Buying Your First Investment Property in Nanaimo

More and more first-time real estate investors are looking to buy houses for rental income. There are a few things to consider when buying your first investment property in Nanaimo. Buy a house near where you live so you can keep an eye on the property. It’s not necessary to fall in love with a property you choose because buying an income property is a lot different from buying a house to live in. Stay focused on the bottom line and be sure to know your numbers.  Several factors that will affect the financial performance of your rental property are, the cost of any needed repairs, the length of time to find a qualified tenant, the realistic market rent, and an accurate forecast of any reoccurring expenses such as routine maintenance, management fees and property tax.

            Be sure to factor in the purchase price, closing costs and renovations. Mortgage options differ from personal purchases because investment properties tend to be riskier. Income, plus potential for vacancy, loss of rental income and maintenance expenses for rental property make it harder to get financing. Do your homework, scout rental homes, calculate rents and estimate maintenance costs before investing. Expenses don't end with the home price and closing costs. A rental home must meet the landlord-tenant laws that govern residential rentals in your area and the unit must be up to building code and habitable before you rent it out. A home in poor condition is hazardous to tenant health and safety and a liability. Repairs, remodeling or major property rehabilitation add thousands of dollars to your start-up costs.

Things to Do Before You List Your Nanaimo Home

Do your own competitive research. Attend some open houses, make calls from the signs that you see, and talk to neighbors who currently have their home on the market.  This will give you an idea of the current market conditions and who your competition really is. You may want to do a pre-listing home inspection because there may be things in your house that you’ve learned to live with that need to be repaired. It’s better to discover these before you list your home for sale as it could save you the grief of having a deal collapse. Make sure you know where you’re going to move to when your home sells. A well-priced, nicely maintained home will often sell faster than you realize. You don’t want to be caught having to scramble to find a place to live. 

You may wish to consider some updates before listing your home . Give the house a fresh coat of paint if needed, tidy up the the landscape and replant as necessary for good curb appeal.  First impressions count, and qualified buyers may not come back for a second look if they’re not impressed the first time around. Have your real estate agent put together a CMA (comparative market analysis) of homes similar to yours that have recently sold and the ones that are also on the market – these are the ones that you will be competing against for qualified buyers.

Yes…things Can go Wrong in a Real Estate Transaction

Here are some areas of concern and what you can do to avoid them.

Financing - Find an experienced and trusted lender who is not too busy to handle your loan because this is the most important aspect in having your real estate transaction go smoothly.

Disclosure – If you are wondering whether or not you should disclose something, pretend you are the buyer and if the disclosure item in question is something that you would want to know about if you were buying your house in Nanaimo, then disclose the fact.  It’s always better to disclose too much than too little, and the last thing you want to have happen is to have a buyer accuse you of not telling the truth – especially after the real estate transaction has completed.

Inspections - Most buyers are going to want to do an inspection so it is a good idea for you to do a pre-listing home inspection, so that you know if there are repair items that need to be addressed.  That way, you can take care of them before you put your home in Nanaimo on the market for sale. When a buyer does an inspection during your real estate transaction and finds a lot of things wrong, or even a couple of big things, even though they might be easy to fix, this could still put doubt in the buyer’s mind and give them an excuse to not go through with the deal.

Useful Tips for an Organized Move

It seems like the only thing more stressful than packing for a move is unpacking. It doesn’t have to be, if you follow some simple but effective steps on how to unpack and organize your house after moving. Before your move, make a list of all the items you can’t do without during your first week in your new home.  Clearly label everything on your moving essentials checklist and make sure you unload those items first. Always get more boxes than you think you’ll need. Many first-time movers are surprised to discover that their work is only beginning after the moving truck is unloaded. Make unpacking more fun and much faster by putting each box in the room it was labeled for.  Unpack one room at a time. Decide where you want your big items to go first and you will find it much easier to place the smaller items.

Put your bedroom sets together first so that you have a comfortable place to sleep the first night in your new home. Unpack your bathrooms before any other room so your family can grab a shower, then move on to the kitchen. This way you’ll really be able to start living in your new house. Next, unpack the rooms you use most often first, then unpack remaining rooms in order of importance. Make hanging things on the walls your last step and if you place them on the floor for perspective, you probably won’t end up having to rehang if you decide to move a large piece of furniture. Break down each box as you empty it, to reduce the inevitable clutter of packing material and so that you can get a better perspective of each room that you have unpacked. Inviting friends over to help you unpack after your move can also be a fun way to get your unpacking done quickly.

What Exactly Is Feng Shui Decorating?

Using Feng Shui decorating to sell real estate can make a big difference. Getting started with feng shui for your home is easy when you begin with the house basics and gradually move on to the more complex feng shui levels.  The important thing to remember is to start simply, have fun, and thoroughly enjoy the process. Using Feng Shui decorating will give your home the look of joy and harmony, and will create environments that have the best energy for a specific activity and space. If this sounds complicated, it’s really not. Feng Shui decorating in your bedroom will give that room a relaxing, romantic energy.  Your home office, on the other hand, would want to have an atmosphere of success and accomplishment.

Get rid of everything you do not love in your house to help "lighten the load."  Do not skip this step; it is essential for creating harmonious house feng shui energy. Using Feng Shui decorating on an already cluttered home or space makes no sense since the old energy foundation will still be there. Use colours and textures to replace the old energy with a new, vibrant one. Air and light are two essential elements for good feng shui energy (called Chi) in your home. Use air-purifying plants or an air purifier and allow as much natural light as possible into your home.  Use the five feng shui elements—Wood, Fire, Earth, Metal, and Water—to create balance and vibrant energy in all areas of your home.  As with traditional decorating, Feng Shui decorating focuses on bringing positive energy into your entire home, and also targets the energy of each individual space, depending on what the space is used for.

Cameron Island Condos in Nanaimo

Nanaimo has a beautiful, busy harbour.  For many the crowning glory is the Cameron Island condo development which is a prime location on Nanaimo's popular seawall, directly beside Port Place Mall, the marina, and the rest of downtown. Each of the three buildings has its own strata. All owners enjoy secure underground parking and storage. These condos offer stunning ocean and city vistas and there is always something going on in the harbour with float planes landing, Gabriola Ferry loading and unloading and many lovely boats and yachts at anchor year round.  Now that cruise ships ply the waters you can also watch as the beautiful ships sail into Nanaimo's new cruise ship terminal.

The concrete units are lovely as are the grounds surrounding the three buildings.  There are lush gardens, walkways and a beautiful pond in the centre of the court yard.  Garden and pond views are available to those units that don't have a harbour view. Life in a Cameron Island condo includes strolls along the ocean promenade, shopping in downtown Nanaimo's trendy boutiques, eating at an assortment of good restaurants and walking to the Port Theatre to enjoy some wonderful, live performances.  This development is made up of three buildings; The Newcastle, The Gabriola and the Beacon.  Both the Newcastle and the Gabriola buildings are seven stories and the Beacon is a 27 floor tower.  All of the units have large balconies and some have two.  There are a number of different floor plans.  The Gabriola Building is pet friendly.  The Beacon has a clubhouse, pool and hot tub.  The Gabriola and Newcastle buildings both have hot tubs.

Top 10 Real Estate Terms

Here are the top 10 most often used real estate terms and what they really mean:

1.  Agent is the professional, licensed individual who represents you in the sale or purchase of your real estate.  You should expect to receive the same level of professionalism from your agent as you would from any other professional.

2.  Appraisal - Your lender will often order an appraisal from an independent, third party to verify that the amount of money being given to a buyer to purchase a property doesn't exceed what other buyers have been paying for a similar property.

3.  CMA  is an abbreviation for 'comparative market analysis'. Comps are what homes similar to yours have been selling for over the past 6-12 months.  The seller's agent runs 'comps' to determine a market listing price, and the buyer's agent prepares a CMA to see what other buyers have been paying for similar property.

4.  Property Tax Assessment Is how the local taxing authority values your home for property taxing purposes. Keep in mind that the assessed value of a house is not the same thing as the market value or the appraised value of your home.

5.  Deposit almost always accompanies a purchase offer contract, and will show the buyer's good faith in making his offer.  The amount of the deposit money is generally in proportion to the sales price of the property.  Your realtor will guide you as to whether the offered deposit amount is fair for the market that you are in.

6.  Contingencies or subjects are in almost all contracts of purchase & sale. A contingency is when an offer to purchase is made 'contingent on' or 'provided that'.  Some examples of 'subjects' are financing contingencies, inspection contingencies and insurance contingencies.

7.  Inspections are one type of contingency.  The buyer should get an inspection done to determine what repairs or defects there are in a house, and to determine whether or not the price being paid for the house is fair.

8.  FSBO is short for 'for sale by owner' where a home owner has chosen to sell her home by herself and not put it on the MLS.  If you're buying one, it's a good idea to have your agent guide you because you'll still want to do the normal inspections and have contingencies in your contract of purchase & sale that will protect you.

9.  MLS means 'multiple listing service' and can be thought of as a one-stop resource for real estate for sale in your market.  FSBOs aren’t on the MLS but the majority of homes for sale usually are.  The MLS is also used by your realtor to prepare a CMA and will also assist your lender in developing an appraisal.

10.  Closing is the day that both sellers and buyers are waiting for, when the Title is transferred and recorded and the mortgage is funded, and the home changes hands.