I think we did in the dog . . .

For my husband, it’s the perfect way to spend Father’s Day. Water, some snacks and at least 3-4 hours is what we usually plan for up there. Lynn Canyon is frequently misty (not foggy) and slightly cool with a bit of mugginess. Yesterday was no exception. No rain but enough moisture in the mist to make your hair quite wet and your clothing a bit soggy. Typical “raincoast” day on the North Shore. Love it!

The other side of the trail (back across Seymour Mainline) took us back to the junction of Rice Lake or Lynn Headwaters. We had actually been walking for about 3 hours and my dog was starting to struggle. (She’s a flatlander too!). Back at the Information Centre we opted for the ‘new shortcut’ back to the suspension bridge and our truck. By the time we got back, it took 2 of us to lift my muddy, exhausted dog into the back of the truck. Poor snoop (her name is Pebbles and she weighs about 80 pounds).

It is always interesting to go to a familiar place and find something completely new. We live in an amazing place. From flatlands to valleys and foothills in under 30!

This is not a post about bashing leasehold properties. It is a post about some of the unique aspects of buying and selling leasehold properties in the Greater Vancouver area. First, I am not an absolute expert on the subject but I have sold a few leasehold properties as a listing agent and have had a few buyers purchase leaseholds. I have even had one client sell her leasehold and purchased into another.

At the heart of leasehold is the relationship to the land on which the house, townhouse or condo is situated. More clearly stated it’s the right to enjoy the equity associated from direct landownership. That said buying a leasehold property is not for everyone. Basically, there is a tenant/landlord relationship. A lease agreement with a fee (rent/lease) is created initially between the two parties (usually landowner and first purchaser/builder) complete with covenants (the responsibilities of both parties), rules, bylaws and budgets in a document generally referred to as a Head Lease usually set to last 99 years from conception. All the units in a development will age out at the same time. In Vancouver and surrounding areas, the landholder maybe the city, a corporation, privately owned or First Nations lands. The properties are typically found in highly desirable areas like waterfront (or within walking distance). In smaller communities, the properties maybe close to shopping and schools.

Are all leasehold apartments and townhouses classified as “stratas”? No. In fact, some leasehold property owners never have any kind of board, representation, meetings, voting privileges, or decision making power. The lessees simply receive a report document once a year with an operating budget, financial statement and possibly assessments or levies. Many function as “true” stratas with elected boards, monthly meetings and AGMs. Some leases are prepaid so no worries of sudden changes in lease payments – but some are not and reviews based on changing market conditions and increasing land values can result in huge lease payment increases. So, does that equate into increases in value in the units as well? Yes, leasehold properties are market driven as well. Not just at the same pace as freehold properties. Some are very slow to show increase in value – sort of like a low interest savings account. Some increase far more rapidly and may seem more attractive to the investor. It’s still about location, condition and price.

So what is attractive about these types of properties? As mentioned, location is a big factor and most purchasers would never be able to buy these homes if they were freehold. As they are not buying the land, these properties are significantly cheaper than their freehold counterparts. In some areas, there may be a price difference of $300K for a 2 bedroom condo. The value of the land being the variable.

A significant challenge to both buyers and sellers is financing. Many lenders tend to shy away from leaseholds. Mortgages are charges created against land ownership. Leasehold properties don’t offer landownership. So, the “security or chattel” is effectively missing. However, lenders do consider the landowner (reputable), the age, the condition/maintenance history, the profile of the buyer and how much time is remaining on the lease. If there is less than 30 years remaining, it’s pretty tough to get financing. A line of credit maybe the best option at this point. Some purchasers view leaseholds as good investments and keep them as rental properties. The most important thing is for buyers to understand what they are purchasing and the relationship and expectations outlined in the Head Lease.

THE PINK TOUR VISITS OAKRIDGE CENTRE THIS FRIDAY, MAY 6TH FROM 10AM TO 3PM IN THE WEST PARKING LOT

The Pink Tour is a province-wide education initiative to encourage women 40 – 79 years of age to take advantage of BC’s free screening mammogram program.

Currently only 51% of women in BC who should go for a regular mammogram, actually do. According to World Health Organization investigations, if 70% of eligible women went for one, we could reduce the number of deaths from breast cancer by up to one third.

The Pink Tour’s most identifiable element will be a 70 foot branded bus which will travel through more than 50 BC communities from May to September.

Visitors to the bus will be able to walk through the bus and view displays and speak to the Tour staff about the importance of having a regular mammogram.  Displays will include messaging about overall breast health, facts about mammography, breast cancer risk factors and information on the Canadian Breast Cancer Foundation and its commitment to research and community support.  Visitors can also test their knowledge with an on-board quiz.

The tour team will also be able to use laptops on board the bus to provide a direct link to the Mammogram call-back program.  During the bus tour, a visitor can register their contact details and within several days they will receive a call back from the Screening Mammography Program about dates available for a mammogram.  Visitors are also encouraged to call 1.888.GO.HAVE.1 directly to book a mammogram themselves.

A Question of Neighbours

Once in awhile the question gets asked – “What do you know about the neighbours?” or “Who lives next door?” Whether the question is directed at me representing a buyer or directly to the seller or their agent, this is basically an open mine field for anyone who actually wants to attempt to answer. The question it seems gets asked more frequently by folks looking at high and medium density complexes as opposed to single family residential neighbourhoods. Closer living quarters equals closer contact.

The reasons why buyers ask are usually based around personal safety, level of interaction and how people tend to get along, noise, expectations of participation etc. (Though in my experience they aren’t actually able to define what they want to know clearly) All very difficult for anyone to assess and pass fair judgement. And that’s what it is – a judgement based on personal experiences, perceptions, expectations, desires, personal like and dislikes. Some people do have biases about who the people who maybe living around them but how someone else describes another person is very subjective. Is it the realtor to suss out ‘kind of people’ will live near you? There’s also a bigger question of ethics underlying the smaller question of wanting to know about the neighbours.

If you ask someone about neighbour and they tell you he has a slight mental health problem – what exactly does that mean? It means nothing really because there is no substance behind the statement. If you ask the woman who was cheated on by her husband by a neighbour, she may have nothing nice to say even though the “culprit” maybe a very nice individual. Maybe someone doesn’t like kids – or at least the neighbour’s kids. Maybe a neighbour doesn’t like certain cooking smells and has made an opinion of someone based on that. This could go on indefinitely. It happens all the time and it’s all about a point of view.

If a buyer is truly concerned (and they should be) about criminal activity, sex offenders and drug houses, and property crimes, that information is easily accessed by anyone including the realtor through local crime statistics and a quick search on the internet of community news stories. This is fact based information and part of my role to help people make educated decisions about where they want to live.

If a buyer truly feels the need to know about neighbours, than they need to do the legwork themselves of driving around, talking with people, knocking on doors, asking personal/private questions, talking with property managers etc. The can then form their own opinions based on the opinions of others.