ARE YOU A FIRST TIME HOME BUYER? DON’T WORRY, WE ARE HERE TO HELP!

Hello & happy Saturday!

 

Today we are going to talk about first time home buyers. With all the lending rule changes and high Vancouver prices, many first time purchasers are either afraid or convinced they can’t get into the market. Good news, you can. Especially with the continued low interest’s rates. Please see below for more information on navigating your first purchase in the Vancouver real estate market. As always, we’re here to help! Feel free to call our team anytime.

 

Buying your first home. Don’t be afraid!

 

So, you’re thinking of buying your first home. Everyone’s excited about the prospect, however, you read in the paper and hear on the news how hard it is to get into the Vancouver Real Estate Market. Well, fear not, there are many programs that can help you as a first-time home buyer.

 

The Home Buyers Plan or HBP is a program started by the government to help first time homebuyers. The program allows new buyers to access their RRSP’s for a down payment, it lets you withdraw from your RRSP’s (Registered Retirement Savings Plan) up to $25,000 or $50,000 per couple.

 

Another way to access funds is through the receiving part of your down payment as a gift. The gift, however, must come from an immediate relative (mother, father, brother, sister) and must be a real gift and not a loan. Banks require a gift letter from your immediate relative confirming the amount gifted.  Keep in mind that often it is beneficial to come up with some of the down payment yourself to show the lender that you are a strong applicant, including good credit and solid employment.

 

What is not widely known, is that new buyers can access a down payment through the borrowing of funds. This would need to be in the dome of a loan or line of credit. Of course, the payments of the loan would be calculated into the overall debt servicing of the mortgage and applicants would have to qualify within the lending guidelines.

 

Another great program is the purchase plus improvement program. Meaning homebuyers can purchase a property at a lesser value that may need work. Improvements can be made over time and be reimbursed from the mortgage when the work is completed.

 

So, what about the down payment?

In Canada, lenders require a minimum down payment of 5%. This is a great way to get into the market however there is an insurance premium associated with any purchases under 20% and is based on a sliding scale.

 

Another advantage for first time homebuyers is a newer policy that allows you to avoid paying property transfer tax on the first $475,000. This used to be $425,000 and was increased to stay in line with rising home prices, particularity in the Vancouver and Toronto real estate markets. There is a break between $475,000 – $500,000

 

If you are thinking of getting into the Vancouver real estate market, here are the steps we recommend:

 

  1. We set up a meeting with you to discuss your goals, narrow down your locations, requirements from the property and strategies to help you achieve homeownership.

 

  1. You meet with your lender or we can recommend a highly skilled mortgage professional to start your mortgage pre-approval process.

 

  1. We go shopping! We work closely together to match you with properties that meet your criteria.

 

  1. Once found, we put in an offer and negotiate the best price and conditions on your behalf.

 

  1. Typically at this stage, a home inspection is conducted

If all subjects are satisfied and the home inspection is good, we accept the deal and sign all the paperwork.

 

  1. Now a deposit cheque is required. Usually 10% of the value of the home. This will be deducted off the purchase price at the time of closing.

 

  1. The property closes.

 

  1. We give you the keys.

 

  1. You are a proud new homeowner!

 

  1. We are here for you long after the purchase closes and will continue to answer any question you may have.

 

But wait, don’t forget about the first-time home buyers tax credits!

 

The first-time home buyers tax credit or FTHB was created in January 2009 to give relief to first time home buyers. It allows for an income tax credit that is nonrefundable. eligible first time home buyers with a qualified home can apply for up to $5,000 in credit income tax to a maximum of $750 in tax relief. When you’re a first-time homebuyer, every penny counts. So, make sure to take advantage.

 

To find out if you and your home are eligible, and for more information, please feel free to reach out to our team, we’re here to help.

Get in touch with us to discuss the best opportunities for you in this market. We are never too busy to find the right strategy for you.

info@leeandpete.com
604- 729-5646

 

 

EVERYTHING YOU NEED TO KNOW ABOUT THE BC ASSESSMENTS

The New Year has arrived and that means your BC Assessment letter will soon be in the mail, notifying you of your current property value AND potentially increased taxes.

As one of the top Vancouver Real Estate Team’s in Greater Vancouver, we understand how frustrating it can be for homeowners continuing to see their property taxes increase year over year. That’s the downside. The upside is the value of your property is increasing and creating more equity in your home. Many of our clients are now looking to tap into that equity and purchase investment properties in the Greater Vancouver Real Estate Market.
If you haven’t already, you should be receiving your BC properly assessment in the mail shortly. But wait, what is the BC assessment all about? BC assessment is conducted by government appraisers and establishes a value of your property to determine your property taxes. The property tax raises over 7 billion dollars in revenue a year to pay for local government services like schools hospitals emergency services, parks, and roads and is therefore, one of the province’s biggest revenue source.

Assessment of a property

What is the assessment of a property and who does it? A BC assessment appraiser will determine the assessed value by taking comparable property prices in the Vancouver area, location, size of the home, size of lot, physical condition of the property, local services, age of the property and miscellaneous features that can affect the home’s value into consideration to make the appropriate estimate. When you receive the letter in the mail, the assessed value is based on the market value of your property as of July 1stof the previous year. To determine the correct value, while constantly chasing current sale prices the appraiser uses the methods:

The direct sales comparison approach which is based on comparable sales in the area and time period.
The income approach, which looks at the potential revenue of property in comparison to its expenses to generate profitability.
Lastly, the cost approach is used when there is a non-comparable property. In which case a property’s value is estimated as the current cost of reproducing or replacing structures on the land. The approach is determined by the properties current use and how often properties with similarity types are bought and sold on the open market.

Why would they assess my property you ask? Easy, Vancouver is known for its soaring Real Estate prices, creating a great source for the city to collect billions in revenue. The higher your property value, the higher, unfortunately, your taxes. The assessment appraiser calculates the property’s value based on the factors above and multiplies it by the current property tax rate which then equals your property taxes.

Is it all bad? Not at all. Increasing property value can sometimes help speed up the selling process as many looks at the asking vs. assessed price when purchasing a property. But more importantly, it can help you create more equity for your home, which in turn can help you purchase more properties and increase your overall assets.

Do I pay the full amount of property taxes?

It depends…. The City of Vancouver offers a Home Owners Grant to those that are Canadian Citizen or landed immigrants, ordinarily reside in British Columbia and are a registered owner of a home in Vancouver. Some homeowner may be eligible for an additional grant if they 65 or older, have a disability or receive a veteran’s allowance. Homeowners whose property value is above 1.764 million, however, are eliminated from the basic grant and homeowners that own a home with an assessed value over 1.819 million are eliminated from the additional grant.

In addition, you have the right to appeal your tax assessment and try to lower the assessed value to reduce your property taxes. Statistically, about one to two percent of homeowner appeal the assessment.

It’s important to note that the assessment was determined in July 2018 and the market condition can change quickly, especially in Vancouver. Therefore, it’s critical to get a current and accurate valuation of your property if you are considering selling. With prices softening, now may be the perfect time to consider buying an investment property in Vancouver. Give our team and call with the best real estate agents and we can advise you on whether purchasing another property makes sense for you. It can be a great source of income over the long term.

The New Year has arrived and that means your BC Assessment letter will soon be in the mail, notifying you of your current property value AND potentially increased taxes.

As one of the top Vancouver Real Estate Team’s in Greater Vancouver, we understand how frustrating it can be for homeowners continuing to see their property taxes increase year over year. That’s the downside. The upside is the value of your property is increasing and creating more equity in your home. Many of our clients are now looking to tap into that equity and purchase investment properties in the Greater Vancouver Real Estate Market.
If you haven’t already, you should be receiving your BC properly assessment in the mail shortly. But wait, what is the BC assessment all about? BC assessment is conducted by government appraisers and establishes a value of your property to determine your property taxes. The property tax raises over 7 billion dollars in revenue a year to pay for local government services like schools hospitals emergency services, parks, and roads and is therefore one of the province’s biggest revenue source.

Assessment of a property

What is the assessment of a property and who does it? A BC assessment appraiser will determine the assessed value by taking comparable property prices in the Vancouver area, location, size of the home, size of lot, physical condition of the property, local services, age of the property and miscellaneous features that can affect the home’s value into consideration to make the appropriate estimate. When you receive the letter in the mail, the assessed value is based on the market value of your property as of July 1stof the previous year. To determine the correct value, while constantly chasing current sale prices the appraiser uses the methods:

The direct sales comparison approach which is based on comparable sales in the area and time period.
The income approach, which looks at the potential revenue of property in comparison to its expenses to generate profitability.
Lastly, the cost approach is used when there is a non-comparable property. In which case a property’s value is estimated as the current cost of reproducing or replacing structures on the land. The approach is determined by the properties current use and how often properties with similarity types are bought and sold on the open market.

Why would they assess the property you ask? Easy, Vancouver is known for its soaring Real Estate prices, creating a great source for the city to collect billions in revenue. The higher your property value, the higher, unfortunately, your taxes. The assessment appraiser calculates the property’s value based on the factors above and multiplies it by the current property tax rate which then equals your property taxes.

Is it all bad? Not at all. Increasing property value can sometimes help speed up the selling process as many looks at the asking vs. assessed price when purchasing a property. But more importantly, it can help you create more equity for your home, which in turn can help you purchase more properties and increase your overall assets.

Do I pay the full amount of property taxes?

It depends…. The City of Vancouver offers a Home Owners Grant to those that are Canadian Citizen or landed immigrants, ordinarily reside in British Columbia and are a registered owner of a home in Vancouver. Some homeowner may be eligible for an additional grant if they 65 or older, have a disability or receive a veteran’s allowance. Homeowners whose property value is above 1.764 million, however, are eliminated from the basic grant and homeowners that own a home with an assessed value over 1.819 million are eliminated from the additional grant.

In addition, you have the right to appeal your tax assessment and try to lower the assessed value to reduce your property taxes. Statistically, about one to two percent of homeowner appeal the assessment.

It’s important to note that the assessment was determined in July 2018 and the market condition can change quickly, especially in Vancouver. Therefore, it’s critical to get a current and accurate valuation of your property if you are considering selling. With prices softening, now may be the perfect time to consider buying an investment property in Vancouver. Give our team and call with the best real estate agents and we can advise you on whether purchasing another property makes sense for you. It can be a great source of income over the long term.


Get in touch with us to discuss the best opportunities for you in this market. We are never too busy to find the right strategy for you.
info@leeandpete.com
604- 729-5646

MARKET UPDATE- NOVEMBER 2018

Property Sales continue  to slow down across the Metro Vancouver Real Estate Market.

 

According to the Vancouver Real Estate Board, the total sale of homes in November remains below historical averages. With total sales of 1,608 the Vancouver Real Estate Board recorded a 42.5 per cent decrease from November 2017 as well as a further decrease in sales in comparison to October 2018 with a 18.2 per cent decline.

 

The housing market hasn’t seen a comparable decrease for the month of November since 2008.

Home buyers remain patient in pulling the trigger on the perfect home, allowing the number of available homes for sale to go back to typical historical level. This has resulted in prices coming down across all property types says Phil Moore, the REBGV president.

 

The MLS system recorded 3,461 newly listed homes in Metro Vancouver in November, which is a 15.8 per cent decrease compared to November 2017 when 4,109 were listed with the Multiple Listing Service. The number of homes listed in November has also decreased when compared to October 2018, with 4,873 homes being listed.

 

Currently, the total number of homes available for sale on the MLS system in Metro Vancouver is 12,307, recording a 40.7 per cent increase compared to November 2017 when only 8,747 homes were listed for sale and a 5.2 per cent decrease in comparison to October 2018.

 

The property sales-to-active ratio for detached homes is currently 8.9 per cent, 14.7 per cent for townhomes and 17.6 per cent  for apartments. Therefore detached homes remain in a   buyer’s market with townhomes now also entering into a buyer’s market, and apartments remaining in a balanced market. Overall the sales-to-active ratio for all property types is 13.1 per cent.

 

When the sales-to-active ratio dips below 12 per cent for a sustained period, downward pressure on homes occurs, while home prices climb when the ratio exceeds 20 per cent over several months.

 

According to Moore, home prices have been on the decline over the past 6 month depending on the type of property. Analysts will watch the first quarter of 2019 to see if demand picks up as its usually very active in the spring.

 

The current benchmark price for all property types in Metro Vancouver is $1,042,100 which is a 1.4 per cent decrease compared to November 2017 and a 1.9 per cent decrease to October 2018.

 

Detached home sales have further declined in comparison to the previous year, the Vancouver Real Estate Board records a 38.6 per cent decrease with 516 detached sales in November 2018 compared to 841 detached sales recorded in November 2017. The benchmark price is $1,500,100 documenting a 6.5% decrease from November 2017 and 1.6 per cent decrease compared to October 2018

 

Apartment sales are similar, recording an even higher decrease, 46.3 per cent, compared to the previous year, with 810 sales in November 2018 compared to 1,508 sales in November 2017.  The benchmark price is currently $667,800, representing a 2.3 per cent increase compared to November 2017.

 

Meanwhile townhomes sales too record a decrease in sales, down to 282 sales in November 2018 compared to 446 sales in November 2017. The benchmark price for an attached home is $818,500.

 

 

 

Discover if your individual neighbourhood and price band is either a Buyer, Seller or balanced market. Email us to receive the current market stats for November 2018. 

info@leeandpete.com

Get in touch with us to discuss the best opportunities for you in this market. We are never too busy to find the right strategy for you.

info@leeandpete.com

604- 729-5646

MARKET UPDATE- OCTOBER 2018

SALES REMAIN BELOW LONG- TERM HISTORICAL AVERAGES FOR OCTOBER IN METRO VANCOUVER 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region in October 2018 has decreased by 34.9% from the sales records from October 2017.

According to Phill Moore the REBGV President, the supply of homes for sale today has returned to levels that allow home buyers a larger selection homes to choose from however for sellers, this shift in the market could potentially increase the competition among homeowners.

In October 2018, there were 4,873 homes newly listed for sale which represents a 7.4% increase compared to the number of homes listed in October 2017 and 7.7% decrease compared to September 2018.  The MLS System in Metro Vancouver is recording a 42.1% increase in the total number of homes currently listed- 12,984 in October 2018 Vs 9,137 in October 2017 & a 0.8% decrease compared to September 2018. Overall the sales to the active listing ratio for October 2018 is 15.1 % with detached homes recording the lowest sales to the active ratio at 10.3% followed by townhomes at 17.3% and condominiums at 20.6%. Experts generally call a period in which the ratio dips below 12% a buyers market while homes that experience upward pressure surpassing 20% are called a seller’s market.

 

Phill states that this shift allows little relief for those looking to buy in today’s market compared to the hot market of the past year, as prices have decreased by 3-5% depending on housing type. The composite benchmark price according to the MLS home price index for all residential homes in Metro Vancouver is currently $1,620,100. This is a 3.3% decline over the last three months however, a 1 % increase over October 2017.

Sales of detached homes have decreased in comparison to the previous year- 637 homes in October 2018 verses 940 in October 2017. The benchmark price for detached properties has also decreased by 3.9% over the last three months, down to $1,524,000.

Sales of apartments decreased by 35.7% down to 985 sold apartments compared 1,532 sales in October 2017. The current benchmark price for condominium is $683,500. This actually represents a 5.8% increase in comparison to October 2017 however, there has been a 3.1% decrease over the last three months.

Attached home sales in October 2018 have also fallen by 30.5% from 550 sales in October 2017 from 344 in October 2018. Attached homes sit at a benchmark price of $829,200, a 2.8% decrease over the last three months however there has been a 4.4% increase from October 2017.

 

 

 

The current market offers great opportunities for Buyer’s to secure a home, as well as a great opening for sellers to save time and make the most money.

We listed the best bets for both buyers and sellers in Metro Vancouver below.

BEST BET FOR BUYERS 

 

Vancouver Downtown (Attached)

  • Homes between $2 mil to $2.25 mil, Coal Harbour, Yaletown, and 3 bedroom properties

 

Vancouver Eastside (Attached)

  •  Homes between $1.25 mil to $1.5 mil, Renfrew and minimum 4 bedroom properties

 

 Vancouver Eastside (Detached)

  • Homes between $2.25 mil to $3 mil, Collingwood, Hastings East, and minimum 7 bedroom properties

 

Vancouver Westside (Detached)

  • Homes between $4 mil to $4.5 mil, Marpole and minimum 7 bedroom properties

 

BEST BET FOR SELLERS 

 

Vancouver Downtown (Attached)

  • Selling homes in the Westend and up to 1 bedroom properties

 

 Vancouver Eastside (Attached)

  •  Selling homes in Fraser, Grandview, Knight, Main and 2 bedroom properties

 

 Vancouver Eastside (Detached)

  •  Selling homes in Mount Pleasant, Victoria and up to 2 bedroom properties

 

 Vancouver Westside (Detached)

  •  Selling homes in Quilchena and 3 to 4 bedroom properties

 

 

Discover if your individual neighbourhood and price band is either a Buyer, Seller or balanced market. Email us to receive the current market stats for October 2018. 

info@leeandpete.com

Get in touch with us to discuss the best opportunities for you in this market. We are never too busy to find the right strategy for you.

info@leeandpete.com

604- 729-5646

 

MEET LEE + PETE VANCOUVER REAL ESTATE GROUP

Dear valued clients, friends, family and visitors,

 

We are excited to welcome you to Lee + Pete Vancouver Real Estate Group.

Pete Shpak PREC and Lee Bryant PREC, two of Vancouver’s Top Real Estate Agents decided to join forces and combine the strengths of both businesses to create the best Vancouver Powerhouse Real Estate Team in the Lower Mainland. With Lee’s established team and Pete’s powerful online presence, this partnership will be able to provide more exposure to your properties, improved access to Vancouver’s tight housing inventory and a service level that is second to none.

Over the past few months, a lot has happened on our end. We have worked persistently on creating a brand that sets our team apart from others and stands out as the best Real Estate team in a very competitive industry. With the help of a recognized award-winning creative agency, we have built a new website that not only showcases all our current listings but also provides a platform to our ever-growing client base to search for properties in Greater Vancouver, ask questions and learn more about the buying and selling process in the Real Estate Industry.

We are proud of our new marketing materials that will aid in promoting our brand recognition across all media channels.  Our new “RHINO” logo that represents strength, determination, power, and reliability and stands in line with the values of our team.

We take pride in our exceptional customer service, strong ethics, hard work and unrivaled knowledge of Vancouver’s neighbourhoods and strive to maintain being Vancouver’s Top Real Estate Team. With over 10 years of working in the Vancouver Real Estate market and winning several awards including Top 1% of Greater Vancouver Realtors, we have a proven record of success that results in a long list of happy and returning clients.

We invite you to browse our website, search for your dream home or get in touch with us for coffee to talk about everything Real Estate

 

Warmest Regards,

Lee + Pete Vancouver Real Estate Group

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