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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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If you are thinking about Buying a home for the first time or know someone who is, MyDaddyHomes would like to invite you to our FREE First Time Home Buyers Seminar. Buying a home for the first time can be both exciting, enjoyable and can also be emotionally stressful and a confusing experience. At MyDaddyHomes we want you to buy a home with confidence and knowledge and for you to enjoy the path to your dream. The information that will be provided to you at the seminar, will give you a better understanding of the inner workings of home buying. We take you through the entire process step by step, we reveal to you the top 10 Buying mistakes to avoid. Our mortgage experts familiarize you with mortgage financing, our professional home inspectors give you key information about why you need to have a home inspection. We provide you with a comprehensive overview of all the costs involved in buying a home. Contact us today to attend our seminar and familiarized yourself with the knowledge that you will need to make the best home buying decisions for you and your family Don't Delay! Contact The MyDaddyHomes Team today to reserve your seat. Do it now! Seminar Information: - Location: RE/MAX Real Estate Centre: #150, 2 County Crt., Blvd., Brampton,ON
- Days: Fridays
- Time: 6:00PM-7:30PM
- Some of the topics covered:
- How to avoid the Top 10 Buying mistakes
- How to get a Downpayment
- Understanding How Buyer Agency works for you
- How to Buy a Home with $0 Down
- How to use RRSP to buy a home
- How to Buy a Home with minimum credit
- New immigrants programs
- Self-employed programs
- Mortgage financing and how it works
- What is the role of the lawyer
- Home Inspection: What is involved
- What to look for when buying a new or older home
- Buying a condo: Understanding your rights and obligations
- Making an offer to purchase
- Closing costs: What are all the fees
- Additional Housing costs
To attend our our "First Time Home Buyers" Seminar" please fill out out the form below indicating preferable day and time or call MyDaddyHomes direct. looking forward to hearing from you soon.
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Mississauga, ON (December 3, 2009) -- In the midst of one of the most tumultuous economic periods in recent history, residential real estate has proven to be a safe harbour, with sales and average price expected to post gains in most major Canadian cities in 2009, according to a report released by RE/MAX. The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Two markets --Ottawa and Quebec City -- are expected to hit historic highs in the number of homes sold. Average price should post new records in 65 per cent of markets surveyed this year. As economic performance ramps up across the country, so too will residential real estate. Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010. The remaining markets will match 2009 levels.
Approximately 465,000 homes are expected to change hands nationally in 2009, a seven per cent increase over one year ago. Canadian housing values are forecast to close the year at $318,000, up five per cent from $303,594 in 2008. By year-end 2010, the number of homes sold is predicted to climb another two per cent to 475,000 units. The average price of a home is also expected to experience an uptick, rising two per cent to $325,000 – the highest level in Canadian history. “2009 was without question the year of the house,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Real estate not only defied industry and analysts’ predictions in 2009 -- it’s performance went well beyond the realm of expectation by boosting consumer confidence levels and ultimately kick starting the national economic engine. While low interest rates were a principle factor driving home buying activity, no one can discount the value that Canadians place in owning a home.” The upswing in residential housing values speaks volumes. By year-end 2009, average price is expected to increase in 15 of the 23 markets surveyed, led by St. John’s, NF (15 per cent); Quebec City, QC (eight per cent); Regina, SK (seven per cent); Saint John, NB (six per cent); and Winnipeg, MB, Ottawa, ON, and Greater Toronto, ON (five per cent). Other noteworthy developments include shattered price benchmarks in Greater Vancouver at $600,000; Toronto at $400,000; Ottawa at $300,000; and Quebec City and St. John’s at $200,000. St. John’s will once again lead the country in terms of percentage increase in average price in 2010 with a projected upswing of 11 per cent. Quebec City and Regina are expected to experience escalation of six per cent, while Calgary, Kelowna, and Victoria are forecast to climb five per cent next year. Victoria, Kelowna, Edmonton and Calgary – all down marginally in 2009 – are all positioned for growth in 2010. “Some of the greatest percentage gains were reported in Western Canadian markets in 2009– demonstrating the higher the peak, the lower the valley,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western, Canada. “That said, the recession barely registered on year-over-year activity in most major centres. The economic fundamentals in place going forward ideally position the ten provinces, and the sector overall, for further growth.” The major frontrunners in terms of unit sales appreciation in 2010, are all located in Western Canada, including Kelowna with an anticipated upswing of 10 per cent in housing sales; Calgary with an expected increase of eight per cent: and Victoria, which rounds out the top three with a seven per cent hike forecast for unit sales. “Canadians continue to demonstrate their commitment to homeownership – regardless of the economic climate,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec. “No where in Canada is that more evident than in Quebec. The province, with one of highest percentage of renters in the country, is well-poised for an escalation in homeownership levels as renters enter the market en masse to take advantage of ideal market conditions. Prices remain well under the national average, making ownership more attainable and leaving more room for appreciation that’s been long overdue.” A number of factors will help prop up activity going forward, including improved economic conditions, continued low interest rates, rising consumer confidence and solid capital spending which will buoy employment. Inventory will once again assume the wildcard role, with any decline placing upward pressure on prices. Multiple offers will remain the exception in most markets, more commonplace on quality entry-level product which remains in tight supply. RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. Article Compliments of RE/MAX Ontario-Atlantic Canada Inc. visit www.mydaddyhomes.com for all your Real Estate Needs
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How long you plan to live in the home.
If you purchase a home and get a job transfer or decide to move after only a short time, you may end up paying money in order to sell it. The value of your home may not have appreciated enough to cover the costs that you paid to buy the home and the costs that it would take you to sell your home.
The length of time that it will take to cover those costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.
How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.
Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? While you can always find a lender to lend you money, solid lenders are more skeptical if your credit history is not good. Generally, a couple of blemishes on a credit report will make you a good credit risk and could qualify you for the lowest interest rates. If you have more than a couple of blemishes on your report, lenders may still provide you with a loan, but you may just have to pay a higher interest rate.
Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.
To determine how much home you can afford, you can take advantage of the MyDaddyhomes Free mortgage service, it is fast and hassle free. You get to speak to an experienced mortgage professional.or you can go online and use a "home affordability" calculator. Good calculators will give you a range of what you may qualify for. While some may say that the "33/40" rule applies, in today's home mortgage market, lenders are making loans customized to a particular person's situation. The "33/40" rule means that your monthly housing costs can't exceed 33 percent of your income and your total debt load can't exceed 40 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 44% or higher. While we're not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.
Where the money for the transaction will come from. Typically homebuyers will need 5% for a down payment and 1.5% for closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't stellar but you have managed to save 10-20% for a down payment, you will still appear to be a very good financial risk to a lender.
The onghoing costs of home ownership. Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment. If you buy a condominium, townhouse or in certain communities, a monthly homeowner's association fee will be required. If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.
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Arlene Samuel Edison Samuel 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.
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.
- We look forward to working with you very soon.
Edison Samuel and Arlene Samuel, salespersons Cell: Edison 416-258-3079 Arlene, 647-289-0038 Off: 905-456-1177
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Investing in a second property | |
If you're thinking about buying a piece of real estate as an investment property, market conditions are definitely in your favour. While the resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, it's also a perfect time for existing homeowners to invest in secondary residential properties. With record-low interest rates and significantly lower prices it's hard to go wrong - unless, of course you lack the financial means to make the investment. After all, you have to be ready to meet all the obligations that come with owning more than your principal property. For instance, keep in mind that if you intend to rent out the second property, you'll also have to be prepared to deal with tenants and handle maintenance costs. Leverage
Secondary home ownership is an attractive investment option because it gives you even more leverage than you have with your principal residence. Leverage is when a relatively small amount of your money controls a much larger asset - like a property. The more leveraged you are, the greater the financial return on your down payment becomes if the value of your property increases. There are very few other investments which can be purchased with such a small percentage of your own money. For instance, let's say you acquire a second property for $100,000, with a $15,000 down payment, and during the first year that you own it, the property increases by a value of three per cent for a $3,000 gain. As a result, the return on your down payment of $15,000 is 20 per cent - $3,000 divided by $15,000. Other Investments
By comparison, let's say you were to buy a term investment of $100,000 (in cash) for one year and it increased by $8,000 over the course of the first year. Since it cost you $100,000 in cash to buy it, the return on your investment is only eight per cent before taxes. Obviously, leveraging is a powerful way to make your money work for you. Getting Financing
You should be aware that many lenders place non-owner occupied deals in the high-risk category and it's not that unusual to find lenders who will not finance rental units at all - or those who will only finance them if they are insured. Obviously, lenders will want to know whether the property will carry itself. (Is there sufficient rent to cover the mortgage payment?) Don't make the mistake of assuming that a rental income of $500 per month will carry a mortgage payment of $500 per month. Only a portion of the rent is used to pay the mortgage; the remainder must cover taxes, maintenance, vacancy, bad debt and expenses. (Many inexperienced purchasers think that owning rental properties will allow them to "get rich quickly" and when this does not happen, the owner becomes disillusioned and loses interest in the property.) Costs
You should also be aware that the cost of obtaining a mortgage (for legal and appraisal fees) on a non-owner occupied property can be higher than the cost of obtaining a mortgage on an owner-occupied property, when more than one unit - such as a duplex or triplex is involved. Interest rates charged on rental properties might also be higher because some lenders view these properties as being a higher risk. As mentioned above, the main responsibility of having a second property is being able to carry it financially. And if you're like most people, you'll probably have to rent it to someone as a result. This is also a great deal of responsibility because you will have to maintain the property in addition to your own principal residence, and you'll be responsible for finding tenants who you trust and feel comfortable with. Some parents with grown children ready to go off to university or college choose to purchase secondary properties for their offspring to live in while they attend school. This gives them an excellent investment and they are assured that the occupants will take good care of the home. If you'd like more information about purchasing a second property, consult MyDaddyHomes today. Edison Samuel 416-258-3079, Arlene Samuel 647-289-0038, salespersons Source; Ontario Real Estate Association .
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When you dream of your dream home, what do you see? Each of us has a vision of what it will be, but getting as close to that vision as possible is a practical, step-by-step process that begins with finding a REALTOR®. A REALTOR® is your best ally throughout the home buying process. He or she can provide expert advice and help you determine how much you can afford, what kind of home you can buy in that price range, and where it may be located. The MyDaddyHomes Sales Team has been providing Full Time Real Estate Services to the local communities since 1986. Check out our website at www.mydaddyhomes.com we have many excellent articles to start you off in the hunt for your dream home. You've no doubt heard the phrase: location, location, location. That's because it's the most important factor in making any real estate purchase. To find the right location you must think of where you want to live both in broader terms and in more detail. First of all what type of area do you want to live in? Urban: Urban communities offer the broadest range of housing types, but generally at higher prices than similar-sized homes in non-urban locations. Suburban: The suburbs are typically made up of newer neighbourhoods, schools and shopping centres. Prices may or may not be lower than those of the central city, but you often get more square footage, larger rooms and bigger lots. Smaller towns and cities: A slower-paced lifestyle and lower taxes and housing prices are often big draws to Ontario's smaller communities. There are fewer types of homes available and the number for sale could be limited. Rural: A stream flowing over a few acres sounds appealing and your housing budget will often buy you more in a rural setting than any alternative above. Features
Once you've considered the broader location options above, it's time to think about the features you need and want in a home. Prepare a shopping list. How many bedrooms and bathrooms? One or two-car garage? Large backyard or small? List the features you are looking for as needs or wants. Comparing homes and locations
Now you want to match the type of home you'd like with the location. Start reading the real estate ads in local newspapers and REALTOR®-produced publications. These ads will give you an idea of the communities that best match your criteria for home and location. Drive through the communities that are likely candidates. Check out the types of homes available, how well the neighbourhoods are maintained, the availability of schools and shopping, recreational and religious facilities. Be aware of drawbacks: highway noise, train tracks, airports and large industrial centres. Drive through the neighbourhoods at different times of the day. Attend open houses in the areas you are exploring. You'll begin to understand which best suit your needs and which are in your price range. Check out the Internet. Over 75% of Buyers use the Internet to find prospective properties. Most homes have internal photos and breathtaking Virtual Tours. You can contact a REALTOR® to get more detailed information about properties and chances that you'll select a REALTOR® from among those who you come in contact with. Beware of Buyer Agency: Before you contact any REALTOR® about a home, make sure you understand how "Buyer Agency" affects you. Click Here To Learn more... This article compliments of OREA and The MyDaddyHomes Sales Team.
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Buying or Selling a home is a complex and stressful undertaking. Getting an expert to help will save you time, money and aggravation. Looking out for your best interests:
By asking a REALTOR to act on your behalf during the purchase or sale of a home, you create an Agency Relationship and become the REALTOR's client. REALTORS always owe their clients full fiduciary duties, such as loyalty, confidentiality, accountability, duty of care, obedience to all lawful instructions, and full disclosure of all pertinent facts Getting the best deal - Know the Market:
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 position to negotiate the best price and take advantage of any opportunities that may show up. Negotiation expertise:
While a REALTOR does many things, one of his or her most important functions is to negotiate on behalf of their clients. When you purchase a home, you want the best deal possible. Your REALTOR's 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. Finding the right home & neighbourhood for you:
REALTORS spend a lot of time and energy making sure they know their local market inside and out. They are familiar with the current market values of properties in the areas you are looking and are your best resource for finding the right home. 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? A REALTOR will help identify exactly what it is you are looking for and ensure that you get to see all the homes that meet your criteria. Professional experience:
A REALTOR brings to the table all of his or her knowledge, training and negotiation skills, and will explain exactly what you can expect from the buying/selling process. He or she will be able to explain your rights and obligations, help organize and strategize, and even discuss financing options. All REALTORS 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 all REALTORS offer the highest level of service, honesty and integrity possible. All REALTORS are subject to constant professional monitoring that keeps them directly accountable to the individual consumers they serve. 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. Assist with financing needs:
REALTORS 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. Experienced REALTORS can often assist in finding the most competitive rates and terms available. Access to Multiple Listing Services:
REALTORS have exclusive access to the Multiple Listing Service (MLS). It is one of the most effective marketing tools available, giving all realtors nation-wide access to your property. The MLS system also allows a REALTOR 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
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First-time buyers driving force in Canada’s residential real estate markets, says RE/MAX A report released by RE/MAX confirms that entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada. Mississauga, ON (March 11, 2009) -- A report released today by RE/MAX confirms that entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada. The 2009 RE/MAX First-Time Buyers Report, highlighting first-time buying activity in 32 residential housing markets across Canada, found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market. While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today’s buyer-centric real estate climate. Increased inventory and longer days on market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade. “While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices,” explains Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Affordability has greatly improved and buyers are firmly in the drivers’ seat in just about every market we surveyed. The new reality is that homeownership remains well within reach for most first-time buyers.” Although the year got off to a slow start, February home sales were well ahead of those reported in January. The upward trending is expected to continue as more and more first-time buyers enter the market in the weeks ahead. The flurry of activity in the lower-end may also serve to kick-start sales in the mid-to-upper end of the market, which have, as expected, been relatively sluggish in recent months. While inventory and days on market was up virtually across the board, it’s noteworthy that several markets reported tighter conditions in the lower end of the market, where demand and buyer activity remains quite healthy. “Canadian markets from coast-to-coast are ripe for a reawakening as the weather warms up,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “First-time buyers seem more acclimatized to economic factors, even though the barrage of bad news continues to flow. Those who are secure in their jobs, have accumulated good down payments, and have acceptable credit ratings are continuing to venture forward, undeterred by tighter lending criteria.” According to the RE/MAX Report, buyers are clearly in control in most Canadian markets. Of the 32 markets surveyed, 22 (69 per cent) remain firmly in buyer’s market territory. These include Vancouver, Surrey, Port Coquitlam, Chilliwack, Kelowna, Victoria, Edmonton, Calgary, Saskatoon, Regina, Ottawa, Peterborough, London-St. Thomas, Niagara Falls, Mississauga, Metro Toronto, Northern GTA, Kingston, Windsor, Hamilton-Burlington. Barrie, and Halifax-Dartmouth. Ten (31 per cent) report more balanced conditions: Winnipeg, Kitchener-Waterloo, Sudbury, North Bay, St. Catharines, Saint John, Moncton, Fredericton, St. John’s, and Charlottetown. Forty per cent of markets offered single-detached homes priced under $200,000, including Charlottetown, Saint John, Moncton, Peterborough, Niagara Falls, St. Catharines, Windsor, Fredericton, Halifax-Dartmouth, London, North Bay, Kingston, Saskatoon and Winnipeg. More than two-thirds (71 per cent) offered condominiums starting under $200,000, (Moncton, Fredericton, Halifax-Dartmouth, Sudbury, North Bay, Peterborough, Mississauga, Burlington, Niagara Falls, St. Catharines, Kitchener-Waterloo, London, Windsor, Surrey, Chilliwack, Victoria, Kelowna, Edmonton, Saskatoon, Regina, and Winnipeg). The most affordable markets for detached homes, based on starting prices are: Moncton ($115,000), Charlottetown ($120,000), and Saint John ($130,000) in Eastern Canada; Windsor ($75,000), Niagara Falls ($119,000), and St. Catharines ($125,000) in Ontario; Winnipeg ($185,000), Saskatoon ($190,000), and Regina ($210,000) in Western Canada
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Mortgage Pre-qualification and Pre-approval, What Does It Mean? Many potential Buyers, who have make the decision to buy a home, make the most common buying mistake of rushing out to view homes without first getting pre-qualified and then pre-approved. So the question that begs to be asked is: Why get prequalified and then pre-approved for a mortgage before you begin your search for a home? The answer is: with a pre-approval or pre-qualification commitment letter in your hand, you're immediately in a stronger negotiating position with any seller, you are a Cash Buyer. The mortgage prequalification step is a relatively simple one, but it is the most critical one. It starts the process of formally applying for a mortgage, and it gives everyone involved—The MyDaddyHomes Realtor, the Mortgage Broker and you the Buyer a clear indication of your financial status as it relates to the purchase of a home. Also, a pre-approved commitment letter will strengthen your bargaining position with a Seller? A seller will be much willing to consider your offer when they are assured that you are pre-approved for a mortgage. Don’t’ get pre-approved and you will be flying blind?
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. Keep in mind that the amount of mortgage you will qualify for is the maximum the lender will advance to you. It is the amount that the lender feels you can afford, but it is not necessarily the amount that you want to pay.
Let’s look into more detail the differences between Pre-Qualification and a Pre-Approved mortgage. 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. There is no charge to do this and you are under no obligation to get a mortgage with this lender if you find a better deal later. 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 yet! Recommendation: MyDaddyHomes highly recommend that you get pre-qualified and pre-approved before you start rushing out to search for your new home, you will feel confident and enjoy the experience of looking for your Dream home. Finding Pre-approvals: Looking to Buy a Home? Get Pre-Approved with a MyDaddyHomes Mortgage Specialist Today and shop with the power of a cash buyer. 
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There’s been a lot of talk about real estate in the news in recent months. We’ve heard about declining housing starts, falling existing home sales, double-digit price depreciation, subprime fallout and foreclosures – in the United States. Fortunately, we live in Canada. And Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons. Subprime mortgages represent less than five per cent of our market nationally. Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country. Canadians have more equity in their homes. We have less debt than our neighbours south of the border. Speculation has played little or no role in existing home sales in Ontario. The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009. The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit. The Canadian job market is stronger than the US, adding more than 200,000 jobs so far this year. Interest rates remain favourable. Housing values in Ontario major centres did not experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth. Immigration continues to play a key role in housing markets. Between 2001 and 2006, more than 1.1 million immigrants came to this country, with about half settling in the province of Ontario. Immigrants tend to purchase a home within the first five years of living in Canada.
Real estate is cyclical. There will be peaks and valleys. The more restrained the peak, the more modest the valley. There is no question that market conditions have moderated from 2007’s record pace. More listings, softer housing values, longer days on market – but most centres are relatively solid. While some buyers and sellers will adopt a wait-and-see attitude, there are those that will continue to venture forward. That said, sellers will need to be realistic in setting a selling price. Listing a property at fair-market value will ensure that it will sell in a reasonable amount of time. This is not the time to test the market. Those that are truly interested in selling their properties know that over-priced homes risk stagnation. Buyers in today’s market will need to be careful not to overextend themselves. They should know exactly what they can afford. Pre-approval for a mortgage loan is ideal because it lets buyers know exactly how much they can spend on their new home. Looking forward, we anticipate a continuation of stable market activity, minus the urgency present in past. Gone are the multiple offers that left both buyers and sellers dissatisfied. The increase in the number of homes listed for sale are a definite advantage for purchasers who now have the luxury of time in making one of the most important decisions of a lifetime. For sellers, the time to trade-up has never been better. Canadians are great believers in homeownership – a fact underscored by the close to 70 per cent who own homes in this country. History has proven time and time again that real estate is a solid, long-term investment that appreciates at a rate of about five per cent annually. You can’t live in your mutual fund, and after the last month in the financial markets, quite frankly, we’re not sure you’d want to.
Compliments of Michael Polzler
Executive Vice President and Regional Director
RE/MAX Ontario-Atlantic Canada Inc.
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