Tag Archive for: COmox Valley

Comox-Valley-real-estate

How Depreciation Reports Impact Property Value in Comox: An Important Factor for Strata Owners

When assessing property value, location and amenities are key. For strata properties, another crucial factor is the depreciation report or reserve fund study.

With BC’s updated regulations, all stratas must now update their depreciation reports every five years. Beyond compliance, these reports impact property values, buyer confidence, and financial stability in the following ways:

Lenders Prefer Properties with Financial Transparency

  • Buyers aren’t the only ones reviewing depreciation reports; lenders do, too. Before approving a mortgage, banks assess the strata’s contingency reserve fund (CRF) and long-term financial planning.
  • Stratas with well-funded reserves and updated reports are considered lower lending risks. Stratas with missing or outdated reports create higher buyer hesitation and financing challenges.
  • Impact on property value: Properties in financially stable stratas sell faster, while those in underfunded buildings may struggle.
  • Buyers Feel More Confident Investing in Well-Managed Stratas
  • Today’s buyers and their agents scrutinize strata documents before making an offer. If a depreciation report reveals financial gaps, it can deter buyers or lead to price negotiations.
  • For example, if a buyer learns that a $500,000 roof replacement is due soon but the CRF is underfunded, the risk of a special levy makes the purchase less appealing.
  • Impact on property value: Stratas with clear maintenance plans and stable finances attract stronger buyer interest.

Strata Owners Avoid Unexpected Special Levies

Comox-real-estate
  • A depreciation report maps out long-term maintenance costs, preventing sudden financial shocks. Without it, owners risk large or unexpected levies for emergency repairs.
  • Poor planning leads to higher financial stress for owners and reduced resale value.
  • Impact on property value: Strata properties with proactive financial planning are more marketable and financially stable.
  • BC’s New Strata Laws: Compliance = Market Trust

As of July 1, 2024, all BC stratas must update depreciation reports every five years.

Deadlines:

  • Metro Vancouver, Fraser Valley, Capital Region: Due by July 1, 2026
  • Rest of BC: Due by July 1, 2027

Impact on property value: Stratas that stay compliant maintain buyer confidence and prevent financial risks.

Final Thoughts About Depreciation Reports and Property Value in Comox

A depreciation report isn’t just a legal requirement. It’s a financial roadmap that protects property value. Strata corporations can use it as a maintenance guideline and be proactive about repairs and replacement of assets. Get in touch with me to learn more!

  1. Strata councils and property managers: Is your depreciation report up to date?
  2. Buyers and real estate professionals: Have you seen depreciation reports influence property values?
selling your comox valley home

Considering Selling Your Comox Valley Home?

Are you considering selling your Comox Valley home? Have you been maximizing your home’s value?

Maximizing your home’s value before a future sale can be achieved. With thoughtful, strategic updates you can make a lasting impact on potential buyers. Start with curb appeal; a well-maintained exterior creates a positive first impression. It sets the tone for the rest of the home.

Simple tasks like fresh paint, updated landscaping, and a new front door can go a long way in boosting the perceived value of the property. Small upgrades to outdoor lighting and an inviting entryway can also enhance the look and feel of the home. These could act to draw in buyers from the start.

Inside the home, focus on key areas like the kitchen and bathrooms. They tend to yield a high return on investment. Simple improvements can give these rooms a refreshed, appealing look without major renovations. Consider things such as modernizing fixtures, repainting walls in neutral tones, and updating hardware.

Decluttering and staging are also essential. They allow buyers to envision their own lives in the space. This will make the home feel larger, cleaner, and more move-in ready. By focusing on these areas, homeowners can increase their property’s value and appeal to prospective buyers. Ultimately this is likely to attain a smoother, more profitable sale.


If you have any questions, don’t hesitate to contact me!

weather in comox valley and the impact on homes for sale vancouver island

Are You Considering Weather When Buying a Home on Vancouver Island?

You consider price, location, commute time, and school districts when house hunting. Have you thought about adding climate and weather-related risks to your list?


Heat waves, severe flooding, violent hailstorms, tornadoes, rising sea levels, and raging wildfires—these extreme weather events all present major challenges for Canadians. This includes those in the market to buy a home.


Changing climate conditions means home buyers should be asking lots of questions and thinking about how the weather could impact their property. For example, if your dream house is in a neighbourhood susceptible to floods, how much will you have to dole out for added insurance?


Will excessive amounts of snow make commuting a huge pain, or even damage your roof? Will your area’s rising temperatures impact how much you pay for air conditioning? Here’s what you need to know.

The cost of extreme weather hits the real estate market—and your wallet

Major weather events seem to be a more regular occurrence these days. With an increasing number of climate-related storms, fires, and floods comes a surge in insurance claims, which have more than doubled since 2005.


Kathryn Bakos is managing director of finance and resilience at the Intact Centre on Climate Adaptation, University of Waterloo. She conducts research on the impact of flooding on Canada’s residential real estate sector and mortgage markets.


“We’re seeing extreme weather events growing, and we track the catastrophic loss claims data— any event that triggers $25 million or more of insured losses, which is what your insurance company pays out—from flood, wildfire, hailstorm on a year-to-year basis,” says Bakos.


From 1983 to 2008, insurable losses ranged from $250 to $450 million per year. Today, they’re up to $2 billion annually. And that’s just what insurance companies pay out. So, if the average flooded basement costs $43,000 to repair, there’s a cap on what insurance covers. That cap would usually be $10,000 to $20,000. The rest comes out of the homeowner’s pocket.


Flooding and wildfires are the costliest extreme weather events in Canada. In Calgary and Edmonton, hailstorms cause most damage, while East Coast residents deal with severe lightning storms and hurricanes, according to Bakos.


Recently, Bakos’ team performed the first quantitative analysis of the impact flooding has on the Canadian housing market, and the numbers were alarming. “We determined that six months after a flood event, homes located in flooded communities experienced an 8.2% reduction in the sold price of their home compared to their non-flooded counterparts,” she says.


With the average Canadian home worth roughly $650,000, that would equate to about a $53,000 reduction in value. Roughly 1.5 million Canadian homes, about 10% of the housing market, are considered uninsurable for flood risk.

Do your due diligence when shopping for or protecting your home

The federal government plans to develop the Climate Adaptation Home Rating Program. Canadian home buyers could check to assess the risk associated with their property. Until then, Bakos recommends doing some research into any major floods in the area you are looking at. Ask if the property sits on a floodplain. Does the driveway slope away from the home to help prevent water from seeping in? Does the home sit up on the street? Does it have extended downspouts to direct rainwater away from the house?

If your basement windows are at ground level, are there window well coverings? Is there a sump pump and backwater valves in the basement? These all stop water from coming in. Cleaning out your eavestroughs and sweeping leaves away from sewer grates helps to prevent flooding. In some areas, installing hail-resistant roofing and siding material will help guard against hail damage.

Other preventive tips for homeowners who are buying a Home on Vancouver Island

Wildfire zones

  • Look for homes with ample separation between them.
  • Look for homes with Class A roofing/metal roofs and non-combustible siding.
  • Standard homeowner insurance policies in Canada cover damage caused by fires, and also provide coverage to help with the cost of mass evacuations
  • Keep combustible materials at least 10 metres away from your home.
  • Prune trees to create a 2 m clearance from the ground to the lowest tree branches.

Severe winter storms

  • Arrange for snow or ice removal from roofs and balconies to reduce the weight and the risk.
  • Keep your home stocked with the essentials in the event of a power outage or road closures due to snow or ice.
  • Ensure your walls are properly insulated, your weather stripping is in good shape, and consider storm windows.
  • Install snow fences in rural areas to reduce drifting snow on roads and paths.

Tornadoes and hurricanes

  • Consider using class 4 impact-resistant roofing when completing upgrades or repairs.
  • Most home insurance policies cover windstorm or tornado damage such as losses caused by flying debris and falling branches or trees, and losses to your home and contents if water enters through openings caused by wind or hail.
  • Home insurance policies generally do not cover damage caused by coastal flooding and storm surges.
  • Be aware of large or aging trees on a property that could be at risk of falling or breakage due to strong winds.

Knowing your climate risk helps prepare you for future costs. As your REALTOR®, I can provide insights on the neighbourhood and what it usually experiences, so please, tap into my expert local insight.