OTTAWA, August 11, 2009 — The seasonally adjusted annual rate¹ of housing starts decreased to 132,100 units in July from 137,800 units in June, according to Canada Mortgage and Housing Corporation (CMHC).

“The slight decline in July’s housing starts is mostly attributable to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Although July registered a decline, housing starts are expected to improve throughout 2009.”

Over the next several years, housing starts will gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year.

The seasonally adjusted annual rate of urban starts decreased 5.5 per cent to 113,500 units in July. Urban multiple starts decreased nine per cent to 61,000 units, while urban single starts moved down 1.1 per cent to 52,500 units in July.

July’s seasonally adjusted annual rate of urban starts increased 16.6 per cent in Quebec. Urban starts declined 17 per cent in the Prairies, 15 per cent in Ontario, 10 per cent in British Columbia, and 1.4 per cent in Atlantic Canada.

Rural starts were estimated at a seasonally adjusted annual rate of 18,600 units in July².

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

For more information, call 1-800-668-2642.

1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) – that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

Source: http://www.schl.ca

Is there a difference in owning a condo or owning a house? What do you have to pay attention to, when you are considering buying an apartment (condo) in Montreal? Who do you need to consult with? If you made a decition to buy dwelling you will confront with a lot of uncertainties and questions

We will try to answer on some of questions.

Property.

By obtaining a condominium in Canada ( in Montreal or in other city) buyer does not just become a single owner of the apartment (condo), but he also becomes a part of a community, which consists of the same owners of condo as himself. The buyer has the rights to sell, to lease or to bequeath the apartment (condo) as he wishes.

But at the same time he shares the rights on the land, corridors, elevator etc. with the other owners of condominiums.

Much more seldom there are situations, when property becomes public, mortgage credit is taken by all buyers of the apartments, rights and duties of everyone are specified case by case.

Cooperative’s representatives.

The owners of the apartments are electing syndicat de copropriété (Council society) for ruling and solving the problems of exploitation the building: engineering communications (water, sewerage, lighting, heating), conditioning, building services,( engage wokers for cleaning, necessarily repair etc) . The collective will agree on the amount of monthly pay to be extended to the society fund by the apartment owners. It is better if the respresentative will be the one who thinks like you, who will understand your needs and possibilities.

Location.

If you consider buying a condo, location is one of the most important things. We talk about good location of the apartment in the building, it’s illumination, location of the building and easy accessibility (roads, public transportation) . In Montreal, like in the other large cities in Canada, it is very important! Besides this, if one day you decide to sell your condo good location will secure the hight price of it.

An apartment.

The location of the apartment and the quality of the building are also very important. But some chic houses in Montreal are planed in such a way, that each block of flats, and sometimes each condo, has a separate entrance. At the same time the walls between the apartments are not always securing good soundproofing. So, before buying a house make sure that it has beed built good.

Additional service. Сondo-collections.

When you buy a house, find out which servises will be available for you. Are there garage, swimming-pool, sauna, tennis-court, gymnasium? If you prefer to park your car in a garage and not on the side of the street, be prepared that the price of the condo will be slightly higher, due to the assigned place in the covered parking.

But on the other side, if you do not like to swim, do you need an access to a swimming-pool? Remember, that condo-collections are covering all services, regardless if you are using them or not.

Contract.

When signing your intention to buy a condo in Montreal, point out that your final decision depends on regulations of le syndicat de copropriété (Council society) and the condition of the condo. Ask your lawyer or notary to chek all the documents and read ALL the conditions of owning a condominium (possibility of having pets, presence of parking space etc)

Beside this clear up what sum of money is available in the fund of the building, especially, if you buy a condo in the old building.

Consult with agents and commercial agents of realty! Do not be afraid to ask questions! Carefully think over all your steps!

Share your experience with other reader of our blog, please leave your comments.

With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada. It is estimated that this measure will cost $15 million in each of 2009–10 and 2010–11.

First-Time Home Buyers’ Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time home buyers, who must pay these costs on top of saving the money for a down payment.

To assist first-time home buyers with the costs associated with the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

It is also proposed that the First-Time Home Buyers’ Tax Credit be made available to existing homeowners in respect of a more accessible or functional home purchased by an individual eligible for the Disability Tax Credit (DTC), or for the benefit of a DTC-eligible person who is related to the individual purchasing the home.

It is estimated that this measure will cost $30 million in 2008–09, $175 million in 2009–10 and $180 million in 2010–11.
Source http://www.budget.gc.ca/2009/plan/bpc3c-eng.asp

Ekatarina Erchova
www.quebec-real-estate.com

Would like to inform the buyers that the program of backing the purchase of an apartment is financed by la Société d’habitation du Québec and by the city of Montreal and is directed to assist in purchases of dwelling on the island. La Société canadienne d’hypothèques et de logement also helps low income families.

In order to be entitled to get a sum of $ 6500 the price of new house should not be higher than $180,000 (including the tax and additional services). Or $235,000, if at the moment of buying a house you have children under 18 years in the family. In this last case financial help of $10,000is going to be provided. Besides if the dwelling is certificated by the Novoclimat (l’Agence d’efficacité énergétique du Québec), the highest price of the apartment to be subsidized, will be increased by $2500. This financial help is extended as one transaction. The buyer has to provide all documents before the 31st of December 2009.

Keep in mind that financial help can be extended to a leaser, who wants to buy a rented dwelling. In this case the building has to be fully inhabited, and the price of the realty and the land should not exceed the following sum:
$ 296000 – duplex,
$ 346000 – triplex,
$ 398000 – quadruplet and so on
Nevertheless, for all these kinds of property, buyer has to prove, that he has not had real estate in Quebec during the last 5 years. For more detailed information check the site: habitermontreal.qc.ca.

Also you can find the e-form to register in this program.

Get 10% from mortgage!

There is another variant of financing, the innovation! It helps families, which want to buy a realty in Montreal. The program Acces Condos gives a chance to get a credit from $ 1000 (10% of dwelling cost) to the future owners of condominium projects, which were prepared by la Société d’habitation et de développement de Montréal (SHDM). Also, you can use this sum as the first payment – advance.

You can repay the sum of the credit at any moment, as long as you remain the owner of this realty.

If you sell or lease the accommodation, you have to repay the credit SHDM + 10% of benefit of selling.

For example, you bought a condo for $ 150,000. At the same time, you used a credit from SHDM 10%, like the first payment or $15 000. So, the price of your apartment is $ 135,000. Five years later, you decided to sell the condo for $ 190,000, benefit is $ 40,000 ($190000 – $150,000). In this situation, for repay the credit you have to return $ 15,000 plus 10% from benefit: $ 4000 = $ 19,000 in all.

Remember, that details can changed depending on your private affairs.

For more detailed information use the site: accescondos.org.

Condition of the apartment
You come to look at the apartment. 1 – the previous lodger had not yet moved (maybe you can speak with them and ask some questions about the apartment and the house).
2 – The apartment is being repaired or just repaired.

If the apartment is after repair and ready for your occupancy, pay attention to the fact that all works have been already done.
Often the promises to finish something after you move in can be stretched out for several months.

Ask your future neighbors (you can walk several times around the house, to strike up an acquaintance with grannies or mammy, who walk with their children. Usually such people are easy to contact),do they like to live in the house, where you are going to rent an apartment? What are the problems in the house? How quickly the concierge responds to their requests, repairing breakages and so on.

Kitchen.
Ask about the efficiency of equipment. From my own experience I would say that the kitchen cooker hood has worked only in one of 4 apartments I have rented. Often in multistores building – when the owner is changing, the kitchen equipment is being changed too – you can mark the flat like this.

Floor.
In wooden buildings, usually there is a wooden floor. Walk on the floor and check if it creaks or not. Decide whether you like it.

Windows.
Check the containment of the windows (it will be too late to check it in winter). How easy they open and close. Are there mosquito nets on the windows?

Laundry.
Large building usually has general laundry room – down in the basement, or in the special rooms on each floor. If you plan to buy your own washing machine and dryer – check if they can be installed before signing the lease contract apartment.
P.S. A lot of lodgers set the washing machines at their own risk…

Pets.
If you have pets or you are going to have one – ask permission to do this.

Parking.
Decide where you will park your car – is there an inside parking or parking place on the street. In Montreal you can see, so-called parking zone. Get to know where you can take the permission in the district.

Building.
Inspect the building inside – corridors, stairs, parking, space for garbage. Does everything looks ok?

Neighbours.
Go for a walk in the area around the house, where you are planning to rent an apartment. Try to get to know what is the contingent living there.

The rental payment.
Here, the main point is if heeting is included in the rent. In the large building, usually – yes. In the duplex, triplex – you get to know it. If possible, ask to show the heating bills for the last winter or for the last year.

Where to look for to rent an apartment?
Advertisements about the rent on houses, bulletin boards, internet: montreal.en.craigslist.ca, montrealais.ca , montreal.kijiji.ca
In the local newspapers.

If you have an experience, bitter experience or good experience, about the rent an apartment – leave comments to the article and share it with our readers.