Can I sell my rental property?

Well the easy answer is yes, of course you can sell your rental property. However there are several factors to keep in mind that will impact how quickly and for what price it will sell.

1. Is the property on a fixed term lease or month to month tenancy? If the property is on a fixed term lease, then the property can be sold, but the tenants cannot be removed prior to the expiration of their lease (as long as they are in good standing). If it is a month to month tenancy, the tenants can be given notice under certain circumstances. Your Realtor will be able to advise you on the specifics of your situation.

2. Security and Pet Deposits – if the tenant is to stay in the property then these deposits will be transferred, with statutory interest, to the Buyer upon completion. These monies are legally the property of the tenant and Residential Tenancy laws and regulations must be followed with due care.

3. Access to property – keeping your tenants happy with both you and your Realtor is the best way to gain access for potential buyers to view the property. Your Realtor should have a plan of action which includes following Residential Tenancy law and treating the tenants with the upmost respect. After all, it is legally your property, but it is their Home that you are selling.

For more information on this or any other real estate matters, please call Melissa at 604-837-2983.

Fraser Valley statistics (February 2012)

Fraser Valley Market Stats

_With the spring market arriving very soon I often get asked what the
statistics are for the region._

Here are a few to impress your friends with:

The total active listings in February were 9.037 which is up 4% from
February 2011.

Average price is up 3% to $495,345 (this is an average of everything, from
mobile homes to multimillion dollar estates).

Average time a property is on the market is 53 days which is an eternity to
keep your home in tip top shape (however an agressive marketing plan can
reduce this number significantly).

The most impressive statistic to use at a cocktail party is this one – did
you know that most homes will currently sell for 98% of the listing price if
priced properly?

As at February 29, 2012 there were 2,066 residential sales, down 2% from the
previous year. A significant reduction when you take into consideration the
extra day we had in February.

And lastly, if no more homes were listed it would take 7 months to sell off
the entire inventory.

Hopefully these statistics will help you make sense of our ever changing
market.

Provincial programs to aid in First Time Home Purchase

Here are some more first time home buying incentives, this time issued by the Province of British Columbia.

Property Transfer Tax – if you purchase a home in British Columbia, the government levies a tax of 1% of the first $200,000 and 2% of the balance.

First Time Home Buyer Program – for qualified people and properties this tax is waived.

The person must: be a Canadian Citizen or Permanent Resident, have lived in British Columbia for 1 year immediately preceding the purchase (or have filed 2 tax returns as a British Columbia resident in the last 6 years), and have never owned their  principle residence anywhere in the world.

The property must be under $425,000 to qualify for the full exemption.  From $425,000 – $450,000 a partial exemption can be applied.  Over $450,000 there is no exemption for first time home buyers.  The property must be less than 1.24 acres and you must occupy the property as your principal residence within 92 days of purchase and remain there until the first year is completed.

Call Melissa at 604-837-2983 if you wish to discuss your options for buying and selling property in British Columbia.

Federal Government Programs aimed at First Time Home Buyers

There are two Government of Canada programs that are currently in place to help First Time Home Buyers. I have summarized them below:

1) Home Buyers’ Tax Credit – A person who has not owned a home in the preceding 4 years can claim $5,000 on line 369 of the personal income tax form. This is a non-refundable tax credit – meaning that you can use this to reduce your tax, but will not receive a cash refund from it. This tax credit can be split between two or more eligible parties. The amount of the rebate depends on the tax bracket, but is generally $750. The property must be located within Canada and includes any sort of dwelling, but does not apply to lot purchases. You must move into the property within 1 year of purchase to be eligible.

2) Home Buyers Plan – A great way to save for your down payment is to do it through the Home Buyers Plan (“HBP”). The HBP allows you to withdraw your Registered Retirement Savings Plan (“RRSP”) balance, without penalty, for your down payment. The HBP requires that you “pay it back” over 15 years. This means you must make a contribution to your RRSP of 1/15th of the amount withdrawn yearly. If you do not make these contributions, then 1/15th is added to your income for that given year.

REQUEST TO REDUCE TAX DEDUCTIONS AT SOURCE (T1213) – This form can be used in conjunction with RRSP contributions to reduce the amount your employer is required to withhold from your earnings. By utilizing this form, you can build your downpayment through your RRSP while not missing a lot of money from your monthly paycheque.

You will be selling your garage also

If you will be placing your home on the market for sale, remember that your garage is an important part of your home.  Buyers will want to see it and it should be an appealing part of your home.

While your home is on the market for sale, do not use your garage to store packing boxes, they belong in a storage area.

Items that need to be in the garage, like your children’s bicycles, need to be out of the way and neatly stored in a rack or hung from hooks.

Make sure any exposed electrical wiring is ‘to code’ and secured.

Clean the windows, many times garage windows are missed.

Do not store gasoline powered mowers etc. or gasoline in cans in the garage.

Make sure the garage ‘smells good’, this only takes a few air freshener’s.

Remove any temporary shelving and any permanent shelving that is of poor quality.

Get rid of ‘old’ work benches (they also belong in the storage if you are taking them with you.

Does the inside of your garage need a new coat of paint?

Are all the light’s working?

Your garage should be appealing to allow your buyers to be creative!

What I learned this week about polybutylene piping

I was dealing with a buyer this week who was questioning whether or not to purchase a house that has polybutylene piping.  This plastic piping was used extensively from the 1970′s to mid 1990′s so there are many homes with this piping.  The issue is that they are prone to failing in time and have been known to flood the home.  Plumbers that we spoke to all had a varying response to the issue.  Some said change it now, and others recommended waiting until there is a problem.  Changing it now sounded like a pricey endeavour.

A second issue that I did not expect to come out is that home insurance costs rise significantly with this type of piping.  The insurance agent we consulted for information stated that due to the higher risk associated with polybutylene piping, the home insurance could be as much as twice the cost.

That being said, there are homes of this age that have had the polybutylene piping replaced.  The Buyers I was dealing with decided not to purchase this home.  If you are considering a home with this type of piping, be sure to conduct your own investigation and be aware of the risks involved and then decide whether or not you are comfortable buying the home.

To discuss any of these in more detail, please contact me at 604-837-2983.

Click here to search Properties in Surrey.

Why use a buyer’s agent?

In this day and age you, the clients, are inundated with information. And in the internet age there is no shortage of how to’s posted, including how to purchase real estate without an agent. This post is about why you should use an agent to purchase real estate.

Agents are bound by law in British Columbia to put their client’s interests above all other interests, including their own personal interests. What does this mean to you? This means that your Buyer’s agent is working hard to get your property for you at the best price possible. We do this by being knowledgable in the area you wish to live in, and by producing a Comparative Market Evaluation which utilizes the local market to determine the price.

Agents are also bound to follow the lawful instructions of their client. If you wish to make an offer that is way below market value, then your agent is bound to follow your directions. However a professonal agent will advise that such an offer is unlikely to be successful. Conversely an agent cannot follow any instructions that break any laws.

Agents are also under law required to keep the confidences of thier clients, and to disclose all information that they have to thier clients. In translation, your agent cannot disclose any information about you to anyone. However if they are at an open house and the seller tells them information that could be relevant to your purchase, your agent must tell you.