When Should Homebuyers Jump In?

Investors who time any market hope to buy at the nadir and sell at the zenith, but homebuyers have a trickier time knowing when to sit on the sidelines and when to jump in. The reason? There are several.

Buying a home is one of the largest financial investments a homebuyer will make. Transaction costs are expensive enough that homeowners remain in their homes approximately six years before trading up or down.

On the other hand, homeownership provides significant benefits including property rights, tax benefits and other government subsidies, quality of life, appreciation, and equity.

Since two factors move markets -- fear and greed -- it's easy for buyers to be overanxious to buy in a seller's market and reluctant in a buyer's market. In a seller's market, prices rise, sellers hold firm, inventories are short and days on market are short.

In a buyer's market, buyers are fearful that home prices will either flatten or drop below what they paid, causing inventories to rise, days on market to increase, prices to drop, and sellers to sweeten deals.

So is it the time to buy?

For some buyers, the lesson that it's time to buy is a hard one. They may wait so long that the home they hoped would go down in price sells to someone else. They have to start their search over finding that the remaining homes don't compare to the "one that got away." They may wait for interest rates to drop, and find that they stubbornly stay at higher rates. They're knocked out of the neighborhood and price range they wanted to buy into and find themselves looking at homes with fewer features, less square footage, or more distance from work, family and friends.

When those scenarios happen, buyers learn that there's an opportunity cost for waiting.

If you're a buyer, you sadly realize that to get the home you want -- at both the price and interest rate you want -- will be nearly impossible. If you're lucky, you'll get two out of three. So, if you're waiting to see what other buyers are going to do, you'll soon find that once buyers move collectively, they will either drive prices down or drive them up. If prices are down, but likely to recover, do you really want to compete with other buyers on the way back up?

In other words, the price of feeling more comfortable about buying is inevitably paying higher prices and having less to choose from.

So here are some surefire ways to tell that it's really time to buy:

* You found the home you really want.

* It's affordable.

* You can get a reasonable loan.

* It will serve you and your family for years to come.

* You're not looking for perfection. No home is perfect.

* You've given up trying to beat the market.

* You're comfortable with your compromises, whether it's location, size, price, features, or condition.

* You're confident the home you chose is desirable enough that you will be able to sell it in any market.


Written by Blanche Evans
Edited by Amit Kalia to reflect Canadian real estate market

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From My Realty Times Newsletter- Emailed once a month and can be subscribed by all http://realtytimes.com/c/amitkalia

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Here are some excerpts from Market Watch report released by Toronto Real Estate Board.


September 6, 2007 -- August 2007 became the fifth record-setting month in a row, with 8,059 sales reported by TREB Members throughout the Greater Toronto Area, TREB President Donald Bentley announced today. "This figure is up 15 per cent over August of last year, and up seven per cent over the 7,498 sales recorded during the same month in 2005, which was the previous "best ever" performance for the month of August," said the President. "Summer of 2007 has been hands-down the most active holiday season for the resale market in the history of the Toronto Real Estate Board."

While sales roared ahead, prices remained affordable in August, with a recorded average of $361,890. This figure is up seven per cent over the $338,192 recorded during August of 2006. "While the last decade has seen five record breaking years, and a good possibility of a sixth in 2007, year-over-year prices increases have remained in the single digits. This kind of activity is sustainable for a long time."

Breaking down the total, 3,057sales were reported in TREB’s 28 West districts and averaged $343,493; 1,444 sales were reported in the 14 Central districts and averaged $453,718; 1,653 sales were reported in the 23 North districts and averaged $403,539; and 1,905 sales were reported in TREB’s 21 East districts and averaged $285,665.

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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK

My company has launched home buying video series that can help home buyers make informed decision when buying their home/condo.

Moderators, please note that these video links (are not personalised) SHOULD NOT solely promote my company's services.

BUYERS ARE ENCOURAGED TO WORK WITH REALTORS THEY TRUST. BUYERS MAY CHOOSE A REALTOR FROM ANY REPUTED COMPANY OF THEIR CHOICE IN THEIR PROVINCE, REGION, CITY OR TOWN.

If you think that this is a promotion and does not help the forum's mission, feel free to delete the post:

HOME BUYING SHORT VIDEO EPISODES: (Windows Media Player is required to watch and listen these videos):

1. Organising finances before starting home search: http://www.realestate-ontario.com/video/Home-Buying-1.wmv
2. Determining you needs and wants: http://www.realestate-ontario.com/video/Home-Buying-2.wmv
3. Home searching Tips- http://www.realestate-ontario.com/video/Home-Buying-3.wmv
4. Making an offer- http://www.realestate-ontario.com/video/Home-Buying-4.wmv
5. Closing your home: http://www.realestate-ontario.com/video/Home-Buying-5.wmv

All the best!

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

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

This is definitely a welcome news for all first time buyers in Ontario.

You can read more about first time buyer Ontario's land transfer tax rebate http://condopundit.com/wordpress/?p=27

Toronto's New land Transfer tax http://condopundit.com/wordpress/?p=11

Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Life Expectancy of Home Components

One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes, is to know the expected life expectancy of your home's components.

Such knowledge doesn't supersede the use of a home inspector when buying a home, new or old, but it can help you develop a savings plan so you are prepared for the inevitable.

Sooner or later you'll have to repair or replace many of your home's parts -- inside and out.

Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.

When the roof goes, the appliances conk out, or the paint begins to fade, it's a lot easier to come up with the cash if you've already got some socked away for just this kind of rainy day.

Last year, the National Association of Home Builders, along with the Bank of America developed the "NAHB/BoA Home Equity Study of Life Expectancy of Home Components" to help you take the guess work out of preparing for the worst.

The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance -- or the lack of it -- can all affect the life expectancy of many components.

Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life time is up.

In any event based on a comprehensive telephone survey of manufacturers, trade associations and researchers NAHB developed information about the longevity of housing components.

From the foundation to the rooftop, here's a quick look at how long, on a national average, some of the most common home components are expected to last.

Foundations. Poured concrete block footings and slab foundations should last a lifetime, 80 to 100 years or more provided they were quality built. The foundation termite proofing, 12 years, provided the chemical barriers remain intact.

Properly installed waterproofing with bituminous coating should last 10 years.

Flooring. Natural wood flooring has a life expectancy of 100 years or more with proper care. Marble, slate, and granite, likewise, but again, only with proper maintenance. Vinyl floors wear out in 50 years, linoleum about 25 years, and carpet between 8 and 10 years, tops.

Electrical system. In the electrical system, copper plated wiring, copper clad aluminum, and bare copper wiring are expected to last a lifetime, whereas electrical accessories and lighting controls are expected to fail not much longer than 10 years.

Outside materials. Outside materials typically last a lifetime. Brick, vinyl, engineered wood, stone (both natural and manufactured), and fiber cement typically last as long the house exists. Exterior wood shutters get 20 years, well maintained gutters, 50 if they are copper, 20 years if they are aluminum. Copper downspouts last longest, 100 years or more, while aluminum ones give out after 30 years.

Doors. Exterior fiberglass, steel and wood doors will last as long as the house exists, while vinyl and screen doors have a life expectancy of 20 and 40 years, respectively. Closet doors are expected to last a lifetime, and French doors have an average life of 30 to 50 years.

Windows. Wooden windows last longer than aluminum ones -- 30 years compared to only 15 or 20.

HVAC systems. Heating, ventilation, and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.

Appliances. Appliances' life expectancies depend largely on how much they are used, but they are typically replaced long before they are done. One must keep up with the Joneses. Among major appliances, gas ranges live15 years, dryers and refrigerators die at 13, compactors, dishwashers and microwave ovens might last until they are 9 years.

Roofing. The life of a roof is largely dependant upon local weather conditions, proper building and design, material quality, and adequate maintenance. Slate, copper, and clay/concrete roofs have the longest life expectancy, 50 years or more. Wood shake roofs, go for 30 years, fiber cement shingles last 25 years, asphalt shingles give up at 20.


Written by Broderick Perkins

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From My Realty Times Newsletter-emailed once a month and can be subscribed by all http://realtytimes.com/c/amitkalia

http://www.realtytimes.com" rel="nofollow">LINK

Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Hello,
My common-law partner and I just landed in Canada (Feb) and have returned to continue working in the UAE.
We were interested to know if we establish a bank account and buy a property in Canada how much will we be taxed on our current income which is tax-free in the UAE? We wanted to start investing in a property before we have to permanently move so that we can still maintain our permanent residency status.
Anyone in the same situation with some advice will be of great help.
Thanks,
Flotch

First Time Buyers' Dos And Don'ts

If you are a first time home buyer, you have a lot to learn.

Working from a blank slate you must build an understanding of the housing market, determine what you can afford, land a loan and hone in on a home that's a good fit for your lifestyle.

The transaction will likely become your largest asset ever so there's little room for error.

It is a daunting task, but you can ease your concerns if you take the process step-by-step, watching your footing as you move along the path toward the American Dream.

Below is a list of "Dos and Don'ts" to help first timers turn that stress into the self-confidence you'll need to move closer to your first home.

The list focuses on areas first-timers typically stumble over in their initial home buying attempt. Knowing what you could face will help you avoid some of those trip ups.

The Dos:

DO examine your credit standing. You need to know your credit standing. You may need to request corrections if there are errors. You may need to adjust your habits if your credit behavior is less than sterling. And you need to take those steps before seeking a loan. Your credit report is free from AnnualCreditReport.com, the federally regulated place to go. You can stagger retrieval of your credit report from each of the big three credit bureaus, getting one from a different agency every four months. Your report is free, but you may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors.

DO explore a mortgage pre-approval or commitment. An early green light on a loan will put you in a good negotiation position when you find your dream home. It will also help you shop within your budget.

DO line up a dream team of professionals. You may need a real estate agent, attorney, mortgage broker, home inspector and others to be your professional eyes during your home search.

DO buy for your lifestyle. Your first home may not be your last, so try to anticipate how long you'll live in your home and buy based on plans for the duration. Raising kids, starting a business, taking on a new job, housing Grandma could all impact the size or type of home you need first.

DO heed housing priorities. Separate your "wants" from your "needs" so you know where you can compromise to stay on budget.

The Don'ts:

DON'T get taken by the first house or neighborhood you see. Keep an open mind and spend sufficient time finding the right fit in a house and neighborhood for your needs.

DON'T buy more than you can afford. Lenders will often loan you as much as your financial condition warrants, but that may not be what you can comfortably afford. It's better to live with a comfortable mortgage on a smaller home than to struggle every month paying a mortgage on a house with more room than you really need. The down payment, closing costs, monthly expenses and taxes must in total all be within your income and savings range.

DON'T treat your home like a stock portfolio. Homes appreciate and depreciate in cycles which often aren't so predictable. Don't expect your home's value to skyrocket. Buy a home because you need a roof over your head, not for a quick profit.

DON'T try to time the market. Pinpointing the bottom of the market almost always happens after the market has started to turn up. How, otherwise, can you see the bottom? Focus on personal lifestyle needs, not market trends, in terms of timing your home buy.

DON'T sign for a confusing mortgage. Shop around for the best loan, read every detail of your loan contract and get some help understanding terms and provisions that confuse you. Avoid exotic, "creative financing," multi-option loans you don't understand. Again, lifestyle is key. Get a loan that fits.


Written by Broderick Perkins

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From My Realty Times Newsletter-emailed once a month and can be subscribed by all http://realtytimes.com/c/amitkalia

Realty Times website: http://realtytimes.com/

First Time Buyers: Q&As: http://www.realestate-ontario.com/firsttimebuyer.htm

Regards,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/