Saturday, December 20, 2008
Manitobas Economy "the exception to the rule once again"
With belts tightening, champagne's just not popping
DIANA MEHTA
From Friday's Globe and Mail
December 18, 2008 at 3:53 AM EST
The latest victim of the sluggish economy appears to be the bottles of premium champagne gathering dust in local liquor stores.
In Alberta and Ontario, at least, consumers seem to be trading down to cheaper spirits as retailers report softening sales of luxury brands.
The amount of premium champagne sold in Ontario over the past eight months is down by 6.6 per cent from the same period last year, according to figures supplied by the Liquor Control Board of Ontario. Sales of the finest cognac experienced a similar decline.
In Alberta, liquor retailers are seeing high-end products pile up at the industry's distribution centre as people become more conservative with their choices, said Laura Wright, executive director of the Alberta Liquor Store Association.
Andrea Anastasiou is one customer rethinking her high-end purchases. She turned a bottle of premium champagne over in her hands before placing it back on the shelf in a Toronto liquor store yesterday. The 37-year-old Yorkville bridal-boutique owner was buying gifts for co-workers.
"I'd like to get more things for more people so maybe I'll get something that costs a little less."
Other customers still enjoy the good stuff, but in moderation.
Vijay Karumanchi, a 38-year-old restaurant owner, was at the LCBO to pick up a few bottles of brandy and cognac and said he isn't changing his preferences. "There is definitely a decline in the quantity I buy, but the products are the same."
The trend in Alberta and Ontario may be localized, however. Manitoba sold its most-expensive-ever single-malt whisky this month at $3,850 per bottle and sales of other premium alcohol are increasing in the province.
The same is true in British Columbia where "premiumization" - people moving upmarket from traditional drinks for quality or status - continues to gather steam. Saskatchewan has also reported a similar trend.
Wednesday, December 10, 2008
I promise to blog more faithfully
I really have neglected my blog and its true purpose. So I shall strive to correct this.
Life is good, I am busier than I would have expected for December but that is truly a great thing. I moved this year, left the Exchange and now inhabit the Village. Love my new space and neighbourhood. It is nice to be part of a community again. The real estate market continues to confuse people but I think we are just seeing an emotional response to the rest of the world. It's nice to see more balance and personally I prefer to sell in this type of Market. It is much easier on the clients and that is what it really is all about. Annie ( the musical) is coming to town in February. Nice to see Broadway in canada doing a few more productions. 2 nights only so do buy a ticket and we will start to get more hi profile shows. Eagles in March, yeh. I had considered a trip to see them in the US so I am truly glad I can see them at home. OK thats all for today but I promise to be back soon.
C
Life is good, I am busier than I would have expected for December but that is truly a great thing. I moved this year, left the Exchange and now inhabit the Village. Love my new space and neighbourhood. It is nice to be part of a community again. The real estate market continues to confuse people but I think we are just seeing an emotional response to the rest of the world. It's nice to see more balance and personally I prefer to sell in this type of Market. It is much easier on the clients and that is what it really is all about. Annie ( the musical) is coming to town in February. Nice to see Broadway in canada doing a few more productions. 2 nights only so do buy a ticket and we will start to get more hi profile shows. Eagles in March, yeh. I had considered a trip to see them in the US so I am truly glad I can see them at home. OK thats all for today but I promise to be back soon.
C
Monday, December 8, 2008
New Tax assesment : what it means to you
If you own a house or condo in Winnipeg, maybe you've already received that terrifying city letter, informing you the value of your home has blown up faster than a propane can left in a barbecue.
Between 2003 and 2008, the assessed value of a residential home in Winnipeg increased by an average of 78 per cent, city property assessors determined earlier this year.
On paper, this makes sense, considering the meteoric rise of residential property listings during a red-hot Winnipeg housing market that cooled off only this fall in the face of the global economic crisis.
But that doesn't stop homeowners from freaking out in the face of double- or even triple-digit increases in the value of their homes, considering the city uses these values to determine property taxes.
But higher assessments do not actually mean higher tax bills. There is no need to panic just yet.
Before you call your real estate agent and make plans to live under a tarp down by the river, check out this handy guide to your new-found material wealth -- and what it means to your future tax bill.
You may even find you won't have to pay an extra cent.
Why has the assessed value of my home changed?
Every four years, the city reassesses every residential and commercial property in Winnipeg and uses this information to determine property tax bills.
There are about 200,000 residential properties in the city and 30,000 commercial properties. The latest reassessment was conducted earlier this year, based on the average sale price for city properties on April 1.
Starting in 2010, the city will reassess all properties every two years instead of four, so assessments will better reflect current real estate market conditions.
How do city assessors come up with a number?
Generally, by comparing your home to other properties that recently sold in your area of the city, provided they're roughly the same vintage, condition and size.
Across the city, the average residential property increased in value by 78 per cent since 2003, the year the latest general assessment took place. But not all neighbourhoods were the same, as previously undervalued inner-city properties shot up 117 per cent over the past five years, while already expensive Fort Garry homes only increased an average of 74 per cent.
How can the city fairly assess the value of my home as of April 1, 2008, when the once-hot real estate market has cooled off since then?
The answer is it doesn't matter when the assessment occurs, provided all properties are assessed on the basis of the same date. Again, the actual value of your home is not as important as the increase in its value compared to other properties.
When will this new assessment show up on my property tax bill?
Not until 2010. And those taxes won't be determined until the middle of 2009.
So if my assessment goes up, will my property taxes go up, too?
Not necessarily, and maybe not at all. Property tax bills are determined by how much the value of your home increased or decreased in comparison to all city properties -- both commercial and residential.
If the value of your home has increased at roughly the same rate as all other properties in Winnipeg, you won't be asked to pay more taxes in 2010. But if your increase exceeded the combined commercial/residential average, you can expect to pay more taxes.
"Generally, if 78 per cent is the overall roll average, and your property assessment increase is above that average, you could pay higher taxes," said Nelson Karpa, the director of Winnipeg's assessment and taxation department.
What does he mean by "if?" I thought you said the average residential increase was 78 per cent?
That's true, but the city has yet to compute the average increase for Winnipeg commercial properties between 2003 and 2008. While there are fewer commercial properties than residential homes, the value of commercial properties tends to be higher.
So if you look at all city property tax revenue as one big pot of money, commercial properties account for about 40 per cent of the cash and residential properties account for the other 60 per cent, even though commercial properties only account for about 13 per cent of the total number of properties.
Have commercial properties increased as much as residential properties have?
Nyet. While the city assessors have yet to tackle commercial properties, the early indication is commercial values did not keep pace with the red-hot residential market between 2003 and 2008, Karpa said.
What does that mean for my tax bill?
The city-wide average increase will be less than 78 per cent, so you will only pay more taxes if the assessment on your home exceeds whatever that city-wide average winds up being.
I don't get it. I thought city council froze property taxes way back in 1998?
That's true. Again, if you look at property taxes as one big pot of money, the only increase to the pot has come from new residential and commercial developments that popped up in the city over the past 11 years.
City council has not asked owners of existing properties to collectively pay more, even though individual tax bills have gone up and down since the final year Susan Thompson was Winnipeg's mayor.
Will city council freeze property taxes in 2009?
Nobody knows, but Mayor Sam Katz and the rest of council's centre-right executive policy committee -- who will determine next year's operating budget -- are not big fans of tax increases.
Although Katz has publicly mused about raising property taxes if the province and feds do provide the city with new sources of growth revenue, this mayor has staked his reputation on fiscal conservatism.
More recently, St. Norbert Coun. Justin Swandel, city council's new finance chairman, has pledged to do whatever it takes to avoid a property tax increase.
When will I hear about my new assessment?
The city started mailing out the first of 200,000 residential assessment notices in October, when West Kildonan, Old Kildonan and inner-city residents should have received them in the mail. St. James and Charleswood homeowners received their letters earlier this month, while the rest of the city will get their notices in January and February.
What if I don't like my assessment because I think the city made a mistake?
Let the city know. You can discuss your assessment with city staff in person at five open houses, the first of which runs today until Thursday at Heritage Victoria Community Club at 950 Sturgeon Rd., from 1 p.m. to 8 p.m. The dates of future open houses are listed on the city's website, winnipeg.ca
Do you mean they can change my assessment right on the spot?
Not exactly. But at this stage of the assessment cycle, city staff do have the power to make changes if they learn they have made a mistake. For example, Karpa recently heard from a Charleswood homeowner who complained her $380,000 assessment was too high, considering her property backs on to the noisy Perimeter Highway. One week later, her assessment was ratcheted down to $330,000.
So all I have to do is talk to the city if I have a problem?
Yes, but only do so if you have a legitimate beef. So far, the city has mailed out almost 55,000 preview letters and has only 159 files open, Karpa said.
How long do I have to gripe about my assessment?
If you have your preview letter, do it right away. Right now, the investigation backlog is only about a week. Things will get hairier in the new year when the rest of the preview letters are mailed out.
The absolute latest you can contact the city is the end of the winter, when city assessors begin preparing your property tax notices, which will be mailed out in July. "If we haven't heard from you by March of next year, we're almost out of time," Karpa says. "We can't be making adjustment to the roll, the day before notices go out."
And what if I miss that deadline?
After you get your final notices in July, you can appeal your assessment to the city's Board of Revision. But it's much easier to deal with the issue now, while adjustments can be made that do not involve a quasi-judicial body.
bartley.kives@ freepress.mb.ca
ASSESSMENTS UP
From 2003 to 2008, the value of Winnipeg homes increased by 78 per cent, based on the median increase in the assessed value of a every residential property in the city.
But not every part of Winnipeg enjoyed the same amount of growth. And the highest growth -- 117 per cent -- took place in the inner city, which happens to have the cheapest-selling homes in the city.
Here's a region-by-region breakdown of values for houses, duplexes and condos in Winnipeg, along with the median increase in those values over the past five years:
TRANSCONA Average sale price as of April 1: $184,500
Median increase from 2005: 77 per cent
NORTH KILDONAN & EAST KILDONAN
Average sale price as of April 1: $173,000
Median increase from 2005: 86 per cent
OLD KILDONAN & WEST KILDONAN
Average sale price as of April 1: $191,600
Median increase from 2005: 83 per cent
INNER CITY
Average sale price as of April 1: $104,500
Median increase from 2005: 117 per cent
ST. JAMES
Average sale price as of April 1: $188,500
Median increase from 2005: 76 per cent
CHARLESWOOD
Average sale price as of April 1: $252,700
Median increase from 2005: 78 per cent
TUXEDO, RIVER HEIGHTS & WOLSELEY
Average sale price as of April 1: $235,100
Median increase from 2005: 81 per cent
FORT GARRY
Average sale price as of April 1: $271,200
Median increase from 2005: 74 per cent
OLD ST. BONIFACE & ST. VITAL
Average sale price as of April 1: $172,900
Median increase from 2005: 83 per cent
NEW ST. BONIFACE & ST. VITAL
Average sale price as of April 1: $262,300
Median increase from 2005: 69 per cent
Source: City of Winnipeg, department of assessment & taxation
Between 2003 and 2008, the assessed value of a residential home in Winnipeg increased by an average of 78 per cent, city property assessors determined earlier this year.
On paper, this makes sense, considering the meteoric rise of residential property listings during a red-hot Winnipeg housing market that cooled off only this fall in the face of the global economic crisis.
But that doesn't stop homeowners from freaking out in the face of double- or even triple-digit increases in the value of their homes, considering the city uses these values to determine property taxes.
But higher assessments do not actually mean higher tax bills. There is no need to panic just yet.
Before you call your real estate agent and make plans to live under a tarp down by the river, check out this handy guide to your new-found material wealth -- and what it means to your future tax bill.
You may even find you won't have to pay an extra cent.
Why has the assessed value of my home changed?
Every four years, the city reassesses every residential and commercial property in Winnipeg and uses this information to determine property tax bills.
There are about 200,000 residential properties in the city and 30,000 commercial properties. The latest reassessment was conducted earlier this year, based on the average sale price for city properties on April 1.
Starting in 2010, the city will reassess all properties every two years instead of four, so assessments will better reflect current real estate market conditions.
How do city assessors come up with a number?
Generally, by comparing your home to other properties that recently sold in your area of the city, provided they're roughly the same vintage, condition and size.
Across the city, the average residential property increased in value by 78 per cent since 2003, the year the latest general assessment took place. But not all neighbourhoods were the same, as previously undervalued inner-city properties shot up 117 per cent over the past five years, while already expensive Fort Garry homes only increased an average of 74 per cent.
How can the city fairly assess the value of my home as of April 1, 2008, when the once-hot real estate market has cooled off since then?
The answer is it doesn't matter when the assessment occurs, provided all properties are assessed on the basis of the same date. Again, the actual value of your home is not as important as the increase in its value compared to other properties.
When will this new assessment show up on my property tax bill?
Not until 2010. And those taxes won't be determined until the middle of 2009.
So if my assessment goes up, will my property taxes go up, too?
Not necessarily, and maybe not at all. Property tax bills are determined by how much the value of your home increased or decreased in comparison to all city properties -- both commercial and residential.
If the value of your home has increased at roughly the same rate as all other properties in Winnipeg, you won't be asked to pay more taxes in 2010. But if your increase exceeded the combined commercial/residential average, you can expect to pay more taxes.
"Generally, if 78 per cent is the overall roll average, and your property assessment increase is above that average, you could pay higher taxes," said Nelson Karpa, the director of Winnipeg's assessment and taxation department.
What does he mean by "if?" I thought you said the average residential increase was 78 per cent?
That's true, but the city has yet to compute the average increase for Winnipeg commercial properties between 2003 and 2008. While there are fewer commercial properties than residential homes, the value of commercial properties tends to be higher.
So if you look at all city property tax revenue as one big pot of money, commercial properties account for about 40 per cent of the cash and residential properties account for the other 60 per cent, even though commercial properties only account for about 13 per cent of the total number of properties.
Have commercial properties increased as much as residential properties have?
Nyet. While the city assessors have yet to tackle commercial properties, the early indication is commercial values did not keep pace with the red-hot residential market between 2003 and 2008, Karpa said.
What does that mean for my tax bill?
The city-wide average increase will be less than 78 per cent, so you will only pay more taxes if the assessment on your home exceeds whatever that city-wide average winds up being.
I don't get it. I thought city council froze property taxes way back in 1998?
That's true. Again, if you look at property taxes as one big pot of money, the only increase to the pot has come from new residential and commercial developments that popped up in the city over the past 11 years.
City council has not asked owners of existing properties to collectively pay more, even though individual tax bills have gone up and down since the final year Susan Thompson was Winnipeg's mayor.
Will city council freeze property taxes in 2009?
Nobody knows, but Mayor Sam Katz and the rest of council's centre-right executive policy committee -- who will determine next year's operating budget -- are not big fans of tax increases.
Although Katz has publicly mused about raising property taxes if the province and feds do provide the city with new sources of growth revenue, this mayor has staked his reputation on fiscal conservatism.
More recently, St. Norbert Coun. Justin Swandel, city council's new finance chairman, has pledged to do whatever it takes to avoid a property tax increase.
When will I hear about my new assessment?
The city started mailing out the first of 200,000 residential assessment notices in October, when West Kildonan, Old Kildonan and inner-city residents should have received them in the mail. St. James and Charleswood homeowners received their letters earlier this month, while the rest of the city will get their notices in January and February.
What if I don't like my assessment because I think the city made a mistake?
Let the city know. You can discuss your assessment with city staff in person at five open houses, the first of which runs today until Thursday at Heritage Victoria Community Club at 950 Sturgeon Rd., from 1 p.m. to 8 p.m. The dates of future open houses are listed on the city's website, winnipeg.ca
Do you mean they can change my assessment right on the spot?
Not exactly. But at this stage of the assessment cycle, city staff do have the power to make changes if they learn they have made a mistake. For example, Karpa recently heard from a Charleswood homeowner who complained her $380,000 assessment was too high, considering her property backs on to the noisy Perimeter Highway. One week later, her assessment was ratcheted down to $330,000.
So all I have to do is talk to the city if I have a problem?
Yes, but only do so if you have a legitimate beef. So far, the city has mailed out almost 55,000 preview letters and has only 159 files open, Karpa said.
How long do I have to gripe about my assessment?
If you have your preview letter, do it right away. Right now, the investigation backlog is only about a week. Things will get hairier in the new year when the rest of the preview letters are mailed out.
The absolute latest you can contact the city is the end of the winter, when city assessors begin preparing your property tax notices, which will be mailed out in July. "If we haven't heard from you by March of next year, we're almost out of time," Karpa says. "We can't be making adjustment to the roll, the day before notices go out."
And what if I miss that deadline?
After you get your final notices in July, you can appeal your assessment to the city's Board of Revision. But it's much easier to deal with the issue now, while adjustments can be made that do not involve a quasi-judicial body.
bartley.kives@ freepress.mb.ca
ASSESSMENTS UP
From 2003 to 2008, the value of Winnipeg homes increased by 78 per cent, based on the median increase in the assessed value of a every residential property in the city.
But not every part of Winnipeg enjoyed the same amount of growth. And the highest growth -- 117 per cent -- took place in the inner city, which happens to have the cheapest-selling homes in the city.
Here's a region-by-region breakdown of values for houses, duplexes and condos in Winnipeg, along with the median increase in those values over the past five years:
TRANSCONA Average sale price as of April 1: $184,500
Median increase from 2005: 77 per cent
NORTH KILDONAN & EAST KILDONAN
Average sale price as of April 1: $173,000
Median increase from 2005: 86 per cent
OLD KILDONAN & WEST KILDONAN
Average sale price as of April 1: $191,600
Median increase from 2005: 83 per cent
INNER CITY
Average sale price as of April 1: $104,500
Median increase from 2005: 117 per cent
ST. JAMES
Average sale price as of April 1: $188,500
Median increase from 2005: 76 per cent
CHARLESWOOD
Average sale price as of April 1: $252,700
Median increase from 2005: 78 per cent
TUXEDO, RIVER HEIGHTS & WOLSELEY
Average sale price as of April 1: $235,100
Median increase from 2005: 81 per cent
FORT GARRY
Average sale price as of April 1: $271,200
Median increase from 2005: 74 per cent
OLD ST. BONIFACE & ST. VITAL
Average sale price as of April 1: $172,900
Median increase from 2005: 83 per cent
NEW ST. BONIFACE & ST. VITAL
Average sale price as of April 1: $262,300
Median increase from 2005: 69 per cent
Source: City of Winnipeg, department of assessment & taxation
Cell Phones Go public this month.
REMINDER .... All cell phone numbers are being released to telemarketing Companies and you will start to receive sale calls. YOU WILL BE CHARGED FOR THESE CALLS To prevent this, call the following number from your cell phone: 1 866-580-3625 or 888-382-1222. It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years. You must call from the cell phone Number you want to have blocked. You cannot call from a different phone number. Or you can do it online (for ALL of your phones) at www.lnnte-dncl.gc.ca
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