Sun columnist Shelley Fralic says, “I knew then as I know now that the best way to get into the market is to get into the market…”

 

All the talk about housing affordability is usually limited to a single-family detached house. That’s not a reasonable expectation for most people in many work-class cities, so stop complaining, columnist Shelley Fralic writes.

Photograph by: Gerry Kahrmann , Vancouver Sun

Right now, in New Westminster, there is a well-kept, 1,080-square-foot, two bedroom, one-and-a-half-bath apartment for sale, with a fireplace, in-suite laundry, stainless steel appliances and a wraparound balcony in an older three-storey building on a quiet street near parks, shops, transit and schools.
The price: $249,000.

Which means, if you negotiated it down to, say, $240,000 and put down 20 per cent and qualify for a three-per-cent, five-year variable mortgage, the monthly payment would be under $1,000, or less than the average rent in Metro.

Right now, in Surrey, one low-rise complex currently has three condos for sale. They have multiple bedrooms and bathrooms, and range from 1,145 to 1,334 square feet. The most expensive is $269,900.
Right now, in Coquitlam and Burnaby, there are 200-plus listings for two-bedroom, two-bath units under $300,000.

And so it goes
.
Do an MLS search on Metro Vancouver condos and townhouses and there are hundreds, yes hundreds, of similar offerings across the region.

There are even a number of two-bedroom condos for sale for less than $300,000 in, wait for it, the city of Vancouver. A two-bedroom, two-bath unit in East Van is on the market for $238,000. It has in-suite laundry, and the building has a gym and pool.

And yet the moaning about unaffordable housing in Vancouver and environs grows ever more loud, especially on the eve of municipal elections. Good lord, the cry goes up, who can afford to live in this place? Who can afford to raise a family here? It’s not right, and the mayor/feds/my parents need to do something about it.
Fuelling the chorus are the endless surveys and comparisons reminding us that if this is heaven on earth, it’s also a mighty pricey postal code.

The latest dose of bad news, delivered recently by this paper, reported that 76 per cent of Metro Vancouver’s 21 municipalities are unaffordable for the average family earning $80,000.
But is that true?

Well yes. And no. Those statistics, like so many published before them, refer to the purchase of single-family homes. The kind of place with no shared walls. No elevators. No pot smoke wafting in from the adjoining balcony. No restrictions on window coverings and tomato planting.
It’s the dream, right? The picket fence. The big backyard for the kids and dog. The two-car garage. We have been conditioned to believe that ownership of a single-family home is the symbol that you have made something of yourself, that you have secured the lottery ticket to ensure a happier family and comfortable retirement.
But why, one wonders, does one’s first home have to be a house?
Oh right. Easy for the big bad baby boomer to say. We had it easy, didn’t we? All those post-secondary jobs for the taking, all that cheap local real estate.

I was born in Vancouver nearly 62 years ago. I have never been able to afford a house in the city.
Nearly 40 years ago, when I was in my early 20s, my young family’s first “house” was a condo in Burnaby, purchased for $49,900 with the help of the CMHC’s Assisted Home Ownership Program. The unit was eventually bought back from us because the complex was leaky, riddled with mould, and eventually torn down.
Our next “house” was a townhouse in a co-op in Newton, a neighbourhood then on the wrong side of the Surrey tracks.

In 1984, facing soaring gas prices and an increasingly brutal commute into Vancouver, we bought a little heritage pile on a postage-stamp lot in New Westminster. It cost $73,000 and the roughly 13-per-cent interest rate demanded a mortgage payment of $800 a month, exactly half of my then take-home pay from this newspaper. Oh, and the bathroom in the basement had a dirt floor.

In 1988, we moved a few blocks over into the house in which I now live. It cost $130,000, and my husband and I lay awake at night wondering how we could possibly afford it, along with two young children to raise.
But I knew then as I know now that the best way to get into the market is to get into the market, even if the dream doesn’t come with stainless steel appliances and isn’t in the dream neighbourhood.
I have equity now, but I will still never be able to afford a single-family house in Vancouver, and gave up that notion long ago, along with the arrogance to think it is somehow my right.
And, as it turns out, Vancouver has nothing on the ’burbs. This is where density and congestion are traded for wide open spaces, family-oriented neighbourhoods and, yes, more affordable housing, single-family and otherwise.

So for the love of God, people, stop complaining about the price of housing in Vancouver. Market forces, not your mayor or mom, determine the cost of housing. Just ask home buyers in New York, Paris and London.
And consider that your home doesn’t have to be a house, and that it doesn’t hurt to start small and think big.
Who knows? Someday, a new generation of Metro Vancouver house hunters might be grouching about your good fortune.

sfralic@vancouversun.com
Click here to report a typo or visit vancouversun.com/typo. 

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Not Going It Alone - Single clients often depend on practitioners for emotional support as well as transaction knowledge.

Not Going It Alone

Single clients often depend on practitioners for emotional support as well as transaction knowledge.

SEPTEMBER 2014 | BY LYNN OLSON

For Marianne Guenther Bornhoft, green, SRES, working with single women—40 percent of her clientele—was a natural fit. “I’ve learned that it’s easy to work with people you can identify with and who can identify with you,” says Bornhoft, a sales agent with Windermere Real Estate in Spokane, Wash. “I bought a house on my own when I was divorced, so I know that market intimately.”

Nationally, 25 percent of buyers are single, according to the latest Profile of Home Buyers and Sellers from the National Association of REALTORS®, with nearly twice as many single women as men (16 percent vs. 9 percent) purchasing homes. Though the share of homes bought by singles has been stifled in recent years, first by the recession and then by tight lending conditions, many practitioners are finding success serving single clients, regardless of their own marital status. The bond between those real estate pros and their single clients can be especially strong. “Buying and selling real estate and moving is already a highly emotional process. If you’re doing it alone, it can be scary and stressful,” says Tiffany Stevens, gri, sales agent with Phyllis Browning Co. in San Antonio. “I keep that in mind when working with my single clientele, so that they never feel like they are completely alone in the process,” she says.

Unmarried people may, in fact, have more frequent real estate needs than couples and families because they tend to be more mobile. Between 2012 and 2013, 12 million never-married and 3 million divorced people moved homes compared with 9.9 million marrieds, according to Census Bureau data. Christopher Mills, sales agent with Keller Williams Capital Properties in Washington, D.C., says many singles who buy homes in the District’s hot H Street Corridor change jobs or need to move within five years. For them, the issue is finding a home that can transition to a rental property easily.

Rising Purchasing Power

The rising purchasing power of single women suggests they’ll be an important demographic for decades to come. Currently, six out of 10 college graduates (whose incomes are typically far higher than those of high school grads) are female, according to the U.S. Department of Education. Income parity is also improving: Among workers ages 25 to 35, women’s hourly wages in 2012 were 93 percent those of men, compared to 84 percent for women of all ages, according to a Pew Research Center study.

To reach single women, community involvement is key, according to Bornhoft, who has worked with more than two dozen nonprofits in her area. She serves on the board of Visit Spokane, a local visitors’ bureau, and targets her advertising within the tourism industry, where a lot of women happen to work. “I’ve sold a lot of properties to single clients who are successful professional women,” Bornhoft says. Many of her clients end up being lifelong friends as well as repeat -customers—in fact, one client has purchased seven homes from her. “You have to be a confidant, a financial adviser, sometimes a parent, and a friend.”

Social media can play a powerful role in strengthening contacts. Stevens reaches singles on Fridays by posting local events on Facebook. “Someone who’s single is likely trying to get out there and meet friends,” she -says “[My posts] can make them feel I’m more connected and really know the community.” She has found single women to be a powerful referral sources. “If you’re really there for them, they rave about you to everyone they talk to. You didn’t just get their house sold; you took care of them,” Stevens says. “They won’t forget that.” Conversely, if the customer is unhappy, her friends will likely know that as well.

STRONG SUMMER FOR FRASER VALLEY REAL ESTATE CARRIES THROUGH TO SEPTEMBER

STRONG SUMMER FOR FRASER VALLEY REAL ESTATE CARRIES THROUGH TO SEPTEMBER

(Surrey, BC) – The Fraser Valley Real Estate Board processed 1,419 sales on its Multiple Listing Service (MLS®) in September, an increase of 25 per cent compared to the 1,131 sales during the same month last year, and an increase of 9 per cent compared to sales in August.

Ray Werger, the Board’s president, says, “Similar to this past summer, this is the busiest September we’ve had since 2009 with sales of all property types combined out-performing the 10-year average by 13 per cent.

“Residentially, the single family home remains the preferred property type. From North Delta to Mission, sales increased in every Fraser Valley community compared to last year with the price range of $400,000 to $699,999 garnering almost sixty per cent of our total detached market.”

New listing activity was also brisk in September with the Board’s MLS® receiving 2,758 new listings, an increase of 16 per cent compared to last year, taking the total number of active listings by month-end to 9,156, a decrease of 7 per cent compared to September 2013.

Werger adds, “An important factor underlying the housing market is consumer confidence and in our region that confidence has been bolstered by the stability of home prices. Since March, the benchmark price of our three main residential property types combined has remained flat, increasing by only 0.6 per cent.

“Long-term, the value of single family detached homes has increased at a faster pace than it has for attached properties, particularly in areas such as Surrey, White Rock, Langley and Abbotsford where we’ve seen many new townhome and condo developments. The supply of new inventory has affected the price of resale product.”

The MLSLink® Housing Price Index (HPI) benchmark price of a detached home in September was $569,800 an increase of 3.1 per cent compared to September 2013, when it was $552,900. In the last six months, the HPI benchmark price of a detached home has increased by 1.1 per cent.

In September, the HPI benchmark price of Fraser Valley townhouses was $299,600, an increase of 1.1 per cent compared to $296,200 in September last year, and in the last six months has increased by 0.8 per cent. The benchmark price of apartments decreased year-over-year by 4.7 per cent, going from $203,100 in September of last year to $193,600 last month, and has decreased by 0.9 per cent in the last six months.

The Fraser Valley Real Estate Board is an association of 2,751 real estate professionals who live and work in the BC communities of North Delta, Surrey, White Rock, Langley, Abbotsford, and Mission. The FVREB marked its 90-year anniversary in 2011.

Check out our ad before it is published in this weeks Real Estate Weekly #REW #Abbotsford

Seniors Wanting To Downsize Struggle To Sell Their Homes

In the past, financial stability within the senior population had a lot to do with financial stability in the housing market. In fact, home equity was supposed to help with retirement lifestyle. However, as the housing market went downhill, seniors were dramatically affected.

Those senior homeowners who are now ready to move are getting much lower amounts for their homes and while many would love to downsize to a condo or other senior living community, they can't afford to do so without first selling their home.

However, seniors who are interested in selling their home can follow these tips to help them sell their home without jeopardizing their retirement savings fund.

The first thing seniors can do is re-evaluate the market and be sure they are pricing their home realistically. Many homes that won't sell are simply overpriced or not in a condition that matches the price being asked. Instead of going by the tax assessment value alone, the condition of the home and the sale price of other comparable homes in the area should be researched carefully.

Next, seniors who are having trouble selling their home so they can start enjoy condo living may want to hire a professional stager. These qualified individuals will help stage a home to draw buyers into the sale. Statistics show that homes professionally staged and de-cluttered sell faster at for higher amounts than those not staged.

Staged homes are like the show homes you look at when a developer is selling. Just enough furniture and subtle colours.

Often, you can stage the home yourself, by repainting using a neutral color palette and renting more modern furniture.

LEAVE YOUR EMOTIONS OUT OF IT

Lastly, it can be extremely emotional for seniors to sell their home if they've lived in it for a lengthy period of time. The common line is "I'm not giving this place away...they don't build them like this anymore"!

However, those who want to downsize to a condo or move to seniors housing must learn to leave their emotions out of the sale.

Thanks to CondoTV.com for these practical thoughts.

5 Great Home Projects for Fall

Of all the home improvement projects Hyedi Cribben and her boyfriend had on their to-do list, building a patio was one project they were looking forward to completing so they could it enjoy it during the summer months. So why then did they get started in the fall?

“No one likes to do that kind of work in hot weather,” said Cribben. She and her boyfriend, Jesse, are lucky enough to have parents willing to help them get their Minneapolis fixer-upper into shape.

“There was some sifting through dirt, because there was a lot of rock,” she said, “and bringing in concrete. It’s pretty labor intensive.

“With the humidity and hot weather this summer, it would have been too much. With our parents helping us, I thought, for health reasons, we should wait until fall.”

Saving those heavy lifting jobs for fall makes a lot of sense, said Spike Carlsen, former executive editor of Family Handyman magazine and the author of Reader’s Digest Complete Do-It-Yourself Manual and, most recently, A Splintered History of Wood.

“If you have the time to wait until fall to do them, it will be less strenuous and more enjoyable,” Carlsen says. Here’s what else he suggests tackling this fall: 

1. Insulate the attic

“Going up into the attic on a hot day isn’t something I would choose to do,” he says. But there is another reason to wait until fall to do any projects that have to do with insulating your home. “You can feel a draft when the weather starts to cool down,” he said. “That’s an easy way to tell where you need to improve your insulation.”

2. Become energy efficient

Caulking around windows, doors, and siding is a simple, inexpensive way to save some money, said Carlsen. “Unless you keep warm air in and cold air out, money is going out the smokestack,” he says. A trick he uses to test where you need to caulk is to walk around the interior of your home with a lighted incense stick. “If the smoke starts blowing, that tells the story pretty quickly,” he says.

Carlsen recommends using silicone caulk because it’s flexible, waterproof, and crackproof. You do it on the outside of your home, so make sure you do it before it gets too cold. “If the temperature drops below 40, you shouldn’t caulk,” because the caulk won’t take as well, he warns.

3. Clean the gutters

“Moisture is the No. 1 problem in maintaining a home,” says Carlsen. “Getting moisture away from the foundation is key. And the way the do it is to clean your gutters and check your downspouts to make sure water is being funneled away from the house.” Clogged gutters in the winter mean ice can build up and cause damage. “In the spring, you want them running free and clear, so do it as soon as all the leaves are off the trees.”

Another place where moisture can build up is between the slats of a wood deck. Carlsen offers a simple way to clean them out. “Take a dull handsaw and run it between each board and push the crud out. If you don’t, moisture can build up, and you get mold. This will help the wood to breathe, and it will look better, too.”

4. Plant a tree

Because trees are dormant in the fall (as they are in the spring), it’s easier on the root system, says Carlson. Think about where you plant it so that it can help with saving energy, he advises. If you get it in the right position, it will be a windbreak in the winter, and provide shade in the summer. “Plus,” he says, “It’s a fun project.”

5. Organize the garage

Right now, you’ve probably got bicycles, lawn tools and the beach umbrella taking up the space your car could occupy, if only you could get everything back where it belongs. “A lot of people never get their car inside the garage in the winter because the garage is overflowing with stuff,” said Carlsen. “There are so many great organizing systems — shelving, hooks that allow you to hang bikes from the ceiling — that you can get everything into a place and find room for your car.” And it’s easier to get junk to the dump on a nice fall weekend than a cold, wet, winter day.

And while you are in the garage, advised Carlsen, check the snowblower, shovels, and snow brushes to make sure everything is in working order. It’s easier to buy replacements in the fall, before the first snow sends everyone to the hardware store.

One other benefit to cleaning the garage: It allows you to be outside to enjoy the beautiful fall weather.

That is what Hyedi Cribben and her boyfriend intend to do, after all the hard work they’ve put in earlier this fall on their patio. Cleaning that site, putting up a fence, and laying stone and sod have taken up all their free time since the weeks after Labor Day. And now, two weeks into October, it’s nearing completion. Said Cribben, “We might even have a week or two to enjoy it before it gets too cold here.”

This article originally appeared on AOL Real Estate: Top 5 Home Improvement Projects for Fall

Evaluate Your House for Basement Finishing

Published: December 11, 2009

 

By: Rich Binsacca

Basement finishing is a great way to add that extra bedroom or playroom you’ve always wanted, if you have the money and space.

Basement remodel cost

When it comes to basement finishing, not all unfinished space is created equal. Consequently, the per-square-foot price of basement finishing starts at $100/sq. ft. and can climb higher depending on how much or how little remodeling you must do.

Granted, you won’t have to dig and lay a foundation or frame and insulate exterior walls—that’s already done.

Depending on your circumstances, here’s what you’ll need to know:

Building to code

The International Residential Code (IRC) says a basement living space must have a clear, floor-to-ceiling height of at least 7 feet (6 feet for bathrooms). Local codes for basement finishing may vary, and exceptions are made for the presence of exposed structural beams, girders, or mechanical system components along the ceiling, but only if they’re spaced at least 4 feet apart and extend no more than 6 inches from the ceiling.

If your existing basement ceiling height doesn’t meet those specifications, you have two options, and neither is cheap:

·         Raise your house and build up the foundation around it to gain the ceiling height you need.

·         Lower the floor, which entails removing the existing concrete slab floor, excavating to the desired level, and pouring new concrete footings and a floor slab.

Both options during basement finishing require professional and precise engineering, excavation, and structural work that will cost at least $20,000.

Add a staircase

The IRC also governs the staircase that leads from your home’s main level to the basement remodel. Requirements include a handrail and stairs with proper width, tread, and riser dimensions. There must be at least 6 ft. 8 inches of headroom at every point along the staircase.

If the stairway isn’t wide enough (at least 36 inches) or the steps aren’t to code, you may have to rebuild them during basement finishing, an extra cost of about $2,000.

Condition the space

Heating and cooling your basement finishing can be as simple as tapping into existing HVAC main trunks and adding a couple of vents ($1,000) or as complicated as upgrading your entire heating and cooling systems ($7,000 to $15,000).

Your contractor will have to “size” your existing system to make sure it can handle the additional load and will comply with building codes that consider health and safety, such as adequate venting of furnace combustion gasses.

Cure moisture problems

You’ll have to fix moisture problems before basement finishing begins. You may have to waterproof walls and floors, grade the yard so water falls away from the foundation, install a sump pump, or install drains around the foundation, all or any of which can add thousands in costs.

Add emergency egress

Code dictates that basement finishing have at least one door or window big enough for people to get out and for help to get in during an emergency: If you’re including a bedroom, it must have its own point of egress. Each egress opening must be at least 5.7 sq. ft. with the windowsill no more than 44 inches above the floor.

Most basement walls are built using poured concrete or masonry blocks, which can be cut (although not as easily as wood-framed walls) to create openings for egress windows or doors.

Read more: http://www.houselogic.com/home-advice/basements/evaluate-your-house-basement-finishing/#ixzz3Di5KdjRS
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