Curtis Leibel 780-438-2500

“Financing” condition and “Property Inspection” condition tend to be the 2 most common conditions on purchase contracts in Alberta.   You can do a lot to help your lending potential (increase income, decrease expenses) but ultimately the lender has the final say on what you can or can not be approved before.

I bring this up, because sometimes there are other circumstances that may affect lending ability specifically when purchasing a condo.

Size of the unit is often a concern.  In fact, if the unit is under 500 sq ft, certain lenders may not approve the lending and thus result in the termination of the purchase. It is important to clarify this with your lender before putting an offer in.

Condo documents can also play a role in approval.  Buildings that have been subject to special assessments, or could be subject to one in the future, may be disapproved by the lender.  It is always a good idea to go through the condo documents with extra scrutiny just for your own purposes as well to avoid unexpected costs in the future.

Another thing they may look at is percentage of owners residing in property vs. renters.  If there is a disproportionate number the lender may see this as a negative.

The unfortunate thing when purchasing a condo is that often these things can be out of your control, so it is up to the lender to decide whether or not they approve of your purchase.  The best thing to do is to give them as much information as possible and the necessary time to examine everything sufficiently.

Last year saw the completion of my first international real estate investment.  After years of research and studying, I managed to narrow down my search to some land in Nicaragua.  A lot of thought went into this, and I encourage anyone looking to make an international purchase to consider some of the following items:

1) Cost of living- My goal was to find a holiday home which is also to be used as a rental.   If I were to spend significant amounts of time down there, I would prefer it not be to expensive to dine out/do activities/entertainment.   Maintenance costs are another thing to consider as well as costs of hiring a management/cleaning company.  This is one reason why Central America was so appealing.

2) Political Stability-  Of course any investment has risk, but one would like to limit the amount.  Having a stable government with an eye towards the future and promoting tourism is key.  Nicaragua, Costa Rica, and Panama are all appealing when considering this.

3) Accessability- If it is place you want to visit often, you must make sure it easy to get to.  By staying within the western hemisphere, you can avoid significant time changes which helps ease the travel.  As well, you should really track how long it will take you to get to your property from the international airport.  It may only be a 6 hour flight….but if its another 8 hours of bus/taxi/car travel, it really adds to the trip.

4) Growth- Of course this is the most important factor me.  Anywhere you invest you want to make sure there is room for your money to grow.  You never want to be nicest or biggest place on the beach as it is unlikely there is much more room for your investment to grow.  Start small and grow from there.

Right now, the building process has just begun for us in Nicaragua and Ill do a post in the future with an update on how things are going.  Stay tuned!

Some items that you will come across when purchasing or selling your home include chattels and fixtures.  I get many questions asking what they are and what the difference is.  As defined:

Chattel: an article of personal property, as opposed to real property; a thing personal and moveable; it may refer to animate as well as inanimate property; personal property which has no connection to real estate (Black’s Law Dictionary).

Fixture: an article in the nature of personal property which has been so annexed to the realty that it is regarded as a part of the land (Black’s Law Dictionary).

The big difference between the two is that chattels are MOVEABLE.  So, for some examples:

chattels – fridge, stove, washer, dryer, furniture, free standing shelving/bookcases, drapes

fixtures – window covering  hardware,  mounted shelves, cabinets, mirrors, light fixtures.

It is important to note that in any real estate purchase CHATTELS are not included unless specified in the contract.  Conversely, any FIXTURES are to be included in the purchase unless otherwise stated.

One problem I encounter when I work with buyers or sellers of condos; is that of self managed condos.  That being a small condo unit that chooses to manage itself as opposed to hiring a management company.

There is nothing wrong with this in itself, and often can lead to cost savings and better management in certain cases.  In other cases however, it can lead to gross mismanagement and money wasting.

The important thing to remember, is that by law – all condos need to follow certain criteria. (ie. they need to have proof of estoppel, insurance and compliance of bylaws, etc…).

When purchasing a self managed condo, it is important to ask these questions before proceeding with anything:

How is management conducted?

Are there meetings between the owners?

Who signs estoppel certificates and are they provided?

How is insurance for the building handled?

Where are the minutes?

Is there a reserve fund?

If you cant get a clear answer to all of the above questions, it may be wise to avoid the property altogether rather than dealing with potential issues that could arise during conveyancing.

Above all, if you have any questions regarding these matters, feel free to contact myself, or any certified Real Estate member that could help lead you down the right path.

Great news for all you first time home buyers out there – you can now get a $5000 tax credit when purchasing your new home.

All you have to do is meet the following criteria:

• you or your spouse or common-law partner acquired a qualifying home; and
• you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

If so, under line 369 on your tax return, you can claim up to $5000.  Just another great way our country is encouraging first time home buyers to get into the market.

2014 was another booming Real Estate year for the province of Alberta.  According to recent MLS stats, Alberta saw an increase in number of sales again in 2015 of 8.3% compared to that of 5.1% of the national average.  As well, average prices in Alberta rose again by 5.2% to just slightly over the 400k mark.

So what does this mean for the future?  Its no secret that in a community that relies so heavily on the oil industry, plummeting oil prices can be quite worrisome for all areas of industry, including Real Estate.  Gregory Klump, the chief economist of the Canadian Real Estate Board, has this to say:

“It’s not clear how far oil prices may drop or for how long they’ll stay down. How that plays out may affect the outlook for interest rates, job growth, consumer confidence, and sentiment about making major purchases.”

However, that being said, interest rates still remain at historic lows, and real estate activity is holding strong.  The CREA is still predicting sales activity growth again next year in Alberta, albeit only 0.1%.  Alberta is also expected to see the greatest price increase at 1.9% compared to the national average of 0.9%

What does it all mean?  Well, it is impossible to know what 2015 will bring.   All we can do state the facts at this point – Alberta still has one of the strongest economies in North America, oil prices SHOULD eventually fluctuate back towards the norm, and we currently continue to see low interest rates which encourages buying.  If this continues to be the case, I would suggest we can continue to predict further growth in our province throughout 2015.

All stats taken from:   http://creastats.crea.ca/natl/

Hi everyone — Ill be doing an open house at my beautiful listing at 4409 Wingfield CA so come drop by and check it out!

My fantastic new listing is now completely finished in the widely desired Windermere area.  Almost 3100 square feet of custom building.  The features are too many to list on this blog alone, but includes:  3 car garage, walk out basement with nanny suite, 6 bathrooms, 4 bedrooms upstairs and one in the basement and backing onto green space.  An incredibly unique building with so many energy efficient upgrades including 2X8 framing, underslab insulation, extra attic insulation, triple pane windows, and a HRV unit – you can have it all and still be enviromentally friendly.    Don’t delay in viewing this, it is truly one of a kind and wont be around long.

With the flooding occuring in Calgary I have been recieving alot of questions about Real Estate.  Along with the devastating losses of personal items, people are also concerned about the loss of Real Estate and how the economy will be affected by it.  While it is impossible to predict what lies in the years to come for the affected areas, it is not inconcievable to think that housing prices in the immediate area will decrease dramatically as it slowly rebuilds/renews itself, while prices in surrounding areas will increase as a result of a shortage of housing with many people being stranded.  It is unfortunate to think about this early in the recovery process and only time will tell as things progress.

As for transactions that were pending (ie. sold but just waiting for the possession date) many people are wondering what will happen with the sale of their existing homes that may no longer exist, or need extensive repairs.  As is, the current rule with insurance companies is that if flooding is due to back up of sewer, claims will be covered, whereas any flooding that occurs through windows and doors is considered an act of God and therefore not insurable.  It is up to the insurance companies to decide who is covered and who is not.  Ultimately, the government will be providing extensive flood relief to individuals affected as well, however in many cases this will not be enough to cover the majority of expenses.

As for pending transactions, all affected individuals are advised to contact their Realtor and each transaction will be dealt with on a case by case basis.  It is impossible to determine how each one will play out and depends more on how the clients wish to deal with it.  If you have any questions yourself about what may happen in the case of natural disaster, feel free to contact me to discuss further.