BARBARA GRUMME’S BLOG!

How to reach Rob Nicholson:

 Niagara Falls- 2895 St. Paul Avenue, unit 11, Niagara Falls, ON L2J 2L3 

P:905-353-9590 F: 905-353-9588 nichor1@parl.gc.ca

Fort Erie- Country Fair Mall-200 Garrison Rd., Unit 13,Fort ERie,ON L2A 5S6

P:905-871-9991 F: 905-871-5046 nichor2@parl.gc.ca

Ottawa- Room 105,East Block, House of Commons, Ottawa, ON K1A 0A6

P:613-995-1547,F:613-992-7910 nichor@parl.gc.ca

How Can Rob Nicholson’s Offices  Help?

The wide range of services provided by the Government of Canada can sometimes seem overwhelming. All three of Rob Nicholson’s offices are happy to help facilitate your interactions with all government departments such as Citizenship and Immigration, Employment Insurance, Canada Pension Plan, and Canada Revenue Agency matters.

Rob Nicholson’s offices are also available to assist you in obtaining congratulatory messages for family or friends for special birthdays and wedding anniversaries.

Rob Nicholson’s offices is there to serve you . Fell free to contact any one of his offices or go to Rob Nicholson’s website www.robnicholson.ca

While the majority of Canadian financial gurus continue to maintain that Canada will not experience the same economic meltdown as the United States, the global credit crisis is most certainly having an impact here. Just ask anyone looking to find mortgage financing. It seems the days tighten up on lending policies.

“Its not that there’s anything new in terms of obtaining financing”, says David O’Gorman, President of MortgageLand Inc. “What’s Happening is that financial institutions are following policy more closely and enforcing requirements already in place, more stringently.”

For example, self employed mortgage shoppers will be asked for three annual Notices of Assessment from the Canadian Revenue Agency instead of two, plus financial statements. Pay stubs and a letter of employment will be required from salaried employees to prove their income. Banks will also be looking at lower loan-to-value ratios meaning larger down payments. They will also be about verifying an applicants down payment.

Real Estate appraisals can be another concern for buyers and  sellers in a softening market according to O’Gorman. “There’s potential that a property could be appraised down the line at a lower value than the price offered. REALTORS should look at shortening closings to 30 - 60 days to avoid this problem.”

Canada, while somewhat insulated by a solid financial system, now faces a number of negative factors. With commodity prices slumping, the positive growth momentum in Canada’s domestic economy will be challenged by an erosion in the terms of trade that will dampen income growth next year. Also, even though Canada’s credit markets have not suffered to the same degree as many of its major trading partners, the recent widening in spreads and tightening in lending standards argue for slower household spending and a cut in business investment. As a result, we now expect Canada’s economy to contract in both the fourth quarter of 2008 and first quarter of 2009. On average, Canada’s economy is still expected to eke out mild growth next year of 0.3%, half the pace of this year’s estimated 0.6% increase and much slower that the 2.7% pace of 2007.

Interest rate forecasts have been adjusted lower across the yield curve, with the 10- year Canada bond yield forecast to remain low in early 2009 and then gradually increase to 3.75% by year-end as the economy gets back on firmer footing and risks to the downside for inflation abate. Short-term government yields are forecast  to stay  below 2%, with the two year rate gradually rising to 2.4% by the end of next year.

Canada’s economy is suffering from weak consumer and business confidence, falling export demand and rising credit costs.

The chances of avoiding recession are being whittled away, with Canada’s economy likely to contract in late 2008 and early 2009.

Economic activity is being constrained by credit crunch.

December 19^th 2008

I noticed an article on page 23 in the December 19^th paper; entitled “Economic Worries put Damper on Housing Market”. I am reading this and wondering, “what the heck is he talking about”? I thought this was supposed to be a local paper. The stats quoted and the angle of the article are misleading since it focuses on negative Canada wide statistics even though there are some positive points quietly mentioned right in the article.  Why not focus on the positive news regarding the Niagara Real Estate market? Of course some areas like Vancouver, Calgary and Toronto are going to see major shifts, since those areas were over inflated anyway. The homeowners did not really loose money since they have been making money hand over fist, but every few years there needs to be little dose of reality.

 In Niagara region the stats tell a very different story. According to the Niagara Association of Realtors MLS statistical report, the prices in the Niagara Region went up1.36% by the end of November 2008 compared to 2007. The average priced home was $207,882 in 2007 compared to $211,387 in 2008. The only cities in the Niagara Region that saw a decrease in average sale price this year were Fonthill/Pelham, Fort Erie and Wainfleet. But in other cities such as St. Catharines, home owners have enjoyed a price increase of 4.48% this year. Sure the numbers of actual sales in the region have dropped with only 48% of the listings actually being sold in a typical listing time period. But last year a seller had only a 57% chance so things are not “doom and gloom” as one of the other articles stated. The only difference is that buyers have cooled off a bit and are not lining up to buy houses that are overpriced. That is a good thing. Overall, a healthy balance of supply and demand maintains a stable healthy market and we have been fortunate to enjoy that in the Niagara Region. An average priced home worth $200,000 in 2007 and $202,720 now would represent a gain of their actual cash investment of 6.8%. That is if the home owner purchased in November 2007 with a conventional down payment of $40,000. That is by far better then my other investments have faired. I should have bought more real estate instead.  

 It is interesting how stats can be twisted and turned to create a story. Also interesting how the media seems to have an agenda of trying to make things worse by telling everyone how terrible things are and creating a false sense of fear among the readers. Certainly any one who actually looks at the local numbers will see that real estate has been more lucrative than most other investments. Why not tell the real story?

Barbara Grumme, sales rep.

Century 21 today

The government of Ontario is expanding exemptions under the land transfer tax to include transfers of farmland from a family farm corporation to one or more family members. As a result of the new exemption, a family transferring a farm valued at $500,000 would save $5975 in land transfer tax and a family transferring a farm valued a $1,000,000 would save approximately $13,475 in LTT. The exception complements existing LTT exemptions that apply when farmland is transferred from a family member into a family corporation, and when farms change ownership between members of the same family.

A new roadway linking the QEW with what is hoped will be an extension of Hwy. 406 to south Niagara is one of the key projects identified as part of $40 million in new funding announced by the province for Niagara in August.

The new roadway is considered a vital part of the region’s plans to direct growth down to the south end of of Niagara, and is meant to be leverage for the province to commit to extending Hwy 406 to the south end of Niagara. Right now it ends at East Main Street in Welland

Regional staff said the new roadway to connect with the QEW and the Peace Bridge crossing will open up the southern tier for development and create an alternative high speed connection to Port Colborne, Welland, Thorold, Pelham And St. Catharines, as well as provinding an alternative truck route to Hwy 3.

Consruction is expected to begin in late 2009 or early 2010.

The city has officially named the designer for its multi-million dollar convection center due to open in the spring of 2011. Bonfield Construction, a Toronto-based builder whose portfolio includes Niagara College’s Niagara on the Lake campus, the Queenston Lewiston Bridge redevelopment and th eHilton Fallsview Hotel will take on the design of the Niagara Convention and Civic Centre planned for Stanley Ave., near Dunn St.

Staff from the NCCC were on hand as the announcement was made during Monday evening’s city council meeting. “We are so excited. This is a huge step moving forward,” said president of the NCCC, Kerry Painter. “Its a beautiful building that works with surrounding landscape. . Its functional and it has a shelf space for expansion. The 280,778- square -foot design includes fully gazed north and west facades and a folded curtain wall of glass cascades from the roof meant to mirror the sweep of the waterfalls and jagged rock seen along the Niagara gorge.

Construction is scheduled to begin in May 2009