BC NOTARIES’ BUST COMMON HOME BUYING MYTHS -2
- Myth: Most investment rental properties in Vancouver are owned by off-shore buyers.
“I have seen an increase in local residents purchasing condos downtown as an investment,” says Akash Sablok, President, The Society of Notaries Public of BC, and a Notary Public in East Vancouver. “Due to lower interest rates and a strong rental market, investment properties are seen as a good investment, creating a positive cash flow and adding to affordable rental housing.”
- Myth: A small hike in interest rates would make mortgage payments challenging and home buying inaccessible.
“Interest rates are so low right now that a small increase in mortgage rates wouldn’t increase one’s payments a significant amount,” says Derek Smoluk, Kamloops Notary Public.
- Myth: A large down payment is required when buying a home.
“We are seeing a great number of high-ratio financing purchases right now, where the purchaser is only required to have a minimal down payment. We are also seeing multiple family members, such as parents and their children, going on the title and the mortgage together to make the purchase more affordable, and in some cases to make the purchase possible,” says Kristy Martin, Victoria (Langford) Notary Public.
- Myth: Condos and houses are similar investments.
“I have seen a widening gap develop between condo values and house prices. With single-family detached houses, there is never an oversupply, but with condos, particularly in downtown Vancouver, there is a constant increase in supply,” says David Watts, a Notary Public in Downtown Vancouver. “On the upside, condos are in very high demand as rental properties. It’s important for clients to fully consider their current and future goals when purchasing either type of home. Both are good investments, but for slightly different reasons.”
- Myth: Only lawyers can complete all the legal documents.
“In fact, BC Notaries can give legal advice with regard to your real estate transactions. Notaries are trained and authorized to draw up and complete all the legal documentation involved with the purchase or sale of a home,” says Nick Aubin, a Notary Public in Kelowna and Lake Country. “Additionally, Notaries are involved in more than half of all real estate transactions in BC.”
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