Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

You have found the premier Mississauga Real Estate Blog. It's filled with Up-to-date and useful information about Housing Trends, Home Prices, Market Statistics, MLS Home Search, Buying and Selling Tips for Erin Mills, Meadowvale, Streetsville, Lisgar, Pheasant Run, Sawmill Valley, Credit Mills and Churchill Meadows areas of Mississauga, Ontario. Plus, you will find a few other posts about my clients real estate experiences and non real estate related topics that I hope you find of interest.

Tuesday, March 11, 2008

Seven Tips For First-Time Homebuyers

Seven Tips For First-Time Homebuyers

If you've ever thought about owning a home, now may be the time to take action. Lower interest rates combined with a large inventory of homes in most markets across the U.S. may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

"Whether you've been dreaming of owning a home for years or you've just decided it would be a smart financial move to make, your first home buying experience will be a memorable one," says Jim Ferriter, executive vice president for GMAC Mortgage. "It's important to learn about your financing options in order to find the mortgage that's right for you."

Ferriter offers the following tips for first-time home buyers:

1. Educate Yourself About the Mortgage Process - By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It's important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership. A mortgage tutorial is available at http://www.mississauga4sale.com/mortgage-qualifier-payment.htm, which breaks down the home buying process into easy-to-understand steps.

2. Save Just a Little Bit More - It's not only important to save money for the down payment and closing costs, but it's important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit - An individual's credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender - As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender or loan officer you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you've identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved - Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a credit pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don't Be Afraid to Ask Questions - Once you've found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect - Before you commit to purchasing a home, don't forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

For more information about the process for buying your first home, visit http://www.mississauga4sale.com/buying.htm

Courtesy of ARAcontent
Read more about first time buyers in detail at my site

Read more about:

Interest Rates

Power of Sale Properties

Price Trends

or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying, buying strategy, first time buyers, resources

Read more!

Monday, March 10, 2008

GTA Real Estate Marketplace Very Eventful!

The last month or so has been very eventful in the GTA real estate marketplace.

First of all, the Bank of Canada reduced the prime rate .5% last week. There has not been such a large drop since just after 911. Read More

Secondly, the weather in the GTA has been a major player in slowing down our market somewhat, only time will tell, and soon, if our market will surge as it has in the past 13 years in March/April.

Lastly, the US real estate market and economy is reeling from the sub-prime crisis. We are about 5 months into a recession in the US and most are predicting another 8 to 16 months of this. Read more about the Sub-Prime Meltdown

How much this will affect our GTA real estate marketplace and the Canadian economy in general is not known, but so far we are holding our own and many suggest that we will not feel the effects of the US slowdown and our economy will be fine for the short and long term. I tend to agree.

Read the latest Price Trends

Read more about:

Interest Rates

Power of Sale Properties

Price Trends

or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, Real Estate Market, Real Estate Strategies, resources

Read more!

Thursday, March 06, 2008

RBC reports Brighter outlook for second half of 2008

RBC feels that the second half of 2008 will be better than the first half of this year.

Brighter outlook for second half of 2008

While the near-term outlook for the U.S. economy is decidedly bearish, our view that the Fed will cut rates by another 100 basis points provides one of the supports for our call
that the economy will recover in the second half of the year. This recovery will also be aided by an expected $150 billion fiscal package that we are assuming will make its way through Congress shortly. The fiscal stimulus package is expected to include sizeable tax rebates that will reach U.S. households by the third quarter and provide a significant boost to growth.

At the same time, efforts by the government to curb the pace of sub-prime mortgage defaults are assumed to be successful in tempering financial market volatility, limiting additional spread widening and calming equity markets.

Doses of monetary and fiscal stimulus will be enough for the economy to regain upward momentum and we forecast real GDP growth of 3।9% in the third quarter and a more moderate 1.7% in the fourth. The combination of soft first-half growth and the stronger second-half pace will result in GDP growth of 1.4% in 2008, slower than the 2.2% pace in 2007 and our previous forecast the U.S. economy would expand by 2.1% this year.

http://www.mississauga4sale.com/TREBprice.htm

Read more!

Monday, March 03, 2008

Negative consequences of 40 year mortgages - I agree with this post

40 year mortgages did improve affordability for many first time buyers but there are negative consequences with these very long term mortgages
40 year mortgages also increased the amount that move-up buyers could afford. On the other hand, I agree with the article below that 40 year mortgages spell trouble for people who can't handle the huge debt load.

New mortgage products spell trouble

Ms. Vaz-Oxlade's advice: "If you can't afford a downpayment, don't buy."
'When I see this kind of unrealistic optimism ... it makes me scared for people,' says Gail Vaz-Oxlade.
Offering 40-year mortgages and no-money-down options to people who don't know how to budget 'is like taking a child into a candy store and telling them to eat anything they want,' one adviser tells Linda Mondoux.
If it were up to Gail Vaz-Oxlade, host of HGTV's popular Til Debt Do Us Part reality show on ordinary Canadians trying to dig themselves out of financial messes, no-money-down mortgages would be against the law.

And so would 40-year amortizations. And lines of credit wouldn't be handed to first-time homebuyers to finance their closing costs.

While these new mortgage products are being touted by lenders as great opportunities for young buyers to get on the property ladder, Ms. Vaz-Oxlade sees them as "nothing but trouble."

"What I am seeing in the real world is tremendous financial ignorance," she says, her voice booming over the telephone from her home near Cobourg. "They have no concept of the long-term cost of borrowing. They only focus on the payment -- the lowest possible payment, not accelerated payments.

"The problem with 40-year mortgages and no-money down is it doesn't prepare you to be a homeowner," she says. "Any fool can do that (get a high-ratio mortgage). But not everyone can be a homeowner."

Ms. Vaz-Oxlade chides the big banks for joining other lenders in adopting programs that she says have loosened the rules for mortgages and credit, "creating conditions right for default.

"It's almost as if we have rinsed our minds of 1990, when there was a correction in the real estate market," she says. "All markets have a cycle. When I see this kind of unrealistic optimism, that nothing bad will happen, it makes me scared for people."

The author of several books on consumer finances, Ms. Vaz-Oxlade accuses the banks of giving in by using a formula for credit scoring for mortgage purposes that is in conflict with sound lending practices.

The Certified General Accountants Association of Canada agrees that too much choice may be a bad thing.

"While lending institutions afford a beneficial service to society and its constituents, the risk tolerances of those institutions should not be exercised as a substitute for the judgment of individuals who must discern between good and bad credit," it says in an October report titled Where Does the Money Go: The Increasing Reliance on Household Debt in Canada.

The report points out that Canada's household consumer debt reached the $1-trillion mark in 2006 and has been climbing since, a trend Ms. Vaz-Oxlade's show and her website at www.gailvazoxlade.com try to reverse.

But it's not easy. An upcoming episode will feature homeowners whose monthly mortgage payments are financed from a line of credit.

"They're the perfect example of someone who is not ready for home ownership," she says. "Shame on the financial institutions for giving them a mortgage and a line of credit."

Ms. Vaz-Oxlade says offering 40-year mortgages and no-money-down options to people who don't know how to budget is "like taking a child into a candy store and telling them to eat anything they want. We're not educating them about the consequences."

But Mary Ellen Brown, director of home equity financing at the Royal Bank of Canada, defends her bank's decision to offer no-money-down, 40-year mortgages as "a good choice for some clients."

Those products, she says, are the result of a recognition by the financial industry that the cost of homes in Canada is going up, and more people want to own their homes. "It's still more attractive than renting," she says, adding that if things worked the way Ms. Vaz-Oxlade wanted, many people would be "missing an opportunity to build equity and real wealth."

Ms. Brown says the banks have not loosened their credit standards, "because you still need the capacity to repay." The checks and balances at RBC, she says, would deny a mortgage if there was a history of bad credit.

"Just because someone has opted for 40 years doesn't mean they have bad credit," she says, adding that RBC doesn't approve longer amortization mortgages without first discussing all costs -- such as default insurance premium surcharges -- and options -- such as accelerated payments -- with the borrower.

"It is our duty to make sure a client goes into this with their eyes open," she says, pointing out that the bank's online mortgage calculator is one of the few that shows potential borrowers how much interest they would pay over the life of the mortgage.

Ms. Vaz-Oxlade isn't convinced. Her advice: "If you can't afford a down-payment, don't buy."

- - -

Mortgage Options

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Accelerated weekly

Weekly payment: $315.46

Mortgage balance after 5 years: $171,819.25

Cost over lifetime of mortgage

Total payment: $345,762.93

Total interest: $145,762.93

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Monthly

Monthly payment: $1,261.84

Mortgage balance after 5 years: $179,289.98

Cost over lifetime of mortgage

Total payment: $378,548.84

Total interest: $178,548.84

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Accelerated weekly

Weekly payment: $267.48

Mortgage balance after 5 years: $186,270.32

Cost over lifetime of mortgage

Total payment: $426,831.36

Total interest: $226,831.36

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Monthly

Weekly payment: $1,069.91

Mortgage balance after 5 years: $192,605.48

Cost over lifetime of mortgage

Total payment: $513,547.74

Total interest: $313,547.
http://www.mississauga4sale.com/mortgage-qualifier-payment.htm

http://www.mississauga4sale.com/rates.htm

Read my recommendations on becoming mortgage free sooner

Read more about:

Interest Rates
Power of Sale Properties
Price Trends
or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, Mortgage Interest Rates, resources

Read more!

Sunday, February 17, 2008

Housing Choices when Selling One home and Buying Another - which to to first?

Housing Choices of Buying Another and Selling One

In a perfect world, you sell your old home and buy the new one on the same day. Given that things rarely turn out perfectly, here are some things to keep in mind as you negotiate the sale of one house with the purchase of another.

Time it right

Fall and spring are the best times for homes to move and you want to consider the season of the year when buying and selling. And if the closing dates aren't going to coincide, a gap rather than two mortgages is the better. It's easier and usually cheaper to find temporary housing than juggle two mortgages.

Selling First

Selling your home before buying a new one minimizes financial hazards. Even if you have to find temporary housing, it's generally cheaper than two mortgages.
Get an appraisal first thing off the bat. That way you'll have a good idea how the sale of your home will effect your purchasing power on the new one. This will help keep you from over extending your mortgage abilities.
Get pre-approved on a loan for the new home.
Until most of your contingencies have been met, wait to put an offer on a new house. You don't want to be left holding the bag, or in this case, the house.
If you're ready to accept an offer on your home, but haven't found the right new home, negotiate a long escrow or a sale/lease back. This will give you more time to look for the new home. Otherwise, look for temporary housing.

Buying First
It happens. You're only thinking of buying, and suddenly the right home shows up. Now you have to sell your old home quickly. Here are some tips on making things work in your favor:

Negotiating a long escrow on this side of the sale works, too. You can also make the purchase contingent on your house selling. This will work better in a slow market, but it's worth a try in any market. You never know what may also work best for the seller of your new home.
Try and schedule the closing date of your current home prior to the closing on your new home. Temporary housing is generally a better situation than two mortgages.
Take a close look at what price you're going to ask for your home. Make sure it's realistic in the current market.
When you get an acceptable offer, check the buyer's credit history. You don't want any surprises that are going to delay things. If you've closed on the new home, but haven't sold the old one, consider renting it out, or taking it off the market until the next season (or until the market improves).

Same Market or Across Country

Generally, if you're buying and selling in the same market, you can negotiate closing dates to work for you. But when you're dealing with a cross country move, it's a lot harder. A real estate professional really comes in handy at this point. Legal documents can be faxed or sent via overnight courier and your focus won't be stretched to the limit. You may end up renting one home or the other, or have to consider a bridge loan. But with someone local in the market on your side, it will hopefully be less stressful.

Show Me the Money

Make sure you have a tight hold on, and a clear understanding of, your financial situation. Cash reserves are always helpful, but never more so than during the purchase of a home. Two to three months is the recommended reserve, but if you don't have it, this is where the bridge loan comes in handy. Some lenders are more inclined to make a loan if it's for the purchase of a home. If you're a smart shopper/seller, you'll accept an offer from someone who's flexible about move-in dates. It can save you money in the long run. Too many moves with storage costs can quickly eat up any profit you may have made in the transaction

Should you buy or sell first?

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, Real Estate Strategies, selling

Read more!

Friday, February 15, 2008

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?

The Toronto, Mississauga and GTA condominium market is flourishing, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like prices.

Due to the advantages of home ownership compared to renting your property, many people like you will soon be reaching a point where you want to buy a detached home. However, you may not be sure whether you should actually buy a house or if you should look in to buying a condo instead. This is especially true for younger home buyers who might want the benefits of living in the more communal situation of the condo.

Thus, you have a decision to make. Should you purchase a condo or go for a more traditional detached home or semi or townhouse? You should consider many factors such as your lifestyle and then consider the pros and cons of each choice before deciding which to buy.

Of course you decision is not life long as you can always sell the property and switch, but it's best to consider some major factors before diving into your purchase!

You may wish to purchase a detached home, semi or townhouse when the following items hold true:

You don't mind the occasional maintenance item and actually enjoy spending time and money and investing into your home
You currently have or plan to have a large family.
You are a very private person who does not like living close to your neighbours or having your home choices regulated by an association.
You are investing in home ownership primarily for the purpose of resale of the home in the future (since property values are usually higher than condo values).
You are seeking to purchase a large home and / or you need outdoor grounds areas for things like large pets.
You enjoy maintaining your own yard or garden.
You may live in a rural area or in a location where there are not many condos on the market.

A high-rise condominium may be the better choice for you if:

You are a single individual or a couple or an empty nester that is looking for a small home rather than a large property.
You don't have a lot of money to spend but still want to invest in home ownership.
You are interested in being part of a small community living in the same building or complex.
You are comfortable living in close proximity to your neighbours.
You don't mind having certain aspects of your property ownership regulated by a group of elected people who form the condo association
You live in an urban area where condos are very common, affordable and gives you much choice
You run a busy lifestyle and prefer to enjoy amenities like a pool or a shaded grounds area but aren't able to maintain such amenities yourself either because of the time that it takes or the cost.

A high-rise condominium may be best for single individuals or couples who have neither the money to invest in a house nor the time to maintain the upkeep of the larger home. These tend to be young people enjoy the benefits of apartment style living in close quarters with their neighbours, who are comfortable having some regulation by the home owner's association and who enjoy sharing common areas with others. Often, condo buyers are first time home buyers. If, in contrast, you are an older adult who has (or may soon have) a family and would like the freedom and privacy of a home with its own property, then a house is probably the right choice for you."

There are many items to consider when choosing between a high-rise condo and home purchase. Regardless of whether you buy a house or a high-rise condo, it's important to do your research and consider the future of the neighbourhood you're buying into. Whether it's a condo or home, the old saying of "location, location, location" remains true for either choice. Either choice is a significant investment for you and you need to find a vibrant and safe neighbourhood that will ensure a good return on your real estate purchase and investment into the future.

Read more tips about buying a home

Read more about:

Interest Rates
Power of Sale Properties
Price Trends
or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying, buying strategy, house trends, Real Estate Strategies

Read more!

Tuesday, February 12, 2008

Financing Hurdles - Self employed, needing a second home, low downpayment

In order to help you when you have financing difficulties, some lenders can offer creative financing in many different situations. Below is one of those lenders. Some lenders feel that they can offer alternatives and help you with their financing, if you need a contact with Scotia, please let me know and I will forward you contact information.

Not everybody is in the same boat.

That's why Scotiabank's mortgages are not all the same.

Down Payment Hurdles

If you haven't been able to save funds for a down payment:

Scotia Free Down Payment Mortgage - Coming up with a 5% down payment isn't always easy, especially with closing costs, moving expenses, and all the other costs associated with buying a home. With this mortgage, Scotiabank pays a 5% down payment for you.

Scotia^®100% Mortgage Program - This program allows you to borrow the full amount of the property value of the home you want to buy.

Self-Employed

If you're having difficulty getting a mortgage because you are self-employed or a commissioned sales person:

Scotia^®Mortgage for Self-Employed - Scotiabank offers a simplified credit approval process and the ability to select almost any Scotiabank home ownership solution. You can qualify for hassle-free home financing with as little as 5% down.

Second Homes

If you're looking for a second home as a vacation property or a home for a family member:

The Scotia Secondary Home Financing Program offers first mortgage financing secured on all types of Secondary Homes, including Type A and Type B vacation properties.

Or, with the Scotia Total Equity^® Plan, you could use the equity in your principal residence to finance virtually any type of property from a four-season home to something more remote.

Flexibility

If you're looking for savings and flexibility with a variable rate mortgage:

Scotia Flex Value^® Mortgage - Flexibility means greater mortgage value: a low rate less than Scotiabank Prime Rate, low payments, and a guaranteed rate discount when locked into Scotiabank's 5-year fixed rate.

Scotia Ultimate Variable Rate^® Mortgage - All the benefits of lower interest rates with the security of a capped rate and fixed payments for the full 3-year term.

Consistency

If you're looking for consistency in mortgage payments:

Fixed Rate Mortgages - No matter what rates are doing, you can lock in at a rate that makes you comfortable. From 6 months to 10 year terms, all at very competitive rates.

Read more!

Monday, February 11, 2008

Here are some very innovative mortgage products for those in need

This is just a reminder of some the innovative mortgage products that are available for my clients.

- up to 100% financing... even on rental properties!
- up to 95% financing for self-employed individuals on STATED INCOME!
- money for renovations CAN be included in mortgage
- amortization of up to 40 years

Not to mention the absolute BEST customer service in the business!

*ask me about how I can offer you a FREE one-year warranty on their new home!

I have mortgage broker contacts that will also find the lowest available rate for you if you are in any of the following situations:

-weak credit
-self-employed
-new immigrant
-power of sale
-past bankruptcies
-non-qualifying income
-debt consolidation
-refinancing
-renovations

These mortgage people that I deal with would love the opportunity to show you what they can do.

Read more!

Tuesday, February 05, 2008

RRSP withdrawal qualifications under the Federal Home Buyers Program (HBP)

Did you know....Home buyers who qualify for a RRSP withdrawal under the Home Buyers Program (HBP):

have up to 30 days after closing to withdraw funds from their RSP;
don't need to use all the funds towards the down payment (money can be used for closing costs, home renos etc);
are allowed a maximum withdrawal of $20,000/ qualified home buyer;
have 15 years to repay their RSP; & Revenue Canada helps keep accounting straight by providing a statement on the annual Notice of Assessment outlining repayment requirements.

Of course, when there is a tax implication, it's always prudent for the client to review the regulations with Revenue Canada.... http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/menu-e.html

Let me know how I can help. The following list are some of the current 'best' mortgage interest rates you can find.

Mortgage Interest Rate Update
February 1st, 2008

Prime Rate .5.75%
Variable Rate .Prime less .60%
1 year closed .5.65%
3 year closed .5.95%
5 year closed .5.84%
7 year closed .5.98%
10 year closed ...6.05%
25 year closed ...7.10%

See the current online Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying, buying strategy, Real Estate Strategies, rsp home buyer plan Canada first time buyers

Read more!

Tuesday, January 15, 2008

100% Financing now available on Rental Properties

100% Financing now available on Rental Properties

With the recent changes to CMHC rules, mortgage companies can start the new year offering financing of up to 100% on rental properties with 1-2 units, as it is now available!

This is great news for both real estate agents and investors alike! On rental properties with 3-4 units, 95% financing can be offered to qualified individuals.

Let me know if you have any questions, or if you have any questions about financing investment properties.

Let's have a great 2008!

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, investment property purchase, investor, Real Estate Strategies

Read more!

Saturday, January 12, 2008

Real Estate Market Update from New Home Building Permit Perspective

Building Permits: From Boom to Gloom?

We don't normally write about a drop in Canadian building permits, even one like the 9.9% setback in November. However, given the suddenly heightened sensitivity over every twitch in the economy, today's decline is worth looking at, especially given the fact that it follows hard on the heels of a 19.6% drop in December housing starts and last week's 12.8 point plunge in the Ivey PMI for the same month. Is this trio of steep sags in admittedly third-tier economic indicators an ominous warning for the Canadian economy? In two wordsprobably not. While there is plenty to be concerned about on the outlook primarily the softening U.S. economy this sudden run of weak data in very volatile series is likely noise.

Putting it in perspective, building permits in the first 11 months of 2007 were up a hefty 12.4% from year-ago levels even with the November decline. And, keep in mind that the drop in November followed a 7.3% pop in the prior month. The latest setback was concentrated in the non-residential sector, which had been particularly frothy earlier last year (up 15.5% so far in 2007). Residential permits were also off 5% m/m, but were up by a surprisingly sprightly 10.5% year-to-date. (Contrast that with the 25% y/y plunge in U.S. building permits in the same period.)

Most provinces saw declines in November, led by Alberta (-13.8%) and B.C. (-20.0%). However, the top of last year's leaderboard was still crowded with western provinces. Permits in Saskatchewan were up 33.9% last year, with Alberta (15.2%) next in line. Notably, Ontario was in third spot, thanks to a strong 26% rise in non-residential activity.

In a separate release, new home prices were a touch firmer than expected in November, rising 0.5% m/m. This held the annual trend steady at 6.1%. In a sign of just how far-flung home price pressures are in Canada, the two biggest monthly increases were posted in Halifax and Quebec City. In contrast, new prices dipped again in Calgary, where annual price increases of 5% are now below the national average.

The Bottom Line: The Canadian building industry appears to be in the first stages of losing some momentum after a blow-out year in 2007. That's still a far cry from the deepening housing descent in clear view south of the border. In fact, given widespread talk of labour shortages in the Canadian industry, some cooling in the sector in 2008 may not be such a bad thing.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Are you thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, housing prices, national prices

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Thursday, January 03, 2008

RECO announces first-time buyers of Ontario resale homes willo benefit from new tax measure

First-time buyers of resale homes to benefit from new tax measure

News Release Government of Ontario Ministry of Finance

ONTARIO EXPANDS LAND TRANSFER TAX REFUND PROGRAM

First-time buyers of resale homes to benefit from new tax measure

The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.

"Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.

Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.

The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario's economic advantage and help manufacturers and other sectors challenged by current economic conditions.

For more information please visit: http://www.gov.on.ca/

First Time Buyers Information

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
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Labels: buying, buying strategy, first time buyers, land transfer tax, Toronto Land Transfer Tax

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Wednesday, January 02, 2008

2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

2008 Predictions for real estate, interest rates and the GTA economy.

2007 Real Estate Market Predicitons for the GTA

Blogging is supposed to be personal writings that compel you to continue reading the story. All too often my blog has contained plenty of facts and information and been short on my personal views, observations and opinions. Part of this is due to time constraints, part due to the fact that I am a logical engineer thinker and mostly because I am not much of a creative writer. So here goes my shot at wowing you with words of wisdom and predictions for 2008.

One of the interesting things I've noticed is that as I approach 50 I feel I have a right to express my opinions more freely due to my earned right of experience. I teach a course to other 'newer' agents about the internet and the importance of having a presence on the web. Certainly I've tried to maintain a high profile on the web by uploading over 1700 pages on my site to date. That does not include my 353 blog posts to date. I digress.

After 20 years in the real estate business and having gone through the dark recession years for real estate from March 1989 to 1994 you can understand if I'm a little gun shy when I look at the current market. We've now experienced about 12 years of unprecedented growth in the real estate market. If you don't believe me, check out this graph. Old school business thinking was that economics went in 7 year cycles. Clearly this is NOT the case in the GTA real estate marketplace any longer. Long live Garth Turner. He was always an inspiration to me, good or bad, he would hang his thoughts on the line at any time. I miss his articles and predictions.

We've experienced year over year increases for 12 years in a row with no end in sight. I wrote this time last year and predicted a 4-6% increase in prices for 2007 Was I ever wrong! It seems that our prices will increase over 11% this year! Last year at this time I was worried that maybe our market was stalling a little due to increasing interest rates and slowing sales. Again I was a little too conservative.

So here we sit in Canada with low inflation, low unemployment, low interest rates and a strong economy. The US is faltering due to their sub-prime lending crisis and looks like it will last another 8-18 months, at least. November 2008 is a US election and in all US election years in the past 20 years our market has slowed in the 3 to 4 months preceding a US election. Canadian dollar all time highs. So with all these upcoming uncertainties you would think that I would predict lower increases or a softening of our marketplace. Nope. I think our market will continue to hum along due to low vacancy and rates and more buyers than sellers and continuing lack of land for new development.

For 2007 I am happy to report that I was wrong. I predicted an increase in the GTA average price of about 3-4% and the actual increase was about 11% Wow, was I ever wrong on that number, and many people are quite thrilled about that!

This is what I predicted that would happen last year this time for 2007

I believe that we will see a steady and 'normal' market in 2007. We will not see the huge price increases that we saw in 2004 and 2005. Prices should increase about 3-4%, a little better than inflation for the year. As always, if you are thinking of selling, February or March may be the best months in 2007.
This is what I predicted in December of 2005 for the real estate market in 2006. I was just a little lucky!
It is interesting that many of the experts are predicting prices to rise only slightly for 2006, but nearly as not as much as they did in 2005. I would agree with this line of thinking. The last 4 months of 2005 showed signs of a more "normal" market. The market so far in 2006, up to the end of February has been normal, but nowhere near the sales volume or price increases that were experienced in early spring of 2005.
As long as rates stay about where they are we should see another year with a healthy real estate market for 2006 with modest price increases.
And sure enough, it appears that 2006 price increases will be about 5% compared to the nearly 10% we saw in 2005. The real estate boom in Toronto and the GTA is over, for the time being that is! We will have another real estate boom in Toronto, it's only a matter of time.

Read the entire post here:
http://www.mississauga4sale.com/newsletter/Toronto-GTA-Real-Estate-Market-Predictions-2007.htm

Mark's Crystal Ball for 2008

This is what I predict for 2008 in real estate, interest rates and more!

Mark's Predictions for 2008

I see that our marketplace in the GTA will see price increases just above inflation, in the range of 4-6%

I believe that mortgage interest rates will come down in the beginning of the year and stay lower compared to today's rates and not increase again until just before the US election in the fall

Rental vacancy rates will decrease, thus rental rates will increase about 7-10% or more this year. A 'typical' 10 year old 3 bedroom townhome in Erin Mills currently rents for about $1400 to $1550 per month and this will
increase by at least $100 per month by this time in 2008 This will only continue to make real estate investment properties more desirable and lucrative, it's time to buy another property if you can afford it!

The condo market will remain a strong part of our marketplace, due to affordability and lifestyle choices

I believe that the US will be just begin to see the light at the end of the tunnel by the end of 2008, their sub-prime mortgage crisis will have peaked and they will be on the road to recovery

A barrel of oil will have reached $120 per barrel sometime in 2008, mostly due to an international crisis and absurd speculation fueled by the pundits and the press

Along a similar vein to the last prediction, gasoline prices will peak at $1.20 per litre sometime in 2008 but will be $1.00 by year end.

Gold will break $900 (and it does not matter whether it's US$ or CDN$ much anymore!) sometime in 2008 but settle to $735 by end of 2008

If the experts are now stating that 82% of all buyers begin their real estate search on the internet, I believe that it will be 90% by the end of 2008

Watch out for following the emotions of the marketplace and stick to your long range goals

I believe that Mississauga will continue to be one of the top cities in Canada and the world to live in and that people will continue to choose Mississauga as one of their top choices of places to live in the GTA Read about the psychology of ownership. Real estate will always be an excellent investment especially if you get a firm hold on your finances and will continue to be the best long term investments in your future and your children's future that you can make!

Read more 2008 predictions and information at my site.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, housing prices, Mortgage Interest Rates, Real Estate Market, resources, TREB average prices toronto 2006 2007

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Tuesday, December 18, 2007

Mississauga Real Estate Neighbourhood Watch ... Instant Email Notification - Did you know you can sign up for this service with no obligation

Buying Mississauga Real Estate Neighbourhood Watch ... Instant Email Notification

So what about those homes that were $10,000.00 too high, but you would have loved to purchase!?

Simple, if the home that you love does not sell and there is a price reduction in the property, let our instant email notification home search inform you immediately! Our Mississauga Neighbourhood home search technique emails you Mississauga Ontario real estate listings, which match your criteria! Just fill out the 24/7 online form and whenever a new Mississauga Ontario real estate listing matching your criteria hits the market, it's flagged and automatically emailed to you.

You will save your valuable time and experience with this new and innovative Mississauga home searching technique. There's no need to spend your spare time searching for homes which may not even match your criteria - just sit back, relax and check your emails! Happy house hunting has never been so easy.

The smartest buyers in Mississauga are working with Mississauga real estate agents who keep an eye on the best homes in the choice areas, and are ready to react quickly to see if a listing is a good one.

There is No Cost & No Obligation (Zero) for this service...

Best of all, this exclusive service is offered to you absolutely with no obligation. It takes seconds to complete the following checklist and you'll instantly be on your way to mastering the Mississauga real estate new listings & surrounding areas. The best known technique for real estate in Mississauga and too have our home search technique be your eyes and ears for real estate. Neighbourhood Market Watch for Mississauga real estate.

Please take a few seconds and provide us with all your the criteria regarding your home search. I will then create a profile for you that will give you instant email notification and will help you find real estate in the Mississauga area and create a Market Watch based on the information you have provided.

Please browse to neighbourhood watch at http://www.mississauga4sale.com/Neighbourhood-Watch.htm we have made it even easier for you to get the 1st shot at any new listings with our Instant Email Notification. There is no obligation, so what do you have to lose? You will have any new Mississauga listings faster than looking at ads and more information than from MLS.ca. It will only take a couple of seconds to browse homes that meet your criteria.

Sign up at this page

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying, buying strategy, first time buyers, resources

Read more!

Wednesday, December 12, 2007

RE/MAX Commercial - Roll the Dice or Go with RE/MAX - Anything Less is Second Best!

This is a video of a 30 second RE/MAX Commercial showing that you require a RE/MAX Agent to sell your home.

As the commercial states, 'do you think it's easy to sell your home?'

Choose RE/MAX becuase we sell more, we know more, we advertise more.

In reality real estate is no game, you can roll the dice or go with RE/MAX - Anything Less is Second Best!

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, remax, selling, video

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Wednesday, December 05, 2007

Rags to riches to real estate

(NC)-Being wealthy is no longer a matter of being born into the right family but hard work stemming from a desire to do well. The 2007 Royal LePage Carriage Trade Luxury Properties Report - (conducted by (Ipsos Reid) - suggests that almost half (46%) of high net worth Canadians cite hard work as the main driver to attaining wealth, followed by the drive to succeed (27%) and a higher education (18%). Only four per cent (4%) of respondents chalk their success and their financial stability to being born into the right family, while one per cent (1%) attributes it to plain old luck.

A significant increase in the unit sales of high-end homes across Canada indicates that more and more Canadians are reaping from the rewards of their hard labour.

"Luxury living is no longer the exclusive domain of a few. Buoyant economic conditions and confidence in the market going forward have ignited a growing passion for investing in luxury property among an increasing number of Canadian families," said Phil Soper, president and CEO, Royal LePage Real Estate Services.

It is no wonder that the sales of high-end homes are booming; half (47%) of high net worth Canadians live in properties valued from $600,000 to $999,000, while 12 per cent live in homes with price tags starting at $1 million. In addition, demand for well-appointed properties remains strong with a trend of affluent Canadians owning more than one home.

More information on trends in your neighbourhood is available online at http://www.royallepage.ca/. Credit: http://www.newscanada.com/

Read more about our current marketplace statistics

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, house trends, resources

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Monday, December 03, 2007

How to find the right mortgage

Find the right mortgage

Photo Courtesy of metrocreativegraphics.com

(NC)-Financing a house is probably one of the largest debts you will incur in your lifetime. Here are some tips to help you to make a sound decision when you go mortgage shopping, courtesy of the Institute of Chartered Accountants of Ontario:

Where to start

"Check your own financial institution," advises Chartered Accountant John Durland, Tax Partner with Collins Barrow, Region of Waterloo. "Your banker knows your financial situation and credit rating. Do your homework - banks have a wealth of information on their websites. Or, a licenced mortgage broker will assess your needs and find you the best deal."

"Don't overlook the unconventional sources," says Toronto Chartered Accountant David Trahair, author of Smoke and Mirrors: Financial Myths That Will Ruin Your Retirement Dreams. "These include companies like ING Direct, Manulife Bank, President's Choice Financial and Canadian Tire Bank. A reliable source to easily compare rates is Fiscal Agents Financial Service Group (www.fiscalagents.com)."

Different types of mortgages

Basic mortgages include fixed rate and variable rate. Trahair explains that fixed rate mortgages can be open, which means they can be paid off any time, locked in for a longer term, or changed to a different type of mortgage.

Convertible mortgages can be locked in for a longer term or changed to a different type of mortgage, while closed mortgages have a fixed interest rate for the term of the mortgage - usually six months to 10 years.

Variable rate mortgages have interest rates that change with fluctuations in the money market and can be open, convertible, protected (the rate is capped for the term of the mortgage), or high ratio (allowing a down payment as low as 5 per cent and requiring insurance).

Mortgages and financial planning

Make your mortgage decision part of a financial plan. Paying off your mortgage and saving for retirement are important components of any good financial plan.

"Determine your goals," says Durland. "When do you want to be debt free? A longer amortization period may make sense as long as you are also building up other savings such as an RRSP.

Banks often recommend bi-monthly payments to save interest. Look at your overall cash flow first - paying down your mortgage faster may not make sense if this means you cannot pay off other debts, including credit cards."

Should I shop for the best interest rate?

"Yes!" Trahair says. A review of Fiscal Agents Financial Service Group's mortgage rates (available on their website and every Sunday in the Toronto Star) showed five-year closed mortgage rates ranging from 5.69 per cent to 7.25 per cent. "Choosing the lower rate on a $200,000 mortgage over the five-year term amortized over 25 years would save you approximately $15,111 - a lot of money saved with very little effort."

"Rates are a betting game," adds Durland. "Don't automatically assume the bank will give you the best rate - always ask for a discount. If you don't ask, you don't get." From: www.newscanada.com

Read more!

Thursday, November 29, 2007

How to make money in real estate in the GTA

There is one sure way to make money in real estate in our area of the GTA, buy a property, rent it out, hold it for at least 4 to 5 years.

Not only will you gain as your mortgage principal amount decreases during that time period as the the tenant is paying down your mortgage you also get to enjoy the increase in value of the property over time = profit.

It really is as simple as that.

All the Best!
Mark

The pros and cons of owning real estate

Read about my personal story of how to get that mortgage paid off quicker.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
On-Line Real Estate Newsletter sign up
See seasonal housing patterns

Labels: buying strategy, investor, Real Estate Strategies, resources

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Monday, November 26, 2007

10 tips for new home buyers in Ontario

10 tips for new home buyers

(NC)-While Ontario's new home market continues to ring up healthy sales, as a new home buyer you want to make sure you've made the right decision. Buying a home is the single biggest purchase most of us will ever make and, as with most important purchases, it is vital to do your homework to ensure your new home fits your lifestyle and meets your expectations.

An important part of this preparation process is to learn more about all the benefits and resources available through Tarion Warranty Corporation, a private corporation established in 1976 to provide protection for all consumers who purchase a new home or condominium in Ontario. Tarion does this by licensing and regulating Ontario's home builders and managing a guarantee fund to ensure that consumers receive the new home warranty coverage they are entitled to by law. Tarion has provided the following tips to help guide new home buyers through the purchasing process.

1. Choose the type of home that meets your lifestyle

Read the real estate section of your local paper for information about new developments. Also, check out builders' websites for photos and floor plans.

2. Determine what you can afford

Once you've chosen the location and type of home that fits your needs, meet with a financial representative to determine a mortgage amount that you can comfortably afford. This ensures that you spend your time wisely on homes within your price range. You should also consider getting a pre-approved mortgage, which will allow you to shop with added confidence.

3. Research your builder

A simple call to 1-877-9TARION or a visit to www.tarion.com will give you access to information about all registered home builders in Ontario, including their customer service record with Tarion. When you find a builder you like, talk to them about previous developments, and go straight to the source by asking current homeowners questions about their homes and neighbourhoods.

4. Attend educational seminars

These useful seminars are designed to help you learn from industry professionals about the new home buying process and the statutory warranty protecting all new homes built in Ontario. Visit the Tarion website for more information.

5. Talk with a real estate lawyer

It's important that you meet with a real estate or condominium lawyer before signing an Agreement of Purchase and Sale to make sure you understand exactly what is and is not included in the price of your new home.

6. Read the Homeowner Information Package

Take the time to review Tarion's Homeowner Information Package, which your builder will give to you before or during the pre-delivery inspection for your new home. This brochure, which is also available at www.tarion.com, explains your new home's statutory warranty, and the responsibilities of both you and your builder.

7. Prepare for your Pre-Delivery Inspection (PDI)

Be prepared for the pre-delivery inspection (PDI). It's your chance to do a thorough inspection of your new home to identify any items that are incomplete, damaged, missing or not operating properly, and have them taken care of before you move in. This is also a prime opportunity to ensure that everything has been built according to your Agreement of Purchase and Sale.

8. Become familiar with the new home statutory warranty and submit forms on time

You can familiarize yourself with the statutory warranty online by visiting www.tarion.com. Here, for example, you'll find out more about what is and what isn't covered by the warranty as well as the timelines and procedures to follow should a warranty-related item need attention in your new home. Tarion will only accept and act on Statutory Warranty Forms that are submitted on time.

9. Maintain your home through the seasons

You've made a big investment in your home, so you should take care of it year-round. It's important to remember that ongoing maintenance helps to ensure that your statutory warranty is protected. So, after you've moved in, follow an annual maintenance routine and help keep your new home in top shape.

10. Enjoy all your new home has to offer

You've done a lot of research, decision-making and waiting by the time your reach this point. Now it's time to enjoy all the wonderful things your new home has to offer.

More information for new home buyers is available online at www.tarion.com.

Credit: www.newscanada.com

Read more!

Monday, November 19, 2007

Average house prices anticipated to rise by 9.5 per cent nationally

Average house prices anticipated to rise by 9.5 per cent nationally

(NC)-A booming start to 2007 and solid price appreciations in all areas of the country have paved the way for a promising outlook for the Canadian housing market. The strong economy has fuelled consumer confidence, driving demand across the country.

"The momentum from the year's extraordinary start spilled into the second quarter, compounding typically busy spring market activity and stimulating solid price appreciations in almost all regions of the country. These conditions will certainly be an impetus characterizing Canada's real estate market through to year's end," said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

These healthy and robust conditions are anticipated to prevail throughout the year as all Canadian regions are expected to experience a rise in average house prices with double-digit gains forecasted for Edmonton, Calgary, Winnipeg and Regina in 2007. In addition, modest mid-single digit increases are expected for Central and Atlantic Canada.

The national average house price is forecast to rise by 9.5 per cent this year, passing the $300,000 mark for the first time, to $303,300. Home sale transactions are also projected to rise by eight per cent to 522,306 unit sales by the end of 2007.

What's happening in your market? http://www.mississauga4sale.com/TREBprice.htm

City Anticipated Price Change in 2007

Halifax 4.6% +

Montreal 6.0% +

Ottawa 6.2% +

Toronto 5.0% +

Winnipeg 11.9% +

Regina 13.8% +

Calgary 35.0% +

Edmonton 39.5% +

Vancouver 12.0% +

Read about Price Trends in our marketplace

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

On-Line Real Estate Newsletter sign up

See seasonal housing patterns

Labels: buying strategy, housing prices, national prices, Real Estate Market

Read more!

Friday, November 16, 2007

Checklist for condo buyers in the GTA

Checklist for condo buyers

Hello!

(NC)-It feels like there's a construction site on every road these days in Canadian cities as builders try to keep up with the never-ending condominium boom.

For people considering purchasing one of these units, it's important to know the differences in ownership compared to a typical home purchase.

Kathleen Waters, a specialist in real estate law and vice-president, TitlePLUS, offers this checklist for condo buyers:

1. Condominium Certificate: in many provinces your real estate lawyer will normally obtain a certificate from the condo corporation which may include important details such as monthly shared expenses and pending legal actions. The certificate may also show how much in reserve funds the condo has, which could affect future fees.

2. Lifestyle issues: condo rules can have an impact on lifestyle issues, such as whether you can have a pet in your unit or a barbecue on your patio/terrace. Your real estate lawyer can help you review the rules to make sure your lifestyle fits the bill. If you can, it is good to decide this with your lawyer before you sign an agreement to purchase.

3. Property rights: your real estate lawyer can also explain what property rights you will have. For instance, will you actually own your storage locker or parking space, or will you just have exclusive use of them?

4. Condominium governance: usually a board of owners oversees the working of the condo corporation and has a great deal of influence over how the building is run. If possible, potential buyers should learn as much as they can about the board and the character of the building.

5. Special issues for new developments: for those buying a just-built condo, it's important to be aware of whether there will be phasing, which means developers will build more units on the same site. This can result in delay in the availability of shared amenities.

6. Title insurance: this can protect homebuyers from costs and complications in the event that something does go wrong with a legal matter related to their new home. Many of the claims from condominium owners relate to financial matters, some of which could not have been detected before closing.

A useful resource for people looking to buy a home is the TitlePLUS Real Simple Real Estate Guide, available for free at www.lawpro.ca. The guide provides important information on the role of a real estate lawyer and also offers useful calculators, a glossary of terms and a locate-a-lawyer tool. Article courtesy of: http://www.newscanada.com/

First time condo buyer information

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Thursday, November 15, 2007

GST reduced from 6% to 5% as of January 1st 2008- How will it affect real estate transactions?

GST Reduction Information

November 9, 2007 -- A reduction in the GST from 6 per cent to 5 per cent was announced by the federal government on October 30, 2007. With regard to the purchase price of residential properties, GST only applies to sales of newly constructed and substantially renovated homes.

GST is not applied to the purchase price of resale homes, but it does apply to REALTOR® commissions. The reduced rate will become effective on January 1, 2008; however, the reduced rate will apply to the purchase price of new homes immediately, subject to transitional rules detailed below (Note: This summary has been reviewed by the Canadian Real Estate Association for accuracy).

REALTOR® Commissions

GST is generally payable when an invoice is issued. However, since commissions do not typically become payable until the transaction closes, the closing date is generally the relevant date for calculating the applicable GST rate. The GST rate will depend on when the GST on the commission is paid or payable, as follows:

If GST becomes payable, or is paid without having become payable, before January 1, 2008, the rate of 6 per cent will apply.
If GST becomes payable on or after January 1, 2008, without having been paid before that day, the rate of 5 per cent will apply.
If GST is paid on or after January 1, 2008, without having become payable before that day, the rate of 5 per cent will apply.

Purchase Price of New Homes

Ownership or Possession Transferred before January 1, 2008: Generally, the 6 per cent rate will apply if ownership of the property, or possession of it under the agreement of purchase and sale, is transferred to the buyer before January 1, 2008.

Ownership and Possession Transferred on or after January 1, 2008: The 5 per cent rate will apply if both ownership of the property and possession of it under the agreement are transferred to the buyer on or after January 1, 2008. Note the special transitional rule for new residential housing below.

Sales of New Housing under Written Agreements Entered Into on or before October 30, 2007 Where Both Ownership and Possession Transferred on or after January 1, 2008. The Following Rules Apply:

Agreements of Purchase and Sale entered into on or before October 30, 2007 but after May 2, 2006, the 6 per cent rate will apply.
Agreements of Purchase and Sale entered into on or before May 2, 2006, the 7 per cent rate will apply.
In both of these circumstances, the purchaser will be entitled to file a claim directly with the Canada Revenue Agency to be paid a Transitional Rebate that reflects the GST rate reduction to 5 per cent, net of any corresponding rebate adjustment.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Saturday, November 10, 2007

Housing Affordability - Rising price-to-rent ratios partly justified

A look beyond our standard affordability measure
Our latest housing affordability calculations showed that the proportion of before-tax household income going towards home ownership costs suffered one of its largest and most broadly based quarterly deteriorations in the current housing cycle stretching back to the mid-1990s. While the deterioration spanned every major city, it was the western markets that warranted caution because of the speed and depth of the deterioration.

Our affordability measure provides a rough depiction of trends in wages, the cost of capital, energy prices and tax rates, but it has limitations. It does not directly address whether or not house prices are high today by historical standards and how they compare to local rental options and it does not account for recent financial innovation, such as the introduction of products like extended amortization mortgages.

Another measure that provides an indication of an over- or undervalued market is the price-to-rent ratio that compares house prices to rental costs using the rent component in the consumer price index. The purpose is to compare the cost of buying compared to renting a house. While insufficient on their own to predict market valuations, together the affordability measure and price-to-rent ratios can help assess whether housing markets are inflated.

Rising price-to-rent ratios partly justified
The unanimous trend of rising price-to-rent ratios across every major city in the current housing cycle can be partly attributed to recent financial market developments and innovation. The precise combination of historically low interest rates coupled with significant financial innovation has been a key support in the current housing cycle. Interest rates were on a downward trend through much of the 1990s and have held at very low, attractive rates since the start of the decade, thus helping to fuel housing demand. Financial innovation has also helped to make the market more liquid through extended mortgage amortizations, higher accepted loan-to-value ratios and securitization. In fact, longer amortization products now dominate new mortgages in the insured market and comprise about 25% of total new mortgages in Canada.

Regional disparities behind soaring price-to-rent ratios
National price-to-rent ratios were remarkably stable through the 1990s, indicating a relative indifference between buying compared to renting a home. The result in the 1990s was a significant improvement in affordability right across the country. The tide turned at the start of the current decade and price-to-rent ratios have since increased by roughly 80% nationally. A rising ratio is indicative of house prices outpacing rental costs. These trends are not a consistent cross-provincial phenomenon. Part of the increase in the ratios is attributable to what has become an overheated market out west. However, part is also due to changing dynamics in the market that have made housing more affordable and accessible to lower-income segments.

The bottom line
While financial market trends help explain some of the increase in price-to-rent ratios in central and eastern Canada, they do not fully explain the increases out west. By considering affordability conditions in conjunction with price-to-rent valuation estimates, a fuller picture of the sustainability of current fundamentals emerges. Together, these measures point to evidence of overvalued markets in the west, while markets from Manitoba eastward appear, on balance, to be fairly valued From RBC Economics

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

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Sunday, November 04, 2007

CMHC eases down payment rules for properties

CMHC eases down payment rules for properties

Move risks overheating already hot housing market

You have to wonder what David Dodge will be thinking this time. Just over a year ago, the Bank of Canada governor met with Canada Mortgage and Housing Corp. because of his fears exotic mortgages were juicing an already robust Canadian housing market. Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

The Crown corporation, which controls about 70% of the mortgage insurance market in Canada, has quietly introduced changes that lower the down-payment threshold for an investment property. Instead of needing 15% down, Canadians will be able to buy a second property -- not to mention a third and fourth and fifth -- with no money down.

"These enhancements will ensure continued supply of affordable rental accommodations across Canada," said Pierre Serre, vice-president of insurance products with CMHC.

Critics charge CMHC once again has moved into risky territory, the last time being its decision to allow Canadians no money down on a principle residence. "Look at the fee, anytime it's that high, you know there is a lot of risk," said one senior mortgage industry observer.

The mortgage insurance fee for the new product is 7.25% of the total amount of the loan. So a $300,000 mortgage would have a $21,750 mortgage insurance fee.

Instead of paying the fee up front, CMHC will allow that fee to be added to the overall mortgage which can be amortized over as many as 40 years. Based on 5.8% interest, the current discounted rate for a five-year term, it would cost just over $1,700 a month to carry that $321,750 mortgage.

By law, any consumer with less than a 20% downpayment must buy mortgage insurance if they are borrowing money from a financial institution covered under the Bank Act.

None of CMHC's competitors are coming close to this new offer. Genworth Financial Canada -- the other dominate player with about 30% of the mortgage insurance market -- requires investors to have at least 10% down.

Back in July, 2006, Mr. Dodge demanded a meeting with the federal crown corporation. He was concerned about products like interest-only mortgages which give consumers the option of not making a principle payment for the first 10 years of a mortgage.

Mr. Serre said CMHC did consider the issue of whether the changes could overstimulate the market. "We look at those kind of considerations all the time," he said, adding that to get a loan consumers will have to meet certain criteria in terms of their overall debt load. "We're not trying to get people into situations they can't manage."

Some question whether there was any need for the latest change, given how strong the market in Canada remains.

The Building Industry and Land Development Association said this week condo sales in Toronto - the largest market for new high rises in North America -- were up 31% over the first nine months of the year from a year earlier.

"I'm not sure why CMHC is relaxing the rules, the logic escapes me," said Stephen Dupuis, chief executive of BILD. "The market is strong. I look at what is happening in the United States and wonder if there is a need to be so free with credit."

The real reason for the new program, suggest some commentators, is CMHC trying to fend off competitors in the marketplace. In a constant battle with Genworth, CMHC is also facing up to four new mortgage insurers who have applied to do business in Canada or are already licenced to do so.

"There are competitors in the marketplace that didn't exist before. They are reacting to competition that hasn't even materialized yet," said Mr. Dupuis. CIBC World Markets senior economist Benjamin Tal said the latest changes by CMHC are probably just the beginning. "The genie is out of the bottle, this mortgage market is starting to move. Over the past 16 months we've seen more changes than the past 30 years," said Mr. Tal. Garry Marr, Financial Post
Published: Wednesday, October 24, 2007

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

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Labels: buying, buying strategy, cmhc, first time buyers, investor, resources

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Saturday, November 03, 2007

Now's may be a good time to lock in a mortgage - but I still think to go short for the long term

Now's may be a good time to lock in a mortgage - but I still think to go short for the long term, read more here http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Mortgage rates have hit multiyear highs, and there could be worse to come before things settle down.

Call it yet another example of collateral damage from the problems in the U.S. subprime mortgage market.

Simply put, it's costing banks and other lenders more to raise the money they use to finance mortgages, and they're passing the cost on to people buying homes and refinancing existing mortgages.

That's why the posted major bank rate for five-year mortgages is as much as 7.44 per cent right now, which is the highest level since May, 2002, and why new variable-rate mortgages are becoming more expensive almost by the day (existing variable-rate mortgages are unaffected).

A discount of 0.9 of a percentage point off the prime rate used to be a good but attainable deal for borrowers. Today, mortgage broker websites - remember, these guys have access to many lenders - are showing best deals of prime minus 0.6 or 0.75 points.

Alex Haditaghi, CEO of Mortgagebrokers.com, said his contacts with bank representatives suggest that fully discounted five-year rates could go as high as 6.5 per cent from their current level around 6 per cent. He also warned maximum discounts on variable-rate mortgages may shrink further. "Two banks have given the heads-up that if you want to lock up your clients, do it now because by Nov. 15 you're going to see us go to 0.5 below prime."

If you're looking for a house or have a mortgage expiring in the next three or four months, you should talk to lenders right now to lock in the best possible rate. A 120-day rate guarantee is pretty common these days and it offers a shield against further rate increases. Shopping around for rates is more important than ever today because lenders are all taking different approaches to the current mortgage-market uncertainty.

Borrowing costs for mortgages track rates in the bond and money markets, which in turn are a reflection of sentiments about where the economy and inflation are headed. Today, inflation is contained in Canada and recently there have been economic forecasts that call for slower but still solid growth in 2008. Add it all up and you have an environment where rates should be holding tight, not rising.

The reason why this isn't happening is related to the same junk mortgages in the United States that helped pushed the stock market into its summer slump. These mortgages were packaged into investments that were widely purchased by banks, investment dealers and other institutional investors who are now a lot more risk-sensitive than they were before.

One way for investors to manage risk is to demand higher returns, and that's in fact what Canada's lenders are running into when they issue the short-term securities they use to finance variable mortgage loans. If the banks have to pay more, they have to charge more to keep up their profit margins. So it is that we have the incredible shrinking variable-rate mortgage discount in Canada.

Fixed-rate mortgage rates have jumped recently in what can best be described as a catch-up to this past summer's financial market troubles. You'll see this not only in the five-year rate, but also in posted big bank one-year rates that are as high as they've been since early 2001.

Benjamin Tal, senior economist at Canadian Imperial Bank of Commerce, said lenders held mortgage rates steady through August and September, and even cut them a bit at one point. Then, with bond yields on the rise earlier this month, a decision was made to bump up five-year rates significantly. "You might say that consumers got an extra two months of relatively cheap rates," Mr. Tal said.

The biggest victims of the U.S. subprime mortgage situation here in Canada are people with poor credit histories, new immigrants and the self-employed. Their mortgage applications are being scrutinized more carefully than six months ago, and some people are being offered loans at higher rates or are being rejected.

Tighter lending rules are going to be a fixture for a while, but higher mortgage rates may prove temporary. CIBC's Mr. Tal said the factors making variable-rate mortgages more expensive will slowly die away, and he argued that the state of the economy in both Canada and the United States doesn't suggest much risk of rising rates. "Over the next six months, it's very reasonable to think that rates will be stable, with a bias downwards."

If you're in the market for a home, get a rate guarantee and then keep an eye on the housing market. It's been hot, like, forever and high rates are just the sort of thing to cool things down.

Mortgage rates

Big Six banks

Bank of Montreal Mortgage 7.44%
Bank of Nova Scotia 7.44%
CIBC Mortgages 7.44%
National Bank 7.40%
Royal Bank of Canada 7.40%
T-D Mortgage 7.44%

Who has the lowest rates

ICICI Bank Canada 5.75%
Canadian Tire Bank 5.85%
Manulife Bank 5.85%
Citizens Bank of Canada 5.99%
Comtech Credit Union 5.99%
First National Financial 5.99%

SOURCES: BANK OF CANADA AND CANNEX FINANCIAL EXCHANGES

Read more about what my suggestions that you should do here:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, first time buyers, Interest Rates, Mortgage Interest Rates, resources

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Monday, October 29, 2007

Positive CMHC Housing Market Outlook for 2007/2008

CMHC released their Housing Market Outlook for Q3 2007. The housing market forecast for the balance of 2007 and 2008 remains positive.

This article will highlight some of their findings (a "Coles Notes" version!):

Ontario - Overview

New home construction activity will moderate but remain near historical averages in 2007 & 2008;
Growth in Ontario's economy will range between 2 & 2.5% annually this year & next;
Ontario's economic growth will lag behind the Canadian average, but the growth gap between Ontario & the west will gradually narrow.

Ontario - Resale & Prices

Existing home sales through MLS will set a new record this year. Slightly higher carrying costs in 2008 will pull sales only modestly lower.
A more balanced resale market, resulting from higher listings, points to slower growth in house prices;
Average MLS price in Ontario will rise by 5.3% this year & 3.4% in 2008.

Mortgage Rates

Moderate inflation and a strong Canadian dollar vis-à-vis the U.S. dollar, will help keep Canadian bond yields and mortgage rates flat over remainder of this year.
Posted mortgage rates for 5 year terms are forecasted to be in the 6.5% - 7.5% ranges (for remainder of this year & 2008).

Ontario - Multiple Starts

Healthy pool of first time buyers looking for less expensive homes combined with provincial gov't efforts to promote higher density construction, suggest condo apartments will remain in demand;
Multiple starts will remain relatively stable - increasing slightly from 2007 to 2008.

Ontario - Single Starts

Demand for higher priced detached homes will cool despite a rapidly growing population of 'mid 40s' which prefer low density homes;
Single starts will cool from 2007 - 2008.

The Canadian Economy

The Canadian economy grew at a faster pace than expected in first quarter of 2007;
Consumer spending made a significant contribution to economic growth;
Key challenge for the Cdn economy has been the deterioration in net exports due to high value of CDN $ & the slow growth rate in US economy;
Consumer spending should stay vibrant thanks to high employment, income gains & relatively low interest rates.

The full report is available at http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q03.pdf

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, housing prices, Interest Rates, Mortgage Interest Rates, Real Estate Market, Real Estate Strategies, resources

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Friday, October 26, 2007

Celebrating 20 Years in Real Estate!

Celebrating 20 Years in Real Estate!

I obtained my real estate license on Oct 26, 1987 and thus, today marks my 20th year in the real estate business. Much has changed in the business in 20 years. The Lord's Day Act prohibited selling real estate on a Sunday back in 1987. We did not begin using a fax machine until spring of 1988, and those fax papers would fade away after a month or two.

For the past 20 years, I carry two press releases inside my presentation folder. The one article is from the Toronto Star. It 'shouts' that the average price is predicted to rise over $200,000 in the next year. The average GTA price in October 1987 was $192,500 (today it's $380,132).

Even though I had bought my first townhouse in 1985 I needed some credibility to help me convice others that real estate was a good investment. Being new in the real estate business, I would pull out the Toronto Star article when I would meet people to prove that real estate was a good investment. I highlighted some of the paragraphs in the article and the key paragraph stated, "Real estate has always been a good investment and it has always produced excellent equity appreciation". I've not pulled out this article for about 10 years, but the same certainly holds true today as it did back then.

The other article I carry around is written by the then business editor of the Toronto Star, none other than Garth Turner. His views carried much weight back then and when he spoke about real estate, people listened. The article I carry that is written by him talks about the "horrifying experience" if you are looking for a place to live in the GTA. Prices are nearly averaging $200,000 and only one apartment in a thousand is vacant! We (Toronto) have the highest housing prices in the entire country. Mortgage rates were about 11.5% at the time and inflation was about the same! Wow have times changed, except that he also states, "We have also had the most spectacular gains in the price of real estate. There are, however, more increases to come, because as pricey as it is, housing is still essentially undervalued". Where have you heard this before? People in the GTA have been saying this same thing for the past 20 years that I've been in the business and will continue to say this for at least the next decade.

I believe that real estate will continue to be an excellent method of 'forced savings', it also gives you a firm footing to raise your family and will contintue to be an excellent long term investment anywhere in the GTA, North to Barrie, East to Newcastle, West to London and around the Golden Horseshoe to Niagara Falls.

The last 20 years in real estate has been great for me and my family. I am looking forward to more exciting times in real estate over the next 20 years and hope you can enjoy the ride along with me!

I want to thank all of my clients and friends that have supported me and used my services over the past 20 years and especially those people who 'believed in me' back in those early years.

I hope that this finds you and your family healthy and happy and I wish All the Best

Mark

Read about how to become mortgage free faster!

Read Mark's profile

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

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Wednesday, October 24, 2007

CMHC's new snapshot of Canadian housing

CMHC's new snapshot of Canadian housing

Canada Mortgage and Housing Corp. (CMHC) recently released its annual state of the nation report on housing. The 2007 Canadian Housing Observer says building greener homes in higher-density neighbourhoods near public transit, rather than in sprawling suburbs, is key to reducing the housing sector's impact on the environment and lowering greenhouse gas emissions.

The 2007 Canadian Housing Observer analyzes the relationship between environment-friendly housing construction, neighbourhood design and transportation. It found that downtown living, which provides easy access to workplaces, schools, and shops, as well as housing located close to public transit, lead to reduced automobile use. Also, better design of the suburbs results in less short-distance driving and lower greenhouse gas emissions.

The 2007 Canadian Housing Observer also examines recent trends in affordable housing, housing finance and market developments. A key conclusion about the living conditions of Canadians, which is based on new CMHC information, found that the level of Canadians living in core housing need has declined slightly from 13.9 per cent in 2002 to 13.6 per cent in 2004. Core housing need is defined as "Households which occupy housing that falls below dwelling adequacy, suitability or affordability standards, and which spends 30 per cent or more of their before-tax income for the median rent of alternative local market housing that meets all three standards."

Other key findings of this year's Canadian Housing Observer include:
- Housing-related spending grew by 6.1 per cent in 2006, contributing more than $275 billion to the Canadian economy;
- Total mortgage credit outstanding in 2006 reached an annual average of $694 billion, up 10.7 per cent from 2005. This is mainly due to increased property values, which in turn increased the average mortgage amount approved;
- All of the fastest-growing metropolitan areas in recent years were in Alberta, Ontario and British Columbia, with the exceptions of Moncton, N.B. and Sherbrooke, Québec.
- Canada's population grew at a slightly faster pace in recent years than in the late 1990s mainly due to increased immigration. Senior, immigrant and Aboriginal groups are growing more rapidly than the general population. From 2001 to 2006, the vast majority (86 per cent) of population growth took place in metropolitan areas.
- The number of households in Canada owning second homes, vacation homes, or cottages reached 1.1 million in 2005, about 200,000 more than in 1999. From 1990 to 2004, high-income earners enjoyed much stronger income growth than those with low incomes. From 1999 to 2005, the average net worth of households in Canada, after adjusting for inflation, grew at an annual rate of more than four per cent. Increased equity in real estate played a major role in this increase.
- In 2006, the proportion of gross domestic product spent on housing increased to 19.1 per cent compared to 18.9 per cent the previous year.
- Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per
cent compared to 2005.
- From a record low of 5.99 per cent in 2005, mortgage rates rose to an average posted rate of 6.66 per cent for a five-year term mortgage in 2006. They were still low by historical standards. CMHC's 2006 Mortgage Consumer Survey found that the majority of mortgage consumers (84 per cent) were satisfied with the services they received when negotiating their current mortgage. About 70 per cent of mortgage consumers prefer to use one of the major lending institutions to obtain a mortgage.
- Urban households in British Columbia and Ontario continued to experience a high level of core housing need between 2002 and 2004. One-person households accounted for almost half (46.7 per cent) of Canadian urban households in core housing need, up from 43.7 per cent in 2002. The incidence of core housing need among senior-led urban households declined from 15.4 per cent in 2002 to 13.9 per cent in 2004. The percentage of immigrant urban tenant households in core housing need increased to 36.3 per cent in 2004 from 34.4 per cent in 2002.
- The 20 per cent of households having the lowest incomes accounted for about 81 per cent of all urban households in core housing need in 2004, up from about 78 per cent in 2002. Courtesy of R.Paul Chadwick TD/CT

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, cmhc, Foreclosure, house trends, housing prices, Interest Rates, Mortgage Interest Rates, resources

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Monday, October 22, 2007

Housing Market Trends and information for buyers and sellers

This particular page will give you information about Toronto Housing Market Trends

Many reports still show Canada as a Hot Destination for Immigrants Canada's population grew last year. The increase was due to continued immigration who choose this country as home home.

Almost all regions of the country saw growth.

Canadian Mortgage Debt: Canada Homebuyers Continue get into more debt

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Thursday, October 18, 2007

What are the 3 things you need to retire?

What are the 3 things you need to retire?

First the bad news: The conventional retirement system is rapidly falling apart. Social Security doesn't expect to be able to make all its expected payments starting in 2041. Many of the companies that still have pension plans are either cutting them back or eliminating them entirely.

The trend is clear. Nobody else will take care of your financial future. With the social safety net failing, and guaranteed pensions falling by the wayside, if you ever want to retire, you need to take matters into your own hands. So if you want your golden years to be comfortable, you'd better get started. Now.

Your keys for success
A successful retirement is still possible, if you're willing to make the most of three very important tools:

Money
Time
A strong plan

The first of those should be pretty obvious -- of course you'll need money to retire. Just because you plan to stop working doesn't mean you plan to stop spending. You'll still have to eat, and you may just want to travel the world, spoil your grandkids, or do any number of other wonderful things with your newfound freedom. And all those wonderful things require cash.

So you'll need a target. Let's pick $1,000,000 as a starting point for a goal -- you can adjust it from there to match your own idea of a successful retirement and your own projections for inflation.

Time's a wasting
Of course, if you already had that kind of money, you wouldn't still be reading this. That's where the second tool -- time -- comes in handy. This table shows how much you'll need to sock away every month to reach that $1,000,000 target:

Time (Years)	8% Annual Returns	9% Annual Returns	10% Annual Returns	11% Annual Returns
10	$5,466.09	$5,167.58	$4,881.74	$4,608.33
15	$2,889.85	$2,642.67	$2,412.72	$2,199.30
20	$1,697.73	$1,497.26	$1,316.88	$1,155.22
25	$1,051.50	$891.96	$753.67	$634.46
30	$670.98	$546.23	$442.38	$356.57
35	$435.94	$339.93	$263.39	$202.91
40	$286.45	$213.61	$158.13	$116.28
45	$189.59	$135.05	$95.40	$66.90
50	$126.08	$85.70	$57.72	$38.57

As you can see, the earlier you get started, the easier and cheaper it is to reach your goal.

Get there from here
As for those 8% to 11% potential returns, those numbers weren't just picked out of a hat. Historically, the S&P 500 has earned investors an average annual return of somewhere around 10% to 11%. Even assuming that average return, not all the stocks within it move in unison. For instance, while the index itself has gained about 15% in the past year, check out the performance of some of the individual constituents within that index:

Company	One-Year Gain (Loss)
Countrywide Financial (NYSE: CFC)	(44.7%)
DR Horton (NYSE: DHI)	(38.0%)
Archer-Daniels-Midland (NYSE: ADM)	(11.1%)
FedEx (NYSE: FDX)	(6.9%)
H&R Block (NYSE: HRB)	4.6%
Tiffany (NYSE: TIF)	57.6%
Apple (Nasdaq: AAPL)	108.8%

On one end, the mortgage meltdown is hampering lenders like Countrywide and homebuilders like DR Horton. On the other end, the strong luxury goods market is helping move jewels from Tiffany's and iPhones from Apple. Mix them up with 493 other companies, and you get the performance of the index on average.

The problem with investing only in stocks, though, is that sometimes, even a broad stock index can fall. To temper that risk, many investors further diversify their holdings into bonds as well as stocks. That risk reduction doesn't come free, though -- the price for calm is a lower overall expected return. Depending on the specifics of your holdings, it's quite easy to see your expected returns fall from the 10% to 11% range to the 8% to 9% range -- or even lower.

Get started the right way
Remember those three very important tools:

Money
Time
A strong plan

As you've probably noticed, there are several questions you need to answer before you can build and execute a retirement plan that works for you. Yet you must answer them if you want any chance of both retiring well and of reaching retirement without excessively sacrificing your quality of life along the way.

Rea more about retirement and real estate

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Labels: buying strategy, resources

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Sunday, October 14, 2007

How Much Is Your Home Really Worth?


	"The true market value of a home is what a buyer is willing and able to pay for it." Setting a sales price for a home is a delicate balance. Price too high and the home won't sell; too low and it won't sell for what it's worth. Of course, the sales price should be based on fair market value--what a knowledgeable buyer would pay and an informed seller would accept. A home's value has a lot to do with what other similar homes in the area have sold for recently, taking into account size, style, age, number of bedrooms and baths, garage, lot size, condition and, of course, location. Ultimately, though, the price you receive for your home will have to do with who the available buyers are, what they're looking for and what other houses are available for sale. PRICING For more information about selling your home at the right price, read our online report, PRICING: How to price your home in our Market. Feel free to call or e-mail us for an update.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, Real Estate Strategies, resources

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Thursday, October 11, 2007

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO, OCTOBER 9,2007  Canada Mortgage and Housing Corporation

(CMHC) has released preliminary housing starts data for September 2007. The seasonally-adjusted annual rate (SAAR) of starts increased strongly to 41,800 in September from 32,300 in August. A robust annual rate of multiplefamily starts, especially for condominium apartments, drove this increase.

While condominium apartment starts were much stronger last month compared to September 2006, it should be noted that on an unadjusted basis through the first three quarters of the year starts of this housing type declined by 38 per cent compared to the first nine months of last year. The decline in new condominium apartment construction caused the total number of starts to dip by 12 per cent this year. Single-detached, semidetached and row (town) house starts were up 5.5 per cent compared to last year.

"Demand for new ownership housing has been very strong over the past year, due to seller's market conditions in the resale market driven by favourable local economic conditions and low borrowing costs," according to Jason Mercer, Senior Market Analyst at CMHC. "Demand for condominium apartments in the Toronto area has been especially strong. Record pre-construction condominium apartment sales experienced over the past two years have started to convert into increased starts. This trend is expected to continue in the last quarter of this year and through 2008."

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies, resources

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Friday, October 05, 2007

Understanding Your Credit Report and Credit Score

Understanding Your Credit Report and Credit Score

What many prospective borrowers don't realize is that the pricing of mortgages and other loans is based in part on their credit-worthiness. Consumers need to be aware of how their credit is evaluated by lenders, and how they can work to avoid so-called "bruised credit" people with a lower credit score can find themselves paying a higher interest rate, or even denied access to certain types of loans.

A credit report is a detailed history of how consistently you meet your financial obligations, and provides a picture of your financial health based on your past behaviour. A credit score is a three-digit number, usually between 300 and 900, representing your overall credit-worthiness, based on personal information from your credit report and other sources.

Both your credit report and score are important. When deciding whether or not to grant a mortgage loan, lenders refer to an applicant's credit report and score, along with a range of other factors such as income, employment history, and size of down payment.

The higher your score the more likely you are to be approved for a mortgage and receive favourable rates because the lender considers you to be a better credit risk. Several factors are used by the two credit agencies in Canada (Equifax Canada and TransUnion Canada) to calculate credit scores:

Debt payment history.
Amounts owed compared to your current credit limits with lenders.
How often you seek new credit.
Length of time you have had credit accounts.
Type of credit, such as car loans, lines of credit, credit cards.

Interst Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

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Labels: buying strategy, Real Estate Strategies, resources

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Wednesday, October 03, 2007

TD Canada Trust predictions for remainder of year

TD Canada Trust predictions for remainder of year

HIGHLIGHTS

Canadian economy records steady growth

Cross-currents will continue to blow across Canada's major industries

Inflation monster continues to lurk in the background

This morning's release of Canadian gross domestic product (GDP) for July while falling in on the soft side of market expectations revealed that the economy continued to churn out steady gains early in the third quarter. The 0.2% month-to-month increase recorded in the month leaves the economy on track to record a respectable rate of growth of 2.5-3% in the third quarter, which is only modestly slower than the 3.5% average outturn clocked in the first half of the year. As has been the case in recent months, the service sector remained the tower of strength, forging ahead by 0.3% on a month-to-month basis in July and counter-balancing another soft performance on the goods side (-0.1%). Since monthly data are notoriously volatile, we've provided a snapshot of year-over-year changes across the sub-industries As can be seen, the service areas have reigned supreme, while Canada's export-oriented manufacturing sector has struggled.

The headwinds will increase

While the weaker-than-expected GDP result pushed down Canadian bond yields and took some steam out of the overnight rally in the Canadian dollar which had pushed the loonie to 1.007 U.S. cents investors are more concerned with what may lie ahead. For one, neither the GDP data for July nor August's stronger-than-expected Canadian employment report factor in the fallout from the recent financial turmoil that spread across the globe. Certainly, credit conditions have improved since the height of the mid-August turmoil, with interest-rate spreads on riskier assets easing from their highs. Still, international credit markets have not returned back to normal, as evidenced yesterday when both the Bank of Canada and the ECB moved once again to inject liquidity into their respective overnight market in order to ease the upward pressure on lending rates. In Canada, participants of the Montreal proposal that aims to resolve the third-party asset backed commercial paper (ABCP) crisis announced this week that they will need more time to find a solution to the issue.

Perhaps more importantly, the prospects of the U.S. economy have steadily dimmed since the summer. This week's reported 4%/8% drop in new/existing home sales and further deterioration in prices point to a housing market retrenchment that still has at least a year to run. Investors were served up some better news this morning, with the reported 0.6% gain in U.S. personal spending, which topped forecasts. Yet the spotlight quickly turned to the weaker-than-expected 0.3% gain in personal income that put downward pressure on the saving rate.

Given that 70% of U.S. GDP is tied to the consumer, so much of the near-term outlook Stateside rests on the performance of the job market, and in turn, the level of business confidence. We remain optimistic that the business sector will keep its head above water in the months ahead, supported by still-healthy balance sheets and cash positions. This week's report on durable goods for August highlighted the fact that while non-defense capital spending has slowed over the past few months, it remains at a respectable level. Certainly, next week's U.S. non-farm payrolls report for September will provide precious insights. Our bet is that employment growth resumed in the month, but by only 75,000 jobs. This pace is consistent with our outlook for lethargic quarterly real GDP growth of 1.5-2% in the near term.

Cross-currents in Canada's economy

The chillier headwinds from tighter credit market conditions and softness in the U.S. economy will not be lost on Canada's economy. Little reprieve can be expected in manufacturing, which has seen its cost edge evaporate from the surge in the Canadian dollar. In some areas notably autos U.S. producers appear to be moving to shore up profitability, exacerbating the manufacturing challenge for Canada. That said, other industries will continue to enjoy solid conditions. Consumer-driven industries, such as wholesale and retail trade, will continue expand at a decent rate, supported by a 33+ year low unemployment rate. These two industries also top the list of Canadian sectors actually benefiting from a soaring loonie. Housing markets may have started to cool in Alberta, but ongoing strength nation-wide should continue to provide enormous spill-over benefits across the gamut of goods and services industries. Although resource companies are confronting rising costs and a higher loonie, ongoing rapid expansion in China will continue to provide a solid underpinning on prices for oil and metals. Above all, this week's announced $14 billion federal budget surplus for fiscal 2006-07 served up a reminder that government coffers in Canada are the envy of the G-7, providing wiggle room to initiate tax cuts and other measures to help offset some of the challenges on the competitiveness front.

Netting out these offsetting headwinds and tailwinds, we project economic growth in Canada to run at a rate of about 2% over the next year. This moderate pace will continue to fuel debate about the Bank of Canada's likely next move. In a speech this week, Bank of Canada Governor Dodge indicated that the current rate setting was appropriate in view of the downside risks to growth and inflation emanating from the U.S. and the upside risks from booming housing activity.

As we discuss in the latest monthly edition of TD Global Markets, released yesterday, it is the inflation risk that is likely to win out, prompting the Bank of Canada to raise rates by 25 basis points in December after the Fed delivers one final rate cut at its October confab. Given that financial markets are pricing in more significant easing in the U.S. and are still betting on a modest easing in Canada, we are projecting a backup in yields on both sides of the border by 30-40 basis points by year-end. Lastly, the Canadian dollar will end the year at parity before falling back to about 95 U.S. cents in 2008. Article courtesy of R.Paul Chadwick from TD Canada Trust

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

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Labels: buying strategy, house trends, housing prices, Interest Rates, Mortgage Interest Rates, Real Estate Market, Real Estate Strategies

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Tuesday, October 02, 2007

RBC's comments on Provincial Current Trends

PROVINCIAL CURRENT TRENDS

September 2007

Western provinces powering Canada's jobs bonanza

August's employment report showed that overall job gains for the first eight months

of the year were up an estimated 232,000. The unemployment rate held at its lowest

level since 1974 and wage growth continued to firm. The average hourly wage rate

for permanent workers was up 3.8% year-over-year in August, marking the fastest

pace of increase in a year and the fifth consecutive month of solid gains.

Tight labour markets provide yet another piece of evidence that Canada's domestic

economy is still on firm footing despite some weakness in job markets now evident

in the United States (chart 1). Healthy job growth, an historically low unemployment

rate and the recent acceleration in wage growth highlights the fact that Canada's

economy is operating above its capacity limits.

The strength in Canada's headline national number is largely the result of the ongoing

strength in western job markets. Alberta, British Columbia and Saskatchewan

in that order are the clear leaders on the labour market front (chart 2), clocking in

the strongest pace of job gains, the lowest unemployment rates and the fastestgrowing

labour forces.

There is also notable strength coming from Quebec's labour market, which has

added 71,000 jobs since the start of the year. Ontario's job growth is slowing relative

to the national average and its unemployment rate has edged up from last year's 6%

low but, overall, still remains healthy. Job conditions are mixed in Atlantic Canada.

Prince Edward Island and Newfoundland are tracking decent job growth. Nova

Scotia's job growth has recently slowed down, while New Brunswick started 2007 on

a slow note, but its job growth has recently started to pick up.

British Columbia Labour markets in the province are still tight,

with the year-over-year pace of job growth setting a healthy 3.2% pace

and the unemployment rate holding just above 4%. Wage growth

slowed down earlier in the year but has recently firmed, with two consecutive

months of decent gains. The province accounted for roughly 20% of

Canada's total job gains reported in the first eight months of the year. Jobs were split

roughly equally between the goods sector and the service sector. The construction,

finance, insurance, real estate, and leasing sectors have been the biggest contributors

to provincial employment so far in 2007.

Alberta The province still leads all provinces in all key job market

indicators, including job gains, unemployment rate, labour force growth

and wage gains. Hourly wages in Alberta are running at a healthy clip

but are down from last year's 7% pace and are now tracking at about

5.3% so far in 2007 a pace that continues to significantly skew the national rate.

Alberta's labour force continues to expand to accommodate the growing demand for

workers. Net interprovincial migration, although down from last year's third-quarter

peak at 24,535 migrants, is still the strongest in the country and continues to

attract workers from right across Canada. Despite accounting for only 13% of

national GDP, the province has been the single biggest contributor to job gains

this year, with 96,000 jobs created in the first eight months of the year compared

to the same period last year.

Saskatchewan Job markets picked up momentum in the latter

part of 2006 and early in 2007, but have since started to cool off.

The provincial unemployment rate is still one of the lowest in the

country but has been trending upward in the last six months. The

unemployment rate bottomed out in March at 3.8% but has since climbed just

over a full percent to reach 4.9% in August. Wages, however, are still growing

at a healthy clip. The recent softness showing up in job markets is coming from

the service sector, while the goods sector has actually picked up momentum. In

fact, the construction sector was the only major contributor to job gains in

August, adding roughly 3,800 jobs. Housing shortages are fuelling this recent

surge in construction employment.

Manitoba The pace of annual job growth in Manitoba has been

holding just above 1% so far this year and unemployment is tracking

at 4.5%. Hourly wages in Manitoba have accelerated for the

last five consecutive months and ran at a 5% pace in the first eight

months of the year compared to a year ago. With inflation at 2.2%, this has left

room for solid real wage gains to be realized in the province. Job growth so far

this year has been largely concentrated in the construction sector and some

service sector industries, including finance, insurance, real estate, education

services, and public administration.

Ontario Job markets in Ontario are lagging the national average

but still remain in healthy territory. The goods sector is still in

decline as the agriculture, forestry and manufacturing sectors continue

to shed jobs. Service-sector strength, however, still trumps

the losses in the goods sector. Wage growth decelerated substantially in the

early part of 2007 but has since picked up in the last four months. But, wages are

still dragging on the national average, with Ontario and Quebec being the only

two provinces where wage growth is below the national rate. With inflation

running at a mild 1.6% this year, real wage gains are still being realized but only

by a slim margin.

Quebec Job growth picked up in the early part of 2007 and the

unemployment rate dropped from 8% last year to a record low of

6.9% in July. The gains so far this year have been concentrated in

the service sector. The tightness evident in Quebec's labour market,

however, has not flowed into wage growth. Like Ontario, wages are growing

at a pace below the national average. Average hourly earnings were up 2%

in the first eight months of the year compared to the same period a year ago,

while the national pace is a full percentage point higher at 3%.

New Brunswick  After a slow start in the first quarter of 2007,

the province's labour markets picked up, reaching a healthy 3.7%

year-over-year pace in August. Its unemployment rate has also

been trending down. Wage growth has speeded up substantially

in the last few months and New Brunswick has the third fastest pace among

Source: Statistics Canada, Canada Mortgage and Housing Corporation, Canadian Real Estate Association, RBC Economics Research

Provincial current economic indicators

Latest month available, year-over-year % change, not seasonally adjusted unless marked S.A.

the provinces this year. The goods sector has led the gains, with

the utilities, construction and manufacturing sectors accounting

for 90% of the job growth in the sector in the first eight months of

the year. The service sector has shed roughly 3,000 jobs during

this period.

Nova Scotia Labour markets in the province are

tighter than they were last year when it experienced

an outright contraction in jobs. However, this year

there have been consecutive monthly declines in

overall employment since April. The unemployment rate has risen

a full percentage point, reaching 8.9% in August. Wages, however,

are still running at a healthy clip. Employment in the goods sector

has been mixed. Forestry sector employment remains in decline,

while manufacturing employment appears to have stabilized. The

service sector contributed 70% of the job growth in the first eight

months of the year compared to a year ago, but has recently softened

as trade sector employment has weakened.

Prince Edward Island  The support in the Island's

job market so far this year has emanated chiefly

from the service sector. A broad range of industries contributed to

this gain, including finance, insurance and real estate, healthcare

and the accommodation sector. Jobs in the goods sector are down

so far this year, with noted weakness in agriculture and construction.

More declines in construction sector employment are anticipated as

the construction industry continues to wind down after a strong run.

The unemployment rate is just above 10%, one percentage point

below last year's rate, and wage growth is coming in at a 4% pace so

far this year compared to the same period a year ago.

Newfoundland  The unemployment rate appeared

to be on a downward trajectory in the early part of 2007

as job gains picked up it dropped from its January

high of 15.4% down to a low of 12.9% in May. It has

since ticked up a few notches as job growth has eased but is still

signalling a tighter market than in 2006. Wages are growing at a

healthy clip in line with the nationwide pace and are running at more

than double the rate of inflation, translating into real wage gains.

Healthy wage growth has proved to be a decent support for the

province's retail sector, which is tracking at a 10% pace in 2007 compared

to last year.

Courtesy of RBC Economics

Local Trends in Real Estate

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, Interest Rates, Real Estate Market, resources

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Thursday, September 27, 2007

How to Become Mortgage Free quicker

You can be mortgage free sooner than you think

Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.

The experts suggest the following:

1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)

2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.

3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.

4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.

5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.

6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.

Read more about becoming mortgage free quicker

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

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Labels: buying strategy, Mortgage Interest Rates, Real Estate Strategies, resources

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Thursday, September 20, 2007

RBC reports that our Economy forges ahead in the second quarter

Strong Signals - Economy forges ahead in the second quarter

Second-quarter GDP grew by a stronger-than-expected annualized 3.4%, following an upwardly revised 3.9% gain in the first. The monthly 0.2% gain in June was also an upside surprise, with markets expecting no gains. Strength late in the second quarter suggests strong momentum going into the third.

Employment increased by 23,300 in August, beating the 11,300 increase in July.

The unemployment rate held at 6%, the lowest level since 1974 and wage growth continued to be firm. The average hourly wage rate for permanent workers rose 0.9% and was 3.8% higher than in August 2006, the fifth month of solid monthly gains and the fastest pace of increase since August 2006.

Retail sales declined 0.9% and 0.3% excluding autos. However, real retail sales advanced at an annualized 10.8% in the second quarter, the fastest quarterly pace since the fourth quarter of 2001.

Housing starts were stronger than expected in August, coming in at a 226,500 annualized rate, firmer than market forecasts for 220,000 units and faster than July's 215,600 unit rate, indicating that Canada's housing market continues to perform well, backed by strong employment gains and income growth.

Canada's merchandise trade surplus shrank to $3.7 billion in July and June's surplus was revised down by $1 billion to C$4.3 billion. Exports increased by 1.4%, while imports rose by a sturdy 3.5%, pointing to the sector acting as a weight on the pace of economic activity in the third quarter.

The year-over-year all-items inflation rate held steady at 2.2% in July, while the Bank of Canada's core inflation rate slipped back to 2.3% from 2.5% in June. However, despite the dip in the core inflation rate, it has held above the Bank's 2% target for 11 months.

Courtesy of Dawn Aspinall RBC Economics Research

Read more about the current state of real estate in the GTA

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Labels: buying strategy, house trends, investor, Real Estate Strategies, resources

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Wednesday, September 19, 2007

How Canadian city economic indicators are performing so far this year

How Canadian city economic indicators are performing so far this year

Job growth so far this year across the census metropolitan areas (CMAs) remains robust. Apart from lacklustre average annual growth reported in Saguenay, Quebec City, Ottawa, Kitchener, Hamilton and Windsor, the remaining CMAs that we track are reporting healthy annual year-to-date gains.

Saint John led the pace in July with 8% annual job growth. However, on a year-to-date basis, the cities in western Canada are putting in the strongest performances. Edmonton, Calgary and Saskatoon are all tracking gains in 2007 in the 6%-7% range three times the national rate.

Unemployment rates have ticked up a few notches after reaching record lows in many cities in the latter part of 2006. The uptick in unemployment rates is most prominent in Ontario. Toronto saw its unemployment rate reach 7.5% in July, which marks its highest rate in more than two years.

Quebec has seen its labour markets tighten significantly in the last six months. The renewed strength in job markets saw Montreal's unemployment rate drop from 7.8% in March to 6.5% in July. Quebec City's unemployment rate dropped from 6.5% in February to 4.1% in July.

Non-residential construction strength supports city economic growth

Non-residential building permits grew in June in two-thirds of the CMAs we track. The strongest growth rates were reported in Regina (up 343%), Trois-Rivières (up 224%) and Quebec (136%). The sharpest declines were reported in Thunder Bay (down 82%), Abbotsford (down 70%) and Ottawa (down 57%).

Investment in non-residential construction continued to rise in the second quarter of 2007 with heavy spending on office buildings in Alberta and Ontario supporting the gains. While Calgary led the investment gains in the commercial and institutional sectors, it was Toronto and Montreal that reported the largest dollar-value investment gain in the industrial sector.

Another strong month for city housing markets

Residential markets had another strong showing in June with strong resale activity and continued annual price gains holding in the 10% range. Thunder Bay and St. Catharines were the only two CMAs to put in a year-over-year drop in average house price gains in July. The remaining CMAs all reported healthy annual gains.

Residential permits increased at a 63% pace in the second quarter and the numbers point to continued firm activity in the third quarter.

Read more about the current state of The GTA Home Prices

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Labels: buying strategy, house trends, Real Estate Market, Real Estate Strategies, resources

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Tuesday, September 18, 2007

RBC Reports that Housing affordability hit on all sides

Housing affordability hit on all sides

Increases in house prices, mortgage rates, utilities and property taxes all combined in the second quarter to deliver a severe hit to housing affordability. By a slim margin, the portion of before-tax household income going towards home ownership costs suffered its largest and most broadly based quarterly deterioration in the current housing cycle stretching back to the mid-1990s.

Affordability deteriorated in every housing class we track, in every province and in every major city. In two short quarters, Saskatchewan has set a new affordability low concentrated in Saskatoon.

Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Albertans now pay a higher share of their country-leading incomes on average than Ontarians across every type of housing, although Torontonians still pay more than Calgarians and Edmontonians for a two-storey home. Alberta is still, however, avoiding British Columbia's stressed affordability conditions.

Housing market conditions from Manitoba eastward are not yet a cause for concern, but conditions in Saskatchewan, Alberta and British Columbia warrant caution given the speed of the massive turnaround in affordability in several key cities. The economic fundamentals are supportive, but have been priced in fairly aggressively. In our view, a continued cooling in the pace of price gains and an ongoing pull back in sales-to-listings ratios lie in the cards in these cities.

Toronto's housing affordability slid across all four housing segments, but outside the core Toronto area, housing market conditions are healthy and roughly balanced. The bigger risk to affordability conditions is the potential for higher property taxes towards the end of the decade after the current freeze on property value assessments is lifted in 2008.

Montreal's housing affordability also softened across every housing segment. However, Montreal's housing market remains one of the softest among the big cities.

Affordability deteriorated across the board in the Atlantic region, but the two-storey and condo segments saw the sharpest erosion. Despite Ontario's second-quarter affordability hit, a look at historical affordability numbers in Ontario should help calm nerves that the province may be at risk of a significant correction. Unlike many of the western provinces, affordability remains comfortably below levels reached in the late 1980s just before the major housing market crash.

Manitoba had its worst quarterly deterioration in more than a year, but is the most affordable region in the country and has managed to avoid the severe affordability stresses prevailing in neighbouring Saskatchewan, Alberta and British Columbia.

Courtesy of Dawn Aspinall RBC Economics Research

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?

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Labels: buying strategy, house trends, housing prices, Real Estate Market, Real Estate Strategies

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Friday, September 07, 2007

Title insurance policies and content can differ widely

Title insurance policies and content can differ widely

Are all title insurance policies the same? Are the coverages provided by the various title insurance companies so similar that it doesn't matter which one you choose?

These questions arise in the wake of a recent article on title insurance which appeared in the Aug. 18 New in Homes. The article quoted Toronto real estate lawyer Bruce McKenna, and Mississauga lawyer Lorne Shuman, who works for First Canadian Title.

"Both Shuman and McKenna suggest purchasers go with the insurance provider recommended by their lawyer," the article said, adding that "while there are small differences between providers, your lawyer will be working with the provider he or she feels is best for you."

McKenna is also quoted as saying that, "basically, the coverages are so similar and the market pressures to deal with claims in a reasonable way are so large that I don't feel the insurer matters very much."

I have to differ, but in doing so I should first point out in fairness that I am an elected bencher (director) of the Law Society of Upper Canada, which owns the Lawyers Professional Indemnity Company (LawPRO). That company insures all Ontario lawyers for errors and omissions, and also owns TitlePLUS, one of several licensed title insurance companies in Ontario.

In my capacity as a Law Society bencher, my legal duty is to assist in governing Ontario lawyers in the public interest. I am not, however, a cheerleader for the Law Society.

I have no role in the operations of LawPRO or TitlePLUS except to approve or not approve their annual reports, along with more than 50 other bencher colleagues. I do not sit on the board of LawPRO and do not attend its meetings.

Having said that, I feel compelled to explain that there is, in my opinion, a significant difference among title insurers. Conventional title insurance policies cover a lawyer's negligence only if the mistake relates to a loss that is listed in the policy as an insured risk.

In contrast, only TitlePLUS routinely makes available comprehensive coverage for the legal services provided by a lawyer, in addition to the listed risks. In other words, any negligence by a lawyer in a real estate transaction is covered by a TitlePLUS policy, whether or not the mistake is an insured risk set out in the policy.

What this means is that in a real estate transaction, if a lawyer makes an error amounting to negligence, the legal services coverage in a TitlePLUS policy protects the homeowner, even if the lawyer's mistake is not related to one of the itemized title risks insured by the policy.

One example of legal services coverage occurred when the buyer of a condo unit told her lawyer she wanted to pay cash, but wound up getting stuck with paying interest on a vendor-take-back mortgage during the interim occupancy period. The legal services provision in the TitlePLUS policy compensated the buyer for her $9,000 loss even though the policy did not specifically insure against this type of loss.

Without the coverage, the client would have had to sue the lawyer for the loss.

The Aug. 18 article also quotes Lorne Shuman as saying that title insurance costs about $299 for a house purchase with a mortgage, but it varies with properties and price range.

In fact, there is a significant difference in the cost of residential title insurance policies among three companies that I called last week. For a resale house selling at between $200,000 and $500,000, with one institutional mortgage, First Canadian Title (FCT) quoted $322.92. Stewart Title Guaranty Company (STG) quoted $351, and TitlePLUS (TP) quoted $238.80 including the legal services coverage.

For new homes, the premiums drop to $268.92 (FCT), $324 (STG), and $233.10 (TP). In both of these types of policies, Stewart Title rebates a fee of $100 to qualified lawyers who arrange coverage over the Internet. The fee must be disclosed to the lawyer's client.

For resale condominium units in the same price range, the premiums are $193.32 (FCT), $189 (STG) and $184.80 (TP).

Whenever I can, I use TitlePLUS policies for purchaser clients. The cost is lower, and the coverage is in my opinion far superior.
by: Bob Aaron from the Toronto Star

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Wednesday, September 05, 2007

Luxury sales continue to rise across the country

Luxury sales continue to rise
Luxury sales experience serious upward momentum in major Canadian markets, says RE/MAX Mississauga, ON (September 5, 2007) -- Consistent return on investment has prompted an unprecedented upswing in luxury home sales in major Canadian centres so far this year, according to a report released by RE/MAX.

The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets across the country between January and July 2007. Luxury home sales were up over the same period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa, reported triple-digit increases while double-digit gains characterized remaining markets. The report also found that the upper-end price points were under stress in most markets surveyed.

“The consumer appetite for luxury property has been insatiable,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Unabated demand throughout the year has created tight market conditions in a number of blue chip neighbourhoods. Limited availability of product has, in turn, placed mounting pressure on housing values. As a result, the million dollar home no longer holds the same cache it once did and in larger markets such as Vancouver, Calgary, and Toronto, it’s simply a starting price.”

Solid gains in housing values – especially in the top-end of the market – have garnered much attention. The steady upward trending has attracted a growing number of affluent purchasers who are taking advantage of both the increased equity and the capital gains exemption for a principle residence.

“Strong economic performance, especially in Western Canadian provinces, has bolstered consumer confidence levels to such a degree that purchasers in the upper-end are comfortable with a million dollar plus investment in real estate,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Recent volatility in the stock market may trigger further investment in real estate as purchasers move to reallocate their holdings.” Out-of-province and international purchasers are active in most markets surveyed, but locals still account for the majority of upper-end sales. Benchmark sales, including one home priced at close to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales taking place in the very upper reaches of the marketplace this year. In smaller centres, benchmarks have been set throughout the year and although some, such as Regina, have yet to report a $1 million sale, the day is nearing.

Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these types of property. The most expensive sale to date occurred in Vancouver at close to $5 million, while the priciest listing carries a price tag of $18.2 million in the same centre.

“It appears that a growing percentage of the population has that kind of money to spend,” says Polzler. “Growth in market capitalization has generated tremendous wealth in recent years – in fact, both the Dow Jones and S& P 500 reported double-digit growth in 2006. Demand for luxury goods overall – upscale homes, fine art, collectable cars -- is outpacing demand for everyday consumables. Inheritance has played a significant role as well, with the download on an estimated $1 trillion amount already underway.”

“When it comes to shelter, these upscale purchasers clearly want it all,” says Ash. “Price is really no obstacle when it comes to creating a legacy.” RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca.

Read more about price trends in the GTA

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Labels: buying strategy, house trends, housing prices, Real Estate Strategies, resources, Toronto Market Watch

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Thursday, August 30, 2007

Vancouver and Toronto among world's most "liveable" cities

Vancouver, Toronto among world's most "liveable" cities

VANCOUVER -- Vancouver has been dubbed the most "liveable" city in the world for the fifth year in a row.

According to the British-based Economist Intelligence Unit, an Economist magazine affiliate, Vancouver offers the most exceptional quality of life of any of 132 cities polled this year.

Toronto placed fifth.

The survey rates cities on their attractiveness to business travellers.

Last year, an article in The Economist described Vancouver as a troubled city where "homeless panhandlers yell at theatre-goers, while young addicts deal drugs on street corners."

But that wasn't enough to knock Vancouver off the top, primarily because Vancouver is not considered to be at risk of a terrorist act like some U.S. and European cities.

The Economist noted that Vancouver has low crime, little threat from instability or terrorism and highly developed transportation and communications infrastructures.

By comparison, megacities such as New York, Tokyo, London and Paris suffer from "big city buzz," it said.

"Traffic congestion and higher crime rates associated with large urban centres have to some extent offset the obvious cultural gains of living in such location," the report stated.

"This is also compounded by fears that large centres like London and New York will remain targets for high-profile terror attacks."

No U.S. cities made it onto the Economist Intelligence Unit's top 10.

Read more about why Mississauga is such a great place to live

Labels: buying strategy, Real Estate Strategies, resources

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Wednesday, August 29, 2007

Big Garages! What do buyers want?

What do buyers want? Big Garages

A survey of what U.S. home buyers want shows that garages with two or more spaces rank at the top of the list.

The 2007 Profile of Buyers’ Home Feature Preferences, released by the National Association of Realtors, says that since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 per cent. Among buyers who purchased homes without this feature, 56 per cent said they would have paid more for an oversize garage, compared to only six per cent in the 2004 survey.

Other priorities for today’s home buyers include air conditioning, with three out of every four respondents ranking this as “very important,” and a walk-in closet in the master bedroom, which was very important to 53 per cent of respondents. Hardwood floors and granite countertops each gained seven percentage points from the 2004 survey, with 28 per cent and 23 per cent, respectively, of buyers viewing these features as “very important.” Gaining six percentage points was cable/satellite TV-ready, at 46 per cent.

The survey reports responses from buyers who purchased homes in 2006. Home buyers were asked about 75 features and room types to assess the importance of each.

“Realtors see hundreds, if not thousands, of houses with their buyer clients every year and know exactly what buyers are looking for in a home,” says NAR President Pat V. Combs, of Grand Rapids, Mich., and vice-president of Coldwell Banker-AJS-Schmidt. “This insight is one more way Realtors add value to the real estate transaction and why nearly eight out of 10 recent buyers used a real estate professional when buying their home.”
According to the survey, nearly six out of 10 recent home buyers took on remodeling or home improvement projects within three months of their purchase. Close to half of home buyers who remodeled or made improvements updated their kitchen, and nearly half remodeled or improved their bathroom. New homeowners spent a median of $4,350 on home improvement or remodeling projects undertaken within three months of purchase.

More than half of home buyers believe their home has high investment potential, and another four out of 10 believe it has moder ate investment potential. Only three per cent felt their home’s investment potential was low.

“The fact that a majority of home buyers quickly remodel key areas of their homes ties into the fact that their home is a good, long-term investment,” says Paul Bishop, NAR manager of real estate research. “Regardless of market conditions in the short term, when purchased for the long term, housing is one of the safest investments consumers can make.”

Energy efficiency was more important to new home buyers than buyers of existing homes, with 65 per cent of new home buyers saying it was very important compared to 39 per cent for buyers of existing homes. Older buyers placed a higher priority on energy efficiency than did younger buyers – 63 per cent of buyers 75 and older said it was very important, but only 32 per cent of buyers who were 18-24 agreed.

The survey identified some regional preferences in home features. For home buyers in the South and Midwest, central air conditioning was a priority, with 91 per cent and 81 per cent, respectively, saying this feature was very important. Sixty-six per cent of buyers in the South thought a walk-in closet in the master bedroom was very important, while 61 per cent of Midwesterners valued an oversized garage. In the Northeast, the highest percentage of buyers placed a premium on a backyard or play area (53 per cent), followed by central air conditioning at 41 per cent. Two-thirds of buyers in the West want oversized garages (66 per cent), followed by central air conditioning at 59 per cent.

Age was the biggest differentiation in what buyers were looking for in a home. Buyers 75 years old and older wanted a single-level home (74 per cent) that was less than 10 years old (43 per cent) with a walk-in closet in the master bedroom (74 per cent). Most buyers between the ages of 25 and 34 wanted a backyard or play area (60 per cent). More than half of buyers over 65 wanted a separate shower enclosure in the master bathroom, compared to only one-fourth of buyers ages 25-34.

For those who purchased a home without it, 65 per cent of buyers said they would be willing to pay a median $1,880 extra for central air conditioning. One out of four buyers was willing to pay a median of $4,760 more for waterfront property.
Homes are getting bigger, but have fewer bedrooms. From 2004 to 2006, the size of the typical home purchased increased by about 100 square feet to 1,840 square feet, while the median number of bedrooms dropped from four to three during the same period. The median home age reported in the current survey is 12 years, down from 15 years in 2004. Courtesy of R.Paul Chadwick TD/CT

Read more about real estate purchasing decisions

Labels: buying, buying strategy, resources, selling

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Friday, August 24, 2007

How much does that $200,000 home really cost?

How a $200K home costs $400K
Do you know what your mortgage costs?

The No. 1 financial tip I can dispense is to pay off your mortgage as soon as possible. This may not be as exciting as investing in emerging markets or hedge funds, but it's the most important tip you'll ever get.

Yet, more than half of Canadians underestimate how much home mortgages really cost. According to a survey released last week, GfK Roper Public Affairs & Media found 45% of Canadians don't realize how much they pay in interest payments over the course of a traditional mortgage. Only 20% correctly answered they'll end up paying 150% to 200% of a home's price over a 25-year amortization schedule.

Thus, with a 6.43% fixed mortgage, a $200,000 house will cost almost $400,000.

How can this be? In the early years of an amortization, most of your monthly payments goes just to interest -- if you set things up the way the bank wants you to. Under the guise of making your payments "affordable," you'll barely make a dent in reducing the principal on the loan.

This is a mug's game. What you need is higher and more frequent payments: The more you pay, the more you're paying down the principal and the less interest you'll be shelling out down the road.

The survey found the misperception is the same for both homeowners and renters: only 20% of either group knew how much mortgages really cost.

If anything, homeowners are getting more ignorant. The rise of interest-only mortgages or 40-year amortization periods can only be possible in a world where consumers are oblivious to the arithmetic of compounding interest.

Alan Silverstein, a real estate lawyer and author of The Perfect Mortgage, estimates that on a $100,000, 6% mortgage amortized over 25 years, homeowners pay an extra $91,940 in interest. The monthly payment is $639.91.

The lure with longer amortization is that the monthly payments are lower. What they don't go out of their way to tell you is those payments will drag on much longer and cost you even more interest in the long run. As Silverstein says, extending the amortization is "penny wise, pound foolish."

Thus, a 30-year amortization at 6% results in lower monthly payments -- just $594.82 -- but total interest jumps to $114,136.

Move out to 40 years and the monthly payment drops even more, to $545.09. But the total interest paid over those 40 years spikes up to $161,642, or more than 150% of the original price of the home.

In other words, with a 40-year amortization, the $100,000 home ends up costing $261,642. And, as Silverstein notes, you'll have to pay all that interest in after-tax dollars, so you'll have to earn perhaps 40% more than the $261,642 to carry that debt.

The reductio ad absurdum of this is interest-only loans, where not a penny of your payment goes to the principal. You'll be paying forever. This may make sense in the United States, where mortgage interest is tax deductible, but it's lunacy in Canada.

Remember the name of the game is paying down the principal. You do this by shortening -- not lengthening -- the amortization period, and increasing -- not decreasing -- the frequency of payments. Typically, once a year, you are allowed to give the bank a lump sum of 10% or 15% of the outstanding principal. This is a great but unappreciated benefit --all the payment goes directly to the principal, speeding the day when you are mortgage free.

Read more about How to Pay off your mortgage quicker

Labels: buying, buying strategy, Mortgage Interest Rates, Real Estate Strategies, resources

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Legal Advice can be very important!

Have your lawyer review purchase agreement before you sign anything

This can be the best advice you may ever receive when you are contemplating purchasing real estate

A decision of a three-judge panel of the Ontario Divisional Court earlier this year highlights the risk of waiving conditions in a multiple-offer scenario.

In December 2001, Saeid Sharifara and his wife were refugees from Iran who had started their own business in Canada and accumulated enough capital for a down payment on a house.

Sharifara submitted an offer to buy a house through a real estate agent. Among other things, the offer was conditional on arranging financing within seven business days. One day later, Sharifara learned there were other potential buyers bidding for the property. He then submitted a second written offer to purchase the house at a higher price and with a larger deposit.

He says that at the time he signed the second offer, he believed that only the price and the amount of the deposit had been increased and that the new offer was conditional in the same way as the first had been. It wasn't, and when the second offer was accepted by the seller, an unconditional agreement of purchase and sale was made.

Sharifara testified that the agent, without his consent, did not include the financing and other conditions in the second offer. The agent disputes this and testified that Sharifara was aware the second offer was unconditional.

Four days after submitting the second offer, the buyer was approved for financing by the Bank of Montreal. He began preparations to move into the house on Jan. 10, 2002, the scheduled closing date.

Two days before closing, however, the bank withdrew its approval for financing because of discrepancies in the mortgage application. All of the dealings Sharifara had with the bank were handled by a mortgage broker without any direct participation or involvement by the applicant.

Sharifara then consulted a lawyer to review the agreement of purchase and sale and says that only then did he learn the agreement was unconditional. Despite this, he decided not to proceed with the transaction. Using the services of another lawyer, he negotiated a return of one-half of his deposit and successfully sued his real estate agent and broker for damages including the forfeited half of the deposit.

The agent and broker then appealed the judgment against them to the Divisional Court. In a decision released in March of this year, the trial judgment was reversed and the buyer's action against the agent and broker was dismissed.

Writing for the three-judge panel, Justice Theodore Matlow notes that the real cause of Sharifara's problem was not the unconditional offer prepared by the agent, but rather "the decision of the bank to withdraw the financing that it had earlier offered to provide to him."

Even if the second offer had been made conditional, as Sharifara says he expected, the financing condition would have expired before the bank withdrew its offer of financing, and the buyer "would have been left in exactly the same position he would have been in had the offer been conditional, namely, without the desired financing from the bank."

In dismissing the action, the court concluded that Sharifara suffered no damage as a result of any act or omission of his agent or broker, since they had no responsibility for the actions of the bank.

Three important lessons to be learned from the case are:

Always have an agreement of purchase and sale reviewed by a real estate lawyer before signing it or make it conditional on subsequent approval of the terms by a lawyer.

Remember that a financing commitment is almost always conditional until closing. A prudent buyer will have a Plan B in case the bank changes its mind at the last minute.

Blaming the real estate agent for something that's not his or her fault is not a wise idea.

Read more about lawyers, legal advice and cautions when making an offer

Labels: buying, buying strategy, Lawyers Legal Advice, resources

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Sunday, August 19, 2007

Buyer Agency in the GTA

“Working with a buyer's agent is like having a real estate advisor, a home finder and a financial consultant--all for free!”

Until recently, real estate agents were legally bound to represent the seller's interests in a real estate transaction, whether they were the "listing agent" or the agent who helped the buyer find the home.

That's all changed. Today, buyer's agents not only help buyers find homes, they can help negotiate price and contract terms on the buyer's behalf; provide information about a home, the sellers, previous offers and counteroffers; and help arrange for financing, among other services. In almost all cases in our area the buyer's agents are paid from the sales commissions offered by sellers.

Read more about Buyer Agency

Labels: buying,

Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

Tuesday, March 11, 2008

Seven Tips For First-Time Homebuyers

Monday, March 10, 2008

GTA Real Estate Marketplace Very Eventful!

Thursday, March 06, 2008

RBC reports Brighter outlook for second half of 2008

Monday, March 03, 2008

Negative consequences of 40 year mortgages - I agree with this post

Sunday, February 17, 2008

Housing Choices when Selling One home and Buying Another - which to to first?

Friday, February 15, 2008

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?

Tuesday, February 12, 2008

Financing Hurdles - Self employed, needing a second home, low downpayment

Monday, February 11, 2008

Here are some very innovative mortgage products for those in need

Tuesday, February 05, 2008

RRSP withdrawal qualifications under the Federal Home Buyers Program (HBP)

Tuesday, January 15, 2008

100% Financing now available on Rental Properties

Saturday, January 12, 2008

Real Estate Market Update from New Home Building Permit Perspective

Thursday, January 03, 2008

RECO announces first-time buyers of Ontario resale homes willo benefit from new tax measure

Wednesday, January 02, 2008

2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

Tuesday, December 18, 2007

Mississauga Real Estate Neighbourhood Watch ... Instant Email Notification - Did you know you can sign up for this service with no obligation

Wednesday, December 12, 2007

RE/MAX Commercial - Roll the Dice or Go with RE/MAX - Anything Less is Second Best!

Wednesday, December 05, 2007

Rags to riches to real estate

Monday, December 03, 2007

How to find the right mortgage

Find the right mortgage

Thursday, November 29, 2007

How to make money in real estate in the GTA

Monday, November 26, 2007

10 tips for new home buyers in Ontario

10 tips for new home buyers

Monday, November 19, 2007

Average house prices anticipated to rise by 9.5 per cent nationally

Friday, November 16, 2007

Checklist for condo buyers in the GTA

Checklist for condo buyers

Thursday, November 15, 2007

GST reduced from 6% to 5% as of January 1st 2008- How will it affect real estate transactions?

Saturday, November 10, 2007

Housing Affordability - Rising price-to-rent ratios partly justified

Sunday, November 04, 2007

CMHC eases down payment rules for properties

Saturday, November 03, 2007

Now's may be a good time to lock in a mortgage - but I still think to go short for the long term

Monday, October 29, 2007

Positive CMHC Housing Market Outlook for 2007/2008

Friday, October 26, 2007

Celebrating 20 Years in Real Estate!

Wednesday, October 24, 2007

CMHC's new snapshot of Canadian housing

Monday, October 22, 2007

Housing Market Trends and information for buyers and sellers

Thursday, October 18, 2007

What are the 3 things you need to retire?

Sunday, October 14, 2007

How Much Is Your Home Really Worth?

PRICING

Thursday, October 11, 2007

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

Friday, October 05, 2007

Understanding Your Credit Report and Credit Score

Wednesday, October 03, 2007

TD Canada Trust predictions for remainder of year

Tuesday, October 02, 2007

RBC's comments on Provincial Current Trends

Thursday, September 27, 2007

How to Become Mortgage Free quicker

Thursday, September 20, 2007

RBC reports that our Economy forges ahead in the second quarter

Wednesday, September 19, 2007