Sara Kareer Century 21 Millennium Inc Brampton Mississauga Vaughan Real Estate

The Bank of Canada today announced another cut to the key lending rate. The Bank reduced the overnight rate by one-quarter of a percentage point to 0.25%.

Here is an interesting article by James Cowan of the National Post providing insight on the bank rates.

The Bank of Canada Tuesday cut its key interest rate to 0.25%. What does that mean?

The country's central bank, the Bank of Canada is responsible for improving the performance of the economy by managing the supply of money and availability of credit. The bank uses a small number of tools to accomplish this big goal. Perhaps most important tool is the target it sets for the "overnight rate," which is the interest rate that banks pay to borrow money from each other for single day. The target for the overnight bank rate is considered so influential, it is often called "the key interest rate" or "key policy rate."


Why should I care how much it costs a big bank to borrow money from another big bank?

By raising or lowering its target for the overnight rate, the bank is able to influence other interest short-term interest rates, which in turn influence interest rates on things such as mortgages and commercial loans. Following the Bank of Canada's decision to cut the key interest rate to 0.25% from 0.5%, the country's major banks all cut their prime lending rates by a quarter of a percentage point.


Could the key interest rate drop any lower?

It is unlikely. The current rate is the lowest in history and the Bank of Canada said yesterday that it believes 0.25% is the "effective lower bound" for the key interest rate. Indeed, the Bank has already been forced to make changes to accommodate the low, low rate. For example, it normally keeps overnight interest rates within .25% of its target, meaning banks pay a bit less or a bit more than suggested. However, the Bank said yesterday it does not want rates to wander any lower than its target, meaning banks could pay a more to borrow money, but not less than .25%.


Has the bank done anything else surprising with the key interest rate?

Yes. It announced that the key rate "can be expected to remain at its current level" for next year, effectively promising to keep interest rates low until April 2010. It is rare for central banks to project that far in the future, although the U.S. Federal Reserve recently made a similiar move, according to Aron Gampel, deputy chief economist for Scotiabank. "They used different words to instill the same message," he said. "For those who are concerned that the economy is never going to turn around, what the Bank of Canada is saying that it is really pedal to the metal."


So why would they promise to keep interest rates low?

Be careful -- it is not quite a promise. In a statement, the Bank did say the low interest rates will be "conditional on the outlook for inflation." Nonetheless, the Bank seems to be attempting to reassure both businesses and consumers that interest rates will stay low for the foreseeable future. "I think a lot of people are going to be taking advantage of that when they refinance their personal debt or they make decisions what to buy now, because they know the Bank of Canada has stated it will do its best to keep interest rates down," Mr. Gampel said.


This all seems rather extreme. Is the Bank out of options if this does not work?

No -- it can always try quantitative easing. Under this strategy, the Bank of Canada would produce additional money and use it to buy government bonds or other assets from banks. The goal is to give the banks more money, which they could then lend to their customers. "Money in the bank will not get us out of recession," said Peter Dungan, an adjunct professor of business economics at the University of Toronto. "It is the lending it out so people don't have to close their businesses or reopen them. If there's enough liquidity in the system, that is what gets us moving again."


Hang on, hang on. When you say "produce additional money," does that just mean printing more cash?

Kind of. The money is new but it is electronically added to the banks' accounts, meaning it is created by pressing computer keys rather a printing press.

Sincerely,

Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage

(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.century21.ca/sara.kareer

Are you looking for a condo/townhouse/semi or detached home? Here is a question for all you buyers...What costs you nothing but can save you thousands of dollars?

Before I give you the answer, let me tell you a little story.

Early in my career, I was showing some condos to a lady for almost one month (with no Buyer Represention Agreement because she did not want to be tied to an Agent). One day, out of the blue, she called and said she bought a FSBO (For Sale By Owner) Condo and negotiated 10,000 off the asking price. She wanted to know if she got a "good deal".

A good deal??? The FSBO had over-inflated the asking price but led her believe it was "priced right". She had no idea of the value of the units in this particular building and even though she negotiated ten thousand off the asking price, she still paid approximately $15,000 more than a similar unit.

The moral to this story and the answer to the brain-teasing question...
A Buyer Representation Agreement costs the Buyer nothing but can save them thousands.

If you're looking for a great deal on the purchase of your property in Brampton, Mississauga, Vaughan, Caledon, Oakville, or the Greater Toronto Area, please give me a call.
I'm here to help you.

Sincerely,

Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage

(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.century21.ca/sara.kareer
(web) www.SaraKareer.com

The Vales of Castlemore is a beautiful Brampton community built by Mattamy Homes. These beautiful homes are surrounded by ravines, parks, playgrounds, and walking/biking trails. This established Brampton community is conveniently located close to all amenities - schools, hospital, transit, major highways, shopping malls and plazas.

The prestigious Vales of Castlemore community provides an assortment of Bungalows and two-storey homes to accommodate your lifestyle. They range from 2 bedrooms to 5 bedrooms.

The Vales of Castlemore consists of the following streets:

Here are some recent statistics within the Vales of Castlemore:

From January 1, 2009 to March 31, 2009:

• 14 Homes were SOLD during this period (12 two-storey homes and 2 Bungalows);
  these homes ranged from 2 Bedroom homes to 5 bedroom homes
  
• Average SOLD price during this period was $434,529
  
• Median SOLD price during this period was $409,500
  
• Lowest SOLD price during this period was $349,900
  
• Highest SOLD price during this period was 602,500
  
• Average Days on Market (DOM) for these homes was 54 days

Current Availability/Inventory:

At the moment, there are only 22 homes available in this prestigious Vales of Castlemore area. They range from $399,990 to $796,559. Three of these homes have undergone a recent price reduction.

If you're ever in the market for a home in the Castlemore area, or would like further information, please feel free to contact me. I'm here to help you.

Sincerely,

Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage

(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.sarakareer.com
(web) www.century21.ca/sara.kareer

Here is an interesting article I read today about the Psychology of House Hunting, written by Collin Ellard. With the Spring market upon us, Collin re-evaulates the psychology of buying a new home. Read and enjoy:

It's house-hunting season. The FOR SALE signs are everywhere. The weekend Open Houses are beginning to heat up (even though the weather isn't), and anyone thinking of moving house in the summer knows that now is the time for action. But in today's tight economy we're all working with a new set of unknowns. Gone are the days when we could treat a mortgage number as an abstract entity, assuming that somehow or other our wages would go up, the value of our properties would appreciate, and all would be well. Now, more than at any time in the lives of those currently in the housing market, we must think very carefully about our living arrangements. But it's not all doom and gloom. In fact, there may be some good that comes at a time when, rather than feeling pushed to buy beyond our means, we're being asked to reflect carefully on what we really want and need out of a home. Here are some points to ponder.

1. Avoid simplistic square foot equations.
Compared to people in many other parts of the world, we in North America have grown up in an age of rock-bottom real estate values. This has encouraged large building lots, houses whose size far outstrips our needs, and low-density suburbs that extend outside of a city's core. There's no denying the allure of having lots of elbow room and views of nature, along with all the conveniences of modern living, but we'd do well to remember that there's not much evidence of a connection between the size of a house and its psychological value as a home. In fact, ongoing scientific studies suggest that how we use our living space is much more important than how much living space we have. It's time to jettison the old-fashioned idea that the size of our home is a measure of our success and think instead of what we need to be happy.

2. Distinguish between what you want and what you want to be seen to have.
We each have many different selves and they can be difficult to keep straight. We have our inner, private selves, the selves we present to our partners and other loved ones, and the public faces we present to co-workers, acquaintances and strangers. When choosing a home, make sure that you are thinking of the person you really are rather than of the image you might want to convey publicly. This can be an exceptionally difficult distinction to make, but it is worth taking the time to do so. It's not your image of yourself that has to live in your home, it's you!

3. Value shared spaces.
When assessing whether a house will suit your needs, think of creative ways to combine functions within rooms to save space. Do you really need a separate dining room? Will a craft room ever be used? Does each child actually need a separate bedroom? Think carefully about how you use your current spaces and consider how you could consolidate, re-purpose and rationalize their various uses. Doing this properly can not only save you a fortune; it can transform the patterns of your life in ways that will increase your comfort and satisfaction.

4. Think creatively about outdoor play.
Most of us would like to have a giant backyard big enough for a play set, a pool, a garden and a small forest of trees, but building lots large enough to accommodate all of these wishes can constrain our house search and stretch our budget beyond the comfort level. If you have children, look for opportunities to stretch play areas by utilizing often-unused front yard spaces. Can neighbours join together to knock down some fences and make a shared yard? It can take some time to overcome our psychological resistance to such measures -- when it comes to home spaces, we're not used to sharing -- but evidence suggests that such communal outdoor arrangements promote physical and mental health in both children and adults.

5. Buy for yourself and not for the next person.
When times are uncertain, it's hard to resist the urge to try to plan for every eventuality, no matter how unlikely it might seem. This can mean that we begin to assess potential homes as investments as well as living spaces. To a point, there's nothing wrong with this approach, especially if it helps our psychological comfort levels. But once we start looking at houses as if we are potential sellers rather than potential buyers, our perspectives can shift and we can lose sight of our own wants and needs. Think carefully about how to protect your own interests, but remember that right now you are the one who needs a home and your needs should come first.

If you have any questions or would like to search my Century 21 database for a list of homes available in your desired area, please don't hesitate to contact me. I'm here to help you.

Sincreely,

Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage

(tel): 905-450-8300
(toll-free): 1-888-450-8301
(web) www.sarakareer.com
(web) www.century21.ca/sara.kareer

Here are some important factors to consider when Choosing the Right Neighbourhood:

When buying a home, the neighbourhood you select will not only play a pivotal role in your family's life, but in the resale value of the property.

One person's ideal neighbourhood however may vary greatly from another's. But, regardless, there are some needs and wants that generally do not change. The distance from your new home to schools, churches and shopping, for example, will not only affect how you and your family settle into your new home, it will also draw or turn off a perspective buyer.

Check the lifestyle

A home is a part of a larger community. And some are more desirable than others. Some communities are geared more to young families, others to older adults and still others to singles or an eclectic mix of residents.

Never buy in an unfamiliar community or neighbourhood unless you have spent some time there both during the week and on weekends, day and night. Drive and walk around. Talk to store owners and people you meet on the street. Ask what they think of the neighbourhood.

If there are vacant tracts of land where you plan to buy, check with local authorities to see what the proposed land use might be. The last thing most homeowners want is the development of a mall or a high-rise office building across the road from their newly-purchased property.

Don't let particular things in a home that appeal to you override its location and potential subsequent resale value. When analyzing a potential property, ask yourself if you can imagine living -- not just in this home -- but in this neighbourhood for quite a long time.

Remember that someday you may have to sell your home to someone else and things that may not be important to you -- such as distance to schools, shopping, doctors and work -- may be important to other buyers.

Location, location

In addition to finding the right neighbourhood, consider the immediate homes around the particular property you want to buy. Are they well maintained and worth the same or more than the home you are considering?

Is the location a quiet area or a major traffic thoroughfare? What kind of privacy does the backyard provide? Does it get the morning or afternoon sun? If there is no house behind you, who owns the property and how will it be developed?

Homes located further away from the centre of an urban area are generally cheaper. Are you prepared to invest the time and money it takes to commute and how long of a commute are you prepared to commit to? Is there public transit and good access to major highways nearby?

If you have kids in school, what kinds of schools and services are available? Will your kids have to be bused to their school? If a school is close by, will they have to cross any major intersections?

Being close to a school, on the other hand, may have some drawbacks -- few owners want the noise and disturbance of being located right next door.

Finding malls, grocery and specialty stores in urban, residential areas is rarely a problem. But in neighbourhoods further away from urban areas, you may need to drive to the nearest convenience store. And getting to the local grocery store, pharmacy and other support services may require an even longer trek.

It's great to be located near parks and recreational facilities, but few homeowners appreciate the high cast of tennis court lights beaming into their back yard. If the home you are considering backs onto such property, drive around the area and see how often the baseball diamonds, soccer fields, swimming pools and skating rinks are being used and when.

More serious concerns are having such things as gas stations, airports, railway tracks, commercial developments, major highways and cemeteries very close by.

Finally, if your heart is set on finding that one-of-a-kind 150-year old Georgian home, you're not going to find it in a newer development. If you want large bedrooms and bathrooms, narrowing your search to an older part of town where homes are generally smaller, may prove disappointing.

Before making any decisions, think of your lifestyle and how a particular location would enhance or detract from it.

Source: OREA

If you would like further information on a particular neighbourhood, please give me a call.
I'm here to help you.


Sincerely,

Sara Kareer
Sales Representative
Century 21 Millennium Inc., Brokerage

(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.century21.ca/sara.kareer
(web) www.sarakareer.com