Shannon Bashir

Are you planning a move, do you know where you want to live?

There are so many interesting neighbourhoods in the Greater Vancouver area that it’s almost impossible to know them all. Inside those neighbourhoods, it’s very possible to find those “hidden pockets”, but you may need to do some footwork.

If you are limiting your search to a specific area or city, what are your reasons? Is it close to work, family, transit or perhaps it has to do with familiarity?

Consider taking trips out to various areas and take the time to walk and explore. How do you feel walking down the street, is it well lit in the evening, are the people you encounter friendly, does it give you a good vibe? How is the noise and traffic? Can you visualize yourself living there?

It’s also good to visit the areas at different times and days of the week including the weekend. Does it have enough parking for your family and friends when they visit, and how is the transit? Do you need to be in a specific school catchment or be able to walk to the grocery, bank, and other amenities?

Discovering different areas can be fun and enlightening, you might find an area you haven't considered. Something that offers you more for the way you want to live and spend your time.

You may be pleasantly surprised by this worthwhile adventure, as it certainly is a great way to broaden your knowledge and learn more about this wonderful area of the world.

Deduct your mortgage interest! Yes, that’s correct

You may be aware that you can deduct the mortgage interest if you own a revenue property. But did you know there may be a way for you to deduct the interest on your principal property?

If you are in a position where you can buy your principle property with cash, then the following scenario may work for you.

The first step is to obtain mortgage approval. Depending on your personal life situation, whether you work fulltime, self-employed, or retired, will determine the amount of mortgage you will be approved for, and the interest rate they are willing to give you.

Once you find the property you wish to buy, you would use your personal money to purchase the property, then obtain a mortgage for the property you just purchased.

You could then use the mortgage money to invest.

Because mortgage rates are at an all-time low, you can borrow money using the mortgage for very little, then claim the interest expense as a deduction which further reduces the cost of borrowing, then invest the money to earn more money. It represents an opportunity to increase your rate of return over time.

This isn’t for everyone, but if this intrigues you, speak with your financial advisor to see how it may apply in your situation.

If you asked a group of people where they think the hub of the house is located. The answer would most probably be the kitchen.  It is the hub of the home and a great deal happens right in that space. Everybody loves to hang out and chat in the kitchen, it’s the magnet that attracts friends and family and the location in your home where all the action is.

If you are renovating your kitchen, I would highly recommend adding an island to the design. Most everyone could use the extra prep space, and who wouldn’t love the storage that pot & pan drawers provide. If you have an electrician performing part of your reno have him/her install a couple of receptacles into the island, it’s inexpensive but very useful and much safer than running extension cords. Top that off with receptacles that also include USB chargers for your devices.

Also, turn your new island into an eating and breakfast bar by extending the countertop at least 12” past the cabinetry. This will create easy access seating so family members can help prepare dinner, have a quick meal, or perhaps finish their homework. It’s also a great place for that laptop to work from home or for quick access to that special recipe you have saved.

A kitchen island is a hot commodity and may very well help you sell your home in the future. But don’t worry about that, do it for yourself and for what it will add in fun and functionality.

Are you throwing free money out the window?

No matter how small and insignificant it seems, free money should be grabbed!

Did you just get hired with a company offering a Group RRSP Plan? Or perhaps you took a job some time ago but didn’t join the company plan? If that is the case, it may be time to revisit HR.

Most companies offering a Group RRSP will allow you to put 3-5% of your earnings into a company plan where they match a portion or possibly all of your contribution. Many would consider this free money. Even a modest 25% match is an instant 25% return on your investment, that is hard to achieve elsewhere.

Many people believe they can’t afford to contribute to an RRSP and forego the deduction without really understanding the benefits. Every year that passes, more “free money” is left on the table.

Your RRSP contribution is deducted prior to taxes being paid, so technically you will pay less taxes each month. When these automatic RRSP deductions are moved at “source” you will not have the chance to spend the money, and really won’t notice the difference.

For example, if you have an income of $4K per month, contribute 3% to the company RRSP Fund, and your employer matches your 3%, you will have $2,880 in your Group RRSP at year end! Your monthly contribution of $120 is deducted prior to taxes, therefore you won’t notice the full $120 missing from your cheque.

Once your deductions are set up at source, it is amazing how quickly we adapt. Your new cheque amount will quickly become the “norm”, and you may forget you are actually saving for your future – now that is a bonus!

An additional benefit is first time home buyers can borrow up to $35,000 from their RRSP for a down payment tax free ($70K if both are first time homebuyers). Note that this is considered is a loan from your RRSP and must be repaid within 15 years.

Time passes very quickly and soon enough another year will have gone by. Make it a priority today to schedule time with HR to discuss your company RRSP plan. Have them set up your contribution so it changes as your income changes. You will be happily surprised a few years from now.

Somehow September snuck up without us paying attention, perhaps it’s because many of us work out of our homes these days, and no longer need to venture outside. One day becomes the next, and then it’s the weekend again. Maybe you haven’t left your home for several days, this can easily lead to a humdrum existence.

Something as simple as packing a sandwich to go across the street to the park will brighten your day. It is truly amazing how rejuvenating it can be to sit and watch the waves and feel the breeze on your face.

With fall around the corner we should take time each day to enjoy the sunshine. Whether a short walk or coffee in the park, I’m sure you’ll agree it just makes life “that much better”.

Get creative, even when it rains you can still have a picnic in your car and watch the birds. The key is to just get outside.

Are you waiting on the sidelines, listening to others tell you that house prices will continue to plummet, hoping you can snag a deal?

Many of us are, but please keep in mind that the pendulum will sway back and forth, making it very hard to predict what and when price changes will happen.

I have been looking at market data and properties for sale every day and have noticed an interesting trend. Even though there are properties showing price reductions, I am also seeing quite the opposite with some properties bumping back up. What might be the reasons for this? It may be something as simple as the property wasn’t priced correctly to start with and they have decided to make an adjustment, or, they were just testing the market to see where they might fit in but what if something else is going on?  

No matter what you hear or read, nobody has that crystal ball that will tell you when to “jump in”. In order to make an informed decision, my suggestion is to determine your “comfort zone”. If you found the perfect property last year, at what price would you have been happy to make an offer on that specific property?

In Greater Vancouver, the July sales were 9.4% above the 10 year sales average. This confirms that people are taking advantage of the very attractive interest rates which are still below 2% on a 5 year term! If interest rates rise even just a little bit while you are waiting for prices to drop, you will not realize the savings.

The only time you will be aware prices have reached the bottom, is when they’ve already started to climb back up and you have the numbers available to make a comparison.

Now is the time to get your ducks in a row. You don’t want to be scrambling around in the dark when you find the right place. You want to be prepared to take the next steps when the home of your dreams is on the market.

Let me do the footwork while you enjoy the experience. My job is to make it easy for you. Remember, a Buyer’s Agent doesn’t cost you a dime, but they are invaluable.

What’s the value of regular exercise? Do you exercise regularly?

I’m not a personal trainer, nor do I play one on TV.

However, it doesn’t take much to know the benefits of exercise, especially today when many of us are spending hours sitting in front of our computers, then winding down our day sitting in front of the TV with a few snacks perhaps. If you are experiencing bouts of lethargy, stiff legs, a sore back, or feeling sleepy during the day, perhaps it’s time to get moving.

For those of us working from home, the weeks go by with Mondays quickly becoming Fridays rolling through the weekend, only to start all over again. Work, Eat, Sleep. Breaking up your day with a work out will not only make you feel better physically and mentally, you may also become more productive. Working out releases’ endorphins which make you happier and less stressed. To top it off, it is well known that people who exercise or are active, don’t get sick as often as those that are sedentary. As we are heading into flu season we could all use the benefits of working our way up to regular exercise.

If you don’t want to hit the gym, consider natural exercise. Basically doing something fun where you inadvertently end up exercising. Could be something as simple as grabbing a couple of badminton rackets and batting the birdie around. No need for a net.

When you are home hunting, consider how much value you place on having a gym in the building or room for your own equipment? Are you the type of person more likely to work out if you could roll out of bed, throw on your gym clothes and head downstairs? If you had to shower, get dressed and drive somewhere, how long will you keep up your routine?

Take your workout for a test drive, you might find it quite refreshing.

You are ready to go home hunting …

To ensure an enjoyable and constructive experience, you need to be prepared. This requires some homework to really know your Needs vs your Wants.

Plan to set aside some quality time to brainstorm the expectations and features of your next home. Then make a list with two columns marked NEEDS and WANTS.

Now imagine walking through your new home room by room, envision each space, what does it contain, what do you Need, what do you Want?

Do you like to cook? How important is the size of the oven or whether the range is gas or electric? If the oven is too small Cornish hens may be on the menu at Thanksgiving, or you may not be able to use full size baking trays for that secret cookie recipe.

How much laundry do you have to wash each week? It’s easy to overlook the value of full size appliances if you want those king size sheets washed in one load.

Storage is a big one for condo owners, you may have seasonal items that have to be packed away, so a locker is important. If the condo doesn’t have a locker, would in-suite storage suffice? Consider everything you own and decide where things will go, the last thing you want to do is purchase a place that becomes overly cluttered because items don’t have a home.

Outdoor space is another factor to consider when making your list. Do you want a deck or a patio? Main level condos usually have a larger patio and potentially, a yard with great access for entertaining or kids and pets. How important is a property with a balcony? Do you like to BBQ? Do you wish to grow veggies or face a specific direction?

Is parking important or do you take the SkyTrain? You may want a property within a .5km radius of a station so it is an easy walk even on a Vancouver winter day. Do you want a private garage or is a parkade ok?

Hopefully this has provided some insight into what you should think about, and what is important to you. Other areas to consider may be your furniture and whether it will fit in certain rooms, closet space and fitness area. Remember, this is a work in progress, if you do the homework, you will know when you find the right home.

I’d love to help you walk through this process, please don’t hesitate to call

Shannon 604-828-9095

You may have watched the UK TV series where the Brits are constantly trying to get on to the Property Ladder. It is very expensive in the United Kingdom to own property, the terminology may not be the same here, but we certainly have the same situation.

Many people are finding it harder and harder to achieve property ownership. Many of you may have rented your property with the intention of saving up for a down payment, years continue to go by, and you are still renting. How much money have you spent on rent while you watch the property prices increase? Every increase in property requires a larger down payment, it’s a vicious circle.

Maybe now is the time to think “outside the box” and consider an alternative method to owning property. Are you aware that you can purchase a property with your trusted, long-term roommate and be listed on Title as “Tenants in Common”? Tenants in Common basically means that each person owns a percentage of the property.

Calculate how much you spend per year on rent with your roommate, how long have you lived together, would it make sense to make an agreement to purchase a property together? The benefit is you will gain equity and not be throwing your hard-earned money towards paying off your landlords' mortgage each month.

When and if your circumstances change and the time comes to part ways, you can sell the property and take advantage of the equity you have built, or you may be in a situation where you can keep the property as rental income.

The big question is, if you have the down payment now, why aren’t you buying a home?

Here’s an example that I confirmed with a professional mortgage broker this morning:

• $500K condo, Strata Fee $350, Taxes $1900
• Minimum down payment (5%) $25K ($12,500 each)
• Mortgage payment $2,079 ($1,039.50 each)
• Strata Fee ($175.00 each), Taxes ($79.16 each)

• Cost per month ($1,293.66 each) 

• The above calculation is based on a Joint Income of $110,000/year, 5year fixed high ratio mortgage 1.95%

If your share of rent is currently $1,000.00/month, you are paying your landlord $60,000 in 5 years

How much can you sell your property for in 5 years? Definitely something to think about ….

As this idea is a little different than the standard approach, it is a good idea to have a discussion with your lawyer or mortgage broker for more detailed information. If you’d like contact names for either, please give me a call.

Let’s get the ball rolling, if you would like properties fitting your criteria sent directly to your inbox, please give me a call or email to discuss your needs & wants. I am always happy to help.