22June2011
Posted by Ryan Coffey under: Uncategorized.
Developers and construction workers in Nanaimo and across the province hope that new housing sales will pick up once the fate of the Harmonized Sales Tax is decided.
Home construction in Nanaimo is down more than 30% from this time last year, according to data from the Canadian Mortgage and Housing Corporation, and builders maintain a large part of the drop in the demand for new housing is related to uncertainty and confusion over the HST.
Nanaimo’s InSight Developments has recently decided to delay a number of planned housing projects in the city and mid-Island area due to the market slump. InSight president Doug Bromage said many people are afraid to make any decisions regarding buying real estate in Nanaimo until the fate of the tax is finally decided once all the ballots in the referendum are counted, expected in late July.
Byron Gallant, president of the mid-Vancouver Island chapter of the Canadian Homebuilders Association, agreed that a lot of potential home-buyers are “sitting on the fence” and waiting until the referendum is decided before making any major real estate decisions.
But Gallant said the whole issue could and should have been avoided if the government had properly explained the HST before it was put in place last July.
He said the government neglected to explain to buyers of new homes costing up to $525,000 that they are eligible to receive a rebate of 71% of the provincial portion of the HST, up to a maximum of $26,250
Parksville-Qualicum MLA Ron Cantelon acknowledged that the government did a “poor job” of explaining the implications of the HST, including its effects on the real estate market, when it was first introduced.
But Cantelon, who worked as a real estate agent for more than three decades, said the “cyclical nature” of the real estate business, and the economic downturn over the last few years is also playing a part in the industry’s current malaise.
“I was among the many who was angered when the HST was first implemented because I didn’t fully understand it and I thought it would likely hurt the construction industry,” Gallant said.
“But, with the rebate, it causes a trickle-down effect that works itself out for most buyers. It’s unfortunate that all aspects of the HST and what it means to consumers was never properly explained at the time.”
The CMHC reported 142 housing starts in Nanaimo this year, from January to the end of March, down from 215 over the same period last year.
Gallant said many commercial builders in Nanaimo are also “putting the brakes” on moving forward with a number of projects until the HST referendum is decided.
rbarron@nanaimodailynews.com
15June2011
Posted by Ryan Coffey under: Financial; Uncategorized.
Here is an article I found in Canada Realty News. Although the concepts are quite simple, I do meet a lot new clients who are still locked in the notion that a mortgage has to come from a bank. This article does a little to explain that there are other options.
Ryan Coffey
Mortgage Brokers vs. Banks
Do you know that over 30% of Canadians now source their home loans through a mortgage broker. Why? Because it can save time and possibly money.
A mortgage broker act as an intermediary between lenders and customers who are looking to finance their home. One visit to a reputable mortgage broker will make the process much easier and could save you thousands of dollars. They look after you through the entire home loan process by providing information and documentation advice, sourcing suitable home loan choices, an
d submitting applications.
Brokers have access to information for all kinds of loans from banks. They don’t work for the bank and can give you the most cost-saving deal that they can find in the market. Brokers are expected to be transparent and take care of your best interests.
Here are a few advantages of using a professional mortgage broker:
Access to a wider range of products
A mortgage broker has relationships with several financial institutions that are competing to get your mortgage business. These institutions continuously compete with rate, product and service promotions, hoping to win your business. Working with a mortgage broker will provide you with access to some of the best deals and most innovative mortgage products you can obtain on the mortgage market.
Help you get the best deal possible
Mortgage brokers shop the market for the best mortgage rate for you. They usually have access to so-called “wholesale” mortgage rates, which are significantly lower than the posted rates offered by the banks. In most cases, your mortgage broker has the ability to find the best rate on the market and still place your mortgage with the lender or bank of your choice.
Fewer complications
The many forms and other data that are required for a loan application can be quite complicated, A seasoned mortgage professional will have years of experience that will help him or her navigate the tricky loan application and avoid complications for you.
Save you time
The most valuable of all commodities, a broker can save you time and has the experience to make sure you get the best package for your individual needs.
Mortgage broker services are free
Mortgage brokers are usually paid for by the lending institution where the mortgage is placed through a so-called “finder’s fee”. In other words, mortgage broker services are free to you. There are cases, however, where institutions do not pay a finder’s fee to the broker, in which case the broker will charge the client directly.
7June2011
Posted by Ryan Coffey under: Nanaimo Profile and Events; Uncategorized.
Nanaimo city council moved ahead with its plan to negotiate a deal with B.C. Hydro to sell energy created from the city’s new No. 1 reservoir power generator.
The new reservoir is a component of the city’s plans for a $65-million water-treatment plant. The power generation could produce up to $175,000 in annual revenue. Power generation will come from the 14-million-litre reservoir to be built at the west corner of the Colliery Dam Park next to Nanaimo Lakes Road and the Nanaimo Parkway.
New regulations for drinking water were introduced by the Vancouver Island Health Authority, forcing the city to bump up plans for a new treatment facility. The new reservoir will cost an additional $7.5 million.
A hydro generator will cost $670,000 to install, but 900 kilowatt hours created per year will generate about $190,000. Minus the $15,000 in annual operational costs, the city could pay recoup the cost in four years.
Detailed design plans could be ready in about a year, but Nanaimo’s water resources manager expects construction to start early in 2013. The plant should be fully operational in 2015.
31May2011
Posted by Ryan Coffey under: Just For Fun; Uncategorized.
If you’ve been coming here a little while you’ll know that I periodically put up a bit of real estate related humour. The following is from my favourite web comic, xkcd. This reminded me of DIY when I saw it.
So to quote the Python boys “And now… for something completely different…”
Ryan Coffey
25May2011
Posted by Ryan Coffey under: Buying; Financial; Home owner tips; Uncategorized.
Here is something I found in The Globe and Mail. I thought it was well written and worth sharing. It pretty much echoes much of what I have previously talked about on this blog, but it covers a wide variety of things in one article. It’s a bit longer than what I usually post here, but it’s the sort of info that has the potential to make a huge positive impact in your life. The original post is here.
Ryan Coffey
By Rachel Mendleson
Special to Globe and Mail Update
In this excerpt from the MoneySense Guide to Buying and Selling Your Home [http://moneysense.ca/myhouse], a book in the “Best of MoneySense” series, writer Rachel Mendleson cuts through the jargon and explains how to find the mortgage that’s right for you.
Lauren Chender likes to shop around. So when she and her husband were trying to figure out what kind of mortgage to get on their first home, she took to the Internet and began comparing the interest rates posted on various bank websites. But as the Toronto resident did more research, she discovered that it might be possible to get even lower rates through an independent mortgage broker, or by speaking with a financial institution’s mortgage department directly. Even when she found a good rate, she discovered that the tough decisions just kept coming. Should she go with a variable or fixed rate? What about the amortization period? “It’s overwhelming,” says Chender, who wound up using a broker to secure the mortgage on her semi-detached Victorian. “There was a lot to know.”
Chender is hardly alone. Despite the fact that how you finance your home will have a significant impact on everything from what you can afford to how long you’ll be in debt, the complexity of mortgages can make it difficult to arrive at an informed decision. But by understanding what’s at stake, you can cut through the jargon and weigh the options to find a mortgage that’s right for you.
Perhaps the most important thing to consider when thinking about how to finance your home is what taking out a mortgage really means. As Rob McLister, editor of Canadian Mortgage Trends, explains, “Mortgages are definitely among the cheapest money you can borrow, simply because they are secured by quality assets.” But they are also a tremendous responsibility, and something that can greatly increase what you end up paying for your home. While an interest rate of 4 per cent on a $200,000 loan may not seem like a lot today, that changes dramatically when you consider that repayment will likely be spread over decades.
With that in mind, the first step to choosing the right mortgage is identifying the lender whose terms work best for you. While prospective home buyers often begin with their financial institution, your search shouldn’t stop there. As Sarah Daniels, a Vancouver-area realtor, points out, “The lenders are in competition for you.” She advises using a mortgage broker, who will “shop you around” to all the lenders, free of charge. (Mortgage brokers are paid a finder’s fee by the lender. There’s no charge to the home buyer for a pre-approval and no obligation.) And whether you opt for a broker or not, a second opinion never hurts. “It always helps to get one or two other quotes to keep everyone honest,” says McLister.
It’s a good idea to get pre-approved for a mortgage before you start house hunting. That way, you can get a sense of your budget, and avoid falling in love with a property you can’t afford. To give you a pre-approval, lenders factor in your income, type of job and credit history. They also take into account how much you have to put toward a down payment, and any other debts you may have. The amount you are pre-approved for is the upper limit of what the lender will allow you to borrow. Add that to your down payment, and you’ve got the total amount you have to put toward a home. If you have bad credit, are self-employed or want to borrow more than what a bank or credit union will approve, you may want to consider using an alternative lender. But while second- or third-tier lenders (examples include Equitable Trust and Aaron Acceptance Corp.) have looser requirements, the mortgages they issue come with higher interest rates (sometimes much higher), so they are not generally recommended for first-time buyers.
The specifics of the mortgage you select will depend on what makes the most financial sense, as well as your personal preference. One important decision is whether to go with a fixed rate of interest, which is locked in for the entire term of the mortgage (usually five years), or a variable rate, which can change depending on market forces. In today’s low interest rate environment, “variable rates are initially cheaper upfront,” says McLister. The risk is that they could rise far above the fixed rate later in the term, increasing your monthly payments. You’ll also have to set the amortization period, which is the theoretical length of time you have to pay off your mortgage in full, assuming you never move. Bear in mind that while a longer amortization (as of March 2011, the maximum for an insured mortgage in Canada is 30 years) may give you a bigger mortgage or lower monthly payments, it’ll also mean paying more interest in the long run. If you want the flexibility to make additional lump-sum payments outside of your scheduled monthly (or bimonthly) payments, this must be stipulated in your mortgage. And beware that if you break your mortgage before the term is up, you’ll have to pay a penalty-usually three months’ interest for variable-rate mortgages, more for fixed-rate mortgages. (This doesn’t apply for open mortgages, which are mainly for homeowners who plan to sell within a few months.) Mortgage insurance is one of the extra costs to buying a home that can be easy to overlook. But if you are putting less than 20 per cent down, your lender will require that you purchase an insurance policy to protect them in case you don’t hold up your end of the deal. Calculated on a percentage of the total mortgage, your insurance premium will depend on how well qualified a borrower you are, and can amount to thousands of dollars. As Daniels observes in her book, for a $450,000 mortgage, even the most qualified borrower who gets the lowest rate (which she sets at 1.5 per cent) would be on the hook for an additional $6,750 in insurance.
If you’re lucky, your family may offer to help with financing. But it’s important to understand how the contribution factors in. A family gift is considered a traditional source of down payment, which is ideal. It will increase the size of the mortgage you can get or allow you to pay for a greater proportion of your home up front. But if the family help is a loan, your down payment is considered to be non-traditional, which, if you’re putting down less than 20 per cent, will result in slightly higher insurance premiums.
When your mortgage is up for renewal, it may be tempting to simply sign on the dotted line, and accept whatever package your lender offers you. However, not shopping around can cost you. “The bank relies on people just to sign the renewal agreement at posted rates. As soon as you do that, you’ve lost thousands of dollars by not negotiating,” advises Vancouver mortgage broker Alma Pasic. Don’t be surprised if you need a refresher course. “It’s like you’re doing it for the first time, because everything has changed,” she says. “It’s hard to keep up-even for us.” RACHEL MENDLESON Sidebar: Cost Cutter If you can live with the uncertainty, a variable-rate mortgage has historically saved home buyers money over a term of five years or more. A 2008 study led by Moshe Milevsky, a professor at York University’s Schulich School of Business, found that variable rates would have saved Canadian borrowers money on a five-year term more than 77 per cent of the time between 1950 and 2007, and chopped a year off the amortization period. By taking on a more predictable, fixed-rate mortgage, you are offloading risk to the lender, and that comes at a price. You might sleep easier, though.
Excerpted from MoneySense Guide to Buying and Selling Your Home (Rogers Publishing Limited, $9.95). The book is available at bookstores and newsstands or online at http://moneysense.ca/myhouse
19May2011
Posted by Ryan Coffey under: Home owner tips; Selling; Uncategorized.
| Here is something I got form Canada Realty News. I thought it was info that many people would find useful so I am reposting it here. Visit their website at www.canadarealtynews.com
Ryan Coffey |
 Renovating your home will increase its value and make it a nicer place for you to live. But many people don’t have the money to spend on expensive housing upgrades. Here is a few budget-friendly projects to add beauty, value and selling appeal to your home.
1.Give your kitchen a facelift
The kitchen is the heart of any home, so spend a few hundred dollars to spice it up. You can replace the kitchen faucet set, add new cabinet door handles, and update old lighting fixtures. If you have a dark or small kitchen, make it look larger and brighter by using a lighter finish on the cabinets.
If the kitchen countertop is outdated, consider using a Laminate countertop. They are inexpensive and come in all types of colours and patterns, some of which resemble much more expensive solid surface materials, such as stone or tile.
2. Liven up the bathroom
Buy “expensive-looking” hardware for taps and showers and get a sophisticated new look without cleaning out your wallet. Like in the kitchen, soft lighting and warm colours here can go a long way in increasing home value. Add vases and plants as design elements and make sure vanity mirrors are at an accessible height for every member of the family.
If your bathroom requires any plumbing or electrical fixing, get a professional to do it.
3. Add a fresh coat of paint
New paint makes everything look clean and bright, and you can do it yourself relatively inexpensively on interior walls.
Paint with a neutral colour such as beige. It will make the house seem larger, and it will be inoffensive to buyers. And don’t forget the ceiling. Paint the trim a contrasting colour.
4. Add wood trim and cornicing
These are cheap and easy do it yourself, but can add tons of “WOW” factor to the look of your home. Simple ceiling trim and armchair railing are the easiest and most typical upgrades found in newer homes.
To make an even bolder statement, paint the walls a neutral, flat colour and paint the trim a high gloss white.
5. Consider your flooring options
If your home has hardwood floors covered with carpeting, consider restoring the original hardwood floors, particularly if the carpeting is old and worn.
If not, you can shampoo or steam clean your carpets, or use a dry cleaning system, which requires no water or steamer, and dries instantly while killing virtually all mold and bacteria. Apply according to the manufacturer?s instructions, and then vacuum. If all else fails, get a professional to do the carpets for you. You’d be surprised how much better your carpet will look after a good cleaning.
6. Enhance the lighting
Consider replacing the dining room lights with an eye-catching chandelier. Create a comfortable ambience with recessed lighting that is controlled with dimmer switches to provide the appropriate amount of light for different activities.
Use indirect lighting focused away from television and computer screens to reduce eyestrain.
7. Install modern light switches and outlets
Some of the new style switches can be easily installed using the wires already running to the old switches. Turn off the power to the room or entire house before doing any work. The new outlets look nice, and give the impression that the electrical wiring in the house is newer than it really is.
8. Create more storage
Extra storage is always a plus. You don’t need to renovate to add more storage space, you can create more space for free and without remodelling your home! Revamping your existing closets can do the job.
Many old houses lack closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms.
Make your closets serve a variety of purposes. Try adding a shelving unit to a clothes closet where you can store pantry goods and other items.
9. Reframe your front entry
The front door is the statement that you make in your house, and a front door in need of work gives a wrong first impression.
Refinish the front door with a new coat of paint. Replace that worn, flimsy little knob on your main entry door with a more substantial-looking handle-and-lock set. A nice, big piece of hardware signals newcomers that this is a solid home.
While you are preparing the door for the finish coat, be sure to check the weather stripping for damage. With soaring energy costs, adding some new weather stripping can quickly pay you back in utility savings.
Placing planters on either side of the front door will also enhance the image of your entry.
10. Landscape the front yard
A nicely mowed lawn, a few well-placed shrubs and a swept walkway make a great first impression. Get your green thumb on, install some new sod, plant a few evergreen shrubs, and give your front yard a good cleanup. This will draw attention to your home and change people’s perception of your home.
Today, there are dozens of choices of plant materials that can add colour and style to your front yard. Stop by your local landscaping centre, they’ll have dozens of ideas for you.
Ready to renovate but on a tight budget? Spend money on what can be seen versus what can’t be seen. Think new door handles, not new doors, and spiffed-up appliance fronts, not new appliances. Fix up the exterior first, then the interior.
If you put some of these tips in action, you will boost your home’s value and live happily ever after in your dream home. Enjoy! |
27April2011
Posted by Ryan Coffey under: Uncategorized.
Strata is a kind of ownership of a property where the unit (i.e. condo or townhome) is owned exclusively but within the context of common (shared) property. This contrasts with the freehold ownership someone will have when buying a typical house.
In the case of a typcial condo, the interior of the unit is privately owned and maintained by the owner but the hallyways and exterior of the building are maintaing by the strata corporation. That is, the entity that exists to manage and maintain the complex. In almost all cases a monthly strata fee to pay for all of these things will be required. What those fees actually pay for will vary from strata to strata.
In practice, this means that as an owner you will have to share the decision making process of the common property with the other owners in the complex. It also means that you will have much of the property’s maintenance handled for you.
Ryan Coffey
21April2011
Posted by Ryan Coffey under: Nanaimo Profile and Events; Nanaimo Real Estate Market; Uncategorized.
Yes, that’s right. This means a big change for Realtors and especially anyone who is interested in doing any kind of development, building or major changes to their existing property. Keep in mind that the City of Nanaimo controls what is within city limits and not all of what we commonly refer to as Nanaimo. That is, not most of Cedar, Chase River, much of Jingle Pot or Lantzville. Those fall under the Regional District of Nanaimo.
If you’re not sure if the changes mentioned below apply to your location, check out the city map or better yet, give them a call at the contact info provided in the .pdf file below.
MAY Media Release 2011 Open House
Ryan Coffey
14April2011
Posted by Ryan Coffey under: Buying; Uncategorized.
I wrote a post with this title three years ago and have found it to be so useful for so many people that I have since started printing it out and handing it to my buyers. The basic principles outlined have not changed, but I feel it is time to revive this info from the archives by rewriting it and reposting it.
Being someone whose profession keeps them continually immersed in the world of real estate, it’s sometimes easy for me to forget that it’s a mysterious world for most people. People often feel exposed if not vulnerable when they consider entering it. This is of course why there are so many Realtors in the world. Despite what those “sell it yourself” websites and systems tell you, the fact that Realtors are still here in large numbers tells you that it’s not something that’s as easy as they claim. This post is for anyone who is thinking of buying real estate in B.C. If you’re from abroad, then there is more to this, so to start, I recommend reading this post and having a browse through my section on “Buying As a Non Canadian“.
Now, it doesn’t have to be intimidating. I’m going to outline the process for you so that you’ll have an idea of what to expect when you choose me as your Realtor. (Ok, that was a little tongue in cheek, but you can’t blame a guy for trying.) You can also get a deeper understanding of all of this by joining my mailing list by entering your email address on the right.
There are simply too many variables and possibilities for me to do this comprehensively, and too much info for me to write in a readable fashion. Keep in mind that this is intended as an outline, much like the table of contents of a book or an article in wikipedia. Plus as they say in commercials “actual experience may vary” which roughly translated comes out as “it doesn’t always go this way, but this is a typical experience”.
So here it is, the basic stages of buying a property in B.C.
1. Talk to a mortgage broker and get pre-approved.
I say this to people so much, and for good reason. It really should be the first thing you do. Going to talk to a mortgage broker and finding out how much you can borrow before looking at houses makes a lot of sense. I always explain this to my clients as “it makes sense to look in your wallet before you go shopping”. Then, you’ll want to decide how much you want budget on payments per month. A mortgage calculator is handy as a guideline for this. I do recommend going to a mortgage broker rather than a bank, as they tend to give better, more customized packages than banks and more quickly too. One of the reasons for this that mortgage brokers don’t get a regular paycheck, they only get paid for the deals they put together. And it doesn’t cost you anything to use their services, in essence they get paid by the lenders even though they’re working for you. Ask them for more info on this if you’re curious.
2. Come speak to a Realtor. (That’s me.)
Now that you have an idea of what you’re able to afford, it’s time to find out what’s out there. By the time you’ve found this blog or spoken to a mortgage broker, you’ve probably already spent hours upon hours looking at listings online at realtor.ca/mls.ca and various websites where Realtors show their goods. This isn’t a bad way to do things, but it is very inefficient and until you speak to a Realtor you’re probably not getting the best search results despite all the time you’re putting into it.
I can’t speak for other Realtors, but here’s basically how I usually do things. I’ll sit with you and listen to what your wants and needs are. Then, I’ll start to introduce you to the possibilities of what is out there and throw various ideas at you to help you explore your options. Depending on where you’re moving from, you may be be expecting more for your money or you may feel like you’ve suddenly become rich. I’ll try to find out what is most important to you and combined with various factors, I’ll help you find properties that are the best fit by using a variety of electronic resources, plus my knowledge/experience with the market, plus my connections plus my simply paying attention while I’m out there looking at properties every day.
This is the beginning of a process that requires continual communication between us. So stay in touch! This communication is important for a variety of factors that I won’t go into here, but one that I will mention is that things can and often do happen fast and I will need to be able to reach you quickly and easily. As you look at places, you will hone your expectations and tastes. I’ll need to know how these things are changing. My knowing how you feel and your listening to what I know will make this and every part of the process easier on all of us.
Once I know what you need and want I’ll give/send/show you a list of properties that you choose from that you’d like to view. This is a list which will change as some places sell and new ones come out, and prices on a couple of them change. I may also have some suggestions based on what I think you will like. Regardless, I’ll tell you not to put too much emphasis on the photos and comments in the listings. They are a form of ad after all. It’s when you go look at them that you find out what things are like.
3. Looking at properties.
We’ll have set up a time to meet and start to go out and actually look at places. We usually hop in my car, and then go look at places but we can go in separate cars too. This is the part where you find out that the properties often look quite different in person than they do in the listings, sometimes better, sometimes worse. Sometimes you find something that suits you right away and sometimes you have to look for a while. Sometimes you have to adjust your expectations and/or price range. Eventually, we should be able to find something that you enjoy.
Perhaps I should mention that I don’t double end properties as a policy. This is rare for Realtors, as it’s a method for making a lot more money, but I frown on the ethics of it. Read more about it here if interested. (It’s halfway down the page.)
4. Making an offer.
This is when people’s emotions start to rise. You’ve found a place you like and now you try to see if you can get it at a price and with terms that you find acceptable. The thing is, the seller has to find the offer acceptable too in order to progress to the next stage. Expect a couple of days of negotiating before you find out whether you have to go back to step two or three again or if you can continue to the next step.
If all goes well, the next thing is to write a cheque for the deposit which will be held in trust by my company. This will form part of the purchase price, but you’ll get it back if you have to collapse the deal legally. (The idea is that if you don’t collapse the deal legally, they keep the money. Something I’ve yet to see happen.)
5. Removing Subject Clauses
A lot of people (clients) put the bulk of their energy and focus into the negotiating part of the deal, but it’s actually not the most involved part of the process. Removing subjects is. Subject clauses are the parts of the contract where the sale of the property is “subject to” a variety of things that need to be done by a certain date before the contract can proceed to closing. The time period for this is usually less than two weeks after an offer is accepted. Depending on the type of property and the particularities of the sale, you will have different clauses to remove. But for the sake of example, let’s say you’re looking at a house and the situation is pretty basic/common, you and I will have to get the following done before the sale is finalized:
- Get the go ahead from your mortgage broker regarding financing
- Have the property inspected by a professional inspector to ensure that it is not in a condition that is substantially worse than it appears (It’s important to note that real estate in B.C. is sold “as is, where is” meaning, that there is no warranty.)
- Approve a Title Search
- Approve a Property Disclosure Statement
- Arrange fire insurance for the property
If we can satisfy all these criteria then you sign for the subject removal and then you’re done with me until you move in. The other professionals you use (i.e. Lawyer, Mortgager Broker) will still want to talk to you though.
THEN, you move in! I’ll meet you in front of the property in question on the happy day and hand you the keys. That’s when everyone jumps with joy, hugs me and promises to name their first born after me. Ok, I’m joking, but it is a happy day for all involved.
All these and many other measures exist to protect you, so don’t feel intimidated by the process. I’m here to help.
It’s one of those things that sounds harder than it is. Many of my clients get to the end of the buying process and say “What? That’s it? I just bought a house?!”. What they don’t know is all the goings on behind the scenes that made it easy for them to get to that point. That’s not a bad thing though, it just means things have been done properly and that things went smoothly.
Ryan Coffey
30March2011
Posted by Ryan Coffey under: Buying; Financial.
One of the first things I ask every buyer is “Are you pre approved?” I imagine that sometimes people think that I am being nosy about how much they can afford. In reality, I just want to know if they know what they can afford.
I don’t even ask what amount they’ve been approved for. All I need to know is that they can get a mortgage for the sort of place we’re looking at. The rest, as far as I’m concerned, it between them, their Mortgage Broker and the Lender who is supplying the funds. Ultimately, this all boils down to affordability for that buyer.
You see, if a buyer goes out and makes an offer on a place and then it turns out they can’t afford it they have wasted a lot of time, stress and probably some money (on things like inspections or perhaps trips to the town they are moving to) before finding out it was for nothing. This is why I ask this question so early on. It saves everyone a lot of headache.
Even if you don’t qualify for a mortgage on the kind of place you had in mind, that conversation with the mortgage broker is still a positive thing. Why? Because now you have a plan. You will know what you need to save in order to get what you had in mind, or better still, you will know what you can afford now. If you’re not in a postiion to afford anything yet, at least now you know what you need to do. All positive steps.
If you come to me with a modest budget, I’ll tell you what your options are. I’m a big believer in leveraging your assests to make your financial life down the road easier. I’ll throw some ideas at you which you may not have thought of on how to do that. That said, an awful lot of people prefer places that are move in ready and cozy over the money maker. Either way, once you’ve worked out your finances, I can tell you what your options are before honing in on a section of the market to take a close look at and choose from. Using market knowledge to get the Buyer the best fit for them is a big part of what us Realtors do.
And this is in short, how you build the framework of your plan with helps from professionals. It costs you nothing to get the plan together. It only costs you money to go through with it.
Ryan Coffey
I am not an accountant, nor do I claim to have deep knowledge of the effects of the HST on other industries. I am however a business owner as Realtors are a form of independent contractor. I do feel a pinch from the HST. In my business, we need to charge a hefty fee in order to survive. Not all Realtors work as hard as they should to make it worth it, but that is another post.
