Advantages of Purchasing a Lake views condominiums in Toronto over a Single-Family Home
First time home-buyer or empty nester? Looking for rental property? Why choosing a condo over a house for investment may be the way to go if you know what to look for.
Falling real estate prices and surging gas prices make anyone uneasy about signing the dotted line on a home purchase. But if you’re looking for a condo either to rent out or live in, now may be a great time to buy. Why?
The higher they go the harder they fall. Real estate flippers were buying condos by the masses during the height of the real estate boom...and not just in Miami. Every city had its share of investors trying to make a quick buck. Sometimes people would buy and sell units over and over again before the paint was even dry on the new construction. As a result, condo prices are depressed and ripe for savvy buyers.
Condos make great rental properties. Whether this is your very first real estate purchase, or you’re an empty-nester looking to downsize, view your condo purchase as an investment. Say you decide to get married down the road and need a bigger place, you can always rent out your condo if you can’t get the sale price you want. Or if you’re downsizing from a house and a year or two down the road you decide condo living is not for you, you can always lease the unit and use the income to pay bills or offset the mortgage on a house.
Before you begin condo shopping, follow these tips for a better buying experience:
Find out exactly what the maintenance fees are. Don’t even walk into an open house before you know how much you’ll have to pay to the condo association every month and what those fees cover. Dues can range anywhere from several hundred to thousands of dollars a month. Does it include trash, cable or satellite? When was the last time the association board installed a new roof? How often is the building painted? These are all questions you need to ask before you ever set foot inside a unit.Read the condo documents carefully. Every condo association has them and the board is required to give you a copy when you purchase the property. But don’t wait until then. Get a copy before you make an offer and read the fine print.
If you decide to rent out your unit and the condo board doesn’t allow leases, you need to know that before signing a contract. The condo docs will also tell you if there are any age restrictions on tenants. They also cover rules concerning common property such as a pool or tennis courts. Examine the building exterior and grounds. Each condominium complex may have different associations and each one runs differently. That’s why one building may look well-kept, while another in the same community is old and tired-looking. Drive by at different times during the day to determine how often maintenance crews are working. Get a copy of the condo board’s financial statement.
Remember, owners elect the condo board and you need to find out how well the association manages money. You pay dues every month and you want to find out where every penny is going and how it’s spent.Talk to residents. Walk around on a Saturday afternoon and chat up some of your potential neighbors. If you tell them you’re thinking about buying there, some may be very candid with you about life in the community.
Even if they’re not, you can often read between the lines and sense any problems or discord in the complex.Finally, negotiate, negotiate, negotiate! Remember, this is a buyer's market. Study comparables carefully and don't be afraid to make a low-ball offer. Sure, the seller can turn it down without a counter-offer, but with a glut of condos on the market, you'll surely find another one you like just as much.Related Suite 101 articles:
If you decide to lease your condo, why you need rental documentation.
High ratio borrower tool kit for first time home buyers.
Thursday, July 24, 2008
Monday, July 21, 2008
5 tips: Renovating your home
If you're looking to custom your home additons in Toronto this year, now is a good time. You may even be able to get your contractor on the phone...on the first try!
That's because the remodeling market is slowing down according to Kermit Baker of Harvard University's Joint Center for Housing Studies.
Contractors may not be as busy these days because homeowners are concerned about rising short term interest rates and slowing home appreciation.
Even the Labor Department statistics indicate that contractors are less busy than they were a year ago.
That's good news to homeowners who in the past may have had to wait up 12 months or longer for services.
2) Think trends, not fads OK, so we all know that if you want to get the most bang for your revo buck, you should look to the kitchen and the bathroom.
Remodeling these rooms can give you a 98 to 100% return on your money.
Try to avoid the hot trends that tend to come and go like trash compactors or avocado green appliances. "
It's hard to predict when or how market remodeling trends change," says Baker. "Trust your instincts and you'll be able to enjoy all the changes you make."
3) Scope out the 'hood When you remodel, you want to get an idea of what your neighbors are doing.
You may love the fish pond and the menagerie or the wrought iron fence, but you generally don't want your house to look out of place.
Bankrate estimates that no matter what you do to increase the value of your home, you shouldn't plan on pushing your home's value beyond 25 percent of its current selling price; even in the best market, you probably won't get it.
On the other hand, if you're the only house on the block without a deck or a swimming pool, you may want to consider adding features that make your home more attractive to buyers.
4) Contractor checklist When it does come down to hiring a contractor, there are a few rules you'll want to keep in mind.
First of all you'll probably be happier if you go with a contractor who was recommended to you.
Consumer Reports suggests that when it comes to jobs like plumbing or other professional services, you should hire them yourself. Don't let a general contractor do the hiring. You'll save time and money.
Make sure you get at least three bids to gauge the going rate, but don't always jump at the lowest rate. Consumer Reports warns that people who did generally got poorer work.
Of course you know to ask for proper licensing and insurance. Certification from the National Association of the Remodeling Industry is a plus.
And finally, it comes down to dollars. Get estimates. You should have a piece of paper that lists the products, material, labor costs and a time table.
5) Silver: The new granite? So what kind of trends will we see going forward? All you have to do is look to your parents for the answer.
An aging demographic is going to drive more demand for renovations that help boomers get around. That means wider doorways and hallways, bathroom handrails and wheelchair accessibility.
If you're looking to remodel for your parents or you just want to find out what they'll need in their own home, there are resources.
Check out the National Association of Home Builders Web site at www.nahb.org and search under CAPS. This will direct you to Certified Aging-in Place Specialists. These are remodeling professionals who have taken certification classes for senior remodeling needs.
"This is a generation that has wealth and longevity," says Baker. "And most aging people don't want to move."
That's because the remodeling market is slowing down according to Kermit Baker of Harvard University's Joint Center for Housing Studies.
Contractors may not be as busy these days because homeowners are concerned about rising short term interest rates and slowing home appreciation.
Even the Labor Department statistics indicate that contractors are less busy than they were a year ago.
That's good news to homeowners who in the past may have had to wait up 12 months or longer for services.
2) Think trends, not fads OK, so we all know that if you want to get the most bang for your revo buck, you should look to the kitchen and the bathroom.
Remodeling these rooms can give you a 98 to 100% return on your money.
Try to avoid the hot trends that tend to come and go like trash compactors or avocado green appliances. "
It's hard to predict when or how market remodeling trends change," says Baker. "Trust your instincts and you'll be able to enjoy all the changes you make."
3) Scope out the 'hood When you remodel, you want to get an idea of what your neighbors are doing.
You may love the fish pond and the menagerie or the wrought iron fence, but you generally don't want your house to look out of place.
Bankrate estimates that no matter what you do to increase the value of your home, you shouldn't plan on pushing your home's value beyond 25 percent of its current selling price; even in the best market, you probably won't get it.
On the other hand, if you're the only house on the block without a deck or a swimming pool, you may want to consider adding features that make your home more attractive to buyers.
4) Contractor checklist When it does come down to hiring a contractor, there are a few rules you'll want to keep in mind.
First of all you'll probably be happier if you go with a contractor who was recommended to you.
Consumer Reports suggests that when it comes to jobs like plumbing or other professional services, you should hire them yourself. Don't let a general contractor do the hiring. You'll save time and money.
Make sure you get at least three bids to gauge the going rate, but don't always jump at the lowest rate. Consumer Reports warns that people who did generally got poorer work.
Of course you know to ask for proper licensing and insurance. Certification from the National Association of the Remodeling Industry is a plus.
And finally, it comes down to dollars. Get estimates. You should have a piece of paper that lists the products, material, labor costs and a time table.
5) Silver: The new granite? So what kind of trends will we see going forward? All you have to do is look to your parents for the answer.
An aging demographic is going to drive more demand for renovations that help boomers get around. That means wider doorways and hallways, bathroom handrails and wheelchair accessibility.
If you're looking to remodel for your parents or you just want to find out what they'll need in their own home, there are resources.
Check out the National Association of Home Builders Web site at www.nahb.org and search under CAPS. This will direct you to Certified Aging-in Place Specialists. These are remodeling professionals who have taken certification classes for senior remodeling needs.
"This is a generation that has wealth and longevity," says Baker. "And most aging people don't want to move."
Think about the mortgage traps before you buy a new home
If you're in the market for a mortgage, you'd do well to arm yourself with some knowledge before you go knocking on lenders' doors. I'll soon point you to where you can learn a lot in short order, but first, here are a few mortgage traps to be wary of, some courtesy of mortgagetrap.org:
- Overcharging. When you get a mortgage, you'll unavoidably face a flurry of fees. But not all of them are perfectly legitimate. Ask for itemization of fees and scrutinize them. (Know that if one lender quotes you a very low interest rate, it may make up the difference in steep fees.) If a mortgage broker is charging you an underwriting fee, question it, since the lender does the underwriting, not the broker. If you're charged $100 for a credit check, question that, since these generally cost between $10 and $20.
- Bait-and-switch. Be on the lookout for lenders offering deals that seem too good to be true, such as exceptionally low interest rates, closing costs, and other fees. These low rates may be available only to those with perfect credit scores, and once the lender has you in the door, he or she will reel you in. Keep your eyes open and know that you can keep shopping around. You don't need to stick with a lender if you're not being given what you were told you'd get.
- Prepayment penalties. Avoid these at all costs, as they will either prevent you from paying down your mortgage aggressively, or will penalize you severely for trying to do so. They're exceptionally common in loans made to those with poor credit scores, but according to mortgagetrap.org, "About 10% of all ARMs (adjustable-rate mortgages) that are 'conforming' in nature have prepayment penalties per Fannie Mae (NYSE: FNM)." Read your mortgage paperwork closely, and have the lender verify that there's no prepayment penalty.
- Pressure from real estate agents. Don't let your real estate agent push you into using a particular lender. While many recommendations are made honestly, in good faith, some others are made because the agent is related to the lender or perhaps even gets a kickback. Agents are not typically experts in mortgage finance. You can accept suggestions, but explore all options.
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