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.

Top Spots for Shopping in Nanaimo

Living in Nanaimo means you don’t give up a thing when it comes to shopping.

Woodgrove Centre is the largest shopping mall on Vancouver Island located on Old Island Highway #19A. and has 150 shops.

Country Club Centre is located on Old Island Highway #19A. and has over 50 Shops

Nanaimo North Town Centre located on Rutherford Road and Old Island Highway #19A. has over 50 shops

Port Place Shopping Centre located in downtown Nanaimo has over 30 shops

Big box stores include: Superstore, Costco, and Home Depot

Downtown Nanaimo includes 3 distinct areas that offer many unique shopping experiences.

The Arts District with art galleries, studios and artist cooperatives featuring local and BC artists all centred around Commercial Street.

Old City Quarter has destination shopping and dining along pedestrian friendly cobblestone streets. This area features revitalized heritage buildings dating from the late 1800s to early 1900s. Located at Fitzwilliam and Wesley Street.

Waterfront offers souvenir shops, boutiques, and ice-cream. Located along the harbourfront walkway (seawall).

Farmers Markets with fresh, seasonal produce and other handmade goods are available at

Lantzville Farmers Market , Cedar Farmers Market, Bowen Road Farmers Market, Nanaimo Downtown Farmers Market

Moving Mishaps And How To Avoid Them

Don’t move when everybody else does if you can possibly avoid it. For a cost effective move, consider moving toward the beginning or the end of the month, and not during the summer.  Booking a move when everybody else isn’t is a great way to avoid over-extended movers who may be so over-worked that something may go wrong. The earlier you start your move, the more moving companies you can have do a visual inspection and quotation, and the more research you will be able to do.  Not having to rush around will save you quite a bit of stress. Also, don’t forget to back up your computer and if possible, take your computer with you when you move instead of having the moving company handle it.  Much like losing an item with sentimental value, the data that could be lost from computer damage is often irreplaceable.

Moving can be quite expensive, but deciding to choose a mover based on price alone is almost always a mistake.  Clever movers will quote one low price up front, then find creative ways to tack on extras.  Some unethical movers have even been known to try to collect more money upfront when they reach your new home, actually refusing to unload the truck until you pay them what they are asking. Movers generally charge by weight, volume and the time it takes to load and unload your items.  So getting a visual inspection and quotation from multiple moving companies is very important.  If you are considering getting an online quote there is no practical way they can come close to being accurate because every move is unique and different.

Buying a Nanaimo house with good resale value

Buying a house is an exciting time. People can often get caught up in the moment when they are making a decision of whether or not to buy a house and may not be considering resale.  However, it is important for them to consider resale value when they are contemplating a home purchase. Buying a home is similar to any other investment purchase, there are risks.  If you are looking towards buying a Nanaimo house with good resale value the top thing to consider is location.

Look for a house that does not back onto a busy street and avoid corners and intersections. A good choice would be the middle of the block or a cul de sac. Be sure all essential shops and services are located nearby and should include grocery stores, gas stations, dry cleaners, and convenience stores. There should also be fairly convenient access to local highways, major traffic routes, and public transit. Have a good look at the local shopping centre to see if it is healthy and busy and not in decline.  If it is, this could indicate that the local neighborhood is also in decline.  If there are a lot of “For Lease” signs, you might want to reconsider your purchase.

Quick tips to get your Nanaimo home ready for winter

            The winter months are quickly approaching, so be sure that you and your Nanaimo home are ready for the winter months ahead.  It is very important to safely get onto your roof to inspect for missing shingles or other factors that may lead to a leaky roof. If you are not comfortable doing it yourself, call in a professional and have them take care of the rooftop work for you.  Inspect doors and windows to ensure that the weather-stripping is in good condition to keep your house warmer and cozier in the winter months.

            Make sure that your heater and ventilation systems are in good working order.  Clean out accessible ducts and replace filters where necessary.  Inspect your chimney for creosote and call a chimney sweep to keep your fireplace safe and functional.  Now's the time to clean out those rain gutters.  If you want to do it yourself, make sure that you can safely access the gutters and then scoop out any debris, blast the drains clean with a high-powered hose, and repair any leaks you may find along the way. Drain water from outdoor faucets and sprinkler systems to keep those pipes from freezing. Disconnect and store outdoor hoses; cover outdoor faucets with foam insulators.

Moving with kids – It can be fun

            Moving with kids can be stressful, but there are a few things that can make moving fun for the whole family. Plan a Movie night to watch a family favorite. This can make your new house feel familiar. Order pizza or have root beer floats and forget about the day's stresses and enjoy each other's company, along with a meal that is easy to clean up.  When beds are still packed, camp out on your living room floor for a great adventure for the kids. Sleeping in the same space can be reassuring to young children.

Let your children have a hand in decorating their new room.  Their age will dictate the level of their participation but younger children can still help pick a favorite accent color or a few new accessories. Older children could pick design styles, new bedding, and even paint color and their involvement will help them feel ownership of their new space.

To lessen anxiety for the younger kids, take Goodwill piles to the trunk of your car at night so that you can drop them off the next day. That way they won’t accidently see that one toy they never played with and decide it’s their favorite and you’re a monster for giving it away. Perhaps before you move, if it is at all possible, you might plan to take a trip a week after the move to give you all something to look forward to after leaving your friends and old neighbourhood behind.

How To Make Money Being A Landlord

Invest in a rental property that is low maintenance. The more items you have in your rental property that require maintenance, the higher your potential repair costs could be. Spas, elaborate landscaping that requires a lot of upkeep, and fancy kitchen appliances are just three examples of things that could end up costing you more money in repairs than what you are making in rent.

Do you really want to be on call 24 hours a day, 7 days a week?  Experienced landlords and property managers know that if a toilet gets clogged, a heating system goes down, or if a tenant locks themselves out of their house, it is not going to happen during normal business hours.  When you are a landlord be prepared for a 2 a.m. wake-up call from your tenant with an emergency that he thinks needs to be solved right away. Many professional real estate investors engage property managers to deal with tenants.  While there are pros and cons to this, there is the added expense of the property manager fees that cut into your profits.

Familiarize yourself with B.C.'s landlord tenant laws. Many new landlords think that they can choose who they rent their property to and end up accidentally violating tenancy laws.  Successful landlords know that the last thing they want to do is discriminate - even by accident - and receive a notice of violation, or worse. Before you decide to become a landlord consider the true costs involved in owning rental real estate and do the necessary research to make your income property in Nanaimo a success.

Nanaimo Homes For Sale – Is It Worth It To Stage?

When home staging is done properly, it can potentially put your home ahead of the competition.   You want prospective buyers to imagine that they’re already living in your home.  A well staged home shows buyers what it could be like to live in that home.  Homes often sell faster when staged. Even at more modest price points, staging can help a property command a higher price.  However, some homes look better when they’re empty than when they’re filled with furniture.  Sometimes it’s the floor plan, sometimes the lighting looks better without furniture, or maybe there’s a huge picture window that will draw peoples attention to the gorgeous view you’ve got.

One way to decide whether or not to stage, is to survey your competition.  Pretend you’re a potential buyer for your home, then take a good look at what the alternative choices are.  Visit open houses, see what’s available over the internet, and maybe even ask your real estate agent to take you around to view competing properties when they’ve got a little extra time. The cost to stage your home for sale is also something to think about.  If there are a lot of similar homes for sale when yours goes on the market, maybe it does make sense to spend a little extra and stage your home.

Staging a Home for Sale In Nanaimo

We have plenty of experience staging homes for sale in Nanaimo! Please call for more information.

Housing in Nanaimo for the 55+ market

A real estate agents client base is often made up buyers seeking housing for the 55+ market.  Often at this point in life couples find themselves to be empty nester's and choose to be less tied down to their homes.  Perhaps they want to travel more and don't want to leave a large, family home un-attended.  The other possibility is that couples are thinking ahead to a time when either age related difficulties or health concerns may make owning a traditional home too difficult to manage. According to stats from Nanaimo's City Data the Median age of the population in Nanaimo is around 43 years of age.  It is likely this median age in Nanaimo will soon be 55+.

The top choices for housing in Nanaimo for the 55+ market are: ranchers with low maintenance landscaping, patio homes, manufactured homes in development's like Deerwood Estates and single level townhouse, half duplexes and condos. The wonderful thing about purchasing any of the above is that the resale potential on your home will be excellent.  As the population ages housing in Nanaimo for the 55+ age group should be much in demand. For a complete list of available housing in Nanaimo for the 55+ market please either email me or give me a call.

Nanaimo Real Estate 55+ Market

If you are in the 55+ age range and are interested in Nanaimo real estate, please call us. 

When is it Time To Downsize Your Home?

Look for these signs to tell if it's time to downsize your home:

1. When you find yourself more and more leafing through beautiful, four-color travel guides to  transport you to far away places you'd rather be instead of house cleaning or caring for that big backyard, it may be time to consider trading down for a low-maintenance easy care condo or townhome.

2.  Are you and your spouse beginning to rattle around in your home? Perhaps you've got too much house and need to move.

3.  Owning a bigger house than you need means higher utility bills, higher maintenance costs and higher landscaping costs.  Even if you're not financially stressed, you may still be thinking that there must be better things to do with your money than pay that high heating bill every winter.

4.  You have accumulated so much stuff that the garage and spare bedrooms are being used as storage rooms is a sure sign that you've got too much house and a garage sale may be in order.

5.  More and more baby boomers are reaching retirement age and are selling their big homes for something smaller.  Many real estate experts question whether or not the next generation of buyers are going to be willing or able to buy all of those big homes on the market.  If this proves to be right, now might be the time to consider downsizing rather than waiting for everybody else to do it. 

Nanaimo Homes For Sale

For other pertinent information regarding Nanaimo Homes for sale call us anytime!

Should I find a home before I list mine?

Is it best to find a home before listing or list and then find a home once it sells? 

There is the chance that if you sell your house first, you might not be able to find anything, or you find something and lose it because your house doesn’t sell in time. To prepare yourself in the best possible way you may want to do some research by viewing some homes that appeal to you. Choose a Realtor that is well-informed about the area and knows what these homes are worth. This will help you avoid overpaying for a property and reassure you that there are many lovely homes available and that one or several of the current listings may work for you.

Should I find a home before I list my Nanaimo home? 

            A Realtor can supply you with a CMA (Comparative market analysis) which will help determine the market value of your home.  Ask your realtor to do a room-by-room walkthrough, and make recommendations on ways to stage or declutter your home so it shows at its best.  This is also the time to make any repairs necessary to get your house sold. Get your finance in order for your next purchase.  The mortgage market has seen some big changes over the past 6 months.  Its important to know what you will be approved for at the new rates and with the new requirements. Doing your up-front research will pay off as you will be in a position to get your home listed quickly when you are ready, or when the right house comes onto the market.

How to Motivate People to Buy Your Home

Smart home sellers should always remember that buyers have many choices.

Qualified buyers usually go for the home with the best asking price and the one that gives them the best value for their home-buying money. If you're trying to sell your home in a competitive market, you are going to have to be price competitive. It's not always about asking price, however.  Sometimes you will have to take that extra step to get a qualified buyer to choose your house to make an offer on instead of the house down the street. You can probably think of many ways if you are willing to 'think outside of the box'.

How to Motivate People to Buy Your Home in Nanaimo

             

            The following are some suggestions to motivate buyers to buy your home. Reimburse them for their legal fees and other closing costs. Offer them a credit for any cosmetic work that needs to be done, such as painting or carpet cleaning.  Provide a credit for updating appliances, bath room fixtures, or window coverings. If you can afford it, arrange for a weekly cleaning service for a certain amount of time, after the deal is done, as a 'thank you' for them buying your house. When you do this, you set yourself apart from the competition and give qualified buyers good reason to choose your home rather than the one down the street.

What to consider when buying a home

There many things you need to keep in mind when buying a home. Choosing a desirable neighborhood and the number of bedrooms are two very important things followed by resale considerations. When looking at your needs, budget and personal tastes come into play to decide if  you want a new home or one that requires some work like a "fixer-upper."  If the area you are considering has a lot of seniors, consider purchasing a home with no stairs like a rancher. While house-hunting, it's a good idea to make notes about and take photos of what you see because viewing several houses at a time can be confusing.

What to consider when buying a home in Nanaimo 

If you are thinking about buying a condo, it makes sense to spend a bit more and get a two bedroom unit because a one-bedroom condo is far more difficult to resell. You may also want to consider how high strata fees are, ability to rent out unit and if pets are allowed.  On the other hand, 2 bedroom homes are very hard to sell and have very little appreciation potential. Most people want at least three bedrooms. Homes with a well-maintained, attractive, and charming view-from-the-street appearance have good resale potential. You can protect your investment by not buying a different or unique home to allow for broader appeal to more potential buyers.

Property Disclosure Statement – What is it & why is it used?

In Nanaimo, as well as the rest of B.C., it is law that you must complete a Property Disclosure Statement (PDS) when listing a home.   This document is completed by the seller about the property they are trying to sell and is part of the paperwork necessary to list a house.  There are specific property disclosure statements for residential, strata and rural property. All parties to the sales contract must sign and date the property disclosure statement. This PDS does not mean that the buyer should not have a home inspection.  This inspection helps buyers understand the condition of the property and what repairs may be needed.

Nanaimo Property Disclosure Statement

A property disclosure statement is important because the seller and the seller’s Realtor must, by law, disclose any known material latent defects in the property to the buyer.  The property disclosure statement helps protect against allegations of negligent misrepresentation. Some trouble areas include: boundaries (property lines), insulation, roof condition, septic tanks, structural problems and well water. When a buyer views a property disclosure statement they should still plan to make their own inquiries about the property.  This is especially important if the seller has initialed that he/she has no knowledge as to the status of a question on the PDS.  Many questions on the PDS are worded “Are you aware… or To the best of your knowledge…”  In many cases a seller may not know the status of insulation etc.