.bcbudget.gov.bc.ca/2014/default.htm

Vancouver by Bike circa 1974

I ride a lot here in Vancity. One of the most bike friendly places on earth. It has changed a lot these last few decades. Can you spot any familiar spots in this video from 1974?

Vancouver housing dilemma: Is it better to rent or buy?

Vancouver is one of the most beautiful cities in the world, but that global cachet has ratcheted up housing prices to levels that have made it impossible for many Vancouverites to get into the real estate market.
According to seasonally adjusted data from the Canadian Real Estate Association, the average price of a home in Halifax is $273,792. That number jumps to $541,637 in Toronto and a whopping $825,635 in Vancouver.

The question is how can Vancouver sustain a market when it's so expensive to get into it? The pool of people who can comfortably afford to buy a house has to be shrinking.
Average house prices have risen 5.5 per cent each year for the past 17 years. If that carries on for the next decade, the average price of a home in Vancouver would rise to $1.3 million by 2024.

Waiting too long if you're committed to living in one of the most livable cities in the world seems like a no brainer to me. I come from a skiing back ground and if you're familiar with Warren Miller movies... And I quote the man himself:
"I you don't go heli skiing this year; you'll be one year older when you do."

It seems his words of wisdom could apply here. If you wait too long to figure out a way into the market. It will just be a little harder in the future.

Besides, as a renter you're just paying down someone elses mortgage.

Get creative.

My two cents.