Sep 13, 2016 | Home Buyer Tips
With real estate becoming more affordable, new homes being sold in a range of prices and the cost of rent going up, there has never been a better time to consider buying a starter home.
Put That Rent Money Into Your Own Property
People who live in areas that have become trendy know the pain of rising rent rates. At what point is the amount of money being spent on rent more advantageous to put into a new home?
Starter homes are not the crazy investment they used to be. With the increase in condo developments and the lower entry price for smaller homes, it’s never been easier and less expensive to put a down payment on a new home and put that rent money into a place that you actually have a financial stake in.
A Starter Home Is Not A Fixer Upper
There was a point in time when starter homes were considered to be houses that required a lot of work to renovate them to a point where they could be sold for a profit. This was before really affordable condo developments started to spring up in every city and began to provide younger people the opportunity to own a home.
Some people still think of a starter home as a fixer upper, an old house that will require a substantial investment and time, something that most first-time home owners do not have an abundance of. In today’s market, starter homes can be brand new and will be in the best condition imaginable.
It Can Act As A Source Of Income
Some homeowners find that when it’s time to finally make the move from their starter home into their forever home, they no longer need to sell. In some cases they prefer to hold onto it and use it as a rental property to bring in a second source of income to help with the new house.
This is more common with condos in neighborhoods that have experienced tremendous growth around them in the years after the purchase. When the price of rent skyrockets in these areas, the investment actually has more value as a rental property until the time is right to sell.
There are many reasons to invest in a starter home and the area you want to buy will change depending on your own reasons. Contact your local real estate agent so you can pinpoint what you want out of a starter home and receive some valuable insight into the kinds of homes you should be considering.
Sep 2, 2016 | Home Buyer Tips
House, land and foreclosure auctions can be one of the most nerve-wracking ways to buy a property. However, if you prepare yourself with proven bidding tactics, auctions can be a great way to purchase your dream home at a competitive price.
If you’re in-it-to-win-it, familiarize yourself with these top three tips and tricks before attending a real estate auction.
Give The Right Impression
While you may not have control over what other bidders are willing to pay for a property, you do have some control over their perception of whether or not bidding against you is worthwhile. Come well-dressed and maintain a confident demeanour to give the appearance that you are a serious buyer, one whom ‘the other guy’ likely can’t out-bid.
To enhance this appearance, do not make an offer right away. Wait until the bids have reached approximate 80% of your maximum price and then join in, as it will knock out the bargain hunters. A big first bid can be intimidating to others, making them question whether they stand a chance against you. Following bids should be made quickly and confidently to send the message that you are the person who will be closing this deal.
If you are extremely anxious to place bids, consider hiring a professional bidder to do the work for you. A seasoned pro will be able to maintain their cool while placing bids strategically to maximize your chances of getting the property you want at the price you want.
Know Your Limit
Never go into an auction without knowing your absolute limit. If you are emotionally invested in the property it is best to write your limit somewhere on the inside of your hand, so that you are forced to remember it when you’re tempted to exceed it.
In terms of setting a limit, pick a figure that isn’t rounded. Many buyers will set limits such as $500k or $1.2 million, and will drop out after these round figures have been reached. If your limit is $515k or $1.25 million, you will have an extra cushion than may just barely outbid your rivals – and that’s all you need to win.
Ask The Hard Questions
Do your research beforehand and ask the auctioneer about the property’s flaws. Questioning whether the deck is up to code or whether there is still a possibility of road widening could make other bidders second guess the property and drop out before bidding has even begun.
Ready to blow the competition out of the water? Make sure you are completely prepared for an auction, contact your trusted real estate professional today.
Sep 1, 2016 | Home Buyer Tips
Many people dream of buying their ideal retirement home after their career has come to a conclusion – with all that extra free time it seems like it’d be the most logical time to shop around.
However, many real estate professionals strongly recommend that their clients find a retirement property before they’re off the payroll. While it may seem like a big time commitment to find a new home while you’re still busy with your work there are several significant financial benefits to purchasing your retirement home before you actually do retire. Here are our top reasons why.
It Makes Your Mortgage Easy
When you are employed it is easier to get approved for a mortgage. If you wait until after you retire to buy your retirement home, you may not have the income require to qualify for the mortgage that you need. Don’t limit yourself! Buy while you’re still employed to keep your options open.
It Leaves You With More Spending Money
Buying a new home while you have an income provides you with more security with your expenses, such as mortgage payments and planned upgrades or renovations. Having an income can also mitigate financial stress should you run into any unexpected expenses after closing.
It Leaves You Ready For Reality
You may think you can accurately predict the expenses of your new home, but if you buy the property before retiring it gives you time to get to know the true amounts of your monthly payments. This can help ensure that you have enough saved to retire and live comfortably in your new property, with no surprises for your budget. You’ll be in a better position to create a financial plan once you know the reality of owning your new home.
An Added Bonus: It Can Be An Income Property
If you decide to purchase your retirement home before you retire you don’t have to move into it right away. You can rent it out as an income property until you’re ready to settle in, which will not only help cover mortgage payments but will also allow you to see first-hand what the monthly expenses are for the property.
This will also prevent you from having to deal with a move while working; you can wait until you do finally retire before packing up your current home and moving into your new one.
Ready to find the perfect retirement property? Contact your trusted real estate professional today for more advice to set yourself up for the future.
Aug 31, 2016 | Home Buyer Tips
New homes can be scary. But when you take the time to think about it, and plan ahead, maintaining a home is easier than you think a manageable mix of experience and common sense. Here are five skills that will help maintain your new home for years to come.
Fixing A Toilet
It’s not as daunting as it sounds. Just remember that toilets work with gravity the water wants to flow freely. Don’t be afraid to open that tank up and adjust the floater and valves as needed. Occasionally run the water (flush the toilet, turn on the sink) in unused rooms, like the guest bathroom, to keep the pipes clear and functioning.
Dealing With Animals
Sometimes your animal neighbors invite themselves in. While it’s always better to use professionals if you have a large-scale or persistent pest problem, there are steps you can take to minimize animal visitors before it comes to that. Check for termites by looking for raised, hollow tubes along the wood (tubes filled with bugs). If you have mice, and know how they’re getting in, block their holes with steel wool and set friendly traps ones that capture instead of kill. But make sure to release the captives far from your home.
Electricity and Water Awareness
Know how to shut off your electricity and water, just in case. Find the shut-offs when you first move in. And take the time then to test the breakers and label them, clearly, directly, with permanent marker. That way there is no confusion if one gets tripped.
A Regular Deep Clean
On a regular basis, give your house a deep clean. Scrub the bathrooms, clean the kitchen appliances and floors/walls. Doing this will not only prevent the accumulation of dirt and grime, which could lead to bigger problems later on, but will also give you a chance to do a run-down of your house and see what needs fixing/updating/replacing.
Be Prepared
Gather your home maintenance kit (Home Maintenance for Dummies has examples) before you need it, and keep it up if you use all the nails, replace them. It’s also a good idea to make a maintenance calendar with notes on what needs to be done when this makes it easy for the homeowner, and anyone they need to step in. Finally, in being prepared, don’t forget to maintain your fire and carbon monoxide detectors with regular checks and battery changes (suggested every six months, regardless of battery life).
Your first step in preparation is to contact your local real estate agent, who can help you get started on your road to home maintenance.
Aug 30, 2016 | Home Buyer Tips
Purchasing a plot of land can be one of the best investments to make. A landowner has great (but not unlimited) freedom in how to develop their plot, and land never expires so its potential is essentially infinite. That said, buying undeveloped or vacant land can be risky business, so read on to find tips on purchasing a plot.
Do Your Homework: Before You Get Onto The Land
Before anything else happens, figure out your priorities. Decide what you want the land for, what amenities and what location you want, what you’re looking for in terms of neighbors or local government, and, of course, know your budget. More specific questions will arise around taxes, fees,and permits for building, available utilities/water access but, first, just start with your ideal land plot and work backwards (and into reality) from there.
Do Your Due Diligence: On The Land Itself
Once you find a plot that fits your needs on paper, get out onto it. Walk the land with an eye on the topography (any unexpected hills or valleys? Is the ground solid/fertile/arable, depending on what you need?), neighboring properties, size and shape of the plot, and any other element that the walk brings to your senses (smell and hearing as well as sight). Ideally, do this walk in the fall, so there is no foliage hiding your view of the property and what’s around it.
Don’t Despair: It’s Costly, But There Are Deals Out There
Remember that developing the land will incur costs too. Budget for as many foreseeable costs as you can, including a land survey, well/utility installation, legal fees, land clearing, landscaping, road construction and others. That said there are places you can look at for deals on the initial land purchase, including property lots for sale (which are cheaper the farther they are from major cities, road access, and already-connected utilities) or bank-owned plots. For those, you can talk to your real estate agent about asking local banks for lists of their foreclosed properties, which tend to be cheaper as banks look to sell them off.
Don’t Be Afraid To Ask: Reaching Out To Experts
Finally, talk to people. Ask locals about the neighborhood, previous uses of the land, potential surprises (like calm paths that turn into snowmobile trails in the winter). Connect with professionals in the local health department, zoning and building departments, accountancy and other areas of development for in-depth answers to your municipal questions.
But remember: while you will need to talk with many professionals in your due diligence, let your local real estate agent be your first point of contact.
Aug 12, 2016 | Home Buyer Tips
In a hot market it’s easy to be blinded by the competition and succumb to the pressure to make an offer on a home before you’ve adequately assessed it. If you’re looking to buy a home this summer, use these four tips to uncover hidden flaws before you put your offer in.
1) Hire A Pro
One of the most reliable ways to identify potential and existing problems within a property is to hire a professional home inspector to evaluate it. Home inspectors are trained to find issues that the average person may overlook, which can save you from putting in an offer on a money pit.
2) Do It Yourself
If you can’t afford to hire a home inspector, conduct a thorough home evaluation yourself. Ensure that the roof doesn’t have any significant damage or leaks, check window caulking for holes, and scan the basement thoroughly for asbestos and black mold.
Within the house, pay special attention to the bathrooms for leaks around the tubs, showers, and toilets, as this may indicate leaky pipes which can be a costly fix. Likewise, check underneath the kitchen sink and around appliances for leaks, which may also be a sign of a more expensive fix.
Even if you’ve hired a home inspector, always inspect the home yourself to the best of your ability. The more sets of eyes that look over the property the better, and you may find small problems that aren’t considered huge deficiencies to an inspector but may be deal breakers for you, such as peeling paint or cracked tile.
3) Seek Strata Minutes
If the home you are looking at is a condo, ask for copies of the strata minutes. Strata minutes serve as a record of any past issues that the building has had and will include notes on any upcoming costs that are already identified. Take these into consideration when estimating your condo fees and the value of the property.
4) Hire Help
Real estate agents can not only take a lot off of your plate when it comes to buying a home, but they also possess specialized knowledge and experience in uncovering flaws in homes. They know what to look for!
A real estate agent will take care of the property research for you, sifting through past strata notes or pointing out any deficiencies that they can identify when you are considering a home. With a trained professional on your team, you are more likely to find issues that could devalue the property.
Ready to find a home that’s fit for you? Get in contact with your trusted real estate agent today.
