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Valentine’s Day and Family Day in Surrey, BC

February is a lovely month – perhaps it’s better to say a month in which we celebrate love – with Valentine’s Day on February 14. By happy timing it follows close behind another day to celebrate a different kind of love: Family Day, a B.C. holiday which this year falls on February 12. Each lovely day has different ways of expressing its own celebration.

Valentine’s Day is Big Business

The celebration of romantic love is big business. Statistics for Valentine’s Day spending in the USA in 2017 show the total economic value to that economy was $18.2-billion. That wasn’t even the all-time record high spending, which occurred in 2016 with $19.7-billion, but the trend appears to be upward. In 2015, it was $18.9-billion and in 2014 it was 17.4-billon. In case you are wondering how that breaks down into different kinds of Valentines expenditures, here are some statistics on the most popular types of gifts. Candy or chocolates account for about 50 per cent of gift choices and $1.7-billion spent by consumers last year. Greeting cards came in around 46 per cent but of course with a lower dollar amount totalling 1.0-billion. Going out for an evening of entertainment was the choice of 37 per cent for romantic celebrations with $3.8-billion spent. Close behind in popularity was the category of flowers with 37 per cent accounting for $2.0-billion; and finally, 19 per cent of romantics spent money of jewelry but with a whopping $4.3-bilion in expenditures.

For Canada, I found Statistics Canada figures that tracked similar categories of spending for all of 2015. Let’s assume these numbers are close to this year’s expenditures, and, keeping in mind that Canada’s population is much smaller than the USA, we’ve still got some serious romantic spending. For jewelry, it was $3.60-billion taking top spot. Next were perfumes and cosmetics at $2.89-billion. Canadian households spent an average of $225 on chocolates. Another source of statistics for Valentines spending in 2016 showed Canadian men spent more on gifts than women, with men averaging over $200.00 and women just over $100.00. One very interesting statistic I found was that just over 10 per cent of Canadians celebrate Valentine’s Day with their families. Which brings me to our other celebration this month, Family Day.

BC’s Family Day: An Economical Celebration

Unlike Valentines Day which has the same date each year, Family Day is set for the second Monday in February so the date changes. And of course, the history of Valentine’s Day goes back thousands of years, some scholars say to the second century AD. BC’s Family Day was established by an Act of the provincial Legislature and came into existence as an annual February holiday in 2013. I think it’s a wonderful holiday because my family is the most important part of my life and it gives us a day, along with other families, to enjoy doing something together. My wife and I can still exchange Valentine’s gifts and this is nice way keep the romance in our relationship, but when we are all together on Family Day, it let’s me know this is the happiest way to live.

One of the really nice things about Family Day is that you don’t have spend a lot of money on a big-ticket item to show your love. In Surrey, where we live, there are some great Family Day events this year that are absolutely free! Check out the Stewart Farm in South Surrey at 13723 Crescent Road where they will have free crafts, games and tours of the farm house. Or visit any of these Recreation Centres for free family friendly games late morning until early or mid-afternoon: Chuck Bailey Recreation Centre; Cloverdale Recreation Centre, Fleetwood Community Centre, Fraser Heights Recreation Centre, Guildford Recreation Centre and South Surrey Recreation Centre. There’s even free swimming at the South Surrey Indoor Pool from 1:30 to 3:00 pm on Family Day.

Whatever you happen to enjoy, living where we are to able to experience the joy of love in both our romantic relationships and with our families is worth a great fortune. I wish you much happiness for this time of year.

Thanks for reading!

Sibo Zhang, REALTOR®

Rainy Days By The Numbers

Rainy days by the numbers In case you haven’t noticed, it’s been raining a lot lately! That’s not a surprise in Vancouver. We’re used to long stretches of rain (and sometimes some snow) from around November to April each year. About this time every year, those warm sunny beach holidays in another country start looking very enticing.

Yet, according to measurements in Vancouver last year, it was March that had the most precipitation with 199.4 millimetres. It wasn’t until November that we got close to that again with 194.8 millimetres. It was newsworthy when November 2017 was recognized for its 27 days of rain out of 30 days, which tied it for the most days of rain in any month since 1953. The summer months were quite low in contrast. June had 46.4 millimetres and then the rain dropped dramatically in July and August to 1.8 millimetres and 5.0 millimetres respectively. Back to the present, however, this January has been very rainy, As of January 19, this month’s precipitation, measured at the sea level in Vancouver’s Coal Harbour, was already at 115.4 millimetres, significantly higher than all of January 2017 at 98.8 millimetres.

You may be someone who thinks about the number of rainy days rather than the amount of rain that actually fell. In that case, here’s a tabulation of the number of days in 2017 with rain fall over four different thresholds.

It’s noteworthy, though not surprising, that the greatest number of rainy days are those above 0.2 millimetres. This is evidence that our sense of that long stretch of rainy days from November to April is correct, but we should also note that the amount of actual rain each day is typically quite low. And the number of really heavy rain days is also quite low.

I think many people will find this to be counter-intuitive – especially this year, when it seems like almost every day is one of heavy rainfall. Perhaps this is a good reason to remind ourselves that our perceptions of rain can be emotionally influenced. So, it worthwhile to check the actual statistics occasionally. It’s a good reality check.

Over the past 25 years, annual precipitation in Vancouver has almost always exceeded 1,000 millimetres. Data collected by Environment and Climate Change Canada show only three years below that amount: 1993 with 837.0 millimetres; 2002 with 857.6 millimetres; and 2013 with 944.0 millimetres. It’s interesting that the lower volumes are increasing as we go forward, but is it a trend? Something to watch I think. For the years above 1,000 millimetres, the precipitation volume in 2016 was the highest at 1,356.8 millimetres. Close behind that was 2007 with 1,322.4 millimetres; 2014 had 1,276.3 millimetres and 2017 had 1,239.3 millimetres. There are a lot of ways to measure rain.

These statistics from Environment and Climate Change Canada are a great way to slice and dice the weather. As I have often mentioned, I like to analyze things statistically, but sometimes it’s also good just to use your basic intuition. For example, I was not able to find any statistics that correlated the amount of rain with a wind factor. With this correlation I think we could also develop a rain wetness index that is similar to what is called a chill factor. Meteorologists have devised the chill factor to indicate how cold it “feels” when you combine the wind and the temperature. So why not a rain wetness factor that would indicate how wet you get when the rain is blowing on you? For example, a heavy downpour in a 40-kilometre per hour wind might be the same rain wetness factor as light rain in an 80-kilometre per hour wind storm. Imagine the calculations you could do! Maybe that will help keep your mind off the rain.

I send you warm and cheery wishes during these rainy and grey winter days.

Thanks for reading!

Sibo Zhang, REALTOR®

Your January Real Estate Recap for Metro Vancouver and the Fraser Valley

A New Year and New Considerations

As we launch into a new year of residential sales across B.C.s Lower Mainland, there are developing issues that prospective home buyers and sellers will want to track, such as how increased mortgage rates and how new government regulations on qualifying for a mortgage may affect the market. I want to help my readers keep abreast of these developments and to make sense of the real estate market dynamics, so I invite you to check this newsletter each month for the latest updates.

In this my first newsletter of 2018, I will start with an overview of the how the residential market place looks compared with last year. This will give you a baseline for watching trends over the coming year, and hopefully will help your plans for either a selling or buying transaction, or simply being an interested observer of one of Canada’s most active real estate market places. I will start first with Metro Vancouver, with the most recent figures from the Real Estate Board of Greater Vancouver

METRO VANCOUVER

Overall, residential prices in the Greater Vancouver area (Metro Vancouver) rose substantially during 2017. The composite Benchmark price for all residential properties in Metro Vancouver at the end of last year was $1,050.300. That was almost 16 per cent higher than one year earlier. Breaking down the year-over-year increase to different property types, detached properties rose 7.9 per cent; townhouses rose 18.5 per cent; and condominiums rose 25.9 per cent. The higher relative price increases reflect greater sales activity in the latter two categories.

Detached properties

As was the case for much of last year, detached properties did not show large month-to-month price increases. In that category it still appears to be waiting game. Owners of detached homes are not rushing to list their properties at a Benchmark price of $1,605,800. If it is price that determines when to list a property for sale (remember the maxim: ‘everything has its price’), this suggests owners see more residual value in their detached properties than the current price level would fetch. There was actually a decrease of 54 per cent in detached listings from November to December 2017. So, if you want to consider the purchase of a detached home at this time, I believe it would be an excellent investment even at Benchmark price over $1.5-million. You should also keep in mind that new government regulations on mortgage qualifications (see my blog post for December 2017, Your December Real Estate Recap), as well as the prospect of higher interest rates coming later this year, will likely shrink the number of buyers for higher priced properties in the detached property category. For home seekers with a lower price in mind, I would recommend looking in townhouse or condominium market where there are some very good opportunities with Benchmark prices for properties in Metro Vancouver still under $1-million.

Townhouses and Condominiums

The Benchmark price for townhouses in Metro Vancouver at the beginning of 2018 was $803,700 and for condominiums $655,400. For townhouses, this was a slight decrease of 0.2 per cent from the previous month, while for condos it was an increase of 1.1 per cent. In last month’s newsletter I said I would watch a possible widening in the difference between townhouse and condo prices based on monthly increases and decreases. The current differential is a total of a 1.3 per cent compared to last month’s 0.7 per cent, so it is continuing to look as if a widening gap is beginning. It is too early to be certain at this time, but I’ll continue to track this metric so you can check next month to see how it is developing. Below is a breakdown of my suggested areas to look for these two property types based on Benchmark prices at the end of December 2017. This month I have selected three areas with the greatest month-over-month increase and three with the biggest declines, but each with prices still under $1-million.

For townhouses, the greatest increases in Benchmark prices were in East Vancouver at $879,200, a 2.0 per cent increase over one month; Ladner at $776,900, a 2.7 per cent increase over one month; and North Burnaby at $728,200, a 2.3 per cent increase over one month. The biggest decreases from the preceding month (excluding the outlying areas of Whistler and Squamish) were in North Vancouver at $982,800, a decrease of 0.1 per cent over one month; Port Coquitlam at $632,700, a decrease of 0.5 per cent over one month; and Maple Ridge at $527,500, a decrease of 1.0 per cent over one month.

For condominiums, the greatest increase in Benchmark prices were in Richmond at $637,200 an increase over one month of 4.0 per cent; Pitt Meadows at $422,800, an increase over month of 2.1 per cent; and Burnaby East at $681,400, an increase over one month of 1.9 per cent. Two others also had month-over-month increases of 1.9 per cent: New Westminster at $503,300 and Coquitlam at $502,900. Three areas had one month decreases: North Vancouver at $560,600, down 1.0 per cent; Tsawassen at $462,400, down 1.1 per cent; and Vancouver West at $807,100, down 0.5 per cent.

FRASER VALLEY

The Benchmark price for a detached property in the Fraser Valley at the end of last year was $976,400, a slight increase from the preceding month but still under the $1-million bracket in Metro Vancouver. However, as was the case throughout the year, townhouse and condominium sales dominated residential sales in the Valley at the end of 2017. These two property types made up more than half of all Valley sales 2017, with 5,198 townhouses and 6,183 condominiums.

The Fraser Valley continues to be the area of choice for many first-time home buyers in 2018, both for young families and individuals starting out in their careers. It offers very attractive properties in comfortable and enjoyable neighborhoods with excellent lifestyle options for both families and singles. Public transportation planning across the region makes any of the municipalities an excellent investment option for the long term. And with prices still significantly below those in Metro Vancouver, the Fraser Valley continues as one of the hottest residential markets. In the month December 2017, there were a total of 1,344 sales, the second highest December volume ever. Nonetheless, there were 1,277 new listings during the month, and the inventory for December 2017 ended with 3,818 active listings, so I encourage anyone looking for Valley home to shop seriously at this time. Below I make my monthly recommendations for the areas to search for excellent value. For each property type this first month of January, 2018, I have chosen to compare the year-over-year increase along with the last month increase or decrease. In some municipalities the Benchmark price has crept above the $1-million mark for the first time. Many clients in this market segment want to consider their investment compared to Metro Vancouver, so I have therefore selected four municipalities where the detached Benchmark price is over $1-million. For townhouses and condos, I have selected areas with the biggest increase from one year earlier.

Detached Homes

At the end of 2017, the December Benchmark price in Surrey/White Rock was $1,472,300, an increase of 4.8 per cent from one year earlier, and an increase of 0.2 per cent from the preceding month. The Benchmark price for a detached property in Surrey Central was $1,014,900, an increase of 17.1 per cent from one year earlier, and an increase from one month earlier was 0.2 per cent. In Cloverdale, the December Benchmark price was $1,004,900, an increase of 17.2 per cent from one year earlier, and an increase of 0.7 per cent from the preceding month. In Langley the December Benchmark price was $1,002,200, an increase of 15.8 per cent from one year earlier, and a decrease of 0.5 per cent from the preceding month.

Townhouses

The biggest year-over-year increase in townhouse Benchmark prices at the end of December 2017 was in North Surrey with a Benchmark price of $414,200, an increase of 28.8 per cent from the end of 2016, and a 1.8 per cent increase over the preceding month. The Benchmark price in Surrey Central was $549,700, an increase of 27.2 per cent from the end of 2016, and an increase of 1.6 per cent from the preceding month. In Cloverdale, the Benchmark price was $572,600, an increase of 26.9 per cent and a 0.9 per cent increase from the preceding month.

Condominiums

North Delta saw the biggest year-over-year increase in the Benchmark price for condominiums. There the Benchmark price at the end of 2017 was $361,800, an increase of 44.1 per cent since the end of 2016, and a 3.9 per cent increase over the preceding month. The Benchmark price in Langley was $396,900, and increase of 40.3 per cent over one year, and an increase of 2.0 per cent from the preceding month. In Abbotsford, the Benchmark price was $286,600, an increase of 33.6 per cent over one year, and a increase of 2.5 per cent from the preceding month.

I hope you fill find these suggestions helpful, and I wish you great success in your home search or sale as we begin this new year. I am always eager to help my clients in any way I can. Remember, I keep a close watch on market changes, so please feel free to call me any time you have a question.

Thanks for reading!

Sibo Zhang, REALTOR®

5 Ways to Achieve Your New Year’s Resolutions in 2018

Happy New Year!

It’s that time of year again, that annual ritual of making promises to ourselves – what we like to call our New Years Resolutions. Even if it’s a not quite a promise, most of us will make a kind of mental preparation to improve some aspect of our life, whether it’s a positive activity like going to the gym regularly, or quitting a bad habit like smoking. The nice thing about personal resolutions is that when we keep them we can feel proud of our accomplishment, and if we don’t… well then, there’s always next year. I found some research by the Statistics Brain Research Institute on the length of time most people keep their resolutions. This may help you with the kind of resolution you want to make.

Statistically, 76.2 per cent of people who make New Years resolutions are only able to keep them for one week. For two weeks, it’s 68.4 per cent. Only 58.4 per cent get through a whole month, and beyond six months it’s 44.8 per cent. Unless we are doggedly determined to keep a resolution, we can feel better that we belong to the three quarters of people who fail by the end of January, or are part of more than half of people who fail by the end of June.

For those who really want to succeed in their Resolutions, I dug up this advice from an article by a psychologist, Joseph Luciani, Ph.D., published in US News in 2015. I think it’s still very applicable advice.

To summarize what Dr. Luciani says:

1. Think small

Choose simple challenges and make them happen every day. When you get used to keeping your personal commitments, then move on to step 2.

2. Build self-trust

Cultivate your capacity for self-trust. Choose challenges that you know you can succeed at. Don’t make a pledge that you’re not sure you can keep.

3. Invent challenges

This is something you should do all day long. For example, finish your paperwork before watching TV

4. Cultivate optimism

Don’t let negatives rule your life. Focus on positives. If you’re a complainer, then stop complaining to yourself and to others.

5. Develop critical awareness

This means you should strive to shed light on any negative habits you have, and don’t let them dominate your life. Now, if you are still convinced you want to make a News Years Resolution, I found a list of ones that statistically you should probably not make.

According to Time magazine, the top ten resolutions that are most commonly made and then broken are: 1) lose weight/get fit; 2) quit smoking; 3) learn something new; 4) eat healthier and diet; 5) get out of debt and save money; 6) spend more time with family; 7) travel to new places; 8) be less stressed; 9) volunteer; 10) drink less. I’ll bet there’s at least one resolution in the above list that you have tried to make in the past.

Before you decide it’s pointless to try any more, remember that 1) you don’t have to be a statistic (that is, an average – you are still a unique individual; and 2) why not see what happens if you apply Dr. Luciani’s advice to the big goals listed in the Time magazine article! Instead of resolving something so big as to quit smoking, try to quit smoking for one day. Or instead of saying something so general as learning something new, try to focus on something specific like, “Learn how to cook new dish.” I adopted the following formula for reaching achievable goals in business. Maybe it can also be used for personal resolutions too.

The formula is called SMART. Make your goals 1) Specific; 2) Measurable; 3) Attainable; 4) Relevant; 5) Time-sensitive.

 

Of course, if you simply cannot keep your New Years Resolutions, maybe it’s better simply to resolve not to make any resolutions at all. But I’m guessing you won’t be able to keep that one either.

Whatever you decide, I urge you to make this one resolution with me: Have a Happy New Year!

Thanks for reading!

Sibo Zhang, REALTOR®

 

Celebrating the Spirit of Christmas in Surrey, BC

It’s Christmas time and Santa Claus has come to town – my four year old son is sure of that! His older brother is developing a natural skepticism that eventually comes to Santa believers. But it’s nice to see he loves to share in his younger brother’s belief. It’s a lot of fun to wonder what Santa will bring you at Christmas time, and it’s one of those beliefs that leads to happy memories of childhood – like the Tooth Fairy and the Easter Bunny. It’s interesting, however, to watch the questions that start forming in a youngster’s mind as they begin to question some of the stories that form their magical world. My 4-year-old hasn’t yet asked how Santa will cope with the fact that we have a gas fireplace and no chimney big enough for Santa to come down. Or how will Santa be able to get from the mall where he’s posing posing for pictures with kids on his knee and back to North Pole in time to take the reindeer sled out on Christmas eve? The nice thing about a child’s imagination, though, is that it never let’s the impossible get in the way of coming up with a solution. There’s no doubt a good lesson in that for adults too.

This year I saw an interesting news report about how many children in North America believe in Santa Claus. Based on a study in 1978, about 85% of 4-year-olds said that they believed in Santa. That was followed by 65 per cent of 6-year-olds, and 25 per cent of 8-year-olds. Another more recent study in 2011 showed about 83 per cent of North American 5-year-olds believed in Santa Claus. Statistically, I am now assured that my kids are normal, but I really didn’t need statistics to prove this. I see it every day of this season when they are with their friends, all happily getting along enjoying the Christmas spirit.

I also discovered this year that the visual image of our modern North American Santa Claus comes from a magazine illustrator named Thomas Nast. His illustration of Santa Claus in 1881 formed the basis of our contemporary idea of a portly and jolly man with a long white beard in a red suit. This image quickly became a large part of North American culture, much of it because of the advertising campaigns for Coca-Cola. Throughout the 1920s, ‘30s,‘40s, and ’50s, Coca-Cola ads featured a Santa Claus in his famous red suit and white beard enjoying the soft drink at Christmas time. Their advertising nor doubt helped to sell a lot of soft drinks, but it also firmly embedded the image of Santa Claus in popular culture. The artist Nast was said to have found his inspiration for this image in a well-known poem written by Clement Moore in 1822. The poem is better known for its first line,‘Twas the Night Before Christmas, and contains all the basic elements in our modern Santa Claus story – a sled driven by Santa pulled by eight reindeer, landing on rooftops for Santa’s traditional chimney entrance, with gifts for good little boys and girls.

Whichever way Santa may get into your home and into your hearts this year really doesn’t matter. The important thing is that Santa’s spirit of generosity and kindness is part of your family. It’s a wonderful way to end a year and prepare for a new year just around the corner. Our joy of Santa might also remind us that many people do not have a gift-giver in their lives, and that we may have the opportunity to be a Santa to someone of any age whose life would be brightened with a gift from us.

Along with my wife Cindy and my sons Warren and Kingston, we all wish you a very Merry Christmas, and may Santa bring you much happiness.

Thanks for reading!

Sibo Zhang, REALTOR®

New Mortgage Stress Test Rules Starting in 2018

Canadian home buyers will face a new federal government regulation effective January 1, 2018. In the New Year ahead, all home buyers will have a new “stress test” when they apply for a mortgage with their bank or credit union. Until now, the test applied only to those borrowers who did not take out mortgage insurance – typically, borrowers with at least a 20 per cent down payment on their total mortgage were not required to take mortgage insurance. Under the new rules, all borrowers, whether insured or uninsured, will be required to meet the test criteria designed to evaluate a borrower’s likelihood to be able to make payments under possible future conditions.

You may recall in July this year, the Bank of Canada announced an increase on mortgages of 0.25 per cent. At that time, I wrote about why the central bank was raising the prime rate – a move to “cool” rapidly escalating housing prices, and what it would mean for prospective home buyers. When the rate increase was announced, it was proposed as the first of successive increases at later dates. I know many people decided then it was time to purchase a residential property before the next rate increase. The new stress test rule suggests that further rates increases could be on the way.

The stress test will be made on the basis of your financial institution’s posted five-year average mortgage rate, or on a rate that is two per cent higher than its actual mortgage rate – whichever one is higher. Basically, the new rule is to protect against a possible payment default by the home purchaser if interest rates go up beyond their ability to pay. It should be noted, however, that borrowers who already have a mortgage will be exempt from the new rule as long as they renew their existing mortgage at the same financial institution.

The federal government, through the Office of the Superintendent of Financial Institutions (OSFI), has set out five principles which provide the rationale for the stress test and a guide on how federally regulated financial institutions are to administer the test. Below, based on these principles, I simply want to explain what borrowers can expect when the apply for a mortgage after the end of this year. And I would like to emphasize that, beyond the new universal requirement for mortgage insurance, there is really nothing new that a mortgage applicant would not normally expect.

Principle 1: This Principles is focused on what is expected of federally regulated financial institutions (FRFIs) by way of diligent management of their own affairs. The last four principles relate to what will impact you directly when applying for mortgage.

Principle 2: FRFIs should perform reasonable due diligence to record and assess the borrower’s identity, background and demonstrated willingness to service his/her debt obligations on a timely basis. There’s nothing surprising here. As you would expect, your bank or credit union will check your credit history and past borrowing behaviour. It’s worth noting that if the financial institution uses your credit bureau score, this indicator should not be used solely in the assessment of your reliability to repay the loan. Other basics issues also fall under this principle such as: the purpose of the loan (e.g. purchase of refinancing; debt servicing on other key expenses such as heating, taxes, and other debt obligations; Loan to Value ratio, i.e. property valuation and appraisal documents; property insurance and a commitment to insure the mortgage. There is also requirement to verify the source of the down payment, since there is also federal legislation for anti-money laundering and anti-terrorist financing.

Principle 3: FRFIs should adequately assess the borrower’s capacity to service his/her debt obligations on a timely basis. Again, no surprises here. As you would expect, there will be a verification required on your employment status and income. However, if you derive your income from a source outside Canada, it could pose a challenge to its verification, and the financial institution is instructed to be cautious in such cases. If this applies to you, it would be best to arrange for a clear and easy verification process, perhaps through the foreign financial institution acting on behalf of your source of income. There is some overlap with this principle and principle two, but it’s worth repeating that your ability to pay will include an assessment of such things as principal and interest payments on the mortgage loan; primary and other sources of income; heating costs; property taxes; condominium or strata fees; and payments for all other credit facilities (e.g., unsecured personal loan, second mortgage loan, credit card).

Principle 4: FRFIs should have sound collateral management and appraisal processes for the underlying mortgage properties. This principle sounds very similar to principle 1 insofar as it directs the diligence required of the financial institution for the loan. However, it does cover some required actions which can directly impact the borrower such as assessment methods of the property value, the Loan to Value assessment based on the property assessment; and loan types, whether high or low Loan to Value ratios. These assessments can impact on the financial institution’s need to impose contractual terms and conditions that secure their full protection under laws applicable in relevant jurisdictions, including, where applicable, what legal actions may be taken should the borrower default. Also included under this principle are considerations for Home Equity Loans (sometimes called ‘reverse mortgages’) which form a different category of issues from regular mortgages.

Principle 5: FRFIs should have effective credit and counter party risk management practices and procedures that support residential mortgage underwriting and loan asset portfolio management, including, as appropriate, mortgage insurance. This principle almost goes without saying since it covers the due diligence that a financial institution should undertake in picking the mortgage insurance underwriter. However, it’s worth mentioning here so potential borrowers understand from whom they will they obtain their insurance. The bank or credit union granting the mortgage may arrange for the insurance (to be paid by the borrower) from Canada Mortgage and Housing Corporation (CMHC) or another private mortgage insurance provider. It is also worth noting, therefore, that your financial institution is required by its required due diligence to ensure the underwriting standards of the third-party insurer are consistent with your bank or credit union’s Residential Underwriting Practices and Procedures, and also compliant with the OSFI Guideline, which directs that federally regulated financial institutions should not rely solely on the attestation of the third party.

I have not tried to cover every detail in the new mortgage insurance rules in this blog. For most of my clients, the above review should be sufficient to give them a basic understanding of what to expect when applying for a mortgage starting in 2018. If you wish to read the entire OSFI Guideline you can find it at http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/b20_dft.aspx

If anyone would like a more specific review of how the new rules will apply, I would be happy to speak with you personally.

I am experienced in personal financial matters having worked within a Canadian financial institution, in addition to my realtor expertise, and I would be happy to advise you on all aspects of what may be the biggest and most important investment of your life – the selection, purchase and financing of your home. Please feel free to give me a call.

Thanks for reading!

Sibo Zhang, REALTOR®

(604) 779-7992

Living and Investing in Surrey

In my last blog, I referred to a recent report from the Real Estate Investment Network (REIN) which ranked Surrey in the top 10 cities in British Columbia. That’s a major endorsement for Surrey when it comes to deciding where you want to invest in a home and raise a family! And when a city gets known for something like that, its reputation escalates as everyone gets even more excited about what they’ve got.

You can be certain that purchasing a home in Surrey is truly an investment, and an exceptionally good one. My wife and I are raising our family here and we couldn’t be happier. I had to dedicate my entire last blog to the multitude of events here just for youth. In this post I will try to balance the scale a bit in favour in why Surrey is great place for adults too; and of course having a great choice of things to do together with your children is also one of the biggest rewards!

Let’s begin with a theme that is the hallmark of living everywhere in British Columbia – the great outdoors! Surrey has preserved some of the most beautiful areas for parks – and the City’s Parks Board has developed breathtakingly beautiful parks. In fact, there are so many parks in Surrey I would have to publish a book to mention them all. The City of Surrey’s website says there are 200 parks here, but if you count all the greenbelts and nature areas, there are over 600 sites according to British Columbia tourism ministry. I have gone to a tourist website, Trip Advisor Canada, and the British Columbia’s Tourism website to narrow the list to 10 of their top picks (just to be impartial). I’ve started in South Surrey and picked some great parks and nature preserves moving northwards.

There are beautiful parks with unique programs in every one of Surrey’s neighbourhoods.

i) Crescent Beach

This spectacularly beautiful area is the perfect place for a walk along the ocean or taking in a sunset on the western horizon.

ii) Redwood Park on 20th Avenue

This beautiful forest has lots of trails for exploring, and the park has lots of fun things for kids too, like a playground keeping with the Redwood theme of the park, and “fairy houses” along the main trail.

iii) Blackie Spit Park at 3135 McBride Ave

This area is also on the ocean coast and is a great place to walk with kids, or you can walk your dog on leash. For the more adventurous, it’s also a great place to launch a kayak and a paddle the coast line.

iv) Urban Safari Rescue Society at 1395 176 St.

Even if you don’t like lizards, spiders, snakes, turtles, and all sorts of bugs, then I’ll bet your kids do! This place isn’t exactly a park, but for nature it’s a great place to learn about all those interesting creatures that children are curious about.

v) Unwin Park in the Newton Area

Large 36-acre community park with a host of different activities for the whole family. Check out the baseball diamonds, batting cage, cricket fields, soccer fields, lacrosse boxes, and even a basketball court.

vi) Green Timbers Urban Forest at 4600 Block of 100th Ave.

My family loves this place. It’s a tranquil and quiet park off the Fraser Highway near King George Boulevard. You can go biking or for lovely walk along a beautiful pond. There is lots to do here for adults or children.

viii) Bear Creek Park at 13759 88th Ave.

A great place to entertain young children. There is the Bear Creek miniature train, a waterpark and outdoor pool to cool down in the summer or you can play mini-golf or hike along the trials.

ix) Fleetwood Park in the Fleetwood area

This is a perfect place for picnics and play areas (including a spray park) to scenic gardens and nature trails.

x) Guildford Height Park

This is a 16-acre park near Guildford town centre, two blocks east of the Guildford Mall. Its games court and multi-use grass field is perfect for a game of pick-up soccer of frisbee.

Now, let’s take depart from the great outdoors and take a quick look at what Surrey offers for arts and cultural activities. There is already an abundant appreciation of the cultural activities that make for a vibrant community life in Surrey. Here are just a few examples of the kind of investments the City has made to ensure a enhanced cultural and artistic community is appreciated and enjoyed.

The Surrey Arts Centre at 13750 88 Ave. is like a one-stop shop for visual and performing arts. It is the arts hub for the Surrey Art Galley and the Surrey Civic Theatre’s Main Stage and Studio Stage Theatre. Here you can discover contemporary art through changing exhibitions, permanent artworks, and free events like tours, talks and art-making opportunities. Or you can watch actors, dancers and musicians perform on stage. You can even explore your own creativity through the many art and performing arts classes offered here. In the Newton area, the Arts Council of Surrey has turned the old Firehall into its new headquarters. Named the Surrey Cultural Centre, it is a thriving centre advancing arts appreciation in the heart of the Newton in Surrey. This is just a small sample of what has already started in Surrey’s cultural life. The City is committed to developing its arts and cultural communities. In 2011, Surrey adopted a broad framework – The Surrey Cultural Plan — to enhance the City’s ability to effectively mobilize the resources and talent available within the community towards a sustainable, dynamic, and socially cohesive city with an enviable quality of life. These are just a few of the factors that contribute to Surrey’s making the top 10 list in the REIN report.

You can see that choosing Surrey as place to raise your family is indeed smart investment in the future!

Thanks for reading!

Sibo Zhang, REALTOR®

 

*image via www.surrey.ca

Fairness Should Be Restored to Financial Transactions

I recently noted a very interesting development about changes to Canada’s law governing railroad cargo service in this country. As I understand the proposed change, which comes after years of complaints by grain farmers, in the future there will be “reciprocal penalties” for not fulfilling shipping agreements. Reciprocal means applying equally to both parties in an agreement. In the past, the shipper was the only party held responsible for not holding up his end of the bargain. If the shipper missed getting his cargo to the train on time, the shipper paid a penalty. The change will mean that if the railway company is to blame, then the shipper will also be able collect a penalty in the form of a payment from the railway. This seems so basically fair it is hard to imagine why it is only coming into existence now; but my reason for noting this is not to comment on railway service, which is not my area of expertise. What I find so interesting is that this reveals a basic principle of fairness – one that I think should be implemented in several other areas of our lives.

We are accustomed to problems arising from technologies that don’t work properly, to many other issues that can cause irritation and which actually cost us time and money – unfairly. Take for example, bank service charges. We pay them because the bank or credit union, which makes money on our deposits, says they are a charge for the service they provide to us in managing our account. This would include holding our deposits safely, keeping track of our deposits and withdrawals, and providing us with a statement of these transactions each month. But what if the bank makes a mistake? Recently, a friend of mine showed me his bank statement which had withdrawals wrongly posted to his account. His bank fixed the mistake when he brought the errors to their attention. But when he questioned who should be held responsible for the mistake, the financial institution told him that it was up to him to check his monthly statements – in other words, the customer was held responsible for the bank’s mistakes. This is another example where I think fairness would dictate that the customer should be able to have a penalty assessed against the bank and to compensation for the time it has taken him to double check what the bank is supposed to be doing carefully. After all, a customer’s time is also valuable. Banks have a whole lot of different charges for mistakes that clients may make: overdraft charges, NSF penalties on cheques, normal service charges just for posting transactions (even mistaken ones), among others. So why shouldn’t a customer also be able to charge a bank when the bank makes a mistake on the customer’s account. This would be implementing the principle of Reciprocal Penalties – like the railroad company example – and establishing some basic fairness in our everyday lives.

The same principle could be implemented in other areas of daily commerce as well. Have you ever had to challenge incorrect phone charges on your telephone bill; or your cable bill? Or maybe even your tax assessment? I know some people might say these things fall under the heading of “Don’t Sweat the Small Things” – a generally wise philosophy for living in a complex world – but are we in danger of allowing corporations, big computer systems, and big bureaucracies of making a lot of money at the collective expense of all of us, and not being held accountable for their mistakes, as we are for ours? Have we become so used to being treated unfairly that we don’t think it’s important anymore? I think that’s a bigger question that we should think about.

Thanks for reading!

Sibo Zhang, REALTOR®

Surrey Recognized as Best Place for Real Estate Investment

A new report this November ranks Surrey as the best place for real estate investment in British Columbia. Produced by the Real Estate Investment Network (REIN), it shows Surrey leading to the top 10 towns and cities in British Columbia. It’s absolutely true!

As a Surrey resident, I cannot say how glad I am to have chosen Surrey as city in which to raise my family. Below I have listed just a few of the great activities – just for youth – that happen in Surrey. There’s so much for youth alone, I’ll have to dedicate another blog to activities for others.

But if you want to raise a family in Surrey, here are the kind of events that I think the REIN report must have had in mind when it ranked Surrey as # 1.

Throughout the year, there are five major festivals: Canada Day and Fusion Festival in the summer; a Tree Lighting Festival in early winter; and the Party for the Planet and the Surrey International Children’s Festival in the spring.

And look at some of the major events offered among activities just for young people over the past year alone:

In March, The Surrey Steps Up program celebrated the positive impact young people have our communities and lives.

May 1 to 7 was Youth Week, five days of incredible fun, socializing and learning. This internationally recognized week is dedicated to to acknowledging, celebrating and advocating for youth empowerment, achievement and involvement throughout the year.

Monday May 1: Voices for Change was a youth inclusion art camp held in the evening at the Chuck Bailey Recreation Centre. The three hour session was all about creative expression and helping youth tell their own story about what inclusion means to them.

Tuesday May 2: An evening session at the Guildford Recreation Centre that was a Girls Night just for preteens. This was a night full of energy and laughter, a great opportunity for girls to socialize and have fun while playing games, dancing, crafting, baking and much more.

Tuesday May 2: A break dance for two hours in the evening at Kwantlen Polytechnic University Gymnasium. Our accomplished break dancers were able to show off their dance moves during a mini dance battle with the night ending with prizes and snacks.

Tuesday May 2: The evening Art Together program at the Surrey Arts Centre was a wonderful time for your creative young people to make art and share ideas. This is a unique event provided an opportunity for young people to create art together with mentoring artists.

Wednesday May 3: An outdoor ball hockey game took place at the South Surrey Recreation & Arts Centre from 3:00 pm to 6:00 pm – an energetic change of pace and great fun too.

Wednesday May 3: The Pixel Post it Note Art Extravaganza event at the Guildford Library between 3:30 pm and 9:00 pm was a chance for participants to get creative with Post It Notes. It’s amazing to see what can be produced by our young artists.

Thursday May 4: Today’s event was a change to physical activity with a Sports Skill Competition at W.E. Kincig Elementary School. Two competitions took place, one for grades 5 to 7 from 5 pm to 7 pm; and another for grades 8 to 12 from 7 pm to 8:30 pm.

Friday May 5: The Skate Jam & Gamers Challenge from 4 pm to 7 pm at the Chuck Bailey Recreation Centre was a fun and competitive skateboard jam featuring music and lots of prizes in the skate park. All levels were welcome, and lots of talent showed up

Saturday May 6: The Surrey Youth Showcase at the Guildford Recreation Centre had dance battles for 2-vs-2 Break, 1-vs-1 Footwork, 1-vs-1 B-Girl and Cypher Battles, and also included hip hop dancers. There were carnival games for younger kids and a basketball tournament which included some wheel chair basketball as well. You couldn’t ask for a more a more exciting single day of high energy youth activities.

On May 12th the 7th annual Sassy Awards sponsored by the Semiahmoo Rotary Club at the Surrey Arts Centre honoured youth aged 15 to 21 who are making a difference in our community. Sassy stand for Service above Self and had seven award categories: i) Arts and Culture Leadership; ii) Community Service; iii) Environmental Leadership; iv) International Service; Overcoming Adversity; Sports Leadership; and Youth Leadership. These awards are a great way to promote leadership among our young people and I encourage you to nominate deserving youth for next year’s awards.

Sassy Awards

On September 9, 2017, Band-Aid took place at the Surrey City Hall (13450 104 Avenue)
This was a free event allowing young musicians between age 12 and 22 to join music industry mentors for a day of workshops. Band-Aid is a community-driven event with local singers, sola artists, bands and DJs. The ended with a jam that goes into the night, with friends and family all welcome.

On September 23 Surrey’s largest youth event – Youth Fest –  took place at the Guildford Recreation Centre. A great variety of activities for everyone made the afternoon event a wonderfully fun place to be. The activities included live music and DJs on stage; an all styles dance competition; carnival games and a wipe-out inflatable game; a cooking event with a master chef; and collaborative arts making in the arts café. The evening capped off the Fest with a teen dance from 8 pm to 11 pm. Everything was planned extremely well, including a free shuttle bus to get to and from the venue safely.

I hope this sample of youth events over the past year gives you an insight into what makes Surrey such a great place to buy a home and raise a family. And I’ve only had space here to talk about events that will keep your kids engaged and happy in a wholesome lifestyle.

Stay tuned, and I will describe other events for parents in another post.

Thanks for reading!

Sibo Zhang, REALTOR®

Halloween Is An Evolving Celebration

 

Halloween is approaching – a favourite date for kids, and a lot of adults too, to dress up and make believe. My two boys love thinking about what they will “be” on the evening of October 31. Maybe a witch, a ghost, or a fairly tale prince or princess. Sometimes kids want to imagine a future adult job when they grow up. One year our oldest son went trick-and-treating dressed as a policeman. I’m glad he was thinking of a lawful occupation. (It was my neighbour who wore a prisoner costume and let my son keep him under arrest while going door to door for free candies).

I think it’s a great time for kids and parents to enjoy a harmless and fun time, but like any event in our modern, multicultural country, it needs to treated in a way that fosters our children’s sense of community, and avoids costumes that can cause hurt to others. Sometimes this is inadvertent, simply because many costumes on sale in stores are throwbacks to a period of history when they were worn simply to be different. Today, they may cause offence because we now realize they may represent something sacred or otherwise sensitive part of another person’s religious or cultural heritage. Globe and Mail writer Elizabeth Renzetti had a good column recently about this entitled Offensive Halloween Costumes Should Go to the Grave. (October 14, 2017). Renzettti points to headwear such as turbans or feathered headdresses as such examples.

Of course, if you look at the history of Halloween you understand this peculiar celebration has its roots in ancient cultural and religious beliefs. This also provides a lesson for modern folks. We should try to understand how celebrations like Halloween can evolve, and how a multicultural nation like Canada has a unique opportunity to continue the transformations that occur in its evolution – a learning experience that has value for adults and children alike. I found it very interesting to learn that Halloween actually had its origins in an ancient Celtic festival called Samhain. This dates back 2,000 years ago when the Celts, a people living in what is now Ireland, Britain and northern France had a festival on November 1st, which was their New Years Day. The Celts had a religion with Druid priests who believed the ghosts of the dead ancestors returned to earth on their New Year’s eve. Hundreds of years later, when the ancient Roman empire had conquered the Celtic lands, the annual festival came to include honouring the Roman deity Pomona, the goddess of fruit. Today, our Halloween activities for kids often include “bobbing” for apples, (trying to take a bite of apple while it floats in a tub of water), which we can connect to this ancient Roman aspect of the festival. Then, hundreds of years after this period, when the Christian religion through the Roman Catholic Church was dominant in the empire, the celebration blended the Celtic belief of the returning souls with the Church holiday of All Souls Day. This saw people dressing up as angels and devils.

The modern idea of “trick-or-treating” from house to house appears to have its origins in later celebrations of Halloween when poor people were given pastries called “soul-cakes” – a possible reference to earlier times when food was in short supply during the winter, the start of which was Halloween. This may have been the beginning of our modern celebration when kids go door to door for candies, apples, and other goodies.

Since my wife and I have come to Canada from China, we also want to teach our children about their Chinese heritage. We’re looking forward to seeing dragons and other Chinese icons also becoming part of Halloween festivities. We love raising our two sons in this exciting multicultural country!

Check out some of the fun, family-friendly activities happening in Surrey for Halloween this year, here.

Thanks for reading!

Sibo Zhang, REALTOR®