Archive for September, 2009

Pros and cons of leasing cars versus buying

Monday, September 21st, 2009

Scott Hannah
Province

Ford’s Escape and Focus sit for sale in this file photo. Photograph by: Reuters

Q: I’m going broke keeping my old car running. I need a new one — should I lease or buy a new car?

A: Before leaving your driveway in search of a new car to lease or buy, determine what you can afford each month.

Start by looking at your income and existing monthly and seasonal expenses. Over and above your loan or lease payment, you need to consider more than just fuel and insurance.

While you won’t need to spend money on maintenance each month with a new vehicle, you will need to find out ahead of time what you’re obligated to pay and how often. Setting money aside for those expenses on a monthly basis is a lot easier than being hit with a large bill later on.

A few things to keep in mind as you do your shopping:

– Read and understand the fine print on all purchase and lease agreements.

– Zero-per-cent interest on a purchase may mean that you still have a lump sum owing at the end of the term. While your payments are low during the term of the initial loan, you do not own the vehicle until you pay the remaining balance.

– Leasing a vehicle may offer lower monthly payments, but it’s like renting. At the end of the term, you either give it back to the dealership or buy it out.

– It’s easier to sell a car — even with a loan against it — than finding someone to assume a lease if your circumstances change.

If a new car would stretch your budget to the max, consider a good, new-to-you car instead.

Regardless of what the ads say, don’t fall prey to low bi-weekly payment offers. It’s only a great deal if you can afford it.

Make sure the payment is as comfortable as the car.

Scott Hannah is the president and CEO of the B.C.-based Credit Counselling Society. For more information about managing your money, check www.nomoredebts.org or call 604-527-8999.

© Copyright (c) Driving

 

Shaughnessy homeowner stunned by sale of possessions

Monday, September 21st, 2009

Says she did not know she was dealing with an accused drug trafficker

Neal Hall
Sun

Gail Hewitt, owner of the residence on Laurier Avenue in Vancouver ws stunned to learn her possessions were seized.

The owner of a Shaughnessy heritage home was in tears after learning that all her worldly possessions had been seized by a bailiff and sold at auction.

Gail Hewitt is also angry that the man who has taken possession of her $2-million-plus home is an accused drug dealer, Robert Luigi Poloni.

Poloni holds a $600,000 third mortgage on Hewitt’s house, located at 1518 Laurier at the corner of Granville, which is in the midst of foreclosure proceedings.

Hewitt, who is living in California, said her neighbours called her about three weeks ago and told her someone had moved into her house.

Her neighbours took photos of two men on the property and she recognized them as Poloni and Robbie Della Penna, who were jointly charged with cocaine trafficking offences but were acquitted by B.C. Supreme Court Justice Peter Leask. The Crown has filed a notice to appeal those acquittals.

Neighbours called Hewitt again Sept. 10 to tell her that trucks had arrived on her property and were taking out her furniture and personal property.

Hewitt said the contents of her home were worth about $400,000.

“I had about $100,000 worth of clothes, fur coats, at least $50,000 worth of jewelry, furniture, a $40,000 grand piano and five oriental rugs, some worth $15,000,” she said in an interview.

She said it took her until last Thursday morning to track down the company, Active Bailiffs, that seized the goods. The company told her that everything was sold at auction the previous night by Love’s Auctioneers.

“I can’t believe it’s all gone and it’s all sold,” Hewitt said, crying. “There’s nothing I can do. Everything I own has been taken away from me.”

She said she has filed complaints with the law society against Poloni’s lawyer and a complaint against the mortgage broker, who arranged Poloni as a mortgagee, with FiCom — the Financial Institutions Commission of B.C.

She is upset that no one told her sooner where her furniture and possessions were being stored so she could retrieve them.

But Andrew Bury, Poloni’s lawyer in the foreclosure proceedings in court, said he had done nothing wrong. He said he notified Hewitt’s lawyer of the company that had seized the contents of the Laurier house.

“Her furniture was seized under a court order,” he said. “They’ve been held by Active Bailiffs all along and her lawyer has known that.”

Bury said he just found out “minutes ago” that Hewitt’s furniture and possessions were sold at auction. He also said he just learned, from Hewitt’s lawyer, about Poloni’s background as an accused drug dealer.

Asked if Poloni had a court order to take possession of the home, Bury said his client did not.

Asked if it was legal to take possession before getting a court order, Bury said: “It’s not a black and white issue…I say he had the legal right to do so.”

He said Poloni held a $600,000 third mortgage on Hewitt’s home on Laurier and another property Hewitt owned at 1964 West 33rd, which also went into foreclosure and was sold in a court-ordered sale for $1.25 million.

Bury said the mortgages on the West 33rd property exceeded the sale proceeds, so Poloni and others are still owed money.

He also pointed out that Hewitt was ordered to vacate the West 33rd property and failed to do so, but after she moved out someone trashed the house and removed the appliances and inside doors, causing tens of thousands in damage and repair costs.

Bury said Poloni moved into the Laurier Street home after seeing what happened to the West 33rd property.

Hewitt said she found her 33rd Avenue home trashed a few days after she moved into her Laurier heritage home on July 9.

That day, she said, her fiance, David Hamilton, was hit over the head by an unknown assailant inside the Laurier home and knocked unconscious, requiring him to be taken to Vancouver General Hospital by ambulance for treatment of a concussion and eight stitches to his scalp.

“I became increasingly fearful of my physical safety,” Hewitt said in an affidavit, filed in B.C. Supreme Court in the foreclosure proceeding.

On July 16, her affidavit says, Poloni came to the Laurier property and “threatened to torch my house. I was scared because I believed him.”

She states in her affidavit that Poloni and Della Penna came to the Laurier Avenue home on July 23, but Hewitt refused to let them in, fearing for her safety.

(Della Penna’s lawyer, Elizabeth Lewis, said: “Mr. Della Penna denies having ever met this woman and denies being there on that July date.”)

Hewitt said she didn’t know who she was dealing with until she Googled Poloni and found a Vancouver Sun article, which said Della Penna, a former boxer, testified at the 2003 trial of two Hells Angels that he had been a drug trafficker at the multi-ounce level since 1995.

She also said she has contacted police, alleging Poloni illegally moved into her house, but police said it was a civil matter that should be resolved in court.

When she and her partner moved to California, Hewitt says in her affidavit, she left a property manager in charge of the Laurier house in order to facilitate the foreclosure sale of her home.

She said she returned to her home on Laurier on Aug. 24 and found the locks had been changed. She knocked at the door and Poloni answered. “He threatened to kill me,” she said in her affidavit.

Hewitt’s allegations have not been proved in court. Bury said his client denies threatening Hewitt or threatening to burn down her house.

The lawyer said he plans to return to court Thursday to seek a final court order allowing Poloni to possess and own the home. First he will have to pay off about $1.7 million in first and second mortgages, Bury said.

Hewitt said she spent $800,000 in renovations to restore the Laurier Avenue property and got in over her head financially, causing her to lose everything.

She said she tried selling the Laurier home but the housing market collapsed. She did get an offer for $3.5 million last January, she said, but the deal fell through. She got another offer for $2.8 million, but that deal also fell through, she said.

Realtor Andrew Hasman now has the home listed for sale at $2.2 million, which Hewitt feels is undervalued.

© Copyright (c) The Vancouver Sun

Building Opportunities Loans Program

Monday, September 21st, 2009

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The Vancouver Special reimagined

Sunday, September 20th, 2009

Owners of five renovated homes open their doors during one-day event

Lena Sin
Province

Virtually unrecognizable as a Special, this renovated home in the Dunbar neighbourhood incorporates massives windows and a ‘zigzag roof’ to allow more light inside.

One of the city’s least respected buildings, the Vancouver Special, is becoming an unlikely muse to homeowners and architects alike.

Four decades after it made its debut as an affordable home for working-class families, this uniquely Vancouver style is now enjoying a comeback — although this time around, it’s being embraced as much for its design potential as it is for its efficiency.

With growing interest in how to reinvent the Special, the Vancouver Heritage Foundation is holding a self-guided tour of five renovated Specials on Sept. 26.

The homes were constructed between 1965 and 1978 and range from DIY renovations to spectacular overhauls.

Among the homeowners who are opening their doors are Laura Quilici and Scott Massey, who bought their eastside Special two years ago and just recently finished an $80,000 renovation, which involved plenty of DIY.

The couple were inspired to buy their home after living across the street from architect Stephanie Robb, who had transformed her own Vancouver Special into a beautiful, modern home several years ago.

“I saw when Stephanie bought that house and I was kind of surprised,” recalls Quilici. “And just over the years I saw what it became and it really, really interested me.”

Taking their cue from Robb’s modernist take, the couple stripped the brick facade off the front exterior and replaced it with sleek, cedar siding. They also painted the top body of the house charcoal grey and added a glass canopy above the white, entrance doors.

Inside, the couple opened up the floor plan by knocking down a main wall and managed the renovations of two kitchens and one bathroom. But as much as the reno was about the Special of the future, the couple also approached the remake with an eye for preservation. The original, intricately carved front door is being turned into a bench while the pair of lions that once greeted visitors at the gate are now kitschy lawn ornaments, which Quilici is contemplating spray-painting a slick black or possibly chrome.

“We kept our lions. I feel they’re important to the history of the house,” says Quilici, who theorizes the ornaments common to Vancouver Specials may have symbolized “making it” in the West to the immigrant families who lived in these homes.

Vancouver Specials first appeared in the city around 1965 and appealed mostly to European immigrants, followed by Asian immigrants in the 1970s, as an affordable, modern house. The two-storey, rectangular houses with low-pitched roofs were built to maximize the building code of the time, making them large, efficient houses capable of housing extended family in the ground-level suite.

In the 1960s and ’70s, these houses could be built within weeks and today, there are an estimated 10,000 Vancouver Specials in the city.

While they are the most common house design in the city, Vancouver Specials have been maligned for their monotonous, boxy shape and low-cost construction.

But design-savvy buyers are starting to see them as an interesting challenge. And as Elana Zysblat, programming director at the Vancouver Heritage Foundation, points out, it’s far more sustainable to renovate than to tear them down. “We can’t knock down 10,000 Vancouver Specials — and we shouldn’t,” she says. “There’s something for everyone in a Vancouver Special. Everyone who works with Vancouver Specials finds there’s room for their own interpretation.”

Among the most dramatic reinventions is Allan Askew’s westside Special, which is virtually unrecognizable as a Special, save for the rectangular rear of the house. Askew, a developer, partnered with iConstrux Architecture to remake his home. Driven by an environmental desire to preserve as much of the house as possible, the team managed to create a contemporary house without demolishing much of the existing building.

“Because there’s such a large stock of Vancouver Specials in Vancouver, I thought if we could find a way to pick up the mid-century modern DNA of the Special and apply some real architectural reimagining, there could be something really interesting that comes out of it,” said Askew.

The resulting house has a radically new front exterior that includes massive windows and a double, pitched “zigzag roof” to allow more light inside. The partnership between Askew and the architects was so successful that they have now evolved into a new company, Make Design + Build, which focuses on modern dwellings. “I’m thrilled,” says Askew of the renovation.”It’s everything I hoped it would be.”

The Facts

What: Vancouver Special Tour 2009

Where: Throughout Vancouver

Open: Sept. 26, from noon to 5 p.m.

Cost: $25 per ticket. Buy tickets online at www.vancouverheritagefoundation.org, or by phone at 604-264-9642. Tickets can be picked up at the Vancouver Heritage Foundation or on the day of the tour at the corner of East 22nd. Ave. and Edward Park.

More info: www.vancouverheritagefoundation.org

© Copyright (c) The Province

Don’t make bylaws you can’t enforce

Sunday, September 20th, 2009

Limiting the number of proxies conflicts with the Strata Act

Tony Gioventu
Province

Dear Condo Smarts: A small group of owners in our strata is frustrated by the lack of interest of most of the strata owners in our complex. We often struggle to get a quorum, so we amended our bylaws to approve those attending as the quorum. Even with a recent major financial decision, fewer than 40 per cent of our owners showed up, and more than half of those were represented by proxy. While no one objects to proxies, we do object when a few people hold all of the proxies and then defeat our resolutions. At our recent meeting, the person holding enough proxies to defeat our vote forced us to make amendments to her liking before the vote could pass. Can the strata pass a bylaw that limits the number of proxies a person can hold?

— Denny, Vancouver

Dear Denny: The Strata Property Act requires only that a proxy be in writing and signed by the person appointing the proxy. A proxy may be either general or for a specific meeting or a specific resolution, and may be revoked at any time. Neither an employee of the strata nor the strata agent are permitted to hold proxies.

A proxy stands in the place of the person appointing the proxy, and can do anything that person can do, including vote, make motions and engage in discussion.

The proxy may limit the scope of authority, as well. For example, to limit proxy piling in council elections, the strata corporation may issue an optional proxy form with the notice that prohibits the use of proxies for the purpose of election of council.

If the person assigning the proxy agrees to those terms, then that restriction would apply. However, it should be noted that the person assigning the proxy does not have to use the proxy form issued with the notice and may simply issue a general proxy or amend the proxy form with no restrictions.

There are several problems with a bylaw that would prohibit or limit the number of proxies.

The act creates the use of the proxy and leaves the discretion of the assignment to the person assigning the proxy, and bylaws must comply with the act to be enforceable. Such a bylaw might conflict with Section 59 of the act.

The practical application of enforcement is an even greater problem. There is no provision in the enforcement of bylaws to deny voting rights of an eligible voter (either in person or by proxy), except when a strata has adopted a bylaw that permits the strata to restrict an owner from voting if the strata is entitled to register a lien against the title of the strata lot.

Even that action requires 14 days notice before a lien can be filed, and the person has an opportunity to respond.

Before you contemplate a bylaw on proxies, seek legal advice. Voting rights of owners are fundamental. Denying their proxies is denying their voting rights.

Tony Gioventu is executive director of the Condominium Home Owners’ Association. E-mail [email protected]. The association’s website is www.choa.bc.ca.

© Copyright (c) The Province

Spacious, finished UBC apartments a post-secondary lesson in luxury

Saturday, September 19th, 2009

The Wesbrook is also the first highrise in growing south-campus neighbourhood

Michael Sasges
Sun

In the Wesbrook kitchens and… Photograph by: Mark van Manen, Vancouver Sun

…bathrooms the cabinetry is Italian, the counters quartz, marble or limestone and the floors, porcelain tile (kitchens) and limestone or marble (bathrooms, and heated). The developer has installed mostly German appliances in the kitchens. Photograph by: Mark van Manen, Vancouver Sun

Lily Korstanje, the organizer of the Wesbrook sales and marketing campaign, walks (below left) on the stairs connecting the penthouse and its roof-top patio. The marketing of the Wesbrook is another signal of recovery in the local real estate market. Photograph by: Mark van Manen, Vancouver Sun

Last year at this time, Korstanje reports, developers closed down at least eight sales and marketing campaigns Magnum was organizing. Photograph by: Mark van Manen, Vancouver Sun

A grocery store, like a residential lobby, is rarely news. But the first grocery store on the University of B.C. campus recently opened across the street from the Wesbrook new-home project. Until this summer, UBC households had to leave campus to do their grocery shopping. Photograph by: Mark van Manen, Vancouver Sun

Photograph by: Mark van Manen, Vancouver Sun

THE WESBROOK

Project location: 16th and Wesbrook Mall, University of B.C.

Project size: 65 apartments and townhouses, 17-storey tower

Residence size: 2 bed, 1,640 sq. ft.; 2 bed + den, 1,910 sq. ft; 3 bed + den, 1,910 sq. ft.; townhouses, 2,400 sq. ft.

Prices: apartments, $1.47 million – $1.84 million; townhouses, $2.22 million

Sales centre: 107 – 5838 Berton, UBC

Hours: noon – 5 p.m., Sat – Thur.

Telephone: 604-224-8878

Web: thewesbrook.com

Developer: ASPAC

Architect: MCM

Occupancy: immediately

– – –

I cannot say the Wesbrook is an economics textbook definition of luxury. (I do not understand income elasticity.) I can, however, tell you the homes are ready for occupancy, a luxury; they are spacious, a luxury; and they make the most of an exquisite site, a luxury.

The Wesbrook is not the first new-home project in the south-campus neighbourhood of the University of B.C. But it is the first highrise.

Put another way, the Wesbrook is the first new-home project in the south-campus neighbourhood to robustly acknowledge the mountain-and-water outlooks. All the apartments are view homes and all are corner homes.

On each of floors three through 14 are four homes; on floor 15, three; on floor 16, one; and on the top floor, one, with a roof-top patio.

In other words, 48 apartments have two exterior walls of glazing with which to admit natural light and breezes, and from which residents can take in the outlooks. One has three exterior walls, and two have four.

If the highrise isn’t a pencil of iron and concrete, a four-to-floor configuration makes for bigger apartments.

The smallest Wesbrook apartment is a 1,600-square-foot residence. The largest apartments in the most recent new-construction highrise residences profiled by Westcoast Homes are, in one, 950 square feet and, in the other, 885 square feet.

The bigger-home status of the Wesbrook apartments also says that they were built for a purchaser, local and foreign,

whose residential needs are different from purchasers who pioneered the insertion of residential neighbourhoods on campus.

“In the past, UBC was looked at, by buyers, as a transient spot, to park their children, to study …” says Lily Korstanje of Magnum Projects, organizer of the Wesbrook sales and marketing campaign.

“After four years, they might go the States to do their masters. It is not known as a place where ‘imported’ people would make their homes.

“So they would buy smaller units, one bedroom, two bedroom, 800 square feet. But as they got to know this area, they liked it: they want to work here; they want to stay here. They’re coming from campus, they’re looking for larger spaces, because they want to stay.”

The local prospect is a west-side Vancouver property-owner.

“Those people are used to 2,000 square feet, if not more. Where are they going to put their dining table and hutch? They’re looking for a larger space.”

They may not necessarily be looking for an environmentally friendly space, but they will reside in one.

The building was designed and built to standards developed for the local climate by the University of B.C.’s Residential Environmental Assessment Program.

Lastly, Wesbrook purchasers will buy a finished home. Building and grounds are not artist’s renderings. The homes are neither renderings nor floor plans. Their doors can be opened and closed; the floors can be walked; the appliances tested; the walls tapped; the views seen.

Some of them were sold before or during construction and are occupied. Most of them, however, are unsold and unoccupied.

“So, often you go into a project and what is represented is totally day and night. It happens,” says Korstanje, who, with brother George Wong, is a pioneer of the sale and purchase of a home before construction, a business model the international financial crisis shattered last September.

The first Wesbrook homes to be sold were from a sales centre in Coal Harbour, a location that reflects the Wesbrook developer’s history locally. ASPAC is the lead developer in the transformation, now mostly completed, of industrial Coal Harbour into a residential neighbourhood.

“A show home in the Guinness Tower wasn’t really the most relevant exposure,” Korstanje says.

“Eventually, it was decided it’s best to have people touch and feel the homes when they’re done. The product is so different.'”

That is why, of course, a Wesbrook address is a luxury address: It is different because four attractions of a new home — location, spaciousness, green content and ready occupancy — are all present. They rarely are. And rarity is a component of luxury.

© Copyright (c) The Vancouver Sun

All talk and no action: Our transportation mess is a major roadblock to affordable residency

Saturday, September 19th, 2009

Provincial and municipal government discord costs us all

Bob Ransford
Sun

The new Canada Line speaks strongly of the possibilities of transit, Bob Ransford argues, and of the realities.’If and when higher density growth is planned around … stations, there is no mechanism to ensure that the political process doesn’t block development opportunities.’ Photograph by: Jenelle Schneider, Vancouver Sun

One of the keys to making housing more affordable is transportation.

The cost of housing in communities with a robust range of transportation choices, especially with well-developed public transit systems, is generally lower.

You can concentrate more people in one area if they can move about efficiently without the need for roads and parking, which consume both land and the dollars to build them. Higher density means more efficient land use and a lower cost of housing on a per-home basis.

A second cost-saving comes from being able to avoid or decrease dependency on a car.

Owning and operating a car is an expensive undertaking.

Good transportation planning and good land-use planning go hand in hand. One can’t be achieved without the other.

We are seeing the results of a clear disconnect between land-use planning and transportation planning in Metro Vancouver in the form of our high costs of housing.

In my last column, I talked about the less-than-impressive track record of the provincial government in walking the walk when it comes to all of its talk about wanting to lower the cost of housing and bringing home ownership within reach of our children. The government’s failure to ensure that transportation planning and land-use planning are integrated in Metro Vancouver is another example of all talk and no action on the affordable housing front.

In fact, the Campbell Liberals widened the gap between land-use planning and transportation planning through deliberate neglect and reckless interference in both areas.

The current laws that govern municipalities and manage growth have proved inadequate in promoting smart growth.

Municipalities have no clear growth targets in areas where growth and density should be concentrated.

For example, the City of Vancouver is at least two years away from planning for the kind of redevelopment that might achieve density around the new Canada Line transit stations, which have now been open for a month. If and when higher density growth is planned around those stations, there is no mechanism to ensure that the political process doesn’t block development opportunities.

The current law governing growth management in metropolitan regions in B.C. has proved toothless. Enforcing the broad allocation of land use through community and regional plans on a consensus basis has failed. The Liberal government hasn’t shown any appetite to change those laws.

Urban transportation planning has fared even worse under the Campbell Liberals.

They have washed their hands of playing a coordinating role in major public transit improvement projects. TransLink is on its own to both plan and fund transportation infrastructure in Metro Vancouver.

The Liberals created the Council of Mayors; its members are scared sleepless of the political ramifications of using their severely limited taxing power to raise adequate taxpayer dollars to fund the continued development and operation of an integrated urban transportation network in Metro Vancouver. As the local mayors bob and weave, avoiding the hard decisions, an unaccountable board made up of provincial appointees scrambles to keep the existing public transit system alive.

The premier wasn’t afraid to grab headlines with an announcement a couple of years ago of an ambitious plan to expand public rapid transit when he was being roundly criticized for building expensive auto-dependent transportation infrastructure such as a new Port Mann Bridge, while at the same time portraying himself as the patron saint of sustainability.

That announcement, lacking most of the funding it required, now seems long forgotten while the premier and his colleagues continue to refuse to delegate a broader taxing authority to those on whom they have downloaded the responsibility for the expensive but necessary improvements to the public transit network.

Regional transportation commissioner Martin Crilley referred to this lack of provincial-regional coordination in his recent public report when he labelled the gulf that exists between provincial and regional transportation planning and financing “a hazard.”

Meanwhile, the same provincial government that is one minute washing its hands of the problem and the next meddling in the issue up to its neck, continues to dictate the kind of technology that is deployed in building the transit network, pushing up the cost per kilometre of building much-needed rapid transit expansion projects.

Compare the cost of SkyTrain versus at-grade trams systems. The estimated costs of extending the Millennium SkyTrain line with a subway along Broadway toward the University of B.C. is about $233 million per kilometre. The costs for new at-grade tram technology chosen by cities such as Portland and Washington, D.C., is around $16 million per kilometre.

The Campbell Liberals chose the more costly SkyTrain technology for the development of the on-again, off-again planned Evergreen rapid transit line to serve Metro Vancouver’s northeast sector. Going with this technology is a condition of securing the yet-to-be-committed provincial contribution to fund the project.

Commissioner Crilley pointed in his recent report to his concern about the lack of freedom on the part of TransLink to select “its own optimum rapid transit configuration.”

It makes you wonder whether the provincial government even thinks about connecting the dots between the cost of housing and the disconnect between land use and transportation planning.

– – –

Bob Ransford is a public affairs consultant with CounterPoint Communications Inc. He is a former real estate developer who specializes in urban land use issues.

© Copyright (c) The Vancouver Sun

New tax rules are needed for donated real estate

Saturday, September 19th, 2009

The goal is to encourage more donors to step up

Jamie Golombek
Sun

Canada should kill the capital gains tax on donations of appreciated real estate and private company shares to charity, says a study released this week by the C.D. Howe Institute.

In the report entitled Unlocking More Wealth: How to Improve Federal Tax Policy for Canadian Charities, author Malcolm Burrows outlines the need for the policy change and the benefits that would result.

Since 1996, the federal government has introduced more than 20 tax incentives to encourage and regulate charitable gifts. Perhaps the biggest change was the government’s 1997 decision to halve the capital gains inclusion rate on the donation of publicly listed securities, mutual funds and segregated funds to a registered charity.

Nine years later, the 2006 budget completely exempted the gains on such a donation from tax.

Mr. B u r r ows s u g ge s t s the next steps on the government’s charity agenda should be to introduce a similar rule for the donation of real estate and private company shares, “potentially broadening the donation base and making charities less vulnerable to market swings. These credits could be introduced in a manner consistent with existing laws, to reduce the chance of tax system abuse.” One of the oft-cited impediments to the donation of both real estate and private company shares is concerns about their appropriate valuations.

The report addresses this issue in various ways, depending on what is being donated and its intended use by the charity. For example, Mr.

Burrows recommends that if the proceeds received on the sale of real estate are donated within 30 days of the real estate sale, not only would the owner be entitled to a tax receipt equal to the fair market value proceeds, but the capital gains tax would be waived.

This proposal solves several concerns at once. Most importantly, the valuation of the real estate by the charity is no longer an issue. In addition, the charity doesn’t have to enter the property management business or worry about an existing mortgage or selling the donated property.

From the donor’s perspective, he or she could choose to donate only a portion of the real estate proceeds, receive a partial receipt and partial capital gains exemption, and use the remaining proceeds to pay off any outstanding mortgage on the property.

What if the charity wants to hold the real estate for use in its own charitable activities? Mr. Burrows proposes that in that case, the recipient charity would have to agree to hold it for at least 10 years and a qualified thirdparty appraiser would need to value the property being donated for the purpose of the donation receipt.

For gifts of private company shares, the report recommends that due to valuation and liquidity concerns, a receipt should be issued only if the shares were sold by the charity within five years.

Upon sale, the purchase price would be validated by an independent appraisal.

© Copyright (c) The Vancouver Sun

House hunting goes mobile with new text-messaging services

Friday, September 18th, 2009

Consumers can get listing information from property signs with realtor’s code

Derrick Penner
Sun

New real estate listing services are popping up to serve the growing number of people carrying mobile devices. Potential buyers can key in a number listed on for-sale signs to view property details. PHOTO ILLUSTRATION BY MABBIE WONG/VANCOUVER SUN

Starting the house hunt in Metro Vancouver no longer needs to be a static pursuit.

A couple of firms have joined the technological wave of text-messaging and map-location to launch services that deliver property information to consumers on their wireless devices.

It is the thin edge of making property searches completely mobile, although not a lot of consumers may be aware they are available.

“There’s no doubt that mobile is where it’s at,” says Kye Grace, a tech-savvy realtor and consultant in Vancouver. “From searching right down to a realtor [website] having a mobile option for iPhones, BlackBerrys and Android phones.”

The logic for realtors, Grace said, is that “you want to be where the consumer is. And in all reality, the consumer is going mobile.”

From the consumer’s perspective, Grace said regardless of how much time consumers spend looking up property listings on their computers at home, they still wind up driving around to see the offerings, so its more convenient and efficient if you can deliver information to them where they are.

RealtyText is one program created by the Vancouver-based firm RT RealtyText, which uses text-messaging to deliver information to house-hunting consumers.

Company president George Haddad said realtors can subscribe to the service, which allows them to upload their listings to RealtyText’s system, then put an addition to their property signs printed with the realtor’s special code.

The consumer who sees that sign texts the code to the RealtyText system, which sends back the listing information — including specs, photos and an option to contact the listing agent to set up a viewing.

“Business has been really, really good,” Haddad said of his company’s initial sales campaign.

“What [realtors] like is that they’re providing information to clients 24/7,” he added. “As well, they love the fact they can monitor activity on a property,” by seeing how many people request information.

Haddad, an active developer, said he got the idea for RealtyText out of his own frustration at not being able to get information quickly while he was on the road.

And from watching American Idol and registering the show’s method of text messaging for viewers to vote for favoured contestants, Haddad thought that text would be the way to do it. After about 18 months of development, he launched RealtyText earlier this year.

The technical experts at Myrealpage.com dreamed up a more comprehensive search tool that marries Google Maps with the Multiple Listing Service databases of B.C.’s real estate boards, and provides a search tool accessible through a mobile version of a subscribing realtor’s website.

“With the mobile product, it gives consumers their first opportunity to go and shop for a home away from their home computer,” Ray Giesbrecht, Myrealpage.com’s sales and marketing manager in Vancouver, said in an interview.

The service uses the iPhone’s GPS navigation system to show consumers MLS property listings within the vicinity of their location on a Google Map, and set it to follow them around, plotting more listings as they travel through neighbourhoods.

This gives homebuyers “a more realistic context of the property vis-a-vis its neighborhood,” he added.

Giesbrecht said the system also has options realtors can access for users to flag favourite listings, grade them, and make comments on them for future review at the realtor’s office.

The Rogers-owned search service Zoocasa.com does offer a similar mobile application for the iPhone, but Giesbrecht noted that it aggregates listings from sources other than MLS databases, so its listings are limited compared with Myrealpage.com.

Grace, while he is not a user, offers a favourable review of Myrealpage.com’s offering.

“As far as individual products go, Myrealpage is the best,” he said, “but I don’t think they have any competition either.”

The difficulty right now, Grace added, is accessibility. At this point, consumers probably aren’t aware that the tools are available.

© Copyright (c) The Vancouver Sun

 

Renovations should be undertaken with care

Friday, September 18th, 2009

‘Too personal’ changes can affect sales price

Pedro Arrais
Sun

Planning a renovation? You’re in good company. According to Canada Mortgage and Housing Corp., two out of five homeowner households renovated their homes last year.

Homeowners spent almost $21.3 billion on home renovations in 2008. More than a quarter of the renovations were the remodelling of rooms.

The majority of home renovations are to update, add value or prepare for future sale. While painting or wallpapering a room would be the simplest and cheapest improvement to a house, Canadian homeowners spent, on average, $12,600 on renovations last year.

Not surprisingly, people living in older homes tend to spend more.

A typical renovation usually centres around making the home more comfortable for its occupants.

Kitchens and bathrooms are the two principal areas that benefit from a makeover.

“Renovations that are too personal make a house hard to sell,” says Neil Rawnsley, a real estate agent with Royal LePage Coast Capital Realty in B.C.

“Substantial renovations, such as removing load-bearing walls, are difficult and expensive to undo.”

He says homeowners should always keep in mind the overall renovation value in relation to the value of the house in the neighbourhood. But not everybody thinks of resale values when they renovate.

“It’s not only cost to consider, but lifestyle,” says Rawnsley.

He frequently encounters homeowners who decide to renovate instead of selling because they love the area they live in and don’t want to move even as their circumstances change.

So they embark on improvements that allow them to stay in the house as they get older.

Some renovations are done to address mobility issues for older homeowners.

But the layout of some older homes makes the cost of retrofitting for wheelchairs or other mobility aids prohibitive.

When homeowners finally decide to sell, Rawnsley recommends sellers only clean up their houses and perhaps repaint.

He advises them not to take on any renovations in the hope of increasing the value of the property.

“Typically buyers will want to do some renovations to customize their new home,” he says.

“It’s always good for sellers to leave something for the imagination.”

© Copyright (c) The Vancouver Sun