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Roy Boni

Hot market selling first then buying.

01-23-12
Roy Boni
We’ve decided to sell our condo before we try to buy a home because we just can’t take the risk of carrying two mortgages at the same time.

Selling first is usually the way to go, but with more than a decade of rising real estate prices in Toronto, there is a temptation to buy first.

Buying first has some advantages. For instance, it’s possible that interest rates could move higher in the coming months. There are some very tempting mortgage offers, such as 5-year rates of 2.99 per cent, that we will miss out on because we’re not buying yet.

In our case, being able to buy a home first would allow us to move into a new place and then paint and fix up on condo from the comfort of our new home.

With three young children and lots of stuff, we found this scenario very tempting.

But the big disadvantage is that we wouldn’t have access to the equity in our condo when we buy a house. If our place doesn’t sell, we run the risk of carrying two mortgages at the same time.

On average, it takes a home in the Greater Toronto Area about 29 days to sell. Our agent told us the average in our building is 70 days.

We’re also concerned that the market could turn suddenly. More banks and observers are warning that the Canadian housing market could see a correction in the coming months, particularly in Toronto and Vancouver. Estimates range from a downturn of 10 per cent to 25 per cent.

On the other hand, selling before you buy has a big advantage: You know exactly how much you have to spend before you put an offer on a new home.

We realize that our dream home may come and go while we’re still selling our property, but to us the risk isn’t worth it.

Also read:

Should you sell your home before buying?
House prices to rise again in 2012, but more slowly than last year: LePage

Economists predicting a correction

01-10-12
Roy Boni

Economists predicting a correction haven’t yet decided whether to call it a blessing or something else, but a spate of condo projects in Toronto drove the country’s housing starts higher than expected in December – almost 15,000 above the previous month’s.

“The increase posted in December was mainly attributable to the multiple urban starts, particularly in Ontario and in Atlantic Canada”, Mathieu Laberge, deputy chief economist at CMHC’s Market Analysis Centre, said Tuesday.

The exact numbers for 2011 are still being verified, but the Crown corp. is confirming the seasonally adjusted annual rate of housing starts was 200,200 units in December, up from 185,600 units recorded in November 2011.

That growth came from Canada’s cities, primarily in the form of condominium construction.

The seasonally adjusted annual rate of urban starts increased by 10.1 per cent to 181,900 units in December. Urban single starts increased by 3.8 per cent

in December to 70,600 units, while multiple urban starts were up by 14.5 per cent to 111,300 units.
While Atlantic Canada contributed to those gains, urban starts in Canada’s most populous province rose 35.3 per cent. That may ultimately confirm fears about a possible housing bubble in the country’s condo market.

Last month, the Central Bank singled out that sector more vulnerable to price declines than others.

“The supply of completed but unoccupied condominiums is elevated, which suggests a heightened risk of a correction in this market,” reads a BoC economic report.

That phenomenon is already being felt by condominium investors in Vancouver, where a glut of high-end units now sit idling, in part because of the HST, say market analysts.

While the number of new condo developments in Toronto is also on the upswing, some analysts have suggested that market is less susceptible to a correction given the strength of the GTA market, buoyed by immigration.

Selling a home: 10 things you need to know

12-10-11
Roy Boni

Selling a home: 10 things you need to know

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SHUTTERSTOCK

People sell their homes for a variety of reasons, whether it’s because they need more space, they’re downsizing, moving up, leaving the country, or getting a divorce. They all have one thing in common: They want to get the most they can.

Here are 10 things you need to know about selling your house.

1. What’s my house worth?

It doesn’t hurt to get a second opinion at the doctor’s office. Real estate is no different. If you’re interviewing realtors, ask what they think your home will fetch. Agents will look at what else has sold in the neighborhood and make a comparison. But trying to figure out value in a fast moving market can be like pinning a tail on a galloping donkey. What sold last might not be where the market is today. But at least it will give you some baseline numbers.

That ballpark figure is essential to helping you to figure out how much equity you have in the home. That’s the amount of money left after you sell, minus your mortgage and other expenses such as moving and commissions. It gives you an idea of what you can afford for your next property and whether it’s worthwhile selling in the first place.

2. Declutter

I know you’ve seen those reality shows where the hoarders have junk packed to the ceilings. I know this isn’t you. But I also know that you don’t always vacuum every day and the house isn’t necessarily as pristine as it could be. Decluttering is the cheapest way to make your house shine to a prospective buyer. You may even find that box of chocolates that your aunt gave you for Christmas.

3. Curb appeal

First impressions count. The front of your home is the first thing buyers see. Some buyers have been known to stop at the front door and walk back to the car if they are turned off. That means making sure your lawn is freshly mowed. A coat of paint outside can’t hurt either. And bury the garden gnomes.

4. You can do it yourself

There are plenty of do-it-your self companies to help you sell. Some will list your home on the Multiple Listing Service for a few hundred dollars. Others will provide services a la carte, depending on what you need.

Or you can do most of the work yourself. That includes your own showings and flyers. But you get to keep most of the savings. An agent will charge a seller roughly 2.5 per cent of the selling price. On a $400,000 home, that works $10,000. With a little sweat equity you could save significantly.

5. If you want an agent…

If you feel more comfortable using an agent, shop around. Just because your cousin just got his license, it doesn’t make him the best choice. Your aunt might be miffed, but this is your money. Ask friends. Get referrals. There are even internet “dating” services out there that have realtors bid on your business. Pick from realtors that offer you the best range of commission and service and most of all knowledge about your neighborhood.

The realtor that suggests the highest price is not necessarily the best for you. Is he just trying to get your business? Find out how he calculated the price and assessed the value. Then compare with your other choices.

And don’t be afraid to negotiate. Realtors work hard for their money. But that doesn’t mean you can’t get a discount. If your agent shaves off just half a percentage point on his or her commission, that would leave $2,000 in your bank account on a $400,000 home. That’s enough for a nice little vacation somewhere.

6. Depersonalize your home

Pictures of your kids and grandkids are cute, but not to all buyers. Buyers want to be able to imagine living in your house. That means visualizing sitting on your comfy couch watching your big screen TV with a huge tub of popcorn. Just like you. So take away anything that will remind them that they’re just visiting. You want them to linger awhile. Don’t spoil the illusion.

7. Maybe hire a fluffer

Home stagers help you rearrange things in the house to make its appearance more attractive It could be worth it, but can also be expensive. But if it’s a slow market, your home has an odd layout, or your furniture is from a tattoo parlour (not that there’s anything wrong with that) a home stager may be the answer.

8. Marketing your home

Posting your home on the Multiple Listing Service, newspaper advertising and flyers are some of the traditional means that many people use. There are also internet sites where you can post your home for sale, depending on whether you are selling it yourself or using an agent.

The easiest and cheapest way starts with a sign on your lawn. Some people don’t like the For Sale sign because of privacy issues, but it’s round the clock billboard advertising.

You can also consider an open house for agents. Many realtors prefer to pre-screen a home before recommending it to their buyers. You can also have a general open house where anyone can drop by. Yes, so will all your nosy neighbors, but they may have friends or relatives who might want to live in the neighborhood.

9. When to sell?

Spring is traditionally the strongest market and prices are typically higher. As summer approaches, families have more time to look around, but most parents want to get settled before school starts.

Come winter, inclement weather keeps people indoors and buyers are thinking about the holidays. Not surprisingly, Christmas tends to be the slowest. But that doesn’t mean you have to shy away from listing. Sometimes less competition can mean good results. And your home is already decorated. Take advantage of the fact that the place already looks great for the holiday season. The tree is up, the fireplace is blazing. Let it snow!

10. Do you really need to sell?

If you need a bigger home, you could explore putting on an addition. If your home is dated, you can think about renovating. If you’ve lost a job and are having trouble making ends meet, think about taking in a tenant. There are options to selling that you can consider. There are also costs to take into account, from moving and storage to commissions that you pay each time you move. Selling isn’t always the best way to go. Your dream home might already be the one you’re in right now.

Buy or Rent?

12-03-11
Roy Boni

So, you’ve finally decided to fulfill a lifelong dream and buy your own home… how exciting! You are ready to fulfill your dream of having a place to call your own.

Buying a home is one of the biggest emotional and financial decisions you'll ever make. Prepare by learning about the proces

So, you’ve finally decided to fulfill a lifelong dream and buy your own home… how exciting! You are ready to fulfill your dream of having a place to call your own.

Buying a home is one of the biggest emotional and financial decisions you'll ever make. Prepare by learning about the process of homebuying and the responsibilities of homeownership. The differences between renting and buying a home are vast, and there's a long list of pros and cons for both options. And, remember — there is no one best decision for everyone. Before moving forward, though, here are some questions to consider.

  • Do you have the necessary financial management skills?
  • How financially stable are you?
  • Are you ready to take on the responsibility of all the costs involved in homeownership, including mortgage payments, repairs, and maintenance?
  • Are you able to devote the time required for home maintenance?

There are pros and cons for both renting and buying. Everyone must make his or her own best decision. Buying a home is not for everyone. Take a moment to think through the advantages and disadvantages of both owning and renting. Use this worksheet to guide you.

Read over your completed worksheet and then think carefully. Are the advantages of owning your home really bigger than the advantages of renting? Are the disadvantages of owning your own home really smaller than the disadvantages of renting?

If homeownership is for you, you must be both financially and emotionally ready. Buying a home isn't only about money. You should listen to your heart… and take an honest look at your lifestyle.

s of homebuying and the responsibilities of homeownership. The differences between renting and buying a home are vast, and there's a long list of pros and cons for both options. And, remember — there is no one best decision for everyone. Before moving forward, though, here are some questions to consider.

  • Do you have the necessary financial management skills?
  • How financially stable are you?
  • Are you ready to take on the responsibility of all the costs involved in homeownership, including mortgage payments, repairs, and maintenance?
  • Are you able to devote the time required for home maintenance?

There are pros and cons for both renting and buying. Everyone must make his or her own best decision. Buying a home is not for everyone. Take a moment to think through the advantages and disadvantages of both owning and renting. Use this worksheet to guide you.

Read over your completed worksheet and then think carefully. Are the advantages of owning your home really bigger than the advantages of renting? Are the disadvantages of owning your own home really smaller than the disadvantages of renting?

If homeownership is for you, you must be both financially and emotionally ready. Buying a home isn't only about money. You should listen to your heart… and take an honest look at your lifestyle.