Every generation of first time homebuyers faces their own unique challenges. A recent report from Statistics Canada suggests that young people in BC are turning to family co-ownership as a means of overcoming some of those challenges. In fact, in BC, one out of every five residential properties owned by younger Millennials and older Gen Zers – those born in the 1990’s – is co-owned with a parent.

Reasons for co-ownership vary. In some cases, co-ownership is a purely financial decision. The adult child lives in the co-owned property while the parent lives elsewhere. Or, co-ownership can be based on social factors, with multigenerational living situations allowing for shared childcare responsibilities and combating social isolation.

But is co-ownership right for your family? Whether it’s finding the perfect multigenerational home or navigating the complexities of mortgage co-signing, at Stilhavn, we understand the benefits and challenges associated with co-ownership. Here are a few things to consider if you think this options could be for your family.

Benefits of Co-Owning with Family

Increased Buying Power and More Affordability
Combining finances with a family member typically allows buyers to qualify for a larger loan. Further, shared monthly costs can help to improve affordability.

Building Equity
As you pay down the mortgage, both parties build equity in the home. This provides a return on investment and longer term financial security.

Potential Tax Benefits
In some cases, co-ownership may provide tax deductions for mortgage interest, property taxes, or capital gains when the home is sold.

Shared Responsibility
Co-owning can mean sharing homeownership duties like maintenance and repairs. This can ease the burden, especially for aging parents.

Challenges of Co-Owning with Family

While co-ownership has benefits, it also comes with some things to consider:

Agreeing on Shared Decisions
As co-owners, you’ll need to agree on any major decisions regarding the property, including renovations, rental and the eventual sale of the home. Conflicting opinions can strain relationships.

Unequal Financial Commitment
If one party provides more for the down payment, they may want a larger share of proceeds when the home sells. This should be discussed upfront.

Complicated Exit Strategy
Selling a co-owned home requires navigating each person’s share of equity. Exiting the arrangement may be difficult if you have a falling out.

Questions to Ask Before Co-Owning

Before taking the leap into co-ownership, have an honest conversation about the following:

How much will each person contribute to the down payment and monthly costs?
How long do you plan to co-own the home? Under what conditions would you sell it?
What renovations or changes can each person make without approval?
What happens if one person faces financial hardship and can’t make payments?
What if one owner wants to move in with a significant other or new spouse?
How will household chores, repairs and maintenance be divided?
How will you resolve conflicts if they arise?
How will proceeds be divided when the home is sold?

Putting it in Writing

To prevent misunderstandings, put the co-ownership details in a written agreement. Having things in writing provides legal protection if disagreements come up and helps to avoid any strain on the relationship as a result. The agreement should address important topics such as ownership percentage, cost division, occupancy rules and repairs.

If this option is available to you as a FIRST TIME HOME BUYER, let’s chat: 604-805-6820, bridget@bridgetross.ca

Article courtesy of Stilhavn Real Estate Services

May was certainly cooler this year, not just in terms of temperatures, but also in the real estate market. In May, the number of transactions on the MLS® in Metro Vancouver1 saw a noticeable decline compared to the typical volume for this time of year. This decrease in buying activity has contributed to an accumulation of homes available for sale, resulting in over 13,000 properties now actively listed on the MLS® in the region.

The reduction in transactions suggests a potential cooling in the market, where buyers might be exercising more caution or waiting for more favourable conditions. Meanwhile, sellers continue to list their properties, leading to an increased supply of homes. This growing inventory could result in more competitive pricing and greater opportunities for buyers, potentially shifting market dynamics and influencing future trends in the real estate sector. As the market adjusts, both buyers and sellers may need to adapt their strategies to navigate the evolving landscape.

Residential Home Sales

The Greater Vancouver REALTORS® (GVR)2 reports that residential sales in the region totalled 2,733 in May 2024, a 19.9 per cent decrease from the 3,411 sales recorded in May 2023. Last month’s sales total was also down 19.6 per cent from the 10-year seasonal average for May (3,398).

“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data.” – Andrew Lis, REBGV director of economics and data analytics.

Inventory

There were 6,374 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in May 2024. This represents a 12.6 per cent increase compared to the 5,661 properties listed in May 2023 and a seven per cent increase compared to the 10-year seasonal average (5,958).

Home Price Data Analysis

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 13,600, a 46.3 per cent increase compared to May 2023 (9,293). This total is also up 19.9 per cent above the 10-year seasonal average (11,344).

Metro Vancouver Home Sales by Property Type

Across all detached, attached and apartment property types, the sales-to-active listings ratio for May 2024 is 20.8 per cent. By property type, the ratio is 16.8 per cent for detached homes, 25.1 per cent for attached, and 22.5 per cent for apartment properties.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

Detached

Sales of detached homes in May 2024 reached 846, an 18.9 per cent decrease from the 1,043 detached sales recorded in May 2023. The benchmark price for a detached home is $2,062,600. This represents a 5.9 per cent increase from May 2023 and a 1.3 per cent increase compared to April 2024.

Apartments

Sales of apartment homes reached 1,338 in May 2024, a 22.7 per cent decrease compared to the 1,730 sales in May 2023. The benchmark price of an apartment home is $776,200. This represents a 2.2 per cent increase from May 2023 and a 0.3 per cent decrease compared to April 2024.

Attached Homes

Attached home sales in May 2024 totalled 523, a 14 per cent decrease compared to the 608 sales in May 2023. The benchmark price of a townhouse is $1,145,500. This represents a 5.2 per cent increase from May 2023 and a 0.9 per cent increase compared to April 2024.

REPORT courtesy of Stilhavn Real Estate Services

*For more specific neighbourhood statistics, get in touch. I would love to hear from you!

bridget@bridgetross.ca

604-805-6820

In April, the number of homes listed for sale on the MLS® in Metro Vancouver1 saw a significant year-over-year increase, climbing by 42 percent to surpass the 12,000 mark. This level of inventory has not been observed in the region since the summer of 2020. The substantial rise in listings indicates a steady influx of available properties, showing increased seller activity and possibly a shift in market dynamics. This increase in listings may suggest a move towards a more balanced market between buyers and sellers.

Residential Home Sales:Greater Vancouver REALTORS® (GVR)2 reports that residential sales3 in the region totalled 2,831 in April 2024, a 3.3 per cent increase from the 2,741 sales recorded in April 2023. This was 12.2 per cent below the 10-year seasonal average (3,223).

“It’s a feat to see inventory finally climb above 12,000. Many were predicting higher inventory levels would materialize quickly when the Bank of Canada began its aggressive rate hikes, but we’re only seeing a steady climb in inventory in the more recent data. The surprise for many market watchers has been the continued strength of demand along with the fact few homeowners have been forced to sell in the face of the highest borrowing costs experienced in over a decade.” – Andrew Lis, REBGV director of economics and data analytics

 Inventory:There were 7,092 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in April 2024. This represents a 64.7 per cent increase compared to the 4,307 properties listed in April 2023.

This was 25.8 per cent above the 10-year seasonal average (5,637).

Home Price Data Analysis:The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,491, a 42.1 per cent increase compared to April 2023 (8,790).

This is 16.7 per cent above the 10-year seasonal average (10,704).

Metro Vancouver Home Sales by Property Type: Across all detached, attached and apartment property types, the sales-to-active listings ratio for April 2024 is 23.5 per cent. By property type, the ratio is 17.6 per cent for detached homes, 31.0 per cent for attached, and 26.0 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

Detached: Sales of detached homes in April 2024 reached 814, a 0.7 per cent increase from the 808 detached sales recorded in April 2023. The benchmark price for a detached home is $2,040,000. This represents a 6.3 per cent increase from April 2023 and a 1.6 per cent increase compared to March 2024.

Apartments: Sales of apartment homes reached 1,416 in April 2024, a 0.2 per cent increase compared to the 1,413 sales in April 2023. The benchmark price of an apartment home is $776,500. This represents a 3.2 per cent increase from April 2023 and a 0.1 per cent decrease compared to March 2024.

Attached Homes: Attached home sales in April 2024 totalled 580, a 16 per cent increase compared to the 500 sales in April 2023. The benchmark price of a townhouse3 is $1,127,200. This represents a 4.3 per cent increase from April 2023 and a 1.3 per cent increase compared to March 2024.

For more neighbourhood specific information, feel free to reach out!

Bridget: 604-805-6820

What is Title Insurance

Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.

Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:

• Fraud and forgery, including someone taking your title through fraud or forgery

• Encroachments that would be disclosed by a new survey (for example, a neighbour's deck being partly on your land)

• Easements (the right acquired for access to or over another person's property for a specific purpose, such as for a driveway or public utilities. This is referred to as "servitude" in the Province of Quebec) over the property that would be disclosed by a new survey

• Zoning non-compliance (i.e. where the property use does not meet the local municipal by-laws)

• Someone other than the home owner having interest (i.e. a previous owner of the property not being discharged from title)

How Do I Know if I Need Title Insurance?

If you are purchasing or refinancing your home, you should discuss title insurance with your lawyer/notary to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner's policy.

Benefits of Title Insurance

Comprehensive coverage

The policy can provide broader coverage than a solicitor/notary's opinion on title as well as post purchase fraud coverage.

Peace of mind

As the policy covers the items outlined above, you can rest easy knowing if there are defects affecting the title of your home that are covered by the title insurance policy, your title insurer will take steps to rectify the problem.

One time cost

The premium is usually due at the time of closing for purchases or refinances. Some insurers permit you to purchase title insurance at any time.

The Importance of Home Inspections: What to Look for and Why

A home inspection is important when buying a home to avoid any potential surprise costs. A qualified professional will thoroughly examine the physical condition of a home to look for visible defects, wear and tear, code violations, and potential problems.

After the inspection, the inspector will provide a detailed written report summarizing the condition of the home. This report will help you understand the true condition of the property and highlight any repairs needed.

Typical issues found during inspections include cracked foundations, faulty wiring, water damage, and pest infestations.

We’ll explore what exactly home inspectors look for, and how to find a quality inspector.

What Does the Home Inspector Check?

Home inspectors examine all aspects of the property during the inspection. Here are some of the major features and systems they will evaluate.

• Roof and Attic: Inspects roof age, condition, and remaining life; checks for leaks, ventilation issues, and water damage.

• Exterior: Checks siding, paint, trim, windows, and doors for damage and wear. Examines flashings, eaves, and drain spouts for issues.

• Foundation: Inspects visible foundation walls and structure for cracks or water damage.

• Structural: Evaluates floors, walls, and ceilings for sagging, cracks, or unusual settling that can indicate structural issues.

• Electrical: Checks condition of main panel and wiring; tests outlets, switches, and fixtures for functionality.

• Plumbing: Checks water pressure, piping, fixtures for leaks and damage.

• HVAC: Tests heating and cooling equipment; examines ductwork; ensures proper air flow.

• Ventilation: Confirms adequate ventilation in bathrooms, kitchen, and attic to prevent moisture and condensation issues.

• Appliances: Turns on major appliances to ensure proper operation.

• Pest/Rot Damage: Checks for evidence of wood boring insects, termites, carpenter ants, and rodents. Inspects for fungus or mold.

• Safety: Checks for presence of smoke detectors, CO detectors, proper railings, electrical hazards, potential trip points.

 How to Pick the Right Home Inspector

Not all home inspectors are equal when it comes to knowledge and experience. Here are tips for choosing the best one:

– Ask local real estate agents for inspector recommendations, but also do your own research.

– Look for an inspector who has been in business for several years and has extensive experience in your area. They’ll be familiar with local homes.

– Look online for customer reviews and feedback about the inspector. Look for responsiveness and clear reports.

– Make sure the inspector provides a detailed written report. Never accept just a verbal overview.

Following up on Inspection Findings

Your next steps after the inspection depend on the findings:

Minor issues: Small repairs or flaws can be addressed by the seller before closing.

Deal breakers: Costly foundation repairs or extensive water damage may mean walking away from the property completely.

Second opinion: If an issue is unclear or you get conflicting estimates about the repair cost, consider getting a second inspection.

Regardless of the findings, it’s up to you to determine if the home still meets your needs and if the price accounts for necessary updates. Use the inspection to make an informed decision, not an emotional one.

If the home inspection uncovers issues, the realtor acts as a facilitator between the buyer and seller to negotiate potential solutions. This includes coordinating any follow-up inspections, repairs, or final walkthroughs. Reach out to one of our market-leading Realtors® today.

article courtesy of Stilhavn Real Estate Services

The world is shifting to become more aware of the impact we have as individuals on the environment. According to Statistics Canada, 76% of households composted either kitchen or yard waste in 2022, and in 2021, 97% of households reported using their own bags or containers when grocery shopping. But, there’s still work to be done, because on the flip side of things, Canadians generated 10.9 million tonnes of residential waste in 2020—the highest amount on record, according to Statistics Canada. 

There are many ways you can be more sustainable at home, from small changes to larger considerations

Consider an energy audit

Finding ways to upgrade your home that are also energy efficient sounds like a no-brainer.

The federal and provincial governments (depending where you live) offer incentives to help with these changes, and the first step is an energy audit (also known as a home audit or energy assessment). Audits are even more important depending on the age of your home. Even a home built in the 1990s would benefit from an audit, as building codes have changed over the last 30 years. 

What are the steps in an energy audit?

• Pre-project assessment: where an assessor examines your home from top to bottom and provides you with reports on how your home is currently using energy, a list of recommended upgrades, as well as an EnerGuide label with your home’s efficiency score.
• Post-project assessment: performed once you have completed the recommended upgrades. The assessor returns to do a new audit and to confirm the upgrades. You’ll receive updated reports as well as a rebate verification. 

Once you’ve received the rebate verification you can apply for rebates. The Canada Greener Homes Program is available nationwide as a federal incentive program. Across the provinces and municipalities there are further incentives available which can be discussed with a registered energy advisor. 

For example, a first time home buyer purchases a property for $800,000. Normal PTT would have been $14,000 (1% on the first $200,000 and 2% thereafter). However, new rules would allow for a reduction in the PTT of $8,000, making total PTT equal to $6,000.

PTT Change on Newly Built Units from $750,000 to $1,100,000. This is for all owner occupied buyers, even if they are not first time home buyers.

*When it comes to taxes, always seek the advice of your account!

Before Purchasing a Home, Should You Talk to a Lender or Real Estate Agent First?

Ready to purchase a new home? Congrats – how exciting! Before you start house hunting, you may be wondering: should I contact a lender or real estate agent first? 

Both play important roles in the home buying process. Lenders secure financing so you can afford the home. Agents help you find and purchase the perfect property. So, who should you turn to first? 

Here we’ll compare the benefits of speaking to a lender vs. an agent first. We’ll also provide tips to help you decide the best plan of action for your situation.  

Pros of Speaking to a Lender First

Starting with a lender has its advantages, like:

– Knowing your exact loan amount helps you to set a realistic budget.

– The ability to make stronger offers since sellers know you can secure financing.

– Locking in low interest rates promptly if they’re trending up. This prevents a higher rate later.

Cons of Speaking to a Lender First

Potential drawbacks include:

– Rates and loan programs can change if too much time passes after getting pre-approved.

– You may not have defined your home must-haves yet, making it harder for a lender to advise you.

– Lenders mainly cover financing, not the home search and purchasing process.

Pros of Speaking to an Agent First

Meeting with an agent first has advantages such as:

– Gaining insights on the local real estate market, inventory and pricing.

– Defining your needs and preferences for a home.

– Getting a head start on the search with listings matching your criteria.

– Viewing homes with an expert by your side.

– Receiving insights on neighborhoods, negotiations and competing offers.

Cons of Speaking to an Agent First

Some potential disadvantages include:

– Not knowing your budget without financing in place first.

– Potentially falling for a home before getting pre-approved, which leads to disappointment.

– Making an offer without a pre-approval carries less weight.

– An agent can’t explain mortgage options like a lender can.

Tips for Deciding

So, what’s the best plan of action for your situation? Here are a few tips:

If your timeline for purchasing is tight, or rates are trending up, go to the lender first to expedite financing and lock in lower rates. In highly competitive markets, lead with the lender as well – pre-approval makes your offers stronger.

If you’ve already defined your home must-haves, starting with an agent can get the search rolling quickly. However, if you need extra care throughout the buying journey, an agent may be the better choice.

Remember – you aren’t locked in your choice. You can always meet with the other shortly after! The key is starting somewhere to gain clarity.

Reach out any time if you would like more details about these choices and more!

Bridget (604-805-6820)

Article courtesyof Stilhavn Real Estate Services

Parking and storage are often key considerations when it comes to strata living. Because of that, we’re looking at the different ways parking and storage can be designated within a strata corporation.

1. Why are Parking and Storage designations important?

 It’s important to understand and be able to describe these concepts to consumers, as the rights they have to parking and storage can often impact their purchase decisions.

While buildings that were built in the 90s or earlier often came with more parking stalls and storage lockers than units, today we’re seeing many new strata developments that have less parking stalls and storage lockers than units, making these components that much more important and valuable.

2. Where can I find information about the Parking and Storage?

You can find information about a strata lot’s parking and storage on the Form B. It’s important to also verify this information on the Strata Plan or Parking Plan filed with the Land Title Office. We’ve come across many Form Bs that provided incorrect information.

3. What are the different ways Parking and Storage can be designated?

When it comes to parking stalls and storage lockers, there are 5 ways you’ll typically see them designated:

• Forms Part of the Strata Lot - Often found in townhouses.

• Common Property - The strata council grants permission to use a spot on a yearly basis, and while uncommon (especially if there are enough spots for each unit) can change or take the spot away.

• Limited Common Property of a Strata Lot - The owner has exclusive use of a specific spot, and the designation can only be changed if the owners pass a unanimous resolution.

• Limited Common Property for a Group of Strata Lots - Often found in sectioned stratas; the council or section executive grant permission to use a spot on a yearly basis and (like with a common property spot) can change or take the spot away.

• Owner Developer Assignment (aka. Long Term Lease) - The parking and/or storage are subject to a long term lease associated with the strata lot; a copy of the master lease and assignment document(s) should be obtained from the sellers, as the strata corporation doesn’t usually get or retain copies.

Competing in a multiple offer situation when buying a home can be challenging, but there are several strategies you can employ to increase your chances of success. Here are several ways you can compete effectively:

1. Offer a higher price: In a competitive market, offering a higher price than the listing price or the competing offers can make your offer more attractive to the seller. However, be sure to consider your budget and the value of the property to avoid overpaying.

2. Get a pre-approval letter from a reputable lender demonstrates to the seller that you are a serious buyer who is financially capable of purchasing the condo. This can give you an edge over other buyers who may not have secured financing. It can also allow you to leave out that condition in your offer. Allow your realtor to communicate with your mortage broker to confirm your budget.

3. Write a subject free offer. If the listing agent has all the property documents up front, you can read them before offer presentation time. You can also have a home inspection done prior to offer time as well.

4. Make a larger earnest money deposit: Increasing the earnest money deposit shows the seller that you are committed to the purchase and willing to put down a significant amount of money upfront. A larger deposit can make your offer more appealing and reassure the seller of your sincerity.

5. Write a personal letter to the seller: Sometimes, sellers are emotionally attached to their property and may be swayed by a heartfelt letter from a prospective buyer. Use the letter to introduce yourself, explain why you love the condo, and convey your excitement about the possibility of living there. Personalizing your offer in this way can help you stand out from other buyers.

6. If possible, give the seller the Completion and Possession dates they need to move on to their next property.

My job is to craft a contract that legally protects you as the Buyer, and negotiate on your behalf so that you have the opportunity to put your best offer possible in the multiple offer situation.

In Canada, a co-signer on a mortgage is someone who agrees to be legally responsible for the mortgage payments if the primary borrower defaults. Mortgage with a co-signer can help a borrower qualify for a loan if they have insufficient credit history or income on their own. However, it's a significant financial commitment and carries risks for the co-signer.

A bare trust agreement, on the other hand, is a legal arrangement where a trustee holds property or assets on behalf of a beneficiary. In the context of real estate, a bare trust may be used for various purposes, such as holding property for the benefit of a minor child or managing property on behalf of someone who is unable to do so themselves.

If a parent co-signs their child's mortgage and the property is held in a bare trust, it means that the parent may have legal responsibility for the mortgage payments, but the property is legally owned by the child and held in trust by the parent as trustee. This arrangement can have implications for taxation, estate planning, and asset protection.

It's essential to consult with a legal and financial advisor to understand the implications of co-signing a mortgage and entering into a bare trust agreement, as these arrangements can have complex legal and financial consequences.