Spring Purchase and Tax Tips - Tien Ho Mortgages

Tien Ho - Mortgage Advisor

MortgagesLab Financial Inc.

tien.ho@mortgageslab.ca
604-779-4249

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It's official: $7-billion transit expansion plan for Surrey & Vancouver & others

 

Congratulations if you already own a home that's walking distance to any of the current & proposed LRT/Skytrain stations. If you are yet to decide where to purchase your property, and you are looking for about a 20-25% future lift on your property value more than the average, then now will be a great time to investigate the livable pockets around the proposed stations. The general consensus is that demand is higher for properties within an 800m radius of a station. 

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Buyer Beware: 5 Bylaws to Watch When Buying a Condo

 

When purchasing into a strata building, an important part of the buyer’s due diligence process is reviewing and understanding the current bylaws of the strata corporation. A failure to review the bylaws can lead to nasty, unwanted surprises for new homeowners later down the road.

Here are five types of bylaws that you should pay particular attention to, as they could make a huge difference to many buyers.

Rental Restrictions or Rental Prohibition

Particularly if you’re purchasing the property as an investment, but also if you might simply want to rent out your place and go travelling, you will want to ensure that you are in fact allowed to rent out your strata lot. The strata corporation may have already enacted bylaws that could either prohibit the rental of residential strata lots entirely, or limit the number or the percentage of strata lots that may be rented out. Strata corporations may also restrict the length of time for which strata lots may be rented.

Short-Term Accommodation Prohibition

Offering up all or part of your strata lot for short-term accommodation can be a significant mortgage helper. However, the rise of AirBnB has led many strata corporations to pass use-of-property bylaws that prohibit short-term accommodations. So, even though the City of Vancouver will now permit primary residences to be let short-term by licensed hosts, that doesn’t mean the strata corporation permits this practice.

These bylaws should not be confused with rental restrictions or prohibitions, as BC courts have found that short-term accommodations are legally different in nature to rentals. Unlike with rental restrictions or prohibitions, there is no grandfathering of use-of-property bylaws. Rather, they take effect as soon as they are registered with the LTSA.  

Pet Restriction or Pet Prohibition 

When buying a home for yourself, make sure that your pet has a home as well. Pet bylaws vary greatly and can be as extreme as a complete pet prohibition. However, it is more common for strata corporations to restrict the number and types of pets.

The often-used Schedule “A” bylaws restrict pets in a strata lot to one or more of (1) a reasonable number of fish or other small aquarium animals, (2) a reasonable number of small caged mammals, (3) up to two caged birds and (4) one dog OR one cat. Strata corporations who have passed a custom pet bylaw may have modified these restrictions and may require pets to be pre-approved and registered with the strata council.

Approval for Hardwood Flooring

Want to replace carpeting with hardwood floors before moving in? It’s important to remember that when it comes to strata living, an owner is not the master of their own domain. In an attempt to reduce noise transmission between strata lots, many strata corporations have adopted bylaws that specifically regulate the installation of new flooring.

Even if your strata corporation’s bylaws do not contain specific provisions targeting the installation of flooring, the bylaws will always contains some general provisions requiring approval of the strata council for alterations or renovations to a strata lot. Proceed with caution before making such changes.

Insurance Bylaws

Unfortunately, many homeowners will check their strata corporation’s bylaws only after a problem arises. One very common issue faced by owners in a strata building concerns the obligation to repair water damage. Depending on the wording of insurance bylaws, you may be liable for damage caused by water escaping from your strata lot irrespective of whether you have been negligent or careless. The easiest way to protect yourself from such claims is by making sure that you purchase your own individual homeowner insurance to fill in any gaps left by the strata corporation’s insurance policy. 



BC's Home Partnership Program Ending!

 

The BC Home Partnership Program (HPP) is being discontinued at the end of this month.

Launched just over one year ago, the HPP offered down payment assistance for prospective home buyers in the form of a second loan, with interest and payments deferred for five years. the qualifications for this program were quite restrictive and led to a smaller than expected number of applications.

The program will officially end on March 31, 2018. Applications received before that date will still be processed.



Taipei Lantern Festival

 

In March I got to complete one item off my bucket list. Ever since I saw that Disney movie 'Tangled' I was always fascinated in seeing a lantern festival. Before that, I never even knew these things existed. I thought it was one of the most beautiful scenes ever.

So I decided this year I would find one and go see it. Even though they have these events in different parts of the world, I found one in Taiwan and was set on that. I planned an Asia trip with my girlfriend there starting off with the festival.

It was just as amazing as I had imagined it and would recommend everyone to see it sometime too. What is on YOUR bucket list? My next one will be to go to Ireland and Scotland and see some castles.



7 Top Tax Refund Dos and Don’ts: It’s Your Money, Don’t Blow It!

 

What to Do With Your Tax Refund:1. Pay Off Any High-Interest Debt First

It doesn’t sound sexy, but if you can knock out some debt  (often credit card debt) that’s costing you money each month, you can take a huge positive step financially. There are different approaches like paying off the highest interest or paying off the biggest amount first (which can sometimes mentally be a big motivator), so look at various options for paying off credit card debt to make it work best for you.

2. Stash Money Away for an Emergency Fund

Only 39% of Americans say they’d be able to cover a $1000 emergency expense with savings, according to a 2018 Bankrate survey. If you’re in the majority who doesn’t have that savings stashed away, it’s a good idea to save money for a rainy day in case you need it. An emergency fund will keep you from having to charge emergency costs on higher interest credit cards or having to get creative to pay for something that pops up.

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Selling your Home? Here's What Home Buyers Look For

 

We all know that different buyers have different wants and needs. For example, families will be looking for homes near good schools and lots of recreational activities.

There are some common features that the vast majority of people are looking for in 2018. Today, bigger isn’t necessarily better - it’s all about whether the house meets the needs of today’s busy lifestyles.

Here are some of the key features that can make a huge difference in the selling price of your home.

Updated fixtures and appliances
Buyers are spending every cent they have on the purchase price of the home, and they don’t want to have to spend more to get it fixed up on top of that. If you live in a home that’s in need of freshening up, some new light fixtures and cabinet hardware will go a long way. If the kitchen appliances are 1970’s avocado green, you may need to spend some money to get energy efficient, up to date appliances. 

Remember, we have access to a government approved program where you can include up to $40k for renovations when you purchase that home with great bones in your perfect neighborhood!

Office Space and High Speed
Working from home is becoming more and more common, even if it’s just the occasional evening or snow day now and then. Having somewhere to focus and work on the computer is a must. Connectivity is key. A good mobile signal and high speed internet mean access to entertainment, information, and time saving opportunities of all kinds.

Amenities Close By
People want to be able to walk to restaurants, coffee shops, and gyms. As a result, buying in bedroom communities without these amenities less appealing. Buyers will spend more to get a smaller space if the location will allow them to live the lifestyle they want. Neighborhoods with short commutes are more popular than ever, and condo apartments downtown and townhouses close to downtown are also in demand.

Low maintenance
A decade or two ago, a big expanse of open lawn was an asset. Don’t get me wrong - people still want to see some landscaping, and curb appeal still sells but for a large number of people, less is more.

A larger, nicely styled walkway with some low-maintenance containers will present a welcoming appearance without taking up every free minute to maintain

Updated Kitchen and Bathrooms
You don’t need to have granite counter-tops to sell your home, but if your kitchen and bathrooms haven’t had an update since the 1980s, expect less interest and a lower selling price. Buyers don’t want to spend their weekends working on their houses - they want to just move in and have everything look good.

Buyers want well-designed, eat-in kitchens with plenty of organized storage. Ideally, the storage should be in the form of a pantry, rather than endless cupboards, especially if the kitchen is small. For bathrooms, they are looking for clean lines, walk-in showers, and as little grout as possible. 

If you or someone you know is planning to sell a home that isn't updated and renovated, you could ask your realtor to promote the renovation program as part of the sale. This could get your buyer dreaming about how your home will look in the future rather than how it looks today.  I've worked with some realtors who have promoted this with great success!



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