You can have it all: bright, luxurious & sophisticated west facing condo on the 6th floor of the newest concrete building downtown!  Floor to ceiling windows in this one bedroom unit offer abundant natural light and views towards downtown including a view of the clock tower.  The efficiently designed living space offers a living room and island-style kitchen, 9-foot ceilings, and a spacious and bright balcony.  The designer kitchen has stainless steel appliances, wood veneer cabinets, and granite countertops.  This unit comes with a storage locker and bicycle spot.   Common areas include spectacular roof top and media room adjacent to an outdoor terrace with barbecues!  No HST applicable.  This unit does not come with a parking spot.

MLS#: 307043

More information on the Bayview Promontory!

April 3, 2012

VICTORIA, BC – Single family homes sales have risen 17% since last month, while the six-month average price is up 1% to $599,551. The average price of a Greater Victoria single family home in March 2012 is $640,553 up from $579,985, but is affected by the sale of two homes over $4 million. Compared to March 2011, active listings in this category are up 5% to 1,858, while sales are down 7%.

Sales of condos and townhomes are flat, compared to February 2012, while down significantly from 12 months ago (17% and 15% respectively). Condo prices are unchanged, while townhomes are 1% lower than March 2011.

“With softer prices, buyers have been looking at houses,” says Carol Crabb, President of the Victoria Real Estate Board. “That is now being reflected by the six-month average price increase. We predicted a flat market in January, and so far that is what we are experiencing.”

She also believes sales activity was affected by poor weather and many families travelling over the two-week spring break. “REALTORS® tell me many clients took the time for family vacations,” Crabb adds.

With a total of 4,274 active listings, properties on the market have edged up from last month (3,977 active listings at February 29, 2011). Increased supply levels reflect typical spring activity as seen year over year.

What is a presale?

Presales generally refer to developments being offered for sale prior to completion of construction (Presales can be offered prior to start of construction and/or during the construction period). Examples in Victoria include the Bayview Promontory, Mondrian, Era, and Sovereign.

What are the advantages to buying a presale?

- The main advantage would be the potential increase in value prior to the completion of construction. Essentially, you put down a deposit (5% to 20% depending on the development) and hope to watch the value increase before you complete on the condo. During this waiting period you typically do not have to take on a mortgage, strata fees, or property taxes. Example, in the summer of 2009 I personally purchased a 533 sq./ft. south facing unit at the834 (Chard Development) for $198,900. On completion (end of November, 2011) the condo was worth approximately $240,000 to $250,000 with a similar BC assessed value. My deposit was only 5% or less than $10,000; therefore, you can see that the return on investment was very attractive at the834.

- Brand new home – there is an appeal to a lot of buyers to move into something that has never been lived in before.

- Latest in construction, design and technology. For example, the Bayview Promontory has a well-designed kitchen with a built in TV (yes, the TV is included), and the Sovereign has a car elevator and pretty awesome rooftop area.

- More choice of units, floor plans, floors, etc. Early on during pre-sales is also when typically the units with the best pricing/value are bought.

- The construction period can allow many first time buyers to save more money for the down payment prior to completion, and it can give retired buyers enough time to prepare for the downsize from a larger home.

What are the disadvantages to buying a presale?

- The main disadvantage would be the potential decrease in value prior to the completion of construction. For example, you enter into a contract to buy a presale for $300,000 and on completion it is only worth $270,000. Prices don’t always go up with pre-sales so buy carefully!

- Delays in construction: most presale contracts have delay clauses which allow the developer to be up to a year late (varies with contracts) on the estimated completion date. So, you might buy a pre-sale with an anticipated completion date of 2014 and it might take until 2015! Time delays can occur due to whether, labour shortages, supplier problems, inspection problems, etc.

- Your deposit is out of your pocket. Although it is protected by the Real Estate Development Marketing Act you have opportunity costs (you could potentially invest your deposit instead of having it locked up for up to 3 years while you wait for completion).

- Changes in floor plans, finishing, etc. The disclosure statements are generally very broad the developer typically reserves the right to change appliances, vary the floor plan size by a small amount, etc. For example, in the disclosure it will typically specify that every unit or certain units come with a storage locker; however, the size of the storage locker may not be specified. In this type of scenario you are at the mercy of the developer – and hopefully they have a good reputation

The Era will be located on Yates Street; whereas, the showroom is on Humboldt.  The developer behind the project is Concert and prices at this project will start from $198,900 including taxes.

Standing outside the Mondrian showroom. The Mondrian is a 10 story concrete building under construction at the 1090 Johnson (corner of Johnson and Cook). Much like the Mondrian, most new downtown developments have showrooms where you can find a sample kitchen and bathroom.

The Bayview Promontory is located at 65 Saghalie in Songhees. Contact me for more information on this development! Units starting from $199,900 with parking including.

The Sovereign by Chard Development is probably my favorite building under construction in Victoria, BC!  Has some very cool features such as a car elevator down to the parkade and a spectacular rooftop common area!  If you have more questions about this building feel free to give me a call.

Pre-sale developments in Victoria, BC…how come price sheets are not posted on their websites and why are so few units, if any, listed on MLS®?

Most developers don’t like the pre-sale price history to be public knowledge whether prices are going up or down. If prices are going up then buyers will feel like they should have bought two months ago when prices were lower. If prices are going down then buyers might not have enough confidence to buy into the development.

Bayview Promontory – 65 Saghalie
The834 – 834 Johnson Street
Mondrian – 1090 Jonhson Street
Era Condos on Yates
Jukebox Condos on View

Is the amount the buyer’s REALTOR® is offered (aka cooperating brokerage commission) – is it important?

My belief is that it is important. The offered cooperating brokerage commission is the incentive for all REALTORS® to bring their buyers to your home. You will note in Part I, that about 37% of buyers are introduced to a property via their REALTOR®.

Right now there is also a large push for REALTORS® representing buyers to obtain “Buyers Agency Agreements,” which specify compensation (for example, 3.0%100k + 1.5%balance). If the cooperating brokerage commission being offered is less than what the REALTOR® and the buyer have agreed upon it is up to the buyer to make up the difference.

Example

The buyer is looking at two $600,000 homes: In the first scenario the buyer does not have to pay their REALTOR® (high cooperating brokerage commission offered by seller) and in the second scenario they need to pay their REALTOR® $7,500 (cooperating brokerage commission does not meet amount set out in “Buyers Agency Agreement”) – the second scenario may be less desirable to the buyer especially if they have limited funds available for a down payment.

A low cooperating brokerage commission can at times have unintended consequences.