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Richmond Real Estate Market

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Richmond is an island city. It is made up of a number islands in the Fraser River delta. It is just one meter above sea level. It was prone to flooding, especially during high tide. Therefore, major islands are now surrounded by a system of dykes, which serve to protect the town. Also, since it occupies land in a river delta, the city has plenty of rich soil for agriculture. Richmond is a culturally unique community. As of 2021, the city has an estimated population of 209,937 people with 60 percent being immigrants, the highest proportion of immigrants in Canada. Majority of immigrants are Chinese. Richmond has been experiencing growth and change, transforming from a rural, local community to an international city with a balance of urban, suburban family and rural areas. The city is 20 minutes from downtown Vancouver and 25 minutes from US border. It’s the location of Vancouver’s international airport.  The SkyTrain, Canada Line, speeds up transit system and connects Richmond to other
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Burnaby Real Estate Market

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Burnaby is located next to Vancouver. It’s the third largest city in British Columbia with a population of over 230,000. Based on the 2016 Canadian census, 34.6% of the population is European Canadian. The largest minority group is Chinese with 33.9%. The popular places in Burnaby are Metrotown which is the third largest shopping mall in Canada, and Burnaby Mountain for its view and parkland. Simon Fraser University  (SFU), which is c onsistently ranked as Canada's top comprehensive university, is located on the top of Burnaby Mountain. Also, The British Columbia Institute of Technology (BCIT) is located in Burnaby.  Burnaby adjacent areas include North Vancouver, Vancouver, Richmond, New Westminster, Coquitlam and Port Moody. We take a look the real estate market in these areas. Two figures below show residential composite MLS HPI Benchmark Price  Trend in each area in past 17 years. Comparing these 7 areas, Burnaby real estate market is less expensive.   Burnaby, North Vancouv
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A Measurement of Home Price Levels and Trends - Home Price Index

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Home Price Index (HPI) is designed to gauge changes in home prices. It is the most advanced and accurate tool to monitor home price LEVELS and TRENDS and excludes the extreme high-end and low-end properties. HPI reflects contributions made by various quantitative and qualitative housing features toward the home price, including:   Number of rooms above the basement level Number of bathrooms & half-bathrooms Square footage for main living & basement areas Whether it has a fireplace and /or finished basement Lot size The age of the property Parking How the home is heated Foundation, flooring, siding & roofing types Whether the property has waterfront or panoramic view Whether the property has been sold previously ( newly constructed and previously unsold, or repeat sale) Proximity to shopping, schools, hospitals, police stations, churches, sports centres, golf courses, parks, and transportation ( including the train station, railways, and airports) Tracking home price trend
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Mortgage Payment Options

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A lot of people get a mortgage when they buy a property, especially when mortgage rates are so low. What options does a borrower have to pay the mortgage and which option benefits a borrower more? Generally, more frequent payments create substantial interest savings and reduce the loan’s amortization period. We discuss three options here: monthly payments , biweekly payments and accelerated biweekly payments . Biweekly payments are popular since they match most people’s earning frequency. What is the difference between biweekly payments and accelerated biweekly payments? Biweekly payments are constant payments that are paid every two weeks. Accelerated biweekly payments are constant payments that are equal to ½ of the regular monthly payment and paid every two weeks. We use an example to illustrate three options. A mortgage loan of $200,000, interest rate 2.39%, calculated semi-annually, not in advance. Amortization period of 30 year, and a term of 5 year. Option
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Simple Real Estate Market Analysis

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Before people think about buying or selling properties, the first thing people would like to know is how the market is doing? It would give people an idea whether they should do something in the real estate market. We often hear about “buyer’s market or seller’s market”. What data would indicate a market’s feature? Buyer’s market : At present rate of sales, if the available inventory will be sold out over 7 months, it’s buyer’s market. Also, we can use sale to active listings ratio. If the ratio is less than 12%, it’s buyer’s market. Seller’s market : At present rate of sales, if the available inventory will be sold out less than 5 months, it’s seller’s market or sale to active listings ratio on or over 20%. Balanced Market : There is between 5-7 months’ worth supply or sale to active listings ratio is between 12-19%. Also, another term can help to explain a   market – Days on Market.  This is the  number of days between the listing date and  the date a contract is entered into.
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Property Title Search Terminology

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  When we buy a property, it’s very important to understand all terms in a title search. Here are some explanations of terms. Legal Notations : Legal notations are not encumbrances, but document other types of interests or legislative matters or restrictions that affect the property, (sometimes to the “benefit” of the title being reviewed). Easements: An easement is a right to use a neighbouring property in a specific way for the benefit of the holder’s land without possessing it. The land that benefits from the easement will be registered as Legal Notation on the title. The land that burdens from the easement will be registered as a charge against title. Easements run with the land Statutory Rights of Way : Statutory rights of way are rights that a municipal or industrial users has over certain lands.  The most common example of statutory rights of way include statutory rights of way in favour of municipalities to maintain sidewalks and other public access over lands, statutor
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Speculation &Vacancy Tax and Vancouver’s Empty Homes Tax

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  The speculation and vacancy tax is an annual tax paid by owners of residential properties in designated taxable regions of BC. It only applies to properties classified as residential that are also in designated taxable regions. Registered owners of residential property in a designated taxable region must complete a declaration EACH YEAR to declare their residency status and how their property has been used. If a property has more than one owner, each owner must declare separately even if the other owner is spouse or relative. Declaration timeline is: Receive declaration letter mid-January to mid-February Declare by March 31 (declare how you used your property last year. If asked about your income, use income from the year before last year If you owe tax, pay by the first business day in July. The designated taxable regions include Capital Regional District, Metro Vancouver Regional District, City of Abbotsford, District of Mission, City of Chilliwack, City of Kelowna, City of W
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Property Transfer Tax

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People have to pay property transfer tax when they buy a property. This would be added to the purchase price. The property transfer tax is based on the fair market value of the property. The rate is : 1% of the fair market value on the first $200,000 2% of the fair market value between $200,000 and $2,000,000 3% of the fair market value between $2,000,000 and $3,000,000 5% of the fair market value greater than $3,000,000 For example: fair market value is $3,500,000, tax payable would be: 1% on the first $200,000 = $2,000 2% between $200,000 and $2,000,000 = $36,000 3% between $2,000,000 and $3,000,000 = $30,000 5% over $3,000,000 = $25,000  Total property transfer tax: $2,000 + $36,000 + $30,000 + $25,000 = $93,000. More detail, please visit https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/calculation-examples      There is an additional tax applied for foreign nationals , foreign corporations , and taxable trustees  in the Capital Regional District,
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