Coastal Life Realty Ltd. : Latest Blog Posts

2011 Residential Sales compared to past years

Thu, 05 Jan 2012 05:40:00 GMT

The following Data deals with Residential Sales on Pender Island.

Overall we see that 2011 shows an approximate 21% increase over 2010 sales. This is good news. Although, sales are still down overall and we do have a lot of inventory listed which means there are some good opportunities out there for those that are looking.

Note that these sales reflect the month the sale went unconditional and all subjects were removed. I feel this is a more accurate date to use when showing monthly real estate activity. October through to December were very low in activity and it’s not the weather, we have had fabulous weather and lots of sunshine.

This graph gives you a more visual approach to looking at the residential sale stats for Pender Island. I think the stats speak for themselves mostly and there is not much more for me to add. Stay tuned for more information on Pender Sales Stats. If you have something you would like me to comment on feel free to email me and make that request.

Please note that on January 17 a correction was made. A December sale was not in the system by January 4th, so I added the one sale to December bringing the total from 40 to 41 for the year and changing the increase in sales to 21% instead of 18% over 2010.

I have sold a property at GI Pender Island, Gulf Islands

Sat, 31 Dec 2011 10:04:42 GMT

I have sold a property at GI Pender Island, Gulf Islands.

See details here

Exceptional Ocean Views. Lovely Island home featuring 3 bedrooms, 2.5 baths, formal dining area, den and more. Enjoy spectacular southwest views over Swanson Channel and beyond from many principal rooms and the spacious deck. Spend evenings cuddled up in front of the wood burning fireplace. Oversized garage/workshop is the handy man's dream. Truly unique setting and topography awaits your enjoyment.

High Hydro bills?

Fri, 30 Dec 2011 20:53:27 GMT

It is that time of year where expenses can be high. You might have racked up some bills over Christmas or perhaps you have reduced hours at work and are just on a tighter budget in general.

With the winter comes higher heating costs and there are a few suggestions I can offer that may help.

1) Call BC Hydro and ask them to put you on the equal payment plan. With this program they look at the hydro costs for your property over the last year, they break that down into a monthly payment and at the end of the year you either pay the difference or are credited the difference. This is a great way to know exactly what your hydro expense will be every month. The average hydro bill for most homes is around $120/month give or take depending on the size and energy efficiency of the home. Paying $120/month beats paying a $600 bill for January and February.

2) Consider installing programmable thermostats so you can be sure to keep your temperature down at night while sleeping or while away from the house. If you are renting your landlord may be willing to invest in this upgrade to the house.

3) If you are not able to upgrade your windows then you can buy kits which cover them in plastic to assist in being more energy efficient. As a tenant you may want to consider doing this to help reduce your heating costs for older homes.

If you are a homeowner there are many energy efficient upgrades that you can make to your home and perhaps it needs to be gradual rather than incurring the cost all at once.

We have no natural gas on Pender so many homes are heated with baseboard heating. Some have electric furnaces or heat pumps and there are a few that use oil or propane.

PropertyTax Deferment

Thu, 22 Dec 2011 21:40:00 GMT

We have heard over that last few years of many families and individuals enduring financial hardship. Unfortunately, there are people who are facing losing their homes.

I have mixed feelings about the Property Tax Deferment Program in BC. I want to be clear that these are suggestions below are to help you think through your situation. None of these comments are in any way a substitute for professional financial advice. An accountant or financial advisor has the real expertise to assist you.

I think if you are desperate and in need of some breathing room temporarily tax deferment might be an option you want to consider. The program allows you to defer paying your property taxes until you sell your house. It is a form of low interest loan.

There are programs for families with children as well as a different program for those that are 55 years old and over, a surviving spouse or for those with disabilities. Each program requires you to have 15%-25% in equity available for your property.

Find out the details at this web site:

http://www.sbr.gov.bc.ca/individuals/property_taxes/property_tax_deferment/ptd.htm

When you sell the property you will need to pay your outstanding debts including the tax deferment loan and any mortgages on the property so the higher the debts the less money in your pocket. This does make it very difficult at the time of Selling. Sellers quite often will think about the money they need to get out of the transaction, where the Buyer is only concerned with current market value and the debts of the Seller are not relevant to the transaction. Unlike a mortgage, unless you create a payment plan, your tax deferment loan will not decrease, it only increases.

If you are mortgage free and living on a low pension then I can see the benefit to seniors late in their lives. The few extra thousand a year in available income can make a huge difference. If the home will likely be sold as a part of their estate, at which time the loan can be paid in full, it really bears no financial burden to that individual while they are living.

For young families I see different options. Young families are at the start of their life and although the deferment of taxes can be tempting or a form of short term relief, overall it is not likely to make a huge difference to the overall financial situation for the family. Many compounded years built up may create a larger burden to the family's financial stability.

Starting a family can be a definite financial shift for many people. I know from personal experience how difficult it can be. A couple without children have no idea the luxury they have in their spending. You may dine out frequently, take regular vacations, buy extravagant gifts etc. When you have a child your income is drastically and suddenly reduced. If you are on maternity leave/parental benefits for a year, you only have a portion of your regular income. To compound on that your expenses have drastically increased to care for your child. You have added expenses of clothes, toys, diapers etc. You are likely to become reliant on the income of one individual and if that family member loses their job things crumble quickly. When one family member decides to stay home with the child beyond the year where your family can receive parental benefits then your finances are drastically cut again and the dependence on that one income is even more so.

If there is a young family who is under financial stress and looking at the tax deferment program I would suggest speaking to an accountant or if that is not possible seeking the financial opinion of those you respect around you, people that have successfully conducted and planned their finances.

Other options a young family may want to consider:

Downsizing

Selling your current home and finding a smaller home that meets your current needs. One that will allow for lower mortgage payments, heating costs and taxes. As you gain equity and financial stability you can either upgrade again in the future or use this new home as an investment home and rent it out while you purchase your new dream home.

Having a mortgage helper

If you have the option of creating a suite in your home or buying a home that can accommodate a suite, this added revenue maybe a huge financial help for you. Depending on your current rates $500 of rent can offset about $100,000.00 of your mortgage. If you have a suite that you can rent for $800/month this may be all you need to get back on your feet. If you are buying a new home maybe you want to consider buying a home where you can use the suite in the beginning and as your family expands and your financial stability is created you can eliminate the suite and add more living space for your family. This can be a great option for single people starting their life as well. This can be cheaper than renting. Please research the vacancy rate in your area.

Different area

If downsizing or having a mortgage helper does not appeal to you then another option you may consider is moving to community where the real estate is less expensive. It may mean a longer commute for anyone working in your family or it may mean a change of jobs. Only you can know what the best option is for your family.

Other cut backs

So downsizing, having a mortgage helper and moving does not appeal to you...then you may want to consider all the other areas in your budget you can cut back or eliminate costs. I do want to emphasise eliminate costs and not defer costs to a future date. Deferment of expenses can be a way of balancing your finances for the short the term but if they are costs that you will absorb one day then you are deferring them and they can eventually catch up to you.

The point of this blog was to make you aware of the tax deferment program offered in BC but it was also to give you food for thought for other options you may want to consider. In any case you will want to contemplate the short term and long term benefits and downfalls of each option.

Pender in December

Tue, 13 Dec 2011 22:12:00 GMT

So what is Pender like in December? Actually, the Fall and Winter are my favourite times of year. The temerature is quite mild here. This picture was taken on Friday, December 9, 2011 at approximately 5 pm.

This photo was taken on the Port Washington Dock.

It was about 2 or 3 degrees Celsius.

We don't get a lot of snow in the Winter. If we do get snow it may be here for up to about three days and then usually it all melts away. More often than not we do not have a White Christmas. I guess it is always special to have that winter wonderland to top off the holidays. It's quite magical to have it snow on Christmas Day. On the downside plans get altered and sometimes the power will go out if heavy snow brings down branches and trees on the power lines.

The benefit of having no snow is that it can be a beautiful sunny day where you can take a walk through the trails or go to the beach and may only need a light jacket.

The Christmas Holidays can be different when you live on Pender. If you are the host or hostess then chances are you will have house guests for a few days. Pender is really not a day trip so most guests will stay with you for a few days. You are no longer planning a dinner but more like a weekend. You will share your meals together but there should be lots of helping hands too. Your guests will enjoy daily walks, enjoying the fresh air and the options of visiting a different beach every day; you could easily visit three new beaches a day. Many times we have a table with a large puzzle going where anyone can take a try at it. At times we will have a hoot playing group games like Catch Phrase, Gestures, Skip-bo or Yhatzee, some will chose games for two like backgammon or crib. Then there is always the guest that enjoys cuddling up in front of the fire with a good book or their Kindle. You may see the cell phones come out less and less as time goes on and your guests acclimatize to "Island Time".

Depending on where your guests are coming from sometimes the ocean air causes them to get very hungry and need lots of sleep in the first 24 hours, lol. Many guests will say it is the best sleep they every had with no outside lights, no sirens etc. Having no sound and no light is a different experience all together.

For us this year is the first time we are staying home on Pender and not having guests for Christmas. It will be our first low key Christmas.

Whatever your Holidays looks like this year, I hope they are enjoyable.