House prices continue to surge in Greater Vancouver

METRO VANCOUVER - House prices continue to surge in the greater Vancouver area, where the price of a typical single-family home has risen by 20 per cent in the last year, hitting $1.2 million in October.

The latest housing price index from the Canadian Real Estate Association shows a 15.33-per-cent jump in the prices of all real estate types in the region between October 2014 and last month. The average sale price of a detached home in Vancouver nearly doubled the national index price of $585,800.

Price gains were slightly more modest for condos, but greater Vancouver still saw the largest jump in prices in the country at 11.39 per cent. A typical apartment sold for $425,800 last month.

Gregory Klump, the CREA’s chief economist, predicts that prices for single-family homes in urban B.C. and Ontario will continue to rise more steeply than those of condos for the foreseeable future.

“The balance between supply and demand is generally tighter for single detached homes than it is for condo apartments, and that’s unlikely to change anytime soon,” he said in a press release.

Sale prices in the Toronto and Vancouver real estate markets continue to outpace those in the rest of the country, pushing the national average sale price to an 8.3-per-cent increase in the last year. Prices in the remainder of Canada rose by just 2.5 per cent in the year leading up to October.

BMO chief economist Doug Porter said the housing market has split into three groups, with Toronto and Vancouver too hot for comfort, the Prairies hit by the sliding price of oil and a middle ground which includes places like Ottawa and Montreal.

Porter described Vancouver’s 19.3-per-cent year-over-year gain in the number of sales out of this world.

"If anything, October saw an even greater divergence of Vancouver from the rest of the country (and perhaps planet Earth)," he wrote.

Across the country, the number of home sales rose by 1.8 per cent from September to October of this year, hitting the second-highest monthly level in close to six years, according to the CREA.

Calgary, Edmonton, Saskatoon and Regina all posted double-digit sales declines in October. Calgary's housing sales are down 36.4 per cent from a year earlier.

"The renewed sag in oil in recent months looks to have triggered a renewed weakening in housing markets across much of Alberta and Saskatchewan," Porter said.

Copyright (c) Vancouver Sun

Maria Mak - Burnaby REALTOR®

Maria Mak. Burnaby REALTOR^®. Metro Vancouver Real Estate Agent

 

My name is Maria Mak 麥福玲, a Burnaby REALTOR® / Metro Vancouver Real Estate Agent with Sutton Centre Realty. 

  

I approach real estate the same way I approach my art...with passion! When it comes to serving my clients, I always come with a big smile and, most importantly, a big heart!

Contact Maria Mak and her elite team @ Sutton Centre Realty or visit her website @ www.mariamak.com. Thank you!

Maria Mak - Metro Vancouver REALTOR® - Buying costs

If you’ve decided to buy a home, it’s important to go into the process knowing all of the costs involved beyond the asking price of the property.

Here’s an overview of costs involved.

Buying costs

Mortgage application

Lenders may charge a mortgage application fee, which will vary depending on the lending institution.

Mortgage insurance

The federal government requires high-ratio mortgages (with less than 20% down payment) to be insured against default. The cost ranges between 1.25 to 3.75 per cent of the mortgage amount which is added to the mortgage principal.

Appraisal fees

Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges and is typically as much as $300.

Land survey fees

Lenders may require a survey of the property. Survey costs vary.

Home inspection fees

A home inspection is a report on the condition of the home that can alert you to any potential issues such as structural and moisture problems, as well as electrical, plumbing, roofing and insulation. Fees can range from $500 - $700 depending on the size of the home and the complexity of the inspection. Some inspectors have surcharges for a secondary suite, a crawlspace, over even an older home.

Goods and Services Tax (GST)

A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.

Buyers will also pay the GST if payable on services such as appraisals and home inspections and survey fees.

Provincial Sales Tax

The PST is generally not payable on services except for legal and notary fees.  Both the GST and PST are paid on legal and notary fees.

2% BC Transition Tax

This is a new tax coming into effect on April 1, 2013. It applies to the sale of new residential homes that are 10% or more complete on April 1, 2013, with ownership or possession occurring on or after April 1, 2013 and before April 1, 2015.

Property Transfer Tax

Home buyers in BC pay a provincial Property Transfer Tax (PTT) when they buy a home. The tax is charged at a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder.

First-time home buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $475,000. There is a proportional exemption for between $475,000 and $500,000. At $500,000 and above the rebate is nil. Click here for more cost saving programs.

Property taxes

Some lenders require property buyers to add property tax installments to monthly mortgage payments.

Pre-paid property taxes or utility bills

A buyer typically is required to reimburse the seller for any prepayments.

Mortgage life insurance

If the owner dies, this type of insurance will pay off the balance owing on their mortgage.

Fire and liability insurance

Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.

Home insurance

Buyers will a mortgage will be required to buy home insurance. To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust. 

Most lenders also require property buyers to carry fire and extended coverage insurance and liability insurance.

Legal or Notary Public fees

Legal or notary public fees and expenses will likely apply to assist with drafting documents and ensuring the title of the home is transferred properly and without incident. 

Moving fees

Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.

Maria Mak - Burnaby REALTOR® - Selling costs

REALTORS® fees or commissions vary. Compensation is always agreed to beforehand between you and your REALTOR®. There is no set commission rate in the real estate profession, and any fee or commission paid depends on the services provided by your REALTOR®, which can vary significantly depending on your needs as a client or the business model used by the REALTOR®.

When is the commission or fee payable?

The Standard Multiple Listing Contract provides that the fee or commission is payable on the earlier of the following:

• completion date under the Contract of Purchase and Sale; or
• the actual date that the sale completes.

 

The GST

GST applies to REALTOR® fees and other services. 

Other

Don’t forget to ask your REALTOR® about these costs when calculating the total cost of selling your home:

• Adjustments, may include property tax adjustments
• Final maintenance and utility costs
• Lawyer or notary fees and expenses – attending to execution of documents
• Costs of clearing the title, including:
  • Discharge fees charged by encumbrance holders
  • Pre-payment penalties
• Insurance – should maintain until the latter of either the date when you receive the proceeds of sale or when you vacate the property
• Home improvements, staging
• Real estate commission fee
• Moving fees

CMHC announces new rules to make it easier for homeowners to rent out property

 

 

Under the new rules, CMHC will consider up to 100% of gross rental income from a two-unit owner-occupied property that is the subject of a loan application submitted for insurance.

Canada Mortgage and Housing Corp. is going to make it easier for homeowners renting out apartments in their principal residences to borrow money, a move that could further heat up markets in Toronto and Vancouver.

The Crown corporation, which controls a majority of the mortgage default insurance market in Canada, announced changes to its rules Monday and effective Sept. 28 which are aimed at boosting affordable housing.

A background document sent to lenders and obtained by the Financial Post suggests the change is aimed at what CMHC sees as a significant part of the housing market.

“Many municipalities across the country now formally recognize secondary rental suites as a source of affordable housing,” CMHC wrote in its document intended for industry partners. “Rents in secondary rental suites are often lower than those for apartments in purpose-built rental buildings.”

The Crown corporation has said Vancouver has 26,600 secondary units which comprise almost 20 per cent of the rental stock in the city.

The changes from CMHC would allow homeowners to count the income from their secondary units when qualifying for a loan, something that would seemingly bring more people into the housing market.

The Crown corporation has suggested this would target two unit owner-occupied homes and would likely include basement rental units, in-law apartments and garden suites known as laneway homes. It suggested, in its document to industry players, secondary apartments usually are self-contained with separate kitchen, sleeping and bathroom facilities.

One key issue will be whether the units are legal. CMHC only recognizes units that are legal or conform to local municipal standards. The Crown corporation says that it’s up to lenders to exercise judgment, when it comes to borrowers proving the units are legal.

Homeowners with less than a 20 per cent down payment and borrowing from a regulated financial institution must get government backed mortgage default insurance. Even financial institutions not regulated by Ottawa, like credit unions, must abide by CMHC rules to be covered by the government backing.

Under the new rules, CMHC will consider up to 100 per cent of gross rental income from a two-unit owner-occupied property that is the subject of a loan application submitted for insurance. The annual principal, interest, municipal tax and heat for the property including the secondary suite must be used when calculating the debt service ratios.

Rob McLister, founder of ratespy.com, said homeowners with legal units can now only count 50 per cent of the income from legal rentals for calculating their household income which determines how much they can borrow. “It will be marginally inflationary for single family homes,” said McLister.

The change comes on a day when one economist predicted prices in the Toronto and Vancouver markets could drop by as much as 30 per cent. “Lower mortgage rates have enabled Canada’s key housing markets to defy gravity for the past few years. But with prices rising dangerously high relative to household incomes, there is the potential for a large correction down the road,” wrote David Madani, of Capital Economics, in a note out Tuesday.

Doug Porter, chief economist with Bank of Montreal, said it might encourage some people to jump into the housing market who might have been on the fence.

“I think first and foremost this tries to address the lack of affordable housing. Whether it will be effective is another issue,” said Porter, who thinks it will help on the margins.

Elton Ash, region executive vice-president of Re/Max of Western Canada, said the changes will make a difference in Toronto and Vancouver. “It could have a very strong positive effect on qualifying for a mortgage,” he said, adding there’s strong interest from consumers in renting out part of their primary residences.

Why a REALTOR®?

Maybe you're buying a home for the first time. Or maybe you're selling your old home to move to something new. Whether buying or selling, you’re involved in an intricate process requiring many specialists. One of these specialists might be a REALTOR^®, who’s responsible for making the transaction as easy as possible for you.

The REALTOR^® Difference

However, not every licensed or registered broker or salesperson is a REALTOR^®. To be a REALTOR^®, the agent must be a member of The Canadian Real Estate Association (CREA). And to be a member of CREA, an agent is expected to be:

• Committed to the REALTOR^® Code: The code is the accepted standard of conduct for all real estate practitioners who are REALTORS^®. It's your guarantee of professional conduct and the quality service. Read more about the REALTOR^® Code.
• Knowledgeable about developments in real estate: A REALTOR^® can get you the information needed to make an informed decision: comparable prices, neighborhood trends, housing market conditions and more.
• Actively updating education: Through courses, workshops and other professional development, a REALTOR^® maintains a high level of current knowledge about real estate.
• Access:  REALTORS^® have access to Board MLS^® Systems, which facilitate the cooperate sale of properties to benefit consumers.

Benefits of a REALTOR^®

Whether buying or selling a home, you can trust that your REALTOR^® will ensure the transaction is completed competently and professionally. You don’t have to worry about the details – your REALTOR^® can take care of them for you. You can get advice from someone with an intimate knowledge of the local housing market. And you can count on the help of a professional who has committed to serve with integrity and competence.

Protecting yourself in an assignment agreement

People buy and sell real estate in BC with a document called the Contract of Purchase and Sale. It describes the rights and obligations of the buyer and seller.

A contracting party can sell those rights to someone else unless the contract states otherwise. This type of transaction is known as an assignment agreement.

In simple terms, someone can buy the right to step into the original buyer's shoes to complete the contract.

The person selling the contractual rights is the assignor. The person buying the rights is the assignee. The money the assignee pays for the contract is the assignment fee.   

Here are 10 steps to take before you enter into an assignment deal.  

You should ensure that:

1. you work with a REALTOR®. Your REALTOR® will help protect your interests and bring knowledge of the provincial legislation that governs real estate transactions.
2. the person assigning the contract has the right to do so;
3. the original contract permits assignments;
4. the original seller is aware of the assigment;
5. the property is or was listed for sale;
6. the identity of every individual involved in the transaction has been verified;
7. all money already paid and owed is accounted for and dealt with in the assignment contract;
8. you seek legal advice before agreeing to pay the assignment fee;
9. you understand the additional risk associated with paying the assignment fee before the original contract is finalized; and
10. you consult an accountant to understand the tax implications.

Welcome to this Beautiful free standing 3 years old West Coast stylebuilding plus restaurant business in Harrison Hot Springs. $998,000

Welcome to this Beautiful free standing 3 years old West Coast style building plus restaurant business in Harrison Hot Springs. $998,000

130 seat restaurant on 33x130 lot situated minutes from beach, tourist promenade, & major resort & hotels. Well designed 2,245 sq ft building has high vaulted ceiling, air conditioning, washrooms, generous & well equipped kitchen plus an extra 350 sq ft outdoor covered balcony. 

Currently serving simple but well received menu, recipient of the 2013 Excellence in Culinary Award. Liquor license, suitable for other menus as well. 

It caters to group functions. It is an ideal family run business that prides itself in building a meal from scratch. All foods are prepared in house from fully fresh products & special recipes. All baking is done on site. Absolutely excellent investment opportunity for this beautiful property plus profitable restaurant business.

Contact Maria @ 604-839--6368 or visit www.mariamak.com for more details and arrange private viewing.

Maria Mak - Burnaby Realtor - Please donate generously or join me in this fundraising event -Kayak for a Cure 2015 - in memory of my mom

Please donate generously or join me in this fundraising event -Kayak for a Cure 2015 - in memory of my mom - which will take place in Vancouver on August 29th 2015. 

Follow the link below and help me make my goal reached this year - THANK YOU.

http://convio.cancer.ca/site/TR/UnitFundraisingEvent/General?px=5506688&pg=personal&fr_id=16335#.Vcdy75VRHIU
 

Maria Mak. Burnaby Realtors. Understanding Agency Relationship when working with REALTOR®

The agency relationship is established through a contract between you, the client, and your agent, the company under which the REALTOR® is licensed. Most REALTOR® use a blue brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's Agent /Buyer's Agent /Dual Agency  

•For your REALTOR® to list your property for sale on MLS®, the Real Estate Board of Greater Vancouver requires completion of a listing agreement.

•Signing this agreement with you commits your REALTOR® to uphold the above obligations.

•The listing agreement also states the compensation amount the seller will pay the REALTOR®.

•The contract of purchase and sale is initiated when an offer is made by the buyer to purchase the sellers's property.

•The contract outlines the terms and conditions of the offer, such as offer price and subject conditions.

•The seller may reject the offer or make a counter offer.

•Once all terms have been accepted and both seller and buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

•Dual agency is created when an agent represents both the buyer and seller in a single transaction.

•This can happen if a REALTOR® who is representing a buyer, sells one of their own listings to that buyer.

•A dual agent must be impartial to both buyer and seller and fully disclose all information relating to the transaction.

•A REALTOR® can be a dual agent only if both seller and buyer agree in writing.

Remember: always read all contracts and disclosure forms before signing. If you have questions about agency relationships contact your REALTOR® or Maria Mak @ Sutton Centre Realty or visit her website at www.mariamak.com , You'll be smilling too!

What are the tax implications of building a laneway house?

A laneway house is a small detached residential infill house that typically fronts on the lane of a larger principal house.
It’s important for property owners to understand their options before building a laneway house or buying a property with a laneway house. Here, you'll find information about the tax implications of laneway houses through these scenarios outlined by the Canada Revenue Agency (CRA).
1 You own a principal residence and you hire a builder to build a new laneway house. You then rent or lease the laneway home to a non-relative.
The CRA considers you to be the builder, and to have:
• sold, repurchased, or “self-supplied” the laneway house at its fair market value
• self-assessed and collected the GST on the sale
• paid the GST on the repurchase of the laneway house
You must account for the GST on a GST/HST return (self-assessing), even if you are not a GST/HST registrant. You may:
• be eligible to claim a GST rebate on the construction of the laneway house, which is considered an improvement to the property, and on the land that forms part of the laneway house. Read: Guide RC4033, General Application for GST/HST Rebates
• claim the rebate on Form GST189, General Application for rebate of GST/HST using reason Code 7. For information, read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• be eligible for a GST/HST New Residential Rental Property Rebate as a builder/landlord to recover some of the GST
2 You own a principal residence and hire a builder to build a new laneway house for a relative, former spouse, or common-law partner to live in as their principal residence.
The CRA does not consider that you have sold and repurchased the laneway house and collected the GST if:
• the laneway house is used primarily (more than 50 per cent) as a place of residence
• the laneway house is not used primarily for any other purpose after construction of the house is substantially completed
• the individual (builder) did not claim any input tax credits (ITCs) when building the laneway house
You can’t claim a non-registrant’s rebate for the GST paid on construction costs. You may:
• be eligible for a GST/HST New Housing Rebate for your principal residence
• claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7.
3 You buy a property that includes a new principal residence and laneway house and you rent or lease the laneway home another individual as a place of residence.
The CRA does not consider you to be the builder of the laneway house or to have sold and repurchased the laneway house, or to have collected tax when you rent to a non-relative.
• You may be eligible for a GST/HST New Housing Rebate on the construction of the laneway house if your relative uses it as a principal residence
• If you rent or lease the laneway house to a non-relative, you may be eligible for a GST/HST New Housing Rebate for your principal house if it is your primary place of residence
• You can claim the rebate on Form GST189, General Application for rebate of GST/HST, using reason Code 7. Read GST/HST Memorandum 19.3.6, Rebate on Non-Registrant's Sale of Real Property
• You may be eligible for a GST/HST New Residential Rental Property Rebate.
For more information, tell your clients to read the CRA’s The HST/HST Implications of the Construction of Secondary Housing Unites (Laneway Housing).

Did you know?

A laneway home increases the value of a client’s home. Building a laneway home:
• could affect the client’s eligibility to claim the Home Owner Grant because of the increase in property value beyond the price thresholds
• may also result in increased property taxes

Laneway houses can affect a client’s principal residence exemption

How does a laneway house affect the capital gains principal residence exemption on a property owner’s income tax? The rules are complicated. Click here to read advice from tax advisor Grant Thornton.
As always, we advise you to seek a qualified legal opinion.
It’s important you understand your options before building a laneway house or buying a property with a laneway house.

 

 

The Benefits of Using a Realtor ®

Selling or buying a home is a huge undertaking involving hundreds of different steps.

Some people go it alone. They see the wealth of real estate resources available online and decide to do it themselves. It's true that there's ample information available, but there are so many tangible and intangible elements to the process that mere information can't cover it all.

Selling or buying a home is a financial and emotional minefield. A Realtor is a local real estate expert with the training, experience, and proprietary market information to guide you through it.
Realtors...

• Know what to do next—they’ve been through the whole process of selling and buying a home many times
• Open up possibilities you might not think of—different neighbourhoods, different types of housing, alternatives that suit your needs and budget
• Ease the intense stress of selling or buying a home by offering perspective and expertise
• Steer you away from costly mistakes by identifying risks
• Educate you about the current conditions of the local market—right down to block level
• Get you the best deal possible by negotiating from experience, not emotion

Search for a Realtor on REW.ca, and browse through the many qualified local experts we have on our site. You can find a local specialist by entering a city or neighbourhood in the search bar. Or you can enter the name of a specific Realtor, real estate office, or franchise.

Maria Mak- Burnaby Realtor - serving her clients in Metro Vancouver for over 25 years

https://realtimes.real.com/s/AU7W0X

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver and Burnaby in British Columbia in Canada for over 25 years with a big heart, with a big smile, most importantly with passion.

Thinking of Buying and Selling Real Estate, Contact Maria Mak and her elite team at 604-839-6368 or visit her website @ www.mariamak.com

What Bank of Canada's latest interest rate cut mean for Economy and Housing Market

Finance expert Penelope Graham takes a look at the anticipated effects of today’s interest rate cut announcement and offers a word of caution

By

Penelope Graham RateSupmarket.ca

July 15, 2015

So much for “one and done” – the Bank of Canada has implemented a quarter-of-a-percentage cut to its trend-setting overnight lending rate. The move brings the current cost of borrowing to 0.50 per cent, and is the Bank’s second attempt this year to use monetary policy to counter the lower price of oil.

However, unlike January’s surprise rate cut,  which caught economists and lenders off guard, today’s move was widely anticipated as a barrage of negative trade, jobs and GDP data point to an impending recession.

The bank rate is correspondingly 0.75 per cent and the deposit rate is 0.25 per cent.

“The bank’s estimate of growth in Canada in 2015 has been marked down considerably from its April projection,” states the BoC’s release. “The downward revision reflects further downgrades of business investment plans in the energy sector, as well as weaker-than-expected exports of non-energy commodities and non-commodities.  Real GDP is now projected to have contracted modestly in the first half of the year, resulting in higher excess capacity and additional downward pressure on inflation.”

Prior to 2015, the overnight rate had been held at one per cent since September 2010.

What Does This Mean for Canada’s Economy?

The BoC concedes that its previous economic forecast hasn’t hit the mark – and today’s rate cut indicates the first round of “insurance” it took in January wasn’t enough. In that month’s Monetary Policy Report, the Bank stated oil’s impact would be ”front loaded”, be concentrated in oil regions and ease after the first quarter, as other economic drivers would pick up the slack.

But the data has painted a difference picture. The economy contracted by 0.6 per cent in Q1, and trade numbers disappointed with a $13.6 billion trade deficit on the books. Now, the bank has changed its tune to call for resumed growth in Q3 and Q4, to be led by Canada’s non-energy resource sectors. GDP growth forecast has been cut from 1.9 to 1 per cent in 2015, and is expected to hit 2.5 in 2016 and 2017 respectively.

Now, questions remain over the impact on the Canadian loonie, which has already fallen 15.5 per cent against the U.S. greenback this year, and is anticipated to drop to the lowest levels seen since 2009.

Mixed Messaging?

In January, it appeared enough action had been taken to ensure oil’s impact would be temporary. It wasn’t long before talk returned of a potential rate hike as soon as early 2016.

Then, communication went off the rails. The Bank of Canada Governor stated that Canada’s Q1 economy would be “atrocious”, and that growth would be stagnant until Q2. The BoC held this stance as recently as June when, in its semi-annual Financial Systems Review, it named a housing crash, rather than oil, as our nation’s greatest economic vulnerability.

“ … given that the oil-price shock is predominantly supply-driven, the negative impact of low oil prices on aggregate income, while large, will be concentrated in the oil-producing regions,” the FSR stated. “… the vulnerability associated with household indebtedness is edging higher, and the overall risk to financial stability in Canada is slightly higher.”

Then, Poloz likened January’s rate cut to “surgery to avoid death”, and the nation braced for a recession reality.

How Will This Affect the Housing Market?

Market watchers have voiced concern that a rate cut would further fuel spiking housing prices.

Today’s record low fixe and variable mortgage rates have made it possible for many buyers to break into the market despite steep affordability. Continued demand has supported price increases.

Royal LePage cautioned the BoC against cutting rates in their latest House Price Survey and Market Survey Forecast http://www.rew.ca/news/vancouver-house-prices-to-rise-by-9-4-in-2015-royal-lepage-forecast-1.1999825. “With most Canadian real estate markets across the country advancing modestly, and some rapidly, Royal LePage advises that a further interest rate cut by the Bank of Canada could over-stimulate markets such as greater Toronto and Vancouver,” their release states.

The Royal LePage survey finds the average price of a home in Canada rose between 3.9 per cent and 7.5 per cent year-over-year in the second quarter, and that “above average price increases aren’t going away any time soon,” according to president and CEO Phil Soper.

“Looking to Canada as a whole, 2015 is shaping up to be a record year for housing, despite the cloud of economic uncertainty caused by low oil prices and twitchy global economies,” he added.

Will This Hurt Our Debt Levels?

Whether lower interest rates would further fuel household debt levels has long been a main economic concern. However, a poll held by CIBC this week finds the vast majority of Canadians would not be prompted to borrow more.

According to the poll: 

• 93 per cent of Canadians say they are unlikely to borrow more money if interest rates fall;
• 60 per cent say lower rates would have no impact on them; and
• 33 per cent say they would use lower rates as an opportunity to accelerate debt repayment.

While historically low interest rates make it possible for consumers to continue buying in markets with steep affordability, the onus is on borrowers to ensure they’re not overextending themselves on their mortgages. Given the Bank of Canada’s current forecast, interest rates are expected to begin their rise over a two-year horizon – so those locking into five-year fixed terms currently could experience a very different rate environment come renewal.

Heed the golden mortgage rule, and build a minimum of two per cent into your monthly housing affordability to protect against future shocks.

For all your professional premium real estate services, contact Maria Mak and her elite team @ www.mariamak.com

Maria Mak.Burnaby Realtor - Professional real estate services

Maria Mak is a dedicated professional Realtor at Sutton Centre Realty, she has been serving her clients in Metro Vancouver and Burnaby in British Columbia in Canada for over 25 years with a big heart, with a big smile, most importantly with passion.

Thinking of Buying and Selling Real Estate, Contact Maria Mak and her elite team at 604-839-6368 or visit her website @ www.mariamak.com

Maria Mak - Burnaby Realtor - Do Condos Need a Home Inspection?

Condo - to inspect or not to inspect!

2015 has be an amazinyear for real estate in Canada, especially in the Vancouver Area. This assessment is not exclusive to single family homes, as sales of low-rise and condominiums also saw growth. This upward trend is expected to continue, with the spike in condo sales and growing consumer confidence, developers are gearing up for the launch of new projects all over the city.

Moreover, the steady rise in prices for low-rise homes in the Greater Vancouver Area may have an influx of individuals considering condo ownership. The Toronto Star reports, “Sky-high house prices, and a shortage of low-rise homes in the City of Toronto in particular, is also likely to drive more buyers to condos this year.”

With more people expected to pursue condo ownership over home ownership, there is additional emphasis being put on the following concerns: what is a Condo Inspection, and do I need one?

The Government of Ontario’s Ministry of Consumer Services has released a helpful guide for those new to the condo market, outlining what to expect when buying a condo, including a comparison of new versus resale units, condo fees and association memberships, and much more. With reference to inspections, the Ministry of Consumer Services says, “We recommend that buyers of resale condos get a Home Inspection. A quality Home Inspection will help you make an informed decision before buying a home. It will help you to understand a home’s condition and value.”

Many do not see the value in having a Condo Inspection performed. Condos are so different from low-rise homes, and this can lead condo buyers and real estate agents to conclude that they don’t require an inspection. There may be no access to the roof, no basement, no visible structure, and often no separate heating and cooling system – so what’s the point of an inspection?

While a condo does differ from a low-rise home, it still possesses the potential for issues, which buyers should be made aware of. Your inspector may not be able to gain access to the roof, but they will be looking for evidence of what is happening in the unit above 

Is there any leakage or moisture seeping into you unit? 

There may or may not be a complex heating system in your suite, but there are many other systems within your unit that will benefit from being assessed by a professional, like the electrical and plumbing systems.
Your inspector will also check your appliances, both for functionality and safety. Are they working properly? Have they been recalled for safety issues? At the end of your inspection, you will receive a detailed report of the issues that have been uncovered and timelines for maintenance.

Although many people consider a condominium to be low-maintenance, this is generally only true with respect to the common elements. Electrical, plumbing and heating problems that crop up within the unit can surprise many new condo owners. A leaking shower stall, water-damaged hardwood floor, and aging heating coil can each cost thousands of dollars to repair.

Having a Home Inspector go through your condo with you, letting you know of any existing issues, or areas where issues may arise, will help you gain a more complete understanding of what to expect should you become the owner .

Many condo inspectors have been trained to assess condos and do recognize that it is a very different type of dwelling, and perform their inspection accordingly. The Condo Inspections usually include:

• An inspection of and consultation on the systems within your unit, focusing on their current condition and how they should be maintained
• A detailed investigation of all major appliances
• A check for manufacturer recalls on appliances
• A detailed inspection report that documents the condition of systems, components, and appliances, including illustrations, technical diagrams, and helpful maintenance information

Contact Maria Mak @ www.mariamak.com - your local Metro Vancouver and Burnaby Realtor, she can help up locate the most professional home inspection services should you considering before buying.