Sunday, May 31, 2009

Real Estate Stats for Metro Vancouver - Updated June 2009

Since June of last year, which the National Bank Composite House Price Index pegs as the peak of Vancouver's market, the housing prices have declined almost 12 per cent.

Between January and March, Vancouver home prices fell 6.4 per cent, with March being the ninth consecutive month of decline on the National Bank Composite House Price Index.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,963 in April 2009, a decline of eight per cent from the 3,218 sales recorded in April 2008, and an increase of 31 per cent compared to last month.

Sales of detached properties declined eight per cent to 1,190 from the 1,293 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties declined 12.2 per cent from April 2008 to $675,268.

Sales of apartment properties in April 2009 declined 10.5 per cent to 1,179, compared to 1,317 sales in April 2008. The benchmark price of an apartment property declined 12.6 per cent from April 2008 to $340,203.

Attached property sales in April 2009 are down 2.3 per cent to 594, compared with the 608 sales in April 2008. The benchmark price of an attached unit decreased 9.7 per cent between April 2008 and 2009 to $431,759.

Bright spots in Greater Vancouver in April 2009 compared to April 2008:

Detached:

Vancouver West

- up 59.5 per cent (193 units sold from 121)




Attached:

Port Coquitlam

- up 69.6 per cent (39 units sold from 23)


Richmond

- up 17.9 per cent (132 units sold from 112)


Vancouver West

- up 46.3 per cent (98 units sold from 67)




Apartments:

North Vancouver

- up 29.2 per cent (84 units sold from 65)

Pets or No Pets in your Rental Property?

I love dogs and cats. But are they good for your Rental Property?

Pets CAN cause damages up to the tens of thousands. They can scrape the walls, the doors, and the cabinets, clawing all the veneer off. The carpet can be severely scratched and left with holes. If you want to allow pets in your rental homes, it is advisable that you increase the monthly rent because the government-regulated Tenancy Board will only allow you to collect half a month's rent for Pet Damage Deposit.

Be aware that if you allows pets and damages are done, it is often VERY difficult to collect money to do the necessary repairs. At worst, you may be faced with a complete renovation.

If your rental unit is old and the carpets and walls are already worn, you could consider now allowing pets into your property because you know that in time, you will be replacing them anyways. If you allow pets, your unit can be easier to rent because of the lack of supply for pet-friendly properties.

Great Questions to Ask When Screening Potential Viewers Over the Phone

Below are some questions we use when screening viewers over the phone. When we ask questions, we make them feel comfortable in telling us these answers. We want to sound welcoming, not confrontational or argumentative.

1) When are you looking to move in?

(If you're looking to rent your place out at the end of month, but they want to move in on the 15th, then you know they are shopping around. You can do a showing for them but those who want to occupy the place sooner gets priority scheduling. In other words, you will be more flexible and show to those who want to occupy for the 30th. And you will call those who want the place for the 15th once something has been set.)

(Now, if today is already the 20th and they want to move in on the 30th. It is important to ask, "So why are you moving so close to the end of the month?" Sometimes, it could be they are being evicted, in which case, they will not make good tenants. Hear their reasoning and judge accordingly.)

2) How many places have you looked at already?
(I tend like to show my places to those who have had a chance to look around. I have found that if your property is one of the first fews they are looking at, they most likely will not take it. People usually make their decision after they've seen 5-6 properties, minimum. And the likelihood of them remembering yours is slim to none. So if they tell you this is the first property they are checking out, tell them you won't be doing a showing until 2 weeks later.)

3) What is your budget for rent?

4) Who will be occupying the place?
(This is to gage how many people will be living there and if they have children, etc. I personally prefer families and adult couples, as their lives tend to be more stable and won't move around as much.)

5) What is it that you and your (spouse/roommate/etc.) do for a living?
(Find out where they work because you can judge from the proximity of their workplace to your property, how likely they will become your tenants. If they don't have a job, ask them when they're planning on getting one and what was the last job they had.)

6) How many pets do you have? or What kind of dog do you have?
(Note that you ask "HOW MANY.." and not "DO YOU HAVE any pets?". These are trick questions because tenants will pretend that they have no pets if they know you don't accept pets. Now if you do accept pets, then you can proceed to ask them "What breed...".)

7) What do you smoke? or What brand is your smoke?

8) Have you ever been evicted?

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After they've answered all of your questions, you will decide to either book them for a viewing according to a mutually beneficial time or let them know that you will call them back with a viewing date and time.

When you have booked a time, make sure you ask them to call you one hour before showing time to CONFIRM that they can still make it. Tell them that if you don't receive a call from them, then you will assume that they are no longer interested. You can also call THEM half an hour before the appointment time or BEFORE you leave for the showing to confirm if YOU haven't heard from them. We usually do this because sometimes they forget to call.

However, you must remember this: if their phone is OFF or on VOICEMAIL when you call them, then they are NOT SERIOUS. And if they really did forget, then they will call you to reschedule.

Last bid of TIPS:
  • Always book as many people for the same time to give them a sense of urgency.
  • Always call them half an hour before the scheduled appointment time to confirm.
  • Be careful not to discriminate against anyone. Everyone is allowed to see the place. If an undesirable viewer happens to call on you to follow-up and you do not wish to rent to them, simply tell them that "The place has been rented out." If they call back 2 weeks later, seeing that you have re-posted your ad and they ask, "Why didn't you rent it to me?", simply declare, "We had rented it to someone but in the end, it didn't come through. If you are interested, you can come for another viewing and fill out another application form." He/She will say, "But I already filled one out." "Yes. However, we've disgarded all the applications from previous viewings because we thought we had completed the rental process. If you are still interested, please come in again and fill out a new application form."
JUST REMEMBER THIS:
If you break your own rules, you will end up wasting your time!!!


Good luck renting! =)

Monday, May 4, 2009

The Devaluing of the American Dollar

Nothing direct to do with Real Estate Investing here. But we thought this would be interesting to share...

Glenn Beck from Fox News shows us how much debt the US is in and how much money the Federal Reserve has printed... Watch the entertaining Inconvenient Debt, a play on Al Gore's Inconvenient Truth by Glenn.

Most people blame the American government on this outrageous printing of money. However, few understand that America's banking system has nothing to do with the American government. This devaluation of the American Dollar is controlled by the Federal Reserve or the Central Bank of America. Here, these journalists from Headline News explain.

Some call this whole fiasco a conspiracy theory. Watch this theory elaborated in my favourite documentary (and this is only ONE part of the movie) - Zeitgeist.

Where Is Our Economy Headed?

If you are curious about where the economy is headed according to the economist who predicted the bubble/crash, you might enjoy this video clip:

http://www.ft.com/cms/1644d08e-f450-11dc-aaad-0000779fd2ac.html?_i_referralObject=1084529301&fromSearch=n