Beautifully Updated Top Floor Unit!

You’re not going to want to miss this beautifully updated top floor unit! The gourmet kitchen was completely redone in 2017, filled with high-end appliances and upgrades. The open floor plan makes for a bright space, perfect for entertaining, and the large pantry and closet space offers lots of storage. The large master bedroom has an ensuite and with an added solarium space perfect for a home office. Conveniently located at Main St. and 41 Ave it’s a short walk to Oakridge shopping, Queen Elizabeth Park, and Transit right outside your door. Call today to book your appointment. Sneak Peak Open House Thursday Oct.5th 5-6pm and Saturday Oct.7th 12-2pm.

 

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New Property Transfer tax, can cost foreign buyers an additional 15% on the purchase of a home in Vancouver

Effective August 2, 2016, an additional property transfer tax applies to residential property transfers to foreign entities in the Greater Vancouver Regional District.trasfer tax

The additional tax applies on all applicable transfers registered with the Land Title Office on or after August 2, 2016, regardless of when the contract of purchase and sale was entered into.

The Greater Vancouver Regional District includes Anmore, Belcarra, Bowen Island, Burnaby, Coquitlam, Delta, Langley City and Township, Lion’s Bay, Maple Ridge, New Westminster, North Vancouver City and District, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, Surrey, Vancouver, West Vancouver, White Rock and Electoral Area A.

The additional tax does not apply to properties located on Tsawwassen First Nation lands.

 

Who this effects:

-Foreign corporations or taxable trustees

– Foreign nationals are transferees who are not Canadian citizens or permanent residents, including stateless persons.

It also included Foreign corporations:

– Not incorporated in Canada

– Incorporated in Canada, but controlled in whole or in part by a foreign national or other foreign corporation, unless the shares of the corporation are listed on a Canadian stock exchange

-Taxable trustees that are a foreign national or foreign corporation, or a beneficiary of a trust that is a foreign national or foreign corporation.

When does it apply?

The additional tax on property transfers to foreign entities is 15% of the fair market value of the foreign entity’s share of a residential property

This tax applies in addition to the general property transfer tax.

The additional tax does not apply to non-residential property. The value of the residential portion of a transfer is calculated in the same way as for the property transfer tax.

The additional tax does not apply to trusts that are mutual fund trusts, real estate investment trusts or specified investment flow-through trusts.

The additional tax must be paid with the general property transfer tax at the time the property transfer is registered with the Land Title Office.

Municipalities are also perusing the thought of vacant home tax so stay tuned there may it more to come!

Buying a Grow-Op in Vancouver, Still an issue?

The biggest issue with homes that used to be Maharajah Grow Operations would be your financing. Banks are less likely to finance a former grow op home because of the grow opunknown factors that the grow op could have caused to the home and the stigma behind them. Often there are holes cut into floor joists and ceilings, and they tamper with the wiring of the home which can cause a high risk for fires. Moisture caused by the growing of the plants is another issue the banks have with the homes, no matter how much the home has been repaired, or remodeled mold can still be present and pop up whenever conditions are right. Even with remediation of the home it still will also carry the grow op title, thus causing resale on a grow op homes to be significantly lower and much harder of a sell. Banks today are very conservative and stingy with funds regardless of an issue like a grow op so when you add that extra complication into a deal they are often unwilling to give the buyers financing.

With people trying to think of “outside the box” ways to get into the housing market in Vancouver, it is buyer beware when purchasing a former grow op home. If you dot your I’s and cross your T’s it could be the right option for you.

Vancouver Real Estate Numbers are Being Manipulated by the Liberal Government

I think it’s pretty clear to see that Mike de Jong and the Liberals are “Gerrymandering” or foregin buyersmanipulating the numbers to suite their agenda and get a good head line.  Since when was 3 weeks in the month a good measurement of time. June 10-29th clearly is cutting out the most active period of time that Vancouver Real Estate transactions happen (the beginning and end of the month.) Oh and by the way, the BC Land Titles Office is closed on weekends so Saturday’s and Sunday’s don’t count for evaluating when transactions are recorded so by starting on the 10th (a Friday) it makes the sample size of days look bigger but they really just padded their timeline. As well, why only look at June when March, April and May are much stronger months for sales?  The government has the data why not give a larger sample? This is very hollow attempt to look at numbers and I think it’s pretty plain to see the Liberals are doing everything but look at the Elephant in the room when it comes to Vancouver Buyers and the Foreign Investor. They are trying to say that Foreign Buyers are only 3% of the market when it’s really more like 10% or possibly even more according to the recent Business in Vancouver article. Mike de Jong and the Liberals are controlling the message due to conflicts of interest like Bob Rennie being the campaign fund raiser for the Liberal party and it is wrong.

Purchase Plus Improvements: Don’t buy your dream home! Create it!

Lego HouseDo you want to get your dream home without having to fight other buyers in a bidding war? Want to get a deal? Want to create value? Do you want a nice home but it seems just out of your reach? Do you find that places just aren’t…right? Do you ever say this would be so much better if…?

What if you found out you could make those changes and create your ideal space?

With the new mortgage rules decreasing amortizations, many buyers need a larger down payment. So then they have less or no funds available to be creative with when it comes to making that nice newly purchased home revitalized so it feels like their “own” home.

With interest rates at all time lows, look at the options of older, beat up, tired properties that no one else wants to update, and turn it into a modern comfortable home for you and your family. If you are willing to put in the time renovating an older home, using a Purchase Plus Improvements mortgage you may be able to not only get a good deal but create the space you want! There are a few different ways to do this. The basic idea is the bank will lend you the majority of your mortgage upfront and hold back a portion of the funds to cover the extra costs of your improvements.

This type of mortgage used for a property purchase does require the buyer to take a few extra steps. You will need appraisals both before and after the renovation. As well, a third party contractor’s quote (on the cost of the work before you go ahead with the project) will likely be required. This means you are going to want to have some good professionals on your side that understand this process and will work with you to achieve your goal.

Let’s work through an example:

Let’s say you buy the home that really needs updating…so you get a great deal because it has a Sunflower Yellow bathtub and toilet, with Avocado Green appliances in the kitchen and shag carpet that looks like it is ready to get up and walk away. Because of the distressed or dated nature of the property, you make a great deal and purchase it for let’s say $800,000. With your contractor and appraiser, you determine after renovations are completed, the home would be worth $860,000. So the bank agrees to funds for the future value of the home, using a purchase plus improvement mortgage allowing you to purchase the home first, with additional money set aside to then cover the costs of renovations. What the bank basically does is provides the regular funds to purchase the home at $800,000 (as they would for any normal transaction) and then allow an extra $60,000 to be held in a lawyers’ trust account to pay for the renovations. As part of this process, the updating must be verified by an appraiser, or via receipts, once all of the renovations are complete.

This type of strategy is done slightly differently by each lender but is a very real option for people in today’s market. It does take some extra work or sweat equity with good planning but it will allow you to take advantage of low interest rates when most of your money is going into your down payment. Use bank financing to your advantage and create a space you truly can call your own.