Justin MacKinnon

Cell: 778-229-7444 |

 

 

 

 

 

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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