There’s a better solution for the rental crisis than telling people what they can do with their homes, says agent Leo Wilk

 

 

The City of Vancouver is proposing (and we all know what that means) some new regulations on owners of real estate who use their residences or investments as income-generators on AirBnB or other vacation rental websites. Of course, this is yet another cash grab and they have claimed this will free up to 1,000 rentals in Vancouver.

 

The current rules are that zoning regulations do not allow short-term rentals under 30 days unless you are a licensed bed and breakfast. However, we all know people do not listen to the rules, and who is to blame them? I get it if you want to make everyone who uses property they own as am AirBnB have a licence – fair enough. But you cannot keep telling people what to do with their homes they own. Many people work very hard to afford a home in this city and then are told by the city what they can or cannot do. For me, that just does not make sense. 

 

I know so many people who have a home worth a couple million who do not want a long-term tenant but need to AirBnB every now and then to help out. The City, along with many people, think that anyone who owns a home over a million is insanely rich. But those people work very hard to afford their homes and want to enjoy it without someone living below them.

 

On top of that, there are many horrible renters out there and they are protected by the Residential Tenancy Act, which makes people not want to do long-term rentals. Ever had a hoarder in your rental? Makes short-term or AirBnB look even more attractive. But once that lease is signed it is a free-for-all, according to the Act. 

 

To give you the quick lowdown, the proposed new rules are as such:

 

Owners and renters (although the owner probably would not allow a renter) would be allowed to rent part or all of their principal residence on a nightly basis, if they have a business licence. To get a short-term rental business licence you would need to prove it is your principal residence by submitting your property title or a tenancy agreement along with photo ID and recent government or utility mail. Laneway homes, secondary suites, investment units and second homes will not be allowed to be rented out short-term. The City will audit licence applications to prevent fraud – and I am sure this process will be done very fast, just like our building permits! Licensed operators would need to post their licence number in all online advertising. People operating rentals without a business licence will face fines and legal action – which of course equals money to the City.

 

Here is my quick solution.

 

If the City wants to free up long-term rentals, why don't they change the regulations on strata corporations who have rental restrictions? Make it so that you cannot restrict the amount of rentals allowed in buildings. This would literally solve the rental crisis overnight and thousands and thousands of rental condos would come to market.

 

On the flip side of that solution, however, I do think it would mean fewer condos for sale, because now all these people who are forced to sell when they need to upsize, downsize, move out of town, etc., can hold their properties and rent them out. 

 

 

 

 

Source: http://www.rew.ca/news/city-s-new-airbnb-rules-are-a-step-too-far-1.21225143

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For new investors, it’s easy to get overwhelmed by facts, figures, formulas, and different investment calculations. And, although many people are aware of condo investing terms, they have trouble defining them or deploying them properly.

 

Our goal today is to demystify the most important condo investing terms that you need to know. This will not only make you a better investor, but it will help you impress your boss at the next company meeting.

 

Although there are many different types of real estate investing, the fact is that there are several key terms that every condo investor should know.

 

Lucky for you, we’ve compiled them here in a handy list. Think you know them all? Keep reading and see!

Key Condo Investing Terms #1 – Return on Investment (ROI)

ROI, or return on investment, is an important formula to gauge how an investment performs. It’s a simple, quick calculation – easily done on a napkin – that lets you know how profitable an investment is.

 

The formula looks like this: ROI = (gain from investment – cost of investment) / cost of investment

 

For example, after four years you decide to sell the downtown Toronto condo you invested in. You bought it for $350,000 four years ago with a 20% down payment, or $70,000. It appreciated at an annual rate of 5.82%, which is the compounded annual growth in Toronto over the past 30 years. So that means your condo is now worth $440,127.

 

Let’s assume you sell it for $440,000 and have a remaining mortgage balance of $250,000. Your gain on investment is therefore, $190,000.

 

You also had expenses, including closing costs and upgrades, totaling $20,000. So your cost of investment is your down payment plus expenses, for a total of $90,000.

 

Now, let’s put these numbers into the formula:

  • ROI = (190,000 – 90,000) / 90,000
  • ROI = 100,000 / 90,000
  • ROI = 1.11
  • ROI = 111%

Over four years, your return on investment is 111%. That’s not bad! Some investors set a standard ROI they aim for and won’t buy anything that yields less than that.

Key Condo Investing Terms #2 – Pre-Construction Appreciation

One of the many reasons real estate is a great investment vehicle is long-term property appreciation. But, condos have a second opportunity for appreciation, through the wonders of pre-construction appreciation.

 

When you buy a condo before it’s constructed, you are paying today’s prices for a condo that won’t be constructed for several years. That means when your condo is move-in ready and you actually buy it (take out a mortgage), it’s already appreciated.

 

We won’t get into greater detail about the merits of pre-construction condos just now, as we have a lot more juicy stuff about this to share with you in the weeks to come.

Key Condo Investing Terms #3 – Net Operating Income (NOI)

NOI, or net operating income, like ROI, is a great tool for calculating how profitable your properties will be. Although it may sound a little technical, the formula is actually quite easy:

 

NOI = Revenue – Expenses

 

This is an annual calculation and assumes you own a property free and clear. Expenses include all your operating expenses such as taxes, insurance, utilities, maintenance, etc.

 

Imagine you bought a property that produces $21,600 per year in rent ($1,900 per month). Your monthly expenses include the following: property taxes at $200, condo fees at $150, and insurance is $50. This is $400 a month, or $4,800 yearly.

 

That would mean that your NOI = 21,600 – 4,800 = $16,800. Calculating the NOI is an easy way to compare properties and maximize your cash flow.

Key Condo Investing Terms #4 – Capitalization Rate (Cap Rate)

Now that you know how to calculate the NOI, we can move on to something a little more complicated. The cap rate is another way of calculating the rate of return on your investment properties.

 

Although this formula is expressed as a percentage, many investors use only the number when referring to a cap rate. For instance, “the condo one of my clients just sold had a 5 cap!”

 

Here’s how it works: Cap Rate = NOI / Current Market Value

So let’s use the NOI we calculated earlier – $16,800 NOI. And, let’s assume a $350,000 market value of your condo investment.

 

So, your cap rate = $16,800 / $350,000 = 0.048

 

Expressed as a percentage, your capitalization rate is 4.8%, or a respectable 4 cap! This calculation is a great way to compare investment opportunities.

Key Condo Investing Terms #5 – Refinancing

Refinancing is a crucial part of all real estate investing, and can save you thousands of dollars per year. Like most other investing concepts, refinancing seems a little scary if you’re not familiar with it, but it is a very straight-forward process.

 

Refinancing is simply negotiating a presumably better interest rate and/or terms for your property. It is usually done for one of two reasons: either to get a better interest rate, or to free up capital for your next investment. And the beautiful freeing up capital for your next investment, is that you can pull it out free of capitals gains by refinancing. Capital gains aren’t actually realized until the property is sold, whether that is in 1 year or 100 years.

 

We’ll be going deeper into detail about the power of refinancing next week. In the meantime, consider talking to a mortgage broker to see if your properties are worth refinancing.

 

The above list of condo investing terms is by no means comprehensive. But, these five terms are some of the most important you need to know as a condo investor.

 

If you’re consistently putting these concepts into practice, you’ll be in a much better position to analyze and evaluate your existing and future condo investments – which, in turn, means more money in your pocket.

 

 

 

 

 Source: http://connectassetmanagement.com/condo-investing-terms/

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Please visit our Open House at 32947 CLAYBURN RD in Abbotsford.
Open House on Saturday, July 22, 2017 1:00PM - 3:00PM
Best of both worlds - country living but only minutes to town! This 5.85 acre property offers extremely well-kept 4 bed, 4 bath home with a great layout! From beautiful exposed beams, high vaulted ceilings, to the grand floor to ceiling brick fireplace - there's a lot to love here! The main floor offers a cozy sunken living space, with a newer gas fireplace & plenty of windows for natural light. The kitchen has been updated w/ stainless appliances & tile backsplash. The lower level has 2 large bdrms and plenty of entertainment space complete with wet bar, kitchen, and another fireplace. The property has been recently cleared and is ready for your ideas? Plant a crop, use it for horses, or just landscape the space to your liking!
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Please visit our Open House at 1664 HIGHVIEW ST in Abbotsford.
Open House on Saturday, July 22, 2017 2:00PM - 4:00PM
SUBDIVIDABLE LOT! Live now, develop later? This rancher with full basement sits on a huge 90x121 lot! Has been completely updated w/new flooring, paint, interior doors, crown mouldings, baseboards & casings throughout. New kitchen countertop & backsplash too! Updated baths (new vanities, sinks, backsplash, flooring & paint). 3 bedrooms up as well as a Master Bedroom with a 2 pce enste. 2 bed suite below. Best of all the backyard backs onto cul-de-sac on Kirkland offering great privacy! Talk to City about subdivision potential. Open House July 22nd, 2017 1-3pm.
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Please visit our Open House at 3159 TOWNLINE RD in Abbotsford.
Open House on Sunday, July 23, 2017 12:00PM - 2:00PM
Greeted by high ceilings in the foyer you'll love the reno's done in this home! in the kitchen notice the beautiful granite counter-tops & white cabinetry. You'll also notice new paint, flooring, & updated baths! Off the living room, French doors up to your backyard oasis! The level, full fenced yard is full of mature trees and a great place to unwind & offers plenty of space for the kids! Above you'll find 3 beds including a master with a huge covered balcony with views of Mt. Baker, a spacious walk-in closet, and an ensuite bath. Newer roof on this home too! Great location within walking distance to al levels of schools, this home won't last long! Call today to schedule your viewing.
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Please visit our Open House at 36422 ESTEVAN CRT in Abbotsford.
Open House on Sunday, July 23, 2017 1:00PM - 3:00PM
Your search stops here - here's your opportunity to buy a lot and start work immediately! The last view lot left on Falcon Ridge. Enjoy the breathtaking views from all three floors of your new home! Majority of lot prep work already completely - retaining wall is finished and the property has been extensively excavated. Only minor work left to do before you can put down footings. Don't miss this opportunity to build your beautiful home in one of East Abbotsford's most desirable areas. House plans already approved by the City of Abbotsford - call for more details!
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I have listed a new property at 32947 CLAYBURN RD in Abbotsford.
Best of both worlds - country living but only minutes to town! This 5.85 acre property offers extremely well-kept 4 bed, 4 bath home with a great layout! From beautiful exposed beams, high vaulted ceilings, to the grand floor to ceiling brick fireplace - there's a lot to love here! The main floor offers a cozy sunken living space, with a newer gas fireplace & plenty of windows for natural light. The kitchen has been updated w/ stainless appliances & tile backsplash. The lower level has 2 large bdrms and plenty of entertainment space complete with wet bar, kitchen, and another fireplace. The property has been recently cleared and is ready for your ideas? Plant a crop, use it for horses, or just landscape the space to your liking!
Read Full Story

Average sale price increases in every real estate board in the province in June


Sales may be down from last year’s record-breaking activity, but that doesn’t mean home prices across the province are falling, according to the latest figures from the British Columbia Real Estate Association (BCREA) released July 13.

 

The BCREA reported that 11,671 BC homes were sold on the Multiple Listing Service® (MLS®) in June, a fall of 9.6% from June last year, and down 5.9% compared with May’s surge.

 

However, the average MLS® sale price in BC was $725,778, up 4.4% from the same month last year, and rising on an annual basis in every one of the 11 BC real estate board areas.

 

“Although home sales remain well off the record pace set last year, demand is still quite robust," said Brendon Ogmundson, BCREA economist. "That demand is supported by a strong provincial economy and vigorous job growth.”

 

He added, “Supply remains a challenge, which means most areas are seeing tight market conditions and significant upward pressure on prices.”

 

The number of total active listings across the province was down 6.2% to 29,651 units compared with June 2016.

 

Chilliwack was the board to see the highest annual price growth, up 18.3% year over year, followed by Kootenay, Victoria and Vancouver Island. Greater Vancouver saw the lowest average price increase of the 11 BC boards, a rise of 2.7% since last June.

 

Sales activity painted a different picture – revealing that it is largely supply, rather than sales volumes, that dictates price points. Along with Greater Vancouver, where sales were down around 12% in June year over year, Chilliwack saw an 11% annual sales decrease. In both Vancouver Island and Victoria, where prices are climbing robustly, year-over-year transactions declined 13-14%.





Source:http://www.rew.ca/news/bc-real-estate-prices-keep-climbing-on-low-supply-1.21118621

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I have listed a new property at 1664 HIGHVIEW ST in Abbotsford.
SUBDIVIDABLE LOT! Live now, develop later? This rancher with full basement sits on a huge 90x121 lot! Has been completely updated w/new flooring, paint, interior doors, crown mouldings, baseboards & casings throughout. New kitchen countertop & backsplash too! Updated baths (new vanities, sinks, backsplash, flooring & paint). 3 bedrooms up as well as a Master Bedroom with a 2 pce enste. 2 bed suite below. Best of all the backyard backs onto cul-de-sac on Kirkland offering great privacy! Talk to City about subdivision potential.
Read Full Story
I have listed a new property at 3159 TOWNLINE RD in Abbotsford.
Don't be fooled by the address! Greeted by high ceilings in the foyer you'll love the reno's done in this home! in the kitchen notice the beautiful granite counter-tops & white cabinetry. You'll also notice new paint, flooring, & updated baths! Off the living room, French doors up to your backyard oasis! The level, full fenced yard is full of mature trees and a great place to unwind & offers plenty of space for the kids! Above you'll find 3 beds including a master with a huge covered balcony with views of Mt. Baker, a spacious walk-in closet, and an ensuite bath. Newer roof on this home too! Great location within walking distance to al levels of schools, this home won't last long! Call today to schedule your viewing.
Read Full Story
Please visit our Open House at 3159 TOWNLINE RD in Abbotsford.
Open House on Saturday, July 15, 2017 1:00PM - 3:00PM
Don't be fooled by the address! Greeted by high ceilings in the foyer you'll love the reno's done in this home! in the kitchen notice the beautiful granite counter-tops & white cabinetry. You'll also notice new paint, flooring, & updated baths! Off the living room, French doors up to your backyard oasis! The level, full fenced yard is full of mature trees and a great place to unwind & offers plenty of space for the kids! Above you'll find 3 beds including a master with a huge covered balcony with views of Mt. Baker, a spacious walk-in closet, and an ensuite bath. Newer roof on this home too! Great location within walking distance to al levels of schools, this home won't last long! Call today to schedule your viewing.
Read Full Story
Please visit our Open House at 3159 TOWNLINE RD in Abbotsford.
Open House on Sunday, July 16, 2017 1:00PM - 3:00PM
Don't be fooled by the address! Greeted by high ceilings in the foyer you'll love the reno's done in this home! in the kitchen notice the beautiful granite counter-tops & white cabinetry. You'll also notice new paint, flooring, & updated baths! Off the living room, French doors up to your backyard oasis! The level, full fenced yard is full of mature trees and a great place to unwind & offers plenty of space for the kids! Above you'll find 3 beds including a master with a huge covered balcony with views of Mt. Baker, a spacious walk-in closet, and an ensuite bath. Newer roof on this home too! Great location within walking distance to al levels of schools, this home won't last long! Call today to schedule your viewing.
Read Full Story
I have listed a new property at 36422 ESTEVAN CRT in Abbotsford.
Your search stops here - here's your opportunity to buy a lot and start work immediately! The last view lot left on Falcon Ridge. Enjoy the breathtaking views from all three floors of your new home! Majority of lot prep work already completely - retaining wall is finished and the property has been extensively excavated. Only minor work left to do before you can put down footings. Don't miss this opportunity to build your beautiful home in one of East Abbotsford's most desirable areas. House plans already approved by the City of Abbotsford - call for more details!
Read Full Story
I have sold a property at 45408 SPARTAN CRES in Chilliwack.
Won't last long! Great price point to get into this neighbourhood in a basement entry home for the family! This home offers 3 bedrooms up, large kitchen and dining room with newer laminate flooring in the bedrooms and dining room! Off the kitchen, enjoy your private covered deck. The spacious living room offers a gas fireplace. Master bed offers a 2 piece ensuite. Your fenced yard offers full privacy with hedges and many types of plants/tree and even a greenhouse for the nature lover! Below the laundry room is huge and offers extra storage space! Single garage is large and ample parking in driveway for vehicles and even an RV. Close to schools & shopping. Call today for your viewing!
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I have listed a new property at 33642 CHERRY AVE in Mission.
Are you looking a lot to build your new home? This lot has picture perfect views of the valley and Mt Baker!!! The builder will put in all the foundation so the home is ready to be built. It comes with building plans and building permits. Don't miss this opportunity!
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I have listed a new property at 17 31125 WESTRIDGE PL in Abbotsford.
Your search stops here! This 3 bedroom, 2 bathroom townhouse backing onto greenbelt is perfect for first time home buyers. Large, open layout on the main floor with granite countertops and stainless steel appliances. Walking distance to all 3 levels of school and close to Highway #1. This Home will not last!
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