Archive for March, 2013

Land leads Vancouver commercial real estate sales

Monday, March 11th, 2013

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Sales of land, not buildings, dominate the commercial real estate market in Metro Vancouver, according to a survey released by the Real Estate Board of Greater Vancouver (REBGV). In fact, of the $5 billion worth of commercial real estate handled by Board members last year, land accounted for $2.05 billion in dollar volume up 9.7 per cent from a year earlier. Total unit sales were up 15 per cent as 599 lots were sold.

As a comparison, sales of office and retail properties were down 13.5 per cent; industrial real estate sales were down 2.4 per cent; and sales of multi-family properties were down 12 per cent, though the dollar volume of the 102 sales was an impressive $544 million.

There were 1,875 commercial real estate sales in the Lower Mainland in 2012, according to Board’s Commercial EDGE report. This is 2.6 per cent below the 1,926 sales recorded in 2011, 9.6 per cent above the 1,710 sales recorded in 2010 and an increase of 46 per cent from the 1,287 sales recorded in 2009.

“The strength of last year’s commercial real estate market can be attributed in part to an upswing in raw land sales in the region,” Eugen Klein, REBGV president confirmed.

Copyright Western Investor

Toronto home sales soar, prices continue climb

Sunday, March 10th, 2013

Garry Marr
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Existing homes sales in the Greater Toronto Area rose 30% in September from a year ago and a strong third quarter has the market about even with 2012 now.

The Toronto Real Estate Board said there was 7,411 sales through the Multiple Listing Service in September, up from 5,687 sales a year ago. It was also up from the 6,249 in sales in August. For the first nine months of the year, sales are now down 1% compared with the same period in 2012.

“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable. This is why the third quarter was characterized by renewed growth in home sales in the GTA. We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied,” said Dianne Usher, president of the board, in a statement.

The average sale price last month also climbed 6.5% from a year ago to $533,797. That’s also up from $503,094 from August. Over the first nine months of the year, the average selling price was $520,118, a 4% jump from 2012.
“The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings. Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year. This scenario will continue to play out through the remainder of 2013,” said Jason Mercer, TREB’s senior manager of market analysis, in the release.

© 2013 National Post

REBGV Stats Report For February 2013

Thursday, March 7th, 2013

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New app turns real estate agent business cards and print advertising into virtual billboards

Thursday, March 7th, 2013

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Much of the discussion of technology in real estate at the recent Banff Western Connection real estate conference concentrated on using social media more effectively, but the latest technology allows realtors to get a lot more out of conventional print marketing.

Texas-based Bernie Ross, president of RealEstateCoach.com, said real estate agents must switch their thinking when marketing through social media sites like Twitter and Facebook. Unlike conventional real estate marketing, Ross said, “It’s not about me, me, me. It is about engaging.”

According to Ross, only 5 per cent of a social media site should be selling the realtor’s brand and listings, with 95 per cent concentrated on a conversation with potential clients.

Ross also encouraged realtors to use video in their online presentations.

She explained that, using a smartphone, a realtor could film and post an effective video in less than five minutes; for example, a voice-over guide through listing photos.

Other tips include using www.facebook.com/business to set up a business page to connect with existing clients and expand to reach other networks. Ross explained that a realtor could link up with sites on such topics as winemaking or even hockey to engage a wider pool of potential buyers.

She recommended making the most of LinkedIn sites by getting testimonials from satisfied customers.

Realtors should also sign onto Saskatoon-based Point2 NLS, Ross said. On this system realtors simply add their listings and Point2 posts them to all key search engines, such as Google, MSN and Yahoo and real estate-specific sites such as Trulia, Point2 Homes and even the NY Times.

Layar

Yet for many realtors it is print that is the first step to getting the message out, whether in the form of a business card, a for-sale sign or ads in the local real estate paper or community paper.

And now there’s an application to make print much more compelling and effective.

It is so new – started just seven months ago in Europe – that some technology experts Western Investor talked to for this article hadn’t even heard of it yet.

But they will.

It’s called Layar (www.layar.com). It works whenever someone downloads a free Layar app for his or her smartphone, which allows access to online information that’s invisibly embedded in any printed material the real estate agent has available.

The Real Estate Weekly in Vancouver began offering Layar ads this January in its 500,000-circulation weekly that covers B.C.’s Lower Mainland. Western Investor will roll out the service this spring.

With Layar, a realtor’s print ad can direct a smartphone user to the realtor’s website, a virtual tour of the listing, other listings or a promotional YouTube video, as examples.

In Vancouver the service costs a flat $99 for the advertiser but makes a printed ad come alive – and can also provide precise tracking of how many people have read and responded to the ad.

Some Vancouver realtors are having their business cards and site signs Layar enabled, turning them into virtual billboards of information.

Best of all, Layar takes what most realtors are using – print – and extends into all the social-media marketing the realtor is using.

Getting social

Here are some more tips on using social media courtesy of past sales and marketing chair with the Greater Toronto Home Builders’ Association, Jacky Hill of Wall2Wall Media:

— Be social with Google; stay local with Google+ Local. To ensure your customers can find you geographically ensure your Google Places page (now called Google+ Local) is optimized. Your page lists your company name, address, phone number and website along with a map of your location. It doesn’t cost a thing and you can edit your information or see how many people have seen and clicked on your page at any time. Learn more about Google+ Local at www.google.com/+/learnmore/local.

— Learn about search engine optimization (SEO). It is extremely important to help increase your visibility on search engines like Google where most consumers go first to search for real estate content. Searchengineland.com is a great resource to help you learn more about SEO, providing useful tips and tools. Learn the basics of SEO in three minutes on the site.

— Tracking the success of campaigns and online efforts is crucial to determining return on investment and the time allocated to those tactics. Google’s new Multi-Channel Funnels tool in Google Analytics allows you to view interactions across different digital and marketing channels, showing how these work together to create sales and conversions. This tool can help you make important advertising and communications decisions, including which ad placements convert best.


from Western Investor March 201

Buying an Investment Property – It is a win win for the Buyer

Thursday, March 7th, 2013

A Certain amount of uncertainty is a Certainty

Other

Real estate investors I talk with are voicing a common theme:

There is so much uncertainty out there right now. In the past it was much easier to predict the probable outcome of investments. Now it is hard to decide what to do because there are so many potential variables.

The Canadian government is keeping interest rates low to stimulate the economy, but at the same time are making mortgage qualifications more difficult to prevent a “housing bubble”.

The USA government is doing “quantitative easing” which is another way of saying printing more money for themselves to buy government bonds to support their monetary system.

Governments around the world are at a stalemate. They cannot agree on what course to take.

In the USA, the President is a Democrat while the house is controlled by Republicans. That is a formula for getting nothing constructive done all at a time when decisive leadership is needed. 

Canadian employment statistics look good but the debt level of the average Canadian is high. They might decide to pay down debt instead of buying stuff that would stimulate the economy. 

What do you make of all this? 

Here is what I know: 

A small percentage of Canadians are homeless. The vast majority are homeowners or tenants. Some people own more than one home or there would be no place for tenants to live.

Real estate is the only investment that someone else buys for you.

What a great concept! A person should try that. Your name on the title and someone else pays for it. This is a Win! Win! Win! sitution. but…

What if house prices fall?

Then your house is worth less than the tenant paid and your name is on the title. You win! 

What if the house prices stay the same?

Then your house is worth the same as the tenants paid and your name is on the title? You win! Win! 

What if house prices rise?

Then your house is worth more than the tenant paid for it and your name is on the title. You win! Win! WIN! 

Conclusion: 

If you buy a house or condo and rent it to some fine tenants. In time they will pay for it. You will own it. Then you win! 

Let President Obama and Prime Minister Harper quantitatively ease the economy all they like–just buy a house or two and rent them to some nice tenants.

We’re Building It – And They’re Coming: The Present and Future of UBC

Thursday, March 7th, 2013

Other

UBC’s South Campus is about a quarter of the way through its development. Better known as Wesbrook, this neighbourhood will account for about half of the population of U-Town.

Director of Campus and Community Planning Joe Stott gave us a walking tour of Wesbrook to explain more about the project and the smart growth ethos.

Smart growth builds environmental sustainability into a community from the beginning. Walkability, conservation and affordability are as much a part of the design as style and consumer appeal.

The University learned valuable lessons about walkability from its earliest development. Hampton Place was strictly housing with no amenities within easy walking distance, but it now benefits from its proximity to Wesbrook Village.

At Wesbrook, every second street is a greenway. “It allows you to walk a protected pedestrian environment,” says Joe. All the green streets link up with parks and all people to walk the around the neighbourhood and access the village without needing to be on busy roads.

Townhomes line the roads in order to create street channels and make the parkland stand out. And all of these park nodes are connected by the greenways which means, says Joe, “All developments face a green street or park on one side.”

Next door is Pacific Spirit Park and there is a 30-metre buffer between Wesbrook and the park. Again, this is a lesson learned from the earlier Hampton Place development. It backs directly onto the park and if there are any issues with fallen trees or breaking branches then homeowners, UBC and the park can become embroiled in the process of tidying up. With a buffer, any complications like that will be removed, a point that pleases all involved.

And to create a sense of design continuity, the architects were tasked with designing the townhomes that fronted the streets near towers. “They had to solve the problem of transition from high-rise to low-rise building forms themselves.”

A first for UBC is Adera’s Sail development, which will be the first six-storey wood-framed development anywhere in the city. Until recently the heights of these towers were capped at four storeys.

UBC’s planners are also getting creative in other areas. Noting architect Richard Henriquez’s joy at not seeing size restrictions for balconies, Joe said: “We’re interested in innovative design. We don’t want to give the same straitjacket as a city.”

There’s even an interesting use of an abundant BC resource: rain. Storm water isn’t treated as waste; it becomes part of the landscape design with a running water feature at ground level.

In a bid to address affordability there are fewer parking spaces per residence. While the flip side to this is tight parking in the area, at a building cost of about $40,000 to $50,000 per space, it is a sizable reduction on the price of a home. Joe says no minimums were placed on parking bays, except for disabled and visitor spaces.

“There are also 200 single [lock-off or secondary] suites at the foot of townhomes. These can be rented out by the leaseholder, helping create more affordable housing,” says Joe.

The projected target for U-Town is 24,000 people in 12,000 residences. About half will be in Wesbrook. Currently there are about 8,000 people living at UBC and Joe is anticipating 20 to 30 years until it achieves its target.

Development is split between the university and the open market. UBC is landlord for 30% of the new development, half of which is for students, faculty and staff. The remaining half is for open market rentals.

The remaining 70% is sold on the open market on 99-year leases. Upon expiration, the university will buy these back at a fair market value. This will protect the value of properties from diminishing for leaseholders.

“The 99-year lease,” says Joe “provides flexibility to the university if there are big changes and they need a new academic building.”

The profits from both property sale and property management are channeled back into the university.

It hasn’t all been clear sailing. There has long been opposition to planned development attempts. In recent years there was fertile resistance at plans to build on UBC farm, and in late 2011 fears were raised over the proximity of a hospice to condos.

In the coming years there will be two more developments, which will be subject to  a new neighbourhood planning process. The student housing community Acadia will be redeveloped, and land close to Thunderbird Stadium is to be yet another part of U-Town.

On the edge of the campus, the Musqueam Band’s decision to develop the 22-acre site called Block F between University Boulevard and Acadia Road (opposite the golf course) will further change the mosaic of Point Grey. The Band’s plans include residential and retail space and a hotel.

A long-term aim for the planners is to turn UBC’s Triumf, Canada’s national particle accelerator, into an energy producer. When in use it accounts for 25% of all energy consumption at UBC and there are possibilities to harness this. “It produces a lot of waste heat,” says Joe. “With a heat exchanger we could use it for a district heating system.”

It is all part of the Campus and Community Planning Department’s smart growth goal to be a net-zero consumer of energy and producer of waste – a self-sustaining community powered by itself.

In the third part of this series, we speak with the Intracorp‘s Don Forsgren and Adera‘s  Norm Couttie about the attraction of UBC and how they have innovated with design.

© 2013 Real Estate Weekly

Real Estate Information From The REBGV On The PTT, The Tax Burden, Cost Involved In Buying A home

Wednesday, March 6th, 2013

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Feb 2013 Stats comparing Re/Max Crest Westside with all MLS Realtors with the Real Estate Board

Tuesday, March 5th, 2013

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Hotel Industry 2013 outlook

Monday, March 4th, 2013

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Layer free op directs printed material to REALTOR’s website

Friday, March 1st, 2013

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