Own ½ a Vancouver Special, Get all the Benefit

Looking for the best deal and investment possibility in Vancouver? Want to own a home and land,  but only have a down payment for a Condo or townhouse? Consider instead buying a Vancouver Special, with a partner.

Once you look past the exterior, Vancouver Specials turn out to be one of Vancouver’s great housing gems.  Built primarily in the 1970s, Vancouver Specials usually have two full height suites of between 900-1200 sq ft each, two or three bedrooms per floor.  They are characterized by their low-pitched roofs and porches on the front of the houses. Vancouver Specials are much sought after by renters who appreciate the full height ceilings on the lower level. These homes are ubiquitous in much of East Vancouver and Burnaby, and due to their aesthetic reputation a good deal can often be found.

Designed as an ideal home for a single family, with the benefit of a mortgage helper, Vancouver specials are an great alternative to strata living.  Whereas a 900 sq ft condo in East Vancouver may cost $400,000 and a 1200 sq ft townhouse or ½ duplex $600,000 ( $450 – $500/sq ft), a 2200 sq ft Vancouver Special can net you two 1200 sq ft dwellings for around $850,000 (less than $400/sq ft) and there are no strata fees. Plus you get a yard, garage, only have 1 partner, and more. Purchase a Vancouver Special with a friend or another family and make your money go farther!

Your partner can either be another family or an investor!

Due to the lower price per square foot as compared to condos, co-investing in a Vancouver Special can be a strong investment for your partner. These investments can be cash positive from day one and return over 7% annually to the investor, even in a flat market.

So whether your co-purchaser will be living in the home or investing, consider a Vancouver Special as an appealing and affordable housing choice in Metro Vancouver.

Interested, but don’t have a partner who you might purchase with?

I can help bring you together with another like minded buyer. Be in touch for more information.

Collaborative Purchase takes many forms and reaps many rewards

Historically collaborative purchases have taken two forms. Co-ops where groups of people purchase land or property together, and co-investment from friends and family. While co-ops have proven to have a number of economic challenges, they still present an opportunity for groups of interested home owners especially those interested in new developments in alternative living.

More exciting in my opinion is the opportunities for cooperative purchase of a single family home shared between 2 people or families. Vancouver is replete with homes like the famous Vancouver Special which provides for two full high suites between 900 – 1200 sq ft. These homes are often priced up to 20% / sq ft below comparable condos, duplexes and townhouses, plus you don’t have any pesky strata payments.  Effectively form your own duplex and save up to $100,000 each.

Co-investment continues to be a viable option for people in Vancouver looking to get into the market for the first time. Many people’s investments today are only paying 1-4%, I can show you how you can offer your investor 7.6% returns based on today’s interest rates.  By leveraging your co-investment you can get more space for less money and own a home, instead of a condo.

Your social network is your greatest asset, put it to work for you to create the home, community and future you are seeking.

Good homes for young families is a lot more than low price / high square footage

Attending open houses of newly constructed townhomes in East Vancouver I see a lot of properties marketed for families that are totally inappropriate.  While the homes may be well priced and in a good neighbourhood, many have split their 900-1200 sq ft into 3 or 4 levels, others have no outdoor space, limited storage, etc!  These spaces are often well designed for a professional couple, but they are terrible if you have small kids who will constantly be climbing stairs, outgrowing clothing and wanting to play outdoors. At these open houses, 80-90% of the people who show up are young families, strollers or children in tow. So why do developers keep building these homes? And why do many Realtors think these homes are ‘family friendly’?

Helping a young family find the right home is difficult, and requires an in depth understanding of the needs of today’s family.  Of course price, size, neighbourhood and school catchment remain important, but a good agent can help a young family envision their home for years and decades to come and make the right purchase now.

• How close would you like to be to parks, services, transit, shopping, etc.?
• Where can you live surrounded by other young families?
• How can you get a home that can grow with you as your family grows?
• Do you need home office space?
• How large of a yard or garden do you want for your child(ren)?
• Are there any local sources of pollution or other dangers?
• How can you best leverage your down payment, your largest investment, to maximize your economic return?

Contact me to set up a conversation about what opportunities exist for your family.

What is Sustainable Real Estate

Many people ask me to explain my career, sustainable real estate. What is it and how is it different than any other real estate?

Sustainability consists of 3 elements; social, economic and environmental.  How we live and the homes we choose to inhabit can have a major impact on our lives and the lives of those around us.  When purchasing or designing real estate there is a lot more to consider than just the price and location, if you want your home to sustain you, your community and your planet for years to come.

In an ideal world, every buyer, seller and agent would be thinking about the values of sustainability in all their transactions, but we know they are not.  Having someone on your side who understands what a sustainable home is and how to find a home that matches your personal values, is a huge asset in making the most important purchase of your life.

Elements of sustainable real estate include
Many of these categories overlap. Fortunately, home purchasing is one of the categories where doing the right thing economically, socially and environmentally usual line up.

Social
Proximity to entertainment, community resources, parks and playgrounds, community centres, religious institutions, communities of personal interest, etc.
Neighbourhood collaboration and cooperation
Shared space, shared responsibility

Economic
Cooperative purchase and/or development
Rental suites / mortgage helpers
Making a sound investment in a volatile economy
Using real estate, renters, etc. to create wealth

Environmental
Proximity to amenities, shopping, entertainment, employment, parks, etc., ideally walking distance
Proximity to bike and transit routes
Rental suites / higher density living
Home energy efficiency
Green technologies such as heat pumps and heat reclamation, solar and on-demand hot water, etc.

How a House in Vancouver is Cheaper than a Condo, and a much better investment too!

When I bought my first property in Vancouver, people asked  me, why are you buying a house, shouldn’t you first buy a condo? My response was simple but confused everyone.

“I can’t afford a condo, I can only afford a house.”

For me, the issue was not down payment, fortunately I had that, the problem was that I had just moved back to Vancouver and had no job.

The great trick in the Vancouver housing market, especially for first time home owners and young families, is to skip condos, townhouses and 1/2 duplexes, and look for single family homes with 3 suites in them.  Forget mortgage helpers, think mortgage payers.

And the math is simple: (Numbers based on East Vancouver)
Rent – 2 bedroom condo = approx. $1500/ month, $0 Saved on mortgage
Own – 2 bedroom condo = approx $1900/ month, $600 Saved on mortgage
Own – 3 bedroom Home with 2 rental units
         = approx $1400*/ month, $1000 saved on mortgage
         (*$3400/ month - $2000/month rental income)

Pay less, save more, get more!

Owning a home, you will pay less month to month, you will save more when your mortgage is up for renewal, you can get more space, plus of course more independence, more potential for appreciation…

Of course, you do need that pesky down payment!

Contact Noam for help making your next home work for you.

Are their really investment properties left in Vancouver?

Yes, especially now, but you have to look carefully.

A careful examination of the Vancouver housing market shows tremendous opportunity for the investor.  A buyers market has forced prices down and left a large stock of available homes. Unfortunately, not all these homes are created equal and sorting through the myriad of single family homes to find the investment jewel can be tough.

Fortunately, good investment homes do exist that can bring CAP rates of 5-6% and ROIs of 15%+. Let Noam find you one of these homes, usually 3 suites with 6+ bedrooms, solid structures but often in need of cosmetic repair and better management. Some one will snap up these investors Jewels, it might as well be you.