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'The World Of Real Estate' Category

What’s New In Wasaga Beach Real Estate?

Wasaga Beach is holding its own in new home starts despite the economic slowdown.

Last year saw 250 building starts which is in line with the town’s average long term growth over the last twenty years. With 79 projects currently on the books the outlook is optimistic. This equates to 1000 new homes and a number are nearing first phase approval.

Ray Kelso, Wasaga Beach’s director of planning and development stated “I think we’re going to have quite a busy year.The only thing that’s slowing us down is that people who want to retire here can’t sell their homes in the city.”

Retirees and the semi-retired are not the only demographic group moving to Wasaga Beach.Young couples are attracted by the   property prices especially compared to the GTA and the four season lifestyle. With this demand the average price a resale home in Wasaga Beach increased by 1.8% in 2008. Kelso believes demand for homes in Wasaga will continue to be strong as a bedroom community for young people, who commute to Barrie for work.

Four season living includes hiking, biking, snowshoeing and cross-country skiing on a huge network of trails. In winter, downhill skiing is about a 30 minute-drive away at Blue Mountain or Horseshoe Valley and in summer there’s the longest fresh water beach in the world.

Why You Should Use A REALTOR® To Buy A New Build Home

Would you use a lawyer if you had to defend yourself in court? Would you use the accuser’s lawyer?

Using a REALTOR® to buy a new build home is just as important (maybe even more so) as when buying a resale home.

Sales representatives working in model homes owe a LEGAL obligation to represent and protect ONLY the interests of the seller.These professionals use powerful but subtle tactics to get you to buy a house. A level playing field is achieved only when you have your own Buyer’s Agent, a REALTOR® who enters into a relationship of Agency with someone looking to purchase a property. All of the legal “Fiduciary” obligations are owed to the purchaser. If as a purchaser you want Full Disclosure of all pertinent facts . . . be sure you have your own Agent!

(Fiduciary responsibilities: Full Disclosure; Confidentiality; Competence; Good Faith; Obedience; Accounting.)

A buyers agent will help you avoid common pitfalls, make wise home investment decisions, and bring order to the entire buying process.  A Buyer’s agent’s services are FREE of charge to you and include:

* Working on your behalf to find your new build home.
* Research comparable properties to determine a fair price and terms.
* Prepare your Agreement of Purchase and Sale and accompanying legal paperwork, including any necessary disclosure documents.
* Negotiate for the price, terms and conditions that are agreeable to you.
* Accompany you and your home inspector on a thorough property examination.
* Follow up with your Mortgage Lender, Lawyer’s Office, Developer and others until the home is legally yours.

If You Don’t Buy Now, You’ll Hate Yourself Later

The proposed Harmonized Sales Tax could cost you thousands of Dollars.

The McGuinty government’s 2009 budget could have severe repercussions for home buyers and sellers The plan is to combine the  provincial sales tax  (8%) with the goods and services tax (5%.) The  harmonized sales tax of 13% would start on July 1st 2010.

Senior economists at the Bank of Montreal outlined several  negative side-effects, from holding back first-time buyers to damaging the provincial economy.

GST but not PST is currently paid on newly-built houses in Ontario. Under the proposed plan people who buy a house for less than $400,000 would receive a rebate to offset the new tax, those who spend less than $500,000 would receive a partial rebate, and anyone buying a house costing more than $500,000 would pay the full 13%. The difference between a house priced just under $400,000 and a house priced at $500,000 would be an extra $37,000 in tax.

Possible consequences:

• Builders would prefer to build under the $400,000 mark and might reduce the quality and size as a result.
• Falling demand for new build houses.
• Buyers might have to pay separately for upgrades, landscaping and standard finishes.
• Builders could focus on the very high-end, where taxes may be less of a deterrent to buyers. That means middle-income families could be struck harder.
• Buyers are likely to veer towards resale houses. For a $500,000 house, the tax differential would amount to a hefty $65,000. This would in turn raise the price of resale homes.
• Fewer investors would want to buy condos in the price brackets hit by the tax so fewer units would be built, leading to upward pressure on rents.

One benefit of the HST is that it would reduce builders costs by about 2 per cent, which is the amount they now pay for the embedded PST on building supplies.

Douglas Porter and Sal Guatieri  at the BMO think that one answer is to reduce the HST on new homes from the proposed 13 per cent to 7 per cent (equivalent to the current 5 per cent GST and the 2 per cent embedded PST currently levied on building materials). Additionally the provincial portion of the tax on new homes priced above $400,000 could be graduated so that the tax applies only to the portion of the price above $400,000.

Overall home buyers would see an increase in tax burdens and growing families could face a shrinking supply of move-up, mid-priced homes. An estimated 30,000 construction jobs could be lost and Ontario’s annual gross domestic product could drop by about 0.5 per cent. Just what we need when we hope the economy is emerging from a recession.

Several new build projects are underway or planned for Wasaga Beach and Collingwood. The number of homes selling for over $400,000 and $500,000 are growing even in the traditionally less expensive Wasaga Beach. Now may be the time to move rather than adopting a wait and see attitude; don’t be hit by the effects of the  tax hike in a years time.

The Lazy Homeowners Way To Give Your House Curb Appeal

“Love at first sight.”

As we all know you do not get a second chance to make a good first impression. When selling your house in this buyer market I cannot overstate how important curb appeal is.

Buyers are highly influenced by how the house looks when they first see it. Here are 4 ways to achieve that all important good impression:

Tidy Up

A home that looks well taken care of is always very appealing. Clean all the windows, make sure all the lights are working, clear up any rubbish and put away children’s toys, yard tools and equipment. Make sure all dead leaves and plants are thrown on the compost. Finally make any repairs necessary to fences, walkways and the driveway.Oil squeaking hinges, tighten loose screws, and all the other little things that show a home is cared for.

Paint The Exterior

This not only helps sell a property it can help add value. Go for neutral colours that will appeal to the widest market ( this is true of the inside as well.) Get your realtor to show you similar properties that have sold quickly and see what colours they are.

Landscaping

This does not have to be a major project.Simply ensure the yard looks well maintained. Keep the lawn cut and trim any plants or shrubs. Add some colour to instantly welcome any buyers.

The Front Door

A fresh coat of paint and new hardware will make all the difference.

Top 10 Mistakes 1st Time Buyers Make & How To Avoid Them

“I wish I knew then what I know now.”

From start to finish there are a whole host of pitfalls that 1st time buyers can fall into. Knowing what they are before embarking on the first “deal” can make the whole process easier and much less stressful.

Not knowing what mortgage options are available.

Choosing the right or wrong mortgage can save or cost a buyer thousands of Dollars.Use an experienced mortgage broker that has been recommended and you feel comfortable working with. Your local bank will only promote that banks mortgages; a decent broker has access to a whole range of products.

Not getting a pre-approval for a mortgage.

What can you afford? Knowing this before any viewings can save a great deal of time and stress. A buyer can also be very confident when making an offer and negotiating as there is a definite ceiling on an offer.

Not understanding all the costs of home ownership.

A very common mistake; buying more than you can afford. Not only is their the actual cost of the property  but also home inspection costs, closing costs, moving day costs etc. Add in the day to day running cots of a home and other personal commitments and the money can run out.

Letting Your Heart Rule Your Head.

Most people buy a property with emotion and then justify it with logic. This is especially true of the inexperienced 1st time buyer. However you may end up buying the wrong house OR paying too much for it if common sense is not used. Although an exciting time try to be as objective as possible and not overstretch your bank account.

Not choosing the right location.

Location, location, location.It is very difficult to think bout reselling when you are only just purchasing your first house. But you will want to sell it, most probably between 5 and 7 years later. Think about what affects a resale: closeness to schools, shops, transportation, parks, other planned developments ( a proposed highway at the bottom of the backyard is a big no no) and even local crime statistics.

Rushing In

With the desire to own a property it is very easy to “settle” for a house which is not the best option. Research and double check finances, the area, your own wants and needs so as to make the best choice possible.

Not paying for a home inspection.

This is especially true if a buyer is overstretching and trying to save some money on the initial costs. Usually less than $500, a home inspection can save $1000′s. Even if the seller has a pre-listing inspection, for peace of mind it is worth paying your own expert.

Not understanding the “Agreement of Purchase and Sale.”

There is no such thing as a stupid question when such a large amount of money is involved. Ask the realtor and your lawyer to explain anything you are unclear about. Remember the agreement isa legally binding contract. Special attention needs to be paid to the non pre printed sections that are unique to your deal: closing date, cost,inclusions and exclusions, conditions and waranties.

Not viewing enough homes.

It is very easy to “fall in love” with the first property viewed and it may end up being the “right” one. But comparing several properties will ensure the correct choice is made. A decent realtor should happily organise for you to see several homes and arrange 2nd and 3rd viewings as the choices are narrowed down. Equally the realtor should provide information on local market values so a first time buyer doesn’t overpay . It is then easier to make an informed decision based on facts not emotions.

Not using the right Realtor

Find a realtor who you feel comfortable working with AND one that listens to your requirements. One that is happy to spend time, answer all questions and is not driven by the commission cheque.

More Positive News On House Sales

“Housing sales show two-month rebound” was the headline in The Financial Post on April 16th.

For the second month running the number of homes sold in Canada  rose. March figures showed a 7% increase on February; February saw a 10% increase on January.It is too soon to be called a recovery but it is positive news. At the very least it may signal the return of some confidence to the real estate market.

According to The Post there are a number of influential factors:

• Low interest rates: 5 year mortgage rates at an all time low.

• Government incentives
  
  • Increase in the allowable withdrawal from registered savings plans for first-time buyers to $25,000 from $20,000
  • Tax credit of $5,000 home buyers may count against their incomes

• Large inventory of homes for sale

I can almost hear the Beatles singing ” I read the news today, Oh Boy.”

[youtube]http://www.youtube.com/watch?v=XWjVffR5EdM[/youtube]

25% Of Canadians Intend To Buy A Home In the Next 2 Years

65% Of Canadians Think It Is A Buyers’ Market.

The number of people who say they will buy in the next 2 years is up 4% from 2008 in the 16th Annual RBC Home Ownership Survey. Over half say it makes more sense to buy a home now than waiting until next year.

Karen Leggett, head of home equity financing for RBC Royal Bank, stated that “Low mortgage rates and favourable house prices are influencing home purchase intentions this year and may be the reason why more Canadians are poised to purchase  the next two years.”

The last 6 months or so have seen a “wait and see” mentality regarding the real estate market. This is hardly surprising given the deluge of negative reports we are bombarded with daily. There are problems with the worldwide economy but we need to look more locally and not be overly influenced by the media. The average house price in Collingwood and Wasaga Beach increased last year over 2007 ( a record year) and continues to do so.

One of the most frequently asked questions I hear is ” Are prices dropping?” “Price Drops” are normally the result of a listing price that was initially too high. Confidence seems to be returning just as the snow melts.

Investing In Canadian Real Estate “If Not Now,When?”

“If Not Now,When?”

When Robert F. Kennedy uttered these words he was (obviously) not referring to Income/Investment  Properties. However when even the generally pessimistic media publish a cover story entitled “Real Estate:This Could Be The Buying Opportunity Of A Lifetime” one has to to sit up and take notice.

The April 27th 2009 issue of Canadian Business magazine also quotes on the cover:

” The prospects in Canada are fantastic….I think in the second half of this year we”ll see a very positive change.” & “The opportunity lies everywhere…Now’s the time to organize yourself and get in.”

The article does correctly point out that it is unlikely the Canadian Real Estate Market has it the bottom although nobody can predict when this will happen ( if it hasn’t already.) However historically house prices have always rebounded “and then some about a year or two after a decline.” Put very simply in today’s Buyers Market there is competitively priced inventory and money is cheap. 5 year fixed mortgages are available at under 4%.

Elsewhere I discuss how and why investment property can lead to financial freedom and what the shrewd investor looks for. Just remember the key is finding the right property in the right area at the right price. Barrie is on our doorstep, has a significant pool of renters and house prices where The Numbers Work!

$25,000 Fine, Up To One Year In Jail Or Both For Flippers Under Ontario’s New Home Warranty Act.

Registration Rules For Tarion Warranty Amended On New Home “Flip.”

Any person who buys a new home from a builder but never occupies it before reselling is required to be registered with Tarion. Failure to do so can result in a fine, imprisonment or both.

Tarion which administers the Act has changed the registration requirements for purchasers who resell (“flip”) their homes without occupying them.Previously a detailed vendor/builder agreement was used but now Tarion has introduced a letter agreement that the sellers must provide to the ultimate purchaser. This contains a disclosure page with information such as:

A statement that the sale is effectively a resale.

The original warranty start date.

The status of the remaining warranty.

Contact information to enable the purchaser to check on the status of any claims made in respect of the home. Read the rest of this entry »