Glen Godlonton : Latest Blog Posts

Real Estate: Buying Foreclosed Houses

Wed, 18 Apr 2012 21:38:00 GMT

Purchasing foreclosed houses is one of the best options preferred by many bargain home buyers. It is not surprising! According to some reports, a number of foreclosures for sale can be bought at around 27 to 50 percent discounts. You can enjoy great discounts in almost all stages of the foreclosure process including "pre-foreclosures", home auctions, default notice, government "repo" homes and bank foreclosures.

When thinking about going for foreclosures in Canada, make sure to financially prepare yourself to invest in minor or major renovations and repairs. While a foreclosed property is priced under market value, houses that require substantial repairs can swiftly deplete home equity. As an investor, you should engage yourself in due diligence by means of reviewing sales reports, performing home inspections, obtaining property appraisals as well as repair cost estimates to find out the true value of purchasing foreclosed properties.

Finding Foreclosed Properties

So, how can you find discounted foreclosed properties? One good way is attending a public auction. Nearly all properties featured in an auction are sold as to what their current condition is. You should be ready to make full payment within 24 hours once your bid is accepted. Please be aware that once realty has been transferred, you will be responsible for eliminating tax and creditor liens as well as making needed repairs.

Searching for foreclosed short sale houses is another option. These properties are at times in the middle of the foreclosure process. Buying negotiations often occur with the loss mitigation department of the lender. As with short sales, lenders must agree to accept not more than the full value borrowed on the housing loan. Properties are generally sold through the bank or listed through realtors.

The process of a short sale can be a little complicated and lengthy that sometimes it could take up to five or more months to be completed. Purchasers should get "pre-qualified" financing before submitting an offer. Take note that some banks are not accepting offers that are lower than what is being asked unless inspections of the property reveal major problems.

Investors may find a good deal with short sale properties. However, this could not be favorable for investors who are participating in house flipping or planning to utilize the home for renting purposes. Purchasers who are into foreclosures can generally acquire homes at 10 to 20 percent below the appraised value.

One good way of getting the best price on foreclosed properties is to consult private investors who have wholesaling expertise. There are some investment groups and investors who are acquiring the whole bank portfolio that usually comprised of a number of foreclosed properties.

Quick Tips in Buying Foreclosures

When you finally decided to look for foreclosures, it is advisable to educate yourself about the different facets of acquiring properties under this legal process. Many investors who are new in this field are attracted by the low cost of foreclosures without even realizing all the costs associated with repairs or rehabbing a foreclosed property.

Foreclosures, bank owned real estate or short sales at times often require some repair level. As an investor, you should consider taking time estimating the true value of a foreclosure property before you purchase it.

Are you looking for more information on foreclosure process in Canada? If you are, visit http://www.foreclosures-gov.ca/ now!

Article Source: http://EzineArticles.com/?expert=Leonard_Forbes

First-time investor tips

Thu, 09 Feb 2012 16:42:31 GMT

It's been said before, but it bears repeating that the best route for first-time investors is often the route of first-time buyers. Veteran real estate lawyer and author Martin K.I. Rumack outlines the options open to that newbie buyer or someone buying new after a four-year break from the market.

FIRST-TIME HOMEBUYERS – TAX BENEFITS AND RRSP FUNDS

If you are a first-time homebuyer, you may be entitled to certain benefits under the RRSP Home Buyers’ Plan and the First-time Homebuyers’Tax Credit Program.

These benefits are also available if you have previously owned a home but have sold it, and have not owned a home for the previous four (4) years and do not own a home at the present time.

a. First-time Home Buyers’ Tax Credit
If you are a qualifying first-time home buyer, there is a federal credit of $750.00 you can claim against your personal income tax in the year you acquire a home.In order to qualify, neither you nor your spouse or common-law partner (who is defined as an individual cohabiting with you in a conjugal relationship for a continuous period of at least one year, or if they are the parent of a child born as a result of the relationship with you) must not have owned a home in the year of purchase or in the immediate prior four (4) years prior to the year of purchase. You must be purchasing the home for your own and your spouse/common-law partner’s personal occupancy, with that occupancy taking place within one (1) year from the Closing Date.

The tax credit can be claimed by one party, or else be shared between parties to a total maximum of $750.

b. RRSP Home Buyers’ Plan
As a buyer, under this plan you can withdraw a maximum of $25,000 from your RRSP in order to buy a qualifying home in which you will live. Additionally your spouse or or common-law partner can also withdraw a maximum of $25,000 from his or her RRSP to apply towards the purchase of the same property.

A withdrawal for this purpose does not result in tax being withheld from the monies withdrawn from an RRSP. To be entitled to exercise this option you and/or your spouse/common-law partner cannot have owned a home in the four (4) years prior to the year that you purchase the home. You must occupy the home within one (1) year of withdrawing the monies from your RRSP.

These RRSP monies must be repaid over a maximum period of fifteen (15) years from the date you withdraw them, commencing in the second year following that withdrawal date. The prepayment amount must be a minimum of 1/15th of the amount you withdraw; however, no interest is payable on the RRSP funds withdrawn.. The amount repaid can be made in each calendar year or within 60 days after the end of the year,i.e. February 28, which is the same timeframe as that for making an RRSP contribution. Of course, the amount you are liable to repay is not deductible from your income for that year. However, if you do not make the minimum required repayment in any year, that amount will be included in your income for that year.

As an alternative strategy to the RRSP/Home Buyer’s Plan option, you can instead use a tax-free savings account (TFSA). The TFSA program allows a maximum $5,000 yearly contribution to be made into a tax-free account; although the money contributed is not tax-deductible, it can be used to earn tax-free investment income and the funds can be withdrawn from the account without tax liability. Since the program’s inception, if you have maximized your contribution each year, you would now have $20,000 in the TFSA which could be used towards a down payment.

There are various stipulations in connection with the use of a TFSA (such as a minimum age of 18), but there is a broad array of investment options such as mutual funds, individual stocks, Guaranteed Investment Certificates and bonds.

A third alternative is to combine the funds from your RRSP and your TFSA; this is yet another very favourable option if you want to have a larger down payment when purchasing a home and you wish to minimize both the tax consequences and the amount you will have to borrow in the form of a mortgage.

Source: http://www.canadianrealestatemagazine.ca/news/item/1024-first-time-investor-tips

Ask me how to get started on your plan to start investing in your future

First-time homebuyers lean on bank of mom and dad

Mon, 16 Jan 2012 18:16:01 GMT

Billy Lacher couldn’t have purchased his split-level home in October without a little help from an increasingly popular financial institution: The Bank of Mom and Dad.

The 31-year-old New York City firefighter and his wife put a 10% downpayment on the US$285,000 three-bedroom home, but his parents provided an additional US$20,000 (half as gift, half as loan).

Lacher’s not unusual. About a third of first-time buyers in 2011 got either a gift (26%) or a loan (7%) from their families to help finance their home purchases, down slightly from 2010, but consistent with assistance levels seen during the last decade, according to data from the National Association of Realtors (NAR).

But industry observers think the level of parental generosity is even higher, with some giving children money for home purchases so far in advance of a loan application that the gift isn’t disclosed to lenders, or, if they’ve got the resources, buying homes outright for their adult kids and setting up an after-the-fact intra-family loan agreement.

In November, all-cash buys among first-timers hit a high of 13%, according to Guy Cecala of Bethesda, Maryland-based Inside Mortgage Finance, a mortgage industry newsletter publisher and researcher. That’s up from 6% in 2009, when IFM first began tracking it. While the company’s surveys don’t ask about the source of cash, Cecala said that when first-time buyers buy outright, it’s likely their parents who are purchasing on the children’s behalf.

What’s encouraging these all-cash purchases now? Home prices are way down – with the median price in November 2011 at just US$164,200, down 3.5% from a year ago, according to NAR. Mortgage interest rates, too, remain at all-time lows. According to mortgage researcher HSH, the average rate on fixed 30-year loans fell steadily from 5.1% at the start of 2011 to 4.09% in December.

Many first-timers use FHA loans, requiring a 3.5% downpayment or 10% downpayment with poor credit, or VA loans, which require no downpayment, but are eligible only to military personnel.

Indeed, in some markets, without parental help, many first-time buyers wouldn’t qualify for the best rates or even a loan on the types of property for sale. To qualify for loans backed by Freddie Mac or Fannie Mae, borrowers need a 740 credit score and a hefty 20% downpayment or else they’ll pay private mortgage insurance and additional “risk-based pricing” fees on their loan, IFM’s Cecala says. As the government rethinks the role of the two mortgage giants, these tighter lending standards may be here to stay, or be tightened further.

To be sure, many baby boomers want to help. More than a fifth of them have co-signed a home loan for an adult child or given a gift or loan to help them buy, according to a September survey by Better Homes & Gardens Real Estate and Research Solutions Inc. More than half of those earning at least US$75,000 said they wanted to help their children finance a home purchase.

While this is all good and well, parents need to be mindful of IRS “gift tax” rules on gifts of more than US$13,000, and lenders may require signed documents from the parents guaranteeing that the money is a gift, not a loan. Under IRS rules, each parent may gift up to US$13,000 per year to a child, for a total of US$26,000. Each parent may also gift the spouse US$13,000 apiece, for another US$26,000, according to Rich Arzaga, a Certified Financial Planner and CEO of Cornerstone Wealth Management in San Ramon, California.

In the case of an intra-family loan for a home buy, the borrower is supposed to disclose to the lender that they are getting a loan, and the lender will then factor the future loan repayment into the borrower’s debt-to-income ratio, impacting their borrowing limit, according to Timothy Burke, CEO of Norwood, Massachusetts-based National Family Mortgage, which helps families create and document intra-family loans.

With loans, Burke advises parents and children to work with an outside party to draw up a formal loan agreement and repayment plan, and to record the loan locally as an added lien against the property. Doing so makes the adult child accountable but also turns the interest on the intra-family loan into one that’s tax-deductible as mortgage interest.

Cornerstone’s Arzaga generally discourages parents from helping their offpsring buy on the grounds that the parents may be doing a disservice to both themselves and their kids, especially if the kids aren’t ready to manage home ownership.

From a financial perspective, he says, parents may see more benefits from gifting than loaning money. On the gift front, since it’s unclear whether the floor for which estate taxes apply may drop from US$10-million now to US$1-million in 2013 – Congressional decisions are still forthcoming – some parents may want to gift their children money now to reduce future estate taxes.

Loans to kids, especially if converted into real estate liens, have fewer financial perks for parents, he says.

“Loaning money to children generally isn’t meant to be a financial decision,” he says.

Because interest that parents receive on loan repayments from kids is taxed as ordinary income, parents will pay from anywhere from 5% to 35% (depending on household income) in federal taxes, as well as state taxes, Arzaga notes. Since most parents who can loan money to kids are in higher tax brackets, this means they may be looking at paying the IRS 40 percent on every dollar of interest they get from their kids’ repayments. If parents are funding the loan with money otherwise earning low interest (say, in savings) they may make more in interest even with tax impacts. But generally, Arzaga says, loaning to children carries high risks relative to other investment options.

For parents like the Lachers, the decision to help a grown child buy is about market realities, and helping a relative gain favourable financing.

“This is the time to buy,” says Theresa Lacher, Billy’s mother, noting that her in-laws, too, had loaned her and her husband money to buy back when they were 25. “But buying a home is still expensive.”

By Jane Hodges, Financial Post

The author is a Reuters contributor. The opinions expressed are her own.

Facebook Threatens Lawsuit Against Mark Zuckerberg

Mon, 09 Jan 2012 12:28:00 GMT

By: http://www.huffingtonpost.com

First the Winklevoss twins sued Mark Zuckerberg. Now, it looks like Facebook is poised to do the same.

Facebook is threatening to sue Mark Zuckerberg, an Israeli entrepreneur who recently changed his name from Rotem Guez to "Mark Zuckerberg," according to Zuckerberg's site MarkZuckerbergOfficial.com.

"No it is not a joke," Zuckerberg wrote in an email to The Huffington Post. "I am now legally Mark Zuckerberg, and it's for the next 7 years :)"

The twisted tale of Zuckerberg vs. Zuckerberg started after Zuckerberg, formerly Guez, launched a Like Store that sold Facebook "likes" to companies, a transaction that violates the social networking site's policies.

First, Zuckerberg, formerly Guez, sued Facebook over its failure to return his "hacked" profile. Next, a lawyer from Perkins Coie representing Facebook wrote a letter to Zuckerberg, then Guez, in September, warning him to "immediately stop your activities." The lawyer asked Zuckerberg to confirm before Sept. 5, 2011 that he had "stopped and will not in the future access Facebook's site, services, platform, or network for any reason whatsoever," among other stipulations.

In early December, Guez claimed he officially changed his name to Mark Zuckerberg and has posted pictures of his ID card and passport to prove it. He also recorded a video that he says documents his visit to the Ministry of Home Affairs to change his name.

(See video below)

In an email to The Huffington Post, Zuckerberg offered the following explanation for his name change:

Facebook decided to sue me after i myself, filed a law suit against them, in Israel. i wanted that once they sue me, they'll face suing "Mark Zuckerberg". Facebook accused me of selling ficticious "Likes", which is not true, our "Likes" come from real users who want to receive our content, and instead of paying us with money, they pay us with "Likes". The idea was, if only "Mark Zuckerberg" is allowed to sell likes, then for that matter, i'm "Mark Zuckerberg".

A week after Guez became Zuckerberg, Facebook's lawyer followed up with another letter "demanding that you stop violating Facebook's terms."

"If you ignore this letter and continue your current improper conduct, Facebook will take whatever measures it believes are necessary to enforce its rights, maintain the quality of its site, and protect its users' privacy and information," the Perkins Coie lawyer warned.

Facebook did not immediately respond to a request for comment.

In violation of the lawyer's mandate, Zuckerberg is still on Facebook. He has created a Facebook page titled"I'm Mark Zuckerberg" and has shared images of himself, his personal documents, and newspaper clippings.

Zuckerberg said in an email that he thinks highly of Zuckerberg, the founder of Facebook.

i think Mark Zuckerberg is a genious. i think he cares more about controlling the world and controlling our databases, than making money. Facebook and M.Z. have to understand that Facebook is not just any ordinary site it, along with Google, is the main avenue of the internet. They have to take on Google's example, not to erase content they don't aprove of. Google catorgorizes such content where it thinks it belongs, it doesn't disable accounts and erase content.

Will Facebook sue Mark Zuckerberg? Stay tuned.

LOOK:

WATCH:

Christmas Budgeting Tips

Fri, 25 Nov 2011 17:44:14 GMT

If you are like many of us who suffer from the Christmas Debt Hangover, here are some tips from Scott Hannah, president and CEO of the Credit Counselling Society, a non-profit organization.

Talk to your family and friends to let them know what you can afford to spend this year. The truth is no one wants to see their family or friends struggle financially or receive a gift purchased on credit.

You may be surprised to learn that many of your friends and family also want to cut back on their spending.

Use a spending calendar to nail down your holiday budget. Simply take a blank calendar and fill it in with what you can afford to spend and when you will spend it.

There’s a lot to consider: gifts, decorations, festivities, travel, babysitters, office party expenses to name a few. As you fill in your calendar, decide if it is something you want to spend money on this year or not.

By considering everything you want to spend money on over the holidays ahead of time you are able to plan what you can afford to spend and when you’ll have the money to do it.

Here are some other suggestions to get you started:

• Let your fingers do the walking online to find that perfect gift for someone at a fraction of the retail cost. Many online stores will ship for free once the value is above a certain dollar amount.

• Check out the Facebook pages of the stores you tend to shop at for money-saving coupons and other great deals.

• Finalize your holiday meal plan early and stock up on the items you need when they are on sale.

• Redeem loyalty-card points for gift cards and items on your holiday gift list.

• Choose off-peak times to do your shopping. Eat first, bring a bottle of water and don’t go if you’re tired or feeling stressed.

• The holiday season is full of low-cost/no-cost activities and events. Make time in your calendar to relax with family and friends and take in the magic of the season. It’ll put a smile on your face and won’t break your budget.

By being careful and planning ahead, you’ll avoid a January debt hangover and can get back to your saving plan sooner.

Who is looking out for the consumer?

Mon, 14 Nov 2011 18:03:48 GMT

I wanted to share an email I received from the VP of Remax in Ontario regarding postings by such companies as Welist and other FSBO on the MLS system. I am interested to hear your thoughts on this as well. Thanks, Glen.

October 4th, 2011

To All Real Estate Professionals:

Recent developments in the real estate industry have raised some concerns.

Most pertain to the new grey areas of the business that have emerged with the industry's newest business model -- the combination of For Sale By Owner (FSBO) and discount broker. Now let me be clear before I move forward. I am totally fine with the introduction of a multi-tiered system where consumers can choose from a variety of options when putting their properties up for sale. In fact, I think the concept also represents an opportunity for our agents to pinpoint where motivated sellers live.

But, these recent encounters are unchartered waters for realtors, many of whom have built solid reputations on service excellence and are absolutely stunned by the actions of this new hybrid. And with a growing list of complaints, including skyrocketing incidents of misrepresented properties, I find myself asking just who is monitoring our industry to ensure that rules and regulations are upheld?

And who is looking out for the consumer?

We know the Real Estate's governing bodies were originally established by the real estate industry and government to enhance professionalism, increase consumer protection, and to provide an effective, efficient and responsible regulatory framework.

So as the gatekeepers, they should be actively protecting the public interest through a fair, safe, and informed marketplace.

Or should they?

Maybe it's the government body - the Ministry of Consumer Services -- who is responsible for the Real Estate and Business Brokers Act 2002, and associated regulations - to uphold matters pertaining to public interest? Either way, will someone please step up to the plate?

It's time to determine whose responsibility it is to vet listings to ensure their legitimacy - as well as the accuracy of information. There should be clear guidelines and accountability for all who post their homes on MLS. I believe there should be one governing body that enforces the rules and guidelines. In fact, I believe this should have been done long before mere postings were permitted.

I've never been one to back down from issues that impact all of us in the real estate industry, whether its challenging part-time realtors or demanding changes to realtor.ca, and I'm not about to back down now. I demand to know why FSBO companies are not licensed. If they are placing their listings on MLS, they should be held to the same standards set for the rest of the industry. The way I see it, they can't hide behind the façade "for sale by owner" because that is simply not the case. It's just big business.

Some of you may be tempted to say you really do get what you pay for...but that's not the answer we're looking for. We need a resolution - one that is clear and concise - and applicable to all.

Because lousy service hurts every single one of us.

We put the consumer-our client-first, each and every time. The support for both client and realtor is there well after the ink on the contract is dry.

We are in the business of providing value and knowledge. It's what we, as professional realtors, bring to the table that sells our services time and time again. The results we generate are unparalleled. It's not by luck or by chance that the 90 per cent of homes sold on MLS are moved by realtors.

But it's time we level the playing field so that all players know the rules... that is the only way to ensure consumers are protected. That means licensed. That means insured. That means accountable. I urge you to share your thoughts at mpolzler@remax-oa.com. I'm prepared to push for change. Are you?

Yours truly,

Michael Polzler
Executive Vice President, Regional Director
RE/MAX Ontario-Atlantic Canada Inc.

Concerns for homebuyers & sellers

Fri, 21 Oct 2011 13:34:53 GMT

Here is a very informative article about home inspection for both Buyers AND Sellers

http://www.castanet.net/news/Home-Finance/63414/Concerns-for-homebuyers-sellers

A friend, who is a home inspector shared these tips with me:

When buying or selling a home, people are often surprised to find how appropriate that old maxim, “the more things change, the more they remain the same” can be. That's because no matter the age, style, size or location of a house, there are common problems that are likely to turn up during a home inspection, so knowing what these potential defects are, and preparing to deal with them, is key to making the most out of the circumstance. Craig Hostland, RHI, of Pillar To Post, one of North America's leading providers of home inspection services, identifies these problems as the 10 most common – which are best understood prior to an offer being made on your home:

1.Structural damage: As the foundation settles, it can knock doorways, walls and support beams out of alignment. The end result could make the entire house a safety hazard. Or foundation cracking may be merely cosmetic with no issues.

2.Leaky roof: Roofs may leak due to poor construction or aging materials. The question is, will the subsequent repairs be minor (replacing shingles) or major (replacing the entire roof)?

3.Faulty wiring: Older homes often need electrical upgrades, especially if you plan on installing a lot of electronic equipment (computers, exercise machines) or a pool or hot tub. When electrical circuits are not overloaded, the risk of fire is reduced.

4.Defective heating system: If it's an older system, it can pay to upgrade to one that uses less energy and is more efficient. If you've got gas or oil heat, a carbon monoxide detector is advisable.

5.Poor drainage: If the property is not properly graded, water may not run away from the house. In addition, gutters and downspouts should be checked and replaced if necessary.

6.Plumbing problems: Older homes may have faulty pipes made of galvanized steel -- popular in the 1940s which are prone to leakage and should probably be replaced with newer, more reliable materials. PB plastic piping used in the 80s and 90s has a stigma attached due to poor installation practices in the USA, but has stood the test of time in the Okanagan.

7.Poor ventilation: Check the bathrooms. Without sufficient ventilation, moisture may have built up, potentially causing structural damage inside the walls.

8.Water seepage: If water's coming in, be sure to add caulk and/or weather stripping to your shopping list. Water leaks can lead to mold, mildew and dry rot.

9.Improper maintenance: Any did-it-themselves, non-professional repairs could be a source of aggravation down the line.

10.Hazardous materials: Older homes may contain lead-based paint, asbestos, carbon monoxide, radon gas or toxic molds. Any of these could eventually cause serious health problems.

For further information please contact us so we can put you in touch with a qualified home inspector.

Bye, Bye To The American Dream? No Way!

Fri, 23 Sep 2011 18:13:00 GMT

Despite another lackluster year for real estate, 80% of homeowners still plan to buy again and 59% of renters still aspire to own their own homes.

Twice a year, we ask people across the U.S. (through an online survey conducted by Harris Interactive) if homeownership is still part of their personal American Dream along with a few other questions about the obstacles that are keeping them from buying at this time. So what did our Fall 2011 survey tell us? To give you the inside scoop, we put together an infographic to help us walk though all the key findings. Let’s get started…

Survey Says: American Dream (of Homeownership) is Alive and Well
This past year has been filled with a series of unfortunate events – from the economy hovering on the edge of another recession and a lackluster real estate market to politics that are making people second guess their 2008 vote. Given everything that has happened, it’s only natural to assume that fewer people would say buying a home is a good idea, right? Surprisingly, this is not the case.

What our survey told us is that a whooping 70% of Americans said they still see homeownership as being part of their personal American Dream. When we asked this same question back in January, it was also 70%. What this means is being a homeowner is still on most Americans’ “I’ve made it in the U.S.A.” to-do list and that nothing (that’s happening politically or economically) is going to bring them down. Even when you look at the data by age (as we did below), most said their American Dream includes owning a home. In particular, we thought this sentiment was pretty strikingly high among young people – the children of the 90s and 80s in this case – especially when you consider the fact that most do not own their own homes.

Homeowners Can’t Get Enough (Of Buying Homes)
Believe it or not, 57% of current homeowners said owning a home is among the best long-term investments they could make – even more than buying gold and putting cash under a mattress (go figure). If you think about it, that’s a bold statement considering how many people have lost their homes to foreclosure thus far. As a matter of fact, 80% of these folks say they want to buy another house in the future. But wait, there’s more. When we broke down this stat by age, we found out that an astonishing 69% of current homeowners age 55 years old or older (we’re talking retired or almost retired Baby boomers here) plan to buy another home. Must be something about that homebuying rush that they can’t get enough of, eh?

Buying A Home Ain’t No Walk In The Park
Most housing markets may be “offering” a blue light special on real estate all year long, but times have changed. The home buying process isn’t easy anymore.

Hands down, the biggest barrier to being a homeowners is saving up for a down payment (though this isn’t necessary a bad thing ’cause you should be putting at least 20% down. Letting people buy with zero down was one of many things that got us into this mess of a housing crisis). This especially rang true for Millennials (18-34 year olds) – 62% said this was among the biggest hurdles that they faced in trying to buy a home. On the flip side, qualifying for a mortgage and having a poor credit history were a bigger concern among Gen X’ers (35-54 year olds).

Click here to download a copy of the infographic. Also, in case you can’t get enough of the American Dream, here’s a slideshow of all the key findings from the survey and let’s not forget about the press release.

Trulia American Dream Survey – Fall 2011

http://insights.truliablog.com/2011/09/trulia-american-dream-survey-fall2011/

Repeat home buyers in Alberta won't be as flexible this time around

Fri, 26 Aug 2011 21:12:54 GMT

- 2011 TD Canada Trust Repeat Home Buyers Report finds many repeat buyers in the province feel they compromised on features of previous home -

CALGARY, Aug. 23, 2011 /CNW/ - Albertans are the most likely in the country to feel they compromised on the layout and features of their current home and are not willing to do so again in their next house hunt. The TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who recently bought or intend to buy a home that is not their first, found that six-in-ten (59%) Albertan repeat buyers are moving on to larger or more luxurious homes. Even though many are upgrading, they are among the least likely to need a mortgage to finance the purchase (58% versus 69% nationally).

"If you are moving because you want more room or certain features in your home, a renovation could be an option to save the expense of moving by making your current home work for you," says Jessy Bilodeau, Mobile Mortgage Specialists, TD Canada Trust. "A Home Equity Line of Credit allows you to use the equity you've built in your home to finance the renovation. Further, if you do ultimately decide to sell, the renovation could increase your resale value. Explore all options before making the decision to move to ensure that the new home will suit your changing needs and lifestyle."

The TD Canada Trust Repeat Home Buyers Report found that seven-in-ten Albertan repeat buyers were moving earlier than they expected (40%) or had no intention of moving but now find themselves on the house-hunt again (30%). Further, the number of people intending to buy a home that is not their first in the next two years increased twenty-one percentage points over 2010 (84% versus 63% in 2010).

Forty-nine percent of repeat buyers considered a Home Equity Line of Credit (HELOC). Interestingly, Albertans are much more likely to say they would use a line of credit simply to have as a cushion (49%), rather than for a renovation (21%). Twenty percent would use the line of credit to invest.

The large majority of Albertans (84%) plan to sell their current home before buying a new one. More than one-in-five (22%) say market conditions played a factor in their decision to buy another home.

Seven-in-ten Albertans expect to sell their home at or above asking price (69%). This is despite the fact that they are least likely to plan to try and improve resale value with activities like staging or renovating or improving the curb appeal of their home before putting it on the market (70% versus 75% nationally).

"Buyers should keep in mind that if they are expecting to sell above asking price, it is important that they work with an experienced realtor that can help them price their home in-line with current market values.

The reality is that it's still a buyers' market, and homes need to be priced correctly to sell," explains Bilodeau. "A home is obviously a very big purchase - especially if you will not be selling your previous home to put towards the cost. A mortgage expert at your bank can walk you through your financing options and show you strategies and products that may save you money and provide flexibility over the course of your mortgage."

Alberta buyers turn their focus from leisure to business

Last year, one-third of Albertan repeat buyers who weren't selling their home before buying another, said it was because the new home would be a vacation home. This year, that number dropped to 12%.

Albertans are more likely this year to say they are keeping their current home as a rental property (46% versus 25% last year) or that they will stay in their current home and the new home will be a rental property (41% versus 25% last year).

Albertans are savvier sellers than last year

Sixty percent of Albertans have a mortgage on the home they are moving from. More Albertans this year are using their mortgage as a selling feature (16% versus 7% in 2010). Thirty-six percent will bring their mortgage with them to their new home.

In 2010, nearly three-in-ten Albertans (27%) who planned to sell their home didn't know they had options when it came to their mortgage. This year, that number decreased to only 7%. Still, though they say they are aware of the options, 41% haven't considered what they will do with their mortgage.

"It's just as important to consider your mortgage options as a seller as when you are buying. You may be overlooking your mortgage as an important selling feature of your home or you may be able to save money by keeping your low rate and bringing your mortgage terms with you. Talk to an expert to find out what options might work for you," advises Bilodeau.

About the 2011 TD Canada Trust Repeat Home Buyers Report

Results for this study were collected through a custom online survey conducted by Environics Research Group. A total of 1,025 completed surveys, including 130 in Alberta, were collected between June 16-28, 2011 of people who have either purchased a home that was not their first home within the past 24 months, or intend to purchase a home that is not their first home within the next 24 months.

http://www.newswire.ca/en/releases/archive/August2011/23/c5498.html

REMAX given national recognition

Mon, 15 Aug 2011 21:07:00 GMT

By Mike Klein
The Post-Bulletin, Rochester MN

RE/MAX was recently recognized for providing the highest overall satisfaction for both home sellers and for home buyers among national full-service retail firms by J.D. Power and Associates.

For the home buying experience, three factors were considered: agent/salesperson, office and a variety of additional services. Four factors were examined for the home-selling experience: agent/salesperson, marketing, office and a variety of additional services.

Details from the study indicate that on a scale of 1,000, home buyer respondents ranked RE/MAX with a score of 805 and home sellers put RE/MAX on top at 791. The 2011 study includes more than 4,200 evaluations from 3,680 respondents who bought or sold a home in the U.S. between March 2010 and April 2011.

Calgary to escape price correction

Fri, 29 Jul 2011 18:51:20 GMT

Calgary is on course to see steady, albeit gradual, appreciation ahead of a looming price correction that threatens to push the national average down by more than 10% over the next two years.

TD Economics has forecasted that the national average resale price will drop 10.2% over 2012 and 2013. But it looks like Calgary will escape this downward trend largely because it's already gone through much of its correction.

TD Economics predicts the city's average price will rise to $405,800 in 2012, up from $403,700 in 2011. And by 2013, TD economics projects the average price will reach $410,500.

That's 1.7% increase in the average home value at the same time house prices in Vancouver are expected to drop 14.8% from its peak.

Calgary stands to gain even in the coming housing downturn because of its sound economic fundamentals. TD Economics expects crude oil to remain between $95 and $100 a barrel, a price at which energy companies can continue to make large profits and hire plenty more workers.

So now is the right time to invest while house values remain relatively low, said Sano Stante, president of the Calgary Real Estate Board.

"With interest rates still low and prices having been adjusted, affordability is high so it matches what you would pay monthly for a rental in Calgary," he told CRE Online.

But this trend also means investors must make their investments long term, since most residents will continue to choose home ownership over renting as long as interest rates stay low.

http://www.canadianrealestatemagazine.ca/index.php/news/item/718-calgary-to-escape-price-correction