We met with an owner today who had a property and was unable to sell it without a drastic discount in the current market as she needed the equity to be transferred to a recent purchase.

After crunching the numbers, it turned out that by renting she would be about $500 better off by retaining the suite and renting it out through Downtown Suites.

How did we arrive at this number? By determining her net equity in the old suite after selling, then calculating how much the new mortgage would be lowered by reducing the equity amount compared with the rental income, less expenses.
This one example shows a very good reason why you should consider renting as opposed to selling.

In addition, consider this:

• If your property is sold you may not be able to get back into the market so easily later on.
• Rents will go up over time, we are allowed to raise rents by 4.3% annually ( this increase % fluctuates yearly and is set by the provincial government.)
•  The principal owing will reduce as it is paid down, providing you with more monthly income.
•  The tenant will pay most of the costs for your holding the property.
• Finally, the suite of course will continue to appreciate as well over time.

This particular suite was what we call a blue chip investment, right on the water front on Marinaside Crescent in Yaletown. They are not building any more real estate there and this suite will definitely continue to be more valuable and sought-after.

If you are currently trying to sell your suite in this depressed market, we encourage you to discuss with us at Downtown Suites how we can maximize your rental income and preserve your investment.

Today’s message from our friend Zamir at Ratehold

Just when you thought that rates couldn’t get any lower….

They did.  5 year fixed rates are as low as 3.45%.  Can you believe it?  I locked in my mortgage at the 3.89% range, thinking that I was at the lowest of the low.  And then they got lower.  I feel like the bonds yields are pointing and laughing in my face.  The finance minister also threw an empty beer can at the back of my head as I cried in my kitchen; talk about insult to injury.

And I have just received word that the rates are planning to climb back up.  Now would be a good time to lock in your mortgage or consolidate some debts.

Nic Meyer and Lisa Taylor recently presented to Ozzie Jurock’s Real Estate Action Group, for their September Meeting.

Talking about the pitfalls to avoid in renting suites and condos, Nic and Lisa went over all the reasons why hiring a professional property management company is the smartest way to go.

The talk is here in 4 parts, along with slides from the presentation.

Video Part 1, Introduction from Ozzie Jurock. Why hire a professional management company? What does a management company do for you as an owner/investor?

Video Part 2, Pitfalls and tenant issues and how to avoid them

Video Part 3, More on pitfalls and tenant issues and how to avoid them

Video Part 4, Tenants to look out for, the value of working with experienced professional management, advice for owners.

View the slides that accompanied the talk

A video overview of the current Real Estate Sales Market in Vancouver BC with Nicholas Meyer, President of Downtown Suites.

Nicholas Meyer and Lisa Taylor of Downtown Suites Ltd. in Vancouver BC discuss the current rental rates.

In this video, Nicholas Meyer of Downtown Suites outlines some of the information non-resident owners need to know about selling their property in Vancouver.

Our real estate market is off and running again contrary to the scare stories from south of the border and other parts of the world.  Why?  There is pent up demand, still, for our product. The prices which were becoming over-inflated have corrected, and interest rates have lowered yet again to near record lows – making home buying the cheapest it has been in three years!

Real estate will always be the number one investment in BC.  If you’re thinking of investing be sure to give the Downtown Suites Team a call to assist in your acquisition and management.  Please ask for me personally and I will be happy to discuss your objectives with you.

The BCREA released this info from Chief Economist Cameron Muir yesterday:

British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 35 per cent to $2.3 billion in March, compared to the same month last year. Residential unit sales declined 25 per cent to 5,464 units during the same period. The average MLS® residential price in the province was $424,122 in March, down 12 per cent from March 2008.

“While fewer MLS® residential sales were recorded last month compared to March 2008, home sales actually climbed 24 per cent from February to March on a seasonally adjusted basis, the second consecutive month of gains,” said Cameron Muir, BCREA Chief Economist.

A significant increase in affordability helped fuel housing demand last month. “Reduced mortgage interest rates have effectively doubled the impact of lower home prices on affordability,” added Muir. While the average sales price in BC declined 12 per cent from a year ago, the monthly payment on the average priced home was 24 per cent lower. “Housing is now more affordable than at any time in the last three years,” noted Muir.