Wondering if the time has come to move on? Here’s how you know

1. That bedroom is now a junk room

We all need room to store our sports equipment, off-seasons clothes or paper records of important information, and that room is called “storage”. It started as a quick fix, like “let me put the bike here for a sec,” and now it’s been sitting there for over a year. In some cases, a large cardboard box or even another bike made its way in. Keeping storage contained and organized is not an easy task, but is necessary.

2. When the grass is knee high and the gutters are collapsing

During the summer months, grass and plants grow very fast and it’s hard to keep up. The garden beds could get a little TLC by weeding and swapping out plants with new ones. While you're outside, look at the trim of the house. Is the paint chipped? When was the last time the gutters were cleaned up? At this point, your property starts to lose value. Maintaining and improving a property is a challenging task requiring funds, time, energy and creativity. It could be that this property is more house than you can handle. Have you ever wondered how a property becomes a teardown?

3. More for-sale signs than you would believe

Who are those new neighbours? They moved in a while back, but are strangers to you and the reverse is probably true. Breaking the ice with newcomers is just an acknowledgment as you cross paths on the sidewalk. It can be intimidating, but it’s not so hard. In the event you are not having the response expected, how does it make you feel? It’s a good idea to keep the pulse on the sale price of properties in the area in case it’s time for a change.

4. Local redevelopment applications are flourishing

“I remember when it was all fields!”Maybe not that extreme, but the landscape is changing and in Vancouver “densification”seems to be the answer to our housing crisis. New multi-family construction in your direct surroundings could impact:

●traffic, including parking;

●potentially your view;

●noise generation; and

●the amount of dust in the air.

If all that doesn’t appeal, maybe you can cash in on the activity and get out of the neighbourhood.

5. Your tenants are degrading the property

For those who rent out their home, consider selling if the security deposit won’t be enough to restore the property to its original state, and it won’t get any better. To actually make the property attractive to new tenants will cost you a fair amount of money. Does it make sense to make improvements that potential buyers probably won’t appreciate?

6 . You spend too long on your daily commute

Studies have concluded that a long commute slowly kills you. I find this conclusion a bit harsh, but the time, money and energy spent on the road can add up very quickly. Life happens and if you are driving simply everywhere, maybe it’s time to re-centre around at least one main activity, such as work, school, family or leisure activity.

7. Guests are not coming around anymore

It’s been awhile since your cousins or kids visited, and the guest room could use a paint job and a new mattress (Mum, this one is for you!). Oh, and the guest bathroom does not fully operate anymore.

8. You need a fresh start

A new home is a new start and an opportunity to become happier. What’s more, changing home helps declutter not only the closet but also the unnecessary automatic payments (for cable or the landline) you are not really using.

Lately, I’ve witnessed a new trend of lifelong friends moving closer to each other, and I must confess that I like the concept! As much as it can be a bit disarming to project such a major event as a move when you are not obliged to for work or personal reasons, it’s good practice to anticipate and seek out that next stage because nothing will prevent it from happening.

Here is a final tip for potential home sellers: It's a good idea to use the summer time to make your property picture-ready and take a few shots from different angles, at least from the outside. You never know what tomorrow brings and, in the event you need to list your property next March, you’ll be in a position to show your property in its best light.

Based on Your Income: 
A general guideline is to allow no more than 30% of your gross monthly income (before deductions) to make your monthly housing payments. This test of your ability to repay a mortgage loan is generally referred to as the Gross Debt Service Ratio.

Complete the following calculation to determine the approximate amount you may be able to afford for the mortgage payment, the property taxes and, where applicable, 50% of the strata maintenance fees. Some lenders will require that this total maximum monthly payment also covers heating costs.

• Your gross monthly income $___
• Co-signor’s gross monthly income (if applicable) $_____
• Other income (monthly) $______
• Total monthly income $______
• Multiply the Total line above by 30% to calculate your: Total monthly maximum housing payment $______

Based on your Other Financial Obligations: 
If you have other monthly financial obligations, such as car or credit card payments, the lending institution will also apply the Total Debt Service Ratio test to determine the maximum mortgage loan for which you can qualify.

$ ____ Your monthly housing payment
$ ____ Your calculated monthly debt payments (car, credit card, etc.)
$ ____ Total monthly payment

A general guideline should be that the total of your monthly housing payment added to your other monthly debt payments should not exceed 40% of your monthly gross income.

The Gross Debt Service Ratio and the Total Debt Service Ratio tests protect both you and the lender by ensuring that you do not take on more debt that you can reasonably afford to repay.

Many lending institutions will prequalify you for a specific size and type of mortgage loan before you begin searching for your new home. Taking the time to apply for a pre-approved mortgage will give you the security of knowing how much you can afford to spend.

Before concluding the loan agreement, most lending institutions will require an appraisal of your selected home. The appraised value is a professional opinion of the value of the home and may differ from the purchase price you are willing to pay. The appraised value may affect the approved value of the loan.