Here are a few home repair & more articles that you may be interested in:
Congratulations on the purchase of your new home! What’s next on your to-do list?
Well, today Laughlin Law has the post for you. They’ll go over everything a real estate lawyer can do for you. As a favour for this post, we recommend that you go take a peek at their website here:
Laughlin & Company Lawyers Mediators
2755 Lougheed Hwy #710, Port Coquitlam, BC V3B 5Y9
The Handling of Your Status Certificate
If you have an offer which includes special conditions, you are more than likely going to be required to make financial arrangements. As well as, having the property inspected to ensure it is sound. However, if you purchased a condominium, it will be necessary for the lawyer to inspect your Status certificate. It’s a basically a snapshot photo taken of the condo’s corporation, which includes important information about the Corporation and the condo unit itself.
While reviewing your Status Certificate, ask yourself these question:
- Is the revenue from the reserve fund adequate?
- Are there any pending lawsuits against the condominium Corp?
- Is there built up arrears in the common expenses?
- Are there any future assessments scheduled?
The lawyer will go over the paperwork with you, pointing out the essential information before you signing the initial contract. After your realtor all of the waivers with you, the deal will be firmly in place.
Now your lawyer will perform a thorough inspection of the property. To ensure that the property in question doesn’t have any arrears built up or outstanding maintenance orders on it, the lawyer may need to do a compliance search and check out the tax certificates as well. They’ll also do a review of your title to make sure that the vendor has removed specific aspects before closing the deal, like:
- Does the prior owner have an old mortgage contract which needs to be removed?
- Are there any unpaid liens that need to be paid off?
- Does the property have any easements impacting it?
The personal lender keeps a draft from your lawyer and will prepare the mortgage before closing. Sending the money for your mortgage directly to the lawyer once this has been completed. If it’s a CMHC-insured mortgage, then the payment for that, including the PST, is immediately withdrawn and the remaining balance shall go to your lawyer, which will be paid directly by the lender.
Reap the Rewards from Discounts
Now’s the time to look into special government programs and rebates in which you may qualify for. Such as, if this is the first time you’ve ever owned a home, then you could be expecting an automatic land transfer tax discount. For you to receive this discount, you can have no prior ties to any property whatsoever, including that which was acquired through a previous marriage. First time homeowners also qualify for a rebate from the province with a total of up to $2000, as well as an additional $3725 from the city if the said property is within Toronto city limits.
Making Insurance Arrangements
Upon closing the deal, your lawyer will more than likely set you up with a Title Insurance Policy, on behalf of you and your lender. Usually involving a one-time payment, which helps to protect the title against any fraudulent activities caused by a third party member, which is effective for as long as you own the property. Such as, having your identity stolen or if the previous homeowner didn’t keep up with their property taxes. Once you’ve made arrangements for an insurance policy to be taken out on the property, then proceed to send a copy to your lawyer.
You’ll want to pay a visit to the lawyer’s office to fill out the final closing documentation. Make sure to take along a draft with the remaining balance of your down payment, property transfer taxes, and any legal fees that you’ve been charged.
The lawyer’s office usually has the keys waiting for you on the initial closing day. Therefore, it’s best to wait until then before making arrangements to move in.
It is now your home – Once you and your lawyer have closed the deal, you’ll receive a closing package that contains every bit of your documentation. My general advice to all clients is to promptly open it up when the package arrives because you just might have a cheque inside for unused expenditures.
The first step to becoming a successful homeowner is changing all of the locks in your new home. Now you can sit back and enjoy it!
The very last thing you would like is to employ a contractor flippantly, have the roof fail, then need to do this all over again. To begin with, do your homework on the roofing contractor that you’re thinking about hiring. All reliable roofing contractors should have a tangible location with a dedicated small business listing online and in local directories.
Make sure it’s simple to communicate with the contractor. Employing a roof contractor is similar to finding a great auto mechanic; identifying someone who you trust to execute an important service you know little about and for which you cannot understand the work or evaluate its quality. You will also have to search for a roofing contractor who will carry on the maintenance work in order for your roof will endure for a very long length of time.
More: Employing A Roofing Contractor Checklist
As many as 60 out of 100 home buyers would say no if you ask them whether they were satisfied by the size of their down payment. TD Canada Trust found this out during a recent survey of first time home buyers.
This revelation is hardly surprising: Bigger down payment translates into bigger equity buffer if home prices slide, lower mortgage insurance fees, easier refinancing, and less interest paid.
The challenge is about saving a sizeable deposit in a world of towering home prices, skimpy investment returns, and record high debt ratios. Some new buyers, frustrated by the slow, long process, would rather accept the loss in savings to get the keys to their new home faster. The reality is that 55% of first-time buyers, whom TD surveyed, stated that they would purchase sooner if they had the opportunity to do it all over again.
The problem is that it takes time to save up a down payment
Currently, the minimum admission price to home ownership for financing a deposit is set at five percent. This is not inclusive of 100% financing, also known as cash-back down payment mortgages, as they might not be around for long and are usually ill-advised.
Respondents of the TD poll estimated that saving a five percent down payment takes about two years or less, and saving 10 to 20 percent down payment takes one to four years.
You are not the sole person who finds this as optimistic
Saving a down payment is not as easy for today’s highly leveraged customers as it was in the early 1980s when personal savings rates surpassed 20 percent.
Based on a May estimate from mortgage insurer Genworth Financial Canada, the average national purchase price for a first-time buyer has soared to approximately $295,000. This implies that the typical first time, to cover the minimum five percent closing and down payment costs would have to save more than $16,000.
How much time do young people take to gather that sum of money?
According to Doug Porter, deputy chief economist at BMO Capital Markets, the median family income is slightly less than $70,000, and the rate of savings has been fluctuating near four percent. He also adds that by this measure, the median family would be saving roughly $2,800 per year.
According to CMC, the annual cash savings of first time purchasers, who are on an average 34 years of age, would be slightly less than that of the median family. Obviously, taking away a good chunk would be tougher for a single individual.
Mr. Porter stated that he suspected that on a median basis, it would take about four to five years of saving, just to get a toehold in the housing market, with five percent down payment. He also stated that first time buyers are facing a stiff challenge accumulating a down payment.
According to him, that might be one of the reasons why the government has not hiked the minimum down payment.
None of the above is intended to discourage people from saving for a real estate deposit. Saving for a longer duration provides you a bigger cushion in the scenario that the home prices fall and you need to sell. Nobody wants to owe more than their home is worth.
It also provides you with a better entry price in case the market sells before you purchase. A price correction over in the next couple of few years is the most likely scenario, according to surveys of housing forecasters.
Regarding mortgage costs, purchasing with 10 percent equity versus the five percent minimum can save up to $80 per month in payments for the typical entry-level purchasers, as well as nearly $2,400 in default insurance premiums. However, an increase in home values can easily overshadow these savings. Purchasing today also allows you to lock in abnormally low fixed mortgage rates for up to ten years.
However, as a first-time buyer, you have got to consider other things, including:
• Your rental costs: Are they lower or higher than your probable ownership costs?
• Optional uses for your down payment money: Will you be able to obtain better returns by investing down payment funds somewhere else?
• Your emergency fund’s price: Home ownership is bundled with a huge list of unexpected expenses.
• Your economic stability as well as your future earning capability
There are several methods to stitch together a bigger down payment.
• Cut down on your spending: According to Mr. Porter, individuals saving for a house should be slightly more aggressive than the typical saver.
• Tap into the bank of dad and mom. A lot of young people get started as homeowners with the gift received from their parents.
• Take advantage of the Home Buyers’ Plan to borrow from your RRSP
• Apply for bonuses and tax returns
• Owners of two cars should get rid of one car
• Defer a vacation for a minimum of 18 months
• When applicable, use municipal grants for first time home buyers (such as this one in Saskatoon, this one in Surrey BC, or this one in Las Vegas).
Marie Slay, director of mortgage advice at Deposit Financing says that individuals have to pay some shelter costs, either in the form of rent or mortgage. “As long as people ask themselves whether their job is stable, what type of money is coming in, if their income will decrease or increase, looking at their financial prowess, as well as saving money for potential increases in interest rates,” then the decision of purchasing a house sooner makes a lot of sense. Click here for more information on Marie’s points.
TD advises that first-timers should aim for 20% down payment for real estate financing. However, it could take a decade for individuals to save such a sum. Unfortunately, most young people cannot wait that long.
Realtors are constantly searching for strategies to educate their buyers. Again, you’re working long-term with realtors, not only asking for free financial loans. Don’t imply your realtor isn’t a valuable area of the home sale procedure but let them know the truth of your financial circumstance. Based on the market in your town, realtors might be more than delighted to cut their commission a bit to have the excess small business. They know the market, know what homes are selling for in that price range and that area and can give you good advice as to how to structure a deal based on your particular situation. They are professionals at what they do, and they can make your life so much easier that it is a great benefit to you if you use one. Whatever the case, a seasoned Realtor can help you greatly.
An agent isn’t attempting to rip you off. Knowing your agent would like you to succeed and knowing he or she truly cares about you is an additional advantage of selecting an agent. The real estate agent can present their clients that the future of real estate and allow them to know the marketplace is currently falling, so in the event that you can’t afford to cover your home in the close future you’re going to have a really rough time selling it for what you owe. He can help their clients by showing them statistics of foreclosures when they feel their client cannot afford what they want to buy. He is experienced enough to deal with these complex scenarios, and they can include provisions in the contract which will protect you in either case of purchasing or selling the property. If you choose a high-calibre realtor, you’ll have the benefit of being exposed to their whole pool of buyers.
Seasoned realtor Justin Hennessy @ http://www.justinhennessey.com says that “the best thing about making use of a Realtor for a buyer is that their services are FREE! As an example, to buy a HUD home, you have to be represented by means of a Realtor. In many instances, you have to get a Realtor when buying certain homes.” Other items to think about when selecting a realtor are that the realtor will usually be more available than you should demonstrate your property. Your realtor will establish an asking price alongside you. Realtors work with all types of sellers in all price ranges. Furthermore, the more successful Realtors tended to be absolutely the most experienced.
Folks who wish to refinance their house in order to pay the monthly payment aren’t qualifying because the banks are asking them to demonstrate proof of revenue. If you’re putting your house on the sector and want to conduct some of your own research, you can do one of 3 things.
If you’re selling your house, you should be aware that a very good realtor can help you to factor in her or his fee into the selling of your house. If your house is well worth a good deal, a percentage-based commission is a huge number. Purchasing a house can be a tiring situation, but it doesn’t need to be if you’re working with the most suitable agent for you. There’s a lot to consider in regards to selling a house. If you’re buying a new house, make sure sellers provide home warranties.
Even in the event the property isn’t in the very best shape, pictures will enable the buyers to be aware of what the property does offer. It’s possible even to have more than blog-site which can be customised to highlight distinctive properties. Possessing a very clear message in your marketing is an important element to marketing your home.
Some sellers will wait till they obtain their price and based on whether it’s a buyers or sellers market could take some opportunity to do. They have time constraints because they might be wanting to purchase another property that they have already contracted for and others just want to get out as soon as possible. Home sellers might need to pay for an expert appraisal in order that they know the genuine value of their house, but they’re not required to have an appraisal.
When lots of buyers are buying houses which they can qualify for but soon realize they can’t afford it they will want to sell or their home will go into foreclosure. A buyer typically wishes to find the very best deal they can get and could settle for a property that might not be their very first selection but the deal is too great to pass up. It cost them nothing and could result in a skilled buyer.
Remember in regards to property investment, it’s about location. It has to be mentioned that land investment doesn’t mean investment in property. The very last thing that you want to do is make a substantial investment in the property you can not regularly appreciate.
In order to discover if your investment in a residence is well worth it will have to discover how much that home is worth after 3 decades of appreciation in value. Aggressive investment involves a greater quantity of danger. While doing this, you ought to be realistic and avoid substantial investments at the beginning so that your losses aren’t much. Among the very best investment, you can possibly make is to have your home. Residential real estate investment includes the procedure for buying different people’s houses while the investment in commercial real estate involves purchasing a huge property that could be rented to a business.
While buying a home, you’ve got to regard the kind of property you desire. Having a property is undoubtedly a great investment. Owning investment property also permits you to write off the expenses of things that you might have bought anyway, from office supplies to a visit to find the property. If you’re planning on purchasing an investment property with the goal of renting it out, take into consideration the market you prefer to target.
If you wish to know more about townhome real estate, make sure to give our post from Johnny Marshall a read. You can find it here: Purchasing A Townhome- Good Or Bad Idea?
When hiring moving services, carry out intense research to avoid choosing the wrong movers. Your items are life-long investments, and if you make a mistake in hiring moving services, you may end up with irreplaceable memories. With the number of moving companies increasing by the day, it is inevitable to have unprofessional movers and scammers. Therefore, the only way to avoid losing money or your belongings is by having s thorough screening process.
Weather is a factor to consider when you are planning to relocate because it affects loading, unloading and transporting your belongings to a new home. Normally, summer is the busiest moving season of most people due to favorable weather. However, due to the high demand of moving services, professional movers cannot be able to handle the workload, and they give scammers an opportunity to exploit homeowners. According to Linda Darr who is the president of America Moving & Storage Association, most frequent scams involves money. This is because, most scammer movers are out there to make money either by overcharging or holding your items hostage claiming for more money.
Unfortunately, most homeowners have a connection with their belongings, and it is better for them to pay the money rather than lose their items. Hence, most people spend the money to have their items delivered or unloaded from the load truck. One problem in handling such cases is lack of licensing and insurance covers from the movers. Also, failure to have a written agreement on the quote makes it complicated because there is no supporting document in the claim. You will come to find out that police department is reluctant in handling such cases and since it is time sensitive, most people give up and pay the money. Although AMSA can help you negotiate if you contact them when the problem arises, they may not guarantee to solve the problem.
It is all lies with the homeowner during selection process. You’ve to be very considerate and keen while hiring a moving company. Look out for the red flags such as very low rates, the mover asking for a large down payment, the mover refusing to offer an onsite estimate or failing to agree on a written agreement. When hiring a mover, look out for the following signs:
Most people who look forward into owning condos may fall into real problems in future if they don’t know what to expect. A lot of people have confessed to being tricked into buying a condo smaller than they anticipated or even waiting for long before getting the keys to the condo they’ve bought. It is not easy to get a good deal when buying a condo, but you need to get your act together and do some research.
Being patient is a virtue which can land you in a deal of a life time. Ideally, if you rush into making decisions without making important considerations, you may end up being wrong. It is very important to take note of everything before buying a condo. This article will help you understand common condo buying pitfalls and how to avoid them. Therefore, it will help you know how you can make the right choice to get the best deal to be satisfied.
Let‘s get started.
Join a club
If you want to buy a condo, you need to have enough money to do it. It is not easy to raise such kind of money especially with the basic needs we have. Therefore, it is advisable to join a club to shape up your finances. These clubs help you to curb spending, boosts the amount of money you get and lowers your tax making you maximize your income. If you do this for a period, you will probably have saved enough to enable you to buy a condo.
Make sure you are comfortable with condo lifestyle
Before making the decision to save towards buying a condo, think about what you want to see whether you suit in such lifestyle. Some people love living separate lives without much interaction with other people while others love sharing facilities and amenities too.
In a condo, there are set rules and regulations to follow, proximity to other people, shared common areas and condo board politics. You should be able to cope up with all that and much more such as irresponsibility. To avoid making your life harder or unbearable, make sure you can be able to live in a condo before buying or starting the process of buying one.
Decide on either buying pre-owned or Pre-constructed condo
You can either buy a condo which is already built and had been owned by another person prior (pre-owned), or you can buy a pre-construction where it has not already been built.
Re-sale condominiums are better as you see what you are buying before you even buy the property. You also have varieties to choose from depending on the factors you are looking for e.g. their location, type of materials used, the design of the condo, size and color of the condo among other factors. It’s the best approach to use because even if the condo needs some renovations or additional work, you can easily get it done you.
On the other hand, if you decide to purchase pre-construction condominium, you will be getting into the unknown. Even though you can look at the sketches in the sales office, you won’t be knowing how the condo will look like when finished or its exact size. However, you will have the advantage of owning a brand new condo which has never been owned by anyone else.
Research the builder
If you want to buy a building that has not been completed yet, you can check the manufacturer online to see their previous projects and whether they have any complaints about their artistry. However, it is a resale, you need to find out the builder and whether they are in business to see their credentials. Also, check whether the company is financially stable or still in business to understand your situation. After getting all the information you need, you can then go ahead and buy the condo if you are contented with the information given.
Another way of knowing a lot about the builder is getting feedback from people who have bought units from the same builder using whichever means. If you get negative reviews or if a lot of units have been sold, you should be very concerned as it’s not a good sign. And finally, before making the final decision, hire a home inspector. The inspector will do various inspections to give you’re the current condition of your prospective home before you even buy it. However, you should not hire inspectors recommended by the real estate agent since they may be working together and hence inspection would not be genuine. Hire an independent inspector instead.
Work with people who have enough experiences with condos
Among the people, you should work with a realtor, a mortgage broker, a property management company and a lawyer. A realtor will help you with getting a good condo, land you a good deal and help you with the buying process because it’s their area of expertise. On the other hand, if you get a mortgage broker, you will have enough knowledge about the mortgage you qualify for before you even start looking for the condo. This will ease your search and get a good deal in the long run.
If you have a good real estate agent, he or she will ask the right questions, look for the best deals, most appropriate condos, etc. because it is what they do. However, you should be cooperative by giving him or her all the information you need about your condo: location, the size of parking you need, an average cost which you can afford, where you want to live (high floor or lower floor), etc. With all these information and the much he or she knows the market, you will probably have a good deal. Lastly, you should have a good lawyer to review the offer you want to buy and to make your financial arrangements. As a matter of fact, don’t think you can buy a condo on your own.
Measure your unit
Before finalizing your deal, you should get a tape measure to get the real measurements of your unit to make sure it is large as advertised. Sometimes, what is advertised is very different from what you get. To avoid being frustrated after finalizing the deal only to find out that your condo is small and cannot fit your stuff, measure it beforehand. If you find a big difference, don’t buy the condo as it shows unprofessionalism, untrustworthy and maybe in future, you will have more problems too.
When you follow these tips, you will probably get yourself the most appropriate condo at a fair deal. If by any case you are not sure what to do, don’t hesitate to ask questions from professionals to avoid making bad decisions which could be costly with time.