Is it a buyer’s or a seller’s market?
When there are lots of people looking for homes but not many for sale, this is called a ‘seller’s market’, because the seller has something everybody wants. When there are more homes for sale and not many people buying them, this is called a “buyer’s market” because buyers have more power of choice.
How quickly do you need to sell your home?
In a seller’s market, top price and a fast sale can go hand-in-hand. In a buyer’s market, more sellers are competing for your potential buyer. If you have to sell right now, you may wish to lower your asking price a bit to speed up the sale.
Do home sales get frostbite?
It’s true. Winter sales tend to be slower, and Spring sales are more brisk. Regardless, there are always people looking to buy, and seasonality is only one of many factors to consider. If you’re also buying a home. In this case, you don’t really have to worry about playing the market. If you sell your existing home for a ‘low’ price, you’re probably also buying at a low price. If you are upgrading to a larger home, this actually works to your advantage. Imagine when your bigger home is on the upswing. If you’re downsizing from a bigger home to a smaller home or a condo, you need to pay a bit more attention to the market.
Buy first or sell first?
The eternal question. Many people are able to time their sale and purchase so they happen on the same “closing date.” Buyers can make their offer “conditional’ on the sale of their existing home, to make sure they’re not left paying for the upkeep of two homes. When selling, you can try to extend the “closing period” to give yourself more time to find your next home. If you find your new dream home before you’ve even started to sell your old one. Talk to your existing mortgage lender. You may be able to arrange “Bridge Financing.” This is when your lender (the bank) is confident your existing home will sell quickly, and they agree to lend you the down payment for your new dream home.
Wednesday, February 18, 2009
Should I Buy or Should I Rent?
Buy or Rent
With today’s low rates, mortgage payments are often less than monthly rent payments, making home ownership more attractive than ever. Instead of using your hard-earned cash to pay the landlord’s mortgage, you can use the rent money to buy a home of your own.
Buying a home makes sound financial sense, but the benefits extend much farther. Here are some facts to consider when you start wondering why buying is better than renting.
• If you are 35 now and just buying your first home, you’ll be mortgage free when you are 60 and sitting comfortably on a considerable asset. It could mean financial independence as a senior, and the opportunity to enjoy your golden years.
• It’s highly likely your investment will appreciate considerably in 25 years. Don’t buy now with the intention of making a quick fortune, though; think of home-buying as a sound, long-term investment.
• Buying a house is a very effective way of saving regularly for 25 years. Even if you never buy into another retirement savings or investment plan, you are effectively putting money away for the future when you buy a home.
• Owning a home of your own means you can set down roots, get to know your community and involve yourself in it. Kids can make friends in the neighborhood, many of whom will probably go to the same school and be involved in similar recreational groups.
• Discover the pride of home ownership. You can fix up the place to suit your particular needs. Knock out that cupboard under the stairs. Put a darkroom or woodworking room in your basement. Try those fancy paints or finishes. Put murals on the wall. Build a deck. Create the kitchen you’ve always dreamed of. You can enjoy the touches you put into your home for as long as you want, and then you can change them again.
• If you are planning to borrow money from a bank or other financial institution, owning your own home is a definite plus when it comes time to negotiate.
• If you pay $750 a month for a rental unit and never face a rent increase, after 25 years you will have paid a total of $225,000 - and have nothing to show for it. If, like most people, you face an annual rent increase of, say, five per cent, you will have paid out $430,000 to a landlord.
• You may not need as much money as you think to get into the home market. Qualified buyers can buy a house with as little as five per cent down these days through the Canada Mortgage and Housing Corporation (CMHC) mortgage insurance plan.
• With many kinds of investments, you have to pay a capital gains tax on money you make. You don’t have to pay that tax when the value of your house goes up. This means you can keep more of the money your investment earns.
With today’s low rates, mortgage payments are often less than monthly rent payments, making home ownership more attractive than ever. Instead of using your hard-earned cash to pay the landlord’s mortgage, you can use the rent money to buy a home of your own.
Buying a home makes sound financial sense, but the benefits extend much farther. Here are some facts to consider when you start wondering why buying is better than renting.
• If you are 35 now and just buying your first home, you’ll be mortgage free when you are 60 and sitting comfortably on a considerable asset. It could mean financial independence as a senior, and the opportunity to enjoy your golden years.
• It’s highly likely your investment will appreciate considerably in 25 years. Don’t buy now with the intention of making a quick fortune, though; think of home-buying as a sound, long-term investment.
• Buying a house is a very effective way of saving regularly for 25 years. Even if you never buy into another retirement savings or investment plan, you are effectively putting money away for the future when you buy a home.
• Owning a home of your own means you can set down roots, get to know your community and involve yourself in it. Kids can make friends in the neighborhood, many of whom will probably go to the same school and be involved in similar recreational groups.
• Discover the pride of home ownership. You can fix up the place to suit your particular needs. Knock out that cupboard under the stairs. Put a darkroom or woodworking room in your basement. Try those fancy paints or finishes. Put murals on the wall. Build a deck. Create the kitchen you’ve always dreamed of. You can enjoy the touches you put into your home for as long as you want, and then you can change them again.
• If you are planning to borrow money from a bank or other financial institution, owning your own home is a definite plus when it comes time to negotiate.
• If you pay $750 a month for a rental unit and never face a rent increase, after 25 years you will have paid a total of $225,000 - and have nothing to show for it. If, like most people, you face an annual rent increase of, say, five per cent, you will have paid out $430,000 to a landlord.
• You may not need as much money as you think to get into the home market. Qualified buyers can buy a house with as little as five per cent down these days through the Canada Mortgage and Housing Corporation (CMHC) mortgage insurance plan.
• With many kinds of investments, you have to pay a capital gains tax on money you make. You don’t have to pay that tax when the value of your house goes up. This means you can keep more of the money your investment earns.
Monday, February 16, 2009
Thinking of Buying a Home? Here are 5 things you should not do before buying a home
Five Things You Should Not Do Before Buying a Home
Here a few things that you should NOT do for at least 6-8 months before buying a house.
1. Do not make any Major Purchases
If you're buying a home, don't invest in any major purchases. Cars, weddings, jewelry, furniture and electronics. All that can wait until you're settled in your new home. When you make a major purchase, you’re limiting the amount of money available for your down payment.
2. Do Not Move Your Money Around
When a Broker reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last 6 or 8 months on any of your liquid assets. This includes checking accounts, savings accounts, certificates of deposit, stock statements, mutual funds, and even your company pension or retirement accounts.
3. Do Not Make Large Investments
If you've come across a new stock in which you'd like to invest or if it's a great
time to buy, wait it out till you’ve finalized your home finances.
4.Do Not Change Your Bank
Changing banks is always a hectic ordeal, so don't do it before buying a home. You'll have to provide information about previous accounts that are now closed, and therefore inaccessible. If you're fed up with your bank and want to change, tough it out a little longer and switch after your mortgage is approved.
This will save you hours of headaches and frustration.
5. Do Not Change Job Unless Absolutely Necessary
Try not to change jobs. Your employment is a key factor in the mortgage approval process, and if you can't show steady employment, you might be denied. Of course, you can't help matters if you've just been laid off or an opportunity presents itself that you can't pass up. If you're going to change jobs before buying a home, wait another six months before going ahead with the real estate transaction. This gives you an opportunity to establish employment and to show a steady
income of pay checks from a single employer. This looks much better on a loan application than a long list of recent employers.
Here a few things that you should NOT do for at least 6-8 months before buying a house.
1. Do not make any Major Purchases
If you're buying a home, don't invest in any major purchases. Cars, weddings, jewelry, furniture and electronics. All that can wait until you're settled in your new home. When you make a major purchase, you’re limiting the amount of money available for your down payment.
2. Do Not Move Your Money Around
When a Broker reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last 6 or 8 months on any of your liquid assets. This includes checking accounts, savings accounts, certificates of deposit, stock statements, mutual funds, and even your company pension or retirement accounts.
3. Do Not Make Large Investments
If you've come across a new stock in which you'd like to invest or if it's a great
time to buy, wait it out till you’ve finalized your home finances.
4.Do Not Change Your Bank
Changing banks is always a hectic ordeal, so don't do it before buying a home. You'll have to provide information about previous accounts that are now closed, and therefore inaccessible. If you're fed up with your bank and want to change, tough it out a little longer and switch after your mortgage is approved.
This will save you hours of headaches and frustration.
5. Do Not Change Job Unless Absolutely Necessary
Try not to change jobs. Your employment is a key factor in the mortgage approval process, and if you can't show steady employment, you might be denied. Of course, you can't help matters if you've just been laid off or an opportunity presents itself that you can't pass up. If you're going to change jobs before buying a home, wait another six months before going ahead with the real estate transaction. This gives you an opportunity to establish employment and to show a steady
income of pay checks from a single employer. This looks much better on a loan application than a long list of recent employers.
Wednesday, February 4, 2009
Article "The Monitor Chronicle" By Bram Eisenthal
Chronicle, Bram Eisenthal
Anita Benabou Rozenblat will go to great lengths to please a client. This house, the one with the very clean walk, is listed in Côte St. Luc
BY BRAM EISENTHAL
It snowed last week, boy, did it snow. But I did a little digging underneath that blanket of white the next morning and came up with a gem of a story. Her name is Anita Benabou Rozenblat and some of you may know her as the designer behind the Mosskito fashion line. If you’re a Shopping Channel or TVA Quebec viewer, you likely encountered her fashions. Perhaps you’re wearing something Mosskito this very moment.
A funny thing happened to her, however, during her dalliance with fashionable fame: she left it all behind and moved on to newer, uncertain pastures. Benabou Rozenblat became a real estate agent. Why? “I’ve been in sales for 17 years,” said the 40-something woman who looks a lot like a model, truth be known. “I did the designer thing for a long time and had success with it, but it was time for a new challenge. And, basically, sales isn’t about items, it’s about people.
“It doesn’t matter to me what I’m selling, as long as I have one-on-one dealings with people and that we’re both happy at the end.” Listening to her talk, a person with over a decade in sales previously myself, I had no doubt that her energy and professionalism would launch her into the top of her field. I was ready to buy a property from her myself!
The housing market is still hot in Montreal, especially in the West End communities that Benabou Rozenblat services: Côte St. Luc, Hampstead and Westmount. It’s a good time to be in real estate, but it isn’t an easy ride. “I studied really hard to get my license, 240 hours on many Tuesday and Thursday nights and weekends,” she admitted. “It was a grind for me, especially the math. But I emerged into a world that features a new generation of realtors’ reps who are in synch with the younger married buyers we see today, but who can also mesh with the seniors who are selling and changing their surroundings. I am equally comfortable working on behalf of both demographic groups.”
Israeli-born, Benabou Rozenblat is trilingual, speaking English, French and Hebrew, but more importantly, the relationships she establishes become friendships. “Honesty is everything and making a buck is secondary,” she said. “When you hire an agent, you
are doing one of the most important things you will ever do, so make sure you know that person inside and out. Interview several … never choose an agent impulsively. I just listed a house in Côte St. Luc, after which the client was so happy with her
decision, she gave me a facial. It’s a rough job, but someone has to do it,” she said with a laugh.
She treats her clients and their houses with respect and looks down on gimmicky techniques. “Selling is hard work and there’s no easy way to succeed,” she said. I asked her about a recent newspaper article about an agent who treats homes like commodities to be auctioned. “I find that disrespectful, frankly. Unless it’s a bank repossession, you don’t treat a home that casually. For most people, it’s a highly personal, sacred part of one’s life. Would you auction your business … or your dog?”
Benabou Rozenblat also finds homes for clients relocating to Montreal from out of town. To reach her,call her cell 24/7 at 514-502-6627. You can also e-mail her at anitarozenblat@hotmail.com, or check out her blog at www.anitarozenblat.blogspot.com.">www.anitarozenblat.blogspot.com.">www.anitarozenblat.blogspot.com.
Bram Eisenthal's Articles can be found at The Monitor
Anita Benabou Rozenblat will go to great lengths to please a client. This house, the one with the very clean walk, is listed in Côte St. Luc
BY BRAM EISENTHAL
It snowed last week, boy, did it snow. But I did a little digging underneath that blanket of white the next morning and came up with a gem of a story. Her name is Anita Benabou Rozenblat and some of you may know her as the designer behind the Mosskito fashion line. If you’re a Shopping Channel or TVA Quebec viewer, you likely encountered her fashions. Perhaps you’re wearing something Mosskito this very moment.
A funny thing happened to her, however, during her dalliance with fashionable fame: she left it all behind and moved on to newer, uncertain pastures. Benabou Rozenblat became a real estate agent. Why? “I’ve been in sales for 17 years,” said the 40-something woman who looks a lot like a model, truth be known. “I did the designer thing for a long time and had success with it, but it was time for a new challenge. And, basically, sales isn’t about items, it’s about people.
“It doesn’t matter to me what I’m selling, as long as I have one-on-one dealings with people and that we’re both happy at the end.” Listening to her talk, a person with over a decade in sales previously myself, I had no doubt that her energy and professionalism would launch her into the top of her field. I was ready to buy a property from her myself!
The housing market is still hot in Montreal, especially in the West End communities that Benabou Rozenblat services: Côte St. Luc, Hampstead and Westmount. It’s a good time to be in real estate, but it isn’t an easy ride. “I studied really hard to get my license, 240 hours on many Tuesday and Thursday nights and weekends,” she admitted. “It was a grind for me, especially the math. But I emerged into a world that features a new generation of realtors’ reps who are in synch with the younger married buyers we see today, but who can also mesh with the seniors who are selling and changing their surroundings. I am equally comfortable working on behalf of both demographic groups.”
Israeli-born, Benabou Rozenblat is trilingual, speaking English, French and Hebrew, but more importantly, the relationships she establishes become friendships. “Honesty is everything and making a buck is secondary,” she said. “When you hire an agent, you
are doing one of the most important things you will ever do, so make sure you know that person inside and out. Interview several … never choose an agent impulsively. I just listed a house in Côte St. Luc, after which the client was so happy with her
decision, she gave me a facial. It’s a rough job, but someone has to do it,” she said with a laugh.
She treats her clients and their houses with respect and looks down on gimmicky techniques. “Selling is hard work and there’s no easy way to succeed,” she said. I asked her about a recent newspaper article about an agent who treats homes like commodities to be auctioned. “I find that disrespectful, frankly. Unless it’s a bank repossession, you don’t treat a home that casually. For most people, it’s a highly personal, sacred part of one’s life. Would you auction your business … or your dog?”
Benabou Rozenblat also finds homes for clients relocating to Montreal from out of town. To reach her,call her cell 24/7 at 514-502-6627. You can also e-mail her at anitarozenblat@hotmail.com, or check out her blog at www.anitarozenblat.blogspot.com.">www.anitarozenblat.blogspot.com.">www.anitarozenblat.blogspot.com.
Bram Eisenthal's Articles can be found at The Monitor
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