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Renovations: How To Get The Best Return On Your Investment

When considering a home renovation, it’s worthwhile to consider the potential return on your investment. After all, not all renovation decisions result in an increase in home value or appreciation by a future homeowner. Careful planning can help you maximize your improvement decisions and increase the likelihood of seeing a return on your investment.

Here are a few ways to get the best return on a renovation investment.

Set a Reasonable Budget

Determining the best amount to invest in renovations is no exact science. The best method is to choose a reasonable amount to invest and work from there. Setting a budget not only keeps your finances under control, but it will also help guide decisions while making challenging choices more clear-cut.
In conjunction with your budget, a wish-list will be helpful. Writing down everything you hope to include in your renovation in the order of priority so that in the event a contractor’s quotation exceeds your initial budget, you can ax the lower priority items. Alternatively, if you’re set on including everything on your wish list, you might include lower cost options rather than higher cost options enabling you to be comprehensive.

Expert’s advice: Renovations can easily get carried away. The best way to prevent an out-of-control renovation is to allow your budget to dictate your decisions. As there are almost always overages, it is not recommended to work towards your maximum budget, as the end cost will inevitably be more. Consider working towards a lower budget with the assumption that additional costs will occur.

You can read more here.

Content provided by The Rennie Group

Investment Property: Do I Need to Get Home Insurance?

Buying a new home can be overwhelming, with a checklist that just will not seem to end. From finding a perfect property to securing your mortgage to winning a bidding war, it can be an exciting, yet overwhelming process. One of the items often overlooked is home insurance, especially when the buyer does not plan to live in the space.

Is home insurance is necessary for investment properties?

The answer: absolutely! Overlooking getting an insurance policy for any investment property is simply too risky. While insurance on its own can be quite complicated, there are unique differences between the likely requirements between condominiums when compared to single-family detached investments. Nevertheless, both condominium and single-family detached properties will require some level of insurance when purchased as investments and occupied by tenants.

What insurance covers in an investment property.

In the case of condominiums, the strata corporation will have an overarching insurance policy which covers the building itself. In addition, the strata’s policy will include coverage for things like sewer backup, water damage, earthquake, fire, and even things like cyber liability in some cases.

You can read more here.

Content provided by The Rennie Group

Does Subject-Free Mean I Cannot Do a Home Inspection?

No. Subject free does not mean you cannot do a home inspection, but it does mean that the inspection will occur prior to the preparation of an offer rather than following the acceptance of an offer. For those who care less about the condition of the home – those potentially looking to rebuild – a home inspection may not be necessary. But, for those who plan to reside in or rent the home, it would be incredibly risky to proceed without investigating the property through the eyes of an inspector.

Here are three tips to ensure an effective home inspection when considering a subject free offer.

Align Yourself with a Few Home Inspectors

Having one trusted home inspector is helpful, but not always practical in a heated housing market. In a hot market, a property released to the market today might mean an inspection should happen within a very few number of days – for this reason, having more than one inspector to call upon can increase the chance of sourcing one who is available. In advance of your new home search (or at the very least, while you begin looking at potential properties) start sourcing a few more inspectors you trust and could call upon for an urgent inspection. To find reputable inspectors, consider speaking with friends and family or your Realtor for suggestions.
Note: We can also provide a list of three inspectors so you can determine the best fit for you.

You can read more here.

Content provided by The Rennie Group

When to Make Your Move: a Buyer’s vs. Seller’s Market

A little lingo can go a long way. For instance, you’ve probably heard the terms “buyer’s market” and “seller’s market” — you may even have found yourself using them in conversation. But do you really know what they mean? Understanding how supply and demand affects market value will be useful as you hunt for your next home or sell your property.

In recent years, the Lower Mainland’s housing market has been characterized by conditions largely favourable to sellers: a limited supply of available homes paired with high buyer demand. Having said this, the existence of a “seller’s market” doesn’t mean that homes will be overpriced or unaffordable for first-time buyers. Many buyers have had success finding the right home at the right price by staying on top of market trends and making strategic offers with the help of trusted Real Estate Advisors.

You can read more here.

Content provided by The Rennie Group

Rennie Review: August 2017

Each month, Rennie Market Intelligence produces the Rennie Review, which includes the latest real estate data for Vancouver and the Lower Mainland’s housing market. In addition to presenting detailed neighborhood-level stats, the Rennie Review also includes current Rennie Marketing Systems projects, featured listings, client testimonials, our take on the latest market conditions, and more.

For your reading pleasure, please click here for the August 2017 edition of the Rennie Review.

Content provided by The Rennie Group

 

How Do I Know What My Home is Worth?

If you are considering selling your home, the most fundamental step in the process is to properly determine and understand what your current property is worth. Many factors come into play when you consider what you should sell your home for, and why. It is one of the biggest decisions you will make, and usually a big determining factor on the price range for your next home.

When looking at your home’s assessed value, keep in mind that elements such as neighbouring areas and home improvements are sometimes missed when collecting data for the BC Assessment, and these are the features which make all the difference when it comes to your homes actual current market value. As the BC Property Assessment is filed annually in July, it is often out of date with the current housing market and can often be misleading should the market have taken a downturn or have rapid growth.

You can read more here.

Content provided by The Rennie Group

Buying or Selling: Which Should I Do First?

If you own an existing property and are looking to move on you are inevitably faced with a tough question: should I sell first or buy first?

There are many factors that come into play when deciding which move to make first. This mostly depends on your unique situation as an individual or family, such as the amount of risk you are willing to assume and the timeframe that you are working within. Factors like current marketplacetime of year, location and property type also contribute to coming up with the best strategy. Ultimately there is no right answer across the board – it truly just depends.

You can read more here.

Content provided by The Rennie Group

Assessed Value: Not Equal to Your Property’s Value?

You’re in the market to purchase a new condo in Mount Pleasant. The condo is listed for sale at $620,000. When you attended the open house, there were tons of people walking through the home and nodding with interest. Your Realtor advises you offer full price at $620,000 in hopes for a quick and easy sale. The seller accepts and celebrations are in order!

You return home and realize that the home is listed on BC Assessment for $550,000. And you’re left wondering if you’ve overpaid and what the fair market value is on your home.

Do not fret! The BC Assessed value may not be 100 percent accurate on what a home could sell for in the marketplace today.

You can read more here.

Content provided by The Rennie Group

 

Renting Is King in Vancouver’s False Creek Flats

Since the city released their proposed draft plan for the area, there’s been a lot to look forward to from the False Creek Flats. As the future home of the St. Paul’s Hospital, the Flats are well on their way to becoming an important Vancouver neighbourhood.

Even now, before the False Creek Flats are rejuvenated, this has become an attractive area for renters (and, therefore, investors). In the last five years, the population of the Flats has grown by 7%. Compare that to the City of Vancouver (5%) and Metro Vancouver (6%), and you can see that the area has already been attracting a lot of attention. Let’s look at some of the trends and neighbourhood features that are responsible.

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Rennie Review: July ’17

Each month, Rennie Market Intelligence produces the Rennie Review, which includes the latest real estate data for Vancouver and the Lower Mainland’s housing market. In addition to presenting detailed neighborhood-level stats, the Rennie Review also includes current Rennie Marketing Systems projects, featured listings, client testimonials, our take on the latest market conditions, and more.

For your reading pleasure, please click here for the July 2017 edition of the Rennie Review.