Dominic Darmanin

Cell: 604-788-1476 |

Investors Create Global Home Vacancy Crisis

Vacancy statistics in some of the world's major developed cities is dumbfounding.

Paris for instance, has 107,000 homes sitting empty equating to 7.5% of their total number of homes. To deal with the crisis Parisian authorities imposed a 20% tax on the fair market value of rent on these vacant homes. This effort proved to be an insufficient deterrent thus on January 2017 the tax was increased to 60%. This exorbitant tax attempts to mitigate speculation...

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#BC #Government's #Doublespeak on the 15% #Foreign #Buyers #Tax - Any Surprise?

The B.C. Government is talking out of both sides of its mouth regarding the 15% foreign buyers tax.
Could it have anything to do with the upcoming provincial election on May 9th? One can only wonder.

According to UBC Urban Studies professor David Ley, Chinese investors believe that the 15% tax is not permanent. In fact, Christie Clark has already relaxed the rules allowing non-citizens...

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Try and make sense of the following headlines and statistics coming out the the U.S. just this past week:

 

~Against expectations of a 0.5% jump, pending home sales tumbled 2.5% in January - the biggest drop since Dec 2013.

 

~Existing-home sales increased last month and were considerably higher than the start of 2015, but price growth quickened to 8.2 percent – the largest annual gain since April 2015 (8.5 percent).

 

~First time buyers in high demand areas continue to encounter...

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New CRA Principal Residence Rule to help Monitor Flippers

 

In an effort to clamp down on “flippers” also known as “shadow flipping” CRA now requires that home sellers complete a newly updated Schedule 3 Capital Gains (or losses in 2016) in order to claim the capital gains exemption.

 

This change came into affect in October of 2016. Prior to this change CRA did not require home sellers having to report the sale of a principal residence if the entire gain was tax...

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#2017 #Real #Estate #Trends ~ So Far!

According to Emerging Trends in Canadian Real Estate 2017 by PwC Canada
“Vancouver is expected to lead all Canadian cities with 3.3% in GDP growth in 2017 propelled by strong employment gains and rousing housing starts.”
The article goes on to say that most of this growth will be in multifamily and high-density condos. Uncertainty over the affects of the provincial government's property transfer tax (PTT) and foreign buyers tax (FBT)...

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That amounts to 8.2% of detached homes in Vancouver are unoccupied or owned by temporary or foreign residents. In Surrey the unoccupied number is 11,195 (6.2%), Burnaby 5,829 (5.9%) and Richmond 4,021 (5.6%). So combined, the other municipality's numbers are still less than the total unoccupied properties in Vancouver. This constitutes nothing short of a phenomenal distortion of normal domestic market forces which should be the primary driver of local home prices. But this simply isn't the case.

...
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According to Emerging Trends in Canadian Real Estate 2017 by PwC Canada

                “Vancouver is expected to lead all Canadian cities with 3.3% in GDP growth in 2017 propelled by strong              employment gains and rousing housing starts.”

The article goes on to say that most of this growth will be in multifamily and high-density condos. Uncertainty...

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Canada Mortgage and Housing Corporation (CMHC) is supposed to protect the banks and credit unions (hitherto referred to as “banks”) from a mortgagee defaulting on their mortgage obligation, but this isn't the whole story!

 

The question is: What is CMHC's role in the scheme of things?

 

When we borrow money for a mortgage from a bank the myth is that we are borrowing from saver's deposits. This is only partially true. You see, because of a magic trick called “fractional...

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When buying a home you are inundated with many details and expenses which tend to pile up.

Your financial institution will recommend purchasing mortgage insurance. Great idea but it might be the wrong product for you.

 

With mortgage insurance (also known as creditor insurance) the premium is added to your mortgage payments and the balance of your mortgage is paid off upon the death of the insured. The premiums don't change even though you're paying down your mortgage monthly and the insurance...

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A South African man who has been a 10 year resident in Shenzhen, China has a regular blog where he discusses daily life in China. His YouTube channel is SerpentZa. He did one show on “Owning Property in China” which presents his perspective into the Chinese housing market as a foreigner living in China.

 

Shenzhen is a tier 1 city which apparently has more millionaires than anywhere else in China. He gives two reasons why he doesn't buy property in China:

 

1)   ...

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You may not know that all licensed Realtors who represents you as a buyer or a seller owes you a fiduciary duty which signifies that he/she must work for your best interest with the utmost good faith.

What this means to you is that your Realtor has an obligation to make full disclosure of all the facts that he/she is aware of which may affect the value of the property you are buying or selling. Furthermore, your Realtor should work in your interest to obtain the best price they can for you regardless...

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A Transparency International report found that 46% of Vancouver's 100 most expensive homes are owned through shell companies, trusts and nominees affirming the suspicion of many of us in B.C. that money laundering is a major player in our local real estate market.

 

                “Of the 100 properties, 29 are held through shell companies, at least 11 are owned through nominees (listed as     students...

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The Canada Mortgage and Housing Corporation (CMHC) has issued a warning (November 17, 2016) of a possible 30% drop in home values in Canada. The headline read:

 

“CMHC says sudden rise in interest rates could cause home prices to drop 30 per cent”

 

I honestly don't understand the motivation behind issuing such a prediction and what their end game is. Why create concern, fear, anxiety and get people all stirred up?

 

If you get past the headline you will go on to read that:...

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The B.C. Government has appointed a superintendent for real estate in response to the “shady activities” of relatively few realtors primarily in Vancouver.  Mr. Michael Noseworthy's task is to restore consumer confidence in the industry which was scarred by the opportunistic and unethical  conduct of those realtors who engaged in shadow flipping. The Real Estate Council of B.C. which was the self-regulatory body responsible for dealing with shadow flipping in the first place...

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The stress and excitement of buying a home often leaves you with little time to think about much else except for dealing with the other necessities in life like working, family, paying bills etc. However, when purchasing a home your life circumstances often change which means that you should get your affairs in order at the same time. What does this involve? Here's a few very important things to think about:

 

Update Your Will: Many people don't even have a will. When buying a home or moving...

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The New Mortgage Rules Protect the Banks and Hurt the Consumer – Again!

 

The New Mortgage Rules Protect the Banks and Hurt the Consumer – Again!

 

What's really behind the new mortgage rules?

You can get the details of these new rules many places on-line. (See Dr. Sherry Cooper's article “MORNEAU TAKES OUT THE BIG GUNS TO SLOW HOUSING”. I want to discuss why I think these rules are going to be implements and how they will impact Canadians.

Apparently this is an official...

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The New York state senate has approved a bill (not yet signed by Governor Cuomo) making it illegal for people to even advertize renting out their home for less than 30 days. Should someone contravene this bill they would face $1,000, $5,000 and $7,500 in successive fines for their first three transgressions.

 

Meanwhile in Vancouver, Mayor Gregor Robertson wants to ban Airbnb rentals altogether unless they purchase a business license from the city. According to Robertson:

 

  ...

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Just like anything else we do in life, if we do something on a regular basis we generally get really good at it. Negotiating the sale or the purchase of a home is a fundamental skill that all Realtors must master if they are to represent their client's best interests. Realtors become proficient negotiators through the experience of being exposed to various scenarios and personality types on a regular basis. I think all Realtors would agree that no two deals are alike. Every contract we negotiate has...

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The Greater Vancouver real estate market is no longer insular. It is subject to a global economic, social and political interconnected network of forces and variables which greatly reflects in the value of our homes. Invariably, the economic and political policies of China, the US and the European Union in particular affects what happens to our home prices as much as our own Provincial and Federal government policies do.

 

 As a realtor it is sometimes challenging to keep pace with the direction...

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The numbers speak for themselves, no two ways about it!

 

            The Canadian and international press reported on October 26th that the Metro Vancouver market has plummeted with the rate of foreign investment dramatically dropping to 1.3% from 13.2% which was the seven week average just prior the 15% foreign buyers tax being introduced on August 2.

            I don't know what the...

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