There are things you can do to help sell your home faster.
1. Check your curb appeal Drive down your street and view the front of your home. Make sure the outside is as attractive as the inside. Weed, cut the grass, edge the beds and drive, trim the hedges and plant flowers. Next, paint or power-wash your siding to give it a fresh appearance.
2. Make a great first impression When it comes to selling a house, a good first impression can actually mean more money, so make sure the entryway is impeccable. Sweep the porch, dust the door, wash the windows, vacuum the mats -- give potential buyers a warm welcome.
3. De-clutter There should be no clutter. All miscellaneous items should be removed or stored on shelves in attractive baskets. In the kitchen, clear the refrigerator of pictures, drawings and magnets. In fact, remove everything personal -- family photos, keepsakes, tchotchkes. Leave surfaces empty, with maybe one dramatic decorative piece as an accent. Your home will appear more spacious and open, which are key selling benefits.
4. Clean and/or paint Walls should be freshly painted or, at a minimum, the trim should be touched up and clean. Chipped and peeling paint, scratches and dings on the walls can give the impression the home is not well cared for.
5. If it's broke, fix it Ensure it is all in working order, especially when it comes to faucets, fixtures and drawers -- anything that's easy for people to test.
6. Tidy behind closed doors Clean and organize your cabinets, drawers and closets. Yes, people will open them, and they'll form an opinion.
7. Look at it through a visitor's eyes Be prepared to do the work on your home before listing it. After that, a critical eye is your best tool. Walk through your home and check every room to make sure it's clean and uncluttered.
And, when it comes to an open house or private tours, step aside and allow your Realtor to show the home and answer any questions.
FOR IMMEDIATE RELEASE - from the desk of AMALIA LIAPIS
The political elections in Europe went as expected, the parties who promised MORE won but it is doubtful they will be able to keep most of their promises as they are so far in debt that there is simply no more to give. Markets worldwide went down as the reality of the results sunk in, more instability & market volatility over the next few months. Hollande, the new President of France, is already making his presence felt & could put the Franco-German relationship under threat. The last socialist president of France, Mitterand, nationalized the Banks & imposed a wealth tax. Hollande has already stated he will introduce a 75% tax on the wealthy, so maybe the banks are next. The wealthy are usually the wealth makers so they will leave France like they have done previously & like they have done in other countries when overtaxed. I seem to remember the Beatles leaving England after they were given an award in the Queen’s Honors list for bringing in so much foreign money in from their records sales etc. Then the Government introduced a wealth tax that sent the Beatles & most other high earning entertainers overseas; some never to return.
Greece appears to be in total confusion with no clear winner & this could result in further decline of Greek prospects of recovery. It was hopeless anyway. Rating agencies are still closely looking at the sovereign & bank risks in Europe. I believe we should expect further downgrades in Spain, France & Greece.
So what about our Vancouver Real Estate market?! Well to begin with we are still awaiting the Finance Minister to introduce an incentive package for First Time Buyers of New Condos. Developers screamed loud enough with the HST issue that this package looks like it might just become reality. It is expected to get voted around June 2012 and is only available until March/April 2013. This will help the new condo market.
I’ve been saying it for a couple of years now…Gastown is the favourite neighbourhood to live in…not a lot of product and what comes up for sale is usually gone quickly. The downtown condo market will remain steady though out the summer with an emphasis on the entry level purchases. Westside homes continue to be active with steady activity in the $5million and up market. Price and location will bring immediate results but the general market is still price sensitive...off by $10,000 or $20,000 and there will be little interest from Buyers. It’s still a buyer’s market overall but have to say the available inventory is rather average.
Home sale and listing activity has maintained a consistent pace on the Mul- tiple Listing Service® (MLS®) in Greater Vancouver in recent months, which has helped create balanced conditions for the region’s housing market.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,799 on the Multiple Listing Service® (MLS®) in April 2012. This represents a 13.2 per cent decline compared to the 3,225 sales recorded in April 2011 and a decline of 2.6 per cent compared to the 2,874 sales in March 2012.
April sales were the lowest total for the month in the region since 2001 and 16.9 per cent below the 10-year April sales average of 3,369.
“Although April sales were below what’s typical for the month, we continue to see, with a sales-to-active listing ra- tio of nearly 17 per cent, a balanced relationship between buyer demand and seller supply in our marketplace,” Eugen Klein, REBGV president said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,056 in April 2012. This represents a 3.6 per cent increase compared to both March 2012 when 5,843 homes were listed and April 2011 when 5,847 homes were listed for sale on the region’s MLS®.
Last month’s new listing total was 6.7 per cent above the 10-year average for listings in Greater Vancouver for April. At 16,538, the total number of homes listed for sale on the region’s MLS® increased 8.5 per cent in April compared to last month and increased 16 per cent from this time last year.
“Recent activity has had a stabilizing effect on home prices at the regional level, although pricing can vary depend- ing on area and property type,” Klein said “To best understand conditions within your area of interest, it’s important to do your homework and consult a local REALTOR®.”
The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $683,800, up
3.7 per cent compared to April 2011 and an increase of 2.8 per cent over the last three months. The benchmark price for all residential properties in the Lower Mainland is $612,000, which is a 3.4 per cent increase compared to April 2011 and a 2.6 per cent increase compared to three months ago.
Sales of detached properties on the MLS® in April 2012 reached 1,126, a decline of 19.7 per cent from the 1,402 detached sales recorded in April 2011, and a 17.8 per cent decrease from the 1,370 units sold in April 2010. The benchmark price for detached properties increased 6.3 per cent from April 2011 to $1,064,800.
Sales of apartment properties reached 1,190 in April 2012, a decline of 0.9 per cent compared to the 1,201 sales in April 2011, and a decrease of 22 per cent compared to the 1,526 sales in April 2010.The benchmark price of an apart- ment property increased 1.1 per cent from April 2011 to $375,900.
Townhome property sales in April 2012 totalled 483, a decline of 22.3 per cent compared to the 622 sales in April 2011, and a 21.6 per cent decrease from the 616 townhome properties sold in April 2010. The benchmark price of a townhome unit increased 1.7 per cent between April 2011 and 2012 to $487,300.
1) Home Buyers’ Plan Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time. Canada Revenue Agency www.cra.gc.ca. Enter ‘Home Buyers’ Plan’ in the search box. 1.800.959.8287
2) GST Rebate on New Homes New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000. Canada Revenue Agency www.cra.gc.ca. Enter ‘RC4028’ in the search box. 1.800.959.8287
3) BC New Housing Rebate (HST) Buyers of new or substantially renovated homes priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $42,500. Homes priced at $850,000+ are eligible for a flat rebate of $42,500. www.hstinbc.ca 1.800.959.8287
4) BC New Housing Rebate (HST) for Secondary Vacation or Recreational Homes Buyers of new or substantially renovated secondary or recreational homes outside the Greater Vancouver and Capital Regional District priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portion (7%) of the 12% HST paid to a maximum rebate of $42,500. Homes priced at $850,000+ are eligible for a flat rebate of $42,500. www.hstinbc.ca/buying_goods/buying_a_home/new_ home_tax_calculator 1.800.959.8287
5) BC New Rental Housing Rebate (HST) Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion (7%) of the 12% HST, up to $42,500. www.hstinbc.ca 1.800.959.8287
6) BC First-Time New Home Buyers’ Bonus First-time new home buyers may be eligible for a one-time grant equal to 5% of the purchase price of the home, or if you are building a home, 5% of the land and construction costs, up to $10,000. The bonus is based on the net income of the home buyer. This program ends March 31, 2013. www.sbr.gov.bc.ca/documents_library/notices /FTHB_Bonus.pdf 1.877.387.3332
7) BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000. BC Ministry of Small Business and Revenue www.sbr.gov.bc.ca/business/Property_ Taxes/Property_Transfer_Tax/ptt.htm 250.387.0604
8) First-Time Home Buyers’ Tax Credit (HBTC) This federal non-refundable income tax credit is for qualifying buyers of detached, townhome, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2011) x $5,000. For the 2011 tax year, the maximum credit is $750. Canada Revenue Agency www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/369/menu-eng.html 1.800.959.8281
9) BC Home Owner Grant Reduces property taxes for home owners with an assessed value of up to $1,285,000. The basic grant gives home owners: • a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts; • an additional grant of $770 to rural homeowners elsewhere in the province; and • an additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars. BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/hog or contact your municipal tax office.
10) BC Property Tax Deferment Programs
Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes.
Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes.
Property Tax Deferment Program for Families with Children. Qualifying low-income home owners who financially support children under age 18 may be eligible to defer property taxes.
11) Canada Mortgage and Housing (CMHC) Residential Rehabilitation Assistance Program (RRAP) Grants. This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites. www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm 1.800.668.2642 | 604.873.7408
12) Home Adaptations for Independence (HAFI) A new program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low-income seniors and disabled home owners and landlords to finance modifications to their homes to make them accessible and safer.
BC Housing www.bchousing.org/Options/Home_Renovations 604.646.7055 or toll-free 1.800.407.7757 extension 7055
13) CMHC Mortgage Loan Insurance Premium Refund Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations. www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno 604.731.5733
14) Energy Saving Mortgages Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage, may qualify for a rebate of $300 to their RBC account. www.rbcroyalbank.com/products/mortgages/ energy-saver-mortgage.html 1.800.769.2511
15) Low Interest Renovation Loans Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 rebate on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution.
16) LiveSmart BC: Efficiency Incentive Program Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with FortisBC and BC Hydro. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider. www.livesmartbc.ca/rebates 1.866.430.8765
17) BC Residential Energy Credit Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST. www.sbr.gov.bc.ca/business/consumer_taxes/residential_ energy/residential_energy.htm 1.877.388.4440
21) BC Hydro Mail-in Rebates/Savings Coupons To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone. Check for new offers and for deadlines. www.bchydro.com/rebates_savings/coupons.html 1.800.224.9376
22) FortisBC Rebate Program A range of rebates for home owners include a $50 rebate for upgrading a hot water tank, $300 rebate on an Ener-Choice fireplace and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system. www.fortisbc.com/NaturalGas/Homes/Offers /Pages/default.aspx 1.888.224.2710
23) FortisBC Efficient Boiler Program For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits. www.fortisbc.com/NaturalGas/Business/ Offers/Pages/default.aspx 1.888.477.0777
24) City of Vancouver Rain Barrel Subsidy Program The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency. http://vancouver.ca/engsvcs/watersewers/water/ conservation/programs/rainbarrel.htm 604.736.2250 Other municipalities have similar offers.
25) City of Vancouver Greenest City 2020 Pilot Home Energy Loan Program The City of Vancouver in cooperation with Vancity, FortisBC, BC Hydro and Natural Resources Canada offers access to loans for energy retrofits including heating systems, insulation and air sealing. The Home Energy Loan from Vancity is a 12 month pilot program that will end October 21, 2012. For more information attend a workshop (see third link below). The goal is 500 homes, and loans are offered at 4.5% fixed rate over 10 years. The program also helps with accessing grants from the federal ecoENERGY program, the provincial LiveSmart BC program and FortisBC.
26) Vancity Green Building Grant In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies. The deadline for applications was January 23, 2012. If you are still interested in this grant, open the link and consider contacting Vancity to express your interest. www.vancity.com/MyCommunity/NotForProfit/Grants /ActingOnClimateChange/GreenBuildingGrant 604.877.7000
27) Local Government Water Conservation Incentives Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.
28) Local Government Water Meter Programs Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.
April 5, 2012, Real Estate Board of Greater Vancouver Article
FOR IMMEDIATE RELEASE - From the desk of AMALIA LIAPIS
About 3 weeks ago I noticed a change in the Vancouver market – things went relatively quiet.
Looking forward into the summer I predict the general market will continue that trend. What that means is that there will continue to be moderate activity overall. The properties that are receiving the most amount of attention are homes on the East Side of Vancouver in the $1,000,000 range (and yes this is considered good value). Any property; house, townhome or apartment that is on waterfront (or with a great view) and priced well is getting immediate attention. Vancouver West homes from $3,000,000 and up are selling steadily. But it all comes down to price so if the property has any shortcomings then an adjustment in price will be needed to gain a buyers interest.
World activities have had an effect on the real estate markets as well. Recent manufacturing data out of China indicates that the economy is still contracting, however at a slower rate than previously expected. The political problems in Europe continue to surface as seen in the resignation of the Dutch cabinet over night & the weekend’s French election result. These events together with some weaker economic data saw the European markets tumble & Bond rates rose. The sovereignty risk rose in Greece, Spain & Italy when government control was weakened through political unrest. The Dutch problem arose last week when Fitch said it would put Holland (AAA) on ratings review if the government failed to take action to cut their budget deficit & stop their debt from rising. Now Holland will head to elections, earlier than expected, after 7 weeks of negotiations among the ruling coalition parties on budget cuts of Euro 14billion collapsed on Saturday. The Dutch economy is feeling the pinch including a housing market slump. Sounds familiar. Greece, Ireland & Spain revisited? Italy & Portugal?
Most European countries are living well above their means, especially those with pensions, welfare & unemployment benefits. Those earning incomes don’t want earn less through paying more tax in order to help keep these benefit payments at the same level. Who is going to pay? There is no short term fix & so far the decisions made amount to just kicking a can down the road. The debt remains as long as the will to reduce it to manageable levels falls into the political too hard basket. One step at a time, Europe will unravel. The first step could come from the French as they desert their president Nicolsas Sarkozy for a socialist government who would not cooperate with German Chancellor Angela Merkel in keeping Europe afloat. Sarkozy & Merkel have been the glue to keep the Euro together as most other leaders have only been interested in their own problems.
US reporting season continues & this is going well but not standout unless you are one of the favored Tech companies like Apple & Microsoft. GE & McDonalds were also better than expected. Investors have been disappointed with some of the Banks & some of the guidance given for future quarters. Despite its debt worries, the US market has outperformed the ASX thanks to QE1 & QE2.
Overall it’s the worry about Europe that keeps the US market on its toes. Everybody seems to be watching someone in today’s market & just shows what a small world we live in.
Closer alignment between home buyer and seller activity helped to bring greater balance to the Greater Vancouver housing market in February.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2, 545 on the MLS System in February 2012. This represents a 61.4 per cent increase compared to the 1,577 sales recorded in January 2012, a decline of 17.8 per cent compared to the 3,097 sales in February 2011 and a 2.9 per cent increase from the 2,473 home sales in February 2010.
February sales in Greater Vancouver were the third lowest February total in the region since 2002, though only 151 sales below the 10-year average.
“With a sales-to-active-listings ratio of 18 per cent, we fairly balanced conditions in our marketplace as we move into the traditionally busier spring season,” Rosario Setticasi, REBGV president said.
New listings for detached, attached, and apartment properties in Greater Vancouver totalled 5,552 in February 2012. This represents a 2.5 per cent decline compared to February 2011 when 5,693 properties were listed, and a 3.5 per cent decline compared to January 2012 when 5,756 homes were added to the MLS in Greater Vancouver. Last month’s new listing count was the second highest February total in Greater Vancouver since 1996.
At 14, 055, the total number of residential property listings on MLS increased 12 per cent in February compared to last month and increased 17.9 per cent from this time last year.
“Region-wide we’ve seen relative stability in home prices over the last six months, but it’s important to do your homework and consult your REALTORS because pricing can vary considerably depending on the neighbourhood and property type,” Setticasi said.
The MLS HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900 up 6 per cent compared to February 2011 and an increase of 0.9 per cent compared to January 2012. The benchmark price for all residential properties in the Lower Mainland is $601,300 an increase of 5.5 per cent compared to February 2011.
Sales of detached properties on the MLS in February 2012 reached 1,101 a decline of 21.5 per cent from the 1,402 detached sales recorded in February 2011, and a 12 per cent increase from the 983 units sold in February 2012. The benchmark price for detached properties increased 10.5 per cent from February 2011 to $1,042,900.
Sales of apartment properties reached 1,020 in February 2012, a decline of 15.4 per cent compared to the 1,206 sales in February 2011, and a decrease of 5 per cent compared to the 1,074 sales in February 2010. The benchmark price of an apartment property increased 2.8 per cent from February 2011 to $373,300.
Townhouse property sales in February 2012 totalled 424, a decline of 13.3 per cent compared to the 489 sales in February 2011 and a 1.9 per cent increase from the 416 townhouse properties sold in February 2010. The benchmark price of a townhouse unit increased 0.7 per cent between February 2011 and 2012 to $472,800.
March 12, 2012 REBGV Article available online at http://www.rebgv.org/news-statistics/greater-vancouver-housing-market-trends-near-long-term-averages-spring-market
The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®.
Investing 101 Novice investors took plunge on becoming landlords in small-town British Columbia
Investors: Professional working couple
Investment: Rental condo
Strategy: Buy, rent out, sell
Time frame: 4 years
Bought for: $50,000
Rented for: $400 per month
Sold for: $85,000
First time investing can feel a little intimidating in the beginning. As a young professional couple, we questioned whether investing was a smart idea at all.
We worried about risking our savings and taking out another mortgage. If we had extra finances, why not use it to pay down our current mortgage? We were concerned about finding the right property to invest in. How far would we need to travel to get something in our price range? How would we know if we were getting a good deal? Then we knew we'd have the ordeal of finding good tenants and maintaining a property from afar. With both of us being academics, rather than handy or businesslike, these were real concerns.
Yet , we saw that real estate had the potential of bringing in a better return on our investment than did our measly 2.5 per cent "high-interest" savings account. WE could keep a property short term and bring in a chunk of money to apply to our next real estate purchase or another investment.
Where to start?
To start, you need to decide what to invest in and how much moeny you want to put into it. In our case, as people who generally avoid risk, we decided on finding something we could afford, where the rent would pretty much pay for the mortgage. For us to feel secure, that meant looking for out-of-town older residential apartments.
Finding a property
Finding an area was our first challenge. We looked at small towns with properties in our price range, and tried to locate places where big companies were moving to, growth was projected and residential vacancy rates were low. We choose Kimberley, B.C., which had opened a ski resort and had an airport close by. The only problem.... it was 12 hours away.
This meant we had to get pre-approved with a good mortgage broker who could act from afar if necessary. We also had to check out what had been selling, what the average prices where and what units were renting. And finding a good realtor was essential. We phoned and emailed a couple before settling on one we believed we could trust. By the time we visited, we were in good position to view suites of interest to us and make offers on any good deals we saw.
We wasted some time getting distracted by nicer places rather than what we could afford. On the other hand, it was still important to do the work to find a unit that would be easy to rent at decent rate. So, we spent a lot of time understanding the area, looking for an accessible building with a great location and amneties nearby. After viewing several units, we found the one we wanted to make an offer on. We made sure to do our due diligence: read the strata minutes, walked the suites, got a home inspector in, talked to neighbours and collected as much information as we could. Eventually, we bought a 600- square foot condo on the ground floor of a low-rise building, which was walking distance to town centre and a short drive from the ski hill.
Expenses
We were surprised by all the costs we hadn't anticipated with our investment property. In the end, the rent we received did not cover our costs and we had to subsidize it by about $100 per month when the suite was rented, and $500 when it was not. Think about how much you are able to put into this at the beginning and throughout. At the outset, consider not only the down payment, mortgage and legal fees, but any potential upgrades you may require to attract a higher rent. On an ongoing basis, remember you'll need to cover strata fees, maintenance, insurance, property taxes (with no homeowner's grant). Also, we found city utilities in a small town astronomical compared with our residence in the city. In addition, don't forget to set aside money for emergencies - months when your unit sits vacant when a tenant bails, replacing appliances, or special levies. And don't forget about capital gains tax when you sell.
Tenants
To attact a good rental income, you want to make your apartment as appealing as possible to tenants. This can mean getting it properly cleaned, painted and perhaps replacing cupboards or appliances that our outdated to give your suite an edge over others in the building. We lucked out by finding a relaiable person to check our suite between tenants, and a good affordable painter.
Although we could have directly managed the tenants, we decided to get some help as we were so far away. During the four years we owned the suite, we had three different rental experiences - a rental pool and two different proerpty managers. In the rental pool, several units pooled their rents together and then split it proportionally (by square feet), regardless of whether units were rented or not. This allowed for a regular income stream, but in the end felt frustrating to those whose units were always rented.
Management
Finally, we found an excellent solution - an independent property manager. He charged us 10 per cent of the rent, but found us a tenant who never left. He also had excellent relationships with service providers, including a plumber, electrician and carpenter, so repairs could be quickly handled. Having the property manager gave us the peace of mind that our property was being looked after.
Our strata also voted on being able to communicate and vote electronically if necessary. Above all, we found that one of the best methods to ensure that our unit was looked after was to show extra apprecaition to everyone involved.
Cashing out
In the end, no matter how pleasant your situation is, you are still looking to make money on your investment. For us, as we saw prices rising, we allowed our place to sit vacant, got it repainted again and put it on the market. After four years, we decided it was time to liquidate our investment property. We made quite a good profit, something that never could have happened in four years with a savings account.
Overall, buying and selling our first investment property was a scary but exhilarating process. This experience gave us the confidence that we can buy and sell real estate. In the end, we made a chunk of moeny we never would have if we didn't take the risk, and look forward to taking the plunge again.
Article taken from January 2012 Edition of Western Investor (www.westerninvestor.com)
The Province has announced that it will reinstate the combined 12 per cent PST and GST tax system, a process it expects to take a minimum of 18 months. The Ministry of Finance has established an action plan to guide the transition to the PST. This includes:
a process to develop HST transition rules; and
a process to develop legislation and regulations to re-implement the PST.
The anticipated target date for the switchover is March 31, 2013. "During the transition period, the provincial portion of the HST will remain in place at seven per cent," explains Finance Minister Kevin Falcon. "The PST will be reinstated at seven per cent with all permanent PST exemptions and will not be applied to items such as restaurant meals, haircuts, bikes and gym memberships – just as it was before the HST was introduced in BC," says Minister Falcon.
Businesses collecting the PST will need to change their electronic and manual systems and processes to assess, collect, report and remit the PST and other related taxes to the provincial government.
FOR IMMEDIATE RELEASE – From the Desk of AMALIA LIAPIS
While the balance between home buyer and seller activity remains in an equilibrium range in the Greater Vancouver housing market, last month’s home sale total was below the 10-year average for July.
The Real Estate Board of Greater Vancouver reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service reached 2,571 in July, a 14 per cent increase compared to the 2,255 sales in July 2010 and a 21.2 per cent decline compared to the 3,262 sales in June 2011.
We’re seeing less multiple offer situations in the market today compared to the last few months, but homes priced competitively continue to sell at a relatively swift pace. It’s taking, on average, 41 days to sell a property in the region, which is unchanged from June of this year.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,097 in July. This represents a 23.2 per cent increase compared to July 2010 when 4,138 properties were listed for sale on the MLS and a 12 per cent decline compared to the 5,793 new listings reported in June 2011.
Last month’s new listing total was 8.6 per cent higher than the 10-year average for July, while residential sales were 17.3 per cent below the ten-year average for sales in July. At 15,226, the total number of residential property listings on the MLS increased 0.8 per cent in July compared to last month and declined 7.3 per cent from this time last year.
The number of homes listed for sale in the region has increased each month since the start of the year, which is giving buyers more selection to choose from and more time to make decisions. The MLSLink Housing Price Index benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 9.2 per cent to $630,251 in July 2011 from $577,074 in July 2010.
Sales of detached properties on the MLS in July 2011 reached 1,099, an increase of 21 per cent from the 908 detached sales recorded in July 2010, and a 31.9 percent decrease from the 1,614 units sold in July 2009. The benchmark price for detached properties increased 13.3 per cent from July 2010 to $898,886.
Sales of apartment properties reached 1,040 in July 2011, a 6.2 per cent increase compared to the 979 sales in July 2010, and a decrease of 39.1 per cent compared to the 1,708 sales in July 2009. The benchmark price of an apartment property increased 4.5 per cent from July 2010 to $405,306. Attached property sales in July 2011 totalled 432, a 17.4 per cent increase compared to the 368 sales in July 2010, and a 45.5 per cent decrease from the 792 attached properties sold in July 2009. The benchmark price of an attached unit increased 6.9 per cent between July 2010 and 2011 to $524,909.
Moving forward to our Fall market, I expect an increase in housing/land prices and a stable condo/townhome market. The exception will be view properties, which will see a significant spike in demand and pricing in an increasingly competitive market.
Canadian markets didn’t get much of a summer vacation this week, as negotiations on the Greek bailout package took centre stage globally, while the Bank of Canada’s interest rate decision was the main event at home. On balance, an agreement on a second Greece bailout, combined with some positive corporate earnings reports, improved market sentiment and helped equity markets rally. A more hawkish-than-expected statement from the Bank of Canada (BoC) added fuel, initially taking bond yields higher, and the Canadian dollar along with them. After a benign inflation report for June on Friday, however, these moves were partially unwound.
As expected, the BoC left interest rates unchanged, but the accompanying statement was more hawkish than anticipated. The Bank dropped the word “eventually” from the statement “some of the considerable monetary policy stimulus currently in place will be [eventually] withdrawn”, leading markets to move up their timetable on rate hikes. However, Wednesday’s Monetary Policy Report (MPR), included two technical boxes that emphasized the case for leaving rates lower for longer. One explained how interest rates can remain stimulative even after inflation has reached its target and the output gap is closed. This occurs if the economy is facing significant headwinds, such as a persistent reduction in foreign demand for exports. Governor Carney reiterated that monetary policy is not some mechanical process whereby you input expected inflation and the output gap, and out comes a rate decision (in fact if that were the case, he wouldn’t have a job). Rather, the Bank takes into account what he characterized as “the very real headwinds from the dollar, the U.S., from Europe”. This is likely in response to some critics who argue the bank is at risk of getting behind the curve on inflation.
The other technical box in the MPR underscored the damaging effects of a strong Canadian dollar on some sectors of the economy, expanding on the responses in last week’s Business Outlook Survey. Nearly half of firms surveyed reported adverse impacts from a stronger dollar, and these firms tended to be less optimistic about their future prospects. Adverse effects were more common among manufacturers, and firms based in Central or Eastern Canada. In sum, the survey showed that headwinds from a strong C$, and continued softness in U.S. demand are constraining sales prospects over the next 12 months for firms not benefitting from high commodity prices.
The Bank is clearly focused on the danger of hiking prematurely, and then having one of these risks worsen. It would be very difficult to raise rates before January, because in all probability they would want data on how Q3 evolved, and confirmation of firmer U.S. demand. Friday’s release of Canadian CPI and retail sales reports showed there is little urgency for the Bank to restart rate hikes. June inflation came in softer-than-expected, and retail sales were flat in real terms, confirming that there is little scope for retailers to raise prices with debt-fatigued consumers reining in spending. All told, our expectation for the Bank to delay resuming rate hikes until January remains in tact.
On July 13, Economics issued a report predicting a 10.2% decrease in the housing market over the next two years.
The economists specifically focused on Vancouver and Toronto saying that they will experience an even larger decrease ...with a whopping drop of 14.8 % for Vancouver.
Among the twelve major markets profiled in this report, Vancouver and Toronto look poised for larger-than-average declines over the next few years, reflecting in part their exposure to the condominium segment, which appears particularly ripe for a correction.
The rationale for this prediction is ...
A combination of more subdued job and household income growth, rising interest rates, the recent tightening in borrowing rules for insured mortgages and fewer first time home buyers are expected to be the chief culprits behind the slowdown. With most of these drivers expected to remain supportive to housing demand in the very near term, we anticipate that the brunt of this adjustment will take place in 2012 and into 2013.
A section of the report focused specifically on Vancouver with the title reading:
VANCOUVER - THE HOUSING MARKET THAT HAS ALL EYES WATCHING
With Vancouver consistently making all the Top 10 best city lists, it is little wonder that our housing prices are amongst the highest in Canada.
The predictions focus on the higher than average housing prices, condos and foreign investment factors that have driven the prices up.
Vancouver has been the poster child for those individuals worried about a real estate bubble here in Canada. We expect that Vancouver will post modest economic growth accompanied by subdued job and income gains. Interest rate hikes will be felt in Vancouver likely more than other places due to the fact that household debt levels are the highest across the country.
With this economic climate, we foresee a 25.4% peak to- trough decline in sales and 14.8% in prices over 2012-13, by far the worst fate of any urban centre. Still, the path to correction will likely transpire over seven to eight quarters. What's more, just as some of the recent increase has reflected a shift in the composition in sales towards higher priced homes, normalization in the sales mix going forward will disproportionately weigh on average prices. At the expected through in 2013, the average resale price is expected to sit at $675,000 - nearly double the national number and that of most other urban centres.
I hope you find this information beneficial! Please feel free to call me any time.
VANCOUVER, B.C. – July 5, 2011 - Home sellers outpaced buyers on Greater Vancouver’s Multiple Listings Service® (MLS®) in June, drawing the market back toward balance this summer. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 3,262 in June, a 9.8 per cent increase compared to the 2,972 sales in June 2010 and a 3.4 per cent decline compared to the 3,377 sales in May 2011.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,793 in June. This represents a 4.5 per cent increase compared to June 2010 when 5,544 properties were listed for sale on the MLS® and a 2.3 per cent decline compared to the 5,931 new listings reported in May 2011.
Last month’s new listing total was 9.8 per cent higher than the 10-year average for June, while residential sales were 7.3 per cent below the ten-year average for sales in June. “With sales below the 10-year average and home listings above what’s typical for the month, activity in June brought closer alignment between supply and demand in our marketplace,” Rosario Setticasi, REBGV president said. “With a sales-to-active-listings ratio of nearly 22 per cent, it looks like we’re in the upper end of a balanced market.” At 15,106, the total number of residential property listings on the MLS® increased 3.1 per cent in June compared to last month and declined 14 per cent from this time last year.
The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 8.7 per cent to $630,921 in June 2011 from $580,237 in June 2010. “The largest price increases continue to be in the detached home market on the westside of Vancouver and in West Vancouver,” Setticasi said. Since the end of May, the benchmark price of a detached home rose more than $147,000 on the westside of Vancouver and over $80,000 in West Vancouver. Detached home prices in Richmond, however, levelled off slightly, declining $25,000 in June.” Sales of detached properties on the MLS® in June 2011 reached 1,471, an increase of 29.1 per cent from the 1,139 detached sales recorded in June 2010, and an 11.8 per cent decrease from the 1,667 units sold in June 2009. The benchmark price for detached properties increased 13.4 per cent from June 2010 to $901,680.
Sales of apartment properties reached 1,266 in June 2011, a 0.6 per cent increase compared to the 1,258 sales in June 2010, and a decrease of 29.3 per cent compared to the 1,790 sales in June 2009. The benchmark price of an apartment property increased 3.5 per cent from June 2010 to $405,200. Attached property sales in June 2011 totalled 525, an 8.7 per cent decrease compared to the 575 sales in June 2010, and a 34.5 per cent decrease from the 802 attached properties sold in June 2009. The benchmark price of an attached unit increased 6 per cent between June 2010 and 2011 to $522,424.
If you’re thinking of selling your home, or you simply want to spruce it up, exterior renovations can significantly increase its value and curb appeal. Aside from more expensive undertakings such as new roofing and siding, there are some projects you can take on yourself, such as creating attractive flower beds or purchasing a new front door. With each project completion, you will be happier with your home, and increase its appeal to buyers when it comes time to sell!
There are a few recent changes (June 16, 2011) to the MLS Areas/Boundaries of which people should be aware.
New sub-area boundaries have been implemented for the False Creek area of Downtown Vancouver. What was previously termed "False Creek North" will find itself under the new heading of "Yaletown".
The original "False Creek" boundaries have been expanded to cover the area at and around the Olympic village site.
It is good to see Yaletown has received its own classification within the MLS system - it is a distinctive neighbourhood in Downtown Vancouver. I expect to see similar changes for other areas soon (Gastown).
If you are running your own searches, please remember to use the new categories. If you receive automatic listing searches via email from Amalia Liapis or use the preconfigured searches on this website, the criteria have already been adjusted.
VANCOUVER, B.C. – Vancouver saw a typical, solid month of residential home sales on the MultipleListing Service in April, in contrast to the near record pace witnessed in the two preceding months.
The Real Estate Board of Greater Vancouver reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 3,225 in April 2011, an 8.2 per cent decrease compared to the 3,512 sales in April 2010 and a 21 per cent decline compared to the 4,080 sales in March 2011.
Looking back further, last month’s residential sales represent an 8.8 per cent increase over the 2,963 residential sales in April 2009, relatively unchanged compared to April 2008, and a 4.8 per cent decline compared to the 3,387 sales in April 2007.
While it continues to be a seller’s market (Detached) in Greater Vancouver, last month’s activity brought greater balance between supply and demand in the overall marketplace,the REBGV president said. The year-over-year decline in April sales can be attributed to a less active condominium market on our MLS, as there were more detached and townhome sales this April compared to last year.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,847 in April 2011. This represents a 23.5 per cent decline compared to April 2010 when 7,648 properties were listed for sale on the MLS, which was an all-time record for April. Compared to March 2011, last month’s new listings total registered a 14 per cent decline.
At 14,187, the total number of residential property listings on the MLS increased 8.2 per cent in April compared to last month and declined 10 per cent from this time last year.
There’s considerable variation in activity within the communities in our region. This is causing home price trends to differ depending on the area.
The MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5 per cent to $622,991 in April 2011 from $593,419 in April 2010.
Sales of detached properties on the MLS in April 2011 reached 1,402, an increase of 2.3 per cent from the 1,370 detached sales recorded in April 2010, and a 17.8 per cent increase from the 1,190 units sold in April 2009. The benchmark price for detached properties increased 7.4 per cent from April 2010 to $879,039.
Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property Sales of apartment properties reached 1,201 in April 2011, a 21.3 per cent decrease compared to the 1,526 sales in April 2010, and an increase of 1.9 per cent compared to the 1,179 sales in April 2009. The benchmark price of an apartment property increased 2.9 per cent from April 2010 to $409,242.
Attached property sales in April 2011 totalled 622, a 1 per cent increase compared to the 616 sales in April 2010, and a 4.7 per cent increase from the 594 attached properties sold in April 2009. The benchmark price of an attached unit increased 2.4 per cent between April 2010 and 2011 to $514,670.
In the coming Summer months we should continue to see the strong activity of Westside Detached homes. I believe we will see a strong increase of activity in Apartments and Townhomes. For those who are considering a purchase in this sector of the market…now is a good time to buy.
In the City of Vancouver, the situation had reached the point where eight per cent of all properties (commercial) paid more than 50 per cent of the property taxes, explains Bob Laurie, cochair of the Vancouver Fair Tax Coalition (VFTC).
In 2009, the VFTC successfully convinced Vancouver City Council to approve a one per cent tax shift to residential properties from non-residential properties.
Since then, the City of Vancouver has shifted property tax by one per cent each year to residential from commercial, a gradual correction of the long-standing inequity. Laurie estimates savings for Vancouver businesses include:
- a tax reduction of $155 for a business property valued at $783,000; and
- a collective saving of more than $5.5 million each year.
Attracting investment, jobs and workers
To attract investment, local governments throughout the Real Estate Board area are rezoning to create denser, walkable, lively urban hubs close to transit.
Who are they trying to attract? Talented younger adults ages 25 – 29 and known as the Millennials, who are well-educated and highly skilled, and much-needed in our knowledge-based economy.
"It’s part of the shift in our local labour market as baby-boomers age and retire," says Andrew Ramlo, Executive Director at Urban Futures Inc. And they're having a significant effect on the future prosperity of our communities.
Where do the Millennials want to live? “Downtown,” says Ramlo.
To attract and retain the Millennials, cities throughout the Lower Mainland are rethinking former approaches to planning for economic development.
What Millennials like most, explains Ramlo are higher density, mixed use, walkable, green, lively neighbourhoods with businesses, restaurants, transit and parks just steps away.
A closer look at the downtown area of Vancouver reveals the effect of the Millennials - even taking into account that between 15 and 20 per cent of buyers in the downtown area are retirees and empty nesters who have sold larger properties and are moving back downtown.
What happens as downtown residents age? After age 35, when babies have grown to toddlers, they are more likely to move to suburban locations, according to Ramlo, but they also still want their neighbourhoods to have a vibrant urban feel and be walkable, interesting and attractive.
A tale of two downtowns – it goes both ways
- No. of workers who live in Richmond and work in Vancouver: 18,530
- No. of workers who live in Vancouver and work in Richmond: 22,880
Urban workplace = recruiting tool
What happens when a company wants to move downtown, but the neighbourhood is faded – the opposite of the urban vibrancy so popular with the Millenials?
Some companies like Telus create their own neighbourhood. Although the zoning still requires approval, Telus plans to relocate its national headquarters downtown in a one million square foot, $750 million project that will revitalize a fading block of prime real estate bordered by Georgia, Robson, Seymour and Richards Streets.
The proposed Telus Garden will include:
- 500,000 square feet of new office space in a 22-storey tower for multiple tenants built to the new 2009 Leadership in Energy and Environmental Design (LEED) Platinum standard; and
- 500 new residential units in a 44-storey tower, built to the LEED Gold standard which will be one of the highest buildings in Vancouver and include retail and a wellness centre with a meditation room.
"Our vision is a beautiful and unique location where leading-edge technology, urban living, environmental sustainability and tomorrow’s work styles are integrated into a vibrant community”, says Darren Entwistle, TELUS president and CEO.
The development will consume 30 per cent less energy, making Telus a significant contributor to Vancouver's goal of becoming the greenest city in the world.
It will also feature 10,000 square feet of green roofs providing organic produce for local restaurants, two elevated roof forests, British Columbia artwork, LED lighting projecting programmable coloured images onto glass, and media walls where cultural events such as symphony concerts can be broadcast.
The project’s construction will inject a much-needed hundreds of millions of dollars into our local economy and create three million person-hours of employment during construction, scheduled to begin this fall and be complete in 2015, according to Entwistle.
Once occupied, the site's business and residential tenants will contribute up to $10 million annually in new tax revenue to the city.
With more than 100 restaurants, the seawall, an aquatic centre and upscale retail shops and groceries within blocks, it’s clear Telus has made talent attraction and retention a key part of its business strategy.
On behalf of RE/MAX of Western Canada, I would like to congratulate you on your outstanding individual performance on completed transactions for the month of September.
We appreciate the hard work and dedication to your clients. Sales Associates like yourself add to our image and give meaning to our trademark "RE/MAX. Outstanding Agents. Outstanding Results".
Recovery on the economic front will go hand in hand with retail and office investment in 2011, as developers cautiously brush off plans for towers downtown and improved housing starts boost demand in the suburbs for retail projects.
But this year will be characterized by hard bargaining on prices and incentives as doubts remain about the depth and speed of the economic recovery.
While Metro Vancouver retail remains "the most sought-after property type" in Canada, according to a third-quarter report by Avison Young, sales tallies are off across the board from the second quarter as activity slowed in the second half of 2010 to the lowest level since the first quarter of 2009.
Overall investment sales totalled $527.3 million in the third quarter of 2010, including $68.8 million worth of office deals and $143.7 million worth of retail sales.
Those deals include South Surrey's South Point Exchange, which sold to a private investor for $91 million, and Bosa Development Corp.'s sale of Semiahmoo Shopping Centre to First Capital Realty Inc. for $82.7 million - both driven by strong growth in surrounding residential communities.
But the deals also highlight the shift from the bargain-taking deal-making that characterized the first half of the year to a strategic rejigging of portfolios in the second half that heralds more stable conditions as owners prepare for the long term.
Based on interviews in the third quarter, Colliers International reported that 61 per cent of investors were looking to expand their portfolios, down slightly from six months earlier when 65 per cent were looking to expand. On the other hand, approximately 22 per cent were looking to rebalance.
Close to two-fifths of respondents attributed the shift in emphasis to a desire to shift asset classes, while other key factors were linked to advantages to be gained from location, liquidity and leverage. Approximately 17 per cent were looking to trade up or trade down and 6 per cent were looking to increase leverage.
A further 28 per cent refused to disclose the reasons for rebalancing their portfolios, but the several factors point to a hunkering down for the long term in the face of lacklustre growth for the year ahead.
This covers any costs in the gap between closing dates and first mortgage payment. Avoid or minimize this by arranging the closing date and first payment to be exactly one month apart.
Mortgage Insurance
This is often required by lenders if your payment is 20 per cent or less.
Home Inspection
The average cost is roughly $100 per hour, but some inspectors may charge by size or flat fee packages.
Survey Certificate
If there is not one available and your bank requires one, expect to pay anywhere from $750 - $1500.
Legal Costs
These will vary greatly, depending on who you choose to use, but expect to pay anywhere from $1000 to $3000.
Property Appraisal
This may be required by your lender, however it is often included as part of the mortgage package (or broker service). If it is not, expect to pay $100-250 dollars.
Home Insurance
Cost will vary greatly, as will the services offered.
Vendor Reimbursements
This covers the costs of items paid for in advance by Seller, such as taxes or hydro.
Land Transfer Tax
Property purchase tax must be paid for any property to be transferred to a new owner.
Condo Costs
Parking or storage may incur a seperate monthly fee. There are often move in or elevator fees. Review the bylaws and minutes beforehand.
