First off, thank you to @trevorbigg and the Icons of Real Estate team for having me, it was great chatting with you.
During this 45mins, we chat a number of things from the state of the Vancouver real estate market, some tips and tricks, the start of my personal real estate journey, timing the market, etc. Hoping there is something here for everyone from buyers and sellers to other realtors, & more. Find this discussion on Youtube here: https://youtu.be/Z7Jd7vtbYc4?feature=shared Or on Apple Podcast here: https://podcasts.apple.com/gb/podcast/the-surprising-twist-that-made-joe-longacre-a/id1779779654?i=1000685226807 If you have any questions, please don't hesitate to get in touch: Phone: 778-927-4306 Email: [email protected] Website: www.joelongacre.com
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Waiting To Time The Real Estate Market? - Interest Rates vs. Prices & Other Things To Consider11/13/2024 I thought I’d take a minute to chat about a hot topic I’m hearing a lot about these days: waiting to buy a property until interest rates drop. Many of my clients are eager to wait it out, hoping for a better mortgage rate. And while I absolutely want my clients to get the best deal, just waiting for rates to drop doesn’t always mean you’ll come out ahead. If you're exploring the Vancouver Real Estate market and nearby areas right now, you’ll notice a trend that favors buyers more than it has in recent years. Unlike the past few years, where sellers had multiple offers and buyers were competing hard—often overbidding and skipping important contingencies like inspections—buyers now have leverage. Today, you’re more likely to set your own terms, avoid bidding wars, and pay closer to the assessed or fair market value. So, in my view, it’s a great time to consider buying. I'm frequently having conversations with my buyers and often hearing, “I’ll just wait a few months; interest rates will be lower.” But historically, when rates drop, buyers flood back into the market. This quickly shifts us from a buyer’s market to a seller’s market, where competition spikes, prices rise, and that leverage you had vanishes. It’s a classic case of herd mentality—when one or two people move, everyone else follows, driving up demand and, ultimately, home values. So, what’s the smarter choice? Paying a bit less for a home with a slightly higher interest rate or waiting for lower rates and paying more for the property itself? Personally, I feel there’s more upside in buying now at a lower price if possible, especially with the ability to do inspections and negotiate favorable terms. With a variable rate mortgage, you can always lock in the rate later if rates go down. Here’s a quick example: let’s say a 1% drop in interest rate would save about $295 per month on a $500,000 mortgage. So, if you bought a $650,000 home now with $150,000 down, you’d have a $500,000 mortgage. Over a year, that’s an extra $3,540 paid due to the slightly higher rate. But if rates do drop and buyers rush in, that same $650,000 property will likely be priced much higher than $653,540 (the original price + that extra year’s interest difference). So why not buy now, secure the property, and then take advantage of the lower rate later? That way, you get the best of both worlds! As the saying goes, “You marry the house, but date the rate.” I've reached out to a mortgage broker I work with, Chris Morrow from 4Front Mortgages, who has provided a helpful chart on rate/payment differences and potential property appreciation. Here’s the point: if you invest in the current market you'll pay roughly $3,500 extra in a mortgage for a year, but if over that time you see a 7% increase in your property value, you’d be gaining roughly $42,000 in equity on a $600,000 purchase— pay $3,500 to make $42,000 sounds like a pretty solid investment! Of course, there’s a lot to consider when buying a home, and I’m not saying “now” is the perfect time for everyone. But if you’re prepared and just waiting for a rate drop, it might be time to take a closer look. Timing the market perfectly is almost impossible, and waiting too long can mean missing out. Another question to think about. Have you felt or ever heard someone say, "I wish I would have bought 5 years ago". Or the flip side of that coin, have you ever heard a home owner in the Vancouver Market say, "I regret getting into the market"? I don't know about you, but I personally hear that first statement much more often.
If you have any questions about any of this, or if you want to chat further, I’m here to help, and happy to do so, just give me a call at 778-927-4306! Additionally, feel free to reach out to Chris for any mortgage-specific questions, his contact info is below: Chris Morrow 4Front Mortgages Phone: (604) 728-6642 Email: [email protected] Website: https://4frontmortgages.com/personnel/chris-morrow/ As of July 18th 2024, the province of British Columbia has made some changes which impact what a landlord, or new purchasor can and can not do, when it comes to establishing a tenancy, maintaining, one, or attempting to terminate one.
These changes have presented some new things to think about/consider when you are a landlord. The point of this blog post is to educate you about these changes as they certainly can impact the ease or difficulty of a transaction when you may be attempting to sell a place that is a secondary residence. So, let’s get started on what these changes are:
So with these changes, there is a lot to think about and I won’t give my opinion on if it seems right or wrong, but I will say it can take very careful planning as it can really make buyers, sellers, and tenants have a lot to consider, and agents need to be able to explain this all very carefully, because the penalties have become quite severe. A wrongful eviction can hypothetically cost 10’s of thousands of dollars if you have to come up with 12 rent penalty. My advise for a buyer, or seller, is to discuss the options with the tenant, as these regulations are what is required if the tenant is unwilling to come to some sort of agreement. A Mutual Agreement To End Tenancy is always an option, but often will require a very easy going, respectful and cooperative tenant, which isn’t always the case(especially if they are paying well under market rate, or are very tied to the place for whatever reason). That said, I often see a bit of compensation to the tenant make them quite a bit more cooperative. For example, you already have to give them their last month rent as part of a rental agreement (based on a first and last initial payment), so if you propose a 2nd free month for example this can really help motivate the tenant to be willing to move earlier. It might cost you a couple thousand dollars, but depending on your scenario as the buyer or seller, it might be way easier than complicating the purchase or sale, or having to cover 2 mortgages for an additional month or two because you can’t get in cause they won’t get out. Or if you are on the selling side, it is often best to get this signed and squared away prior to listing, as it can be a real turn-off to buyers if they know the tenancy might be a real hassle for their purchase timelines and needs. You want to make the property as marketable as possible, and dates of completion as flexible as possible to make it as workable for buyers needs as you can. Anyway, this is just a quick comb over of the regulations that were just rolled out through Vancouver, and British Columbia for that matter. I am happy to discuss the specifics and strategies to assist you in your real estate needs to talk about how to over come some of these hurdles in the most affective fashion. If you have any questions around these rental regulations, or any real estate related questions don’t hesitate to ask them below, or give me a call directly at 778-927-4306. Lastly you can book a call with me at a time that is convenient for you at this link here, and I will get in touch. Some new rental regulations are taking affect here in British Columbia as of May 1st, 2024 & it is certainly stirring up some conversation. The intent from the provincial government is to stop real estate investors from buying up what is already a lack of inventory in the housing market, and turning them into AirBnB's, VRBO's, or other vacation based rentals. Did you know there is roughly 20,000 homes/units in the province being used for these purposes? The goal of this new legislation is that this will bring more inventory to the long-term rental market, as those rates have soared in the recent years. The hope is that bringing more inventory to the market will ease a bit of that pain. Additionally, the other idea is that investors that do have multiple properties, and don't want to play the landlord/long-term tenant game, might be more inclined to sell these places, in-turn bringing more inventory to the real estate market for buyers as well.
I will not get into my opinion on all of this, as that is not my intention of this post. Instead, I simply want to lay out the guidelines of this new legislation to make it easily understandable for those who wish to know the details around, what is allowed, what isn't and break the regulations down to digestible chunks. So that said, let's get into it.... 1. Definition of Short-Term Rentals Under the new regulations provided by the province, any rental arrangement with a duration of less than 90 days falls under the category of short-term rentals. This includes a wide range of accommodations, from vacation homes to spare rooms rented out on platforms like Airbnb. In the city of Vancouver however, a short-term rental is any rental under 30 days. 2. Location Restrictions One of the most significant changes is the restriction on where short-term rentals can operate. Hosts will only be permitted to offer short-term rentals in their principal residence plus one secondary suite or accessory dwelling unit. This means that if you're renting out a property, it must be your primary place of residence(where you receive mail, live majority of your year, are registered for taxes, etc.) with the option to rent out an additional unit on the property like a laneway house or garden suite. However, this is different in Vancouver for example. In Vancouver you can only short-term rent the actual dwelling you live in, and not a secondary unit like a basement suite or laneway house, those must be used for long-term rental(31 days or more). This can get quite confusing as there is quite a bit of variance throughout the province. That said, it is important to look into each areas guidelines, as communities are able to file for special regulations at a more local level. This especially applies to communities of less than 10,000 people or that heavily rely upon tourism. This link will lead you to an interactive map that provides the different information for different regions: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/principal-residence-requirement#PRmap 3. Registration and Licensing Requirements To operate a short-term rental legally, hosts must obtain a valid registration number and a business license number. The registration process will require detailed information about the property, including the address, contact details, and a declaration confirming that it is the host's principal residence. Click here to apply for your permit in Vancouver. This is the first hurdle to clear if you are looking at doing short-term rental, if you are doing this from your principle residence and it is a detatched house that makes things a bit easier. If not, and it is an apartment, condo, or townhouse, you also have to look into strata by-laws, as those can also prohibit you to do short-term rental. Many buildings do not allow for it no matter if you are living in the place or not. 4. Enforcement and Penalties Some of these restrictions or regulations are not new but what is new is the provincial government getting involved and monitoring this much closer. With that the penalties for non-compliance have been drastically increased. The new regulations can result in fines of up to $3,000 per day, effective as soon as the Act receives Royal Assent, which is expected in the near future. It's crucial for hosts to ensure they meet all requirements to avoid facing hefty penalties. 5. Provincial Registry A provincial registry is set to launch in late 2024, requiring platforms like Airbnb to remove listings that do not have a valid registration number. This initiative aims to streamline the regulation process and ensure that all short-term rental operators are operating within the legal framework. 6. Local Bylaws While the provincial regulations set a baseline, local governments retain the authority to implement more restrictive bylaws based on their specific needs. Cities like Vancouver and Burnaby already have stringent regulations in place, allowing short-term rentals only in the principal residence and imposing additional restrictions on secondary units. In conclusion, the upcoming changes in BC's short-term rental regulations signify a shift towards more stringent oversight and regulation of the industry. Hosts must familiarize themselves with the new requirements and ensure compliance to avoid potential fines and penalties. Additionally, staying informed about any updates or changes to local bylaws is essential for maintaining legal compliance and operating a successful short-term rental business in British Columbia. Here are a couple links to the B.C. government websites that include this information: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals/short-term-rental-legislation Vancouver Specific: https://vancouver.ca/doing-business/short-term-rentals.aspx If you have any questions about these new regulations, I am happy to answer any questions. Additionally, I don't mean to spark any major debates here, but I would love to hear your thoughts on the whole thing. Feel free to drop your comments or questions below and I will address them. If you currently have short-term rentals and want to have a private conversation to further understand things, and come up with a game plan you can give me a call at 778-927-4306 and let's chat about the options for your scenario. Rainscreening of Apartments In Vancouver - What Is It? Why Is It Important? How To Spot It?10/26/2023 Vancouver, British Columbia, is known for its breathtaking natural beauty and lush landscapes. However, the city is also renowned for its frequent and sometimes heavy rainfall. This combination of stunning scenery and wet weather has inspired a unique architectural innovation in Vancouver apartments: rain screening. In this blog, we'll delve into what rain screening is, why it's crucial in Vancouver, and how it helps protect homes from the elements. The “Leaky Condo” in Vancouver Epidemic Leaky condos in Vancouver refer to a widespread issue in the 1990s and early 2000s when many multi-unit residential buildings, particularly condominiums, suffered from water ingress problems. This was primarily due to construction defects and inadequate moisture management, leading to structural damage and mold growth. Key points: Causes: Construction defects, including poorly designed or installed cladding and inadequate waterproofing, allowed rainwater to penetrate buildings.
![]() Understanding Rain Screening: Rain screening is a building envelope design and construction method that effectively manages moisture and water infiltration in a structure. It is commonly used in regions with high levels of precipitation, such as Vancouver. This system is designed to create a protective barrier between the exterior cladding of a building and its structural components. It plays a vital role in preventing water damage, mold growth, and structural deterioration. Rain Screening Components A typical rain screening system comprises several components, each serving a unique purpose: Exterior Cladding: This is the outermost layer of the building, such as siding, stucco, or brick. It acts as the primary defense against the elements.
Why Vancouver Apartments Need Rain Screening: Vancouver's climate is characterized by mild, wet winters and a high annual rainfall average. This unique weather pattern poses specific challenges for building maintenance and structural integrity. Without proper protection, apartments in Vancouver can fall victim to water-related problems, including:
Rain screening systems offer several benefits that are essential for apartments in Vancouver:
In Vancouver, where rain is a common occurrence, rain screening is not just an architectural feature but a necessity for protecting apartment buildings from the harsh elements. It is a vital part of the construction process that ensures the longevity, energy efficiency, and overall health and comfort of homes in this beautiful coastal city. By incorporating rain screening into building design, Vancouver apartments can continue to stand strong against the elements and provide safe, comfortable living spaces for their residents. How can you tell if a property is rainscreened: Determining whether an apartment building has been rainscreened may require some investigation, as it's not always obvious from a casual visual inspection. As a real estate expert I am always here to make sure you as the client are fully informed about the status of a building, including whether or not it has been rainscreened. Rainscreen systems are now-a-days typically installed during initial construction, or as part of a building renovation which many condos, apartments, townhouses, or detached properties have more than likely undergone significant updates to ensure this is done. Here are some steps you can take to determine if a building has been rainscreened: Ask the Property Manager or Landlord: The most straightforward way to find out if an apartment building has a rainscreen system is to ask the property manager, landlord, or the building's owner. They should be able to provide information about the building's construction and any renovations or updates. Check Building Records: Building records and permits can provide valuable information about a building's construction history. You can contact the local municipal building department or visit their website to access records related to building permits and renovations. Look for documents related to rain screen installations or major renovations. Inspect the Exterior: While a casual visual inspection may not always be conclusive, you can look for signs of rainscreen systems. Some clues may include visible gaps or openings in the exterior cladding that suggest an air gap behind it. Modern buildings with rainscreens may also have a different appearance to older buildings, such as a layered or textured façade. Consult with a Building Inspector: If you're serious about a particular apartment and want to ensure it has a rainscreen system, consider hiring a professional building inspector. These experts are trained to assess the condition and construction of buildings and can provide information on whether a rainscreen system is present. Talk to Current Residents: If possible, speak with current residents of the apartment building. They may have insights into the building's construction history or any renovations that have taken place. However, keep in mind that this information might not always be accurate or complete. Review Maintenance and Repair History: If you have access to the building's maintenance or repair history, it can provide valuable information. Frequent repairs related to water damage, mold, or structural issues may suggest that a rainscreen system is lacking. It's important to note that the absence of a rainscreen system does not necessarily mean the apartment is unsuitable. Many older buildings in Vancouver and other areas have successfully managed moisture without rainscreens. However, a rainscreen system can provide added protection and may be a desirable feature, especially in a region with high rainfall like Vancouver. If the presence of a rainscreen system is important to you, it's best to verify this information through the methods mentioned above before making a decision about renting or purchasing an apartment. Talk With Your Realtor: It is literally our job to figure all this stuff out for you to ensure you are making a well informed decision. Today, improved building practices and regulations have addressed these problems for the most part. However, due diligence is essential when considering older condominiums to ensure any previous issues have been resolved, and the building meets modern construction standards. Any questions about this topic, please don't hesitate to leave a comment below and I am happy to address them.
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