JUROCK’S Facts by Fax
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November 14/1996 – November 21/1996″An open mind, like an open window should be screened to keep the bugs
out.” V. Hutchinson
FEELING THE BLUES?
While Real Estate markets in Abbotsford and Chilliwack are improving –
particularly in the $200,000 and under price level – there still is a lot
of gloom around. Some areas are not moving at all, others that moved well
in the past – such as the upper end in White Rock/Morgan Creek – seem to
have fewer sales overall. Many wish they were back to those “up years”
where everything went always up. Up in price, up in volume. But did
everything really always go up in volume and price? A fine paper by
esteemed Professor Stan Hamilton of UBC points out the fallacy of this
argument. Hamilton: “The total number of MLS transactions in B.C. has
grown from 5,098 in 1961 to 294,276 in 1995, a compound growth rate of
approximately 10% per year. But the year over year change in the total
number of MLS transactions shows big variations. Between 1961 and 1995,
there was a year over year decline in the number of transactions in 10 of
34 years. The most spectacular ” boom and bust” period occurred in 1979-81,
but recent declines in 1994-95 are also significant. Transactions rose by
34% in 1980. Then they fell by 39% in 1981. So whatever you are feeling,
we’ve been there before.
FIRST NATIONS PROPERTY REVISITED
In our July 4 to 10/1996 issue we pointed out that the Real Estate Act,
Part 2 does not protect you, if you either sell as an agent or buy as a
buyer on Native Lands. In fact the disclosure requirements and the
recession rights contained in the Act do not apply to subdivided lands on
First Nation property. Last week the Real Estate Foundation reported that:
” if you enter into a dispute over a tenancy agreement or rule or
regulation, you must have a federally registered headlease with the Indian
Affairs Ministry. Without head and sublease in place,YOU HAVE NO LEGAL
RECOURSE and must rely solely upon goodwill to resolve the problem. In fact
says the foundation: ” Legally, no Indian Act supported lease means having
No lease!” We re-iterate our recommendation: Avoid buying property on or
property that is abutting Native Land. Even property that you have to drive
over Native Land to get there may give you unanticipated problems in the
WHY EDMONTON STILL HAS A 10% VACANCY RATE
CMHC: “The high vacancies are attributable to a net outflow of people, an
aging population that favours home ownership, ideal conditions for buying
homes, low mortgage rates and a large supply of affordable housing. ”
Indeed! Another factor , according to CMHC is the abundance of rental units
available even outside of the apartment and townhouse units surveyed.
Excess supply of almost all types of housing is a boon to renters.
Expecting improved migration (over 6,000 inward bound for 1997) CMHC does
expect the vacancy rate to drop to 9% this October and to 7 % next October
(which would be the lowest since 1993). As we put in our JREI newsletter on
“Edmonton perhaps” earlier this year, Edmonton has experienced a
“bottoming” in both price and volume and from a cashflow perspective
definitely warrants a look. Our statistics show however, that in some
suburbs and parts of Edmonton proper, vacancy rates are far higher than the
average, reaching as high as 13%. But then you can buy an apartment
building for as low as 18,000 per suite. Even though 45.3% of all tenants
in Edmonton (37% in Vancouver) can now afford to buy, the town still needs
a boost in new confidence.
PRICE PER SQUARE FOOT IS KING?
Not really? I still find it surprising , that units just over the bridge
from downtown (say West 13th or so) on the Westside sell for $280 – $310
per sq. foot while downtown they sell as low as $210 to $225 per sq.ft.
So, before you plunk down that $220,000 or so for your 750 sq. foot unit,
take a look what the extra 250 square feet downtown can mean in terms of
living space. I don’t mean high profile presale downtown, but one to three
year old downtown buildings like Pacific Boulevard buildings. You have
view, location and size on your side.That area, while still emerging, will
in 5 years be prime and the larger units will command a better price.
A short few years ago, we built large condominiums, of the three bedroom,
1,200 sq. foot variety. When affordability became a factor and “price
point” a buzzword (you gotta be below that magic $150,000), everyone built
small, small, small… 600 sq. feet and the like. Again, all together. Mark
my words, we willl have a shortage in the 1,100 to 1,300 sq. foot category.
It’s becoming evident.
105,000 HITS IN ONE WEEK!
A record for Jurock International Net! We are also privileged to welcome
new businesses and clients to our ever-growing BUSINESS B.C. SITE. New
additions this month: Office Buildings: Park Place – Vancouver’s premier
office building, Developments: Manteo Beach Club, Luxury Beachfront in
Kelowna, Rykon Group, award winning community builder throughout B.C.,
Governors Land Corp., developers of prime subdivisions, Pasadena Estates,
Gary Dober – prime development in the heart of Kelowna, Investments:
Tradex – your Futures and options resource center, Insurance: Fawcett
Insurance – Competitive insurance with a twist, Top Realtors: Vancouver
Commercial, Steve Horowitz and Gordon Urquhart -Turner, Meakin and Co.Ltd,
Nanaimo Joy Cameron -Nanaimo Realty, Port Alberni -Talore Hilton
-Windermere/Mid-Island Realty, Salt Spring Island- Liane Read, Island
Heritage Realty, – , Country Homes – Lauris Talmy, Sutton Group, Vancouver,
Paul Apostoli, Canada/Asia Properties, Law Firms: Chen & Leung,
Barristers and Solicitors – All areas of law, Research and Development:
Cowley Coating Corp – a R&D firm in the field of furniture manufacturing.
Check us out at www.jurock.com. Last week we received over 27,000 accesses
from Asia. We have the latest stats, ‘easy surf’ gateways to premier
business sites around the world and – of course – connections to over a
million properties. (November JREI Subscriber special: Picture ad and 40
words $10 for two months! Homepages from $99!)
WHY YOU WILL BE ON THE NET
Network Wizards have come out with a new survey of internet hosts – here
goes: The Net is growing at a rate of 72 percent a year. Highest increase
comes from www hosts, which shot up at an annual rate of 1,165 per cent.
Twenty-three nations came online in 1996: China, Russia, Brazil and Hungary
are the four fastest growing country domains this year. If you do nothing
else, at least protect your company name by registering your own domain name.
MICHAEL DOES IT AGAIN
On Saturday, November 23rd from 10:00 a.m. to 4:00 p.m. at The Westin
Bayshore, Tim Cestnick, author of A Declaration of Taxpayer Rights and
Canadas most popular financial analyst, Michael Campbell of Money Talks,
among many other speakers are holding an all day event. Tickets are only
$19.95 for JREI subscribers and if you say you come from JREI, you also get
a tape by Harry S. Dent, author of The Great Boom Ahead and Jobshock: How
To Get In On The Great Jobs Ahead. See you there. Call 878-8822.
Subscribers’ Plots of the Week: 1. Court ordered sales: a) Burke Mountain,
1.14 acres, 24 yr. old home, Price:; b). South Surrey, 924 sq. ft. mobile
on owned land, 2 bedrooms, Price: $98,900; 2. Downtown Maple Ridge, Strip
Mall, main intersection, 1 1/2 acres, 14,000 sq. ft. Fully leased. Price:
$1,650,000. 3. Toronto, 2 Bedroom Condo, 6 yrs old, MUST SELL. Price:
$78,000, 4. Toronto, 3 Bedroom Condo, 6 years old, ALL OFFERS Price:
$88,000. Call Liesl or Lin at 464-0808 (All SPOW’s are for you to
evaluate, just look interesting to us. No guarantees).
RESIDENTIAL MORTGAGE RATES: Still low, low low.
Best rates 6 mos. 1 yr 2 yr 3 yr 4 yr 5 yr 7 yr 10 yr
High Ratio 4.85 4.80 5.35 5.60 6.00 6.20 7.14 7.69 Conventional 4.85 4.80 5.10 5.60 6.00 6.20 7.14 7.89
Mortgage rates based on a weekly survey of 65 major financial institutions.
The lowest rate posted may be conditional to the borrower meeting certain
requirements/conditions. For Lower Mainland rates try: Nova Financial
Services (John Ribalkin or Jaeson Robinson direct tel: 251-6682); The
Mortgage Source (Rick Robertson cell: 377-6985/toll-free 1-800-465-6275);
Canada Trust (Brad Currie (604-816-5198).
To subscribe to Jurock’s Facts by Fax ($125 per annum) call
683-1111/464-0808 OR fax 683-1707. While the above information is compiled
from sources believed to be reliable, its accuracy cannot be guaranteed.
Any type of investing carries inherent risks; as such we cannot assume
responsibility for any subscriber’s actions or choice of investment.