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Lush, rolling lawns. Beautiful estate homes, winding boulevards, esteemed neighbours and good private schools. Vancouver’s geographic heart lies between Queen Elizabeth Park and Arbutus in the pristine residential neighbourhood of Shaughnessy.


Created as a premier residential subdivision in 1907 as competition for the West End, Shaughnessy has retained its significant heritage value and distinctive allure for over a century. Originally developed by the Canadian Pacific Railway when the provincial government gifted the CPR 6,000 acres of prime land in 1885, of which they chose Shaughnessy Heights as the best location for their high class subdivision. Stately homes, well-manicured grounds and generous lot sizes are neighbourhood trademarks. As is the absence of a real commercial presence. If it’s a true suburban feel in the middle of it all you’re searching for, then Shaughnessy offers the privacy you’re after among its elite neighbours. Bordered by the Arbutus shopping district, VanDusen Botanical Garden and bustling Cambie Village on the North East side, desirable amenities are never far, however.


Shaughnessy remains one of Vancouver’s best examples of a planned community. As it should be: the CPR spent over $1 million developing the site, which was above average for the day. Named for the CPR president Sir Thomas Shaughnessy, who in turn named several main streets in the area after CPR Directors (Angus, Marpole, Homer, Osler and Nanton), Shaughnessy is also home to two of the city’s most well-known properties: Hycroft Manor and Glen Brae. Hycroft was the largest and most expensive mansion in the city when it was constructed in 1909 and its owner, industrialist A.D. McRae hosted Shaughnessy’s annual social event of the year: the New Year’s Eve costume ball. Glen Brae is now known as Canuck Place, one of the world’s leading hospices for children.


The unanimous vote by city council last fall to designate Shaughnessy Vancouver’s first-ever heritage conservation area is an effort to preserve the area’s rich architectural history that ranges from Tudor Revival to Craftsman and Colonial Revival. Truly one of Vancouver’s gems, Shaughnessy’s rich history adds to the charm of living in one of the most beautiful neighbourhoods in the Lower Mainland.


Keep an eye out for our listings in prestigious Shaughnessy! You can always contact us for a consultation, as well.


Photo courtesy of Miguel Ortiz
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Floral artistry is more than simply arranging a few blooms in a vase. Consider: colour, texture, variety, size… the perfect arrangement is the culmination of nature’s most beautiful gifts through one person’s artful interpretation: the florist. From freshly gathered garden blooms to classic bouquets and modern arrangements, the design is meant to give a visual narrative. In this case: one of love and gratitude for the most beautiful woman in your life: Mom.


We’ve sourced some of the best florists in Vancouver so you can gift her with something as unique, lovely, and authentic as she is. Order soon, we’re sure these artists will be busy come Sunday, May 8th!


1. Bird On A Wire Creations has joined with Bouquets by Mary for a special Mother’s Day pop-up shop Saturday, May 8th from noon-4pm. You can also pre-order these Mason Jar Bouquets online. These cheerful, rustic creations are the perfect ‘thank you’ to mom for $25.

2. Interior Flori offers exquisitely designed bouquets and arrangements by award-winning Stephen Kuo. The unassuming W. Broadway shop is packed with stunning blooms for your choosing, and Kuo, who recently designed centerpieces for Queen Elizabeth’s youngest son, Prince Edward, is as happy to perfectly finish your bouquet with wrapping as he is to offer up knowledge on his passion.

3. Georgia Straight “Best Of” winner, The Flower Factory was voted by Vancouverites as the Florist in town. Their retail location on Main St. has served up beautiful blooms for nearly twenty years, their dedication to creating unique, client-centric arrangements part of their success.

4. Conveniently located in the heart of downtown, Choice Flowers is another of the city’s long-serving florists that delivers perfection every time. Their variety of local and imported flowers ensures there’s something for everyone.

 

5. Personal service and attention to detail are paramount at Blumen Floral & Gift Boutique. A Cambie
neighbourhood staple, Blumen even offers a weekly delivery program, so Mom can have fresh flowers all year long!


What’s your favourite flower shop in Vancouver? Share with us and post your best Mother’s Day bouquets to our Facebook page.


Image courtesy of Alice Achterhof
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Jewish Independent newspaper clipping feat. Andrew and Jill Hasman

 

Thank you to the Jewish Independent for featuring us in last week's paper! If the image is difficult to view, we've transcribed the exerpt below. 

 

"A power couple in real estate: Andrew and Jill Hasman are experts in West Side homes.

 

Handsome couple. Jill and Andrew Hasman, eh? And a handsome couple handsomely coupled in marriage as they are partners in their highly successful real estate firm, Andrew Hasman and Associates, serving this community for more than 20 years. “And we’re also married 20 years,” adds Jill.


Andrew, born in England. Jill, in Winnipeg. But this town is where they met, married and merged professionally. Inevitable, I figure, that Andrew and Jill chose professional independence. “I’m from an entrepreneurial family,” says Andrew. “My parents were always self-employed,” says Jill. Like parents, like progeny!


As real estate-nik partners, Andrew explains he’s more the business side ... “market specifics and property valuations.” Jill ... “I tune up the house for resale, provide the craftspeople and coordinate the necessary tasks to get a home ready and in order for topdollar resale.”


Metro Vancouver is the Hasman beat, so to speak, “but our expertise is in West Side home sales,” concludes the couple. And I’ll conclude as I began ... a couple, indeed, most handsome!"

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Vancouver is one of the best cities in the world for outdoor recreation. One doesn’t even need to get into hiking, cycling, or any of the other favourite Vancouverite sports to get in on the action. Simply lace up your walking shoes--you’ll need a good pair, preferably water-proof. Choose your destination, and be prepared to see a whole new world you may have missed outside the car window on the way to work. There are art and nature walks in nearly every neighbourhood, for every mood. Happy Exploring!

 

1. The Downtown Art Walk is a bit of a Choose-Your-Own-Adventure. Experience downtown’s outdoor art gallery that takes you from mosaic art tiles all around the core and electrical box murals on Granville St. by Emily Carr students to the more grand: Nike Goddess of Victory at the intersection of W. Cordova and Thurlow in celebration of the 2010 Olympics, and The Drop at the Convention Center. For more hidden gems in plain sight, click here.

 

2. Alternatively (or if it’s raining), download your Gallery Guide and plan a route with such illustrious stops as the Bill Reid Gallery of Northwest Coast Art, the Pendulum Gallery ingeniously placed under the glass atrium hall of the HSBC building, and the Howe Street Gallery of Fine Art which contains local and Canadian works, as well as paintings and sculptures from around the world.

 

3. Fancy a drive before your walk? The Art Walks in North Vancouver are not to be missed. Over 100 public works of art decorate the North Shore alone. Make your way along nature trails, public walkways, through parks and even in shopping plazas. Get your self-guided public art tour maps for Lower Lonsdale, Lonsdale Ave., and the Lynn Valley Public Art Experience here. There’s even Public Art Geocaching for the more adventurous!

 

4. Nature Meets Art Walks at three of the cities best and biggest parks. Queen Elizabeth Park offers not only the Quarry Gardens, rolling lawns, a rose garden and arboretum, Queen E also features several sculptures and a live Painters’ Corner in Spring and Summer for wanderers to watch art in action. The famous 28km seawall surrounding Stanley Park takes you past beaches, gardens, numerous monuments and sculptures, and BC’s most visited tourist attraction: the nine totem poles at Brockton Point. Lastly, a trek through the University endowment lands in Pacific Spirit Park are always a sure-fire way to experience the lush beauty of nature. If you have time, UBC’s Museum of Anthropology is here, and a must-see.

 

5. If it’s architecture you’re after, GPS My City has a great map for some of the city’s coolest buildings and landmarks. There’s also one of Vancouver’s oldest section of seaside greenway to discover: the South False Creek Seawall, which dates back to 1975. The 3km walk takes you from Science World to the bustle of Granville Island, and offers a different perspective of our fair city.

 

What’s your favourite walk to connect with the essence of Vancouver? Share with us!

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Vancouver

Spring is out of the gate at top speeds. The March numbers are in, and they’re breaking new records. Residential property sales in the Lower Mainland totalled 5,173 this past month: a whopping 56% above the 10-year sales average for March. They were up by 24% from February alone (4,172 sales), and 27.4% up from the 4,060 sales in March 2015.


“Strong job and economic growth in our province, positive net migration and low interest rates are helping to drive this activity,” said Real Estate Board of Greater Vancouver’s new president, Dan Morrison. Morrison, who started his tenure as the REBGV’s fearless leader last month, went on to explain that the demand is broad-based. Meaning sales aren’t concentrated in one particular neighbourhood, which is great news for sellers looking to get their properties on the market.


There were a total of 6,278 new listings in March, covering detached, attached, and apartment properties across Metro Vancouver. It’s a moderate 5.2% increase from the same time last year, and an 8% increase from February. What’s interesting, is that the total number of properties for sale is 7,358; a dramatic 40.5% decline from March 2015.

The Rest At a Glance:

Benchmark price for all residential properties: $815,000
23.2% increase from March 2015


Benchmark price for a detached property is $1,342,500
27.4% increase from March 2015


Detached property sales totaled 2,135
24.8% increase from March 2015


Benchmark price for an apartment property is $462,800
18.8% sales increase from March 2015


Apartment property sales totaled 2,252
38.4% increase from March 2015


Benchmark price for an attached unit is $589,100
20.1% increase from March 2015


Attached property sales totaled 786
8.9% increase from March 2015

 

For a complete comparison, visit rebgv.org. Want to sell, buy, or require a consultation? Contact me today.


*REBGV Editor’s Note:  Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.


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home staging

The industry secret to a successful real estate sale is home staging. Beyond the careful market research and hiring a good realtor that homeowners need to do in preparing their home to list, professional staging can be the hat trick that gets them the top dollar they’re asking for.


Your house could be spotless, have every new appliance and a manicured landscape, but when it comes to the small details of what will entice potential buyers into believing your home could be theirs, staging is what will go that extra mile to get those better offers. Whether it’s that personal family photo versus an eye-catching piece of art or your well-loved furniture compared to the luxurious dining set, master bedroom suite or living room accents of your buyer’s dreams; it’s a Stager’s job to make those dreams come true--even if just long enough to get that above-asking offer.


Revamp Home Staging: “making the most out of your property”, states one of Vancouver’s premier companies in the field. With over 2,000 homes, display suites, condos and penthouses furnished and decorated since 2003, Revamp enhances the uniqueness of each property to its maximum potential with one goal in mind: to sell fast, and to sell for more. Nothing is outsourced, and thus co-founders Michael McNamara and Rien Sharma and their team of interior designers are able to work their magic on tight deadlines. Experienced in the latest design trends and colour palettes, they will transform your home to perfection.


Another of Vancouver’s staging companies that aims to wow is Flüff. Its extensive 15,000+ square foot warehouse chock full of unique furniture, art, and accessories is all arranged by easy-to-use colour stories. Their expert team of interior designers, “TheFlüffians”, are ready to assist you under the guidance of owner Patti Houston and make the process enjoyable and productive. From homes to film sets, Flüff is a stager’s paradise; whether you’re already working with an interior designer or a homeowner looking to get a handle on it yourself, everyone is welcome.


Going it alone? Start with the top three pro tips from Patti Houston, Owner of Flüff Designs:

1. A great rule of thumb is to hang art 60" from the floor. Lower hanging art actually makes ceilings appear higher.

2. Don't overdo accessorizing! Know when to stop. It's also important to use greenery in every project; nothing beats nature.


3. Never compete with a view!


See the proof of home staging success in a past sale of ours. $5000 in home staging can easily add $50,000 to the selling price of your home. It's that effective! We’re always available for your questions: contact us today or find us on Facebook!


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Vancouver

If it’s been a while since you listened to the radio, make the next time you turn up the dial The Early Edition with host Rick Cluff on CBC Television. His take on local news as well as the influence of international affairs on our local communities in the Lower Mainland are spot on. One particular podcast caught our attention recently, when Cluff spoke with several experts around the globe about the current state of our real estate market. The round table discussion puts an interesting perspective on our market as part of the whole. Read on, or listen to the full podcast here.


Rick Cluff: There’s much debate on the role of foreign investment in Vancouver’s real estate market. We don’t collect data on how many homes are bought by overseas buyers, though the BC government says it’s going to begin doing that. But, we do know the top international wealth managers are advising clients to invest in Vancouver real estate and our city just topped places such as San Francisco and Sydney as the #1 luxury real estate market in the world. CBC’s Catharine Rolson took a trip around the world to find out how the debate over foreign ownership is playing out in other cities, and what they’re doing about it.

Catharine Rolfsen: Before we head overseas, let’s start a little closer to home with our neighbours to the south. I spoke to Kathleen Pender, business columnist with the San Francisco Chronicle and she says prices in that city have gone up astronomically as well.

Kathleen Pender: Many people feel like it’s a combination of people with high paying tech jobs and people coming from overseas with lots of cash wanting to invest in our market. It’s as much as an investment as a place to live. Those two factors are making housing unaffordable for most people in the Bay area.

CR: Sound familiar? Kathleen says she’s interviewed realtors in parts of the bay area who say that 20-30% of their sales are to foreign buyers.


RC: So what are they doing in San Francisco about foreign ownership?


KP: Nothing! As far as I can tell there doesn’t seem to be any effort to find out how many are buying or restricted in any way which is kind of surprising because there’s been a lot of protests against the tech people. In the Pier area there’s a lot of animosity that all these high paid tech workers are driving up the costs for everybody. We’ve had protests in front of school busses and that sort of thing.


CR: Isn’t that interesting to hear the bulk of anger of housing prices is directed towards tech workers!  

CR: Last year the UK introduced a hefty capital gains tax on sales of foreign- owned residential property, but really that move just leveled the playing field between overseas investors and British residents.

Daniel Bentley with the London Think Tank Cevita says the political attitude in London is to really embrace foreign real estate investment. But another conversation is beginning to emerge,  –and that’s the fickle nature of foreign investment in real estate.

Daniele Benltleu: The danger of attracting hot money into London is that when it was good, it was good. Now it might be turning and if people get scared off by that, things can quickly go wrong.

CR: And that’s a discussion that’s starting to emerge in Vancouver too: on the impact on our local economy if foreign investments begin to back out of town.


RC: So it sounds like London and San Francisco are pretty much taking a hands-off approach when it comes to foreign investment. Did you find places in the world that are cracking down?

CR: We've heard on our program people are citing the example of Australia. I spoke to Alison Chung, she’s a real estate reporter for a news court in Australia. She says the debates in cities like Sydney can sometimes take on a racial tone.

Allison Chung: There is a bit of a Chinese community in north Sydney and there was a man who was protesting among them. He didn’t realize there are a lot of local Chinese people living there who have probably been there for the past two to three decades.

CR: Of course we hear that concern in Vancouver, too, about the danger of conflating international investors with Chinese-Canadian residents or new immigrants.


RC: So what’s Australia done then about the actual issue of foreign ownership?

CR: Foreigners are only allowed to buy new properties, hey have to seek official approval to do so, and it costs at least $5000 just to make an offer. But the challenge is enforcing the rule. Last year, Australia stepped up its crackdown on illegal property purchases. Foreigners who break those rules can face up to 3 years in jail and lawyers and realtors can face penalties as well for helping them. Allison told me about a recent high profile case where the government forced a sale of a $39mil mansion that was bought illegally by one of China’s richest men. It showed the government is actually trying. But Allison says agents tell her that many other such sales go under the radar and officials have limited resources to chase down those kinds of transactions.
 

RC: So then is Australia a model that Vancouver should be considering or further investigate?


CR: I had a really interesting conversation with Allison comparing the rules in Australia with those in Canada.

AV: Canada doesn’t seem to have any restrictions or any taxes for foreign buyers. That’s definitely the first step to enforcing some form of regulation, but I wouldn’t say Australia is the perfect model. We’re definitely still struggling ourselves. 
 

CR: So if we do decide foreign ownership is a problem that needs solving here in Vancouver, I’d say Australia can definitely offer some ideas, but also some lessons: there is no perfect solution.


What’s your take on foreign investment in Vancouver? Let us know in the comments!


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orchid

Spring inspires us to clean out, clean up, and start fresh. Whether it’s indoors or out, condo, townhouse, or detached home, we’re instinctively driven to welcome the sunny season by beautifying our surroundings. We’ve rounded up the best places and society sales for obtaining everything you need to cultivate the perfect garden, be it a planter to a full-blown yard.


1. Orchid lovers flock to VanDusen Gardens every year for the annual Vancouver Orchid Society’s Show and Sale, March 25th - 27th. Notoriously finicky plants, these gorgeous blooms pack a lot of punch, transforming small spaces with their refined elegance and making them worth the extra effort. An excellent touch if you’re planning to sell.

2. One of the few garden centers left in the city, Art Knapp Plantland on S. Granville is your one-stop shop. Find everything you need to start a garden from scratch: seeds, bulbs, indoor/outdoor plants, tools and garden accessories. Their knowledgeable staff is on hand to help plan your planting schedule and answer any questions you might have.

3. Get it straight from the source at Vancouver’s most beautiful and iconic garden: the annual VanDusen Plant Sale for patios, pots and planters is on April 24th from 10am - 4pm. Get all of the plants and information you need for gardening in small spaces.

4. The Lower Mainland’s other great source for all things garden is the Prickly Pear in Steveston, on the edge of Richmond. Known for their amazing hanging baskets that are perfect for small-space living, this full-service garden center has plenty else to choose from. Their wide assortment of containers, seasonal flora, and eclectic mix of accessories and giftware ensures your garden isn’t short on style.

5. Feel like you’re lacking the green thumb to cultivate your dream spring garden? Choose from VanDusen’s many workshops. Taught by the experts to get hands-on knowledge on everything from understanding your soil, growing veggies in containers, to the top 25 plants for easy maintenance. You can see their full course schedule here.

 

We’d love to hear about your gardening adventures in the comments below, or post your trials and triumphs to our Facebook page. Happy planting!

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Easter brunch

There’s no better way to celebrate a long weekend, and the one involving chocolate egg hunts and the elusive Easter Bunny in particular, than with a leisurely brunch at one of Vancouver’s best eateries with your nearest and dearest. Whether you’re in the mood for an adult-only or more family-friendly vibe, we’ve got a place for you in mind.


1. The open-concept Café Pacifica at Vancouver’s Pan Pacific hotel in Coal Harbour offers up amazing views of the water and the North Shore. Watch ships pass by as you dine on their exceptional Easter Brunch menu featuring everything from a sushi bar and extensive salad options to classic brunch favourites and a children's menu. Served 10:30am - 2:30pm, children under 5 are free.

2. Brunch at either of downtown Vancouver’s Fairmont locations is always a treat, but this luxury hotel chain has pulled out all the stops for Easter with Bunny Bunches at all three of their lower mainland locations. ARC at the Fairmont Waterfront is also offering Easter egg decorating alongside brunch, while the Fairmont Hotel Vancouver is having a special Easter Afternoon Tea service. Check the Fairmont site for times, prices, and reservation information.

3. Make a day of it and head up to Squamish for the Second Annual Easter Egg Hunt + Brunch at the Sea to Sky Gondola. Two seating options (10am and noon) with an Easter egg hunt, DIY card-making and wooden Easter egg decorating for the kids make this the Lower Mainland’s premier family events for the weekend. Reserve your tickets early!

4. Nestled in the heart of the city at the Four Seasons Hotel, the YEW Seafood + Bar’s Easter Brunch Buffet, or “Feaster” as it’s known to insiders, pulls out all the stops with a mouth-watering display of fresh, seasonal seafood, build-your-own-float and sundae stations, and other more traditional holiday favourites. Join in the festivities from 10am - 2:30pm. Make sure to reserve a spot early.

5. Enjoy Easter in Neverland; the whimsical Neverland Tea Salon in Kitsilano, that is. Their special Easter High Tea menu includes house-made finger sandwiches, scrumptious pastries, and an extensive tea menu, as well as gluten and dairy-free options.


Happy Easter from Andrew Hasman and Associates!


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Are you contemplating joining the market this spring? The REBGV recently laid out the pros to professionals establishing your property’s selling price. The article breaks-down the key factors for determining your home’s current market value which your realtor utilizes to ensure your asking price is one you can live with, while attracting the best possible offers. From there, you can get an idea where your property value is in relation to the rest of the market with the February stats.

 

Supply is still short of demand in the Lower Mainland real estate market. February proved to be the highest selling one on record in Metro Vancouver at 53.6% above the 10-year average. The month closed with a total number of residential property sales at 4,172; that’s a 36.3% increase from February 2015.

 

The 65.6% sales increase from January 2016 suggests the market is already gearing up for its busy season: Spring. “We’re beginning to see home listings increase as we head toward the spring market, however, additional supply is still needed to meet today’s demand,” said Real Estate Board of Greater Vancouver’s president Darcy McLeod. Considering the total number of properties listed on MLS® is 7,299, a 38.7% decline from February 2015, it still remains a seller’s market.

 

The Numbers At a Glance:


Sales-to-Active-Listings ratio: 57.2%


Benchmark price for all residential properties: $795,500
22.2% increase from February 2015


Benchmark price for a detached property is $1,305,600
27% increase from February 2015


Detached property sales totaled 1,778
37.2% increase from February 2015


Benchmark price for an apartment property is $454,600
43.9% sales increase from February 2015


Apartment property sales totaled 1,790
43.9% increase from February 2015


Benchmark price for an attached unit is $454,600
17.7% increase from February 2015


Attached property sales totaled 604
15.9% increase from February 2015


For a complete comparison, visit rebgv.org. Want to sell, buy, or require a consultation? Contact me today.


*REBGV Editor’s Note: Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.


Photo courtesy of: Gilad Rom

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Saltspring Island

Sometimes a little R & R is in order, even if a big vacation abroad isn’t. Being in the midst of buying or selling can be an especially stressful time, or simply long days at work with little time at home can put one over the top. Why not treat yourself to a Staycation? Doing something just for you once in awhile can clear the cobwebs and rejuvenate for a higher quality of life and better productivity. Here are a few of our favourite staycations in the lower mainland:


1. Enjoy a leisurely a bike ride around Stanley Park. Pack a picnic, stop in at the aquarium, and take in the magnificent views. The 11km seawall winds around the park, giving you 360 degree views of the harbour, mountains, downtown and west and north shores. Getting in touch with nature combined with exercise will boost those endorphins and have you refreshed in no time. Bike rentals available.

2. Continue the tourist in your own town adventure with a Geocaching adventure. Using your GPS, you’ll go on a “treasure hunt” for hidden ‘cashes’ all around the Greater Vancouver Area. The idea is to get to know your city while looking for these hidden stashes, of which there are reportedly over 4,000 of in Vancouver! We recommend stopping in at La Casa Gelato as your reward. With over 218 flavours of gelato made on site, you could spend an entire afternoon sampling alone.

3. If you’re in the mood for something a little more low-key, why not re-discover Granville Island. Indulge in a night at the recently-renovated Granville Island Hotel. Featuring plush accommodations and the delectable Dockside Restaurant, you’re free to roam the island’s wealth of artisanal offerings from and even take in a yoga class with views of False Creek before settling in for the night.

4. Discover Deep Cove. From lush parks and trails to kayaking and cultural events, this little oasis is a short, twenty-minute drive from North Van. Known as “The Cove” to locals, this hidden gem at the foot of Mt. Seymour feels a million miles away from the city; perfect for a day trip away from reality.

5. For an extensive day trip worth the ferry ride, Salt Spring Island boasts being one of the warmest places in Canada during these long winter months. With a plethora of artists’ studios, spa options, and restaurants, this tiny island will enchant you to come back again and again.


Any hidden gem getaways we missed? Share in the comments below!

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Vancouver evening downtown

If you ask a dozen so-called real estate experts and financial planners on whether it's the right time or how to invest in real estate, you’ll receive a dozen different opinions. It’s all about your personal needs and how you invest. If you play your cards the smart way, investing in real estate can lead to a nice, passive income stream for your retirement. It's also an ideal way to leverage and borrow against when values rise so you can buy more property.

 

Three ways to owning real estate are a) sole purchase and ownership of property, b) form a limited partnership to pool resources and enable the purchase of more expensive property, as well as share risks and returns, and c) indirect ownership of property by investing in REITs where you own shares. Today, I'm focusing on direct ownership of real estate and what options you have. Whether you're a seasoned investor or a novice, there's never really a better time to begin long-term investing because the market always shifts.

 

Before setting off down this path, speak with your bank or a trusted mortgage broker. Rules for down payments on investment properties differ from if you're buying a principal residence. In Vancouver, a minimum 50% down payment is required to generate a break-even monthly cash flow. With property prices so high in the lower mainland, the idea of buying a property and generating cash flow is a challenging feat unless you have a sizeable down payment. The biggest question to consider is: if I buy this property today, do I need an immediate income stream or am I fine with a break-even or possibly a negative cash flow for the first few years? If you do generate a rental loss, this can be used as a tax write-off at year’s end.

 

In the current financial climate, a lot of real estate investors in the lower mainland are buying with the expectation that property values will continue to rise, and not for current cash flow. This mind-set makes them more “real estate speculators”. If you’ve bought property in the lower mainland over the past 15 years, you've most likely seen a sizeable increase in its market value. Speculators, for the most part, have done very well. It's all about timing. If you bought a property in Vancouver in mid \-2007 and then sold it when the market fell by 20% in 2008/2009, you may have taken a loss. Buying real estate with a longer time horizon is a safer bet, allowing you to ride any market downturns. Short term investing is a lot riskier.

 

Buying property in Vancouver right now will typically generate a 2-4% Cap Rate depending on a number of factors. Many investors say this return is too low considering the risks and aggravation of owning a rental property. Other investors are just fine with these returns as they’re more focused on the expectation of rising market values. In the end, it’s your perspective that matters and is a personal decision.

 

If real estate is an attractive addition to your investment portfolio, we’re always available to offer professional perspective and tailored advice to your needs. Contact us to schedule a personal consultation and let's see how, together, we can create wealth and passive income for you and your family.

 

Here’s to a healthy and prosperous Spring 2016!

 

Andrew & Jill Hasman

 

(Photo: Alex Costin)

 

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