WHAT’S ON IN VANCOUVER THIS SUMMER

Here’s a quick guide to some events we thought were pretty exciting!

Click the links for tickets or further information!

19 JULY 
42nd Annual Vancouver Folk Music Festival

30 JULY 
Nathaniel Rateliff & The Night Sweats – PNE Amphitheatre

4 AUGUST 
Vancouver Pride Parade and Festival

5 AUGUST 
Vancouver Mural Festival 

7 AUGUST 
Mumford & Sons play BC Place

9 AUGUST
Kits Fest

17 AUGUST – 2 SEPTEMBER 
PNE FAIR

17 AUGUST 
SeaWheeze Half Marathon & Sunset Festival

17 AUGUST 
BLUE RODEO – PNE Amphitheatre

18 AUGUST 
ZZ TOP 50th ANNIVERSARY TOUR – PNE Amphitheatre

20 AUGUST 
98 DEGREES – PNE Amphitheatre

21 AUGUST 
BURTON CUMMINGS – PNE Amphitheatre

23 AUGUST 
SMOKEY ROBINSON – PNE Amphitheatre

25 AUGUST 
STYX – PNE Amphitheatre

27 AUGUST 
UB40 – PNE Amphitheatre

27 AUGUST 
BON IVER – PNE Amphitheatre

Hope to see you out and about.

As always, email us to receive any information on buying or selling your home.

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

MARKET UPDATE- JUNE 2019

Housing supply up, home sales and prices down in June

Home buyer demand was below long-term historical averages in June making for a larger than normal supply of homes.

Total home sales in the residential sector for June 2019 totalled 2,077, representing a 14.4% decrease from sales recorded in June 2018 with 2,425 homes sold. Sales also decreased 21.3% over last month. Last month’s sales were 34.7% lower than the 10-year June sales average.

Ashley Smith, REBGV president states, “we’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver. Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”

On the supply side, there were 4,751 newly listed homes comprising of the detached, apartment, and attached residences. This reflects a decrease of 10% compared to homes listed in June 2018 and an 18.9% decrease in comparison to the 5,861 newly listed homes in last month.

MLS current listings are 14,968 or 25% higher than June 2018, whereby listings totalled 11,947. In comparison to May 2019, MLS recorded an increase of 1.9%.

“Home buyers haven’t had this much selection to choose from in five years,” Smith said. “For sellers to be successful in today’s market, it’s important to work with your local REALTOR® to make sure you’re pricing your home for these conditions.”

The sales to activity ratio in June 2019 was 11.4% for detached, 15.8% for attached (townhouse) and 15.7% for condos. Overall, across all property types, the sales to activity listing ratio were 13.9%.

Metro Vancouver benchmark price for all residential homes currently sits at $998,700 as indicated by the MLS Home Price Index composite. That is an 9.6% decrease over June 2018 and a 0.8% drop compared to April 2019.

June 2019 saw detached housing decrease 2.6% (746) from June 2018 (766). Currently, the detached home benchmark sits at $1,423,500 an 10.9% decrease from June 2018 stats and 0.1% increase compared to May 2019.

The benchmark price for apartments is currently $654,700. This represents a 8.9% decrease from June 2018 and a 1.4 % decrease compared to May 2019.

Lastly, Townhomes or attached homes, sales totals for June were 390 showing a 6.9% decrease compared to June 2018 where 419 sales were recorded. The attached home benchmark price currently sits at $774,700 an 8.6% decrease in comparison to June 2018 and a 0.6% decrease compared to May 2019.

What do these stats mean to you? Call us today and let us help you read the market for your home.

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 February 2019. 

 

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- MAY 2019

May sees modest increase in home sales

Home sales in Greater Vancouver eclipsed 2,000 for the first time this year in May.

Total home sales in the residential sector for May 2019 totalled 2,638, representing a 6.9% decrease from sales recorded in May 2018 with 2,833 homes sold. Sales however increased 44.2% over last month. Last month’s sales were the lowest total for the month since 2000.

Ashley Smith, REBGV president states, “high home prices and mortgage qualification issues caused by the federal government’s B20 stress test remain significant factors behind the reduced demand that the market is experiencing today.”

MLS or Multiple Listing Service recorded 5,861 newly listed homes comprising of the detached, apartment, and attached residences. This reflects a decrease of 8,1% compared to homes listed in May 2018 and a 2.1% increase in comparison to the 5,742 newly listed homes in April 2019.

MLS current listings are 14,685 or 30% higher than May 2018, whereby listings totalled 11,292. In comparison to April 2019, MLS recorded an increase of 2.3%.

“Whether you’re a buyer looking to make an offer or a seller looking to list your home, getting your pricing right is the key in today’s market,” Smith said. “To be competitive, it’s important to work with your local REALTOR® to assess and understand the latest trends in your neighbourhood and property type of choice.”

The sales to activity ratio in May 2019 was 14.2% for detached, 20% for attached (townhouse) and 21.2% for condos. Overall, across all property types, the sales to activity listing ratio were 18%.

Metro Vancouver benchmark price for all residential homes currently sits at $1,006,400 as indicated by the MLS Home Price Index composite. That is an 8.9% decrease over May of 2018 and a 0.4% drop compared to April 2019.

May 2019 saw detached housing decrease 1.4% (913) from May 2018 (926). Currently, the detached home benchmark sits at $1,421,900 an 11.5% decrease from May 2018 stats and 0.5% drop compared to April 2019.

The benchmark price for apartments is currently $664,200. This represents a 7.3% decrease from May 2018 and a 0.5% decrease compared to April 2019.

Lastly, Townhomes or attached homes, sales totals for May were 479 showing a 0.6% increase compared to May 2018 where 476 sales were recorded. The attached home benchmark price currently sits at $779,400 a 7.6% decrease in comparison to May 2018 and a 0.6% increase compared to April 2019.

What do these stats mean to you? Call us today and let us help you read the market for your home.

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 February 2019. 

 

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- APRIL 2019

Reduced demand and increased supply remain the trend across Metro Vancouver’s housing market

The Real Estate Board of Greater Vancouver says decreased demand is making the supply of homes for sale to accumulate across the Metro Vancouver housing market.

Total home sales in the residential sector for April 2019 totalled 1,829, representing a 29.1% decrease from sales recorded in April 2018 with 2,579 homes sold. Sales however increased 5.9 % over last month.

Ashley Smith, REBGV president states, “government policy continues to hinder home sale activity. The federal government’s mortgage stress test has reduced buyers’ purchasing power by about 20 per cent, which is causing people at the entry-level side of the market to struggle to secure financing.”

MLS or Multiple Listing Service recorded 5,742 newly listed homes comprising of the detached, apartment, and attached residences. This reflects an increase of 16% compared to homes listed in March 2019 and an 1.3% decrease in comparison to the 4,949 newly listed homes in April 2018.

MLS current listings are 14,357 or 46.2% higher than April 2018, whereby listings totalled 9,822. In comparison to March 2019 MLS recorded an increase of 12.4%, with 12,744 homes listed the previous month.

“There are more homes for sale in our market today than we’ve seen since October 2014. This trend is more about reduced demand than increased supply,” Smith said. “The number of new listings coming on the market each month are consistent with our long-term averages. It’s the reduced sales activity that’s allowing listings to accumulate.”

The sales to activity ratio in April 2019 was 9.4% for detached, 15.4% for attached (townhouse) and 15.3% for condos. Overall, across all property types, the sales to activity listing ratio were 12.7%.

Analysts are saying that downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

Metro Vancouver benchmark price for all residential homes currently sits at $1,008,400 as indicated by the MLS Home Price Index composite. That is an 8.5% decrease over April of 2018 and a 0.3% drop compared to March 2019.

April 2019 saw detached housing decrease 24.7% (586) from April 2018 (807). Currently, the detached home benchmark sits at $1,425,200 an 11.1% decrease from April 2018 stats and 0.8% drop compared to March 2019.

The benchmark price for apartments is currently $656,900. This represents a 6.9% decrease from April 2018 and is unchanged in relation to March 2019.

Lastly, Townhomes or attached homes, sales totals for March were 358 showing a 22.8% decrease over April 2018 where 464 sales were recorded. The attached home benchmark price currently sits at $783,300 a 7.5% decrease in comparison to April 2018 and is unchanged in relation to March 2019.

What do these stats mean to you? Call us today and let us help you read the market for your home.

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 February 2019. 

 

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- March 2019

Prospective home buyers remain on the sidelines in March

Total home sales in the residential sector for March 2019 totalled 1,727, representing a 31.4% decrease from sales recorded in March 2018 with 2,517 homes sold. Last month’s sales were also 46.3 % below the 10-year March sales average, actually marking this the lowest total for the month since 1986.

Ashley Smith, REBGV president states, “housing demand today isn’t aligning with our growing economy and low unemployment rates. What policymakers are failing to recognize is that demand-side measures don’t eliminate demand, they sideline potential home buyers in the short term.”

MLS or Multiple Listing Service recorded 4,949 newly listed homes comprising of the detached, apartment, and attached residences. This reflects an increase of 27.2% compared to homes listed in February 2019 and an 11.2% increase in comparison to the 4,450 newly listed homes in March 2018.

MLS current listings are 12,77 or 52.4% higher than March 2018, whereby listings totalled 8,380. In comparison to February 2019 MLS recorded an increase of 10.2%, with 11,590 homes listed the previous month.

The sales to activity ratio in March 2019 was 9.4% for detached, 15.9% for attached (townhouse) and 17.2% for condos. Overall, across all property types, the sales to activity listing ratio were 13.5%.

March 2019 Sales-to-active listings ratio 

Detached homes

9.4%

Townhomes

15.9%

Condominiums

17.2%

Total 13.5%

The key is to price homes for the market. Well priced homes attract more buyers and open houses have experienced more traffic.

The general rule of thumb for analysts is home prices adjust downward when the sales to activity ratio drop below 12% for a sustained time. Home prices increase when this ratio exceeds 20% for a sustained period of time.

Metro Vancouver benchmark price for all residential homes currently sits at $1,011,200 as indicated by the MLS Home Price Index composite. That is a 7.7% decrease over March of 2018 and a 0.5% drop compared to February 2019.

March 2019 saw detached housing decrease 26.7% (529) from March 2018 (722). Currently, the detached home benchmark sits at $1,437,100 a 10.5% decrease from March 2018 stats and 0.4% drop compared to February 2019.

The benchmark price for apartments is currently $656,900. This represents a 5.9% decrease from March 2018 and a 0.5% decrease from February 2019.

Lastly, Townhomes or attached homes, sales totals for March were 325 showing a 27.1% decrease over March 2018 where sMLS recorded 446 sales. The attached home benchmark price currently sits at $783,600 a 6% decrease in comparison to March 2018 and a 0.7% decrease over last month.

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 February 2019. 

 

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- FEBRUARY 2019

Housing market conditions continue to favour home buyers

Total home sales in the residential sector for February 2019 totalled 1,484, representing a 32.8% decrease from sales recorded in February 2018 with 2,207 homes sold. Last month’s sales were also 42.5 % below the 10-year February sales average. In comparison to January 2019, sales have however increased by 34.5 % from 1,103 homes sold to 1,484 homes sold.

Phil Moore, REBGV president states that while we have operated in a seller’s market for the past 4 years, conditions have now shifted in favour for buyers, especially for the detached housing market. This results is buyers having more homes to choose from, more time to make a decision and less competition.

MLS or Multiple Listing Service recorded  3,892 newly listed homes comprising of the detached, apartment, and attached residences. This reflects a decrease of 19.7% compared to homes listed in January 2019 and a 7.8% decrease in comparison to the 4,223 newly listed homes in February 2018.

MLS current listings are 11,590 or 48.2% higher than February of 2018,  whereby listings totalled 7,822. In comparison to January 2019 MLS recorded an increase of 7.2%, with 10,808 homes listed the previous month.

The sales to activity ratio in February 2019 was 8.5% for detached, 15% for attached (townhouse) and 17% for condos. Overall, across all property types, the sales to activity listing ratio were 12.8%.

February 2019 Sales-to-active listings ratio 

Detached homes

8.5%

Townhomes

15%

Condominiums

17%

Total 12.8%

Townhomes and condos have now moved into a balanced market, however detached homes remain a buyers market. According to Phil Moore well priced homes attract more buyers and open houses have experienced more traffic. This trend leads into increased sales activity in the spring market.

The general rule of thumb for analysts is home prices adjust downward when the sales to activity ratio drop below 12% for a sustained time. Home prices increase when this ratio exceeds 20% for a sustained period of time.

Metro Vancouver benchmark price for all residential homes currently sits at $1,016,600 as indicated by the MLS Home Price Index composite. That is a 6.1% decrease over February of 2018 and a 6.2% drop over the last 6 months.

February 2019 saw detached housing decrease 27.9% (448) from the detached sales record of February 2018 (621). Currently, the detached home benchmark sits at $1,443,100 a 9.7% decrease from February 2018 stats and an overall 7.6% drop over the past 6 months for detached homes.

The  benchmark price for apartments is currently $660,300. This represents a 4% decrease from February 2018 and a 5.1% decrease over the past 6 months. MLS recorded 759 sales in February 2019, representing a 35.9% decrease compared to 1,185 sales in February 2018.

Lastly, Townhomes or attached homes, sales totals for February were 277 showing a 30.9% decrease over February of 2018 where sMLS recorded 401 sales. The attached home benchmark price currently sits at $789,300 a 3.3% decrease in comparison to February 2018 and a 6.7% decrease over the last 6 months.

 

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 February 2019. 

 

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

EMPTY HOME TAX FOR VANCOUVER HOME OWNERS

Good Afternoon on this Fantastic Friday!

 

Just a reminder your Empty Homes Tax declaration is due FEB, 4 2019

By now, you should have received your Empty Homes Tax Declaration in the mail. Note that ALL homeowners are required to complete & submit the declaration.  

If you have not received it, we highly recommend giving the city a call ASAP! You can call the City of Vancouver at 604 873-7000

Failing to meet or not completing the declaration date, and if the property is presumed vacant, will result in a 1% vacancy tax of the property’s assessed value as well as a $250 fine.

 

Declaring is Easy

  1. First, have your notice with you. Go online to Vancouver.ca/eht-declare

You will be asked for the FOLIO number (Found in the top-right corner of your Assessment Notice) on your bill – enter that number in the field provided

  1. You will then be asked to enter in your ACCESS CODE, which too is on your bill next to the FOLIO number.
  2. You will be asked a series of questions and required to agree on your declaration
  3. Click on “Submit declaration”
  4. Finally, you will receive an email confirmation

 If you are having any troubles or have any further questions, you can call 604 873-7000 and the City of Vancouver can take your declaration over the phone. It’s very quick as well.

 

If the property is not deemed a rental and/or not your primary residence, and you are subject to the tax you can pay the tax by:

  1. Online
  2. Through your bank
  3. Mail a cheque
  4. Pay in person at City Hall Revenue Services

 

NOTE: If not paid by Feb 4th, however, you will ensure a 5% penalty.

 

About the Empty Homes Tax

The Empty Home Tax was introduced by Vancouver Mayor Gregor Robertson, through the City of Vancouver and came into effect January of 2017. The purpose of the tax is to primarily target second properties that could be on the rental market but were being primarily used as business holdings. At the time the tax was introduced, Vancouver rental vacancy rate was very low compared to other major cities at 0.6%, so as a solution to counteract the low vacancy rate the tax was a way to add current vacant homes into the rental market.

Of course, this too was introduced as a way of generating income for the city.  The Empty Home Tax is based on the property’s assessment from the previous year and taxed at 1% of that value. Know that most homes will not have to pay the tax, as it does not apply to Vancouver homes that have been rented for the past 6 months of the year or if your home is your principal residence. Do note, however, that ALL homeowners are required to submit the declaration.

 

Exemptions to the Empty Home Tax

There are a few exemptions that could allow you to not pay the tax:

  1. If your home is under construction
  2. If you home was either bought or sold during the year of 2018
  3. If there are strata restrictions on renting in your building

 

Where are the Empty Home tax dollars being used?

After all the taxes have been collected, the City of Vancouver has indicated that they will then take the net revenues and reinvest them into affordable housing initiatives for Vancouver. The city is illustrating that it will go towards the Vancouver Housing Action Plan to further solve the affordability crisis ensuring that housing in Vancouver will support more residents with varied incomes and make housing more livable & affordable.

 

Is the Empty Home Tax the Same as the Speculation and Vacancy Tax?

No, the Empty Home Tax is completely separate from the Speculation and Vacancy Tax which we will cover in an upcoming communication. To find out more about the Speculation and Vacancy Tax, go online at  https://www2.gov.bc.ca/gov/content/taxes/property-taxes/speculation-and-vacancy-tax

 

As your Vancouver Real Estate Professionals, we feel it is important that our clients take advantage of every benefit and tax savings that they can in the Vancouver Real Estate Market. Ensuring you are not required to pay the Empty Home tax is important for continued savings as a Vancouver homeowner especially with a higher cost of living.  Particularly First-Time Home Buyers need to be aware of the tax and ensure they take the time to make the declaration as every dollar saved counts when owning your first home.

As one of the Top Real Estate Teams, we are deeply committed to our client’s happiness & success. We are proud to build long term relationships with our clients and are always here to assist you with your real estate questions or needs long after the buying or selling of your property.

If you have any further questions about the Empty Home Tax, our team or Real Estate Professionals with years of education, experience and expertise who are ready to assist you with all your questions and real estate needs, please give us a call.  We would love to help you with any questions you may have.

For further information about the Empty Home Tax, you can go online at https://vancouver.ca/home-property-development/empty-homes-tax.aspx

info@leeandpete.com
604- 729-5646

SHOULD I BUY OR RENT A HOME?

Are you torn between buying renting a home in Vancouver? Do you have a fear that you may not be able to get into the Vancouver Real Estate Market? Or maybe you are just having a difficult time finding the right property at the right price?

Recently a client wanted to either buy or rent in Vancouver. He had $100,000 saved in RRSPs that he was willing to potentially put towards a down payment.

The first property he looked at renting was in English Bay. The unit advertised was a 450 Sq. ft studio with a monthly rent of $2000 plus utilities. The second property he looked at was located in Yaletown and was similarly priced.

He then decided to look at property options. This young man started researching Vancouver Realtors because he felt the need for guidance in the Real Estate Market. He came across our website and decided to give Vancouver’s Top Agents a shot. We determined his criteria, which included easy access to transportation if the property was located outside of the downtown core. He also wanted a space that would be spacious enough for two people to live comfortably. After looking at his budget, we advised him to look at East Vancouver; a desirable yet still affordable area especially for young adults and young families.

We secured property for $500,000 near the PNE with transit just out the door. His new home was a 1 bedroom plus den with over 750 square feet of living space on the top floor with a beautiful view of the North Shore mountains.

With interest rates still historically low, his mortgage payment (with a 20% down payment) came to $1,800 plus strata fees of $365 per month for a total of $2,165 – just slightly higher than the rental place!

Why did he choose to own over renting when he could have saved $165?

  • First off, he owns his property and while property values have fluctuated in the past as with any real estate market, over time they have significantly increased.
  • He is currently paying down his mortgage and building up equity.
  • With a spacious den, he decided to rent it out to a friend for $600 to further reduce his expenses.
  • With transit being so accessible, he saves costs on monthly parking downtown

Unlike owning, renting puts you at the mercy of the landlord. Your rent can be increased, you may not be allowed to have any pets and you don’t have much freedom when it comes to wanting to make a few changes to the property and your landlord legally can kick you out of the property for it to be sold. Owning your own property gives you all control over every decision you make.

You can budget. Choosing a fixed rate mortgage allows you to better budget over the term of the mortgage and not worry about year-over-year rental increases.

Your home becomes your savings account. When you rent and move out, you have nothing. When you sell when values are up, you not only get your down payment back, but you get the difference between the purchase price and the selling price, less the principal amount you have been paying on your mortgage.

When you have enough equity in your property i.e. you have paid down your mortgage significantly or property values have greatly increased, you have options. Options to buy another property using the equity in your existing one, which leaves you with 2 properties. Or, you can sell and upgrade into a bigger property with a larger down payment.

If you are concerned with coming up with a downpayment, read out the latest blog post which touches on ways to secure funds. There are many programs as well to help you get into the market and become a homeowner or ask your parents to help with a gift towards the downpayment or co-signing the mortgage.

Don’t shy away from the Real Estate Market, there are plenty of ways to find the right place for you. We, at Lee and Pete Vancouver Real Estate Group love to sit down with you and go over your options and criteria to find a home that allows you to be in charge instead of the landlord and sets you up for building equity in the long run.

Our team consists of the best Vancouver Realtors with years of experience who will help you save time & make more money! Who wouldn’t want that?

Reach out, we love a coffee date with you. Get in touch now & contact us at info@leeandpete.com or 604- 729-5646

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

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