Discover Vancouver Living

Vancouver Real Estate and Lifestyle

Sara Gillooly

Financing Your Home Renovations

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Is there something that you wish you could change in your home? Maybe your washroom is outdated or you absolutely hate your kitchen. You might be wondering if it’s better to sell your home or to fork out the money for renovations.

What I’ve found a lot lately, especially in today’s market, is that people are tapped out. They’ve used all their cash to buy a home and now they don’t have money left over for home improvements. But people are often surprised to know that they have options in terms of financing their renovations.

In fact, did you know that you can take out $30,000 and it will cost you less than a monthly car payment? For every $30,000 you take out into your mortgage, it’s $108 per month. Not bad. So, if you absolutely hate your kitchen and want that desperately needed upgrade, you can do it for a pretty reasonable monthly cost. Plus you’ll have a more functional kitchen and will enjoy your home more.

From a Real Estate perspective, the reality is that doing a $30,000 kitchen upgrade will likely increase your home’s value. Yes, a kitchen renovation can be expensive, but it is also one of the biggest returns on your investment. Generally speaking, if you do a kitchen upgrade you will get that money back when you sell, and then some. I can’t say exactly what number, but it’s super important to think about.

If you’re thinking of doing an upgrade, give me a call. I’ll visit your home, and will walk through your property with you and will offer my advice and opinions. In some cases, it might actually better for you to keep your home and fix the things that are not functional. Once you make the fix, you either love it or list it. Or you might decide to enjoy your new updated home for a while and then sell when the timing is right.

Whatever home renovations you want to make, keep in mind that you do have options. Reach out to me if you have questions or want to speak with a Mortgage Broker about your financing options.

Can You Afford To Buy A Home That Needs Improvements?

Can you afford to buy a home that needs improvements?

Have you ever found your dream home, BUT, it needs a little TLC? Maybe you love the layout, but the whole house has carpet and EEK! You hate carpets! You don’t want to walk away from the house but you’re wondering if you can afford an expensive hardwood installation after using all your cash for the down payment.

Before you walk away from your dream home, you might want to consider your options.

First of all, you’re not alone! This is a very common situation, especially in hot markets when inventory might be low and people are going into multiple offers. What we’re finding, especially now, is that people are often paying above asking. And due to low supply, they might be buying a home that needs some improvement. This type of situation will often leave a home buyer with little money left-over to do upgrades, especially if they use all their cash for the down payment.

So, if you find yourself in this situation, don’t despair!

The good news is that there is a great product out there called Purchase Plus Improvement Mortgage that is available to home buyers. If you’re planning on buying a home and you have enough for a down payment, but you don’t have enough cash leftover for improvements, you can just add the cost of your renovations to your mortgage. If you want to update the appliances, put new flooring in, paint the walls, or whatever have you, the lender can actually help you finance that improvement. And the best part is that it doesn’t cost you anything extra in interest rates and fees. You still get a great mortgage rate and product and you get to create the home you want.

If you’re planning on buying a home and have questions about renovations, reach out to me. I can offer some advice and can help you find the right fit for you.

How to Leverage Your Home’s Equity

How to Leverage Your Home’s Equity

If you own a home, you might be wondering if there is a way for you to leverage your property. There is a lot of buzz about this topic, but what does it really mean to leverage your home and how do you do it?

Before we dive into this, let me give you a simple example. In January 2017, the average price of a townhouse in Greater Vancouver was approximately $660,000. Now (in 2021), we’re looking at an average price of $815,000 for a townhouse. That is a $155,000 difference. So, what does a $155,000 increase in value mean? It creates something called equity.

What is equity? It’s money in your home that you can tap into. In simple terms, that $155,000 increase in the value of your home can be used to upsize or to buy more property. For example, let’s say you’re in a townhouse but your family has grown and now you need more space. Instead of having to liquidate and sell your current home, if you’d like to keep it, you can take the money from the increased value of your home (that $155,00), and use it as a down payment for your next property. You can then turn your townhouse into a rental. Alternatively, you could keep your townhouse and use that $155,000 equity to buy a rental. It all depends on your goals and strategic planning. So, it’s your choice – you could use your equity and upsize your current home, OR, you could use your equity to add more real estate to your portfolio.

If you your property has gone up in value and you want to leverage your home’s equity, the best thing to do is to work with a Mortgage Broker. Your broker may need to restructure your current mortgage so that you have access to the equity, and in some situations, you might even need an appraisal to establish your property’s increased value. A broker will show you exactly what you need to do if you want to use your equity to create a down payment.

As a home owner, it’s probably really nice for you to know that you have these options. Especially if your home has already gone up in substantial value. Leveraging your home’s equity can be a powerful tool in helping you achieve your Real Estate goals and dreams.

If you have questions about leveraging your home or if you are looking for a Mortgage Broker that can help you, reach out to me and I’ll steer you in the right direction.

Creating Your Real Estate “Village” of Community Experts

If you’re making big decisions in your life, like buying or selling a home, it’s important that you have all the pieces of the puzzle. One of those pieces is ensuring you have a “village” or community of experts supporting you in your real estate journey.

Your village shouldn’t just be comprised of Real Estate Agents and Mortgage Brokers. It should be a whole team of people, such as Financial Advisors, Lawyers, Accountants and even Lifestyle Coaches and Planners. Having community support will help you plan and strategize for your big life decisions.

Let’s look at an example. Let’s say you are planning for your kids to have an investment home in the future. How should you plan for that?

The big thing is trying to see what your long-term goal is with that property. Do you want to acquire the property now and give it to your child down the road? If so, you’ll want to take into consideration things like taxes, i.e. what’s the best strategy to reduce taxes when purchasing an investment property? That’s where the accountant in your village comes in. A Mortgage Broker on the other hand, will help determine if it’s better to purchase that property in a company name; that way you can just transfer that company to your child when they’re of age to own the property. (Learn more about how a Mortgage Broker can help you by reading our post titled ‘Pros of Using a Mortgage Broker When Buying a Home’)

So when should you start planning for these types of big life decisions? Let’s say you’re looking at purchasing an investment property in 5 years – is it too early to start planning now? Definitely not. Get your feet wet and start strategizing. It’s about finding the right mortgage product and the right fit. You want to make sure that the lender and product is aligned with your plans because most terms are 5-year terms. You don’t want to be planning at the end or middle of your term. If you plan ahead of time then it’s easy to pivot and make choices as life changes and shifts. Life is variable, we don’t know what’s going to come but we can do our best to plan and strategize for it.

When we think of balance, it’s not just about fitness or nutrition. It’s about having a community, hence why it’s so important to have a “village”.  If you are stressed about making a decision because you lack information and don’t know who to go to for help, it could prevent you from having peace in your decision. Or worse, it could defer you from making a decision in the first place.  

If you’re planning on buying or selling a home and you have questions, reach out to me. I can offer some guidance and steer you in the right direction.

How To Pick a Realtor® When Buying a Home

Picking a Real Estate Agent can be daunting, particularly if you’re a first-time home buyer and have never gone down this path before. I mean, there are literally hundreds of us out there, so how do you choose the right Real Estate Agent?

The best things you can do is interview a few of them. I always tell my clients to sit down with 3 Realtors® and have a conversation with them. Talk about your goals and the things you’re looking for, and assess how they respond. Do they seem knowledgeable? Do your personalities match? Are you able to communicate easily with them? Remember – if you’re going to spend 2 or 3 months with a Realtor® (or longer), you want to make sure you trust them and feel comfortable with them.

So what types of questions should you be asking a Realtor®? Well, before you approach them I’d say that goal setting is really important. Think about what you want out of your home. Not just now, but also in the next several years from now. Are you planning on starting a family soon? Are you going to buy a pet next year? Do you see yourself working from home in the future? Knowing your situation now, as well as planning for the future, will help you figure out what you should be looking for. And ultimately, what you should be communicating to your Realtor®.

You should also think about your wants versus needs. What are your ‘non-negotiables’ versus your ‘nice-to-haves’? A good Realtor® will ask you these questions and will help you navigate those decisions. They will offer guidance and knowledge, and will present you with options that actually fit your needs. Their primary interest should be to find the best possible home for you.

Regardless if you’re a first-time home buyer or if you’re looking for a new agent, I would encourage you to feel confident in the interview process. Don’t feel intimidated. Afterall, you are making one of the biggest investments of your life, and investing in the right Realtor® is part of that process. A Realtor’s® job is to listen to your needs and to help you navigate the home buying journey from start to finish.

It could be a rigorous process but when you find the right Realtor® you’ll know. They will be genuine and invested in your needs, and interested in building a relationship with you. In fact, they’ll likely become your friend and will stay with you for life.

If you’re looking for a Realtor® or just have some general questions about buying a home, feel free to reach out to me. I’m always happy to help.

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