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When homeowners upsize, they sometimes consider turning their old home into a rental property.  This month's article offers some insight if you’re facing this difficult decision.

There are also some body language tips that’ll help you tell if someone’s lying as well as some ideas for upcycling old household items into something new and beautiful!

Thanks so much for checking out this month's newsletter.  Please get in touch if you have any questions or comments regarding the articles, or real estate in general -- it'd be great to hear from you!

Warmest Regards,
Rudi W.
In this issue...
March Vancouver Island Market Characterized by Marginal Growth
Selling vs. Renting – What Makes Cents?
The Language of Lying
Reduce, Reuse, Upcycle

March Vancouver Island Market Characterized by Marginal Growth 

Sales activity across the Vancouver Island housing market area continued its marginal trend upward for the month of March.

A total of 357 single-family homes sold on the MLS® system in the VIREB coverage area in March 2014.

This represents a 27 per cent increase over the 281 sales recorded both last month, and last year at this time.

According to BCREA chief economist Cameron Muir, "although unit-sales seem strong, it is important to compare these figures to the ten-year average to gain a more accurate picture of market trends."

"When comparing unit-sales over a longer period of time, we are actually down 12.6 per cent from the ten-year-average, but it is encouraging to see the market moving in the right direction."

In March 2014, the benchmark price for a single-family home in the VIREB coverage area was $312,800 with an MLS® HPI index value of 147.0.  This represents a 47 per cent increase since January 2005, when the index was 100.  The benchmark price is down 0.75 per cent from last month and increased 1.59 per cent over last year.  The average price of a single-family home in the VIREB area was $345,164, which is up 10 per cent over this time last year.

Even with the positive increase in prices, the Vancouver Island market is very affordably priced for buyers in comparison to some of the larger markets across the country", said VIREB President, Blair Herbert.  "In terms of overall value for your dollar, our market is quite attractive."

The benchmark price for a single-family home in the Campbell River area was $261,800, up 5.35 per cent over this time last year; in the Comox Valley the benchmark price was $320,700 marking an increase of 1.05 per cent over last year; Duncan reports a benchmark price of $284,300 which is up 1.17 per cent from last year; Nanaimo’s benchmark price was $330,500 rising 2.07 per cent over last year; Parksville/Qualicum has a benchmark price of $344,800, dipping 0.29 per cent from last year; and the price for a benchmark home in Port Alberni is listed at $189,600 increasing 5.10 per cent from last year.

Selling vs. Renting – What Makes Cents? 

If you’re not ready to sell your home, you may have considered renting it out instead.

Sometimes a temporary work contract forces you across country or perhaps market conditions and exceptionally low mortgage rates mean it’s a great time to buy but you don’t want to sell at a loss.

As with any major decision, you should carefully weigh up the pros and cons based on your own unique situation.  You'll want to do an in-depth financial analysis as well as consider more personal factors.  Here are a few things to keep in mind:

  1. Tax Talk - There may be tax implications so contact your tax advisor as laws vary depending on individual circumstances.

  2. Money Matters - Make sure to have extra money on hand if the rent doesn’t cover your mortgage, taxes, utilities, insurance, etc.

  3. Step Away - Being a landlord isn't always easy.  You’ll need to detach yourself emotionally from your old home.

  4. Playing the Market - You may be able to increase your equity as the market gains strength but if it tanks, you could come out on the losing end.

  5. Be Prepared - The future's uncertain so be prepared for unexpected repairs or if your tenant suddenly falls behind on their rent.

  6. Raucous Renters - Tenants won't treat your home with the same level of care, so your home may be in poor condition when you decide to sell.

Renting out your home is a huge decision so make sure you consider all of the scenarios.  If renting's a viable alternative, you'll need to treat it like a business so evaluate the rental market and research landlord/tenant laws before starting the process.

If on the other hand, you decide to put your home on the market, make sure you have a professional real estate agent on side to advise you on how to sell your home quickly and for top dollar.  Please don’t hesitate to call if you have any questions regarding this decision or any other real estate related matters.

The Language of Lying 

Being able to tell if someone’s lying is an invaluable skill!

One of the most effective ways to determine if someone’s lying is to examine subtle gestures.  Here are a few tips that'll help turn you into a human lie detector:

  1. Liars Look Away - A deceptive person avoids making eye contact.

  2. Um, Err - Liars mispronounce words and stutter due to tension.

  3. Working Overtime - Deceptive answers usually take longer than truthful ones.

  4. Hands Up - Covering the mouth and rubbing the nose and eyes can indicate lying.

  5. Fade Away - Their body will take up less room and any movement will be stiff and limited.

  6. Switch It Up - Liars welcome a change in conversation resulting in their body language becoming more relaxed.

  7. Pick Pocket - Showing palms is a sign of honesty so people who are lying will often put their hands in their pockets and fidget.

Detecting deceit isn't always easy as some people are better liars than others but body language almost always tells the truth.  People will occasionally exhibit some of the above behaviour when they're telling the truth so individually they're only indicators but when combined together, it’s likely that they’re lying.
Reduce, Reuse, Upcycle 
The junk in your garage, basement and attic may be a treasure chest!

Upcycling is a popular trend where existing items that would normally make their way to the curb are transformed into something useful and stylish.  Here are a few creative ideas to inspire you:

  1. Stylish Shelf - Turn an old ladder into a bookshelf or fix it to the ceiling and hang photos or lanterns from the rungs.

  2. Picture Perfect - Love a painting but don’t have anywhere to hang it?  Just add some handles to create a chic, unique serving tray.

  3. Door Designs - Salvaged doors can be upcycled into tables, headboards, a storage bench or fix a few together to create a folding screen divider.

The opportunities are endless!  Give old items a new lease on life and put your own creative twist on them.  You’ll save money and the environment while you’re at it!


PS  Oh by the way, we are never too busy for any of your introductions.  If you know of anyone that may benefit from our help please contact us with their name and number and let them know that we will be in touch.  We would be privileged to assist them!

If you would like to keep up on the market and would like automatic email notifications of new listings, sales, etc. Click here or drop us an email or give us a call:  250-468-1498 / 250-248-1071team@teamw.ca

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TeamW
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TeamW-RE/MAX First Realty
#101-897 WEST ISLAND HIGHWAY PARKSVILLE
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