• Tag: Community

    What is a Mortgage Deferral?

    Posted on by Trisha Wilson

    The mortgage deferral is among a number of recently announced relief measures geared to assist Canadians who are feeling the financial impact of COVID-19. With many industries and businesses suffering a serious slow-down, if not a complete dead stop, Canada’s big banks released an announcement two weeks ago offering mortgage payment deferrals of up to six months, to help carry homeowners through this difficult time. The program has certainly appealed to many Canadians.

    What are the banks saying?

    “Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank have made a commitment to work with personal and small business banking customers on a case‑by‑case basis to provide flexible solutions to help them manage through challenges such as pay disruption due to COVID‑19; childcare disruption due to school closures; or those facing illness from COVID‑19,” the Canadian Bankers’ Association said in a release two weeks ago. Since that time, the CBA has reported almost 500,000 mortgage payment deferrals or “skip-a-payment” passes have already been approved or are in the process of approval. Furthermore, the six big banks have seen deferrals on more than 10 per cent of the mortgages in their portfolio.

    Despite the popularity of the program, there are still many questions swirling around about what it is, if there are any loop holes, and how it may affect your credit rating. RE/MAX Canada has connected with Canada Mortgage and Housing Corp. to share some insight on.

    What is a mortgage deferral?

    A mortgage deferral is intended to help people experiencing financial hardship, such as unemployment or the current COVID-19 crisis. Since the mortgage agreement is between you and your lender, so too are the terms of the mortgage deferral. CMHC says that typically, the agreement states that you and your mortgage lender have agreed to pause your payments for a specified amount of time. Once the mortgage deferral period ends, your payments return to normal and the missed payments — including principal and accumulated interest – repaid.

    What happens to your missed mortgage payments?

    CMHC says points out that a mortgage deferral does not “erase” or reduce your mortgage amount. At the end of the mortgage deferral period, you will have to resume payment according to your regular payment schedule. “The interest that hasn’t been paid during the deferral period continues to be added to the outstanding principal of your mortgage. This can affect the total amount you owe in accordance with the original payment schedule,” CMHC says.

    Am I eligible?

    Connect with your bank or mortgage professional to discuss the options available to you. CMHC says the COVID-19 Mortgage Payment Deferral program will be ongoing, and homeowners can apply at any time during the crisis.

    How are the deferred funds repaid?

    The details of your repayment depend on the lender and your specific situation. CMHC says the interest on your mortgage that hasn’t been paid during the deferral period will continue to accrue. When your payments resume, the amount could be based on the total amount owing at that time, in accordance with the original payment schedule.

    If you think you won’t be able to make your regular mortgage payment, contact your lender immediately before you miss a payment.

    Source: CMHC, COVID-19: Understanding Mortgage Payment Deferral

     

     

    Courtesy of REMAX.ca

    COVID-19 Relief Measures To Help Canadians

    Posted on by Trisha Wilson

    Buying or selling a house is a big undertaking under normal circumstances, let alone in the midst of a pandemic. With economic impacts and the uncertainty that accompanies day-to-day life, Canada’s federal, provincial and municipal governments and companies have implemented a number of COVID-19 relief measures to help soften the financial blow.

    We’ve compiled a list of some pre-existing and newly announced programs and incentives intended to assist current homeowners, buyers and sellers, along with some links to further inform anyone seeking some COVID-19 relief.

    The situation is changing hourly, so we will continue to update this list as things develop.

    COVID-19 Relief Measures

    Federal Government Pledges Up To $52 Billion in Direct Support to Canadian Workers and Businesses

    On March 18, 2020, the Prime Minister announced $27 billion in direct support to Canadian workers and businesses during this challenging time. On March 25, an emergency federal bill received royal assent to increase that amount to $52 billion, including support for workers unable to do their job due to Coronavirus. For more information, click here.

    Mortgage Payment Deferral Programs

    Many homeowners who’s employment and income have been interrupted due to COVID-19 are struggling to make their mortgage payments. In response to this, Canada Mortgage and Housing Corporation (CMHC) and other mortgage insurers offer tools that can assist homeowners experiencing financial hardship at this time.

    In addition to this, a number of Canadian’s large banks will be allowing mortgage payment deferrals for up to six months as part of their measures to help customers who may be struggling with the financial impacts of the COVID-19 pandemic. According to a Tweet from the president of the Canadian Bankers Association, RBC, TD, BMO, Scotiabank, CIBC and National Bank are the banks that are offering these deferrals. We encourage you to talk to your bank if you are under any sort of financial strain.

    Bank of Canada Lowering Rates

    The Bank of Canada’s benchmark interest rate has been on a downward trend recently. In its latest scheduled interest rate announcement on March 4, the Bank cut its rate from 1.75 to 1.25 per cent. The Bank followed up with an unscheduled announcement on March 16, announcing a further reduction in its key interest rate by a further 50 basis points to 0.75 per cent. On March 27, the Bank again cut its rate by another 50 basis points, to 0.25 per cent, with a goal of bolstering economic activity and keeping inflation low and stable. For more information on what the Bank of Canada is doing, click here.

    First Time Home Buyer Incentives

    The First Time Home Buyer Incentive was implemented in September 2019 to help qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens. The incentive is a shared-equity mortgage with the Government of Canada and offers a number of different options for first-time homebuyers. You can read more about the First Time Home Buyer Incentive here.

    Insured Mortgage Purchase Program (IMPP)

    The Government of Canada implemented measures intended to bolster the financial system through the launch of its Insured Mortgage Purchase Program (IMPP). The government is prepared to purchase up to $150 billion of insured mortgage pools through CMHC, increased from the original $50 billion announced on March 16 as part of the Emergency Response Act. This will allow stable funding to banks and mortgage lenders that will help ensure lending to continue to Canadian consumers and businesses. For more information on the Insured Mortgage Purchase Program, click here.

    Property Tax Deferrals

    Some Canadian cities are allowing property tax deferrals, such as Toronto, Ottawa, Grand Prairie and more, while other cities are considering similar action. These decisions are being made at the municipal level and things are changing daily. We recommend visiting your municipality online to determine if your upcoming payment can be put on hold without repercussion.

    Hydro Pricing Reductions

    Ontario is eliminating mid-peak and on-peak electricity rates giving residents who have been forced to stay home due to COVID-19 the lowest rate available (off-peak) all day for 45 days. The lowest electricity rate is also being extended to small businesses and farms. For more information on the Ontario hydro rates, click here.

    Internet Usage Rules Relaxed by Major Telecommunication Companies

    Some major telecommunication companies, such as Telus and Shaw, are changing their phone and internet plans and adapting amidst the COVID-19 pandemic. The Shaw website notes that they do not have data caps on their internet plans, allowing you to keep kids entertained and work from home without having to worry about data caps on your internet.

    CRA Sets New Deadline to File your 2019 Income Taxes

    The CRA has announced that there are new tax filing and payment due dates. The new due date for filing individual tax returns has been extended to June 1st, 2020. Taxpayers will have until September 1st, 2020 to pay any 2019 income tax amounts owed. 

     

    Courtesy of REMAX.ca

    #StayHome: How to Create Functional Spaces in Your Home During the Coronavirus Outbreak

    Posted on by Trisha Wilson

    Since the outbreak of the novel coronavirus (COVID-19), many of us are spending a lot more time at home. We’re all being called upon to avoid public spaces and practice social distancing to help slow the spread of this infectious disease. While it can be understandably challenging, there are ways you can modify your home and your lifestyle to make the best of this difficult situation.

    Here are a few tips for creating comfortable and functional spaces within your home for work, school, and fitness. We also share some of our favorite ways to stay connected as a community, because we’re all in this together … and no one should face these trying times alone.

    Begin with the Basics

    A basic home emergency preparedness kit is a great addition to any home, even under normal circumstances. It should include items like water, non-perishable food, a flashlight, first aid kit, and other essentials you would need should you temporarily lose access to food, water, or electricity.

    Fortunately, authorities don’t anticipate any serious interruptions to utilities or the food supply during this outbreak. However, it may be a good time to start gathering your emergency basics in a designated location, so you’ll be prepared now-—and in the future—should your family ever need them. 

    Ready to start building an emergency kit for your home? Contact us for a free copy of our Home Emergency Preparation Checklist!

    Working From Home

    Many employees are being asked to work remotely. If you’re transitioning to a home office for the first time, it’s important to create a designated space for work … so it doesn’t creep into your home life, and vice versa. If you live in a small condominium or apartment, this may feel impossible. But try to find a quiet corner where you can set up a desk and comfortable chair. The simple act of separating your home and work spaces can help you focus during work hours and “turn off” at the end of the day. 

    Of course, if you have children who are home with you all day (given many schools and daycares are now closed), separating your home and work life will be more difficult. Unless you have a partner who can serve as the primary caregiver, you will need to help manage the needs of your children while juggling work and virtual meetings.

    If both parents are working from home, try alternating shifts, so you each have a designated time to work and to parent. If that’s not an option, experts recommend creating a schedule for your children, so they know when you’re available to play, and when you need to work. A red stop sign on the door can help remind them when you shouldn’t be disturbed. And for young children, blocking off a specific time each day for them to nap or have independent screen time can give you a window to schedule conference calls or work uninterrupted.

    Homeschooling Your Children

    Many parents with school-aged children will be taking on a new challenge: homeschooling. Similar to a home office, designating a space for learning activities can help your child transition between play and school. If you’re working from home, the homeschooling area would ideally be located near your workspace, so you can offer assistance and answer questions, as needed.

    If possible, dedicate a desk or table where your child’s work can be spread out—and left out when they break for meals and snacks. Position supplies and materials nearby so they are independently accessible, and place a trash can and recycling bin within reach for easy cleanup. A washable, plastic tablecloth can help transition an academic space into an arts and crafts area.

     If the weather is nice, try studying outside! A porch swing is a perfect spot for reading, and gardening in the backyard is a great addition to any science curriculum. 

    In addition to creating an academic learning environment, find age-appropriate opportunities for your children to help with household chores and meal preparation. Homeschooling advocates emphasize the importance of developing life skills alongside academic ones. With more meals and activities taking place at home, there will be ample opportunity for every family member to pitch in and help.

    Staying Fit

    With gyms closed and team sports cancelled, it can be tempting to sit on the sofa and binge Netflix. However, maintaining the physical health and mental wellness of you and your family is crucial right now. Implementing a regular exercise routine at home can help with both.

    If you live in a community where you can safely exercise outdoors while maintaining the recommended distance between you and other residents, try to get out as much as possible. If the weather is nice, go for family walks, jogs, or bike rides. 

    Can’t get outside? Fortunately, you don’t need a home gym or fancy exercise equipment to stay fit. Look for a suitable space in your home, garage, or basement where you can comfortably move—you’ll probably need at least a 6’ x 6’ area for each person. Many cardio and strength training exercises require little (or no) equipment, including jumping jacks, lunges, and pushups. 

    If you prefer a guided workout, search for free exercise videos on YouTube—there are even options specifically geared towards kids—or try one of the many fitness apps available.

    Socializing From a Distance

    Even though we’re all being called upon to practice “social distancing” right now, there are still ways to stay safely connected to our communities and our extended families. Picking up the phone is a great place to start. Make an effort to reach out to neighbours and loved ones who live alone and may be feeling particularly isolated right now.

    While parties and playdates may be prohibited, modern technology offers countless ways to organize networked gatherings with family and friends. Try using group video conferencing tools like Google Hangouts and Zoom to facilitate a virtual happy hour or book club. Host a Netflix Party to watch (and chat about) movies with friends. Or plan a virtual game night and challenge your pals to a round of Psych or Yahtzee.

    There are safe ways to connect offline, too. Rediscover the lost art of letter writing. Drop off groceries on an elderly neighbour’s porch. Or organize a neighbourhood “chalk walk,” where children use sidewalk chalk to decorate their driveways and then head out for a stroll to view their friends’ artwork.

    Of course, there’s one group of people who you can still socialize with freely—those who reside in your home. Family dinners are back, siblings are reconnecting, and many of us have been given the gift of time, with commutes, activities, and obligations eliminated. In fact, some families are finding that this crisis has brought them closer than ever. 

    YOU ARE NOT ALONE

    Even with all of the tools and technology available to keep us connected, many of us are still feeling stressed, scared, and isolated. However, you can rest assured that you are not alone. We’re not only here to help you buy and sell real estate. We want to be a resource to our clients and community through good times and bad. If you and your family are in need of assistance, please reach out and let us know how we can help.

     

    Courtesy of The Paperless Agents

    How Canadian Real Estate Can Continue During Coronavirus

    Posted on by Trisha Wilson

    COVID-19 has hit 2020 like a wrecking ball, slowly making its way across borders. Social distancing has us all pressing pause, letting go of priorities in favour of time spent indoors, connected only though our screens. Alas, in the real estate market, even amid a global pandemic, there are still sellers who need to sell, and buyers who need to buy.

    Lucky for us, in this age of technological glory, real estate agents have access to some great solutions to ensure that processes remain safe, and transactions can continue to take place. This too will pass, and in the meantime, we can all use a little creativity to ensure that our brief pauses don’t turn into a full stop.

    Great News for Buyers

    Finally, a silver lining to COVID-19 mark on the markets: if financially possible, it can be a great time to buy a home with interest rates being the lowest we have seen.

    In response to the viral outbreak, banks worldwide have been cutting interest rates. The Bank of Canada cut the interest rate for Canadians by a full percentage point earlier this month. As a result, prospective home buyers looking to get a mortgage can now expect to borrow at a decreased rate. With fixed term mortgage rates also on the decline, home buyers have the flexibility to borrow more and aim for a higher home price or get a better mortgage rate and have less expensive mortgage payments.

    So, with buyers in a good position to buy, how are real estate agents helping to make home sales happen, particularly in the wake of temporary social distancing?

    Leverage Technology for Real Estate!

    Big advances in technology have ignited a fundamental shift in the real estate industry, and it is now easier than ever to gain a wealth of knowledge about a home, condo, townhouse or any listing from the online listing alone.

    Floor plans, detailed descriptions, panoramic pictures, and video tours allow the buyer to get a good feel for a home, before ever setting foot within the property.

    With a greater segment of the population glued to their screens during isolation measures, there could be a marked increase in recreational and serious buyers browsing the online marketplace. Agents will be ensuring more than ever that their online listings are as detailed and alluring as possible.

    These tools will help the real estate market move online, at least until isolation measures have passed:

    • 360 Virtual Video Tours

    More agents are working with photographers specializing in 360 home video tours as a way to create an immersive experience for the home buyer.

    By helping to bring the property listing to life, buyers like that they can get a feel for the space without being there. A good virtual video tour is navigable, interactive, and controlled by the viewer. The resolution should be high, and the control tools should be intuitive.

    The ultimate goal is to replicate the experience of walking through each room, in person. During COVID-19, 360-home tours are a recommended alternative to an open house.

    • Ditching the Paperwork

    We may be hoarding toilet paper supplies, but we can a least give the printer paper a rest by moving to electronic signing methods once you’re ready to sign on the bottom line.

    There are a number of downloadable apps available, allowing signatories to sign a PDF or word document directly through your phone or tablet. Many of which real estate agents are already using to facilitate real estate deals.

    Limited contact, limited paper. Online signing methods can be encrypted with a tamper-evident seal and audit trail. This ensures the legality of the signed documents and allows you and your agent to view what was signed, and when.

    • Screen-to-Screen Selling

    While face-to-face contact is challenged during the period of social distancing, there are other ways to maintain a personal connection with your agent. Video calling tools such as FaceTime and WhatsApp, can help mimic a meeting with your agent more effectively than a phone call, and can also prove to be useful if you wish to view aspects of a property not shown through the listing.

    Above all, it’s important that you’re taking precautions to ensure your personal safety, and the safety of others during your home search. And remember that “necessity is the mother of invention”; perhaps some of these temporary adjustments will prove to be viable long-term solutions for the real estate industry.  In the meantime, with a little bit of creativity, real estate agents can maintain their commitments to their clients, in a way that keeps all of our communities safe.  

     

    Courtesy of REMAX.ca

    Our Commitment During The COVID-19 Crisis – A message from RE/MAX Canada

    Posted on by Trisha Wilson

    To our valued customers and real estate consumers,

    We know this is a trying and stressful time for all of us in Canada.  Things are changing almost hourly with government recommendations at the federal, provincial, and municipal levels.

    At RE/MAX, we want to offer you stability and comfort knowing your real estate needs are still being met in a safe and responsible manner.  On remax.ca, we continue to offer up-to-the-minute listings, accurate home estimates, and timely, valuable real estate news — especially important at this time.

    Rest assured, while we remain open for business, our agents and brokers are taking all necessary precautions as recommended by the various health agencies and government.  

    • Our agents are limiting contact with the general public and will use alternative means of communication wherever possible such as texts, phone calls, and emails
    • We have strongly recommended the postponing of all open houses immediately until a future date where it’s deemed safe
    • Any agents that feel unwell are instructed to self-isolate and not interact with the public
    • Information around hand washing and sanitizing has been circulated with our agents and we are strongly encouraging them to follow all guidelines as outlined by public health officials to help keep themselves and their clients protected
    • RE/MAX offices are reducing hours and seeking alternative technologies to connect with clients and host offer presentations 
    • RE/MAX agents are committed to using technology to help safely deliver the best service possible. This includes virtual tours of the home or digital presentations. 

    The strength of our RE/MAX agents is knowing and being a part of your communities.  We are all in this together and remain committed to keeping you and your loved ones safe. 

    To those who are already with our RE/MAX agents buying or selling a home, our agents are there for you and if necessary, will make arrangements with you if there are any concerns around illness or potential spread of the virus.

    Nothing is more important right now than the health and safety of our colleagues, clients and fellow citizens across Canada.

    Check our blog frequently for our updates on how this situation is impacting the real estate market, and we will continue to be here to answer your questions and serve your real estate needs.

    Sincerely,

    Christopher Alexander

    EVP & Regional Director of RE/MAX Ontario-Atlantic Canada

    Elton Ash 

    Regional Executive Vice President, RE/MAX of Western Canada

     

    Courtesy of REMAX.ca

    Top Things Sellers Often Forget to Do Before Showing Their Home

    Posted on by Trisha Wilson

    There can be a lot of stress involved when trying to sell your home and one of the biggest factors that is always on a seller’s mind is showing process. While your home is on the market, you never know when a showing is going to be scheduled and therefore sellers must be on their toes in making sure their home is tidy and looks its best to potential buyers. However, with so many things to organize before a showing, it can be easy for a seller to forget to do something essential before an agent brings a potential buyer through your home.

    We’ve reached out to our RE/MAX Influencers – a panel of RE/MAX Sales Associates throughout Canada – to narrow down a list of the top things that sellers often forget to do before showing their home.

    Lighting & Blinds

    When it comes to showing your home, lighter is brighter! For daytime showings, opening up those blinds and curtains and turning off all artificial light will allow the natural light to flood your home. Walking into a bright, airy space is going to give a much better first impression to potential buyers than walking into a dark space.

    “For showings after dusk, you want to showcase your home right from when a potential buyer pulls up to your property. Having all exterior lights on will help guide the agent and clients to the front door, as well as reduce the potential for any injuries if it Is winter and there may be a slip hazard on the driveway. All lights on in the interior will give a better first impression of the home if the potential buyer has just come from looking at a property where it was dark upon entering,” says Cheryl MacIsaac, RE/MAX Baughan Realty, Wainwright, AB. “This will also help the showing agent as they will not need to search for light switches to turn on lights. It also lets the seller know if the showing has occurred as most agents will turn off the lights upon leaving each room, if instructed to do so.”

    Clean & Tidy

    One of the most important things that a seller must do when selling their home is keeping it clean and tidy. While sweeping floors and vacuuming the carpets will speed up your cleaning process, sellers often forget to tidy things that they may be accustomed to, such as pet items, which may end up turning buyers away.

    “Sellers often forget to make sure that family pets and their bedding, toys and litter boxes/yards may not be clean or out of the way. It is so important as some buyers are allergic, don’t have pets or if they smell pet odours it may turn them off from buying,” says Sandra Benz, RE/MAX Performance Realty, Delta, BC.

    Another important thing to remember when preparing your home for showings is to open a window or two and allow some fresh air into your space! As Ray Yenkana, RE/MAX Little Oak Realty, Surrey, BC says, “Sellers are used to their smells, but those smells may be an instant turn off to potential buyers!”

    Close that Lid!

    A simple, yet easily forgotten thing that sellers often forget about when preparing to show their home is to put the toilet seat down. As easy as it is to close the lid behind you, many sellers completely overlook this aspect of cleaning their bathroom.

    “Sellers often forget to put the toilet lid down. First impressions are everything; you want people to see the room, not the inside of a toilet,” says May Smith, RE/MAX Little Oak Realty, Surrey, BC.

    As Shauna Thompson of RE/MAX Fort McMurray says, “It becomes a distraction to the buyer, and the buyer’s agent doesn’t want to have to touch the toilets to put the seats down!”

    Personal Items

    When it comes to preparing your house for a showing, it can be easy to overlook the little things that may deter a potential buyer, such as displaying personal items. Things like family photos and sentimental items may seem like a good idea, as it can make the space look more inviting and lived-in, but many potential buyers have a hard time imagining themselves living in the space if it is filled with personal items.

    “It’s harder for buyers to imagine themselves living in the house with other people’s photos and they waste time trying to figure out if they know the sellers or what the relationship may be/family composition/reason for selling may be,” says Curtus Collins, RE/MAX Crown Real Estate, Regina, SK.

    Garage & Driveway

    The garage and driveway are two areas that sellers often overlook when preparing their home for a showing, yet these are two areas of your home that potential buyers will be extremely interested in. Whether a new buyer is planning to use the garage for storage or parking, it is important to prepare the garage for a showing so anyone walking through can get a good idea of how much space there is to work with. As Kimberly Graham of RE/MAX River City in Edmonton, AB says, “Leave a way to access the garage. Most often it is a space where sellers store everything they have decluttered, so they can keep their things safe. However, buyers still want to see the garage!”

    The driveway is another part of the home that is often not considered but is very important to potential buyers, as it is often one of the first things they will notice when driving up to the property. In particular, potential buyers will be considering their parking situation and how their vehicles and recreational vehicles, such as RV’s and boats, will fit in the driveway. If possible, ensure that your driveway is as clear as it can be to allow buyers to get an accurate representation of just how much parking is available.

    “When buyers come to view the home if they are driving along with their agent, or separately, it draws attention to limited parking. This can be particularly challenging for homes in cul-de-sacs or places where parking could be a concern as the driveway will announce it as a challenge,” says Taylor Hack, RE/MAX River City, Edmonton, AB.

    If you are considering selling your property, give us a call!

     

     

    Courtesy of REMAX.ca

    How to Invest in Real Estate in Toronto

    Posted on by Trisha Wilson

    Real estate investments offer the chance to build assets that will increase in value and build wealth. Although many people think real estate investors have to be tycoons to get into the real estate market, even average homeowners have their share in the real estate game. Here we explain the different options for investing in Toronto real estate and the reasons real estate can be a good investment, especially in the long-term.

    Investing in a Home

    This is by far the easiest way to get into the real estate market. You have access to funds to invest in your property via a mortgage, which means as long as you can come up with a down payment, have good credit and steady income, you can probably find a property to purchase, even if it is on the outskirts of the city.

    The benefits include:

    • You live in the home, so don’t have additional living costs for rent
    • Owning your primary residence is the best form of “forced savings”
    • Your mortgage payments are smaller incremental investments that build big home equity
    • It provides a tax shelter as your profits are not taxed when you sell your home
    • Your home equity can provide capital to put toward other investments
    • Mortgage interest rates are low now

    Buying a home is the most basic form of buying and holding an investment. Buy it, hold onto it, and watch your equity grow.

    Buying and Holding

    You can apply the buy-and-hold strategy to more than one property. Unless you have millions of dollars sitting around allowing you to carry several mortgages, the easiest way to do this is to invest in rental properties. This is an excellent way to build a real estate portfolio, as you can purchase one or more rental properties and have tenants who generate rental income to pay your mortgage. In this scenario, it’s almost as if your property is mortgage-free.

    The trick in Toronto, of course, is buying a rental property you can afford, and that also provides you with enough rent to cover your mortgage. The only problem with rental properties is they require management and maintenance, so you have to ask yourself, “Do I really want to be a landlord?” You can pay property management fees for someone else to do the work, but that eats into your profits.

    Condos and Rental Properties

    As long as you buy the property for a fair price, have a property that will attract tenants (near transit, affordable compared to other rentals in the area, safe area, near amenities, etc.) and can keep tenants, you can build a respectable portfolio. The only caveat is that you will, of course, need the 20-per-cent down payment for each property and get a mortgage.

    Toronto condos are a popular choice, as they have a more affordable purchase price, especially when purchased pre-construction. They also have tenant demand as a rental property and the condo market is seeing excellent gains in value. The downside is your rent will have to be high enough to cover your mortgage and condo fees.

    Flipping Real Estate

    Flipping is buying an undervalued fixer-upper, renovating it and then selling it at a profit. This has long been a real estate investment choice for people not interested in being a landlord. However, financing is trickier because you need money to manage renovations. Unless you are a true handy person or know someone who is, renovations can pose many challenges.

    Competition to purchase fixer-uppers can be fierce, as it is not just investors but homeowners who are in search of undervalued properties. Also, it can be hard to find a home that is priced significantly below market value. There is more risk because you have to know:

    • How much to pay for the home
    • How much to invest to be able to sell at a profit
    • How to price the home so it isn’t too high to find a buyer

    Financing your costs can be tricky and finding a lender can prove a challenge. If you run into issues selling, you can try to rent the property to cover your mortgage. However, with today’s low housing inventory, selling shouldn’t be a problem and might even drive up prices due to bidding wars.

    Joint Ventures in Real Estate

    If you want to invest in Toronto real estate, but either have bad credit or not enough money for a down payment, you can opt for a partnership with someone you trust and go into the purchase together. You share the burden of financing the property and split the profits when you sell. You can do this using the buy-and-hold strategy, rental properties to tenants, flipping or even own and live in the property together. The trick is to have all the terms clearly plotted out such as:

    • For flips, how the repairs will be done, paid for and managed
    • How much you are willing to spend on upgrades to still see a profit
    • Finding tenants and managing the property if renting it out
    • Your selling strategy and goals
    • Buying out a partner

    Caution is greatly advised when choosing a partner. Some have a history of overextending themselves financially, and chances are they could do it again. Consult a lawyer for advice on how best to proceed.

    Purchasing REITS

    Real estate investment funds or REITs are publicly traded organizations that invest in income-producing real estate assets. They are purchased like stocks and come in different types with varying degrees of risk. They usually consist of diverse holdings such as industrial buildings, residential apartment towers, office buildings, malls, etc., and can be local or international properties.

    You can own units easily as they start as low as $10 compared to the minimum you would need for a down payment for a Toronto property. In the past 10 years, REITs dollar value grew 215 per cent, making them rather lucrative. This comes with all the benefits of owning property, without any of the headaches.

    Benefits of Renting

    Rental property opportunities are a good Toronto real estate investment strategy. Toronto’s population is growing and so is the demand for rental units. In fact, Toronto is the fastest-growing metropolis in North America with 77,435 new residents arriving between July 2017 and July 2018. Average rent should be able to cover your mortgage and in some cases even get your down payment back quickly. The only problem is, properties in the Greater Toronto Area today average $839,363, so you’ll need almost $60,000 upfront for your down payment.

    If you would like to speak to a real estate agent about Toronto real estate investments, reach out to us today.

    What Are Condo Fees? 3 Things to Know

    Posted on by Trisha Wilson

    What are condo fees, how are they calculated and what do they cover? Condos have become the home of choice for many Canadian homebuyers, particularly first-timers, but increasingly move-up buyers as well. But many don’t understand this lifestyle option before deciding that it’s right for them.

    Affordability is a big factor behind the relatively recent shift to condo living, but it’s certainly not the only appeal. Other benefits include a sense of community (yes, vertical communities are a thing!), easy access to urban conveniences, public transit, employment and entertainment, as well as a lock-and-leave lifestyle for when life takes you further abroad.

    RELATED READING: RE/MAX 2020 Housing Affordability Report

    What are condo fees, how are they calculated, and what do they cover?

     

    What are condo fees?

    Every condo owner pays a regular, non-negotiable condo fee. This fee is calculated based on your share of the condo building – the larger your unit, the greater your fee. This fee is adjusted annually based on the condo’s operating budget.

     

    What do condo fees cover?

    Your condo fees are divided into three main categories: utilities, common areas and the reserve fund. Let’s take a closer look.
    A chunk of your condo fee goes to utilities such as water, hydro and sometimes heat – but this isn’t always the case. Most brand-new condominiums are now being built with individual heat pumps that are controlled by, and paid for by individual owners. Make sure you’re clear on your condo fees before you buy.

    We’ve already mentioned that condo ownership means less maintenance on your to-do list. But somebody’s gotta do it, right? Your condo fees cover that expense as well.

    And remember those awesome amenities that your family and friends come over to use? You have to contribute to their upkeep. The more amenities your condo has, the higher your condo fees will be. Think pool, gym, hobby rooms, sports courts, an in-house theatre, indoor and outdoor areas. Ask yourself if you’re going to actually use all of the amenities offered by your condo, because you’ll be paying for them.

    Condo fees also pay for snow and garbage removal, cleaning and minor repairs of common areas, exterior window washing and the like.

     

    What is a reserve fund?

    A portion of your condo fee is set aside in a reserve fund, which every condo board must maintain as a savings account for big-ticket items that inevitably arise. A roof replacement can cost upwards of half a million dollars, so this fund is essential.

    Then there’s the Special Assessment. In the case that the reserve fund doesn’t quite cover the bill, each condo owner will be required to pitch in their proportionate amount to cover the cost.

    If you’re considering condo ownership, make sure you incorporate the condo fee into your budget. Make sure to leave a buffer in case your condo fees increase, which tends to happen as condos age. Any increases are at the discretion of the condo board.

    Before you make an offer, get a copy of the condo’s status certificate, which contains important details about the condo’s financial status. Review it and make sure you understand it. The document will include things like the condo’s budget, any pending legal matters, information about the reserve fund, current maintenance fees, and whether any increases are planned in the near future.

    The fee for the status certificate? It varies by province, so ask your local RE/MAX agent. In Ontario, you can expect to pay about $100. The information contained it in? Potentially worth a great deal more to your investment.

     

    6 Hidden Expenses Buyers Often Forget About When Purchasing a House

    Posted on by Trisha Wilson

    Buying a house is one of the biggest purchases you will make in your lifetime and a lot goes into the planning and finances of purchasing a home, especially if it is your first home. From a down-payment, to repairs & maintenance, to purchasing furniture and appliances, there are hidden expenses that one might not think of when in the home-buying process.

    We reached out to our RE/MAX Influencers – a panel of RE/MAX sales associates throughout Canada- to narrow down a list of the top six expenses that buyers often forget about when purchasing a home.

    Property/Land Transfer Tax

    The Property Transfer Tax (PTT) or Land Transfer Tax (LTT) is one hefty expense that our RE/MAX Influencers agree is often unaccounted for in advance of the purchase. All provinces except for Alberta and Saskatchewan have this tax, which differs between provinces. In BC, for example, when a buyer purchases or gains an interest in property that is registered at the Land Title Office, they are responsible for paying PTT and filing a property transfer tax form. Meanwhile in Toronto, home buyers must pay both a provincial and municipal LTT. BC, Ontario and Toronto, as well as Prince Edward Island, all offer rebates to first-time buyers to help offset the cost.

    Property Tax

    “At the time of purchase, the [property] tax owing by the seller has normally been accounted for with the clients, but not that it’s going to be due. If someone takes possession in October, they will pay the seller back for November and October, but then only have 6 months to save up 12 months worth of tax before it’s due. There is not enough discussion with buyers on this and given that they are normally ‘tapped out’ after the down payment and closing costs, it can be an unexpected bill if they haven’t owned a home before,” says Taylor Hack, RE/MAX River City, Edmonton, AB.

    Insurance

    While home, fire and content insurance is usually an expense that is considered right away during the home buying process, there are other types of insurance that can be overlooked. These can include things like title insurance, life insurance and mortgage insurance can come as surprise unexpected costs. When planning and going through the numbers associated with purchasing a home, make sure you take all types of insurance into account.

    Home Inspection

    One important thing that every homebuyer should have done is a home inspection on the property they are planning on purchasing. While some sellers may opt to have a pre-inspection done, it is always a good idea to have a home inspector look at the home to ensure that there are no issues with the land or structure of the home. The cost of a home inspection can often be overlooked, so it is important to remember to allocate a portion of your budget towards a home inspector when the time comes to purchase your home!

    GST/HST

    While sales tax is generally only applicable to newly constructed houses and condos, as well as services related to the real estate transaction (such as agents’ commissions and legal fees) this cost is often overlooked – especially by first-time homebuyers. If you are looking at purchasing a new construction property, make sure you ask about the sales tax payable, and take the time to calculate it so you can budget for this amount.

    Legal Fees

    Another expense that is often forgotten during the whirlwind process of purchasing a home is that of lawyer fees. The exact amount varies depending on the purchase price of the home and differs based on the lawyer/notary. The legal expenses also often include ordering a title search and registering title.

    “If we do not educate homebuyers, they usually don’t know about lawyer fees or sometimes have a skewed number of what the average lawyer costs,” says Sarah Koeckhoven, RE/MAX Preferred Choice, Spruce Grove, AB.

    When estimating the cost of buying a home, don’t forget to include legal fees in the total list of main costs that need to be considered.

    For more advice on buying a property, contact us today!

     

    Courtesy of REMAX.ca

    Top Things to Help Your Home Stand Out in a Competitive Market

    Posted on by Trisha Wilson

    When it comes to selling your home, especially in a competitive market, making sure your home stands out is essential. In markets that are fast paced, houses come and go constantly, so standing out to prospective buyers is incredibly important. There are dozens of different ways you can make your home stand out in a competitive market, so it can sometimes be hard to know where to start.

    We’ve reached out to our RE/MAX Influencers – a panel of RE/MAX Sales Associates throughout Canada – to narrow down a list of five things that can help your home stand out in a competitive market.

    Paint & Repairs

    A fresh coat of paint can work wonders when it comes to standing out in a competitive market. Painting your home a light, neutral color will help potential buyers to visualize themselves living and making changes to the home.

    “Make sure walls and doors are clean and freshly painted. Any carpet or damaged flooring should be replaced. Help the buyers visualize themselves living there as opposed to all the money they would need to spend to be comfortable. In the end, not doing these things will take away from a seller’s best sale price” – Kelley Law, RE/MAX All Points Realty, Coquitlam, BC.

    A fresh, neutral colour palette will help make your home seem move-in ready. Lighter colours help to brighten up spaces and make rooms seem bigger, which can be a huge asset when it comes to showing the home — especially a home with a small footprint.

    Cleaning & De-Cluttering

    One of the most important things that you can do to help your home stand out in a competitive market is to de-clutter and have it professionally cleaned. When a potential buyer walks into your home, they want to be able to envision themselves living in the space. Having clutter built up and visible to buyers can hinder their viewing and can make it harder for buyers to imagine their items in the space. “Live minimally, so when you get that last minute showing, a quick vacuum and wipe-down is all you need!” says Shilo Storey, RE/MAX First, Calgary, AB.

    Try to tuck away as many personal items as possible to allow buyers to walk through your home as a neutral environment, not one littered with family photos and personal items. The cleaner and more pared down your home is, the better — particularly when it comes to showing potential buyers!

    “Keeping the home looking sharp (pride of ownership) indicates long-term care and attention to looks and mechanical. Home appearance is a good indication the owner has looked after problems in a timely manner” – Michael Ray, RE/MAX Crest Realty (Burnaby Kingsway), Burnaby, BC.

    Staging & Photography

    Staging and photography go hand-in-hand when it comes to selling your home. Having professional photos taken to showcase your property can help attract potential buyers to your listing, and proper staging can help to impress those buyers if they choose to walk through your property.

    “Professional presentation of the home, with staging, will set the bar high for online showcasing of the home, marketing materials, etc, to get people into the home” – Rob Grey, RE/MAX Nanaimo, Nanaimo, BC.

    Staging your home will allow buyers to see how furniture fits in the space and can help potential buyers visualize living in the home themselves. Having professional photos taken after staging can help set the stage for online viewings and will help attract people to your listing.

    Curb Appeal

    First impressions are very important and can have a huge impact on your listing if you are trying to stand out in a fast paced, competitive market. The curb appeal of your home is going to be a potential buyer’s first impression, therefore it needs to make an impact! Make sure the grass is cut, weeds are pulled, and any other items, such as bikes or toys, are tucked away out of sight. If you are trying to sell your home in the winter, make sure you have a recent summertime photo of the exterior of your home to help potential buyers visualize what the home looks like year-round.

    “The first impression is paramount, so walking to the front door should make you want to go inside and find out more” – Francine Legault, RE/MAX Ocean Pacific Realty, Comox, BC.

    Price

    Finally, when it comes to standing out in a competitive market, price is one of the most important factors to consider. In a fast-paced market, pricing is key to a quick sale. If your house is priced too high, it may be overlooked by potential buyers which will result in your listing sitting in the market with no offers coming in. If your house is priced too low, you may receive many offers, however you won’t get the right price for the value of your home.

    “In a buyers’ market, it is important to set yourself apart from the competition. Pricing is critical as overpriced homes in the market will not attract showings or offers and will sit on the market,” says Matthew McBean, RE/MAX First, Calgary, AB.

    When determining what price you should list your home, make sure to do your research. Look at comparable homes in your area to ensure you’re entering the market with an appropriate listing price.

    For more advice on selling a property, contact us today!

     

    Courtesy of REMAX.ca

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