Real Estate Blog by Katia Melnikova: Bank of Canada holds rate, drops forward guidance

Real Estate Blog by Katia Melnikova: Bank of Canada holds rate, drops forward guidance: Bank of Canada holds rate, drops forward guidance Fri, 10/25/2013 - 09:00 The Bank of Canada announced on October 23 rd  2013...

Bank of Canada holds rate, drops forward guidance

Fri, 10/25/2013 - 09:00

The Bank of Canada announced on October 23^rd 2013 that it was keeping its trend-setting overnight lending rate at 1 per cent. It has been at this level since September 2010.

Click here to read more

HOW LANDLORDS CAN STEER CLEAR OF BAD TENANTS

"Any landlord who has been involved in the real estate rental business for more than a few years has likely come across a tenant disaster, or at least knows somebody who has. One of the most common comments we hear from prospective, current, and former landlords relates to the headaches caused by accidentally renting to a bad tenant..." Click  here for the full article.

Don't Pay Another Cent in Rent to Your Landlord Before You Read This FREE Special Report

Discover How to Avoid the 6 Biggest Mistakes Homebuyers Make

TORONTO REAL ESTATE 2013-2014 OUTLOOK

2013-2014 

OUTLOOK

                                                Home Ownership Remain Affordable
                                                Home Sales Will Remain Strong
                                                Home Conditions Remain Tight

                                                Home Price Growth Will Continue

                                                Click here for full report

(Source: TREB)

Question: We’re selling our house. Or perhaps I should say TRYING to sell our house - it’s been on the market for over three months! We've had some interest but no firm offers. We put a lot of money into renovations and we want to get that money back, but there seems to be a lack of buyers in our price range - $1.5-million+ in our Bloor West neighbourhood. What are we doing wrong?

Answer: It’s tempting to believe that a house in a hot Toronto neighbourhood will sell within a week, especially if it’s YOUR house. But the average time on market for properties in Toronto this year has actually been 25 days. And the reality is that homes in the $1-million+ bracket tend to be on the market much longer.

The obvious reason is there just aren’t nearly as many buyers in your price range, especially compared to the high-demand $300,000 to $600,000 range. This segment has made up about 56 per cent of sales in the GTA so far this year. Homes in the $1,000,000 to $1,500,000 range? Only 4 per cent of sales.

That’s the easy answer – but there may be more complex matters at work in your case.

You mentioned that you’ve put a lot of money into renovations. Is it possible you may have “over-renovated”?

Believe it or not, you really can have too much of a good thing. While less common in your price range, going overboard with renovations that exceed the norm of similar homes in the area can be a real problem. If you’ve undertaken truly radical, unique or personalized renovations, it can make your home a lot harder to sell.

We tend to put more value on our own homes because we know the money and effort we’ve put into improvements and upkeep, and sometimes even more importantly the memories we’ve built in our own homes. Memories have infinite value - but only to you.

Hopefully you can take a step back and get sound advice about how well your home has been priced. How does it compare with similar homes in your neighbourhood? How long did it take for them to sell? These are just a couple questions that will help uncover whether you’ve put the right price on your home.

It isn’t time to push the panic button yet in your case. You mentioned that you are getting some interest, which is a good thing. If showing requests of your home start to decline over the next month, you may want to speak to your realtor to revisit your marketing strategy.

For a quick and Free over-the-net Home evaluation click here.

(Source: Globe and Mail)

Tax auditors target condo sellers in hunt for ‘flippers’

A Toronto tax lawyer is warning realtors — and people who’ve bought and sold new condos over the past seven years — that they could become unwitting victims of what he calls “abusive audit practices” by the Canada Revenue Agency.

Tax auditors have been targeting the once red-hot Toronto and Vancouver real estate markets, looking primarily for people who bought condos before they were built, intending to flip them for a profit as soon as the project is complete...

Click here to read full article.

Source: Toronto Star 

WHO OWNS WHAT: PARTS OF A CONDOMINIUM (UNITS AND COMMON ELEMENTS)

    It is generally understood that a condominium purchaser will own his or her unit. But what comprises the unit and who owns the rest of condominium and buildings? The basic concepts are simple: the property is divided into units and common elements; everything which is not a unit is part of the common elements. The boundaries of the units are detailed in both the declaration and the description registered at the time the condominium is created.

   Common elements are not owned by the condominium corporation, as some believe, but by all of the unit owners. The word "condominium" comes from the Latin and means to have control (dominion) jointly with (con) one or more other persons. The declaration contains a schedule listing the percentage of the common elements attached to each unit, the total being 100 percent. The owner of a unit will also own a percentage of all of the common elements.

   A schedule to the declaration will describe the unit boundaries. Typically, for a high-rise condominium, the boundaries of the unit are the unfinished surfaces of the floor and ceiling slabs and the back side surfaces of the drywall for outside walls and the centre of the area between the walls separating the unit from other portions of the building. The unit consists primarily of the space within those boundaries. Interior partitions and doors, cabinets, interior staircases and any other components within the unit boundaries will be part of the unit unless excluded by the declaration or by a standard unit by-law or schedule.

   Usually, wiring, conduits, ducts and other such items located within the unit boundaries and which service more than one unit are excluded from the description of the unit and, therefore, are part of the common elements. Windows and entrance doors in high-rise condominiums are almost always common elements.

   A balcony is not usually within the description of the unit to which it is appended and , therefore, is part of the common elements. However, while all of the unit owners will share ownership of each balcony, the declaration will almost always provide that a unit owner has exclusive use of the balcony attached to his or her unit. The same may be true of parking spaces and storage lockers. The declaration will contain a schedule identifying the balconies, parking spaces or lockers to be used exclusively by the owners of the various units. In newer buildings each parking space or locker is usually not part of the common elements but is a separate unit. In that situation a purchaser of a residential unit could also purchase and own one or more parking or locker units.

 (Source: Canadian Condominium Institute)

Katia Melnikova

WHAT IS A CONDOMINIUM?

"Condominium"  is a legal framework for the subdivision and ownership of real property (including buildings).

A condominium is not a thing: it is legal concept that permits the subdivision and title separation of:

1. land and buildings; and
2. the areas within the buildings.

Any real property can made subject to condominium provided the person registering condominium (called the "declarant") either owns the land on which the condominium is proposed or has leasehold interest in such lands.

The nature of the declarant's holding either freehold or leasehold determines whether the condominium created on the land will be freehold or leasehold.

                                       (Source: Canadian Condominium Institute)

Katia Melnikova

Real Estate Blog by Katia Melnikova: 27 Quick & Easy Fix Ups to Sell Your Home Fast and...

Real Estate Blog by Katia Melnikova: 27 Quick & Easy Fix Ups to Sell Your Home Fast and...: 27 Quick & Easy Fix Ups to Sell Your Home Fast and for Top Dollar Get FREE Instant Access Because your home may well be your larg...

27 Quick & Easy Fix Ups to Sell Your Home Fast and for Top Dollar

Get FREE Instant Access

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. And once you have made that decision, you'll want to sell your home for the highest price in the shortest time possible without compromising your sanity. Before you place your home on the market, here's a way to help you to be as prepared as possible.

To assist homesellers, a new industry report has just been released called "27 Valuable Tips That You Should Know to Get Your Home Sold Fast and for Top Dollar." It tackles the important issues you need to know to make your home competitive in today's tough, aggressive marketplace.

Through these 27 tips, you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.

In this report you'll discover how to avoid financial disappointment or worse, a financial disaster when selling your home. Using a common-sense approach, you get the straight facts about what can make or break the sale of your home.

Order your free report NOW, you owe it to yourself to learn how these important tips will give you the competitive edge to get your home sold fast and for the most amount of money.

Get FREE Instant Access click here

Katia Melnikova

Not About Real Estate - Embrace All Equally!

Twinkies and Root Beer

A little boy wanted t meet God. He knew it was a long trip to where God lived, so he packed his suitcase with Twinkies and a six-pack of Root Beer and he started his journey. 

When he had gone about three blocks, he met an elderly man. The man was sitting in the park just feeding some pigeons.

The boy sat down next to him and opened his suitcase. He was about to take a drink from his root beer when he noticed that the man looked hungry, so he offered him a Twinkie.

The man gratefully accepted it and smiled at boy. His smile was so pleasant that the boy wanted to see it again, so he offered him a root beer. 

Again the man smiled at him. The boy was delighted! They sat there all afternoon eating and smiling, but they never said a word. 

As it grew dark, the boy realized how tired he was and he got up to leave, but before he had gone more than a few steps, he turned around, ran back to the man, and gave him a hug. The man gave him his biggest smile ever.

When the boy opened the door to his own house a short time later, his mother was surprised by the look of joy on his face, She asked him, 

"What did you do today that made you so happy?"

"He replied, "I had lunch with God." But before mother could respond, he added, "You know what? God's got the most beautiful smile I've ever seen!"

Meanwhile, the elderly man, also radiant with joy, returned to his home. His son was stunned by the look of peace on his face and he asked,

"Dad, what did you do today that made you so happy?"

He replied, "I ate Twinkies in the park with God." However, before his son responded, he added, "You know, he's much younger than I expected"

Too often we underestimate the power of touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. People come to our lives for a reason, a season, or a lifetime.

Embrace all equally!

(Unknown Author)

Katia Melnikova

BUYING OR RENOVATING? IN SEARCH OF KITCHEN APPLIANCES?

I have been conducting an Open House this past weekend at a luxury, custom built home at 418 Elm Road in prestige Cricket Club neighbourhood. And a guest walked in inquiring: "What kind of appliances brand is Thermador?"

We all know Maile, Bosch, GE, Siemens, with different features and models. So I decided to dig for for more than "just another type of appliances" answer! And here is what I've found:

"the luxury appliance brand that pioneered the world’s first wall ovens and gas cooktops for the North American kitchen, introduces its latest kitchen advancement that will again enable the culinary enthusiast to cook beyond convention"

Are you thinking about renovating or upgrading your kitchen and stalk with selecting kitchen appliances?

Click here to read about Thermador.

Katia Melnikova

CLOSING AND RELATED COSTS

Closing costs are the legal, administrative and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.

How much land transfer tax will you have to pay?

The land transfer tax is a one time tax levied by your province when you purchase a property. The tax is based on a percentage of the purchase price of the property, and varies from province to province. Some municipalities also charge a land transfer tax (for example Toronto)

Have you budgeted for the associated legal costs?

Legal costs cover your lawyer's fees or in Quebec, your notary's fees. These may include:

• Reviewing the terms of the offer
• Conducting a title search on the property 
• Registering a new title
• Obtaining relevant documents, such as surveys and evidence of liens on the property
• Checking the statement of adjustments for taxes, utility and fuel bills, and other costs that have been pre-paid by the seller at the date of closing

Do you have a home inspection?

A home inspector assesses a property's condition and can tell you if something is not working properly, needs to be changed, or is unsafe. They may be able to identify where there have been problems in the past, such as a leaking basement or termite damage.

What other costs can you expect?

• Interest adjustments between date of closing and first mortgage payment
• GST/HST on a new home or a home that's been extensively renovated
• Service charges from utility companies for hook-ups on electricity, gas, internet and telephone services
• Appraisal fees 
• Moving costs
• Packing and cleaning costs
• Storage costs if you must leave your current residence before you are able to move into you new home 
• Furniture and appliances
• Real estate commissions

Katia Melnikova

(Source: Homebuyers' road map)

MAKING AN OFFER

After seeing many different homes, you have finally found one worthy an offer! What are the next steps?

What is an offer?

An offer is a formal, legal agreement to purchase a home and is legally binding once accepted by the seller. Offers to purchase a home can be made conditional on factors such as financing or a home inspection. If any of the conditions are not met, you can change or cancel the offer, even if the seller already accepted it.

Do you have money ready?

You will need to present a deposit along with your offer. The amount varies based on the home's purchase price and the market.

Do you have up-to-date identification?

The federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requires REALTORS to identify clients involved in the buying and selling real estate. REALTORS need to record your name,  address, date of birth and occupation for their files which are kept for at least five years. They need to see valid government-issued ID.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) provides more information about the Act on its website: www.fintrac-canfe.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

RESEARCH GOVERNMENT PROGRAMS

The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.

Research Government Programs

First-Time Home Buyers' Tax Credit - a $5,000 non-refundable income tax credit on a qualifying home. The credit provides up to $750 in tax relief to assist first-time buyers with purchase costs. For more information, check the Canada Revenue Agency's (CRA):
www.cra-arc.gc.ca

Home Buyers' Plan - a one-time withdrawal up to $25,000 from a Registered Retirement Savings Plan (RRSP) by the first time home buyers to help purchase or build a home. Generally, you have to repay all withdrawals from your RRSP within 15 years. For more details, visit CRA's website at:
www.cra-arc.gc.ca

CMHC Green Home program - when you use CMHC - insured financing to buy or build an energy-saving renovations, you may qualify for a premium refund of 10% on your mortgage default insurance and a premium refund for a longer amortization period (if applicable). Check out CMHC's website for more information:
www.cmhc.ca

Government programs can change over time For the most up-to-date information, refer to Service Canada's website:
www.servicecanada.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

MORTGAGE DEFAULT INSURANCE

When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.

Mortgage Default Insurance

Are you planning to purchase property with less than a 20% down payment?

If yes, you require mortgage default insurance which generally adds 0.5% to 3% to the cost of the mortgage depending on the total amount borrowed.

Mortgage default insurance enables you to purchase a home with a minimum down payment of 5% (10% for multi-unit dwellings) with interest rates comparable to those of a conventional mortgage.

Major providers of mortgage default insurance include Canada Mortgage and Housing Corporation (CMHC), Genworth Financial Canada, and Canada Guaranty Mortgage Insurance Company.

(Source: Homebuyers' Road Map)

CONSIDER MORTGAGE OPTIONS

A mortgage is a loan, generally used to buy a property. How much you pay depends on how much you borrow (the principal), the loan's interest rate, and how long you take to it back (the amortization period).

Do not be afraid to negotiate interest rates and mortgage terms with different lenders. They are offering you a product and talking to more than one lender helps you to make an informed decision.

What type of mortgage is best for you?

• Fixed rate mortgages: Your interest rate is locked in for a specific period called a term. Your payments stay the same for the mortgage's term so you will not pay more if interest rates increase over time.

• Variable rate mortgages: Rate of interest you pay may change if rates go up or down.

• Conventional mortgages: Require a down payment of more than 20% of the property's value. You are not required to get mortgage mortgage default insurance with a conventional mortgage.

• Closed mortgages: The mortgage cannot be paid off early without paying a prepayment charge.

• Open mortgages: A mortgage that can be paid off at any time during the term, without having to pay charge. Ther interest rate for an open mortgage may be higher than for a closed mortgage with the same term. 

What mortgage features are best for you?

• Portable mortgages: If you sell your existing home, you can transfer your mortgage to you new home while keeping your existing interest rate. You may be able to avoid prepayment charges by porting your mortgage.

• Prepayment privileges: You can make lump-sum prepayments or increase your monthly payments without having to pay a charge. This can help you pay off your mortgage quicker and save on interest charges.

How often can you make your payments?

• By switching from monthly payments t accelerated weekly or biweekly payments, you can pay off your mortgage faster. Explore your options for mortgage payments and see how much interest you could save by using FCAC's Mortgage  Calculator Tool at: Mortgage Calculator Tool

Katia Melnikova


(Source: Homebuyers' Road Map)

ASSESS FINANSIAL READINESS

Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.

What do lenders require?

Mortgage lenders use two calculations to help determine your eligibility for a mortgage - your Gross Debt Service (GDS) ratio and your Total Debt Service (TDS) ratio.

Your GDS ratio is the percentage of your gross monthly income used for mortgage payments, taxes and heating costs or - if you are buying a condominium - half of the monthly maintenance fees. As a general rule of thumb, you GDS ratio should not be more than 32% of your gross monthly income.

Your TDS ratio is the percentage of gross monthly income required to cover monthly housing costs, plus all your other debt payments, such as car loans or leases, credit card payments, lines of credit payments and any other debt. Generally, your TDS ratio should not be more than 40% of your gross monthly income.

Have you been pre-approved?

Getting pre-approved for a mortgage before looking at properties gives you a more realistic expectation of what you can afford. However, keep in mind that the pre-approved amounts can overestimate what you can actually afford to pay.
Click here for mortgage calculator.

Pre-approval does not guarantee you will be approved once you actually apply apply if market conditions, interest rates, or your personal circumstances change.

Do you know your credit rating?

Order a copy of your credit report to make sure it does not contain any errors because lenders will check it before approving you for a mortgage. A credit report is a summary of your financial history and shows whether or not you have had any problems in the past paying off debts.

The Financial Consumer Agency of Canada (FCAC), a federal government agency, has tips on how to order your credit report for free and how to improve your credit rating.
Visit FCAC's website at:
www.itpaystoknow.gc.ca

Katia Melnikova

(Source: Homebuyers' Road Map)

FINDING A HOME

Finding your perfect home can be a long process. Your REALTOR will help identify the right type of home for you and continually research new listings in neighbourhoods that meet your needs.

Where do you want to live?

• Urban, suburban or country?
• Will you need to commute? Do you need access to public transit? How much will commuting cost?
• Are there schools nearby? How will your children get there?

What type of home do you prefer?

• Single-family detached homes stand alone on their own lot.
• Single-family semi-detached homes are joined on one side to another home.
• Duplex contain two single-family homes, one above the other.
• Row houses (townhouses) are several single-family units, located next to one another and joined by common homes. 
• Other types of homes include stacked townhouses, link or carriage homes, condominiums and co-op apartments.

What are the types of ownership?

Freehold

You own the land and the house and are responsible for everything inside and outside of the home.

Condominium ownership

You own your unit and share ownership of common spaces. The condominium association is responsible for upkeep of the building and common interior elements, such as halls, elevators, parking garages and the grounds. You pay a monthly fee to the condominium association to cover maintenance costs. The fee varies but can often include utilities, TV services and taxes. You may also have to buy or rent your parking space.

Condos often have strict rules regarding noise, use of common areas and renovations to units. Be aware of your condo's rules before putting in an offer. 

Co-operatives

Similar to condos but instead of owning your unit, you own shares in the entire building or complex with other residents. Co-op residents pay for maintenance and repairs through monthly fees and  are subject to the rules and regulations of the co-op board.

Be aware that if you decide to sell or rent your shares, the co-op board has the right to reject your prospective buyer or tenant. Reading the co-op's rules before making an offer is a prudent practice.

Check out my website www.BedfordParkHomes.com to receive various tips on purchsing or selling real estate.

   (Source: Homebuyers' Road Map)                                                                                                                                                                                                               

                                                                                                                                                                                           

Join TREB’s New Campaign to Repeal the Toronto Land Transfer Tax

Campaign to Repeal the Toronto Land Transfer Tax

On June 5th, 2012 Toronto Real Estate Board has launched a renewed campaign to achieve the repeal of the Toronto Land Transfer Tax. 

Your participation in the campaign is very crucial and will make a difference! 

Please visit this site for information why and how you can help:    www.LetsGetThisRightToronto.ca.

Katia Melnikova

NAVIGATING WITH REALTOR

                                                 Navigating With A REALTOR


The home buying process can be fun and great experience when you choose to work with a Real Estate professional.
So what is that the licensed Real Estate professional can help you with:

• Navigate the home buying process and paperwork from start to finish, ensuring everything flows smoothly without any surprises

• Find the right home, in the neighbourhood you want, at a price you can afford.

• Compare your property with similar properties that have sold over the past year.

• Get a feel for the neighbourhood including schools, parks and other amenities.

•  Find out if you are eligible for government homeownership incentive programs.

•  Assess mortgage products and different types of lenders to see what fits your needs.

•  Negotiate purchase price and contract terms, such as date of possession, required repairs, included furnishings or equipment.

•  Direct you through complex contracts.

•  Find qualified industry professionals such real estate lawyers, home appraisers and home inspectors.

• Plan for closing costs and other related expenses.

     Click here for more information.

(Source: Homebuyers' Road Map)

TREB Market Watch - June 2013