Jeffrey Anderson, CEO of Exceeds Inc., sits inside the Towns on Taylor showroom at the corner of Leathead Road and Rutland Road North in Kelowna. Image: contributed.

Kelowna developer warns home buyers to look at more than the price tag

Kelowna developer Jeffrey Anderson wants first-time homeowners to look at more than the price tag.

A former realtor and local developer wants first-time homeowners and young families to do their research before forking over their hard-earned savings to secure a home.

Jeffrey Anderson, CEO of Exceeds Inc., is concerned about the recent trend in development advertising that has new developments broadcasting the low starting price of the unit and nothing else.

While a new development in town might have the cheapest starting price per unit, it may not provide the best bang for your buck. Especially not for a first-time homeowner.

He says that most of the new development pre-sales on the market in Kelowna require 10-15 per cent down to secure your unit. That is two to three times the five per cent required for first time homeowners, making much of the new real estate stock unaffordable for many.

“In the Kelowna market you see that there is a handful of new construction going on and they’re all preaching they don’t want foreign money, don’t want outside investors, but what you’re finding is the starting price sounds good on paper, but then you find out it is a 550-square-foot studio. What family can live in that?” explains Anderson.

“Realistically an investor will buy it and rent it back to a student, for example.

“Or, when you get larger units where a family could live, you realize it requires a 10-15 per cent deposit. You have to put 15 per cent down and then you’re going to tie up your money for 12-15 months.

“First time buyers can buy with five per cent down, so who can afford to tie up 10-15 per cent when you’re just starting out in the marketplace?”

On top of that, many of the more affordable units are the smaller condos, not an option for most young families looking for their first home.

“I find they are contradicting themselves when they say they really want first-time buyers, they want to find local people to buy them, but then with these required deposits you are now taking people out of the equation,” says Anderson.

“Who is left to buy these? Investors.”

He says investors play a crucial role in the real estate market as they buy units to rent out. Rentals desperately needed in Kelowna’s non-existent-vacancy market. But, first-time homeowners should be able to buy these new units too.

With that concept in mind, Anderson’s says his latest project, The Towns on Taylor in Rutland, was a development that had Kelowna families in mind.

“What we have done differently with this development is made it friendly to first-time home buyers,” explains Anderson.

“We’re the only development that is allowing people to come in and buy with five per cent down – if they are a first time home buyer. They are three-bedroom, two-and-a-half bathroom townhouses with double garages and strata fees that are lower, and you can buy with five per cent down.”

They made a decision to keep the 10 per cent deposit requirement for investors etc., but allow first-time homeowners the chance to get in at five per cent.

“We do want people to pickup units for investment reasons to help the rental supply and demand, but at the same time we want first-time homebuyers to step into one of our units.”

Anderson adds that he is not saying his development is necessarily the best fit for each buyer in town, he just wants first-time buyers to do their research.

“Look at all avenues. I just want to educate and inform. Look at the macro, the big picture instead of just focusing on the price,” says Anderson.

“If you can get away with a one bedroom and one bath and you can get in for $300k, sure that is great, but you might need 10-15 per cent down. Whereas if you need something for your family, there may be better options.”

Anderson says that extra 10 per cent could be the difference for a first-time homeowner, or allow them to pay down other debt and get a better mortgage rate.

“It may not sound like a lot. I’m taking five per cent, that development is taking 10, but if you look at a $500k unit – that is the difference between $25,000 and $50,000. What could you do over the next year with that extra $25,000 if you had access to it?”

For more info click here.

To report a typo, email:
newstips@kelownacapnews.com
.


@carmenweld
carmen.weld@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Missing toddler found safe near Beaverdell

The child had been missing in the Clark Lake area for more than two hours

Federal Conservative leadership candidate skirts COVID-19 rules at Kelowna rally

Derek Sloan held a rally in Kelowna that had more than 50 people, which is against health orders from the province

Highway 97 upgrade option for Peachland faces 20-year delay

Peachland council disappointed by highways department decision

Partial closure on Cadder Avenue for utility upgrades

Traffic will be reduced to westbound traffic from Aug. 17 to Sept. 11

Kelowna Hells Angels prospect charged with assault, choking

Jason Townsend, 43, was charged after allegedly choking a woman last weekend

Video: SUV burns alongside the highway near Salmon Arm

Footage of the burning vehicle was posted to Youtube.

Horvat scores 2 as Vancouver Canucks beat Blues 5-2 in NHL playoff opener

Game 2 in best-of-seven series goes Friday night

Teachers to get 2 extra days to prepare for students’ return, now set for Sept. 10

Students will first start with orientation and learn rules of COVID-19 classroom policies

High-volume littering at Cape Scott draws ire from hiking groups

Popular Vancouver Island hiking spot not closing, but frustration about crowding grows

SFU to drop ‘Clan’ varsity team name

The ‘Clan’ name is shortened from ‘Clansmen,’ and was introduced roughly 55 years ago

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

South Okanagan restaurant ranked among world’s best by TripAdvisor

The Hooded Merganser was ranked within the top 10 per cent of all restaurants by TripAdvisor reviews

B.C. to hire 500 more COVID-19 contact tracers ahead of fall

Contract tracers add an ‘extra layer’ in the fight against the novel coronavirus

Wedding party bear sprayed at North Okanagan campsite

Latest criminal activity at the Meadows leaves locals frustrated

Most Read