Real estate is a very dicey thing. It is one thing you can absolutely rely on to be not stagnant. Not every real estate transaction will follow through smoothly. It is good to keep in mind the problem spots and take action to protect yourself in advance.

Indecision

Indecision by anyone involved the process can cause major hindrance. Some might have put up their property in the market but might be having second thoughts. They might not be sure if they want to sell at all. On the other hand, this is true with the buyers as well. They make their agents show numerous houses without committing any one of them at all. This could prove to be expensive to the real estate agent who is spending time, energy, and money on this.

At times, there might be issues with a house that nobody had informed earlier on. If you the seller, make sure to let the agent know you are not interested in properties that have not had pre-inspection checks. The seller also can avoid getting rejected by getting a check done. If there are problems, contractors would make sure that it is all fixed up and ready.

Sellers Stubbornness

Seller’s rigidity regarding sales can impede the transaction. Sellers often tend to have expectations that are not really realistic. They should look at the market rates in the area before quoting a price. Many agents recommend them against such unrealistic values. However, many owners want to put it up in the market and want to try their luck. Once they find, it is not going to, they change their minds. This results in much effort and financial loss.

Proper Paperwork

Proper documents and paperwork are an important part of the home selling or buying process. A small problem can tank the whole deal. Agents need to check all the paperwork regarding the deal and make sure it is perfect from both ends. The buyer and seller should not depend on and blindly trust the agent and instead, should do their own checks as well. Sometimes, you might come across situations where you have no control over the transaction – no matter what your role was in the deal. An example of this could be the change in government laws or acquisition by the government. While the deal itself may have been accepted by both the parties, this external force can ruin the deal.

Financing Problems

Financing is a major concern in real estate. If you are selling your house and you find a buyer who is interested in your property, find out how they intend to finance the process. If they are planning to get a loan from a bank or depend on the profits from another sale, you should be careful. It is always better to deal with buyers who have direct access to funds.

While all the above discussion talks about the negative aspects of real estate, being careful and wary will help you avoid loss and disappointments. If you are careful, you will have a better chance at a successful real estate venture.

If you need help selling your home or navigating the real estate market to buy your dream home, contact Anima Sai today!

The trend of single women looking to purchase homes as compared to single men has increased recently as seen from many surveys taken. It is more common that a single female chooses a smaller home. One should also always keep in mind that mortgage payments do not exceed 25% of the person’s income. While making a big decision like this, one must think about their future needs and accordingly decide. A single woman who intends to buy a house of her own needs to look into the following aspects.

Single women can take the help of a realtor and find a neighbourhood which is easy to trust and is known for its safety and acceptance. Women are now working hard and coming up in every field and hence, now have enough buying power.

A single woman may find it a tough challenge to go house hunting for the first time due to psychological pressure on them. Unlike men, women choose quite early – in their mid-twenties – whether or not they would like to have a child. This decision will have an impact on their scope of an ideal house. As more and more millennia’s are shifting to cities, there is more interest in a house near their work.

It is essential that the prospective buyer should take into consideration the cost and the time spent in commuting. If you are not considering living in your house for some time, then it is better to let it out on rent. Keep in mind the taxes, realtors’ commission, and other expenses which might boost the cost of purchase.

Finding a Realtor

The first thing to do is to find a realtor in the neighbourhood who has your trust. Your proximity to the realtor will help you better when compared to the other buyers. Presently, there are agents who are experienced in helping single women buyers. A single female might want a home that’s more finished and turn key.

The agent will have more luck in searching for a better house for you as per your choice if you discuss with them honestly about your requirements. Single women, before buying a house, should do their research beforehand. This includes the crime rate in the neighbourhood. Ideally, everyone should know about this. This information can be seen on websites like Trulia.com. One can also approach the police and seek their help for safe buying.

It’s extremely important that when you are ready to buy a house, you are making a long term investment. Buying a house should not just be something that you do in the moment. You need to have at least a 10-year plan in place. Keeping the cost to the minimum in the beginning will help you out in the future. Make sure you do your due diligence on your financial situation as well as pick a realtor that you trust.

North American Economies Strong? Central Banks Continue to Nudge Rates Up

At the end of October the bank of Canada once again bumped-up its Key Interest Rate from 1.5% to 1.75%. It’s the fifth rate hike since July 2017.

Canada’s central bank kept its interest rate at record lows for several years to stimulate the economy following the slow down of 2008, but over the past 15 months the rate has increased by 1.25% as the economy has gathered steam and moved onto sounder footing.

Another part of their reason to move the rate higher is optimism about economic activity from the recently announced free trade deal with the United States and Mexico. Forecasters are expecting two more hikes between now and March – bringing the Bank of Canada Key rate to 2.25%.

Both here and in the U.S. economic growth and job gains have been “strong” and inflation, although it’s cooled a little remains near the 2% target.

With predictions of gradual rate increases still to come over the next two years, homeowners are likely examining mortgage options and opportunities.

Beyond The Rate- Look at the Whole Mortgage:

• When you’re in home buying or refinancing mode, a mortgage interest rate may be the first thing that attracts your attention, but there’s more to evaluating a mortgage. Look at a variety of options which include:
• prepayment privileges as well as prepayment penalties
• Cash Back as well as Cash back “claw backs”
• Restriction on refinancing
• Portability

This is the right time if you are planning to buy a second house. The market is at a low and could benefit the owner greatly. This post will discuss some of the advantages and disadvantages of owning a second house.

Advantages of a Second Home

Profit – While most asset values fluctuate with time, vacation properties hardly do. The trend with them is thatthey usually appreciate because they are situated in popular neighbourhoods. It also depends on the fact that there is limitation geographically – only so many houses can be made on the shores of the beach.

Tax benefits – Many people use their vacation home as a relaxation spot. They do not rent it out. However, if you charge rent for no more than a couple of weeks a year, the property taxes and the mortgage interest will be deductible.

An additional source of income – You can put up your vacation home up for rent whenever you are not using it. It will be a steady source of income. Rental charges differ with the season, climate, and the popularity of the neighbourhood.

Early retirement plans – Every place has its benefits and drawbacks. However, if you choose well and purchase your retirement home early on, you will have the peace of knowing that. It could be in a place which helps you relax and gives you respite from your primary property.

Get Access to other vacation homes – Since most vacation homes are in popular areas like resorts, by the sea, or in the mountains, people are always attracted by nature and come for a visit. Owners of vacation properties in the area can arrange with other owners for a temporary house trade which would be mutually beneficial.

Disadvantages of a Second Home

While there are plenty of people who are looking to buy a second home, it is not a good idea for everyone. Despite the numerous benefits of owning a second (vacation) home, there are also drawbacks to it.

High purchase cost – Vacation homes are bound to be expensive because of their location. Most also expect the place to be really good so that they can have a good time when they come over for vacation. This pushes the cost further up. Not only this, but the house will also need to be furnished and owners usually prefer to buy everything new.

High mortgage costs – The down payment percentage is very high on a vacation property as are the mortgage interest rates.

Forced visits – Since you might be paying quite a lot of money every month towards your second home, you might feel that you need to make many visits in order to justify the purchase. The idea behind purchasing should be that you should enjoy it even a decade later.

Maintenance and other costs – As the owner, you will be responsible for maintenance and other costs. You will have to fix the water pipes, the roof, and any electrical problems that may crop up.

Take a look at the above-mentioned advantages and disadvantages before you rush into buying a second home. If you would like more information, get in touch with Amina Sai today to find your dream property!

To find a suitable home is not that easy and it requires great effort and time on your part. You can still succeed in getting your dream house provided you are careful. There are some basic things you have to acquaint yourself with before you can make your home buying dreams come true.

The Financial Side

Before purchasing a house, think about your finances in detail for future years and how you are going to repay the loan. The finance aspect of purchasing a home is important. Calculate your total expenses to understand how much you can afford. Weigh in your income and expenditures for more clarity. Find out your total monthly income after the income tax has been taken care of. Add to this your spouse’s income and the income you might get post-purchase of the house. Then take a look at your total expenditures. This does not need to include your current rent if you are planning to go and live in the new house.

Then, subtract the expenses from the income to arrive at the your income. Also, make provisions for an increase in salary. Also deliberate on whether you are planning on having children as this would require time and money. Understand what your borrowing capacity is. With all of this information on hand, you can now know your repayment ability and hence, can borrow to that extent. The borrowing limits differ from institution to institution, therefore, the use of calculators will help you to determine the exact amount of mortgage money.

Know Your Mortgage Amount and Interest Rates

To arrive at the cost of the house and to get a conservative estimate of purchasing a house, you can use a home loan calculator to know your mortgage repayment timeline depending on the loan period and the interest rate. Always keep some a sum of money which you might have to pay before the loan is approved. Next, find out about the most competitive rate which will benefit you financially – both in terms of interest and the loan limit. The type of loan the buyers need will depend upon the individual. If you want the exact amount, then go for a fixed loan but if you feel the interest rates may vary in the future, then it is better to consider a variable rate of interest.

Once this is sorted, then you may have to get your income checked out, latest tax returns, and your savings history and any other documents that may be required by the lender to process your loans.

To get the best deals, survey the market for the most economical lender. Since it is a competitive market, don’t hesitate to bargain. Being able to submit all your documents immediately to your lender will facilitate the easy process of sanctioning the mortgage loan and thereby, get the amount approved and released.

It is also advisable to get the home inspected before you purchase the house to avoid complications or added costs down the road. Inspections may relate to the buildings, pest, electrical, and land survey. The matter comes to a close where you make a deal by exchanging your cheque with the vendor’s title of property ownership. Your lawyer will help you out in this process.

Let Amina Sai help you find your dream home! Get in touch today and find the home that’s right for you and your family.