Rob Smashnuk

Whether you’re buying your first home or seeking to upgrade or downsize, there are a number of factors to consider before you fork over your hard earned money.  

1.Time can be your friend
Hopefully when you’re looking for your home, you’re not in a big rush to make a move.  Time spent determining exactly what you want out of your space will help you end up with the perfect residence in the end.  A rushed purchase might mean you overlook crucial aspects and regret your decision.  Make a list of your needs and then your wants so that you know just what homes fit the bill and which you can immediately cross off your list.

2.Your housing needs
Is your family growing or are you new empty nesters?  Do you often host family and friends for overnight visits or are you most often alone?  Be realistic about your home size needs; there’s no point in owning unused space that collects dust, but it’s just as frustrating to be scrambling to find extra space when you need it.  If you’re a great cook, make sure to check out the kitchen space; if you work from home, is there an ideal office space to tuck away into?  You’ll also want to look at bathrooms (how many are there?), storage space, and whether or not the basement is finished.

3.Old or new
If you love doing renovations and can afford the time and money, go ahead and buy that “handyman special”.  Otherwise, look for something that needs very little repair or renovations other than a coat of paint to make it yours.  Solid bones are the most important feature in any home. We can sometimes get wrapped up in the romantic idea of renovations, but often they cause many headaches and grief unless you’re prepared and know what to expect.  

4.The yard
The yard can be just as important as the house itself.  Is the yard a pleasant space where you’ll want to spend time?  Which direction does it face?  (Will you get enough sunshine?)  Is it fenced and are there spaces for your hobbies, whether you play outside with the kids or want to putter through flower or veggie beds?  What’s the noise level like when you’re standing in the yard?  Does the front yard have curb appeal?  How much work will it take to keep the yard maintained?

5.The neighborhood
Before you sign the dotted line, chat with a few neighbors in your area of choice.  Your real estate agent probably has some information about how many homes are owner occupied or if the area has more retirees than young families, but your neighbors are an even better source of information.  Ask them about noise levels, who in the neighborhood has caused issues, and crime rates.  Most people will be more than happy to offer information.

6.Go with your gut
Often walking through the front door is all the sign we need as to whether or not the house is a good fit.  Get a feel for the space and trust your instincts!

Real Estate Professional Rob Smashnuk

The housing prices in and around Vancouver have surpassed expected peaks and many are not sure if there is a ceiling in sight.  The cost of an average detached home within the Vancouver city limits has reached over $1.5 million – the highest that the area has ever seen to date.  On average, homes in the Greater Vancouver Area have reached numbers close to a million dollars.  The number of properties sold in the area (as of February) rose, and the price of an average home is constantly rising unpredictably in sharp spikes. Mayor Gregor Robertson has shown great concern over the housing situation and has committed time and energy to a federal and provincial team who are working hard to discover exactly which factors are the causes of the consistently rising real estate prices.  

In an attempt to hold off the ever-increasing rise in housing prices, Vancouver recently imposed a 15% land transfer tax on foreign buyers as well as a more difficult qualification process for all buyers. These tougher qualifications have been brought into play to ensure that potential homeowners can manage their mortgage payments should interest rates go up.   The Canada Revenue Agency is auditing tax forms in the hopes of limiting foreign buyers by making sure that those claiming the principal residence tax exemption are, in fact, living in the residence and not using the home as a rental property or 2nd home.   

The outlook for most experts shows a continued rise in Vancouver’s housing prices, and the rapid rate is also expected to stay consistent.  With a limited number of homes on the market and available to hopeful buyers, the competition is fierce.  Combine that with low interest rates that the population has enjoyed and a steady stream of immigration, and you have a case of demand far exceeding the supply.  The situation could be helped by an increase in available homes for sale or with a surge in new home development; something which has been slow.  A significant increase in new home development is not guaranteed this year, and there is an increasing popularity for the suggestion that rules and regulations be eased so that new development becomes lucrative again for builders.  This may be a more important factor over attempting to restrict any purchases by foreign buyers.  Reconsidering land-use designations to allow several different varieties of types of homes, and smoothing the development approvals and permit processes would alleviate the restrictions that builders often face.

The dream of home ownership will vanish for many in light of the inflated prices on even the most average sized homes.  Families see their adult children staying longer in the family home and couples starting their lives together will most often be renting their accommodations and perhaps holding off for years in the hopes of being able to someday afford even a small starter home.  Only time will tell what the future holds for Vancouver’s rising housing market.