The Vancouver Life Real Estate Podcast The Vancouver Life Real Estate Podcast

The collapse of SVB, the 15th largest regional bank in the US, sent shockwaves through the financial industry in March 2023. The bank announced on Wednesday that it was attempting to raise $2.25 billion and complete a $21 billion asset sale to overcome the difficult situation it found itself in after rates accelerated by 450 basis points over nine months. However, by Thursday afternoon, reports emerged that there was a $42 billion bank run on deposits, leading to the bank's negative balance of $958 million and a 60% drop in the stock price by the end of the day.

The collapse of SVB highlighted several key issues in the financial industry, including what feels like the age of institutional negligence creating a conversation around the re-emergence of personal responsibility, and that there should be major consequences for actions that are taken by people in these positions. For instance, the CEO of SVB sold $3.5 million worth of personal shares one week before the collapse, and in the last two years, there were nearly $84 million worth of insider share sales.

One of the significant impacts of the collapse of SVB was the sharp fall in bond yields. The 5-year government bond fell from 3.57% to 2.89% in just three days! The largest drop in 27 years - more than the pandemic and the 08’ GFC causing markets to price in two rate cuts instead of one rate increase by summer. The collapse of SVB had significant implications for the financial industry and the economy, and it highlighted the importance of taking personal responsibility for one's financial well-being and keeping  the majority of savings in hard assets that produce consistent cash flow.

The collapse of SVB is not an isolated incident in the financial industry. According to the FDIC, between 2001 and 2023, the US experienced 562 bank failures, which is an average of one every two weeks. This indicates a lack of accountability and responsibility in the financial industry, and it raises concerns about the stability and security of the banking system. By contrast, Canada has not experienced any bank failures with assets over $1 billion. This is a testament to the country's stable banking system and regulations that prioritize accountability and responsibility. The absence of bank failures in Canada is noteworthy and provides an example for other countries to follow in establishing stable and secure financial systems.

The issue of bailouts is not limited to the financial industry. The COVID-19 pandemic has also led to a significant increase in government bailouts for homeowners and businesses. For instance, the B.C. government provided a $479 million bailout to TransLink to help the transit system deal with the impact of the pandemic. The funding kept fares stable for transit users and avoided service cuts.

The collapse of SVB also had implications for the housing market in Canada. Canadian home prices fell $130,000 since their peak, and the housing market recorded the fewest number of new listings for the month of February since 2003, with a 20-year low on a national basis. National home sales hit their lowest levels for the month of February since 2009, and house prices have fallen $130,000 on average from peak to trough. Check out the conversation in this weeks podcast and get the local numbers for Vancouver.


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

Applying for a mortgage can be a daunting task, and it becomes even more complex when you run an incorporated business. As opposed to an individual, the income earned by a corporation is treated differently by lenders. If you are self-employed and have incorporated your business, you may find it challenging to obtain a mortgage as many traditional lenders are not familiar with this structure. Therefore, it's essential to work with a mortgage specialist who understands this structure and can help you navigate the process.
Mychal Ferreira, a mortgage specialist at the Bank of Montreal, specializes in this style of mortgage where the gross income goes into the company, and the individual pays themselves personally through dividends. This structure helps minimize personal taxation, which is a significant benefit for self-employed individuals.
In the past, most banks did not consider incorporation income when it comes to qualifying individuals for a mortgage. This created a barrier for many self-employed individuals who were unable to secure financing for their homes. However, things are changing, and more lenders are recognizing the value of incorporation income, especially for professionals who earn a commission-based income such as doctors, dentists, and realtors.
Mychal Ferreira's expertise comes in handy as he walks clients through the process and teaches them how banks look at professionals in this situation. He helps them understand how they can position themselves for success when it comes to qualifying for a mortgage. Mychal's approach is to look at each client's unique situation and tailor the mortgage to their needs. He understands that each client's financial situation is different, and a one-size-fits-all approach will not work.
Working with a mortgage specialist like Mychal is crucial as they can help you understand the intricacies of the mortgage process. They can help you navigate through the paperwork and explain the jargon used in the industry. Additionally, a specialist can help you access lenders who are more familiar with incorporation income and are more likely to offer you a mortgage.
In conclusion, if you are self-employed and have incorporated your business, obtaining a mortgage can be a challenging process. However, with the help of a mortgage specialist like Mychal Ferreira, the process can be more manageable. Mychal's expertise and experience in working with self-employed individuals can help you obtain a mortgage that fits your unique situation. Remember, it's important to work with a specialist who understands your financial situation and can help you navigate the process successfully.

Mychal Ferreira
BMO Mortgage Specialist
778.994.3222
mychal.ferreira@bmo.com
instagram.com/mychalmortgages


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

The news across the nation this week was that the Bank of Canada came through on it’s word and held interest rates at 4.5%. This is the first time in a year that the Bank of Canada took it’s foot off the break and gave all variable rate mortgage holders a sigh of relief. As interest rates begin to stabilize and the bank of Canada moves to the sidelines, it’ll be interesting to see how the market responds. Typically this time of the year we have a lot more listings but with current inventory levels and really low levels, we’re already seeing the return of multiple offers for property that is priced to market.
 
February saw prices rise for the first time month over month and with median prices already up another $22,000 this month, and up $82,000 in the last 9 weeks alone!! We are starting to see signs that the market is becoming much more active. Higher levels of activity will lead to higher levels of consumer confidence which we believe will continue to build throughout the year. Toronto for example saw an 8.5% increase in month over month sales - the highest in 6 months and what’s very important to note is that 40% of those sales last month were ABOVE the asking price! This is largely due to a lack of inventory and Vancouver was similar showing 20% of its deals selling over the asking price. All of this pointing to a 2nd month in a row of a sellers market. 

 We’ve had a number of sellers on the sidelines waiting to hear about this announcement. Many are now going to be listing this month as the data points to a much stronger sale price than over the last few months. If you’re considering listing your property and want to know if the market is trending in your favour, just reach out to the contact info below. 


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

We are extremely excited to have interviewed the creator of eXp Realty and on this episode we hear about how the home buying and selling experience is evolving and how the first ever digital brokerage is shaping the future of real estate.  
A bit about Glenn:
Glenn Sanford is the founder eXp Realty, CEO of eXp World Holdings, Inc. and Chief Strategy Officer for VirBELA. 
After being involved with a number of internet start-ups in the 1990s and early 2000s, including a stint at AOL, Glenn started a highly successful real estate career in 2002. In 2006, his fourth full year in the business, Glenn and his team closed over $60,000,000 in real estate almost entirely from online lead generation and was ranked as one of the top 50 teams nationally with Keller Williams. After the downturn in 2008, he and his team developed the first cloud-based brokerage model that uses a 3D avatar based online office to collaborate and communicate while abandoning the physical bricks and mortar infrastructure normally associated with real estate brokerage. In the last 11 years, since launching with 25 agents, eXp Realty has grown to over 87,000 agents across 24 countries.  
eXp Realty refers to itself as Agent-owned and the company became a public company in 2013 and in 2014 started to distribute equity to its productive agent owners. eXp Realty provided the first ESOP style Stock Ownership Program for its agents and brokers as well as a revenue sharing program all designed to enhance the agent-centric business model.
EXP is the fastest growing brokerage in history and has grown by over 11,000 agents in just the last 12 months alone.   
 
 The company saw revenues of $4.6 Billion in 2022, and was one of the few brokerages to post a significant profit in the downturn year. 
 eXp’s market value has exceeded $3.6 Billion and, as the largest shareholder, Glenn is one of the tech worlds most recent Billionaires.  
In this episode we talk with Glenn about home buyer and seller behaviours and trends that he’s seeing from tracking sales from around the world.   
 
 With eXp entering its 15th year, Glenn Sanford discusses the exciting evolution of the brokerage and outlines some of the massive acquisitions they’ve made recently, and how these are focused on increasing agent abilities to dominate in any marketplace. 
Glenn talks about the role of artificial intelligence in Real Estate and if there’s place for it to completely remove the need for human interaction within a real estate transaction. 
As with any business model that achieves this level of success, the competition has noticed and the copy-cat brokerages are starting to appear.  Glenn offers his position on the competition, and what he see’s as the future for tradition brokerages. 
 This was a real eye opening and inspiring conversation with a true visionary and someone who has completely altered the course of Real Estate on a Global level.
 We hope you enjoy it too.
To learn more about eXp, visit : https://expworldholdings.com


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

One of the biggest concerns that home buyers have when they're considering purchasing a new home is how much money they need to have on hand. It can be a daunting task to figure out how much money you'll need, especially if you're a first-time homebuyer.

In this episode, we explore all of the home buyer options when it comes to this very important question. For instance, many people may be surprised to learn that they can buy a home with as little as a 5% down payment. However, if you do decide to go this route, you'll also be required to obtain Mortgage Insurance. But how much does that cost, and can it be added to the monthly mortgage payment?

Additionally, many people wonder how much money they need to put down to avoid mortgage insurance altogether. This is also addressed in the episode, along with the question of how much insurance is required if you put down a 12% down payment instead. And why is the insurance even necessary in the first place? All of these questions are answered in the episode, and you may be surprised at some of the responses.

It's also very important to know where these funds can come from. Did you know that you could utilize your RRSPs to buy your first home? It's true, and this is discussed in the episode as well, along with how long you have to pay that money back.

Another important topic covered in the episode is the question of whether it makes more sense to save up for a larger down payment or to invest in a home now while prices are appreciating. This is a tough question that many potential homebuyers struggle with, and the episode offers some valuable insights.

Overall, first-time homebuyers will definitely benefit from this episode. With all of the information presented, you'll be better equipped to make an informed decision about how much money you need to have on hand when buying your new home.

For anyone looking to connect with Mychal, please reach out to him below:

Mychal Ferreira
BMO Mortgage Specialist
778.994.3222
mychal.ferreira@bmo.com
instagram.com/mychalmortgages


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com

Vancouver home prices increased in February for 1st time in 9 months. Does this mean we’ve hit the bottom and headed back up? Slow down - not yet! One month does not make a trend but it does help further reinforce that our stagnant levels of inventory are causing all kinds of pain for Buyers - this plus the combination of higher rates is setting us up for could be an interesting spring market. 

We are already hearing stories of and taking part in multiple offer situations at different price points and asset classes all over the lower mainland. In this episode we get into why that’s happening and we review the stats for the month of February. 

Furthermore we get into the new BC Budget and the new municipal property tax hike of 10.7% in Vancouver and the impacts that will have to the housing sector going forward. We also suss out our own assumptions about whether the market has hit bottom, and where you can expect prices to go in the coming months. This is a very important episode especially for those who have been watching the market on the sidelines waiting for your opportunity.


_________________________________


Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife


Dan Wurtele, PREC, REIA
604.809.0834
dan@thevancouverlife.com


Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com


www.thevancouverlife.com