Here we go again… The beginning of a new year, and the same annual forecasts for interest rates to go up! Before I share my thoughts.. Here’s some of the recent headlines that I’ve seen….
- a report by CBC News sharing 4 ways to prepare.. including selling your home, waiting to buy and locking into a Fixed rate mortgage! (Can you say panic?)
- Here’s another from The Globe and Mail telling us it’s “Bad News for Borrowers: The economy could improve this year”. Really? Tell that to the people in Alberta, Newfoundland and Saskatchewan.
- And this one from last week says Get ready for Interest Rate Shock in 2015.
Wow, reading this means rates are certain to up this year…right? So let’s see.. we should sell our home, put off buying (yet again) and lock in our Variable rates into Fixed rate mortgages..
Now let’s look at the most recent headlines.. Continue reading “So, you think rates are gonna spike up this year? Who says?”
Bad news travels 10 times faster than good news! It’s just human nature that we can’t seem to escape. We seem more likely to gossip about someone’s misfortune than their accomplishments.
Here’s a negative headline…. YOU LOST APPROXIMATELY $355,000, SO FAR, IF YOU’VE BEEN WAITING TO A BUY HOUSE SINCE 2008. Read on to see understand how and why.
Take Wednesday’s headline in the Financial Post, “Bank of Canada warns house prices are overvalued by up to 30%” . WOW! How’s that not gonna get your attention? It certainly got mine. I immediately had to read this article. But the more I read, the clearer it became that this statement wasn’t exactly true.
The article pointed to a semi-annual report that is put out by the Bank of Canada entitled, Financial System Review December 2014. That headline is an attention grabber.. And like most media headlines, it’s not the full story. In fact, it’s not an accurate reflection of what the Bank of Canada report had to say. If you look at Stephen Poloz’s (Bank of Canada Governor) comments, he says “there is some risk that the housing market is overvalued, and our estimates fall in the 10 to 30 per cent range”.
But he’s not done there.. Continue reading “Housing bubble? Waiting for the crash before buying has cost you 60% in the last 6 years.”
Did you know that Alberta has no residential rent control? And British Columbia landlords can increase rents by the rate of inflation PLUS 2%? In Ontario, the Landlord and Tenant Board sets annual rent increases. For 2014, the rent increase was a mere 0.8% and for 2015 the rents can only be increased by 1.6%. Anyone that’s bought a rental property has probably been following these rules for years. An increase of 2.2% over a 2 year period sounds great if you are a tenant, but somewhat unfair if you are landlord.
Now, what if I told you there’s a good chance your PROPERTY IS EXEMPT FROM ONTARIO’S RENT CONTROL RULES? Meaning you can increase the rents as high as you like. According to the Ontario Landlords Association, more and more properties are becoming exempt from Ontario’s rent control rules.
Continue reading “Attn: Ontario landlords… Rent control rules may not apply!”
Recent housing stats released by Toronto Real Estate Board (TREB) show listings and sales are down but, prices are up. According to TREB, the average sale price for a detached home in Toronto is $966,875. For those that have invested in real estate, you’ve done well. For those that are looking to buy, this may not be such good news.. However, there is a bright spot.
TREB also said that affordability has not deteriorated due to low mortgage rates. No doubt that low rates are helping to fuel real estate price increases. If you are waiting for the market to fall and prices to drop, you may want to reconsider that plan. The forecast is for prices to remain strong.
It’s been an interesting year so far. We’ve had a cold Spring, an even colder Winter, and yet the real estate market is red hot. Watch for house sales to remain strong. Trying to time the market can be costly. Just ask those that sold 2, 3 and 4 years ago. There have been many calls to exit the market. I have personally seen some clients sell and rent for the last 2 and 3 years. They are questioning that decision now.
I think buying a home should be a long term investment. Plan to hold for 7 years. That’s a long enough time to live through any up or down housing cycles. If you can stick with that plan, then you should be okay. Don’t buy because you are afraid of missing out. Buy because you need a home and can afford it. Buy because it’s a long-term investment and you have planned and thought it out. Buying to invest is a good idea, you just need to understand what it takes to own and finance a property.
Speak with a team of professionals. You need a good realtor, a lawyer, a mortgage broker, and an accountant. Professional advice doesn’t mean it’s gonna cost you a lot of money either. Professionals usually cost less than you think.. or they get compensated by other parties.. such as realtors and mortgage brokers.. you don’t pay them when you buy a house… The get paid by the seller or the mortgage lender (unless you don’t qualify for a traditional mortgage). The point is, it’s easier than you think.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis 416 224 0114 firstname.lastname@example.org
Last week, I had the privilege of attending REIN’s (Real Estate Investment Network) monthly workshop. One of my childhood idols was a guest speaker. I’m talking about Darryl Sittler, the former captain of the Toronto Maple Leafs. In case you haven’t heard of REIN, let me share some details about this group of professionals.
REIN is a group of real estate investors that get together to network and share valuable information that affects real estate in Canada. The leader of the group is Don Campbell. If you haven’t heard of him, you should. His approach to buying investment properties has proven to be very sound and profitable. His “top ten best cities to invest” is legendary. Continue reading “Darryl Sittler made his fortune in real estate, not hockey.”