Tag Archives: realestate

In hot real estate markets, realtors are going to make you an offer — whether you want it or not

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Kelowna! Our housing market has officially heated up…..it has begun, the controversial realtor practice of contacting homeowners in the hopes they MAY want to sell.  Now homeowners are left with a choice they may have not even been considering, love it or list it?

My daughter and son in law received a letter recently (from a local realtor we will not disclose) They live in Dilworth, have an income suite and are 10 mins from downtown. They have no intentions of selling, but real estate in Kelowna is heating up and realtors are making sure they have enough properties to show eager house hunters. And lets face it, sale prices are enticing even the most comfortable home owners.

There is nothing illegal about realtors directly approaching you to sell your home privately, but that doesn’t mean all homeowners appreciate the attention. Lets face it our local market is strong  and real estate agents dealing with clients trying to break into the market, the number of unsolicited offers is probably going to just keep growing in hot markets like Toronto and Vancouver.

Many eager house hunters are simply not willing to sit around and wait for product to come to them. While unsolicited offers may pay off for buyers, the real problem, as a seller, is it’s incumbent on you to determine fair market value for you property. The agent making the offer is just not on your side.

Risks aside, there are some advantages to selling directly and bypassing the MLS, which usually requires posting pictures of the inside and outside of your house online and open houses. On the financial front, agents soliciting business usually promise a break on commission too.

Whether this option come knocking or not, potential sellers be wary that this probably isn’t the safest strategy. Sellers really need to do their homework before agreeing to a private transaction — don’t get tricked into a quick timeline and don’t feel shy about requesting a large deposit of as much as 15-20 per cent.

As always, if you have any questions, especially if offers start knocking, never hesitate to get in touch, with me, a realtor, or a lawyer. For most of us the purchase and sale of a home is the biggest and most emotional transaction we will ever make. Everyone searching and selling needs to feel protected, happy and in control 🙂

Ground breaking mortgage changes coming!

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We are 5 days away for yet another change to our mortgage market.

As of the 17th, it’s getting harder to get the amount of money you may want for your mortgage.  Mortgage rules regarding qualification are right around the corner.  Rumor has it that 1 in 5 people will be affected.

Here’s how the rules work: 

For those wanting a short term fixed rate (1 – 4 years) or a variable rate or a line of credit mortgage, you qualify at the Canadian benchmark rate which is currently 4.64%.  You didn’t pay 4.64%, you just qualified at that rate.  The thinking is that if you qualify at this higher rate and the interest rate increases, you should still be able to afford the payment because you’ve qualified for less money.

If you took a 5 year fixed rate (or longer), you qualify at the contract rate; a conservative rate would be 2.49%.  Because you’re qualifying at this rate, you qualify for more money.

We typically think of high ratio insurance for those putting down less than 20% of the home’s value but in fact most lenders buy insurance for all their mortgages; even for conventional mortgages, but the consumer may not be aware of it because the lenders pay for it.

As of Oct 17th, the Canadian benchmark rate will be used for all mortgage qualifications that are backed by either high ratio insurance or low ratio (bulk pooled) insurance . Here are 3 examples of how it will affect clients.

All based on having little ancillary debt, so using 39% of gross income for your mortgage payment, property taxes and heat

Household income $50,000 gross. Old qualification amount =  $299,900

New qualification amount = $239,100

Household income $75,000 gross. Old qualification amount =  $466,500

New qualification amount = $372,000

        House income $100,000 gross. Old qualification amount =  $663,000

New qualification amount = $528,600

In the first example, you will qualify for $60,800 less.  In the second example you will qualify for $94,600 less and in the third example you will qualify for $134,400 less.

While lenders try to make sense of the rules, many are not lending for rental properties, nor doing stated income deals at this time.

New changes can create a little confusion, if you have any questions, never hesitate to give me call. I’m always ready to help.

What is crowdfunding?

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For those looking to get into the real estate game without becoming a landlord, one alternative to the traditional bricks and mortar is mortgage investing.

Crowdfunding is no longer a buzzword reserved for start-ups and tech entrepreneurs. Today, crowdfunding is a well-established vehicle for entrepreneurs to leverage the power of the “crowd” while enabling the crowd to participate in exciting and/or lucrative projects.

Real estate crowdfunding allows individuals to invest in existing apartment buildings or in buildings under development — an opportunity that currently is available only to wealthy individuals or institutions.

Equity crowdfunding allows small and medium-size businesses to raise capital without the time and expense of issuing detailed financial reports and offering shares for sale on the stock market. It is viewed as a low-cost alternative to taking a company public by issuing shares in an initial public offering. Equity crowdfunding would allow a large number of investments from individuals to be pooled in exchange for securities.
Continue reading here…. story via Canadian Real Estate Wealth

They haven’t been built yet but Kelowna homes are being snapped up

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The current housing market in the country is a hot topic, and nowhere is it hotter than in British Columbia, so it might be surprising to hear that real estate is being snapped up and sold out within a matter of hours after hitting the market.

There is more than enough data to show that the real estate market in the Okanagan is unaffordable for most, prompting developers to come up with unique ideas. Micro suites, eco-friendly buildings, and ranchers are just some of the new developments popping up in places such Kelowna and Penticton and they are selling out faster than anyone expected.

Continue reading here…… story via Kelowna Now

I’m Going to Buy A House. What Do I Do!?

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Buying a home means finally being able to call a place yours, and making your decorating dreams a reality. But, before you can start moving in sofas and painting the walls, you have to actually purchase the home! And what a huge commitment that is, requiring you to research neighbourhoods, tour different properties, send in mortgage applications and file what seems like mountains of paperwork.

But, there is light at the end of the tunnel, and that is finally owning a home that you can use as an investment. Need some help preparing for this? Take a look at the tips below, which I’ve gathered through extensive research watching way too many home improvement shows.

Step 1: Figure out your Budget

You have to create a budget that is realistic for your income and the expenses you already have. If you don’t set this, then you could easily end up looking at dream homes that you could afford, if you’re willing to live without things like food… or heat… or electricity.

So, set your budget by taking into account your income each month. Then, subtract all your normal expenses (yes, add in dining out, gas, heat, etc.). Next, subtract your anticipated monthly mortgage payment along with taxes and insurance. You should have an idea of what you can afford when you do this, but be honest with yourself so you get the most accurate results.

Step 2: Set up Savings

How much money do you have set aside for a rainy day? You need an emergency fund, and that’s even more true when you own a home. You need to have money set aside for plumbing emergencies, a new roof, living expenses if you were to lose your job and other things that could happen (even though you don’t want them to). A good rule of thumb is to save half a year of living expenses.

Step 3: Figure out What You Want

Before buying a home, you need to think about what your priorities are with the actual home. For example, would you rather buy one that’s move-in ready, or one that is going to require some repairs? You should also think about the location, whether or not you will have to move in the near future (if you’re going to have kids), if you would want to do renovations and other things that impact your enjoyment with a home.

Step 4: Do Your Own Research

Your real estate agent will help you with finding a great home when you’re ready, but you can still research homes yourself to get an idea of what you really want. Take some time to look up information on different neighbourhoods, layouts of homes you might want and other things that will make the searching process easier in the future. Don’t rush yourself and remember that this is one of the biggest investments you’ll ever make, so you sure you’re satisfied with it.

Story via www.joesamson.com

5 reasons (besides low interest rates) why Toronto and Vancouver real estate may only get hotter

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Being a Vancouver boy at heart, I love the great reads that pop up around the web about the thriving real estate market there. Bidding wars, “knockdown” shacks being sold for 2.4 million…… It’s the stuff real estate enthusiasts love to sink their teeth into.  We love to know the ins and outs and the “why’s”.

Low mortgage rates, supply and demand, foreign investment all are playing leading roles in the fiery dramas that are unfolding in the Toronto and Vancouver housing markets. Everyone has their favorite lead actor/villain driving these two markets skyward, but there are more pieces to this house shaped puzzle….

Continue reading here, story via Buzzbuzzhomenews

Doing renovations? Update your home insurance!

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It’s spring! For many of us the inspiration to “move this” or “update that” has been nagging at us all winter and the warm days have put your motivation into overdrive. Before you get “too inspired” and run out to your closest Home Depot make sure you read the fine print of your home insurance policy…..

Homeowners need to regularly check and update their home-insurance policies or risk having insufficient coverage when disaster strikes, insurance experts say.

The need to review and update a policy is especially important for those who have done renovations because changes to the property could render the policy void if the insurer hasn’t been informed.

Craig Richardson, vice-president of claims operations at TD Insurance, says the insurance company should be contacted even before a contractor starts work.

He noted that renovations also provide an opportunity to make other improvements that might help save a few dollars on your home insurance at the same time.

Things such as a sewer backup valve or an alarm system can be more easily installed if other major work is already being done.

“If you’re already in the process of doing renovations, it may be cheaper to do it while work is ongoing,” Mr. Richardson said.

But even without major changes to the property, policies should be reviewed annually just to be sure they match the homeowner’s needs.

Continue reading here……. story via Globe & Mail