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One of the most crucial decisions in life is purchasing a home. Being properly educated
on the do’s and don’ts can make buying a home less hassle free and make it a great
investment futuristically.

Here are the most frequent mistakes home buyers make:

1. Not using a trust advisor
Working with a professional will get you the best price with a hassle free
experience.

2. Looking at homes out of your price range.
It is critical to get a mortgage assessment done before looking at homes to gage
what you can afford. Get a full mortgage pre-approval from your bank or broker
(a commitment from the lender stating the purchase price and your interest rate.)

3. Purchasing the wrong home
Making a wish list of what your home consists of will erase your “regret of
purchase” in the future. For example, number of washrooms, bedrooms, what
type of neighborhood.

4. Not hiring a home inspector to save money
Now a days, even new homes need to be inspected. Checking everything from
the foundation to the roof can distinguish a disaster in the future from a great
future investment.

5. Only visiting the home once.
It’s important to visit your future home more than once. Seeing it in a different
light can change a person’s mind to purchase.

6. Letting fear get the best of you.
Although it is intimidating purchasing a new home, having done your homework
will make you more at ease. Having a fixed asset will set you on your way to
financial freedom.

7. Not prepared for closing costs
Keep in mind, the down payment isn’t the only cost. Land transfer taxes, lawyer
fees, insurance and other costs still linger before the dead is done. Keep all
additional costs in mind.

8. Deciphering your mortgage
It is critical that you “understand” your mortgage. Understanding your mortgage
will save you money in the end. There are many factors to a mortgage,
amortization, payment privileges, whether the mortgage is portable and insurance
needs. Again, doing your homework will have your pockets thicker, not thinner.

9. Understanding purchasing a new and resale home
Both have advantages and disadvantages. Comparing them is key. Resale is
what you buy is what you get. New is having choices from finishes to location.
Although keep in mind there may be construction delays.

10. Preparing for moving day!
Contacting the priorities, movers, utility companies and secure all insurance.
Failing to do so will add more headache and hassle, instead of joy and excitement.

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Posted in buying from a builder new condo new home real estate |

It doesn’t matter whether you are a first-time buyer, an empty-nester, or somewhere in between, you need the services of an experienced, dedicated real estate professional who will understand your goals and adopt them as their own. This is one of the advantages of having a real estate agent that represents ONLY YOU and not bias.  Of course any person (like yourself) can walk into the sales office of the builder and you can speak to their own realtors. But you must remember, their side is bias to yours since their loyalty is to the builder first and second to you. Having a realtor representing you comes AT NO cost to you so really, the benefit is there for you and only you. Therefore, what do you have to loose? Nothing exactly.

One of the most common questions raised when looking to purchase a pre-construction condo is whether to use the expertise of a realtor. Sales representatives at new home sales or new Condo Sales offices are indeed licensed realtors but as a buyer you should have your own representative. Having your own realtor who represents you is to your own benefit. The sales representatives in the new condo/home sales office works for the builder, which is where their true loyalty lies. By having your own representative, you will receive honest and non-biased advice as your realtor is looking out solely for your best interest. Think of it has having your own Lawyer representing you. You wouldn’t go to court to fight your own case without being represented. There are many benefits to using your own realtor such as the following:

• As mentioned above, your realtor works for you not the builder therefore your best interest is at heart.
• Your realtor will be invited to VIP events which gives them access to the best floor plans and prices per square foot before being released to the general public.
• If your realtor has experience in pre-construction he/she will ask the right questions regarding construction financing status, assignments, occupancy and so forth.
• Your realtor will be able to negotiate the agreement in your best interest. As price is usually not negotiable, certain fees (education, park levies) can be taken out or capped within your agreement.
• Your realtor has access to the MLS system which can provide you with prices and useful information of comparable properties in the area.
• Your realtor can keep you updated on the project. Questions concerning construction and occupancy can be easily answered.
• If you are looking to assign your unit, your realtor can help you find a buyer as certain types of advertising is not permissible by the project builder.
• The most important benefit of using your own Realtor is that they have your best interest at heart. Your Realtor will represent you honestly and ethically and will assist you in making the best decision for your needs.

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During the mid winter months of November and December of 2008 was probably the best time to purchase real estate in Toronto.  These months were seen as when real estate hit rock bottom of the negative depths of human despair.  For those who do not follow the real estate market often, it would be hard to fathom since even till now, the economy continues to cut jobs and downsize. According to some Torontonian Economists, the worst is almost over for Toronto’s real estate market and most of us can only hope that the market continues to flourish for us to reap its rewards.  

It was a quick ride with depreciation showing a maximum of 10%. According to TREB statistical numbers, the bulk stabilized and began to grow.  Remember the month of February, this was quite busy for sellers who chose to re-sell their property and buyers were out for a hunt and a good bargain. Almost all of the well priced properties were sold by the end of the month.  According to the Toronto Real Estate Board, sale numbers based on the MLS for the months of February 2009 were down 31% compared to February 2008 – this can be seen as a large improvement from 55% and 45% for December 2008 and January 2009, correspondingly. On the bright side, sales are only down by 18% for the month of March which isn’t so bad as most predicted. New condominium developments are reporting sales again and buyer traffic is continuing to grow.

We are obviously not returning to the seller’s market with multiple bidding wars as sellers use to benefit from but rather, a buyer’s market to a more balanced market where the average time to sell is less than 45 days. This can be seen as a market correction which has been long overdue. It is the buyers turn to reap the rewards of a correcting economy. It’s like that saying, “what goes up, must come down!” and this is the best example of it. With real evidence in market statistics, sales and investments, coming May, this mini correction in the real estate market will soon be over and anything lost through January should be recovered. If you don’t believe me, ask anyone whose made a recent purchase or whose made big money in the real estate game. They will tell you that “time is of the essence” and timing the bottom is impossible. If we were all able to predict this, then wouldn’t we all be rich millionaires by now? But that is not the case and only those who continue to wait like sitting ducks will loose in this money making market. Those who do not have a real estate agent to work closely with them will have to rely on the buzz and scare from the media, but we all know that the media tends to over exaggerate the situation. Those who have real access to hard numbers and statistics will know that investments have not come to a halt and only those who wait will miss the opportunity of future gains. People who wait till next year to invest will kick themselves in the ass!

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A friend of mine forwarded this information to me the other day and I found it to be quite useful. Having been in the real estate field for sometime now, we did see something phenominal happen these last couple of months. For those who invested or just window shopping for properties during the beginning of the year, we all witnessed a quiet moment of silence in the market between January to March. Then suddenly there was a crazy demand for both residential homes and condominiums all over the GTA. From overbidding to multiple offers all across the region, people were beginning to wonder what was going on. Even I was thinking the same thing. We are now midway through September and the ball game hasn’t stopped rollin’ yet! There is no recession for those who believe one is amongst us. And if there is, it is not going to hit us anytime soon.

CHART OF THE DAY
 
Canadians searching for clues on the health of the residential housing market should take a close look at an industry statistic known as the sales-to-listings ratio.

To arrive at the ratio, take the number of homes sold in a month and divide it by the number of active listings for that same month. Real estate agents consider it a neutral market when the ratio is between 24 per cent and 28 per cent. It’s a buyer’s market below 24 per cent and a seller’s market above 28 per cent.

In Greater Toronto, for instance, the ratio soared to 58.8 per cent in June – a V-shaped rebound after bottoming in December and January at slightly over 13 per cent. Thomas Cook, a Toronto real estate agent who tracks the numbers in his region every month, says bidding wars dried up early this year, but have roared back. Potential sellers still think there’s a recession in the housing market, limiting the number of listings, he says. The Greater Toronto Area had 8,035 sales and 15,682 listings in August, or a ratio of 51.2 per cent, compared with 6,318 sales and 25,076 listings in the same month in 2008, or a ratio of 25.2 per cent.  Other major markets bouncing back include Vancouver and Ottawa, Mr. Cook says.
-B.Jang, Toronto Dominion, Sept 2009-

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Posted in GTA market 2009 real estate Toronto |