Posted by
paige on
September 16, 2011 |
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With real estate prices and interest rates being low, coupled with the fact there are some great deals to be had in the condo market with a flood of inventory, more and more people are looking at real estate to bolster their financial portfolio.
Consider this, you take a mortgage out on a newer 2 bedroom condo that you can rent, factoring in property tax, payments on this are approximately $850. Turn around and rent this unit out for $900-$950 a month and you’ve got a money-maker. Interest on this loan is deductible as are any expenses to maintain the property. I used 30% that came from a Line of Credit and a conventional mortgage of $110,000, making this a 100% financing scenario. If you have cash to put down, your payments would be substantially less. We all know the real estate market in Kelowna will go up again. Wouldn’t it be nice to have someone pay off a loan for something you bought today for $165,000 that in 5 years time is worth $200,000?
I know that all sounds so simple, but if you are considering a Kelowna real estate investment, call Paige Guernsey on her direct line at 250-862-6464 for some useful information that can provide for your future!
Talk to you soon…
Paige
Tags: buying kelowna real estate, Housing affordability, how to make an offer on real estate, investing in Kelowna real estate, kelowna condos, kelowna home, kelowna homes, Kelowna realtor Paige Guernsey, kelowna townhouses, paige guernsey
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Condos for Sale, Real Estate Market in Kelowna
Posted by
paige on
August 11, 2011 |
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I often hear from people that Kelowna has expensive real estate. A couple months ago the most expensive condominium in Canadian history sold for $28,000,000! Wow… that’s pricey real estate. The penthouse at Toronto’s Four Seasons Hotel and Private Residences occupied the top floor of the 55 storey building and had over 9,000 square feet. Panoramic views, 12 foot ceilings, floor to ceiling glass gallery, 4 expansive corner terraces, and of course separate private staff housing is all included.
Lately Kelowna has had it’s fair share of luxury property selling with 9 properties this year so far selling over $2,000,000. Check out this Sheerwater sale that recently sold for a healthy $3,675,000.
Looking for a luxury property to call home in Kelowna? Call Paige Guernsey direct at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
June 15, 2011 |
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News out this morning from the BC Real Estate Association says that the overall number of residential MLS (R) sales in British Columbia were slightly down in May. Most of us have heard that the number of MLS sales have been down more than “slightly” in Kelowna, while at the same time most of us have heard that Chinese buyers are creating a housing demand unprecedented in the Greater Vancouver area. The huge numbers coming out of Vancouver tend to skew the province’s stats, much like when a home sells on Okanagan Lake here in Kelowna, it causes the “average” house price to bump up. BCREA reported that homes sales in Greater Vancouver jumped 70% between July 2010 and March 2011 but only increased by 12% across the rest of the province. Cameron Muir, chief economist for BCREA says that “average sales price statistics for Vancouver and the province have become increasingly problematic, with large year-over-year average price gains being interpreted by many organizations as a sign of an over-heated market with an inevitable and painful correction on the horizon. However, while the average home price in Vancouver and the province has the appearance of climbing out of sight, evidence on the ground suggests otherwise.” Real estate is local in nature and what’s going on in one market area doesn’t define the entire market. Kelowna has seen its bumps and grinds along the road to real estate prosperity and with our city and economy growing every day coupled with outside fascination for our diverse lifestyle options, you can be sure Kelowna real estate will be at the top of anyone’s list.
Wondering how your property is faring in this market? Call me, Paige Guernsey - a top Kelowna realtor for over 20 years, on my direct line at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
May 12, 2011 |
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What’s going on? For the last 6 weeks sales have been way off. In fact the last 24 hours goes something like this… 102 new residential mls listings, 50 price reductions, and 25 sales!!! That’s pretty dismal considering it’s almost the middle of May. January 2011 stats showed sales were down over the same time year previous 31%, Feb was down 24%, March was 11%. With this trend we would normally expect April to be on par or at least only slightly down over last year BUT April 2011 sales were down a whopping 34% over last years April. These kind of numbers are most likely indicative of the cold weather continuing into spring and the Federal Election. On the upside, sellers are responding with price reductions on their overpriced property. Buyers, however, are still taking their time. I think most of us believe the mortgage rates are going up steadily now, and with that in mind, buyers and sellers who are serious are going to have to jump off the fence!
I’m your source for Kelowna real estate information. Buying? Selling? Just want to know what’s really happening out there? Call me on my direct line at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
May 10, 2011 |
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Last week I had a meeting with Christine Meekma, HSBC Premier Manager (she’s one of the most amazing bankers I’ve had the pleasure of working with by the way). As I walked into the bank for my appointment my nylon gave way and began falling rapidly towards my ankle. How does that happen with brand new nylons?? The dilemma was how to pull it up with nobody noticing. Naturally I could just feel everyone staring, not to mention all the cameras in the bank that I was sure were zooming in on my location! There was only 1 fellow waiting where I was so I took my chances, turned around and gave a quick yank up. Relief. Right then Christine was making her way towards me and as I started to walk across the bank trying to look cool and composed, down went the nylon again. That was of course, when someone commented on my cool shoes! There was nothing I could do at this point, so I squirmed and maneuvered trying to pull it up the whole time. If Christine noticed anything she was very gracious and said nothing. Who knew being a Kelowna realtor could be so stressful!
In the last 24 hours Kelowna real estate has seen 124 listings come onto the market, 48 price reductions and 33 sales. After a pretty bumpy April where we saw sales down an alarming 34% over April 2010, the warmer weather is sure to bring a more active real estate market for both buyers and sellers!
Questions about real estate? Call me on my direct line at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
March 16, 2011 |
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Hot off the real estate press! Linda Dumka at Kelowna’s Royal Bank, tells me that effective today the fixed rates are down .10% with a 5 year closed mortgage standing at 3.79%. That’s good news for home buyers! With 29% of British Columbians planning on purchasing a home in the next 2 years and a full 90% of Canadians believing their home is a good investment, most believe the relative stability of Canada’s housing market will continue. Having said that, I’ve been involved in 3 multiple offer situations in the last 3 weeks! One was a very unique house that more than one buyer wanted, one was timing - where a house had been on the market for some time and 2 buyers wanted the rancher style of home it was, and the 3rd one revolved around a buyer needing to purchase before their lower pre-approved rate expired. More MLS (R) listsings are coming onto the system as we head into warmer months (really? warmer?), and the buyers have more to choose from than they had in the last few months. This change in rates will most likely cause a few buyers to sit up and take notice!
Took a unique condo listing in the Springfield/Spall area of Kelona. Top floor 3 bedroom, 2 bath unit that’s been completely renovated. Take a look!
Talk to you soon…
Paige
Posted by
paige on
March 4, 2011 |
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Things are starting to gear up for Spring in the Kelowna real estate market. Over the last 24 hours there have been 72 new listings come onto the MLS system and 14 sales. February 2011 stats are out and although up over last month, total sales are down 25% over same time last year. Median single family house prices are down slightly from last year… $430,000 to $422,000. Kelowna waterfront property is off a noticable 15% and recreational property prices are down a whopping 80%! First time buyers have been very busy buying up inventory for the last several months between $300-450K thanks to low interest rates and changes to the lending rules. Those people that sold their homes to the first timers are now starting to look at purchasing with over 32% of the buyers out there making the move up. Further changes to the lending rules coming March 18th is giving buyers an extra incentive to jump off the fence and buy. These sale numbers mean that pricing agressively is critical to attract a buyer and with Kelowna’s economy predicted to grow slowly but surely in 2011 I predict the buyers will come and we can expect a balanced steady market to continue.
If you’re thinking of buying or selling, call me on my direct line at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
February 12, 2011 |
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It’s the number one question I get asked: “What’s the market going to do?” Kelowna’s real estate market changes periodically and is affected by various things like economic growth and interest rates and simply, it is what it is… steady. The big question is how are you going to navigate it?
“Should I buy now or wait?” Good question… How do you feel about inflation and interest rates? Do you think they’re going up?
Consider this: If your mortgage amount today was $300,000 and your interest rate is 3.6%
PAYMENT: $1,518 INTEREST PAID IN 1 YEAR: $10,676 PRINCIPAL PAID OFF IN 1 YEAR: $7,540
If you think interest rates are going up, let’s look at the same mortgage amount with an interest rate of 5.6%
PAYMENT: $1,860 INTEREST PAID IN 1 YEAR: $16,656 PRINCIPAL PAID OFF IN 1 YEAR: $5,666
“I’m going to rent until the market hits bottom”. Last time I checked rental rates haven’t gone down for years in Kelowna. Our vacany rate is very low keeping the rents high. In fact, most people that crunch their numbers find that they’re rent is going to cost them more every month than the mortgage to buy the house they’re renting. Checking Kelowna real estate stats for 2009 and 2010 (including Jan 2011), the list to sell ratio (what a house sells for vs. what it’s listed for) differed a meager 1.06%. Looks like prices aren’t changing too much.
If you’re considering a move please don’t hesitate to call me directly at 250-862-6464.
Talk to you soon…
Paige
Posted by
paige on
January 18, 2011 |
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If you’re a buyer still sitting on the fence about whether or not now is the time to buy real estate, news by Federal Finance Minister Jim Flaherty may help you jump off and commit to that purchase.
Check out this great buy in Glenmore, $389,000.
Amid government concerns over Canadian household debt, the new rules coming in March 18th and April 18th aim to make it a little tougher to enter the real estate market. The 3 main changes are:
- The maximum number of years the government will back a mortgage was lowered from 35 to 30.
- The upper limit that Canadians can borrow against their home equity was lowered from 90% to 85%.
- Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
The first change is likely to have the largest impact. Buyers who have less than 20% downpayment are required to insure their mortgages. Under the new rules, mortgages amortized over longer than 30 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 30 years in Canada. This change will also help buyers to seriously reduce the amount of interest they’re paying on their mortages by forcing the total amortization down to 30 years. This change also aims to to have Canadians pay off their mortgages before retirement.
The second change will limit how much equity a person has access to in their homes. The old percentage was up to 90% of the value and this will drop down to 85%. For instance, on a home valued at $300,000, an owner would have access to any equity up to a maximum of $270,000. Under the new rules, this limit drops to $255,000. Flaherty pitched this change to ensure Canadians retain some equity in their homes. “This will promote saving through home ownership and limit repackaging consumer debt into mortgages.”
The final change, to remove government insurance on HELOCs, (Homeowner Equity Line of Credits) came as a result of Ottawa’s concern that certain financial institutions were allowing homeowners to roll too many consumer purchases into CMHC-insured mortgages. This is of course risky when those purchases are depreciating assets such as cars, boats, and big ticket electronic items. The thinking here is that taxpayers won’t be on the hook for those CMHC mortgages should they default and there not be enough home equity to cover any outstanding balance.
While Flaherty called the changes “moderate,” they DID NOT include an increase to the five per cent minimum down payment Ottawa requires for a home purchase. They also stopped short of a proposal that surfaced last week which would have required 100% of condo fees to be included in the list of expenses that are measured against income when financial firms consider a mortgage candidate. Currently, only 50% must be included.
Talk to you soon…
Paige
Posted by
paige on
January 11, 2011 |
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The Okanagan Mainline Real Estate Board has been doing surveys of the realtors who work with buyers. There are some interesting facts here. From September to November, almost 28% were first time buyers with move up buyers following a close second at 24%. Most of the buyers, 57%, were from within the Board area (Central Okanagan, North Okanagan and Shuswap/Revelstoke). The Lower Mainland/Vancouver Island came in at almost 18% and Alberta buyers picked up momentum with 13.2%. This survey also indicated that investors were re-entering the market and buying property for revenue and/or children/students that need a place to call home!
The fixed term interest rates have popped up a bit and this has made those buyers on the fence think about a more concrete buying decision. As well inventory is down which all points to a balanced market. Time will tell, but I think it’s looking good! Here’s the link for more information on this survey.
Talk to you soon…
Paige
