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! ūüôā

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If Real Estate Experts Knew Anything, They would sell Everything Now!

If Real Estate Experts Knew Anything, They would sell Everything Now!

Why does everybody have an option about what is going to happen in the real estate market in Canada? It is a story that is not going to go away. An abundant of money tied up in the Real Estate. Every facet of life is intertwined with Real Property.

I must read or talk to somebody about their opinion about what is going to happen everyday. It doesn’t matter how many houses you have sold, or how many projects you’ve backed, or how long you’ve bought or sold Real Estate, the truth is, nobody can predict any future, and nobody knows when or where anything is going to happen. If they did, they would rule the world. So far, nobody has ruled the world, especially in Toronto. They are just getting lucky until this point.

A good prediction of the market is that the pendulum sways in both directions, and will probably again, or it might not. There are many indicating factors for it dropping, but until this point it hasn’t.

Think about it, if anybody knew when and where the market will drop, they would sell every single piece of Real Estate they own, especially now at this high price and wait for it to drop. They would then buy it again when the prices are low. So far, everybody is holding on to their houses and condos, even investors and Real Estate agents. Why, because nobody will know what happens until it happens.

If somebody says they know what is going to happen, they are liars, and its their bullshit ego talking.

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Mild Winter Will Lead to Increase Sales

Mild Winter Will Lead to Increase Sales

So far here in Toronto, we have not really seen a heavy downfall of snow like we saw last year. If this year turns out to be a mild winter like we saw a few years ago, we may see a mini boom in Real Estate, more so than we have already seen this year.

While there may be a heavy winter in our future, we have yet to see that. A few conditions that may lead to increase prices and furthermore bidding wars to come.

1. Mild Winter:

People will sell their places when it is not as cold. When people are freezing they don’t feel like searching for properties. If the temperatures are bearable they will call their local agent and go see properties.

2. World Climate:

The world is on edge as of late, and one place that has been seen a refuge is Canada. Foreign investment is huge in this country and we may see more of that since investors around the globe will jump on the possibility of refugees, immigration and students coming into this country.

3. Low Interest Rates:

Interest rates continue to stay low, there is no indication of any major movement to higher rates.

4. High Demand:

If there are only a few properties available, there will be higher demand. In the past few years there has been a jump in demand after Christmas, and this year seems to provide the same atmosphere for a mini boom in January and February.

5. Investors Galore:

It seems like everybody is looking for a huge investment property. Investment in the city of Toronto is ripe and ready to steadily head up. I have seen no calming of investors and more investment groups setting up shop in Toronto and Ontario. This trend is going to continue and everybody is looking for that investment property.

Overall it has been a banner year for Real Estate, while we also get those crazy reports from TV and newspapers that interest rates may head up and real estate is going down, but I believe we will hit another year of craziness starting in January. If you’re looking to sell your property get it ready now.

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A Lot Of Chatter: Prices Going Down

A Lot Of Chatter: Prices Going Down

Its seems as though everyday & every year around this time of year, there is a report that the prices of Real Estate in Canada will go down significantly. Last week there were reports from the money sector of the government that they think that Real Estate is over inflated by 30%.

Government: It’s funny that they thinks that because inevitably it is the government that controls the prices of Real Estate in Canada. They are the ones that have CMHC, and control their lending policies. They are the ones that control the interest rates and hold them low for so many years. They are the ones that control the policies regarding foreign investment in our country. Finally they are the ones that control the big banks.

Something has Changed: The oil prices have plummeted this final quarter of the year. The Canadian dollar has plummeted as well. The two factors which one is being championed by the average consumer, will inevitably drive the economy down, hence the dollar going down. The last time we saw the oil and dollar amount go down this much was in 2008, when the financial crisis exploded.

What Goes Up, Must come Down: While most of the country has slowed down, the major drivers of the economy have stayed relatively high. The last to dip a bit is Vancouver & Toronto. Alberta has slowed, and this is inevitable because the area is so reliant on the oil industry now.

Early Predictions for 2015: The interest rate will jump to 1% higher by the end of 2015, going up a .25 each quarter. The government will introduce tougher approvals for CMHC. The government will introduce new policies to slow the growth of Real Estate and bring the prices down. The prices will eventually slow down but not in Toronto & Vancouver, there is too much demand in those areas, but the suburbs will go down significantly in all of those areas.

Get Ready for Another Year of Price Jumps

Get Ready for Another Year of Price Jumps

rising-house-prices-toronto1

With One More Month to go in 2014, and another year of record increases in the GTA, get ready for another year of price jumps in Toronto and surrounding areas.

If you are looking to buy a place in Toronto, and surrounding areas get ready to pay more. If you are selling in Toronto, you will get record prices for your neighbourhood.
Now, these predictions always come with a disclaimer. Think of the CN tower as sort of a centre for the most money, and going north east and west, as a gage for properties to not get the same amount. The closer you are to downtown, the more your percentage will go up. The farther, well you get the idea.
With all this talk of record sales in Toronto, please don’t get your head too far up your keister to understand that every sale and property is different. There are exceptions to gains and neighbourhoods. Not everybody wants to live in high areas of crime in Toronto.
There have been reports that interest rates are going up a bit in May and that could cool the market a bit, but no matter what, there is no more room in Toronto, and a lot of Traffic getting worse coming into the city, and a lot of immigrants moving into the area. So get ready to pay if you’re moving downtown.
The Bubble is Not Bursting..  Here’s Why!

The Bubble is Not Bursting.. Here’s Why!

bursting a bubble

 

Everybody I speak to, says a few things to me since I’m a Real Estate Agent. People always ask “How’s the Market”? Its always good! They ask about bidding wars. They ask about crazy prices. I’ll then tell them an¬†anecdote about my recent travels in Real Estate and then I always get the bomb from them. “I’m waiting for the bubble to burst so I can get a deal.”¬†

So far since 2008, nothing has fallen. In fact if I told you the prices of ten property prices today and went back in time to 2008, you would buy all ten and tell your brother, mother and sister to buy ten as well, In Toronto & GTA strictly speaking.
While the 30-40 year trends do go up and down, and they will go down a bit, and maybe yes one day crash, its not here today. Don’t hold your breath.
The next thing that people say to me is, I’m not sure I want to invest in a condo, there are too many. So yes there are a lot of condos now in Toronto and GTA, but heres the thing, like anything, houses, apartments, cars, dogs, girlfriends, wives, stores, agents, lawyers, there are a lot of, there are a lot of good ones, and a lot of bad ones. The bad ones will die and go bad, and the good ones will be hot spots and everybody will want to live there.
The condo market, like the housing market in General in Toronto is not going to burst for a few reasons. The main thing is immigration. There are two places that people go when they come to Canada. Vancouver and Toronto. Yes some like the wilderness and will travel to Quebec and places like that, but the majority will come to Toronto. When they come to Toronto, what are they going to live in? A house? The average for a house in Toronto is a million dollars.
When my parents came here, they came to Toronto and bought a detached, and they bought it with their siblings. Really those days are over, many people coming here come for independence, and condos are the step in to the housing market here.
Here are some stats from Stats Canada:
“The Greater Toronto Area (GTA) is projected to be the fastest growing region of the province, with its population increasing by 2.5 million, or 39.1 per cent, to reach over 8.9 million by 2036. The GTA‚Äôs share of provincial population is projected to rise from 47.6 per cent in 2012 to 51.5 per cent in 2036.”¬†If you want more stats click here.
That stat is crazy, 2.5 million is double of what it is right now, plus all the people having sex and making babies. The last time I checked people are not going to stop having sex.

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