February 23, 2015

FREE

The Key to

REALESTATE

2015

What you need to know to make good decisions for your greatest asset.

Buying, Selling, Mortgages, Realtors, Decorating, Landscaping, Home Improvement

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The Key to REAL ESTATE 2015

Word is out about Nanaimo ROSANNA DUFFY REAL ESTATE

L

ocated in the central region of Vancouver Island on the picturesque eastern coastline, Nanaimo is a small-sized city with big-sized benefits.

Nearly 90,000 people make it their home and according to the Vancouver Island Real Estate Board’s 2013 Buyer’s Profile, more than 50 per cent of the buyers that year came from outside the area. So word is getting out.

What makes Nanaimo so desirable?

There is something for everyone in Nanaimo, from oceanfront apartment-style condos, family homes in neighbourhoods with access to excellent schools and recreation, character homes in the downtown

“

If you are looking for an affordable home in a safe and dynamic community, come see what Nanaimo has to offer.

area, to large acreages and waterfront residences.

Nanaimo is home to excellent public and private schools and Vancouver Island University offers a wide selection of programs, attracting both local and international students.

Nanaimo Regional General Hospital, our state-of-the-art facility, is second to none.

Nanaimo, with its temperate climate, is known as the Mediterranean of Canada.

How would you like to be able to golf year round? Skiing is only an hour’s drive away.

Nanaimo is home to three lakes and more than 880 hectares of parkland.

Did you know we have the best cold water diving?

For those looking for the finer attractions, Nanaimo is home to a professional symphony and theatre company, as well as a plethora of other arts and cultural groups.

Nanaimo is a city with a healthy and varied population, attracting young families to

seniors.

With a diversified economy of more than 5,400 businesses, Nanaimo services a trading area of more than 350,000 people.

With all these wonderful things going for it, how does Nanaimo’s housing market compare pricewise?

The following represents the benchmark prices for December 2014, from the various real estate boards.

Victoria’s average single family home was valued at $558,500, which seems a great deal compared to Vancouver, whose benchmark hit an alltime record high of $1,002,200.

And Nanaimo? The average single family home’s benchmark price was $338,000.

If you are looking for an affordable home in a safe and dynamic community, come see what Nanaimo has to offer.

You won’t be disappointed. ◆ Rosanna Duffy is a Realtor with Coast Realty Group.

The Key to REAL ESTATE 2015

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Key factors influence real estate cycle LYNN DONN REAL ESTATE

I

t is possible that you have heard the terms “buyer’s market” and “seller’s market,” but do you know what they really mean and how they are determined?

The Nanaimo real estate market is cyclical, which is why you may have heard the term, “real estate cycle.” Several key factors influence this cycle, including interest rates, employment growth, investment growth, construction and even immigration. All influence whether there is a buyer’s market,

seller’s market or a balanced market.

A buyer’s market is when there are many more homes for sale than there are buyers. As a result, prices might drop over time as home owners become eager to sell their property.

A seller’s market is when interest rates are low so there are many qualified buyers and not many homes for sale. Buy-

ers must make quick decisions and may face multiple offers on the home they have chosen to buy.

A balanced market occurs when interest rates are affordable and the number of buyers and sellers in the marketplace are equalized. The scales don’t tip in either direction, meaning the market is normal without experiencing volatile swings.

Single family homes

60 per cent

Balanced to sellers’ market

Condos (apartments)

44 per cent

Balanced

Condos (patio homes)

79 per cent

Sellers’ market

Townhouses

56 per cent

Balanced

Lots

43 per cent

Balanced Sales to list ratio by property types in 2014.

Source: VIREB

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VICTORIA 1581 Hillside Ave. 250-592-1058

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The Key to REAL ESTATE 2015

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To determine what kind of market we are experiencing we use a statistical measure called the sales-to-listing ratio.

According to Canadian Real Estate Association, a sales-to-new listings ratio between 40 and 60 per cent is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets respectively.

Interestingly, the average sale prices increased in 2014 over 2013 in all property types except for condo apartments.

Buyer’s and seller’s markets fluctuate. It is not unheard of to have more than one market type in the span of 12 months. When deciding whether it is time to buy or sell real estate it is important to review current market stats with your Realtor. ◆ Lynn Donn is a Realtor with Royal Lepage Nanaimo Realty.

PROPERTY TYPE

PER CENT CHANGE IN SALE PRICE FROM 2013

AVERAGE SALE PRICE AT END OF 2014

Single family homes

+5

$370,760

Lots

+7

$165,832

Condo (apt.)

–2

$214,974

Condo (townhouse)

+5

$261,047

Condo (patio)

+5

$285,487

Lori Brothers

250-616-0112

lbrothers22@gmail.com www.coastrealty.com

Source: VIREB

The Key to REAL ESTATE 2015

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Discounted mortgage rates dominate CAROLINE ROACH & JOHN WOODS MORTGAGES

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oday’s mortgage market is a highly competitive one and record-low interest rates are only fuelling the fire.

One thing that seems to confuse consumers is why a bank would advertise a low five-year rate of 2.99 per cent, but post on its website the fixed five-year rate at 4.79-4.99 per cent.

The confusion is understandable and the answer is that the higher rate is the ‘posted’ rate and the lower

rate is the ‘discounted’ rate.

Which leads to another question: why the two different rates?

The posted rate has been what the banks and credit unions have traditionally used for their mortgage rates. It is the rate you will see ‘posted’ on most bank and credit union websites and in their branches.

For many years, it was the rate that they would offer their customers at renewal before the competition of nonbank lenders forced them to begin discounting their mortgages. The non-bank lenders were willing to reduce their profit margin by lending at a lower rate to earn market share, and thus the ‘discounted rate’ was born.

The catch with the dis-

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The Key to REAL ESTATE 2015

counted rate when using a bank lender is that the amount the rate was reduced from the posted rate is later taken into account when doing a penalty calculation for breaking term early, and can often inflate the penalty.

The non-bank lenders don’t add this into their penalty calculation as they tend not to use posted rates and offer only discounted rates.

With the changing landscape of the mortgage industry, discounted rates have become the predominant rate advertised and offered to consumers, making the posted rate less relevant.

The one area where the posted rate is still quite relevant is the Bank of Canada’s weekly calculation of the ‘qualifying’ rate.

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This is a rate that reflects the posted five year rates of all Canadian chartered banks and must be used to qualify a borrower for a variable rate mortgage or a term of less than five years.

This is because borrowers with one- to four-year terms and variable rates are more exposed to rate increases and must be able to prove they could weather a sudden rise in rate.

The qualifying rate at the time of writing this was 4.79 per cent which is quite a bit higher than current discounted fixed or variable rates for any term.

There are a number of websites dedicated solely to comparing the discounted rates of various lenders and they can be a good tool when researching mortgage financing.

However, it is easy to get caught up in the interest rate and forget that there is much more to a mortgage.

Terms such as portability, pre-payment policies and penalty

calculations can be just as important, depending on the amount of flexibility you need in your mortgage. ◆ Caroline Roach and John Woods own Fitzwilliam Mortgage Corporation.

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Program provides efficiency information A new program allows Realtors to provide a home energy evaluation as part of the home buying or selling process.

The Real Estate Energy Efficiency Program, launched in August 2013, features a certified energy advisor who does the home assessment and provides a report to homeowners with suggestions on where to make improvements and the opportunity for energy savings.

Real estate is a highly competitive environment. Seeing an opportunity to support his industry, Realtor Rob Grey with Re/Max of Nanaimo originally floated the idea of a Realtor lead energy efficiency program back in 2011.

The idea quickly gained momentum with founding partners Regional District of Nanaimo, City of Nanaimo, B.C. Real Estate Foundation, B.C. Hydro PowerSmart and Vancouver Island Real Estate Board all providing support.

“

Realtors are always looking for tools and information to help clients make informed home improvement decisions. The training and subsequent home energy assessments provide valuable information to both buyers, sellers and those considering more efficient home upgrades.

Forty-two Realtors from Duncan to Campbell River have participated in a comprehensive, three-hour training program. Ten case studies and 62 home energy assessments have been completed throughout Vancouver Island.

The data from these home assessments will provide the basis for additional case studies, providing a database to learn from for Realtors and homeowners alike.

Additional tools such as a Return on Investment calculator are planned in the coming months.

For more information, please visit www.vireb.com/reep.

The relationship Realtors have with clients is deeply enhanced around the importance of energy efficiency in the real estate sales process.

“[Real Estate Energy Efficiency] is truly designed by Realtors for Realtors and is changing the home buying and selling conversation,” says Grey. “The relationship Realtors have with clients is deeply enhanced around the importance of energy efficiency in the real estate sales process.”

Navigating the ever-changing home energy landscape is difficult.

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The Key to REAL ESTATE 2015

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The Key to REAL ESTATE 2015

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Make strong first impression with buyers JAN LAURIE HOME STAGING

H

ome staging is the task of preparing and presenting your house for selling. As a seller you want your house to make the strongest first impression to the greatest number of buyers.

Many people today hire certified Home Stagers to guide them through the preparation process.

The earlier they hire the stager the better. In fact, some people have a consultation a year ahead of time in order to

have extra time to prepare. It is more common, however, that people call a stager as soon as they decide to sell.

Selling your home can be an overwhelming process. We live with our ‘stuff’ everyday so it can be difficult to know how and where to begin.

Stagers bring fresh eyes and think like the buyer, which is hard to do when you live in the house.

This process is more than decorating as there are also emotional and psychological layers a stager thoughtfully considers when preparing a house for the market.

Stagers are trained to help you maximize the best presentation possible for your home.

Good presentation also results in top-notch MLS photos. Buyers looking for a house

today rely on the MLS photos for choosing which houses they want to tour. It is also likely there will be more showings, a quicker sale and better price.

To the buying public, a wellstaged house helps them visualize how their furnishings can fit into each room.

Staging a home is usually a two-step process.

The first step is a two-hour consultation where you walk together through your house and yard.

The stager will guide you with verbal suggestions, answer your questions and leave a helpful list of priorities for you to follow.

Many clients say this list and ‘coaching’ helps lessen the stress involved in preparing to show their house.

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The Key to REAL ESTATE 2015

“

A date will be set for the stager to return for the hands-on work of Step 2.

This important stage involves final placement and arrangement, inside and out.

Attention outside is paid to the curb appeal that provides the first impression of a home. Inside details such as precise furniture placement for optimal balance, sight lines, focal points and traffic flow for each room are covered.

Placing lights and hanging art also makes a subtle but powerful difference.

Cost and services may vary from one company to another. It is wise to select a staging company that suits the outcomes you are hoping to achieve.

Many furnished houses will cost less than half a per cent of the asking price, to be ready to put on the market. ◆ Jan Laurie is a certified home stager.

As a seller you want your house to make the strongest first impression to the greatest number of buyers.

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The Key to REAL ESTATE 2015

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New kitchen gives market edge TYLER ANKERSTEIN RENOVATION

I

f you and your family are considering a move – either buying or selling a home – don’t overlook the importance of a functional, attractive and up-todate kitchen.

The kitchen can make or break the sale of a home and renovating your kitchen could give you the edge in a competitive real estate market.

Deciding how much to spend on a kitchen renovation can be difficult. How much return on investment are you hoping for?

What is the time frame that you

have for the project? How do you update a kitchen yet remain true to the style of the rest of the home? Will there be design changes in your kitchen update or are you happy with the current layout of the kitchen space?

Selling your home

Most homeowners want to present their home to potential homebuyers as clean, attractive and updated while staying within a reasonable budget.

Additionally, the real estate process should be as quick and painless as possible.

One sensible option is to re-face your kitchen cabinets.

This involves changing the doors of your current cabinets to reflect a more modern and clean style that will enhance the value and beauty of your home.

Your current cabinetry may not

“

Deciding how much to spend on a kitchen renovation can be difficult. need to be changed or moved unless you decide you want to make design changes to the current layout of your kitchen.

Advantages of re-facing your cabinets instead of replacing the entire kitchen include saving money and resources, (re-using the existing boxes instead of buying new ones) and convenience and cleanliness (the entire process takes less time and makes less mess).

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The Key to REAL ESTATE 2015

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It is also a great time to make other simple changes too, like adding new door handles and pulls, or making small modifications to the design that will attract the attention of the homebuyer.

Buying a Home

Perhaps you have found your dream home; it is in the right location, at the right price and the lot is perfect for your family.

What if the kitchen just isn’t your style and you are re-considering your decision to buy the home?

Re-facing the kitchen can be a great way to keep your costs down and is often less disruptive and time consuming than having a new kitchen installed after you’ve moved into your new home.

You can change the style and color of your cabinets to reflect your personal

taste while keeping in mind the practical needs of your family.

Modern conveniences and features can often be added to existing cabinets, such as more drawers or easy access rollout shelves.

As well, soft-close mechanisms for doors and drawers are often able to be retrofitted to existing cabinets.

Every family is unique but most of us spend a considerable amount of time in our kitchens cooking, baking, socializing, laughing and creating memories.

Before you dismiss your potential dream home because of the color or style of the cabinet doors, consider re-facing and creating the kitchen that will always be the heart of your home. ◆ Tyler Ankerstein manages The Kitchen Technician in Nanaimo.

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The Key to REAL ESTATE 2015

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Low-water plants smart choice for gardens

L

ow-water garden plants are a smart choice as these resilient plants can keep gardens looking lush and beautiful regardless of water restrictions.

In fact, low-water gardening has become a popular trend among eco-conscious gardeners and even is a cost-saving measure for homeowners.

Establishing a garden of drought-tolerant plants requires knowledge of hardiness zones and which plants will thrive in certain areas.

Native plants, in general, will be more tolerant to fluctuations in weather than plants that are imported.

Contact a garden center and speak with someone knowledgeable about plants that will do well in low-water conditions.

Butterfly bush is very hardy and requires little water. Although it is considered an invasive plant in

some areas, gardeners who keep on top of seedlings and off-shoots can keep the plant in control. This shrub will create an enormous amount of flowers that will appear in the spring and will continue to bloom throughout the summer. The

butterfly bush also attracts scores of butterflies to a landscape.

Pink evening primrose is full of delicate, pink flowers that spread on runners. It prefers dry soils, and even though it can thrive when soil quality is poor, it cannot tolerate soil that is too wet.

Gardeners who would like relatively low-maintenance, drought-tolerant plants can opt for succulents.

Succulents, which include aloe, cacti and jade, are characterized by thick, fleshy water-storage organs.

Succulents prefer bright light and can thrive in south-facing conditions. It’s good to concentrate the most amount of watering for succulents during the spring growing season. Keep soil well-drained to avoid damage to shallow roots.

Drought-tolerant plants are a good idea in those regions where weather is naturally arid or if homeowners prefer plants that can grow regardless of seasonal water restrictions.

THINKING OF SELLING YOUR HOME IN 2015?

To successfully market your property, call any of the Realtors in the Nanaimo

REAL ESTATE

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The Key to REAL ESTATE 2015

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The Key to REAL ESTATE 2015

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The Key to REAL ESTATE 2015