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MyDaddyHomes Blogs on Real Estate in the Brampton and Mississauga areas
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Explore your options before making the leap to being a landlord.
Many of us are interested in learning more about buying an investment property and renting it out. But where to start? While this can prove to be a good way to steadily build wealth, this type of investment is a major commitment and is certainly not for everyone. Making the leap to being a landlord requires careful consideration. Understanding the risks involved, as well as collecting sound information and advice are the keys to planning a successful venture. Here are some things to bear in mind as you explore your options:
Research the local market. Get up-to-date information about your local rental and real estate markets so you can make an accurate estimate of how much you can charge for rent, as well as how much you should pay for the property. Your real estate agent has expertise on local conditions and can provide solid guidance in this area.
Make sure you add up all the costs. in addition to expenses such as a mortgage and taxes, the longer you plan to own the property, the more you'll most likely need to invest in maintenance and repairs. For maintenance, a rule of thumb is to set aside about two percent of the home's value per year. A home equity line of credit is a good way to have access to contingency funds should you need to pay for repairs, gaps between tenants, or other expenses. Don't forget to factor in the cost of fire insurance, and for recreational property potentially other types of insurance (against floods or windstorms) depending on the location. Liability insurance for landlords can cover risks such as malicious or accidental damage to your property by a tenant, any legal liability should a tenant injure themselves, and lost rental income should tenants move out without paying.
Learn the tax implications.
Mortgage interest and many costs associated with buying the property may be written off. Your accountant can provide full details on the tax consequences of such an investment.
Know the law.
You should study up on the rental property laws in your jurisdiction, including fair housing laws, to make sure you know your rights and obligations and also those of your tenants.
Seek advice on financing.
There are unique aspects to financing rental properties: lenders typically expect a down payment of at least 20%. Another option is to draw on the equity from another of your properties. In qualifying for this mortgage, a maximum of 50 to 80% of rental income may be used as "other income" in your mortgage application. Many investment property buyers use the equity in their primary residence for a down payment. Options for doing this include a "cash-out" refinance, a home equity loan or an equity line of credit. A mortgage broker can offer a range of unique products and professional advice on the ins and outs of financing investment properties.
Ask yourself: Are you willing to be a landlord?
This can be time-consuming and for some it can be hard to remain emotionally detached when they have to rigorously screen tenants to make sure they're reliable, track down overdue rents and field repair calls. You may decide to let a professional property management service handle the nitty gritty of dealing with tenants. If you choose to rent your property through a management company, expect them to take anywhere from 10 to 50 percent of the rental income. Take the long view. Having a long-term investment strategy in place can help you ride out any difficulties, such as a dip in the price of the property, periods with no tenants, or having to pay for unforeseen maintenance. When it comes to rental properties, wealth is earned over time, not overnight.
Compliments Of Carlo Carpino Mortgage consultant A MyDaddyHomes Contributing Writer Contact MyDaddyHomes Today For a List Of Investment Properties
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One of the oldest juridical principle states "Ignorance of the law excuses no one". It means that even if we are unaware of the law, we still cannot escape liability for violating it. Universal Abundance Laws follow the same principle. You might not be aware of them, but it does not mean that they do not influence your life and that you will not have to face the consequences for not following them to the letter.
If you feel that no matter what you do or how much you work, you still do not make enough money or live below your expectations and abilities, make sure that you read this!
1. THE LAW OF PAYMENT. There is nothing free in the world. For anything you want to receive you have to pay first, be it with your money, time or energy. You pay for both - action and inaction. Usually in the long run inaction costs us a lot more than action does.
2. THE LAW OF ATTRACTION.You can attract into your life anything that you focus your mind on. You can focus your energy on what you Want to get, Do not want to get or Expect to get. If you put your focus towards lack of money, a boring job, bad health, or poor relationships, the Law of Attraction will respond by giving you more of these things. Similar if you focus on positive aspects of your life you will create more situations of joy, happiness and abundance.
3. THE LAW OF REQUEST.You always get what you ask for. If you are not asking for anything, you will get nothing. If you do not know exactly what you want, prepare yourself for a big unpleasant surprise, that most of us call a "problem".
4. THE LAW OF THINKING.Our reality is just a reflection of our inner thoughts and decisions. If you can not visualize it, you can not get it. People become wealthy because they decide to become wealthy. Those, who remain poor, simply have not made the decision to change their current situation. Any change always starts with a shift of attitude.
5. THE LAW OF ENERGY EXCHANGE.The law of conservation of energy states that the total amount of energy in the Universe remains constant. There should always be healthy balance between what you give and what you ask for. If you give more than you take, you will quickly exhaust your resources. If you take more than you give, you will block the abundance flow. Material objects,
6. THE LAW OF SIMILARITY. Like attracts like. Abundance creates more abundance. Just as scarcity attracts more scarcity. The easiest way to activate a flow of abundance is to pass on to someone what you would like to receive. When you give something away, without expecting anything in return, you declare to the Universe that you already have more than you need. By doing that you send out into the world an energy of abundance and that energy comes back to you.
7. THE LAW OF CAUSE AND EFFECT. Any natural effect in our life has a natural cause. You cannot grow a fruit without planting a seed first. Similar, results that you receive today are the "fruits" of your past decisions and actions. If you do not like the results that you are getting, it is probably time to start doing something differently or make different choices.
8. THE LAW OF RESISTANCE. Activation of the flow of abundance does not necessarily guarantee that your financial situation will improve. Energy always tends to choose the path of least resistance. If you are doing everything right and still do not see any improvements in your financial situation, it can mean only one thing - your negative beliefs or inner blocks do not allow the abundance energy to flow into your life. Ask yourself, why are you not wealthy yet? What is blocking you from getting what you want?
9. THE LAW OF RELATIVITY. Everything in this life is relative. Your income is just a number unless it has point of reference. If you compare yourself with the richest people of the world, you will constantly feel lack of money and, consequently, attract more lack. If you compare yourself with the poorest of the world, you may realize how blessed you are.
Gratitude is a great way to keep your mind concentrated on abundance and wealth. Like a powerful magnet it keeps us in the flow and aligns our energy with receiving everything that we desire. There is always something to be grateful for. Take a moment to say "Thank you!" for all the wonderful things that you already have in your life. And the Universe will take care of the rest.
Article compliments of Arina Nikitina, Self Help Blog
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Top 10 Home Buying Mistakes To Avoid Shopping for a home can be a very emotional experience, time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a home tend to overlook some very critical items. Don't allow your home purchase to turn into an expensive process. Learn about the top 10 Buying mistakes to avoid. 1. Looking for a house without getting pre-approved by a lender:
When you are pre-approved, you are effectively a cash buyer. This makes it much easier to negotiate with the seller. Do not mistake pre-approval with pre-qualification; pre-qualification is only the first step in gaining pre-approval. Contact MyDaddyHomes for a fast 48 hours pre-approval. 2. Failing to check out the neighborhood thoroughly before buying:
How do traffic patterns change depending on the day, or even the time of day? Are there any future developments in the works? Is that nice green space down the road may be actually zoned for high-rise development? Ask around - check it out first. 3. Making an offer based upon the asking price, not the actual market value:
Do your homework. What have similar properties sold for in the immediate area? How long were they on the market? How does this one compare? Is it over-priced, under-priced, or fair value? MyDaddyHomes provides it's clients with an up-to-date market analysis of the intended home purchase, so you don't pay more for a home than it's actually worth. 4. Not knowing your rights and obligations:
Not knowing your rights you can be taken advantage of. If you do not know your obligations, you may inadvertently cause friction between yourself and those with whom you have a contract. 5. The most critical of all the mistakes are mistakes 5-10. If you are thinking about buying a home within the next 30-90 Days, contact us today for a FREE Buyer Consultation and learn how mistakes 5-10 can cost you money, time, frustration and losing out on your dream home. Click here for details.
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Once you have decided to purchase a home, don't make the most common mistake most buyers make by calling any agent to show you homes. Make sure you understand how Buyer Agency assists you when buying a home.
The purchase of your home can be one of your most important financial and personal decisions that you will ever make. Finding and selecting the right Realtor to assist you is equally as important. Working with a Realtor who is reliable, accountable, and responsive and one who pays attention to your individual needs and who acts on your behalf; will save you time, money and aggravation.
By asking a Realtor to work for you exclusively, you create an Agency Relationship and become the Realtor's client. You must always know who the agent is representing when searching for a home. If you do not have a Buyer's agency agreement with your agent, the agent is Technically representing the Seller.
A Buyer's agent is committed to doing whatever it takes to find the client the ideal home that suits their needs It takes endless hours of searching the MLS, previewing houses, providing market analysis of homes and working with other agents - A Buyer's agent commitment is to give you the client 100% effort until you find the right home, in the right neighborhood at the right price. The Legal Obligations Of a Buyer's Agent To The Client:
Loyalty: Total and undivided loyalty. Confidentially To never disclose your confidential details to any other party to a transaction. Obedience: To obey your lawful instructions Accountability: We are accountable for our actions. Reasonable Care: We use expertise, knowledge and negotiating skills for your benefit. Disclosure: To disclose, both the positive and negative facts about the property The Benefits of working with a Buyer Agent:
- We help you to locate, evaluate and negotiate the purchase of a property which meets your needs
- We conduct a Market Analysis of the property, so you don't pay more than what the property is worth
- We assist you in making an objective comparison of all competing properties comprehensive enough for you to make an informed decision as to the value of the property in question and to make an offer accordingly
- We give you first access to any new listings that comes on the MLS system that suits your buying criteria
- We disclose to you all the facts about the property (good and bad) and also any information we have about the seller
- We negotiate a strategy most likely to achieve your desired outcome
- We help you to prepare and submit the first offer and protect your interests
- We negotiate with all interested parties on your behalf
- We maintain confidentially in all your personal and financial details
- We Provide you with access to independent solicitors, Mortgage Brokers, Home Inspection consultants.
- All these Services are FREE of Charge to the Buyer
In Summary this is what we do best for our clients:
- We fight on behalf of our clients
- We negotiate the absolute best price for our clients
- We protect our clients interests
- We find our clients the best home that meets their needs
- We simplify the transaction for our clients as much as possible.
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Buying a home is a big financial commitment - very likely, the biggest financial investment you'll ever make. And if you don't go about it the right way, you could end up making costly mistakes and losing out on buying the home of your dreams.
Before you start searching on the net and contacting agents to show you homes, you must be aware of what Realtors do to help their clients find the right homes at the right price. MyDaddyHomes have put together the top ten things that we do to help our clients: 1) FREE Buyer Consultation:
This is the most important and critical step in the purchase of a home, especially so for first time buyers. Before we start working with any prospect, we schedule a one hour informational meeting at our office to learn about your wants and needs and review with you the home buying process. This is also a good time for you to learn about MyDaddyHomes and what we do to help our clients achieve their dreams. 2) Looking out for your best interests:
By asking MyDaddyHomes to act on your behalf during the purchase of a home, you create an Agency Relationship and become a client. We always owe our clients full fiduciary duties, such as loyalty, confidentiality, accountability, duty of care, obedience to all lawful instructions, and full disclosure of all pertinent facts. 3) Getting the best deal - Know the Market:
MyDaddyHomes know the market, we tell you: What have similar properties sold for in the immediate area? How long were they on the market? How does this one compare? Is it over-priced, under-priced, or fair value? What type of market is it - is it a Seller's, Buyer's or a Balanced market? By having this information at your fingertips, you are in a better position to negotiate the best price with the seller and take advantage of any opportunities that may show up. 4) MyDaddyHomes negotiation expertise, since 1986:
One of the most important functions we do is to negotiate on behalf of our clients. When you purchase a home, you want the best deal possible. Our job is to facilitate this by drawing up legally binding contracts, assisting in negotiating offers, offering advice and perspective and, if needed, acting as a mediator during any potential disputes between you and the seller. 5) Finding the right home in the right neighborhood for you:
MyDaddyHomes spend a lot of time and energy making sure we know the local market inside and out. We are familiar with the current market values of properties in the areas you are looking and we use all our resources in helping you find the right home. 6) Helping you determining your "wish list":
What is it that you want from your new home? A particular style, design, lot type? Proximity to schools, services, work? A pool? A two-car garage? A specific price range? MyDaddyHomes will help you identify exactly what it is you are looking for and ensure that you get to see all the homes that meet your criteria. 7) Professional experience:
The MyDaddyHomes Sales team, brings to the table all of our knowledge, training and negotiation skills, and will explain exactly what you can expect from the buying process. We explain to you your rights and obligations, help you organize and strategize, and discuss financing options. 8) Assist with financing needs:
MyDaddyHomes are familiar with all of the complexities involved in the pre-qualification, approval and negotiation of mortgage rates. Like many industries, banks are experiencing quite a bit of competition and are often willing to flex from their quoted rates. We will find you the most competitive rates and terms available. 9) Access to Multiple Listing Services:
As REALTORS we have exclusive access to the Multiple Listing Service (MLS). It is one of the most powerful and effective marketing tools available, giving all realtors nation-wide access to all properties. The MLS system also allows MyDaddyHomes to examine all properties for sale and short-list the ones that are right for you. This not only offers more choices but also saves you valuable time and effort. 10) MyDaddyHomes are members of the Canadian Real Estate Association (CREA). This organization requires all of its members to adhere to a strict Code of Ethics and Standards of Business Practice. The Code and Standards are very important because they assure that MyDaddyHomes offer the highest level of service, honesty and integrity possible to our clients. CREA also ensures that all of its members are knowledgeable and highly trained in order to better serve the public and offers ongoing education courses so that REALTORS continue to meet the highest professional standards in an ever-changing industry. 
Get the Keys to your New Home. Contact us today
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In today's highly competitive market there is a vast array of choices to be made when deciding on the type of dwelling you wish to reside in. This article will focus on the advantages and disadvantages of buying a new home versus a resale home.
Advantages of a New Home: One of the primary advantages of buying a new home is the ability to decorate your home from the beginning exactly the way you want. You can pick all the colors, which range from paint to carpet. You can also make the tile and cabinetry selection for the kitchen and bathrooms. Often times, new homes will have more modern conveniences, better insulation and can be more energy efficient.
Disadvantages of a New Home: Unfortunately, with a new home purchase you should be prepared for the on-going construction you will find around you. Chances are that your lawn will not be in, your driveway will be gravel and your street will turn into a sea of mud whenever it rains or snows. If things are going to go wrong with a newly constructed house, they will appear in the first one to two years. As the house settles you may find cracks appearing in the walls of the basement.
There are additional expenses associated with new homes that you will not typically find in a resale home. For example, you may have to spend money for appliances, curtains, drapes, upgrades, landscaping, air conditioning, etc.
Taxes such as the HST will apply. However, you may qualify for a rebate of part of the HST on homes that cost less than $400,000. Closing costs are typically higher for new homes. The purchaser will pay for such additional costs as the New Home Warranty Program, tree planting, utility hook ups and paving of the driveway. Usually, when you buy a new home, you don't have an opportunity to see the actual layout. All that is provided is a blueprint and in many cases the end product may be a disappointment to the purchaser. Additionally, there is the uncertainty as to who will be your neighbors. Advantages of a Resale Home: The major advantage of buying a resale home is that you are moving into an established neighborhood. Your lawn is green, your shrubs are growing, your driveway is paved and your trees are well enough established to give your street a feeling of permanence. You can find out information about the neighborhood
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In terms of investment, a resale home will often give you more for your value than a brand new home. Many owners put thousands of dollars into home improvements ranging from small items, such as landscaping, to major projects, such as a finished basement. Although these improvements will make the home more attractive to potential buyers, they may not increase the market value of the home. A $30,000 swimming pool or a $12,000 finished basement or even $5,000 worth of shrubs may make the home very attractive. However these additional costs incurred may not necessarily increase the market value of a home by the investment made. The buyer gets the home at its real market value, which is based on comparable homes for sale or sold in the neighborhood. All those expensive extras may come to the buyer at little or no cost.
Taxes such as the HST does not apply on a principal residence.. With a resale, the vendor's asking price is almost always negotiable downwards unlike the builders list price which is usually firm. Any extras or changes are added to the list price of a new home. Also homes that are 1-5 years old are still considered new, you get the best of both worlds, resale and fairly new. So there you have it, Contact MyDaddyHomes if you want more information on buying new or resale.
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As you may know, the Canadian economy, for the most part, is influenced by the U.S. economy, which is still struggling, but some sectors are showing some signs of recovery. Recent news that investment guru Warren Buffett felt the U.S. economy was strengthening has increased market activity there in the past week.
For the real estate sector in Canada, the buzz words are "balanced market", which could easily turn into a buyer's market as interest rates remain low and sellers reduce their asking prices to make the sale. Chris Potter, a tax specialist at PriceWaterhouseCooper writes in a report called Emerging Trends in Real Estate 2011, "Rising interest rates coupled with tight bank requirements and broader economic concerns tamper down a recent home buying spurt, particularly in Ontario and B.C., where purchasers stepped up activity before the HST went into effect." The market did experience a burst of activity prior to the implementation of the HST. Then, sales slumped over the summer, and while the fall sales came late, they did manage to pick up. In 2011, the Canadian Real Estate Association predicts that the balance between supply and demand will remain stable, which is good news for both buyers and sellers. Sellers can feel confident about price stability and purchasers will feel less pressure to make the quick offer.
A report released in November, 2010 by the Canadian Association of Mortgage Professionals maintains that the residential mortgage market is strong and a vast majority of Canadians could easily afford monthly increases of $300 dollars or more in their monthly payments. As of last August, there was over $1 trillion dollars in outstanding residential mortgage credit in Canada.
With all that said, timing the market perfectly is difficult. Usually consumers will take a look at their personal finances and then decide if they can afford to buy a house, or move up. However, Canadian consumers are also paying down their debt before the Bank of Canada starts to push up its interest rate, which will likely happen this spring. So that is good news. And since any rise in interest rates will be modest, purchasing a home will still be affordable, especially for first time homebuyers who will continue to dominate the market.
If you're considering a home purchase, or if you have friends or family who would like to learn more about their options, please consider a MyDaddyHomes mortgage specialist.
Article compliments of Carlo Carpino, a MyDaddyHomes mortgage specialist and contributing writer: You may contact Carlo at: 905-796-6661
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In 1994, the Government of Ontario proclaimed Bill 120, which permitted second units in houses. The bill permitted the units, despite Brampton's municipal zoning bylaws, if the units met health and fire safety standards. On November 16, 1995, the Government of Ontario introduced Bill 20, restoring to municipalities the right to outlaw basement apartments. Bill 20 became effective on May 22, 1996. Bill 20 prohibits new apartments in houses after May 22, 1996. The bill allowed homeowners to keep apartments in houses that tenants or other residents occupied on or before November 16, 1995 - if they conform to the requirements of the original Bill 20. It also allowed apartments that homeowners built between November 16, 1995 and May 22, 1996 if the City issued a building permit. What is a basement apartment (or "Secondary Suite")? A basement apartment is a self-contained apartment consisting of a room or rooms in a single or semidetached house. A basement apartment may be in any part of the house, not necessarily in the basement. Some people call these apartments granny flats, nanny suites, accessory apartments and second suites. The City's bylaw refers to them as "residential units." A self-contained apartment must have a separate means of entry (which may be through another unit), a kitchen (or cooking area) and bathroom facilities. A self-contained apartment may be as small as a single room that contains all of these features. However, if you rent a room in a house or a flat with a shared entrance, kitchen and bathroom facilities, this bylaw does not apply to you. Are basement apartments legal in Brampton?
About 3,000 homes in Brampton have legal basement apartments that homeowners built after the Government proclaimed Bill 120. For these units to be legal, the owners had to have built them before November 16, 1995 and the owners had to have registered them with the City of Brampton before January 31, 2006 or they had to have legal non-conforming status.
Any basement apartments that owners have built since November 16, 1995 are illegal in the City of Brampton. A single or semidetached registered home can only have one basement apartment. The City strictly prohibits homes that owners have subdivided into more than two units, unless the City has specifically zoned the property to permit multiple units. The City has zoned very few properties as triplexes.
How safe are legally registered basement apartments in Brampton?
All legal registered basement apartments in Brampton had to comply with the Building Code and Fire Code when the City approved them. If the owner afterwards modified the home or added more units, the owner would have had to get a building permit and arrange for City staff to inspect the property before construction could begin. What should I know before buying a home with a basement apartment?
Your real estate agent or lawyer must confirm with the City that a home for sale has a legally registered basement apartment or is legally non-conforming and complies with the Building and Fire Codes. A code of conduct requires real estate agents to fully and fairly disclose all information about a property for sale. Typically, real estate agents use the caution "Vendor does not warrant retrofit status" when listing homes with doubtful legal status. Consumers should seek further legal advice before offering to buy these homes. Benefits of a legal basement apartment:
- Peace of mind - By having the City authorize a second suite, you will know you did all that you could to make a safe healthy home for you and your tenant.
- Reduced liability - You can get adequate insurance coverage.
- Improved relationships - A legal and safe second suite is likely to improve relationships with your tenants, your neighbours and with the City.
Risks of an illegal or unsafe basement apartment: - Increased liability - You, as a homeowner, are responsible for meeting established standards for a second suite. If anything, such as a fire, happens, you would be liable, because you failed to meet requirements.
- Loss of insurance coverage - Building a rental unit in your home is a major change to your home. If you don't let your insurance provider know that you have changed how you are using your home, you could, in fact, make your coverage "null and void". (This means that you would no longer have any insurance coverage.)
- Limited damage recovery - An insurance policy does not cover the costs for rebuilding your home to meet current standards. Your insurance company is only required to cover the costs of restoring your home to the state that it was in when you bought your policy, before any damage.
- Prosecution -- If you do not meet City codes, you are breaking the law. You run the risk of being charged and can face fines of as much as $50,000 -- or even a year in prison - for each charge.
- Financing - Banks and other lenders don't generally consider income from an unauthorized basement apartment when you try to qualify for a mortgage loan.
- Tenants - You are a landlord. You must maintain your basement apartment in good operating order and you must follow all fire safety laws. Tenants may apply to reduce their rent if the unit fails to meet municipal health, safety, maintenance and property standards.
- Tenant insurance - Your homeowner's policy will not cover property that a tenant of an unauthorized apartment owns.
Can I legally convert vacant space in my home into a basement apartment? No. The City's zoning bylaw does not permit new basement apartments. If you did not have a basement apartment in your home before November 16, 1995, you cannot add one. A home built after 1995 can never have a legal basement apartment. You have to ask the City to change the zoning bylaw before it can permit a new basement apartment. Asking the City to change the zoning bylaw requires you to submit a zoning bylaw amendment application and a fee of $7,759 to the City's Planning, Design and Development Department. The staff of the department will process your application and recommend whether City Council should approve your application to change the zoning bylaw. The rezoning process includes: - City staff holding a public meeting to allow anyone living within 800 meters of your property -- or any other person interested in your application -- to comment.
- You post a sign on the property, detailing the nature of your application.
- City Council decides whether to approve or refuse to change the zoning.
You or anyone who attended the public meeting, expressed a view or made a written submission can appeal City Council's decision on your zoning application to the Ontario Municipal Board. The zoning amendment process can take about six months to a year to complete. For further information on how to apply for a zoning amendment, contact the Planning, Design and Development Department at 905-874-2050. Can I still register an older home that had a basement apartment before November 16, 1995? A home with a basement apartment that a previous owner had not registered with the City of Brampton may still have legal non-conforming status. Contact Enforcement and By-Law Services to determine whether the home has this status. If City staff investigate the situation and discover enough evidence to prove that the home had a basement apartment before November 16, 1995, the staff can add your unit to the City's Registration List -- if you have complied with the requirements under the Building Code and Fire Code and you have clearance from the Electrical Safety Authority. Converting and upgrading the apartment to meet standards may cost you more than $15,000. However, you may also qualify for a grants for converting your property through the CMHC, Cananda and Mortgage and Housing Authority. If staff do not find enough evidence that the home had a basement apartment before November 16, 1995, the City will require the homeowner to dismantle the unit or face prosecution. Article compliments of the City Of Brampton. |
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There are so many factors when dealing with investment properties. How can one list all of them in a short article, you can’t. What I can say as a Real Estate Broker, is that when you feel like investing, please do your research. Remember that you are allowing a potential person who you don’t know to occupy your property, that you paid good money for and in a great location. Here are 7 tips which can help to alleviate some of the potential downfalls that can happen with an investment property.. 1) Ask for a credit check. This allows you as the landlord to see the potential tenant past history, in regards to their financial stability. If they don’t have any loans or credit, see if they have co-signers. Having the cold hard facts is a step forward. 2) As a landlord having the tenant show you government-issued photo ID is essential to alleviate potential problems. Additionally, ensure that only the persons stated in the rental application will be occupying the unit. Make sure that they aren’t sub-leasing to a third party, without your consent. 3) Know your rights and responsibilities. Make sure to read the landlord and tenants act. There is vital information that will help answer many questions and concerns. 4) Call their past references, doing an in depth search on who they are, where they lived and worked is an essential step to follow. Knowing more in the initial rental stage is much better than finding out at the end of the transaction. 5) Schedule a face-to-face meeting with the potential tenant(s). Having information on paper can sometime be misleading. Engaging with the tenants(s) will allow you to find any potential issues. Additionally, establishing communication up front is always the best option to a successful transaction. 6) Prior to allowing the tenants into the unit, do a pre-inspection. This allows you as the landlord to find any defaults from the previous tenant. Also, this helps build rapport between each party. Furthermore, towards the end of the tenant’s contract, do a post inspection.
7) Get involved, pay attention to your tenants needs. Don’t just leave them to their own. Schedule inspections or if you don’t want to call it an inspection. Schedule a friendly get together at the unit. Become a friend instead of just a landlord. Investing can be an excellent method to create passive and portfolio income. Just know what you are getting involved with.
Contact MyDaddyHomes if you are thinking to purchase an investment property. We will help you through thru the process and also find you great tenants at the same time. Call us today.
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Equifax and Trans Union are two large bureaus which collect your score. A credit score is a number between 300 and 900; the higher your number the better. A credit score of over 700 is considered very good. Generally, the better your credit rating the lower the interest rate at which you will be able to access loans.
1) Pay every account on time- This sound really simple but there is real beauty in simplicity. If you cannot make payments, make sure you are never 60 days past due. Some creditors will not report you if you are under 30 days past due but they will definitely report you for 60 days over-due. So play it safe and pay on time. Any late payment reported on your credit history can remain there for seven years.
2) Activity counts on each and every account- A lot of people have credit cards that they never use. I am advised that this actually hurts your credit score since your file isn't "active" on particular accounts. Activity generally means that you are using a particular account every 3 months or so.
3) If you have to, cancel the newest credit instrument first: Remember that credit history and debt to credit ratios count. If you cancel a long standing account (assuming its in relative good shape) you are erasing credit history and increasing your total debt to credit ratio since the available amount of credit to you just decreased pushing your ratio up.
4) Divide the cost of large purchases among several accounts: If you buy a dishwasher and max out one credit card to do it, your debt to credit ratio increased to 100% on that account which decreases your credit score. Split the purchase of big ticket items between several credit cards and try to keep the debt to credit ratio on each card under 50% (i.e. only use 50% of the credit available under each card).
5) Do not apply for a lot of credit at once: This is a particularly important tip for students who have just graduated or recent immigrants without a domestic credit history. If you do need credit, try to consolidate it with one institution which only has to run your credit score once. For example, apply for a credit card and a line of credit at one bank or at the same institution that is administrating your student loan; it will only require one credit check and, if you subsequently apply for more credit at that same institution, at least they will know that all the new accounts are with them.
6) The Two-Two-Two Rule: For fairly good credit history most lenders would like to see at least Two active trade lines on your credit report, with a credit limit of at least Two thousand dollars ($2,000), and for a period of at least Two years.
If you re thinking of applying for a mortgage, start creating a good credit history on each account. You should ideally keep several accounts in good standing (and with a low debt to credit ratio) for at least 6 to 12 months minimal. It will increase your score and save you money! Article compliments of Art Ricknauth: Mortgage Broker with MyDaddyHomes.
Sincerely Edison and Arlene Samuel The MyDaddyHomes Sales Team 416-258-3079, 647-289-0038
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One of the oldest juridical principle states "Ignorance of the law excuses no one". It means that even if we are unaware of the law, we still cannot escape liability for violating it. Universal Abundance Laws follow the same principle. You might not be aware of them, but it does not mean that they do not influence your life and that you will not have to face the consequences for not following them to the letter. If you feel that no matter what you do or how much you work, you still do not make enough money or live below your expectations and abilities, make sure that you read this!
1. THE LAW OF PAYMENT. There is nothing free in the world. For anything you want to receive you have to pay first, be it with your money, time or energy. You pay for both - action and inaction. Usually in the long run inaction costs us a lot more than action does.
2. THE LAW OF ATTRACTION. You can attract into your life anything that you focus your mind on. You can focus your energy on what you Want to get, Do not want to get or Expect to get. If you put your focus towards lack of money, a boring job, bad health, or poor relationships, the Law of Attraction will respond by giving you more of these things. Similar if you focus on positive aspects of your life you will create more situations of joy, happiness and abundance.
3. THE LAW OF REQUEST. You always get what you ask for. If you are not asking for anything, you will get nothing. If you do not know exactly what you want, prepare yourself for a big unpleasant surprise, that most of us call a "problem".
4. THE LAW OF THINKING. Our reality is just a reflection of our inner thoughts and decisions. If you can not visualize it, you can not get it. People become wealthy because they decide to become wealthy. Those, who remain poor, simply have not made the decision to change their current situation. Any change always starts with a shift of attitude.
5. THE LAW OF ENERGY EXCHANGE. The law of conservation of energy states that the total amount of energy in the Universe remains constant. There should always be healthy balance between what you give and what you ask for. If you give more than you take, you will quickly exhaust your resources. If you take more than you give, you will block the abundance flow. Material objects, thoughts, emotions and experiences exist to be shared with others. Otherwise, they lose their purpose.
6. THE LAW OF SIMILARITY. Like attracts like. Abundance creates more abundance. Just as scarcity attracts more scarcity. The easiest way to activate a flow of abundance is to pass on to someone what you would like to receive. When you give something away, without expecting anything in return, you declare to the Universe that you already have more than you need. By doing that you send out into the world an energy of abundance and that energy comes back to you.
7. THE LAW OF CAUSE AND EFFECT. Any natural effect in our life has a natural cause. You cannot grow a fruit without planting a seed first. Similar, results that you receive today are the "fruits" of your past decisions and actions. If you do not like the results that you are getting, it is probably time to start doing something differently or make different choices.
8. THE LAW OF RESISTANCE. Activation of the flow of abundance does not necessarily guarantee that your financial situation will improve. Energy always tends to choose the path of least resistance. If you are doing everything right and still do not see any improvements in your financial situation, it can mean only one thing - your negative beliefs or inner blocks do not allow the abundance energy to flow into your life. Ask yourself, why are you not wealthy yet? What is blocking you from getting what you want?
9. THE LAW OF RELATIVITY. Everything in this life is relative. Your income is just a number unless it has point of reference. If you compare yourself with the richest people of the world, you will constantly feel lack of money and, consequently, attract more lack. If you compare yourself with the poorest of the world, you may realize how blessed you are.
Gratitude is a great way to keep your mind concentrated on abundance and wealth. Like a powerful magnet it keeps us in the flow and aligns our energy with receiving everything that we desire. There is always something to be grateful for. Take a moment to say "Thank you!" for all the wonderful things that you already have in your life. And the Universe will take care of the rest. Article compliments of Arina Nikitina, Self Help Blog
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Buying or selling a home is a big business transaction. That's why it's so important to select, in advance, an experienced team of experts and professionals you can trust. These skilled and knowledgeable individuals can vary, but usually include the services of a REALTOR®, a lender, a lawyer, a home inspector and an insurance agent. REALTOR®:
In Ontario, a REALTOR® is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). This individual has successfully completed an intensive course of study and has skills, knowledge and experience that most buyers and sellers don't have. He or she must adhere to provincial law and abide by a National Code of Ethics, ensuring you a high level of service, honesty and integrity. The REALTOR® you select should be someone that knows the neighborhood you live in or want to live in and who can provide you with sound, effective advice. A REALTOR® also acts as a mediator during the real estate transaction and can advice you on when to bring in the other experts or professionals. Lender:
Few people buy a home for cash. Most home buyers usually combine savings with money borrowed through a financial arrangement called a mortgage. Before looking for a lender, ask your REALTOR® to explain the many mortgage options available today. When deciding which financial institution or lender to deal with, start with your own bank, credit union or trust company. They already know who you are. Then shop around and compare what different lenders have to offer. You should begin your search for a lender when you start your search for a home. Lawyer:
Whether you are buying or selling, a lawyer will represent your interests. It's a good idea to have one on stand by from the start. Documents such as the agreement for purchase and sale are complex and should be reviewed by an experienced lawyer. When an agreement is reached, your lawyer will ensure you receive valid title to the property and that it is clear of any registered claims. He or she will also calculate any taxes and adjustments that will compensate the seller for money already paid on services and other matters related to the property. Home Inspector:
As a buyer, you can avoid expensive surprises by bringing in a home inspector as a condition of your offer to purchase. The older the home, the more likely there will be problems. Being aware of any structural defects, will help you decide whether to buy the property at all, or negotiate a lower price to compensate for anticipated major repairs. Insurance Agent:
Creditors and mortgage lenders, almost without exception, require insurance on the home you buy. This insurance must be in place before any purchase can be finalized. Although you may be able to negotiate a better rate using the same insurance company you have other policies with, it still pays to shop around. Hints For Choosing Your Team: - Interview a minimum of three individuals in each field of expertise before choosing the right one. Real estate is a very competitive market; you can afford to be selective.
- Check their qualifications and record by asking for references.
- Question them in detail about their experience and familiarity with the kind of real estate transaction you require their services for. Are they familiar with the neighborhood you are buying or selling in?
- Ask about their fees and how/when they expect to be paid. Can you afford their services? If their rate is too high for your budget, you may not use them as much as you need to because of the expense.
- Do you feel comfortable with these individuals. Are they friendly and approachable? Do they offer advice? If you feel uneasy, you may not use them as much as you should.
REALTOR® is a registered trademark of REALTOR Canada Inc., a company owned equally by The Canadian Real Estate Association and the National Association of REALTORS® and refers to registered real estate practitioners who are members of The Canadian Real Estate Association. Used under license. Article Compliments of The Ontario Real Estate Association _________________________________________________
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As of April 17th/2010, the Federal Government implemented changes in the mortgage market that will heavily affect first time Buyers and families with one income. The reason for the change, the government is saying, is to protect Canadian Homeowners from overextending themselves when interest rates move-up.
What are the changes? Buyers will now have to qualify at a higher rate depending on the type of mortgage they are seeking. It is startling when you look at the numbers and who qualifies and who does not, when you bring any sort of debt into the picture, clients qualify for way less. This step by the government alone will cause a correction in the real estate market as supply increases and people are less qualified to purchase a home.
Conventional Mortgages Qualification: A Downpayment of 20% or more of the purchase price.
Any variable RATE mortgage with a 1 year, 2 year and 3 year term will be qualified on the 3 year discounted rate (currently 3.85%) a 4 year term will be qualified with the 4 year rate (currently 4.34%) a 5 year term will be qualified with the 5 year rate (currently 4.64%). For conventional mortgages it is not that bad.
High Ratio Mortgages Qualification: A downpayment of less than 20% of the purchase price.
For loans with a fixed rate term of less than 5 years and for all variable rate mortgages. Regardless of term, the qualifying rate is the greater of the Benchmark rate: The Benchmark rate is currently 5.85 and is rumored to be moving to 6.10. BUYERS WILL NOW QUALIFY FOR WAY LESS LOAN AMOUNT and that is where it will hurt first time buyers and one income families.
Here is an example: Someone SINGLE, earning $50,000 under the old rules with good credit would qualify for a $350,000 purchase, 5 % down with no debt. Under the new rules they qualify for about $280,000. (Just barely!) __________________________________________________ Buy a A Home With $0 Down: Do you know you can still Buy a Home with "No Money Down." If you have average credit and $5,000 for a Deposit, we can help you Buy a home. Contact us today for details. |
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Brampton Real Estate Market Watch: Feb/2010: MyDaddyHomes.com
Edison Samuel* Arlene Samuel* The MyDaddyHomes Sales Team *salespersons
February Sales and Average Price: GTA Statistics: March 3, 2010 – Brampton reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types.
Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”New listings also increased in February, climbing 24 per cent compared to the same month last year.“Annual growth in new listings is expected to continue.
New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.” Information from the Toronto Real Estate Board
February Sales and Average Price: Brampton Statistics:
March 3, 2010 -- Brampton REALTORS® reported 651 sales through the Multiple Listing Service® (MLS®) in February. There was a whopping jump in the average price for a Brampton detached and semi detached homes in W23 (an increase of 9-13%) With very affordable interest rates buyers are paying close to full prices for these types of homes. It will be interesting come April when the spring market takes hold to see if this trend continues. The Federal government has already given indication that they are willing to adjust interest rates to cool a heated market.
Buyers gobbled up most of Brampton Freehold townhomes and as new listing came on the market existing ones sold, there is a mark lack of inventory in this housing type. This is a good opportunity for sellers to get their homes on the market and move-up to something bigger.
There was an 8.24% decrease in the average price of Brampton condo apartments in W23, inventory is quite low but should pick up soon, this is a good sign for Buyers.
Barmpton Condo townhomes in both W23 and W24 moved very slowly. Buyers concerned with the high maintenance fees of units and are looking for condo units with fees that are much more affordable. The sales in February showed that only 1 in 3 units sold.“As in the GTA statistics the Brampton market needs to become better supplied, once this happens the average selling price should adjust down.”
Report compliments of Edison and Arlene Samuel, salespersons
The MyDaddyHomes Sales Team
Click here to join our Mailing List! Click here to go http://www.mydaddyhomes.com/ for housing statistics and charts
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Are you thinking about buying a home? The first step is to get yourself pre-approved for a mortgage. When your mortgage is pre-approved you know up-front what you can realistically afford to pay for a home in terms of purchase price, down payment, and closing costs. With a pre-approval you have an additional advantage of having your interest rate guaranteed for 90 days. If interest rates increase while you are house hunting you do not need to worry, you get the capped rate. Pre-qualification for a home is the first step and costs you nothing, but gives you both a goal of what homes are in your affordability range. A Mortgage Broker will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford. During the pre-qualification process, you will be expected to provide the following information to the Broker - Your gross monthly income
- Your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
- Where is your downpayment coming from.(No money down program, RRSP, a gift, line of credit, etc.,)
The Mortgage Broker will be looking to see that your debt to income is about 40 percent, max 42 percent and the lower the better. At MyDaddyHomes our Mortgage consultants work at the speed of lighting, they are fast and thorough. Once you are pre-qualified you are now ready for a pre-approval. If you are looking to buy a home within the next 90 days, be sure to contact a MyDaddyHomes Mortgage consultant today. Mortgage Summary: Pre-qualification: Pre-qualification is an informal agreement between you and a Mortgage Broker. The broker gives an amount in their opinion on how much they think a lender will be able to lend to you based on information that you have provided to them. The broker may not do any background checks at this point. The broker relies solely on you portraying an accurate picture of your circumstances. If you are not candid with the broker, you may be denied the loan. Pre-approval: The lender will actually check your credit history, employment information, assets, and liabilities. The only thing they won't check is the property that you plan to buy, because, of course, you haven't found it as yet The role of the Mortgage Broker: Mortgage Brokers do not actually work for any specific lender, their job is to assist you in getting the right mortgage at the right rate and terms. They look at all lenders products and services and determine which is best for the client. Having an good Mortgage Broker on your buying team is a must . Recommendation: MyDaddyHomes highly recommend that you get pre-qualified before you start your search for a home How to get Pre-approved: Contact a MyDaddyHomes Mortgage Consultant and shop with the power of a cash buyer. Click here
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