Patricia Katz, Broker, SRES
office/pager: 416-966-0300
pkatz@sutton.com
IS PROPERTY A GOOD INVESTMENT?
-homeowners usually have a higher
net worth than renters
-homeowners acquire a higher
level of borrowing power
-homeowners can leverage their
equity
-homeowners usually have more
personal control over their finances
BUYERS KEEP IN MIND
-future selling potential: make
sure you are buying a property that has a large buying group
-choose updated homes on quiet
streets that have open concept designs allowing for lots of natural light
-research model homes/condos from
builders to find out what is popular
HOUSE/CONDO FINANCES
-be sure to know your finances so
that you know what you can afford
- to find out your down payment:
review all your payments associated with the purchase of a property such as;
car, hydro, heating, taxes, furniture, decorating and repair costs (if
necessary), monthly maintenance fees for condos, internet, TV, landline phone,
cell phone etc.
EXPENSES ASSOCIATED WITH THE
PURCHASE OF A CONDO
-payment for status certificate
-monthly maintenance fees and
what they include
-property taxes
-lawyer's fees
-professional condo home
inspection
-land transfer taxes
-moving costs
-elevator rental re moving and
damage deposit
-transfer of communication
services (internet, telephone, TV etc)
-appraisal fees (usually not
requested)
-monthly mortgage payments
-painting, some repairs may be
necessary
-clean-up
EXPENSES ASSOCIATED WITH THE
PURCHASE OF A HOME
-professional home inspection
-property taxes
-lawyer's fees
-land transfer taxes
-moving costs
-transfer of communication
services (internet, telephone, TV etc)
-appraisal fees (usually not
requested)
-monthly mortgage payments
-basement apt to help with
monthly expenses.; either build or if already in property, may need
repair
-painting, decorating, some
repairs may be necessary
-landscaping
clean-up
WHERE TO OBTAIN MONEY
-bank or credit union, must be
prepared to submit income and expenses
-RRSP as down payment; allowance
of $20,000 per person, so for 2 people - $40,000
-Ontario-reduction in land
transfer tax for "FIRST TIME BUYERS"
-monetary gifts from family or
friends to help with down payment: this money must be in your personal bank
account a full 90 days prior to
making an offer
PRICING AND MORTGAGES
-visit a few banks to find out
what they offer "FIRST TIME BUYERS"
-find out how much of a mortgage
you would quality for from your bank or a mortgage specialist
-great credit score and good
income to support a mortgage will make obtaining a mortgage easier
-many options available; variable
rate or fixed rate, bi-weekly payments to pay off the mortgage faster, 5 year
accelerated mortgage, hybrid mortgages, 10 year mortage rate allows for the
security of knowing your interest rate for a longer period of time
AN EXPERIENCED REALTOR
-will have referrals
-will explain the "BUYER
PROCESS"
-is available to show you
properties
-keeps in touch on a regular
basis
-responds to your questions in a
timely manner
-automatically lets you know all
pertinent information necessary for your home search so that you can make an
informed decision
-lets you know the sale prices
and asking prices of the properties in the neighbourhood that interests you
-gives you the past history of
any property that interests you
-gives you referrals: eg. home
inspectors, mortgage brokers, lawyers, renovators etc.
LOCATION-LOCATION-LOCATION
-use a realtor who knows the area
that interests you
-a realtor who knows the
neighbourhood can tell you about the amenities of the area
-an experienced agent will give
you opinions about the property and the location
-an experienced agent can tell
you about the transportation system, give you information about where to find
out about schools, crime rates, demographics, gentrification of an area, what
is being planned in terms of other houses or condo developments
-an experienced agent will let
you know the average price of the neighbourhood that concerns you
-an experienced agent will let
you know the so called "hot areas" where prices are increasing
ABOUT CONDOS
-review the lifestyle that
appeals to you
-each development has different
kinds of amenities;indoor/outdoor pools, gyms, home theatres, party rooms,
saunas, libraries, concierges and so on
-some older and a few newer
buildings have either no or minimum amenities
-so it is important to determine
what is most important for you
BUYING A NEW CONDO OR NEW HOUSE FROM A DEVELOPER
-review floor plans &
exterior design
-check size of windows
-find out if there will be any
obstructions in the view
-what are the standard finishings
-check the price of the builder's
upgrades and compare to having outside contractors prices
-what are the closing dates and
how many times can the closing dates be delayed
-what is the timeline for
deposits
-have all deposits made out to
the lawyer "in trust"
-have your lawyer review the
paperwork prior to your commitment
-schedule pre-delivery
inspections and note all deficiencies
-any compensation if builder does
not deliver on time?
there are many other items to
review; your agent and lawyer will discuss these with you
A FIXER UPPER
-have your renovator inspect the
property prior to the purchase to give you an approximate cost, usually the
cost exceeds the estimate
-have the renovator give you the
schedule of the renovation with the associated costs in writing prior to your
purchase
-keep in mind the seasons; the
seasons have an impact on what can be accomplished outside
-if you are buying to "FLIP", the
best time is either late summer or fall so that the property will be ready to
hit the best market which is the "spring"
-understand your target market;
what they want
-hire professionals to get the
work done on time
-know the most current
popular design themes
-find out about energy trends and
green living lifestyles which affect housing designs
-understand what "over
improving" means
-if appropriate consult with an
architect, designer, stylist
-make sure you do only what will
give you the highest return
-avoid being the
"castle" in the neighbourhood
-be informed about property
values on the street or building and stay in line
-avoid doing improvements that
are too personalized
-do the research and buy only
what you love and what you can afford as this may be the greatest asset of your
life
"do
thorough research to avoid problems as all the improvements should add value to
the property and at the same time appeal to a large market segment"
"currently,
we have the lowest interest rates in 65 years and with prices rising every
year, it may be a good time for you to get into the market"
Patricia Katz, Broker, SRES
Sutton Group-Associates Realty
Inc., Brokerage
358 Davenport Rd.,
Designers Walk
Toronto, ON
