Financial Markets, Real Estate and the Dollar

This is a snapshot by my investment guru, let's see how much of this comes to pass.

Do you agree with anything below? Disagree?

Mark

Synopsis of the Financial Markets, Real Estate and the Canadian and US Dollar

As the markets go down,
so does OIL and C$.
Just watch the charts.

Same old, same old...
US$ up, everything down,
and then the reverse...

US$ down - to create inflation (that's why OIL goes up)
to get out of the housing mess created by US banks.
However, China comes and doesn't allow US$ to go down by much.
The stock market comes to a halt.

US$ up - recession continues.

Today is the turning point - as bank stress tests come...
Chart shows TOP ($spx - 500 leading US companies).
Closely mimicked by $tsx (but not the same - due to the weighting of gold stocks).

Canadian mutual funds are down (and will stay down in the long-term) due to the heavy weighting in energy.
Canadian mutual fund managers bet against the US$ - they will NEVER recover.
Some have already left the industry.
However, if you go for swing trading you will not only recoup all your loses but pretty much make more.
With the right stocks - in the US (in US$).
Not mutual funds.
NO "investing for the long-term".

If you want to invest for the long-term just hold C$ (nothing else).
I don't see 1:1 again, nor gold to $1000 nor OIL $100 - remember that - that was inflation.
There is no US$ devaluation and except for these 1-2 month bounces there is nothing else the US Federal Reserve can do (they are bankrupt).
They have no money - have to print or borrow from China.
And when they print $ they don't create jobs - they just give it to Wall Street.
The FED can't lower rates any more (they are zero).
32 US banks have gone bankrupt in 2009. (regardless of the stock market games).
Unemployment will be even higher this summer (the official one) -
not it is at 26 year high.
That's when you buy - on OFFICIAL BAD news.
You sell on good (are there any?).

Follow GM the next couple od days - don't be a collector
(the price should go up to $138: 100-1
reverse stock split - like NT).
Most likely GM will not be around in a month from now - the best scenario is a government-run company.

I can't take the credit for writing the above synopsis, but it's very interesting read.

So, what do you think of the above synopsis, agree, disagree, or something else?

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Good time to trade up in real estate?

I had another email commenting about the current real estate slump we are in and whether it's a good time to trade up or not. This is my current view of the real estate market in Mississauga and the GTA.

This person bought 2.5 years ago and expected to make some money on his purchase. He also wants to sell his current condo that is worth about $160k and trade up to a larger semi for about $300k. This was my response.

I understand how you feel about buying and holding and expecting to make money. Since 1995 this philosophy worked well, until the current economic slump. I've had other clients in similar situations as you. What I have found is that you will benefit by the downturn since the larger more expensive properties have dropped much more compared to your condo, thus the difference is far less than it was 2 years ago.

The market is typically good up until mid June and then slows again for the summer, until about middle/end of August. Thus, if you want to sell this spring, the sooner the better, otherwise you may wish to wait until late summer. Of course these are historical trends and each year could be different. With that said, we expect this year to be similar to previous years, just not as large of a spike in the spring. See this graph: http://www.mississauga4sale.com/TREBavg1995date.htm

Thank you,

Mark

RBC reports on the housing market

This is what RBC has to say about the Canadian real estate market. They feel that the economy is causing slower activity in our real estate market. This is mostly due to lack of spending by Canadian consumers becoming worried. Makes sense to me!

Here is their report,
Mark


Recession weighs on Canadian housing markets
The maelstrom that capsized global financial markets and knocked over the world economy has moved deeper into Canadian territory since last fall, causing damage to the domestic side of Canada’s economy, which, until then, had been resilient even though the external side had been feeling the strains for some time. As a result, overall economic activity began to contract in the fourth quarter of 2008 and the weakness is expected to continue until about mid-year this year.

Facing dimmer employment prospects and already unsettled by the constant flow of dismal financial news globally, Canadian households were struck with a serious case of the blues and became skittish about any major spending plans.

Tighter availability of credit – in part due to the evaporation of the securitization business and the reduction of the presence of foreign financial institutions in the Canadian marketplace – diminished the appetite for big-ticket items in particular. In the case of housing – for most, the biggest ticket item of all – demand was further hampered by generally poor affordability levels, which set the bar too high for an increasing number of Canadian families.

The impact of such poor underpinnings to Canada’s housing markets has been predictable: home sales have dropped; prices have given in to intense downward pressure; and residential construction has slowed substantially. The market correction took hold first and has been most pronounced in the western part of the country, although nearly all regional markets are now feeling the pinch to some degree.

As we head into the all-important spring season, the ongoing cyclical correction will put the entire housing sector to the test. However, while the pain will likely persist for many homeowners and industry participants, there are encouraging signs on the affordability front in light of developments through the fourth quarter of 2008. The sharp deteriorating trend in RBC’s affordability measures from about 2004 to late 2007-early 2008 has reversed in the past year.

At the national level, the RBC measures improved 2.3 to 3.5 percentage points between the final quarters of 2007 and 2008, with markets in Alberta and British Columbia showing more sizable repair (although this largely reflects the extent of the earlier impairment). The improvement can be primarily credited to monetary policy during that period because lower mortgage rates account for the largest portion of the reversal in RBC’s measures in almost all major urban areas in Canada except for cities in Alberta.

Rising family income also contributed positively across the country. Only in Calgary, Edmonton and Vancouver was price a constructive factor in the year-over-year change – although price has played a wider beneficial role in recent more quarters. Higher utilities and property taxes have remained a modest undermining factor.

Going forward, low mortgage rates and persisting downward pressure on housing prices will continue to help repair affordability, but slowing income growth will act as a restraint.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Mortgage Interest Rate Update in Mississauga and GTA

This table shows the latest mortgage interest rates in the GTA and area. Note that the longer term rates have come down about .2% or so over the past month. This is good news for those that wish to lock in now for the long term.

Rates can't go too much lower as the prime rate is 0.5% and the bank prime rate is 2.5%

All the best
Mark

TERM	POSTED	Best RATES*
6 Month	4.9%	4.45%
1 Year	4.2%	3.2%
2 Year	4.7%	3.69%
3 Year	4.9%	3.64%
4 Year	5.14%	3.94%
5 Year	5.45%	3.82%
7 Year	6.7%	4.95%
10 Year	6.7%	5.25%
Variable Rate		3.25%
Prime Rate		2.5%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Thursday, April 09, 2009

Toronto March 2009 Housing market indicators

Housing market indicators

The table above shows that it is taking 40 days to sell a property on the TREB mls versus 30 days a year earlier. There are about 15% more listings on the market right now compared to a year ago. Again, this indicates that the market is softer compared to a year ago

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

RE/MAX reports on first time buyers

This is a report issued by REMAX for first time buyers. REMAX feels that first time buyers will be the main force in the residential market this year.
All the best!
Mark


First-time buyers driving force in Canada's residential real estate markets, says RE/MAX

Mississauga, Ontario (March 11, 2009) - A report released today by RE/MAX confirms that entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada.

The 2009 RE/MAX First-Time Buyers Report highlighting first-time buying activity in 32 residential housing markets across Canada found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market.

Increased inventory and longer days on market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade.

While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today's buyer-centric real estate climate.

The new reality is that homeownership remains well within reach for most first-time buyers."

"While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices," explains Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Affordability has greatly improved and buyers are firmly in the drivers' seat in just about every market we surveyed.

Falling market, moving up to larger home, should I sell?

I received another good question about whether to buy a larger home since the price of the home they are selling is falling. The full question and answer are below.

Mark

---

From: mc
Subject: Re: Selling my townhouse and moving up to a larger home

Hello,
thank you for getting back to me, I was looking to put my townhouse up for sale some time this summer.

I was looking to get 300,000 for my home so that I could have some money to put down on another home since I would like to move to a bigger home.

Thanks
mc

Mark's answer:

Hello MC,

It's possible that your townhome may sell for $300,000 it depends upon how the market is at the time that you list it for sale. As well as condition, extras and upgrades of course. But the market conditions are most important.

As you probably have read and heard, our real estate market is softer than it has been for the past 12 years or so. This means that it may take a little longer to sell your townhouse.

Plus, people are predicting prices may drop more this year, most likely this is the case. Although this will affect your selling price, the larger homes will drop more than townhomes, so in the final analysis, the difference between the sale price of your townhouse and the purchase price of the larger home will be less and you will benefit!

At any rate, keep me posted regarding your plans and please let me know if you have any other questions at this point in the process.

Thank you,
Mark

Condo versus Freehold Townhouse- what about maintenance fees?

One common question that I see is regarding the maintenance fees on a condo townhouse. Many buyers ask for freehold townhomes, but condo townhomes can have low maintenance fees and there are other benefits too.

I hope this finds you Happy and Healthy!

All the Best!

Mark

---

This is the question I received from: GR
Subject: RE: townhomes

Thank you for getting back to me.

My only trepidation with condo townhomes is the arbitrary increase in maintenance fees that can happen. What range would you say the low maintenance fees are in?

thanks,

GR

__________________________

This is my answer to her question:

__________________________

Hi GR,

I understand your hesitation and have had other purchasers feel the same way. What I have found is that maintenance fees must be voted on by the board of directors and then the owners must ratify any increase. Normally, maintenance fees would only go up by 1 to 5% at about the most.

With the newer complexes they are fixed for the first 3 years and then escalate very slowly. The status certificate is a document that shows current and future budgets and will indicate any potential increase in maintenance fees over the next year and sometimes longer. Just depends on the range of the future budget.

Low maintenance fees would be in the range of about $90 to $175. I would think that higher maintenance fees are in the range of $250 and up. There are many complexes in Mississauga and surrounding areas that have low maintenance fees.

Also, the maintenance fee covers grass cutting, snow shoveling, garbage removal, common area lighting etc. Most important it covers your building insurance. Thus, you require less property insurance as you only need to insure your contents. I would say that you would save about $200 from your insurance premium in a condo townhouse versus a freehold townhouse, maybe more.

We will email you some listings with lower maintenance fees so you can see what you are getting into.

Thank you,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Many people are talking about mortgage refinancing

Hello and I hope you are enjoying your day

Mortgage refinancing is a hot topic at the water cooler these days. Most mortgage holders in a fixed rate mortgage have been comparing their contract rate to the current interest rates.

In many cases, borrowers would benefit by renegotiating their current mortgage. The interest saving with the lower rate is often significantly greater than the penalty charged for an early payout.

I know brokers who would be happy to 'do the math' and determine whether it makes sense to renegotiate a mortgage. Lender rules regarding penalties vary; the only way to know the payout penalty is by directly contacting the lender for this figure.

Some lenders may offer relief regarding the penalty if the mortgage remains with them, others won't. Also, beware of the 'Blend & Extend' rates, they usually have the penalty fee worked into the new rate calculation.

Yesterday's Globe and Mail had an interesting article regarding mortgage renegotiations. This is a link to Rob Carrick's article, The Art of Mortgage Renegotiation.

see here

Happy Friday the 13th! Enjoy your looooonnnnnggggg weekend !

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Shortage of supply? and Little competition? You're kidding!

People are asking me when I make comments such as there is a "Shortage of supply? and Little competition?" and this is the truth in many areas of Mississauga.

That's exactly what we are finding. I know it's not intuitively correct, but many of the properties currently on the market have been there for some time, are tired and not updated.

There is a serious shortage of good homes on the market, especially in some higher demand areas of Churchill Meadows. I've sold two homes in Churchill Meadows, both sold in less than 10 days because they showed very well and were priced right.

Credit Pointe is also an area that is in good demand and you live on one of the nicer streets, so if your home shows well and is priced right, it will sell.

It's not catastrophe out in our Mississauga marketplace, just a slower paced market, there are still hundreds of homes selling each month.

I feel we are about near the bottom, we many stay here for 2 to 6 months, but I don't see prices falling too much more. I may be wrong, but there is much pent up demand out there, many people with cash waiting to hear the news that the market has turned and by then it will be too late.

At any rate, just wanted to clarify and post here on my blog for all to see my comments!

Thank you,

Mark

What happens if a buyer does not close on a real estate sale?

This is a common question that I receive from sellers that I deal with, such as "what happens in the event when the purchaser does not have the funds upon closing and will not have the funds, regardless of any extensions"

Please understand that I am not a lawyer and cannot give legal advice to this question, this is a question for a lawyer to answer in full. I can shed some light on my experiences and teachings with such matters.

If the purchaser does not close on a sale on the agreed upon date, then it's incumbent upon the seller to put the property back on the market and try and resell at the best price and terms. In law, it's called, you have to "mitigate your damages". This means that you, the seller, has to try and reduce any potential loss you may incur when you resell. If there is a shortfall from the second sale compared to the first and you may incur extra costs, the seller would go after the first buyer for costs and additional out of pocket expenses.

Then there is the issue of the deposit that my real estate company is holding in trust for the buyer. It remains in our real estate trust account until one of the following occurs.

My teaching and experience regarding closings that fail is that there are 3 'typical' methods that a deposit comes out of trust.

1. If there is a successful sale
2. if there is a mutual release and
3. if there is a court order

There are others, but these are the main methods. Thus, if you sale does not close, you attempt to resell, any loss you incur you will attempt to go after the money in trust and attempt to negotiate with the first buyer to cover these costs.

On the mutual release you and the original buyer would agree to an amount of the deposit that comes to you and an amount that goes back to the buyer. If you cannot agree on the terms of the mutual release, you would have to go to court and sue the buyer for what is called 'specific performance' since the buyer did not consummate the sale.

Again, I am not a lawyer and you should ask your lawyer to further clarify what happens if a sale does not close.

Thankfully, this situation of a buyer not closing does not happen too frequently in real estate so we don't have to deal with it too often.

I've been in the real estate business for just over 21 years and this has never happened to any of my sales over the course of my career in real estate.

Thank you,

Mark

Price reductions In Mississauga to sell current listings

The reality of our current GTA and Mississauga marketplace is that you have to price aggressively in order to get sold. When I say aggressively, I mean that you have to be priced within 2% or so of market value, otherwise you may not sell in this marketplace.

I've had 3 listings that have been on the market for just over a month and although we are receiving showings, we've now had to reduce the prices to be price leaders in order to sell.

One listing is located at 3120 Turbine Crescent, a freehold townhouse in Churchill Meadows and it's now reduced to 299,999

See details and slide show at this link for Turbine:

http://www.mississauga4sale.com/listings/3120-Turbine-Crescent.htm

I also have two semi detached homes that are side by side (attached) where one is currently owned by the parents and the other by the children. This is a perfect setup for people that would like to have separate homes, but attached!

The one semi is located at 1185 Prestonwood is now asking $354,900 and the next door attached semi is now reduced at 1187 Prestonwood to $334,900

See details and slide show at this link for both properties at Prestonwood at this link:

http://www.mississauga4sale.com/listings/1185-Prestonwood-Crescent-Heartland.htm

and

http://www.mississauga4sale.com/listings/1187-Prestonwood-Heartland-District.htm

Please let me know if you would like to see inside any of the above great homes!

Thanks

Mark

10 Questions to ask your realtor

These questions came across my desk the other day and I thought I would post them here.

I think that every buyer and seller should ask these questions to their prospective agent, you'd be surprised at the answers that you will get!

All the best!
Mark

10 Questions to Ask a Real Estate Agent - How to Interview an Agent

By Elizabeth Weintraub, About.com

Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation. You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too. Caution: Don't interview agents from the same company! Ask your Scotiabank Mortgage Specialist to introduce you to a Scotiabank Key Partner Realtor.

1. How Long Have You Been in the Business? The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.

2. What is Your Average List-Price-to-Sales-Price Ratio? Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.

3. What is Your Best Marketing Plan or Strategy for My Needs? As a buyer, you will need to know: How will you search for my new home?; How many homes will I likely see before I find a home I want to buy?; Will I be competing against other buyers?; How do you handle multiple offers?; Do you present offers yourself? As a seller, you will need to know: Specifically, how will you sell my home?; What is your direct mail campaign?; Where and how often do you advertise?; Will you show me a sample flyer?; How do you market online?

4. Will You Please Provide References? Everybody has references. Even new agents have references from previous employers. Ask to see them. Ask if any of the individuals providing references are related to the agent. Ask if you can call the references with additional questions.

5. What Are the Top Three Things That Separate You From Your Competition? A good agent won't hesitate to answer this question and will be ready to fire off why he/she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are: Honest and trustworthy; Assertive; Excellent negotiators; Available by phone or e-mail; Good communicators; Friendly; Analytical; Able to maintain a good sense of humour under trying circumstances.

6. May I Review Documents Beforehand That I Will Be Asked to Sign? A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront. As a buyer, ask for copies of the following: Buyer's Broker Agreement (is it exclusive or non-exclusive?); Agency Disclosures; Purchase Agreement; Buyer Disclosures. As a seller, ask to see: Agency Disclosure; Listing Agreement; Seller Disclosures.

7. How Will You Help Me Find Other Professionals? Let the real estate agent explain to you who he/she works with and why he/she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and his/her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. How Much Do You Charge? Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for him/herself and another 3.5% for the buyer's agent, for a total of 7%.

9. What Kind of Guarantee Do You Offer? If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind his/her service to you? What is his/her company's policy about cancelled agreements? Has anybody ever cancelled an agreement with him/her before?

10. What Haven't I Asked You That I Need to Know? Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take his/her time with you - to make sure you feel comfortable and secure with his/her knowledge and experience. He/She should know how to listen and how to counsel you, how to ask the right questions to find out what he/she needs to know to better serve you.

Mortgage Rate inside information!

After the Bank of Canada's rate announcement Tuesday morning, the banks were unanimous in matching the rate drop.

The Prime lending rate, to consumers, has dropped to 3.00%.

Throughout the day yesterday, rate notices trickled in and below you'll find a recap of the best rates available this morning.....I'll keep you posted on any new changes.

There is aggressive pricing by some lenders - note the 1 yr rate of 3.99%.

Many clients anticipate further rate drops and are leaning towards variable rate mortgages.

Did you know....

• Lenders will allow variable rate mortgage clients to switch into a fixed rate mortgage during the term BUT the majority of lenders don't commit to offering their lowest rates when the borrower decides to convert to a fixed rate. Out of the many lenders I know about, only a few state this promise in writing.
• Mortgage interest is usually compounded on a semi-annual basis; however, several lenders use monthly compounding on their variable rate mortgage.....the interest cost is greater with monthly compounding. You need to know the difference in order to make an informed decision so make sure you ask!.

These are only 2 examples of the benefits clients get from working with an experienced mortgage specialists. I can put you in touch with a mortgage person who unlike a bank representative, is allowed to use many lenders which allows them to place you with the best mortgage solution. I sound like a mortgage broker, don't ?I! The bank rep won't point out the weaknesses in their product - it's the only one they have to sell. You will have choices and make sure you have all the information.

I'm always happy to hear from you, let me know if you have any questions or how I can help you!

All the Best!

Mark


MORTGAGE RATES
Best rates as of January 21, 2009

Prime Rate.........3.00%
Variable Rate......Prime plus .80%
1 yr fixed...........3.99%
3 yr fixed...........4.64%
4 yr fixed...........4.69%
5 yr fixed...........4.59% (over $500,000; otherwise 4.69%)
10 yr fixed..........6.45%

...other terms available; data subject to change without notice

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

Bank of Canada Prime Rate Reduced Again!

The Bank of Canada announced this morning another whopping rate cut, this time a 1/2 % rate reduction to an all time low of 1.0%

This time the central banks in Canada have followed suit or will follow the .5% reduction today.

Last time the Bank of Canada reduced the rate 3/4% and the banks only cut their interest rates by 1/2%, many were furious about this, myself included.

At least this time they reduced their lending rates the same amount, but they still are making billions in extra profits by not reducing the 1/4% last time. Not that I am feeling sour, just want you to know what's happening!

I hope this find you healthy and happy,
Mark

See current mortgage interest rates:
http://www.mississauga4sale.com/rates.htm

The official announcement and comments are below:
OTTAWA — The Bank of Canada has chopped its key interest rate by another half percentage point to its lowest level ever, and warned that the Canadian economy will contract by 1.2 per cent this year.

The central bank's target for the overnight lending rate now stands at 1 per cent – lower than in 1958, when the most-watched policy rate was 1.12 per cent.

“The outlook for the global economy has deteriorated since the bank's December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity,” the bank said in its gloomiest statement yet.

Canada's major commercial banks, which came under fire in December when they passed on only 50 basis points of the 75-point rate cut made by the central bank, reacted swiftly to its latest move, passing along the full reduction. (There are 100 basis points in a percentage point.)

Toronto-Dominion Bank and Bank of Montreal responded by announcing they have cut their prime lending rates by 50 basis points to 3 per cent – and BMO also said it is cutting key mortgage rates by 30 to 50 basis points. Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Nova Scotia and Laurentian Bank of Canada said later in the morning that they, too, have cut their prime rate to 3 per cent from 3.5 per cent.

Last fall, the central bank had counted on the Canadian economy growing by 0.6 per cent this year. But since then, it has recognized that Canada is in recession, and now says the economy will shrink by 1.2 per cent in 2009, as the country succumbs to sagging global demand, lower energy prices and a collapse of confidence around the world.

“Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence,” the bank said.

The Canadian dollar fell sharply immediately following the bank's announcement, dropping as far as 78.76 cents U.S. As midday (ET) approached, however, it had edged up to 79.32 cents, down by 0.38 of a cent from Monday's official close.

Since slack is building up in Canada's economy and housing prices are coming down modestly, inflationary pressure should also ease, the bank explained.

Total inflation will likely fall below zero for much of 2009 because of lower energy prices. And even core inflation, which excludes energy and other volatile items, will drop to about 1.1 per cent at the end of this year, the bank said.

But the central bank sees a remarkably strong recovery in 2010, with the Canadian economy growing 3.8 per cent next year and inflation edging back up to hit the bank's two per cent target in early 2011.

In order for the recovery to take hold, the global financial system has to stabilize, the bank said, but added that that process has begun, “There are signs that these extraordinary measures [by governments and central banks] are starting to gain traction, although it will take some time for financial conditions to normalize,” the statement said.

Plus, the global economy should start to benefit from “considerable” monetary and fiscal stimulus, the bank said.

Canada's recovery should also be bolstered by the past depreciation of the Canadian dollar, the statement added.

The bank did not promise any further interest rates to follow. Instead, the bank pointed out that it had already reduced its key rate by three and a half percentage points since December 2007, and added that it would keep an eye on how the economy and markets develop, and decide accordingly what it should do with rates.

“Guided by Canada's inflation-targeting framework, the bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required,” it said.

Economists have warned that central banks need to be prepared to quickly reverse their aggressive interest rate cuts of the past year as soon as they see signs of recovery. Otherwise, there is so much monetary and fiscal stimulus floating around that today's disinflation could easily turn into an inflation problem when economies begin to grow again.

Economists have also been on the lookout for alternative forms of boosting the economy, aside from interest rates, with the U.S. Federal Reserve's key rate already hovering around zero, and the Bank of Canada at its lowest level too.

While Bank of Canada Governor Mark Carney has said previously that he is examining his options, there was no suggestion in Tuesday's statement that any non-conventional measure is imminent.

Still, with the federal budget just a week away, the government is expected to introduce several easing mechanisms, as well as a huge stimulus program to help ease the bite of the recession.

The Bank of Canada will issue a more complete economic outlook on Thursday.

Douglas Porter, deputy chief economist at BMO Nesbitt Burns said the commercial banks were able to lower their prime rates in tandem with the central bank cut because their own funding costs have edged down, and retail demand for the banks' own commercial paper is on the rise.

Mr. Porter also said in a note to clients that the central bank's “actions and words were almost exactly in line with expectations of the forecasting community,” while its near-term economic forecasts “closely mirror” BMO's.

“If global financial markets continue to stagger in the coming weeks, the [central bank] still has the room and the willingness to cut further as the need arises,” he added.

However, Erin Weir, economist for the Canadian arm of the United Steelworkers union, argued that the Bank of Canada did not cut rates enough.

“The [bank] should have matched the American Federal Reserve and cut to zero,” Mr. Weir said in a commentary – either to avert deflation or to stimulate the economy.

He added that the bank's “timidity reinforces the need for a substantial stimulus package in next week's federal budget.”

---

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

Mortgage rate promotions in the GTA

Hello,

Hope you've have a good start in 2009.
I've seen some good news regarding rates in the marketplace: Fixed rates have dropped again.

I've seen some promotions as follows.

3 year fixed rate: 4.25%

1 year fixed rate: 3.99%

5 year fixed rate as low as 4.35%

5 year closed variable rate: Prime rate + 0.45% (3.95%)

Since the fixed rate is quite low, if you are locked into fixed rates at above 5%, you may consider to break the mortage, pay the penalty and save money in the long run.

For example, if you currently have a fixed rate 5% with 3 years left, by switching to 3 year fixed at 4.25%, you will save 0.75% per year, and 2.25% for 3 years.

The penalty for breaking your current mortage is 3-month interest, which is 5%/4 = 1.25% of your outstanding mortgage amount.

Thus you will save 1% of your outstanding mortgage amount for the remaining 3 years. If you have for example a $200,000 mortgage, that would be $2000 in savings.

Let me know if you any questions to ask about this plan and if you want to be put in touch with a mortgage person to help you with this.

Thank you,
Mark

Have new MLS listings sent to your inbox

If you would like to receive new listings as they come on the market in the GTA, please sing up to my neighbourhood watch program. All you need to give me is your email and first name and I will send you listings that meet your pricing and area critiera. No charge for this service. Another valueable service for you brought to you by me with no strings attached!

Sign up here:
http://www.mississauga4sale.com/Neighbourhood-Watch.htm

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

housing styles in Toronto and the GTA

This will give you some information to help you when you are looking at homes in the GTA

Traditional

if your tastes run towards the elegant, luxurious and
formal, a Traditional style is for you. Colonial, Victorian and
French Provincial décors are examples of this style, of which
symmetric configurations and ornate details are hallmarks.
Traditional furniture is characterized by dark,
rich woods (mahogany, cherry, rosewood, walnut)
and features detailed carvings and exposed legs.
demonstrative of quality workmanship, Traditional
furniture is typically durable and pricey.
Jewel tones dominate the Traditional palette: deep red,
bottle green, sapphire blue. Fabrics are equally rich:
damask, jacquard, chintz, brocade, tapestry, velvet, silk,
satin. Fitting accessories, which should be minimal and
symmetrically balanced, include oil paintings, china
or silver collections, gilt mirrors and oriental rugs.

CaSual

if you feel that Contemporary décors are too
cold and impersonal for your taste, you may
feel more at home with a Casual décor. Casual
spaces are all about warmth and comfort.
To best facilitate that comfort, Casual furniture is
generally overstuffed for softness, and thus of a larger
scale. Slipcovers on sofas and chairs are typical. Woods
common to Casual pieces include oak, maple and pine.
earthy tones – olive, terra cotta, wine – comprise
the Casual color palette, as do neutrals like tan,
gray and beige. Fabrics are appropriately soft,
like cotton and linen. asymmetrically balanced
accessories, which suggest informality, are typically
very personal to the user(s) of the space.

ConTemPorary

Traditional too conservative for you? Consider a
Contemporary look. referring to a variety of styles developed
in the last half of the 20th century, a Contemporary décor
is defined by open, minimally furnished, efficient spaces.
more comfortable and affordable than Traditional
furniture, Contemporary pieces are simple and sleek:
low profiles, clean lines, smooth surfaces, exposed legs.
Shapes are geometric and materials include light woods
like birch and maple, stainless steel, chrome and glass.
Vinyl and leather are characteristic upholstering choices.
Palettes are typically monochromatic, often with bursts of vivid
color found in accessories like boldly patterned rugs. When
looking for accessories to complement your Contemporary
décor, you'll want to lean to less rather than more.

eCleCTiC

not a style unto itself, an eclectic décor is a
blending of distinct styles. Creating an eclectic
décor that works isn't easy – it takes planning and
an understanding of design principles. But the result
– an utterly unique space – is worth the effort.
The key to pulling off eclectic style lies in finding a
common denominator – color, pattern, shape, texture
– that serves to unite seemingly disparate pieces. The
result is a room where all the pieces feel like they belong,
though they may be from different styles or eras.
The amateur trying their hand at creating an
eclectic look might want to establish a décor that's
predominantly characterized by one style, then
introduce a second style by way of just one key item.

Co-ownership property purchase and financing

Did you know...co-ownership properties can be financed through some mortgage lenders?

The banks are generally not interested in placing mortgages on this type of property; however, some mortgage brokers can assist buyers in arranging a mortgage at competitive rates.

The following general guidelines apply:

• 30% down payment required
• Application fee $250
• Verifiable income
• 32% GDS / 42% TDS
• Extended amortization available (no surcharge)
• Choice of payment frequency
• Prepayment privileges available
  

If you are considering a co-ownership property purchase, please let me know and I will have my mortgage contact check to see if that particular property is on the lender's approved list of properties.

As usual, please let me know how I can help you!

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

If you live in Peel region you may qualify for downpayment assistance

Did you know that 1st time buyers who live in Peel may qualify for assistance from the government for their downpayment.

Did you know....1st time buyers, living in Peel may be eligible to receive down payment assistance from the Government of Ontario?

The program is designed to help provide low-to-moderate income residents (who currently rent) the opportunity to qualify for a down payment loan when buying a home in Peel Region.

Quick facts:

• Buyer must be currently renting;
• Annual household income can not exceed $75,800;
• Purchase price (resale property) not to exceed $247,000;
• Property being purchased must be used as principal residence;
• Qualifying applicants can receive up to $10,000;
• Client needs to qualify & arrange for a mortgage;
• Client required to cover all closing costs from own resources;
• Repayment terms depend on length of time home is owned etc. ..see website.

Please refer to: www.peelregion.ca/homeinpeel for full details.

This program will make first time buyer home buying more accessible.

Looking forward to assisting you in growing your business.

Please let me know how I can help.

Thanks

Mark

is a furnace and hot water tank a chattel or fixture?

I received another question that I thought I would post here:

Hi Mark,

I found your website interesting and very informative. As I read the first page I was wondering as a first time home owner, if I get an agent in our area to make an offer are the furnace and water tanks considered chattels?

Thank you for your time,
Regards,
H.

Hello H.,

That's a good question. Typically, hot water heaters are chattels and must be specified as such. Some lawyers say that water tanks and furnaces are chattels and must be specified in the agreement of P&S Always err on the side of caution and you will be fine!

Thank you,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Beware of Oil Tanks in a Residential Home Sale

I just took a real estate course and we were talking about the hazards and
pitfalls to try and avoid when selling a property with an oil tank.

One of the things that the instructor said to give some perspective on how
little of an oil leak or oil spill is necessary to contaminate ground water
drinking levels was:

1 cup of oil from an oil tank will contaminate water the size of an olympic
size swimming pool, which is threshold of 20mg of hydrocarbon per litre, or
20ppm

The point is that does not take too much of an oil spill or leak to ruin
well drinking water! Beware and make sure you do your testing before you
buy a home with well water, especially if there is an oil tank on the
property.

All the best!
Mark

REMAX reports that threat of world wide recession will put downward pressure on Canadian home sales

This is a report just issued by REMAX Ontario Atlantic regarding our marketplace and the future of real estate in the year 2009.

They feel the the economic environment for 2009 will be challenging for sellers. We are already seeing this in the Mississauga and GTA

All the best!
Mark


Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX
Recovery linked to economic stability next year

Mississauga, ON (December 3, 2008) Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008.
Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double digit declines in home sales. Solid gains earlier in the year likely served to prop up housing values at year end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns to the financial sector, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak. By year end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.
“Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario Atlantic Canada. “Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. That said, we could see a bounce back as early as spring

– if inventory levels remain stable, pent up demand kicks into gear, and lower interest rates stimulate home buying activity.”


Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

“Canada’s real estate environment is considerably more complex than it has been in recent years,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The landscape is definitely changing with most markets shifting into either balanced or buyer’s territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.”

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

“While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec. “In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first time and move up buyers with good credit may choose to play their investment strategy safe and purchase a home.

The comfort of a tangible investment like real estate goes a long way in tough times.” RE/MAX is Canada's leading real estate organization with over 18,000 sales associates situated throughout its more than 670 independently owned and operated offices across the country.

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

Ready to buy a Mississauga Home?

Are you planning To Buy real estate before the winter?

Start your real estate education now by receiving all the newest Mississauga and Toronto house or condo MLS listings automatically for your favourite neighbourhoods!

Use this link to sign up to my neighbourhood watch program:

http://www.mississauga4sale.com/Neighbourhood-Watch.htm

After you provide us with some of your general home buying requirements, weekly or biweekly you will receive copies of those MLS listings that fit your criteria. It's that easy!

You'll discover what homes are selling for in the Mississauga neighbourhoods that you're interested in and you'll be able to more accurately plan for what size of down payment you'll need and what your monthly payments will be.

Just one more value added benefit to working with Mark Argentino of RE/MAX in Mississauga Ontario.

All the best!

Mark

Does "Buy and Hold" Work When the Market Goes Up and Down like a Yo-Yo?

This came in my inbox and was too interesting of an article to read.

We may benefit by following this advice!

Enjoy,

Mark

Does “Buy and Hold” Work When the

Market Goes Up and Down like a Yo-Yo?

I don’t know about you, but I’m a bit freaked out about the stock market. I know I’m relatively young, have a lot of time to recover, and that I don’t have a million dollars the market, but it’s very uneasy to think about the security of my invested assets in such a volatile market.

The day that I wrote this the S&P 500 index went up and down nearly 10%. To say that is volatile is an understatement.

You know what everyone says: If you are in the market for the “long-term” you don’t have to worry about the short-term volatility or losses.

I guess that sort of makes sense doesn’t it? Or does it?

This is a new very volatile world and I wrote this newsletter to give you something to think about and determine if buying and holding stocks right now is a good idea even when looking at the long term?

Ask yourself this question: If the stock market goes up and down and up and down over a ten year period with the average rate of return equalling ZERO, will the account balance be the same at the end of the ten-year period?

Put another way, if you invested $100,000 in the S&P 500 index where the index went up 10% the first year, then down 10%, then up 10%, then down 10%, and if this cycle continued for 10 years with the average rate of return equalling ZERO, would your initial investment still be $100,000?

The answer is NO!

Look at the following chart where I assumed a very volatile market that goes up and down 10% every other year and after ten-years the average return is ZERO. You’ll notice that the account value is $95,438.

Never go backwards and lock in gains

Most of you know that I’m a big fan of Fixed Indexed Annuities (FIAs) to hedge a client’s risk in the market and to earn decent returns when the stock market does well. FIAs are not a cure all. Not every penny of someone’s money should be in them, but as an asset allocation model, the older you get the more money you should have in a wealth building tool that will not go backwards.

What if the $100,000 invested in the above example instead went into FIAs? If I make a very conservative assumption that over time the cap on returns will be 8% annually, look at the results.

Initial Annual Return Acct. Initial Annual Return Acct. S&P 500 Investment Value Investment Balance Index FIA End Year 1 $100,000 10% $10,000 $110,000 $100,000 8.00% $8,000 $108,000 End Year 2 $110,000 -10% ($11,000) $99,000 $108,000 0.00% $0 $108,000 End Year 3 $99,000 10% $9,900 $108,900 $108,000 8.00% $8,640 $116,640 End Year 4 $108,900 -10% ($10,890) $98,010 $116,640 0.00% $0 $116,640 End Year 5 $98,010 10% $9,801 $107,811 $116,640 8.00% $9,331 $125,971 End Year 6 $107,811 -10% ($10,781) $97,030 $125,971 0.00% $0 $125,971 End Year 7 $97,030 10% $9,703 $106,733 $125,971 8.00% $10,078 $136,049 End Year 8 $106,733 -10% ($10,673) $96,060 $136,049 0.00% $0 $136,049 End Year 9 $96,060 10% $9,606 $105,666 $136,049 8.00% $10,884 $146,933 End Year 10 $105,666 -10% ($10,567) $95,099 $146,933 0.00% $0 $146,933 Ave.Return 0.00% 4.00%

Why did the FIA end up with an account balance of $146,933 instead of $95,099? Simple, in down years the FIA returned ZERO instead of -10% and in up years it returned 8%.

Are these examples real world? Prior to 1998 you would have said no way? Are these examples real world? Who knows, they could be. The question of the day is: are you doing everything you can to help educate and protect your client’s money in this uncertain world.

It’s one thing to have a conversation with your client where they are upset they only earned 8% when the market was up 10%+, it’s another to have one with them when their money earned ZERO when the market was down 10%. The first one I don’t mind having, the second one is really painful (especially if your client is over the age of 60-65and close to or in retirement).

-20%

Just in case you are curious, if the market has wild swing of 20% every other year (up and down), the account balance at the end of 10-years would be $81,537 and the FIA account balance would remain at $146,933.

Conclusion

I’m not sure if the days of “buy and hold” have come and gone as a tried and true way of growing your wealth. That may or may not be the case. What I know is that it’s time to have a discussion with your clients to help them understand ALL the various options to grow and protect their wealth and I think that conversation should include the information discussed in this newsletter.

CMHC predicting more choice equals moderate price growth in 2009

CMHC Outlook for GTA Resale Housing Market

In case you missed it, here is a report from CMHC about our housing market.

Here are some high-lights from CMHC and their thorough report:
For your information, please find attached the latest Housing Market Outlook data for GTA (Fall 2008 edition).

1. The New Homes and sales Market
i) High rise sales will dominate new home market...
- New home sales in the Greater Toronto Area (GTA) will continue to moderate in 2009.
- High rise sales have accounted for more than 50 per cent of the total share of sales since the end of 2007. This trend will continue and the share of high-rise sales will increase in 2009.
- New home sales will trend lower as choice increases in the resale market.

- The low-rise housing sector will experience moderating sales much more so than the high-rise sector.
- Strong immigration into the GTA has also played a role in increased demand for condominium apartments, due to their lower price point.
- Changing demographics in the GTA also explain the heightened interest in the high rise market. The average household size is shrinking with an increase in lone-parent and childless family households.
- The luxury high-rise market is also a growing niche that is catering to an increasing number of aging baby boomers and empty nesters.

ii) Starts of resale homes to edge down.
- Softer local economic conditions and elevated home prices will push the demand for home ownership lower.
- Following a healthy increase for 2008, total housing starts will edge lower by 21 percent in 2009.
- Low-rise home starts will decline at a greater rate than apartment starts.
- Condominium apartment completions have begun to trend higher and will grow at a stronger rate in 2009. For this reason, condominium apartment construction will remain at high levels through the end of next year.


2. Existing resale Home Market
i) Existing home sales off the peak...
- Over the next two years, the number of home sales under the MLS® system in the GTA will trend lower off the 2007 record high.

- Sales will moderate due to softer economic conditions domestically and elevated home prices.
- While home sales will be off record levels, continued steady net-migration and low borrowing rates will keep home buying activity in the GTA in line with the average over the past ten years.

ii) More real estate supply, moderate resale price growth.
- New listings will continue to grow to reach a record-high level in 2008. The trend will flatten out in 2009.
- The trend in listings growth will eventually slow and then change direction, however, as fewer home owners are able to sell their homes for the anticipated values for their properties. This will begin to happen toward the end of 2009.
- While the sales-to-new listings ratio will continue to decline, it will do so at a diminishing rate.

- The resale market will remain balanced, with prices growing in line with inflation.
- The average home price in 2008 will be up 2.6 per cent to $387,000. By the end of 2009, the average price of home will reach $394,000 - up 1.8 per cent.
- Not all housing types will experience the same moderation in price growth over the next year. Condominium apartments in the central Toronto area are a good example of this. The central Toronto area remains a tighter market than the region as a whole.

iii) First buyers of first time homesniche gets smaller.
- Over the long term, first-time buyers will remain the most important factor driving sustained demand for home ownership in the GTA. In the short-term, however, the level of first-time buying activity is subject to
the economic cycle.
- The number of households purchasing their first home will be trending lower in 2009. Softer labour market conditions along with elevated home prices will be the primary reasons. - Based on CMHC's Renovation and Home
Purchase Survey, the percentage of intended home purchases accounted for by first-time buyers declined to 40 per cent for 2008 compared to 47 per cent in 2007. This share will decline further in 2009.


3. Economic and final Trends
i) Toronto will continue to create jobs.
- Employers in the GTA have persevered in 2008. The rate of job growth will be 1.8 per cent in 2008 - above the average for Ontario.
- In 2009, job growth will remain positive, but the rate of growth will moderate to one per cent. Job growth will come from the service sector.

ii) Current Mortgage Rates.
- Mortgage rates are expected to be relatively stable throughout the last quarter of this year.
- Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases.
- Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.
- For the last quarter of 2008 and in 2009, the one year posted mortgage rate will be in the 6.00-6.75 per cent range, while three and five year posted mortgage rates are forecast to be in the 6.50-7.25 per cent range.

Thank you

Mark Argentino

Positive thinking... your key to success in this market

Good day to you!

And I mean "Good Day" Today is a great day for doing business! Your attitude is everything and when your attitude is positive or negative, you feel differently in the direction of that thought.

By feeling differently, you act differently and project differently. This is why positive thinking works and is the whole formula for the 'law of attraction'. It is not your thoughts that create your world around you, but that is where it starts.

Your self talk and your thoughts create the way you feel. The way you feel affects the way you act and the way you act will have a direct impact on your success in all aspects of your life. This is why some people will struggle in a slower market place while others will thrive.

As I am sure you are aware, many potential homebuyers are hesitant to make a decision in these times. Mostly because of what they read in the papers and what the see on the news, regardless of its accuracy.

They tend to ignore the positive and pay closer attention to the negative and the media knows this. After all... it is the negative information that sells newspapers and gets ratings, right? In no way am I saying the market is perfect right now, but what I am saying is there is tremendous opportunity out there for buyers who are in the marketplace.

If you have a positive attitude, it will affect the feelings of not only yourself, but the people around you, namely.... your clients. Your positive attitude will most certainly affect they way they feel, in turn, affecting their buying decision.

This is not a false feeling, because there is plenty of reason to think positive in today's market.

Make them aware of all the reasons why it is a great time to buy right now... which it is! If they are a first time homebuyer, tell them about the amount of inventory on the market. More inventory, equals more choice and much less chance of running into a 'multiple offer' situation.

There is also a much greater chance they will encounter a motivated seller and end up with a real bargain. If they are holding off because they think they will get $20,000 more for their house in the spring, well, the house they are buying is probably $20,000 less, so it is all relative. Mortgage rates are low right now as well with a 5 year fixed available for as low as 5.40. The lowest variable rate is 5% even and I have a special running on a one year fixed at 4.35%.

So be positive, make some changes in your marketing efforts, adapt, and keep your options open. Start looking at possible clientele that you may have overlooked before.

Is there anything I can help you with today?

To your personal success!

Mark


http://www.mississauga4sale.com/Motivation-Success-Ten-Scrolls.htm

Mississauga Google Maps listings for sale

This link below will take you to my personal listings as shown by markers on Google maps of houses and properties for sale in Mississauga
http://www.mississauga4sale.com/listings-google-maps.htm

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

Search MLS properties in Toronto and Mississauga

You can search over 100,000 listings using the Public URL for MLS.CA or other mls Listings search using the link below:

http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm

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

Toronto and GTA Real Estate Auctions are not that common, WHY?

If you search Google for Toronto and GTA real estate auctions, most of the results talk about auctions, but really don't give you much information about upcoming real estate auctions in the GTA. This is probably because there are not too many real estate auctions that occur in the GTA.

In my experience, most property in and around Toronto is sold through traditional methods, such as the mls, private for sales, exclusive listings and other similar methods.

You will find that there are many auctions in the US. Their system works differently.

In a similar fashion, there is rarely a foreclosure sale in Ontario, most properties sell under Power of Sale in Ontario, read more here:
http://www.mississauga4sale.com/Power-of-Sale-Articles-1-Overview.htm

I've seen and received in my email, information similar to what is shown below for US auctions.

Please email if you have more questions.
Mark

Read more about estate sale auctions:
http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure-FAQ.htm#EstateSales

Some people have highlighted the advantages of an auction sale as follows:


*Auctions are the fast way to convert property, they are efficient, and effective or assets into cash No other sales method works as well
* What can be sold at Auction? Real Estate, Equipment, Businesses Inventory, , etc Any asset or property that can be sold at discount
* cut your losses or Cash in on your equity
* Convenient, no hassle, we handle everything
* Quick Sale property usually sells in 7 days or less when speed is of the essence,
* A specific date is set creating a sense of urgency to buy
* Intense and accelerated marketing
* Property sells at or near the true real estate market value or more
* Property often achieves more than the anticipated selling price
* Auction environment encourages a sense competitive bidding urgency
* Get aggressive marketing strategy to buyers local and maximum exposure, , regional, national and international
* Telemarketing, direct solicitation Targeted advertising, publicity, , proprietary database of prospects and investors
* Marketing through the World Wide Web www
* Directional signage and On-site property
* Auction conveys a "fast and sales-friendly" real estate competitive atmosphere


These are the typical types of auctions found in the US

* Regularly scheduled live public real estate auctions & investor forums
* Your property Property marketed on website for USA & International viewing
* Included in regularly scheduled Live bidding and Online bidding Auctions until sold
* Your property Email Broadcast to Brokers & Investors USA & International
* Aggressive Newspaper & Magazine Advertising
* Free MLS Listing
*

These are the types of auctions found on the internet

Foreign Property
Single Family Residential
Multi Family Residential
Condominium
Business
Foreclosure
Intellectual Property
New Construction
Apartment Buildings
For Sale By Owner
Time Share
Mobile Home
REO
Commercial
Manufactured Homes
Farms & Ranches
Raw Land
Trust Deeds
Industrial
Business
Historical Buildings
Water Craft
Air Craft
Marinas & Ship Yards
R1 Sub divisions
Intellectual Property
Hotels
Motels
Parks
Bankruptcy
Trusts
Vacation Homes

Mississauga Townhomes, names and locations

Townhomes and Townhouse complexes in Erin Mills, Churchill Meadows and Streetsville, Mississauga - photos and lists showing the names, addresses and locations

http://www.mississauga4sale.com/Mississauga-Townhomes-Townhouse-Complexes.htm


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

Toronto and Mississauga Open House Listings

You will find open houses for all types of properties in Toronto and Mississauga and surrounding areas at this link:
http://www.mississauga4sale.com/Open-Houses-Public.htm

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

Average single family residential selling prices in Missisauga and Toronto

Read about the current state of the market in the GTA and what is the average prices for residential homes in Mississauga and Toronto:
http://www.mississauga4sale.com/TREBprice.htm


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

CMHC comments that Canada’s economy gearing down and barely skirting recession

Canada's economy gearing down and barely skirting recession

A U.S. recession, slipping commodity prices and moderately tight credit conditions set up for Canada's economy to slow, although we think that it will avoid a recession for two main reasons: the favourable terms of trade effect, while weakening, will still provide residual support to domestic demand and Canada's financial stress has been more limited than in the United States, meaning the toll on household and business will be less.

Intersting comments by CMHC on whether or not we will avoid a recenssion in Canada

Regards,

Mark

Toronto Prices down 4% and sales volumes down 35% for October 2008

October Toronto Real Estate Board statistics in a nutshell,

the latest sales figures for October, prices down 4% in October compared to September, unheard of that the price falls in October, first time in 13 years

sales volumes down 35% during same period

even though 905 price drops are larger than average, it seems the local market is ok, homes are selling and prices don't seem to be dropping too much in Mississauga, we should be through this downturn by early spring!

you can read the stats in my online newsletter, if you are allowed to go to the internet, I'm sure Dave is happy to hear these stats http://www.mississauga4sale.com/newsletter/latest_newsletter.htm






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

Mississauga real estate, Should you be buying a property at this time?

Hello,



This is my first video post. I just made it this afternoon on our boat. A student from Sheridan College asked me to answer a couple of questions about first time buyers and whether they should be buying a property.



I am sure I will look back at this video and laugh, but what the heck, you should enjoy this very much!



All the best,

Mark



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

blogger labels

I've figured out that my blogger labels continue to give errors in my google webmaster tools under sitemaps and broken links. the reason is that labels with spaces are not indexed properly, I knew this from a long time ago, but overlooked this with blogger, hense all y problems. the only rational solution is to rename all my labels and put dashes or underscores, I chose dashes, since they are easier to insert!

such as

moving-relocation,national-prices,power-of-sale,property-tax-sales,property-taxes,real-estate-humour,real-estate-market,real-estate-strategies

these all have dashes and seem to work better!





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

test of the new blogger labels

this is a test of the new labels for my blogger

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

blogger labels to create new blogger labels for future posts

this post is necessary to create more of my new blogger labels

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

RBC comments on Canada's Economy

Canada’s economy limps along in the second quarter

Canada’s economic growth reports have been disappointing, with real GDP contracting at a 0.8% annualized rate in the first quarter and eking out only a mild 0.3% annualized growth rate from April through June. Hiding beneath these soft overall growth numbers, however, Canada’s domestic economy remained firm. Final domestic demand growth averaged 2.2% during the six-month period, slower than 2007’s 4.2% pace but much stronger than the tepid growth rate for the overall economy.

Slower-than-expected housing reports and the sharp 55,000 job loss in July are supporting worries that the domestic economy’s growth momentum is starting to crack. However, August’s 15,200 job gain took some of the heat from these concerns because the report suggested that July’s sharp drop may have overstated the weakening in the labour market.

The market is priced for the Bank of Canada to take action and cut the policy rate to shore up the economy despite the fact that the headline inflation rate is running above the top end of the Bank of Canada’s target band. To be sure, the core measure remains secured below the mid-point of the Bank’s target band but, with a 3.4% headline inflation rate, policymakers will remain wary about a pick-up in inflation expectations.

In its September 3 policy statement, the Bank highlighted both upside and downside risks to the inflation/growth outlook, indicating an even-handed assessment of the risks. To be sure, the Bank pointed to some greater downside risks to growth emanating from a faltering U.S. economy while acknowledging that the hit to inflation from higher energy prices may not be as pronounced as was feared in July. However, the downside risks to growth are focused more on activity in 2009, while Canada’s "strong" domestic economy and global inflationary pressures continue to present a near-term upside risk to the medium- term inflation outlook.

This characterization suggests that the central bank will remain on the sidelines monitoring the economic data to see whether one or the other risk comes to dominate. Our forecast assumes a 3.00% overnight rate through the end of this year before being gradually raised in 2009 as the downside risks to growth ease.

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

Plan to build a home or cottage?

I hope you enjoyed your Long Weekend!

The unofficial end to summer is here

Did you know................ I know people who can arrange construction financing for people like you who plan to build a home or cottage?

• Progress or Draw Mortgaging is the best way to finance a residential building project
• Unlike a standard mortgage, a Progress Mortgage is advanced in stages to fund the construction as it proceeds. Since the money is advanced as required, interest is only paid on the amount outstanding.
• Some great features:

- No set up, appraisal or inspection fees (most other lenders charge these fees);
- Client can use own solicitor;
- Free Mortgage Life Insurance during construction;
- Interest only payments during construction - interest at Prime plus 2%;
- Guaranteed mortgage rate offered at time construction financing is approved.

Please let me know if you have any questions regarding construction financing and I can put you in touch with lenders who specialize in this type of financing.

FYI: The next Bank of Canada rate announcement is scheduled for Wednesday Sept 3rd.

Mark

Television shows Flipping or Fixing Houses for Profit as being so easy!

"As seen on TV"

I'm sure that you've seem and learned many ideas about flipping houses from the shows on TV. These TV shows don't really get into the specific nuances of flipping. There is a science to successfully flipping houses. Many successful real estate investors can make $5,000 to $10,000 or more per home by flipping houses.

This article will cover some of the aspects of flipping houses, as seen on TV

What you ideally want to do as an investor is buy a home from a distressed seller and resell it quickly for a profit.

You can opt to join my Power of Sales Newsletter, no charge of course

http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

You may be asking yourself, why do I want to inherit someone else's problem house? That's not necessarily the case. Just because a seller has serious problems like a pending foreclosure or divorce doesn't mean the house is a fixer-upper. Many distressed sellers offer prime houses in perfect condition discounted for a quick sale.

Distressed sellers jump at the chance to get out from under their overwhelming problems with an offer to close in ten days. To purchase a home quickly, you need to be prepared to offer cash or a
have secure loan in place with a reliable mortgage lender.

This investment plan assumes that you have the knowledge and skills, time to work on your fixer, and that you sell the house as soon as its finished to a qualified buyer.

Other real estate investors prefer to buy fixers from distressed sellers. Distressed fixers tender the best bargains to make the highest return on your money. For instance, if you put 5% down on a $200,000 home, spend $5,000 fixing the house up, and another $3,000 in payments, your cash investment totals $18,000. If you sell the home for a $70,000 profit like many rehabbers, you can see that your return on your investment of $18,000 for two months exceeds most other types of investments.

Home improvement centers help you with how-to classes, brochures, and advice. You need to give up your free time--TV, parties, leisure activities and work on your fixer. You could hire workers, but contractors and laborers work slowly and eat up your profits.

The last part of the equation, selling your house quickly to a qualified buyer means you need to do your homework. The most important issue, how you fix up your house, ensures that you quickly attract a buyer willing to pay top dollar for your transformed property. Then you can list your house with me and you will make a profit!

Whether you want to make money investing in real estate by flipping or fixing houses, you need to understand your market. To get started in your real estate business, go house shopping. You'll soon learn how to pick up a flip or a fixer and be on your way to making a high return on your money.

My Power of Sale Newsletter is an easy and convenient way to stay ahead of your competitors. A membership to the newsletter gets you information on potential money-generating properties!

http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

All the Best!

Mark

Revisiting the old question "Is it better to Rent or Buy??"

Rent or buy: The calculations must include many factors
The notion that, financially, home ownership always trumps renting is somewhat of a misconception.

Julian Smith personifies the great Canadian dream of owning your own home.

Some people plan long and hard for homeownership, but Julian Smith is having it thrust upon him.

The professional photographer has been renting a one-bedroom loft condominium in Toronto's east end for nearly two years. He loves the aerie-like suite, where light streams in through the trees whatever the time of day. But recently, it was put up for sale, forcing him to choose between buying it himself or renting another place.

He chose the former, but is buying the right move for Mr. Smith?

"It's good to be in the property market," he muses. "If prices continue to rise, it might be hard to get in later. I like the idea of a condominium because if, say, the roof leaks, I'm not alone in the responsibility. I envision being able to rent my unit and go to England for the summer. This would make an interesting place for a visitor to stay."

Obviously, if he didn't buy his cherished home, he would lose it. But on the down side, his monthly payments will be more. The unit is selling for $240,000. If he takes out a mortgage of $228,000 at 7 per cent, as he is considering doing, he would pay about $1,600 a month, plus condo fees and hydro. Right now, his monthly rent is $1,200.

If he didn't grab it, he would be forced to leave his cherished loft. Also, the extra amount he might be paying out could be viewed as a kind of forced investment, one that he might not make otherwise. And another plus is that money from the sale of a principal residence is not taxed.

But according to Steve Parker, Ottawa-based managing partner of Parker Prins Seel Chartered Accountants, the notion that, financially, home ownership always trumps renting is somewhat of a misconception. It a renter invests the difference between the rent and what the mortgage payment would have been, it's likely that, over time, there would be very little difference in the result.

He adds, however, that it's questionable whether the renter would actually make that investment.

"Very few people take the money they would save by renting and invest it," Mr. Parker says. "However, if they would do something like maximize their RRSP contributions every year, they would likely end up as well off as with home ownership. Traditionally, the stock market and the housing market have had similar results over time."

He also notes that rents have not risen the way housing prices have, which can make renting somewhat of a bargain right now — at least a relative bargain.

An example in an upscale area of the city is a two-bedroom, two-bathroom unit in a fourplex on St. Clair Avenue near Yonge Street in Toronto, complete with finished basement and parking. It's currently for rent at $2,200 a month, not including hydro. The listing agent, Jack Hill of Harvey Kalles Real Estate Ltd., says a comparable two-bedroom condominium at Yonge and St. Clair might be selling for $500,000, and there could be a fee of up to $800 a month on top of the mortgage.

With 10 per cent down, a mortgage at 7 per cent and a 25-year amortization, and figuring in other factors, the monthly payment on the condo would be about $4,100, according to a Citizens Bank of Canada calculator.

But potential renters of the unit in the fourplex, at $2,200 plus, would be a well-heeled, select few.

People who are transferred to a city such as Toronto by large corporations often rent, Mr. Hill explains, for just the time it takes to get to know the city or for the duration of their stay.

"A lot of people like to rent," he adds. "Some people will invest their money elsewhere, or perhaps they have a cottage up north. Some people just do not want to make the big investment in a home, or you will get a few students going in together on a place. Some people have sold their home and are renting while they assess what do to, on a long-term basis."

In Toronto's Moore Park, renters in one of the area's many duplexes and apartments can enjoy the same parks, ravine trails, tennis courts, shopping venues, restaurants and public transit as those owning million-dollar homes. Their children can attend the outstanding local schools there, too. Nearby Rosedale also has a good stock of rental accommodation in addition to its mansions and lavish estates.

Al and Marlene Parker (no relation to Steve), for example, rent a 700-square-foot, two-bedroom apartment there for $1,700 a month. They own a home in Muskoka but still seek the pleasures of downtown Toronto.

Having just returned from hearings on new taxes at City Hall, a 15-minute trip for him, Mr. Parker says, "There's an energy in the city — my wife and I are enjoying life here.

"We're like tourists. We're both 65 now and retired. Life is stages, and at this stage we are not sure what we want to do. Driving between two homes isn't feasible and we rented our Muskoka place for July and August.

"Meanwhile, do we want to buy something? I'm worried that the bubble may burst in the housing market."

So while renting may not be the great Canadian dream, it can put you in an excellent location for less than the cost of buying a comparable home. And an accommodating landlord will take care of shovelling snow, cutting the grass and unclogging the toilet.

"Raising a family, people do tend to want to buy homes," Steve Parker says. "But a house is a high-maintenance proposition. Even at the end of the mortgage, when the equity and the value will be at their best, the home will probably need a lot of work. Real estate is not a foolproof investment."

For those trying to decide whether to take the plunge into home ownership, there are websites that offer tools to help in making the decision. The federal government offers a "Rent or buy calculator" at strategis.ic.gc.ca. And the Citizens Bank site is www.citizensbank.ca.

Read more about Renting vs. Buying



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

Land Transfer Tax Refund for First-Time Home Buyers is updated

The Ontario Govenment has updated the Land Transfer Tax Refund for First-Time Home Buyers, read about it here

You may use an online Ontario Land Transfer Tax Calculator here

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

REMAX reports that balance returns to recreational property markets

Balance returns to recreational property markets

across Canada this year, says RE/MAX

Mississauga, ON (June 10, 2008) --

After an extended period of extraordinary growth, more balanced

market conditions have emerged in recreational property markets across the country, according to a report

released today by RE/MAX.

The RE/MAX Recreational Property Report found that a substantial increase in the supply of recreational

properties listed for sale, combined with fewer buyers overall, characterized most recreational markets

this year. Of the 45 markets surveyed, 91 per cent (or 41 markets) were in the transition stage, moving

from strong sellers into balanced market conditions. The only exceptions were Salt Spring Island, two

markets in Saskatchewan—Last Mountain Lake and Qu'Appelle Lakes and Lakes Candle, Emma, and

Waskesiu -- and Newfoundland's East Coast —where inventory levels were relatively low. Affordability

was a primary factor in 35 per cent of markets surveyed, given serious upward pressure on recreational

values in recent years.

"Market conditions have shifted, but don't expect to see bargain basement prices or fire sales," says

Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.

"The recreational market continues to experience solid demand -- a trend that is expected to continue

throughout 2008. The influx of new listings has yet to translate into downward pressure on recreational

property prices. Prime waterfront properties, while more plentiful than in year's past, will still command

top dollar."

Adverse winter weather conditions during the first four months of the year hindered recreational activity.

Sixty-seven per cent of markets reported softening in the number of sales year-to-date, while average

prices remained stable or experienced moderate increases over 2007 levels for the same period. Economic

concerns, fueled by negative GDP growth in the first quarter and soaring energy costs, have also played a

role in the transitioning market.

"We're coming off the longest period of economic expansion since World War II," says Elton Ash,

Regional Executive Vice President, RE/MAX of Western Canada. "Recreational property values have

appreciated beyond our wildest dreams across the country. More balanced market conditions are a

welcome change for purchasers."

- more -

RE/MAX Recreational Property Report…2

For the first time in many years, in fact, a good selection of entry-level waterfront is available in markets

across the country. Eighteen per cent of those surveyed offer properties under the $200,000 price point,

including; Central South Cariboo in British Columbia; Parry Sound, East Kawarthas and Kingston in

Ontario; Summerside, PEI; South Shore, Nova Scotia; Shediac, New Brunswick; and the East Coast of

Newfoundland.

Recreational property buyers also found themselves divided between two borders this year. The housing

market meltdown in the US combined with a Canadian dollar at par created serious investment

opportunities for secondary properties in Florida, Arizona, Texas, and California. Some of those very

same factors have spurred American recreational property owners in Canada to list their properties for

sale, with many looking to take advantage of ideal market conditions here.

"Many Canadians are capitalizing on market conditions in major American centres," says Polzler. "For

some purchasers, the move is strictly a short-term investment strategy with a pay-off at the end of the day,

while for others, retirement is the main objective."

The report also found that younger buyers were a factor in 40 per cent of recreational markets surveyed.

"Baby boomers are clearly not the only purchasers that appreciate the recreational lifestyle," says Ash.

"Generation X is quickly becoming a force in the marketplace, spurring demand for condominium

product on ski hills, oceanfront properties in good surf locales, and water frontage on trendy lakes with

celebrity residents."

Other highlights

:

Alberta's red-hot economy has helped boost recreational property markets in British Columbia,

Atlantic Canada, and some parts of Ontario.

Affordability is prompting buyers to consider back lots, riverfront, condominiums, hobby farms

and leased land.

Some purchasers looking to secure an exit strategy are buying recreational properties or

secondary homes in residential neighbourhoods in close proximity to the water's edge.

RE/MAX is Canada's leading real estate organization with over 18,000 sales associates in more than 656

independently-owned and operated offices. The RE/MAX franchise network is a global real estate

system operating in over 65 countries. More than 7,000 independently-owned offices engage over

110,000 member sales associates who lead the industry in professional designations, experience and

production while providing real estate services

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2008 Calendar?

Home in Peel Affordable Ownership Program

Home in Peel Affordable Ownership Program

Below is a link to a program offered by the Region of Peel to assist eligible home buyers who have a total annual income of $62,600 or less to purchase a resale home in the Region of Peel (Brampton, Caledon or Mississauga) that does not exceed a purchase price of $208,000.

I thought that this may be of interest to potential buyers.

http://www.peelregion.ca/housing/home-in-peel/

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2008 Calendar?

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

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

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

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 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

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

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

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

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

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 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

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 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

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

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

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 words…probably 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 ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns