[youtube]http://www.youtube.com/watch?v=3a8gvdZUvw4[/youtube]
Thank you so much for joining me this week. This is my first video done at my new boardroom at the Mortgage Forces. It is a great new company and I am thankful for being able work here now. We are located at the corner of Bank and Ohio Street in Ottawa with excellent parking available on site.
There are still very low rates with 5 years at 2.98% for High ratio deals and 3.89% for 10 years being the most common. It was a great past weekend with Oktoberfest and the NFL experience in the Byward Market, the Orleans Business Showcase at the Shenkman Arts Centre and a trip to Gatineau park going on. There were also so many open houses in Ottawa this weekend, it truly is a great time for potential buyers to be looking! Let me know if you need help being set up with a leading real estate agent, I know the best in the city!
Coming from the Ottawa Business Journal, construction building permits down 28 percent in the city year over year for September, not a good trend, but this doesnt just include homes and condo projects. I do see a slowdown in condos being constucted at the moment, not necessarily being approved. This was the case recently as we saw the Hintonberg recently dropped their OMB appeal with Claridge for the condo at 1050 somerset street near Breezehill ave. It will be 23 stories and was made possible by a number of significant concessions worth several million dollars.
There was an interesting article going around by William Robson, the president and CEO of the CD Howe institute. You can read it here. It is promoting the idea that interest rates must rise and why. It also offers great advice to Carney as to what to do in the case that rates do not rise as is expected.
In the National Post this weekend Garry Marr talks with Benjamin Tal, the chief economist at CIBC regarding the potential housing crash and makes the case as to why people should hold on buying right now. Of course they have been writing articles on the potential decrease in housing prices for the past 4 years. The bottom line is home purchase timing, like market timing in financial picking, is not the best idea. A huge part of buying a home is remembering that it is not only an investment for you future but it is the place where you live and raise a family.
Earlier last week the revised household credit-market debt to disposable income for Q2 2012 was increased to 163.4% This number is very large and it does post a picture that Canadians are now, more then ever before taking advantage of low interest rates for their lending needs. This means, as Dave MacKay from RBC said, that it would take a year and a half of family income to pay off full financial obligations. But who puts all income towards paying off the debt, not many. We do a great job in Canada in terms of underwriting our mortgages and Home equity lines of credit to make sure that if maxed out, our citizens would be able to make payments and repay in the future. Of course, if there are changes to your financial capabilities, you must take it upon yourself to seek out advice from your financial planner so you can adjust to the change.
On a more local note, MPAC’s property assessments are starting to come in and this can mean large increases for 2013 property taxes and people are starting to see some shocks in local areas such as Westboro where home prices have increased upwards of 70% since the last assessment 4 years ago. The average value of an Ottawa home rose 26%. You can appeal the assessment for free up to 60 days after you receive it, I have put the address and information below:
What should I do if I don’t agree with my assessment?
Please review your 2012 Notice carefully to make sure the information is correct. If a factual error has been made, we will correct it
Step 1
Visit www.aboutmyproperty.ca
You can log in to AboutMyProperty™ to check all the information that MPAC has on file for yoru property and also get a detailed Property Profile Report. If any information is out of date or incorrect, you can send updates to MPAC directly through the website.
Through AboutMyProperty™ you can also compare your assessment to similar sold and unsold properties in your area to help you determine its accuracy. You can obtain information about your property and information on up to 24 additional properties of your choice and up to six selected by MPAC, free of charge.
For more information, click here.
You will need your 2012 Property Assessment Notice to register. Click here to find out when Notices will be mailed in your neighbourhood.
Alternatively, you may send a written request to:
MPAC
P.O. Box 9808
Toronto ON M1S 5T9
Toll free fax: 1 866 297-6703
