So here we are. Everyone is an expert in predicting what real estate will do in the next year. Me included.

Why not? My predictions are as good as any of the experts out there. Does any one rem,ember what they were telling us just a year and a half ago? Predicting doom and gloom, just like in the USA. Prices will collapse and you will be able to buy a home in Vancouver for half the price.

I said it would not happen and if you are interested I can tell you why. But that is not what this blog is about. By the way all those experts actually got paid for all those doom and gloom predictions. I didn't.

So assuming that we, just like the weatherman who has a lot more scientific meteorological help in predicting the weather, really don't know what is ahead. And the weatherman only predicts a few days ahead.

But here is what I know for sure. The numbers. Ahh , the numbers. You can make anything work with numbers.

Anyway. let's assume that you decide to buy this TH in Burnaby listed for $289,000. Yo got 5% down payment, and that will leave you a mortgage of $274,550. At 3.99% interest rate on a 5 year term and 25 year amortization, O.A.C., (and I heard of lower rates), your monthly payment would be $1442.

But, listening to all those experts, you say to yourself, I will wait for the prices to come down. So you wait and sure enough, the prices are down 10% in a year from now and you decide it's the right time to buy.

Wait!. While you were waiting for the prices to come down, the mortgage rates went up 1% to 4.99% (same terms as above) Your calculation on a lower selling price shows that your mortgage will only be $260,100 and your payment $1435 p.m.
Not much difference in payments, but you saved $25,900 off the price. Sounds pretty good, right?

Well, lets just look at the details. At 3.99% over 5 years you would have paid $35,585 towards the principal, and at 4.99% you would have paid $28,431.

Applying these two amounts to the two different mortgages, it would still leave you with a lower balance even if you paid 4.99% interest, by $7276 after 5 years.

So you are still better off by waiting, right? WRONG!

Unless you were staying in your parents basement, you were probably renting. A one bedroom apartment would have cost you, conservatively, $750 p.m., x 12 = $9000. You saved $7276 but paid someone else $9000 for rent.
You actually LOST money. $1724! You could have taken your sweetheart for a nice holiday and have some shopping money left.

Not a great deal.
This calculation does not include some incidental expenses, but it was designed to illustrate that low interest rates are more important that a price of the property.

Unless you are investor/flipper, and you have gobs of money burning a hole in your sock, this is not for you. You can wait and pick your time.

But for the rest of us mortals, the message is, if you are ready to buy, do it now. It won't get much better than this.

Happy HOMEHUNTING! 

Create your own video slideshow at animoto.com.

If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net

With all the heat we have had in the last few weeks, it didn't seem to have much effect on the local real estate.

It's cooling and cooling fast.

We have just started a new report; MID MONTH REPORT FOR SALES ACTIVITY
which will update sales trends in detached and attached, (condos and townhomes),  category.

If you like me to add you to the email list for this particular report, just drop me an email with send me mid month report in the subject line.

What this report will give you a sneak peek at the trend in sales activity, so you don't have to wait for the Real Estate Board monthly sales report.
If you are thinking of selling or buying, this report will tell you what you may expect when you decide to buy or sell a property.
A rise in sales activity would be good sign to buy, before the prices respond to stronger activity, or if you were sitting and waiting for a market move to sell, this would give you heads up before everyone else find out and start listing.
This month report shows that sales activity is still in decline anywhere from 30% to 100%, depending on the area and type of property.

Here is this months Mid Month Report

 If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net

The market is changing and going through it's phases.

With more listings on the market and the interest rates on the way up we are slowly switching from a sellers to a buyers market.
Is that bad?  Your home will cost you more?

It depends. The way some of the buyers behaved in the sellers market, it may actually do them some good. And why is that?

In a frenzy of rising prices and lack of inventory, buyers were making some pretty stupid decisions. Like, buying a home without having it inspected!! You are making your most important decision of your lifetime, committing yourself to mortgage payments for the next 25 or so, years, and you don't even want to know in what shape is your future home?? For those buying into a strata, condo, enviornment, it was like, you want me to read strata meeting minutes for the last 2 years? I don't have time. If there are no tarps it should be OK!!!

Stupid or what? You buy a $7000 car and you take it to a garage to make sure it doesn't have any problems. Helooo!

Homes can have a lot more suttle problems or real ones you may not even think of. Some of those buyers have had some rude awakenings. Let's hope it wasn't you.

In a buyers market the buyers are not rushed. They have time to think, assess, inspect and decide overnight, (at least), without to have to make a snap decision. They can make a purchase without that tight gut feeling of, Oh  my god? What did we do?

That is not to say that a home of any kind may not have some issues. But at least you get into it with some knowledge based on some good research and good home buying practices.

And how does this "new  market" scenario affect the seller's?

Read it in my next post about seller's choices. 

Jeff Stark works with Buyers and Sellers to guide them through a complicated process of Buying and Selling real-estate with a minimum of hassle making the process enjoyable, as it should be.

Finding your dream home is not that difficult. Check this video

If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net

There was some good news in the Vancouver Real Estate Board's news release.

The Real Estate Board of Greater Vancouver (REBGV) reports that new listings for detached, attached and apartment properties in Greater Vancouver totalled 7,004 in March 2010. This represents a 60 per cent increase compared to March 2009 when 4,385 new units were listed, and a 52.1 per cent increase compared to February 2010 when 4,606 properties were listed on the Multiple Listing Service® (MLS®).

At 13,538, the total number of property listings on the Multiple Listing Service (MLS®) increased 19 per cent in March compared to last month, but remains 7.6 per cent below this time last year.

"The total number of homes listed for sale on our MLS® is at its highest level in 10 months, which translates into more options and variety for those looking to buy during the traditionally busy spring period," Jake Moldowan, REBGV president said. more.....

Sales are up but the listings are up as well.
Good news for the buyers?

Depends how you look at it. For a long time we have been in a draught. Not enough listings for the number of buyers out there.
So with the latest statistics released by the reale state board, it would seem that the problem has been solved.

Not just yet.
In this graph we can see that the problem is still there. The sellers are still in control in many areas. If you assume that 1 would be a total sellers market, than 10 would be ideal buyers market.
Check the graph and see for yourself. Buyers are still having a tough time finding the right properties without haveing some competition.

If you are looking for a home to buy you need some help.

If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net

Every day I deal with sellers and buyers in real estate transactions. I notice that first time buyers are so excited about getting into a new home that they seem to take the paperwork very lightly.

It is said that the new car manual is the best published and least read book in the world. When was the last time you had a look at one of those?

See what I mean! If you ever bought a new construction, when you signed on the dotted line, you got this fat, boring document called, The Disclosure Statement.
Did you read through it? Unfortunately many of the buyers don't and than they are surprised when certain rules or conditions make their lives miserable.

In a regular re-sale transaction, there are probably more papers to look at. Two years of strata corporation meetings, bylaws, rules, financials.... Wow. Why do we have bother? Building looks pretty good, I was told it has no problems, so what can be bad.

In re-sales it is even more important to read all the paperwork. It's like buying a used car. Nice and shiny, runs good, looks good, so why would I have to take it to a mechanic?

Strange enough, there are more people taking their cars to a mechanic for a check up before buying, than there are buyers reading all the paperwork.

Unbelievable. The car costs $20,000 and the condo $200,000 ???

So if you are about to buy a re-sale condo or a townhouse, make sure that you review these 10 important points.

1. What is the monthly condominium fee and what does it pay for? The monthly strata fee can range quite dramatically from condominium to condominium. The fee is a by-product of the number of units, the annual expenses to maintain the common area, whether the condo is professionally managed or self-managed, the age and condition of the project, and other variables such as litigation. For budgeting and financing you need to know the monthly fee and exactly what you are getting for it. Although they relate to the size of the unit, strata fee's are calculated according to "Unit entitlement'

2. What are the condominium bylaw and rules? Condominium/Strata Bylaws govern the operations of the Strata Corporation, and all new projects start with the Standard Bylaws according to the Strata Property Act. Subsequently, the Strata Corporation may make some changes, and these, to be valid, have to be registered and filed at Land Title Office. Bylaws can, as an example,  prohibit pets, your ability to rent out the unit, and perform renovations. Make sure you also carefully review the Condominium/Strata rules and "regulations". Under the Strata Property Act, a strata corporation has rules, not rules and regulations. Rules govern the use, safety and condition of common property and common assets. Regulations are part of the Strata Property Act and are made by the Lieutenant Governor in Council.

3. How much money is in the Contingency reserve account and how much is funded annually? The contingency reserve fund is like an insurance policy for the inevitable capital repairs every building requires. As a general rule, the fund should contain at least 25% of the annual revenue budget, and in the case of older projects, even more. If the Contingency reserve account falls under 25% of the just completed operating budget, the Strata Corporation must contribute, by way of increasing strata fees, a minimum of 10% of the total contribution to the budget of the current year. Make sure you request and review the Strata Corporation financial information.

4. Are there any contemplated or pending special assessments? Special assessments are one time fees for capital improvements payable by every unit owner. Some special assessments can run in the thousands. You need to be aware if you are buying a special assessment along with your unit.  It's a good idea to ask for the last 2 years of strata meeting minutes to check what's been going on with the the particular condominium/strata project..

5. Is there a professional management company or is the association self-managed? A professional management company, while an added cost, can add great value to a condominium with well run governance and management of common areas.

6. Is the condominium involved in any pending legal actions? Legal disputes between owners, with developers or with the association can signal trouble and a poorly run organization. Legal action equals attorneys' fees which are payable out of the condominium budget and could result in a special assessment. 

7. How many units are owner occupied? A large percentage of renters can create unwanted noise and neighbor issues. Check the Bylaws for the rental restrictions and review Form J

8. What is the condominium fee delinquency rate? Well run Strata Corporation usually doesn't have huge delinquency issues. Review the accounts receivable information as part of the financial information requested.

9. Do unit owners have exclusive easements or right to use certain common areas such as porches, decks, storage spaces and parking spaces? To find out the status of these kind of areas, consult the Strata Plan

10. What Does The Master Insurance Policy Cover? Strata Corporation must carry adequate building master insurance policy and it's cost is part of the yearly budget. Each owner should however carry its own policy, to cover contents and other losses. Check out a "Condo Insurance" with your insurance provider. Some of the policies may cover you against Strata Corporation assessments.

Besides reviewing these 10 questions when purchasing your strata unit, make sure that you also review the, Property Disclosure Statement-Strata Properties which is completed by the seller and may contain additional information on the building.

You have to do proper research and due diligence with the help of your experienced Buyers Agent, before any deposit money is given.

Helpful sites;
Clark Wilson LLP     http://cwilson.com

Home Protection Office http://www.hpo.bc.ca/

Talk Strata  http://www.talkstrata.com/

Condominium Home Owners Association http://www.choa.bc.ca/

If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-290-7890 or email me at jeff@jeffreystark.net