Brampton Real Estate and Brampton Homes-ED Samuel

Information on Buying or Selling a Home.
Welcome to Brampton Real Estate and Brampton Homes-ED Samuel Sign in | Help

Brampton and Mississauga Real Estate Homes and Condos Blog

MyDaddyHomes Blogs on Real Estate in the Brampton and Mississauga areas

  • How To Improve Your Credit Score

    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. Here are six tips on how to improve your credit score.

             

    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!
  • City Of Brampton To Resume Legalizing Second Units (Basement Apartments)


    On April 22, 2015, City Council approved new policies permitting second units (basement apartments) in the City of Brampton. Second units are now permitted in detached, semi-detached and townhouse dwellings, subject to zoning requirements.

    Second units - also known as accessory or basement apartments, secondary suites/units, two-unit housing, “granny flats” and in-law flats - are self-contained residential units with kitchen and bathroom facilities within dwellings or within structures accessory to dwellings, with a separate entrance.

    Second units offer Brampton residents another option for safe, affordable housing, but in order to be legal, they must be registered with the City of Brampton.
     
    Under the new policies:
    • Only one second unit is permitted per house.
    • In a bungalow, the second unit can be up to 75 per cent of the primary unit’s gross floor area (GFA). For all other houses, the second unit can be up to 45 per cent of the primary unit’s GFA.
    • There must be one parking space for the second unit, in addition to the required parking for the primary unit.
    • There must be a 1.2 metre clear path of travel to a door in the side or rear yard that provides access to a second unit.

    Before registration is approved, the following must be done:    

    1. Units must be inspected by the City to ensure they comply with the Ontario Building Code and/or Fire Code.
    2. Approval from the Electrical Safety Authority is also required.
    3. Units must also meet all Zoning and Property Standards regulations.

    Registration Fee: There will be a  one-time registration fee and applicable building permits.  

     

    Fines For Non-Registration:

    Homeowners who do not register their second unit with the City may be subject to a fine of up to $25,000

    for individuals or $50,000 for a corporation. 

     

    Registration Start Date: 06/22/2015

  • Buyning A New Home Versus A Resale

    Consider The Pros and Cons:


    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 flooring. 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, landscaping, air conditioning, etc.

    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.

    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 $20,000 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. 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 at a lower cost.

    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 keep in mind resale homes less than 10 years are still fairly new so you get the advantages of having a newer home at a lower resale price.

    Disadvantages of an Older Resale Home:

    When looking at the disadvantages of buying an older resale home you need to consider the following:

    1. Is the home in move-in condition?
    2. Is the heating, cooling, roof, electrical, windows, plumbing systems, kitchen and bathrooms updated?
    3. Does the purchase price reflect the condition of the home?
    4. Once you have considered the above items you would be well on you way on making a decision to buy or not to buy an older resale home.
    Summary:

    Both new and resale homes have their advantages and disadvantages, you would need to evaluate each option and make an educated decision based on your particular needs. 

     

     
    MyDaddyHomes:  Working hard for you today, so you can have a better tomorrow!   
  • Home Buying Advice

    Buying a Home? Consider These Critical Items:
     
     How long do 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 home buyers will need 5% for a down payment and 2.0% 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 ongoing 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.

  • Toronto Real Estate Board Housing Statistics 2014


    The Importance Of Housing Stats Information

    When you are buying or selling a home, not knowing housing statistical information can cause you to pay more for a home or sell your home for less.  Be informed, when you are you ready to buy or sell a home, make the right move, contact MyDaddyHomes today for key housing information for Brampton and Mississauga. Don't Delay Contact Us Today! 

     

    Summary Of All House Types

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $447,000

    $420,000

    98%

    31

    Mississauga

    $477,000

    $441,000

    98%

    31

     

    Legend:

    Avg. SP/LP: Average sale price to list price

    Avg. DOM: Average days on the market before being sold

     

    Summary By House Type:

    Detached 

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $526,000

    $519,000

    98%

    31

    Mississauga

    $740,000

    $686,000

    98%

    28

     

     Semi-Detached  

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $390,000

    $382,000

    98%

    24

    Mississauga

    $486,000

    $473,000

    99%

    22

     

    Freehold Townhouse 

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $407,000

    $385,000

    99%

    28

    Mississauga

    $503,000

    $491,000

    98%

    26

     

     Condo-Townhouse 

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $296,000

    $304,000

    97%

    49

    Mississauga

    $357,000

    $368,000

    98%

    25

     

    Condo-Apartment  

    City

    Average

    Price

    Median

    Price

    Avg.

    SP/LP

    Avg.

    DOM

    Brampton

    $234,000

    $224,000

    97%

    37

    Mississauga

    $276,000

    $255,000

    97%

    44

  • Buying a small business. What You Need To Know

    Buying a small business can be very rewarding and also can be a lot of headaches. You must ask yourself, if you have the time, are you able to do the hard work, do you know what you are getting into? So tread carefully before you make the jump into being a small business owner. You will work long hours, if you get by the first five years you are on your way to success.   


    In this article MyDaddyHomes will try and provide you with information to help guide you in buying a small business. The article is not intended to be the complete tutorial on buying a small business but an insight into the details of  becoming a small business owner.. Let's get started!  


    A FEW BUSINESS BASICS:

     

    1) What is a business:
    An undertaking carried on for the purpose of gain or profit and includes an interest in any such undertaking and without limiting the generality of the foregoing, includes a boarding house, hotel, beauty salon, pizza store, etc.  


    2) How Many Type Business Are There?

    Essentially there are three types of business structures:

    • Sole Proprietorship 
    • Partnership 
    • Corporation 
    3) Can A Residential Property Be Classified As A Business Property?

    Yes! The income or potential for income can make a property have business status. Generally investment/Income producing properties are all businesses. 


    What Information Does The Seller Need To Provide To The Buyer:

    1. A profit and loss statement for the preceding 12 months or since the acquisition of the business by the person disposing it.
    2. A statement of the assets and liabilities of the business
    3. A statement containing a list of all fixtures, goods, chattels, other assets and rights relating or connected with the business that are not included in the trade.
    4. Lists of customer, suppliers and contracts
    5. List of employees, including a breakdown of salaries, benefits and years of service
    Because the above information is confidential the seller may ask the buyer to sign a non disclosure agreement to prevent the buyer from using it for any purpose other than buying the business.  You will need to have your lawyer review all documents that you sign to ensure you are not making any unwise legal commitments.  

    Seller Disclosures:

    It is important that the buyer get from the seller the following:

    1. Terms and conditions under which the seller of the property holds possession of the premises
    2. Any sublets of the premises
    3. All liabilities of the business
    4. A statement that the person disposing of the business has made available the books of the account of the business.  
    Do Your Research:  
    • Check out if there are any any liens on the business assets; whether there are unpaid taxes.
    • Get information on the flow of business activity, peak times. slow times, days of the week.
    • Find out what competition is there within the area 
    • Find out what similar properties have sold for in the area

    Should The Business Be Purchased As A Company Or Personally Own?

    It is always better to buy a business  as a company instead ofbeing  personally own. When you the business as a company you shield your personal assets out of reach from creditors of the business. Also buying as a company you have certain tax advantages and less risks. When you buy a businees as a company you will need to know what you are buying, the assets or the shares of the business. Both have different ramifications. 

    Buying The Assets or The Shares

    Buying the assets of a company gives you a better sense of the value of the business, you know exactly what assets and liabilities that you have purchased. If you are buying the shares of the company, you better do due diligence, because the shares may or may not have unknown or undisclosed liabilities. 

    How Can The Market Value Of A Property Be Determined:

    Thee are three fundamental ways to measure what a business is worth:

    • Asset Approach
    • Market Approach
    • Income Approach
    1) The asset approach:
    Views the business as a set of assets and liabilities  that are used to determine the value of the business. The asset approach is based on the so-called economic principle of substitution which addresses this question

    2) The market approach:
    Relies on information from the current market about what similar properties sold for.

    3) The income approach:
    Is about what income one can  expect if an investment of dollars is made.   


    All three valuations methods will be explained in detail in future newsletters.  

    How Will The Purchase Be Financed:

    A) Borrowing:

    Taking on debt to finance a property is fairly common, you need to crunch the numbers and look at all scenarios to ensure you can repay the debt. The lender will evaluate your business plan to ensure that your company has a chance of success.

    Here are some ways debt can be financed:

    • Line of Credit 

    • Credit Cards

    • Business Term Loan 

    • Leasing

    B) Equity Financing: 

    Equity financing is sourced from your own 

    personal savings and investors. Investors typically receive a portion of your company's equity in return for their investments. You must demonstrate to the investors that your business plan is strong and you can make them a profit money for their investment.    

    • Own Personal Savings:
      When you invest your own money, investors will be more readily to invest, as they see you are taking the risk of investing your money.
    • Using Funds From Friends And Family:
      Getting help from friends and family is another way of getting funding. When you use friends and family, ensure you do it in a businneslike manner, you do not want to lose friends and have your family upset with you if the business is a bust.
    • There are many professional investors who seek out businesses to invest in. They want to make a profit and they also like to be involved in the management and planning of the business.
    Making your intentions known to the Seller: Letter Of Intent: 
    Before an agreement of purchase and sale is drawn up, a document called  a " LETTER OF INTENT" is created. This document is very important as it starts the process of formulating how the agreement of purchase and sale will take place. It should state that the agreement is non binding to either party. It states the intention of the Buyer to purchase the business. 

    What is the structure of  a letter of Intent?

    Outline:
    • Should state up front it is a non-binding agreement 
    • Proposed Terms and conditions

    • Names of buyers and Sellers

    • How the business is owned, 

    • Physical description of the property

    • Price to be paid


    Due Diligence: Due diligence is a way of preventing unnecessary harm to either party involved in a transaction. Check! Check! Check! What needs to be done?
    • Reviewing of all financial records

    • It is critical that a background check is done to ensure no problems with City By-Laws, Environmental issues

    • Property inspections, know what you are buying

    • A check by the seller to determine if the buyer has the ability to purchase the property.

    Financial Information:
    • Broker fees, how much the broker receives if the sale is completed.

    • Pro-rated lease amount if applicable

    • Basically all financially issues attached to the sale. 

    The Agreement Of Purchase and Sale:
    The letter of intent has now been satisfied and it is now time to formulate the official document of agreement of purchase and sale. The agreement of purchase and sale stipulates what the sellerr and bnuyer has agreed upon and includes conditions if things don't go as planned. Two important parts of the agreement are:
    1. Non-Competition Clause: This assures the buyer that the  seller will not start-up a new business within a radius of a certain distance of the premises for a certain amount of time after completion of the transaction.
    2. The Seller Represents and Warrants:  One of the most important parts of this agreement for  will be the seller's "representations and warranties". This effectively puts the seller on the hook for the information given to you about the business and aims to ensure that you are getting what you are paying for. The description of the business assets and liabilities related to the business that you will assume are another important part of this document.  They are usually included in "schedules" attached to the main agreement.
    Other clauses may be required based on the type of business being purchased, you will need to consult with your lawyer to ensure all bases are covered.

    FINAL STEPS TO BE AWARE OFF:
    • Keep Your Mind Focus On The Details Of The Agreement Of Purchase And Sale
      Do not be so eager to become a business owner and ignore sound principles of buying a business. Before you sign on the dotted line, make sure you sit down with your advisors and  review the details of the contract. Don't be a passenger on the boat of success, be at the controls.     
    • I f the Deal Does Not Feel Right. Walk Away! 
      If you believe the seller is not trustworthy, not providing the needed information in a timely manner, has excuses after excuses, these are red flags telling you to WALK AWAY!

    Lastly retain A Lawyer Who Is Experienced In Small Business Purchases To Help You With Your Purchase.

  • Wills and Power Of Attorneys: Are You Prepared?

    Studies and surveys indicate that more than 50 per cent of Canadian adults do not have a will, and about 70 per cent of Canadian adults do not have a signed Power of Attorney.

    I believe that number would drop significantly if people truly understood the significant consequences of dying or becoming incapacitated without these legal documents.

    Let’s start with a will.  What will happen if you died without one? Under the law that governs this situation (which is called an “intestacy”), your estate assets will be frozen until the courts appoint someone to administer your estate, known as an “Estate Trustee Without a Will”. This involves making a formal application to the court and always involves a certain amount of delay that is inherent in the process. This in turn could cause financial hardship for your family.

    Eventually, your estate will be distributed by the Estate Trustee according to provincial intestacy laws, which vary by jurisdiction. Typically, they provide a set dollar-amount to a surviving spouse (in Ontario it is $200,000), with the balance divided in line with a graduated formula among your spouse and each of your biological or adopted children.

    If you have no surviving spouse or children, then your assets would go to your next-of-kin, in a prescribed order that is set out by legislation. In contrast, common-law spouses and step-children may not he recognized by legislation as having any entitlement at all.

    In these various scenarios, the Estate Trustee has very little discretion in distributing your assets. This means that – absent a will that expressly directs the distribution of your estate in the most tax-advantageous manner – you will have missed many opportunities to reduce taxes both before and after your death.

    Similarly, without a will any preferences you have concerning the guardianship of your minor children or dependents may not be recognized. Payments to minor children would be held in trust by the courts, but only until they reached the age of majority. At this point, they would have a legal right to the money to spend as they wish – a thought that many parents find disconcerting and even abhorrent!

    If you don’t have a will, these are just a few of the ways that your family and next-of-kin could be subject to delays, additional expenses, angst and potential conflict amongst themselves at an already stressful and emotional time.

    Why do I need a Power of Attorney? – Like wills, a Power of Attorney is an often-overlooked legal document that you can have drafted to dictate the manner in which various matters will be dealt with in the event you become mentally incapacitated (for example due to an accident or illness) and therefore unable to make decisions on your own.

    There are three kinds of Power of Attorney in Ontario:

    General Power of Attorney for Property (to manage your finances and property, usually on a short-term or temporary basis);

    Continuing Power of Attorney for Property (for managing your property on an ongoing basis); and

    Power of Attorney for Personal Care (for appointing someone to make decisions about your current and future medical and personal care).

    If you have the appropriate Power of Attorney document in place, you can choose who will act on your behalf. If you do not, the court may choose one for you. This means you may be leaving important decisions in the hands of family or others who are not fully familiar with your situation or your wishes, and more importantly, may not want to take on the responsibility of handling your affairs.

    Even worse: Without written guidance in place as to your preferences and expectations, your family’s ability to arrange for your appropriate medical, shelter, nutrition and clothing needs might be impaired, to the point where costly and time-consuming litigation may commence. This is especially undesirable in cases where you have become suddenly and unexpectedly incapacitated and need prompt and proper medical care.

    People often resist turning their minds to drafting a will for many reasons: they consider themselves “too young”, or feel that there are not wealthy enough to need to bother with having a will drawn up or are superstitious that having one drawn up will actually hasten their demise. The need for a Power of Attorney is often dismissed for similar reasons.

    The truth is that it is never too early and an estate is never too modestly sized to make a will unnecessary or premature. As long as you own real estate, investments (regardless of size), vehicles, a business or any personal property, you have an estate that should be dealt with by way of a will.

    Likewise, there is never a downside to formally choosing a trusted family member or friend who will deal with your assets and arrange for your medical and other personal needs in the manner that you wish, in the (hopefully unlikely) event that you become mentally or physically incapable of doing so.

    Toronto lawyer Martin Rumack’s practice areas include real estate law, corporate and commercial law, wills, estates, powers of attorney, family law and civil litigation

     

  • MyDaddyHomes: The Facts About Basement Apartments Usage

     
    First-time buyers may want rental income but must be aware of restrictions. Many homebuyers consider purchasing a property with an existing or potential for a second suite. First-time homebuyers in particular often hope to take advantage of the extra income of a second suite, often a basement apartment, can generate.

     

    Financial advantages can be great, but the buyer needs to know the legal implications. Prospective buyers should ask their agents many questions regarding the legalities and financial implications of creating or operating a rental unit. Clients should ask lawyers or accountants for legal or financial advice, but REALTORS� still have an obligation to disclose material facts.

     

    Whether a suite is a legal second suite will depend on
    building code and fire code issues and municipal zoning bylaws. Although bylaws across Ontario are generally similar, each municipality has its own variations. For example, while the town of Bolton encourages basement apartments, in Brampton, only basement apartments built before November 16, 1995 are legal, and these units must be registered with the city. Basement apartments in Brampton built after that date are illegal. Any landlord that violates this bylaw faces fines of up to $50,000 and one year in prison. Prospective buyers should  visit a municipality's website, or to speak to a lawyer located in the area.

    If a buyer intends to create a second suite, he needs to determine whether the home qualifies under the bylaws of the specific municipality. If the home does not meet these requirements, the potential buyer must determine whether he is willing to make the necessary changes to create a legal apartment. A building permit is always needed, even in cases where construction will not be taking place.
    Any construction plans are approved based on zoning requirements, safety systems and building issues. Once a second suite is introduced into a home, a General Inspection for Fire Code Compliance must be completed by the Electrical Safety Authority. The inspection reviews both the owner's unit and the rental unit for fire code compliance.
    If a home currently has a second suite, it is important to determine whether the existing unit meets the municipality's requirements. The municipality will inspect the unit to determine whether it is fit for habitation and whether it meets established standards. Both new and existing units require a General Inspection for Fire Code Compliance.

    Return on investment:
    The cost of retrofitting a home depends on the home's condition. Assuming a renovation expense of $25,000 and net rental income of $500 a month, the return on investment will be 24 per cent. The investment will pay itself back in just over four years. Rent collected from a second suite must be declared as income. However, landlords can deduct direct expenses (directly related to operating the rental unit, e.g. replacing appliances) and indirect expenses (costs shared with the entire house, e.g. utilities and mortgage interest) needed to operate the suite. Direct expenses are 100 per cent deductible; indirect expenses are deducted on the portion of the home assigned to the rental unit.


    Landlords can also deduct capital cost allowance (CCA), commonly known as depreciation, from their income. CCA is permitted on any long-term purchase, such as renovations or appliances. The consequences of claiming CCA must be
    considered carefully. The equity earned when selling a principal residence is not taxed. However, once CCA is claimed, the area dedicated to the second suite is no longer considered personal residence. Therefore, a homeowner would forego any tax benefits from the sale of the property on the second suite portion of the home.

     

    A second suite can increase a property's value between two to five per cent. Property taxes are based on a Current Value Assessment (CVA), which usually does not increase unless the home's value increases by at least $10,000 or five per cent. So, most second suites do not add enough value to increase taxes. The exception is a second suite created by an addition, which can add significant value to a property, and can increase property taxes.

     

    REALTORS� need to be sure to provide clients with information that is accurate and not misleading. In the Ontario Superior Court case Malpass v Morrison (2004 ONSC 12542), the judge found that the agent had failed in his duty of care to his buyer clients. The buyers were looking for a home with four bedrooms or space that could be converted to a bedroom. They made an offer on a bungalow that was accepted. They later discovered the fourth bedroom was illegal and decided not to proceed with the purchase, which cost them over $60,000. They sued their agent for the losses, alleging their agent failed to advise them with respect to a municipal by-law prohibiting a basement bedroom.
      
    The judge found that it was a material fact known to the agent that the basement "fourth bedroom" was not compliant, and that the buyers considered this room to be a bedroom and he did not correct their impression. He found that in this case, the breach of fiduciary responsibility amounted to a breach of duty of care. Agents should always disclose any material facts, including whether a suite is legal or not.
      
     Article complements Of The Ontario Real Estate Associati
  • Buyer Agency: What Is It? How Does It Affect Buyers

      
    Finding the right home at the right price in the right location is a detailed, time-consuming venture. At the same time, it's an emotional period laden with difficult choices. Before you rush out to start looking at homes be aware of the Real Estate term "Buyer Agency"  and the  impact it can have on you.  

     

    Sellers always have agents to represent their best interests, you as a buyer must also do the same and seek out an agent to represent your best interests. During an offer negotiation a seller would love to have the advantage over a buyer who does not have buyer representation.

     

    By asking a realtor to work for you exclusively, you create an "Agency Relationship" and become the realtor's client, you now have  "Buyer Agency" protecting you. Not having buyer representation can have dire consequences when purchasing a home. Caveat Emptor "Let The Buyer Beware.

      

    The Legal Obligations Of A Buyer Agent:

     

    With Buyer Agency, the realtor is committed under Real Estate law to do whatever it takes to find the client the ideal home that suits their needs. It takes endless hours of searching the MLS, previewing and providing market analysis of homes, advising the client on what is a good or bad choice and working with other agents.  

     

    A Buyer Agent representing a client is obligated not just to find all homes that matches the client needs, but to negotiate the best deal for the client.  A buyer agent is legally obligated under law to do the following for the client:

     

    1. Loyalty: Total and undivided loyalty to the client
    2. Confidentially: To never disclose the client's confidential details to any other party to a transaction
    3. Obedience: To obey the client's lawful instructions
    4. AccountabilityTo be accountable to the client for all actions taken by the Buyer Agent
    5. Reasonable Care: To use expertise, knowledge, negotiating skills for the benefit of the client
    6. Disclosure:  To disclose to the client, both the positive and negative facts about a property

    Buyer agency is designed to help protect buyers during the purchase of a home. Don't buy a home without it.

    Compliments of MyDaddyHomes: Because We Care!
  • Toronto Real Estate Board June Housing Statistics For The GTA

    The Importance Of Housing Stats Information
    When you are buying or selling a home, not knowing housing statistical information can cause you to pay more for a home or sell your home for less. Be informed, when you are you ready to Buy or Sell a home, make the right move, contact MyDaddyHomes today for key housing information for Brampton and Mississauga. Don't Delay Contact Us Today!

    Toronto Real Estate Board
    June 2012 Housing Statistics 

    Summary Of All House Types

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$404,104$383,5008,36698%21
    Mississauga$459,508$411,000  10,35898%21
    Legend:
    Avg SP/LP: Average sale price to list price
    Avg DOM: Average days on the market before being sold
    Summary By House Type:

    Detached 

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$479,510$455,0001,03298%20
    Mississauga$670,723$605,625 75398%17

      Semi-Detached  

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$368,273$360,00032199%18
    Mississauga$431,041$436-,800261100%14

     Freehold Townhouse 

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$348,835$342,00015598%19
    Mississauga$425,454$426,000 7399%15

     Condo-Townhouse 

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$245,214$230,5008198%17
    Mississauga$333,739$329,000 33699%19

    Condo-Apartment  

    City
    Average
    Price
    Median
    Price
    New
    Listings
    Avg
    SP/LP
    Avg
    DOM
          
    Brampton$214,225$210,0008397%33
    Mississauga$273,428$256,000 56598%30
    Toronto Real Estate Board
     Complete Housing Report All Districts
    Click On A Month To View
  • Rental Property Management: What You Should Know

    Should You Manage Your Rental Property Yourself Or Have A Professional Property Management Company Do It For You?

    If you have a home or condo to rent or an investor renting out a property, you need to ask yourself if you are prepared to manage the property yourself or ask a professional property management company to do it for you. Both choices have advantages and disadvantages, here are some factors you need to consider.

    Location Of The Property:

    1. If you are hundreds of miles away from the property, it will be in your best interest to have someone else manage the property for you. It could be a family member, a friend, or you can hire a property management company.
    2. If you are close to the property you may be able to do it yourself, you should be able to handle any required needed repairs or emergency situations in a timely manner. But are you willing to do it? You won't have to pay a fee for the managing of the property.

    Do You Have The Time To Manage It Yourself:

    1. Renting a property takes a lot of time, do you have the time to:
      1. Look for good tenants
      2. Screening the tenants
      3. Checking rental applications information for accuracy
      4. Taking care of plumbing, heating and other problems that go along with a rental unit
      5. Preparing the home for rent
      6. Ensure the monthly rent is paid on a timely basis
      7. Knowing and understanding the Landlord and Tenant Act
      8. If you have a problem tenant you would need to know how to deal with the situation. You could spend endless hours resolving issues.

    Using a Professional Management Company:

    1. Professional mangers are the experts, they manage hundreds of property on a yearly basis.
    2. They can smooth out all the problems and remove the hassles of trying to do it yourself.
    3. They have the expertise and the knowledge to get you good tenants and the going rent rate.
    4. They know how to write-up leases to protect you, not the tenant.
    5. They know the landlord and tenant act and know how to evict tenants according to the law. All of this does come with a price and you have to be prepared to pay it. 

    What Does It Cost To Hire a Management Company?

    Property managers will charge you 10-12% of monthly rent for ongoing management and charge you a one-time fee to get a property leased. You as an investor or landlord may find that amount quite high, but here is how property managers add value to your investment:

    1. They may get you higher than normal rent
    2. Reduce vacancy rates
    3. They screen all prospective tenants
    4. Attend to any maintenance problems immediately, before they become major problems
    5. Property managers by keeping down vacancy rates will help your bottom line by not having property sit vacant for months.

    Summary: Anyone can own a a rental property, but not everyone has the ability to manage one. So If you have more important things to do than chase down tenants for rent and call the plumber and electrician to fix problems, then use a professional property management company to manage your property.

    Compliments if the MyDaddyHomes Sales Team: We are experts in renting properties.

    Contact us Today If You Have Property To rent

  • 2 Story For Sale in Fletcher's Creek South

    IMG_1917

    • 3 bath 2 story - MLS® $345,000

     -  Just Can't Be Beat! Come One! Come All! Immaculate 3 Bedroom Freehold Townhouse Situated On A Quiet Cres, Featuring: Hardwood Floors In Lr/Dr, Porcelain Tiles In Hallway And Kitchen. Ceramic Backsplash. Breakfast Area With Walkout To Covered Deck. Finished Basement With A 2 Pc Bath And Fireplace. Cold Cellar And Wet Bar. Stone Entrance Way, Home Looks Fantastic, Don't Miss Out On This Deal.
    Extras: Newer Windows, Newer Furnace, Newer Cac, Newer Carpet. Include All Appliances. Close To All Amenities. Just Move Right In, Nothing To Do To This Gem Of A House. Security Alarm System

    Property information

  • Investing in a Rental Property - Are You Ready To Be a Landlord?


    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

  • Understanding The 9 Laws Of Abundance And Wealth

    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
  • Top 10 Home Buying Mistakes To Avoid

       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.  

More Posts Next page »