Melody Kilbank

CTV News on January 4, 6:00PM reported the forecast for housing in 2017 was “grim”. Don’t believe everything you hear on the news!
I look forward every year to attending the annual Housing Forecast Seminar put on by the REALTORS(R) Association of Edmonton. They invite several economists to present as well as our own Chairperson with predictions for the year ahead. The RAE predicts the following: Prices on average will drop a marginal 2.2% for Single Family Dwellings, 3.8% for Condos, however the Duplex Row housing market will increase by .5%. Although this outlook isn’t on the upswing, the margins are small, and may not be realized if your property is in good shape and is priced right. The rental market continues to have a 7%+ vacancy rate which is going to affect investors.
The Economists from Canada Mortgage and Housing, Government of Alberta and City of Edmonton were primarily in agreement about several things. Interest rates will stay low, oil prices will likely not change much from $53-$58/barrel WTI prices and unemployment rates are going to stay higher than usual until 2018. It is our immigrant population which is off setting the inter provincial migration so we will be at a net zero population growth over the next year.
We are in for a lean year, but not a “grim” one. If you need to buy or sell in 2017, work with a real estate professional who will be able to walk you through how to maximize your real estate investment!

Just passing on information to protect Albertans!

Consumer Alert: Mobey (Moby) Real Estate
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Calgary, Alberta – Multiple consumers have contacted the Real Estate Council of Alberta (RECA) about the activities of a company referring to itself as Mobey (or Moby) Real Estate, in Edmonton.

Mobey Real Estate is not a licensed real estate brokerage in Alberta nor are any of the individuals listed on the Mobey website licensed as real estate professionals.

Mobey has been contacting consumers with offers of work-from-home employment opportunities. These emails frequently indicate that Mobey is recruiting assistant property managers and other similar positions. Emails ask the recipient to complete an employment contract, including providing personal information and bank account information.

RECA and the Better Business Bureau of Central and Northern Alberta are warning consumers about these employment opportunities through Mobey Real Estate, and we encourage you to send any emails you receive from a @mobyestate.com email address to your local authorities.

Consumers can find out if an individual is a licensed real estate professional through RECA’s website at www.reca.ca. Use the “Searching for an Industry Professional” tool. If you have concerns about unsolicited employment opportunities, please contact your local Better Business Bureau.

The Real Estate Council of Alberta (RECA) is an independent, non-government agency, responsible for governing real estate, mortgage broker, property management, and real estate appraisal industry professionals under Alberta’s Real Estate Act. RECA’s mandate is to protect consumers and to provide services that enhance and improve the industry and the business of industry professionals.
The authority for a positive real estate experience

Copyright © 2016 Real Estate Council of Alberta, All rights reserved.
RECA News Releases are distributed to the email addresses provided to RECA by industry members, media, and other interested parties. RECA News Releases can also be found on the RECA website. RECA sends these emails using MailChimp. Your feedback on RECA News Releases and other publications is always welcome and can be sent to communications@reca.ca

November is the time of year we all reflect on our freedom in Canada. Paid for by the sacrifice of many. My dad is a WWII veteran and he just celebrated his 95 birthday in September! As I reflect on my parent’s real estate decisions over their life time, they are the prime example of how the equity snowball can work for you, in the purchase of your own home.

They started small in the early 50’s by financing their home purchase by the benefits of the Veterans Land Act. In 1950 the VLA began to provide loans to veterans who wished to construct their own homes. Their subsequent home purchases allowed them to move the equity from this original home to the next and so on. This equity is still providing a passive income to my Dad.

I think the key to building a good equity snowball is in getting into the market as soon as you can with an affordable home. It doesn’t have to be your dream home. As long as it provides for your needs, get started in home ownership and build some wealth through, market appreciation AND principle pay down on your mortgage.

With the new mortgage qualifying rate, first time home buyers are going to need to readjust their expectations. They may need to see one extra stepping stone along their path to their dream home.

My advice is to keep the big picture in mind. Your equity snowball is just going to start smaller. But you will still get to your end goal, thanks in part to the veterans who have served so we can enjoy the freedom of owning our own piece of real estate!

Grateful.

Effective October 17th the Federal government is now requiring all home buyers who are borrowing more than 80% of the price of their home to qualify for a higher interest rate.
Without getting overly complicated about the minutia, I’ll keep it simple. Any buyer who is entering into a purchase with high ratio financing (only 5-19% down) will have to qualify for the rate of 4.64% instead of the actual rate they are paying. This is for any term of mortgage. It used to be a 5 year fixed rate, you could qualify for the rate you would be paying.

My understanding is the government wants buyers to be more aware of what they can afford, not just what they qualify for.

Stacy Bell-Powell, of I Find Mortgages, www.ifindmortgages.com a mortgage broker to whom I refer some of my clients, has given us a specific example:

“Currently, if a client gets a mortgage with a fixed rate of five years or longer, we use their actual discounted interest rate for qualification purpose. If they take a term less than five years we need to use the Mortgage Qualifying Rate (or MQR) of 4.64% to qualify them. Effective October 17, 2016, regardless of the term selected, we will have to use the MQR to qualify them. The applies to all insured mortgages, so mortgages with less than 20% down payment.
For example, let’s assume a buyer has an income of $50,000.00/year and assuming no other debt payments, 5% down and good credit. Today, using a 5 year fixed rate of 2.44% this client would qualify for a purchase price of $324,000.00. Under the new rules this buyer would now qualify for a purchase price of $ 239,000.00.”

So if you are considering buying and are on the fence, any offer which has had approval and conditions waived by Oct 17th will not be subject to this new regulation. So act now!

Call me if you can move forward with speed!

Apparently it is a good adjective for the Edmonton market for August 2016!

The City of Edmonton SFD (Single Family Dwellings) prices were down by ONLY .02% year over year for August! Homes are selling 3 days quicker on average. Condominium prices dropped 1.2% year over year taking 4 days longer to sell than last year. The overall inventory level is down 2% from July 2016 but up 9.4% from August 2015.

“Alberta’s economy has been under enormous pressure for some time, but the residential real estate market in the Edmonton Census Metropolitan Area continues to hold. Prices and unit sales for all residential homes are consistent with last year, down less than 1% and 2% respectively,” said Steve Sedgwick, Chair of the REALTORS® Association of Edmonton.

As for the month over month numbers, SFD prices were down 4% July over August, bouncing back to the same average as June 2016. Condos were down 2.7% on average reflecting prices back in early spring.

“While this is one of the most active times of the year, we are seeing both listings and sales tapering off as we move into the fall months. This is standard in our local real estate cycle,” said Sedgwick. “

Our inventory will last us 5.37 months if no other homes are listed. This is still a balanced market. The quantity of listings could favor buyers over sellers, but not dramatically.

So, if you are like me, and have not had many PARS in your golf game this summer. Take heart! The real estate market is on PAR!

In a balanced market with stable pricing, it is a good time to either buy or sell. If I can help you with a market valuation on your home OR a buyer’s qualification valuation, please give me a call.

The time is ripe for buying an investment property. Here are 4 good reasons:
1. The Edmonton and area inventory is at record levels since 2007, which means there are lots of properties from which to choose.
2. The mortgage rates are low and just went down a little more this past week. 2.49% on a 5 year fixed is a great rate.
3. The Edmonton market has remained stable. This means you won’t be buying or selling in an inflated market.
4. There are more foreclosure properties on the market due to Alberta.

NOW is a great time to take that leap! Here are three main factors which will help you make a good decision for the long term investment.

LOCATION! You know the number one factor in buying ANY property is to consider the location for RESALE. When it comes to location of a rental or investment property don’t just look for what is there but also look for what isn’t there. Cheaper properties on main streets are an advantage to an investment for rental purposes. Being close to public transportation, schools, recreation and shopping are also valuable. But also consider what should NOT be there, power lines, un-kept neighbor’s yards, and surrounding properties which look like they need more “loving” than the one you are interested in purchasing.

The second factor to consider is LAYOUT! If the property has a functional layout, no matter how small it is, it will be a sound investment. The layout in an investment property can be changed, but those kinds of renovations are costly and the ROI is diminished. No matter what condition a property is in, cosmetic fixes can get you more rent and more resale value, but not if you are having to knock down walls, relocate plumbing and electrical lines.

And the third major factor to consider is to be sure there are NO RESALE OBSTACLES THAT CAN’T BE FIXED. For example a 2 bedroom home in a family oriented area will be harder to rent or resell than a 3 bedroom. Another example of a resale obstacle that can’t be fixed is inadequate parking for tenants. I recently considered purchasing a condo which needed gutting. That was not a problem. But when I phoned about the parking arrangements the property management company told me there was NO parking with this unit. Street parking only diminishes your prospective rental pool and limits the buyer pool for resale.

So after you get your financing in place and you begin to search for a property, consider these 3 main factors, LOCATION, LAYOUT, RESALE OBSTACLES. This will get you off to a great start in choosing your next real estate investment.

CONGRATULATIONS to Lily S of Kingston, ON – the winner of the $50 RONA gift card!

A BIG thank you to Lily, and to all of you who “liked” my REALTOR page.

My business continues to thrive because of the support of those, like you, who recommend my services. Your greatest compliment is a referral.

All about you. Really.

Melody

HALLELUJAH –201- 10529 93 St is DONE!!!

The furniture is set up, the blinds are installed, the bedding is on the bed, and the decorative touches and stocked kitchen complete our newly-renovated, centrally-located 1-BR, 1 Bath condo unit. All that is left to do is to find that perfect (lucky!) renter.

Here is the link to view the rental advertisement. –

https://edmonton.rentfaster.ca/edmonton-apartment-for-rent/boyle-street/newly-renovated-fully-30571

ps. Tell your friends and family…spread the word! 🙂

I’ve also included a few snaps, here (I think it turned out fabulously!):

AND, I haven`t forgotten – At the beginning of this adventure, I promised that if you `liked` my facebook page, that I would include you in a draw for that $50 Rona gift card, so….(DRUMROLL)

I will contact the winner in the next few days.

Thank you for following me through all of this. So, you might be asking, will we continue our annual trend of condo purchase fix-er-up-ers.

Ask me next year, and stay tuned…

All about you. Really.

Melody

We are SO close! All that’s left to complete the condo is to give it a through clean, spit-shine, then to off-load and set up the furnishings to stage it for advertising. Renters, on your marks, get set….to view the cutest, most complete little 1-bedroom in central Edmonton. BIG reveal coming SOON…! CHECK BACK… So, as I did a walk-through yesterday, I snapped my pictures and had to chuckle again – feeling very self-satisfied – when I took stock of all of the fabulous “finds” we were able to unearth through my determined, ruthless and disciplined commitment to kijiji and Re-store shopping. While my contractor questioned the value in the end of using some of the older fixtures and materials in the reno, and wondered if more money may have been spent on time to install some of these, I still maintain – even, simply from an ethical stand-point – that re-cycling and re-using over purchasing new, at least SOME materials and furnishings can, indeed, yield savings AND gave a sense that wise and responsible choices have been made. It feels great! Take a look, room-by-room:

DONT FORGET – your chance to win the $50 GIFT CARD for RONA. I am extending the deadline… All you have to do is “Like” my REALTOR(R) page on FACEBOOK by August 15/ 15. https://www.facebook.com/melodykilbank?ref=hl All about you. Really. Melody

No matter how organized you are and even if you have a project plan, there is always things in a renovation which are unique and can set things back on the time line.

This project there have been 2 concerns which took longer to resolve than hoped. One was the bath tub and the tub wall surround. A mistaken purchase on Kijiji, because I didn’t know much about surrounds, a replacement tub which was 59.5 inches and didn’t come with a wall surround, and a mistaken purchase for a new surround which didn’t fit because it was 60″ and finally….the right solution. The tub it in and walled!! Pictures to follow next week!!!

The second concern has been repairing the gypcrete flooring surface. There had been some spots where there was some erosion which we had to fill in before flooring. My contractor and I did some research through concrete companies and gypcrete companies. We finally have the answers to using the right product to fill the spots! The floor is patched properly.

That being said there has been significant progress this week! So exciting!

The flooring is in!!! That means as of now every surface of the unit has been redone! What a difference!

The cabinets are in their final resting place and secured!

Next week we hope to have final pictures for you before we stage it!!!

Stay tuned!