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Posted Jun 6, 2008, 11:46 AM
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Sarcstic Caper in Exile
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Join Date: Mar 2004
Location: Calgary
Posts: 3,112
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Thursday, June 5, 2008
Cape Breton Post
Someone needs to do their homework a little better (I'm being generous).
Quote:
Real estate prices reflecting boom market a misfit for Cape Breton
Section: Comment
Column: Letters to the editor
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In recent years, Canada's housing market has been booming. Western Canada, in particular, has seen the largest area of growth, with housing sales and starts in Alberta up nearly 60 per cent since the turn of the century. Central Canada has also witnessed its real estate market jump through the ceiling.
The biggest reason for growth in the real estate market of these areas is an increase in population due to the overwhelming availability of employment. It's a simple case of supply and demand.
As a result of this national housing boom, local real estate companies have seized the opportunity to create the illusion that the Cape Breton Regional Municipality is part of this trend. In reality, this couldn't be further from the truth.
As with most economic trends in our country, we in Cape Breton are the exception to the rule. The oil patch and Yonge Street may be two expansive pieces of land filled with opportunity, but, unfortunately, even they aren't large enough to extend to Cape Breton.
Out-migration from CBRM remains the reality of the times. According to a recent report by Doug Foster of CBRM's planning department, the population is down roughly 9,000 since 2001. By 2011, the number is expected to grow to nearly 17,000.
Most of these people represent an age range of 19-31 years, a key demographic of first-time homeowners. Despite this trend in out-migration, the average price of a home in CBRM has jumped 15 to 20 per cent in the past two years. Where's the demand coming from? This simply doesn't add up.
Due to these inflated numbers, many prospective homeowners who remain in CBRM have been priced out of owning a decent home. On the rare occasion that highly paid professionals and their families move into the area, some of these overpriced homes may become affordable due to that family's average household income. Many real estate companies would lead you to believe that this supports the trend of increased housing prices. In reality, this situation does not represent the true demographic of prospective home buyers in CBRM.
Despite a recent drop in mortgage rates, indications are that a cool-down in the national real estate market is imminent. Since the New Year, even Canada's most desirable real estate market, Calgary, is down 40 per cent. Until real estate companies in CBRM begin to accept this reality, overpriced land and dwellings will remain unpurchased fixtures in the market for months on end.
Craig Seward
Sydney
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The old report prepared for Doug Foster (in 2004) predicted a loss of 9,000 by 2006, the actual loss was 3,402. In order to have lost 9,000 to this day since 2001, we would have had to lose almost 3,000/year over the past two years...I don't think I'm the only one who finds that highly unlikely.
Housing starts are up significantly since the turn of the century, as are housing sales. Prices in CB are still very much a steal, despite the increases seen recently. Houses aren't sitting on the market long, unless they're a) drastically overpriced or b) in terrible condition...essentially the same reasons they would stay on the market for a long time anywhere else.
Quote:
The Q has landed
Exciting time in Cape Breton
Section: Sports
The Quebec Major Junior Hockey League Session and Draft has finally opened in Sydney and surrounding areas following months of planning and preparation.
"It's hard to believe that after all of the hard work and dedication from countless people and supporters, the draft and annual session is finally here," said Anita DeLazzer, draft committee co-chair. "This is an exciting time for our area and we hope that fans come out to share in this positive event."
Fans are encouraged to take in two main draft events open to the public - the top prospects presentation and the draft itself - both free of charge.
The Savoy Theatre in Glace Bay will host the draft's top prospects presentation Friday, starting at noon. Fans will have the opportunity to check out the highest ranked up-and-coming players expected to be drafted in 2008.
And Centre 200 in Sydney will host the main event - the draft - Saturday, starting at 10 a.m., though the doors will be open one hour earlier at 9 a.m.
The draft will see QMJHL teams working hard to create winning line-ups and build their teams' strength.
"The top prospects presentation and the draft will showcase some of the top young hockey players in the country," said draft co-chair Donnie Morrison.
"To be hosting this high-calibre event right in our backyard is something we should be proud of. Fans will get to witness one of the happiest moments in the lives of these young men and that is priceless."
Kristen Mauger, a Grade 6 student at Gowrie Memorial School in Port Morien and the winner of the draft's Contest for the Kids drawing and colouring competition, will receive a Cape Breton Screaming Eagles jersey and four VIP seats at the draft, not to mention getting her photo taken with the No. 1 one draft pick.
More than 500 local students in grades 3 through 6 entered the contest and all entries will be displayed at the draft.
Fans attending the draft are asked to use either the front or rear entrance of Centre 200. Those with draft accreditation - volunteers, media, league and team representatives, players and their families - are asked to use the players' entrance at the back of Centre 200.
The draft committee is asking fans to wear their hockey jerseys at the draft's public events as a show of support for the draft and its participants.
"This is the first time this event is being held in Nova Scotia so we have a bit of an example to set," said DeLazzer.
"This week is the culmination of thousands of hours of work by our local people. I am confident that even more of the Cape Breton community will come out to support the draft at the public events and help us show the rest of the country that we are a first-class choice to host world-class events."
And DeLazzer said the draft couldn't have happened without local volunteers.
"Volunteer response from the community has been outstanding," she said.
"It has been so great that there are actually a number of volunteers we have not been able to utilize. One reason for that is the great number of bilingual volunteers that were needed. Having more than enough volunteers is very rare but again shows the community support we have had and we sincerely thank all those that have agreed to help out."
According to the draft committee, the draft is expected to give the local economy a $2 million boost.
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Some Port Hawkesbury news
Quote:
Port Hawkesbury council approves stand-pat budget
Section: Front
By Tom Ayers, CAPE BRETON POST
Town council has approved a stand-pat budget that maintains this year's residential property tax rate at last year's level and includes only a modest spending increase.
The commercial tax rate, set during budget deliberations Tuesday, went up by nine per cent to cover the province's mandated reduction in the business occupancy tax and to counteract a drop in overall commercial assessment in the municipality due to two major businesses that successfully appealed its assessments.
An increase in residential assessment combined with the commercial rate increase will mean the town's revenues from taxes will increase this year by about 8.9 per cent. However, with all of the other changes in the budget, including expected reductions in transfers from other governments, overall spending will only go up by 1.6 per cent.
Mayor Billy Joe MacLean said this year's budget doesn't contain too many new items.
"It's not all that different from last year," he said.
And the drop in commercial assessment is not a concern, he added, because Port Hawkesbury's ratio of commercial-to-residential tax revenues is one of the highest in the province, at roughly 45/55.
The 2008 residential property tax rate remains steady at $1.80 and the commercial rate rose from $3.77 last year to $4.11 this year.
MacLean said council discussed a suggestion to shift some of the increasing commercial tax burden onto residential property owners, but the idea was rejected.
"Actually, that was a suggestion of mine, but after a comparison of all the towns and looking at the commercial and residential rate compared to everyone else, we're in about the 50 per cent range," he said.
"If you look at in the province as a whole, on the tax rates we're 14th highest of 34 towns on commercial and 15th highest of 34 towns on residential," said Jim Davis, the town's director of finance.
MacLean said council had heard that a business was considering moving to the outskirts of town to take advantage of lower tax rates, which sparked some concern.
"We had rumours that one of our major businesses was going to do that, but didn't," he said, declining to name the company. "And one that I will name, Home Hardware, moved into town because of the increase in traffic."
As it turned out, Port Hawkesbury's commercial potential is in pretty good shape,
MacLean added, especially with improved infrastructure such as sewer, water and sidewalks, and recent positive financial news from NewPage Corp. and its Point Tupper paper mill.
tayers@cbpost.com
Budget breakdown
Port Hawkesbury town council approved a stand-pat budget, Tuesday, maintaining the tax rate for residential property owners. Council also increased the commercial tax rate to compensate for the province's phasing out the business occupancy tax and to counter a drop in commercial assessment. The town also had a surplus of $117,217.40 last year, which will help this year's budget. Overall spending is up by $111,714 this year, which is a 1.6 per cent increase over last year.
This year's budget, with last year's numbers in parentheses:
Total residential assessment: $118,566,700 ($115,348,900)
Total commercial assessment: $56,318,800 ($61,409,900)
Residential tax rate: $1.80 ($1.80)
Commercial tax rate: $4.11 ($3.77)
Total expenditures: $7,199,080 ($7,087,366)
Source: Jim Davis, director of finance
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