Considering buying a home that could use an update? A purchase plus improvements mortgage might be the right choice for you.
The purchase plus improvements mortgage is a customizable mortgage that will allow you to make home improvements as soon as you move into your new home by rolling the renovation cost into your mortgage. Improvements such as replacing the floors, updating a bathroom or replacing old wiring are some of the many ways to enhance the value of your new home.
Affordability
Even though there are some limits on what you can do, a purchase-plus-improvements mortgage is the most affordable way to finance a renovation. This is because of today’s low mortgage rates. A mortgage is the cheapest way to borrow. If you put an additional $40,000 on your mortgage, it will cost you far less than if you borrow $40,000 on a line of credit for renovations down the road.
Timeline
There are 90 to 180 day timeline on these mortgages, meaning you and your contractor must be prepared to finish any renovations promptly. The timeline is part of what makes this mortgage so great – you improve the value of your home and you get to live in it right away. The exact timeline will depend on your lender and your mortgage broker can help you navigate your options.
How It Works
The first thing you will do is work with your mortgage broker to be pre-approved for your maximum amount.
Then the fun part – find a home you love! Once you have found a home and your purchase offer is accepted, you will get estimates for the improvements you want to make. Your broker can then pass along the estimates to your lender for approval.
If your lender agrees that the renovations will improve the value of your home, they will send your broker an approval for the revised amount of your mortgage – the purchase price PLUS the cost of renovations.
On your closing date, the amount approved for your renovation will go to your lawyer, to be held until you’ve completed the proposed renovations. You will receive the funds once your renovation is complete. This means you must pay the renovation costs up-front from your pocket. Some choose to use a credit card or line of credit to get through the renovation period.
An appraisal will confirm that your renovations were completed within the agreed upon amount of time and then your lawyer can release the funds to you.
It’s important to note that your minimum down payment will be calculated based on the total amount of your home’s assessed value – the purchase price plus the price of the approved renovations.
Purchase-plus-improvements mortgages are the most affordable way to finance home improvements! Contact me today for more information – or if you have any other real estate question! I’d love to help!
The Okanagan is continuing to go down the path of a mild correction or a flat market. Central Okanagan sales are down about 10% and prices are down about 4% for the year to date. Some people would say that this would be a declining market. However, compared to what Alberta is going through, we are simply flat. Also, our markets are still substantially higher/better than the 10 year averages. One of my favourite phrases these days is: the market is a good, balanced market, not boom or bust.
The interesting thing to take note of is what is continuing to happen in big cities like Toronto and Vancouver. Both these 2 giants are continuing to show promise and positive gains in their lower-end markets. To give you an idea of how much statistics from Toronto and Vancouver affect the overall averages of the country, consider this. There are about 108,000 REALTORS® in Canada. About 62,000 of them are in Toronto and Vancouver. This explains why, when the media is reporting Canadian Real Estate statistics, it really has nothing to do with the market that your home is in, unless you live in Toronto or Vancouver.
The market in the Okanagan will remain steady as we go forward into 2020. Keep in mind that the market will follow it’s usual annual trends. In other words, the last quarter of each year and the first quarter of the following year are always the slowest quarters of every year.
If you are a first time home buyer, click here to read my recent blog on the new incentive program that was just introduced.
As always, this is the Real Estate World according to Rom.
New National Housing Strategy Means Good News for First-Time Home Buyers
The new strategy is a ten year, $55 billion plan said to give more Canadians across the country a home. Check out the images below for the new incentive program details. If you are a first-time home buyer then you must check this out!
Click the images below to enlarge the First-Time Home Buyer Incentive Program brochure!
To read more about the National Housing Strategy visit the Canada Mortgage and Housing website here.
I love this Fall video from Tourism Kelowna. It showcases stunning shots of the beauty (and food!) that Kelowna has to offer. I hope you enjoy it too! For more information on Kelowna living, visit my About: Living in Kelowna page by clicking here.
Fall is here and with that brings the falling of leaves, cooler temperatures and a new season of the real estate world. Like I have stated in the last few months, the current market is flat. No exciting rises or bubble bursts and there will be none in the immediate future. Bubbles burst when the market has shot up like a rocket like 2004 to 2007. Markets rise dramatically when the market previously fell off a cliff like in 2009 to 2013. We have nothing like that going on. The market is good; not great, not terrible but good.
A new report shows disparity in home price trajectories across Canada, including some large decreases. The CENTURY 21 analysis of home prices reveals that some communities have seen some steep decreases in price per square foot in the past year, most notably in British Columbia. Brian Rushton, Executive Vice-President of CENTURY 21 Canada said, “It is not surprising to see Vancouver prices drop so much, but the drop is actually more significant in some Metro Vancouver suburbs like West Vancouver and secondary B.C. markets such as Vernon and Kelowna”.
While the report is showing prices drop, sales activity is steady. The townhome market under $500,000 continues to be very active. The single family house market is all over the place. The market for homes over $1 million is very slow right now, with only 3 sold last month. Condo sales are still strong too but I suspect this market to stabilize within the next 2 years.
The only insight we can give you is that so far it looks like 2020 will be very similar. There may be a slight increase in the markets in 2020 caused by some of the positive lending changes; lower interest rates, lower qualifying stress test rates and the new first-time buyer incentive program. These programs and changes will allow a small percentage of the population the ability to buy when they could not before the program. Also, the five year bond yields and mortgage rates (yes, there is a correlation there), are back at or have broken levels compared to five years ago.
As always, this is the Real Estate World according to Rom.
Every month I sort through the real estate market stats and I get the feeling that the information can feel repetitive after a while. The real estate market changes very slowly, especially compared to the stock market. This year, the market is considered “good flat’, albeit still flat. The Central Okanagan is having a good year as far as sales are concerned. Yes, they are down compared to the last three years. However, they really did need to come down. Click the yellow text below for a larger view of the market comparison of July 2018 to July 2019.
We have to try and deduce what the high paid economists are thinking by the changes they make to the lending institutions. There is more evidence that the markets, both local and national, are inching towards a modicum of positive energy. The CMHC has now dropped their qualifying rate for the Stress Test to 5.19%. Interest rates continue to inch down. On September 2, the CMHC is rolling out its first time buyer’s equity plan to allow some exceptions to what they call a “First Time Buyer”. For the first time in months, Toronto and Vancouver are reporting a slight increase in sales and prices of certain property types. Locally, we continue to reap the benefits of the big city prices as they push home buyers into the Okanagan.
My prediction is that my monthly real estate stats reviews will continue to be “boring” until the end of the year. But, that is just the Real Estate World according to Rom.
The market is remaining steady to our predictions of a soft correction for this year. Even though most of the stats report a decline, the absorption, (which is the stat that illustrates the balance of supply and demand) is still above normal for a balanced market. Usually, a balanced market will have an absorption of 12 to 14%. Central Okanagan is slightly above that. The other factor is that realtors are still reporting heavy competition in offers below $600,000 in the Central Okanagan area. In general, buyers in this price range are still having trouble finding decent, well-priced listings to buy that do not already have offers on them.
Overall, the market in the Okanagan-Shuswap region are the best they can be. In other words, they are strong yet sustainable. We must be careful not to compare too heavily to markets from years 2007 and 2016. We must look at our present day market as busting. 2007 and 2016 were not normal market years. They were booms. We are now steady and balanced. See below for the first half year comparison from 2018 to 2019 for Central Okanagan. As always, this is just the Real Estate World according to Rom.
Statistical Comparison of Jan-June 2018 and Jan-June 2019
Stunning walk-out rancher with unobstructed lake views. This 6 bedroom home features oversized doors that lead to large deck that takes advantage of the lake views while offering privacy. Beautiful quartz countertops in kitchen, main bath and ensuite on the main. Lovingly cared for home is like new and has 2 bedroom legal suite that has never been lived in! Tastefully designed with vaulted ceilings and large windows that make this home very bright while capitalizing on views from both levels. Beautiful master ensuite that has roughed in for steam shower. Low maintenance yard. Close to Glenrosa Middle School, Glenrosa Elementary School and only minutes to all the Mega stores/Shopping. Any one would be proud to call this home!!!! PROUDLY MARKETED BY TERI FISHER – CENTURY 21
For more images and information, visit the Century 21 website here.
Unique Concept & unique Opportunity! Own a modular, eco-friendly restaurant serving Pizza, Pasta, & Ice Cream! This turnkey franchise runs on electricity – no oils, gas, or hazardous products. Currently, they have negotiated a great location at the high traffic Enterprise Way in Kelowna. Lease is only $500 per month, this includes power! Crustlab recently added 2 other menus, besides the one local, on site menu, they also feature an online sandwich menu and online burger menu through Uber Eats. This business is profitable. With potential to expand to other BC cities and with multiple financing options, this is a prime opportunity to own a distinctive, sustainable restaurant concept. Financing available.
Eagle Valley Storage Marine & Lodge is located approximately 3 km north of Sicamous, on a 9-acre property, just off the Trans Canada Hwy. It features a large boat and recreational complex with four acres dedicated to buildings, boat, RV & Sled storage, office/shop building, and accommodations. The shop is a spacious, heated two-story building with an elevator, offering upper-level sled storage and a lower level for Marine Mechanics. There’s also an office & retail store with storage and a bathroom, two full suites, and a separate large lodge with an open concept living area, fireplace, games room, poker table, multiple bedrooms, and six bathrooms. The property provides heated and cold storage options, full Marine services, detailing, valets, and accommodations. Past services included sled and boat rentals and sled guiding, which could potentially be reintroduced to substantially increase revenues. There is also opportunity for more boat repairs and maintenance. This business has tons of growth potential. The shop comes with a Snap-on tool chest, welder, built-in pressure washer, and other equipment. The lodge is fully furnished and includes a hot tub, barbecue, skid steer, and tractor.
With over 22 years of experience in real estate Rom is extremely knowledgeable about developments and market conditions in the Kelowna area. This includes Penticton, Summerland, Peachland, West Kelowna, Kelowna, Lake Country and Vernon.
Our Team is Here to Assist with Selling your Business
Our team has experience in selling businesses, with or without property. We sold anything from uniquely positioned, specialized businesses such as a dental lab to retail and manufacturing businesses in the Okanagan.
Whatever business you want to sell, we will create a tailor-made marketing plan for you and give your business the most exposure through the largest business-for-sale network in Canada and the US.
In order to assist in effecting the sale of your business, we offer the following services:
Before we promote and market your business, we will commence with a valuation of your business with one of our certified business valuators, unless you have already completed a recent valuation yourself. The Business Valuation will ensure that we market and sell your business at fair market value.
IDENTIFYING THE RIGHT PURCHASER
Once the marketing and promotional tools have created interest from a potential business buyer, we will identify and qualify the right purchaser for your business by asking the right questions.
PRESENTING YOUR BUSINESS
We will ensure that besides the business evaluation, we will have all the proper financials, lease information and legal in place to transition your lead into a buyer.
NEGOTIATING THE SALE AND DUE DILIGENCE
We will allow the buyer a reasonable time to review and assess your business. We negotiate the best terms and conditions, including the right price for you. Our goal is to exceed your expectations.
COMPLETION
Assisting you in the Completion and Possession Process to ensure a smooth transition.
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MARKETING & PROMOTION
NATIONAL & GLOBAL PROMOTION OF YOUR BUSINESS THROUGH NETWORKS We will promote your Business by contacting Rom’s Sphere of Influence, his Network of Certified Business Immigration Consultants and Immigration Expo Contacts in Europe. There could be a buyer hidden right there, through his Networks.
SOCIAL MEDIA
Rom will be using all the main social media platforms, such as Facebook, Instagram and LinkedIn, to promote your business by paid social media campaigns with your consent. He will also be using his own Facebook Okanagan Businesses for Sale and other pages to display and promote your business listing.
INTERNET
Listing the businesses on the business section of the Multiple Listing Service® of our Board (www.REALTOR.ca)
Get your business the most exposure through the largest business-for-sale network in Canada and the US with over 3 million viewers per month!
Other websites where you will find your business listing such as:
PROFESSIONAL PHOTOGRAPHY Our professional photographer will visit your business and take high-quality property and business photos. These images are then used in all our marketing efforts to present your business at its very best.
DIGITAL INFORMATION PACKAGE We will be sending potential business buyers a comprehensive digital information package of your business, whether they are visiting your business or inquiring about it.
CONFIDENTIAL
We highly value your business and are committed to maintaining the strictest confidentiality. No sensitive information will be disclosed under any circumstances until a mutually signed Non-Disclosure Agreement (NDA) is in place.
With over 20 years of experience in real estate Rom is extremely knowledgeable about developments and market conditions in the Kelowna area. This includes Penticton, Summerland, Peachland, West Kelowna, Kelowna, Lake Country and Vernon.
