Darin Germyn - Real Estate Professional : Latest Blog Posts

New property listed in Guildford, North Surrey

Sat, 21 Aug 2010 09:08:05 GMT

I have listed a new property at 106 10438 148TH ST in Surrey.

You found it. Not ground floor and most affordable condo in all of Surrey! Guildford Greene just steps to elementary school, shopping, parks and rec center. This building is undergoing a retrofit scheduled to be complete approxMarch 2011, and will be one of the safest buildings in Guildford. Get in before the value catches up with it's retrofit work. Spacious 1 bedroom with laminate floors, large deck on the quiet side of the building. Great security in this building and has great management. Rent it out or live in it, this ugly duck is about to turn into a swan, notice the opportunity. You found it!

What to do about falling real estate prices?

Thu, 19 Aug 2010 21:00:10 GMT

I penned this editorial to calm fears that the real estate market in Vancouver was collapsing and I've added some brief comments at the end.

Living in Canada's most expensive housing market, residents of the Lower Mainland are obsessed with real estate prices and mortgage rates.

And no wonder. The benchmark price for detached homes in Metro Vancouver last month was $793,193. A down payment of 25 per cent would leave the buyer with a mortgage of $594,894, in which case a difference of just one percentage point in the interest rate can vary monthly payments by $500.

In comparison, the average price of a house in the Greater Toronto Area is $420,482. The standard down payment brings the mortgage to $315,316 and the interest rate impact to $260.

Given that a small hike in interest rates can mean the difference between cabbage and caviar, buyers, sellers and those facing mortgage renewal watch housing indicators as closely as equity investors follow stock market indexes.

News this week that home sales in Metro Vancouver plummeted by 45 per cent in July from a year earlier caught many real estate watchers by surprise. Some said the drop signalled a buyer's market, although a 33 per cent decline in the number of MLS listings last month from July 2009 suggests otherwise. Moreover, the decline in sales year over year is somewhat misleading in that July 2009 was a record for that month.

In the same vein, mortgage rate cuts by major Canadian financial institutions last week are being seen as competitive positioning in the face of a real estate slowdown. Most banks have lowered their five-year fixed rate by 10 to 20 basis points to 5.59 per cent.

But, unlike variable-rate mortgages, which reflect the banks' prime rates, fixed-rate mortgages are set in relation to yields in the bond market. Bond prices have recently been moving higher, pushing yields lower -- there is an inverse relationship between price and yield -- so the rate on fixed-rate mortgages has been reduced accordingly.

This all means that buyers have a window of opportunity to buy a residential property at a price below what they might have paid a few months ago and negotiate a mortgage at a slightly lower rate than what was offered a few weeks ago.

Similarly, those refinancing could get a better deal on rates, with several institutions also advertising that they'll pay the transfer fees if borrowers switch their mortgages to them.

Sellers, on other hand, may have to lower their expectations and either slash the asking price or be prepared to wait longer for an acceptable offer.

For the rest of us, the gyrations of real estate values and mortgage rates shouldn't keep us up at night. A house is not a stock, to be sold when earnings disappoint or a sector falls out of favour. Most people buy a home to live in it, to raise families, to seek refuge from the rat race, and -- as comedian George Carlin once explained -- to keep their stuff. Providing homeowners have purchased a property at a price they can carry within their means, and can ride out the ups and downs of interest rates without lifestyle disruptions, the changing market value of their home is largely irrelevant.

To anyone buying, selling or refinancing, good luck. To everyone else, relax, fire up the barbecue and enjoy the rest of the summer.

So there it is. If you can comfortably make the payments, I don't see anything to be gained by walking away from a mortgage that's underwater. If you do, you'll not only lose the money you have invested in the house to date, you'll damage your credit rating. That being said, it might be a few years, perhaps a decade, before real estate prices return to the heady levels of 2007. But there's a good chance they will. They long term appreciation of Vancouver homes is roughly eight per cent. That's better than the long-term return on stocks.

However that might be too long to wait for some folks who need to downsize, move to a new job or sell for whatever reason. Time then to talk to a financial adviser or lawyer about the available options.

By Harvey Enchin

New property listed in Central Pt Coquitlam, Port Coquitlam

Fri, 06 Aug 2010 09:07:57 GMT

I have listed a new property at 2187 PITT RIVER RD in Port Coquitlam.

See details here

Value of this property is in the land. OCP designated RA1 (Residential Townhouse). House is tear down.

Illegal Suites in Surrey

Tue, 27 Jul 2010 19:59:29 GMT

Surrey Votes to Allow Secondary Suites City-wide

After decades of debate, Surrey has decided to permit homeowners to have one secondary suite in all single-family homes in the city, following an Ipsos Reid telephone poll in which 63 per cent of those surveyed supported the idea.

The move, which received unanimous approval at city council Monday night, brings Surrey’s secondary suite policy into line with that of most municipalities in Metro Vancouver. Delta is expected to go ahead with a similar policy.

Up until now, Surrey has allowed secondary suites only in predetermined zones in the city, mostly in Newton. Yet the city has its share of illegal suites, which are estimated to number as high as 19,000.

Surrey Coun. Judy Villeneuve, who chairs the city’s social planning committee, said the illegal suites have provided affordable housing in the city, as well as mortgage help for new homeowners.

Legalizing the suites, she said, will allow homeowners to offer accommodation to extended families or renters, while ensuring they provide parking spaces and pay their fair share for utilities and taxes.

Homes with secondary suites result in added costs to the city’s water, sewer, and garbage services.

“Hardly any rental housing has been built in Surrey in the past 15 years,” Villeneuve said. “Our goal is to is to provide lots of [different] housing so everyone can live … and have a roof over their heads.”

According to the Ipsos Reid poll, 63 per cent of 1,200 people polled in a random telephone survey said they would support the move, mainly because it would provide more rental housing, make home ownership more affordable and increase density in neighbourhoods without changing the area’s character.

But support varied according to location, with 65 per cent in favour in the Newton/Fleetwood area compared with just 57 per cent in south Surrey.

The main reasons for opposing the move are related to parking issues, general congestion/crowding, traffic congestion and concerns about equitable payment of property taxes and utility charges.

City staff recommended that council endorse the policy subject to conditions, which included prohibiting multiple suites in a house, requiring the registered owner of a home with a secondary suite to live on the premises and requiring homes to provide parking and pay appropriate utility fees to offset the added costs of city services.

The random telephone survey, conducted between June 28 and July 6, has a margin of error of 2.8 percentage points. A web-based survey, which polled more than 1,500 people on the city’s website from June 28 to July 1, found levels of support were lower, with 55 per cent in favour.

Buzz me if you would like to know more :)

Darin

I have sold a property at 13384 63A AVE in Surrey

Fri, 02 Jul 2010 09:07:21 GMT

I have sold a property at 13384 63A AVE in Surrey.

See details here

You found it. Premier cul-de-sac home in great neighborhood ready for your growing family. View of Northshore mountains and extremely spacious. Tons of natural light fills the room, 5 bedrooms all together. Home features a huge sundeck, patio, double pane windows, custom tiling, newer hot water tank! 2 fireplaces, double garage and a South facing yard make this the perfect home or income property. Be sure to check out the exclusive 24 hour online open house at the link provided. Better move on this one, it's priced to be gone quick. You found it.