An Important Topic of Conversation For Seniors and or Loved Ones.
7 Questions seniors should ask any real estate agent
Buying or Selling Real Estate is Different for Seniors.
Questions and Tips to ensure that are working with a team of experts.
A little preparation will minimize your stress, prevent mistakes while saving you time and money.
Effective Oct. 17, 2016 all homebuyers, requiring an insured mortgage (a mortgage with less than 20 or 25% down-payment) for their home purchas
e will have to further be assessed/qualified on a mortgage payment stress test to
evaluate if a homebuyer would still be able to make the mortgage payments if their mortgage payments increased based on higher interest rates or the homebuyer potentially generated less income.
Until now, Mortgage financing stress tests weren’t required for closed or f
ixed-rate mortgages with a term longer than five years.
In addition to the mortgage stress test, several eligibility rules will tightened on mortgages where borrowers made down payments of at least 20 per cent of the purchase price by Nov. 30, 2016.
The immediate impact for home buyers will result in fewer home buying opportunities for those that only qualify under their current income level.
Home buyers with room to spare in their ability to make higher monthly payments, will have little or no impact at all.
In the (Greater Victoria) real estate market where we already noticed a slight leveling of the market from our earlier very aggressive price and volume increases, the new mortgage rules most likely will offer a new balance to the local market place.
This leveling in the local real estate market will assist homebuyers with a bit more time to review their options in order to make the best home buying decision possible for their next home.
In summary, it would appear that the Mortgage Financing Stress Test may possibly result in some short term pain but will result in a more secure and stable (well qualified) real estate market place.
We would urge aspiring home buyers to connect with the mortgage broker or lender of their choice and confirm their personal financing qualifications.
With the rules changes, some people will notice that the price range of their future home may be impacted by the new mortgage financing stress test.
If you have any questions, please connect with Peter at 250-213-9490 or email us at your convenience.
No, this will not be a singing class, just a quick post about a question we get asked fairly frequently.
The question if you “Should Rent or Buy a Home In Greater Victoria NOW”, will always be a personal for you to answer. However, if we look strictly at the "numbers" and for the moment forget about the emotional investment in either buying or renting, the answer is actually pretty simple.
If you have (or can get assistance with) the buying costs and down-payment, there is little question that Buying a Home in Greater Victoria, NOW is the right thing to do.
Here is some information from my (not so scientific) research:
I looked up (on Craigslist) currently available single family homes for rent with 2 or more bedrooms and 2 or more bathrooms within 20 km from my own home (Saanich near Uptown). and averaged the rental rates, without spending much time on the features and or extra's within the homes.
The average rental rate for single family homes came out too approx. $ 3,000 per month.
In simple mortgage terms that $ 3,000 per month would also pay a 25-year a
mortized mortgage of approx. $ 600,000 and with that I found (as of the writing of this post) 127 single family homes for sale of the same number of bedrooms and bathrooms and within similar distance to my home. Here is a current list of Single Family Home options for sale.
I was intrigued and extended my "research" and tried a similar experiment with Condominium suites, here is what I found.
I searched Craigslist again for 1+ bedrooms and 1+bathrooms within 20 km of my home (Saanich near Uptown).
The average rental rate (which seemed higher than I expected) averaged $2,300 per month.
In simple mortgage terms that $ 2,300 per month would also pay a 25-year amortized mortgage of approx. $ 425,000 and with that I found (as of the writing of this post) 210 Condominium homes for sale of the same number of bedrooms and bathrooms and within similar distance to my home. Here is a current list of Condominium Home options for sale.
To be honest with you I was very pleasantly surprised with my findings and wanted to share them with you right away.
Given that our average prices have only just started to increase since October 2015, we expect that property values in Greater Victoria will continue to increase for the foreseeable future. Hence you (as a buyer and future home owner) would benefit from the value increase over the length of time you own the property, never mind the mortgage balance reduction during the same time.
If you have been thinking about Should I Rent or Should I Buy a Home In Greater Victoria, NOW, I hope this information offers you some perspective?
Okay, here is my caution..... Averaging anything always looks better on paper, your specific reality is likely a bit different, as such we encourage you to connect with us before you venture into the market place to deeply.
We are here to help and make sure that you get all the right information about your specific situation, before you make life changing decisions.
However, many people over many generations, have plunged in to the homeownership pool soon after the Greater Victoria Real Estate Market started to recover and have benefited from the upswing in values for the rest of their respective lives.
Should You Rent or
Should You Buy
a Home In Greater Victoria, NOW?
How to buy a Greater Victoria Home in a crazy busy real estate market.
If you have been in Greater Victoria for a while and have been looking for your new or next home, you will have experienced or heard the super stressful home buying stories.
Multiple offers, sold in minutes, sold way over asking price, sold without subject clauses, what can you do to make the right home buying decisions at this time.
By all accounts, many of you reading this will have your self or at least know of someone who lost out on a great home, suite or property, you got outbid, or maybe didn’t act fast enough.
It is like an emotional roller coaster with way too many fast changes in direction
When the Greater Victoria Real Estate market is this active, are there ways that will dramatically improve the odds for you to not only find but be able to buy the home you want?
We have collected some tips here for you:
The Basics and Preliminaries about Home Buying in any market.
This is really the first and likely most important step. Knowing your safe budget range is essential so it’s very important to get pre-approved and arrange your finances ahead of time.
Pre-arranging financing should include, securing your down-payment, (including gift letters and RRSP withdrawals if applicable), buying expenses, odds and ends and an emergency slush fund.
Talk to banks or a mortgage broker and work with them to fully understand all the various details and particulars, your payments and how much you can afford.
There are new rules for financing, so even if you recently were pre-approved, make sure your information is current and accurate. Check: CMHC also check if you are eligible for a first time home buyer exemption.
Yes, I am biased on both fronts, about using a REALTOR® and to use our Pfanntastic Real Estate Services.
Here are the reasons why we are biased. Like most of the important decisions in life, buying a home is a “team effort”.
As such, it is very important that you are supported by the best possible team you can afford to ensure the best possible outcome.
REALTORs® have typically access to all the available properties, however the best agents also have the experience, resolve, persistence and resources to truly add value and direct measurable benefits to your home buying experience. (getting you the best home, negotiate a better deal, and do so problem free).
Some agents are too busy to deal with first time buyers and delegate them to less experienced agents. When the markets are very fast or very slow, newer
agents just have not been around long enough to fully understand what might be needed to successfully assist you with buying your new or next home. New homes or resale homes, either way, working with multiple offers and digital negotiations are not as simple as people think.
What type of agent would you want working on your behalf?
The best agents have the relationships and ability to navigate the rapid market place and secure your next home.
Having all your ducks line up and for you and all those involved in the purchase. For all to be as informed as possible, to agree on the type of home, the location, the essentials of the home and amenities will prove to be a huge time safer.
Having all your other team members ready and on short notice will save time, money and disappointment.
We mean, people like; a good home inspector, a contractor (if you are buying a fixer upper), insurance agent, and possibly a lawyer/notary.
As you to will have (almost daily) communication with your REALTOR® , selecting an agent you like and trust, will pay benefits on a daily base.
You will also likely do a fair bit of “Homework”, in the beginning of your “home hunting” adventures. Just so that you become familiar with the market place, so that you will recognize the right home option/package when you see it.
In a crazy busy Victoria Real Estate market as we are currently experiencing, there is no time to waste. When you are prepared and ready, you can act quickly and confidently present a strong offer.
We don’t want to lose a great home just because we were not ready or simply because we could not act fast enough.
Many may have heard that you never make your best offer first, however in the crazy busy Victoria Real Estate market of 2016, it is pretty rare that you are the only interested party in what you are considering as your next home.
Counter-offers are actually rare during this type of market, so your first offer to a seller, likely needs to be your best effort.
The key areas to consider in your offer:
The key to presale in an active market is to have your REALTOR® register your interest in the development as soon as possible (Be sure that your REALTOR® is registered, otherwise you will not have an agent working on your behalf and protect you from possible issues).
The sale teams of new developments work for the developer (not you) so letting them know that you’re serious about buying, with your agent is important.
Even in pre-sales and new construction homes multiple offer are now relatively common, so presenting a clean offer (with or without conditions) does not always secure the property. Hence to know exactly what options, features alternatives and other configurations that you might consider can help you secure your next home
Given the current market conditions, you might want to expect that you likely have to compete with multiple offers.
Although this will feel like more stress than you want or need, it will require you to put your best offer on paper the right from the start of the negotiations.
With your mortgage pre-approved, and your deposit secured you should know exactly the highest amount you are able to pay.
The very best offers are also very clean and likely subject-free.
Our 30 some years in and around real estate has shown us that good communication, preparation, perseverance and just the right amount of patience can make your next home buying experience much more rewarding than trying to take short cuts or trying to ride this roller-coaster by yourself.
It would be our pleasure to discuss your needs and concerns about your home buying objectives at your convenience. Peter Pfann will always treat you with respect and in full confidence.