Real Estate Information

These towns in British Columbia currently have or are currently getting the fundamentals in place for future growth of their communities.

1. Surrey has the top spot being called BC’s top investment town. Based on its rapid growth, high renter population and easy access to transportation corridors.
2.  Maple Ridge/Pitt Meadows has the second spot. It is predicted to be “the place to live for lifestyle” once TransLink and Gateway infrastructure projects are finished.
3.  Abbotsford in third place with its swift growth rate, diversity and transportation links.

 "When you are investing in these towns you are investing in their future and their growth"    anonymous

Passive Income from Real Estate Investments:

 Much of the income you receive from investing in Real Estate comes from Passive Income, and this type of income sometimes is the hardest to appreciate.  It’s hard to appreciate because is not a dividend cheque that you get to deposit each month, or you can’t watch you investment go up in value (this is just the bonus in Real Estate), but it’s comes from your debt being lowered every month without fail.  And for those of you choosing to have rental property, you get the help of tenants to help pay off these debt loads every month.  Let’s calculate some numbers:

Based on a $300,000 mortgage with a 4.39% amortized for 25 yrs, your payments will be $1,642.00 per month.  In 5 years you will pay off $37,079.  Breaking that down into months you will pay down your mortgage “in theory” $618 per month.

 In your financial future you will be using this passive income for one of two things; first you could be using this advantage paying off your own mortgage so that by the time you retire you will have a fully paid off home freeing up your retirement income, second you could be paying off a investment residence in order to be actively growing assets.  If you are realizing the second option here are some helpful hints to think of when buying a property:

-Find a property you will be able to get to receive a high rental income to cover most of the expenses.  Many of our clients find they need to subsidize their rental property a couple hundred per month.  However if you can find a rental property that you will need to contribute $200 per month, always remember you will be passively making $618 per month on every $300,000. 

-Find a property in a highly desirable area for renters.  Try checking census Canada for the high rental areas in your neighbourhood.    

 During these times of economic uncertainty Passive Income is a great way to count on income, because it comes without fail as long as you continue to pay your mortgage every month. 

 For more info on Investing in Real Estate, please contact us with any questions,

 The Axfords

Prudential Sterling Realty

778-355-0116

What moving into SuterBrook Village means to us:

We have officially moved our office and we are very proud to be the residents of unit 13-201 Morrissey Road, in Suterbrook, Port Moody.  Like all moves residential and commercial it was way more work than anticipated, way more truck loads of stuff, and we still have small touches to do (such as a mirror in the bathroom so please tell us after lunch if we have food in our teeth!). 

Now that we are here we are quickly starting to feel like a part of the community.  We are enjoying being part of such a developing, radiant community.  Watching from our window we see people skip roping, and tossing medicine balls as training for the gym.  Occasionally we even see street hockey in the parking lot!   People pass along with their dogs, and their kids going for a walk.  People lounge at Starbucks, enjoy friends and Families Company over lunch.  It is such an active community it is so easy to be motivated to be active ourselves. 

We have been welcomed by many of our fellow commercial tenants, and we have had many people living in the Suterbrook community stop by to see what we are all about and welcome us to the community. 

Having worked in the area for many years and having been proud to see many of our clients buy into the new developments we are happy to call this office home to The Axfords, Prudential Sterling Realty, Property Sales and Rentals. 

We love visitors so please drop by,

The Axfords,

Prudential Sterling Realty

778-355-0116

There are different factors that play a part at these averages but just for fun facts here are the Average Sale prices per sq foot in the Coquitlam Area.

Average Sale Price per Square Ft:

Area                                     $Price per sq ft.

• Free Mortgage Advice and Consultation
• Buying Process (from beginning to move-in)
• Buying and Selling Costs
• Investment Strategies/ Home Equity Financing

So we understand the new mortgage rules, but how will it affect the market?

Well first let’s start out with the numbers.  The monthly payment on a 30-year amortization vs. a 35-year mortgage is $34.72 higher for every $100,000 of mortgage (assuming 4% interest rate). So far that does not seem like a big jump, considering as mentioned in a previous blog cutting down the 5 years will save you thousands upon thousands of dollars!!  Meaning we go into our retirement with just a little more in our pockets. 

However we will loose some buyers none the less, we will loose first time buyers that were just stretching their limits in order to buy a home, we will loose the buyers that would of only been approved on a variable mortgage (as you are required now to be approved based on the fixed term).  Is this a good thing?  YES!  Working in a family orientated, and ambitious area we don’t want to see hard working people stretch their limits.  If it means a couple more years of saving, then that’s okay.  Delayed Gratification sometimes is so much more amazing!!

We don’t expect our activity to change much, as we already saw a big change in buyer’s attitude.  We saw them choose the 30 yr mortgage before it was required, we saw more buyers saving up more for their down payments.  Because people want to be smarter with their debt already, and so far Canada as prevailed through this recession. 

Any questions or comments feel free to contact us,

The Axfords.

Prudential Sterling Realty

604-931-8152

We loved this entry in David Allison’s book “Sell the Truth” it discusses the realities of buying a home mental, physical, emotional, and spiritual. 

This is one of the best articles we have read to put it into perspective for buyers!

An absolute MUST READ for buyers! 

You can read the full article at

http://www.braunallison.com/downloads/sellthetruth.pdf

Category 1 – The Mental Truth

• Is this home good value for money? Can I afford it?
• What financing arrangements are available?
• Do I qualify?
• What are the taxes and will they likely go up?
• What are the bylaws, and what does all this legal jargon in the offering mean?
• In plain English, tell me about the guarantee.
• What are other comparable resale examples for the neighbourhood?
• What are population trends and census data pointing to?
• Does the government department responsible for housing and mortgages have any information I should be aware of?
• Are there issues with any of the utilities or services I should know about?
• How much do the utilities cost?

Category 2 – The Physical Truth

• Will my furniture fit in the floor plan?
• Will I have to renovate? Do you know someone who can help me?
• Do doors open into each other?
• Are light switches in logical places?
• Is the baseboard heater on the only wall where a couch can fit?
• Is the dishwasher quiet?
• Are the bedrooms separated for privacy?
• Where does the garbage go?
• Can I walk to the coffee shop and grocery store?
• Is there lighting over the mantle to show off my prized painting?
• Where will I do the ironing?
• There should be a linen closet.
• Is there a park nearby?
• Are there schools nearby and are they any good?
• Where will my dog run off-leash?
• Where do I store my bike/kayak/skis/Windsurfing board?

Category 3 – The Emotional Truth

• Is there sunshine?
• Will living here make me feel great about my life?
• Who will I meet? (Will they like me? Will I like them?)
• Will I get to know the local shopkeepers?
• Will this be a community that I can be part of?
• Who lives nearby?
• Is the neighbourhood safe for me? For my kids?
• What will my kids do for fun?
• What are the other kids like?
• Will I be comfortable here?
• Does it rain too much? Does it rain enough?
• Will this place make my life easier?
• Will my friends be happy for me? Will they be jealous?
• Will my parents think I did the right thing?

 Category 4 – The Spiritual Truth

• Will owning this home make my life better?
• Will I be content?
• Will I feel like I have done the right thing?
• How will I know?
• Does this home match my view of myself and my place in the world?
• Do I belong here?
• Can I see myself living here for a long time?
• Will this place make me feel better about myself and my life?

-David Allison, “Selling the Truth”.

Terminology:

Assumable Mortgage:  A mortgage that can be transferred from the seller of a given property to its buyer with no change in terms provided the lender agrees and the buyer meets certain criteria.  An assumable mortgage can make a property more attractive if interest rates have risen, as the buyer’s payments will be at the original rate.  Assuming a mortgage can be quicker than securing a new one, but buyers may be charged an assumption fee. 

Our Axford Note:

Maybe this is a good option to consider as we have been warned about the interest rates going up, and if they do and you are selling your home it may be a big incentive for buyers to buy into a home with a low mortgage rate! 

Any questions or comments please feel free to contact us!

The Axfords

604-931-8152

info@theaxfords.com

The Three new Mortgage rules in Canada

Finance Minister Jim Flaherty announced new terms for mortgages; he is working to keep Canada’s real estate market stable.  We like how proactive Mr. Flaherty is being for Canada, we have stayed strong throughout the recession and real estate as a whole has remained stable.

Briefly here are the new rules:

1.The maximum years you can amortize a mortgage will now be 30 years (previously being 35 years)

• The reason behind this is to reduce overall payments over the term of a mortgage promoting savings among Canadian families.  Also the Finance minister would like to see homes being paid off before retirement.

2. The maximum you can refinance your home will now be 85% of its value (previously being 90%)

• This is to promote again savings reducing your debt payments, as well as keeping equity in your home.

3.  The government will no longer insure or back any home equity line of credit.  This will be solely the responsibility of the lender so taxpayers will not be held responsible for consumer debt. 

• As a line of credit is classified as consumer debt as it was not used to purchase the home the Minister feels it should not be a burden of the tax payers, this again promotes saving and relives Canada of responsibility for over consumption. 

First hand we saw Canada bounce back after the recession with little effort and we are proud to be selling real estate in such a stable country.  Any questions or comments about the new mortgage rules, or real estate in general we would be pleased to hear from you,

The Axfords

Prudential Sterling Realty

604-931-8152

Don't forget to visit us after 4:00 this afternoon for a wonderful kick-off to the Christmas season

The Axfords

 13-201 Morrissey Road
Suterbrook Place
Port Moody