Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning real estate:

1. Real estate diversifies your income

“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”

The article highlights how having multiple sources of income, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement.

2. Real estate produces near-immediate results

“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”

Currently, home prices are appreciating in all price ranges, and last month, Royal LePage Corporate announced that their outlook for Canada’s housing sector is for continued market expansion. With that in mind, real estate today is definitely driving immediate results!

3. Passive income can help you become financially independent sooner

“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.

While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”

Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence.

Bottom Line

If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, contact a local real estate professional to guide you through the process.

Who is Brent Sutherland?

Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.

If you’re searching for a home online, you’re not alone; lots of people are doing it. The question is, are you using all of your available resources, and are you using them wisely? Here’s why the Internet is a great place to start the home-buying process, and the truth on why it should never be your only go-to resource when it comes to making such an important decision.

According to the National Association of Realtors (NAR), the three most popular information sources home buyers use in the home search are:

• Online website (93%)
• Real estate agent (86%)
• Mobile/tablet website or app (73%)

Clearly, you’re not alone if you’re starting your search online; 93% of home buyers are right there with you. The even better news: 86% of buyers are also getting their information from a real estate agent at the same time.

Here are 3 top reasons why using a real estate professional in addition to a digital search is key:

1. There’s More to Real Estate Than Finding a Home Online. It’s a lonely and complicated trek around the web if you don’t have a real estate professional to also help you through the many steps you’ll face as you navigate through a real estate transaction. That’s a pretty staggering number! Determining your price, submitting an offer, and successful negotiation are just a few of these key steps in the sequence. You’ll definitely want someone who has been there before to help you through it.

2. You Need a Skilled Negotiator. In today’s market, hiring a talented negotiator could save you thousands, maybe even tens of thousands of dollars. From the original offer to the appraisal and the inspection, many of the intricate steps can get complicated and confusing. You need someone who can keep the deal together until it closes.

3. It Is Crucial to Make a Competitive and Compelling Offer. There is so much information out there in the news and on the Internet about home sales, prices, and mortgage rates. How do you know what’s specifically going on in your area? How do you know what to offer on your dream home without paying too much or offending the seller with a lowball offer?

Dave Ramsey, a financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring a real estate professional who has his or her finger on the pulse of the market will make your buying experience an informed and educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom Line

If you’re ready to start your search online, don’t skip over the support of an educated and informed real estate professional. You’ll want someone at your side who can answer your questions and guide you through a process that can be complex and confusing if you go at it with the Internet alone.

As a seller, your #1 goal is to sell your home in a timely fashion, at the best possible listing price.  In today's market, where there is much more competition, it is important to put your best foot, or in this case, home forward because first impressions are critical.

Many of today's prospective homebuyers have busy lifestyles and are looking for properties that don't require a lot of work.  Therefore, a home in move-in condition is much more attractive.  Before placing your home on the market, you may want to invest in making needed repairs, and preparing (not necessarily 'staging') your home for sale.

Did you know ?

•ALMOST A THIRD (28%) OF BUYERS ARE MORE WILLING TO ‘OVERLOOK PROPERTY FAULTS’ WHEN A HOME IS STAGED

•Staging can save you from a costly price reduction

•A staged home will sell for 17% more on average than a non-staged home, and 95% of staged homes sell 87% faster than non-staged homes

•EVERY ONE OF OUR SELLERS RECEIVES A FREE CONSULTATION WITH A QUALIFIED DESIGNER TO HELP THEM PREPARE THEIR HOME TO ITS BEST ADVANTAGE

•With our complimentary designer’s service, you will receive a written plan that outlines typically a small investment of time and money, and the results will have huge payoff for you!

To get started yourself, inspect both the inside and outside of the home.  Take inventory of practical and aesthetic repairs.  You may want to apply a fresh coat of paint on the walls, doors, and shutters.  Clean the carpet and buff and polish wooden floors.  Tighten and polish hardware.  Repair cracks in sidewalks and driveways and clean any stains on them.  Replace missing or warped roofing.  Clean or re-grout kitchen and bathrooms.  Repair dripping faucets and drains or plumbing fixtures that aren't operating.

Fix sticking doors and replace old locks and doorknobs.  Replace old bulbs and broken electrical sockets.  Replace cracked windows and torn screens.  Repair broken fencing and reseal the deck.  Clean up stains on tiles and countertops.

Some experts also recommend hiring a certified home inspector to thoroughly and impartially evaluate the property.  (For a list of inspectors in your area, visit the Canadian Association of Home Inspectors website, www.cahpi. bc.ca, or click here).  A standard report will review the condition of the home's heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceiling, floors, windows and doors, the foundation, basement and visible structure.  

If there are recommendations for improvement, consult with your real estate professional in prioritizing the list of repairs.

Depending on your goals and budget, you may want to repair only items that could cause significant deterioration to the home, such as a leak.  In addition, your local market conditions may dictate how extensive your repairs need to be.  Let your budget and your real estate professional guide you.

However, be careful about major items.  Sellers rarely recoup money on major remodeling projects, and you may want to save funds for your new home.

A home in good condition demonstrates pride of ownership.  Taking the time to make small repairs to your home can go a long way in making sure your home is presented to potential buyers in its best possible light.  They also just might make the sale.

2019 marks our 8th year participating in the Ride to Conquer Cancer!  As proud members of Team Finn, we will be Crew Support for our 50 teammates on August 24 as they begin a challenging 2 day journey to Hope. 
 
Nothing, however, compares to the challenge of a family facing cancer. We know we are not alone in the experience and heartbreak of cancer as it affects our families, friends, colleagues & clients - and have been very motivated to support the cause since our first ride in 2012.  Through our association with Team Finn, we really see your dollars at work and making a tangible difference in the lives of children, their families, and others with cancer – here in BC, across Canada and around the world.
 
Thank you so much in advance for your contribution - every little bit helps!  We promise your dollars will go to work and be a tremendous gift to so many people who are living with Cancer.
Jasmine & Grant Botto

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

According to Royal LePage's President & CEO, Phil Soper, "Some of the most desirable regions in Greater Vancouver are seeing home price declines. Properties in the region’s higher-end markets like West Vancouver, North Vancouver, Burnaby, and the City of Vancouver are all declining in price offering buyers seeking luxury housing a rare window of opportunity to enter some of Canada’s highest priced markets"

A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.

While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a higher priced, premium or luxury home, now is the time!

Typically, Strata Corporation insurance policies “insure against all risks of direct physical loss or damage

to the property insured”. This is subject to exclusions and deductibles.

The insured property is the building as handed over by the developer once construction has completed, and includes the building, permanently installed original fittings and fixtures, mechanical equipment, fire system and common assets.

What Doesn’t the Strata Insurance Cover?

 Contents: The Strata Corporation’s Insurance does not cover your personal belongings in the

event of a loss, regardless of the cause. All Owners and Tenants must therefore have their own

Personal Insurance Policy for their personal belongings (“Contents”) such as furniture, clothing,

electronics, etc. Further, in the event there is damage to your unit, your contents may need to be

removed during the repair. The Strata Corporation’s Insurance does not cover the move out or

storage costs – this is covered under the Contents provision of your Personal Insurance Policy.

 Additional Living Expenses:

You may need alternate accommodation during repairs to your unit,

such as a hotel or rental unit. In the event of a significant loss, your unit could be uninhabitable

for one year or greater. “Additional Living Expenses” are included in a Personal Insurance Policy

to cover these out of pocket expenses.

 Unit Upgrades:

The Strata Corporation’s Insurance does not cover unit upgrades, whether made

by yourself or a previous unit owner. It is therefore imperative you insure any unit upgrades under your Personal Insurance Policy (sometimes known as “Unit Improvements and Betterments”).

Examples of upgrades could include: hardwood or laminate flooring and upgraded appliances.

 Loss Assessment:

In the event of a Strata Corporation claim resulting from your unit, you will likely

be assessed the Strata Corporation’s Deductible. Please review the Notice of Annual General Meeting to obtain a copy of the Strata Corporation’s insurance policy (“Summary of Coverages”). You must ensure your Personal Insurance Policy will cover an amount equal to the Strata Corporation’s Water Damage Deductible. This is extremely important as a Strata’s Water Damage Deductible is often $10,000.00 and greater.

 Unit Additional Protection:

One component of this extension under a Personal Insurance Policy

is to provide coverage in the event the Strata Corporation’s Insurance is not effective. This is very

important as there could be damage to your unit which does not exceed the strata corporation’s

policy deductible, and therefore does not trigger the strata corporation’s policy.  You'd be best to ensure

your Personal Insurance Policy includes coverage for in-suite damages that are under the Strata

Corporation’s Deductible for which you are responsible.

 Earthquake:

Given the exposure to the lower mainland it is generally recommended that  you ensure your Personal Insurance Policy includes coverage for the peril of Earthquake. Some Insurers may offer a specified

limit for Earthquake Deductible Coverage, for your unit’s assessed portion of the Strata Corporation’s Earthquake Deductible. 

 Other-Repairs and Maintenance Within A Strata Lot:

Owners must make sure that they keep everything within their strata lot in good working order and in good condition to prevent a water escape etc. This includes but is not restricted to dishwashers, washers, refrigerators with ice makers, garburators, toilets, sinks, bathtubs, water filters, hot water tanks and any copper pipes or taps and fixtures located within the strata lot, or from any alterations done by the Owner or previous owner to the strata lot etc. Owners should make sure cold and hot water shut off valves work properly and know the location of the valves, and how to operate them.  Owners may wish to consider employing a professional contractor to carry out regular inspections and maintenance of these in suite items.

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but may instead have multiple buyers fighting with each other over the house.

HGTV gives this advice:

“First impressions are everything when selling your home. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers.

If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf — in a positive way.”

2. Use a Real Estate Professional

Some sellers may believe that he or she will make more money without having to pay a real estate commission, but studies have shown that homes typically sell for more money when handled by a real estate professional.

Research by the National Association of Realtors (USA)  in their 2018 Profile of Home Buyers and Sellers revealed that, “the median selling price for all FSBO homes was $200,000 last year. However, homes that were sold with the assistance of an agent had a median selling price of $264,900 – nearly $65,000 more for the typical home sale.”  This translates to the Canadian Market as well.  

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the money you get for your house.  

Whether buying or selling, you’re involved in an intricate process requiring many specialists. One of these specialists might be a REALTOR®, who’s responsible for and comitted to making the transaction as easy as possible for you!

Here We Go Again -

By now you should have received your 2019 Assessment Notice.

Here are the things to know about your assessment -

Your Assessment is BCA's estimate of your property’s value as of July 1, 2018, and for new construction or substantially renovated homes, the physical condition as of October 31, 2018.

BCA’s assessment and a REALTOR’S® assessment. Why the difference?

Both BCA assessors and Realtors calculate market value by analyzing sales of comparable homes within a local market, and look at factors that affect value such as size of home, view, location such as on a busy or quiet street, number of bedrooms, construction quality, floor level, and garage or parking stalls.

The main difference is the time the assessment is made.  BC Assessment's value is as of July 1 of the preceding year.  So, their valuation could be vastly different from current market value.

For property tax purposes only

Property taxation is determined by local and provincial taxing authorities after determining their budget needs and calculating property tax rates based on the assessment roll for their jurisdiction, and BC Assessment is the most equitable way of allocating taxes across the over 2 Million properties in the BCA Database.

When you view your assessment

Property owners can look up their assessment details on BCA's e-valueBC website.

If property details are incorrect, property owners are directed to complete and submit an e-valueBC Data Validation Form.

Deadline to appeal assessment is January 31, 2019

Disagree with your assessment?   Do some homework first! 

• Compare your assessment with neighbouring properties;
• Contact BCA at 1-866-valueBC (1-866-825-8322) and talk to staff who can make adjustments if there's an obvious error, for example if BCA included a complete renovation when there was merely a spruce-up.
• Review information on the Property Assessment Appeal Board website on how to prepare for an appeal and then complete a Notice of Complaint (Appeal) Form. (Step 7)
• And, you can always call us for an up to date market evaluation of your home !  We are here to help.  604-984-7253