Purchasing Big White Real Estate
Before purchasing any property, it is important to exercise due diligence to ensure you are making all the right decisions.
The team at Sólido assists in every step of this process and offers the following introductory points for you to consider before taking the exciting step of acquiring a recreational property at Big White or Silver Star or even a residential property in the Kelowna area.
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Purchasing Using Agency Representation
Financing Your Purchase
Start-up Costs
Operating Expenses
The Ownership Experience at Big White
Purchasing Using Agency Representation
When shopping for real estate in Canada, a Buyer can choose to use a realtor or real estate agent to assist in the selection and acquisition process. This representation eliminates much of the guesswork from contract creation, negotiations and improves their due diligence by utilizing a realtor’s knowledge and experience. There is no cost to a purchaser for Buyer Agency as commissions paid to a realtor are derived from the Seller’s proceeds of the sale of their home.
Solido offers full service realtor services including access to all publicly offered properties, including MLS listings. Additionally, Solido representatives open up Buyers to a vast network of helpful industry professionals including financing assistance, legal support and accounting services to name a few.
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Financing Your Purchase
Buyers can borrow up to 75% (65% in some instances including buying from out of country) of the mortgage valuation or purchase price (whichever is lower) of a Canadian property, or remortgage an existing property for home improvements. Remortgages for other purposes will be considered on a case-by-case basis.
The minimum loan SPF will consider is $300,000 (Canadian Dollars); there is no maximum. Only repayment mortgages are available, and you must be under the age of 65.
You must provide proof of income, such as your last three months' payslips, six months' bank statements and your P60 or an employer's reference. If you are self-employed, you must provide audited accounts for the past three years, along with copies of business and personal bank statements for the past 12 and six months, respectively.
Canadian lenders may take into account up to half of any potential rental income from the property when calculating whether you can afford the repayments, providing it has been on the rental market with proof of leases. Most Canadian banks will also take your existing liabilities into account when calculating affordability, such as mortgage/rent payments, personal and bank loans and any maintenance payments. Once these are added to your proposed Canadian mortgage payments the total must not exceed 38% (this percentage can vary) of your net monthly income.
Have questions? Contact us for more information.
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Start-up Costs
All Big White properties purchased come with thier own set of initial costs for conducting the transaction. The Buyer must be aware of Property Transfer Tax (PTT) applied to the purchase at a provincial rate of 1% on the 1st $200,000 plus 2% on the balance due at the Completion Date. As well, legal fees will cost anywhere from $750 to $1500 and Buyers can choose to selection the more cost-effective alternative of conducting the transaction through a notary. Financing the property will sometimes come with initial fees but depending on the institution used, property appraisals will generally be covered by the lender. Finally, Goods and Service Tax (GST) may or may not be applicable on the transaction at a rate of 5% (as of January 1, 2008). This applicability will help be determined by a Canadian tax accountant and depends on personal usage, rental frequency and a battery of other variables.
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Operating Expenses
Owning a Big White condo (apartment) means that you will have to consider “strata” fees which are determined by the ongoing costs or operating the building as well as the utilities and services included in the fees for each owner. Typically, strata fees at for Big White condos range from $100/month for bare land strata to $700-800/month for a penthouse suite in a hotel condo property.
Additional running costs for condos include utilities, property tax and optional contents insurance. The major difference for condo properties to Big White chalets is that chalets will require the owner to seek building property insurance, as it would not be included in any strata fees.
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The Ownership Experience at Big White
An owner of real estate at Big White is a member of an exclusive club that recognizes the value in a true Canadian ski experience. Local friendliness with a global culture, Big White is a haven for winter adventure with young and old. Owners have described how simply spending time at their Canadian ski property, they are exposed to a culture that vacationers never see, taking in true Canadana whether it be from being an active part of the social scene at Big White or taking in a pick-up game of ice hockey on the skating pond once a week with new friends.
Ski in and out from every corner, Big White’s homes showcase remarkable architecture from traditional rustic ski cabins to modern, contemporary loft homes. The landscape offers backwoods ruggedness while being only 45 minutes from a bustling city of 100,000 people.
Summers are mild and daytime temperatures range from 12-28 degrees, lowering to cooler, more bearable sleeping temperatures at night. The wildlife in the spring and fall are abound. Moose, caribou, bobcat, deer, bears and many other indigenous creatures share the mountainside and make for exciting run-ins on the rare occasion.
Big White still remains relatively undiscovered to the rest of the world, whether it be for the exciting winter activities or the rugged backcountry experience in the spring and summer. Those are own a piece of this rare gem are tight lipped in hopes that the peacefulness that makes this resort special stay in tact. However, now you know the secret, what will you do about it?
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