Real eState

‘Unusual’ real estate listing asks $750K for half-interest in Richmond, B.C., home

Published

12 months ago

November 22, 2023

Would you purchase real estate with a stranger?

While many prospective buyers would likely balk at the concept, an online listing offering “undivided half-interest” in a 2,992-square-foot home in B.C.’s Lower Mainland for $750,000 might give some a moment’s pause.

The property on Richmond’s Lockhart Road has five bedrooms, five bathrooms, two fireplaces and a two-car garage, although even the listing on Realtor.ca acknowledges the purchasing arrangement would be out of the ordinary.

“Yes, unusual it is,” the property description reads.

The listing, which has been up for 170 days, also urges would-be purchasers to do their homework, asking them to consider questions like, “Who would I be sharing ownership with?” and “Does the other half want to sell?”

“WE DO NOT KNOW THESE ANSWERS,” the listing adds in all-caps. “Please call your Realtor and ask for the explanation with documents posted.”

While strangers sharing real estate is exceptionally rare, family members and close friends co-owning property is becoming more and more common, according to lawyer Richard Bell, who pointed to astronomical home prices in many B.C. communities as a driving factor.

“It’s too expensive for people to buy on their own, so they start looking for sharing opportunities,” Bell told CTV News. “Affordability is a great word, but pretty tough to find it in the major centres, and even the smaller centres.”

There are currently no single-family homes in Metro Vancouver listed for less than $1 million, and none of the ones listed for $1.5 million have five bedrooms and five bathrooms.

The Lockhart Road property was most recently assessed at $2.1 million – though whether that makes the asking price of $750,000 for half-interest an appealing deal depends, in part, on the answers to the many unanswered questions posed in the listing.

CTV News reached out to the Realtor representing the home for more information, but has not heard back.

A listing for a Richmond, B.C., property offers undivided half-interest in a five-bedroom, five-bathroom home for $750,000. (Realtor.ca)

Generally speaking, Bell said, the key to any co-ownership arrangement is to consider as many potential circumstances as possible.

For example, if two couples are choosing to purchase a home together, they should first agree on what would happen if one of the couples were to separate or move away.

“What happens if someone has to sell? Is there a process where they have agreed, in a contract, to engage in meetings with the new potential buyers? Is there an approval process, like in a co-op situation?” said Bell.

“This is an arrangement where people are committing to something that’s significantly different from what they’ve grown up with, apart from maybe sharing a place when they’re in university, which is a different story.”

There can also be issues around financing. Bell noted that no matter how much money each buyer contributes to the down payment, the owners’ names will all be on the mortgage – and the lender will consider each of them 100 per cent liable for the balance.

“Most people will say, ‘OK, I’m going to have a mortgage for $500,000 and you’re going to have one for $750,000.’ But really, you’re both going to be liable for $1.25 million,” said Bell.

Carrying that debt could impact an owner’s ability to finance a new vehicle, or even apply for a new credit card, the lawyer added.

But despite the potential complications, Bell said shared ownership can be a great way to break into the real estate market. In fact, he shares his home in Vancouver’s Mount Pleasant neighbourhood with all of his children under just such an arrangement – which was a dream of his wife’s before she died of cancer four years ago.

Bell is also the chair of Small Housing, a non-profit that has been advising the B.C. government on how to bring “gentle density” into neighbourhoods largely made up of single-family homes.

He said the province’s recent move to reduce zoning barriers in cities – allowing for single-family homes to be broken into multiple units – is a step in the right direction, noting that a stratified property can allow each buyer to obtain their own mortgage, reducing the potential for sticky situations.

“Co-ownership is a solution that works in a number of situations, stratification would be much better in others,” Bell said. “And we’ll see that unfold over the near future with what the province is doing and with what some municipalities are doing.”

Source link

Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

3 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

Source link

Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

Source link

Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

Source link