Rent-to-Own a Home: Beware the Risks

Great artice in www.MoneyVille.ca 

Rent-to-own or lease options on homes are exactly as they sound –  a homeowner rents to a tenant and the tenant has an option to buy the home for a predetermined price at the end of the lease.

On the surface, it seems like a mutually beneficial agreement for both parties – the homeowner has a deal to sell the house and the tenant can build their credit over time while saving up for the down payment.

However, Frank Petriglia, a real estate broker with RE/MAX Premier Inc. in Vaughan, believes that more often than not, a lease option agreement benefits the homeowner.

“The homeowner clearly comes out ahead in the rent-to-own scenario since they have very little on the hook,” he says. “Since the selection of these types of units is slim, the homeowner can demand more money than the open market will be willing to pay. And my feeling is that it will stay this way regardless of market conditions.”

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Some Clauses in Apartment Leases Aren’t Legal

Great artice in www.MarkWeisleder.com

As the new school year begins, students and landlords are signing leases.There are lots of clauses put into them, but just because something is written into a lease, doesn’t make it legal.

Here are some examples:

First and last month’s rent:

The most a landlord can ask gfrom a tenant is first and last month’s rent. I know of cases where tenants have been asked to pay as much as one year’s rent in advance. Anything more than two months is not legal, so if the landlord asks for that, move in and then go directly to the Landlord and Tenant Board and ask for the return of anything extra. The landlord has no right to evict you for doing so.

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

I Will Continue to Recommend David

“This is my first time working with David and he was extremely helpful in finding me my first condo in downtown Toronto. As someone with little experience in the Toronto market, David walked me through the entire process, educating me on how the market works and what to look for as a buyer and ultimately a seller. He is always available to bounce ideas off of, discuss new listings and take you out on viewings to give you a real good handle of what is available in the market at in your price range. He has the ability to put himself in your shoes as a buyer to help find the property that suits you the best. I have already and will continue to recommend David to friends and family looking for an honest, trustworthy and loyal realtor. Thanks again David for making my buying experience seamless and as stress free as possible!”

 
– Colin Williams

Grow Your Downpayment and Save

Great artice in BorrowBetter

Policy changes have made a large downpayment more important than ever when buying a home. Higher qualification ratios, higher closing costs, and significant land transfer taxes force buyers to part with a significant amount of cash savings that cannot be wrapped into a mortgage or amortized over 25 years. Growing your downpayment before you buy – or at least before you close – remains the one of the most proven ways of reducing debt loads, avoiding CMHC costs, mitigating  debt risk, and cutting long-term interest expense. Here’s a few ways to grow your downpayment and save…

PRE-QUALIFICATION

Changing policies have made it critical to get pre-qualified for financing BEFORE you go looking at a house, cottage or condo. Know in advance how much you have – or need – to get the home you want, then develop a plan to grow and protect the savings you will use for your closing costs and downpayment based on a specific target amount.

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Landlords: 12 Proven Strategies for Avoiding Nonpayment and Other Nightmares

Great artice in http://RealtyTimes.com

For private landlords expecting to earn rental income and qualify for rental tax advantages, a tenant NOT paying rent can be a nightmare.

Strategy #1:Establish budgets and profit projections based on 70 to 80 percent of potential rental income, not 100 percent.

When rent is not received on time, the landlord may have trouble meeting his/her own financial obligations. This cash-flow problem is compounded by the legal fact that a landlord does not have an automatic and immediate right to replace a non-paying tenant with one who will pay rent on time.

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Moving On Up to Yonge and Eglinton

Great artice in www.TheStar.com

Earlier this year,  when Bazis Inc. unveiled the designs for  which will feature cantilevered glass-enclosed pools jutting out from the 31st floor of each of two towers, the project caused a global sensation.

“We had people from all over the world calling us, saying what a great idea (the pools were), asking how they will work,” Bazis president Michael Gold recalls. “People are now talking about Toronto, saying look at all the exciting architecture we’re doing here.”

For Yonge St. and Eglinton Ave., a major intersection that was late to the Toronto condo party, the arrival of this landmark project is a fitting symbol of the residential rebirth the area has been undergoing in recent years.

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Are you interested in Platinum Level Pricing for any project?

E-Condos is my top pick.  

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Homeowners Advice: Ready for Fall

Great artice in http://realtytimes.com 

Fall is just around the corner. All homes require maintenance. To retain your home’s best value, it’s important to stay on top of projects and repairs, both large and small. Seasonal maintenance is a great way to be sure new issues are quickly addressed.

Small repairs may seem insignificant, but letting them add up over time means an overwhelming list down the road.

Take a personal inventory of repairs that need to be addressed. These could range from paver stones that need replaced in a patio to a large-scale roof replacement. Walk your home from top to bottom and make a list of issues.

Look for paint that needs retouched, tiles that need grouted, loose or scuffed baseboards, broken screens, squeaky doors, and everything in-between.

Budget and prioritize what can be addressed now, what needs a professional to fix, and what needs to wait for available funds.

Fall is also the time of year to prepare your home for Winter. It is much easier to install storm windows during temperate weather than during a blizzard!

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

7 Deadly Sins of Property Investment

Great artice in www.CanadianRealEstateMagazine.ca

Would-be buyers are often scared by hellish income property stories. But if you want to stay out of property purgatory, writes investment expert Paul Kondakos, avoid the following 7 Deadly Sins of income investing:

1. Poor Property Selection – This one can weigh on anyone’s soul as purchasing the wrong investment property can have long lasting repercussions that can range from high vacancy rates to exorbitant maintenance/repair costs. You need to ensure that you educate yourself and do your homework before you jump into any investment. Start by learning the criteria that make for a good income property investment.

2. Lazy Expense Tracking – Income property investing is a business, and as such, you need to be doing one of two things. Increasing revenue or decreasing expenses. Failure to track expenses is a costly mistake as patterns may reveal opportunities for cost savings. One such example is utilities which are one of the biggest expenses in operating an investment property. Often times water leaks can go undetected and cost BIG money. Simply tracking your bills will alert you to any activity that is out of the norm and allow you to act immediately.

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

BoC Still Looking for Chance to Hike Rates

Great artice in BorrowBetter:

This morning Bank of Canada governor Mark Carney released a statement indicating that the BoC’s overnight rate would remain at 1%. This is the longest that the overnight rate has ever remained unchanged in the history of the Bank, having been held steady since September 2010. Carney highlighted global economic concerns as the primary driver behind slow Canadian performance, indicating that they believe:

– The economic expansion in the United States is continuing at a “gradual pace”

– Debt-ridden Europe is “in recession and its crisis, while contained, remains acute.”

– China, a key consumer of Canadian commodities, faces growth that is “decelerating somewhat more quickly than expected from previously rapid rates.”

The announcement did indicate that Canada’s economy continues to show modest growth, with gross domestic product up 1.8% on an annualized basis in the second quarter, in line with the Bank of Canada’s most recent projections. In terms of future rate moves, the BoC’s language was quite clear, reminding borrowers that they should be prepared for an increase as soon as the environment allows it; the “breathing room” that even a half-percentage point increase would provide would be a welcome change for the Governor, since the overnight rate at its current level provides the BoC with little if any leverage or flexibility, particularly on the down side, to communicate policy or directly affect borrowing costs.

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

7 Reasons to Plunge into the Property Game

Great artice in www.CanadianRealEstateMagazine.ca

If talk about a housing correction are keeping you out of the property investment game, here are seven top reasons to overcome those fears. As real estate veteran Paul Kondakos, president of RealtyHub.ca, points out your time to buy an income-producing property may be now.
1. Mortage Rates – Canadian bond yields continue to sit at historic lows, as a result it is not uncommon to secure multi-unit residential financing with interest rates as low as 3 – 4%.  While Canada has enjoyed a prolonged period of historically low rates, the window of opportunity is finite as interest rates have no where to go but up.  (Window of opportunity – up to 18 months)
2. Vacancy Rates – CMHC has reported that vacancy rates have been trending downward across most major urban centres across Canada with rates sitting as low as 1 to 2% in many areas.  In addition, recent changes to mortgage rules in Canada have made it more difficult to qualify and thus will force many to become renters instead of buyers, thus putting even more downward pressure on vacancy rates in the coming months.  (Window of opportunity – up to 36 months and beyond)

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Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca