Kelly Block, Member of Parliament for Saskatoon – Rosetown – Biggar, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC) along with Donna Harpauer, Social Services Minister and Minister Responsible for Saskatchewan Housing Corporation, today announced details of two new affordable housing projects that will see approximately $2.8 million invested in Saskatoon and a total of 12 homes built for low-income families, including persons living with disabilities.

The funding for one of the two projects has been made available through Canada’s Economic Action Plan, the federal government’s plan to stimulate the economy and create jobs during the global recession. The federal and provincial governments are contributing equally to the $132 million overall investment under the amended Canada – Saskatchewan Affordable Housing Program Agreement.

Persons with disabilities often have difficulty finding housing that meets their specific needs. Canada’s Economic Action Plan provides $75 million, over two years, to build new rental housing for persons with disabilities. Overall, the Economic Action Plan includes more than $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

“The Government of Canada is helping make affordable housing available in Saskatchewan and across Canada for those who need it most,” said MP Block. “Here in Saskatoon, this initiative will help people in our community access suitable, affordable housing that meets their needs.”

“Our government is committed to affordable housing and we are pleased to work with the federal government in bringing these projects to fruition,” said Minister Harpauer. “Finding solutions to housing needs requires the support of many, and these projects clearly demonstrates what can be accomplished when we work together to make life better for Saskatchewan citizens.”

“The City of Saskatoon looks forward to participating with the Government of Canada and the Province of Saskatchewan to help deliver much needed rental accommodation in Saskatoon,” said Mayor Donald Atchison. “More rental accommodation is needed in our community and the City of Saskatoon has created a new Rental Rebate program with the ultimate goal of seeing 1,000 new rental units constructed across the city. These additional units will assist us with our goal.”

The first project will consist of two three-bedroom semi-detached homes for a total of four units. Each unit will be wheelchair-accessible and feature wider doorways, ramps, wheel-in showers and lower counter and light-switch heights. The estimated total cost is $1.1 million, of which $601,000 is funded under the amendment to the Canada – Saskatchewan Affordable Housing Agreement with a further $110,000 coming from the City of Saskatoon. A private incorporation known as DH2 will provide approximately $400,000 in land and financing for the construction of the project. Completion is expected in March 2010.

The second project, Bedford Road, will consist of two three-bedroom four-plexes for a total of eight units. Funded as a result of the two year extension of the Affordable Housing Initiative (AHI), the estimated total cost is $2.1 million, with $1.9 million provided through the amended Canada – Saskatoon Affordable Housing Program Agreement, and the balance coming from the City of Saskatoon. North Ridge Development Corporation will act as project contractor. Completion is expected in summer 2010.

If we have to give ourselves complete relaxation we have to think of our future expenses. This is definite that the rates of the entire things are rising and they will be rising in future also. So we have to study and inspect our procedures of earning and saving. At least today, we can consider and buy a good house for ourselves or we can even buy a property, but I think in future it would become more difficult for us to even think of buying any major property. Taking the financial assistance from the mortgage companies could help us to a great extent. We can be at ease while following their Cheap home mortgage rates. I think this is the right time we can invest our money towards buying a property. Once we secure ourselves financially, then we are mentally relaxed also.

I was planning to buy a big house for myself. At present I stay in two bedroom flat, but wanted to buy a bigger one. For this I needed adequate finance and then my friend advised me to approach the Mortgage rates Ontario. It is not that I did not have funds at all. I had quite funds which I could use as down payment. When I visited the Mortgage Rates Ontario, I found that this is the best place I was looking for a mortgage. Their Cost-effective home loan procedures were unique and simple too. After a careful discussion with their agent, I decided to fix the Home Loan which I considered was the best for me.

http://www.articlefeeder.com/blog/real-estate/17563-cost-effective-home-loan-process-is-convenient-at-mortgage-rates-canada

reviewed by Moishe Alexander, CFC  canadian funding corp CEO

The Commercial Financing Market in 2009

Increasing concerns over commercial lending exposure at regional banks is growing as most experts think commercial lending credit declines will likely increase sharply this year.
Loan losses are on the rise to 1.5% to 2% of all commercial loans this year from around 1% currently. But just because a certain percentage of loans are going bad this doesn’t mean that banks still can’t or won’t lend. In fact rates are low and banks are still lending. Wells Fargo’s report that commercial mortgage refinancing went particularly well in the first three months of 2009 prompted broad feelings of relief among investors who now believe banks may be able to earn their way out of their difficult circumstances. Many regional commercial lenders and banks are going under which is creating more business and more opportunities for the banks that survive.

http://www.bcab.org/2009/07/16/commercial-finance-site-launches-to-help-business-owners-and-commercial-real-estate-investors-reach-capital/

brought by Moishe Alexander, CFC  canadian funding corp CEO

As a result of a sizzling month of sales in June, Canada’s two largest real estate markets — Toronto and Vancouver — came close to breaking their all-time sales records.

In Toronto, the nearly 11,000 properties sold last month marked a 27 per cent sales increase over the previous June. And in Vancouver, where 4,259 units changed hands last month, sales were up 75.6 per cent from 12 months ago.

Major year-over-year gains were also seen in Calgary (28 per cent), Regina (24 per cent), Edmonton (15.8 per cent) and Ottawa (12.5 per cent). Sales were also up 5.2 per cent in the Halifax-Dartmouth area over the previous June and had inched up 0.8 per cent in Newfoundland and Labrador.

According to RE/MAX, most of Canada’s major real estate markets had begun to recover from the recession as early as March, with sales picking further up in April and May, leading to the high levels of sales seen in June.

Michael Polzler, the executive vice-president of RE/MAX Ontario-Atlantic Canada, says the boom in sales is the result of affordable prices and mortgages, as well as pent-up demand among homebuyers.

It’s a trend that could also help the wider economy, he said, because it will spur homeowners to spend on home improvements.

“When people start buying houses, they have to buy all the things that go along with those houses,” Polzler told CTV’s Canada AM on Monday morning. “Often it means a new fridge, a new carpet, painting, fixing up this, fixing up that. Even when you buy a new house, there’s a lot of things to buy. So, it helps everybody connected.”

Looking forward to the rest of the year, RE/MAX is expecting to see a more stable real estate market, though sales may not continue at the current pace.

Polzler believes that many Canadians favour real estate as a form of investment, as opposed to putting their money in private business opportunities.

“Most Canadians are very uncomfortable and unsure about the stock market,” he said. “And when you see that through these difficult times, prices in real estate have come down a little bit in most places — and in many cases are back up — they feel a lot more control than they do in the stock market.”

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090713/real_estate_090713/20090713?hub=TopStories

reviewed by Moishe Alexander, CFC canadian funding corp CEO

A new forecast from a major Canadian real estate company predicts that the national housing market is stabilizing, after seeing a “remarkable turnaround” in the second quarter of 2009.

Royal LePage predicts that the selling price of the average house will drop by only two per cent this year — an improvement over the real estate company’s prior forecast from six months ago that predicted a three per cent drop.

The real estate company also predicts that the number of unit sales will drop about one per cent in 2009 to an estimated 430,000 sales.

Phil Soper, the president and CEO of Royal LePage Real Estate Services, said that the forecast adjustment is the result of the improved real estate sales numbers seen in the second quarter of this year.

“We’ve got the most important quarter in the real estate calendar behind us — the second quarter — and it really was a remarkable turnaround,” Soper said during an interview on CTV’s Canada AM on Tuesday morning.

“As steep as the decline was, the bounce-back was just as dramatic,” he added.

While the year’s second quarter saw housing prices beginning to appreciate, the average national housing prices still remain below their values from 12 months ago.

According to the Royal LePage figures:

* The average price of a detached bungalow declined to $327,964, about 3.5 per cent below what it was the year before
* The average price of a two-storey home was down 3.7 per cent to $392,378
* The average price of a condominium dropped four per cent to $236,612

Soper said a combination of lower mortgage prices and a housing supply shortage in parts of Canada helped push the market upward during the second quarter.

But he cautioned that the market still has a long way to go, when it comes to recovering the value lost during the recent setback.

“It’s going to look better for the second half of this year,” he said. “It’s not going to be a startlingly good year like earlier in the decade, but I think just the bounce-back, the comeback from where we were, is going to make a lot of Canadians feel a lot more comfortable about the homes they live in.”

In many Western Canadian cities, including Calgary, Edmonton and Vancouver, housing prices are still between 10 and 15 per cent below what they were a year ago, Soper said. But they are “gaining back ground,” he said.

In Ontario, Royal LePage said Ottawa would likely see stable prices throughout 2009, with Toronto’s market stabilizing towards the end of the year.

Montreal is expected to remain a strong real estate market this year, helped by low interest and unemployment rates.

In Atlantic Canada, housing prices were much more stable than in cities further west in Canada throughout the recession, meaning that their pricing fluctuations have been less volatile overall, Soper said.

And according to the Royal LePage figures, demand for housing has so far been strong in 2009, due to strong local economies coupled with moderate housing prices.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090707/real_estate_090707/20090707?hub=CanadaAM

brought by Moishe Alexander, CFC CEO

The title search is a critical step in the real estate transaction, and quite possibly the most important step taken toward ensuring the transaction runs smoothly. In the process of conducting the search, the lawyer can determine if legislation concerning the Planning Act has been contravened; non-compliance with this legislation is fatal to any intended transaction. The lawyer can also determine if there are any registered liens on the property. If registered liens are discovered, it is the responsibility of the lawyer to deal with them immediately in order to avoid the serious consequences that can result if they are not handled properly.

Time is the essence of title searching. By conducting a search in a timely fashion, the diligent lawyer is able to provide the lawyer acting on behalf of the seller with a letter of requisition regarding any outstanding issues associated with the property. This letter can be explained as a series of inquiries and requests, with which the seller must comply, excepting exemptions in accordance with the conditions of the sale, arising as a result of a proposed purchase.

When the sellers solicitor receives the letter of requisition, the seller becomes obligated to resolve any issues that are detailed therein. In other words, this letter serves as a point from which communication begins between the legal representatives of the buyer and the seller to solve legal issues related to the property in question.

Once the title search is complete, the lawyer is in a much better position to provide an opinion of the property to the relevant parties, such as prospective lenders, who would rather secure their loan with a lawyers opinion of the propertys title before furnishing financing to the buyer, or insurance providers, for example, who require that the buyers lawyer is able to advise them of the state of the title to ensure the well-being of a title insurance policy before it is provided to the new owner(s).

This article has been published for educational purposes by the good folks with PropertySOLD Magazine. PropertySOLD combines the power of online and offline publishing to advertise FSBO real estate for its clients and puts a particular focus on educating people about selling privately.

http://www.bestlegalarticles.com/understanding-the-role-of-your-real-estate-lawyer.html

review by Moishe Alexander, CFC CEO

On the real estate front, the Newfoundland Government released their take on Newfoundland housing market conditions. While most of their data is from CREA and previously discussed earlier on this blog, I thought it important to “cut and paste” the PDF of the real estate section from the Economic Research and Analysis website as it recapped and touched on a number of important areas and facts.

Housing market conditions were robust in 2008. Housing starts increased to a level not seen since the early 1990s. Residential sales activity and prices reached record levels. Other capacity indicators like rental vacancy rates are at, or remain near, historical lows. Increased housing demand stemmed from strong economic performance, low interest rates, optimism about future major projects, and household formation.

Housing Starts

During 2008, housing starts totalled 3,261 units, up 23.1% compared to 2007. This was in contrast to activity in the Maritimes and Canada, where starts declined by 7.9% and 7.6%, respectively. While urban areas account for approximately two thirds of housing starts in the province, both urban and rural areas recorded significant gains in 2008. Urban housing starts were up 22.1% to 2,229 units and rural starts were up 25.2% to 1,032 units. Total housing starts are expected to fall to 2,648 units in 2009 as the global recession and slumping housing market in the rest of Canada weakens local consumer confidence. Since 1989, housing starts have averaged 2,333 units per year. Therefore, even with the decline expected this year, housing starts will be at relatively high levels for the local industry.

Residential Sales and Prices

Residential sales activity and prices increased to record levels last year. The number of residential properties sold in the province through the Canadian Real Estate Association’s Multiple Listing Service® (MLS®) during 2008 was 4,695, an increase of 5.0% from 4,471 in 2007.  This performance was in contrast to the national residential market. MLS® sales decreased by 17.1% in Canada and 8.9% in the Maritime provinces during 2008. According to CREA, the number of MLS® sales in the province is expected to decline by 14.8% in 2009 to 4,000.
Strong demand for housing, especially during the summer months, created a buying frenzy in 2008. The average number of active MLS® listings in the province (a measure of housing availability/supply) declined by 38.3% to 1,495 from 2,423 in 2007. Homes were being purchased as soon as they hit the market and sellers were receiving multiple offers — sometimes well above the asking price. As a result of increased demand, housing prices increased. During 2008, the average MLS® residential price was $178,477, an increase of 19.6% compared to 2007. The fourth quarter average MLS® residential price surged 27.2% over the fourth quarter in 2007, representing the only growth market in Canada.
Increased housing demand in recent years is the result of employment and income growth; household formation; low mortgage rates; and a positive business environment, facilitated in part by continued optimism surrounding a number of future major projects. In addition to these factors, industry indicated that demand for residential units was also being fuelled by expatriates living in other provinces and from residents who commute to other provinces for work purchasing property for personal use and/or investment purposes.

Rental Market
Rental vacancy rates are at or near historical lows throughout Newfoundland and Labrador. Vacancy rates in urban areas have decreased from a high of 15.4% in 1997 to just 1.1% in 2008. During 2008, vacancy rates were lowest in the St. John’s CMA (0.8%) and Corner Brook CA (0.9%), followed by Grand Falls-Windsor CA (1.9%), Gander (2.6%), and Bay Roberts CA (4.0%). Although vacancy rates are low, rental prices remain the lowest in Atlantic Canada. In 2008, the average rent for a 2-bedroom apartment in Newfoundland and Labrador was $596 compared to $635 in New Brunswick, $660 in Prince Edward Island, and $795 in Nova Scotia. It is expected that improved labour markets, positive netmigration, higher housing prices, and a lack of new rental construction will keep vacancy rates low and place upward pressure on rental prices.

http://www.stjohnsrealestateonline.com/economy-2009-newfoundland-real-estate-section/

Reviewed by Moishe Alexander, CFC CEO

Coal's place.

Somewhere along our collective path, a home stopped being shelter, and became a house. Then it turned into an investment asset. Then a mark of social stature divorced from income or debt. Then an entire financial plan. And then a lot of us got into trouble.

Owning real estate is fine. But property does not a home make.

And just as Chris the new dad in the previous post seemed to confuse the two, so Coal in the note below wrenches us back to basics.

Most of us would not trade places, but many wish we might.

Hello Garth

Been following your blog for quite some time now, you pretty much nail it every time with what you post.  I got smart some 12 years ago and went the RV way of life.  Started out in a small fifth wheel trailer, living at one campground or the other always close to work.  I attached a pic of my current rig, which I paid for in cash last year. A luxury rig and we are very comfortable in this unit, me the wife and a 14 year old.  We park at my business where I own and operate a small truck repair facility for the winter months when I do the bulk of my work.  Seasonal camp in a campground about 10 miles away for the other 5 months of the year.

Business has been about 50 % down this last year.  So I layed off two guys and now it is just myself and my main guy working the shop. Everything I own is paid for and we have no debt, personal or business.  I own my receivables but none the less, we are making no money during this economic slump, but I am in a great position to weather these problems.  The last month or so our sales have picked up and my best scenario is too stay in my shop for as long as I can.  We have about 10 grand to fall back on, not alot, but we have no debt and my recievables are sitting around 40 grand right now with current bills in the business sitting around 10 grand.  I should also say that we got to this point from the economy but also from having to move our shop 4 times in the last year, can’t find a suitable shop, ok right now.  Also our previous trailer burned down last year and we had commercial insurance which paid out 50 %, shit, in ten months we spend 75 grand on two trailers and got back 17.  Big lumps.

My point of all this, is because we chose to live this lifestyle, our overhead in minimal.  I started my business 5 years ago and was able to save and pay out approximately 150 grand for equipment.  Save and pay for my boat, my custom dually diesel truck to pull my fiver, and a vehicle for the wife.  Had I had a mortgage and did like so many others do, finance everything, the last six months I would have lost everything and become bankrupt.  My wife does not work either, but helps out with some paperwork at the business, but mostly a full time mom looking after our 14 year old and also has time for our grandkids.

My mom has owned two houses, and says that every time she owns a house, it takes all the money.  My guy that works for me, has a half million house, and it takes everything he has to keep the boat afloat, wife working, and the parents living there to help. He carries no debt either with the exception of the mortgage, he and I both have not had credit cards of lines of credit for well over 25 years.

Getting close to 50 now and seriously thinking of some property in Northern Ontario where one day I can retire and park my trailer, fish and maybe work part time, have no idea of how much money I will have by then, maybe nothing, hinges on the economy.  Isn’t that a sad thing to say.

So keep up the good work with the blog as I look forward to each post on what you have to say.

Coal

http://www.greaterfool.ca/2009/06/12/big-lumps/
]]> http://moishe-alexander-cmhc2009.com/2009/06/moishe-alexander-presens-new-aspect-of-recession-big-lumps/feed/ 0 http://moishe-alexander-cmhc2009.com/2009/06/hebron-ben-nevis-oil-project-a-go-for-newfoundland/ http://moishe-alexander-cmhc2009.com/2009/06/hebron-ben-nevis-oil-project-a-go-for-newfoundland/#comments Tue, 16 Jun 2009 20:07:05 +0000 admin http://moishe-alexander-cmhc2009.com/?p=115 Hebron-Ben Nevis announcement is going to jump-start the Newfoundland industry, and bring in billions during its life.  Employment in St. John’s and area will increase bringing back Newfoundlanders currently working in Alberta.  Relocation to St. John’s real estate market will certainly benefit.  The overall St. John’s economy will surely boom in the next few years, including the St. John’s, Mount Pearl, Paradise real estate market.

The Hebron asset, which consists of the Hebron, Ben Nevis and West Ben Nevis fields, was first discovered in 1981. Chevron Canada Limited is the operator for the Hebron project with a 28 per cent working interest. The asset is located in offshore Newfoundland’s Jeanne d’Arc basin and is approximately eight km north of the Terra Nova oilfield. Partners signed a Unitization and Joint Operating Agreement in 2005. Hebron is a heavy oil reservoir with significant technical and commercial challenges and is estimated to have 400-700 million barrels of resources. Project partners include: ExxonMobil Canada (37.9%), Petro-Canada (23.9%), and Norsk Hydro (10.2%).

GREAT news for the St. John’s Real Estate Market!

Presented by Moishe Alexander, CFC CEO

http://activerain.com/blogsview/182340/hebron-ben-nevis-oil-project-a-go-for-newfoundland