Move To Nanaimo

18January2010

The World Continues to Discover Us.

Posted by Ryan Coffey under: Nanaimo Profile and Events.

The hoopla of the Olympics are yet to start and Vancouver has been a city that people around the world of have been aware of for a while now but Vancouver Island recently got some positive press overseas. The Daily News, a UK newspaper with a distribution of 2.2 million, not to mention a large online presence which I keep running into via stumbleupon, has written a rather favourable article about our humble island.

I’ve seen similar articles about Vancouver Island or Nanaimo from newspapers in other Canadian cities and travel magazines but this one sticks out in my mind partly because of how far the author has come and chosen here from the endless array of places to write about, but also because of how many people must have read about it.

This article of course speaks of tourism, but the large number of U.K. Expats in the area (like my dad) and U.K. food stores are testament to how many have been and continue to live out here. Nanaimo’s nicest pub? British. Nanaimo’s finest gourmet food store? Ironic as it sounds, is owned by a Scot. The local army infantry unit is the “Canadian Scottish Regiment” where you will typically see a bottle of HP sauce at meal time despite virtually everyone having the local accent.

Such an article makes a small but potentially noticeable impact on the local real estate market, but many of them make a large one. I’m watching quite closely to see what happens during and after the Olympics because I think this is just the beginning.

I hope Doctor Who comes and makes a visit in an upcoming episode. That would be so cool!

Here is the link to the article, which I only just found thanks to stumbleupon:

Daily Mail Article

Ryan Coffey

13January2010

What Sorts Of People And How Many Are Allowed To Move To Canada?

Posted by Ryan Coffey under: Buying as a non Canadian.; Uncategorized.

Thanks to my online presence and the fact that I hang out in international/multicultural circles, I get quite a few inquiries from people who are looking to move here from other countries. A while back I started a category of posts I titled “Buying as a Non Canadian” but haven’t added to it much since because I’m a Realtor, and not an expert on immigration matters. Over the course of years I’ve learned quite a few tips and tricks about such matters, but not the sorts of things you write a blog post about.

However, I recently got something in my inbox from an Immigration Lawyer that I thought would be of interest to international readers of this blog so I asked for permission to post it here.  And yes, permission granted.

The .pdf document below is from David Aujla, and Immigration Lawyer who operates out of Victoria. Check out his site at www.bcimmigration.com

It paints one portion of the picture of how easy/hard it is to gain entrance into Canada from abroad. I can tell you from experience though, that it takes a certain amount of determination and time to accomplish this worthwhile task. When my (now) wife and I moved back from Japan it took quite a few months to get the documents together and then about 6 or so for the application for me to sponsor her to be processed. Many don’t use a Lawyer due to the cost, but like real estate, it’s high stakes stuff that is very complex and could easily send your life down the wrong track should you miss one of the many important details of the process.

looking_ahead_to_2010

Ryan Coffey

12January2010

Nanaimo: Leading The Island In New Construction In ‘09

Posted by Ryan Coffey under: Nanaimo Real Estate Market; Uncategorized.

New house construction is starting to recover after rough economic times saw financing and purchasing dry up.

Photograph by: Files , Times Colonist

Nanaimo was the brightest spot for new home starts on Vancouver Island in the past year, the Canada Mortgage and Housing said Monday.

While the “Hub City” had 13 per cent fewer starts last year than in 2008, other Island communities saw annual declines of up to 53 per cent year-over-year.

Recovery from a struggling economy looks promising as the last three months of 2009 had more new housing starts than the last five quarters.

“The modest rebound in new construction activity observed during the fourth quarter of 2009 is a sign that builders are starting to respond to the recent surge in resale demand,” said Travis Archibald, CMHC senior market analyst.

On Vancouver Island the total number of homes getting under construction last year was 2,345, down 39 per cent from 3,823 in 2008.

Last year’s numbers are not a surprise. The worldwide economic crisis and crash in the local multi-family housing boom led to lower monthly start-up numbers in 2009.

However, national house construction rose more than expected in December as Canada’s real estate market continued to show signs of recovery.

Housing starts in Nanaimo slipped just 13 per cent for 2009, compared with far larger drops elsewhere on the Island. A total of 789 homes were started in Nanaimo in 2009, down from 921 in 2008.

At year’s end, Greater Victoria had the highest number of total starts, at 1,034, down 45.7 per cent from 2008’s total of 1,905.

In December, 129 homes were stated in Victoria, down from 159 in November, but a huge increase from just 38 in December 2008.

Duncan’s total starts for last year came in at 168, down 38.9 per cent from 2008. The Courtenay area saw starts slide by 52.6 per cent to 245 in 2009, from 517 the previous year, CMHC said.

Finally, Parksville-Qualicam ended the year with 100 starts, a drop from 205 in 2008.

CMHC said the number of seasonally adjusted housing starts across the country were up 5.9 per cent from November, to 174,500 units. Most economists had expected an increase of between 160,000 and 165,000 units in December, following an upwardly revised 164,800 starts the previous month.

“The improvement in housing starts was broad based in December,” said CMHC chief economist Bob Dugan. “Solid increases occurred in both single and multiple starts to end the year.”

The Bank of Canada may shed further light on whether that strength has pushed Canada into a housing bubble when one of the governor’s advisers talks about the real estate sector in a speech Monday afternoon in Edmonton.

The speech will be closely watched for clues of growing concern among Bank of Canada policy-makers on the red-hot recovery in Canadian real estate. It is to be delivered by David Wolf, an adviser to Bank of Canada governor Mark Carney.

According to CMHC data, urban starts were up 6.6 per cent to 157,100 units in December, CMHC said in its report. Multiple-unit starts totalled 77,700 during the month, up from 72,800 units in November, while single-unit starts totalled 79,400, up 6.4 per cent from the previous month.

Urban construction was up 17.8 per cent in Quebec, 15 per cent in Atlantic Canada, 8.7 per cent in British Columbia and 2.9 per cent in Ontario, the report said. In the Prairies, urban starts declined 3.8 per cent.

Rural starts were unchanged at 17,400 units.

“Overall, the uptick in Canadian residential starts underscores the improving response of builders to the dramatic rebound in overall Canadian housing market activity,” said Ian Pollick, economics strategist at TD Securities.

“It is increasingly looking like the ‘fever’ in the existing home sales market is starting to catch in the new residential housing market. Further, the pullback seen in permits strikes us to be an unwind from unsustainably strong gains due to one-off factors.”

Meanwhile, Statistics Canada said Monday that Greater Victoria’s building permits climbed to $68.6 million in November, up by 48 per cent from $46.4 million October, and higher than November 2008’s total of $49.3.

The Victoria construction industry received a boost Monday with the announced of $42.5-million in renovations to six UVic buildings.

The value of national building permits fell in November by 4.6 per cent from the previous month to $5.9 billion. Still, that was 23.1 per cent higher than November 2008 and 62.8 per cent higher than February 2009, “when the lowest value during the economic downturn was recorded,” the federal agency said.

“However, November’s value remained below values recorded in 2007 and early 2008.”

The decline was due to a drop in the non-residential sector, which offset increases in the residential sector, the agency said.

In a separate release, the Construction Sector Council said the industry the housing recovery is helping the industry emerge from the recession “relatively unscathed,” as a result of government stimulus spending and pre-recession record levels of investment.

The not-for-profit group said construction employment has been rising since August after falling from October 2008 to July 2009.

“This will likely continue because of new infrastructure projects, renovation and maintenance work, and strengthening housing starts,” it said.

Canwest News Service

5January2010

Hey Rest of Canada, Cold Yet?

Posted by Ryan Coffey under: Nanaimo Profile and Events.

Yes, that’s right. I’m gloating, being smug and even cheeky.

A little over ten years ago I moved out to Nova Scotia, on the east coast of Canada, to finish my degree. When I moved out there, I knew it was colder there than the west coast, I knew there would be more snow, and I knew I would need to dress differently. I didn’t, however, have even the slightest clue what I was getting into. I still whine about it and it’s been a number of years now since I left.  Six months of snow, bone chillling winds that are often so strong that you actually walk with a pronounced lean into the wind at nighttime temperatures that are frequently -20 Celcius (that’s -4 Fahrenheit) and sometimes -30 (-22) or lower and often snow piled as high as your head. Driving is a different world to say the least, and only possible when the snow plows are doing their thing and you’ve managed to get it out of your driveway or in some cases figure out which bump in the snowy driveway is actually your car.

Can you tell I don’t miss it?

There’s a lot of nice places in the rest of Canada, and the people are really nice too. In many ways I really like Canada overall as a place to live, but it’s just too cold for me much of the year which is why I came back to the west coast. (That and it’s pretty here.) The mild winters here that are rainy rather than frozen are a blessing if you ask me. Well… I admit that I did see some frost on my car about three or four weeks ago, but it was only about -1 out so it melted pretty quick. There was also a bit of snow that melted in about a day around that time as well.

Here is a list of average January high and low temperatures by city across Canada. Nanaimo is just across the water from Vancouver so I’m using the Vancouver numbers to represent us as I doubt they’ll vary much. These stats are from the Weather Network. My guess is that these are daytime temperatures as I know the nighttime temperatures to be generally colder in the places I am familiar with.

28December2009

2009:Year in Review

Posted by Ryan Coffey under: Uncategorized.

Last year, my first year of this blog, I put up a post around this time where I made a list of the posts which I thought were of most use to anyone who wants to inform themselves about real estate in Nanaimo. I’d like to do the same again but also remind people that although the markets change as do the laws that those of us who make a living in Real Estate have to contend with, that the basics of real estate do not. This is why it would behoove you to review last years’ list as well if you want to consider yourself well informed.

It was quite a year for those of us in the real estate business though. It was very slow for a long time but continually and gradually gaining speed throughout the year. By the time fall came around it was as if winter had dragged on and then the spring market had come six months late. In my eyes it was clearly due to pent up demand created by the media scare. As sales started to increase I saw more and more new construction projects start to pop up again. There had been so many these past few years that their absence was something I really noticed, much like the lack of robins and hummingbirds in the winter. 2010 should be quite the ride. I usually go to Japan for a month this time of year, but business has been so busy these last few months that I’m sticking around and putting the trip off.

And here are what I consider to be this blog’s best of 2009 (at least, the info that is still useful now):

Good Debt:Yes, There IS Such a Thing!

Why You Need A Home Inspection

Clearing Up a Misconception About Assessed Value

If The Price Is Right

Taking Charge of Your Real Estate

Real Estate Terminology

Vancouver 2010 Olympics and Real Estate

An Update On HST And Housing

Call Me When You Find A Great Deal

Ryan Coffey

15December2009

Google Maps Streetview Makes It To Nanaimo

Posted by Ryan Coffey under: Buying; Nanaimo Profile and Events; Real Estate Online; Uncategorized.

For those of you who don’t already know what street view in Google Maps is, it’s a function of the map that allows you to do what the name implies and get a view of the surroundings as you would see them were you to stand in the street.

This morning I was checking the location of a property on Google Maps when I zoomed in really close to verify its proximity to a bus stop, and then I was in street view staring quite clearly at the bus stop.  I knew this feature was coming to Nanaimo, but I didn’t know it had already arrived.

What this means for you as someone who is looking at buying real estate, is that you can preview the neighbourhoods much more easily than before.

Have a look below. I’ve set it so that you’re looking at my office to start but you can go anywhere in Nanaimo by taking the controls. Just go into the window in the bottom right corner, expand it and you can zoom in and out and move the “you” to where ever you’d like to view.

Ryan Coffey

View Larger Map

9December2009

Investing In Real Estate In These Times

Posted by Ryan Coffey under: Nanaimo Real Estate Market; When to Buy and Sell.

I’ll say it yet again as this is becoming my main message to the world about real estate: The only bad time to buy real estate is when you can’t afford it. In terms of markets etc. there are only good times and better times. This is simply because real estate values go up in long term and fluctuate in short term. Sure you can complicate things with lots of stats and etc. but it all boils down to this. Of course, if we’re talking about investing as a profession where we build major projects like condo developments, whole neighbourhoods or substantially altering the use of a location, it does get more complicated. But that’s a deeper discussion for the pros and this blog is more for for homeowners and potential investors who would like to supplement their income with real estate. For such people it’s mainly about whether you can afford it, if the credit is available and how you feel about being a landlord.

Ironically, the way most people perceive real estate markets, thanks to our mainstream media, is backwards. The very best times are almost by definition the times when no one is buying because most people are thinking it’s a bad time to buy. (When do you get a better price on skis? In the early winter or the spring?) I bring this up because the article below mentions how a few months ago no one was buying. Well if  by “a few months ago” they mean February or March, then that was the absolute best time to buy a property that you intend to hold onto for a bit. Prices were still on their way down, interest rates were at record lows and no one knew for sure if we were at the bottom yet so sellers were often willing to take quite low prices because for a while there only about one in six places were selling. Only a few months later now, and it’s different story.

Not that things are  now either. Interest rates are still super low (albeit not quite as low as before) and will be until at least part way through next year, prices are still lower than they were at the peak of the boom (only by a bit now) and although there will always be the alarmists and naysayers out there, most believe that 2010 is going to be one helluva year. I know this fall sure has been and Realtors are usually in stand down mode by now as Christmas approaches, but many of us are still working hard myself included.

You may be asking yourself “If Ryan is telling us that whether or not we can afford to make the payments is the most important thing, then why is he talking so much about what markets are doing?” Well, it’s because although the easiest safest way to invest is to buy a place to hold onto and rent it out while the property’s value increase while the rent does too. That’s the bit that anyone can make use of and understand. This is in fact what I am intending to do over the years myself. However there are ways to make some cash off markets for people who are handy for example. People who have professional experience with renos/building can do really well over a short period of time by flipping properties. But that’s not for most people. Desp[ite my knowledge of things real estate, and my ability to recognize a properly done reno or construction job, I don’t think I should be doingthis because I would probably cost myself money rather than make it. I say this because I’ve seen far too many people who presumably watch a lot of HGTV try it, fail miserably and cost themselves lots of money. That’s always sad to see.

For more info on my thinking on this subject, see my six part series on “When To Buy And Sell”

Here is the article that inspired this post.

I just want to add that if a landlord allows a tenant to live in the rental property for three months even though they haven’t paid the rent, that was the landlord’s doing as much as the tenant’s. In B.C. the landlord can kick them out in 10 days if they haven’t paid.

Ryan Coffey

3December2009

“Call Me When You Find A Great Deal.”

Posted by Ryan Coffey under: Buying.

From the perspective of someone who doesn’t live and breathe real estate, saying the above phrase to your Realtor probably seems like a smart thing to say. I say this because I’ve heard it from some people who I know to be very intelligent and even business savvy.

On its own, it is not however, a good way for a would be client/buyer to get their Realtor to do so.

Why?

Well, quite simply… of course you want a good deal. That goes without saying. I’m sure that every Realtor out there has heard this sort of request a thousand times. As we hear it so often from so many people, and because most people who say this aren’t actually serious or know whats entailed in actually getting those deals, how are we to know which of those many people to go to when we actually find one? After all, we are only paid when we sell something and spending time hunting for deals for people who aren’t serious rather than spending time working with those who are is a great way to go bankrupt.

So, in order for you as a consumer to stand out from the crowd and show up on the Realtor’s radar as a “go to” person for these deals, here are some tips:

Are You Sure This Is The Route For You?

First and foremost, YOU need to understand that “a great deal” that comes your way is probably not going to be a suitable home for you.

Say for example you are a youngish family of four and you have an average income. For you, that $450,000 house that would normally be  $500,000 if it wasn’t for the dramatic divorce that is making the owners sell it just to get rid of it, is not going to be an option for you because you probably can’t afford it. Even if you can, it may not be your tastes, or in the wrong part of town, it may be too old, or too small etc. Or maybe the property is a an old trailer that should be priced at about $90,000 but is price at $70,000 in a 55+ plus park. (For retirees.) Or an empty lot. I could go on because there are so many types of properties out there, and the majority are not suitable homes for any one person or family, therefore neither will the majority of “great deals”.

If it’s a home you want, figure out what you need, want and can afford first. Then go out with your Realtor looking at homes and choose the best one for the best price  based on what’s available. That’s the conventional way and I think it’s a good, tried and true system for finding a good home for you. If you get a home that you like, at a price you’re comfortable with, THAT’S a good deal. It’s no good getting a great deal in a home you can’t enjoy living in.  A happy home is a pretty good deal if you ask me.

Financing

Make sure you’ve already been pre-approved by a mortgage broker and make sure your Realtor knows it. This gives the Realtor a price range to work with so that nobody’s time is wasted by excited phone calls where the Realtor says they have this great deal for you and you have to contact the RIGHT AWAY for places you can’t afford.

The broader the price range the better.

Have A Purpose In Mind

If you have a specific plan for the property, let the Realtor know. Try to be general, otherwise it won’t work. You see, it’s only once every few months a Realtor finds out about a smoking deal before its been jumped on by the others. And that’s including all real estate, without things like price ranges or property types!

An example of what you want to say might be “I’d like a house to rent out.” or “I’d like an older home that I could rent out until the markets rise sufficiently and then renovate and sell.”

Be Ready to Move Fast

Let your Realtor know that you’re ready to make that offer the same day you hear from your Realtor, and have money on hand to pay for deposit etc. A really good deal causes a feeding frenzy until its snatched up, which usually only takes a day or two. You’ll need to move quickly before anyone else finds out about it.

Decide Quickly How Badly You Want It

Be prepared to make offers above asking price if you really want the place. The feeding frenzy often generates multiple offers, which means you’ll be competing with other buyers who are just as eager as you to buy this smoking deal. You just might not get it either, so don’t be too disappointed if someone else outbids you and they get the property.

If the above info hasn’t shaken you off the path of wanting to get a “great deal”, then you sound like someone who is serious about getting into real estate investment and therefore someone I, as a Realtor, look forward to having the chance to do business with. If you have read the above and no longer wish to wait for that “great deal” but still want to buy a home or investment the more conventional way, then you too are just as much someone I look forward to doing business with. And yes, I’m always looking for people who want to sell their homes too!

Ryan Coffey

23November2009

Chickens and Real Estate!

Posted by Ryan Coffey under: Nanaimo Profile and Events; Nanaimo Real Estate Market; Uncategorized.

Wow. That was the most fun I’VE ever had writing a title to a post. I just get a kick out of chickens I guess…

Anyway, I haven’t suddenly lost my mind and started posting nonsense. yes, I’m departing slightly from my usal menu of topics, but there is something about real etsate here.

You see, through my endeavours with the Nanaimo Green Group (a coalition of local eco-oriented businesses I founded) I came into contact with some people who are working to convince the city to pass a bylaw that will allow people to have chicken coups in their backyard. That is, in areas that are within city limits.  A concept new to Nanaimo but not the world at all, I have to say I am totally behind it for all the reasons Robyn lists below and in particular how it gives children the opportunity to better learn respect for their food producing animals. Having grown up on a small hobby farm myself where we had chickens and cows for example, I always felt that those who don’t have this opportunity never seem to think about where their food is coming from and how it is treated. Not because they have cold hearts, but simply because it’s not on their radar. If more people had some concept of how livestock is, can and should be treated/raised, I feel that the animals will be happier and healthier and so will the people eating them.

Read on.

Ryan Coffey

Have you heard the news! Urban gardens are producing delicious fruits, vegetables, nuts and yummy eggs from backyard chickens.  That’s right chickens; they are not just for farms anymore. There is a genuine movement across the country, as people join the urban backyard chicken movement. This is not a unique concept. There are many cities in the Canada and the United States including Victoria BC, Vancouver BC, New York, Portland, San Francisco, Chicago, Seattle, that allow chickens.

Why chickens in your backyard?

Well here are some reasons:

1. Fresh, healthy, delicious eggs, free of pesticides and antibiotics.

2. Chickens eat table scraps, reducing municipal organic waste.

3. Chickens produce a rich fertilizer by-product, high in nitrogen, which in one of the best fertilizers you can find for your vegetable garden.

4. Educational – teaches children where our food comes from and demonstrates responsible pet ownership (chores). Getting back in touch with nature.

5. Great pets – Chickens are people-friendly.

6. Chickens eat bugs, reducing our backyard pest population.

7. Allows families to take control of their food and “eating locally”.

8. It’s a humane way to raise chickens.

Presently in the City of Nanaimo the current bylaw restricts poultry to parcels of land over an acre in size, which excludes most lots within the city.  The Nanaimo Poultry Collective is a local community group formed by individuals who love all things poultry and who desire to be able to legally raise and keep chickens within the city limits, in Nanaimo backyards.

The City of Nanaimo has an intention to promote sustainability. This means making proactive decisions to help people improve their own lives, the lives of their children, and those of future generations. The Nanaimo Poultry Collective (NPC) is slated to go before City Council on November 23rd, 2009 at 7pm in the Shaw Auditorium at the Conference Centre. We will demonstrate the importance of food security and how raising poultry in the City of Nanaimo will fit well with their sustainability goals, as stated in the Official Community Plan.

The NPC meets regularly and are willing to aid in education, providing resources and backyard chicken coop tours.

If you are interested in supporting the change in the bylaw you could do the following:

- Become a member of the NPC by emailing the NPC Secretary, Robyn Quigg, at Quigglet@shaw.ca. Membership is free.

- Join us Monday November 23, 2009 at 7pm.

- Sign petitions found at the Green Store (Port Place) and Island Naturals (Near Home Depot).

20November2009

An Update on HST And Housing

Posted by Ryan Coffey under: Buying; Nanaimo Real Estate Market; Selling.

Regular readers will remember this post where I outlined my concerns about HST and the effect it will have on the housing market, and in particular those people who make a living from building homes.

Today I received an announcement from the local real estate board that updated us on the issue’s development and it seems there has been some improvements made but I am still concerned about the effect it will have on builders in higher priced areas like Vancouver and Victoria as $525,000 isn’t very much for a new home there. Here in Nanaimo though, that’s a pretty nice home, even for a new one.

I am still concerned though that as Realtors, this will mean a 7% increase in what it costs to hire us. This will affect our industry. There are also the high end builders who will now be trying harder than ever to build home that come in under the wire of $525,000.

The announcement in question follows:

Ryan Coffey

HST transitional rules on housing

• Generally, builders’ sales of newly constructed or substantially renovated homes would be subject to the provincial component of the HST where both ownership and possession of the home are transferred after June 2010. Grandparenting would be provided for certain contracts.
• The proposed transitional rules for new housing, including builder reporting and disclosure requirements, would be administered by the CRA.
• Generally, sales of new homes under written agreements of purchase and sale entered into on or before Nov. 18, 2009, would be grandparented, such that these sales would not be subject to the provincial component of the HST and would not be eligible for B.C.’s housing rebates.
• Grandparenting would be provided for newly constructed or substantially renovated single unit homes, including detached homes, semi-detached homes, and attached homes.
• Grandparenting would not apply to traditional apartment buildings, mobile homes (including modular homes) and floating homes, as the general transitional rules would apply differently to those homes. However, these homes may qualify for B.C. housing rebates.