Raj Dhaliwal (MyAbbotsford.Com)

Abbotsford ranks number four on a list of top cities and towns in B.C. for real estate investment according to a report released by the Real Estate Investment Network.

The report, called Top British Columbia Investment Towns 2011, analyzes the current and future prospects for real estate investment opportunities in the province, and identifies the top regions that will outperform in the coming decade.

Abbotsford finished just behind Surrey, Maple Ridge/Pitt Meadows and Kamloops. Real Estate Investment Network's findings are based on analysis of the latest statistics, economic and social trends and reports from its research staff, along with statistics from Canadian Mortgage and Housing Corporation, Statistics Canada, Multiple Listing Service, Canadian Home Builders Association, regional real estate boards and more.

The study looked at several factors like:

Is the area’s population growing faster than the provincial average?

Are new infrastructures being built to handle that growth?

Is the area creating new jobs and taking steps to maintain current employment levels?

Will the city benefit from an economic or real estate ripple effect?

Has political leadership created an economic growth atmosphere?

Are there major transportation improvements in the works?

Recognizing the need for investor-owned housing in communities with post secondary institutions, RBC Royal Bank recently expanded its mortgage programs for student tenanted properties. Universities often have insufficient student housing and rely on this type of accommodation for incoming students.

Financing these properties can be challenging as many financial institutions have policies that restrict lending on student tenanted properties. RBC Royal Bank® has responded to this need by creating solutions for clients who wish to purchase a property for student tenants. Clients can now finance up to 70% of the purchase price.

In addition, for parents considering purchasing a property for children attending college or university out of town, RBC Royal Bank also has a mortgage solution for their needs. These properties are viewed as second homes (when the income from any additional tenants is not needed to qualify for mortgage financing). This distinction allows parents to borrow up to 95% of the value of the property using a default insurer or 80% of the value for conventional mortgage purposes.

For more info talk to RBC mortgage specialist.

According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity held steady in March 2011 compared to February. Sales of existing homes in Canada during the first quarter reached its highest level in a year due mostly to the voracious demand for houses in Vancouver and Toronto.

Recent changes to mortgage regulations may have caused a number of sales in some of Canada’s more expensive housing markets to be brought forward into the first quarter that would have otherwise occurred later in the year.

Strong sales in metro Vancouver market helped push the average home Prices across the country up 8.9% in March from a year earlier. If Vancouver is excluded from the equation, the national average price increase is cut by more than half to 4.3 per cent.

The strong Canadian Dollar has helped the Bank of Canada to keep interest rates on hold for quite some time now. But the central bank's latest quarterly forecast suggests that cushion provided by higher currency value can’t last forever. The central bank’s projections, released Wednesday, indicate that economy will grow at 2.9 per cent this year, half a point faster than it estimated in January. As well, the economy will return to full capacity in just over a year, six months earlier than previously thought. Bank’s projections also include an assumption that the loonie could trade above parity for years, and also reinforce the notion that interest rates will rise, even though that could boost the currency still higher. The bank's next scheduled date for an interest rate announcement is on May 31, 2011. If the Bank of Canada decides to increase the interst rate it should be only .25% and it is not expected to have a very negative impcat on Abbotsford Real Estate market.

British Columbians are the most vulnerable to financial shocks such as higher interest rates or an economic downturn, according to a new report by TD. This mostly due to high debt-servicing levels residents face due to an expensive real estate market. B.C. is also the only province to have a negative savings rate, as every available dollar is directed toward mortgage and other debt or living costs. B.C. has the highest debt-to-income ratio in the country, at 160.5 per cent. Alberta is second at 143.2 per cent, while the Canadian average is 127 per cent.

Most vulnerable are low-income folks who have big mortgages with no money down and a 40-year amortization. For the Vancouver market, TD expects home sales to decline nine per cent and prices to drop 1.4 per cent in 2011.