Home Buyer’s FAQs

Are we in a housing bubble?

Posted on September 30th, 2016

We’ve been reading about a housing bubble on a regular basis for the past 10 years, and yet the market has increased. In the past few months, bubble articles seem to be more prominent. Is this time going to be different? Is the end of the run-up in real estate prices near? “We’re not in a housing bubble,” said Helmut Pastrick, chief economist with Central 1 Credit Union. “While Metro’s housing market has seen the result of the recent 15-per-cent… Read more

Government’s 15 per cent foreign buyer tax effective August 2

Posted on August 3rd, 2016

The BC provincial government implemented a 15 per cent foreign buyer tax on all residential transactions on  August 2, 2016. The tax is added to the Property Transfer Tax (PTT) and applies on residential properties bought by foreign nationals or foreign-controlled corporations. The new tax is payable when the property is transferred and registered with the BC Land Title office on or after August 2 regardless of when the transaction was completed. The tax will apply to any transferee that… Read more

Metro Vancouver real estate – still a great investment

Posted on October 12th, 2015

Would you like to own an investment that increased in value 38.6% in just five years? That’s what would have happened if you had bought a detached home in Greater Vancouver in September 2010. The average sales price of $1,016,324 is now worth $1, 408,722. If you had bought that same home 40 years ago in 1975 when the average price in Greater Vancouver was $57,763, today your home would have increased in value 2,338%. Population growth has driven price… Read more

Metro Vancouver housing market @ a glance for August 2015

Posted on September 3rd, 2015

  Real Estate Board area August 2015 August 2014 % change Number of sales 3,362 2,271 21.3% Number of new listings 4,281 3,940 8.7% Total listings 10,897 14,768 -26.2% MLS® Benchmark price – all $708,500 $631,600 12% Benchmark price detached $1,159,600 $984,300 17.8% Benchmark price townhouse $511,100 $474,900 7.6 Benchmark price condo $405,400 $387,200 4.7% Source data from Real Estate Board of Greater Vancouver For August 2015 There was no summer lull in the market. August sales were 29.9% above… Read more

Does it take 85.6% of household income to buy a bungalow in Vancouver?

Posted on June 26th, 2015

RBC Economics reports that it takes an astronomical 85.6% to buy a bungalow (opens a pdf, see page 5) of household income to buy a bungalow in Vancouver. Is this true? Andrew Peck, Vice-President and General Manager, Royal Pacific Realty Group, explains that if we use RBC’s measures and accept the way these measures are constructed and what they are based on, then it does indeed take 85.6% of household income to buy a detached bungalow in Vancouver which has… Read more

Five reasons Metro Vancouver real estate will continue to increase in value

Posted on June 7th, 2015

Vancouver continues to rank as one of the most livable cities in the world. In North America, Vancouver is the number one city for livability. We’re popular. Demographers including Andrew Ramlo of Urban Futures predict more than one million more residents will call Metro Vancouver home by 2041. To accommodate these newcomers, 500,000 new homes will be needed in Metro Vancouver by 2041. Of these new homes, 75% will be built on infill land, on side lots or backyards. Vancouver… Read more

Home buyer’s tool kit Part 3 – Going Green – Grants and rebates for home buyers and owners

Posted on April 2nd, 2015

Energy Saving Mortgages – Financial institutions offer a range of mortgages to home buyers who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage may qualify for a rebate of $300 to their RBC account. Low Interest Renovation Loans – Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000… Read more

Home buyer’s tool kit – Part 1

Posted on March 31st, 2015

Part 1 – Five grants and rebates to help home buyers   CMHC Mortgage Loan Insurance Premium Refund for buyers of energy efficient homes – Provides home buyers using CMHC mortgage insurance with a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy-efficient home or make energy saving renovations. Visit CMHC or phone 604.731.5733 Home Buyers’ Plan – Use your RRSP for a down payment. Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to… Read more

Closing Costs

Posted on March 24th, 2015

If you’ve decided to buy a home through your Royal Pacific Realty Group Realtor, they will go over the costs involved in addition to the price you’re paying for your property. Here’s an overview. Mortgage application Lenders may charge a mortgage application fee, which will vary depending on the lending institution. Mortgage insurance The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. The cost ranges between 0.60 to 3.85 per cent of… Read more

What to consider when buying a second property

Posted on September 30th, 2014

If you’ve been thinking about buying an investment property, market conditions are in your favour including low mortgage rates and a range of properties to choose from.   Buying a second property is an investment in time and money. Not only do you have to consider the mortgage payments and property maintenance costs, but also finding tenants you can trust. However, the investment can pay off for many second-home owners.   Be aware that the cost of obtaining a mortgage… Read more