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Olena Osipov REALTOR® - Maple Ridge Real Estate

It's tax time again... TD Waterhouse offers 20% off when you purchase Quick Tax.

Over the next month or so you are going to be receiving the necessary documents required to complete your tax returns. For those of you who choose to complete your tax returns on your own I wanted to provide you with the link to TD Waterhouse website that will provide you with a 20% discount on Quick Tax Software. Click on the link or logo below.

Quick Tax Coupon

http://www.tdwaterhouse.ca/

Once you have accessed the site, please scroll down to "Taxes Made Easy. Taxes Done Right." Click and follow the instructions.

Sunny Winter Saturday in West Vancouver in Pictures

View of West Vancouver from the Ambleside Park

West Vancouver

Lions Gate Bridge and Vancouver's Downtown

Lions Gate Bridge Vancouver

This is why I love Vancouver's Winter

Beach Soccer Vancouver

Lions Gate Bridge Vancouver

The Birds

Birds

English Bay

English Bay

The Cuttest Home Depot I've Ever Seen

Home Depot in West Vancouver

British Properties, West Vancouver

British Properties, West Vancouver

Vancouver at Night

Vancouver at Night

Another Reason to Love Vancouver

Winter in Vancouver

I'm very happy to be Vancouverian, British Columbian and Canadian. Can you blame me?!

Maple Ridge Real Estate Blog

Should I Buy Now or Buy 1 Year Later in Vancouver, BC, Mrs. REALTOR®?

Rent Vs. Buy Scenario for 1st Time Home Buyers

Typical cost to RENT 1 Bed/ 1 Bath, 600 sq.feet Apartment*:

Vancouver $1300

Burnaby/Coquitlam/Port Coquitlam/Port Moody $950

Pitt Meadows/Maple Ridge $900

Langley $850

Surrey $800

Richmond/White Rock $950

*These costs are just average and might be higher or lower depending on various factors.

What you can BUY for $230,000

Vancouver

Vancouver Condo

1 Bed/1 Bath 582 sq.ft.

Burnaby

Burnaby Condo

1 Bed/1 Bath 783 sq.ft.

White Rock

White Rock Condo

2 Bed/2 Bath 1,136 sq.ft.

Maple Ridge

Maple Ridge Condo

2 Bed/2 Bath 1,098 sq.ft.

Scenario #1-BUY NOW

Purchase Price: $230,000

Minimum 5% Down Payment: $11,500

CMHC Fee: $6,008

Property Purchase Transfer Tax: $0*

Closing Costs: $0*

Mortgage Amount:$224,508 ($230,000-$11,500(down payment)+$6,008(CMHC fee))

Mortgage Payments at current 5 year term rate of 4.39%, 30 year amortization: $1,117.68

*some conditions apply

Amortization Schedule

Mortgage Amount:

$224508.00

Payments Displayed:

1 - 60

Interest Rate:

4.390%

Payment Frequency:

Monthly

Initial Amortization Period:

30 Years, 0 Months

Initial Payment:

$1117.68


Period

Total Paid

Interest

Principal

Balance

Year 1

1 - 12

$13412.16

$9693.39

$3718.77

$220789.23

Year 2

13 - 24

$13412.16

$9528.35

$3883.81

$216905.42

Year 3

25 - 36

$13412.16

$9355.96

$4056.20

$212849.22

Year 4

37 - 48

$13412.16

$9175.94

$4236.22

$208613.00

Year 5

49 - 60

$13412.16

$8987.93

$4424.23

$204188.77

Totals:

$67060.80

$46741.57

$20319.23

Comparison #1

After 5 years (based on renting in Vancouver for $1,300)

Money Thrown Away

Created Equity

Rent + yearly 3.7% increase

$80,886

$0

Home Ownership

$0

$20,319.23

Many will argue that you waste your money on interest. Assuming this point of view, you're still better off owning than renting because if you ever want to have your own home you'll buy one day and start paying interest anyways.

Comparison #2

Let's call interest payments "Money Thrown Away"

"Money Thrown Away"

Created Equity

Rent + yearly 3.7% increase

$80,886

$0

Home Ownership

$46,742

$20,319.23

Scenario #2-BUY LATER

"I wait another year for prices to drop another projected 10% (nobody has a crystal ball)."

More likely interest rates will not stay the same and let's assume 5 year fixed goes up to 6.5%.

New Purchase Price: $207,000

Minimum 5% Down Payment: $10,350

CMHC Fee: $5,407

Property Purchase Transfer Tax: $0*

Closing Costs: $0*

Mortgage Amount: $202,057 ($207,000-$10,350(down payment)+$5,407(CMHC fee))

Mortgage Payments at current 5 year term rate of 6.5%, 30 year amortization: $1,353.43

*some conditions apply

Mortgage Amount:

$202057.00

Payments Displayed:

1 - 60

Interest Rate:

6.500%

Payment Frequency:

Monthly

Initial Amortization Period:

25 Years, 0 Months

Initial Payment:

$1353.43


Period

Total Paid

Interest

Principal

Balance

Year 1

1 - 12

$16241.16

$12861.08

$3380.08

$198676.92

Year 2

13 - 24

$16241.16

$12637.81

$3603.35

$195073.57

Year 3

25 - 36

$16241.16

$12399.81

$3841.35

$191232.22

Year 4

37 - 48

$16241.16

$12146.08

$4095.08

$187137.14

Year 5

49 - 60

$16241.16

$11875.55

$4365.61

$182771.53

Totals:

$81205.80

$61920.33

$19285.47

Comparison #1

After 5 years (based on renting in Vancouver for $1,300)

Money Thrown Away

Created Equity

Rent + yearly 3.7% increase

$80,886

$0

Home Ownership

$0

$19,285

Many will argue that you waste your money on interest. Assuming this point of view, you're still better off owning than renting because if you ever want to have your own home you'll buy one day and start paying interest anyways.

Comparison #2

Let's call interest payments "Money Thrown Away"

"Money Thrown Away"

Created Equity

Rent + yearly 3.7% increase

$80,886

$0

Home Ownership

$61,920

$19,285

BUY NOW VS. BUY 1 YEAR LATER ANALYSIS1

Scenario #1:

Buy Now

Scenario #2:

Buy 1 Year Later

(10% price drop assumption)

Gain(+)/Loss(-)

Purchase price

$230,000

$207,000

+$23,000

Mortgage Payments (over 5 year term)2

$67,061

$81,206

-$14,145

CMHC fee

$6,008

$5,407

+$601

Rent Pmts (during 1st year)3

$0

$15,600

-$15,600

Rent Pmts Increase (Max 3.7%)4

$0

$577.200

-$577.200

Total Cost to Buy

$303,069

$309,790.20

-$6721.20

1-This is a Buy Now vs. Buy 1 Year Later Scenario with assumption of 10% price drop. It's not Buy vs. Rent Analysis. It doesn't take into consideration expenses like property taxes, utilities, closing costs etc. Because it compares Buy Now vs. Buy Later options rather than Buy vs. Rent!

2-Interest rate shown is fixed 5 year term rate at 4.39% currently and assumption of 6.5% in future.

3-You still incur rent payments during the year you're waiting for prices to drop more. If you buy now you start paying mortgage payments now which you have to start paying eventually anyways if homeownership is in your plans.

4-Currently allowable maximum rent increase in BC is 3.7%

Conclusion: In particular example your savings (loss) amount to -$6,721.20 assuming interest rate will be 6.5% if you wait another 10.5 months for a projected 10% price drop.Nobody knows what interest rates will be like in a year or how much more prices will drop. Nobody has a crystal ball. I have worked through this scenario to show how much expected price drop will affect your savings. Just remember, interest rates are historically low right now to stimulate and increase consumer's confidence. Once economy stabilizes interest rates will go up and on average they have been around 6.5% in previous years and much higher before.

It's up to you what you do with this information. My job is to inform the public, your job is to make a decision. Happy decision making!

In my future blog post, I will work through the scenarios of getting a mortgage at a variable rate, currently 3.8%, and buying a house with a mortgage helper.

Maple Ridge Real Estate Blog

First Time Home Buyers Seminar-Feb 16, 2009, Maple Ridge BC

Just another reminder about the First Time Home Buyer Seminar we'll be holding on Monday, Feb 16th at the Maple Ridge Library from 6:30 to 8:30PM. REALTOR, Mortgage Specialist, Home Inspector and NotaryPublic to answer all your questions at one place! Come and join us! Tons of useful information, door prizes, donuts and refreshments! Register today by phone 778.991.3293 or email olena.osipov@remax.net.

First Time Buyer Vancouver

Maple Ridge Real Estate Blog

2008 Housing Activity Report for Cottonwood, Maple Ridge, BC

Maple Ridge Realtor

2008 Sales Activity For the Community Area of Cottonwood, Maple Ridge, BC

Listings summarized in the following table are based on information from the Greater Vancouver MLSLink Residential. Properties sold were not all listed by RE/MAX ridge-meadows realty and were listed by various MLS participating offices.

ATTACHED (Homes)

Price Range $

Properties

Sold(#)

Average List Price($)

Average Sale Price($)

Sales Success Ratio(%)

Average Size

(sq.feet)

Average Beds/Baths

(#)

Average Days on Market(#)

0-300,000

0

0

0

0

0

0

0

300,000-350,000

1

329,000

329,000

100

1,450

2/2

10

350,000-400,000

7

390,128

384,071

98

1,787

3/1

55

400,000-450,000

13

427,053

419,115

98

2,008

3/2

89

450,000-475,000

7

470,300

463,557

98

2,689

3/3

119

475,000-500,000

17

496,205

489,347

98

2,873

3/3

115

500,000-525,000

18

517,447

515,391

99

2.773

4/3

137

525,000-550,000

20

551,044

539,660

98

3,049

4/3

45

550,000-575,000

10

572,320

556,880

97

3,127

4/3

57

575,000-600,000

8

590,899

586,737

99

3,327

5/3

63

600,000-625,000

5

625,740

615,080

98

2,961

4/3

49

625,000-650,000

4

657,150

638,487

97

3,579

4/3

22

650,000-700,000

1

749,000

700,000

93

2,539

3/2

44

700,000-800,000

2

754,000

725,000

96

3,692

4/3

37

DETACHED (Townhomes)

0-250,000

0

0

0

0

0

0

0

200,000-250,000

2

238,700

230,000

97

1,029

2/1

105

250,000-275,000

15

271,865

265,300

98

1,197

2/1

27

275,000-300,000

13

293,288

286,038

98

1,370

3/2

58

300,000-325,000

19

316,942

312,305

99

1,436

3/2

27

325,000-350,000

21

337,218

333,209

99

1,436

3/2

39

350,000-375,000

6

371,733

363,983

98

2,035

3/3

46

375,000-400,000

20

394,192

389,802

99

2,096

2/3

35

400,000-425,000

14

413,692

410,428

99

2,167

3/3

63

425,000-450,000

5

437,900

435, 760

99

2,284

3/3

34

450,000-500,000

1

467,800

460,000

99

3,005

4/4

42

The accuracy of information in this report is dependent on above mentioned MLS system for periods specified and cannot be guaranteed. Some listings may have been marketed previously under a different listing agreement (these are not reflected in days on market). If your property is currently listed with another real estate broker this communication is not a solicitation of the listing.

Maple Ridge Realtor

Maple Ridge Real Estate Blog