Will the Market Bounce Back This Year?

Will the Market Bounce Back This Year?

The Liberal Government both at the Federal and provincial level as well as Mayor of Toronto seem hell bent on bringing down the prices of real estate to make it affordable for everybody. In some imaginary world this is going to stick. The problem is with their plan is that there is simply too much demand and too many people who need housing here in Toronto. All the regulation and all of the taxing might scare people away for a while but in the long term prices will bounce back. Here are the reasons why the prices will not stay low too long.

1. Interest rates: The interest rates are simply too low. Unless the rates go up drastically, and I mean drastically, than the interest rates are low.
2. Demand: Too many people want to live in the city and the GTA. We live in one of the best cities in the world and people want to be as close to it as possible for so many different reasons.
3. Low Unemployment rate: The rate is relatively low in the GTA compared to other countries and provinces. There are many jobs and people who can afford to pay for houses.
4. High Immigration rate: There are a lot of people coming here for school, jobs and investment into the country. People want to live here.
5. Domestic & Foreign Investment: Despite the government trying to sway foreign and domestic investment with taxes, there is high investment from everybody in the GTA and outskirt cities. Even with the government wetting their beaks at every level of investment, there is still money to be made with regards to rental and tear downs and so on.
Even with the announcement of the interest rates going up, and will go up in a few months, this still will not shatter the market. As you can see, the market in Toronto and Vancouver is bouncing back, and with whatever scheme they come up with, it would be only a matter of time when prices bounce back and continue to sky rocket in these two markets. As for the rest of the country, the federal policies will hurt those already slow markets.

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

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 estate at...

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

Are You Ready For Your Information To Go Public?

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have a right to it. I get it, but it doesn’t necessarily mean that it is right. The question is, do you want to have all of the information out there, while everybody else will have access to your information?

Recently The Toronto Real Estate Board lost an appeal to the competition board, which would allow real estate companies to post your information on websites. What information? All of it. Information regarding the sale of your house, how much you purchased it for, information about the history of your house sales, and information regarding how many purchases or investments you have.

Now many people will say that why is it fair that only real estate agents have access to this information? Well for one thing, we pay for it, but lets just say that the information is released as it is in the U.S., what would exactly happen? One thing that will happen right away is that corporate companies will be able to see what you own, and will be able to sell that information to get more information about you. The next thing that everybody will know is how much you sold or bought your house with. I’m not sure about you, but I don’t want my nosey boss telling me hey, “I saw you own two houses in Toronto and Mississauga” you’re not getting that raise!

Have you heard of Zillow Zestimates, its the worst thing to happen to Real Estate. Its where Zillow a huge corporation, tells people what your house is worth based on public sales information available. Zillow is constantly in court because their Zestimates has under valued a house, and houses sat on the market due to their value given, which doesn’t even know what upgrades or work has been done to the house.

Here is what is the official update regarding this case taken from TREB.

December 21, 2017 — The Federal Court of Appeal has today issued an Order directing a stay of the Competition Tribunal’s Order of June 3, 2016 pending the determination of TREB’s application for leave to appeal that order to the Supreme Court of Canada. Today’s order will ensure that the personal information of home buyers and sellers remains safe while the Supreme Court of Canada decides whether to hear TREB’s appeal.

Let Me Know what you think about your information getting out there? Are you OK with this?

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

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 estate at...

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

Buying a New Build From A Builder Sucks

Buying a New Build From A Builder Sucks

I’ve had enough of these builders and you should really beware before buying a new build.

Over the past 10 years I’ve been selling Real Estate, I’ve had one bad situation over another with my clients. The past two years, I’ve reached my limit and I’m here to say don’t buy a new build, you’re better off buying something that is built already and let somebody else deal with the stresses that come along with closing a house.

I will play devils advocate and say that if for some reason you find a reputable builder and have dealt with that builder, than you could actually make some money, and have a great experience. On the other hand, in my experience, I have been seeing one bad situation over and over to warrant that most builders are not doing a great job and really screwing the end user you at the end. Here are all the things I’ve had to deal with my clients that should not be happening.

1. Closing Cost: While most lawyers will put a clause to cap certain costs, (which I make sure that are in there) There are builder levies that can reach thousands of dollars. I recently had clients see closing costs from the builder hit over $10,000 for a 1 plus den & $19,000 2 bedroom plus den. My clients were not happy and were scrambling to find money.

2. Delays: I’ve have not seen a condo builder close on time. I believe they are allowed to delay up to three times. I have also seen a builder not even start a project, and it has been 3 years and there is nothing anybody can do about it. Also deposits, and occupancy fees must be paid during these delays. These delays can mean a lot of things, no payment to your mortgage, and no increase in value if the project altogether is delayed.

3. Not being able to rent or sell: Most builders are not allowing you to rent or sell units until the final closing. If you want to sell, you will have to pay huge assignment fees. There goes your profit. I had a builder tell my client a few years ago that he couldn’t rent his unit. So he got the unit, and was planning on renting it, then it had to sit empty until final closing, which was months. Think about it!

4. Workmanship: One of my clients recently purchased a new build house that was so poorly constructed that it had to be renovated when it was moved into. I couldn’t believe the work, with my family being in construction for so many years. (Don’t get me started on condos) Also good luck in getting these builders coming back to fix anything. They have up to a year while you look at your wall which is crooked.

5. New development cheaper than your unit: A few years back, I went to a new phase launch. The builder released the prices and I was astonished when the builders prices were 20% cheaper than the last phase. I spoke up at the meeting and said, hey, we are selling a unit in phase 2, how can you sell it 20% cheaper, now my client can’t even sell the unit. They did not answer me. The truth is, the builder wanted to get his units sold quick and didn’t care about the previous buyers or the market in that building.

6. Assignment fees: Builders can charge whatever they want for assignment fees. They can typically say no to any assignment fees. What if the mortgage rules change and you don’t qualify anymore since you are waiting for two years for this condo to close?

I can make this list 10 pages long, but I will stop there. While I might sound like I’m complaining, the honest truth is, I want my clients to succeed, make money and not get hit with any surprises. While many agents out there have great stories, these experiences are mine, and my opinion. I’m sure there are great stories of people buying cheap new builds sitting on it for two years, and making a ton of money. Yeah that is out there, but my clients are just trying to get ahead and buying that first investment or first property. Those things have not been my experience, so my advice to you is… Call me, let’s talk! 🙂

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

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 estate at...

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

ADDITIONAL COSTS WHEN BUYING A HOME

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you’ll encounter. Here are other possible costs you need to consider:

 

Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you’re going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.

 

Appraisal fee: Lenders typically loan a percentage of the home’s purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.

 

Land survey: The lender may ask for a current survey or certificate of location before signing off on the loan. There can be a substantial cost for having a new survey done on the property.

 

Deposit: A deposit normally goes with the formal offer to purchase.

 

Insurance: The lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership.

 

Title insurance: Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars.

 

Application fee: Some lenders will pass on the cost to process your application. These fees vary and some lenders will waive entirely if you have other accounts with them.

Mortgage broker’s fee: If you use a mortgage broker, a fee may be charged to arrange a mortgage on your behalf.

 

Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you’d want to know before you move in.

 

Legal fees: You can save some of the legal fees usually charged by the lender if your lawyer draws up the mortgage. You’ll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.

 

Land Transfer Tax: There is a provincial Property cash grab the province charges you to buy a house. If you live in Toronto, they want to get their greedy hands on your life investment as well. So If you buy in Toronto there is two taxes and one outside of Toronto.

 

HST: Resale (used) homes are exempt from HST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence. HST also applies to most of the services provided in completing the real estate transaction.

 

Other costs: These include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.

 

Real Estate Fees: Typically the Seller on paper is paying the fees for Real Estate and it is incorporated in the sale of the property. Some sellers refuse and want the buyer to pay for their own, and this is where you must incorporate that into your purchase price.

 

Condos: Builder Closing Costs, Condo Reserve Fund, and more. As An Agent the Builders of this generation hits you with a document not even the lawyers can understand, but one thing they do have in there is that they can charge you whatever they want at closing to make a few extra bucks in their pocket. They will charge you for the their closing costs with the city and they will charge you for God knows what. Anyway, know that you will need some extra money in the bank come closing time. Your lawyer can help and cap fees, but you will still be charged something. Bet on that.

 

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

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 estate at...

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

Over Rated Home Features

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are:

1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson. Dyson makes some of the best cordless, or corded vacuums on the market. Get out of the 80’s and get one of these. They clean better, and you don’t have to carry a snake around the house scratching your floors.

2. Stainless Steel appliances: Yes when they first came out, they were flashy, and they still do look better than cheap white appliances, but, its not new. You can buy nice ivory or black or other colours now.

3. Dining Rooms

Separate Dining rooms or “Show Rooms” I like to call them are a thing of the past. Nobody really uses them, and it generally a waste of space, you use once or twice a year. Yes, there are a few people that use them regularly, but most people don’t. Look for a house with a bigger kitchen, bigger living area, or open concept.

4. Huge Frontage

Who uses the front of their house grass? You want the space to be in the backyard. Look for houses which are bigger in the back, and minimal in the front.

5. Gyms or amenities

For those that live in Condos, gyms and pools and amenities are rarely used. Most gyms in condos suck and are small, and most don’t use the pool or amenities. Its better to find a condo that doesn’t have these so the fees are cheaper and you can spend your money on a proper gym.  

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

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 estate at...

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

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