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Mortgage Deferrals Are Done. What Should I Do Now?

The past year has been very challenging for many Canadians because of the COVID-19 pandemic, which caused a lot of uncertainty and panic. A lot of people lost their jobs and are still unsure of the future, and the experience has been very stressful and overwhelming.

To help alleviate some of the stress, the government released a mortgage deferral program, which allowed Canadians to defer their mortgage payments for six months. This helped people get through financial uncertainty during an unpreceded pandemic but this program has now ended, and homeowners will be expected to start making mortgage payments again.

Many Canadians are still facing uncertainty, so if you do not feel as though you are in a position to start making your mortgage payments again, it is best to reach out to your lender to see if there are other solutions or options they can offer. They may not be able to offer you an extension but they will work with you to offer you some flexibility until this pandemic is contained. Reach out to your branch directly because even if they cannot offer you a full deferral, they may be able to offer you lower monthly payments, so it is definitely worth asking.

Seek Additional Financing

One option you can discuss is refinancing your mortgage because interest rates are very low at the moment. This would make a very big difference, especially if you are currently locked into a fixed mortgage at a higher rate, so ask about this option because it may allow you to significantly lower your rates. Make sure you understand all the details surrounding this option because in some cases, penalties may exist, so you may have to pay a fee if you decide to break a fixed-rate mortgage. Even with these penalties, you may still end up saving a big portion, so it may be worth it, and this is why you need to look at all the details to make an informed decision.

Ask For An Extension

Additionally, you can also ask your lender about the possibility of extending your amortization period, which would add to the number of years you have to pay off your mortgage. You may end up paying more in the long run, but it will make your individual payments easier to manage, so this, too, is an option you can look into.

You can also consider selling your home and moving into a less expensive property, which would help lower your monthly costs while still allowing you to build equity. You can buy a smaller property in the city or move further out, where you may be able to get a bigger property for less. If this is something you are interested in doing, Cherry Yeung Real Estate can help. Our realtors can help you buy a condo or can show you all the houses that are for sale in the Vancouver, Burnaby, and Richmond areas, so if you want to work with a reputable real estate agent, give us a call today!

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Picking The Perfect Location

When purchasing a new home, choosing the right neighbourhood is just as important as finding the right house. Do you want to live in an up and coming area or somewhere more family-friendly? Each neighbourhood comes with its personality and has its pros and cons. If you’re looking to make a long-term investment, it’s important to choose a location suited to your needs and wants. Here are some factors you should consider when picking a neighbourhood.

Neighbourhood Features

Are there some essential features that you would want in your neighbourhood? Remember to take into account not only your preferences but your family members’ too (if you’re planning on living together). For example:

  • Do you want a bustling area or quiet streets?
  • Does high walkability matter to you? (You can check the walk score of any neighbourhood online)
  • Perhaps you have a dog and would like a dog-friendly park nearby?
  • Do you prefer a tight-knit community?
  • Are you happy to drive everywhere, or do you want public transportation closeby?

Commute

While most of us are working from home now, eventually, we will need to start commuting again. Consider how long it will take for you to commute to and from work, and if you’ll be taking public transit, whether there’s a stop nearby. What seems like a short walk in the summer can feel much longer in the winter months!

Schools

Will you need to be near schools? What are the schools in the area like? Even though you may not have children now, this is something to consider if you’re planning to be a parent in the future.

Future Developments

Do you prefer an established area or an up and coming neighbourhood that may have many developments (a.k.a. construction sites)?

Buying into a developing location will likely be nicer to your wallet as well as an excellent long-term investment, as these areas often appreciate quickly. On the flip side, you might be surrounded by cranes and construction noises for a while.

You can find more information about future development plans at city hall or through the local Chamber of Commerce. It’s a good idea to investigate the neighbourhood’s future and decide if it will align with you and your family.

Demographic

The people that live in the neighbourhood make the area what it is. A location populated with young 20-somethings will feel different from one full of young families or retired folks.

Amenities

Do you like being close to bars, restaurants, grocery stores and cafes? Is night-time noise a concern for you? Consider walking around the area during the day and at night to make sense of its highs and lows.

Whether you’re looking to purchase a new home in Vancouver, Richmond or Burnaby, Cherry Yeung is the professional real estate consultant for you. With years of experience and an excellent track record, Cherry and her team of real estate experts know these cities like the back of their hands. Call us now for your real estate inquiries!

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What Is An Assignment Sale, Exactly?

An assignment sale is the sale of a contract for a pre-construction property before the unit is even built. The new buyer takes over the contract and will be responsible for the deposit, taxes, closing costs, etc. when they occupy the property.

Assignment sales are common and completely legal. However, these deals can be more complicated than conventional resales, and it’s vital to have an experienced realtor by your side to protect your interests.

Why Do Assignment Sales Happen?

Various life changes are the most common reasons why the original buyer may want to sell their rights to a unit. For example, some people need to relocate for their careers, while others may have started a family and need a bigger place. Some sellers may also be investors that never intended to close.

The Pros And Cons

Are assignment sales worth it for the buyer or the seller? Here are some pros and cons you should consider before making a decision.

For The Buyer

Pros-

  • There’s a shorter wait for the finished building in comparison to buying from a builder.
  • Assignments are usually cheaper than resale because sellers cannot market them on MLS. This means that there’ll be less competition as fewer buyers know about them.
  • Assignments are usually only allowed when the project is almost done, so you won’t need to worry about the project being suspended or cancelled.
  • Assignments could be a good option when there’s a listing shortage in the market.

Cons-

  • Be prepared to dish out a lot of cash upfront, including deposits, appreciated value, agent commission, closing costs, assignment fee and more.
  • Assignment sales can be much more complicated than conventional resale. To make sure everything gets done smoothly and correctly, you’ll need an experienced real estate lawyer and a realtor with a good understanding of the assignment market.

For The Seller

Pros-

  • You can take advantage of the rising condo market and sell the unit to reinvest in another project.
  • Allows more flexibility. You can walk away without incurring any penalties, and even some profit!
  • Avoid paying more in transfer taxes, occupancy costs and occupancy fees.

Cons-

  • Assignments can be harder to sell because they’re not allowed to be marketed or listed on MLS. They usually take longer to sell and at a lower price than at resale.
  • When you are allowed to sell may depend on factors that you cannot control; for example, some developers require a certain number of units sold before allowing assignments.
  • Not all builders allow assignments, so you should always check for the contract’s assignment clause before signing!
  • You might incur higher legal fees as assignments are more complex.

When looking to buy or sell an assignment, an agent experienced in this type of sales is your most significant resource as they can leverage their network to connect interested buyers and sellers. So if you’re interested in assignment sales in Vancouver, contact Cherry Yeung, your professional real estate consultant, today!

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How Much Should You Budget For Expenses After Closing?

Buying a house is a very big step and a very large investment. You will need a down payment and money for closing costs but many people do not realize that there are other expenses associated with the purchase of a home after the closing period.

While these expenses can vary from one home purchaser to another, it is always a good idea to plan ahead so that your budget can cover all of the costs, and the following are a few aspects to keep in mind:

Moving costs

This will depend on the amount of stuff that you have as well as your timeline. If you need to rent storage, make sure you include this cost in your budget. You will then have to look at the costs of hiring a professional moving company versus doing it on your own and will have to determine which option would be best for you. Doing it yourself is not always cheaper because you will have to rent a truck and pay for gas, so be sure to keep this in mind.

Utilities

You will need electricity, natural gas, water, cable and internet as soon as you move in, so make sure to contact each of these service providers prior to your move-in date to get estimates. These services will start the day that you move into your new home, so make sure you are ready for the monthly bills that will arrive.

Household items

Most people need to purchase at least a few new items when they move into their new home, so set a budget aside for items like shower curtains, lightbulbs and hampers, for example. While these items are generally inexpensive, they can add up, so make sure you factor in these costs. You may also need a new vacuum or appliances, so the costs will vary based on your needs and the most important thing is that you are prepared for such expenses.

Window treatments

Some homes do not come with window treatments or you may dislike the existing ones if they do not match your personal style or taste. If this is the case, you will have to budget for new window treatments or replacements, and the costs will vary based on the size of the windows, the quality of your preferred materials and installation. Every home needs curtains, blinds or shades, so make sure you allocate a budget for these.

It’s hard to predict the exact amount that you should budget for expenses after closing because the number will vary dramatically but being prepared is extremely important.

Cherry Yeung Real Estate can help you find your perfect home and our real estate agents will guide you every step of the way. Whether you are looking for houses for sale in the Richmond area, want to buy a condo in Vancouver or need a realtor in the Burnaby area, we can help, so give us a call today!

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Appropriate (And Unreasonable) Inspection Repair Requests

A home inspection contingency is included in most offers because it is a very important step that will alert a buyer about serious problems like broken appliances or cracks in the foundation. The results of this report can help you determine your next steps with the seller and will confirm whether or not you want to proceed with the purchase.

If you’ve never been through this process, you may be unfamiliar with the requests that are appropriate, as well as the ones that are unreasonable. Generally, safety issues are considered legitimate negotiable repairs, as are problems with non-functioning systems. Any structural defects or serious hazards are also legitimate reasons to be concerned and such problems need to be considered carefully because they can cause you to back out of the contract.

Issues that have already been disclosed and minor nickel-and-dime requests, on the other hand, can lead to ill will on the seller’s behalf and may affect their decision to close the transaction. If you are determined to close the deal, it is generally recommended that you pass on the following requests:

Normal wear and tear

This includes some scratches on the hardwood flooring and chipped paint, to name a couple of examples. Cosmetic defects are very normal and most homes will have these issues. Sellers will not want to negotiate on these minor flaws, especially if they were visible when you made the offer.

Minor repairs

You will have to compromise in some aspects and focusing on big-picture items is far more important than worrying about small and inexpensive repairs. As a buyer, it would be ideal to get the seller to fix every little repair but this can affect their willingness to sell.

Smoke and carbon monoxide detectors

This should not be an issue because you don’t want to settle for cheap replacements in the first place and can shop and install a system that meets all of your long-term preferences once you close the deal and move in. This way, you will have peace of mind knowing you chose the system that’s in place and that it satisfies your preferences.

Landscaping changes

You may not love the unevenness of the walkway bricks or some of the plants but it is unreasonable to ask or expect the sellers to make these modifications. These are issues that were likely visible when you toured the home and requesting changes will probably irritate the sellers.

Your real estate agent will provide you with more information regarding the inspection process and the realtors at Cherry Yeung Real Estate will guide you through it. We will ensure all of the important issues are taken care of and will tell you which requests to leave out. Whether you want to buy a condo in Vancouver, need a realtor in the Burnaby region or are looking for houses that are for sale in the Richmond area, we can help, so give our office a call now!

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How Do You Pick A Home Inspector?

A home inspector will tell you if there is anything concerning a house you may be interested in purchasing by assessing the property to see if there are any issues related to it. Depending on their findings, the results can affect the purchase because potential buyers do not want to invest in a home that is falling apart.

As it is a very important job that will determine your future and affect the biggest investment of your life, you need to make sure you hire a reputable, knowledgeable and skilled home inspector so that you can receive accurate information regarding the home and any problems it may have.

Choosing a home inspector is not easy because anyone can claim to be in that industry, so don’t let fancy business cards fool you as there are no set rules or regulations as to what exactly a home inspector is required to do. This is problematic because potential home buyers hire this person to inspect the house they are interested in so they can come back and present them with facts in regard to any issues the home may present. As there are no prerequisites or specific education required for this position, it can be difficult to hire a home inspector who is familiar with the plumbing aspects, electrical issues and gas components, just to name a few. These are all individual professions that require extensive training and courses, along with years of apprenticeship to gain the skills and knowledge necessary for each job and a home inspector may not have any of these skills because it is not a requirement. This is why picking a qualified home inspector is tricky as many of them don’t actually have the right training to qualify for the position they are holding.

Asking your realtor is the best place to start because if they have the right experience, they should have trustworthy contacts they refer their clients to. If you’re happy with your real estate agent and trust their opinions, ask them about this topic and see which company or individual they would recommend because they will usually have at least one home inspector they prefer who does the job successfully.

Word of mouth is a powerful tool, so if your family or friends suggest a specific company, you should consider this option too as qualified home inspectors can be hard to find. If people you know and trust were happy with the services they received, their recommendation is definitely something to look into as this will help your selection process tremendously.

If you want a real estate agent you can trust, contact Cherry Yeung Real Estate today. Whether you want to buy a condo or are interested in houses for sale in the Vancouver, Burnaby or Richmond areas, one of their experienced and professional realtors can help, so give them a call now and they’ll take care of every aspect!