Coldwell Banker Works

@Home with Coldwell Banker®

Chris Adam, REALTOR
Sales Rep.
First Ottawa Realty, Brokerage
2034 St Joseph Blvd
Ottawa, Ontario K1C 1E6
(613) 830-9999
cadam@magma.ca
http://www.magma.ca/~cadam

Coldwell Banker® Home Price Comparison Index (HPCI)

$2 MILLION divides 4-BEDROOM “Aspirational” HOME prices

IN major North American communities

Survey shows most expensive and most affordable major markets for 2200 sq. ft. homes, typically sought by corporate transferees and ‘move up’ buyers

Are you considering a ‘move up’ to a 4-bedroom home? Or perhaps your family is considering a move to another community. If this sounds like you, then I’ve got some news that will interest you. The recently released 2009 Coldwell Banker^®Home Price Comparison Index (HPCI) studied the prices for comparable 4-bedroom homes and reports a price gap of more than $2 million between the most expensive and most affordable North American markets for the studied 2,200 square foot home. In the annual comparison of similar homes in 345 North American markets, La Jolla, CA led the list as the most expensive real estate market on the continent with an average home price of $2,125,000 US. Vancouver, BC was Canada’s most expensive market and placed tenth on the North American most expensive list at $1,174,241 US ($1,262,625 CDN). Grayling, Michigan was North America’s most affordable market, one of 20 similarly-priced communities on the most affordable list. Canada’s most affordable major market Charlottetown, PEI was one of 35 Canadian markets included in the study. A similarly-sized home there costs only $147,560 US ($158,667 CDN).

Wondering where our home prices stack up in global markets? Compared to some international centers, real estate in most North American markets looks like a bargain. Internationally, Singapore, $1.9 million US dollars, was the most expensive market for the same type of home compared with Salinas, Ecuador, $69,375 US dollars, was the most affordable studied international market.

If you’re a ‘move up’ buyer, then this study will have particular interest for you. Differing from most housing reports which compare median prices, the annual Coldwell Banker HPCI provides an apples-to-apples comparison of similar 2,200 square foot, four-bedroom, two-and-a-half bath homes in the U.S. and Canada, as well as a sampling of 56 countries/territories outside of North America where Coldwell Banker has a presence.

The study’s 4-bedroom, two-and-a-half bath home would typically be sought for middle-management corporate transferees. Here at Coldwell Banker, it’s what we call an ‘aspirational home’ and is usually purchased by move up buyers experiencing lifestyle changes. These move-up buyers want to take advantage of today’s historically low interest rates and they represent a critical component in the real estate market.

Want to know what a typical ‘move-up’ home would cost in your own community? Or what a comparable home might cost in over 300 markets across the U.S. and Canada? Simply click on http://hpci.coldwellbanker.com/ and try our user-friendly calculation tool. Or better yet, why not give me a call and let’s talk real estate!

Creative cost-sharing can help you buy a home

There are a great many opportunities available in today’s housing market and at historically low interest rates. Many of the would-be buyers I talk to want to take advantage, but want to do it in a way that will provide some protection in times of economic uncertainty. For some buyers, that translates into a home with a rental apartment that can generate income to help offset their mortgage payments.

However, I’m finding that some buyers are opting for other creative alternatives to home-ownership that can help build your equity quickly. One option is the joint purchase of a multiple-dwelling property by more than one family unit. For example, a legal duplex might be jointly purchased by friends or relations, with each family group occupying one of the property’s units. The duplex approach can work well when young people want to move out on their own, leaving their parents as “empty nesters”. In this scenario, the family home is sold, with the parents buying one unit of a new duplex, and then banking their surplus funds. The younger generation then assumes the more manageable mortgage payments on the remaining half of the duplex’s price. In this way, they can start to build equity right away without having to come up with a large down payment.

In less formal arrangements, two couples might elect to jointly buy one single-family residence and share all the living space. This can prove to be a very stressful situation, and the best chance for success is usually when there is a family relationship between the two couples, such two siblings with their spouses.

Whatever method you use to ease the cost of homeownership, the most important thing to remember is to get the all the details worked out before you buy. Everyone involved in the purchase should agree on all sub-let and re-sale provisions “up front”. For example, can one party move out and sublet their living space? Who will decide what maintenance expenses are incurred and how will they be funded? What happens when someone wants to sell? Does one party get the first right to buy out the other’s interest? If so, how is a fair price determined? Or, is the entire property put on the market with all parties sharing the proceeds and then going their separate ways?

As you can see there are a lot of variables to consider. Such important issues shouldn’t be left to chance. Don’t expect that they’ll be sorted out easily when the time comes. The best course of action is to get a lawyer involved and draw up an agreement that clearly sets out the rights and obligations of all co-owners.

Remember, if you’re thinking of creative ways to ease the cost of owning a home, I’m here to help. If you tell me about your plans, I can offer helpful advice and show you options that you may not have considered. With a little creative cost-sharing, you may be able to make your dream of home ownership a reality.

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