Laneway Housing - An Innovative Move for Vancouver?

Here's an interesting article about Laneway Housing I fount at BeyondRobson.com

If you're not familiar with the concept, it basically means that property owners can build another potentially stand-alone structure on their property that opens up to the lane - what we would otherwise call an alley. You can check out this fact-sheet from the City of Vancouver for more info.

Rob brings up some really interesting questions as to what LWH will do to Vancouver:

Will it reduce or increase the price of lots? I'm sure we'll see arguments both ways (and I've heard the argument coming from sellers that it will increase the value). Because it applies to a large number of lots its clear that it will be a city wide change. The house at 2625 Oxford doesn't have a new competitive advantage over its neighbour across the street. It will make it easier to generate income off properties. What will a nice, new laneway house rent for? What will it net? What kind of mortgage will that carry, and what will construction costs be? I think its safe to say that LWH will contribute to positive cash flow. Existing owners will enjoy the benefit of the change. Future buyers will find the benefit priced into the purchase price. Is there a downside? Will laneway housing improve, for example, East Van neighbourhoods or will it turn out to be a new way to supply sub-standard accomodation? Could it be a solution to homelessness? Is there a fit between privately owned LWH, Strathcona, and government funded social services? (How's that for a hand grenade!)


A laneway house in Toronto. Photos from Canadian Architect

Personally, I'm interested in the concept as there seems to be some sort of environmental requirements that need to be met in order to build, along with the obvious fact that Vancouver is desperately in need of more rental housing. And, according to the fact-sheet, renovations or upgrades to the Laneway House do not need to coincide with upgrades to the main unit - handy, for property owners I can imagine.

Vancouver will always need to use it's land in the most efficient way possible, however, I'm also curious if this move may further increase the divide between property owners and non-property owners in Vancouver. Or, will we see rates lower as more units are made available, along with a decrease in value for those properties that do not enter onto a lane?

I'm no real estate expert, but I'm sure there will be consequences to this decision. What do you think: Good or bad decision?

For more info (and comments), head to Rob's article which includes a few more links to other opinion sources such as the Straight.

Winning the Real Estate War: Using Staging to Help Sell Your Home

Last spring when Jim and Heather Thompson decided to sell their home in Vancouver, they realized they knew little about how to get top value for their biggest possession. "We were talking about our life savings," says Jim, 47, who works as the head of sales for a technology company. "But I was really clueless as to what sells."

The Thompsons enlisted the help of John Carter, co-founder of Dekora, a "home-staging" firm in Vancouver, B.C. Carter spent a day going through their home room by room and drawing up a list of suggestions aimed at maximizing their house's appeal for prospective buyers. After discussing his proposals - which ranged from removing some shrubs in the front yard, to powerwashing the driveway and walkways - the Thompsons gave Carter's crew the go-ahead to implement some of his ideas. Total cost: $4,000.

We know what you're thinking - $4000 just to get your home ready for sale? But consider the results. After a single Sunday showing early last year, the Thompsons' home attracted three odders, all of them higher than the couple's asking price of $649,000. Three days later the Thompsons agreed to sell their residence for a $1,000 premium over the listed price. While a hot real estate market helped, the Thompsons are convinced that Carter's primping and attention to detail was a big reason for their houses runaway success. "Our place fetched the highest price of any bungalow sold on our street - ever," says Jim.

Home stagers like Carter claim they can help anyone get a premium price for their home. Practically unknown in Canada even three years ago, stagers are now a presence in the real estate markets of Toronto and Vancouver and are popping up in many other cities as well. These home professionals - many of them former decorators or real estate agents - specialize in knowing what motivates potential buyers. They use all the tricks of the trade to help homeowners come out on top in the perpetual battle between buyers and sellers. "Getting a house ready to live in and getting a house ready to sell are two totally different things," says Carter. "Decorating is about making a home comfortable for you and your family; staging a home is about merchandising properties. It involves making a house clean and clutter-free so people can connect with the home. Done right, it helps your place sell faster and for more money."

How much more? Coldwell Banker Realty tracked 2,772 properties, ranging in price from $229,000 USD to $4.8M, in eight major US cities. It found that while the average home was on the market for nearly 31 days, the typical staged home sold in just under 14 days. And while the average home sold for a mere 1.6% over the seller's asking price, the staged homes went for a hefty 6.3% more.

Home stagers perform their magic by playing up the best features of your house and minimizing the worst. They rearrange artwork on the wall, pack up your prized bowling trophies and clear out your son's high chair. Most stagers charge about $100 for an initial consultation; you then have the option of executing their suggestions on your own, or hiring the stager to do it at an hourly rate.

Taken from "Winning The Real Estate War" by Julie Cazzin, MoneySense

Top Ten Staging Tips from Dekora

Here's an interesting article from Dekora, a leading home staging company based in Vancouver, BC. Some interesting staging tips that may be of value to you if you may be thinking of selling your home, or know someone else who may be.

Your Home Is Your Product.
To maximize the value of your home and the speed of its sale, your home should be properly merchandised and displayed like any 'product' that is offfered for sale. Packaging and merchandising are critical factors in the world of sales - and you are now on the market.

First Impressions Count.
You never get a second chance at a first impression, so attempt to walk through your property in the shoes of your prospective buyer. Look at your entire home with an honest eye and discern what needs improvement and / or enhancements.

De-Clutter.
You're not hiring an agent to sell your personal things. Organize. Purge. If it's not in daily use does it really need to be here? It's okay to have storage for your "stuff," as we all have stuff. But try to keep it minimized, neat and organized. You will have to think 'show home' while you are de-cluttering and that less does mean more. Don't forget the cupboards, display cabinets and closets... It may be time for that garage sale.

De-Personalize.
Why take down the family reunion photo and the wedding pictures? Prospective buyers are walking through imagining themselves living in your home. They can easily become destracted by your personal photos and mementos, and they will start to focus on who you are and how you live rather than imaging themselves living there.

Clean, Clean, Clean.
Your home should be 'hotel' clean and odour free before you consider putting it on the market and showing it to prospective buyers. A lack of cleanliness says much more than words to those who are touring through, and it can literally cost you thousands at the bottom line. If you cannot do it yourself, spend a small amount to have the professionals come in. Ask them to tend to the areas that are time consuming for you, such as baseboards, window treatments, and other infrequent stops in your cleaning routine.

Repair.
If a door squeaks, a handle is wobbly or a drawer does not open or close smoothly; then git it fixed. Buyers will notice and they will make judgements on the maintenance level and upkeep of the rest of your property, based on that one small thing. A $500 repair to you means a $5000 reduction in the price to the prospective buyer.

Paint Colour and Condition.
Keep it neutral! Boring? To you maybe, but highly desirable to prospective buyers. Their thought process simply put is that they can move in without having to first spend time and money to paint over your favorite colours.All the decorating shows love to reveal "after" photos of dramatic, colourful rooms. That may help to sell a TV show to a viewer, but it will not help sell a home to a buyer. If it did, we would see more show suites at new developments painted flashy colours.

Reduce.
Reduct the amount of furnishings in your home. Are any rooms in your home filled with too much furniture? Are there furnishings too large for the room? Aim to give your room some breathing space for two immdiate reasons. First, it allows the prospective buyer to fully appreciate the space. Second, it allows an easy traffic flow. Pedestrian gridlock while viewers are walking through your home does not sell "spacious living"

Light.
Sunny and bright interiors are more appealing and therefore easier to sell. Clean your windows inside and out. Check for burnt out light bulbs. Replace low wattage with brighter bulbs. We may not want to live in such bright light all the time, but it does reinforce the fact that you have a bright interior to offer.

Decor Touches.
Pay very close attention to the small details that help in forming the overall impression of your property. Fresh cut flowers, a bowl of fresh fruit, a small potted plant... When your prospective buyer leaves after viewing, they will be discussing what they saw based on their overall impression of the home.

Dekora is located at 3498 Bridgeway Street, Vancouver BC
For more informative tips, visit dekora.com

New study finds real estate market downturn helping home affordability in B.C.

B.C.'s real estate market correction is improving home affordability in the province, according to a new RBC Economics study.

The proportion of pre-tax household income needed to service the costs of owning a home has fallen for all housing types in the third quarter. According to the study, owning a standard two-storey home requires 77.7% of a household's income. That's down from 80.9% in the second quarter.

Costs of owning a detached bungalow fell to 69.7% from 73%; the costs for a standard townhouse fell to 53.8% of household income from 55.8%; and the cost for owning a standard condo fell to 38.7% from 40.8% of household income.

But housing in Vancouver remains among Canada's most expensive. In the third quarter, prices are roughly double the national average for most housing types. Home ownership income requirements are still high. A minimum qualifying income of $150,000 is needed to own a two-storey home; $135,000 is required for a detached bungalow.

Given these high requirements, the study said most families in Vancouver are effectively shut out from owning a home and must instead look to the condominium market.

Source: Business In Vancouver

Bank of Canada Cuts Rate to 1.5%

The Bank of Canada has reduced it's over night lending rate three-quarters of a point to 1.5%, the lowest level in half a century. Commercial banks, such as TD Bank, the first to take action, and CIBC have responded by reducing it's prime lending rate to only 3.5%.

The Bank of Canada's next scheduled date for announcing the over night rate target is January 20, 2009.

Bank of Canada
The Canadian Press

Science World to receive $10.5 M for upgrades

The BC provincial government will be giving Science World $10.5 million dollars to upgrade the building envelope, foundation and structure, in addition to constructing an outdoor science and sustainability park.

Science World opened in 1989 and receives more than 525,000 visitors annually. The building and mirrored glass ball was built for Expo '86 but was not designed for permanent operations.

For more information: News 1130

Slow home sales create window of opportunity for buyers

A recent press release from the Real Estate Board of Greater Vancouver reports that the reduction in home sales and home prices in the month of November has helped to improve home affordability in Greater Vancouver. Correspondingly, November also saw a decrease in new homes being listed.


For more information, see the press release at the Real Estate Board of Greater Vancouver

Energy Saving Tips for the Approaching Winter Season

Now that winter is almost upon us, I thought I'd share some practical money saving energy information, Fact versus Fiction:


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Home Prices Down; Affordability Improves in BC

According to the latest British Columbia Real Estate Association (BCREA) report, residential sales by dollar volume declined by 39 per cent to $2.1 billion in September, compared to September 2007. Residential unit sales were down 34 per cent to 5,107 units during the same period. The average MLS® residential price in the province was $412,149, down 7 per cent from September 2007.

“Weaker consumer demand and a large number of homes for sale are having an impact on home prices in the province,” said Cameron Muir, BCREA Chief Economist. “Despite relatively strong fundamentals, consumer confidence is low. The global liquidity crisis and volatile equity markets are intensifying this sentiment, causing many households to pull back spending on major purchases.”

“However, affordability is improving,” added Muir. “The carrying cost of the average home in the province is now lower than at any time since the end of 2006.”