Justin MacKinnon

Cell: 778-229-7444 |

 

 

Incredible 1 bedroom plus den plus flex space in one of Coal Harbour's finest bldgs. - The Melville! This home is complimented with granite counters,stainless steel appliances,floor to ceiling windows,gas range, SE facing balcony plus so much more.The Melville offers concierge,rooftop pool,exercise facility,sauna plus party room. Central downtown location steps to Robson St., seawall,Stanley Park,Vancouver Convention Centre and the business district. This home offers a great open layout with endless possibilities and comes with secured parking and a storage locker.Pets and rentals allowed making this a great home or investment.  Listed at $829,000.

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The new guidline for uninsured mortgages come 2018 will have you stress tested for an additional 2%.  So, if you have 100,000$ down for a 500,000$ dollar home and you found a great rate at 2.90%, you will be tested for 4.90% for that 5-year mortgage.  Prepare yourselves for a tighter lending encironment.  Private lenders may see a rise in business as regulated financial institutions are adopting more strict lending procedures.  

 

Those that already own may not be safe either, come renewel time.  Almost all of the leverage falls into your existing lenders hands, and they’ll know you can’t leave. This could result in less mortgage competition, and higher borrowing rates than if you could just go to a competitor and get a better rate.  If you can't afford a new stress test, you'll end up paying more than those who can.

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On Tuesday morning, Canada's banking regulator (OSFI) published the final changes to its guidelines for residential mortgage underwriting, including a financial stress test for buyers who don't need mortgage insurance.



The Office of the Superintendent of Financial Institutions (OSFI) said Tuesday the changes will come into force by Jan. 1, 2018.

 


The main change is that homebuyers who don't require mortgage insurance because they have a down payment of 20% or more will have to prove they can continue to make payments if interest rates rise.

Other changes include restrictions on co-lending, or bundled mortgages, aimed at ensuring financial institutions do not circumvent rules that limit how much they can lend.



Further details to follow. 


https://beta.theglobeandmail.com/real-estate/the-market/canadas-banking-regulator-raises-bar-for-uninsured-mortgages/article36611747/?ref=http://www.theglobeandmail.com&

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The topic on everyone's minds is not going away.  Government is making moves to nip certain problems in the bud, but is any of it really helping?  Mayor Gregor Robertson has just rolled out a new plan to limit the marketing of new developments locally first and foremost before going...overseas for example.  So, if a new project starts in East Vancouver, for the first 30 days, marketing will be limited to East Vancouver.  Only after 90 days or so will it be allowed to be promoted overseas.  Is this good for Vancouverites?  Yes.  Is this good for affordability?  Not really.  

Same goes for motions made towards condo assignments or "shadow flipping" as the media calls it.  Coming down on sellers and agents who are taking advantage of the system is a good thing, but I feel that all the work local and federal government are doing to regain the trust of the public in regards to real estate is still not fixing the larger issue here.  

 

Empty home tax is a great deterrant for speculators who are not using our housing market for actual housing, but again, it feels to me like these minimal effort moves are just a dog and pony show for upcoming by-elections.  

I do see some moves as being beneficial to the overall problem, such as allowing more rental suites per lot.  Moves such as these will definitely allow home-buyers to attain more mortgage help.  It also opens up more rental inventory.  

I also see a lot more development happening these days, which should be lowering prices.  Yet I dont see prices dropping.  If supply is increasing to meet demand, shouldn't there be market corrections?  The detached single-family housing market is slowing, but the attached market is stronger than ever!  There are future plans for a lot more inventory coming down the pipes, so maybe a massive increase in inventory will eventually solve the problem, but I dont see these bandaid solutions helping any time soon.

 

https://www.straight.com/news/981731/vancouver-council-debate-putting-locals-ahead-foreign-buyers-lines-real-estate-pre-sales

 

https://beta.theglobeandmail.com/news/british-columbia/cra-investigation-seeks-information-to-identify-bc-condo-flippers/article36596875/?ref=http://www.theglobeandmail.com&

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The NDP has decided to remove tolls from the Port Mann and the Golden Ears bridges, effective September 1st, 2017.  Reactions are mixed.  Some are ecstatic with not having to pay any more tolls in their day-to-day lives, others are worried about where this income will have to be supplemented from.  The former of the two would also argue why only they had to pay tolls to cross when there are still 4 other local bridges that get off scott-free.  There was a proposition a few years back suggesting a reduced toll, but for ALL bridges.  North shore folks were up in arms about the thought, so it was quickly shut down.  So this touchy subject has been put to bed, at least for now.  

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July 2017 saw a decline of 8.2% in residential sales in comparison to July 2016, and a decline by 24% from the previous month!  Because of this decrease in sales, we are seeing an increase of selection for buyers.  Detached, single-family homes are still on the decline while condos and townhouses are taking half the time on average to sell.  You still see some detached homes selling quickly from multiple offers in certain areas depending on where, how much, and what condition they are in, but his is not a consistant trend as of late.  Strata units, however, are still going strong.  The benchmark price for all residential properties in Metro Vancouver is currently $1,019,400, surpassing $1,000,000 for the first time ever.  Specifically, Apartments in the Greater Vancouver are averaging $616,000 and Townhouses are at $763,000 whereas detached homes are sitting at $1.6 million.  

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The municipal government proposed a plan to build 72,000 homes in the next decade.  48,000 of those will be rentals.  15,000 of those rentals will be targetted for a lower income household and 6,800 will be for those with extremely low income.  Some will also be geared towards social housing programs.


As mentioned in an earlier blog, municipalities in BC are allowing detached, single-family homes to rent out up to 4 suites.  


What does all this mean?  It means there are measures being taken to settle the astronomical rental prices pushing more and more Vancouverites out of the city.  It also means that much needed real estate inventory will be injected into a market starved for just that.  The sellers market that we are currently seeing might become more balanced or even flip to a buyers market as these next 10 years approach.  We'll be seeing less subject-free offers, less "holding offers until next Monday", less multiple offer scenarios with listing agents holding 12 offers at a time.  All this is great for future home buyers...Landlords and home sellers may not think so, but this market is in need of some long awaited corrections.  Lets see how it all unfolds.

 

 

Source: http://dailyhive.com/vancouver/vancouver-affordability-new-homes-july-2017

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Come see this 5 bedroom, 3 bathroom with den listed at $1,150,000.  East facing living room with vaulted ceilings, large windows, fireplace and adjoining dining room. Updated Kitchen with new stainless steel appliances and neighbouring family room with fireplace. Fully fenced west facing yard that backs onto Central Elementary School. Lower level consists of a 2 bedroom suite with long term tenants, a spacious laundry room and another bedroom/office. Updated include; New Flooring 2010, Hot Water Tank 2015, Roof 2010, Blinds 2016, Bathrooms 2012 and Pot Lighting 2010 throughout the upstairs. INVESTORS OPPORTUNITY or REVENUE PROPERTY as this home can be rented up to $3800.00.

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Dual agency is when a real estate agent represents both the buyer and the seller in a transaction.  Ontario is currently considering a ban on the practice as part of its 16-point housing plan.  Through a spokesman, B.C.’s new superintendent of real estate, Michael Noseworthy, says he’s “very close” to publicly disclosing potential new rule changes on the practice.  


I have always had the opinion that an agent cannot get the best result for both sides.  How is your agent, as a buyer, getting you the lowest possible price if they are also representing the seller?  And Vice-versa, how can that same agent get the seller the highest price?  It seems impossible.  If both sides of the fence feel like there was too much compromise in the negotiations, there is only one clear winner, the agent who collects the full commission.  Some open houses I attend feature 2 agents, (1)the listing agent and (2)someone from their office.  This way, if a buyer without an agent shows up, agent #2 can help them write an offer with no conflict of interest.  I have always respected this practice.  


To some agents, this is their bread and butter, but it seems like they may have to evolve with the times.  If the selling agent is the only person who has found a buyer, theyre going to have to refer that buyer to another agent if legislation changes.  I, for one, feel like that would spread the love a little more evenly and create a more fair market.

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This 736 square foot loft listed at $529,000 in Mount Pleasant has two bathrooms!  One of two top level end units in this solid concrete building. Open floor plan that utilizes split-levels to separate rooms. Kitchen is spacious with oak and lacquer cabinets, laminate flooring throughout, granite countertops & stainless steel appliances. Situated on a quiet bike designated street, this unit boasts 15 ft ceilings, Insuite Laundry, New hot water tank and built in storage units. Less than one block to the heart of Main Street, close to transit, cafes, shops, and community centre. Pet & rental friendly, low condo fees plus work/live zoning with significant tax deductions. Permit parking avail through city for $38.93 annually.

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Municipalities trying to increase the rental inventory that now or soon will allow from 2-4 rental suites to be contained on a detached housing lot, through rental suites and laneway houses include Vancouver, North Vancouver, Coquitlam and Port Moody.  But what if you sell your house after benefitting from this?  The portion of a principal residence lot, such as detached laneway house, used to generate rental income could be subject to capital gains taxation when the property is eventually sold.  The portion of a house being rented out, such as a basement suite, would not necessarily trigger a capital gains tax, detached laneway houses are not so clearly defined.

When the entire property is eventually sold any gain realized on the laneway house portion will not be eligible for the principal residence exemption, the owner is required to track all costs associated with building the laneway house as well as keep records related to the original cost of the property, capital improvements made, the relative value of the land versus the main residence on the date of the deemed disposition and on the date of sale.

You could potentially lose a hefty portion of the principal residence exemption.  Homeowners should weigh the risk vs reward with laneway house rental income vs tax exemptions.

 

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