Calgary Realty Report - Monday August 16th - Study Profiles Top Ten Canadian Markets for Real Estate Investing

Some of the best real estate bargains are off the beaten path, and this is evident in the latest compilation of the top ten cities in Canada for real estate investment. This list was assembled by the Real Estate Investment Network, or REIN. Don Campbell, REIN’s president, said that research results were based upon elements including upcoming upgrades to transportation, as well as projections on whether average compensation, population increases and employment growth might be growing at a higher-than-average rate in respective provinces.

Calgary is expected to be a stellar performer, outdoing the average by a huge percentage. As such, it is ranked as the number-one city for investing. The Canada Mortgage and Housing Corporation predicts that, following a two-year decrease, average resale home prices will start a year-by-year growth period beginning in 2010. Campbell commented that Calgary’s popularity among newcomers and relative affordability makes it a strong choice for investors in the long run.

Number two on the list is the Kitchener-Waterloo-Cambridge area in Ontario, or as REIN calls it, the “economic Alberta of Ontario.” The region is envisioned as an engine that is powering the Ontario area, and is expected to perform well above other eastern Canadian regions.

Edmonton is third on the list mainly because of its potential. REIN describes Edmonton as a longtime overachiever with population growth and effective civic leadership. The market is also poised to benefit to grow from development of energy sources and enhancements in the infrastructure.

The fourth-ranked area is Surrey. Currently just behind Vancouver in population in British Columbia, it could surpass Vancouver with its rapid growth. Surrey boasts two border outlets to the U.S., linkage to five important roadways, four major railways and outstanding docks.

Coming in fifth is the Maple Ridge-Pitt Meadows area in B.C. Accessibility to the region’s infrastructure has been vastly improved. Given the significant progress made with Translink and the Gateway Project, some 400 new businesses are expected to locate in the area. There should be a concurrent increase in demand for real estate, both commercial and residential.

Sixth-ranked Hamilton, Ontario is overcoming its onetime hard-edged image, per Campbell. The city is now experiencing population growth and an increase in economic stability. For two consecutive years, Hamilton has exceeded the overall value of its building permits.

St. Albert, Alberta is the number-seven candidate, per the report. Campbell notes that St. Albert will probably benefit more than any other area from the new Ring Road in the Edmonton region. Campbell predicts that the area will attract new residents as well as new commercial activity. St. Albert has enjoyed the ability to charge relative high rental prices. Property values continue to grow.

In eighth place are Barrie and Orillia, Ontario. Campbell said the once-sleepy towns are set to grow, due to expansions of college and university campuses. Enhanced Go Train routes have resulted in the cities’ becoming viable suburbs of the Toronto area.

Although Red Deer, Alberta is not particularly close to either Edmonton or Calgary, it has its own opportunities, resulting in its ranking ninth in the study. Campbell said that the entire central region of Alberta is experiencing increases in population and jobs, and that real estate is consistently outperforming other Canadian regions. Red Deer in particular is well placed to be the beneficiary of continuing demand for fuel, food products as well as fertilizer.

Winnipeg is not usually a notable market for investing, but Campbell commented that it is remarkable for its stability during real estate boom-and-bust periods. With this in mind, it is the tenth market in the study. Campbell said that people considering investing in Winnipeg should buy the best-quality real estate they can afford.

Calgary Realty Report - Friday July 30th - Upgrader Deal For Alberta Closer To Reality

Things may be looking up for Alberta’s oil industry. Preliminary agreements have been reached between the province and North West Upgrading to build an upgrader in the Industrial Heartland. Canadian Natural Resources, Ltd. is part owner of the firm. It is possible that the deal could be finalized by this fall.

The refinery, which would be able to process 150,000 barrels per day would employ an additional 8,000 people while under construction and about 500 to operate which is good news for the economy. The plant would be built in three phases and be as green as possible. The construction would include carbon capture capabilities and a method of storage that would reduce CO2 emissions. This particular plant would be producing diesel, which is good news in a province that often runs short of that type of fuel.

Bitumen is mined in the oilsands. It is a tar like material that normally is shipped out of province for refining. The upgrader will allow the processing of the substance to be done in-house. Once signed, construction on the refinery could begin in 2011 with a targeted completion date of 2013.

Calgary Realty Report - Thursday July 8th - Calgary’s Resale Real Estate Market Predicted To Be Healthy

Despite the fact that the resale housing market in Calgary is leaning towards the buyer at present, and has been for two months straight, the industry is expected to even out quite nicely. It is expected that Calgary will see a five to seven percent growth increase in the resale market in a short term year-over-year comparison. Friday’s Metro Resale Index report put Calgary in the second highest group of cities as far as price growth predictions. The city is in the company of Newfoundland, Halifax, Regina, the Fraser Valley region, Vancouver and Victoria.

Leading cities in the review included Saguenay, Trois Riveres, Sherbrooke, Quebec City, Montreal and Gatineau, all in the province of Quebec. Edmonton, Alberta and Saskatoon, Saskatchewan were also on that list. All of these areas have predictions of at least seven percent.

There were 21,000 sales in Calgary this past May. It is less than the 25,438 from last year but still a decent figure. The really hot year was 2007, when May sales topped 41,000. This May’s average sales price in the residential resale market was $404,890. This is higher than April of this year, which showed an average of $393,775, and from May of 2009 where the average price was $370,441.

Calgary Realty Report - Thursday June 17th - Calgary Luxury Home Market Bouncing Back

Re/Max’s Upper End report tracking national sales from January to March shows that Calgary’s luxury home market is doing well. During the period, sixty-seven resale homes sold at prices of $1 million or more. The sales increased 91 per cent year over year, but were still down by 124 sales at peak in 2007.

Calgary trails only the Greater Toronto area, Greater Vancouver area and Victoria.

While strong inventory, competing prices, new mortgage rules and interest rate raises are still affecting the market, many buyers are taking advantage of stabilizing market conditions. Simon Hunt from Re/Max House of Real Estate, believes property prices will continue to rise as the market’s stability increases.

The report says that many buyers are corporate or industry heads who are capitalizing on the market to trade up in homes or neighbourhoods. At the survey’s release, close to 350 condos and detached homes were listed at prices over $1 million.

The most expensive resale detached home sold this year through Calgary Real Estate Board was $5.75 million. The most expensive condo was $1.375 million. In 2009, the most expensive property sold was for $10.3 million.

The report tracked trends and sales in five submarkets and 13 major Canadian centres, with most areas showing double- or triple-digit rises from January to March compared to 2009. Nine markets set new highs for upper-end first-quarter activity.

Eight communities in Calgary and two outside averaged resale prices for over $1 million.

Calgary Realty Report - Tuesday June 2nd - Hundreds Involved in Huge Alleged Mortgage Fraud in Alberta

Although an investigation had been in place for more than a year, a curious fax made its way to the fraud squad at Bank of Montreal in 2008. The three-page, handwritten document accused two individuals, Suneet Sharma and Sanjeev Malik, of a $6 million defraud against BMO on a block of apartments in Olds.

According to content of the fax, Malik and Sharma recruited people to locate and pay “straw” buyers. The two were accused of forging paperwork, lying on mortgage applications and operating rental units in unfit conditions.

The fax is one of many documents that BMO is using in court proceedings against Sharma, Malik and dozens of other individuals named in the lawsuit. Court documents that were recently made available indicate approximately $30 million in losses, as well as damaged credit records and angry buyers.

The alleged scheme involved fraudulent vendors, false employment records and sham companies. The RCMP and the Calgary police have joined in the investigation, making it a criminal as well as civil matter.

The real estate boom of the late 2000s led many people to believe that housing prices would rise indefinitely and that fine print on the documents was irrelevant. According to court papers, some 14 connected organizations, including bank employees, mortgage brokers, lawyers and realtors, joined forces to defraud BMO. Four BMO employees also allegedly took part in the scheme.

Among the accused is Devinder Shory, Calgary Northeast MP. He faces charges of negligence pertaining to five different properties.

The fraudulent activity included locating inexpensive real estate properties in good neighbourhoods, securing inflated home appraisals and paying “straw” buyers $3,000 to $8,000 to buy the properties in their own names. As time went by, the apartments or homes collected income on rentals, but they would fall into default. The straw buyers would be responsible for mortgages valued at many times the actual worth of the homes.

BMO ended up taking losses on many of the residences. Many of those accused of being straw buyers claim they face bankruptcy, trashed credit ratings and litigation. One of these buyers, Muhammed Sohail, said he has lost everything after having declared bankruptcy.

Devinder Shory denied any wrongdoing in the incidents, and said he would vigorously defend himself. He is accused of engaging in business for a company called the Malik Group, which is one of the alleged sham companies involved in the scheme. The Malik Group actively promoted its service to Indian and Pakistani people living in Calgary. The property buyers say they never saw the properties they were tricked into buying.

When asked for comment by the Calgary Herald, Malik refused to comment. Sharma’s family members claim he has returned to his native India.

Calgary Realty Report - Friday May 14th - Downtown Parking Rates In Calgary Still High Even With High Office Vacancy Rate

In Calgary’s downtown, in spite of the almost 14 percent office vacancy rate, parking rates are still sky high. In fact they are among the highest rates in North America. Think San Francisco without the rollercoaster hills.

Office rents have decreased by about 50 percent in the last two years. A year ago a downtown office would have cost you $32.46 a square foot. Today the average downtown office space goes for $17.17 per square foot. Parking has yet to see a significant reduction. Average monthly parking rates for the first quarter of 2010 are $465.15 for all types of parking, underground and surface.

It is logical to think that with the increase in available spaces and the higher vacancy rate parking rates would show similar decreases. Needless to say, Calgarians are not happy. But there might be a bright spot on the horizon.

Some downtown commercial real estate companies, such as CITI Commercial is expecting parking rates to see a significant reduction by years end, so that those rates are more in line with the reduced rental rates. Other executives with the Calgary Downtown Association, such as Maggie Schofield, have already seen some downtown parking prices come down. Time will, as they say, tell.

Calgary Realty Report - Tuesday May 4th - Home Buyer Gets In Under The Wire On Home Purchase

Geoff Chane did something many others have contemplated, or have acted upon. He bought property. And, he did it before the April 19th change in lending laws and before interest rates crept up any farther. He got in on both counts, just under the wire.

As of Thursday, according to First Place Realty’s Mike Fotiou, Calgary counted 1,296 single family home purchases for April at an average of $459,682 per unit. The average price per unit in March of this year was $471,269 and for April of 2009 was $426,311.
Condos were also moving, with 596 sales at an average of $290,535 per unit, slightly down from the $296,660 average in March but higher than the $277,953 per unit from April of 2009.

The Calgary Real Estate Board will release the official numbers on Monday.

First time buyers may not be impacted much by the mortgage regulations because they will be signing five year mortgages to begin with. New regulations require buyers to be qualified for a five year fixed rate mortgage even if they sign for a less expensive option. Home buyers must also put down a 20 percent down payment, rather than the five percent down once the norm. Refinanced mortgages can only be taken for up to 90 percent of a home’s value, rather than the previous 95 percent.

The concern is that the new regulations combined with the increased cost of a mortgage will have a negative impact on the real estate industry; just how much of an impact remains to be seen.

Calgary Realty Report - Thursday April 22nd - Mortgage Rate Worries Drive Calgary Housing Market

Buyers’ fears over increasing mortgage rates fuelled Calgary’s market in March and drove up prices and sales. The five-year fixed mortgage rate is anticipated to average 5.85 per cent in 2010 and increase to 6.5 per cent in 2011, according to Canada Mortgage and Housing Corp.

Statistics released in early April by the Calgary Real Estate Board (CREB) indicate a strong market but Diane Scott, President of CREB says that some areas are more active.

In March 2010, 2,535 resale homes of all types were sold through CREB’s MLS system, an increase of 37 per cent compared to March 2009. Single family home sales increased almost 29 per cent over March 2009.

A total of 1,396 resale homes were sold, increasing over last March’s total of 1,086 and over February 2010’s total of 1,035.
Condo sales increased to 609 units sold in March 2010, a significant increases over 536 units sold in February 2010 and 446 units sold in March 2009.

Single family home sold for an average of $471,269 in March, an increase of 12 per cent over last year, and condos sold for an average of $296,660, an increase of 4.44 per cent over last year.

The market, while balanced, remains unpredictable. Some houses are not selling while others have multiple offers. Still, realtors are saying the market is holding its own. Sales and prices are aligning with a normalizing market, and Scott says that Calgarians should be happy with the market.

Calgary Realty Report - Wednesday April 14th - Calgary’s Housing Market Shows Optimistic Outlook

Optimism is still the key word when describing the Calgary housing market. When all factors such as mortgage costs, home prices and the strengthening economy are taken into account, a recent PricewaterhouseCoopers survey showed a housing index of 143. Any figure over 100 translates into an optimistic market.

True, interest rates are starting to inch up and new mortgage rules take effect April 19, but consumers are still out there looking for their dream home. Almost two thirds of those consumers think that now is the best time to consider such a purchase.

Sales of single family homes increased nearly 30 percent when comparing this past March to March of 2009. Condominium sales rose 37 percent. Royal LePage released a report that showed that home sale prices, on average, have risen roughly ten percent over last year’s market prices. This increase is partly due to more buyers looking to get in on the market and less inventory to choose from. Currently there are about 3,000 homes listed for sale, compared to 12,000 on the market fourteen months ago.

The decrease in housing inventory has encouraged developers to seek more building permits for new home starts in Calgary, a further indication of a healthy real estate housing market.

Calgary Realty Report - Tuesday April 6th - Calgary Housing Market Celebrating Spring Sales Season – Earlier Than Usual

Those Calgarians interested in buying a home are taking the plunge, spurred by reports of a potential mortgage rate hike. The data from MLS shows that sales have increased considerably since the early part of 2009 and the average price of a home is now following that upswing.

The Calgary real estate market has remained stagnant for the last couple of years and now that the economy is turning around, people with an inkling to get into the market are not wasting any time. Houses are still affordable, the interest rates still low, at least for now and confident consumers are basically just saying “Why not?”

The mortgage rate increase has already started. This past Monday, the Royal Bank of Canada, TD Canada Trust and Laurentian Bank have all announced rate hikes on fixed rate mortgages. The new rate, in effect as of now, is 5.85 percent, a 60 point jump. Forecasters believe this is just the beginning.

As of this past Sunday, single family homes in Calgary were going for an average of $469,859 per sale and there were 1.252 transactions made. Sales have increased by more than 15 percent over the first quarter of 2009. If the prices keep increasing until the end of the month, it is a good bet they will make up the highest monthly average seen since the market topped out in June of 2008.

Condos are also seeing healthy sales, 537 of them in fact, with an average of $298,019 per sale. This is a five percent increase in the average price and a 20 percent increase in sales volume from the first quarter of 2009.

February, traditionally a slow month in the industry, was also hopping. News of the impending mortgage rate increase moved the typical spring housing sales season forward a few months. Of course the unusually mild winter across most of the country didn’t hurt.

Calgary Realty Report - Thursday April 1st - Industrial Real Estate Market in Calgary is Balanced and Ready for Business

It looks like industrial real estate may have turned the corner in Calgary. Signifying the first decrease since 2007’s third quarter, the industrial vacancy rate dropped from 5.38 percent in 2009’s last quarter to 5.89 percent in the first quarter of 2010. This is just cause for optimism.

Over one million square feet were leased during this first quarter. Sublease properties are seeing a reduction and rental prices are stabilising. Since there is little new development planned for 2010 the vacancy rate is expected to decline even more. Companies are once again thinking of growth.

The industrial real estate market in Calgary did see a downturn in the prior 18 months but it was not hit as hard as the downtown office rental market. Rental rates have only dropped between ten to twenty percent on average from the peak prices in effect during 2007.

It is easier for the industrial construction sector to halt development projects than those that specialize in building large office towers and complexes. This means that unlike the office retail market, a huge influx of new inventory is effectively avoided. Industrial developers rarely build projects on speculation.

The industrial real estate vacancy rate is in the bounds of what constitutes a balanced market. Both the landlord and the tenant have roughly equal negotiating leverage when working out a lease agreement.

Calgary does have industrial zoned property set aside, already serviced and subdivided, ready for construction to start once the time comes. In this respect, the area has a leg up on many other North American cities when the demand for more industrial space returns.

Calgary Realty Report - Tuesday March 23rd - Will It Be Cell Phones At Twenty Paces for Shaw and Telus?

After seeing Shaw gradually inch its way into the landline phone market and with the prospect of that same Shaw launching cell phone service, Telus Corporation is fighting back. The Western Canadian cell phone giant is trying to solidify its entry into the TV market which currently is lukewarm at best. But if Telus is going to compete with Shaw, it must successfully make the leap from hand held media to the big screen in the living room.

Telus’ TV offering is Internet-based and is hoping to get 200,000 subscribers by the end of 2010. For this cell phone giant that holds 25.8 percent of the country’s $16 billion cell phone market, this is nothing. The problem is the method of service delivery.

Internet Protocol TV has been around in Calgary and Edmonton since 2005 but it has only trickled into other markets. This Telus offering has to be delivered over the company’s broadband network, so can only be offered in areas where the Internet network is able to handle the transmission of a high-definition channel. It takes a huge amount of bandwidth to do this.

If Telus is going to stand up to Shaw it must find a way to offer its TV product successfully. That way it can bundle its services; cell phone, home phone, Internet and TV so that clients get one bill and usually a discount on the entire package.

Shaw currently holds roughly 90 percent of Western Canada’s TV market. Telus has a major fight on its hands, especially when Shaw adds cell phones to its already successful bundled service in Western Canada.

Calgary Realty Report - Tuesday March 16th - Cozy Shack Competes With Building Elite at Calgary Award Gala

The Calgary Region division of the Canadian Home Builder’s Association will hold its annual Sales and Marketing Awards Gala on April 17th for the 23rd straight year. This award ceremony recognizes those who have come up with the best and most innovative construction designs for both new homes and renovations in the Calgary area. It also recognizes companies for coming up with creative designs for new home neighbourhood developments.

This year a company owned by Trevor Belliveau that specializes in building homes that are valued between $700,000 and $2 million plus, will enter. His firm, Cozy Shacks, is a finalist in the best new home valued from $850,000 up to $999,999 as well as in the $1 million to $1.5 million dollar category. According to those in the know, he has a good chance of winning.

The four year old company believes in the hands on approach. Belliveau visits the job site everyday and keeps an eagle eye on the progress of his firm’s high end work. Cozy Shacks only takes on about six projects a year. This trip to the awards is a big step up for Belliveau and will also give him a chance to meet some of the big names in the industry, such as Morrison Homes, Baywest Homes and Albi Homes.

Morrison Homes, owned by Dave Gladney, is up for the Builder of the Year Award. If the company takes the honours, it will be for the ninth straight year. That makes for some serious competition for Cozy Shacks and others at this very posh awards ceremony.
 

Calgary Realty Report - Tuesday March 9th - Reports Point to Sunny Outlook for Alberta’s Economy

The economic recovery is gaining a foothold in Alberta, according to data released March 6.  Construction of new homes is on the rise again, hiring is resuming and gains in oil prices are helping to bolster the financial markets.

Per Jacques Marcil, an economist with Calgary-based Canada West Foundation, the economy bottomed out, and is now trending upward.  Retail sales are improving, wholesale activity is increasing and the manufacturing sector is exhibiting renewed strength. Marcil said that the economic news is much better than it was at the end of 2009.

After it ground to a halt in late 2008 and early 2009, the realty market in Alberta is showing continued vitality, according to Canada Mortgage and Housing Corporation.  New-construction home starts in February were more than three times the amount posted for the same month last year.  Construction started on 743 homes last month, as compared to only 206 during the same time in 2009.  Single-family homes drove the housing-starts increase, but condominium starts also showed significant gains.  Throughout Alberta on an annualized basis, housing starts rocketed up to 25,200 in February, exhibiting a pace of more than twice that of 2009.

The province’s economic outlook is even rosier as a result of a report issued March 6 by Royal Bank, which contends that people in Alberta show more interest in home-buying during the coming two years than denizens of any of Canada’s other provinces.  This indication of confidence among consumers may be attributable to the perception that the job market has stabilized after many layoffs in the past year.

According a new survey from Manpower Inc., an increased number of businesses in Calgary plan to take on more employees this spring.  For the third quarter in a row, three quarters of those surveyed indicated they would maintain their current staff.

Calgary Realty Report - Friday February 26th - With Occupancy Rate Growth, Boardwalk REIT Curtailing Rental Promotions

Canada’s largest landlord, Board Real Estate Investment Trust, reported that the rental market remains highly competitive although incentives are beginning to subside.  The REIT, based in Calgary, advised that the rising mortgage rates and home prices are creating a positive outlook for the rental market.  Sam Kolias, Boardwalk’s CEO, said that he would probably not know of the market’s true vitality until some time this spring.  However, higher occupancy rates have allowed the company to curtail some of its promotional activity.  

In a conference call with industry analysts, Kolias said that Boardwalk provided aggressive incentives, including a $200-per-month discount on some rental units.  Although that promotion is no longer available, Boardwalk is still offering an incentive of $100 discount on selected properties in Alberta. 

The average rent in Boardwalk’s portfolio experienced a one-percent decline, to $998.  However, decreases were significantly more pronounced in Calgary, where a five-percent shortfall to $1,093 was recorded.  Accounting for more than a third of the REIT’s portfolio, Edmonton rentals fell four percent, resulting in an average rental price of $1,039.  

Genuity Capital Markets industry analyst Mark Rothschild contended that although Boardwalk is cutting back on incentives, the market has not yet stabilized.  He said that once the majority of properties are rented, extensive promotions are not needed to rent the last remaining empty units.  

Kolias believes that the Canadian government’s decision to require higher down payments on properties designated for investment will benefit the rental market.  He said that in the long run, this move would cut back on speculative condominium building construction, providing a better-balanced market. 

Calgary Realty Report - Saturday February 20th - Canada’s Inflation Rate May Inspire Early Mortgage Interest Rate Increase

Will the Bank of Canada hike the mortgage rte prior to its July target date?  Canada’s inflation rate, which rose to 1.9 percent thanks to increases in car prices, vehicle insurance rates and gas costs, may trigger such a happening.

Mark Carney, governor of the Bank of Canada is concerned because prices did not fall as much as expected in 2009 despite the economic downturn. It seems the inflation rate may outpace the recovery rate, and that is worrisome.  Derek Holt, an economist from Scotia Capital thinks he may jump ahead with the interest hike.  Other financial experts believe he will keep to the original date, as promised.  The Bank of Canada will issue its next report on March 2nd.

Benjamin Reitzes, an economist from the Bank of Montreal seems to think that prices will go down because much of that inflation comes from the higher price of gas in 2009.  Gas prices in January 2010 were 23.9 percent higher than January of 2009.  He did note that gas prices have been fairly stable since mid 2009.  He figures if gas prices were taken out of the equation, the inflation rate for Canada would be 1.3 percent.

Consumer prices did rise in all provinces in January.  Atlantic Canada saw the highest increases with Prince Edward Island leading the way at 4 percent. Nova Scotia was not far behind with a 3.1 percent increase.

The prize for the lowest annual inflation went to British Columbia, which only saw a 0.7 percent hike.

Calgary Realty Report - Tuesday February 16th - Calgary Mayor Spars with Premier on Local Funding Initiative

Despite demands made by Calgary’s mayor to resolve a $153-million budget cut, Alberta’s premier said that the city should be appreciative of the grant money it is getting in the new provincial budget.  Dave Bronconnier said he wants a meeting with Ed Stelmach to discuss why the significant cut was made to infrastructure funding.  He contends that under the terms of a signed agreement, negotiation between Calgary and Alberta would be necessary before any large funding changes.

A construction binge is in jeopardy.  The items in question are expansions to the LRT, new recreational centres, new fire halls and purchases of equipment for the city.  Bronconnier said he would consult with the city’s legal advisors to see if it is feasible to file litigation against the province. 

Stelmach said that Calgary will be the beneficiary of $3.3 billion in funds, but it may take more than ten years for that money to arrive in the city’s coffers.  He criticized Bronconnier, saying that other cities would be glad to have the kind of fiscal partnership enjoyed by Calgary.  

The initiative’s original purpose was to deliver $1.4 billion among all municipalities in the province during 2010.  This amount was approximately equal to the amount earned by the province in property tax revenue, although the province now gets a higher amount.  However, the initiative is currently set at less than $900 million, with a respective decrease to Calgary’s share.

Bronconnier took the unusual step to generate a contract that outlines the terms of monies to be delivered by the initiative.  However, he insisted that he is not setting up Calgary to get any preferential treatment.

Calgary Realty Report - Wednesday February 3rd - Tax Credit Incentive Program

Blissfully unaware that his wife wanted him to install a surround tub in the bathroom, Karl Wong's wife, Margaret, went to Home Depot to buy the tub before the federal Home Renovation Tax Credit program ends on Sunday, Jan. 31.

She is part of a wave of Canadians who are finishing up home improvements while they can still write them off as a tax credit.  Hundreds of fellow Canadians flocked to the corporate home renovation stores this past week to buy up the materials they needed.  The tax incentive program allows citizens a 15% tax break on home-supply spending of up to $1,350.

Homeowners who buy renovation materials or hire renovators between January 27, 2009, and February 1, 2010 will be allowed to claim the expense as a tax credit on their 2009 federal taxes.

This tax credit has become widely popular across the country, and the NDP has even called for the Conservative government to extend the program.  The Wong family has already replaced the cabinets and toilets under the program, and Margaret hopes that the new tub will allow them to gain a little more money back.

Hope Depot representative says that most shoppers were buying up materials for minor projects they can complete without the help of a professional.  Canadians have already spent over $135 million on over 17,000 home improvement projects under the Rona program.

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