Okanagan a Bargain, But Won't Last Long

If you’re on the lookout for a bargain property, the Okanagan may be your best bet.

But be quick. Because the real-estate scene in this hugely varied destination — from Shuswap Lake in the north, through the major ski resorts and urban Kelowna, to the lakefronts and vineyards of the Central Okanagan and south to desert-dry Osoyoos — is on the mend.

While the Okanagan remains, for the moment, a buyer’s market, the prices for every type of property are creeping back up and the inventory is dissipating.

At the same time, the market is maturing — or changing. Rather than solely eyeing short-term vacations, some condo-purchasers have retirement in mind. Extended families are pooling their resources for, maybe, a ski chalet. Increasingly, purchasers are Western Canadians, rather than Americans and other outsiders.

The Okanagan was badly hit by the 2008 recession, and by the summer of 2009, prices were in free fall. Recreational and regular properties were discounted by 30 per cent and more, foreclosures were not uncommon, and some construction came to a halt.

Today, says Gary August, longtime realtor and co-owner of Coldwell Banker Horizon Realty in Kelowna, the market is improving.

Comparing the first four months of 2008 with the first four months of this year, prices are down 21 per cent for condos; between seven and 8.5 per cent for single-family and town houses; and by 14.5 per cent for lakeside homes costing $2 million or more.

According to statistics from August, that puts the median price for a condo today at $213,000, a town house at $330,000, a single-family house at $461,000, and a luxury lakeshore home at $2,025,000 (the latter, a 2010 figure, given a dearth of sales so far this year). In short, says August: “Our market is better than it was two years ago, but down from the peak of 2008.”

Flipping that House: Things You Should know

The concept of house flipping has become quite popular as of late and is seen by the average investor as a means of making money relatively quickly through the use of real estate flipping. What is house flipping? Generally speaking, house flipping is a term that is used when one purchases a house with no intent other than to make a profit off of it.

The house flipper will buy a house that needs significant renovations or work, and then they will have the work done themselves and sell the house for more than they bought it in order to make their profit. House flipping has become so popular in fact, that many people have gone into this business full time and use the profits from house flipping as their sole income. If you are considering house flipping as a career, there are a few things you will want to know about the process that may make your life a little easier.

You do not need to be good at renovating to flip houses, but it is recommended that if you are not, you hire someone like a general contractor that can ensure that the work you need done is done properly. Hire someone with a good reputation and it is a good idea to use personal referrals for this when you are looking for someone.

If someone you know has a good experience with a contractor, then you will likely have one as well. Your contractor is going to be your 'go-to guy' for all of your renovations and will meet you regularly at your property to ensure the repairs are met to your standards.

Before you choose a house that you want to flip, investigate the surrounding market in that area. Many house flippers fall into the trap of overestimating how much their house will finally sell for and often end up losing money on their homes.

See what the houses in your area are going for and conduct your calculations accordingly. It is rare that you will be able to sell something that is priced out of the market in a certain area, so the term buy low and sell high is something that is appealing, however can backfire if you don't do your calculations correctly.

Your contractor will be able to give you an estimate on how much your repairs and renovations will cost. Add an additional 3-5% on top of this estimate as many times projects run over budget as just a simple fact of life. Your contractor is not trying to scam you, but this happens more often than it does not. If you are prepared going into the flip with these budgetary guidelines, you will protect yourself in the long run.

Take the cost of your house and add this to the contractors estimate, and when comparing with the market values in the area, you should have a healthy estimate of the profit you can expect from the house you wish to flip.

No two experiences with house flipping are identical, so always be prepared for surprises. In the business of house flipping, the more prepared you are, the more profit you will make...

House Buying for the Expecting Couple

Becoming a parent is one of the most wonderful things in the world. To watch as your bundle of joy wriggles his tiny toes and crinkles his little eyes is sheer bliss. Other more experienced parents and loved ones come up with all kinds of tips that young parents could use. The baby gets heaps of presents even before it is born. Shopping for the baby is a thrilling time as you choose from among hordes of things that the baby would be needing.

However, even as you enjoy the process of becoming parents, there are some serious questions that you must ask. One of the first of these is regarding the size of your house. The first house that you moved into may have been all right for a young couple. But will it be all right for a couple and a child who is growing up?

As anyone who has ever thought about expanding their families already knows, one invariably has to move to a bigger house when the children start growing up. Even if you do not make the move before the baby is born, in a few years time, it may become necessary to do so.

But shifting from one house to another tends to be a challenging affair. Moreover, now that you have a family, it would make sense to go in for an ownership house. Yes, many young couples decide to buy their first house when that first baby arrives. At the same time, one need not iterate that this is expensive business.

With a baby on the way, it may not seem like the best idea to go in for a house. Yet, you should be aware that expenses will only keep increasing. If you are hoping to shift to a better house some day, you might as well start now.

Once you have made the decision to make that shift, you will have to check out several houses. Ideally, you should be looking for houses that you will be able to afford. This is not to say that you will be paying the entire amount from your savings account.

Most of us do not have the savings to purchase a house at any time. The affordability problem is further compounded if you are a young couple. But that should not deter you from deciding to purchase a house. You could always avail of a mortgage plan to help you out.

Every lender offers a number of great mortgage deals. But you will have to sift through them to get the best bargains. Ensure that you consider factors such as the rate of interest and the term of the loan. A fixed, low rate of interest coupled with a period of say twenty years could be a good choice for a young couple.

A variable rate of interest might turn out to be a great bargain when the market rates are low. Discounted mortgages are also full and plenty. Look around before you make a choice that would suit you best...

Preparing To Move: Essential Moving Supplies and Tips

When you know you have to move, it’s never too early to get started with your preparations. One of the first things you are going to have to do is to get all of your moving boxes and other moving supplies organized so you can start with packing away your items as early as possible. While you may not want to pack up your clothes and kitchen items much in advance, there are several items that you may not need in the near future and packing those away in moving boxes as early as you can will help ease the last minute confusion that inevitable accompanies any move.

Start with sorting out your belongings so you can determine what goes with you, what is destined for the trash heap and what you don’t need but is in good enough condition to be given away. Once you have a better idea of the amount of stuff you are taking with you, you will have a fair estimate of the amount of moving boxes and moving supplies that you will need.

One mistake many people make when moving is to use regular boxes. The problem with this is that these boxes are not strong enough and the odds are high that these boxes could tear or break either while loading or unloading and could damage your items. Many times, household items, especially those with sentimental value, are irreplaceable and using moving boxes that are not reinforced is not worth the risk. Moving boxes are available in several sizes and are specially constructed to weather the wear and tear of moving without breaking or tearing. These boxes often have handles or cut-outs on either side so they can be easily lifted by two people, thus making them easier to carry when packed with heavy items. Make an approximate estimate of the number of boxes you will need for your items.

In addition to moving boxes you will also have to get some other moving supplies such as bubble wrap as well as stretch wrap, packing tape, tape dispenser, straps, packing paper and name tags. While clothes, toys and other unbreakable items can be placed inside moving boxes as is; fragile items will require special moving supplies. For example when you are moving your glassware and your curios, you will need to wrap each item with bubble wrap and place it carefully into moving boxes. Then, to prevent the items from moving around inside the box and to provide additional protection, crumple some packing paper and place it firmly in between the items. Keep in mind, it is always best to use smaller boxes for fragile items so they can be easily carried without dropping.

With so much to do before you move, you will be relieved to know that at least it is not too difficult to find moving supplies. The best place to source all of your moving boxes and moving supplies is undoubtedly the internet. Just check out the various websites and you are sure to find one that will have everything that you need.

Curb Appeal - Creating a Good First Impression

Many people believe: “you never get a second chance to make a good first impression.” In real estate, the outside of your home is the first thing potential buyers see when they come for a visit. It’s also their first opportunity to start forming judgments. Give them a reason, and they will start forming negative opinions about your house before they’ve reached the front door. Remember, the negatives stick out more than the positives do. This is just one example of someone judging a book by its cover.

Here are my top five tips to improving the curb appeal of your home:

1. People! Start Cleaning
Clear away old lawn furniture, toys, and clutter. Things that you think need replacing such as that old deck in the back yard -- probably just needs cleaning. Power washers are great on wood decks and fences, and aluminum siding too. Wash the windows, sweep away cobwebs and get rid of any nests that you have. If you have pets, clean up after them. Stash garbage cans and recycling bins out of sight. Clean your gutters and if you find mold or mildew anywhere, try using the power washer on it, and try cleaning with bleach!

2. Get Some R&R: Replace and Repair
If a windowpane is cracked, simply replace the pane and not the whole window. Repair or replace torn window screens and fix any broken steps or fences. Replace missing shutters, straighten doors that are crooked, and oil anything that squeaks.

3. Paint: Easy and Affordable
Paint the trim white, or a clean neutral color. Put a fresh coat of a nice welcoming red or blue paint on the front door, to set it off from the other houses on your street.

4. Give It Some "Bling"
Put a light bulb in the front porch light and turn it on. Polish any metal fixtures you have, switch out your tired old mailbox for a new one, and replace your old house numbers with something that shines. Replace the old worn out welcome mat with a fresh new one. Remember, people love sparkly new things.

5. Time to Take Up Gardening, But a Lawnmower Will Do
An overgrown garden is a signal to potential buyers that your lot requires too much upkeep. Mow, rake or shovel, depending on the season. Keep paths and drives clean and clear. Remove vegetation from between cracks in the pavement and trim sidewalk and driveway edges for a neat and tidy look. Trim the hedges and add some bright flowers to the garden or window boxes. Prune any wayward branches that are too close to the house and cut back anything that prevents light from coming in through the windows.

So in a nutshell, if it’s dirty, clean it, if it’s broken, fix it, if it’s worn out replace it and if it’s cluttered, get rid of it. And make sure the back garden is just as presentable as the front.

Homework Before Home Buying

Purchasers scared by stories of spiraling prices - which often change from week to week - are snapping up new homes with an almost indecent haste. And, contrary to popular opinion, this method of buying doesn't sit well with reputable home builders.

Many people spend only two or three hours selecting a home on their first visit to a site before coming back a second time to sign on the dotted line.

Too many people later regret this type of purchase. Not fully understanding their contract or the current construction situation, their expectations are too high and their dream home turns into a nightmare.

Established builders want satisfied customers. Word of mouth is the best, or worst, advertisement for their products. So if you are buying a new home for the first or even the second time how should you go about it in today's torrid market?

Look at the community. Check with the municipality. Knock on doors of people who have already bought homes in the subdivision.

If it is a brand new subdivision where houses have not yet been built, locate a subdivision previously constructed by your builder. Go there and, again, knock on doors.

It is important that purchasers check with the municipality before signing on the dotted line. Building department inspectors can provide them with a lot of information.

Inspectors usually know the location of subdivisions previously constructed by the builder and will also tell you what amenities are available near your new home and the zoning for adjoining land.

Are there schools nearby? What type of recreation and shopping is available or planned? Inspectors can tell you.

Taking a little time will save you from some nasty surprises. Choosing your builder is important. In the past few years there has been a large increase in builders entering the Metro scene to cash in on a lucrative market.

One reason for today's panic buying is the fear that prices will increase if a purchaser delays making an offer. There is no need to panic.

It is always good to discuss your builder's offer with lawyers so they know what they are getting into. Choose lawyers who specialize in real estate. All this is good, solid advice. Buying a home is the most important investment most people will make and buying the right home will maximize that investment.

Take your time - you're not buying patio furniture...

RBC Report States - Housing to become more affordable in 2011

It is becoming more affordable to own a home, according to the Royal Bank of Canada, but the high cost of ownership will continue to keep the market steady and contain price increases. In its quarterly housing affordability report, RBC said home ownership cost decreased over the summer for the first time in more than a year. This is attributed to low mortgage rates.

But homes were still more expensive than long-term averages in many markets, suggesting “greater than usual tensions exist for Canadian homebuyers.” “These tensions are unlikely to derail demand for housing in the near term but will act as a restraint on growth in market activity going forward,” said RBC senior economist Robert Hogue. This is the first time affordability has improved since mid-2009. The following are provincial highlights from the report:

• British Columbia: In the third quarter of 2010, affordability in B.C. dropped between 1.8 and five per cent, representing the largest decline since the first quarter of 2009. But the measures remain above long-term averages and poor affordability will weigh down on provincial housing demand in the time ahead.
  
• Alberta: Homeownership in Alberta is among the most affordable in Canada both in absolute terms and relative to its historical averages.
  
• Saskatchewan: Current market conditions are stretching homebuyers’ budgets. However, those budgets are likely to be boosted from a strong expected rebound in the provincial economy and thus family income this year and next.
  
• Manitoba: Lower mortgage rates in the third quarter were particularly helpful in bringing down homeownership costs in the province although some price declines also contributed. Manitoba is one of only two provinces, alongside Alberta, where the measures for all housing types are currently below long-term averages, which will be a supportive factor for demand going forward.
  
• Ontario: Existing home sales ended their earlier slide by sustaining three straight gains from August to October. With the market now back in balance, the recent softness in home prices will likely prove to be healthy for 2011.
  
• Quebec: Following four consecutive increases, province affordability fell 1.4 to 1.8 per cent. Still, the measures remain close to the pre-downturn peaks and above their long-term average, which will restrain upcoming demand growth.
  
• Atlantic: Affordability levels returned to roughly where they were in mid- to late 2009. Overall, housing continues to be quite attractive in Atlantic Canad