The FOMO Factor – Some Facts for Home Buyers

The fear of missing out is a global factor that has recently taken a more coherent form. In routine life we all experience it – for example, you do not immediately accept a job offer just in case a better one comes along, or you wait in line for a shoe sale to open up hours before to not miss out on the best deals! This attitude has also crept into the real estate market recently. The price trends seem to go up exponentially and unstoppably. Those home buyers who were putting their purchases on hold or waiting or the right opportunity are now seen to be taking the first opportunity that comes by for fear of missing out on the best deals! Their thinking is – if they do not buy now, they will be left behind forever! Some speculate that this might actually be true. If home buyers do not jump onto the band wagon now, it might actually be too late.

Statistics show the around 19 percent of the home owners in Vancouver as well as Toronto accepted that FOMO was among the top factors for making their home purchases. Prospective first time buyers are also cautious not to rush into the process of buying so that they do not miss out on an opportunity. They also do not want to buy too fast just to win a bidding war or be too slow and be pushed out of the market entirely. So, is FOMO at least partially contributing to the rise in sales and prices in the real estate market?

It’s a fact that sales have gone through the roof in Metro Vancouver – in almost all types of neighborhoods, housing types and price ranges. Some say that this sudden rise in sales could be attributed to overseas investments, but apparently, it cannot be accounted for all the sales. FOMO sentiment among the buyers is known to be one of the main contributors to the recent rise in sales. This has in turn also impacted the prices in the real estate market.

There are some buyers who refuse to bow down to the FOMO pressure. The hope is that the whole race for bidding will stop somewhere and the market will correct itself. The real fear here is that the buyers think that they will end up paying too much just before the market crashes or corrects itself.

Logic says that you should not let fear dictate your decisions about real estate purchase. You are going to put in years of hard earned cash and there’s going to be a long term payment commitment too! You need to think about buying a home you really want or need, rather than thinking just about getting into the market. You do not want to get into a situation where you commit and then cannot afford.

On a closing note, it is important to understand that fear cannot be a factor that drives you to buy a home. You need to work out your finances, find out what price is comfortable for you and then find a home that suits you the best.

Property for sale in Vancouver. Find Vancouver Real Estate Listings by Naz Allahyari – Real estate agent and top Realtor® in Vancouver.

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South Cambie – reasons to call this tiny locality home!

From a real estate point of view, South Cambie is a 10 block space between the West 49th Street to the West 59th Street. Ontario and Oak mark the east and west borders. This little neighborhood has a lot to offer to its residents and to those who are planning to purchase real estate here. There are different reasons why people consider buying property here. Although there are plenty of reasons why, let’s take a look at some of the most noted five reasons to call this place home!

Vicinity to a major college
South Cambie has its own advantage because it is one of the neighborhoods that has a major college. The Langara College has excellent study programs and a range of subjects for specialization from accounting to arts and also hosts a number of summer camps for teens. The college is also known for its employment offers and is a huge positive for those who seek employment in the neighborhood that they live in.

Anti Traffic Design
This is one neighborhood where the housing schemes were built in between 1940 and 1970. This means that the lot sizes were large and the houses are spacious. The streets are built to discourage traffic congestion and the surroundings have a lot of space that encourages hockey games and basketball courts! It’s a perfect place if you are looking for an uncongested city life – with lots of space and low traffic levels.

Larger Homes – Many Rooms
It’s a known fact that most of the residential properties, (more than half of them to be more specific), are single – detached homes. This means that there are more rooms for families. At least 17% of the homes have 3 bedrooms and at least 37% have 4 and more. This simply implies that, those looking for a comfortable living and wish to avoid the hush – rush of city life.

Green Space to Relax
The Langara golf course is the highlight of this area. Even of you aren’t a golfer, you can take advantage of the 2.5 kilometer path that encircles the golf course. There’s a lot of green space to keep you happy and relaxed.

Rapid Transit
This neighborhood has good connectivity to both downtown as well as the airport. There are also easy transits to Metro Vancouver. There are a lot of improvements that facilitate rapid transit. This small, yet perfectly formed neighborhood has a lot of things to offer when it comes to influencing your home buying decisions.

It’s a tiny neighborhood but can offer home buyers with great benefits in terms living comfort, city life and a general life style that is far from the city traffic and rush. It’s a good idea however to consult a real estate agent and find out all you have to about the neighborhood before you make a buying decision. IF living in spacious homes not far from the city with good connectivity to Metro Vancouver appeals to you for a long term home, South Cambie is the perfect place for you!

Naz Allahyari is a Vancouver real estate agent and top Realtor® in Vancouver.

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Why Real Estate Crowdfunding Is Catching On

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Property for sale in Vancouver, Selling Property in Vancouver, vancouver real estate listings, Vancouver Realtor®, West Vancouver Realtor

Real estate crowdfunding is a relatively new approach for making finances available to develop a property, buy it or fund a real estate project. Generally a group of investors team up to provide the equity or debt required to buy or develop such real estate. This is generally done via an online platform or an online portal that is convenient for everyone.

Crowdfunding comes across as a term used to raise donations for people in need or for some noble cause. But crowd lending is a great option to quickly raise the required equity.

Real estate seems to be a great market for those looking for crowd funding and raising capital. Especially in Canada, more than $2.6 billion in global real estate projects were crowdfunded in 2015 even though the market has evolved at a much slower rate than the U.S.

So, what exactly is driving this growth?

The massive growth of mobile and electronic transactions as well as social media adoptions and securities laws that have become more liberal, all have contributed to the growth in the real estate crowd funding concept. A recent example includes the Start up Crowd Funding Exemption. This enables project owners to raise $250000 two times annually and retail investors are allowed a maximum of $1500 per campaign.

What type of Real Estate can be crowdfunded?

In the U.S. such kind of funds has been used for residential property development mainly multi family buildings. Investors are also interested in funding renovations of real estate that is in too much despair.

Commercial real estate is also another area of interest for Crowd Funding.

Let’s also check out some of the benefits for both sellers and developers

The main benefit here is to approach and seek community support for projects that may not have received enough acceptances in the past.

Benefits for investors

Among the many benefits for investors are:

• Attractive returns
• Transparency
• Access
• Convenience
• Diversification

The other good part is that the investors can select their specific properties of interest.

Risks involved

The opportunities in this area vary in terms of risk and rewards and the commitment is always long term. The good part is that this investment is backed by the asset itself or the project that is invested in.

Debt liquidity is known to vary from six months to over five years. Equity investments have a liquidity of three to ten years.

Overall, the big boom in the real estate market is the main reason for the increasing wealth of home owners, developers and investors. Lack of capital or the skyrocketing prices are some of the reasons why many people are not yet investing. Crowd funding is becoming a great means to invest in real estate properties, projects and development plans. It opens up new opportunities for investors who are willing to purchase real estate and require a means to raise the capital. Well, it is made easy by crowd funding portals and convenient for everyone involved.

Naz Allahyari is a Vancouver Realtor & Vancouver Real Estate agent. Every type of property from New Condos, Townhomes and Houses, Feel free to Call us at 778-318-5242

Is Shadow Loaning A Good Option?

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North Vancouver Realtor, Vancouver real estate agent, vancouver real estate listings, Vancouver Realtor®

In the simplest terms, Shadow Lending is a practice of private lending generally done outside the walls of a traditional bank. It includes a set of activities that are similar to a bank but is not a part of the banking system. Even thought the name suggests a secretive or illicit activity, Shadow Lending actually serves a very useful purpose.

Traditionally, the bank was the only mortgage choice for customers. Shadow Lending opens up more choices for those mortgage products.

Even though mortgage brokers charge higher interests, Shadow Lending is definitely a great option for those turned down by the bank for whatever reasons.

Let’s check out a few options where private mortgage is a better choice.

1. Some property or raw land is outside the bank’s criteria for lending. If you are investing in such a land or property, Shadow lending is a great option.
2. If you are buying a house that is needs a lot of renovations, banks may not provide the necessary funds. In this case, a private lender could be of great use.
3. If you have been recently laid off, you may require funds to bridge the financial gap while you look for a new job.
4. If the penalty to break your current mortgage is too high, you might need additional funding which banks will not provide.
5. It can be a great top up if you are facing credit issues or bankruptcy and traditional lenders are out of question.
6. Traditional lenders often turn down those who have a high interest debt. In such cases, a shadow loan could be your best bet.
7. A divorce or an illness could completely wipe out your finances. This could help you get back on your feet.
8. If you have a sizable down payment for purchasing a new home, this could be a great way to cover the down payment.

Considering all the above scenarios, here are a few questions you need to ask before you go for it.

Even if it is a private loan, you need to ask the lender about the loan document and the terms associated with it.

Ask the term of the loan as most private financers provide only short term loans. The normal time period is two to three years. You can however either refinance the loan or negotiate a longer term.

Check the amortization of such loans most of the times, the number of years is increased to keep the monthly payments lower.

One question to ask is about early payments. Traditionally, there is a penalty if you pay off the mortgage earlier. Generally three months interest is the penalty that is applied to early closure.

Vancouver Realtor & Real Estate Specialist. Every type of property from New Condos, Townhomes and Houses Contact Naz Allahyari: 778-318-5242

Efforts to track whether foreign real estate ownership the reason for price rises

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North Vancouver Realtor, Vancouver real estate, Vancouver Realtor®, West Vancouver Realtor

Tracking overseas ownership of real estate was something that the federal government wanted to do since a long time. The point is to take a closer look at the extent of foreign ownership of real estate across the nation and lack of data on who is actually buying real estate across Canada has always been an issue. Last autumn during the federal election campaigns, there was a mention of limiting the amount of overseas ownership of property, however the Liberal government has not made any such mention of applying any kind of limits to real estate ownerships.

There is a general idea that the foreign investments in real estate are the root cause of the souring prices of properties across Canada. This has especially affected Vancouver and Toronto. In the Liberal Budget for 2016 – 17, the finance minister has allocated $500000 to periodically gather all the data for foreign home purchases all over Canada. However, the resources needed to gather such amount of data are too much and the budget too less in comparison. This makes the National Bank of Canada feel that this may not work out.

The National Bank also feels that this should not be a government led initiative. It should be an initiative of the local governments such as municipal and provincial governments. These local governments could keep a track of such data more easily.

Well, another thing to take into consideration here is that – cities like Vancouver actually see a great rise in the real estate prices year after year. Other cities such as Quebec do not see real estate prices rise so frequently and exponentially. This is therefore not a pressing issue for these cities. The finance allocation for tasks such as gathering real estate purchase data by foreign investors thus cannot be a common budget passed by the government. The local municipal governments should be able to better gauge this need and allocate resources for this purpose. The overall task of gathering such statistics will be simplified and the budget will be prudently allocated.

According to the National Bank’s report, Chinese buyers attribute to at least 33% of Vancouver’s real estate purchases and 14% of Toronto. This hypothesis was derived from American Data.

All the above data only means that there is a need to analyze the real estate ownership across the country. This definitely does not mean that foreign ownership is the root cause of the rising prices of real estate in Canada. It’s just a rumor. Even though on the surface it seems like foreign investors are the cause of the price rise, there is no concrete data to prove it. This is exactly why government is stressing on the need for such kind of data. On the other hand, if there is such kind of data available, it would not mean that there is a need to limit this foreign investment. Because, if overseas investors sold out their properties, it would definitely affect Canada’s economy in some or the other way!

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Living in Squamish – here are a few reasons why it is a good option!

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North Vancouver Realtor, Vancouver real estate, Vancouver Realtor®, West Vancouver Realtor

Whistler and Vancouver have always been destinations for those who love big cities and everything that goes with living in such places. But Squamish has been a silent favorite of all those who love small towns. This little paradise is soon going to see a big transformation due to the new real estate development projects that are being implemented. Especially for young families this has become a go to destination for buying a home with a perfect blend of town and city life!

Here are some of the undeniable reasons to move to Squamish:

Considered as the recreational capital of Canada

Squamish is a world famous destination for rock climbing. It also has a lot to offer for adventure and recreation purposes. Some of these activities include – biking, hiking, kite boarding, kayaking, eagle watching and lots more. Golf is also a very common interest here. For mountain hiking and snowshoeing trails, the Sea to Sky Gondola that was opened in 2014 is one of the best options. This town has everything you might require for recreational activities!

Considered as a good alternative to living in the suburbs

Squamish has the heartbeat of a town – that’s what makes it different from the suburbs. The good part is that it’s just a 45 minute drive from Vancouver. For those who prefer to work where they live, there are plenty of opportunities in the town too – especially for those in the construction, retail and hospitality sector. In the near future, this town will see rapid development due to the increase in entrepreneurship and business development projects that are coming up.

Easy access to Vancouver and Whistler

The good news is that this little paradise is at the half way mark between Whistler and Vancouver. This gives Squamish residents easy access to their work place as well as home. Other recreational and adventure activities such as skiing and snowboarding at Whistler Blackcomb are less than an hour away.

Young Population

Another positive point for living in Squamish is that the population is mostly of young families. This means that your kids could have a lot of friends to play with. There are three elementary schools, middle schools and two universities.

Plenty of options

There are ample options when it comes to real estate. Single family homes are the most popular. However, condos and townhouse developments are also selling fast. There are plenty of options for all budgets and family sizes.

Even though, traditionally Squamish has been known to be an outdoor enthusiast’s haven, it is soon becoming a hot real estate market. A lot of young families are considering a purchase here as it provides a perfect town-like feeling in the vicinity of big cities like Vancouver and Whistler. Those in the suburbs of these big cities are especially attracted to the idea of living in Squamish while they still work in Vancouver or Whistler. It’s just so much better!

Find Squamish real estate agents in BC.Naz Allahyari, is a full-time Vancouver Realtor® for North Vancouver, Yaletown, West Vancouver, Coal Harbour, and Downtown Vancouver.

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How to Buy A Presale Condo Unit

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Buying Home in Vancouver, Vancouver real estate, Vancouver real estate agent, Vancouver Realtor®, West Vancouver Realtor

One of the biggest decisions of your life will be buying a home. It’s get a lot of entangled emotions – but you must understand that you need to do it right, because it’s a long term investment and a long term commitment. So, do not jump at the first opportunity you get. Do your research thoroughly.

Here’s what you need to know when you buy a presale condominium unit:

1. The project developers must provide you with the start and completion dates for your project. There are obviously unknown variables involved, but for project delays there is a 30 days period provided as a buffer. The developers must provide the buyers with a letter stating that the project is delayed and the new completion dates should be informed.

2. The project developer must also keep you informed of any changes in the estimated dates and such other facts. New projects are always subject to unanticipated delays and changes along the way.

3. A rescission period if given to each of the buyers. This is the time where you read the documentation, understand all the clauses and the new dates of completion of the project and then take a decision. You are also given an option to end your contract and receive your initial deposit.

4. All buyers place a 10 percent deposit. This becomes a part of your down payment. Some developers take more deposit and some take less – it all depends on the project at hand.

Potential risks – how to tackle

The very first thing to remember is to buy from a reputed buyer. This gives you the confidence that you are investing in something that adheres to quality standards and will be completed within stipulated time. Do some research and find out all the previous projects by this developer. If need be, talk to the owners.

Another important thing to remember is that a presale is not an actual purchase. It is a contractual agreement to buy the house when it is ready. So, find out how much mortgage you will get, and will you be able to afford it. You will also require a full down payment for the house.

There is no difference in the cost of the property if you buy from a developer or a real estate agent. So, make sure that you take advise. Real estate agents are more connected and internetworked in the industry and have the right knowledge to help you secure your desired condo unit at the most competitive price.

Also consult a lawyer and review your purchase for the size of the unit, finishing details, space, parking space and any additional costs or penalties that are involved. Understand what elements are mandatory and what are optional. Only then you can comfortably make a buying decision.

A presale purchase can help you seal the deal for your condo – investments. So make sure that you buy it from a reputed developer and take advice from a trusted real estate agent.

Buying a Home in Vancouver. Naz Allahyari is a Vancouver real estate agent and top Realtor® in Vancouver.

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Prices are skyrocketing – is it prudent to buy now?

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Property for sale in Vancouver, Selling Home in Vancouver, vancouver real estate listings, Vancouver Realtor®

Housing is becoming dangerously unaffordable in Vancouver. The price growth for real estate has been the world’s highest so far! This is a highly intimidating situation for a would-be home buyer. Many would – be buyers are putting their dreams on hold until the situation is under control. But will the price rise stabilize? OR will it keep increasing?

There are many who think that prices of this magnitude can never keep rising and yet there are some who think that it’s just a phase and the bubble will one day definitely burst. Some others think that the prices will continue rising, but at a steady rate – not as drastically as it currently is.

So, will buyers who do not make an investment now, be left behind forever? Will investors have to wait until the bubble actually bursts? Unless there is an economic collapse or an exponential rise in interest rates, there is no way the rise in the real estate rates can be stopped.

So, for those who are planning to buy now, even though you know that there is a possibility of a bubble burst that will lower the housing rates, here are a few things to consider:

1. Finalize your budget. This means that do not overstretch yourself. Look for properties that you can comfortably buy. There are plenty of options to consider, you can look for smaller room sizes and make some adjustments in the location. So, first fix a price range that suits your pocket, and then look for the list of properties that fit that price range. This will give you some space to breathe – even if the interest rates go up!

2. Increase the amount of down payment you will pay. Get as much help as possible and ensure that your down payment is substantial. It’s really worth it. So, even if the rates go up, the price of your property will be more than the mortgage and you will not default.

3. Real estate investment is always a long term investment. The house is yours – but that does not necessarily mean that you need to live there. You can always rent it out and live in any other locality that is suitable to you. Well, it’s important to remember that home prices keep rising and falling, so even if the price of the home is lower than what you purchased it at, after you have paid of all the mortgage, it’s yours! You can live for free! You can even rent it and gain income.

So, if you are in Vancouver, and are planning to buy a home, there is no need to be intimidated by the skyrocketing rates. Living as a renter all your life is terrifying enough! It’s like you are helping pay off someone else’s mortgage. So, break free and plan a budget for your dream home in Vancouver. It’s definitely going to be worth all the money and efforts you put in.

As a Vancouver Real Estate Agent, Naz’s speciality includes homes for sale in the Vancouver Westside, Burnaby, North Vancouver, West Vancouver, and as well as condos in Downtown Vancouver.

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Selling Strata Properties? Here are a few Tips

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Property for sale in Vancouver, Selling Home in Vancouver, Selling Property in Vancouver

It’s not the same as selling your home. Strata properties are quite different. It is actually quite different where the paperwork is concerned. Let’s check out what it entails.

What is the difference?

One of the major differences in selling your home and a strata property is that the home is on the land that you sell too – with it. With a strata property, you could be selling the home with or without the land it is on. It is hence important that you understand what exactly you are selling along with the strata property. This is not as simple as classifying whether the property is a condo, townhouse or a fraction of a vacation property.

Some residential properties are mixed setups that could also include commercial properties such as retail stores or restaurants.

Paperwork involved

The paperwork is a little different than standard. It will definitely include all the standard paperwork with some additional documents for property disclosure statements. Other than this, all the strata owners will be required to provide detailed information prior to the sale. This is exactly why hiring the right agent or realtor could come in handy. He will be able to provide you with the detailed list of documentation that will be required for the sale of your property and will walk you through the process of acquiring them too.

Corporations

Strata corporations generally have specific rules regarding the sale of their units. Some of the corporations do not allow sign boards such as “For Sale” on the property. But with the right agent for your support this should not be a problem. You will still get the right price and the right customers!

It is however recommended to hire an experienced realtor to help you strike the right deal for the property you are trying to sell. Make sure that you select an agent who has complete knowledge of the local rules and regulations for buying and selling properties. More specifically check if he has experience with strata property dealings. This will definitely help you if you are selling for the first time.

Another important thing to remember is that selling properties is a year round phenomenon. There is no right season or right time. People buy and sell all year round. So do not wait around for the market to get better or the season to end or anything. Keep your searches going!

It is observed that strata living is best option for those who want to live a maintenance free lifestyle. Busy professionals and older adults prefer such a living. The potential buyers for such a living are definitely high. It is up to the realtor to get you the right deal for the property you are trying to sell. Make sure that you have all the documentation in place and make sure that you follow all the rules and regulations as defined by the local governing bodies and you should have no problems selling your strata property!

Selling Home in Vancouver. Naz’s speciality includes homes for sale in the Vancouver Westside, Burnaby, North Vancouver, West Vancouver, and as well as condos in Downtown Vancouver.

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How Shadow Flipping Affects Your Property

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Property for sale in Vancouver, Selling Home in Vancouver, vancouver real estate listings, Vancouver Realtor®

Shadow Flipping is not a new concept. It has been going on for quite some time. It is a real estate practice where contracts can be conveniently reassigned to the next in line. To explain in detail, here is how it works. A Buyer A has a contract assigned to him for 1 million. This buyer somehow is not able to keep up and decides not to continue with the contract due to some circumstances such as a sudden hardship at work or a divorce etc. Buyer A is sure that he will not be able to pay the amount and will never occupy the home either. In this scenario, he can conveniently reassign the contract to the next buyer in line. This buyer can also be another real estate agent. But now the price of the property may be 1.2 million. The Buyer A makes a neat profit and does not even have to pay the Property Transfer Tax. Buyer B can further re-assign the contract to a third person in a similar way for more say, 1.4 million.

Technically, this is a valid practice. However, there are many rules and regulations in place for contract reassignments. The only question here is that if the property was worth so much, the initial seller did not get its full worth. He got just 1 million for a 1.4 million property?

Well, there could be plenty of reasons for such a thing happening. Firstly, the property prices are rising exponentially and resale or reassignment values are definitely going to be higher than the initial value of the contract. The original seller sold the property at the rate that was prevalent at that time. But one shadow of doubt remains, that the original sellers might have been misled to believe that the property was worth 1 million. The agent who purchased it will then make a whooping profit by reassigning contracts! This is where the contract reassignment turns out to be an illegal practice.

Of course, majority of the real estate agents will not indulge in such unethical practices, but unfortunately, there are a few bad guys everywhere. So, make sure that you do not fall for such traps!

One way you can avoid falling into such traps is, while you sell property, make sure that you request a no assignment clause in you contract for selling your property. Make it clear with the agent that you hire that there is not going to be any reassignment. This would help weed out any agent who wishes to make quick profits.
It is important that you do not go with the very first agent you come across. Make sure that you thoroughly research and meet a few before you finalize.

Once you get to know the price for your property from one agent, ensure that you cross check it with others too.

Also ask what the price is expected to be within the next few months and get the best possible price for your home in the first go!

Naz Allahyari – Vancouver Realtor & Real Estate Condo Specialist, in Downtown Vancouver, Yaletown, West End and Coal Harbour. Feel free to Call Naz at 778.318.5242

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