(May 14, 2011)
Thank you for taking your time in reading my Monthly Newsletter. My dedication to you is my number one goal, as my assurance in our real estate market is the confidence I can provide to you. The real estate market has brought spectacular turnovers throughout our neighboring cities. As many of you may already know and as obvious as it has become, West Vancouver has exploded through the month of April and is still pushing on upwards! High demands for West Vancouver homes have diminished the availability for any anxious purchaser whose unfortunate lower offers have been declined. Variations from foreign investors being generally Asian and those whose funds are kept in deep pockets have unquestionably made an impression throughout the community. Targeting and scrambling to own not only lower end properties, the demand has even reached supreme luxury homes. I have personally experienced this mind blowing interaction where I have witnessed million dollar properties become showered with offers asking over double its market values. Although this may be of some bad news for those who do not have the financial amenities to purchase in West Vancouver, the good news is that there is still time to land your investment safely into North Vancouver - an exponentially and stable increasing market. North Vancouver shows values in the $750,000 for the majority three bedroom houses and steadily is increasing. My advice to you as clearly depicted above is: invest where the market is sparking, not where it is flaming... Traveling across the Lions Gate Bridge into condos located downtown you will grasp a ‘reverse’ market peaking around the corner holding influences predicted to instigate mid to final year. The tightening constrain for mortgages has crushed first time home buyers. Looking back November 2010 and its new year, first time home buyers had low mortgage rates available with less constraints. During this time condos in downtown where selling at an extremely fast pace, especially with the mortgage incentives which are still current to home buyers. Canadian banks now raising their interest rates as barriers from the surprising still falling invasion of U.S.'s financial crisis will surely put a limitation on those who are first time purchasers. Nevertheless, we will see downtown's condo prices fluctuate with less selling potentials. Eventually prices will begin to stabilize and in time trickle to lower margins. Not to forget the growing supply of apartments; there are over ten sky scraping apartment buildings racing to reach the heavens! But don't let this discourage you; there is always demand, particularly for rentals in downtown! Purchasing pre-development condos is a smart and efficient way to begin your investment. This concept needs to be amplified within the Vancouver’s Tri-Cities. If you want a cost effective investment, this is where you need to due diligence. Frequent amount of condos are in their pre-development stages and you can guarantee an investment below the $200,000's. As a result, be assured to have a lineup of renters knocking at your door and inquiring about your new condo. Taking a closer look into Surrey, I am proud to say that it is a city where the spark has been lit and the flames will certainly accumulate. Mayor Dianne Watts has infiltrated Surrey with great expectations in the city’s redevelopments. Hospitals, Parks, Recreational Facilities, Libraries, Government Houses, streets, etc… have begun their renovations to attract and swallow the growing population. Astonishing enough there are an average of 2,500 policemen being reallocated to the city of Surrey as we speak. Also, Surrey's neighboring city Abostford has high expansion plans for its international airport. This has given the apparent attraction for all businesses and investments. If you would like any relative information for pre-development purchases or any other real estate services needed, my expertise is more than available. Thank you for your time and enjoy your month of May!
Flexible down payment Options....The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments. Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment. Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the home ownership door and start accumulating equity earlier. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back. Under the RRSP Home Buyers’ Plan, first-time home buyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free. And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.