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Michele Talks Traditions And Foreign Buyer Exemptions
January 16, 2023 | Posted by: Michele Cummins
Warning! This is an automated transcript so there will be spelling mistakes throughout! Including the spelling of Michele's name!
Curtis Pope:Well here we are another Saturday morning here in 2023. It's time for the Cummins Real Estate Group show with local Rockstar realtor Michelle Cummins and myself Curtis Pope. Good morning, Michelle.
Michele Cummins - PREC:Good morning this January 14 to Curtis Pope. Yeah,
Curtis Pope:I can't believe that. Sorry, January 14. And while we had that weird Friday, the 13th day yesterday,
Michele Cummins - PREC:what happened in your life yesterday, just
Curtis Pope:weird stuff on social media with fake scammer accounts going on on her page. And we just it was just, it was weird. Oh, that's no fun. Yeah, it was, you know, it's because that's something I need to spend time dealing
Michele Cummins - PREC:with. Yeah, nobody wants to do that. No, there's enough. There's only so much time in a day there is exactly what are the scammers think they can get away with anyways.
Curtis Pope:Well, you know, I guess if you go out there and you hit enough people up and you get a couple them to fall for the scam, I guess it's probably worthwhile, but it's a lot of time and effort and a lot of people, you know, just really go away. You know, like most people, you know, can figure it out pretty quick when suddenly, you know, one of the announcers on staff is telling you that there's a contest that we've never talked about on air,
Michele Cummins - PREC:and in a way a trip to the Bahamas and
Curtis Pope:they're randomly approaching you. I mean, most people get it, but then there's some that either don't get it or they just really want it to be true. I guess so. We Facebook's getting better at shutting these things down pretty quick, thankfully. So
Michele Cummins - PREC:thankfully, I've I still have those who comments on and review on my Facebook for some reason on Facebook about crypto currency all the time. Oh, yeah. Cuz that's a good idea. Oh, Samantha. Oh, Cynthia helped me whatever. And I'm like, Okay, my name is Michelle and I don't do crypto so delete delete. I've reported so many Facebook. So many. No, I hear Yeah. It's a full time job. Just keeping track of that.
Curtis Pope:It can be sometimes that's the you know, one of the drawbacks. There's a lot of benefits to social media. There's a lot of drawbacks. Yeah.
Michele Cummins - PREC:Did you watch Okay, so So Friday the 13th I always like the original Freaky Friday.
Curtis Pope:The original Freaky Friday? Yes. The movie. The one back from the 60s. Yeah. Did
Michele Cummins - PREC:you watch that? And we'll have that one.
Curtis Pope:Does that Patty Duke I'm trying to remember here,
Michele Cummins - PREC:I think is Patty Duke. And oh, she's so good.
Curtis Pope:I can't remember.
Michele Cummins - PREC:Oh, she was in that other movie with that other person. That other person. zactly.
Curtis Pope:That's helpful. Yeah, no, I mean, that's that's funny. I mean, I've seen the original I've seen with you know with Cassidy. I've watched the remake there with Lindsay Lohan and Jamie Lee Curtis V. I
Michele Cummins - PREC:couldn't put I couldn't do it. I love Jamie Lee Curtis. She's so funny. I was
Curtis Pope:able to put myself through it. I still have it. But is it good? It was pretty good. Yeah, there's actually been, they've been flirting with the idea of doing a sequel. It's like Jamie Lee Curtis is like would be the grandmother and switches places with easy yo, so
Michele Cummins - PREC:why not? Yeah, we need another movie to watch anyways.
Curtis Pope:If it's Jamie Lee Curtis doing it'll be fun. Yeah, true.
Michele Cummins - PREC:Okay, the one I didn't I couldn't either watch was the overboard the remake, either. Okay.
Curtis Pope:There the original had a charm to it. Kurt Russell was both a jerk and lovable at the same time. And Goldie Hawn was such a jerk in that movie when she was rich. You know, you're just like, You're awful.
Michele Cummins - PREC:She played two different people. So Wow. Like two different personalities. It was so good.
Curtis Pope:Yeah. So no, I haven't told you that one either when they did the role reversal. Because yeah, just ya know,
Michele Cummins - PREC:okay. Reminds me of Meg Ryan, who I love in Joe Versus the Volcano. Have you seen that one?
Curtis Pope:It's been a real long time. I'm
Michele Cummins - PREC:dating myself. I've
Curtis Pope:seen that one. But it's. Yeah, I can't. I barely remember that.
Michele Cummins - PREC:Okay, you have you and Kelly have to watch that again. If she plays Meg Ryan plays like three different parts. She plays her sister she plays like, I think it was three different parts. Anyway, she was amazing. And that two totally different characters. But my day yesterday, I actually got to sign a new listing. That's really exciting. Because it's a cute, cute, fabulous rancher in Agassi. And it's adjacent The backyard is private and adjacent to ALR farmland and the most amazing picture windows looking out to the most amazing views of Mount sciama It's so nice. It's a rancher with a basement. It's on for 715,000 and that is going live in a couple of weeks we can have so yeah, if anybody wants to see it, since it's not going to be on the MLS or live yet for awhile. Just call me contact me happy to show you sellers are all good with that. And so that was all exciting. And so I have I'm really excited because you know, we all love to have some hope and so Some things to think about, you know, what's coming on in the, you know, in our near future that we can look forward to. And Jordan Peterson is is coming to us for it at the abbess for center. So I'm excited to go see Jordan Peterson you know,
Curtis Pope:interesting. Yeah, yeah. Daniel Jordan Peterson. Personally, but I know who you're talking about. My
Michele Cummins - PREC:sister started the lion diet and I know his daughter is a huge and he does the lion diet and
Curtis Pope:yes, beef. butter and salt, salt,
Michele Cummins - PREC:water and lamb. Yes, that's all beef, lamb saltwater and yeah, I'm like, what?
Curtis Pope:Like I could do it. I just don't I wish you know, explains I mean, I love it. Listen to what he says. And he's a very smart man, but he often seems angry. Maybe it's because of the diet
Michele Cummins - PREC:like the raw just kind of
Curtis Pope:brings that you know that that primal lion out of you? I don't know.
Michele Cummins - PREC:Could be that's pretty my sister's tried it for a while and she's loving it. But over the holidays, of course, you know, she she she didn't follow it to a tee. But she did a really good and she's loving it. But anyways, I'm excited to see him. And then the other thing I'm hopeful for and I think you and Kelly might be going is Shania Twain and may
Curtis Pope:most likely I've seen Shanaya three times before I know she puts on an amazing read. Yeah. Yeah, no, she's a great entertainer, she put on a great stage show. Ya know, she's, she always she always brings it on. I remember the one time I saw she was even I was talking to record rep. And she was actually fighting a bit of a stomach bug or something. And she still came out and rock the place.
Michele Cummins - PREC:She's put a lot on like tick tock and social media. She's really out there. Like she's just having fun with life and, like, out there for her fans to get to know her better and better. I've never been to a concert though. So I'm pretty excited.
Curtis Pope:It'll be a good show. You'll like it.
Michele Cummins - PREC:So we were talking about traditions earlier another episode. And so I we have I love traditions. And I wanted to ask you about some of your traditions you have because as a family, your your house is your home where your heart your your home is and your family obviously and traditions. Traditions are important. Because if we don't, then life goes away. And you're like, so it's important. And so we're going to start my family tradition to going to the beach house in Oregon for every fourth of July, which is amazing. On the ocean on the coast there. There's the fireworks are crazy. You could see wild ports, huge fireworks on the north side. And on the south side, you look on the beach, and you can see Yeah, hats. And it's just so great. Last year was the first year that I spent Fourth of July there, but ah, Fourth of July and New Years. And so I'm excited to start this new tradition, but how about yourself? What are some traditions you have? You know,
Curtis Pope:it's hard to say we don't have a lot of things like that, I would say in the family. I mean, we do take a summer vacation, usually in the Okanagan, every year, this year, it's gonna be a little bit later. We normally do it in July, but it wasn't available with the hosts we rent. So this time around is going to be in August, which means we got to go through the entire summer without vacation time. So we're gonna have to probably start a new tradition this year. And at least even if it's just me and Kelly go away for some time in June or July or something nice. But, you know, we have, you know, I guess there's a lot of small little traditions we have, like, you know, as a family, we, you know, me and my daughter used to have when we haven't done it for a while, but we would from the time she was quite little we would snap a selfie in the ocean anytime we could. And we used to like to try to find a warm day, not the polar bear then. But we've done it like November, December when there's been like obscenely warm days just because we get those around here. I don't think we've hit January or February yet in her 16 years, but I think we've hit every other month. So you
Michele Cummins - PREC:should do a calendar of those photos. Yeah, for every month.
Curtis Pope:We have various ages over and stuff. But yeah, we should always do that. So that's something we know that we I can't say we've stopped doing it. We just haven't really had a chance to make the months that we haven't done yet.
Michele Cummins - PREC:You got to do it this year. I don't know it's
Curtis Pope:kind of hard to get assisting us in the winter. But yeah, just do little things like that, that we have or you know, just just a lot of little superstitious things when it comes to playing softball or hockey for Cody and, you know, pregame meal. There's a lot of little things like that my family a lot of little small ones. A lot of big ones.
Michele Cummins - PREC:Yeah, nice. I love that. That's really neat. That's really neat about taking the photos there with every month that's that's really cool. You should like one Christmas or something I don't know make a calendar for the family that has all those photos on it for every month if
Curtis Pope:anybody else have cared for me and Cassius thing. Yeah, well, there you go.
Michele Cummins - PREC:Oh, um, so I want to remind everyone that we actually record video our radio shows here, and we've been doing that for a while now and we upload them on our YouTube channel or my YouTube channel. Curtis, you don't have a YouTube channel yet? No, I've
Curtis Pope:never started a YouTube channel. I just don't have anything that important to say that people are gonna want to plus I get a face for radio Good to see me.
Michele Cummins - PREC:So you're you're part of my YouTube channel. And I wanted mention because we do you know all my listings all my blogs, our radio show links and you know so much more ever all the market updates every month of the Real Estate Board for Fraser Valley real estate and so much information is on my website. But I have completely revamped my website. I have been spending a lot of time the last two months, we're reworking and create a new website. It's the same Michelle cummins.ca. Michelle with one L Cummins, no G, but it is revamped. So go and check out my website and give me your suggestions of anything you'd like me to add to my website. I've got things like foreclosures, I've got equine properties for sale. I've got ocean like waterfront property. So I've got links to certain specific properties as well as information advice for home sellers and buyers and the like. So yeah, go on, check it out. And give me your advice.
Curtis Pope:Why are you doing the work? Don't get people for that.
Michele Cummins - PREC:I do delegate remember my word, this
Curtis Pope:delegate delegate. And no, it's not me. I'm not the one fixing your website? No, no, you do enough web stuff. I can do a little bit but enough to get myself in trouble.
Michele Cummins - PREC:Yeah, yeah, you will stay far, far away. Yes.
Curtis Pope:I'll fix one thing, and then I'll break six others? Well, you
Michele Cummins - PREC:know what I just you know, I don't want the website that's like the typical real estate website that everyone has. So I would love advice and pointers and suggestions on how to make it fun, interactive, informative, and do the job, but be different.
Curtis Pope:The other problem, of course, is when you do a website is it's almost out of date, as soon as you do it. That's the problem, right? It's like, oh, that's three, you know, engines ago, and now the wait doesn't look new. And you're like, really? Every time I think the radio station, I think we're always at least a couple of stages behind. It's like tech. Yeah. Well, Ria and then you do it and say looks great. And then you look at your phone going, Oh, it's not great on the phone. Exactly. Now, we got to make it so it's, you know, savvy for the phone, and it never ends.
Michele Cummins - PREC:Nope, it doesn't. Well, one day, it will end maybe, I don't know, all the new stuff. Always. I just talked about getting a new laptop computer. And the tech guy at the Real Estate Board was like, Well, Michelle, you know, they liked their Macs. No, sorry. They liked their PCs, but he likes the Macs and all these different things. And he goes, but don't get the newest one. But don't get the oldest one to get this one. But don't get that one for this reason. And I am so confused now. Like there's just to me, I just need like five different laptops and computers then?
Curtis Pope:No, well, it's like, you know, here we go. I worked for Rogers Communications. And for years they would always tell us don't take the new iPhone update. Just wait for a few weeks then. Did mine yesterday? Yeah, they used to always be like nope, hold off. Just even a couple of weeks. Then do the update
Michele Cummins - PREC:on my app, my Epson printer same thing. Yep. Update. Anyways, yeah, it's a lot of tech stuff talk but I do need a new computer. So if anybody has a good deal on computers
Curtis Pope:there we go. Well, we should probably take a quick break here. If people want to look at your brand new website where do they go? Well, that
Michele Cummins - PREC:is Michelle cummings.ca.
Curtis Pope:We'll be back with more right after this? Oh here we are we're back with segment number two of the commons Real Estate Group show with Michelle Commons. myself Curtis Pope. So now we had a little fun the first half, we talked a little bit about real estate and this cool new listing you have. But now I guess we got to get down to brass tacks and really talk about real estate. Amen. I mean, there's real estate in the show title, so we should probably talk about.
Michele Cummins - PREC:Okay, so let's talk about that foreign buyers not being able to purchase in Canada for the next two years. Oh, we're back to that. Back to that, because now it's been implemented. It's happened. It's after we know
Curtis Pope:January works now, though. Yes. Oh,
Michele Cummins - PREC:so we want to mention the exemptions, because oh, you know, that's really important to know. One big surprise is, of course, like Ukrainians, they can purchase in Canada. Why you ask? Well, because one of the exemptions is individuals fleeing international crisis and other vulnerable populations, and accredited members of foreign missions in Canada. So that's one, an exemption. Another exemption, which I didn't know previous to these coming out was that, as a foreign buyer, you can purchase recreational properties. Remember, we were like, well, what, what determines a residential property?
Curtis Pope:Remember, we talked a bit about that, so you can't Yeah, so you can't. So let me get this straight You can buy recreational property. So you could buy a house in the Soyuz?
Michele Cummins - PREC:And if it's your recreational property, you don't live there all year round, then yes, you can.
Curtis Pope:Fascinating. So you can buy it rent it out, make money off it? Exactly. And eventually when the freezes off, he could become your
Michele Cummins - PREC:live there part time and some more is residential property located outside of a large urban center.
Curtis Pope:So if you want to move to Smithers,
Michele Cummins - PREC:I would consider that outside of a large urban center and vacant land where the land has been zoned for residential use or mixed use by municipal authorities within large urban centers.
Curtis Pope:So you can buy the land, but you can't. Then you have to build. So there's all these loopholes that we were discussing. Yeah. Doesn't sound like there's a lot of ways of stopping
Michele Cummins - PREC:people. Yeah, if they want to bring their money into Canada, just buy some vacant land bison recreation properties, sit on it for a while. And
Curtis Pope:because that's kind of part of the point is they're buying the properties to get their money out of whatever country they're at. So they just buy land. Exactly.
Michele Cummins - PREC:I've got a couple great purchase land right now. One off Bell, here in Michigan, and one off Morris Valley Road right on the Harrison river. There we go. Call me today, all foreign buyers, there we go. And then individuals with work permits residing in Canada. That's another exemption
Curtis Pope:doesn't sound like there's a lot of people that can't buy property. Oh, and there's more but wait.
Michele Cummins - PREC:Indigenous people, peoples and international students on the path to permanent residency. There you have it, there are some exemptions. So foreign buyers can still purchase in Canada.
Curtis Pope:So the whole foreign buyer freezes. A frost it's not a freeze.
Michele Cummins - PREC:Yes. Oh, I'm coining that that's great. Like that. Okay. And then I wanted to talk about because, you know, this is a real estate news show, to some degree. And we've got an article just came out on Friday the 13th. And it's Canada's bank regulator wants to tighten rules to address real estate risks. Now, that's no surprise. But what is is this news about what they're going to do to tighten it. So it's was released, by better dwelling, this is a blog by better dwelling. And you know that the BOC Bank of Canada is actually going to be looking again, they are meeting on the 25th of this month. So it's coming up and they're talking the talk of the town is that they're going to probably go up about a quarter percent. So last year, they were talking about the next time they may go up another point five like basis points, but now they're talking about maybe a quarter but also they may not at all, but most likely a quarter we'll see. But so Canadian homebuyers might face stronger regulations around mortgage borrowing soon. So the Office of the Superintendent of Financial Institutions here on we're going to say Oh, s f i, Canada's bank regulator is soliciting feedback on a series of new rules to reduce leverage and mitigate risk. Now that risk tools like the stress test have proved why they're important. They're seeking to address any gaps that may have popped up. Here's what they're looking at. Canadian mortgage borrowers might see a loan to income ratio limit, so households may soon face this loan to income and debt to income restrictions that restrict total leverage. The loan to income ratio is the measure of household debt as a share of incomes. For example, a 200% loan to income ratio means a borrower has an outstanding loan that's Two times their income. When a mortgage has a loan to income ratio of 450%. That's 4.5 times income, the borrower is considered over leveraged or highly indebted. Breaching this threshold means a borrower is vulnerable to shock. Currently, there are no restrictions on the amount of loans that can be made at this level. An analyst by OSFI shows nearly one in three mortgage originations in the third quarter of 2022 or two to over leveraged borrowers. It's down from 40%. But since the start of the pandemic, highly leveraged borrowers have become a bigger part of the market. Oh SFI is considering changing this by adapting a high loan to income threshold of 4.5%. For mortgages. This wouldn't eliminate these borrowers since lenders see less risk for certain high income solid credit buyers, it could instead limit the share of these mortgages to 25% of lender originations. It's higher than the pre pandemic average of 23.8% of new mortgage loans, but still means 8.7% of recent loans would not have been as large as they were in the last reported quarter. The tentative impact would be reduction in leverage improving the ability to absorb shock, it would also get a lower leverage reducing the maximum the market can absorb. This is probably a good thing since highly indebted, speculators have become a significant part of the market outbidding and users. So New Zealand recently implemented a similar measure that's had a significant impact, though not nearly as big as higher interest rates, so reducing over leveraged mortgage borrowers with debt service coverage rules, so the OSI is also considering debt service coverage restrictions, which would limit obligations to a share of income. federally regulated lenders also deal with these to some extent, at least when it comes to insured mortgages. Insured mortgages are tested to ensure that their housing payments don't exceed 39% of their income with a gross debt service ratio, housing payments and all other debts such as auto and student loans are restricted to 44% of income using the debt service ratio. Beyond those requirements, B 20 does not articulate limits on this, GDS and TDs for uninsured mortgages and generally permits to establish debt service metrics under under their facilitating an accurate assessment of a borrower's capacity to service the loan. So the stress test and service loan debt ratio have all been really good Canadians mortgage rules have been one of the some of the best in the world. But more bluntly, federal lenders aren't officially restricted for uninsured mortgages. So they're expected to have risk mitigation planning, which means not make dumb loans. However, there's no standard across federal lenders, no don't No Dumb loans, or anything written in stone. So we're gonna have to watch this because they're wanting to do this. And with the interest rates going up is no surprise, they always implement rules and restrictions more so when after we have a really high hike in the market. But one other thing here is that the Canadians might see a revamped stress test, and it might be applied to consumer loans like auto as well. So you want to keep that in mind, a variable borrowers not seeing on interest rates that exceed the stress tests. I mean, that's who you got to come on, I have to watch out for that. And keep an eye on that if you have one of those types of loans. So if you want more information, because there is more information on what they're implementing, or wanting to implement, I should say, um, you can just check out that blog. And I'll put a link to it on my new revamped website, because there's more information on that. And if you are an investor, if you buy multiple properties, I mean, all this if you're a buyer, and everyone should be a buyer, because it's, you know, what, the 90 isn't 96 94% of all millionaires got there through real estate, there is a stat so yes, if you're not a buyer, yet, you want to be a buyer. And if you're a buyer, you want to be a multiple buyer. So it
Curtis Pope:was fascinating to read things like that. And, you know, like I was reading a thing one time about all the guys on Shark Tank and all the ladies on Shark Tank, and how they don't buy coffee. Because why would you go to a store and pay $4 or $5 for something you can make in the office for pennies. It's so interesting, just but that mentality, you know, and that's how you get the money, right? Like they even though it's to them, it's nothing, but it's those habits.
Michele Cummins - PREC:Yeah, they're they know how to spend a lot of money when it comes to because they know they make a lot of money on that. But when it comes down to spending the dimes and the dollars in the sense, they're really careful because they're the ones that that's what adds up. I noticed that in a lot of of well to do people is that they Yeah They're people might go oh wow, you're you're so like, you won't even buy a coffee like or you won't buy that extra thing you want it but why aren't you buying it but that's how they that partly why they're where they're at
Curtis Pope:because that discipline in that. Yeah, yeah.
Michele Cummins - PREC:And on that note, I've got some new listings I think people should buy so they can become millionaires through real estate. I've got a brand new actually two commercial listings just hit the auction block. So they're going to be up for auction right now you can go online and you can have a look at them. You can have a look all the information and you could be part of the bid. One is the Woodside in on Mount Woodside. And it is underutilized and it is wonderful land and it's got water rights to the well that everyone around all the development around hundreds of homes are going in around this spot. This is commercial property, future highway commercial OCP zoning. And currently it's got four motel rooms. It's got a couple bedroom, separate that you can that they rent out through like Airbnb sites and things like that. It's got a vacant storefront that could be a diner, you can get a liquor license for it all sorts of things. It'd be a little grocery store. That one just hit the auction yesterday. And then I've got this wonderful renovated commercial building with the most popular one of a kind restaurant and Agassi is also hitting the auction. So have a look at my website. Again, I do have a tab link to my auctions and the auction link is there. And then I've got this great estate property. Oh, so I'm so excited. So I walk in I have this evaluation of this property. And it is full of amazing like her mom kept so like, like she has collections. She was so organized, but the whole house is full. It reminds me my sister Gina whole house is full of stuff. But so organized and like valuable in older stuff and unique stuff. It's amazing. And I'm walking through going oh my gosh. And so we're gonna combine an open house and an estate sale together next Saturday at this property acreage, I should say over two acres. In Michigan. It's gated the house is original owner, they built it when she was 17. They got married and they moved into this house. And it's been in the family ever since it was one owner property one owner home. And you can go on Saturday the 21st I and the sellers will be there 11 to two and it's going to be an estate sale as well as a property sale. So come shop for a house a property and some items might pick up some nice items. It's almost 2000 square feet. It's a rancher and it's fully forest and pretty much natural and beautiful private property. So that one's at 34392 Ferndale Avenue in Michigan and then quickly I've got one more I just wanted to mention about a couple of reductions. This gladwyne Awesome ground floor, newer condo apartment that has a really great patio and you can walk in right from the patio into your home. It is now 349,000 And that just hit the reduction yesterday. It's right next to the trading posts you can have go walk across the way and have a beer and one more reduction was
Curtis Pope:there to get breakfast every day. Yes, that's right. It's got a cute little strips of sushi place. There. You got your good. Yeah, yeah. And then the other
Michele Cummins - PREC:reduction I have, because he wants a quick sell is a really nice mobile home. Well, I shouldn't say that the house. The mobile home needs a lot of work. I should say nice property. It's a 6000 square foot lot great parking, huge height carport for RV or boat or whatnot. And that's out in droves. And that's now only 79 998 So there you go. There's some good information.
Curtis Pope:Pretty cool. Oh, quotes. I was gonna say I must have a quote.
Michele Cummins - PREC:I always last week. I was like that too. Oh, yes. The quote. Okay, and I have a good one this week. I have I have good one. Thank you. So this one is something to go with the new 2023 new year because all of January I call it a new year. And it's from Dolly Parton. Love her to make your goals dreams and resolutions come true. Right. Here we go. This is her quote. It starts now. Be ready. Here it is. If you don't take the reins, it's going to stay the same. Nothing's gonna change if you don't change it. If you don't change it. That's Dolly Parton. Take the reins.
Curtis Pope:cost a lot of money look that cheap. That's my favorite Dolly Parton quote. Dolly is one of the millions She's full of truth. She is and has no filter, which is part of her charm. Exactly. All right. If people want more information about these listings, you talked about things like that. Where can they go?
Michele Cummins - PREC:The new revamped website Michelle cummins.ca. And join us
Curtis Pope:again next week when we will talk real estate in order to unlock your real estate potential on the show real estate is maximized. Thanks for listening
If you missed last week's episode on stats, Assessments, and a Tribute to a Great Man, please go take a listen! It's well worth it!