RSS

Income Properties Are Trending, But Is Landlord Life for You?

If the thought of investing your money into brick and mortar—or perhaps some stylishly-painted siding—excites you, join the club. 

Investing in real estate has long been one of Canadians' favourite ways to grow their wealth. According to a poll by CIBC, 15% of Canadian homeowners already earn some rental income, while another 11% aspire to it. What's more, over a third of current homeowners (37%) say they'd look for a property with income potential if they were buying a new home.1 

Baby boomers over the age of 55 are especially likely to own an income property these days.2 But according to Statistics Canada, a growing share of millennials in their 30s and 40s have also cashed in on the real estate investment trend.3 The Bank of Canada estimates that at least 20% of newly purchased homes are now owned by individual investors, up from 18% in 2015.4 

Canadians have historically embraced real estate, in part, because of the strong return on investment it can offer—especially to investors willing to stick with a property over time. It's also a popular way to hedge against inflation since both rental income and property values tend to rise in tandem with overall prices.5 

But how do you know if you’re well-suited to take advantage of real estate investment opportunities? Here are three signs that owning a rental property could be right for you.


1. YOU'RE A HOMEBUYER WHO WANTS HELP COVERING THE MORTGAGE

If you're looking for a creative way to buy a home without overspending, “house hacking” could be the answer. Increasingly popular with first-time homebuyers and budget-conscious investors, house hacking simply means buying a home that you intend to live in while renting out a portion of it to one or more tenants.6 

In addition to padding your monthly income, buying a home with a self-contained income suite can make it easier for you to qualify for a mortgage. If a secondary dwelling is move-in ready, a lender may be willing to add half of the rental payments you can plausibly collect from future tenants to your qualifying income, making it easier to pass the mortgage stress test.7  

House hacking also tends to be simpler to break into than traditional real estate investing since you don't need as large a down payment to qualify for a mortgage. For example, if you buy a home you only intend to rent, you'll need to put down at least 20%, regardless of whether or not your mortgage is insured. But if you intend to move into the property yourself and only rent out a part of it, you can put down as little as 5%.7 Plus, your mortgage rate will be lower and you may still qualify for a principal residence exemption for some or all of the home if you later sell it.7 8 

When it's time to start your search, we can help you find a property that's ideal for house hacking, such as a house with a walkout basement, a multifamily unit, or a home with enough outdoor space to build a laneway or garden suite.


2. YOU'RE AN INVESTOR LOOKING FOR STEADY AND RELIABLE INCOME

If you’re not crazy about the idea of a live-in tenant but still desire an additional stream of income, a dedicated long-term rental property could be a better option for you. Besides the monthly proceeds, purchasing a rental home can also add diversity and long-term stability to your investment portfolio and help you build wealth over time.9

According to data from the Canadian Real Estate Association, real estate owners have historically prospered. In early 2020, for example, the average home price was 120% higher than just 15 years prior. Then, during the pandemic-era real estate boom, average home prices grew at an especially frenzied clip, climbing by more than 60% in less than two years.10 

However, the rate of appreciation can be hard to predict, so it’s prudent to invest in a property that also offers positive cash flow, which means the rent you take in exceeds your expenses. This strategy helps to ensure that you’ll put money in your pocket each month, even if the property’s value takes time to grow.

While today’s higher mortgage rates can make it more challenging for landlords to turn a profit, a tighter rental market also means you can demand higher rents. Turnover on your rental unit may also be lower as many would-be buyers remain priced out of the purchase market.9  

Plus, research by Statistics Canada suggests that many landlords now earn significantly more than they once did. In 2020, for example, more than 76 percent of independent landlords reported earning more rental income that year than they spent on upkeep, taxes, mortgage payments, and other annual expenses. That's up from 63 percent in 2008.3

If you want to explore opportunities for a residential rental property that's good for your wallet and attractive to renters, we can help. 


3. YOU'RE AN EXPERIENCED INVESTOR LOOKING TO MAXIMIZE YOUR POTENTIAL RETURNS

Another increasingly popular way to draw income from an investment property is to convert it to a short-term vacation rental. But beware: This strategy can be riskier as some municipalities have tightened rental restrictions and others are suffering from market oversaturation.11 

With that said, if you're an experienced investor who can afford to take on some uncertainty, then investing in a short-term rental could make sense for you. 

If you find the right property, for example, you could earn significantly more renting it short-term on a platform like Airbnb than if you rented the home to a long-term tenant.12

The key is to keep it occupied as much as possible at a premium nightly rate. To do that, you’ll need some marketing savvy, hospitality skills, and business acumen. Of course, you can always hire a professional property manager, but you’ll need to factor the cost into your budget.

Vacation rentals have boomed in recent years, and some inexperienced investors are finding they bit off more than they can chew.13 As a result, there's an opportunity to snap up some of these properties, but you'll need some cash on hand and a willingness to learn the business.

We can help you scout opportunities in our local market or, if you’re interested in investing in another area, we can refer you to an agent there for assistance.


BOTTOMLINE

Investing in real estate can be a great way to build your wealth long-term and earn some extra income. But to make the most of your investment, it pays to be strategic. 

Call us for a consultation so we can discuss your goals and budget. We'll help you discover neighbourhoods with the best income potential, point out the homes most suited to renting, and help you brainstorm the best investment strategy for you.  


Before you take the plunge, make sure you can answer “YES” to these three questions:
     

      1. Are you ready to be a landlord?

Owning a rental property can take a lot of time and energy. You're not just buying passive income, you're also building sweat equity since the time you spend maintaining, marketing, and managing your rental can add up quickly. So be prepared to do some soul-searching to ensure you’ll not only flourish as a landlord, but actually enjoy it.

If you want to invest in real estate but aren’t prepared to put in the day-to-day effort required, we can refer you to a property management service for help. 


      2. Can you afford to invest in real estate?

The last thing you want is to get over-extended with your new real estate venture. Besides the cost of purchasing the property, you’ll need to consider additional expenses, like property taxes, insurance, administrative costs, and maintenance and repairs. You will also need a cash reserve for unexpected issues or potential vacancies.

We can help you run the numbers to determine if you can charge enough rent to offset your expenditures.


      3. Have you found the right income property?

Even if you’ve got your finances in order and are emotionally ready to invest, your success as a landlord will also depend on the property you buy. The criteria for a good rental home and a good family home are often different, so it’s important to lean on professionals for advice. 

We can help you find an ideal rental property, taking into account your budget, risk appetite, and investment goals. If you decide to invest in a different area, we'll connect you with an agent who's more plugged into that community. Reach out today to schedule a free consultation.


The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.


Sources:

  1. CIBC -
    https://www.cibc.com/content/dam/personal_banking/advice_centre/tax-savings/landlords-en.pdf  
  2. Statistics Canada -
    https://www150.statcan.gc.ca/n1/pub/46-28-0001/2023001/article/00002-eng.htm 
  3. Statistics Canada -
    https://www150.statcan.gc.ca/n1/daily-quotidien/221102/dq221102b-eng.htm 
  4. Bank of Canada -
    https://www.bankofcanada.ca/2022/01/staff-analytical-note-2022-1/#chart4 
  5. Canadian Real Estate Magazine -
    https://www.canadianrealestatemagazine.ca/news/the-relationship-between-inflation-and-real-estate-335369.aspx 
  6. HGTV.ca -
    https://www.hgtv.ca/expert-tips-that-will-help-you-become-a-homeowner-before-40/ 
  7. Wowa.ca -
    https://wowa.ca/rental-property-mortgage 
  8. CTV News -
    https://www.ctvnews.ca/business/selling-a-home-how-to-know-if-you-qualify-for-a-capital-gains-exemption-1.6249394 
  9. MPA Magazine -
    ​​https://www.mpamag.com/ca/mortgage-industry/guides/real-estate-investing-in-canada-where-to-put-your-money/447803 
  10. Canada Real Estate Association (CREA) -
    https://stats.crea.ca/en-CA/ 
  11. The Canadian Press -
    https://ca.finance.yahoo.com/news/more-canadians-turn-short-term-151015862.html 
  12. TurboTax Canada -
    https://turbotax.intuit.ca/tips/the-ultimate-guide-to-the-tax-implications-of-renting-your-property-on-airbnb-14945
  13. Statistics Canada -
    https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2023008-eng.htm
Read

New property listed in Na Departure Bay, Nanaimo

I have listed a new property at 2738 Keighley Rd in Nanaimo. See details here

Discover your new home in the heart of Village on the Green, a thriving 55+ community. Nestled beside the pristine fairways of Nanaimo's Country Club golf course, this stair-free patio home is a gem awaiting its lucky owner. Village on the Green offers a secure, well-maintained environment with underground utilities and a central clubhouse. Your furry friends are welcome too, making this the perfect place to call home. This spacious three-bedroom, two-bathroom patio home is move-in ready and in high demand. The sun-drenched open floor plan and expansive windows create a bright and inviting atmosphere. Newly updated flooring and two cozy natural gas fireplaces add to the charm. The kitchen is a chef's dream, featuring abundant cabinetry, modern stainless steel appliances, fresh countertops, and an attractive backsplash. The double sink adds convenience, and a family room and nook provide stunning golf course vistas. Step onto the private rear deck from the family room, where you can relish alfresco dining and entertain while taking in the breathtaking surroundings. For more formal occasions, the dining and living rooms are just around the corner. Nearby, you'll discover a full bathroom, a second bedroom, and a versatile third bedroom or den. The king-sized primary bedroom boasts golf course views, a walk-in closet, and an ensuite with a heated floor. This home comes equipped with natural gas-forced air heating, a crawl space, and a double garage, providing convenience and storage solutions. Ample driveway space ensures your guests feel welcomed. Don't miss out on this incredible opportunity. Act quickly, and make this fantastic property yours today!

Read

New property listed in Na South Nanaimo, Nanaimo

I have listed a new property at 547 Nova St in Nanaimo. See details here

Introducing a well-cared-for home boasting a spacious two-bedroom in-law suite with private entry and separate laundry. This home is located on a large corner lot just steps away from a high school and an elementary school, as well as bus service, parks, and hiking trails. The main level provides three bedrooms and a nearby four-piece bathroom. There is laminate flooring and large windows for plenty of natural light. The kitchen and dining area lead directly to a massive sun-drenched balcony that is perfect for entertaining or meals alfresco. The in-law suite on the lower level is complete with a huge living and dining area, two bedrooms, a kitchen and a second four-piece bathroom. Additional features include a flat and fully fenced yard that's perfect for kids and pets, plus a 276 sq ft workshop. There are vinyl windows, a new roof and new vinyl siding. The amazing tenants would love to stay, but a family could also very easily move into this home and occupy both levels as the adjoining staircase is ready. Don’t forget the RV parking and bonus backyard lane access for added convenience and potential carriage house option. Hurry, act now! All measurements and data are approximate and should be verified.

Read

Top 7 Tips To Attract the Best Offers for Your Home

Not long ago, home sellers were in their heyday, as historically-low mortgage rates triggered a real estate buying frenzy. However, the Bank of Canada shut down the party when it began raising interest rates last year.1

Now, it’s not as simple to sell a home. While pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are much more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value.

The reality is, home inventory remains low, so most properties will still sell with some basic prep, the right price, and a good real estate agent. But owners who go the extra mile are more likely to sell faster and for a higher amount.

If you have plans to sell your home and want to net the most money possible, this list is for you. Here are our top seven strategies to attract the best offers and maximize your real estate returns.


1. UNDERGO A PRE-LISTING INSPECTION

Many homebuyers hire a professional to complete a home inspection before they close. But did you know that a seller can order their own inspection, known as a pre-listing inspection, before they put their home on the market? 

Having a pre-listing inspection on hand and ready to share shows interested buyers that you’re committed to a transparent transaction. This can help you market your home, strengthen your negotiating position, and minimize roadblocks to closing.2 

Of course, it’s always possible that a pre-listing inspection—which looks at the home’s major systems and structures, among other things—could turn up a significant problem. This does carry some risk, as you’ll be required to either fix or disclose any issues to potential buyers. However, in most cases, it’s better to know about and address deficiencies upfront than to find out mid-transaction, when it could cost you more in the form of repair credits, a delayed closing, or a cancelled sale.

We can help you decide if a pre-listing inspection is right for you. And if it identifies any concerns, we can advise on which items need attention before you list your home.


2. CONSIDER STRATEGIC UPGRADES

Embarking on major renovations before putting your home on the market doesn’t always make financial (or logistical) sense. However, certain upgrades are more likely to pay off and can help elevate your home in the eyes of buyers.

For example, new flooring can generate up to a 150% return on investment at resale and a countertop upgrade could pay for itself.3  Similarly, research shows landscaping features can increase a home’s value by up to 12%.4

Often, even simpler and less expensive fixes can make a big difference in how your home comes across to buyers. A fresh coat of paint in a neutral colour, modern light fixtures and hardware, and new caulk around the tub or shower can help your property look its best.

But before you make any changes to your home, reach out. We know what buyers in your neighbourhood are looking for and can help you decide if a particular investment is worthwhile.


3. HIRE A HOME STAGER

To get standout offers, you need potential buyers to fall in love with your home—and they’re much more likely to do so if they can envision themselves in the space. 

That’s where home staging comes in. Staging can include everything from decluttering and packing away personal items to bringing in neutral furniture and accessories for showings and open houses. 

According to the U.S.-based National Association of Realtors, home staging can both increase the dollar value of home offers and help a property sell faster. In fact, 53% of seller’s agents agree that staging decreases the amount of time a home spends on the market, and 44% of buyer’s agents see higher offers for staged homes.5 

There’s plenty of strategy and research behind the process, so it’s smart to consider a professional. Reach out for a connection to one of our recommended home stagers who can help your property show its full potential.


4. EMPLOY A COMPETITIVE PRICING STRATEGY

While it’s tempting to list your property at the highest possible price, that approach can backfire. Homes that are overpriced tend to sit on the market, which can drive away potential buyers—and drive down offers.6

Alternatively, if you price your home competitively, which is either at or slightly below market value, it can be among the nicest that buyers see within their budgets. This can ultimately lead to a higher sales price and fewer concessions.

To help you list at the right price, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that comparable properties have recently sold for in your neighbourhood.

Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). Combined with our local market insights, we’ll help you find that sweet spot that will attract the best offers while maximizing your profit margin.


5. OFFER ALTERNATIVE FINANCING

Conventional mortgages, while widely used, may not be accessible to everyone. For example, higher mortgage rates and home prices have made it difficult for some homebuyers to pass the required mortgage stress test.

Consequently, certain alternatives, like vendor take-back (VTB) mortgages, are becoming increasingly popular.7 A VTB mortgage is a unique financing arrangement in which the seller of a property provides a loan to the buyer for all or a portion of the purchase price.

Buyers who don’t qualify for a traditional mortgage can be highly motivated to purchase from a seller offering a VTB loan. Sellers, consequently, can benefit too, by commanding a higher price or collecting more interest on their capital than they could from a standard investment. Depending on the seller's circumstances, there may also be certain tax advantages.8

It’s important to note, however, that there are risks involved. Therefore, both buyers and sellers should seek legal and financial advice before entering into a VTB mortgage agreement to ensure all aspects are properly structured and understood. If interested, we can refer you to the appropriate professionals for help.


6. USE A PROVEN PROPERTY MARKETING PLAN

Gone are the days when it was enough to put a “for sale” sign in your yard and place a listing on the MLS. A strategic marketing plan is now essential to get your home in front of as many interested and qualified buyers as possible. 

The truth is, buyers who don’t know about your house can’t make an offer. That’s why we utilize a multi-step approach to marketing that starts with identifying your target audience, effectively positioning your home in the market, and communicating its unique value. We then use a variety of distribution channels to connect with potential buyers and performance-based metrics to monitor and improve our campaign results.

Our proven approach can have a big impact on the success of your sale. Reach out to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home.


7. WORK WITH AN AGENT WHO UNDERSTANDS YOUR AREA

To get the best offers possible, you need a real estate agent who knows your area inside and out. 

Any agent can pull comparable sales data, but in a quickly-evolving market, even the latest comps can lag the current market reality. We have our fingers on the pulse of the local market because we’re working directly with sellers like you. We also represent local buyers who are active in the market, searching for homes like yours.

That puts us in an ideal position to help you price your home for a quick sale and maximum profit. And since we hear first-hand what local buyers want, we can help you prep your home to broaden its appeal and highlight its most-coveted features. Additionally, we can use our extensive network of local agents to solicit feedback and get your home in front of more potential buyers. 

All of these factors can add up to a significant difference in your profit: According to a U.S.-based study, in 2021, the typical home sold by owner went for $225,000 compared to a median price of $330,000 for agent-assisted home sales.9


LET’S GET MOVING

Are you ready to get a great offer for your home? Our multifaceted approach can help you maximize your real estate returns. Reach out for a free home value assessment and customized sales plan to get started!


The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.


Sources:

  1. National Post -
    https://nationalpost.com/moneywise-pro/high-interest-rates-are-still-a-problem-for-potential-homebuyers-here-is-advice-for-navigating-the-real-estate-market
  2. Bankrate -
    https://www.bankrate.com/real-estate/prelisting-inspection/
  3. RE/MAX Canada -
    https://blog.remax.ca/best-home-renovations-biggest-roi/
  4. Journal of Real Estate Research -
    https://www.researchgate.net/publication/5142154_Landscaping_and_House_Values_An_Empirical_Investigation
  5. National Association of Realtors -
    https://www.nar.realtor/infographics/staged-for-success 
  6. The Balance -
    https://www.thebalancemoney.com/looking-twice-at-overpriced-homes-1798671
  7. Real Estate Magazine -
    https://realestatemagazine.ca/the-return-of-the-vendor-take-back-mortgage/
  8. RE/MAX Canada -
    https://blog.remax.ca/how-to-take-advantage-of-the-vendor-take-back-mortgage/
  9. National Association of Realtors -
    https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics
Read

New property listed in Na North Nanaimo, Nanaimo

I have listed a new property at 309 6715 Dover Rd in Nanaimo. See details here

Grab this opportunity to own an affordable two-bedroom, two-bath condo in North Nanaimo priced below the BC accessed value. Located on Dover House's third floor, it offers in-suite laundry, a balcony overlooking Pioneer Park, and proximity to beaches, parks, and the best North Nanaimo amenities. A bus stop near the secured, renovated entrance adds convenience. The building features an updated elevator and hallways. The unit's layout smartly separates the king-sized primary and second bedrooms with a combined living-dining area. Bathrooms are next to each bedroom, and the kitchen smoothly integrates with the dining room. Ideal for small families, first-time buyers, downsizers, or investors, with no age limit and rentals allowed. Nearby are McGirr Elementary, and Dover High School, a hallway storage unit, and ample parking. No pets, please.

Read

I have sold a property at 124 Royal Oak Pl in Nanaimo

I have sold a property at 124 Royal Oak Pl in Nanaimo. See details here

Welcome to this remarkable home, skillfully designed to blend comfort, elegance, and functionality. Upon entry, you're introduced to an open-concept living area graced with a vaulted ceiling and an abundance of natural light. The living space, highlighted by a custom floor-to-ceiling ledge stone natural gas fireplace and beautiful hardwood floors, offers a distant ocean view. The home’s early bird will love the gorgeous sunrises. This 3,257 sqft home is on a large, flat, fully fenced, landscaped corner lot. There is ample parking and an inviting patio space, perfect for entertaining or relaxing, plus a charming veranda. The heart of this spotless home is its stunning kitchen, furnished with quartz countertops, stainless steel appliances, under cabinet lighting, and a center island. The dining area flows seamlessly onto a balcony equipped with a natural gas BBQ hook-up, making outdoor dining an absolute pleasure. On the upper level, two spacious bedrooms share a modern, bright 4-piece bathroom. The main level features a king-sized primary suite with his-and-her closets and a spacious 5-piece ensuite boasting a separate shower stall and a deep soaker tub. There is a second bedroom on this level too. An energy-efficient natural gas-forced air furnace keeps you warm in the winter, and for those hot summer days, central air conditioning ensures your comfort. You'll appreciate the home's proximity to highway access, nearby bus service, and schools. Outdoor enthusiasts will love the nearby Westwood Lake, a local hotspot for mountain biking, hiking, and beach activities. Adding to this home's allure is a self-contained 2-bedroom legal suite located on the lower level. This fully furnished suite comes equipped with its own laundry amenities, a private entrance, and a separate driveway accessible from a different road than the main house - ensuring the utmost privacy. Hurry, Act Now!

Read

New property listed in Na North Nanaimo, Nanaimo

I have listed a new property at 5558 Cliffside Rd in Nanaimo. See details here

In North Nanaimo's Noble Ridge, a corner home offers sweeping ocean & mountain views across its three levels. This sanctuary has lush gardens, water features, & outdoor spaces family and pets. Unique side-street garage enhances its charm. Each of its three bedrooms is on a different floor for utmost privacy. The main floor boasts hardwood floors, large windows, a fireplace, two balconies, and a kitchen with granite counter tops, modern stainless steel appliances & more. The primary bedroom offers an ensuite & balcony access. Upstairs has a bedroom, office, family room & media space; a third balcony provides more sunset views. Downstairs, a third bedroom, bathroom, storage & rec room—potential for a home business. Features include a heat pump, security, irrigation, double garage & RV parking. Close to Linley Valley & North Nanaimo's best amenities. All data and measurments are approximate and should be verified.

Read

7 Common Homebuyer Regrets (And How To Avoid Them)

To avoid buyer's remorse, be sure to consider your future self when shopping for a home. 

Most new homebuyers don't regret becoming homeowners. In fact, according to a recent survey by Zolo, 80% of Canadians who purchased a home during the pandemic say they're glad they bought their current homes.1 But that doesn't mean newly-minted homeowners don't have any regrets about their buying choices. 

On the contrary, research shows that even the most-satisfied homeowners would change some aspects of their home purchase if given the opportunity.2 Some question their decision to move to a neighbourhood they still don't love. Others wish they had been less picky about where they lived so they could have paid less. Many are afraid they overspent or think they sacrificed too much in their rush to buy a home. 

According to a new survey by Mortgage Professionals Canada, nearly 80% of Canadians still see real estate as a favourable long-term investment. But a growing number of Canadians also admit to being more financially stressed in the short-term due to lingering fallout from inflation.3  

Here are some of the most common homebuyer regrets we see, along with our professional advice on how to avoid them.


REGRET #1: Spending More Than Necessary 

No one wants to overpay for their new home purchase (and, luckily, with the right guidance, doing so is avoidable). But even if you've secured a winning purchase price, there are still plenty of ways to accidentally overspend. 

One of the most common ways to overpay? Choose the wrong mortgage. In fact, in today's higher-rate environment, this can be one of the riskiest mistakes a new buyer can make. 

According to another survey by Zolo, for example, 75% of Canadian homebuyers leave money on the table by not bothering to shop around for the best rate.4 Depending on your mortgage terms, this mistake alone could cost you tens of thousands of dollars over the life of your loan.  

Many Canadians also put off learning more about their mortgage options and don't take the time to fully understand their loans. As a result, more than a third of survey respondents told researchers at TD Bank last year that they were “confused” about how rising rates would affect them.5 

Lesson LearnedAs long as you stick to what you can afford, buying a home can be a boon for your financial health. The longer you live in it, for example, the more your home is likely to appreciate in value and boost your long-term savings. 

But to get the most value from your purchase, it's worth your time to compare financing options and shop around for the best deal. We also recommend getting a mortgage pre-approval before you start your home search so you know what's within reach. We can refer you to one of our trusted lending partners for help.


REGRET #2: Rushing Into a Home Purchase

In a competitive housing market, it's often necessary to act fast to secure a home. But don't let a need for speed tempt you into making an offer before you've thought through or fully vetted a new property.   

Rushing into a home purchase isn’t just risky, it's also one of the most commonly cited sources of homebuyer regret. According to a survey of U.S. homebuyers, for example, more than 1 in 4 felt remorse over how quickly they sped through the purchase process.2 

Getting swept away by your emotions can also lead to buyer's remorse. If you've found a home you love and are competing with other buyers, it can be tempting to overlook key details or bid more than you can afford. That's one reason it helps to have a skilled professional by your side to calmly guide you through the process and ensure you act with reason, rather than emotion.

Lesson Learned:  Buying a home is exciting. But if you don't keep your emotions in check or act too impulsively, you could make poor choices in the moment that are hard to undo later. 

To avoid making last-minute decisions that could backfire, know what you want, what you need, and what you can afford before you start your home search. We can help you set priorities so you’ll be able to move forward with confidence when the time is right.


REGRET #3: Miscalculating the Costs of Homeownership

Though real estate is a great long-term investment, it can be pricey in the short-term, often surprising homeowners who aren't prepared for it. According to some estimates, for example, annual maintenance could cost as much as 1% or more of your home's purchase price.6 Some buyers also forget to factor in additional ownership expenses, such as property taxes, insurance, and repairs.

Failing to think through the costs of homeownership is one of the most common sources of homebuyer regret. According to the survey of U.S. homebuyers, for example, nearly half of the buyers who regret their purchase said they underestimated how much they would spend to live in it.2 Similarly, Zolo's March 2023 survey of Canadian homeowners found that nearly half of recent homebuyers didn't bother to create a budget before they bought their homes.4

However, some homes cost more to live in and maintain than others. So even if you're certain that you can afford the average cost of homeownership, that doesn't necessarily mean that every home in your price range will fit neatly into your budget. For example, very old homes with unique maintenance requirements could be extra pricey to keep up. Similarly, homes with high condo fees or above-average utility bills could also eat into your monthly budget. 

Lesson Learned:  A home should help you build your wealth, not drain it. So it's important to factor in all the potential costs of living in a home—not just obvious ones like your mortgage payment and taxes. To ensure you don't get overextended, add up your estimated maintenance and repair costs, as well as any miscellaneous expenses that are unique to a particular home. 

We can help you with these estimates—and, if needed, present you with some less-costly alternatives.


REGRET #4: Underestimating the Time Required To Maintain or Renovate a Home

One of the most joyful aspects of homeownership is getting to relax in a home that's all your own. But if a home is too high maintenance, then you may not have time to savour it. 

Many homeowners love to spend their weekends puttering in their gardens or undertaking home improvement projects. But if that's not you, then you may not like living in a home with a big yard or with high-maintenance features, like a pool.

According to another survey of U.S. homebuyers, for example, 47% of buyers who feel some regret about their home purchase complain that too much maintenance and upkeep is required.7 

Similarly, buyers who purchase fixer-uppers are often surprised by how much time it takes to rehab their new homes. Although buying a fixer-upper is a great way to save on the purchase price, you could come to resent it if it eats up all your free time.

Lesson Learned:  Renovation and maintenance projects are often time-consuming and stressful. So beware of committing to a property that requires too much of your attention if you don't have the time or patience for it. With that said, home improvement projects can also bring a lot of joy and satisfaction to owners who like rolling up their sleeves.

We can talk through the realities of homeownership with you and help you choose a property that will fit your personality and schedule.


REGRET #5: Ignoring or Skipping a Home Inspection

It’s easy to get swept up in the excitement of buying a home. Sometimes, buyers will agree to skip a home inspection to sweeten their offer in a competitive market. In fact, according to Zolo's survey, only 36% of Canadian homebuyers hired a home inspector last year.4  However, if you skip out on a home inspection, you could come to regret it.

When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems before you buy it. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers. 

But even the most thorough home inspection isn't going to be worth much if you don't take the time to carefully consider it. If at all possible, make sure you’re on-site during the inspection so you can observe and ask questions. And don’t forget to re-evaluate any repairs that the seller agrees to make to ensure they’ve been properly completed prior to closing.

Lesson Learned:  A home inspection can reduce your risk and save you money in the long run. But to maximize its effectiveness, you will need to be an active participant in the process.

We’d be happy to share a list of experienced and trustworthy home inspectors in our area. And when the inspection report is complete, we can help you decide if the purchase is worthwhile and negotiate any relevant seller concessions and repairs.


REGRET #6: Choosing a Home That Doesn't Fit 

Homeownership is often a better investment if you’re willing to stay put for at least five years.8 But if your newly purchased home isn’t a good fit, then you may not want to stick around that long. 

Many homeowner complaints come down to simple lifestyle issues: Although a mismatch may seem small at first, the problems can magnify if you make so many compromises that they interfere with your quality of life.

Or, sometimes homebuyers can fall in love with a beautiful home and forget about practicalities. For example, a stunning kitchen can’t replace a needed bedroom or bathroom. And a sparkling pool may sit empty if the home requires a lengthy commute to your office.

Make sure you set some guardrails during your home purchase so you don’t over-compromise or accidentally prioritize your wants over your needs.

Lesson Learned:  When you’re dealing with limited inventory or a fixed budget, it may be necessary to sacrifice some items on your home wish list. In fact, a newly released survey by CIBC found that nearly a quarter of hopeful homebuyers have revised their expectations of a home.9 But if you fail to secure your must-haves, you could come to regret your home choice.

We can help you avoid an ill-fitting home purchase by working with you to set (and stick to) priorities and parameters before you begin your search. 


REGRET #7: Purchasing Without Professional Help

Another path to homebuyer regret? Foregoing the expert guidance and market insight that you can only get from a licensed real estate agent.

Buying a home without professional representation can be extremely risky. Therefore, it’s no surprise that most Canadian homebuyers enlist the help of an agent when purchasing a home.4 And the vast majority find their assistance to be invaluable: According to a survey of U.S. homebuyers, 89% say they would use their agent again or recommend them to others.10

Real estate is hyperlocal and extremely fluid—especially these days when the market is in constant flux. So it pays to have a knowledgeable expert by your side who can guide you through an often-complicated process. 

We can help you avoid expensive mistakes that could lead to buyer’s remorse, all while making your home purchase as seamless and stress-free as possible. And since the home seller typically pays our commission, there’s no added expense for you!

Lesson Learned:  When you work with a real estate agent, you benefit from a wealth of expertise and on-the-ground insight that you can't get anywhere else. We’ll help you steer clear of the missteps that so many homebuyers make, so you can focus on enjoying your new home instead of questioning your choices down the road.

The best part? Since the majority of home sellers pay us a commission at closing, in most cases, we offer our invaluable guidance and assistance at no additional cost to you!


BOTTOMLINE

No one wants to look back on their home purchase and realize they made a big mistake. We can help you avoid the pitfalls so you can buy with confidence. To learn more about how we work to ensure our clients’ satisfaction, reach out today to schedule a free consultation.


The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.


Sources:

  1. Zolo -
    https://www.zolo.ca/blog/housing-market-pandemic
     
  2. Anytime Estimate -
    https://anytimeestimate.com/research/american-home-buyers-2022/
     
  3. Mortgage Professionals Canada -
    https://mortgageproscan.ca/docs/default-source/consumer-reports/2023/march-2023_mpc-report_final_en.pdf?sfvrsn=c6b39b60_2 
  4. Zolo -
    https://www.zolo.ca/blog/canada-housing-market-report   
  5. TD Bank -
    https://stories.td.com/ca/en/news/2022-06-29-td-real-estate-survey-reveals-38-25-of-canadians-are-confused 
  6. Scotiabank -
    https://www.scotiabank.com/ca/en/personal/advice-plus/features/posts.how-much-should-i-budget-for-home-maintenance-costs.html
  7. Hippo -
    https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during
  8. Wealthsimple -
    https://www.wealthsimple.com/en-ca/magazine/buying-vs-renting-your-home
     
  9. CIBC -
    https://cibc.mediaroom.com/2023-06-05-Canadians-dream-of-homeownership-persists,-despite-affordability-concerns-CIBC-Poll
  10. National Association of Realtors -
    https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers
Read

New property listed in Na South Jingle Pot, Nanaimo

I have listed a new property at 124 Royal Oak Pl in Nanaimo. See details here

Welcome to this remarkable home, skillfully designed to blend comfort, elegance, and functionality. Upon entry, you're introduced to an open-concept living area graced with a vaulted ceiling and an abundance of natural light. The living space, highlighted by a custom floor-to-ceiling ledge stone natural gas fireplace and beautiful hardwood floors, offers a distant ocean view. The home’s early bird will love the gorgeous sunrises. This 3,257 sqft home is on a large, flat, fully fenced, landscaped corner lot. There is ample parking and an inviting patio space, perfect for entertaining or relaxing, plus a charming veranda. The heart of this spotless home is its stunning kitchen, furnished with quartz countertops, stainless steel appliances, under cabinet lighting, and a center island. The dining area flows seamlessly onto a balcony equipped with a natural gas BBQ hook-up, making outdoor dining an absolute pleasure. On the upper level, two spacious bedrooms share a modern, bright 4-piece bathroom. The main level features a king-sized primary suite with his-and-her closets and a spacious 5-piece ensuite boasting a separate shower stall and a deep soaker tub. There is a second bedroom on this level too. An energy-efficient natural gas-forced air furnace keeps you warm in the winter, and for those hot summer days, central air conditioning ensures your comfort. You'll appreciate the home's proximity to highway access, nearby bus service, and schools. Outdoor enthusiasts will love the nearby Westwood Lake, a local hotspot for mountain biking, hiking, and beach activities. Adding to this home's allure is a self-contained 2-bedroom legal suite located on the lower level. This fully furnished suite comes equipped with its own laundry amenities, a private entrance, and a separate driveway accessible from a different road than the main house - ensuring the utmost privacy. Hurry, Act Now!

Read

New property listed in Na North Nanaimo, Nanaimo

I have listed a new property at 309 6715 Dover Rd in Nanaimo. See details here

Don't miss your chance to secure this affordable, two-bedroom, two-bath condo in North Nanaimo, which promises to be snapped up quickly. Situated on the third floor of Dover House, it boasts a large in-suite laundry room and a covered balcony offering views of Pioneer Park. The location is hard to beat, with beaches, parks, and all of North Nanaimo's best amenities just a short walk away. For those relying on public transport, a bus stop is conveniently positioned outside the building's secure entrance and recently renovated foyer. The building boasts a range of updates, including modernized hallways and a renovated elevator. The unit's well-thought-out floor plan promises to impress the next lucky owner, combining living and dining areas to separate the king-sized primary and second bedrooms. Each bedroom is next to a bathroom for maximum convenience, and the kitchen effortlessly opens into the dining room. This condo perfectly suits the needs of small families, first-time property buyers, those looking to downsize, or investors! There is no age restriction, and rentals are permitted. The local schools are McGirr Elementary and Dover High. Extra features include a nearby hallway storage unit and ample parking. No pets, please.

Read

Renovate or Relocate? 3 Questions To Help You Decide

Does your current home no longer serve your needs?

If so, you may be torn between relocating to a new home or renovating your existing one. This can be a difficult choice, and there’s a lot to consider—including potential costs, financial implications, and quality of life. 

A major remodel can be a major commitment. From hiring contractors to selecting materials to managing a budget, it can take a tremendous amount of time and energy—not to mention the ordeal of living through construction or relocating to a temporary residence.

On the other hand, moving is notoriously taxing. In fact, in one survey, 60% of respondents viewed moving as “one of life’s most stressful experiences.”1

So which is the better option for you? Let’s take a closer look at some of the factors you should consider before you decide.


1. What Are Your Motivations for Making a Change?

It’s possible that some of the limitations of your current home can be addressed with a renovation, but others may require a move. 

Renovate

Certain issues, like dated kitchens and bathrooms, are fairly easy to remedy with a remodel—and the results can be dramatic. In many cases, a relatively minor renovation can significantly increase your enjoyment of your home. 

Other shortcomings can be more challenging to fix but are worth exploring so that you know your options. For example, if your home feels cramped or it lacks certain rooms, you might be able to make changes like installing an extra bathroom, adding a dedicated office, or finishing an attic or basement. You may even be able to build an accessory dwelling unit or extension to accommodate a multi-generational family. 

However, the feasibility and cost of these larger changes will depend on factors ranging from zoning and permitting to your home’s current layout. Speaking with an architect or a contractor can help you make an informed decision. Let us refer you to one of our trusted partners to ensure you receive the best possible service.

Relocate

Of course, sometimes, even rebuilding your home from the ground up wouldn’t solve the problem. For example, moving may be the only solution if you’ve switched jobs and now face a lengthy commute or if you need to live closer to an aging family member. 

Conversely, if the shift to remote work has opened up your location options, you may wish to seize the opportunity to relocate to a new locale. In fact, a 2022 survey of Canadian workers found that 1 in 10 respondents had moved to a new community due to the flexibility of remote work.2  

Moving may also be the best option, even when you’re happy with your geographic location. A local move may make sense if you’re looking for a larger backyard or significantly more space. Similarly, some frustrations—like living on a busy street or a long way from a grocery store—can’t be addressed with a renovation. We are well-versed in this area and can help you determine whether another neighbourhood might suit you and your family better.


2. Which Option Makes the Most Financial Sense?

Renovating and relocating both come with costs, and it’s wise to explore the financial implications of each choice before you move forward.

Renovate

The costs of a renovation can vary widely, so it’s vital to get several estimates from contractors upfront to understand what it might take to achieve your dream home. 

Be sure to consider all of the potential expenditures, from materials and permits to updates to your electrical and plumbing systems. It’s also prudent to add 10-20% to your total budget to account for unexpected issues.3  If you plan to DIY all or part of your renovation, don’t forget to factor in the value of your time.

Renovations can also come with hidden expenses. These might include:

  • Additional home insurance
  • Short-term rental or hotel if you need to move out during the renovation
  • Storage unit for possessions that need to be out of the way
  • Dining out, laundry service, and other essentials if you can’t access appliances at home

Remodelling choices can also impact the long-term value of your home. Some projects may increase your home’s value enough to outweigh your investment, while others could actually hurt your home’s resale potential. 

For example, although you may enjoy the additional living space, garage conversions aren’t always popular with buyers.4 New flooring, on the other hand, can bring a return of up to 150%  at resale.5  The specific impact of a renovation will depend on a number of factors, including the quality of work, choice of materials, and buyer preferences in your area. We can help you assess how a planned project is likely to affect the value of your home.

Relocate

The cost of a new home, of course, will vary significantly depending on the features you’re seeking. However, you may find that it’s cheaper to move to a home that has everything you want than it is to make major changes to your existing one. 

For example, adding a downstairs bedroom suite or opening up a closed floor plan could cost you more than it would to buy a home that already has those features. On the other hand, simpler changes and updates probably won’t outweigh the expense of a relocation.

If you’re considering a move, speak with a real estate agent early in the process. We can assess your current home’s value and estimate the price of a new home that meets your needs. This will help you set an appropriate budget and expectations. 

It’s important to remember that the cost of buying a new home doesn't end with the purchase price. You’ll also need to account for additional expenditures, including closing and moving costs and the fees involved with selling your current home. And don’t forget to compare current mortgage rates to your existing one to understand how a different rate could impact your monthly payment. 

However, keep in mind that the interest rate on a mortgage is typically lower than the rate on other loan types—so you could pay less interest on a new home purchase than you would on a large renovation.6 We’re happy to refer you to a lending professional who can help you explore your financing options.


3. Which Option Will Be the Least Disruptive to Your Life?

A final—but critical—consideration is the time and hassle involved with each option since both renovating and relocating involve a significant amount of each.

Renovate

Don’t underestimate the time and effort involved in a large-scale renovation, even if you choose to hire a general contractor. You will still need to consider and make a number of decisions. For example, even a fairly basic kitchen remodel can involve a seemingly-endless selection of cabinets, tile, countertops, paint colours, fixtures, hardware, and appliances.

And don’t assume that you will get out of packing and unpacking if you stay in your current home. Most renovations—from kitchens to bathrooms to flooring replacement—require you to remove your belongings during the construction process.

The time frame for a remodel is another consideration. High demand for contractors and ongoing material shortages can mean a long wait to get started. And once the project is in progress, you can expect that it will take a couple of weeks to several months to complete.7

Contemplate whether you will be able to live in your home while it’s being renovated and how that would impact your routine. For example, being without a functional kitchen for months can be frustrating, inconvenient, and expensive (since you’ll need to purchase prepared food). Remember that delays are inevitable with construction, and consider what additional challenges they could present. 

Relocate

Of course, finding a new home and selling your current one also takes a significant amount of time and energy. However, in many cases, the timeline can still be shorter than a major renovation. 

Once you find a home that works for you, it typically takes between 30 and 60 days to close, depending on the terms of the contract.8  Plus, you can look for your dream home without the inconvenience of living in a construction zone.

However, a move comes with its own stress and disruptions. If you’re selling your current home, you’ll need to prep it for the market and keep it ready and available for showings. Once you’ve found a place, the packing and moving process takes time and work, as does settling into a new home—especially if it’s in a different neighbourhood. 

Fortunately, we are here to help make the moving process as easy as possible, if you choose to pursue that route. We can help you find a property that meets all your needs, sell your current one for top dollar, and refer you to some excellent moving companies that can help pack and transport your belongings.


WHATEVER YOU DECIDE, WE CAN HELP

The decision to renovate or relocate can be overwhelming—but this choice also presents a powerful opportunity to improve your quality of life.

There’s a lot to consider, from how renovations could impact your home’s resale value down the road to your neighbourhood’s current market dynamics. We’re happy to help you think through your options. Get in touch for a free consultation!


The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.


Sources:

  1. Global Newswire -
    https://www.globenewswire.com/news-release/2019/6/26/1874530/0/en/Canadians-Identify-Moving-as-One-of-Life-s-Most-Stressful-Experiences-for-Third-Year-in-a-Row.html
  2. Future Skills Centre -
    https://fsc-ccf.ca/research/the-shift-to-remote-work/
  3. HGTV Canada -
    https://www.hgtv.ca/reno-realistic-timeline-budget/
  4. National Post -
    https://nationalpost.com/life/design-trends-garages-are-suddenly-the-new-rec-room
  5. RE/MAX -
    https://blog.remax.ca/best-home-renovations-biggest-roi/
  6. RATEDOTCA -
    https://rates.ca/guides/mortgage/mortgage-vs-heloc
  7. House Beautiful -
    https://www.housebeautiful.com/home-remodeling/a25588459/home-renovation-timeline/
  8. Ratehub.ca -
    https://www.ratehub.ca/blog/how-to-buy-a-house-in-canada/
Read

New property listed in Na South Jingle Pot, Nanaimo

I have listed a new property at 124 Royal Oak Pl in Nanaimo. See details here

Discover this elegant 3,257 sqft home, merging comfort and style. It boasts an open living area with a vaulted ceiling, hardwood floors, and a custom gas fireplace. Enjoy ocean views and stunning sunrises from your home. The spacious corner lot offers ample parking, a landscaped yard, a relaxing patio, and a veranda. The kitchen shines with quartz counters, stainless steel appliances, and a central island. Two bedrooms share a bright bathroom upstairs, while the main level offers a king-sized suite with a 5-piece ensuite. There is another bedroom or den on this level too. For convenience, air conditioning and a gas furnace are included. Close to highways, bus routes, schools, and Westwood Lake for outdoor fun. An independent 2-bedroom fully furnished legal suite adds to the appeal. Don't forget this home's on-demand natural gas hot water system and the workshop located at the end of the garage. Make your move now!

Read
MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.