Preventing Downfalls With Your First Home


Walking into your first home is a large step to take.  It is an entirely different process that you will follow, with an entirely new set of rules to begin learning.  Because of the large changes that occur with buying a first home, there are always those who walk into a deal over their head.  Making sure that you don't get the wrong options presented to you will help you to invest right the first time. 


The major factor that you will need to consider when deciding on your first home is where you will stand with the search.  One of the largest mistakes that people make is deciding that they like a specific home then only investing in that home by becoming emotionally attached to it.  This can cause several problems.  The first is that you may not be able to get the home because of something happening in the process.  This can be disappointing and tiring.  The second mistake is that you will offer a price that is too high or too low.  Make sure that you know exactly what the house is worth and how it fits into your needs before becoming attached. 


Not only will you need to shut off emotions in order to find and compare homes, but you should also do this after you have chosen a home.  Even if you have signed a contract for your first home, the process isn't over.  You will have to find a mortgage and inspections will have to be made.  If there is a large problem with the home that needs to be prepared, or if something goes wrong in the process of the loan, you will have to start over again.  If you are prepared and detached until you set foot in the house for the last time, it will make the entire process much easier. 


From here, you can decide exactly what you can afford and how you will get there.  The best place to start is with your credit history.  By knowing your score, you will also be able to estimate the type of loan that you will be able to get.  You will want to make sure that your bank statements are stable and secure.  There is nothing like walking into your first home and not being able to pay the mortgage from the beginning. 


By staying detached and logical about your new home, you will have the ability to find the best.  Preventing the mistakes, in the beginning, will save you hours and days of time, as well as stop years of hassle that may occur.  Being prepared and honest about what you are looking for is an easy way to help with the process. 

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5 Tips to Ensure Your Home’s Showing Is a Success


The purpose of showing your home is to hook a buyer. You want the buyers to come through your house and be impressed - so impressed in fact, that they’re ready to make an offer! You’ll have one chance to make a great first impression on the potential buyers, so make sure to follow these five helpful tips to really make it count!


  1. Focus on the outside. Make sure that you don’t neglect the outside of your home. Curb appeal can make or break the odds of someone even bothering to get out of the car to come in. If they pull up and see a home with a lawn that obviously needs edging and has an unkempt flower bed, they’re going to wonder what else hasn’t been cared for properly. You want the outside of your home to be spotless. Clean the siding, the windows, and the doors. Make sure there are no dirt smudges, no cobwebs and that anything that needs painting has been spiffed up.


  1. Take yourself out of the house. That means that you want to take out all the personal stuff. Remove the family photos from the wall or tables. You want the home to look neutral so that the potential buyers can look at your house and picture it as themselves living there. Everything should be as neutral as possible in terms of personal items.


  1. Remove all the extra clutter you see at first glance. If you look around, it’ll amaze you at how much stuff you’ve accumulated over the years. Some of it might very well be important, but that doesn’t mean that your potential buyers should see it. When you have a lot of clutter, it shrinks the living space of the house. It makes it look and feel cramped and smaller. Many homeowners get something called house blindness. They’ve lived in the home for so long with the same clutter that they don’t even really see it anymore. But a stranger will always notice. So clean out your house and make the space as big as possible.


  1. If you have a pet, no one that walks through your house should be able to notice it exists. That means no cat litter box, no dog to jump on anyone, no food sitting around in a dish. Your home should not have any pet odors. Having a clean house that’s odor free is a big selling point. You don’t want to lose a possible deal just because they can smell your pet’s presence or your pet makes a bad impression.


  1. Stage your home! You can hire a professional or you can do it yourself. Stage your living areas in a way that shows off your home. You can rent furniture to make your home furnishings look good if you don’t use a stager. Someone who knows how to stage a house knows how to play up the best features of your home and knows what to bring in or get rid of to make the entire house appeal to a buyer.


First impressions are HUGE when showing you home to potential buyers, but by following the simple tips above you will be well on your way to making a great impression and, hopefully, receiving multiple offers!  (And if you are at all anxious about this important step, just reach out to a trusted real estate agent in your area who can help guide you through this process!)
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7 Things to Look for in a New Neighbourhood 


Whether seeking solace, activity, schools, churches, or green space, every homebuyer looks for a different combination of attributes in a new community. Choosing a neighbourhood that suits your needs and wants is one of the most important decisions you’ll make in the home-buying process; your choice of environment will affect the way you experience your new home. This is a very personal decision, influenced by countless unique factors colouring your own lives, but you should always keep the following in mind:


1. If you’re considering buying a home in a community that is unfamiliar to you, get to know its lay-out, offerings, and ambiance. Take some time to walk or drive through the neighbourhood, both during the day and at night, familiarizing yourself with the sights, sounds, and smells.


2. What amenities does the neighbourhood have to offer? Is public transportation readily accessible? Are there schools, churches, parks, or grocery stores within reach? Consider visiting schools in the area if you have children.


3. What is the nature of the job market in the area? Keep in mind that if area employers are producing more jobs, you can expect property values to increase, especially if the jobs offered fall within a higher salary bracket.


4. Speak with the neighbours. Ask questions. They can offer you a wealth of information, from an inside perspective.


5. How will you be affected by a new commute to work? Drive the route between the new neighbourhood and your office during the appropriate times to gauge the volume of traffic you could expect to encounter, and the amount of time you’d need to put aside for daily travel.


6. Contact local land-use and zoning officials to determine existing development plans or potential for development in the area. A strong agenda for neighbourhood planning and local zoning will increase the value and draw of a neighbourhood. Keep in mind that any large, tree-covered area may be a target for future development in popular communities.


7. Determine whether financial resources have been put in place to support infrastructure projects in the area. These construction projects might include building, replacing, or improving anything from schools to roads, and are usually part of a city or town’s long-term plan. While disruptive, construction could also be a benefit to your experience of a community, influencing the long-term value of the area. 

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 Where to Start: Begin to Prepare your Home for Showing
 

“You never get a second chance at a first impression.” We’ve all heard this expression
before. And now, while you are preparing your house to sell, it should not be far from
your mind.


While logical factors such as price and location narrow the pool of houses a potential
buyer will look at, the ultimate decision to buy a particular house is fuelled by a mixture
of logic and emotion. And emotion often wins out. The same might be said for the
process of selling a home. For this reason, Real Estate Agents, when they talk to you
about buying real estate, will refer to your purchase as a “home.” When discussing the
sale of your current home, however, an agent will refer to it as the “house.” This is a
conscious choice. The agent knows that buying a house is often an emotional decision,
while, when selling a house, emotion should be separated from the process.
Buyers are searching for a “home”—a place in which they will feel comfortable, secure,
and happy, a place in which they can imagine settling down and raising their family. As
a seller, your goal is to cultivate these feelings through the property you’re selling. Look
at your house as a marketable commodity. A buyer’s emotional response is triggered
early, so you want to ensure you have done everything you can to encourage a positive
response to your house from the outset. Within minutes—even seconds—of pulling into
your driveway, buyers have formed an impression that they will carry with them through
the rest of the showing, and beyond. Keep in mind, this impression will not only
influence whether or not they make an offer but also what they consider to be the value
of the property.


If you’ve ever visited model homes, you’re familiar with effective presentation styles.
Have you ever walked into one of these homes and immediately begun taking stock,
planning how to get your home to look that good? Well, now is the time to take some of
these steps. Of course, there are ways to achieve the same effect in your own home
without incurring model home costs.
When homes create this immediate type of emotional appeal, they tend to sell quickly—
and for more money. Use the following step-by-step guide to get your house into selling
shape before you put the property on the market, and you’ll be well on your way to a
successful sale!


1. Depersonalize.
This should be one of your first steps when you begin preparing your house to
sell. Over the years, a home inevitably becomes tattooed with the owners’ lives,
covered with touches that have made it that special place for you. At this point,
however, you want buyers to recognize it as a property they could make into
their unique place. When a homebuyer walks into a room and sees these
personalizing touches—such as photos on the walls or trophy collections—their
ability to picture their own lives in this room is jarred, impairing a positive

emotional response. So, your first step will be to remove all the family photos,
the trophies, collectible items, and souvenirs. Pack them all together, so you’ll
have everything you need at your disposal when it comes time to personalize
your new home. For the time being, rent a storage space and keep these items
there. Do not simply transfer these items to another place in your house. Do
not hoard them away in a closet, basement, attic, or garage, as the next step in
preparing your home is to minimize clutter—and these areas of your house will
all be targeted.


2. Remove all clutter.
The next step on the list is to purge your house of the excess items that have
accumulated over the years. This is the hardest part for many people, as they
have an emotional investment in many of these things. When you have lived in
a house for several years, a build-up of personal effects occurs that is often so
gradual that you don’t notice space is becoming cluttered. If you need to,
bring in an objective friend to help point out areas that could stand to be cleared.
Try to stand back yourself and see your house as a buyer might. Survey
shelves, countertops, drawers, closets, the basement—all places where clutter
often accumulates—to determine what needs to go. Use a system to help you
decide: get rid of all items, for example, you haven’t used in the past five years,
and pack up everything that you haven’t used in the past year. Although getting
rid of some things might be hard, try to do it without conscience or remorse.
You’ll be forced to go through this process anyway when you move, and with
each box, you eliminate your storage space—and the room in general—begins
to look larger. We’ve broken down the process into specific areas of your house
to help you concentrate your efforts:


Kitchen:
The kitchen is an ideal place to begin, as it’s easy to spot and eliminate the type
of clutter that tends to accumulate here. Homebuyers will open your drawers
and cabinets as they’ll want to check if there will be enough room for their own
belongings. If the drawers appear cluttered and crowded, this will give them the
impression there is not enough space.


• First of all, remove everything from the counters, even the toaster (the
toaster can be stored in a cabinet, and brought out when needed).
• Clean out all the cabinets and drawers. Put aside all of the dishes, pots
and pans that you rarely use, then box them and put them in the storage
unit you have rented (again, not in the basement or a closet).
• If you, like many people, have a “junk drawer,” clear this out.
• Get rid of the food items in the pantry that you don’t use. Begin to use
up existing food—let what you have on your shelves dictate your menus
from now on.
• Remove all extra cleaning supplies from the shelves beneath the sink.
Make sure this area is as empty as possible. You should thoroughly

clean this spot as well, and check for any water stains that might indicate
leaking pipes. Buyers will look in most cabinets and will notice any
telltale signs of damage.


Closets:
• Go through all clothes and shoes. If you don’t wear something anymore,
get rid of it. We all have those clothes, too, that we wear only once in
awhile, but can’t bear to give away. Box these items and keep them in the
storage unit for a few months.
• Go through all other personal items in the closet. Be ruthless. Weed out
everything you don’t absolutely need.
• Remove any unsightly boxes from the back of the closet. Put them in
storage if need be. Get everything off the floor. Closets should look as
though they have enough room to hold additional items.


Furniture:
• You may want to tour a few model homes in order to gauge the type of
furniture chosen by design teams to create a spacious, yet comfortable
atmosphere. Note how that furniture is arranged to cultivate a certain
feeling.
• After having armed yourself with some ideas, stand back and look at each
of your rooms. What will you need to remove? Remember, most homes
contain too much furniture for showings. These are items that you’ve
grown comfortable with and that have become incorporated into your
everyday routine. However, each room should offer a sense of
spaciousness, so some furniture will likely need to be placed in storage.


Storage Areas:
• Basements, garages, attics, and sheds: these are the “junkyard” areas of
any given home. It is possible to arrange simple clutter into a certain
order, but junk is sent packing to these often-hidden rooms. First,
determine which of these boxes and items you actually need. Can some of
it be sent to the dump once and for all?
• Hold a Garage Sale. You’ve heard the saying, “One person’s trash is
another’s treasure.” Let these items go to a better home.
• Transfer some items to the rental storage unit. You’ll want to clear the
storage areas in your house as much as possible, in order for them to
appear spacious to potential home-buyers. Buyers want the reassurance
that their own excess belongings will find places for storage in their new
home.

 
 
 
 
 
 
 
 
 
 
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Buying a Rental Property During COVID-19


I am often asked if using the equity in your home is a good idea for buying a rental / income property. In most cases, the answer is yes. However, with the changes to the landlord / tenant relationship and current rules in place due to COVID-19, is this still the case?


What is different now?


  • Rental Increase Freeze – Due to the economic impact of COVID-19 the government has placed a freeze on all rental increases. However, this is expected to be lifted before your new rental property can increase the rent as they only allow an increase once a year.  

  • Eviction Moratorium – During the pandemic, the government is preventing any new evictions, including an eviction for nonpayment of rent. This means that your tenant can simply not pay rent and you have no rights to evict them. However, there are many ways to mitigate this possibility.
  1. Get a history from the current owner of any unpaid rent and current employment details.
  2. Ask to the purchase the house without the tenant in place. While there is no guarantee the current owner can offer this, they may be able to work an agreement with the current tenant before you take possession.
  • Potential Market Crash – While no investment offers no risk, real estate is still on of the safest investments you can make. While there are reasons to be concerned in many markets, Victoria is in a special situation.
  1. Victoria still has an incredibly strong rental market helping to keep home prices high.
  2. Victoria has very little land to develop on compared to the rest of Canada.
  3. Victoria a high level of wealth with most homeowners having over 50% in home equity.
  4. Victoria has a strong employment rate and large amount of secure government jobs.

Even during these unprecedented times, owning a rental property is still one of the best long-term investment strategies available. Moreover, given the instability in the stock market, I still highly recommend to my clients who are looking for a long-term investment strategy, to focus on income properties that are funded by the existing equity in their primary residence.


To learn more about what properties could work for you, give me a call!


To learn more about how much you could afford, give David Steinberg from Olympic Mortgages a call!

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MLS® property information is provided under copyright© by the Vancouver Island Real Estate Board and Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification.