North Vancouver real estate

Introduction

The North Shore is one of the best places to live in BC. It has great schools, shopping, and amenities.

North Vancouver Real estate over the years has been an excellent investment.

North Vancouver real estate has been an excellent investment over the years. The low vacancy rate, excellent amenities, and close proximity to downtown make it a great place to invest in.

North Vancouver Real Estate is one of the places where investors can find some good deals on property.

The North Shore has many amenities everything is at your doorstep. Schools, shopping, outdoor activities, skiing, and the ocean are all there.

The North Shore has many amenities everything is at your doorstep. Schools, shopping, outdoor activities, and the ocean are all there. The District of North Vancouver School District offers a variety of programs for all ages, including elementary, middle school, and high school.

You’ll be close to amenities such as:

  • Shopping

  • Outdoor Activities - Cypress Mountain Ski Resort

  • Ocean Access - Hiking Trails & Swimming Pools

The North Shore has some of the best schools in BC.

The North Shore has some of the best schools in BC. There are a number of private schools and public schools, as well as independent schools for children with special needs. These schools are all nearby and easy to get to, which means that your children will not have long commutes; they can also be easily integrated into the community at large through extracurricular activities such as sports or music lessons.

The Fraser Institute rates these institutions based on their academic performance, graduation rates, and students' scores on standardized tests (i.e., provincial exams). The results are impressive: many North Shore high schools have been ranked among the top five in BC!

This area has it all, nature, beauty, and great investment potential

This area has it all, nature, beauty, and great investment potential. It's located in the heart of North Vancouver, with everything at your doorstep. You'll feel like a local when you're here! You can walk anywhere or ride your bike or drive up Mt. Seymour Road for an awesome view from above!

Conclusion

If you are looking to invest in real estate in the North Vancouver area, then this is a great place to start. The area is safe and clean with no major traffic concerns. I would recommend this area to anyone who wants to be close to nature but also enjoy all of the amenities that come along with living here.

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Introduction

If you've been looking to invest in Vancouver real estate, you may have heard about pre-sales. Pre-sales are an opportunity for investors to buy into new developments before they even start construction. This allows for investors to get first dibs on properties that haven't even been built yet, which can be a great way of ensuring your investment is safe and secure over time. In this blog post, we'll break down what pre-sales are all about and why investing in this way might be worth your while.


What is a pre-sale property?

A pre-sale property is a newly constructed home that is still under construction. A developer enters into a purchase agreement with the homebuyer. The typical down payment is between 5% and 10% of the purchase price, with the remaining 10% to 15% paid in stages as the building is constructed. This down payment is stored in a trust account and will not be released to the builder until after the project is finished. All deposits are fully refundable if the developer decides to abandon the building project.

Pre-sales offer buyers an opportunity to buy new homes at discounted prices and get great value for their money. They also provide developers with stable cash flow and allow them to move forward with development timelines without depending on the whims of traditional lenders who may be hesitant about funding projects during periods of economic uncertainty.


Why should I invest in a pre-sale property?

There are many reasons to invest in a pre-sale property. Here are the most important:

  • You can get in at a lower price. The price of the finished condos will be higher than what you pay for your investment, and it’s possible that the price will increase even more before construction is complete.

  • You can get in before prices rise even further. If you’ve been waiting for years to buy a condo in Vancouver, then this is your chance! Prices have been rising steadily for years, and experts predict they will continue to do so as long as there isn't another housing crash like there was in 2008/2009.

 

Let us connect you with the right pre-sale property!

If you’re not sure where to start, our team can help. We’ll connect you with the right pre-sale property and mortgage broker!

You can find a wide range of pre-sales properties in Vancouver here, or just Give us a call at 604-679-5599 for more information. 

Pre-sales are a great chance to invest in the Vancouver real estate market.

If you're looking to invest in real estate, pre-sales are the way to go. With a lower down payment, it's easier to get into the market and reap the benefits of Vancouver's hot housing market.

 

Conclusion

We hope that this article has provided you with some valuable information on pre-sale properties. If you are interested in learning more about Vancouver’s real estate market, or if you think this sounds like something for your portfolio, we can help.

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From first-time homebuyers to investors and downsizers, pre-sales properties are becoming an extremely attractive opportunity in today’s real estate market. Pre-construction properties have yet to be built, so the process and experience of buying are entirely different from that of a standard re-sale transaction. Buying a presale property means that you are buying the rights to a future home, which comes with several significant benefits.

Before we get into the benefits, let’s define presale or pre-construction properties further.


What is a Pre-sale?

New condo developments draw significant interest from Canadians when they’re announced. A presale is when a developer brings suites in a particular development to market before construction has begun. This allows buyers to own the rights to a future home in exchange for placing a deposit down on the property. It’s typical to see buyers put down anywhere from 5% to 10% on the purchase price, which goes into a trust account until the development is completed.

Here’s a look at why presale properties are becoming even more attractive to buyers.


1. Flexibility

Presale properties can take up to four years to be built, giving buyers a large timeframe to fix up and sell their existing residence, save money for a down payment, and have a slow and comfortable move. It’s not uncommon for individuals who anticipate an uptick in the market over the coming years to invest in a presale property, especially for those who are close but not quite ready to list their home.

This strategy has become very popular during the pandemic, as many homeowners are choosing to wait and sell in a few years while still wanting to lock in today’s prices. There’s a large segment of current homeowners looking to downsize in the near future, and buying a pre-construction property gives them the time they need to get ready to sell without a huge upfront price tag.

Buying a presale property also gives you flexibility in terms of the customizations that come with your unit. You’ll be able to choose from a variety of styles and layouts and upgrade your finishes so that everything looks just the way you’d like it to when you move into your new home. New developments also often come with attractive amenities like gyms, pools, and rooftop patios, so explore the options that come with your investment. There’s likely a development already being planned with the amenities you need to be comfortable.


2. Investment Opportunities

Leverage can be one of the major benefits of purchasing a presale property. Buyers can typically secure a purchase with as little as a 5% or 10% deposit, leaving them with an opportunity to see significant returns should the property increase in value. Locking in a price on your purchase date has proven extremely profitable for many Canadian buyers over the last decade. When the market goes up, investors can realize market gains without the costs of regular mortgage payments, maintenance fees, and property taxes.

An additional reason that presale properties can make great investments is the developer’s commitment to the areas where they build. New developments can truly transform neighborhoods in a matter of years, with commercial space for new businesses often accompanying new projects. It can be very profitable to get in early if you spot a transformation taking place, especially if other developments are going up in the area.


3. Less Hassle

Brand new buildings simply have fewer problems than older buildings and their units. Buying a presale from a reputable developer like Allure Ventures, Miracon, or Westbank, to name a few, typically won’t require any repairs for a significant time period upon the completion of the project. This gives you years to enjoy your home without the stresses of constant repairs that often come with resale properties. There’s no worrying about a leaky condo, pipes bursting, or roof replacement when you move into your new property. It’s likely to be many years before any significant maintenance or replacement costs are associated with your home.


4. More Protection

Presale construction generally comes with a warranty, which is another benefit to purchasing a presale property. In British Columbia, for example, 2-5-10 year home warranty insurance is included on all presale construction. This warranty means that potential costs are limited for an extended period of time:

-2 years on any labor and/or materials (electrical, plumbing, heating, ventilation, air conditioning, etc.)

-5 years on the building exterior

-10 years on the structure of the home

A 2-5-10 year home warranty protects you from any unforeseen circumstances and ensures that you’ll be made whole on any potential issues with the property upon its completion. There are also typically 15 months covered for any labor and materials associated with common property.


5. More Options

Things can change over a few years, and presale properties give their owners many options when it comes to ownership. You can choose to sell your assignment prior to moving in, find tenants and rent out your property upon completion, or wait for the development to be built and move into your new home.

Finding tenants for a new property isn’t a challenging task in most markets, as new units are typically in high demand from renters. They have better amenities than older properties, better layouts, less maintenance, and of course, come in a brand new state which is incredibly appealing. It’s easy to understand why they’re in higher demand from renters than older options. Besides being more desired by renters, they’ll also permit you to rent out your property for more monthly rent than a comparable older property. More demand means higher rent prices and a better return on your investment.

Buying a presale property has become an attractive option in today’s market. Compared to purchasing a re-sale property, the 5% to 10% deposit needed to secure a property can be very attractive. Research the site’s surroundings in detail and ensure that you think that development will help transform the community. Sometimes the waiting period can feel long, but time is often just what a neighborhood needs to develop into a thriving community and what your investment needs to mature.

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There are many costs associated with buying a property. Property transfer tax is a key closing cost that needs to be considered and understood.


What is property transfer tax?


The property transfer tax is known as a one-time kind of land transfer tax.

The PTT rate for British Columbia is set at 1% on the first $200,000 and 2% on the remainder of the purchase price balance greater than $200,000 and up to 2 million.

If a property is worth over 2 million dollars, then a 3% rate will be applied to the balance. Additionally, if a property is labelled residential and over 3 million, a further 2% will be applied to the portion of the sales price that is greater than 3 million.


Two real-life examples:

  1. Assume the purchase price (fair market value) for a property is set at $800,000.

1% on the initial $200,000 would equal to $2,000.

2% on the remainder of the purchase price balance greater than $200,000 and up to 2 million would equal to $12,000. ($800,000-$200,000= $600,000 x 2%= $12,000)

The total property transfer tax for a property worth $800,000 is $2,000+$12,000= $14,000.

  1. Assume the purchase price (fair market value) for a property is set at $3.9 million.

1% on the initial $200,000 would equal to $2,000.

2% on the remainder of the purchase price balance greater than $200,000 and up to 2 million would equal to $36,000. ($2,000,000-$200,000= $1,800,000 x 2%= $36,000)

3% on the portion greater than $2,000,000 would equal to $57,000. ($3,900,000- $2,000,000= $1,900,000 x 3% = $57,000)

 An additional 2% on the portion greater than $3,000,000 would equal to $18,000. ($3,900,000- $3,000,000= $900,000 x 2% = $18,000)

The total property transfer tax for a property worth $3.9 million is $2,000+$36,000+$57,000+$18,000= $113,000.


When is property transfer tax paid?
Property transfer tax is paid at the time of closing on the completion date.


Who needs to pay property transfer tax?

Usually, the buyer has to pay the PTT unless an exemption can be applied.


Are there exemptions to property transfer tax?

There are currently two exemptions to the property transfer tax. The exemptions include the first-time home buyer PTT exemption and the newly built home PTT exemption (750,000 and principal residence) (add more about these) and for the first-time homebuyer, there is a charge.


Is property transfer tax the same as annual property tax?

No. Annual property tax is a city tax that is due on a yearly basis while property transfer tax is a one-time provincial tax that is part of closing costs.

Is property transfer tax the same as foreign buyer tax?

No. Foreign buyers who purchase properties in certain areas may face a foreign buyer tax in addition to the PTT.

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When buying or selling a home in British Columbia Canada, you will most likely be using real estate services and

therefore may need to pay a commission. Hence, it is valuable to understand the principles surrounding real estate

commissions.


What are commissions for?


Real estate commissions are known as the fees paid towards real estate agents for their services.

Commission rates vary depending on the area and the specific seller/listing agents you choose to work with.


Who needs to pay?


Typically, the seller has to pay for all commission fees which includes both the seller/listing agent of the property

and the buyer’s agent. The buyer does not have to pay the realtor commission in most cases.


What does this mean for you?


Although there is no standard commission rate across British Columbia, our commission rate comes in at 7% on the

initial $100,000 of a property’s price plus 2.5% on the remaining balance. The commission will then be split between

the listing agent at approximately 55% and the buyer’s agent at approximately 45%.


How to calculate a commission total?


In order to understand how to calculate a commission total, let’s look at a real-life example. Assume the commission rate

used is 7% on the initial $100,000 of a property’s sales price plus 2.5% on the remaining balance. If the price of a property

is set at $900,000, then 7% on the initial $100,000 will amount to $7,000. The remaining balance from the property’s sales

price is $800,000 ($900,000-$100,000). Therefore, 2.5% of $800,000 amounts to $20,000. The total realtor commission fee

for this example is $27,000.


Are the commission rates negotiable?


Yes! Since there is no standard commission rate across British Columbia Canada, rates can be negotiated individually.

Is GST applicable to commissions?

Yes! GST is applicable to commissions as real estate services apply to Goods and Service tax. Hence, it’s imperative to

remember to add on the (5%) GST fee to the total commission amount.


When will realtors receive their commission payments?


In most cases, the seller/listing agent and the buyer’s agent obtain payment following the sale completion.

What you need to remember when looking at commission rates

Higher commission rates do not always equal more experience or expertise! Look for strong local market knowledge, flexibility, extensive marketing skills, positive reviews and of course the right overall fit.

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What is a home appraisal?

A home appraisal is a document that demonstrates an estimate of the property’s current fair market value. Fair market value is the price a property would sell under normal market conditions. The home appraisal is an independent evaluation.

What is BC assessment?

Property owners receive a property assessment notice notifying them of their property’s fair market value as of July 1 of the past year.

What are home appraisals for?

An appraisal may be needed when engaging in processes such as buying, selling, or refinancing. Lenders may often ask for a home appraisal value in order to receive a professional, current, accurate, and unbiased evaluation. Appraisals can additionally be performed for presale properties when they reach completion.

What are the associated costs with a home appraisal?

An appraisal would cost on average between $300-$600 for a detached house. However, the cost varies depending on the price of the home and the complexity surrounding the appraisal itself.

Who pays for a home appraisal?

Generally, the borrower would pay for the home appraisal costs. The appraisal would eventually go to the lender and not the buyer itself. Hence, the appraiser sees the lender as their client and not the buyer. An important point to note is that an appraisal is not always mandatory but common for buyers who are placing 20% down. Depending on the mortgage brokerage company, appraisal costs may be waived or added to the documentation fee.

What is the difference between a home appraisal and a current market assessment?

A home appraisal provides an estimate of the property’s current fair market value based on factors such as age, location, current condition, and more. Meanwhile, the current market assessment (CMA) is based on what current buyers are prepared to pay for the property. CMA may also assist with finding out the asking price of a property by methods such as supply and demand. Home appraisal and current market assessment (CMA) are hence not interchangeable terms.

Some tips when preparing for a home appraisal:

  1. Create a list featuring all updates no matter how minor
  2. Tidy up the interior and exterior of the property
  3. Consider investing in small updates such as a fresh coat of paint or updated light fixtures
  4. Create a list of comparable properties depending on recent market activity
  5. Enhance curb appeal
  6. Focus on creating a great overall first impression
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What is a home inspection?

A home inspection evaluates the current condition of the home. Instead of assessing strictly cosmetic features, a home inspection looks into the comprehensive performance of the home. The inspection is typically documented in a written report and is in essence a fundamentally visual examination.

What are the associated costs for an inspection?

A home inspection will generally range between $350-$500. The costs vary depending on factors such as property type, cumulative size, and location.

How long does a home inspection take?

A home inspection on average takes 2-3 hours to complete. Nonetheless, the total time can range depending on the size and complexity of the property.

Who pays for the inspection?

In most cases, the buyer will pay for the home inspection unless otherwise agreed upon.

When is a home inspection done?

A home inspection is commonly completed prior to subject removal.

Who is present during an inspection?

Both the Buyer’s agent and Seller’s agent may be present. It is also recommended for the buyers to be present.

What if there are deficiencies?

If deficiencies are found, the buyer may have the possibility to negotiate the price or not remove the subject depending on the contract.

What are some things a home inspection may look into?

  1. Roof
  2. Structure
  3. Overall exterior
  4. Interior and exterior walls
  5. Electrical and plumbing system
  6. Heating and Air Conditioning system
  7. Insulation and Air/Vapour Barriers
  8. Overall interior
  9. Windows
  10. Flooring
  11. Mechanical and Natural Ventilation systems
  12. Parking garage
  13. If the property is a condo/apartment/townhouse; then amenities and lobby


Who do we recommend for a home inspection?


We recommend choosing only currently registered and highly qualified home inspectors with an active British Columbia home inspector license number. Research your potential home inspectors to see if they have memberships in industry groups and client testimonials.

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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.