How to Maximize your Down Payment for your First Home

• Make a $19.2k RRSP contribution just three months in advance of buying a home…
• …assuming a 30% tax rate, deposit $6k tax refund back into RRSP…
• …then withdraw $25k maximum under HomeBuyers’ Plan following increased limit in
2008…
• …to be repaid to the RRSP in equal installments over 15 years with no interest penalty and the payments are not counted in mortgage serviceability calculations…
• …at, say, a 4% rate of interest, this equals $8k in interest savings over 15yrs…
• …which means the initial $19.2k RRSP deposit has been parlayed into an effective down payment of about $33k, or an extra 70%+
• No restrictions on the source of the original RRSP deposit (can borrow for it, ‘gift’, etc).
• ie: the zero-down mortgage can still theoretically exist but most don’t structure it like this.
• If a couple, and both are first time home buyers, double all of the math above (ie: turn $38k from liberally allowed sources into a $65k down payment)
No warranties, please consult your accountant regarding current legislation. Only applicable for first time buyers.

 

Kamloops Commercial Real Estate

Kamloops commercial real estate is thought by many as one of the best investments you can make.  Unlike residential properties commercial real estate serves really only one purpose, makes money.

In commercial real estate prices are usually determined by CAP rate.  The cap rate is a measure of the income of the property after fixed costs like taxes, management, and common yearly maintenance are taken out. The lower the CAP rate usually means the more likely it is that the investment is risk free.  For example, for mobile home parks where there are many income streams (renters) and relatively low risk of non payment (at least in theory) and steady income through out the year, it is not uncommon for properties like this to fetch 6% cap rate.  Where as for self storage business the cap rate is usually a little higher do to the more risk involved.  For example in self storage businesses there usually more employees, more client turnover, and more seasonal type income, so the cap rate for this type of business is usually around 8%-10%.  For business like u-haul it classified as a retail property and there for it usually at a 12% rate.

Going forward, what is great about owning commercial real estate is lower mortgage rates get the better the CAP rate you could potentially command.

If you are looking for a Kamlooops commercial real estate for sale.

Sun Peaks Resort to get a New Hospital?

For those of you with limited knowledge of Sun Peaks resort you may not know that there is a Health centre there right now that is manned during the winter on limited hours after the ski day is done. It services lots of local employees and a few unlucky visitors. The visitors that get mildly banged up during the course of a day of sking or snowboarding.

Sun Peaks became a municipality about 2 years ago and right now there is talk about building a 3 million dollar facility that will eventually house a more substantial health centre.  In the mean time there is talk of relocating municipal offices to this new building.

In my opinion, I am not sure if Sun Peaks is ready for this kind of an investment.  Currently there is a fair share of empty commercial space in Sun Peaks as the resort has been predominately a one season resort. Recently that has started to really turn the corner and Summer attendance has started to drastically improve.  I am sure it helps to hold great free concerts through out the summer like Sun Peaks has done in the last two years!

Based on my knowledge of the Sun Peaks, from being a resident there and selling real estate there for the past 5 years I think the Resort and the Municipality would do very well to consider putting in a West Morrisey Chair lift instead of proposed future health centre.   There is two main reasons they should consider this option:

  1. Sun Peaks has been know as a family friendly resort with lots of beginner and intermediate runs.  The west morrisey terrain has some of the best snow conditions and steepest terrain on the mountain.  Opening this area up will no doubt make Sun Peaks more attractive for ski enthusiasts looking for gnarly terrain.
  2. Adding this chair would make Sun Peaks as whole a true ski in/out Resort and they could advertise it as such! Locals and visitors alike seek out the convenience of ski in/out locations.  By adding the west morriesy chair lift it will increase the cities revenue from nightly rentals and property taxes from the real estate around that area.  Currently there are lots of lots for sale in that area that I am sure the city would love to see developed! If a chair would go in there would be a lot more demand for this location that already features some of the best views on the mountain.

I would love to see Sun Peaks really take off because I think it has lots to offer to anyone seeking a special place to call home. What Sun Peaks decides to do in the near future will have an impact on just how fast Sun Peaks develops.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.

Kamloops Sahali Condo – Highlighting Summit Place

If you are considering buying a condo in the Kamloops area for an investment or your primary residence you are not alone.  Because of the relative low maintenance and healthy demand for rentals condos make a lot of sense.

Summit Place is located at 1810 summit drive and offers some great features that are hard to find in other comparable properties.  This is an older complex but a well maintained one. Summit Place has one of the largest common properties available in sought after area of Sahali. Because of all this space developers have present offers to purchase land from this complex.  Aside from this obvious positive, the units themselves all have great views and above average storage space.  To the point where all of the units have room for in unit laundry.  There is a great hiking park close by that allows you access the downtown core.  It is not surprising that investors looking to invest in multiple rental units have bought up properties in this complex.

Summit Place Kamloops BC, 1810 summit drive

Kamloops BC Condos for Sale

If you are considering buying or selling a condo in Kamloops contact me today!  Make an informed decision and get the results you want.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.

Kamloops Senior Living – Downtown – Downsizing

Kamloops over the years has grown to become an affordable place where seniors have gone to retire. This trend is probably due to Kamloops’ warm climate, great geographical location, and friendly atmosphere.

One of the areas that has always been in demand is real estate in downtown Kamloops. This in large part because the amenities that the downtown provides its residences, with major shopping centres and mom and pop shops alike.  During the summers there is free evening concerts in a parking walking distance the downtown core.  There is also a farmer’s market that offers some of the highest quality locally grown fruits and vegetables.

One of the popular choices for downtown senior living is Desert Gardens.  This apartment complex has always been a popular choice in large part because it offers residents easy access to a community centre that is located in the same building. This unique feature makes it easy to socialize with other senior citizens, through fun games, workshops, and community events.  To join this community centre only takes a small $15 annual fee and there are over 100 members.  If you are interested in looking at what is currently offered for sale in Desert Gardens fell free to contact me.

Desert Gardens Community Events BoardDesert GardensDesert Gardens Kamloops Real estate

Stats on Single Family Homes in Kamloops Over the Years

Kamloops Real Estate Statistics

This is a graph showing the relationship of list price to sell price of homes in Kamloops over the years as well as the average house values. The data is collected from local real estate companies and local real estate agents and processed by our local real estate association through mls realtor data. This graph represents residential real estate in Kamloops.

If you or someone you know is looking to buy or sell real estate in Kamloops please feel free to contact Andrew Thompson from Century 21 for detailed information about the real estate market.

Crystal Forest, Sun Peaks BC Highlighted Townhouse Complex

If you have ever ventured to Sun Peaks BC. Crystal Forest is one of the most recognizable complexes in the village, it has a distinctively European Alps style.  It is located centrally, just a short walk to the village and restaurants and shops and the outdoor skating rink and recreational centers.

Sun Peaks, Crystal Forest Townhouse For Sale

Crystal Forest is zoned for tourism accommodation which means it is ideal for the buyers looking for a recreational property to rent out on a nightly bases. You can rent out units on your own, utilizing online websites like allura direct, and hire a cleaning service make sure the units are nice and clean or hire a full service management company to take care of all the details. With the nightly rental revenue you can cover some of the costs of ownership.  Typically your expectation should be to cover operating costs, like strata fees and taxes with full service management of nightly rental revenue. Owning real estate in Sun Peaks is very much a lifestyle choice more so than a money generating venture.

One thing to be aware of is GST liability. In tourism accommodation zoned properties it is typical for buyers to differ the GST on properties so that they can claim back GST costs associated with running the property as a nightly rental property.  This includes differing management fees that are GST applicable.  For more details about GST liability your best bet would be to contact a creditable accountant to help you get the information you need to determine whether differing GST makes sense for you.

For more information about Sun Peaks Real estate please feel free to contact me.  If you are thinking of selling I provide free consultations, and cutting edge marketing solutions so you that you can make an informed decision and get the best results. For those of you thinking of buying in this market it always helps to get great advise and learn from an expert. Please feel free to contact me today!

Ask A Real Estate Expert: What affect has the proposed mine had on Kamloops Real Estate?

The proposed AJAX is a hot topic in Kamloops. Everyone in town knows about it and everyone moving to town does too. On one side there are high paying jobs and an influx of tax dollars that could go towards better infrastructure and social programs for the city and on the other side there are legitimate environmental concerns. The project is currently going through a BC environmental review process.  I get asked a lot about what affect the proposed AJAX mine has had on the current real estate market. So I took a look at the sales of areas of Kamloops that would potentially be affected the most, areas closest to the proposed mine operation, Aberdeen and Pineview Valley. Looking at the sales figures for these areas over the last five years. You can see despite the increase in public awareness of the proposed mine there has been no noticeable decrease in sales for these areas. In terms of sale prices there is still a noticeable premium for houses in these areas.  For example, the average new home construction price of an Aberdeen home is about $40-$60k more than comparable new homes in Bachelor Heights and Juniper heights. What is also interesting is the Kamloops market is hot right now.  There are only limited number of lots available but there are no lots available in Aberdeen.  They are sold out. Why aren’t sales and land values decreasing with all this talk about the proposed mine? There can be a number of different reasons, but when it comes buying homes we have all heard location is really important. I have had clients tell me they would love to live in the country, have more land and enjoy the fresh air out there. But most don’t want to live far from their work, favourite grocery store and other amenities.

There seems to be a trend where desirable aspects of an area such as proximity to work, amenities and quality of schools can outweigh potential challenges associated with industrial and commercial realities. At least they have in the past.

Kamloops has been referred to as a working town in the interior of BC. Because it is constantly compared with more tourism friendly cities like Vernon and Kelowna which have geographically advantages that Kamloops just doesn’t have.

Red Lake, Kamloops BC – Get to know one of Kamloops’ most affordable Acreage Areas

Red Lake is an area well known for some great fishing and hunting areas.  The area resides in a naturally wooded area that provides excellent cover from winds customary in some of the other areas of Kamloops. What is also great about Red Lake is it resides at a slightly higher elevation and as a result is usually a few degrees cooler than valley temperatures.  Aside from that there are some great hiking trails that lead to some really nice water holes where someone can enjoy the beautiful natural surroundings.

One of the main reasons why this area is so affordable is that there is a year round dirt road access, that is a blast when you are into driving 4X4.  To get a better idea of what the area is like feel free to take a look at this sample video of the road leading to the Red Lake area:

Great Kamloops Acreage Area (Sunny side of Pritchard)

Kamloops is known for it is dry climate and great location so it is not surprising that this area is in demand for people looking to live on an acreage.  One of the nicest areas in the Kamloops area is what I like to call the sunny side of pritchard.  This area includes the well known area that includes shuswap road as well as a less known area that is just minutes from the old pritchard convenient store.

Shuswap road has some of the most expensive acreages around Kamloops in large part all the acreages are generally with in about 20 minutes for Kamloops and because it is along the valley which gives them a long dry conditions most of the year.  These acreages are also along the river which allows some of them to have river docks.

The less known area of this area is just minutes from the Pritchard convenient store and about 30 minutes from Kamloops.  What is great about this area is there is plenty of water, hydo and great views and usable land. The road in is not paved but it is maintained year round and offers easy access.

Kamloops acreage for saleKamloops acreage for sale in pritchard

This area has some of the most beautiful views around Kamloops.  If you are looking to buy or sell in the Kamloops area then contact me for the latest information that is important to your particular needs. I can help you to make informed decisions while keeping all your information confidential. Andrew Thompson cell: 250 320 0154; office: 250 377 3030.  I am a Kamloops real estate agent, or Kamloops Realtor and would like to learn about your real estate needs.