real estate

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.

No Comments

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

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-

1 Comment

Posted in GTA market 2009 real estate Toronto