I’m waiting for the market to slow down…

I’m waiting for the market to slow down…

Since I’ve started selling Real Estate about a decade ago I’ve heard those words a million times, yes, that’s right. A million. I heard that from my clients and people stopping me on the street to talk about real estate. I heard it in the bathroom, I hear it in the elevator, I hear experts saying to wait.

I live in Toronto, and I’ve got news for you, its not dropping. Not anytime soon anyway.

If you look at statistics the market goes up and down, so the market technically might slow down a bit or the powers that be might implement a new rule that will stagnate the market a bit, but if you live in the GTA, the market is not dropping and this is why:

1. Too many foreign buyers
2. Vancouver potential foreign buyers are coming to GTA now
3. Low interest rates
4. Healthy Economy
5. No Inventory
6. Prices are cheap compared to other countries
7. Low Dollar
8. Low unemployment
9. Huge Population/Huge Demand
10. Easy to Get a Mortgage

While there are more factors that are involved and other factors that can slow down the growth and prices, these are pretty attractive factors that have been driving this market on an upward scale since 2008.

Now if you are outside of the GTA about an hour to 2 hours away, you are probably not seeing the same time of growth that Torontonians are seeing. That all makes sense. There isn’t enough population in your town to drive the prices up. Not enough people to bid on your house, and probably lots of land to just buy it and build your own house on. Its all about supply and demand, and right now, for people who live in Toronto and around, there is a lot of demand and not enough supply, and its too easy to afford those prices as well.

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Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

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Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

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Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

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Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

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Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

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The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

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The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

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How to Avoid Buyers Remorse

How to Avoid Buyers Remorse

Scenarios that Bring on Buyers Remorse

Remorse sometimes kicks in after we start talking to others about the new house.

Discussions with family and friends.

They usually mean well, but it’s not uncommon for family and friends to question your choice and what you paid for it, especially if it’s your first home purchase and they are seasoned pros.
But do they know the market? It may have been years since they bought a property themselves, and if that’s the case they probably aren’t in touch with current prices. They might even live in another part of the country, in an area where housing costs a fraction of what you can expect to pay at your location. And let’s face it, parents rarely think a house is “good enough” for their children.

Continuing to look at houses.
Big mistake. Stop looking at other houses unless you feel the contract has a good chance of falling apart (you think the home inspection might uncover serious repair issues, etc.).

Real estate agents who offer no guidance.
Some agents do not guide their buyers through the closing process. Questions and doubts pop up and the agents aren’t around to provide answers and assure their buyers that what they are feeling is normal. Unanswered questions can put buyers in a panic mode, especially when it’s their first home. Panic leads to doubt–and ultimately buyer’s remorse.

Contact your agent and others involved in your closing whenever you have a question. It’s their job to help you.

Your own doubts.
Nothing in life is certain, and we tend to think about the uncertainties even more whenever we make important commitments, dwelling on the negative what-ifs instead of looking at the positives.

Here are some “Bites” in ensuring that you made the correct decision:

1. Bring out your list of criteria and match the house you bought to that.
2. Does the house feel right compared to the other ones you looked at?
3. Did you find many houses that met your needs or was this one a rarity?
4.If you can back out of the contract, is it realistic to think you will find a house that’s “better?”
5.What was special about the house just a few days ago and how has it changed–really changed?

Analyzing the facts that lead you to the home will help you sort out your feelings about the contract. Was it truly a poor choice or would you be nervous moving forward on any house?

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I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Tips for Investing in Condos?

Tips for Investing in Condos?

I have been receiving a lot inquires in the past few weeks regarding investing in condos. Both have been from condos either downtown, or in the Mississauga area. I thought I would share some tips to help you if you were considering investing in a condo.

1) If possible buy before it is built.

This is great because you can put some money down while the property and condo value go up. The longer the wait, usually the better it is because in the G.T.A., values have been going up, not down on condos. If you cannot sit on your money do not go for this plan. Wait till something is built. Usually condo corps are delaying moving in 2-3 times.

2) Make sure you see what is included in the fees.

I’m sure 98% of people will examine this, but I do get a few people that are shocked after they buy a condo to find out certain things or amenities are extra. Even after you figure out what is included, you need to understand what is not. If you buy a condo downtown without parking, that is usually a cost of 20-30 thousand extra if you need a parking spot down the road. These extras need to be calculated to the purchase price or monthly cost.

3) Find out how much the same unit rents for.

You want to ask your Realtor to find out what the recent comparables are in the building you are considering. The next thing you need to ask yourself is the rent you will receive worth the investment after you pay the expenses and mortgage. Depending on what your down payment is, you should have a few hundred dollars left. If you don’t you could be taking money out of your pocket every month to cover the mortgage. This is not a good situation.

4) Location Location Location.

I’m not the first nor the last to say this. A highly desirable area is best. It might cost more but it will attract renters easier and be easier to sell down the road. If you have problems with your tenant leaving then you can jump right into another lease. This is ideal. You don’t want to get stuck with a mortgage you don’t want.

5) Do you homework.

Make sure you ask for credit checks, references, post dated chqs, and as much as you can get from a potential tenant. Do not just interview a tenant and go on feeling. Sometimes people are serial renters. It is hard to kick out a family at Christmas time when they haven’t paid the rent in three months. Take my word for it.

6) Talk To Residents if older building

The best advice I could give you is go to the building and talk to some people that live there. Go up and down the elevator, and ask some questions. This is the best thing to do to get information. Tenants and owners will tell you everything about the building. Talk to the concierge and the security. Be nice they will tell you everything.

 

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Problems that can happen when closing a house

Problems that can happen when closing a house

Here are a few Things to consider that can go wrong from the beginning to end of trying to buy a house.

1. Financing:

This is a big one, make sure you get pre-approved and know how long that pre-approval is good for. Just because you have a pre-approval it doesn’t mean the bank will finance the house you are buying. If you purchase a house and it is massively over priced the bank will not take that investment with you. Be careful in over bidding and know your comparables.

2. Inspection:

The home inspection is great but it is not the final word. There are always things that the inspector cannot see, especially if the basement is finished. Look for cracks in the foundation in and outside and in the attic. You may find something during one of your measuring tours of the house pre-closing that everybody missed. Use this time to further inspect the house.

3. Title:

The people selling the house cannot sell the house. The seller is divorced and either party does not know the house is listed for sale. When it comes down to closing you cannot close the house. This occurrence happens more than you think.

4. Not enough money:

There are some liens on the house and the equity is maxed out and the deal cannot close. It happens.

5. Second Guessing:

The sellers realize they undersold the house and want more money and will not give up the house or try to amend the deal. This happens, and you will have to get your lawyer involved. I know you think a deal is a deal. Sometimes you get crazy sellers that think that they should have sold for more and will try to swindle more money out of you and will not co-operate with clauses, or will completely remove appliances or trash the house. This could take some litigation later but for now it sucks because you just want to move into your house that you bought fair and square.

6. Closing date:

You agreed upon a day and they can’t close on that date because their new house is not ready. Usually this could be a deal breaker. Some people will try and change things later on in the deal to suit their needs.

As you can see there could be many problems that can go wrong with closing a house. There are many more. Make sure you have a good lawyer, home inspector and Real Estate agent that will make sure you eliminate as many extra circular activities by sellers as possible for a smooth close.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Learning to Love a New House

Learning to Love a New House

There are going to be an abundant of new home owners this February. With all of the mortgage laws changing, there are many people who will not qualify after the changes therefore will buy a new home before the rules change. Moving is said to be a stressful time because of all of the new scenarios people must face when moving and negotiating a property.

Here are a few Items to help you in your move and to get adjusted to your new home.

1. No matter the circumstance, think of a new home as a fresh start. Out with the old and in with the new.

2. Throw a party. Throwing a goodbye party is a great way to get family and friends into your old house one more time. Once you move into your new house you can have the second part of the party.

3. Bring a few items that remind you of home, don’t throw out everything all at once. Bring a few mementos of your old home, if you intend to get rid of everything, do it a step at a time so you can adjust.

4. Paint the rooms the same colour. I know you are trying to start something new, but if you really love your old house, and were forced to sell, use the same paint as the old house. This will keep familiarity in your mind, when coming home at night.

5. Say Goodbye to your old house. Write a journal with pictures of your old house. Write about all of the great times you had in the house. When you get to your new house start a scrap book of the old and new house.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

Is Real Estate Investing For You?

Is Real Estate Investing For You?

I have clients and friends who approach me regarding investing in Real Estate daily. There are many types of Real Estate Investing from REIT’s, commercial properties, industrial properties and of course basic residential properties. I am approached about residential properties the most.

For most people who are looking to invest, residential investment is an easy introductory. It’s very simple; you buy a property and rent it out. You collect your monthly rent and it usually pays the mortgage, bills, taxes and any improvements needed. In an ideal world this is how it works and eventually you pay off the mortgage and you have capital to invest in another property. After 10 or 15 years you can continue to flip houses because you have built up the funds to invest in more properties and so on. If you’re enthusiastic with your money you can pay off these investments faster and start to move on to much bigger projects. You can then start to invest in land, or houses which are ready to be torn down or renovated.
At this point you need to look for builders, contractors, and people who can build on the land or tear down a house and rebuild a house. After you start to see your houses built and sell for a profit after paying all of your expenses you can start to invest in apartments and condo buildings. You can also buy shares or find other investors. Since you have been investing in properties for the last ten years you will have a great relationship with mortgage brokers, banks, and private funds and also have some money saved to put into bigger projects.

These bigger projects involve commercial properties which could include strip malls, condo development or industrial properties. The other options include investing in a REIT’s.

Below is two paragraphs from an article from investopedia.com written by ANDREW BEATTIE in his article, “How to invest in Real Estate”. He explains REIT’s:

Real estate has been around since our cave-dwelling ancestors started chasing strangers out of their space, so it’s not surprising that Wall Street has found a way to turn real estate into a publicly-traded instrument. A real estate investment trust (REIT) is created when a corporation (or trust) uses investors’ money to purchase and operate income properties. REITs are bought and sold on the major exchanges just like any other stock. A corporation must pay out 90% of its taxable profits in the form of dividends to keep its status as an REIT. By doing this, REITs avoid paying corporate income tax, whereas a regular company would be taxed its profits and then have to decide whether or not to distribute its after-tax profits as dividends.

Much like regular dividend-paying stocks, REITs are a solid investment for stock market investors that want regular income. In comparison to the aforementioned types of real estate investment, REITs allow investors into non-residential investments (malls, office buildings, etc.) and are highly liquid.”
Here are a few simple laws for the amateur investor to follow:

Law #1:

Buy when the market is low and never sell. If you must sell then sell when the market is high. Have you noticed there are not too many commercial properties for sale?

Law #2:

Buy when the interest rates are low. You want to pay as low as possible to invest in this property.

Law#3:

Commercial Investing is better than residential. There are too many laws to protect residential renters. Whether or not this is a good or bad thing is up for debate. Not receiving a rent cheque for 6 months can mean foreclosure for a person investing on a tight budget. In the commercial property world if your tenant doesn’t pay you, you can lock the door after 16 days. Typically a commercial tenant will pay you because they know if they don’t pay you they are out.

Law #4:

Buy condos before they are being built. If you like the condo markets buy something that is not built yet. You will see a nice return the day you get your keys. The longer the close the better it is for you and your investment. While the property value goes up around the condo, you will reap the benefits of waiting on your investment to finish building. After a few years sell it. Start the cycle again. When the fees are getting too high you know it’s time to sell.

Law #5:

Do your homework: If you decide to sign a lease agreement with somebody, do background checks, credit reports, past landlords, bank statements, post dated cheques, and so on. Do as much research on your tenant as possible. Why did they leave their last place? The last thing you want to have is someone who is a tenant who just moves from house to house without paying any rent every three months.

Law #6:

Get advice: Get information from everybody you can think of about your investment. Whether or not you think you know what you’re doing, get a second opinion.  Speak to Real Estate agents, accountants, lawyers, property managers; take a course do what you have to do to educate yourself. The one thing I have realized in this world is that you never stop learning. You can know everything and not know anything. Somebody will educate you regarding your investment. It is not embarrassing to ask a few questions or make a few calls; it is worse to throw away your life savings or get involved in a lawsuit or have the municipality down your throat because you were too proud or lazy to ask some questions.

I hope these laws get you started and yes I know there are many other rules or laws to follow but these are just a few to get you thinking and started. Happy Hunting.

READ RECENT BLOG & ARTICLE POSTS BELOW

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing. ...

read more

The Risk of Waiving a Home Inspection

If you put an offer on a house that goes into multiple offers, chances are you must waive two conditions: home inspection, and financing. We will deal with financing next week, but for now lets talk about the home inspection clause. In the 80's there was no such thing...

read more

The Banks Are To Blame For Our “Housing Bubble”

The banks are to Blame for Our Housing bubble. No Really, there is no one else to blame. You could throw the government in there too but mostly the banks. You can blame Realtors for driving up market price. You can blame Owners for jumping on the band wagon and...

read more

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