JUST BOUGHT

STUNNING 2 BED 2 BATH IN FAIRVIEW

So excited for these new homeowners who just secured their first home! This couple reached out less than two months ago because their landlord had their apartment up for sale and they thought, maybe we should buy it!? This situation sis often a catalyst for buying as folks are saving up while staying in rentals they love, taking their time with no reason to rush. Then they get THAT CALL finding out their place is up for sale; changing their 1-2 year or even 5 year plan of buying into a 3 month plan unless they want to 1- take a chance the new owners are looking to keep them (less likely with certain rentals and with current interest rates) or 2- find a new rental (which will surely include a hefty increase in rent), sign a new lease and move with no assurance that they won’t be doing that again in 12 months when that lease is up.

This couple reached out less than two months ago because their landlord had their apartment up for sale and they thought, maybe we should buy it!?

So they thought, we love our area, don’t mind the building and buying our current rental could eliminate that awful packing/moving part of the process. Wouldn’t that be nice!
But, looking into a rental and buying into a strata are entirely different things and that’s where I came in. 

Their friend recommended me after I help her buy last year and we set-up a meeting ASAP since they had a timeline to consider. After researching their current building, our first meeting was a great place to start educating them on what to consider when buying into a Strata Corporation and with that in mind, my initial concerns with the strata their current rental was in. With eyes wide open and my assurance that there were many great listings in their budget, they decided that their place may still be an option BUT it was worth seeing what else was out there.

Lucky for me, these two were dream buyers; they were so open-minded, organized and curious. Plus they laughed at my jokes! And lucky for them; their ideal areas of Mount Pleasant, Cambie, South False Creek and Fairview had the most inventory we’d seen in at least 2 years (4 year high for some) so there were no shortage of listings that matched their criteria and less competition for the ones they loved. 

After 3 packed Saturdays of touring over 15 homes with plenty of buying education along the way, they found a beautiful and unique home that caught their eye, a part of a  small strata which gave them a community feel that they didn’t even know they were looking for. With offers due the following Tuesday, my now educated buyers were able to do most of their due diligence ahead of time and present a beautiful offer; secure the home for under ask after only one week on the market. Another reminder that sellers are not ONLY looking at the price.

Six weeks after our initial meeting, these buyers removed subjects on a beautiful 2 bedroom penthouse in Fairview. All of this even before their rental sold; taking control of the timeline and taking advantage of the current market.
Congrats I & H, can't wait to hand you the keys!

RSS

If timing the market were easy, you’d have seen a wave of retirees after March 2022. Everyone would have bought in Maple Ridge in 2019 or even the fall of 2020, held till March 2022 and cashed out with 40% profits. But no, there are too many unknown factors. So instead, as a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation, future goals and of course the market. Because I do not yet know your motivation to sell, let’s talk first about the market based on the June 2024 numbers.

While we are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will sell; it is not an objectively ideal time to list. 

What makes me say that? Well to decide whether the market is ripe for listing we have to consider supply and demand. Supply in Real Estate is listings and Mount Pleasant is currently 22% over the 10year average of Totally Inventory for this time of year. Demand of course is the buyers looking to purchase those listings and despite the additional inventory, June sales in Mount Pleasant were 7% below the 10 year average. 

So, objectively speaking, listing right now means less eyes on your property. Not to mention that summer has finally hit in Vancouver; kids are out of school and weekends are filling up and buyers tend to have less urgency in their home search this time of year.


It isn’t the best time to sell for everyone but it might be the best time for YOU.

If you are looking to sell a property without buying another one (neither upsizing or downsizing) and you are in the position to hold the property; I still believe there will be a better market to list as the BoC continues to make rate cuts. Prepare but hold.

Upsizing? Well that is a different story. If you’re selling to upsize and buy a larger (thus, more expensive) home, then we need to consider your experience on the buy side as well when discussing your sale strategy. Less competition on the buy side will always save you stress but when upsizing in a slow market; it will save you stress and MONEY. If the product and market you are buying in (ie. townhouse in Mount Pleasant) is performing the same or slower than the one you are selling in (ie. condo on Cambie) then not getting as high of an offer as you would have on your listing will be more than made up for by avoiding less competition in your purchase. Ultimately net positive.

If you are downsizing and both markets are performing the same, the opposite will be true. You’ll take a larger hit selling the higher-priced home in a slow market. Currently detached home sales are stale. In Mount Pleasant no single family home sales were recorded in June. Sure, the 10 yr avg for June is only 5.1 but this is the only shutout for that product in June of any year in the last decade. Zooming out a bit more and single family home sales in East Vancouver were 45% lower than the 10 year average.
One strategy for those single family homeowners that would like to make a move to a condo or townhouse this summer; Since most downsizers have substantial equity built up in their home, depending on the structure of their financing and tolerance to risk, they could buy first and prepare their home for a sale when the market starts to shift. Detached sales are down but so are new listings and total inventory so when the demand returns, your vacant and staged home will be ready to market and sell!

Like I said, a selling strategy should be based on many factors, only one of which is the current market and how to capitalize within it. Your personal situation and goals need to be heavily considered in order to decide if Summer 2024 is the right time to sell.

If selling is in your future, let’s sit down now and create a selling strategy.

Click here and book with me directly

Email: kadelacasse@gmail.com
Call/text: 604-401-9199

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If timing the market were easy, you’d have seen a wave of retirees after March 2022. Everyone would have bought in Maple Ridge in 2019 or even the fall of 2020, held till March 2022 and cashed out with 40% profits. But no, there are too many unknown factors. So instead, as a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation and future goals. 

We are in what has been coined a ‘luke warm Spring Market’. We are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will get offers. The median Days on Market in March was low at only 10 days. So, in general it is a good time to list but less talk more specifically...

Looking to sell your property without buying right away?  While timing the market is always risky as we can’t say what’s around the corner... I still believe there will be a better market to list when the BoC finally makes their first rate cute of 2024. Prepare but hold.

But if, like most sellers, you’re selling your primary residence to upsize and buy another home, then we need to consider your experience on the buy side as well when discussing your sale strategy.

Less competition on the buy side, especially when upsizing, will save you stress and money. Not getting as high of an offer as you would have on your listing will be made up for by avoiding less competition in your purchase. Ultimately net positive.

Either way, if you are going to sell this Spring, be very cautious of the low list price strategy to drive multiple offers. We are seeing that tactic fail often right now. It may work for some but it is not the 2021/22 Spring Housing Market.

If selling is in your future, let’s sit down now and create a selling strategy.


Email: kadelacasse@gmail.com
Call/text: 604-401-9199
Or Click here and book with me directly

 
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At the end of February the Government of BC announced new measures stemming from the 2024 Budget that thankfully included an increase in the Property Transfer Tax (PTT) exemption amounts for first time home buyers and buyers purchasing new builds. 

Property Transfer Tax is a tax due when an individual is buying or gaining interest in a residential home in BC.


They love to hit us with confusing tax rates to keep us guessing;

 1% on the 1st $200,000
+2% on the balance between $200k and $2,000,000
+3% on the balance between $2,000,000 and $3,000,000
+5% on the balance over $3,000,000
= a big chunk of change that could have been going towards your downpayment or new furniture


There are a few exemptions to do with homes being transfered due to death and divorce but when it comes to purchasing Real Estate the main exemptions are for first time home buyers and newly built homes.

Qualified buyers purchasing their first home would be exempt from the tax but only for homes $500,000 and below (with partial exemptions up to $525,000). Meaning that if you bought a home for $526,000 and qualified as a first time home buyer, you wouldn't save a penny on PTT. In a region (Metro Vancouver) where the median home price for a condo hasn't been below 500k since January 2017; not many new home buyers were able to take advantage of that exemption. 

The good news announced in February is that as of April 1st, 2024 the purchase price threshold expands to $835,000 with a partial-partial exemption between $835,000 and $860,000. I say 'partial-partial exemption' because unike the previous exemption threshold which was a full exemption of the PTT due on properties with a fair market value under $500,000 (up to $8,000 in tax savings); this expanded threshold only means more homes will quailify for an exemption BUT it does not increase the amount of PTT they save.
Simply put, if you purchase a home with the fair market value under $835,000 and qualify for the FTHB exemption; the first $500,000 of that purchase price will be exempt from the PTT and you will only owe the balance beyond $500k. So the purchaser's tax savings are still capped at up to $8,000.

If you purchase a home between $835,000 and $860,000 the exemption will decrease from $8k-$0 as the fair market value increases.


Newly Built Homes

More puchasers buying brand new properties will also qualify for a break starting April 1st, 2024!
The newly built exemption is not strictly for first time home buyers either; to qualify the purchaser only needs to be a Permanaent Resident or Canadian Citizen, they need to be the first registration on title, the property needs to be less than .50 hectres and their primary residence.

Currently home buyers purchasing a newly built home with a fair market value below $750,000 may qualify for a full exemption from PTT but would still have to pay a 5% GST charged. That's a total of up to $13,000 in savings but the median price of new builds in our region has not been below $750,000 since April 2017 so not many purchases qualified.

For properties registered after Apil 1st, 2024 this threshold is raised to $1,100,000 (with more partial pro-rated exemptions between $1,100,000 and $1,150,000)I meaning qualfied buyers can save up to $20,000 in Property Transfer Tax!

*There is no exemption for the 5% GST which is charged on new builds.


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BC's New Short-Term Rentals Act



Announced the morning of Oct 16, 2023;
The latest housing legislation introduced by the province is aimed specifically at short term housing within the province as municipalities across the BC deal with long term rental shortages causing record increases in monthly rent. 

The Gov't of BC plans to phase-in the legislation over 2 years. You can find the full details at the link below but here are my highlights;

  1. Primary Residents Only: The legislation appears to restrict short-term rentals to primary residents, meaning those who live in the property as their main residence. Secondary suites on the same property may be allowed for short-term rentals.

  2. Fines and Data Sharing: The legislation includes provisions to increase fines for operators of short-term rentals. It also requires platforms such as Airbnb and VRBO to share data with local and provincial government authorities, which can help in monitoring and enforcement.

  3. Host and Platform Registry: The province plans to establish a provincial host and platform registry by late 2024, which is aimed at enhancing accountability in the short-term rental market.

  4. Compliance and Enforcement Unit: A provincial short-term rental compliance and enforcement unit is to be set up. This unit will be responsible for ensuring that the rules and regulations are followed by short-term rental operators.

This announcement comes less than a month after a report out of McGill University commissioned by the BC Hotel Association which stated that, between June 2023 and when the pandemic restrictions lifted in 2022, the removal of homes from long-term rental stock to short-term rental caused a 16.6% increase in baseline rent in major municipalities.

Enforcement is a significant concern, as many cities, including Vancouver, already have bylaws that are stricter than the ones introduced in this Act. Vancouver, for instance, requires short-term rental operators to be primary residents, have a business license, and restricts the rental of secondary suites unless they are the primary residence. However, enforcement has been a challenge in these municipalities and they have been asking the province for assitance.

The BC Hotel Association's report, authored by McGill University Professor Dr. David Wachsmuth, released in September 2023 highlights that a significant portion of short-term rental revenue comes from commercial operators who do not live in the properties they rent out. If the province can effectively enforce the new regulations and penalize violators, homes could return to the long-term rental market, alleviating a bit of the pressure related to long-term rental shortages and rising monthly rents in major municipalities. 

To stay informed on the latest, make sure to sign up for my newsletter.

Kade


To learn more about new short-term rental rules in B.C., visit: https://gov.bc.ca/ShortTermRentals

Full "The housing impacts of short-term rentals in British Columbia’s regions" report found here:
https://upgo.lab.mcgill.ca/publication/strs-housing-bc-2023-summer/Wachsmuth_BC_2023_08_10.pdf

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Mount Pleasant Market Update | Condos

Hyperlocal.

If you stick to the headlines, you’ll be trying to make a move when everyone else is. And competition is not desirable as a buyer or a seller. There are markets within markets within markets so keep a close eye on your area (or partner with someone who will) so you can evaluate the right market for YOU to make a move and ignore the click bait headlines telling you the broad strokes.

If you own a condo in Mt Pleasant or want to own a condo in Mt Pleasant; these are the numbers you need to be watching.

The Mount Pleasant condo market is proving to be resilient once again, making a small month to month jump (0.53% up) to a new record high benchmark price of $763,000, having surpassed the previous May 2022 peak in June of the year and continuing upwards. Although the trajectory is slowing and I expect it to stabilize rather than keep climbing.

This price stability despite high borrowing costs is (and will continue to be) fuelled by a lack of inventory. The August 2023 condo inventory in Mount Pleasant was 25% lower than the 10 year average. 

The median Days on Market jumped from 8 in July to 13 in August and were the highest since last October. This tells me less homes sold in their first week and sellers had to be more patient for summer buyers to make their move.

The sales to active ratio for August was 38%, still well in the seller's market range (defined by a market with an over 20% sales to active ratio).


If you are looking to sell; there is plenty of demand for well marketed, well priced, Mt Pleasant condos especially as fall brings buyers back to their routines and goals.


Reach out and let’s start strategizing how to present your home in it’s best light!

Kade

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SOLD Beautiful Mount Pleasant Couch House

I love helping turn Mt Pleasant renters into Mt Pleasant homeowners✨

 These buyers filled their home buying bingo card in a very short amount of time including three inspections, having to walk away from an accepted offer and competing against 8 other offers.

This meant they had narrowed down their livable compromises and the deal breakers through tough decisions including just how important staying in Mount Pleasant was.

They were seasoned buyers after less than 2 months of shopping. So, when this place popped up, they were in the next day to view and sent an offer that evening that was strong enough to deter the seller from waiting for their open house.

They secured a beautiful 6 year old home in a small strata in Vancouver's best neighbourhood.
No shared walls, so much storage and an attached garage.

Well done R & A 

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Mount Pleasant Market Update




If you’re buying a condo or thinking of listing, you should be watching the stats on a local level. 

Nothing new here, Mount Pleasant condos are a hot commodity. And with the skytrain extension, new St Pauls Hospital and office development booming in the area, I can’t see demand slowing anytime soon.

It may seem counter productive but with the possibility of more interest rate increases on the horizon; a prudent buyer will stay active or get active in this market. Why? One or two more hikes will not have the same affect on the market as the 8 straight increases between March 2022 and January 2023 BUT another increase in July combined with the typical summer lull from folks travelling may just open up a window for opportunity. At the very least, you could see less competition.

How about some good news for the small budget buyer? There are pockets of older buildings that can still bring great value per sqft if you can sacrifice luxuries like in-suite laundry for location. Of course it all depends on your personal priorities.

First time buyers; Unfortunately this neighbourhood is not going to get more affordable so starting where you can instead of waiting for the dream place is the way in. 

Kade

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Just Sold at 1207 MARSDEN CRT in Burnaby

I have sold a property at 1207 MARSDEN CRT in Burnaby.
Welcome to this beautiful home situated on a quiet cul-de-sac in a highly sought after North Burnaby neighbourhood. With 3 beds up, 3 beds down, separate entrances and generous living areas; this home is perfect for a large family OR add a suite and still have plenty of space for yourself! You’ll love the layout as the large kitchen opens up to the dining room which connects the two living rooms. Out back you’ll find a west-facing, treed and fully fenced backyard offering a private, peaceful retreat with afternoon and evening sun on your two decks and garden patio. Perfect for outdoor entertaining. Feat: Level 2 EV charger, new stainless steel appliances, breakfast bar. Nearby: SFU, Burnaby Mtn Golf Course, Burnaby Mtn Urban Trail, hiking, mtb. Book an appt. with your Realtor today!
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Your Share: Unit Entitlement

“This Strata is voting on a $778,000 special levy! How much will I owe if that passes?”

When you buy into a Strata, you are buying everything from the middle of any external walls in and throughout your Strata lot BUT you are also buying into the Strata corporation and a share of the Common Property. With ownership comes a share in the assets and liabilities of that corporation.

When a Strata is first registered with the Land Title Registry, the Developer registers a Strata Plan which, among many things, explains the portion each Strata lot is responsible for within the Strata.

This is called “Unit Entitlement”.

Unit Entitlement is used to calculate your share of a Special Levy as well as your monthly maintenance fees. In most cases that you’d see in Vancouver condos and townhouses; the unit entitlement is based off of habitable area. As in a 600 sqft condo would pay half of the maintenance fees and special levy as a 1200 sqft unit in the same complex. But it can also be divided evenly, with each Strata lot paying an equal share. That situation would be more likely in a side by side townhouse complex where each unit is pretty comparable in size or shared assets.

You can find your share of costs by dividing your Strata lot’s unit entitlement by the aggregate of all strata lots. This chart should be attached to the Strata Plan when you are looking through Strata documents but is also typically attached to any notice of special levy votes or change in maintenance fees in the Council Minutes.
Here is an example of one of those charts showing the unit entitlement for each lot and the aggregate amount at the bottom of the page;

So for this example; Strata lot #1 has a unit entitlement of 758 out of a total of 32,799.
Divide 758 by 32799 and multiply by 100 to get a %. In this case Strata lot #1 would be responsible for 2.31% of the annual budget paid via maintenance fees and any special levies approved while they are the registered owner. ($17,971.80 of that $778,000)..

The unit entitlement can not be changed arbitrarily by the Strata Management or Strata Council. Whatever is registered in the land title office should be relied upon as any legal challenge or change would need to be registered with that Strata Plan as well.


Potential Buyers! 

Forecasting future costs for the time you plan to own a home is a big part of the due diligence necessary before committing to the purchase of a Strata property. If the Strata is expecting a large project (parkade membrane, rainscreen or exterior renewal) most likely the CRF will not have the funds to cover the expense and a special levy will be necessary; knowing your unit entitlement will put those numbers into perspective. A $778,000 special levy that costs you $1500 is a very different conversation than one that will cost you $17,981.80 after you’ve already dipped into your savings for the downpayment and closing costs.

Thinking of buying into a Strata property? 
Click here for more information on Stratas or reach out directly, let’s chat!

-Kade
604-401-9199
kadelacasse@gmail.com 

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Are you thinking of selling your home in 2023?!
Here’s 3 ways You Can Protect Yourself as a Seller in the new age of the Home Buyer Rescission Period

The Home Buyer Rescission Period (HBRP) came into effect Canada wide on January 3rd, 2023 to protect consumers during competition and blind bidding. As of January 3rd unless the property was exempt (ie. leasehold, new development, co-op) the buyer had a 3 business day window to rescind their offer and unlike a subject, the buyer would not be limited to a specific reason why BUT they would be required to pay a  rescission fee which equals .25% of the purchase price. ($2500 per million)

Since this legislation was enacted during a stale winter market that saw Days on Market triple in East Vancouver; subject free offers were a distant memory and the attitude was “too little too late” from consumers and industry professionals alike.

 But as January continued on, open houses got busier and the stale holiday inventory started to disappear. February 1st came and whether it was a reaction to the Bank of Canada’s hint that we may have seen the last increase to the policy interest rate on January 25th or consumers were listening to their agents telling them we were close to bottom price-wise; that open house activity turned to offers. 

Competition and subject free offers have returned much sooner than expected to Vancouver! This is great news for Sellers that have been waiting to list their home but how do Sellers protect themselves against a legislation that is skewing some of the power to the buyer?


As a seller, here are three things you should do to protect your interests!

  1. Deposit Structure
    While the HBRP allows for the seller to access the rescission fee via a deposit (skirting the usual need for both parties to agree to release deposit funds); the deposit structure is still a negotiable term of the contract and neither realtor is responsible for helping you retrieve those funds directly from the buyer if they have yet to deliver a deposit.  So, as a seller if you are expecting competition, request at least a .25% deposit if not the full 5% deposit upon acceptance.

  2. Back-up offer
    Timing is essential in Real Estate!
    Since a buyer exercising their right of rescission could set you back for the better part of a week depending on when the offer was accepted; if you had multiple offers, you should be lining up at least one back-up offer! A back-up offer is an offer that is subject to you (the seller) no longer being obligated in any way concerning the sale of the property. The key with the back-up offer here is that the rescission period begins at the time of acceptance, not the time of the other offer rescinding. Let’s say you hold offers until Tuesday at 12pm. You get 5 offers, accept the best, negotiate a back-up offer and both are accepted on Tuesday. Assuming no holidays that week, the rescission period for BOTH offers starts on the following business day (Wednesday) and ends at 11:59pm on Friday evening.  So if the first offer rescinds at any point, the back-up offer would only have until 11:59pm on Friday to rescind. Leaving you with much greater odds of a firm deal on Saturday!

  3. Work with an agent that is well versed in the rescission period.
    You don’t need an agent to tell you that 1,300,000 is more $$$ than 1,250,000; use an agent that can talk you through a strategy to protect your time and energy instead of just “Sold For Over Ask”.

    If you have any questions, please reach out.
    Let's chat about whether it's the right to time to list your home!
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RSS

If timing the market were easy, you’d have seen a wave of retirees after March 2022. Everyone would have bought in Maple Ridge in 2019 or even the fall of 2020, held till March 2022 and cashed out with 40% profits. But no, there are too many unknown factors. So instead, as a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation, future goals and of course the market. Because I do not yet know your motivation to sell, let’s talk first about the market based on the June 2024 numbers.

While we are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will sell; it is not an objectively ideal time to list. 

What makes me say that? Well to decide whether the market is ripe for listing we have to consider supply and demand. Supply in Real Estate is listings and Mount Pleasant is currently 22% over the 10year average of Totally Inventory for this time of year. Demand of course is the buyers looking to purchase those listings and despite the additional inventory, June sales in Mount Pleasant were 7% below the 10 year average. 

So, objectively speaking, listing right now means less eyes on your property. Not to mention that summer has finally hit in Vancouver; kids are out of school and weekends are filling up and buyers tend to have less urgency in their home search this time of year.


It isn’t the best time to sell for everyone but it might be the best time for YOU.

If you are looking to sell a property without buying another one (neither upsizing or downsizing) and you are in the position to hold the property; I still believe there will be a better market to list as the BoC continues to make rate cuts. Prepare but hold.

Upsizing? Well that is a different story. If you’re selling to upsize and buy a larger (thus, more expensive) home, then we need to consider your experience on the buy side as well when discussing your sale strategy. Less competition on the buy side will always save you stress but when upsizing in a slow market; it will save you stress and MONEY. If the product and market you are buying in (ie. townhouse in Mount Pleasant) is performing the same or slower than the one you are selling in (ie. condo on Cambie) then not getting as high of an offer as you would have on your listing will be more than made up for by avoiding less competition in your purchase. Ultimately net positive.

If you are downsizing and both markets are performing the same, the opposite will be true. You’ll take a larger hit selling the higher-priced home in a slow market. Currently detached home sales are stale. In Mount Pleasant no single family home sales were recorded in June. Sure, the 10 yr avg for June is only 5.1 but this is the only shutout for that product in June of any year in the last decade. Zooming out a bit more and single family home sales in East Vancouver were 45% lower than the 10 year average.
One strategy for those single family homeowners that would like to make a move to a condo or townhouse this summer; Since most downsizers have substantial equity built up in their home, depending on the structure of their financing and tolerance to risk, they could buy first and prepare their home for a sale when the market starts to shift. Detached sales are down but so are new listings and total inventory so when the demand returns, your vacant and staged home will be ready to market and sell!

Like I said, a selling strategy should be based on many factors, only one of which is the current market and how to capitalize within it. Your personal situation and goals need to be heavily considered in order to decide if Summer 2024 is the right time to sell.

If selling is in your future, let’s sit down now and create a selling strategy.

Click here and book with me directly

Email: kadelacasse@gmail.com
Call/text: 604-401-9199

Read

If timing the market were easy, you’d have seen a wave of retirees after March 2022. Everyone would have bought in Maple Ridge in 2019 or even the fall of 2020, held till March 2022 and cashed out with 40% profits. But no, there are too many unknown factors. So instead, as a Realtor I advise my clients on how to decide when it’s the best time for them personally to sell based on their current situation and future goals. 

We are in what has been coined a ‘luke warm Spring Market’. We are seeing enough buyer activity that a well marketed and well priced home in Mt Pleasant will get offers. The median Days on Market in March was low at only 10 days. So, in general it is a good time to list but less talk more specifically...

Looking to sell your property without buying right away?  While timing the market is always risky as we can’t say what’s around the corner... I still believe there will be a better market to list when the BoC finally makes their first rate cute of 2024. Prepare but hold.

But if, like most sellers, you’re selling your primary residence to upsize and buy another home, then we need to consider your experience on the buy side as well when discussing your sale strategy.

Less competition on the buy side, especially when upsizing, will save you stress and money. Not getting as high of an offer as you would have on your listing will be made up for by avoiding less competition in your purchase. Ultimately net positive.

Either way, if you are going to sell this Spring, be very cautious of the low list price strategy to drive multiple offers. We are seeing that tactic fail often right now. It may work for some but it is not the 2021/22 Spring Housing Market.

If selling is in your future, let’s sit down now and create a selling strategy.


Email: kadelacasse@gmail.com
Call/text: 604-401-9199
Or Click here and book with me directly

 
Read

At the end of February the Government of BC announced new measures stemming from the 2024 Budget that thankfully included an increase in the Property Transfer Tax (PTT) exemption amounts for first time home buyers and buyers purchasing new builds. 

Property Transfer Tax is a tax due when an individual is buying or gaining interest in a residential home in BC.


They love to hit us with confusing tax rates to keep us guessing;

 1% on the 1st $200,000
+2% on the balance between $200k and $2,000,000
+3% on the balance between $2,000,000 and $3,000,000
+5% on the balance over $3,000,000
= a big chunk of change that could have been going towards your downpayment or new furniture


There are a few exemptions to do with homes being transfered due to death and divorce but when it comes to purchasing Real Estate the main exemptions are for first time home buyers and newly built homes.

Qualified buyers purchasing their first home would be exempt from the tax but only for homes $500,000 and below (with partial exemptions up to $525,000). Meaning that if you bought a home for $526,000 and qualified as a first time home buyer, you wouldn't save a penny on PTT. In a region (Metro Vancouver) where the median home price for a condo hasn't been below 500k since January 2017; not many new home buyers were able to take advantage of that exemption. 

The good news announced in February is that as of April 1st, 2024 the purchase price threshold expands to $835,000 with a partial-partial exemption between $835,000 and $860,000. I say 'partial-partial exemption' because unike the previous exemption threshold which was a full exemption of the PTT due on properties with a fair market value under $500,000 (up to $8,000 in tax savings); this expanded threshold only means more homes will quailify for an exemption BUT it does not increase the amount of PTT they save.
Simply put, if you purchase a home with the fair market value under $835,000 and qualify for the FTHB exemption; the first $500,000 of that purchase price will be exempt from the PTT and you will only owe the balance beyond $500k. So the purchaser's tax savings are still capped at up to $8,000.

If you purchase a home between $835,000 and $860,000 the exemption will decrease from $8k-$0 as the fair market value increases.


Newly Built Homes

More puchasers buying brand new properties will also qualify for a break starting April 1st, 2024!
The newly built exemption is not strictly for first time home buyers either; to qualify the purchaser only needs to be a Permanaent Resident or Canadian Citizen, they need to be the first registration on title, the property needs to be less than .50 hectres and their primary residence.

Currently home buyers purchasing a newly built home with a fair market value below $750,000 may qualify for a full exemption from PTT but would still have to pay a 5% GST charged. That's a total of up to $13,000 in savings but the median price of new builds in our region has not been below $750,000 since April 2017 so not many purchases qualified.

For properties registered after Apil 1st, 2024 this threshold is raised to $1,100,000 (with more partial pro-rated exemptions between $1,100,000 and $1,150,000)I meaning qualfied buyers can save up to $20,000 in Property Transfer Tax!

*There is no exemption for the 5% GST which is charged on new builds.


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BC's New Short-Term Rentals Act



Announced the morning of Oct 16, 2023;
The latest housing legislation introduced by the province is aimed specifically at short term housing within the province as municipalities across the BC deal with long term rental shortages causing record increases in monthly rent. 

The Gov't of BC plans to phase-in the legislation over 2 years. You can find the full details at the link below but here are my highlights;

  1. Primary Residents Only: The legislation appears to restrict short-term rentals to primary residents, meaning those who live in the property as their main residence. Secondary suites on the same property may be allowed for short-term rentals.

  2. Fines and Data Sharing: The legislation includes provisions to increase fines for operators of short-term rentals. It also requires platforms such as Airbnb and VRBO to share data with local and provincial government authorities, which can help in monitoring and enforcement.

  3. Host and Platform Registry: The province plans to establish a provincial host and platform registry by late 2024, which is aimed at enhancing accountability in the short-term rental market.

  4. Compliance and Enforcement Unit: A provincial short-term rental compliance and enforcement unit is to be set up. This unit will be responsible for ensuring that the rules and regulations are followed by short-term rental operators.

This announcement comes less than a month after a report out of McGill University commissioned by the BC Hotel Association which stated that, between June 2023 and when the pandemic restrictions lifted in 2022, the removal of homes from long-term rental stock to short-term rental caused a 16.6% increase in baseline rent in major municipalities.

Enforcement is a significant concern, as many cities, including Vancouver, already have bylaws that are stricter than the ones introduced in this Act. Vancouver, for instance, requires short-term rental operators to be primary residents, have a business license, and restricts the rental of secondary suites unless they are the primary residence. However, enforcement has been a challenge in these municipalities and they have been asking the province for assitance.

The BC Hotel Association's report, authored by McGill University Professor Dr. David Wachsmuth, released in September 2023 highlights that a significant portion of short-term rental revenue comes from commercial operators who do not live in the properties they rent out. If the province can effectively enforce the new regulations and penalize violators, homes could return to the long-term rental market, alleviating a bit of the pressure related to long-term rental shortages and rising monthly rents in major municipalities. 

To stay informed on the latest, make sure to sign up for my newsletter.

Kade


To learn more about new short-term rental rules in B.C., visit: https://gov.bc.ca/ShortTermRentals

Full "The housing impacts of short-term rentals in British Columbia’s regions" report found here:
https://upgo.lab.mcgill.ca/publication/strs-housing-bc-2023-summer/Wachsmuth_BC_2023_08_10.pdf

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Mount Pleasant Market Update | Condos

Hyperlocal.

If you stick to the headlines, you’ll be trying to make a move when everyone else is. And competition is not desirable as a buyer or a seller. There are markets within markets within markets so keep a close eye on your area (or partner with someone who will) so you can evaluate the right market for YOU to make a move and ignore the click bait headlines telling you the broad strokes.

If you own a condo in Mt Pleasant or want to own a condo in Mt Pleasant; these are the numbers you need to be watching.

The Mount Pleasant condo market is proving to be resilient once again, making a small month to month jump (0.53% up) to a new record high benchmark price of $763,000, having surpassed the previous May 2022 peak in June of the year and continuing upwards. Although the trajectory is slowing and I expect it to stabilize rather than keep climbing.

This price stability despite high borrowing costs is (and will continue to be) fuelled by a lack of inventory. The August 2023 condo inventory in Mount Pleasant was 25% lower than the 10 year average. 

The median Days on Market jumped from 8 in July to 13 in August and were the highest since last October. This tells me less homes sold in their first week and sellers had to be more patient for summer buyers to make their move.

The sales to active ratio for August was 38%, still well in the seller's market range (defined by a market with an over 20% sales to active ratio).


If you are looking to sell; there is plenty of demand for well marketed, well priced, Mt Pleasant condos especially as fall brings buyers back to their routines and goals.


Reach out and let’s start strategizing how to present your home in it’s best light!

Kade

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SOLD Beautiful Mount Pleasant Couch House

I love helping turn Mt Pleasant renters into Mt Pleasant homeowners✨

 These buyers filled their home buying bingo card in a very short amount of time including three inspections, having to walk away from an accepted offer and competing against 8 other offers.

This meant they had narrowed down their livable compromises and the deal breakers through tough decisions including just how important staying in Mount Pleasant was.

They were seasoned buyers after less than 2 months of shopping. So, when this place popped up, they were in the next day to view and sent an offer that evening that was strong enough to deter the seller from waiting for their open house.

They secured a beautiful 6 year old home in a small strata in Vancouver's best neighbourhood.
No shared walls, so much storage and an attached garage.

Well done R & A 

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Mount Pleasant Market Update




If you’re buying a condo or thinking of listing, you should be watching the stats on a local level. 

Nothing new here, Mount Pleasant condos are a hot commodity. And with the skytrain extension, new St Pauls Hospital and office development booming in the area, I can’t see demand slowing anytime soon.

It may seem counter productive but with the possibility of more interest rate increases on the horizon; a prudent buyer will stay active or get active in this market. Why? One or two more hikes will not have the same affect on the market as the 8 straight increases between March 2022 and January 2023 BUT another increase in July combined with the typical summer lull from folks travelling may just open up a window for opportunity. At the very least, you could see less competition.

How about some good news for the small budget buyer? There are pockets of older buildings that can still bring great value per sqft if you can sacrifice luxuries like in-suite laundry for location. Of course it all depends on your personal priorities.

First time buyers; Unfortunately this neighbourhood is not going to get more affordable so starting where you can instead of waiting for the dream place is the way in. 

Kade

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Just Sold at 1207 MARSDEN CRT in Burnaby

I have sold a property at 1207 MARSDEN CRT in Burnaby.
Welcome to this beautiful home situated on a quiet cul-de-sac in a highly sought after North Burnaby neighbourhood. With 3 beds up, 3 beds down, separate entrances and generous living areas; this home is perfect for a large family OR add a suite and still have plenty of space for yourself! You’ll love the layout as the large kitchen opens up to the dining room which connects the two living rooms. Out back you’ll find a west-facing, treed and fully fenced backyard offering a private, peaceful retreat with afternoon and evening sun on your two decks and garden patio. Perfect for outdoor entertaining. Feat: Level 2 EV charger, new stainless steel appliances, breakfast bar. Nearby: SFU, Burnaby Mtn Golf Course, Burnaby Mtn Urban Trail, hiking, mtb. Book an appt. with your Realtor today!
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Your Share: Unit Entitlement

“This Strata is voting on a $778,000 special levy! How much will I owe if that passes?”

When you buy into a Strata, you are buying everything from the middle of any external walls in and throughout your Strata lot BUT you are also buying into the Strata corporation and a share of the Common Property. With ownership comes a share in the assets and liabilities of that corporation.

When a Strata is first registered with the Land Title Registry, the Developer registers a Strata Plan which, among many things, explains the portion each Strata lot is responsible for within the Strata.

This is called “Unit Entitlement”.

Unit Entitlement is used to calculate your share of a Special Levy as well as your monthly maintenance fees. In most cases that you’d see in Vancouver condos and townhouses; the unit entitlement is based off of habitable area. As in a 600 sqft condo would pay half of the maintenance fees and special levy as a 1200 sqft unit in the same complex. But it can also be divided evenly, with each Strata lot paying an equal share. That situation would be more likely in a side by side townhouse complex where each unit is pretty comparable in size or shared assets.

You can find your share of costs by dividing your Strata lot’s unit entitlement by the aggregate of all strata lots. This chart should be attached to the Strata Plan when you are looking through Strata documents but is also typically attached to any notice of special levy votes or change in maintenance fees in the Council Minutes.
Here is an example of one of those charts showing the unit entitlement for each lot and the aggregate amount at the bottom of the page;

So for this example; Strata lot #1 has a unit entitlement of 758 out of a total of 32,799.
Divide 758 by 32799 and multiply by 100 to get a %. In this case Strata lot #1 would be responsible for 2.31% of the annual budget paid via maintenance fees and any special levies approved while they are the registered owner. ($17,971.80 of that $778,000)..

The unit entitlement can not be changed arbitrarily by the Strata Management or Strata Council. Whatever is registered in the land title office should be relied upon as any legal challenge or change would need to be registered with that Strata Plan as well.


Potential Buyers! 

Forecasting future costs for the time you plan to own a home is a big part of the due diligence necessary before committing to the purchase of a Strata property. If the Strata is expecting a large project (parkade membrane, rainscreen or exterior renewal) most likely the CRF will not have the funds to cover the expense and a special levy will be necessary; knowing your unit entitlement will put those numbers into perspective. A $778,000 special levy that costs you $1500 is a very different conversation than one that will cost you $17,981.80 after you’ve already dipped into your savings for the downpayment and closing costs.

Thinking of buying into a Strata property? 
Click here for more information on Stratas or reach out directly, let’s chat!

-Kade
604-401-9199
kadelacasse@gmail.com 

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Are you thinking of selling your home in 2023?!
Here’s 3 ways You Can Protect Yourself as a Seller in the new age of the Home Buyer Rescission Period

The Home Buyer Rescission Period (HBRP) came into effect Canada wide on January 3rd, 2023 to protect consumers during competition and blind bidding. As of January 3rd unless the property was exempt (ie. leasehold, new development, co-op) the buyer had a 3 business day window to rescind their offer and unlike a subject, the buyer would not be limited to a specific reason why BUT they would be required to pay a  rescission fee which equals .25% of the purchase price. ($2500 per million)

Since this legislation was enacted during a stale winter market that saw Days on Market triple in East Vancouver; subject free offers were a distant memory and the attitude was “too little too late” from consumers and industry professionals alike.

 But as January continued on, open houses got busier and the stale holiday inventory started to disappear. February 1st came and whether it was a reaction to the Bank of Canada’s hint that we may have seen the last increase to the policy interest rate on January 25th or consumers were listening to their agents telling them we were close to bottom price-wise; that open house activity turned to offers. 

Competition and subject free offers have returned much sooner than expected to Vancouver! This is great news for Sellers that have been waiting to list their home but how do Sellers protect themselves against a legislation that is skewing some of the power to the buyer?


As a seller, here are three things you should do to protect your interests!

  1. Deposit Structure
    While the HBRP allows for the seller to access the rescission fee via a deposit (skirting the usual need for both parties to agree to release deposit funds); the deposit structure is still a negotiable term of the contract and neither realtor is responsible for helping you retrieve those funds directly from the buyer if they have yet to deliver a deposit.  So, as a seller if you are expecting competition, request at least a .25% deposit if not the full 5% deposit upon acceptance.

  2. Back-up offer
    Timing is essential in Real Estate!
    Since a buyer exercising their right of rescission could set you back for the better part of a week depending on when the offer was accepted; if you had multiple offers, you should be lining up at least one back-up offer! A back-up offer is an offer that is subject to you (the seller) no longer being obligated in any way concerning the sale of the property. The key with the back-up offer here is that the rescission period begins at the time of acceptance, not the time of the other offer rescinding. Let’s say you hold offers until Tuesday at 12pm. You get 5 offers, accept the best, negotiate a back-up offer and both are accepted on Tuesday. Assuming no holidays that week, the rescission period for BOTH offers starts on the following business day (Wednesday) and ends at 11:59pm on Friday evening.  So if the first offer rescinds at any point, the back-up offer would only have until 11:59pm on Friday to rescind. Leaving you with much greater odds of a firm deal on Saturday!

  3. Work with an agent that is well versed in the rescission period.
    You don’t need an agent to tell you that 1,300,000 is more $$$ than 1,250,000; use an agent that can talk you through a strategy to protect your time and energy instead of just “Sold For Over Ask”.

    If you have any questions, please reach out.
    Let's chat about whether it's the right to time to list your home!
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