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CategoryReal Estate Trends

Posted 5 Comments on CREA and Competition Bureau reach agreement on MLS Real Estate Trends

CREA and Competition Bureau reach agreement on MLS

A deal was struck earlier this week that will make it easier for seller’s to list their homes on MLS… The Competition Bureau hopes we will see some changes in real estate commissions….click here for the CBC article.

Currently, a seller pays 5% or 6% to sell their home… and that’s been the standard for many years… But with new technology and the internet, we have seen For Sale By Owner companies popping up everywhere.    These companies have not been able to access MLS without employing a realtor.

We all want to save money and pay less… but there is a saying…’you get what you pay for’..    For some, paying a reduced flat fee, and handling viewings, the negotiations, etc, could be worth savings…. but others may not have the expertise, the knowledge or the time to deal with this….

In the end, I think choice is good.   It remains to be seen how many people will move away from the traditional real estate agent and handle things on their own…   Just beware of something that sounds too good to be true…

 

Posted 8 Comments on Canadians buying Florida property… what to consider Real Estate Trends

Canadians buying Florida property… what to consider

I must admit, the idea of owning a property in Florida sounds kinda nice… and who wouldn’t want to buy real estate at rock bottom prices…?  We did some investigating to see if the opportunities are as good as we hear.

Here’s what we found out based on our inquiries and research:

  • Property values are down between 50% and 70%…wow!
  • But there are some challenges to buying and financing these properties…
  • Most lenders don’t want to entertain offering a mortgage to foreign buyers…
  • There is one Lender that will lend in Florida and a few other States to Canadians… up to 50% of the Purchase price with a minimum mortgage of $200,000CAD.
  • you can also look at taking equity out from your Canadian property or paying cash.
  • There is also a big concern with the Homeowner’s Association and condos..click here for 7 Questions to ask before buying a condo in the U.S.

Bottom line…  house values have dropped significantly…  they could drop even further but there is more potential for an increase vs a decrease over the next 7 years….. add in record low interest rates and a healthy demand for rentals and it’s probably a good time to buy in the Florida and other parts of the U.S.

Keep in mind that any real estate investment should come with a plan to hold for at least 7 years…(click here to read why)

Posted Real Estate Trends

Mls will be more readily available to consumers

On thursday September 30th, the Canadian Real Estate Association (CREA) and Competition Bureau of Canada came to an agreement to allow easier access to their Multiple Listing Service (MLS).  More details from the Globe and Mail.

Earlier this year, the Competition Bureau was making a lot of noise for CREA claiming that the MLS should be more readily available to consumers…  it seems this new compromise will allow a seller the option of choosing services from a licensed realtor.  It’s sounding like we could start to see flat fees being charged by companies to list their home on MLS.

Watch for more ‘For Sale By Owner’ companies (FSBO) to pop up in the coming months…. but also beware of deals that sound too good to be true… One of the concerns raised by CREA is that we could see shoddy service and even fraud.  I guess time will tell….  As always, get recommendations, seek professional advice and opinions…

Posted Mortgage Tips

Sell your home with a below market interest rate

Saw an article this week that talked about low mortgage rates being used an incentive to help sell your home faster.   Most mortgages are assumable, meaning the buyer of your home can take them over upon qualification.

If interest rates increased significantly, then having a 3.69% mortgage could lead some buyers to your home.

Another strategy that is used during a slower housing market is to buy the interest rate down to below market rates… this is something that would need to be negotiated at the time of signing the mortgage but it is offered by a few major lenders…

Posted Case study

Uncover the hidden equity in your home

Turn on the TV, listen to the radio, read a newspaper or talk to someone at the office water cooler.   What are we hearing?  ‘House prices fall’….  ‘Mortgage rates are going up’…

Okay, are you ready to hear some good news?   Let’s talk about what’s really happening and how YOU can benefit.

Firstly, house values are actually stable according to the Canadian Real Estate Association (CREA).  The article goes on to say that House sales may cool this fall due to a robust Spring market and that house prices may fall.  Hey, that’s okay.. we don’t want to see a runaway market… but that should trigger us to do something now.   Take advantage of these incredibly low rates.

Interest Rates are at historical lows and yet I don’t see much news coverage about that…did you know that a 5 year fixed rate can be had for around 3.69% and in some cases even better for qualified borrowers….   Variable rate is also great… 2.30% is an excellent rate…. and Economists are forecasting for no real increases until the Spring…

REFINANCE WHEN RATES ARE LOW

It’s really no secret…. you’ve heard of buy low and sell high?… well, with interest rates it’s ‘borrow when rates are low and get rid of high interest rate debt’….. This is the best time to borrow money. Here’s how you can benefit….

Let’s suppose your situation looks like this:

  • have a house worth $350,000
  • a mortgage balance of $200,000 @ 5.00% with payments of $1,100/mth.
  • credit cards $8,000 @ 12.00% with payments of $240/mth
  • a line of credit $10,000 @ 6.00% with payments of $300/mth
  • car loan of $15,000 @ 6.00% with payments of $480/mth
  • you want to invest some money into rrsps or resps or some other GOOD investment for $20,000….
  • your monthly payments total $1,640.

Here’s what you could be doing:

  • increase your mortgage by up to $80,000 to $280,000
  • pay off all that debt and take the extra funds (up to $47,000) and invest or use as you require
  • your payment based on today’s 5 year fixed rate of 3.695 would be $1,427/mth
  • your payment based on today’s Variable rate of 2.30% would be $1,227/mth

Your cashflow would actually improve and you would put money in your pocket.

This is just one example of how you could benefit… we all have different needs and different situations…get your finances analyzed by a qualified Mortgage Broker.   See how you could benefit….It’s a great time to borrow…