Condo Buyer’s Checklist/Points to Consider When Buying A Condo

1. Know why you want a condo and if condo living is for you.
2. When you live in a condo, there are rules and regulations you have to live by. Ask yourself if
   you will be fine with these rules and regulations and giving up some freedom when compared to
   living in a house.
3. Condo living is associated with paying ongoing fees (maintenance fees). Make sure you
   understand how these fees work and if you will be paying these every month.
4. Is the location right for you? Is it close to those amenities that are important for you?
5. What types of facilities or amenities is the condo giving you? Is it too much or too little?   
   Beware of condos that offer too much. For example, there are some condos in Toronto with
   their own bus services to the station. However, I won’t live there because maintenance fees
   will be too high for the obvious reasons.
6. Does it come with a parking space and a locker or you need to pay for them additionally?
7. Are there any restrictions on occupants? Will you be able to rent out your unit?
8. How many pets are allowed?
9. Is the condominium price reasonable?
10. Are the monthly condo fees (maintenance fees) reasonable?
11. What the condo fees cover and what the fees don’t cover.
12. How old is the building?
13. Who is the builder and is this builder a reputable company or have they had bad records or  
     problems in the past?
14. Is the building in good shape and durable? Does it look attractive?
15. Does the building and surrounding area look clean, neat, and well maintained?
16. Is the condo corporation in good order and are there no legal claims or judgements?
17. How are the condo finances? It is well managed or is the condo board is wasting money?
18. What is the owner-occupied and renter-occupied units proportion?
19. Is the building energy efficient and is a functional fire protection system in place?
20. Will this purchase make you happy living in your unit so you don’t need to look for another condo after 6 months? How many years you are looking to stay in this building?

What To Know When hiring A Home Inspector

When you are buying a home, it is extremely important that you hire a home inspector. A good home inspector will ensure that you are not given any surprises when you move into your new home, and a bad home inspector can cost you thousands in things you never knew you would have to repair or replace in your home.

First things first, the realtor will probably give you a home inspector and you can use them, but do not rely on them. They probably are associated with the realty agency somehow, are being paid through them somehow and are not likely to stop a home sale. Always get a second opinion.

When you are looking at hiring a home inspector, make sure you ask them open-ended questions about their experience and training. You want them to explain their experience, rather than just answering yes or no to your questions. Your inspect needs to have training in construction and maintenance because that will give them a proper background for what you need. An inspector who also knows, or is, a structural engineer is also very important.

When you are interviewing the home inspector, find out what they will inspect and what they will not. If the inspector only looks at the interior of the house, rather than the roof and the outside as well, then you should not hire them.

Most inspectors should be able to provide you with a report template, or a sample report, which you can use to see what they are going to look on, how much detail goes into it and whether or not they will provide a lot of information in the report.

It goes without saying, but you need to get references for your home inspection. A lack of references means you could end up getting a bad home inspector. Once you have the references, call the people on the list and ask them about their experience with the home inspector and how satisfied they were. Talk to individuals who had a home inspection a year or more ago because some problems may not show up right away when a person buys a home. Mold is a good example of this.

Ask the home inspector what the policy is for mistakes or omissions that they make. No home inspector can catch everything, so you want a home inspector who can admit to mistakes and have something in place to remedy any problems that surface down the road. This will protect you in case something is found that the home inspector did not tell you about.

Lastly, find out if the home inspector is a member of any association. When a home inspector is a member of a home inspector’s association, they will be held accountable by the standards of that association. It also gives you an avenue for complaint if something goes wrong with the inspection, or the home inspector.

Home inspections are great, if you get one that is qualified.

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According to a new report released by the Canadian Real Estate Association, home sales in 2011 could be better than previously thought thanks to a growing amount of consumer confidence that will help take the negativity away from the increase in interest rates that is expected later this year.

According to the forecast released by the Canadian Real Estate Association, there will be an estimated 439,900 on existing homes. While this is better than what was expected in 2011, it is 1.6 per cent down from 2010. The CREA had anticipated a nine percent drop between 2010 and 2011, which probably won’t happen now.

The association is also looking into pricing and they have reasons to be happy as well. The average price of a home in 2011 is expected to be $343,300, which is 1.3 per cent higher than it was in 2010. Originally, the CREA had thought home prices were going to fall by 1.3 per cent from 2010 to 2011.

January sales figures have not been released but there have been several good reports on building permits and housing starts, which tell just how well the housing market will do. New home construction in Canada increased to 170,400 in January, up from 169,000 in December. However, this does mean that the country is on pace to have roughly 10 per cent fewer housing starts as compared with 2010.

One of the biggest worries for the real estate industry coming up is not only the increase in interest rates, probably coming in June or so, but the change in rules for mortgages that go into effect in March. These rules will make it more difficult for people to buy a home in an effort to prevent those who cannot afford a home from buying one.

Once that happens, the housing market may suddenly slow down drastically and the optimistic numbers for 2011 that have been produced may instead reverse course.

If the housing market this year is like last year’s, then we will see a strong first quarter but things will drop off in the second quarter because of changing rules.

While the CREA thinks the housing market will not do as bad as though, the Bank of Canada is forecasting that the housing market will be a minor net negative for the economy, creating a downside risk.

Also in housing news, this past week the Royal Bank, TD and CIBC raised their five-year closed mortgage rate by .25 percentage points to 5.44 per cent.

As for 2012, the CREA believes that home sales will go up to 453,300, which will that year on par for the 10-year average in home sales.

So, all that can be done now is to sit back and see what happens in the housing market as 2011 moves forward and the new housing rules come into place. If you want to get a home though, now is the time because once the new housing rules come into place, you may not be able to get that home of your dreams.

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The lawyer is going to talk to you about several things that will be of interest to you, many of which you may not know about. Knowing these things will help ensure you get what you want out of your purchase.

HST is something that many people do not understand, nor like. It is also something to consider when you are buying a condo. There is an HST Rebate that is meant to give you money back on large purchases like a house, but if you don’t know how to file for this rebate, you could lose out big time. A condo lawyer can help you get the rebate, which will help you pay for that new condo of yours.

The contract can be very complicated and you may feel as though it is written in a different language. A condo lawyer is going to be able to go over that contract with you and give you help in understanding what is being said in the contract. One of the biggest mistakes that people make when they are buying a house or a condo is they just buy the condo and sign the contract without reading it. However, did you know about things like caps? Just like a salary cap in the NHL, a cap on fees keeps you from paying too much. Cap costs have gone up by nine times in ten years, but if you just sign a condo contract without having a lawyer look at it first, you could end up paying as much as $10,000 more than what you needed to, just in closing cap costs like gas hook ups.

There are going to be several fees associated with your purchase and developers love these fees because it is essentially free money for them. As a result, if you don’t read the condo contract properly, you could end up paying thousands in useless and unwanted fees. A condo lawyer knows what developers try to do and they know how to keep you from paying for fees. Everything from purchase fees to fees on utility hookups are going to be charged, and you don’t want that to happen. Have the lawyer look over the contract carefully because the savings you get from not paying too much for your condo will offset the amount you pay for a lawyer immensely.

Here are a few things you can expect from a lawyer:

- Explain, prepare and register all related legal documents, such as purchase contract, title, HST rebate etc.
- Scrutinize that there are no liens, easements, covenants, unpaid taxes, unpaid utilities etc against the condo.
- Arrange title insurance protection, review all the closing papers you need to sign, and ensure your registered
ownership does not make you liable for more than what you have accepted.
-  Explain and advice you on your rights, obligations and protect your interests in case of a dispute.
- Assist you to close the transaction through province’s electronic registration system.

Before you hire a condo lawyer, you should talk with friends and families to find out any lawyers they have used and whether or not you should need one. You can also talk to your realtor but it is better to get a lawyer who is not affiliated with a realty agency. Finding a good condo lawyer will ensure you do not pay too much and you get exactly what you paid for.

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When you want to rent-to-own within Canada, there are some things you need to be aware of before venturing down that road. First, a bit of an explanation of what rent-to-own actually is. Rent-to-own is an agreement where a rental lease and purchase agreement between a tenant and owner is put in place to purchase the property at a fixed price at a specified point of time. With rent-to-own, you agree that five years down the road, you will purchase the house for the price that it is valued at when you reach that point. When you pay rent on the house, the rent goes towards the value of the house, hence the term rent-to-own. So, you pay each month towards the payment of the house, then you buy the house for what it is worth at the point when the term ends.

As the renter, there are many reasons that a rent-to-own property would be a good idea for you. Obviously, the biggest benefit is if you have bad credit and want to buy a home but need to improve your credit first. As well, if you don’t have much money at this moment, or you don’t have a large down payment, then rent-to-own is a very good idea.

In regards to your down payment, the owner of the property is required to accept the down payment that you have. There is no minimum amount, within reason, and that is a big benefit of the rent-to-own system. The down payment typically will be two month’s rent on the home. So, if you are paying $1,000 per month, then you will pay $2,000 as a down payment. Obviously, the more of a down payment you have, the less you will pay for the house over the course of the terms.

The rent you pay is going to pay off the home. Each month that you put money into the bank for rent, you are paying off your home. Typically, you will have a term that is going to be five to ten years. Each month that you pay rent, you pay off the home towards the end of that term. Once the term is over, you then buy the home with a mortgage. Here is an example to help you. So, you agree with the seller that you will rent-to-own for five years at $1,000 per month. Over that five years, you pay off $60,000. That leaves $240,000 on the mortgage, minus your $2,000 down payment. At this point, you need to get a mortgage for $238,000.

Lastly, you need to agree on a price with the seller. The price you pay will depend on the market. When the market is up, you pay more. When the market is down, you pay less, it is as simple as that. Once you agree upon a price with the seller, the seller is committed to that price no matter if the value of the house changes. This can be good if the value goes up but bad if the value goes down.

Before getting into any rent-to-own program, always do your research and make sure this is the best option to be a home owner based on your situation.

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Canada is a beautiful country with a lot to offer the world. It is generally considered to be one of the best countries on Earth to live in. If you already live in Canada, you know exactly what we are talking about, if you don’t then you need to visit the second-largest country on Earth. You can live on the cool east coast, the northern rainforest of the western coast, the prairies, the tundra of the north, the land around the Great Lakes, in the mountains, anywhere.

Living in Canada, you probably know where you want to live in Canada, so now you just need to figure out the house you want and how to go about buying it. To help you out, here is a step-by-step guide to buying property in Canada.

1. The first thing you have to do is look at how you are going to pay for the house. This involves financing and when a seller knows you can secure financing, they will be more open to negotiating the final sales price. When you are buying a home in Canada, you should have at least 5 -20 per cent of the purchase price as a down payment. This may seem like a lot, but Canada has stricter guidelines than the United States for homeownership, which is one of the reasons why Canada did not suffer as large of a mortgage meltdown as their neighbours to the south. The loan can also be amortized over 25 years, with 25 years being the typical length for a mortgage. You are no longer allowed to have anything over a 40-year mortgage due to new rules. If you do not have good enough credit though, or the down payment, you will not get the house because credit guidelines and laws are much tougher in Canada than in the United States.
2. At this point, you need to go onto MLS.ca to find the home and realtor for you. MLS will allow you to do searches by area and price, number of bedrooms, and a wide variety of other criteria to find the perfect home for you. Using a map service, you can see exactly where the house is and even see all the homes in the area you want to live, that are in your price range right in front of you.
3. Through your realtor now, after you have found the home you want, you will negotiate your Offer to Purchase/Agreement of Purchase. One good tip is to hire an attorney who can review the contract for you.
4. Put all your paperwork in and wait for the bank to approve your mortgage. You should schedule a closing so that the bank will approve your mortgage, or at least give you word back on it, in a timely manner.
5. Now, once approved, sign the paperwork and put the funds through a solicitor. You will pay transfer taxes, title insurance fees and mortgage fees at this point.

Now, just enjoy your house!

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Housing Bubble Possible In Canada

Experts have been warning about it for some time now, and it looks like they may have been right. Many were applauding how strong the housing market in places like Toronto and Vancouver was in 2009, with record growth in many areas, but it turns out that the growth may have come at a price. Many experts and economists are calling the current housing situation a perfect storm to create a housing bubble, which could cause the market to crash just as soon as it has risen up so quickly.

According to the Canadian Centre for Policy Alternatives, for the first time in 30 years, housing prices have risen faster than historic comfort levels in most of the major cities in Canada, including Toronto, Edmonton, Vancouver, Montreal, Ottawa and Calgary. This, according to experts, is a tell-tale sign that a housing bubble is coming and when it does, it could lead to a drop in price of as much as 40 percent in property values.

Housing bubbles are not common to Canada since Canada has different regulations and rules in place. Canada did not allow sub-prime lending to the degree seen in the United States, so Canada was spared the full brunt of the collapse as was seen south of the border. However, the report says that seeing a big rise in housing prices, so quickly, in so many cities, is a sign that there is an accident just waiting to happen.

Over the past year, housing prices have been at about $150,000 to $220,000 but they have suddenly jumped to over $300,000, which has many worried.

The biggest housing markets in Canada are not stable right now, especially after the increase in housing prices that was seen from 2002 to 2007.

In the past, housing prices tended to be about three to four times the provincial median income, but currently housing prices are as much as 11 times higher than the average median income. That is much more than most can afford, which leads to failed mortgage payments and individuals falling behind until they suffer foreclosure.

What cities are going to be hurt the most? According to the Centre for Policy Alternatives, Edmonton and Montreal will suffer the biggest hit in terms of percentage lost, losing 38 and 34 percent respectively. They are expected to lose this amount within three years.

Vancouver is going to suffer the worst fall in terms of dollars, losing $200,000 from the average home. That means homes worth $350,000 now could be worth $150,000 within only a couple years.

In the past, there have been three housing bubbles bursting. Two have happened in Vancouver, where the highest home prices are, and once in Toronto. This housing bubble burst could be the worst of all, with six different cities suffering a housing bubble.

For those who do not have a home and are looking to buy, it could be a buyer’s market very soon. For those who sell houses, the next few years are going to be tough ones indeed. For the economy of Canada, things may be getting worse before they get any better.

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Multiple Listing Services or MLS

If you are planning on buying a home in Canada, then you will most likely be finding that home through MLS, unless you go through a private sale. MLS, or Multiple Listing Service, is a one-stop shop for all the homes that are listed through the major real estate agencies within Canada.

MLS has actually been around for quite a long time, finding its origins in the late 1800s when real estate brokers would gather in offices of their local associations to share the information about the properties that they were attempting to sell. They would do this under the agreement of compensating other brokers who helped them sell properties, and this created the basic principle of MLS.

The Real Estate Board of Greater Vancouver claims to be the pioneer of MLS in Canada, and currently the MLS service in Canada has 98,000 members of the Canadian Real Estate Association, who work through the 101 real estate boards and 11 provincial/territorial associations.

MLS is extremely beneficial to you as a homebuyer for the following reasons:

1. It allows you to search through properties based on location, price, services and more.
2. It allows you to see pictures of a home anywhere in the country without ever having to travel to that area of the country.
3. You can comparison shop homes in a wide area to find the home that is right for you.

Some people criticize MLS because it allows the realtors who use it to have a monopoly on listings. Roughly 80 percent of homeowners in Canada use MLS to find their home, so for realtors who are not listed on it, they lose out on a lot of potential business. Lawsuits have been launched to allow other realtors to list homes outside of MLS, but these have mostly been thrown down.

If you are doing a home search, you can either look on MLS yourself (www.mls.ca) or you can have an agent do it for you. When you do a search, you can search in a number of ways for the right home for you and your family.

• Postal Code
• Radius Search
• Street/Subdivision
• Price Range
• Number of Bedrooms/Baths
• Garages
• Pools/Spas
• Square Footage

Once you find your home, you can look through the pictures, find out where it is on a map and even e-mail the realtor questions about the place. This puts a lot of the control in your hands and in fact all you need the realtor for is to buy the house and inspect it when you are in the area.

MLS is a great service that really makes the entire process of finding a home much easier. You are able to find a great number of homes anywhere within the country through the easy map function. You can see exactly where the home is, what it looks like, the things it has and anything else you may need. Without MLS, it would actually be more complicated to find a home for average homeowners.

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Is It Possible To Make A Private Property Sale In Canada?

Canadian Real estate 101 Selling is a serious process just like buying is. A person needs to understand how to go about it. The most recommended process is finding a selling agency to offer guidance. A seller has to be prepared to pay a certain commission in exchange to the help a selling agency provides. In this case he or she does not have to worry about being swindled or anything of the sort. This is a good option if a seller has no time or expertise to find a good property buyer.

On the other hand, a seller can decide to oversee the entire process personally to avoid paying realtor commissions. This is certainly complex but not when a seller has taken time to research the Canadian market currently. He or she must be ready to find all the information that an experienced agent is aware of. The good news is that one can easily find sites that guide homeowners through the process of making private property sales. Choosing to use an agent is a decision one can make freely in Canada or some other countries in the world.

After going through these sites one realizes that this procedure is not as complicated. There are some advantages that a private property sale can bring. For instance, a homeowner is always in a position to disclose everything about his or her property to a buyer. Therefore a private home seller can oversee home viewing and price negotiation personally. If a seller decides to make private home sale, he or she has many advertising options. Internet is the trendiest advertising platform right now and there are famous gateways in Canada.

There are several other sites that do private property listing in Canada but it is prudent to find out how it happens. Of course every private home seller wants to be sure of the site’s authenticity trademarks. He or she may want to consider a site’s traffic hits and if the site is actually moving properties fast. A real estate advertising site that a client can flexibly use and obtain support when necessary is good. Before posting a home poster online, one has to make sure that the house is properly maintained.

Avoiding using any realtor does not mean a seller won’t deal with one. Any buyer will often prefer to hire an agent to help him or her in the process of buying. A seller will therefore deal with a person who has ample knowledge of the Canadian real estate 101 selling procedure. The process can get complicated and a seller may end up hiring a lawyer or an agent. In fact it is possible to receive calls from agents willing to do business with a seller after viewing his or her property ad.

If a seller is still willing to sell the privately, he or she may need a lawyer’s note to shun the persistent realtors. Selling a private property via auction is possible but a seller’s home must be cozy, attractive and modern looking. A home situated in the hottest locations in Canada and it is also upscale will receive good bids fast.

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Canadian Real Estate Market Outlook

Investing in real estate in Canada is a prudent step to take right now. According to recent reports, Canadian real property market is attractive. 2010 is a perfect year for any real investor in the country. Probably even international investor would be glad to take advantage of declining property prices. Many countries lack luring residential or commercial investment opportunities.

This means that an investor can currently expect a good return on property investment in Canada. Just like in other developed countries, Canadian commercial real estate market growth rate is slow. However the cost of these properties have not been too steep lately. An investor can choose to buy a commercial property in busy places where people are seeking business premises. Also buying a house in an area where income potential and employment odds for residents seems promising is perfect.

Buying commercial properties is often beneficial because one is assured of steady income flows. Furthermore, buying a property a time like now when prices are reasonable is wise. In future, a house’s value is expected appreciate and it is much more likely to cost more than its initial buying cost. Before one can buy any property, it is important to examine his or her finances. To be specific, a foreigner who intends to invest in Canadian real estates need not consider the currency conversion alone.

There are extra financial factors that are handy. For instance, a person may decide to purchase a real estate by paying a mortgage loan. The option is available to both the natives and international investors through banks, although the former is favored. As a foreigner, one needs to approach a Canadian bank to inquire about it. Some banks will definitely provide this type of home buying loan based on some conditions. An investor must ensure that his or her credit score is above reproach.

It is very possible to apply for a mortgage in Canadian currency from anywhere. Having a motive to relocate to Canada is a good intention still. To achieve this, one must find a good international mortgage broker. This is not an easy task because these brokers operate in some select countries. If an investor lives in Canada, it is easy to find a good mortgage broker. A broker is always useful to help investor during price negotiations. They are source of advice too.

Even before one can select a mortgage plan, evaluating his or her financial ability is crucial. Every investor knows his or her financial strengths. It is wise to consider that real estate prices can suddenly change due to fluctuating currency exchange rates. Select a home mortgage plan that is easy to pay, putting into consideration such random economic changes. As an international investor, it is important to seek consultation before signing any mortgage documents. Choosing to invest through a certain bank that supports international mortgage loans is a trouble-free approach.

A homebuyer or a commercial real estate buyer, from Canada or a foreign country must not default in payment. This can hurt an investor’s credit score or result to a foreclosure process. Foreclosure is the process through which a real estate is repossessed after an investor defaults. This can be difficult for international real estates investors, although it can be a bad experience for anyone.

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