I realize that Monopoly doesn’t sound that exciting. And I’m sure many of you will have stopped reading before this sentence, or are now in complete awe of how depressing my life is. But I assure you: I have had some near-death experiences fighting over the rules of Free Parking.

For as long as I can remember, “Free Parking” has meant “Jackpot.” Whenever the Community needs some astronomical sum for building repairs, or Chance has it that you’ve finally got to pay taxes on all those luxuries you’ve been hoarding, you pay it to the middle of the board. Then, when you land on Free Parking, you load the loot into your little pewter wheelbarrow and wheel it back to your house on Baltic Avenue.

But, time and time again, I have been challenged by those who maintain that Free Parking is just a “Resting Place.” Riiiiiight you guys. A resting place…in the middle of a board game. Gee, I’m getting really tired pushing this thimble around. If only there were some place I could rest, and escape the pressures of real estate ownership, if only for a moment. Oh my God! Free Parking? Don’t mind if I do!

I’m sure this will send many of you scrambling for your Monopoly Rule Books, where you will no doubt find concrete evidence to prove me wrong. And if you look in the Monopoly Rule Book under “Free Parking”, you will see that it is, in fact, just a resting place. And yes. If you look in the dictionary under “wiener,” you’ll find a picture of yourself holding the Rule Book for Monopoly! Of course the rules say it’s just a resting place. The rules are designed to maximize boredom, and minimize coolness. It’s time to put down the rule book, and pick up a leather jacket, because you need some serious schoolin’ in coolin’!

In conclusion, every time you use Free Parking as a resting place, an innocent top hat goes to jail.

http://vice.typepad.com/vice_magazine/2009/07/canada-.html

reviewed by Moishe Alexander, CFC canadian funding corp CEO

The real estae world has been sent completely on its ear this year, with bailouts, credit problems, foreclosures and more. What’s in store for us now? Is there any way to know if the rates will continue to go down?

Usually, with conditions so tight in the lending markets, one would expect banks to lower their rates to attract the best customers. But it appears that banks are actually raising rates, in the hope that will improve their revenue.

It seems pretty short sighted, but to make up for falling revenues, banks are increasing rates across the board, instead of offering attractive rates for their most credit worthy borrowers. This shortsightedness is not limited to the mortgage industry; credit card companies are doubling and even tripling their rates in reacton to defaults on the part of customers in this depressed economic environment.

It used to be that when the economy slowed down, lenders would lower their interest rates and this would give an incentive to borrowers. Things are not like they were before, though, and new rules seem to be the rule.

How should a homeowner view this crisis, and what things should he be doing? Wait for this time to pass and for rates to come down or grab a loan now, while there is still some credit available, or wait for the fallout from the recession?

Some economists are not only predicting a recession, but even a depression, with deflation instead of inflation. Normally, deflation will in turn lead to lower interest rates, so this indicates a wait and see approach is the best to take at this point.

There are lenders who are still granting mortgages. Many small banks are not suffering from the credit crunch that has hobbled many big banks. In this case, being small was better, because many of them were insulated from the issues now haunting most of the credit industry.

There is another strong reason for waiting to buy right now and that is because home prices probably still have a way to come down. The Case-Schiller study that came out in November of 2008 reported year on year decreases of 17% nationally, with 25% in some locales. The scene seems to be perfect not only for lower interest rates, but lower housing prices as well, with the wise homeowner putting off his plans until the entire mess is sorted out!

http://thephilippinerealestate.com/articles/mortgage-insurance-in-canada-interest-rates-in-the-new-world-of-mortgages/

reviewed by Moishe Alexander, CFC canadian funding corp CEO

“Cautious, price-sensitive purchasers are now weighing their options, waiting as long as six months for the right property to come along,” the report says. “Properties that are priced well will sell, while those that are priced too high will linger.”
Although people who buy an upscale house generally have deeper pockets than those buying an average home, factors that influence their decision are largely the same, said Lowell Martens, a realtor with Re/Max Mountain View. Article.

Free Real Estate Listings.

http://surerealestate.blogspot.com/2008/09/real-estate-for-well-to-do-is-on-slide.html

reviewed by Moishe Alexander, CFC CEO

http://www.propertyedge.ca/gta-housing-market-up-in-first-half-of-june

reviewed by Moishe Alexander, CFC CEO

Canadian Funding Corp regards the adjustment in Alberta’s multi-family market to weaker economic conditions as having lagged that of the single-detached market. As a result, multi-family starts will face a stronger downward adjustment in 2009, likely in the neighbourhood of 50 per cent. Calgary will record the strongest reduction in starts this year, where the construction of several apartment condominium projects has already been halted. Provided the necessary adjustment is made this year, a modest gain in starts will occur in 2010.

Despite price reductions for existing homes, low financing costs, and buyers’ market conditions, Alberta’s economic environment has prompted more cautious purchasing behaviour by households, especially for big-ticket items such as real estate. As a result, existing home sales in Alberta will moderate for the third consecutive year in 2009. Once buyers gain confidence that prices have stabilized and economic conditions are improving, modestly higher sales should occur next year.

Alberta’s average resale price, notes Canadian Funding Corporation, will be slow to rebound from the first decline in 13 years. Despite a decrease in the number of active listings, slower sales will ensure the market remains fixed in buyers conditions. As a result, the annual average price in 2009 will decline for the second consecutive year.

In Saskatchewan, a 49 per cent increase in building activity in 2007, followed by a 13 per cent increase in 2008 has led to a rapid rise in the supply of single-detached housing. With complete and unabsorbed inventories up in most markets, a significant reduction in the pace of construction will be required this year to reduce these inventories to manageable levels. Builders will have an opportunity for modestly higher production in 2010, provided inventories reach their peak some time later this year.

With elevated construction levels in the last few years, the supply of condominium units in Saskatchewan has also reached record highs. Given the expectation of rising inventories, builders will adjust the pace of multi-family construction moving forward. After a 25-year high in 2008, a strong decline in production is expected this year. Assuming inven- tories are managed appropriately, Saskatchewan’s multi-family develop- ers will see modestly higher starts in 2010.

Canadian Funding Corp allows that Saskatchewan’s recent price escalation hindered resale demand in the second half of 2008, contributing to the growth in inventories and lower month-over-month prices. In the face of economic uncertainty, residential sales in Saskatchewan will face further moderation in 2009 with activity down 16 per cent. Toward year-end, modest price declines and a multitude of listings will provide opportunities for buyers, slowing the drop in sales. Under these conditions, sales will stage a modest rebound through 2010.

After leading provincial growth in 2007 and 2008, the average resale price in Saskatchewan will see little change over the next two years. An excess supply of listings and strongly motivated sellers has resulted in recent month-over-month price declines. In this environment, the average price will be lower by a few per cent this year. Once resale listings moderate and sales improve into 2010, price growth will slowly return.

After an impressive performance in 2008, single-detached starts in Manitoba will post an 11 per cent decline this year. Starts will remain elevated in the first part of 2009, thanks to a backlog of orders from the previous year. However, activity will slow over the duration of 2009 due to the economic uncertainty facing buyers and concerns over rising inventories. The weaker construction in 2009 will ensure that price growth is restrained and inventories are minimized, creating an opportunity for higher starts next year.

Canadian Funding Corp considers that Manitoba’s multi-family starts will continue to moderate from their 2007 peak, reaching 1,400 units this year before increasing slightly in 2010. Winnipeg’s share of provincial multi-family construction will be lower than historical standards. This will be due to rising inventories in Winnipeg and heightened demand for multi-family units in other markets, particularly for rental tenure.

The number of existing home sales in Manitoba will decline by more than 10 per cent in 2009 before posting a modest rebound in 2010. Demand will be weak in the first half of this year due to the current economic environment and cautious buyer sentiment. However, strong labour markets, a growing popula- tion, and relatively low prices should contribute to a recovery in the latter part of the year and into 2010.

Manitoba’s six consecutive years of double-digit resale price growth will come to an end in 2009. Resale market conditions are shifting in favour of the buyer, owing to a increase in listings and moderating sales. Given such conditions, a modest decline to Manitoba’s average resale price is expected in 2009. Look for a gradual shift to a more balanced market in 2010, resulting in modest price gains of nearly four per cent.

Canadian Funding Corporation. CMHC housing update information gratefully acknowledged.

Almost all lenders are concerned that their money lent is repaid, so underwriting of construction loans usually focuses on how that might occur.

In the most basic situation, that of an individual building a home for themselves, a business building a property for business use, or an investor building a property to rent out, the fundamental guideline is for the lender to imagine once the loan has been fully extended and converted into a normal mortgage and the building is occupied, whether the individual, business, or investor can afford to pay back the loan on a monthly basis. In the case of the individual, where the lender attempts to predict whether the individual can pay each month the loan payment that would occur once the person moves into the house, the lender would be primarily looking at the amount of income the individual receives. In the case of the business, a similar analysis would occur. In the case of an investor building rental property, a special appraisal would be ordered which would attempt to predict what the rents will be and whether they will be enough to pay back the loan, plus all expenses and still give the renter a certain minimum amount of income. The key point here is that no matter how valuable the building might be once completed, almost no lender would extend a loan for more than what the occupier could afford, because even though they will not have to make any payments during construction they would have to make monthly payments once completed and there can be no assurance that the owner would pay down the loan enough to make the monthly payments affordable once the project is completed.

Beyond this guideline, the next most common rule is a minimum cash injection requirement. Even if, for example, a business might be able to afford a monthly payment of a loan high enough to pay for the entire construction project, many lenders would require them to instead use a certain minimum portion of their own cash to complete the project. The reason for this is both to psychologically and economically tie in the owner with the project (hopefully making it less likely that they would walk away from the project if something goes wrong), and to give the lender a cushion whereby if something goes wrong they are more likely to be able to sell the real estate at a value that would better cover the loan amount. This guideline is often termed a “loan to cost” requirement, ie. the lender will only loan up to 85% of the project costs.

The final major guideline is the maximum loan amount the lender will allow relative to the completed value of the project. This rule is designed to help ensure that, after the project is completed, if the borrower stops paying the payment, the lender can sell the property and hopefully recoup all the funds loaned.

Construction loans are often extended for developers who are seeking to build something but sell it immediately after building it. In this case, a special appraisal is ordered to attempt to predict the future sales value of the project. The first guideline above, affordability, is usually not used because the owner would immediately attempt to sell the property. However, it is used sometimes for example when a developer is building condominiums, the lender might evaluate whether if the project was changed from condominiums to apartments if the rents received would more than repay the loan each month. Cash injection requirements are often higher due to the added risk (the immediate need to sell). The loan to value requirements however are often the most impactful. This is because the value is often calculated differently then how people might assume. For example, if a developer is building a 20 unit condominium project, a lender might not just loan a certain percentage of the predicted future total value of the condominiums, but only a certain percentage of the value of the condominium project if, because of an emergency or unforeseen circumstance, the entire building had to be sold at once to one buyer (known as a bulk sale). Since the realizable sales price in this case might be much lower, the maximum loan many lenders would extend would be much lower.

Public and private spending on major projects in Atlantic Canada will increase nine per cent to $8.8 billion this year despite a global recession that has left much of North America in much worse shape, an independent think-tank concludes in an report released Monday.
The Atlantic Provinces Economic Council’s annual Major Projects Inventory found that the economic downturn has prompted the delay or cancellation of some projects, but many ongoing projects in the region have benefited from lower labour and material costs.
“Things are not nearly as gloomy here in Atlantic Canada as they are in other parts of North America,” Elizabeth Beale, the council’s president and CEO, told about 100 businesspeople at the Pier 21 complex in Halifax.
The study found that even though private sector spending will dip four per cent in 2009, big increases in public spending will drive up the overall rate in the region.
The council concluded the federal and provincial governments have come forward in a big way to stimulate the region’s economy, boosting spending by a whopping $900 million in 2009 alone.
Nova Scotia’s share of the public funds will jump by 53 per cent, with most of the money earmarked for education, transportation and water upgrades. Newfoundland and P.E.I. will see public spending increase 40 per cent, and New Brunswick 15 per cent.
As for private sector spending, most of the new money – 40 per cent – will be spent by energy companies producing oil, natural gas and electricity.
According to the study, Nova Scotia will lead the way in 2009 with a 23 per cent increase in private and public spending on major projects as work continues on the Encana Corp.’s (TSX:ECA) $700-million Deep Panuke natural gas project.
The project is expected to start producing next year.
But there are no other offshore projects on Nova Scotia’s horizon, with the most recent exploration well drilled in 2004.
Newfoundland and Labrador will see project spending increase 20 per cent as work continues on Vale Inco’s $2.2-billion Voisey’s Bay nickel processing facility at Long Harbour and Husky Energy’s (TSX:HSE) $3.5-billion expansion of its White Rose offshore oilfield.
Spending will be up slightly in Prince Edward Island as work wraps up on 55 wind turbines erected for $220 million by West Cape Wind Energy.
In New Brunswick, major project spending will drop 13 per cent as most of the work on the Emera Inc. (TSX:EMA) Brunswick Pipeline was completed last year.
Still, New Brunswick has its share of megaprojects underway.
The council’s senior economist, David Chaundy, said major project spending in the province this year includes plans by the Potash Corp. of Saskatchewan (TSX:POT) to spend $1.7 billion to expand a potash mine near Sussex.
Two shafts are being drilled there this year, but the entire project won’t be completed until 2012.
As well, work is continuing on the $1-billion refurbishment of the Point Lepreau nuclear generating station in southern New Brunswick and the $1-billion Canaport liquefied natural gas terminal in Saint John.
On the downside, tight credit markets have led to delays in the construction of two condominium projects in Charlottetown, a new RCMP headquarters in Dartmouth, N.S., a number of wind energy projects in Nova Scotia and New Brunswick and expansion of the Come By Chance oil refinery in Newfoundland.
Lower commodity prices also forced the delay of an $800-million expansion of the Iron Ore Co. of Canada in Labrador.

http://www.trurodaily.com/index.cfm?sid=261140&sc=518

Another major bank is forecasting Saskatchewan to lead the country in economic growth in 2009, with a projected one per cent increase in real gross domestic product.

A FREE car may not be what you think – FREE

important info provided to the blog by Moishe Alexander, CFC CEO.

Here is a deal for you. If you are looking for a townhouse in Richmond, than this may be the deal to look at.

One of the premier BC Developers has a promotion starting April 11th, that ia offering a free Mercedes Benz SUV to purchasers of one of the 8 remaining townhouses in Richmond development.

As a buyer, you have to be careful If you have been approved at around the selling price of these units, $600,000 +, keep in mind that some of the financial institutions may add the value of the FREE car to your mortgage approval amount. That means that you may have to be approved for the selling price plus the car value in order to take advantage of this offer.

Better option may be just to take a discount of the selling price and forget the car.

Here is the Developers email I received re the offer:
“Greetings from Hennessy Green, Polygon’s latest collection of executive-style townhomes in Richmond’s Alexandra Gardens neighbourhood.  The luxurious townhomes at Hennessy Green have continued to be a popular choice among Richmond homebuyers.  In fact, we are excited to announce that now only 8 homes remain for sale! What’s more, as we approach the selling-out of this new community, we are pleased to bring back the hugely successful Mercedes-Benz promotion due to popular demand – that’s right, every one of our final 8 homes will come with a brand new Mercedes SUV!*  Now your clients can enjoy generous space, designer details, and exceptional comfort whether they are at home or on the road.     The four bedroom homes at Hennessy Green range up to 1,748 square feet and feature the luxury of air conditioning, double side-by-side garages, sophisticated kitchens with warm wood-style flooring and sleek stainless steel appliances, and a private residents-only clubhouse featuring a fitness studio, games room, and outdoor fireside patio.     This exciting promotion begins this coming Saturday, April 11th, so we encourage you to visit us again soon with your clients for details!  As a reminder, our sales centre and three stunning display homes are located at 9800 Odlin Road in Richmond, and are open daily from noon to 6pm except Friday.

* Based on a 2009 Mercedes-Benz ML320BT with a total value of $72,450.  Promotion only applies to new firm contracts of purchase and sale entered into on or after April 11, 2009.  Ask sales staff for details.  Mercedes-Benz is a registered trade-mark and its owner is not associated with this communication or promotion in any way. ”

http://www.realestatevancouvercondo.com/buy-a-townhouse-get-a-free-mercedes-suv-but-did-you-know