Selena February 2020 Newsletter
Gong Hei Fat Choy! January 25th was our Chinese New Year! We say “Gong Hei Fat Choy” instead of “Happy Lunar New Year in Hong Kong”. It means wishing you have more wealth this year. This year is the year of the Rat, which is the first sign in the Chinese Zodiac. It represents a new beginning! So wishing you and your family an abundance of happiness and wealth for 2020! Gong Hei Fat Choy!
Many investors or people who want to develop think subdivision is the way to go, and they can be right. In 2015 the City of Edmonton reduced the minimum width for a lot to 7.6M or 25ft, which is why 50 foot wide lots set a premium. Then midway through 2017 the City decreased it to 7.5M so it did open up to more lots being available to subdivide as this is something the City actively encourage. These lots are often referred to as “In-Fill” lots and you will find them in mature established neighbourhoods. The homes that are built on in-fill lots are affectionately referred to as skinny homes. One reason why builders and developers like 50 ft wide lots so much apart from the fact the City actively encourage increasing density by building skinny homes, is that there is no need to change zoning or any of those other long drawn out processes. RF1 already allows for 7.5M wide lots and with the new guidelines around secondary suites, most skinny homes can even have a legal suite too so you can see why they are so attractive. There is lots of useful information on the City website https://www.cityofedmontoninfill.ca if you would like to know more. One secret to successfully developing these types of projects is to have tenant occupied properties so they cashflow while you are getting drawings and permits in place. We do have two properties which are both 50ft wide and currently tenant occupied. They are in great areas, one in Spruce Avenue close by NAIT and the other is in Queen Mary Park. They are not listed on MLS so if you would like more info, feel free to contact us.
The government has to fund their budget and one of the ways they are doing it this year is by implementing increases to Land Title Fees. There was talk of this some time ago but was squashed before coming into effect. These fee increases are quite modest and have little impact for the average person buying a home. I certainly prefer this compared to a land transfer tax each time someone buys or sells a home such as they do in other provinces. The below image is a summary of the changes.
Thanks for all the response to our article last month regarding the changes to the condominium bylaw. It generated a lot of interest. To summarize, if you own a condo, check the condominiums insurance policy to see what their deductibles are because in the even of an insurance claim the corporation can have the owner of the unit at fault to pay their deductible up to a maximum of $50,000. Other than earthquake, (which you are not responsible for) most deductibles will be $25,000. Next, check your own insurance policy to see how much you are covered for deductibles. Many policies already allow up to $25,000 so you may not have to make any changes to your own policy. The caveat is, you will need to check the corporations policy each year to see if there are any increases to their deductibles, or you can simply increase your coverage now and rest assured.
Canada has been ranked the second best country to live in for 2020 which is up on its previous rank of 3rd best in 2019 according to a survey by US News and World Report where Switzerland made first place again. Each country is ranked based on global perceptions and indicators of prosperity among many categories such as Citizenship, Heritage, Cultural Influence, Entrepreneurship, Adventure and Quality of Life just to name a few. Well done Canada.
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
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