Smoking deals?

This article was published on: 10/19/18 9:47 PM

As we move into this uncharted territory of legal cannabis, a number of issues crop up concerning real estate.  Our property disclosure statements ask whether the premises have been used as a marijuana operation or to manufacture illegal drugs.  If a property has been used as a grow op, the stigma remains with the home through current and future owners.

Should you be planning to grow your allowed 4 plants at home, you should be aware of how the banks will view this.  They are concerned with the creation of mould, of the results inside the home of growing marijuana there – consequently, we are hearing that the banks who currently will not finance homes where there has been a grow op, will continue the same policy despite the legality, even including the allowable 4 plants.  So… if you plan on selling your home sometime in future, bear in mind that marijuana plants at home could significantly affect both your value and ability to sell.

The real estate associations and Council are currently reviewing our disclosure statements in light of the new legislation – watch this space!  Just remember, these are not the same people who make the bank financing rules!

The other issue that this legislation affects is that of smoking bylaws in strata properties.  Those which already have smoking bylaws in place will be looking to revise them to encompass not smoking or vaping anything. Those more tolerant stratas will be looking to institute smoking bylaws because of the odour from marijuana – lots of chatter already.  As this is all new, there is uncertainty as to how this will all play out.  We’ll keep you posted as well as covered.

For many clients and realtors, the current market is also uncharted territory!  Younger clients and realtors who have been licensed within the past 8 years have experienced only a balanced or rising market.  We now move into solution based selling, where we have to be constantly creative to combat the stringent financing rules, to maximize sellers’ opportunity to sell in a market where inventory far outstrips sales and buyers have lost confidence in the market.  Our team will be pulling out those tried & true problem solvers from similar past markets, while creating new ones for 2018 & 2019 (coming up faster than we think!!).  First & second time buyers need to beat the interest rate hikes which will, many times, make a greater impact on their monthly payments than sliding prices, and affects their very purchasing power.

We have to consider beating the odds and getting creative (legal!) financing in place.  We are happy to meet with you and brainstorm our ideas with you. Downsizers – most of you cannot get out in the market place and buy the condo of your dreams before selling your present home if you are relying on borrowed funds to do it. Banks now will only lend based on income, not equity, and will commit funds for your new condo only when you have a firm sale on your home.  Our job is to try and minimize the risk of rendering you homeless with good creative negotiation on your sale – tailored to your situation. In this case the banks are helping you financially in the current market because buying in today’s market and selling in tomorrow’s could prove costly and unwise.

Our definition of keeping you covered is ensuring that you are fully informed all the way, keeping you safe, as stress free as possible and ensuring your goals are met.  We are passionate about the real estate business, but even more passionate about the wellbeing of our clients. Enjoy this unexpected extension of summer.

We are the Generations Real Estate Partners at your service –  Michelle, Scott, Sheila, Ray and Shane.

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