Purchasing a rental property as an investment in Vancouver, BC, is a risky business that also can bring in quite a bit of revenue. There are disadvantages and advantages of owning rental property.
The biggest advantage of owning Vancouver rental property is that it can provide you with a regular income. You will usually receive a monthly rental payment from your tenants that rent from you. If you purchase rental units in new neighborhoods like Yaletown, False Creek, Kits and others, with a low crime rate you will be likely to fill that unit up fast.
You can also take advantage of purchasing vacation rental property, which is also a very lucrative investment. You can make a profit renting out rooms and houses by the day, week, month, or even season. In the process you can make quite a bit of profit off of vacation rental property, especially if you own vacation property in a popular visiting location, like Vancouver, Yaletown, False Creek or Whistler, BC.
One of the disadvantages of buying rental property is the cost and responsibility of upkeep. You are the owner, so you will be responsible for providing lawn maintenance, plumbing repair, as well as basic upkeep such as replacement of windows, locks, and more. It can be quite expensive, especially if you have a large property, because you will have to hire other people to do the maintenance for you.
Another disadvantage is that it could be hard to find a good renter in Vancouver. However, you have the right to choose who you want to rent in most cases. You will have to be careful in regards to discrimination, however. So you will need to be careful.
Your rental property can go up in value instead of down in value if you keep that property in as good of a shape as possible, especially in hot markets like Vancouver and Whistler. Also, if you have kept that property for a while and have made a profit from it that will also be a sing for both lenders and buyers that the property you have rented out will be of value.
One way to make your experience as a landlord (or landlady), which is what you are if you purchase Vancouver rental property for the benefit of making a recurring profit, is to require your tenants to sign leases. In that lease will be all the rules and provisions that you would expect your tenants to live by.
Just think, when you draw up a lease agreement, you can think of all the landlords you used to despise, and you now get to be like them. It’s not that you have to be mean, but you will need to have a backbone if you expect to be able to enforce the leasing agreement that you have written up between you and your tenants.
Quite a bit of information is covered in leases. For example, if decide to own an Vancouver apartment complex you will have to designate quite hours and times to do laundry. If you own a luxurious hotel you may require a deposit on the room key or other valuables within the room. You are advised to write up as extensive of a lease necessary to help keep peace between you and your tenants.
Not only would you include your tenant’s responsibilities and the rules in the leases that you create, but also the tenant’s rights. If they have a question or concern they will want you or someone in your office to take care of it as soon as possible. Concerns that tenants may have are excessively loud tenants, abuse in the building, theft, vandalism and so on. This is being told to you to scare you out of being a landlord, but to prepare you for anything to happen-both good and bad.
If you think that you are up to the challenge of purchasing rental property in Vancouver you will need to decide which types of rental properties are the best for you. If you decide after all that rental property is not the right type of real estate venture for you, chances are you can sell your rental property to someone else.
In fact, if you keep up the rental property for the time you have it you can possibly sell it for a higher price than you paid for it. Make sure you take good care of your rental property in case you would like to sell it later on.
To read more about landlord and tenant responsibilities you can contact your local Vancouver housing office. Your local housing office may even have a website address you can visit. A good realtor like Amalia Liapus, A top RE/MAX realtor can also help you.
Technorati Tags: Vancouver realtors, Vancouver real estate, Vancouver real estate agent, Vancouver realtor.
Monday, November 26, 2007
Wednesday, November 7, 2007
Top Tips for Buying Property at an Auction
Buying property at an auction can be risky business. Usually each property is sold as is, with no refunds. However, you can do quite a few things to ensure that you find quality Vancouver real estate at these auctions.
Some of the tips to keep in mind before buying a home at a real estate auction include the following:
Make sure you purchase from a trusted dealer. You want to either purchase from a name you trust or from an agent who has proven that he or she has a good track record. Trusted real estate agents will have references from past clients as well as a good standing with organizations such as the Better Business Bureau, and will have a good credit rating.
Get the deal in writing and have it signed. Not much needs to be said about this. No contract should be verbal because it is hard to prove in court, and both parties may forget what has been said in the agreement. Get all deals in writing. That is the bottom line. Handshakes were necessary in the old days but this is a new generation. You need to protect your self and your business as much as possible.
If possible involve a lawyer. If you can afford a lawyer or other qualified legal aid to be present when you sign a deal with someone, it would benefit you and your company. You also may need advice from a solicitor or chartered surveyor during the process of purchasing a property, as well as a professional appraiser.
Study the Lower Mainland property being sold before purchase. You can even order a catalog from some auctions that plan their sales weeks in advance of posting. Some listings will run for quite awhile. Read all the information that you see regarding properties for sale very carefully and identify ones that would be of most interest to you.
Ask neighbors and agents for their opinion. While you are doing research on the property that you are thinking of purchasing a Vancouver home through an auction, you will want to ask neighbors and agents for their personal opinion. This will give you an idea of how legitimate the sale really is, and you will learn whether or not it is worth it to purchase a particular property as well.
Make sure the listing of the property is accurate. The listing should be straightforward, and you should be able to know what exactly you are getting your self into.
Beware that bidding is a binding contract. This type of contract is as legal as the one that is signed between two private parties. If you are attending a live auction in person beware that when the hammer falls or the auctioneer yells “sold” that you are legally committed to purchasing the item that you have bid on. Make sure you bid on a piece of property that you know you want. This will cause you less stress later on.
Make sure you have deposit ready for auction day. If you do not have your deposit ready in order to purchase property at an auction you could lose your chance of purchasing that property. Usually you will need to pay that deposit within a two-week period.
Plan ahead if you need a loan. If you need to take out a loan to purchase auction property you will want to make sure you find a way to obtain that money before the date of the auction. If you do not, you will need to find a way to finance your purchase within 20 days of the day of the auction. Otherwise, you will lose the sale and any deposit you put down on the sale.
Be careful during the bidding process. Make sure you are bidding on what you want to bid on. Also, if you do not want to bid on a property make sure you careful what type of message you send. For example, auctioneer sees you making a hand gesture during the bidding process they could mistake it for your desire to bid. Make sure you communicate this message very carefully, and only if you truly intend to bid. This is a very serious process.
Make your intent to bid very clear. If you choose to bid at an auction that you will attend in person you will want to make sure you make that very clear. You will need to raise your hand up high enough when the auctioneer calls out for more bids. Also, it will help if you sit where you will be seen.
Decide on a definite maximum bid price. Watch yourself, and don’t bid higher than you can afford. Remember, you are at an auction to save money, not to spend even more money. If you cannot bid at a price you can afford perhaps you can entrust someone to bid on your behalf.
Sometimes, if you cannot physically attend an auction, you can present your bid in writing or by telephone. Other times that same auction will be available online as well.
There is so much involved in purchasing in an auction. However, if you know for sure what you are looking for and you do your homework you could walk away with some fine deals from an auction. You can find quite a few online resources to auctions to take a look at.
Most auction services will cost you a small membership fee, which is usually paid once in a lifetime or monthly. The fee charged to become involved in buying at real estate auctions varies from auction to auction. You can find legitimate real estate auction agents who market themselves both online and offline.
For more information on buying or selling your home in Vancouver, including Yaletown, Kits, Point Grey, and False Creek, visit Amalia Laipis, ReMax realtor at www.wesellvancouver.ca.
Some of the tips to keep in mind before buying a home at a real estate auction include the following:
Make sure you purchase from a trusted dealer. You want to either purchase from a name you trust or from an agent who has proven that he or she has a good track record. Trusted real estate agents will have references from past clients as well as a good standing with organizations such as the Better Business Bureau, and will have a good credit rating.
Get the deal in writing and have it signed. Not much needs to be said about this. No contract should be verbal because it is hard to prove in court, and both parties may forget what has been said in the agreement. Get all deals in writing. That is the bottom line. Handshakes were necessary in the old days but this is a new generation. You need to protect your self and your business as much as possible.
If possible involve a lawyer. If you can afford a lawyer or other qualified legal aid to be present when you sign a deal with someone, it would benefit you and your company. You also may need advice from a solicitor or chartered surveyor during the process of purchasing a property, as well as a professional appraiser.
Study the Lower Mainland property being sold before purchase. You can even order a catalog from some auctions that plan their sales weeks in advance of posting. Some listings will run for quite awhile. Read all the information that you see regarding properties for sale very carefully and identify ones that would be of most interest to you.
Ask neighbors and agents for their opinion. While you are doing research on the property that you are thinking of purchasing a Vancouver home through an auction, you will want to ask neighbors and agents for their personal opinion. This will give you an idea of how legitimate the sale really is, and you will learn whether or not it is worth it to purchase a particular property as well.
Make sure the listing of the property is accurate. The listing should be straightforward, and you should be able to know what exactly you are getting your self into.
Beware that bidding is a binding contract. This type of contract is as legal as the one that is signed between two private parties. If you are attending a live auction in person beware that when the hammer falls or the auctioneer yells “sold” that you are legally committed to purchasing the item that you have bid on. Make sure you bid on a piece of property that you know you want. This will cause you less stress later on.
Make sure you have deposit ready for auction day. If you do not have your deposit ready in order to purchase property at an auction you could lose your chance of purchasing that property. Usually you will need to pay that deposit within a two-week period.
Plan ahead if you need a loan. If you need to take out a loan to purchase auction property you will want to make sure you find a way to obtain that money before the date of the auction. If you do not, you will need to find a way to finance your purchase within 20 days of the day of the auction. Otherwise, you will lose the sale and any deposit you put down on the sale.
Be careful during the bidding process. Make sure you are bidding on what you want to bid on. Also, if you do not want to bid on a property make sure you careful what type of message you send. For example, auctioneer sees you making a hand gesture during the bidding process they could mistake it for your desire to bid. Make sure you communicate this message very carefully, and only if you truly intend to bid. This is a very serious process.
Make your intent to bid very clear. If you choose to bid at an auction that you will attend in person you will want to make sure you make that very clear. You will need to raise your hand up high enough when the auctioneer calls out for more bids. Also, it will help if you sit where you will be seen.
Decide on a definite maximum bid price. Watch yourself, and don’t bid higher than you can afford. Remember, you are at an auction to save money, not to spend even more money. If you cannot bid at a price you can afford perhaps you can entrust someone to bid on your behalf.
Sometimes, if you cannot physically attend an auction, you can present your bid in writing or by telephone. Other times that same auction will be available online as well.
There is so much involved in purchasing in an auction. However, if you know for sure what you are looking for and you do your homework you could walk away with some fine deals from an auction. You can find quite a few online resources to auctions to take a look at.
Most auction services will cost you a small membership fee, which is usually paid once in a lifetime or monthly. The fee charged to become involved in buying at real estate auctions varies from auction to auction. You can find legitimate real estate auction agents who market themselves both online and offline.
For more information on buying or selling your home in Vancouver, including Yaletown, Kits, Point Grey, and False Creek, visit Amalia Laipis, ReMax realtor at www.wesellvancouver.ca.
Monday, November 5, 2007
Vancouver Real Estate Performing Above It's Weight Class
The recession risks are even less in Canada. The economy had strong momentum in the first half of 2007, with real GDP advancing at a 3.9% annualized pace in the first quarter and 3.4% in the second quarter. While the recent financial turmoil and the lingering problems in the asset-backed commercial paper market and real estate markets will temper the pace of expansion in the coming quarters, the impact should prove modest.
There is no reason for Canadian lenders to tighten their credit standards in a significant way, since they were never loosened like in the United States. The subprime mortgage market in Canada was only roughly 5% of mortgage originations in 2006, compared to 25% Stateside. Exotic mortgages, like negative amortization mortgages, and low introductory teaser mortgage rates are not part of the Canadian, BC, or Lower Mailnad Realty landscape. The continuing pressure in short-term private sector financing rates, with a wider spread on Banker Acceptance (BA) rates over their government counterparts may have a negative impact in the near-term, but we believe that conditions will normalize over time. And, the current levels of borrowing costs for the economy suggest that the financial turmoil has had less impact than the equivalent of a quarter point tightening by the central bank.
Read more about Vancouver Real Estate.
There is no reason for Canadian lenders to tighten their credit standards in a significant way, since they were never loosened like in the United States. The subprime mortgage market in Canada was only roughly 5% of mortgage originations in 2006, compared to 25% Stateside. Exotic mortgages, like negative amortization mortgages, and low introductory teaser mortgage rates are not part of the Canadian, BC, or Lower Mailnad Realty landscape. The continuing pressure in short-term private sector financing rates, with a wider spread on Banker Acceptance (BA) rates over their government counterparts may have a negative impact in the near-term, but we believe that conditions will normalize over time. And, the current levels of borrowing costs for the economy suggest that the financial turmoil has had less impact than the equivalent of a quarter point tightening by the central bank.
Read more about Vancouver Real Estate.
Monday, October 29, 2007
Five Secrets to Finding the Vancouver Home of your Dreams
Everyone dreams of finding the home in Vancouver that suits their family perfectly. It’s important to remember that during your search for your dream home that finding your dream home starts with you. Throughout your journey you will find yourself being derailed by one thing or another. Everyone will try to give you advice on where is the best location, which is the best Vancouver realtor, who is the better contractor, and so on. The first thing to do is to determine the area you want to find a house in. Your dream home should not be too far away from your work place, family members, and schools. It is wise to enlist a real estate agent to help you buy the house from the original owner. There are several websites that allow you to key in an area code and they will provide you with a whole list of houses on sale in that area. If your dream house is listed, you’re in luck. They will assign a realtor to work with you on buying your dream home.
The next step towards buying your Lower Mainland dream home is financing. If you are lucky enough to have the cash you can buy your dream home rather easily. Most people do not have this option so it is best to start researching an affordable and viable home loan. The process between signing the agreement to getting to the loan to having the keys handed to you is a long one. This may be the time that you choose to find a contractor to design and construct your dream home for you. The best way to find a suitable contractor is to ask around as there is nothing like a referral. A positive referral means the customer was satisfied with the services that were performed by the contractor. Designing and constructing your dream home is a wonderful experience, which is also very difficult.
It is important to stay open minded when looking for your dream home. By doing this, you’ll learn things you never realized. Your ideal of the perfect home will change and evolve over the years so it is best to try to have a better understanding of what you want by taking a close look at several houses in places like Coal Harbour, Yaletown and Point Grey. Many people will only look at a house if they like its appearance.
Typically, the house’s exterior can easily be changed and they may be so dramatic that you will not realize you are looking at the same house. You may also discard the idea of a particular home if you do not see the hidden potential. It is wise to see if rooms possibly serve another purpose, one you may have not originally seen upon first inspection. Some people spend years searching for the perfect home in Vancouver, BC. It is unlikely that you will find it as the perfect home is a fantasy. While home shopping you should be realistic and ask yourself what the features are that you must have and the features that you want to have.
Once you have been pre-approved for a mortgage loan it is time to actually start house hunting with a realtor like Amalia Liapis. Your mortgage lender will give you a letter stating you have been pre-approved for a mortgage and the amount you are authorized to borrow. You will need to present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search. Both the real estate agent and real estate company will be much more willing to work with you if they know you can afford the home you are looking at. Also, the seller will be more likely to take your offer more seriously if a pre-approval letter accompanies it from your mortgage lender.
Once you have found your dream home, it is time to make an offer on the property. If the seller accepts your first offer your negotiations are over and you’re ready to start preparing for your move into your dream home. It is more likely however that you’ll receive a counter offer from the seller. The negotiation process can either go on for short or long amount of time, depending on factors like the motivation of the seller. Once the sale has been completed you will be handed the keys for your Vancouver dream home.
The next step towards buying your Lower Mainland dream home is financing. If you are lucky enough to have the cash you can buy your dream home rather easily. Most people do not have this option so it is best to start researching an affordable and viable home loan. The process between signing the agreement to getting to the loan to having the keys handed to you is a long one. This may be the time that you choose to find a contractor to design and construct your dream home for you. The best way to find a suitable contractor is to ask around as there is nothing like a referral. A positive referral means the customer was satisfied with the services that were performed by the contractor. Designing and constructing your dream home is a wonderful experience, which is also very difficult.
It is important to stay open minded when looking for your dream home. By doing this, you’ll learn things you never realized. Your ideal of the perfect home will change and evolve over the years so it is best to try to have a better understanding of what you want by taking a close look at several houses in places like Coal Harbour, Yaletown and Point Grey. Many people will only look at a house if they like its appearance.
Typically, the house’s exterior can easily be changed and they may be so dramatic that you will not realize you are looking at the same house. You may also discard the idea of a particular home if you do not see the hidden potential. It is wise to see if rooms possibly serve another purpose, one you may have not originally seen upon first inspection. Some people spend years searching for the perfect home in Vancouver, BC. It is unlikely that you will find it as the perfect home is a fantasy. While home shopping you should be realistic and ask yourself what the features are that you must have and the features that you want to have.
Once you have been pre-approved for a mortgage loan it is time to actually start house hunting with a realtor like Amalia Liapis. Your mortgage lender will give you a letter stating you have been pre-approved for a mortgage and the amount you are authorized to borrow. You will need to present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search. Both the real estate agent and real estate company will be much more willing to work with you if they know you can afford the home you are looking at. Also, the seller will be more likely to take your offer more seriously if a pre-approval letter accompanies it from your mortgage lender.
Once you have found your dream home, it is time to make an offer on the property. If the seller accepts your first offer your negotiations are over and you’re ready to start preparing for your move into your dream home. It is more likely however that you’ll receive a counter offer from the seller. The negotiation process can either go on for short or long amount of time, depending on factors like the motivation of the seller. Once the sale has been completed you will be handed the keys for your Vancouver dream home.
Friday, October 12, 2007
money
the secret
Subscribe to:
Posts (Atom)