Nov 2018 Real Estate Report


So the Nov 2018 Real Estate Numbers are out now.  Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 


Last month’s sales in Nov was a 42 % decrease from the same month last year and 18 percent decrease from Oct 2018


 Home buyers have been taking a wait-and-see approach for most of 2018. This has allowed the number of homes available for sale in the region to return to more typical historical levels.  This activity is helping home prices edge down, across all property types, from the record highs we’ve experienced over the last year.


For new inventory hitting the market in November, sellers have also been holding off listing there home for-sale.  As the sellers are also taking the wait and see approach.   November new listings totalled 3461 which was a 15% decrease compared to Nov 2017, and 29% decrease from the previous month. Total inventory however is still 40 percent higher compared to the same month last year.


For all property types, the sales-to-active listings ratio for November 2018 is 13.1 per cent. By property type, the ratio is 8.9 per cent for detached homes, 14.7 per cent for townhomes, and 17.6 per cent for apartments


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 


Home prices have declined between four and seven per cent over the last six months depending on property type. We’ll watch conditions in the first quarter of 2019 to see if home buyer demand picks up ahead of the traditionally more active spring market.


Detached home sales in November 2018 reached 516, a 38.6 per cent decrease from the 841 detached sales recorded in November 2017. The benchmark price for detached homes is $1.5 million. This represents a 6.5 per cent decrease from November 2017 and a 1.6 per cent decrease compared to October 2018.


Apartment home sales reached 810 in November 2018, a 46.3 per cent decrease compared to the 1,508 sales in November 2017. The benchmark price of an apartment property is $667,000. This represents a 2.3 per cent increase from November 2017 and a 2.3 per cent decrease compared to October 2018.


Attached home sales in November 2018 totalled 282, a 36.8 per cent decrease compared to the 446 sales in November 2017. The benchmark price of an attached home is $818,000 This represents a 2.6 per cent increase from November 2017 and a 1.3 per cent decrease compared to October 2018.


So Which areas have dropped the most?  I usually look at 3 month trends.  


For detached homes, Ladner had the biggest price change over the last 3 months from a benchmark price of $949,000 with a decrease of 6%.  Followed by Pitt Meadows  with benchmark price of $894,000  with 5.0% decrease and Burnaby East with a benchmark price $1.2 Million with a 4.9% decrease.  


For Condos the biggest price drop is was Wistler with a benchmark price of $551,000 at 8% decreases followed by Coquitlam with a benchmark price of $522,000 at 5.5% Decrease and Burnaby South with benchmark price of $689,000 with a 4% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $830,000 with a 7%  decrease over 3 months, followed by Tsawwassen with a benchmark price of $739,000 with a 6.9% decrease followed by Ladner at $769,000 with a 6% decrease.     


So if I was a buyer I would look into those areas.  If you are in the market to buy a home I always recommend following sold prices and the news.   This makes it much easier for you to spot a good investment opportunity.   Check out this detached home located in the Oakridge area.  It is a 65 x 120 lot asking $2.79 Million with a tax assessment value of $3.48 Million.  


Or this Old timer in Dunbar asking $2.28 Million which was sold in April of 2017 for $2.6 Million with a current tax assessment value of $2.59 Million.  


In regards to selling your home, sellers who are willing to price their homes at under its current market value are still getting a lot of interest.  I see some sellers testing the market listing their detached homes in the south burnaby area for 1 million dollars then immediately raising there asking price to market value.  


Question of the day, What will the Spring 2019 Real Estate Market look like?  Answer in the comments below.  I will personally respond to all the comments myself. 


Read full post

 

Selling Tenant Occupied Property


Are you planning to sell your tenanted investment property? 


Selling a tenanted occupied property can be very difficult.  Especially if the tenant is uncooperative.  Watch this video as I go over the 7 tips you should know about before listing your tenant occupied property for sale.


  1. Check when if the tenancy is a fixed tenancy or month to month tenancy.  In a fixed tenancy neither party can break the tenancy, and the new buyer needs to take over the tenant.  On a month to month tenancy if the property does get sold, the new buyer can serve notice in good faith to occupy the unit. 2 months notice must be given to the tenant.  
  2. Have a discussion with your tenant that you are thinking about selling your property, and discuss a viewing schedule that is fair to the tenant.  Remember you need to give 24 hour notice for each viewing.   Open houses should be agreed upon with your tenant as well.   
  3. Check the terms of your rental lease.  If it is a fixed term tenancy and it is not up, consider what the market will be like selling a tenant occupied property.  Most buyers in the luxury space are looking to purchase a property to move into.  They are not looking to become landlords.  The perfect properties to sell as tenanted properties are houses that are selling at land value and 1 bedroom condos that are listed at market value. 
  4. The tenant maybe be present at open houses and showings.   
  5. Your are not allowed to stage the property unless the tenant allows you to. 
  6. If a tenant unreasonably refuses access to show the unit or provides misleading or inaccurate information to prospective buyers, the landlord could, serve 1 months notice to end the tenancy. 
  7. Compensation to end any tenancy agreement shall be one months rent. 


Question of the day, would you consider selling your property with a tenant or wait till the tenant has moved out?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 
Unwritten Oakridge Westbank Vancouver Presale
 

I just visited the Unwritten VIP Oakridge Realtors Event by Wesbank.  If you are curious about Presales in Vancouver watch this video as this one is located at Oakridge Centre.


Many Presales across Vancouver requires VIP access.  Watch this video as I walk thru the Westbank Unwritten Oakridge Project.


The Unwritten project is located at Oakridge Centre, at the corner of 41 st ave  and Cambie.  Its is also beside rapid transit, Oakridge 41 st station. 


Unwritten project is all about creating a living city.  It will have a beautiful park, live music and entertainers every week.  This project will surround itself by nature, retail, public art and incredible catteries.  It will also be a complete transformation of Oakridge Mall.   They also have a BMX bike share program and also partnered with apple to bring home technology to the next level.  The kitchen will be the central hub for fine dining.  It will feature 20 chefs bringing you Devine dishes from all over the world.  


Oakridge will be the home for about 6,000 residents and the workplace of 3,000 workers.  The estimated completion is year 2025.


The sizes of the units range 629 square feet for a 1 bedroom, 1029 square feet for a 2 bedroom, and 1961 square feet for a 3 bedroom.  The prices start from $900k for a 1 bedroom, 1.43 million for a 2 Bedrooms, and 3 million dollars for a 3 bedroom.  


The floorpans have been very well laid out.  With the most luxurious features and style. 


So there you have it the Unwritten project in Vancouver.  If you have any interest in this project please feel free to reach out to me, private client viewings are coming up very soon.  VIP buyers will get first selection, registration is required.    


Question of the day, what do you think of the Unwritten project at Oakridge?   Would you buy a presale in this market?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 
HELOC POLICY CHANGE CANADA STRESS TEST 
 

TD and Royal bank just made a change to borrowers who have a Home Equity Line of Credit or Heloc.   Stay tuned as I will discuss all the details.


Home equity lines of credits or HELOCS are line of credits secured against your home.  These lines of credits were promoted by banks to one stimulate more borrowing and two to secure your mortgage business.  When you have a HELOC it costs about $300 to discharge it.


On Nov 5th,  TD and Royal bank have decided to stress test your credit limit on your HELOC when you are planning to get a new mortgage on an investment property.   This even applies if you have a zero balance on your existing HELOC.  The reason they are doing this is because the banks have no idea if or when you will advance the entire balance of of your HELOC. 


How will this affect the Vancouver Real estate market?  

Since its introduction in Canada.  In year 2000 the outstanding balance was at 35 billion, in 2016 that balance has grown to about 211 billion.  Many buyers and real estate investors use these HELOCS as downpayment to secure a mortgage and used HELOC money as deposits for presales.  If anybody plans on securing a new mortgage who already has a HELOC in place good luck.  And remember the stress test has already cut your purchase power by 20% since its implementation this year.  


Is there a work around?  Yes of course.  This new policy change is only happening with TD and Royal Bank. But I have a feeling the other big banks will follow soon.   So if you intend to get a new mortgage I would suggest

  1. Don’t apply for a new mortgage with TD or Royal Bank.
  2. IF you have a HELOC that you are not using, close that account. 
  3. If you have a HELOC balance consider closing the account and refinance your mortgage. 


Question of the day, do you think this HELOC Policy Change will affect the real estate market?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     



Read full post

 

CONDO FLIPPING REGISTRY 


THE BC Government just announced a Condo Flipping registry that will take into effect Jan 1, 2019, stay tuned as I will discuss all the details.


When I attend presale purchasing events across Metro Vancouver  a large majority of the people there are real estate investors.  With Presales these investors would most likely flip these properties for a small profit.  After all the only investment the investor had to make was to come up with the deposit payment.  


  In the past most buyers  of presales who had the intention of flipping their property may have done so without reporting the capital gains to CRA.   Also the buyers of the presale assignments may have reported the property value incorrectly when it came time for completion.  Some buyers of assignment contracts may have reported the original purchase price not the assignment purchase price to the land title office, thus avoiding the payment of the extra property transfer tax and GST.    With the implementation of this new Condo Flipping Registry this will force the Assignor to report the correct capital gains amount, and the assignee to report the correct purchase price.  The developer will also be forced to collect information for the registry. 


For individuals:


  • Full legal name
  • Date of birth
  • Citizenship information. For individuals who are not Canadian citizens or permanent residents of Canada as defined in the Immigration and Refugee Protection Act, the foreign country or state of citizenship
  • Tax identifiers: Social Insurance Number (SIN) or Individual Tax Number(ITN)
  • Residency status for federal income tax purposes
  • The postal address, and
  • The principal residence address of the individual. If the postal address and the principal residence address are the same, provide it only once
  • Phone number
  • Email address, if applicable


For Corporations: 


If the proposed party to an assignment is a corporation:

  • The legal corporation name
  • The 9-digit business number (BN) assigned by the Canada Revenue Agency (CRA)
  • The head office address
  • Information about an individual who can be contacted on behalf the corporation to answer questions about the assignment agreement. The information about the individual includes:
    • Name
    • Postal Address
    • Phone number
    • Email address, if applicable


Also the developer must collect details about the assignment contract.

  • Date of the purchase agreement
  • The unit number, the strata lot number and the parcel identifier (PID) of the strata lot need to be reported, if ascertainable
  • Date of developer’s consent date to the assignment agreement
  • Effective date of the assignment, if it can be determined, and if different from the developer’s consent date
  • Assignment fee paid to the developer for the consent
  • Purchase price of the strata lot. The purchase price includes any amendments to the purchase agreement or subsequent assignments, including any upgrades or prior “lifts” (the increase in value of the strata lot assigned)
  • Assignment amount. This is the amount payable to the assignor for the assignment and it is commonly referred to as a “lift”
  • Reimbursement of the deposit paid. This is the amount payable to the assignor for the deposit paid to the deposit trustee 

So there you have it.  If you are an assignor or an assignee you need to know about this new condo flipping registry. 


Question of the day, do you think this registration will reduce the amount of presale flipping?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


For further information on the details of this BC Condo Flipping registry visit the BC Government website here 




Read full post

October 2018 Greater Vancouver Real Estate Report





So the Oct 2018 Real Estate Numbers are out now and they are really spooky.  Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 


Last month’s sales in Oct was 26.8 per cent below the 10-year Oct sales average and 34.9% decrease in sales for the same month last year.  This represents a 6 year low.  


 The supply of homes for sale today is the beginning to return to sales levels of about 4 years ago.  For home buyers this means you have more selection to choose from.  For sellers it means your home may face more competition from other properties on the market.  


Also compared to the same month last year Inventories have increased 42.1 percent over all property types.


For all property types, the sales-to-active listings ratio for OCT 2018 is 15.1 per cent. By property type, the ratio is 10.3 per cent for detached homes, 17.3 per cent for townhomes, and 20.6 per cent for condominiums.


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 


Home prices have come down between three and five per cent, depending on housing type, in our region since June.  This is providing a little relief for those looking to buy compared to the all-time highs we’ve experienced over the last year.


Sales of detached properties in OCT 2018 reached 637, thats a 32.2 per cent decrease compared to the same month last year.  The benchmark price in greater vancouver for detached properties is now at $1,524,000. This represents a 5.1 per cent decrease from Oct 2017 and a 3.9 per cent decrease over the last three months. 


Sales of apartment properties reached 985 in Oct 2018, a 35.7 per cent decrease compared to the same month last year. The benchmark price of an apartment property is $683,500. This represents a 5.8 per cent increase from Oct 2017 and a 3.1 per cent decrease over the last three months. 


Attached property sales in October 2018 totalled 344, a 37.5 per cent decrease compared to the 550 sales in Oct 2017. The benchmark price of an attached unit is $829,200. This represents a 4.4 per cent increase from Oct 2017 and a 2.8 per cent decrease over the last three months. 


So Which areas have dropped the most?  I usually look at 3 month trends.  


For detached homes, Burnaby East had the biggest price change over the last 3 months from a benchmark price of $1.25 million with a decrease of 5.6%.  Followed by West Vancouver  with benchmark price of $2.76 million with 5.4% decrease and Pitt Meadows with a benchmark price $908,000  with a 4.9% decrease.  


For Condos the biggest price drop is was West Vancouver with a benchmark price of $1.15 million at 6.3% decreases followed by Maple Ridge with a benchmark price of $363,000 at 5.7% Decrease and Pitt Meadows with benchmark price of $514,000 with a 5.1% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $833.200 with a 6.7%  decrease over 3 months, followed by Port Coquitlam with a benchmark price of $646,400 with a 5.8% decrease followed by Vancouver West at $1.23 Million with a 4.4% decrease.     


So if I was a buyer I would look into those areas.  If you are in the market to buy a home I always recommend following sold prices and the news.   This makes it much easier for you to spot a good investment opportunity.   Like a property like this town house in the marpole area, 


Asking $1,679,000, Sold 31-Aug-2017 $1,800,000, Tax Assess $1,747,000.  1,767 sq ft. "Only 1 year old beautiful CORNER townhome built by Intracorp features 3 bedrooms & 2.5 bathrooms, A/C, direct access to 2 secured parking spaces, a beautifully landscaped yard." 


Or This Penthouse loft in Gastown 

Asking $1,139,000, with a Tax Assessed value of  $1,271,000. "It features Amazing views above historic Gastown, over looking the North Shore Mountains, water and Vancouver's beautiful Harbour" 


The presale market still seems to be hot right now, with projects continuing to be launched regardless of the slow down in the market.    West Bank Oakridge centre is getting ready to launch at the starting price is $2600 per square foot.  Richmond, Burnaby ,Surrey presale prices, are averaging about $1000 per square feet to $1200 per square feet.   If you are interested in the Richmond Paramount Project check out my last blog post. 


In regards to selling your home, sellers who are willing to price their homes at under its current market value get a lot of interest.  The buyers are out there, they are just all waiting for a modest price correction.  


Question of the day, Where do you think the prices are headed across greater vancouver?  Up or Down?  Answer in the comments below.  I will personally respond to all the comments myself. 

Read full post

 

Presale Condo Pre-inspection Walk Thru


Did you buy a presale condo recently?  Do you know what to expect at a presale inspection walk thru?


Buying a presale in Vancouver is very popular.  Most of these presale projects get sold out within days.  But when its time to view your brand new unit many buyers are surprised by the amount of deficiencies that can be found.  Today’s I will show you 8 things to look for in a presale walk thru.   


  1. Uneven Paint and over paint
  2. Non Sufficient Caulking in washrooms and windows
  3. Settling and Cracks in Drywall
  4. Nail pops in the drywall.
  5. Scratches or imperfections on the flooring
  6. Fixtures not secured
  7. Cracks or Chips found on the countertops. 
  8. Check the floorpan - Make sure the unit is constructed as per the specifications of the floorpan you have purchased.  The developer has some leeway in regards to the size of the unit, it will mention this in your contract sometimes up to 5% SMALLER.  I have seen buyers expecting to view a 3 bedroom home that was purchased but the developer only constructed a 2 bedroom for them.  Or in another situation a 2 bedroom and den, became a 2 bedroom with an extra closet.  If you encounter this you should report this to the developer immediately. I also recommend having your lawyer drafting them up a letter asking for some sort of compensation.  


So after you have viewed the unit make sure to have the deficiencies  noted by the developer.  If you did not have them put the deficiencies in writing they will forget about them.  Also to note, the developer will still force you to complete the purchase of your unit regardless of the deficiencies you have found are complete or not.   


If you have any questions about this topic please feel free to reach out to me. 


Question of the day, would you buy a presale condo?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post


Paramount Richmond by Keltic -  VIP Client Event


I just visited the Paramount VIP Realtors Event by Keltic.  If you are curious about Presales in Richmond watch this video as this one is located right across Richmond centre.


Many Presales across Vancouver requires VIP access.  Watch this video as I walk thru the Paramount Project.


The Paramount Project is located Right across Richmond Centre, at the corner of No. 3 Road and Cook RD.  Its is also beside rapid transit, Richmond Bright house station. 


The paramount will have about 536 residential units, with 3, 15 storey towers, and one commercial office building. The estimated completion is year 2021.


The sizes of the units range from 425 sq ft – 1,075 sq ft.  With a starting price around the mid 300’s for a bachelor unit.  The 3rd floor is where the court yard is located.  It has a lush urban oasis with relaxing water features.  The buildings also have many curated luxuries such as a private dining room with a personal chef, wine room, indoor and outdoor dining areas, with state of the art Mclaren Racing Simulator, a movie screening room and exercise room.  Also if you have children they also have a child learning centre.  


The floorpans have been very well laid out.  Featuring Italian cabinetry, Miele appliances, quartz countertops and porcelain tilted bathrooms.  All units also have full air conditioning.


One thing I should add is that the residents at the paramount would have access to a lifestyle concierge.  That can look after the following, meals, shopping, housekeeping, dog walking, translation services, and driving lessons.  


So there you have it the Paramount Project in Richmond.  If you have any interest in this project please feel free to reach out to me, private client viewings are coming early November.  VIP buyers will get first selection, registration is required.    


Question of the day, what do you think of the Paramount Richmond?   Would you buy a presale in this market?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


 
Read full post

 

Speculation and Vacancy tax - 


The details of the BC Speculation tax has just been released.  Find out what you need to know about the tax, coming up next.


Many British Columbians own secondary homes.  Watch this video as I go over the 8 things you should know about the Speculation and Vacancy Tax.


  1. 2nd Home must be rented for a period of a minimum 6 months per year.
  2. Airbnb deterrent - since most short term rentals are for periods of under 30 days this new tax basically eliminates Airbnb from most of BC.  
  3. Yearly declaration is necessary to avoid paying this tax on your primary residence.
  4. BC Islands are exempt - B.C.’s islands are not part of the taxable area unless accessible by bridge, and reserve lands, treaty lands and lands of a self-governing Indigenous nation are also not part of the taxable region,
  5. This tax does not stop Real Estate Speculation ?  So you are free to purchase real estate and flip it for a profit.  Example condo Pre-sales and assignment of contracts. 
  6. Municipalities have been rejected the option to opt of the speculation tax.  Meaning locations such as Kelowna that depend on Alberta buyers can see their real estate market suffer. 
  7. How is the Tax calculated - For a BC Resident or PR who lives in BC, with a high world wide income and paying very little BC Income tax will be charged 0.5 percent. For owners who are Canadian citizens and permanent residents who do not live in B.C., the tax is one per cent of assessed value, minus the credit — or $6,000 for an $800,000 Vancouver condo.  For owners who are foreign investors or part of satellite families, the tax is two per cent of assessed value, minus the credit — or $14,000 for the $800,000 condo.
  8. Condos with rental restrictions are exempted from this tax.  Their are many other exemptions which I will link up in the description. 


So there you have the 8 things you need to know about the speculation tax.   If you have any questions about this topic please feel free to reach out to me.   


Question of the day, what do you think of this bc speculation tax?  Should the Green Party and liberals vote it down?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 

Mortgage Rates Today - October 2018


Planning to buy a home soon? Where are interest rates heading?  What are mortgage rates today?  


Buying a home is not getting any more affordable.  Yes prices are heading downwards across greater vancouver, but interest rates have gone up over the last 4 quarters. 

Affordability has not changed at all. 


I also expect the Bank of Canada to proceed with further rate hikes that will raise its overnight rate from 1.50 percent currently to 2.25 percent in the first half of 2019. This will keep mortgage rates under upward pressure and boost ownership costs even more across Canada in the period ahead.”


That would lift the prime rate to 3.95 per cent and suck more dollars from the pockets of variable-rate borrowers


“But remember A quarter of one percentage point isn’t a big spike in payments.  Based on a $200,000 to $300,000 mortgage, this might mean an increase of $20 per payment.”  


Also with variable rate mortgage with a deep discount over a 5 year average you should be low enough to beat a standard five-year fixed. But need something like prime rate minus 0.90 per cent or better. Variables also have friendlier penalties – usually just three months’ interest and ability to lock into a fixed mortgage product at anytime.   


With fixed rates the banks have been increasing lately, 

Scotia bank has recently increased its 5 year posted rate to 5.44, with the current mortgage qualifying rate at 5.34.


Do I see further fixed mortgage rate increases in the near future?


That all depends on the 5 year Canadian Bond Yield.  Oil prices have been crashing across Canada and our bond yield is currently at 2.5%.  Unless we see oil prices correcting and we surpass the 2.5% mark on Canadian bank yields.   I personally don’t see the 5 year fixed rates going up any further. 


So if I was a buyer in real estate now, I would recommend going with a variable mortgage with the largest discount you can find or a fixed mortgage at close to 3.4% or below. 


If you have any questions about this topic please feel free to reach out to me.   


Question of the day, where do you think rates are heading?  Up or down.  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 

Sept 2018 Real Estate Report


So the Sept 2018 Real Estate Numbers are out now, and it was the worst September in 27 years.  Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 



Last month’s sales in Sept was 36.1 per cent below the 10-year Sept sales average and 43.5% decrease in sales for the same month last year.


 The market in general has fewer active buyers, we’re seeing supply build up with every passing month because of the lack of sales.   The total supply of listings have risen to levels we had 4 years ago. Also compared to last year Inventories in general it has increased 38.2 percent over all property types.


For all property types, the sales-to-active listings ratio for September 2018 is 12.2 per cent. By property type, the ratio is 7.8 per cent for detached homes, 14 per cent for townhomes, and 17.6 per cent for condominiums.


Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 


“Metro Vancouver’s housing market has changed pace compared to the last few years. Our townhome and apartment markets are sitting in balanced market territory and our detached home market remains in a clear buyers’ market.  If this trend continues for the next few months I can see condos and townhomes dropping to buyers territory as well.   


Sales of detached properties in September 2018 reached 508, thats a 40.4 per cent decrease compared to the same month last year.  The benchmark price in greater vancouver for detached properties is now at $1,540,900. This represents a 4.5 per cent decrease from September 2017 and a 3.4 per cent decrease over the last three months. 


Sales of apartment properties reached 812 in September 2018, a 44 per cent decrease compared to the same month last year. The benchmark price of an apartment property is $687,300. This represents a 7.4 per cent increase from September 2017 and a 3.1 per cent decrease over the last three months. 


Attached property sales in September 2018 totalled 275, a 46.9 per cent decrease compared to the 518 sales in September 2017. The benchmark price of an attached unit is $837,600. This represents a 6.4 per cent increase from September 2017 and a two per cent decrease over the last three months. 


So Which areas have dropped the most?  I usually look at 3 month trends.  


For detached homes, Burnaby South  had the biggest price change over the last 3 months from a benchmark price of $1.59

 million with a decrease of 7.2%, Followed by Burnaby East with benchmark price of $1.25 million with 6.9% decrease and New Westminster with a benchmark price $1.12 million also at a 6% decrease.  


For Condos the biggest price drop is was Whistler with a benchmark price of $521,000 at 10% decreases followed by Squamish with a benchmark price of $482,000 at 9% Decrease and Port Coquitlam with benchmark price of $457,000 with a 6.5% decrease.  


For Townhomes, Vancouver West had a  benchmark price of $1.23 Million with a 5.7%  decrease over 3 months, followed by Vancouver East  with a benchmark price of $874,000 with a 5.4% decrease followed by Port Coquitlam at $660,000 with a 4% decrease.     


So if I was a buyer I would look into those areas.  If you are in the market to buy a home I always recommend following sold prices.   This makes it much easier for you to spot a good investment opportunity. 


In regards to selling your home, I noticed that sellers who are willing to price their homes at under its current market value get a lot of interest.  The buyers are out there, they are just all waiting for a modest price correction.  


Question of the day, Would do you think the prices are heading the greater vancouver market?  Up or Down?  Answer in the comments below.  I will make it an effort to personally respond to all the comments.   If you are in the market to buy I have linked up a playlist of helpful videos over here.


Read full post

 

What happens when you get your offer accepted as a buyer in real estate and walk away? Its called a breach of contract.


I just met up with a first time home buyer the other day, and they were writing an offer on a home.  They asked what would happen if they ended up walking away from the deal that ends up getting accepted.  In this video, I will discuss the 3 likely results, if you breach a real estate contract as a buyer.  


  1. The Deposit - when you write an offer in real estate most likely you would have put up a deposit in good faith to secure the contract for the home.  The deposit on a real estate contract is usually 5% of the purchase price.  This contract when agreed upon is firm and the deposits are non refundable.  Some times as a buyer things happen, maybe your mortgage fell thru before completion, or you just lost your job.  Another situation is that the market shifts in an extreme negative direction, and you would rather walk away from the deal than to complete it.  If you breach your real estate contract you would first lose your deposit.    
  2. Lawyer Fees - all real estate contracts involve a seller and a buyer.  If you walk away with any contract there will be penalties.  In most cases the seller will take you to court and you will end up spending money toward lawyer fees.  Remember, Lawyers are not cheap, at about $500 per hour.
  3. Equity loss -  the real estate market is up and down, once you have an offer accepted the seller puts the home on hold for you to complete the transaction.   Over this time period, the market could have shifted from a really good market for the seller to a really bad market for the seller.   An example could be a home that sold for $1.5 MILLION during a good market, but the same home is only worth $1.3 million during a bad market.  The seller can end up suing the buyer for that $200,000 difference.  


So the total penalties that can occur if you are unfaithful to your real estate contract is the loss of your deposit, the lawyer fees, and the total equity loss.


Question of the day, would you walk away from a real estate contract?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 

Open House tips for Buyers


Are you planning to visit an open house without an agent?  Do you know what to look for? 


Every weekend at open houses, I see buyers visiting open houses without their agents.  This got me thinking, did their agents coach them on what look for ahead of time?  


I will share with you 8 tips to successfully view open houses yourself.   


  1. The Space - Is the space adequate for your needs?   What about the back yard is it big enough.  Clever home staging can make you over look many things.  Such as does the home have a formal dining area?  This is especially true in Condos or small homes when they use small tables to represent dining areas or remove the dining area altogether to make the living room look larger and more comfortable.   I also recommend bringing a measuring tape with you as measurements are always approximate. 
  2. Any Upgrades - Ask the agent for a list of upgrades to the home. Then go and check the condition of items that have not been upgraded such as the roof or hot water tank.  
  3. Important documents - If it is a house, ask if the home has an oil tank in the past and if has a recent oil tank certificate indicating that no oil tank exists.  If it is a condo ask if there is any special assessments coming up and if there are any bylaws that may effect your enjoyment.   
  4. Don’t get too excited - Open houses may seem busy, but don’t be fooled, a certain percentage of visitors are nosy neighbours, and the other portion of viewers may not even qualify for a mortgage. 
  5. Listen for Noise - are they playing soft music in the background.  This could be hiding the fact that the street maybe noisy, or they have nosy neighbour.  Always check for noise even after the open house.
  6. Check the amenities - walk around the neighbourhood to check proximity to schools, transit, shopping and community centres.  If this is a condo double check the condition of the gym, party-room, parking and locker if any.  
  7. Take photos and notes - if you are visiting many open houses, make sure you take detailed notes.  If the agent allows it, feel free to take photos of any defects or problems you come across.  
  8. Contact Your Agent - If you like the property please contact your agent.  As the listing agent works for the seller, your agent will work for your best interests as a buyer.  Your agent will go over all the neighbourhood comps and figure out the best home purchasing strategy for you.  


So the thats it, if you have any questions about this topic please feel free to reach out to me.   


Question of the day, would you visit open houses by yourself?  Or would you go with your agent?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 

Home Ownership Canada


Are you renting?  Considering home ownership in Canada?   Thats whats coming up next!!


The mortgage professionals of Canada just published a report last week stating that owning a home is still cheaper than renting. That report looked at 266 scenarios across Canada.  In this video, I will discuss 3 of their findings.    


  1. Year over Year Rental Rate Increases - in Toronto, Burnaby, and Montreal one bedrooms rates increased up 15% from the year before.
  2. Ownership is more cost effective over time - excluding principle repayment, if mortgage rates at 3.25% over the next 10 years a renter would save $1295 per month.  If mortgage rates remained at 4.25% you would save $1014 per month and if 5.25% rates you would save $726 per month. 
  3. Mortgage qualification - with the implementation of the stress test, and higher interest rates recently, mortgage qualification is more difficult.  But for those that can be approved for a mortgage, this study suggests that buying is a far better option than renting for Canadians.  


So thats it, I will link this article about home ownership in Canada in the description below.  If you have any questions about this topic please feel free to reach out to me.   If you are interested in buying a home in vancouver please watch my playlist over here. 


Question of the day, would you buy or would you rent?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     



http://torontostoreys.com/2018/09/home-ownership-canada-affordable-renting/

Read full post

 

Home Values Online


Are home values online any good? 


 I will discuss the 5 reasons why you should avoid getting your Home Values Online in Canada.


  1. Most websites use online Tax assessments values to report estimate on your home value.  Tax assessment is a tool just used for local tax authority to collect taxes for the city.
  2. Most online home evaluation tools don’t even  allow you to input the number of bedrooms, square footage, age, and other details that are important.  So how could any online estimate be accurate without even knowing how many bedrooms your home has?  
  3. Nearby Properties as a comparison - The online searches that pull nearby properties for comparison, just pull everything that sold in that city.   In my example the property I was looking up the online value for a condo that was in a building that is only 8 years old, and the nearby property that the website used as a  compared sold at 320 Royal Ave was 43 year old building. 
  4. Online home evaluations are very inaccurate - look at this comment regarding the  REMAX.ca website home evaluation tool.  “It's not even close to accurate for my neighbourhood in Kelowna. my neighbour just sold for almost $200k above this tools suggested price!”
  5. You will need to sign in more details.  As you can see here most of the important information you want is blocked out.  But once you give up your personal information you will be called continuously by random sales people.   What do I mean by this?  This is big in the US, but it will start to be more common in Canada.  In the real estate business your personal information is called a real estate lead.  Just google “online home values” and you will see many websites offering home evaluations, but their is a tab for real estate agents to sign up.  So whats the kicker here?  The agents who signs up are promised leads and they are trained to call these leads over and over again in an attempt to earn your business.  So the lesson to be learned here is don’t be a lead, and don’t sign up for an online home evaluations because they are very inaccurate.    


So whats the best method to get your homes value.  Don’t be shy, Just contact your local realtor, and they should give you all the proper information.  Neighbourhood statistics ,all the active ,sold and expired comparable properties on the market.  The in-person home evaluation is always better as the realtor can customize the report to match your home.


If you need an in person home evaluation please feel free to reach out to me.   


Question of the day, what do you think of getting home values online?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and become smart savvy consumer.  I make educational content every Tuesday and videos every Friday.

Read full post

 

Is buying a home a good idea in Vancouver? Or should you rent? 



I will discuss 5 reasons for renting a home and 5 reasons for buying a home.


First lets talk about the reasons you should rent


1. You don't have stable employment - renting can be a great alternative as many lenders won't lend to you until you are gainfully employed full time and can provide pay stubs.


2. You don't have a downpayment of more than 5 percent down. Renting is a great option as buying a home comes with a lot more expenses. It is recommended that you save up for a large enough down payment so when it is the right time to buy you are not struggling to meet your monthly payments.


3. Prices are too high for what you can purchase versus what you can rent.  If you really need a 3 bedroom home with 3 baths, and it costs only $2300 to rent versus 1 million to buy. I would consider renting. For example with 20 percent down on a 1 million dollar home with a interest rate at about 3.5% your monthly mortgage payment would be about $4000 per month, thats not even including maintenance fee and property taxes.


4. You are able to find investments that yield a greater return than real estate. Looking at dividend stocks, you can get paid dividends as much as 6% per year on top of any equity gains.


5. You are a good saver. For every dollar you save from renting versus buying you are able to invest it diligently.


Now lets talk about the reasons to buy real estate


1. You have strong employment   Nowadays the only way to get approved for a mortgage these days is if you have employment, or some sort of income proof.


2. You have a large downpayment  another reason to buy a home. If you have a larger downpayment your mortgage payments maybe less than your rental payments.


3. The numbers work - If its an investment that you can receive greater rental income than your total expenses. Think Airbnb, Simi Furnished Short Term Rentals over 30 days, or renting to international students.


4. Overall real estate has yielded strong returns over the last 10 years and this trend should continue for the foreseeable future as Vancouver has strong population growth, low inventory and strong government intervention.


5. Buying a home with a mortgage is a forced savings account. With each mortgage payment you are paying interest plus principle. In 25 -30 years the home will be paid off, and hopefully the asset has more than doubled.

So there you have it the pros and cons of renting or buying a home in Vancouver.


If you have any questions please reach out to me. 


Question of the day, would you consider buying or renting? Please leave it in the comments below. I will try my best to personally answer all comments myself.



Read full post

 

Moving to Vancouver BC


Are you thinking about moving to Vancouver?  I want to go over some pros and cons ? 


First lets talk about the Positives


  1. Nature:  Vancouver is surrounded by Water, Mountains, forest and beaches.  Who says you can’t head up to Whistler to skii in the morning and come back in the afternoon to the beach to play volleyball.  
  2. We have a growing tech centre and we are also home to Hollywood North.  We already have google, and now Amazon is opening up in vancouver, creating more jobs.  vancouver also has a strong film industry.  We are home to shows like The Flash, Arrow, Once Upon a time, and much more. 
  3. We have one of the best universities in Canada, UBC, and for those who want more hands on learning we have BCIT
  4. Best climate in Canada.  Especially if you don’t like to freeze, Vancouver barely ever reaches below zero degrees, we also get very little snow.  in the summer we don’t get too hot either it’s around 25–35 degrees.
  5. We are very multicultural here in vancouver with very little racism.  Also to note With this multiculturalism, we also have many fabulous restaurants.  


Now lets talk about the Negatives


  1. We have lots of rain.  We can have months of it.  Maybe thats why our city is so clean.  Some people even nick name vancouver as raincouver. 
  2. Rental Vacancy is super low .05% and rents are very high.  Renting a 2 bedroom condo starts at about $3000 per month in downtown vancouver. 
  3. Local jobs don’t compare to other parts of Canada or in the US
  4. Traffic is horrendous - if you live outside in the neighbouring areas outside of vancouver, like Surrey and Langley.  Good luck driving home along number 1 highway.  Expect gridlock traffic from as early as 4:00pm.  
  5. Real estate is expensive - In Vancouver we are the most expensive city in Canada. 2nd is Toronto.  The average benchmark price of a detached home in greater vancouver is 1.5 million, a Condo $700,000 and a townhouse is about $850,000


So there you have it the 5 Positive and 5 Negatives you should know before deciding to move to vancouver.  If you have any questions please reach out to me.   If you are interested to moving to Vancouver, please watch my buyers videos here or reach out to me.   


Question of the day, would you consider moving to Vancouver?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


Read full post

 

So the August 2018 Real Estate Numbers are out now, Today I am going to dive deep into what these numbers mean in the Greater Vancouver Market and highlight which area you should think about buying. 

Hi I am Alex Lam from Royal Pacific Realty, and  oh yeah this is Canadian content eh?  If this is the first time you are here, and you are interested in all things real estate in the Vancouver area, be sure to hit that subscribe button and that little bell.  I post new Videos every Tuesday and Friday.


Last month’s sales in August was 25.2 per cent below the 10-year Aug sales average.  The market in general has fewer active buyers, we’re seeing less upward pressure on home prices across the region. This is especially in the detached home market.   Demand in the townhome and condos are also down significantly from the years past.


Overall the residential active to sales ratio is at 16.3% which means that for every 100 properties forsale only 16 sell.  Broken down by property type Detached homes across metro vancouver at are 9.2% active to sales, Condos are at 26.6% and townhomes are at 19.4%.  Prices are usually start dropping when the active to sales ratio dips below 12 % mark for sustained periods of time. 


Inventories in general have increased 24.5% percent over all property types compared to last year.  That is a big increase in inventory. Broken down by property type we see detached homes with a inventory increase of 7%, Condos at 62% increase, and Townhomes with a 44% inventory increase. 


 Speaking to Most buyers and sellers,  Sellers will only sell if they really need to, but most are pretty secure with their financial situation. And Buyers will only buy when the price is right.  Some sellers will intentionally lower their price to look very attractive to get alot of viewings, but when a buyer writes an offer, they will not accept anything lower than asking price.  This seems deceptive but it doesn’t break any rules.  So lots of funny things are happening out there, so be careful.     


Looking at the home price index across metro vancouver, detached homes are at a benchmark price $1,561,000 million which is a 2.8% decrease from last month.  Condo benchmark is at $695,000 which is a 1.6%  decrease in price since last month.  And townhomes are at $846,000 with is a 0.8%  decrease compared to last month.  


So do I see a trend here?  Which areas have dropped the most?  The best thing to do is to look at 3 month price trends, this way you can firmly see a solid direction.  


For detached homes, West Vancouver had the biggest price change over the last 3 months from a benchmark price of $2.8 million

 million with a decrease of 6.2%, Followed by Squamish with benchmark price of 1 million with 5.7% decrease and North Burnaby with a benchmark price 1.5 million

also at 4.7% decrease.  


For Condos the biggest price drop is again was West Vancouver with a benchmark price of 1.19 million at 7.1% decreases followed by Pitt Meadows with a benchmark price of $527,000

at 3.8% and Maple ridge $374,000 with a 3.1% decrease.  


For Townhomes, Vancouver East had a  benchmark price of $894,000 with a 3.4 %  decrease over 3 months, followed by Port Coquitlam with a benchmark price of $667,000 with a 3.2% decrease followed by Vancouver West at 1.26 million with a 2.8% decrease.     


So if I was a buyer I would look in those areas.  The market is definitely changing and to the buyers advantage.   Prices have dropped in most areas but not very much.  Please view the description to download the full stats package.  Its always a good idea to know whats going on with the market.


Question of the day, Would do you think the prices are heading the greater vancouver market?  Up or Down?  Answer in the comments below.  I will make it an effort to personally respond to all the comments.   If you are in the market to sell or buy I have linked up a playlist of helpful tips in the description below.


If you like this video please give it a thumbs up and subscribe. I will be posting new market update videos every Friday for different areas across metro vancouver, and educational real estate tips every Tuesday.  This is Alex Lam from Vancouver and thanks for watching this video eh??   


Download the full Stats Package Here

Read full post

Buy and Hold Real Estate




The real estate market is up and down, but over the last 10 years we have seen a steady uptick in price growth.  If you had purchased in 2008, you would have already doubled your investment.  Although we are currently in a buyers market now, it is always a good idea to buy and hold real estate.  In this video I will discuss 6 reasons why you should consider the buy and hold approach. 


#1. Appreciation - even if you had purchased real estate at its peak in 2007 homes prices have already doubled since then.  And yes real estate markets are up and down, and no prices will not correct 80 percent.  That is just dreaming.  If that was a reality it would throw the entire economy into shock. 


#2. Passive Income - with possible higher returns than other investment options like mutual funds, 


#3. High ROI on Investment - as with any real estate investment you are just putting a downpayment, making mortgage payments, and paying for property maintenance.  But you are getting the the gains on the full market value of the property. In comparison to the initial investment, you are getting really good ROI. 


#4.  Principal Pay Down - If you are renting out your home, don’t forget with every monthly rental payment you are also reducing the principle on your mortgage. This also saves you interest the longer you hold the property ultimately paying off the property in full.


#5. No Re-qualification Mortgages - Applying for a mortgage for the first time maybe be painful, but once you are approved, and when it is time for renewal, the lender will not ask you to provide more documentation, they will just as you to sign a renewal.  This is great especially if you own multiple properties and plan to own them for a long time. 


#6  Retirement Income - Look at your RRSP’s and when you can access those funds?  Age 70??  When you invest in real estate, you have more control.  You can decide when you want to pay yourself.   After you pay off all your property expenses you can treat your rental income as your retirement income.  


So there you have it the 6 reasons why you should consider buying and holding real estate.  If you have any questions please reach out to me.  



Question of the day, would you buy and hold real estate?  Please leave it in the comments below. I will try my best to personally answer all comments myself.     


As always please like, share and subscribe and become smart savvy consumer.  I make educational videos every Tuesday and videos every Friday.  This is Alex from Vancouver and Thank you so much for watching this video eh?  


Read full post



Vancouver presale condos


Are they a good buy?  


I will discuss 5 positives and 5 negatives that you should consider before purchasing a presale condo in vancouver. 


First lets talk about the Positives


  1. Good Rate of return on deposit if condos go up in value.  Think about it, your only investment is the deposit for the purchase of the presale.  What happens when the property goes up in value?  Say it went up 100k and your deposit was only 50k.  You essentially doubled your investment.  Thats an awesome rate of return. 
  2. You are buying brand new - Everyone likes buying brand new, in the newest and hottest new neighborhoods. 
  3. It has a warranty - all presale condos have 2-5-10 warranty, so you can rest assured that any repairs will be taken care of for the next ten years.  
  4. No PPT - Now thats an incentive.   You can qualify for this exemption if its is going to be your primary residence and the purchase price is under $750k 
  5. You may assign it the contract for profit -  Since you are holding this investment for about 2-3 years, that this investment has gone up in value.  Many investors cash out if they see a gain a big gain.  Gains are treated as business income though. 


Now lets talk about the Negatives

  1. Bump in price after sale.  Their was a story recently in new Westminster, of a developer asking for more money to continue on a struggling project.  One has asked for as much as an extra 15%.  Unless stated in the contract, their is nothing stopping the developer for demanding more money.  
  2. Return of deposit - if developer does not want to complete the project, they have the option of returning your deposit.    
  3. Floor plans can be altered from the time of purchase till completion - this actually happened to a client of mine who originally purchased a 2 bedroom with 2 bathrooms.   The developer wanted to change the floorpan to 2 bedroom with 1 bath.  
  4. Prices Going Down? -  2 years is a long time, and anything can happen.  The market can go up but it can also go down.  I have seen presale buyers selling for a loss back in 2007 and 2008. 
  5. Purchase price -  Are they a good deal?  Most assume they are a good deal.  But the fact is the developer is future pricing all the homes. They are pricing out homes on what they think homes will value in 2 to 3 years time. 


So there you have it the 5 Positive and 5 Negatives you should know about if you are buying a presale in vancouver.  If you have any questions please reach out to me.   If you are interested in purchasing a presale I can get you vip access on some popular projects across the lowermainland.



Read full post
Categories:   Aubrey Elementary | BC | BC Assessment | BC Condo Flipping Registry | BC Speculation tax | Big Lot Burnaby | Bolivar Heights, North Surrey Real Estate | Brentwood Park, Burnaby North Real Estate | Brighouse, Richmond Real Estate | burnaby | Burnaby home | Burnaby Home Buying | Burnaby Home seller | Burnaby House Forsale | Burnaby Lake, Burnaby South Real Estate | Burnaby Market Snapshot | Burnaby Real Estate | Burnaby Real Estate Market | BUy | Buye | Buyer | Buyer tips | Buyers | Buyers Tips | Canada | Champlain Heights, Vancouver East Real Estate | Closing Costs | Cloverdale BC, Cloverdale Real Estate | Coal Harbour, Vancouver West Real Estate | Collingwood VE, Vancouver East Real Estate | Commission | Condo | Condo Living | Coquitlam West, Coquitlam Real Estate | Crescent Bch Ocean Pk., South Surrey White Rock Real Estate | Downtown VW, Vancouver West Real Estate | East Newton, Surrey Real Estate | Edmonds BE, Burnaby East Real Estate | False Creek, Vancouver West Real Estate | First | First time Buyer | First time home | First time home buyer | Fleetwood Tynehead, Surrey Real Estate | Fraserview NW, New Westminster Real Estate | Fraserview VE, Vancouver East Real Estate | Glossary of Real Estate Terms | Grandview Surrey, South Surrey White Rock Real Estate | Grea | Greater Vancouver | Guildford, North Surrey Real Estate | Hamilton RI, Richmond Real Estate | Hastings East, Vancouver East Real Estate | Highgate, Burnaby South Real Estate | Home | Home Insurance | Home Sell | Home Value | Homes | Interest Rates | July 2018 Greater Vancouver Real Estate Market Report | June 2018 | Killarney VE, Vancouver East Real Estate | Knight, Vancouver East Real Estate | Langley | Langley City, Langley Real Estate | Langley Condo | Main, Vancouver East Real Estate | mar | Mark | Market | Market report | market up | Market Update | Market Value | May market recap | Metrotown, Burnaby South Real Estate | Mistakes | Morgan Creek, South Surrey White Rock Real Estate | Mortgage Rates today | mortgage update | Mortgage update 2018 | Moving to Vancouver BC | Multiple Offers | North Coquitlam, Coquitlam Real Estate | November 2018 Real Estate Report | November Market Report | October 2018 Greater Vancouver Real Estate Market Report | Panorama Ridge, Surrey Real Estate | Paramount Richmond | Paramount Richmond Keltic | Parkcrest, Burnaby North Real Estate | Parkcrest, North Burnaby | Photography | Presale | Presale Condo Walk Thru | Presale Condos | Presale Vancouver | Real estate | Real Estate tip | Realtor | richmond | RRSP Home buyers Plan | S.W. Marine, Vancouver West Real Estate | Scottsdale, N. Delta Real Estate | Seafair, Richmond Real Estate | Sell | Seller | Seller Tip | Selling | selling home | Selling Real estate | selling Tenanted Property | South Slope, Burnaby South Real Estate | Speculation and Vacancy Tax | Strategy | Surrey | Tips | Unwritten Oakridge by Westbank | Upper Deer Lake, Burnaby South Real Estate | Uptown NW, New Westminster Real Estate | Vancouver | Vancouver Condo | Vancouver Home | Vancouver Home Buyer | Vancouver Home Buying | Vancouver home seller | Vancouver Homeowner | Vancouver M | Vancouver Market report | Vancouver Real Estate | Walnut Grove, Langley Real Estate | West Cambie, Richmond Real Estate | West Coquitlam, Coquitlam Real Estate | Whalley, North Surrey Real Estate | White Rock, South Surrey White Rock Real Estate | Yaletown, Vancouver West Real Estate
Categories