TORONTO REAL ESTATE BUYER INFORMATION

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