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SEAS: 5 EP: 226 - TALKING Affordable Housing in the Fraser Valley!

June 12, 2023 | Posted by: Michele Cummins

SEAS: 5 EP: 226 - TALKING Affordable Housing in the Fraser Valley!



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Michele Cummins 
Cell: 778-885-4659

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Curtis Pope 0:23 Saturday morning, you know, that means it's time for the commons real estate show with Michelle Cummings and myself Curtis Pope. Good morning, Michelle. Michele Cummins - PREC 0:30 Good morning, Curtis. I think we need a gong. Gong. Yeah, every time you say that, right after hours, I can hit the gong. Curtis Pope 0:39 I was gonna be like the gong show when we were kids. Every time I do something stupid, you're gonna hit the gong and kick me Michele Cummins - PREC 0:43 out. Actually, that's what we should do. Curtis Pope 0:46 I didn't think you'd be old enough to remember the gong show. Michele Cummins - PREC 0:48 Oh, totally. You're right. I'm not old enough to remember it. Curtis Pope 0:51 Yeah. You remember hearing about it? Yeah. older family members. Michele Cummins - PREC 0:55 You know, my mom and dad played? What was the game when you dress up? You all dress up? And then it's like the best and then they have you up? It's like a wheel of fortune or prices right kind of thing. Why am I let's make a deal. Let's make a deal. My parents were on there. And my dad was the Jolly Green Giant. Actually, they were both Jolly Green giant's but I mean, my dad was the Jolly Green anyways. It was so cute. I remember the photos. They Curtis Pope 1:20 I don't know if it's still on. They brought that one back a few years ago. Wayne Brady Michele Cummins - PREC 1:24 was right. I do remember that. I never got to watch it though. Yeah, no, I Curtis Pope 1:28 watched a few times it had the same vibe to it. I would love to Michele Cummins - PREC 1:30 go back and see the the past ones. What's that channel that retro channels? Curtis Pope 1:35 And there's a there's a game show TV channel where they play some new way? Yeah, there's a channel for everything. Now, Michele Cummins - PREC 1:39 I should start watching TV again. Maybe? Curtis Pope 1:42 You know there's more to life than just Yellowstone. I know. I don't watch it much else either. So I hear you correctly. Michele Cummins - PREC 1:48 So, okay, yesterday was the home Expo show in Vancouver from Aria and it was it was very eye widening. And there was a lot of knowledge and wisdom. You know, that famous Michael Jackson's realtor was there as a speaker and it's always great. They do it annually. And it's the Asian Real Estate Association of America who puts it on and it was fantastic. Anyways had a good time. And MahaNakhon back here with you Curtis this morning having my London Fog with oat milk. Curtis Pope 2:22 So What a letdown Yesterday you had Michael Jackson realtor today you have me Michele Cummins - PREC 2:27 not so much let down on Curtis Pope 2:31 the stories you must be able to tell I guess he probably maybe even can't tell a lot of the stories when you're but still. I mean, we know that Michael Jackson liked to spend money so Michele Cummins - PREC 2:40 Oh, yeah. Oh, it would be fun to tour. I love touring places. When I was down in Palm Springs. I toured Elvis Presley's house down there. And I remember them because my dad worked with Elvis Presley. And so I told him, I said, my dad, he should like go on tour come and like do a whole thing. Like stories and everything. My dad is so good. Like, if you get them to tell stories. He was so good at it. So but I never did get him to do that. And they said yes. And I was trying to arrange it. You know those things? Don't regret. Just do just make action. Everyone. Take action? Absolutely. Curtis Pope 3:14 No. I mean, the Neverland Ranch were no I mean, I know it's been a lot of times she lives in Orange County. But whereabouts was that around LA? Where? Was he right in Hollywood? Or was he No, he's a little outside Hollywood wasn't? Michele Cummins - PREC 3:25 Yes. Oh, I forget the name of the area. But yeah. Well, Curtis Pope 3:30 somewhere around there. Yes. Michele Cummins - PREC 3:32 Yes. So housing affordability. I wanted to talk to you about Curtis Pope 3:35 housing affordability. I feel like that train is, you know, has shipped off? Michele Cummins - PREC 3:41 Well, you know, it's it's like a topic that never ends. Curtis Pope 3:45 Well, we were you remember, we were gonna lose 40% of the values of our homes in a year. And that didn't happen. Michele Cummins - PREC 3:49 It's true. It's true. And you know, it's been a few months that we've had a really good market summers coming, though, actually, it's June our first show of June of 2023. And, you know, it kind of calms down a little bit in the summertime. So we'll see what happens. But, you know, a lot of people don't know, the ability they have and the grants that you can apply for and the different, like home first time homebuyers. They're first time homebuyers. They don't know anything about buying. So I want to give some wisdom to first time homebuyers to help them with the affordability to get into our market in the Lower Mainland and specifically the Fraser Valley. So housing affordability, it's been a massive problem for a long time in our country and in our area. But help is coming in the form of new savings account. So the federal government has recently announced a plan to assist first time homebuyers afford to purchase a home and it's called the first home savings account. For aspiring homeowners. The savings plan might be the best path to eventually owning a home and as a realtor or investor this new savings land can be a valuable marketing and a valuable topic to your clients. So I know we have a lot of realtors that listen to our show. And as soon as Magnolia is open, we're going to be able to have and bring on other realtors to bring their point of views and tips and all of that for everyone as well. But I do get a lot of response from Realtors while listening to this show. And so I want to make sure that all of you know that this is something you should put on your website, you should put in your buyers package and buyers out there, there's a lot and second segment I'm going to go through all the different types of different plans that you can use to make affordability yours and to help with your down payment and your purchase. So deep dive in the first home savings account. I have the report from real estate magazine, which is a fantastic magazine. If you don't subscribe to it, and Canadian Real Estate Wealth another fantastic I know I've mentioned them before on the show. So let's get right into it. So in the face of the housing affordability crisis in Canada, the federal government launched the first home savings account, or FHS. A you might see it out there as it was delivered on March 28 of 2023. In the federal budget a made in Canada plan. With it comes the promise of allowing prospective first time homebuyers to get tangible benefits from this new savings account featuring the best attributes of both Registered Retirement Savings Plan The RRSPs and tax free savings accounts, which is the TF essays as of the first of April 2023. Everyone had the opportunity to open a first home savings account through their local financial institutions. So why should you consider opening an F H S A? Well, three points to take advantage of the tax benefits from F HSA contributions can reduce your taxable income. And we all need that, as well as capital gains and capital losses earned in an F HSA are not included in your annual income or deductible for tax purposes. The means income and capital gains can continue to grow and compound in the FH essay on a tax free basis. And it's the investment the idea of compound is amazing. Okay to to grow your savings but tax free. Any investment income in your F HSA is non taxable while it remains in your account. Three, save for your first home tax free pay no taxes on your withdraws when you use your fhsaa towards the purchase of a qualifying home. So the contribution the amounts that you can put in the rules around the first home savings account with her permit contributions of up to 8000 per year, this amount is capped off with a lifetime maximum of $40,000. This means that if an individual contributed the maximum 8000 per year each year within five years, they would meet that 40,000 lifetime maximum. So like the RRSPs but not TFSA is F H S A contributions are tax deductible. Like Tax Free Savings accounts. First Home savings account withdrawals are not taxable when used for an eligible purchase. In contrast, RSP home buyers plan HBP withdraws up to 35,000 are tax deferred, but will taxable if not repaid over the ensuing 15 years. FHA say withdraws do not have to be repaid. There's also more good news for first home buyers that have saved their loonies prospective homeowners will be able to access both the homebuyers plan which is the HBP and the new tax free first home savings account when purchasing a home. So there's a lot of good information on this. And I would very much encourage you to check out my blog because it's on my blog, and get more information that way. There's a lot of acronyms going around and there's a lot of different savings plans. And so definitely talk to your mortgage provider, your trusted mortgage provider to help you knowing exactly all the things you can do and start working with the mortgage provider years before you're ready to make a purchase. You know what, Curtis? I was at a baby shower. Okay, and it was my niece and she's a true listener of the show. She's won some things from the show and everything anyways, Ciara Collins, I love you and her she she's having a baby her first baby and she this baby shower was just beautiful. I like the organization of this and they live in on beautiful acreage and mission. It's so good or dress. And it has says advice for advice for the, you know, the new parents to be the new mom to be. And so I had a couple advices. And you know what? I don't have any kids. So, you know, here's shortly Do you have Richard and BB and BB on Mother's Day? Which Curtis Pope 10:16 one's more work? Michele Cummins - PREC 10:18 Maybe I exactly, oh my gosh, I'm not gonna do that. But you know what I gave her some good advice from, you know, not having children myself, but it was about buying a condo, I would suggest a new condo or newer within a couple years. And that way you can rent it out. And on your child's 18th birthday, or when they get married, or when they go off to college, you can sell it and give them the equity, you can get back your deposit. Because you're allowed to buy two properties in Canada. For 5% down, of course, brand new, they usually want 20% Down 15% Down or 10. That's why if you did buy a couple years old, then you don't you could just put 5% down. But the point is look at the equity growth that you would in 18 years what a gift to you set them up for life, and they can keep it and have it themselves that we didn't have to worry about affordability later or selling and go to college or pay for that honeymoon. Curtis Pope 11:18 I really hope my kids aren't listening now. It's way too early. They're not listening. We're good. Michele Cummins - PREC 11:22 Oh, they were already born. Too late. Curtis Pope 11:25 Hey, Dad, where's our condo? Nephi to you. Michele Cummins - PREC 11:28 Exactly. Curtis Pope 11:29 Sure it was there to give me that advice. 20 years ago, sorry. Michele Cummins - PREC 11:32 Yeah. So yeah, that was my advice for everyone as well. If you're having a child, that's almost almost one of the one of the best gifts you can give. Curtis Pope 11:41 Seems like a plan. I guess we should probably take a break. Looking at the clock there go. Let's take a break. All right. People want more information about your listings or TFS ABCDEF cheese, whatever they're called. I can't keep track of all the abbreviations. Where do they have to go? Michele Cummins - PREC 11:58 Michelle Curtis Pope 12:00 We're back with more right after this. And we're back to segment two of the Cummins real estate show with Michelle Cummins and myself Curtis Pope. Now we talked a little bit about how things can be a little more affordable in the industry here but I know you have a lot more detail to get into. Michele Cummins - PREC 13:02 Yes, because mentioning like an affordable or like qualifying home for it. Well, what is a qualifying home I'm sure a lot of people wonder. So although a bit of suspicion is warranted, here and anyone considering a fhsaa should do their own due diligence. What properties meet the criteria of qualifying home, it's actually quite broad. So the definition includes single family homes, semi detached homes, townhouses, mobile homes, condominium units, apartments and duplexes, triplexes fourplexes, or apartment buildings, as well as share in a cooperative housing corporation that entitles you to own and gives you an equity interest in a housing unit, which we don't have a lot around here. But there is some more Richmond area and delta I believe there's some according to the following single family types does not meet the criteria set out for first home savings account as share that only provides you with the right to tenancy in the housing unit, obviously because you don't own any part of it. So or the qualifying home is if it's very inclusive. The only type of home that appears to be excluded is one that Psalm one only has a share of ownership in and thus has was amounts to tenant rights so it's pretty open. Pretty much everything just Curtis Pope 14:29 a tiny home. Michele Cummins - PREC 14:30 Yeah, if you if you own it, and not just as a tenant, other than Yes, okay. Answer Curtis is yes, Curtis Pope 14:37 there we go. I mean, oh, tiny homes. You know, they were a really big thing there for a while. It seems to have cooled a little bit. Michele Cummins - PREC 14:45 There was going to be that whole tiny home community in Abbotsford. It hasn't happened. Yeah. Curtis Pope 14:49 And I've noticed that you know, some of the tiny homes now because my wife watches a lot of HGTV and I watched with her and stuff and I've noticed there's been like the tiny homes aren't quite so tiny. anymore a little a little they're almost more like a like a cabin for I would say almost there's a little more space a little more room, which I'm like I can almost live in that well you Michele Cummins - PREC 15:11 know what a tiny home kind of is a kind of like a mobile home. I mean, those are kind of tinier homes like they can be bigger but I guess from tiny home to mobile home, the different levels. Paul Smith is a fellow colleague realtor and he is he actually builds and designs mobile homes. It's really neat. If you're interested in that his he's local, and and they're really cool, then you can contact me or Google Paul Smith. Curtis Pope 15:37 Well, they've got a long way to go since the back of the days of the you know, 50 6070s double wides and stuff like that. They're like they're really well laid out. well planned out and quite nice on the inside. Yeah, Michele Cummins - PREC 15:46 and sometimes it's just so nice to be able to add all the different zoning changes if you can have a secondary or mobile home or just find a lot and put a mobile home on or a Yeah, it's it's it's pretty easy living actually. And they're brand new. i What was I gonna say I got you Curtis Pope 16:05 sidetrack. Because I was worried you could buy a tiny home with this new, you know, program. And you said, Yes, you can. Michele Cummins - PREC 16:11 I was gonna mention that Abbotsford is one of the only few cities where the government is actually helping and incentivizing and pushing fast. Building for builders, for more units for more homes to help with afford it, that's one of the government's way of helping, affordability is trying to get more homes built, which is good. So Abbotsford is one of the one of the cities so that's exciting. We have a lot, Curtis Pope 16:35 you know, there's not a lot of space here. And so we have to, you know, fill up what we can and we have to go higher, we can't go further out with all the the agricultural land and the Silverdale expansion is going to take a while and mission still. And that's, you know, it's Yeah, I mean, we got to do we can win right now, which means we got to get more affordable housing, which often means we have to go up. Michele Cummins - PREC 16:56 I have a client who's working on a lot. He works on a lot of the big projects, Vesta projects, the red Raven project. So this waterfront in Michigan, okay, the plans are really neat. It's commercial on the main and residential above. Oh, I'm so excited about that. Very excited. Very good. Finally, maybe happening. So Curtis Pope 17:18 the waterfront, and then there's the tech district, but I think that's still a few years off. Michele Cummins - PREC 17:21 Oh my gosh, yeah. 50 100 goes my class. So the first home savings account has some surprising benefits that I wanted to mention, even if you don't end up with that home. So very interesting stuff. If you're intently saving for your first home, you're probably aware that the first home savings account which is the F HSA is a great, tax advantaged way to build up your downpayment, but the F HSA has broader uses. In the right circumstances, it can also be a good way for renters to save even if they're not sure about buying a home that makes the F HSA a surprisingly versatile addition to the somewhat crowded field of tax advantaged savings account. Still, you need to delve into the details to understand when the fhsaa works well compared to the main established tax advantaged savings programs, the Registered Retirement Savings Plan and a Tax Free Savings Account. Now, there are so many incentives right now from the government. So let's unlock those. Let's go through them. And I will have this on my blog too, for everyone to have a look at so federal programs. Everyone this is so important so many people don't use these programs enough. So first time homebuyers programs homebuyers amount tax credit through their tax return. first time homebuyers with a qualifying home can claim up to $10,000 for its purchase. Qualifying homes include most residential types, including single family, semi detached condos, townhouses as well. Buyers must not have lived in another home they owned in the acquisition year or the four years prior. So that's called the homebuyers amount tax credit. Did you like who knew about that? Right? Maybe some people but surprisingly, a lot of people don't. first time homebuyers incentive. So that's the FT HBI. Administered by the Canada Mortgage and Housing Corporation, which is CMHC. The program offers financial assistance through a Shared Equity mortgage with the Government of Canada, the five to 10% funding helps first time homebuyers reduce their mortgage payments without increasing their downpayment. Then within 25 years or when the home is sold, the same percentage value of the home gets paid back up to 8% per year. So that's a great one and then the tax free first home savings account that we just chatted about so that one offers first time homebuyers a chance to save $40,000 tax free with a yearly fee. contribution limit of $8,000 banks and financial institutions should be set up for the account this year right now. Okay, so tax free home savings account. That's what that one was that which we talked about on the first segment. Now the next one is the homebuyers plan the HBP. So through the Canada Revenue Agency CRA, the HBP program, eligible homebuyers can put up to $35,000 from their RSP toward a downpayment on their first home, this tax free loan can be free new or existing property, the buyer plans on living in full time within one year after buying it. And then there's energy efficiency programs. Not enough people are energy efficient. Like you there's a lot of programs out there for that. Like the greener homes loan, which is the G H L. So the GHL provides interest free 10 year financing for major recommended energy efficient home retrofits, loan amounts range between 5040 $1,000 So this could be good for people who want to invest in into flipping homes or maybe you're buying a home and you're gonna put sweat equity to build that equity up your for yourself and sell it later on. Another one energy efficient programs candidate greener homes grant with energy efficient renovation evaluation reimbursements and grants from $125 up to $5,000. This one helps homeowners save money while contributing to a greener future. And then there's the energy savings rebate program. So this one is a federal government partnership with Ontario retailers to make energy efficient products more accessible. This happens through $200 million over two years and point of sale rebates on eligible products. And then there's the oil the heat pump affordability program, it just keeps going helps those who use oil heating at home with switch to new energy efficient heat pumps with up to $10,000 to help offset the cost. This type of heating could save 1000s of dollars each year on heating bills and lower GHG emissions. And then there's the renovation programs the GST, new housing rebate those who buy or build a new home or renovate their current home with a fair market value of under $450,000 and use it for their primary residence may be eligible for the GST new housing rebate to get back some of those taxes. And there are some condos out there like that in rent and Raven to name one. And later on. I was going to mention it but I have two pocket listings for rent and Raven right now. Brand new one is going to be finished this fall. The other one January February of 2024. So you can contact me about those ones are both one bedroom plus den, ones facing the river. Big huge deck on one of them really beautiful units. And anyways, next one home accessibility tax credit. So this one's called H a TC offers seniors and others living with a disabled disability a rebate of up to $10,000 on qualifying mobility modifications or renovations for their homes. It's so helpful and multigenerational home renovation tax credit, the M H RTC, which it's called is a refundable tax credit of up to $7,500 per family. It lets eligible households use the funds to build a secondary unit that accommodate seniors or adults with disabilities. Oh my goodness, it's so so there's some good ones. There's provincial programs. There's there's so much I'm I'm going to just put this there's way there's a few more here. I'm going to put it all on my website under my blog, if you want to have a look at that. And with that, and and I already mentioned a couple of my pocket listings. I wanted to maybe tell you about one other pocket listing I have sure it's a three year new large townhouse in Michigan on Grand it's next to Centennial Park, there's tennis courts, there's a dog park, there's walking trails, everything you can walk the pool and leisure center is also adjacent to that you can enjoy some hockey games there, ice skate. So much stuff to do. So anyways, call me for more information on that one as it's a pocket listing. It's an inside unit bright, beautiful, it's large, side by side garage, and it's got front parking in front of the side by side garage, which is very rare. And to end our show with a quote from Benjamin Franklin himself. He says the person who stops advertising to save money is the same person who stops the clock to save time. Curtis Pope 24:49 I like that one. It's very true. That's why advertise and market or something to that one for sure is true. All right. If people want more information about your listings, they want to look your blog, where can they ago Michelle Join us 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

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