Real Estate Information

Summer Curb Appeal Ideas:

(Particularly great if you’re selling your home)

1. Make sure the lawn is nicely mowed and the edges are neat. 
2. Water and fertilize the lawn to keep it full and green.
3. Add a nice top soil to your flower gardens or bark mulch
4. Get rid of the nasty weeds
5. Get out your scissors and prune the scrubs and flowers, trim back anything that looks like its dead or dying.
6. Place a nice pot full of bright flowers by your front step.
7. Clean the windows inside and out, make them shine! (It will help the sun shine in too, giving the inside of the home more appeal)
8. Fix up the front door, if it needs sand and paint do it!
9. Clean out the gutters
10. Sweep your driveway and walkways
11. If you have time and energy paint the exterior
12. Beat the dirt out of your welcome mat!  Just for fun!

Spring is here and outside work can seem never ending, but in our business the first impression is a big deal!  The moment a client can see the exterior of the house they begin imagining what it would be like to live there, so make everything count.  Also the sun is here so being outside doesn’t hurt either!!

The Axfords

778-899-2361

KNOW YOUR CREDIT SCORE, OWN YOUR HOME!

In the new era of financial lending the Canadian government is trying harder than ever to control Canada's debt load in order not to repeat what happened in the USA last year. As credit has become more and more abundant in our society, your credit report, and thus your credit rating, has become more important in your daily life. Your credit rating affects all aspects of your financial activities when it comes to borrowing money. Your credit rating also has the ability to affect the job you get, the apartment you rent, and even the ability to open a bank account. Your credit report itself is simply a listing of all of your mortgage and consumer debt.

There are two major credit reporting agencies in Canada, Equifax and TransUnion. An account with usually both these credit reporting agencies is created when a consumer applies for credit. Every time you borrow money, or make a payment on a loan or credit card, the lender then reports the information about the transaction to these two agencies. There are very few situations in which the extension of credit to a consumer does not result in a report going to the credit reporting agencies.

The credit reporting agencies then track all the credit information reported to them and thus create the consumer’s credit profile. The credit information collected reflects the amount of credit an individual has accumulated, minimum amount of payments, the regularity of payments, any missed payments, credit judgements against them, etc. The information on your credit report varies based on your creditors and what they have reported about you. Potential lenders and others, such as employers, view your credit history as a reflection of your character. Whether we like it or not, our financial habits have a lot to say about the way in which we choose to live our lives. The credit report also lists their employer, or if self-employed, occupation, address, date of birth and social insurance number, who has extended the credit, to whom the consumer has requested credit from, and often any former names  or aliases.

Since Equifax is used most commonly by brokers, I will refer primarily to the BEACON SCORE. TransUnion refers to their calculation as IMPERICA; beacon score makes more literal sense – in my mind! The assessment of the consumer’s credit worthiness by the credit reporting agency is based on statistics and various calculations that are translated into a credit score. A credit score is a risk assessment. It is a prediction of the consumer’s probability or likeliness to default on a debt over a 2 year period. The lower the credit score, the higher the risk of default. GOOD NEWS, your credit report is a working document and you repair any damaged credit over time to increase your beacon score. A beacon score can range from 300 to 850. Creditors usually interpret the score as follows:

680 - 850: good to superior credit

600 - 679: average to good credit

570 - 600: below average credit

Below 570: poor credit

There are 5 main factors that influence the beacon score:

The mortgage products and interest rate that you qualify for are often determined by your credit score. It is important to note that a high beacon score and relatively new credit profile may not necessarily lead to a credit approval. The creditor may not view the short period of credit history as sufficient evidence of the consumer’s ability to handle debt repayment. Don't have too many credit cards or credit inquiries as this will work against your credit profile. A mortgage consultant, such as myself, can help you obtain a copy of this report and go through it with you to verify that all of the information and help you fix any bad debt.

For any mortgage related questions or inquiries, please contact Michael Hallett, Dominion Lending Centres at 604 616 2266, mhallett@dominionlending.ca or twitter.com/mortgagesinbc – business hours, evenings, weekends and social media 24/7 - not just bank hours!

DREAM TODAY. OWN TOMORROW.

Once you have made the exciting decision to become a home owner, or perhaps buy a rental property your second step is to see what you can afford.  Your mortgage broker or bank will be able to get you a pre-approval to give you an idea of what price range you can shop in.

Here is a guideline of what you will need to present them:

1) Most current paystub.

2) 2010 T1 General, or Tax Return Summary

3) 2010 T4's.

4) 2010 Personal Notice of Assessment.  (2009 will be okay if you have

not yet received 2010's)

5) 90 day history on any funds/savings/stocks/bonds etc.  (They need a

90 day history in order to meet federally regulated anti money

laundering guidelines).

6) Most recent property assessment on any properties you currently own.

7) If any properties currently owned are rented a Statement of Real

Estate Activities that you file with the taxes, as well as a copy of

the most recent/current residential tenancy agreement.

Any questions about pre-approvals or real estate please don’t hesitate to call,

The Axfords,

778-355-0116

What the tenant is responsible for paying for?

The tenant is responsible for insuring all the removable contents of the home.  Anything they own including computers, clothes, furniture, stereo equipment ect.  Content insurance runs anywhere from $15 a month upwards, and it is well worth it in the event of a fire, flood, or theft.

What the landlord is responsible for paying?

The landlord is responsible for insuring the structure of their rental and any contents they own including appliances.  Any damage to the home itself, and any of the landlord’s possessions will be covered in this insurance.

 Why is it important for both parties to have coverage?

From a landlord’s perspective in the event of something happening-causing damage if your tenants do not have insurance for their belongings it will take longer to claim your insurance, and the expense of removing furniture, electronics, and all contents will be yours to absorb.

In the tenant’s perspective, in the event of something happening causing damage any damaged contents are fully your responsibility.  You will not be reimbursed for any items.  Like most tenants you may not feel you have that much in your home to insure but in the event of fire, floods, or theft it will be a massive bill to replace everything or maybe even a massive bill if you have to replace one or two items (computer, T.V. stereo, ect).  Content insurance is relatively cheap and will save you thousands if something were to happen.     

The Axfords,

778-355-0116

While multiple offers are a sellers dream come true buyers must be ready and prepared for this situation in order not get in over your head. 

Make sure you for one trust your realtor; you want them to work without emotion because I promise you will be letting the competitive, emotional side get the best of you. 

First off Realtors have to follow a certain protocol when dealing with multiple offers, so we highly recommend you take the time to sit down with your realtor and talk about just the general process of them representing a multiple offer, as well as the duties of the selling Realtor.

Now this part is important!  Remember the number you had in mind before you found out about the multiple offer situation, and try to stick to that as a guideline.  For example if you wanted to offer 380,000 on a $400,000 property hoping to land at $390,000 make sure you don’t pay much more than $390,000 for the property because the truth on every property is there will be something just as nice if not better come up, and maybe with a better price!  Your realtor will be happy to start shopping again with you if you loose this property, and I promise you will find something!  You do not want to win at any cost. 

Second is making sure everyone including all buyers, the sellers, and all realtors are being dealt with in a respectful, fair manor.  Do not let yourself, or your realtor be bullied because chances are if you are being bullied so is the representative of the other offers.  Everyone should be given equal time to present their offer, in order to give you enough time to think about your ideal possession dates, price, and conditions.  Make sure you are completely happy with your numbers, dates, and conditions because we and all other Realtors do not want you to have buyers remorse. 

Although it is nothing like the Real Estate boom, we still deal with multiple offers on a regular basis so please feel free to contact us with any questions or dilemmas.

The Axfords.

778-355-0116

I came across this graph on the Real Estate Average Sale Price in Greater Vancouver, thought our readers would find it interesting.  Click on the hyperlink below:

Average Residential Sale Price in Greater Vancouver Jan 1977- Mar 2011

News Release- Greater Vancouver Real Estate Board

"Home buyers and sellers enter the housing market at near record pace in March

VANCOUVER, B.C. – April 4, 2011 – Activity in the Greater Vancouver housing market continued to strengthen in March with both the number of homes sold and added to the region’s Multiple Listing Service® (MLS®) reaching near record levels.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 4,080 in March 2011. This represents a 31.7 per cent increase compared to the 3,097 sales recorded in February 2011, an increase of 30.1 per cent compared to the 3,137 sales in March 2010 and an 80.1 per cent increase from the 2,265 home sales in March 2009. The all-time sales record for March occurred in 2004 when 4,371 transactions were recorded.

“Our market has had a very strong start to the spring season,” Rosario Setticasi, REBGV president said. “With home sales above 4,000 and nearly 7,000 home listings added to the MLS® in March, it’s clear that home buyers and sellers view this as a good time to be active in their local housing market.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,797 in March 2011. This represents a 3 per cent decline compared to March 2010 when 7,004 properties were listed for sale on the MLS®, an all-time record for March. Compared to February 2011, last month’s new listings total registered a 19.4 per cent increase.

At, 13,110, the total number of residential property listings on the MLS® increased 9.9 per cent in March compared to last month and declined 3 per cent from this time last year.

“Conditions favour sellers at the moment, but we’re seeing differences in home-price trends and overall activity depending on the region and property type,” Setticasi said.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.4 per cent to $615,810 in March 2011 from $584,435 in March 2010.

Sales of detached properties on the MLS® in March 2011 reached 1,795, an increase of 34.4 per cent from the 1,336 detached sales recorded in March 2010, and a 100.1 per cent increase from the 897 units sold in March 2009. The benchmark price for detached properties increased 8.3 per cent from March 2010 to $866,806.

Sales of apartment properties reached 1,622 in March 2011, a 29.6 per cent increase compared to the 1,252 sales in March

2010, and an increase of 66.2 per cent compared to the 976 sales in March 2009. The benchmark price of an apartment property increased 2.1 per cent from March 2010 to $403,885.

Attached property sales in March 2011 totalled 663, a 20.8 per cent increase compared to the 549 sales in March 2010, and a 69.1 per cent increase from the 392 attached properties sold in March 2009. The benchmark price of an attached unit increased 3.6 per cent between March 2010 and 2011 to $511,039."

Craig Munn, Assistant Manager, Communications

Real Estate Board of Greater Vancouver

We have felt very little after shock from the 2008 recession here in Canada but we do notice a difference in the way we think about money.  People are less likely to mindlessly pull out their wallets for big and small items.  This is great because people are more likely to save for what they really need or want.  Which brings me to my point on first time buyers.  It seems as though we have lost a lot of steam from First time homebuyers in the past 12 months.  All the talk about the unstable market is enough to make a purchase of home make you sick, and even more so if this is going to be your first big asset! 

It so happens to be a good time for First Time buyers to get in the market because it’s a buyer’s market so you have more time to make decisions.  We just have to make triple sure for first time buyers they get it right the first time.  It takes a team for this to happen, it takes the time and energy of the buyers, a mortgage broker who fights for the best rate available to the market, and an experienced and knowledgeable Real Estate agent that can get you a home for market value or hopefully less. 

Make sure you have enough time to devote to home shopping, and while shopping for homes try and stick to you original list of wants and needs it is east to get emotionally attached to a home and get caught in the glam.  Scroll through our previous blog on home shopping http://www.theaxfords.com/Blog/A-Home-Shoppers-Must-Haves-and-Wish-Lists. 

Make sure you use a mortgage broker or bank that are dedicated to getting you the BEST rate possible.  Do note that banks may be able to get you a rate lower than the posted one you just have to ask, and try to find the inner barterer.  Also with the bank or mortgage broker go over your payment options and decide if you are most concerned about having low payments, or paying off the loan faster.  Another good thing to think about is your payment, you may be approved for a $400,000 mortgage, but the payments on a mortgage of $350,000 are closer to what you’re used to in rent.  Don’t strap yourself for cash if you don’t have to, make sure your payments aren’t too much so you can enjoy life too! 

Here is the big one, make sure you are using an agent that is dedicated and devoted to getting you into the market at a good price, and with great value.  Maybe you will be in the property for the rest of your life, but if you’re not you want to make sure that you can recover the price you paid for the property.  If your buying a condo, make sure your agent has dealt with condo sales in the past because they are more work and have more technical documents you may need help with.  You want to make sure your condo building is stable, with a stable management company to avoid large special assessments or problems in the future. 

If you want your first home, now is as good a time as any.  Buy now and have it paid off later!  But let’s all put our investor cap on for you, and make sure it is a solid purchase with great value. 

The Axfords.

Follow up to my Blog on Investing in Real Estate, I mentioned Real Estate is one of the most effective ways to retain wealth in our Country and guess what??  The number one reason not to own rental properties is people do not like the work involved with tenants and maintaining a second property they do not live in (which I don’t blame them!).  So I thought a good next blog would be; what do Property Managers do? 

 What are some things property managers do on an ongoing basis? 

Basically it’s like the famous Rotisserie infomercial “Set it, and forget it”.  Set up your information with your property Manager and forget about the property and let the manager deal with the stress. 

Here is the list of what we, and other property management companies do:

• Coordination of maintenance and repairs
• 24 x 7 emergency on-call service for tenants and owners
• Regular inspections
• Collection of rental payments
• Deposit of rental income
• Provide Monthly statements of income and expenses
• Consultation on all tenancy matters

What is there left for the property owner to do?  Not a whole lot!

What about worrying about finding a renter in the first place!  Well they do that too!  Many companies like ourselves deal with Real Estate sales and rentals so marketing is what we do best!  Here’s my list of what a Property Manager does to market the rental, and find suitable tenants, AND ensure the tenants follow the rules and respect your property:

• Photography of your rental
• Marketing and promotion
• Handling tenant inquires
• Scheduling private and open house showings
• Process rental applications
• Tenant screening
• Reference checks
• Signing of legal lease documents
• First walk through with the Tenant
• Conduct condition inspection report

Looking at the list now I see why many people shy away from investment properties, they sure is a ton of work that goes along with this type of investing.  But just as you would pay your stock broker, why not invest in Real Estate and pay a professional to manage your investment. 

The Axfords.

Why invest in Real Estate?

1. The bank purchases your investment for you, and your tenants pay it off!  Real Estate in the only investment that the banks will actually give you the money for the investment.  This eliminates a huge potion of risk that goes along with investing.  Compare investing $500,000 in the stock market to buying a $500,000 house.  The amount of research you need to do to make a stock market investment of that size is unbelievably large.  It can take months to years to decide on funds, ETF’s, stock, ect.  A real estate purchase is typically 0-5 months.  Now let’s think of the risk if you choose the wrong stock you loose all YOUR hard earned money, if you choose the wrong house and it falls apart an insurance company will pay you for your repairs. Try getting an insurance company to back up your stock choices!   If you choose the wrong house and you want to sell you may be selling at a loss if you have only owned the property for a short period of time.  Selling at a real estate loss in Canada may mean 2-5 % (of the money you never had to forfeit in the first place), which truly means peanuts in the stock market industry. 
2. Capital Gains Tax.  If your property appreciates in value and you decide to sell this tax is the only one of it’s kind where you pay only 50% tax of what you actually made.  So if you made $50,000, you will add only $25,000 to your personal net income.  If only we could do that for our income tax!
3. Appreciation.  Over time the value of the property will go up, and your investment will appreciate.  The only million-dollar question is over how much time?
4. Rent increases with inflation.  As inflation rises and your house value goes up, the rent you charge your tenants will also rise with inflation. 
5. Amortization of the loan.  This is the big one!  Remember that money that’s not yours but the bank gave you?  Well every month this loaned money becomes smaller and smaller.  Every month your tenants will give you money to pay down the bank loan.  This type of passive income is a quiet settle way to work your way towards wealth.