Ask me anything about Real Estate

Addy

Addy

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Hi everybody (in Dr. Nick's voice from the simpson) :)

Well, I've been connected to this website for a couple of years now and have occasionally answered member questions relating to real estate in person and online. I've even had the pleasure to help some members buy and sell real estate over the past few years.

I was chatting with Paul who was asking me a question about real estate and it occurred to me that I could post a thread in the forum so anyone can post a question about any matters relating to real estate and I can answer them for you.

I already do this on couple of other forums and the questions vary widely from simple buyer representation questions to market conditions to as complex as being able to represent yourself in a multiple offer situation.

Please try to keep this thread clean. The intention is to help answer any questions that you may have and not to defame anyone or any company about what they might have done.

I can't provide legal, zoning or advise about specific situations and will ask you to consult with the proper authorities about issues as such. I'm, however, available to consult with you regarding your specifics should you need me.

Please omit any names etc from your questions when asking...

I practice real estate full time in the Greater Toronto Area working with Re/max. I have found threads like this helpful for me to stay sharp on what today's buyers and sellers are looking for as well use some of the questions posted in my blog. So it's a WIN WIN!

Looking forward to your questions!

Addy Saeed
Real Estate Sales Representative
Re/max Active Realty Inc., Brokerage

Table of Content:

Page 1:
When is a good time to buy real estate?
What type of property is better as an investment? Freehold or Condo?
What's the difference between a freehold and a condo?

Page 2:
What are the benefits available to first time home buyers?

Page 3:
What are the steps involved in becoming a real estate agent?
Are Canadian allowed to invest in the US?
Market Watch updated

Page 4:
When is a good time to buy or sell real estate?
Using a REALTOR to rent out properties vs. renting out yourself?
Landlord and Tenant Legislation (residential tenancies act)

Disclaimers:
All information provided is deemed accurate but not guaranteed. Please check with appropriate authorities regarding specifics about your situation.
This is definitely intended to solicit buyers and sellers of real estate but not those that are currently under contract and/or induce a breach of contract.
 
Last edited:
Awesome, and very helpful idea! Thanks for doing this.

My question is about when is a good time to buy. Right now I'm renting with the idea of purchasing a long-term (30+years) house in 2 years. However, all this talk about the market slowing down makes it sound like next year is the time to buy.

I did some slight research and discoverd that prices won't be dropping, they'll just not be rising nearly as much.

Would I be silly to wait 2 years to buy, or is it a safe thing to do?
 
What are the benefits available to a first time home buyer?

I just gave mine up because my parents and sister went in an a house together, and aside from my sister, I was the only other person that was in a position adequate to sign for it.

That being said, since i've lost said benefits, can I still cash in on them with my fiance, or does it basically mean that we lose half of the tax breaks that we had coming with our first home?
 
What colour should I paint my porch?

J/K - couldn't resist but I do need to paint it!
 
sportbiker_kev said:
Awesome, and very helpful idea! Thanks for doing this.

My question is about when is a good time to buy. Right now I'm renting with the idea of purchasing a long-term (30+years) house in 2 years. However, all this talk about the market slowing down makes it sound like next year is the time to buy.

I did some slight research and discoverd that prices won't be dropping, they'll just not be rising nearly as much.

Would I be silly to wait 2 years to buy, or is it a safe thing to do?
Click to expand...

Great question... I'm doing to break your question down into to catergoies and try to explain it...

There are basically two types of buyers for real estate:

1. Sellers and Buyers - People who have to sell a place then buy their next place. Usually, this category is upgrading or down grading
2. First time buyers or buyers that have sold their places before and are currently renting etc...

In today's market, the number of transactions are lower than last year which was a record year. I'm not going to go into too much detail about the market but the facts are that there's a lot of inventory available which gives buyers a lot of option to what they need to purchase.

Properties that will sell in today's market are properties that are in top condition and are priced well. So, sellers will be spending money to renovate the property and put it on the market at a competitive price to ensure they are able to take advantage of the buyers that are available in the market place.

Let's talk about the buyers...

For first time buyers or buyers that don't have to sell a property, this means that they won't have to compete with other offers. It also means that they will be able to get a better house for a better price. The prices in Toronto dropped 1% over the past year which had increased 10% between 2006 and 2007. So, a buyer would be able to get better prices now than they have been able to over the past "few" years.

Is it the best time to buy now or wait?

Theory is that if you time the market right, you should be able to buy a property just as the market is starting to pick up. The problem is that NO ONE can accurately predict when the market will be picking up or going up. Best option is to wait for the market to start picking up a bit and purchase thinking that it has hit rock bottom. There are no guarantees!

In my opinion, the best time to buy is when you're ready to buy a property. If you're waiting to buy a property when the market is at it's lowest, know that you have to face other factors:

1. Higher interest rates
2. Tighter credit terms
3. Uncertainty about the market

Couple these factors together, it becomes a tough decision to make but if the conditions are right for you, you should be making the purchase. Have a set budget in mind and go for it!

For Sellers and buyers, the situation is a bit different. The main issue we see is that the price of their property has been corrected to current market condition and a lot of them would be hesitant to sell but depending on the curve you're at in the market cycle, what you sell for (% wise to your highest market value) is what you would be purchasing at. The difference at the end is how much equity you're walking away with.

So... In your situation... I would do the following:

1. Watch the market as to what's happening. Here's the latest market watch that I sent to my clientbase. PM me your full name, phone and email and I can include you in my list too...

2. Set an area you'd like to be in. Review new properties that are coming up for sale there and educate yourself about what a fair value of a property there is.

3. Get yourself pre-approved from a Mortgage Broker so you know what you can afford to purchase.

4. When you see the property you like, jump on it!

For first time buyers, it's better to buy when a market correction is taking place as you will generate more equity through the appreciations that will be coming from the market going back up!

Hope this helps... Thanks for posting your question!
 
buying a second property for rental investment:

which would be better: condo, townhouse or single detached?
 
What exactly is a freehold and are there any benefits to looking at buying something like this as a first home purchase?

Very much appreciate this thread!
 
Snot said:
buying a second property for rental investment:

which would be better: condo, townhouse or single detached?
Click to expand...

It depends on what budget you're comfortable with purchasing. I would actually pay more attention to how much cashflow a property can generate.

If it's a single detached or a small condo that is generating a positive cash flow, it's a good investment. Another aspect is to keep an eye on how much appreciation you will see from the purchase.

Tenant selection is an important aspect of this venture and I'd recommend that you review the following website it great detail before committing to such a venture

www.ltb.gov.on.ca

Hope this helps...
 
fufaso said:
What exactly is a freehold and are there any benefits to looking at buying something like this as a first home purchase?

Very much appreciate this thread!
Click to expand...

In a nutshell, a freehold property means that there is no condominium corporation holding a reserve fund or responsible for repairs to the outside of your house or any maintenance fees.

You're solely responsible for the house and it's up keep. If you have a free hold town home, you and your neighbors are responsible for maintaining items such as the roof and would have to put out the sum of money all at once.

Freehold properties tend to be more expensive than (non-freehold) condominiums mainly due to the fact that you have to pay a fee on monthly basis. There are also additional rules and regulations that are accompanied with the purchase of a condominium which are enforced by the condo corporation.

Both are good choices depending on what serves the purpose well for you.

There is no right or wrong purchase... Just what your needs are and which property can fulfill them!

Hope this helps...
 
What happened to my answer?

I was 2nd in line!

Was my question not fit for answering or something?

What the hell? :mad:
 
Guy Fawkes said:
What are the benefits available to a first time home buyer?

I just gave mine up because my parents and sister went in an a house together, and aside from my sister, I was the only other person that was in a position adequate to sign for it.

That being said, since i've lost said benefits, can I still cash in on them with my fiance, or does it basically mean that we lose half of the tax breaks that we had coming with our first home?
Click to expand...

The main incentive available to first time home buyers is the rebate on land transfer tax that is credited back after your first home purchase.

It looks like you might qualify for the rebate since you've already purchased a property and/or had interest in it depending on the date. According to the Ministry of Revenue, you qualify for a rebate if:

your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse; and
Click to expand...

Source

So, technically speaking the date matters... I would recommend review this with a lawyer to clarify.

Thank you for the question and apologize for the delay...
 
I believe there is also a rebate available to first time buyers purchasing a new homes specifically (not a resale home). It's a GST rebate through the government... if it's still available. Last time I looked at it, it was something like 2.5% off your purchase price.

Being a first time buyer you also qualify to use up to $20 000 out of your RRSP to help finance your purchase (towards your down payment). Both spouses can do this together for a combined $40 000 contribution. If you no longer qualify, at least your fiance would.



Addy said:
The main incentive available to first time home buyers is the rebate on land transfer tax that is credited back after your first home purchase.

It looks like you might qualify for the rebate since you've already purchased a property and/or had interest in it depending on the date. According to the Ministry of Revenue, you qualify for a rebate if:



Source

So, technically speaking the date matters... I would recommend review this with a lawyer to clarify.

Thank you for the question and apologize for the delay...
Click to expand...
 
Blackie said:
I believe there is also a rebate available to first time buyers purchasing a new homes specifically (not a resale home). It's a GST rebate through the government... if it's still available. Last time I looked at it, it was something like 2.5% off your purchase price.

Being a first time buyer you also qualify to use up to $20 000 out of your RRSP to help finance your purchase (towards your down payment). Both spouses can do this together for a combined $40 000 contribution. If you no longer qualify, at least your fiance would.
Click to expand...

+1

I'm glad to see you're keeping a top on your studies... :)
 
What are the steps to become a Real Estate agent? How long does it take, do I need a sponsoring firm? Can I do the job part-time, and does it make financial sense to get a license to sell 2-3 homes a year (i.e. for the family)?
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