There is a lot of talk in the market about buying investment properties or homes. While Real Estate has been a fantastic wealth builder for many, results are never guaranteed…

When considering real estate as an investment, consider wisely. As with any investment, there is no guarantee on your return. We all know the market can be volatile, and after the massive amount of foreclosures that happened – mainly in the US – back in 2009, we have collectively witnessed that not all home purchases are going to pay off. Sadly, a lot of these purchases were for home dwellers and not investors, but it opened up a large market for investors once the foreclosures wiped out so many family homes.

Having a backup plan and a well-rounded portfolio of investments, along with your real estate investment is an ideal scenario. We all know the terms “don’t put all your eggs in one basket” …well that overused phrase fits perfectly in this situation. Tying up all your equity into a home in the hopes that you won’t lose, is like placing your entire hand on black …it’s high risk. And yes, the last few years have been kind to investors who got in early, but that is no guarantee of future gains.

Risky Investment, a home or a great opportunity?

Knowledgeable local Realtors can be great “home investment advisors” when it comes to wise real estate choices and what would, or could, or shouldn’t be a real estate investment vs. what should be considered for long-term home dwellers.

Sometimes purchasing a home should be exactly that – a purchase of a home. A place where you rest your head, build memories, and stay put for a good 10-15 years …AFTER which time it might be deemed a good investment and worthy of selling.

Depending on where you live, real estate is becoming increasingly more difficult to purchase as an investment. Depending on if you’re looking to buy in Surrey, Langley or the White Rock areas, a trusted Realtor can advise you on which areas are great as a home purchase location for long-term investments, and which areas will likely pay off as a quick turnaround investment purchase.

If you’re a savvy investor you’ll understand the risks involved, and with a savvy Realtor to back you up – many inherent risks can be minimized. But, always remember that knowing when to be a buyer and when to be a seller comes down to the type of investment you want to make and the risk or loss you’re willing to take.

The need for knowledge

Many Realtors became increasingly educated about the banking system after the economic crash of 2009 and the creation of $0 down mortgages that cost a lot of people their homes. So whether you’re buying or selling, make sure to choose an educated Realtor who you will give you wise counsel on your purchasing decisions, not just a Realtor who can walk you through a house and show you the selling features.

As an educated and experienced Realtor, I’d be thrilled to assist you with making a wise purchasing decision. Give me a call and let me help you best diversify your investment portfolio, and let’s see if and where real estate fits into that picture!

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Choosing a Realtor is like choosing a counselor – it has to be the right fit. You want to ensure your Realtor is well aware of your needs and expectations, and will address those issues (among others) with you effectively. A recent study brought to light the following concerns held by buyers and sellers in the marketplace:

• does their Realtor understand the importance buyers place on the Realtor as it pertains to his role in advising on conditions and subjects when preparing offers and negotiating the purchase price?

• Realtors are more focused on the property search aspect of their role, while consumers place a higher priority on transactional processes.

• Realtors may underestimate the importance sellers place on the Realtor and his role in establishing proper pricing levels for their home. Consumers report they are twice as likely to rely on their Realtors as the most trustworthy source of information rather than themselves.

• Realtors may currently underestimate the impact of changing market conditions on consumer expectations. Consumers see the current market as increasing their expectations of Realtors.

83% of buyers considered it very important that their Realtor could negotiate a reasonable purchase price on their behalf.

Whether buying or selling, both parties want to know their Realtor has their best intention at heart. 74% of sellers noted that it was very important for their Realtor to understand their financial objectives.

REALTORS® are the most trusted source of information when Sellers are determining the listing price for their home. In fact, Sellers are twice as likely to trust their REALTOR’S knowledge, as they are to trust their own knowledge when setting their expectations for the value of their home.

Being aware of your concerns, and understanding how your Realtor can address them are key factors in buying or selling your home. If you don’t voice your concerns clearly to your Realtor, he can’t begin to understand or know what they are. But by having a knowledgeable Realtor – he will often address your concerns for you – especially as a first time buyer who won’t always know the right questions to ask.

The list above is a great starting place to making your own list of personal concerns whether you’re entering the marketplace as a buyer or seller.

As a Realtor for the Langley, Surrey and White Rock communities, I am well prepared to address your real estate concerns, including marketplace value – whether you’re buying or selling. Peace of mind is definitely my prerogative as your Realtor and I look forward to trouble-shooting with you!

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Don’t Miss…

The Ridge Meadows HOME SHOW!

Whether you’re from White Rock, Surrey, or Langley – Friday, Saturday & Sunday May 4, 5 & 6 – Maple Ridge is a destination point. Hosting their annual Ridge Meadows Home Show, this town turns into fun, informative, yet still affordable, family affair!

With more than 375 exhibitor booths including: home renovations, home construction, home decor, home furnishings, home electronics, landscaping, outdoor equipment, wellness, beauty, fitness, cooking, wine …the list consists of ‘something for everyone’.

Each day there is ongoing demos and how-to seminars, tasty food tidbits, and free product samplings to try before you buy.

Let’s not forget the ‘Family Fest’ …this event is totally free also, with stage performances, make and take crafts, hoola hoops, hoppers, giant bubbles, bouncy castle, face-painting, petting zoo – the list goes on and on.

Also on site for kids and kids-at-heart alike – the West Coast Amusements Carnival! This classic carnival comes with all the fun, rides, and games one needs to complete their day in the country.

Tasty food at great prices, whether your flavour is Greek, Thai or Pizza …the menu comes equipped for every palate.

Some come on out this weekend and share in the latest home renovation trends, then treat your family to all the entertainment you can fit into a day!

Free parking. Free shuttles. $3 per individuals or $6 per family.

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From Hope to Pemberton … the Lower Mainland is an abundant playground bursting with natural parks and trails. We’re all familiar with the Sea to Sky, famous to us all in the Lower Mainland long before the 2010 Olympics. But outside of this winding path of a highway, there are so many other gems worth noting, and definitely worth visiting.

Take Hwy 1 past Surrey, Langley, Abbotsford and Chilliwack …and nestled in the back corners of Agassiz you will find Harrison Hot Springs. A destination any tourist information booth, in close proximity to this area, will tell you about. It’s quaint, beautiful, and bursting with nature’s perfections. From crystal clear water, to distant snow-capped mountains, this must-see is a beloved hot spot for nearby locals and far-flung tourists alike.

Recently I had the opportunity to visit the “hidden springs” not overly advertised in this area. I wanted to keep this secret hidden as this beautiful natural spring has already being defaced by so many disrespectful hooligans, but at the same time – this amazing gem needs to be voiced in hopes that those who appreciate such things will force action on maintaining it.

The logging that goes on here is alarming, but that’s a whole other blog about the lumber industry and the housing market.

I digress.

Driving up the winding mountain road, we discovered owls and waterfalls and bears (oh my!). Nearly two hours of 4×4 venturing later we came upon an avalanche perfectly disastrous in nature, and only 5 minutes from out destination point. True story. Granted it wasn’t barreling down the mountain when we arrived, it had clearly been there for a day or 10, but standing 8 feet high, and 100 feet wide lay a wall of snow and trees, of which we had to clamber over to get to our final destination point.

And clamber we did.

And let me say; it was well worth the two-hour drive, and the hike over this wall of trees and snow …because at the end of this natural disaster steamed a display of nature’s perfection. A bubbling river alongside a hose of hot springs flowing into an –unknown aged- barrel. If you can block out the carnage of ruined platforms, strewn garbage and the unfortunate defacing of the natural pool (that was dug out by the lady who once lived at a cabin in these woods, which was burnt down by aforementioned hooligans), then all you see is natures hot tub amidst trees, rocks and rivers.

This adventure still has me smiling!

So whether you’re from Surrey, White Rock, or Langley …pack a picnic, take a garbage bag, and make the trek out to nature’s nook on Harrison’s mountainside. But please – take your garbage with you and leave the perfection behind.

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The Fraser Valley area features homes of all kinds and the area is so diverse that home and real estate trends are not always easy to spot. Some trends are a passing phase, while others have staying power. Home trends, for instance, are worth noting. Especially if you’re in the market to sell your home, it can raise the value of your home substantially. Knowing your market – whether it is Langley, Surrey or White Rock – and why people are looking to buy in your area are important factors, but the trends I want to mention transcend location, and trump the times.

Real Estate Trend 1. Retro Real Estate

Homes built earlier than 1995 have a certain style to them. Equal split levels, rectangle shape, fairly boxy both in outer and inner appearances. However, these homes were once affordable and usually come with larger properties …so if you find yourself living in one of these homes – goldmine comes to mind! Taking this older style home and having a contractor come in to build on a deck, install a front entrance patio, or blow out a kitchen wall, might seem like a pricey daunting tasks, but this will take your circa 1995 home from ‘has-been’ to ‘must-have.’ Many home buyers are looking at “retro real estate” as the pricing is seen as a bargain, but whether or not it’s your home that will be selling, depends largely on its unique curb appeal.

Real Estate Trend 2. Bringing the Outdoors In

Keeping in mind the large properties these older homes often offer, it leaves a lot of room for – not only expansion of your interior – but also the added value of setting up an outside space that is an extension of your living play-zone. Hobby farms are all the rage, so having a garden space, perhaps a fruit tree, and even a chicken coop …in an organized and clean setting… this could set you apart from the Jones’s AND the Smith’s!

For the ultimate play-zone – the hot tub is a must have. Buyers see “hot tub” on the real estate listing and instantly envision their new oasis. However, randomly plopping down a hot tub in the middle of the yard isn’t going to maintain this oasis vision. Esthetics is key to having your outdoor space be part of a ‘lifestyle agenda.’ Make it a lasting trend by creating a scenic space for your outdoor jet tub that gels with the rest of your home and garden.

Real Estate Trend 3. The Kitchen The Kitchen The Kitchen

The kitchen is to the final decision, what location is to the initial decision – the focal point of the buy. Having a kitchen that is open, and spacious (or at least appears as such) is key to selling your home. The kitchen isn’t just a place for cooking dinner; it’s the entertainment hub of your living space. Whether it requires blowing out a wall, or knocking down old cabinetry, open kitchen space isn’t just a trend, it’s a smart move by homeowners everywhere (sorry Fraser Valley, kitchen refurbishing is a national trend!).

Real Estate Trend 4. Go Green or Go Home

Ideally you have “gone green” in your home already, whether it’s by recycling or installing energy efficient lighting, it is, after all, 2012. But add to this a noticeable “Go Green” factor. Perhaps instead of a garborator, you create compost outside (alongside your chicken coop of course!). These are seemingly minor details that create a major touch point for us Realtors to buzz about when we show your home.

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I speak for all true Canuck fans when I say that there wasn’t a dry eye in the Lower Mainland on Sunday after the Canucks lost their right (once again) to win the Stanley Cup. Not only is hockey our rite of passage as Canadians, but living in the Canuck crazed outskirts of Langley, Surrey, White Rock and beyond …it’s just simply a good community event. It would seem society in general is lacking a sense of community in today’s busy urban settings, so I am all for it when something like the 2010 Olympics, or Canuck playoffs bring fans and band wagoner’s alike together in celebration!

This past weekend also featured one of my favourite annual past-times – The Auto Show. Not just one, but two were held this past weekend, in both Abbotsford and Fort Langley. For those who can appreciate the high-gloss, cherry red paint on a vintage Corvette, or the fatboy seat on a classic Harley, or the smell of original worn-in leather – either one of these auto shows was the place to be.

If you’re looking for some great community events around town, here is a link for you to find out what’s happening in and around your area:

http://www.bcliving.ca/entertainment/whats-happening

One of my personal favourites to keep in mind – and coming up quickly as May fast approaches – is The Cloverdale Rodeo. This fun event is going on from May 18-21, and is sure to be packed with activities:

http://www.cloverdalerodeo.com/

Here you’ll find cowboys and cowgirls alike kicking back with fairground fun such as carnival rides and games, as well as adult activities in the Longhorn Saloon that features live entertainment in the evenings. And let’s not forget the rodeo itself! This Country Fair is celebrating 124 years, and wouldn’t be complete without a mechanical bull on site. Come see if you have the 8 seconds it takes to be the real deal.

Also coming up in May is the May Day Parade in historic Fort Langley. Enjoyed by all, this is one of BC’s longest running parades, celebrating 90 years this May.

http://www.fortlangley.com/90th-annual-may-day-parade-celebrations

So let’s collectively take a breath, release the Canucks back to whence they came, and look forward to enjoying our communities outside the Rogers Arena. Ready …set …see you there!

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Recently the media has been making quite a ruckus about “Transfer Property Tax” so I wanted to make mention of this and address this warranted concern. While this is definitely a tax on some, know that there are a number of exemptions available to purchasers so that the tax is not payable.

The Basics

The Property Transfer Tax is a tax payable to the Provincial Government by purchasers of real estate. The tax applies to all types of real estate, whether residential, commercial or industrial. The amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value and 2% on the remaining fair market value.

“Fair Market Value” is best described as the price that would be paid for a property on the open market (which is usually the actual purchase price paid for the property). If the transfer of property is taking place without the exchange of money, the fair market value must be the fair value of the property if this same such property had been sold on the open market. Although some would argue that “fair” when it comes to matters of taxes – is not fair at all. That’s where knowing the ins and outs of this tax is important.

The big Transfer Property Tax winners… First Time Home Buyers!

The best news is for “First Time Home Buyers”. Keep in mind to qualify for an exemption to the Property Purchase Tax as a First Time Home Buyer, the following criteria must be met:

• Purchaser must never have owned an interest in a principal residence anywhere in the world at any time;

• Purchaser must be a citizen of or a permanent resident of Canada;

• Purchaser must have resided in B.C. for 12 consecutive months immediately before the date they become the registered owner, or the Purchaser has filed two income tax returns as a British Columbia resident within the prior 6 years of becoming the owner;

• To obtain full exemption, the purchase price must not exceed $425,000.00. A partial exemption is available for homes between $425,000.00 and $450,000.00 (see formula below);

• Purchaser must move into the property within ninety-two days after registration of the purchase of the property and reside in the property for at least one year;

• Pro rata exemption where property exceeds .5 hectares or a portion of the property is not residential (i.e. commercial lofts) – purchase price of entire property must not exceed the price limitations.

Non-first timer’s beware!

If you are not a first time home buyer, be aware of some additional costs that you may run into with upgrades. As the media is buzzing about – they can come as a shock to those who set out to merely make a few home renovations. Some of the concerns being raised are for additions and renovations such as coach home add-ons after the home have been built or even the paving of a driveway (and other similar activities that increase a home’s value).

A knowledgeable real estate agent can address these concerns and turn an anxious home buyer into a calm decision maker.

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Wondering if now is a good time to buy in the greater Vancouver area?

Real estate market trends are likened to most trends – they come and go with supply and demand. Housing prices fall into such market trends and vary depending on factors such as: Location – urban vs suburban; Features – hardwood floors, surround sound system, landscaped retaining walls; Amenities – gym, pool, theatre room. So although the Housing Price Index (HPI) is often what most investors will consider for their purchasing decisions, those who are first-time home buyers should ensure their Realtor knows the real estate market outside of these trends.

Home buyers and investors alike should keep in mind that the HPI is a general overview of pricing based on a home’s features, rather than the actual value of the property. Again, this is where a knowledgeable Realtor can truly help make your purchase a well-informed investment. They have a better understanding of what’s been sold in any given area, and the potential boom taking place in that location.

Where some investors might be looking for a quick turn around on their dollar, home buyers are often looking for a long-term investment. Investors might also be looking for rental units which feature the most appealing amenities in a downtown condo, where a home buyer may want information on local schools and programs for their children. The right Realtor can provide this information.

It’s a popular choice among first-time home buyers to attend various open houses in the hopes that, whomever is hosting the showing, will have their best interest at heart. Although they might be knowledgeable and consider your needs as it applies to their current listing, their main objective is to sell the home in which the open house is intended for.

Skip the sales tactics! Make a well-informed decision and choose to attend open houses with your Realtor of choosing and not the one chosen for you.

It goes without saying that we all want the best value for our loonie, especially in an economy which is still struggling in an insecure environment. Making a sound real estate investment requires a “working-for-you” Realtor. Someone who respects your investment and potential life-long decisions on which property to invest in or call home, someone who’s desire is to meet your needs and not just to sell you they’re latest listing.

Understanding market trends requires someone who is immersed in the market. Find a Realtor who can differentiate between that which is trendy and won’t maintain its value, and that which is trend-worthy and will bring both the investor and the home buyer their deserved return. Although fashion trends might look cute on the runway, the right Realtor will advise you on which real estate trends to run away from.

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With Vancouver and the surrounding cities of Surrey, Langley and White Rock being some of the most expensive real estate markets in Canada, purchasing decisions need to be carefully calculated.  Understanding interest rates and the variables that surround them, along with the real estate trends in housing prices, including which areas are most likely to increase in value are all factors when considering buying a home or investment property. The real estate market of today is no longer about simply buying a family home to spend the rest of your life in, rather it’s about feeling secure in your purchase decision and knowing that – if need be – one would be able to resell their home in order to relocate, backed by a fairly secure investment payoff.

There is a certain amount of time investment one needs to consider when purchasing a home, unless their intention is to make renovations and upgrades in hopes of flipping their investment for a profit. Those looking to purchase a primary home for their family to reside in must understand that it’s both a monetary investment and a time investment. Ideally, one should not purchase a home without the intention of living in it for anything less than 5 years; otherwise there will likely be an incremental loss.

When thinking of a home in one of Vancouver’s surrounding cities, it’s imperative to consider the area you want to live in and how it will affect your commute to work, your child’s school and activities, and your general feeling of “home” and community that the area offers. It’s one thing to buy a house; it’s another entirely to invest in a home.

Scott Olson, president of The Fraser Valley Real Estate Board, stated that: “Compared to last March, every community in Fraser Valley experienced a decrease in the sales of single family detached homes especially those priced at the higher-end; however Abbotsford, Langley and North Surrey all saw increases in the sale of townhomes.”

This is important information, and good news for those looking to buy in this ever popular and rapidly expanding area, and also for those who have purchased in recent years and are looking to sell.

To buy or not to buy isn’t a question that should instill fear; rather it’s about being prepared in your decision, and knowledgeable in your homeowner obligations. Knowing the pros and cons of buying in certain areas and being confident in your buying decisions.

Knowledgeable Realtors create happy homeowners!

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Home staging is a common term one hears when considering selling their home, and in the past few years it has attracted such a demand that it’s become a choice career option. Formerly, home staging was something that only the affluent homeowner would consider, employing a specialist home stager – often hailing from the interior design world – to revamp their home into picture perfection. The results have historically been that, due to its aesthetic appeal, a staged home will sell quickly and often above the asking price.

Today, most homeowners, affluent or otherwise, can afford staging. Whether they have a humble home in Langley, an opulent estate in South Surrey, a waterfront property in White Rock, or an investment home in the general Surrey region – home staging is now a ‘can-do’ option for most.

Keep in mind that, with a knowledgeable Realtor, you don’t need to hire the services of a professional home stager. A good Realtor can tell you which areas in your home to spruce up, and how to do so in a cost-effective manner.

Home Staging – The Basics

Home staging is the process of making your home look as aesthetically pleasing as it possibly. Your objectives are to:

1. Make your home stand out from the rest on the street – inside and out, resulting in…

2. Selling your home faster, and…

3. Selling your home for the best possible price.

So what are the little things that all homeowners can do to ‘stage’ their home?

Home Staging – The Details

Make sure your home is spotless. When a potential buyer comes in, they want to imagine your home as their own. They don’t want to have to mentally sift through the clutter and dirty countertops. Thoroughly clean the kitchen and bathroom as these are the two places that have the most “ick-factor”.

De-clutter your home. This may mean boxing up items that you don’t use on a day to day basis. If you’re using a bedroom for storage or as an office, a buyer cannot envision that as a bedroom. Reinstate it as such so that it’s clear in the buyer’s mind that they will be buying a four bedroom home as opposed to a three bedroom one.

Consider buying new bedding so that your bedrooms look as fresh and modern as possible. The master bedroom is priority, but the other rooms are important also. Bedding is an investment both for the home you are selling, as well as being a take-away to your new home.

If your faucets and/or kitchen hardware is looking tired and worn out, consider replacing them. You may be surprised at how inexpensive new faucets can be, and replacing the hardware (i.e. the handles) on your kitchen cupboards can really help to modernise the entire look of your cabinetry.

When cleaning your home remember the flooring. If carpets need cleaning rent a carpet cleaner, or if the carpet is looking really tired and worn you should consider replacing it altogether. Hardwood sells – this is an undeniable fact.

Don’t neglect the outside of your home. First impressions really do count when it comes to selling your home, and if the outside looks untidy or looks as though it needs work, this can put buyers off before they’ve even entered your home.

Home Staging – The Finishing’s

New bedding might freshen things up, but for the ultimate in home staging you could consider renovations on a larger scale.

A new bathroom will really help to sell your home and will likely get you a higher sale price too. The same can be said for the kitchen.

Other renovations you could consider include – building a new deck, or finishing your basement. Basement suites sell – another fact.

The little things will help potential homebuyers to see themselves in your home. The big things will help the homebuyers see themselves relaxed in your home, knowing that little to no work will need to be done once they move in.

Keep in mind – with the Home Renovation Tax Credit you can apply for a tax credit on a lot of big things you do, making these expenses more affordable, attainable and approachable.

Home Staging – The Results

Last but certainly not least – fresh flowers. This tiny, but meaningful $25 investment will freshen up your home, and appeal to the female decision makers sniffing out the housing market to find the perfect buy (another established fact).

For further advice on home staging please give me a call or send me an email. I’m more than happy to offer help and advice, and look forward to meeting your home buying needs!

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