What does the search process look like?
Buying a home is a big, life altering decision, but it doesn’t have to be complicated if you have a real estate expert in your corner. So, the first step to starting your search should be to team up with a realtor. Download our free Buyers Guide for detailed steps of what the buying process looks like, and read this blog post on steps in buying a home.
What is home warranty insurance in BC?
According to the Homeowner Protection Act and regulations, new homes built in BC by licensed residential builders must be covered by mandatory, third-party home warranty insurance. At a minimum, home warranty insurance coverage includes:
- 2 years on labour and materials (some limits apply)
- 5 years on the building envelope, including water penetration
- 10 years on the structure of the home
Learn more about Home Warranty Insurance on New Homes.
Should I sell my property first before I buy?
We recommend that you don’t list your home for sale without having something in writing from your current lender confirming that you qualify to move your existing mortgage to a new property. This will give your realtor clarity on the differential between the buy side versus the sell side of things and what pricing parameters we have to work with. It is important to determine whether you are in a buyers or sellers market. If it’s a buyers market, then there is value in selling first and taking a longer close. This obviously puts a timeline on finding a place but may give you opportunity on the buying side as home prices continue to trend downwards. Selling before buying also gives clarity on the equity you will have on the buying side. If you decide to buy first, sellers may or may not be open to a subject to sale in your offer and this can weaken your offer position, especially within a multiple offer situation. It is always hard to predict what the future holds in the Vancouver market. Get in touch with us today to see if buying or selling is the right first step for you.
Should I buy a home or rent?
It depends on your current situation, what your financial goals are and how real estate fits into your investment goals. If you are currently renting and able to create enough margin that allows for you to invest what you save at a rate greater than if you had a mortgage, then you might consider renting. If you are not able to create that financial margin with your savings, then having a mortgage can act like a forced savings plan and ensure you are contributing to your personal net worth rather than to a landlord’s. We recommend assessing your financial situation with a mortgage broker to determine whether you can handle a mortgage payment, which won’t be the same as your rent payment (think of all the extras like property taxes, strata fees, utilities, insurance, maintenance and repairs).
What is an easement?
An easement is a right or privilege one party has to use the land of another for a special purpose. For example, easements can be given to telephone and electric companies to erect poles and run lines over private property.
What are fixtures and hattels?
Things contained in a building or on the land are classified as either fixtures or chattels. The difference between a fixture and a chattel is very important to you because fixtures stay with the home when it is sold, but chattels depart with the old owner.
What does feehold ownership mean?
Freehold ownership, or a fee simple, is a type of home ownership in which the purchaser buying the property owns all the rights associated with the property, except the rights which are reserved for the crown. Visit the RECBC website to learn more about the different types of home ownership in BC.
Does leasehold ownership appreciate as much as freehold ownership?
Leasehold ownership means that a purchaser owns the structure and buildings on the land but leases the land from the owner or landlord. The land is leased for at least 50 years from the federal, provincial or municipal government, regional district or approved public authority (native band, university, etc.). The buyer purchasing an interest under the lease is buying the right to occupy the property for the remainder of the term of the lease. In essence, leasehold ownership doesn’t typically appreciate the same as freehold. It does provide a more affordable option but the banks will typically require a 35-40% down payment making financing difficult for some buyers. Some lenders won’t even finance leasehold properties.
What does it mean when a leasehold property is pre-paid?
A pre-paid lease means that the landlord has paid the lease payments ahead of time or for the term of the lease. For non-pre-paid leases, you would typically need to pay a monthly lease expense to the landlord.
What does “Shares In A Cooperative” mean?
A co-operative, or co-op, is essentially a business in which you buy shares into. You buy a certain amount of shares and are allocated your suite. You don’t own it but you own shares in the collective whole of the building. Financing is really hard with co-ops. You need at least a 35-40% down payment. Some lenders won’t finance co-ops. Like leasehold, these types of properties don’t usually appreciate nearly at the same level as freehold ownership does.
What is a depreciation report?
A depreciation report is a key management tool for stratas. It helps the owners in a strata corporation plan and pay for the repair, replacement and renewal of common property and assets such as a roof, windows, elevators, parking membranes, lobby improvements and other items.
What do I do if there is no depreciation report?
Confirm whether the strata has had any other engineering reports that confirm the current condition of the building and its assets. If there are no reports, there could be significant risk! Buyer beware! Unknowns can be costly.
What should I consider when deciding on my budget for a new home?
When deciding on your budget for buying a home in Vancouver, consider factors such as your income, savings, current expenses, future financial goals, and the amount you can comfortably afford for a mortgage payment. Don’t forget to account for additional costs such as Vancouver property taxes, insurance, and strata maintenance fees.
Can you help me understand the different types of mortgages available?
We can provide general information about the different types of mortgages, including fixed-rate, adjustable-rate, and current rates. However, for detailed advice tailored to your specific circumstances, we recommend consulting with a mortgage professional. We have some great mortgage broker recommendations!
How can I improve my chances of my offer being accepted?
There are several strategies to improve your chances of having your offer accepted on a Vancouver property, such as getting pre-approved for a mortgage, making a competitive offer based on Vancouver real estate market conditions, minimizing contingencies, and showing flexibility with the closing date. Check out our blog post NAVIGATING THE HOME-BUYING PROCESS: YOUR ULTIMATE GUIDE TO MAKING AN OFFER for expert advice.