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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Tasteful Townhouse that you’re going to want to see!

002The Madison is one of South Surreys finest buildings, this classy home features an open floor plan and private entrance. The California Closets and extra storage along with the outdoor patio and garden area extend your living space for a house like feeling. Centrally located, this convenient location is directly across from a park, walking distance to White Rock, Semiahmoo mall & transit. The chef in the family will appreciate the gas cook top and spacious kitchen. This building has great amenities with a fabulous community feel makes this unit the perfect place to live. Call today for an appointment or come and see us at our Sneak Peek Open House Thursday 5-6pm or Open Sunday 2-4pm.

Find out more at: http://www.vancouverpropertyfinder.com/listing/cms/1787-154/

 

JUST LISTED!! Yaletown Style at a Fraction of the Price!

11-4178 Dawson St.

$588,000

This unique, newly updated loft is in a private setting and has it all. The 17 foot floor to ceiling windows, creates a bright, open space. Shopping at Brentwood is just around the corner and the Skytrain is a stone’s throw away. This convenient location make life easy to get around town and has everything you need. This classy building has a great set of amenities include: clubhouse, exercise room, hot tub/sauna, steam room, and more. Yaletown style at a fraction of the price.Open House Thursday 5-6 and Sunday 1-3pm. Call Today! 259617022

Beautiful Home Steps from Trout Lake Park

This beautiful and comfortable home situated on a large lot, offers an expansive backyard for the kids to play in. The reno’ed gourmet kitchen with open floor plan opens onto the large west facing deck with views of Trout Lake park. The reno’ed bathroom is bright and the refinished hardwood floors and warm wood burning fireplace are great features not to be missed. With ample storage and the large unfinished basement there are lots of options for kids to play or possibly a suite. Centrally located, this convenient home is steps away from Trout Lake Community Centre and walking distance to 3 Skytrain Stations. This home makes for a perfect balance of relaxed park living while being close to amenities. Open Wed. 5-6 and 3221_Garden_Drive-21642-001 (2)Sun 2-4pm.

 

Completely Renovated Stunner!

This classy home has brand new stainless steel appliances, in a gourmet kitchen. This well run complex, is very friendly and welcoming. The convenient location has Stony Creek school across the street, Burnaby Mountain around the corner and SFU up the hill, not to mention the Sky Train and Lougheed Shopping Centre are close by making life easy. Pets are welcome and rentals are not capped but do require a min 6 month lease. Wake up to a quiet, serene setting with trails on Burnaby Mountain close by. Sneak Peek Open House, Thursday 5-6pm and Open Sunday 1-3pm or call for an appointment.

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The Perfect Starter Home! 301-9132 Capella Dr.

This bright top floor unit has is the perfect starter home. Complete with generous sized rooms and balcony. The large laundry room offers lots of storage, and open living room and the kitchen is perfect for entertaining. Amenities include a clubhouse and outdoor swimming pool. Very well managed complex. Close to SFU, schools, Lougheed Mall and Skytrain! Pet-friendly strata with no size restrictions for dogs, and with a greenbelt across the street there are plenty of good walking trails. This is a very warm and friendly community that is welcoming to all. Sneak Peek open Thurs. Mar. 30th 5-6pm. Open Sunday 2-4pm. Call for an appointment today!

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Vancouver Real Estate and the Episode of the 15% Foreign Buyers Tax

Many of our Team Andruff clients want to know what the impact of the 15% Foreign Buyers Tax will be. One month in we are on a quest to find an appropriate answer. We listen to economists, review similar instances and rely on our experience to guide our clients and here is what we see so far:

Blog at a glance:

  • Markets were cooling before the tax was instituted.
  • We have seen a similar scenario with the transition from GST/HST – the market will adjust and rebound.
  • Higher end homes (one-million-dollars-plus) will be slowed down – Resale condo market still robust.
  • The fundamentals of supply have not changed while demand is on the sidelines in some cases but not in others.
  • BC Government was politically motivated to make this move but foreign buyers will have ways around the 15% tax and this may push affordability problems to other markets.
  • A strong Greater Vancouver and BC Economy with continued in-migration will still make Vancouver’s affordability a challenge over the long run.

 

The Rest of the Story

On an anecdotal note, leading up to summer, there was a sense of a turn in the market. The market was taking a more “traditional approach” or what would have been a more typical response to a hard press in pricing than what we had seen in the last few years of accelerated prices. There was some seasonality to the market where people took a step back and simply enjoyed their summer (which a few years ago was normal).

The Senior Economist with Central 1 Credit Union, Bryan Yu, indicated the tax will put further downward pressure on a market that already had a slowing, after a very strong spring. He further prognosticated the new tax on foreign buyers will cause a substantial but temporary 10 per cent drop in Metro Vancouver sales that will extend into 2017.

This is not unlike the transition from the GST to HST scenario in 2010.  The market pulled back to see what would happen and then slowly returned to business as before.

We again get back to the tale of two markets (foreign and domestic). What we are seeing today is the higher end of the one-million-dollar-plus homes are slowing considerably (mainly affected by foreign money).  While my experience over the last month is the resale condo market (read local market) remains fairly robust.  The reasoning behind this is many (of course not all) foreign buyers were more involved in the higher end of the market and the new construction coming to market.

The 15% tax therefore is having less impact on the…let’s say…one-million-dollars-or-less type of properties, (mainly condos and mainly “locals”) and so we are still seeing things move at a fairly strong pace.  The fundamentals of supply and demand are still driving the resale condo side of the market for the most part.

 

I dare say that The Foreign Buyer Tax was not all that well conceived. It appears to be a political, knee-jerk response by the BC Government. Dr. Sherry Cooper, Chief Economist for Dominion Lending Centres share this sentiment stating, “Housing affordability is a hot-button political issue, so it is not surprising that the B.C. Government, facing an election in less than a year, has felt compelled to do something to dampen the fervor.”

A few of the flaws as I see it:  It will have a mushrooming effect on non-Metro-Vancouver areas like for example Kelowna, and Victoria on Vancouver Island. By pushing the foreign money further out from Metro Vancouver, this potentially is passing the buck and creating affordability issues in these other areas too, perhaps even as far away as Toronto. Also, some of the buyers of presale condos are finding local friends or family members in order to assign their contracts, and hence sidestepping the 15% tax.

At the end of the day, some foreign funds will still be invested in the Vancouver Real Estate market. They still can and will.  For now, there will be a shock to the system.  Arguably the market is naturally correcting already which is good and healthy for the market.  Remember there are always two sides to the story, and while Sellers have had their turn with a Sellers’ Market, now Buyers may see some opportunity. As density remains a focus at city hall and in-migration remains a reality with a strong local economy both in Greater Vancouver and BC, the underlying lack of affordability will likely remain.  However, at this time the pace of the market will be slower.

Metro Vancouver home sales return to typical August levels

For the second straight month, home buyer demand in Metro Vancouver* moved off of the record-breaking pace seen earlier this year and returned to more typical levels.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential MarketUpdate_thumb.jpgproperty sales in Metro Vancouver:

Totalled 2,489 in August 2016,  ↓ 26%  compared to the 3,362 sales in August 2015

10.2%  ↓ than the 2,771 sales in August 2014

and 1% ↓  than the 2,514 sales in August 2013

August 2016 sales also represent a 22.8% ↓ compared to last month’s sales.

From a historical perspective, last month’s sales were 3.5 % below the 10-year sales average for the month.

“The record-breaking sales we saw earlier this year were replaced by more historically normal activity throughout July and August,” Dan Morrison, REBGV president said. “Sales have been trending downward in Metro Vancouver for a few months. The new foreign buyer tax appears to have added to this trend by reducing foreign buyer activity and causing some uncertainty amongst local home buyers and sellers.

“It’ll take some months before we can really understand the impact of the new tax. We’ll be interested to see the government’s next round of foreign buyer data.”

New listings for detached, attached and apartment properties in Metro Vancouver:

Totalled 4,293 in August 2016.

an ↑ of 0.3% compared to the 4,281 units listed in August 2015

18.1 % ↓ compared to July 2016 when 5,241 properties were listed.

The total number of properties currently listed for sale on the MLS® in Metro Vancouver:

8,506,  21.9% ↓ compared to August 2015 (10,897) and  1.9% ↑ from July 2016 (8,351).

The sales-to-active-listings ratio for August 2016:

29.3%. This is indicative of a seller’s market.

Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark, while home prices often experience upward pressure when it reaches the 20 to 22.5% range in a particular community for a sustained period.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver:

$933,100. This represents a 31.4% ↑ compared to August 2015 and a 4.9 %↑ over the last three months.

Sales of detached properties in August 2016:

715, ↓ 44.6% from the 1,290 detached sales recorded in August 2015.

The benchmark price for detached properties:

↑ 35.8 % from August 2015 to $1,577,300. This represents a 4.2% ↑ over the last three months.

Sales of apartment properties:

1,343 in August 2016, a ↓ of 10.1% compared to the 1,494 sales in August 2015.

The benchmark price of an apartment property:

↑ 26.9% from August 2015 to $514,300. This represents a 6.1% ↑ over the last three months.

Attached property sales in August 2016:

431, ↓ 25.4%compared to the 578 sales in August 2015.

The benchmark price of an attached home:

↑ 31.1% from August 2015 to $677,600. This represents a 7.1% ↑ over the last three months.

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.