The Kelowna Market and Affordability

What does 400K get you in Canada?

The average selling price across Canada in February 2011 was $372,763. Wondering how the market here in Kelowna and the Sunny Okanagan compares?
Heres an excerpt from the March news release from the Okangan Mainline Real Estate Board:
"Kelowna, BC – The Okanagan Mainline Real Estate Board (OMREB) reported March 2012 sales activity of all
MLS® property types declined compared to the same month last year but improved over the first quarter of
2011 and from last month (February), as the housing market continues to strengthen going into spring.
“Home sales were steady in the Okanagan‐Shuswap during March with some fluctuations depending on the
community and the housing type,” says Rob Shaw, an active REALTOR® in the North Zone and OMREB
President. “Continuing to trend on long‐term averages, the modest rise in unit sales reflects the gradual
growth in the economy and points toward a brighter seasonal market ahead.“
What does that mean for house prices?
In March 351units sold, (houses, condos, etc) of 4,767 active listings...average days on the market 123 days to sell, average condo selling price is $226, 365, average townhouse selling price is $319,861 and the average house price is $456,568.
The average price varies per type of residence of course but compared to last year housing prices are down by aproximately 7%, apartments are down by about 4% and mobile homes are up by 9%.
So what does this mean for the homebuyer/seller? Price and location remain the key factors when moving your home. The Okanagan remains a strongly desirable location for people.   Weather, activities, proximity to lake or mountain sports and so on will always be a draw. That leaves price the big question.
There seems to be a swing happening right now. Low interest rates are definitely stimulating the market  plus BC has a $10,000.00 new home/first time home owners grant in the budget. A recent survey of news headlines suggests there is cautious optimism that the tough times may be behind us. Does that mean it is moving from a buyer's market to a seller’s? Hmmm, no crystal ball here unfortunately, but it does seem the swing may be coming around.
Here is an article that I would like to share showing you what $400,000 can buy you around Canada:
http://www.walletpop.ca/blog/2012/04/09/april-real-estate-round-up-what-you-get-for-400k-or-less/
If you are anything like me, you love to look!

As always I would love to hear from you!

Sheryl

The Reason I am a Realtor

I recently had the honour of working with a lovely couple who were looking to purchase their first home. This can be nerve wracking as a couple makes this huge step. I get so much pleasure in helping people find that place they can call "Home".

Here's what they had to say:

My husband and I had the privilege to work with Sheryl when purchasing our first home. As first time home buyers, this process can be quite intimidating and stressful. Sheryl was wonderful at pinpointing what we wanted for our first home and helping us through each step with ease. We now own the condo of our dreams in a great area of Kelowna. Sheryl has an extraordinary way with her clients and know we can trust that she will always have our best interest in mind. We won’t hesitate for a second to work with Sheryl again when we transition to our future home. Paulina McChesney

Thank you for the kind words Paulina, it was a genuine pleasure to work with you. I am sure you will have many years of joy in your new home!

First time New Home Buyer's Bonus

The BC Government intends to implement a BC First Time New Home Buyers' Bonus. This is a one time refundable personal income tax credit worth up to $10,000.00. Wow! Yes a $10,000 discount off the purchase of a new home,..sounds pretty good.

I was wondering if this is too good to be true? So I looked into the requirements a bit more, the following info comes from the BC Government:

How can I be eligible for this bonus?

1. You purchase or build an eligible new home in BC

2. You have never owned a primary residence

3. You file a 2011 BC resident personal taxes

4. You intend to live in the home as your primary residence

What makes a home eligible?

New homes, newly constructed by the owner or purchased from a builder, and/or substantially renovated. (substanially renovated is where all or substanially all of the interior of a building has been removed or replaced. There is a test that seeks to prove that 90% of the interior has been renovated)

If you are purchasing from a builder: must have a writen agreement of purchase and sale on or after Feb 21, 2012 and the possession transfers before April 1, 2013, HST is payable on the home and no one else has claimed a bonus on the home.

If the home is owner built: must have a written agreement of purchase and sale in respect to the land and building for the same dates (Feb 21, 2012- March 31, 2013), the home is complete prior to April 1, 2013, and no one has claimed the bonus.

How is the amount of the bonus set?

The bonus is equal to 5% of the purchase price, or 5% of the land and construction costs subject to HST, to a Maximum of $10,000, and there is a phase out based on income. If your family's net income is over $150,000/yr the bonus is reduced.

Can I use the bonus as a downpayment?

Unfortunately no, the bonus comes as a discount of the negotiated purchase price.

How do I apply?

Later this year there will be application forms on the BC Ministry of Finance website.

or for more information contact:

The Ministry of Finance

1 (877) 387-3332

email: ITBTaxQuestions@gov.bc.ca

PS This bonus applies to houses, duplexes, townhouses, condo, mobiles, co-operatives and even to floating homes!!

As always if there is anything I can do to help you get into that place you can call home, I would be happy to assist you. A qualified Realtor can offer valuable assistance in this process. Let me do the research, guide you through the legal and paperwork stress, help you negotiate the right price that fits your needs and make your home ownership dream come true!!

Sheryl

Housing Tax Credits

What does a REALTOR do fo you?

What to Expect from a REALTOR®

Buying or selling a home may be one of the biggest financial transactions you will make in your lifetime. It can also be a very complicated and frustrating process.

You will need a professional to help you every step of the way. A professional who is highly trained, knowledgeable and has ethics beyond reproach. Your best friend in a real estate transaction is a REALTOR®, a member of your local real estate board and the British Columbia Real Estate Association.

You can expect a great deal from a REALTOR® whether you are buying or selling.

When you are selling your home . . .

• The REALTOR® you choose is working for you, the vendor, and not for the people who are the potential buyers of your home.
• The REALTOR® gets paid, usually in the form of a commission, from a percentage of the proceeds of the selling price of your home.
• In line with the strict code of ethics the REALTOR® must follow, he or she will disclose this arrangement to you clearly, fully and in writing.
• The REALTOR® is experienced in the marketplace and can offer you expert advice on what price to set for your house, how you can make your house more attractive to potential buyers and what marketing plan will sell your home quickly, efficiently and smoothly.
• The REALTOR® has contacts among potential buyers currently looking for a home. He or she can quickly separate the merely curious "lookers" from the "buyers".
• As a member of the local real estate board, the REALTOR® can list your home on the Multiple Listing Service (MLS®), which gets the details about your home into the hands of thousands of potential buyers. Only REALTOR®S are able to list homes on MLS®.

When you are buying a home . . .

• The REALTOR® will make it crystal clear to you whether he or she is working for you, the buyer, or the seller.
• Special arrangements can be made so that the REALTOR® becomes your agent for buying a home. The REALTOR® is bound by ethics to disclose this relationship to potential vendors you may deal with.
• With his or her wide experience and contacts, the REALTOR® can direct you to your potential "dream home" much more quickly and efficiently, saving you many hours and lots of frustration checking the ads and driving around.
• A REALTOR® has access to thousands of listings on the Multiple Listing Service (MLS®).
• The REALTOR® is usually paid by the vendor; this is the case whether the REALTOR® works for the seller or the buyer. When a REALTOR® working as your agent helps you buy a house, he or she usually is paid from the commission paid to the vendor's REALTOR®.

Whether buying or selling, a professional REALTOR®'s services can be invaluable. Their advice can save you from making bad choices and help make your home buying or selling experience a positive one.

Affordable Property Options

Two types of properties you may want to consider

There are many ways a Realtor can assist you in negotiating the intricacies of home ownership. Remember a licenced realtor is required to go through ongoing training in everything from ethics to contracts. The average homeowner can feel overwhelmed with the variety of forms land transactions can take.

I just wanted to mention two different ways to get in the property ownership, or property investing game: 1)Developments gone into foreclosure and

     2.)Leased land.

First let me caution you, these two options have their ups and downs, and you should carefully weigh the pros and cons of your own situation before jumping in. I decided to bring them up because they can be a more affordable option.

First a condo development or development that has gone into receivership:

"Usually receivership is due to mismanagement of a project, or it was just over-leveraged," says Mario Mainella, VP of the Bowra Group, which re-sells properties that have gone into receivership. "When that happens, we step in and fill the shoes of the developer. What's good for the end consumer is that just because it has gone into receivership and has financial problems, doesn't mean we cut corners." As well, a house or condo in receivership must sell fast because companies like Bowra don't want to carry those holding costs for too long. It means competitive pricing for the consumer. Call me if you think you might be interested in checking out properties in receivership, and we can talk about the pros and cons of this type of property.

The second is a leasehold property:

Leasehold properties are usually owned and leased by governments, native bands or universities. They are chunks of land usually in highly desirable areas that are sold well below market value. In Vancouver, there was a recent leasehold 1,550 sq. ft. townhouse with an ocean view for $795,000. If it had been a freehold property, it would have been listed for about $1.2 million, easily. The catch? Whoever buys that property is buying the prepaid lease and the right to live there until 2036. When the lease comes up for renewal, you run the risk of lease payments going up, which they undoubtedly will. You also don't actually own the land. However, if the lease is a long one it can hold its value. It just won't appreciate like a comparable freehold property. Also, you can enjoy a high standard of living for a lot less.

So if you want the Okanagan lifestyle at an affordable price, it is available but you will need a professional to help you understand the risks and terms.

I get tremendous satisfaction in helping people find that place they call home. If I can help you I would be honoured and pleased to do so!

Sheryl

Thinking of Buying Your First Home?

You too can own your own home and there are many incentives in particular for first time buyers. Now is the best time possibly in history to consider becoming a home owner.

First and foremost, interest rates are just going to go up so why not take advantage now of the low rates.  You may be surprised at how reasonable your monthly payment are... plus, you pay the highest amount of interest relative to principle at the beginning of your mortgage; why not take advantage of these low rates which could leave you with some cash to pay down the principle amount and save you a lot of money in interest.

Second, owning your own home is the best financial move you can make. You have to live somewhere, right? You will have to pay rent or a mortgage, right?  Why make you landlord richer when you can be creating equity for yourself? Over and over it has been proven real estate creates wealth.

Did you know that as a first time home buyer, you:

 1- are exempt from paying the property transfer tax on properties up to $425,000
 2- you are entitled to first-time home buyers' tax credit given when you file your tax return                                       3- you can use up to $25,000 of your RRSP's tax free for purchasing your home
 4- rates are VERY low and home prices down so now is a great time to invest in your own property!!!!

If you are interested and would like to talk further about the possibilities of becoming a first time home buyer, give me a call. If you are concerned as to your eligibility to qualify for a mortgage,  I work with several experienced mortgage brokers and you may be surprised how a solid and  knowlegable team can help you reach your goals

-Sheryl