What are the differences between concrete condos and wood frame condos?

What is the difference between concrete high rise buildings and wood frame low rise buildings?  This is a common question I get asked on a regular basis.  There are a few differences between the two types of homes however neither one is better than the other.  It is based soley on your personal preference.

Wood frame units are not as noise friendly as concrete condos.  However the newer wood frame condos are attractive to first time home buyers because they often offer larger spaces for the same price as a concrete condo.  For example, in the burnaby north brentwood mall area, a one bedroom in a newer wood frame building around 650 sqft will go for around $249,000 to $289,900 whereas a similar unit in a concrete highrise will go for $289,000 to $320,000. 

The home insurance on wood frame units will be a little higher than on concrete condos.  Wood frame units are more prone to fire and as such the home insurance on these homes will be a little higher. 

There are also certain areas in which all or most of the homes are wood frame so if you wanted to live in those areas you would have to purchase a wood frame unit.  For example in the UBC area, most of the homes there are low rise.  They do also have some concrete low rise condos available as well.  Most of the units in this area are leasehold.  Another area where the majority of homes are low rise condos would be in kitsilano.   I hope this helps.

What is the difference between variable and fixed mortgages?

 

Many of my clients have been asking me what the difference is between variable and fixed interest rates so I decided to get my mortgage broker to write up an article on it and post it below.  Here it is:

Variable Vs. Fixed

 

Variable mortgage rates are tied to the bank’s Prime lending rate, which is directly linked to the Bank of Canada’s Overnight Rate. In most circumstances, the Prime lending rate will change in the same direction and by the same amount, as any change to the Overnight Rate. Therefore, if the Bank of Canada announces a decrease in the Overnight Rate by one quarter of 1%, then you can expect most Variable rate mortgages to also drop by one quarter of 1%. 

Fixed mortgage rates, in contrast, are determined by yields in the bond market, and do not fluctuate with changes in the Prime rate. Therefore, while the Central Bank’s decisions do impact Variable rate mortgages, these decisions do not influence Fixed mortgage rates. It is not uncommon, in fact, to see Fixed mortgage rates increase while the Prime rate decreases, and vice versa. So unless you are shopping for a Variable rate mortgage, don’t pay attention to the hype surrounding interest rate announcements by the Bank of Canada.

 

In order to determine where Fixed rate mortgages are headed, it is useful to study changes in the bond market. Consistent increases or decreases in the yield on the bond that corresponds with your mortgage term should give an indication of where your rate is headed. For example, if you are interested in a 5-year mortgage rate then track the equivalent 5-year Government of Canada bond; if you are interested in a 1-year mortgage rate then track the equivalent 1-year Government of Canada bond.

 

Given the current economic climate, consisting of historically low Government of Canada bond yields and Fixed mortgage rates, now is the ideal time for prospective homeowners to obtain a Pre-Approval. Not only does a Pre-Approval secure your financing in advance of the home search process, but it also protects you against potential future increases in interest rates. This is accomplished through a “Rate Hold”, which is typically valid for 90-120 days. Therefore, if rates increase while you search for your ideal home, you can rest assured that you still have access to financing at your Pre-Approved rate. However, if rates decrease during the interim period, your rate will automatically float down to the lower rate.

 

 

 

Discounted Presales in Yaletown

Amacon is offering discounted presale units starting on April 4th.  They will be offering a minimum of 22 percent discount on their Beasley development located at Homer and Smithe in Yaletown and will be offering original purchasers the chance to refinance their units at the discounted prices.  Take a look at their site http://www.thebeasley.com/ for floorplans.

Great Investment Opportunities in Yaletown Park

There are currently some amazing opportunities in the Yaletown Park Towers.  These towers are well desired by both home owners as well as investors.  It is extremely easy to rent out suites with one bedrooms ranging from $1500/ month for a one bedroom unfurnished up to $2800/month for one furnished.  Suites are well laid out with no wasted space and the location is perfect.  Only minutes away from Marinaside, Yaletown, Robson, restaurants, shopping, recreation.  What more could one ask for?

The Beautiful Bayshore Area

Have you ever noticed how beautiful the bayshore area is?  Even on a cloudy Vancouver day, Bayshore Drive is stunning.  I love how quiet the neighbourhood is, how close you are to the water and to Stanley Park and how it feels like such a community over there.  It is close enough to downtown but far enough that you are not in the midst of everything.   I have met some amazing people around the area in particular the concierge at 1616 Bayshore Milanka.  She is such a pleasant person to be around and extremely helpful as well.  If you are ever in the Bayshore area, make sure you say hi to her!

Costs of Purchasing Real Estate in Vancouver

 

As a home purchaser in B.C. you may be responsible for the following costs:

1.   CMHC fees apply if less that 20% down payment. Application fee + 0.5% – 3.75% (premiums/fees subject to change) of the total purchase price. Can roll premium into mortgage

2.   Property Transfer Tax (Provincial – cannot be rolled into Mortgage)   
1% on the 1^st $200,000
2% on the balance.

First time buyer exemption available upon meeting the following qualifications:

a.   Must be financing 70% or more of the purchase price.

b.   Mortgage term at least one year & Mortgage balance cannot be reduced by more than $11,000 or below 70% of the amount borrowed, during the 1st year.

c.   Purchaser never owned an interest in a principal residence before … anywhere!

d.   Purchase price not to exceed $425,000.

e.   B.C. resident for more than one year prior to registration/permanent resident of Canada.

f.    Property will be principal residence.
*A buyer who ceases to maintain the residence as his principal residence prior to the first anniversary of the registration date may be eligible for a pro-rated exemption.
* A property with a fair market value of up to $25,000 more than the above limits may be eligible for a proportionate amount of the exemption.
*Other requirements may apply-contact Property Transfer Tax info line 1-250-387-0604 or visit: www.rev.gov.bc.ca/itb/ptt/ptt.htm for details/changes.
*Pre-completion (new homes) Tax is based on “market value” at the time of completion.

1.   Adjustments Costs any prepaid utilities/taxes paid by the seller prior to closing.

2.   Mortgage application and appraisal fees that the financial institution may charge.

3.   Survey certificate/Title insurance (house), if required by the lender.

4.   Legal Fees for closing and conveyance. $800 – $1,200+

5.   Property Insurance as required by the lender.

6.   Goods & Services Tax – GST. (Federal. New properties only & can be rolled intomortgage)
*3.5 – 6% of the purchase price (approx). Rebates available for principal residence, based on purchase price & on a sliding scale. i.e: $350K or less – 36% max or $8,750. approx. 3.5% GST. Sliding scale based on purchase price $350 – $450K. No rebate over $450K
*contact your accountant or the GST info line (1-800-959-5525) www.ccra.gc.ca    for further details/qualifications.

I hope this helps.  If you have any further questions, please don’t hesistate to call me at 604-780-7877 or reach me through my website at http://www.leilanihomes.com/contactMe/index.php.