Re-Discover Hamilton in 2013 |
| by Darrin DeRoches December 20 - 26, 2012 |
I keep hearing all about the “Big Move” from all of these Toronto transplants and I have even wrote about it myself but reading articles from Toronto writers kind of makes me feel strange. In the last month, I’ve read a blog article and an article in the Toronto Star all about our city and the movement of artists, bands, etc. The articles all had a positive spin on our city and the burgeoning artist scene, the affordable rents yada, yada, yada. It all sounds good on paper and any news is good news but my skin crawls because the articles are being written by Toronto writers who all claim to have a friend who lives in Hamilton. They are writing about our city with their Toronto mindset and if anyone knows anything about a true Hamiltonian it is “Argos suck” or in other words “the best thing about Hamilton — it is not Toronto”.
I love that people are moving to our city and the city is growing! I am the first to welcome all development – even a casino. I just do not want the new transplants to think that they are doing us a favor by moving here, it is actually the reverse, you are lucky to be living in Hamilton. I am sure after reading my last line all Hamiltonians are saying “yeah right – lucky to be living in Hamilton”. This is my point of this article. We, as Hamiltonians, do not give ourselves enough credit. I can go on and list all that we have to offer and the leaps and bounds our city is going to move in the next decade but what is most important is to give ourselves credit. The average sale price for Hamilton property jumped $45,000 since last September. Hamilton housing market bucks Canadian cooling trend. Hamilton home price was up 8.5% in November. Hamilton is the number one place to invest in Canada. These headlines are a glaring example how our city is on the move. We are still the only city in the GTA that is affordable. We are the only “real” city where you can enjoy all the big city attributes but still have a small city feel. The year is coming to an end and all of the inquiries I am receiving on real estate, whether it is commercial, residential, lease or sale and even renting apartments are all from Toronto. They are looking for space to give it a go in our city. The overall consensus is that we are affordable and close enough for them to still visit friends and families. The most interesting inquiries are from people who lived in Hamilton and are now looking to re–invest in the city. Their attitude is the worst since they remember the stagnate city from ten years ago and all I tell them is to come back and take a look before slamming something they know nothing about. A lot has changed in the last couple of years and the future looks good for the city. “Re–Discover Hamilton” should be our new slogan for 2013! Happy Holidays Hamilton! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca |
Thursday, 20 December 2012
Re-Discover Hamilton in 2013
Thursday, 13 December 2012
Matrimonial Home
Matrimonial Home |
| by Darrin DeRoches December 13 -19, 2012 |
Last week I wrote about death or “estate sales” so the natural progression would to discuss “divorce” which to some is just as bad as death. I have a client looking to separate from their “common law” or “baby daddy” depending how you look at it, and the question of the matrimonial home is the issue. In most cases the home that a couple lives in becomes the matrimonial home and it is the largest asset. Most couples will simply put the home up for sale, pay their debts and split the remainder monies evenly and move on with life. Then there is the couple who cannot come to an agreement and all hell breaks loose.
My client wants to move on with her life but the “baby daddy” does not agree on anything. She has tried to negotiate and his answer is he will not sign the agreement. The sale of the matrimonial home has to have both parties’ signatures to make it legally binding. His name is not on title but since they have shared the home as a “common law” couple, he has rights to the asset. I can list the property with her signature since she is the only one on title but when an offer is received and we negotiate a deal, I have to get the “spouse” to sign the agreement or the deal cannot close. This is where things can get pretty messy. He has already made it perfectly clear that he will not sign and he has even threatened to put a lean on the property. I have heard horror stories from agents and things do change as time goes on. The reality of the house selling is more of a wakeup call than anything else. Once they sign the house away, the next signature is on a divorce or support paper, so things can get out of hand. I was selling a home for a divorcing couple years ago and we had a good offer on the table so I called both parties and arranged a meeting. We were sitting in the back yard and the tension was pretty high between the couple. I explained all of the details and when they agreed on the amount, the wife expressed concern was that the husband wouldn’t keep to the deal that they had made between themselves on the amount paid to her. I obviously had no dealings in their deal so I just sat there while looks, glares and a lot of silence ensued for the next few long minutes. The gate opened and the new boyfriend walked in. I was sitting there thinking “I am either going to get a signature or be breaking up a fist fight”. A few words were exchanged and she signed the paper to “end it all”. Interesting to say the least. Prolonging the inevitable will just cost you a lot more money and grief. In the end I will get the spouse to sign the papers – I always find their motivation. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Thursday, 6 December 2012
Estate Sales
Estate Sales |
| by Darrin DeRoches December 6 - 12, 2012 |
There is a big misunderstanding when it comes to estate sales that the estate has to be settled before the “estate home” can be sold. This is far from the truth and in reality the home is usually the biggest asset and has to be sold to close the estate. If you do not know what an estate sale consists of, it is usually when the parent or parents have passed on and their home becomes part of their estate. There may be multiple family members involved or it can be the government and banks. In most cases it falls to the family to settle the estate, with wills, assets and debts involved. Most people wait until the lawyers have all of the other matters settled before they sell the home but it should be one of the first assets sold.
The home usually holds the biggest value in one’s estate and once it is sold the proceeds are entered into the estate and then divided up amongst the parties involved. Unfortunately family usually gets involved and their emotions take over any business logic. Whether it is due to the fact that the homes hold so many memories or it holds so much money – families start to disagree about how to handle the home. I have seen families argue, cry, hire multiple agents or worse – allow the lawyers to become involved and drag on the inevitable and bill large fees in the meantime. When an estate sale is listed, most agents look at them as “power of sales” in our market. Everyone is always looking for a “power of sale” but these are controlled by the banks and they will not sell it lower than the amount owed. An “estate sale” is usually a fast sale which means the property will be listed at value or under so the estate can be settled and the family can get their money – as fast as possible. The homes are usually in great structural shape, new windows, doors and roofs but they are usually lacking in new updates and style. The savvy buyer realizes a new kitchen and bath will bring it up to today’s requirements and they look to buy such “undervalued” homes. The key to selling an “estate home’” is to contact a broker, like myself, who will take care of the transaction with your families wishes in the forefront. Properly marketed, these homes can get multiple offers and sell quickly so that you can settle the estate and make sure that the home goes to a family instead of a “flipper” who is looking to make a quick buck. Be wary of agents whose cards and flyers show up in your “estate sale” homes mailbox because there are agents who read the obituaries and target these homes. It may be hard to believe but I have actually seen it happen, it is not a myth. Properly handled, an estate sale can be a smooth transaction and garner a great result. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Friday, 30 November 2012
Going Alone
I had two different scenarios this week one with a long time
client and one with a new client. They
both believe they can do a real estate deal by themselves – but they called me
for advice. The new client was looking
for a space around 1000sqft for a café in the downtown area. They had called before and I explained to
them I was aware of about three spots that would work and if they wanted to
view give me a call. A couple of weeks
passed and they contacted me again asking for suitable space. I reminded them about the location I knew
would work and they started asking questions about zoning, price, location
etc. I explained a location in the heart
of all the action and they responded with interest. Then the first red flag
popped up when I told them I spoke with the agent and they asked me to have him
email them directly. I explained that I
would arrange everything and represent their interests, they agreed and we went
to set up a showing time. I texted the
agent back to set up a time and his response was” do you clients know how it
works?” At first I was confused but I
quickly realized they took my information and contacted the agent directly and
started to go on their own. Most people would think it is no big deal and I
just made a phone call – right?
Absolutely wrong!
In today’s market more and more people think they can go it
alone. They do not realize how a brokers
experience and knowledge can not only save them time but a lot of money. This group has to take into consideration
zoning, new “handicap rules”, location, lease terms, permits etc. They have talked with the city and are under
the understanding they will have to build new washrooms, access etc. - but they
do not have if it can be “grandfathered”.
This alone can save tens of thousands of dollars and months of
time. Dealing with the city can be a
nightmare but if you know the right questions to ask it can be an easy
transaction. My commission would have
been about $1,500 but they will be spending over ten times that without the
proper information.
The long term client calls me out of the blue and asks about
HST? I ask why and he says he is looking at new build in Toronto worth about a
million dollars and was talking to the listing agent who may have not included
it in the possible deal. I explain that
will cost him about $130,000 dollars but if he did a few things in the
negotiation I could get that included in the deal. He is still paying the listing broker the
commission regardless but he did not explain the inclusions or excluded clause
7 about HST. Luckily he called me in the last moments and I can still represent
his interests and show him how to structure the deal where he can save interest
and money in the long run and I will earn my commission while saving him money.
Use a broker!
Friday, 23 November 2012
When to List Your House
When To List Your House |
| by Darrin DeRoches November 22 - 28, 2012 |
The phones have been ringing this week with clients asking about the market and when they should list their properties. It seems to happen every year around this time because people want to start off fresh in the new year. The holidays are fast approaching and everyone will be talking about what happened in 2012 but more importantly they want to talk about their plans for 2013. The buying or selling of a house usually creeps into the conversation. People want to sell now to close out the year but most people realize it is not the best time of the year to sell. The holidays, weather and a slower market usually deter people from buying and selling during December. So when is the right time to put your house on the market?
Sellers who want to start the year off right may think that everyone is ready to start buying in the first week of January but it usually takes a couple of weeks to kick start the market. If the weather is not too bad then the second week is a good time to list a property since everyone has shaken off the hangovers and are back to their regular routines. If there is a snow storm happening or a deep freeze then wait until the third week to put your property on the market. If you do an open house during a deep freeze it will be quite hard to cause excitement about your property when everyone is cold and bundled up. You can only make a first impression once and you want to enter the market when the market is paying attention. Weather is a huge factor in January and it has to been considered. The clients who called me this week all mentioned that they wanted to put their properties up in March and when I asked why then they all answered “the Spring Market”. After a couple of simple questions I realized that they are not taking into consideration the timing and closing periods. If you list a property in March it takes about 45 days on average to sell the property and anywhere from 30 to 60 days to close the property which will take the sale into mid–summer or late July. Just because you have a pool and you think that it will show better in March, you actually have a better chance of a sale in January or February for a closing in the beginning of the spring when the pool can be opened. A simple presentation of the summer backyard via pictures or video will sell the “dream backyard” while the prospective clients are looking at an ice cold backyard. This strong contrast will be more impactful during the cold winter instead of the drab pre–spring market. People buy their vacations from online pics and brochures of the “hot get away” in the winter months while they are sitting in a cold house looking outside at snow and ice. List in January for the spring market. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Friday, 16 November 2012
Investment time
Investment time |
| by Darrin DeRoches November 15 - 21, 2012 |
It’s coming close to the end of the year and the phones are starting to ring on investment properties. Investors start to realize that they need to either invest their earnings for the year or they will be paying tax on these earnings in a short six weeks. Every year at this time all the investors I have been working with over the past ten months start to come out of the woodwork. The only problem is that the inventory is low and the prices are high.
I spoke with a building owner this week that has had his downtown property up for sale for at least six months. I asked how it was going and he told me he had three offers on the place. Sounds good but why is it still on the market? First two offers were “lowballs” and the third was right on the money but the buyer could not get the money. Unfortunately this seems to be the pattern for this year. There are the same few investors who take a look at every property that comes up and then they wait to see if it sells. When the listing gets a little old they come in and make a “lowball offer” to see if they seller is desperate enough to sell. It may work one time out of a hundred but it just wastes a lot of time and energy. The second scenario of an accepted offer and the inability to raise the money is more common. It is still hard to raise the money needed to buy a property in downtown Hamilton. Yes, we are rated the best place to invest in, but the banks are still slow on the concept of lending money to investors looking to invest in the number one community in Ontario and Canada. This particular property and a couple of the others that I have been involved in this year have all had a few stumbling blocks to get sold but things are getting better. I was looking to send commercial properties in the downtown area to my client today and I saw three conditional sales on properties that were listed in the past 60 days. They are not sold yet but the offers have been accepted and I am confident that they will sell. The companies selling them deal with a lot of commercial properties and they tend to have qualified buyers who are serious and dedicated investors. The residential market begins to slow down for the upcoming holidays but the commercial market tends to spark up for the same period, so if you are considering selling your commercial or income earning property you should put it on the market and take advantage of the strong economy and high interest in our city. The government is not raising taxes for next year and the economy is looking strong which translates into money flowing into investments. Real estate is the best investment one can make in today’s economy and Hamilton is going to be number one all year long! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Tuesday, 13 November 2012
Downtown Rumours
Downtown Rumours |
| by Darrin DeRoches November 8 - 14, 2012 |
It seems that interest in our downtown is still pretty strong. Over the past couple of weeks, I have had conversations with several people about the next great thing coming downtown. There are two restaurants that must be opening soon since they have removed the paper from their windows. One is on James Street and the other on King Street in the International Village. There is also the Burrito Boys in Gore Park ready to go (who have had the longest hanging of an “opening soon” sign that I have ever seen), and the promotion of the Anchor Bar which is currently renovating the old location of Waltz.
That brings us to the rumour of Waltz reopening on King William but it’s only talk right now. The old Grapes N Things is being worked on right now which creates a lot of activity in that area. At my last count, I can speculate that there are six different groups presently looking at properties to buy or lease for new restaurants in our downtown. This may not seem like a big deal but it really is. The old Windsor and Junction properties are being considered as well as others. It seems as though every single property that was a restaurant, nightclub, lounge etc., are all in the running. The most interesting thing about these rumours is that all but one of these groups are Hamiltonians, not outside parties. This says a lot about our confidence in our city. We are looking to put our money into our city. There are some restaurants looking to open a second location downtown and a few are considering relocating to somewhere downtown. The obvious question is “why?” We have to look inside the minds of restaurateurs and business people and consider what they are seeing that others may not be. It is not as though there are line ups for all the restaurants and that we need to open more but maybe that is not far off. Hooters are opening a downtown location so that must means something – right? All of this interest may be the next step in bringing back the excitement and nightlife to our downtown. To answer the question why is pretty simple – new hotels and condos and more entertainment. The removal of HECFI and the building of condos and multiple hotels are the reason that the soul of the downtown is starting to resurrect. People will be coming to town for more concerts and corporate events, and those who realize this are looking to invest in places for these people to visit. Corporate and independent investments are going to change the landscape of our downtown and it is just around the corner, not a pipe dream of yesteryears. Rumours are becoming reality and if you are considering real estate in our downtown, move now before it’s too late. Investors, restaurateurs, co–ops and corporations are all making moves – today. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Friday, 2 November 2012
Debt Advisor
Debt Advisor |
| by Darrin DeRoches November 1 - 7, 2012 |
I had an interesting lunch this week with the owner of Ontario Debt Advisors– James Woods. I was interested in the difference between a “debt advisor” and a “bankruptcy lawyer” or “trustee”. The reason I was interested in finding out how this all works is because as a real estate broker we are contacted frequently for an “opinion of value” on people’s real estate. These opinions are required when someone is considering going bankrupt or arranging a consumer proposal. Ninety-nine per cent of the time, the person who is asking for an opinion of value is not going to sell their home but rather are looking to control their debt. In most cases they ask a real estate agent to come out to their home, do the five minute tour and then ask for a written opinion of value, so they can fix their debt — not sell their home. I have no problem giving someone an “opinion of value” just let’s skip the tour, time, lies etc. The first step in fixing your debt problem is being honest to yourself and your advisors – numbers don’t lie.
To best explain what a debt advisor is, the explanation from ontariodebtadvisor.ca is “Ontario Debt Advisors is a Debt Consulting Firm driven to help Canadian consumers living in Ontario that are struggling with overwhelming debt. We are not trustees in bankruptcy. Trustees must consider the interest of your creditors and maximize the amount paid to your creditors and in turn, the trustees earn more of your hard earned money. Ontario Debt Advisors acts solely in your interest to ensure that you get the possible results by utilizing Federal Government options to eliminate or reduce your debt — immediately.” By using a debt counselor you can reduce your debt by up to 70 per cent and keep your credit score, house, cars etc. It seems that everyone went bankrupt years ago and now a “consumer proposal” is the new norm. The difference is huge and of course every case is different but you should take impartial advice from a Debt Advisor before making a rash decision. Most people wait until the last minute when their house is going to be put up for “power of sale” and they are being harassed by their creditors. Call an advisor before it’s too late. They can arrange your debt, reduce it by a large margin, and set up “interest free” payments to get you back on track. Creditors will tell you anything to get their money and most of the time they will go to any lengths to get it. A debt advisor can stop all the calls, arrange an affordable payment plan by reducing the amount owed — it is that simple. As a real estate broker I would rather sell your home and help you downsize than get a call from the bank that has it up for power of sale and you being put out on the street. If you need help with your debt email me darrin@unqiuerealty.ca and I will have a Debt Advisor contact you. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Monday, 29 October 2012
live work space
A client from Toronto came into the city this week to decide
whether to move his business to Hamilton. He is looking for a work/live
situation where he can have a retail presence with the ability to live in the
same location. This live/work scenario
is the big buzzword in real estate in major centers. Small business make up the majority of our
retail landscape and people who are photographers, artists, jewelers, book
stores etc., are unable to afford to lease a space for their business and then
rent an apartment on top of that. They
are looking to pay around $1,200 to $1,500 dollars a month for a space that can
accommodate both living and working.
I have a 12,000 sqft building for lease which is set up for
only commercial business and we are unable to accommodate people living in the
space – legally. We have at least one
inquiry a week for the live/work scenario and being a real estate broker I
started to look around town to find such a space. So when my client from Toronto wanted a
live/work space I decided to “tweet” it out to #hamont. The response was quick and impressive. The responses were Hamilton Economic
Development, a Councillor, a landlord on James Street and one from Ottawa
street. Everyone who responded wanted to
help a Toronto native find a space in our city. I took their suggestions and
combined them with the leads I could muster up from the real estate board and
set out a little tour for a live/work space in Hamilton.
My client emailed me he missed the 9:30 bus but would be on
the 10 bus out of Toronto. I picked him
up at the hunter station at 10:45 and we headed on our tour. I drove him around Locke, Aberdeen, Hess, International
village, king and main street through Ottawa street and back down Cannon and
James. Every street has something to
offer at different price levels and sizes.
We really took our time on James Street and looked at the new CBC/Art
Gallery building and he was impressed with the architecture of the city. We stopped in Mixed Media where Dave, the
owner, gave my client the lowdown on space, the city, art community etc. We then showed him available space on James
and even though it was pretty run down he was impressed with the community and
space to really consider making the move from Toronto.
Hamilton should focus on the live/work space since we are
still an affordable city. A ton of small
business is being done on the internet but these small business owners still
need space to live – create – sell their creations. They are making money and want to be part of
a community. Hamilton is the only “real
city” close enough to Toronto that can provide a community, parks, education,
airport, transportation, green space that will make people make the move. It may only take 45 minutes to get here but
once they leave the “big city” they realize pretty quickly how Hamilton is the
“real city” not a beige, plastic suburb.
Thursday, 18 October 2012
Coffee Round Table
Coffee Round Table |
| by Darrin DeRoches October 18 - 24, 2012 |
I was invited to a coffee round table by Glen Norton our Urban Renewal Manager which featured Mathieu Langelier – Executive Director, Hamilton Halton Builder Association and Cameron Nolan the President of Realtors Association of Hamilton Burlington. To be honest, I thought that it would be a boring, stuffy type of stale coffee, big winded talk from people who had an agenda and who were forcing it down your throat kind of deal. But I was totally wrong.
The meeting was held at the Mulberry Coffee Shop, which provided the space, great coffee and amazing muffins. The informal setting and talk really brought out a casual, yet I say, cool – vibe. The open form brought out architects, realtors, investors, property owners, landlords etc. Everyone had an open forum to discuss topical points that related to our city. The two big topics were the new but dreaded legalizing apartments and the creation of more condos/apartments in the downtown. Everyone is up in arms in registering all apartments with the city. It is not the costs of doing it; it is the ramifications that come with it. Every landlord wants their units to be legal since it will make insuring and renting easier but at what costs? The zoning nightmares will be insane, costly and next to impossible. The second topic about bringing new builds to the downtown boiled down to the same concerns – City Hall. Builders are not worried about selling the units; they are concern with all the red tape in city hall – period. It is easy to blame City Hall and our politicians for all of our problems but from a neutral point of view – City Hall has made vast improvements but it still has a way to go. Twenty years ago I dealt with city hall for a business downtown and they were like dinosaurs in the building department. I had to challenge, argue, go to the OMB and finally just correct all of their assumptions with the facts in order to move forward on a simple 15 person patio. In today’s building department there is still a pass-the-buck, cover-your-ass type of attitude. This culture has to change and it has to change from the top down. The city says they are open for business and they are BUT and it is a big but, the building department has to get up to speed. I can sit here and suggest what they should do but really they should sit with a bunch of builders, realtors and landlords and ask them what needs to be fixed and FIX IT! Our downtown and our city as a whole can grow exponentially if only we really open the doors to the developers, builders and businessman who are scratching at our door but are afraid to really commit. Streamline our building department, remove obstacles and let our city grow to its full potential – it may all just start with a simple conversation over a coffee. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Thursday, 11 October 2012
Fast Moving Market
Fast Moving Market |
| by Darrin DeRoches October 11 - 17, 2012 |
Let’s look at the real estate numbers so far this year. For the first 9 months of the year, our market is up 7.5 per cent from last year. In comparison, the overall for last year was a 7 per cent increase and since the first nine months are up 7.5 per cent, we should easily beat last year’s increase. It is easy to say that in the past two years, real estate value has grown by over 7 per cent - that is a great increase. In today’s market, homes are selling faster – 45 days on the market compared to 54 days last year – and for higher prices. September actually had a 13 per cent increase in value compared to September, 2011. In short, fewer homes are on the market but are selling at top dollar.
The average home price during September in our market is $369,032. That is pretty impressive. The next question is, has it become a sellers’ market or is it a buyers’ market? The reality is it is pretty balanced right now but you can call it a sellers’ market since listings are way down and prices are through the roof. So what does this mean? Sell your home now! If you are even considering selling your property, this is the time to get top dollar. If you sell now, you will get the best price but you may also have to pay top dollar for the next property – or will you? If you consider the reality that all properties are getting top dollar in today’s market, how can you take advantage of this? The first thing you do is prepare your property to get top dollar and once you hit the market, start looking at properties that have been on the market for over 45 days. If they have not sold, they are either overpriced, in need of repairs or have been over looked. These properties have become the “ugly ducklings” and there are deals to be made. A savvy real estate broker can pinpoint these properties where you can actually use the strong market as your bargaining chip. If a property is not being sold – something is wrong. Point out the issues and make an offer with these in mind and properly negotiated you can find the right property for a great price. The market tends to slow in mid-November/December and if a property has been up since September they will be concerned that they cannot sell before Christmas. In some cases they have already bought and they will just want to sell to move on. I saw a property sell for $20,000 less than market value since he was satisfied to get his money out and move on to his new project. A quick closing can save you thousands of dollars right now. V Darrin DeRoches is a local real estate and mortgage broker. H |
Monday, 8 October 2012
Agent Goes AWOL
|
Thursday, 27 September 2012
Quality Selling Fast
Quality Selling Fast |
| by Darrin DeRoches September 27 - October 3, 2012 |
Fall is officially here and it is starting to get cold but Hamilton’s real estate market is getting hotter by the minute. We should all know by now that we are number one in Canada and Ontario for real estate and investment (if not hit up viewmag.com and look at my past articles) but all I see around the city is “sold” signs. I am getting calls about properties even after we have a conditional offer with people hoping the deal falls apart so they can jump in and scoop it up. This is not just happening in one part of the city, it is happening all over.
One agent listed a property in Rosedale area with three bedrooms, garage, driveway, deck, steel roof, new windows, new kitchen and 2 baths. I am familiar with the property. Since I was doing a market analysis for a property I am listing it was a great comparable. I called the agent who informed me that the seller had already purchased a new home and wanted a quick sale – so they decided to list at $264,900. They put the property up on the market in the morning and within 9 hours it sold for over asking. Since I knew the agent, I had to ask if they had priced it low to get multiple offers? He stated it was priced to sell fast since the client had already bought and did not want to wait to sell. This only confirmed that my new listing can ask even more than what the seller was thinking. Later in the week I was talking with a colleague who had a property sell in Ancaster. It was priced over a million dollars but sold within days for top dollar. It was a beautifully built builder’s home and worth it’s price tag but to have a home over million dollar sell that fast was impressive. The common thread in both of the properties – Quality. If you have a property that is in good shape, and priced right, it will sell fast. There are other homes in both of these neighbourhoods that have been listed and sit on the market, but properly marketed homes, staged and priced right are blowing them out of the water. So if your property is worth 100 thousand or over a million dollars, consider the time it will take to properly market the property and the rewards you will reap in time and money. Take a little time to do the staging, cleaning, painting etc. Since the market is moving fast it will be time well spent. You can only make a first impression once, make it count and you will sell your home fast and you can then spend your time counting the extra money you made on selling your home in a hot market. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Sunday, 23 September 2012
Your Fifteen Minutes
Your Fifteen Minutes |
| by Darrin DeRoches September 20 - 26, 2012 |
Fall is just around the corner and the casting calls are coming in. We had our first episode debut this week on the W networks’ My House Your Money and we received two new casting calls this week.
The first show is a new show with Property Brothers Drew and Jonathan who are looking for a couple who have found their dream home, but find themselves scrambling to put their current home on the market. Are you stressed about viewings & deadlines? Does your old home need a face-lift to make it more appealing to buyers and maximize its value? Let their team of design experts help speed up the sale and get you into your new home. Families moving within and around the Toronto area are invited to discuss the possibility of obtaining a renovation completed on their current home. The second show is a new program called: Inside Outside Upside! From the producers of Sarah’s House - Inside Outside Upside! is a new HGTV series currently looking for homeowners who have recently purchased their dream home and need help fixing up their existing property before it goes on the market. They are looking for couples located in the GTA (Greater Toronto Area) who have a minimum of $12,000 to put into interior and landscaping renovations and are available to go through renovations in September/October. Participants will receive a sizable amount of product and donated labour for participating on the show. Participants must be willing to appear on air. If you or someone you may know is interested in one or both of these show just give us a call or email and we can answer all your questions and put you in touch with the right producer to make it happen for you. Filming a real estate TV show can be a very fun and insightful time. The excitement and exposure can also help the resale of your home. They use the top designers and production people to create an amazing end product that will definitely put more dollars in your pocket when selling. We enjoyed filming our episode in and around Hamilton and there is no better way to create a buzz about a property than filming a television show and being able to put the stamp of their designer on your listing. We also have a close friend who just shot a pilot real estate show produced / directed by Mike Holmes about renovating the space of a single father to set up their place for their children. When this pilot gets picked up they will be looking for single fathers looking to renovate. So tap into the magic of television and take advantage of all it has to offer. Your home will be the leader in the market and you will get top dollar! Give us a call or email for more information. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Monday, 17 September 2012
Number One Again
Number One Again |
| by Darrin DeRoches September 13 - 19, 2012 |
Hamilton has been named the top city in Canada to invest in. Hamilton has attracted more industrial and commercial development than any other city in Canada over the past year. The Site Selection Magazine analyzed projects with at least one million invested and at least 50 new jobs created or at least 20,000 sqft of new construction. I will now include a typical email I received after writing about the accomplishments of Hamilton:
“Hey Darrin, enjoy your column, especially the recent one on REIN’s selection of Hamilton as the top investment market in Ontario for the next few years. First I need to check some facts with you. I read recently, I think it was in the Downtown BIA newsletter, that Hamilton had been picked as number one in Canada. Was that last year? Were we not number one in Canada this year, but still number one in Ontario? Can you clarify this? Secondly, and I’m going to be a bit of a skeptic here, but don’t take that personally – I’m skeptical about everything. I’d be curious to know what cities had been picked by REIN in the past, and did those cities actually experience substantial growth and increased market values in the ensuing years after they were picked ? Thanks for shaking the Hamilton pom poms. Regards, Mike” This email is exactly what I would expect after writing about we are now number one in Canada not just Ontario and, yes, we beat Quebec City who have 16 projects and also that little town down the road called Toronto with 15 projects. We had 20 projects over a million dollars in the last year and we are on track to have a great year with Navistar and the downtown hotels and condos. So to clarify our recent accomplishments we are number one in Ontario for the top place to invest in according to REIN’s data and we are number one in Canada for the place to invest according to Site Selection Magazine. We have all the infrastructure, highways, railways, ports, airports, in place to grow inside of our city’s boundaries to become a force to be reckoned with. Stop living in the shadow of the city down the road because their tower isn’t even the biggest in the world anymore. I do not blame Mike for being a skeptic and I do not take it personally but the city has to start realizing what we have before someone comes in and buys it all up. If you look at what other cities have accomplished by moving forward instead of dragging their feet, you will see the rewards. Brantford’s casino has proven its worth and we should consider our opportunities. The harbour is the next jewel to be reckoned with and let’s keep the ownership as local as we can. Invest in your own real estate market before outsiders buy it all up and you miss the boat. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Picking Up More Steam
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To Buy Or Sell First
To Buy Or Sell First |
| by Darrin DeRoches August 30 - September 5, 2012 |
To buy or sell first? That is the question. Usually I would always tell a client to put their house up for sale first and then begin looking at possible homes in the market. I have a great house in the Gage Park neighbourhood ready to go on the market but we are waiting till mid-September to list the property since there are absolutely no desirable properties on the market for my client to buy. We have searched three different areas that they would consider moving to and not one property comes even close to their wish list. Therefore we have to come up with a new game plan.
We met for lunch this week and after a long conversation we have laid out the perfect plan for today’s market. First my client is meeting with a mortgage broker and their bank to set up “bridge financing’ which is exactly what is sounds like. This line of credit is basically a mortgage that will bridge the time it will take to buy a new home and sell the old home. We want to have our money straight so when a quality property comes on the market we can make a strong offer with no conditions and successfully acquire the property. We will likely be facing competition and I for one do not like to lose, so with our “bridge financing’ in place we can make an offer most people cannot compete against. The second part of the plan is to have the system set up when a new listing comes on the market we are able to be the first one to the door. Speed is of the essence and we put in place a couple of things which enables us to do just that – first people in with an offer ready to go. The last part of the plan is to have their house ready to be put on the market the second we have a new home secured. The pre-planning, pictures, marketing, signs, internet ads etc. have all been set up and only need a push of the button and a phone call or two to have their property on the market within minutes. This will show the sellers that we are not only ready to buy but their property is on the market, priced well and ready to sell! The fall market is coming fast and will be hot. As a broker you must be ready for anything and with these clients we are not just ready – we are going to knock it out of the park. The market changes daily and you have to be ready so you not only get top dollar for your property, you will have bought your dream property. My clients will be sitting in the back of our company limousine writing the offer with no conditions beating all others to the door before they even realize it was on the market. Everyone else will be out in the cold when they cannot find a suitable property in September while my clients will be enjoy the holidays in their new home. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Hamilton Is Number One!
Hamilton Is Number One! |
| by Darrin DeRoches August 23 - 29, 2012 |
This is not just a fluke but a second year in the number one spot for the best city to invest in all of Ontario. Who is number two? Who cares? We are number one! The Real Estate Investment Network of Canada considers a great deal of factors to come to this determination. The biggest indicators are Real Estate and Jobs and our future looks pretty bright in these important factors.
R.E.I.N. founding partner Don Campbell states “known formerly as a hard–working steel town, the city has quickly shed this image in the eyes of potential investors – as indicated by the record breaking building permit values Hamilton has experienced in recent years” He also went on to talk about the potential of the city and why high tech jobs will come to our city. R.E.I.N. believes we are good enough to be number one for a second year, so it is about time for us to start tooting our own horn. Twitter explodes every time a new food truck rolls into town or new artists step onto James Street, but we need to be promoting our city for more than this. By the way, I follow all the food trucks on twitter and loved the chicken poutine on Dirty South this week and I have supported artists for 20 years – my point is we need to promote our business (jobs) and real estate to people outside of our city. We have to stand up a boast a little. I’ll start. Tonight I saw a promo for season 2 of My House Your Money which featured my episode the DeRoches family episode #29 Tuesday Sept 18 2012 at 7:30 on the W network. We shot the show a couple of months ago in and around Hamilton. The crew was very impressed with the city and kept asking about the real estate and our “cool” streets. They went on and on about having an amazing lunch at the Bread Bar on Locke and this is coming from the “hipsters” from Toronto. They keep calling me looking to shoot another episode in our city but it’s hard to find families who are willing to be on camera. Our city has so much to offer and we need to work it all together and promote everything. Locke, Hess and Augusta streets, waterfalls, Supercrawl, Ticats, Bulldogs, Innovation Park, top hospitals, farms, airport, food trucks, film and animations studios, busy water port, well priced properties, parks, Mohawk, McMaster – you name it, we not only have it, we have the some of the best! So stand up Hamilton and say it with me – “We are number one.” The phones have already started ringing from investors outside of the city and they will continue up to next year when we go for the three peat! So start blowing your horn Hamilton and when they come here for a new high paying job and buy a reasonably priced home let’s take them to Art Crawl and hit up a food truck – I’ll be there. V |
Breaking Up Is Hard To Do
Breaking Up Is Hard To Do |
| by Darrin DeRoches August 16 - 22, 2012 |
Breaking up is hard to do. Well, not really. In today’s world, it seems that breaking up is the easy part. Settling the assets is the real hard part. Divorce was the big thing in real estate a couple of years ago, but more and more people are buying houses without the marriage part. So when the relationship fails, who really gets the assets? If you are in the process of a separation, one of the most important things to do is “keep up the status quo”.
Separation is always hard and it can get pretty nasty, but keep in mind your financial position. You can always hate each other later; take care of your assets now. First thing’s first – make a plan. If you want to keep the house, talk with a broker to assess the value and he or she will be able to recommend a good mortgage broker who will be able to refinance the property and one party can “buy out” the other party’s half. If this does not work, you can start by getting separate bank accounts and keep paying the bills equally until one party is able to establish credit to be able to refinance the property. A third option is to sell the property and divide the assets. Most people are usually separating over money issues so the best option is to sell but this also brings in problems with renting, schools for the kids etc. The best plan is to keep things as normal as possible and combine all three options. Separate your money and accounts, establish separate credit scores and keep paying the mortgage – jointly – until a time when the financial picture is better. At this time both parties may be able to purchase new, yet smaller, properties that will work for everyone. It may sound crazy to work together with a partner who you obviously do not like anymore, but the downside is huge for everyone involved. If children are involved, you are going to be paying support anyways so why not use that money to “support” your biggest assets and move forward separately but with a common goal – good credit, home ownership and secure financial future. Common law and child support will usually override any other squabbles you will have so why not take care of your home? A good real estate broker along with a mortgage broker can sit down and help both parties settle their assets and they can even bring in credit councilor to aid in the process. Once you have come to terms with the reasons why you are separating, sit down with a cool head and move forward with a strong financial outlook. You’d be surprised how much money you can save in the separation if you can keep things moving for the short term and stay amicable. You have a whole life ahead, so enjoy your financial future. You can still hate on your ex once it is all settled and you are enjoying your home – not your ex! V |
Know Your Market
Know Your Market |
| by Darrin DeRoches August 9 - 15, 2012 |
Real estate listing has been low for the past couple of months. This week a client of mine called about a property in the west end and, after looking on our system, I could not find it. I proceeded to check the e–mail to see if I had the wrong address and once confirmed, I checked again – still no listing. I did a history check on the property and even looked at the old agent’s current listings – still no new listing. I finally went on the MLS system and found the listing. It was listed with an out of town agent. That may seem to be no big deal but in the end it may have cost the seller ten thousand dollars or more. I am not knocking on an out of town agent but after talking with the seller and other agents about the property, it became very apparent that the seller would have made ten thousand more. If it starts to sound like sour grapes since my client did not have a chance to bid on the property – it isn’t. It was not a case of “you snooze you lose” but rather a case of an out of town agent not realizing the local market conditions.
The property is located in the west end of Hamilton which presently has a shortage of listings. It was priced under $200,000 which makes it very attractive to a large amount of buyers. It was listed on the weekend in a different real estate board, not Hamilton. So the only way to know about the listing was on the MLS or driving by the sign. The seller had a couple of showings and received an immediate offer $9,000 under asking. In the meantime, myself and a couple of other agents showed the property only to be told an offer had been accepted. Again no sour grapes, but the agent did not give the property proper exposure and then accepting an offer under asking – lost the seller a lot of money. I spoke with the agent and the seller and asked to be informed if the original offer falls apart to call us since we would be willing to make a strong offer immediately. I had to ask the owner how she selected the agent and she told me it was her daughter’s friend. I told her it was hard to find her listing and she told me the agent had it on the Hamilton system but it was not. I was tempted to explain to her that I and the other agent I spoke with would have offered full price or more to secure the property. It was not my place to explain the mistakes made and the reality of making more money but it should teach us a lesson. Friends are friends and business is business. So if you are looking to sell your property and get top dollar for it, consider using a broker who works full time in your market and understands the present market conditions. In this case, the seller left thousands of dollars on the table. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Hydro - The Monopoly
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Industrial To Commercial Rates
Industrial To Commercial Rates |
| by Darrin DeRoches July 26 - August 1, 2012 |
There is a big difference in the tax rate from industrial to commercial rates. This may not seem like a big deal but with the city starting to grow and the brownfields being redeveloped, a company will look at all factors. This week I dealt with a company that has been in Hamilton for many years and about 5 years ago they built a brand spanking new facility without taking in to consideration the tax rates. They are now looking at how they can bring down their costs and they’ve realized that they are paying a higher industrial tax rate. Their facility has about 20 per cent of industrial production and the other 80 per cent is commercial space. They called me for advice and asked if I could refer them to a tax specialist. They believed they could explain the usage and get the 80 per cent of their facility changed to the lower commercial tax rates. This would be a huge savings and help their business thrive in our city.
I made a call to a specialist in these matters who has done over 10,000 cases in lowering the tax rates for such commercial companies. He was able to give great advice but unfortunately the company that I was helping would not be able to lower their taxes. Their point that 80 per cent of the facility was being used as commercial and therefore should be taxed as such does not fly with the government. If every company sent in a request to lower their taxes stating a percentage of use inside their facility, the government would have no way of policing this. So even if 1 per cent of the property is being used as industrial, the other 99 per cent will be taxed at the higher rate. Obviously we did not like this answer and continued searching for a solution. The answer made sense but the costs were prohibited. If a separate building housed the industrial part of the business then it would be assessed as industrial tax rate and the main building would then be able to given the commercial tax rate and drastically bring down the yearly taxes their company is paying. This designation of separate buildings is the only way the government will accept the division of tax rates, but in this case, building a separate structure would cost way more than the savings. This company will continue to pay industrial tax rates on the entire property for years to come. The answer to the problem seems pretty simple, but it got me thinking. Whoever designed, built and advised the company to build their new state of the art building should have known about this. The big thing in today’s buildings is about LEEDS building and saving energy. The company that is building the facility should have simply separated the 20 per cent industrial section to save them a great deal of money in wasted tax payments. A little bit of knowledge is dangerous. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Worse Than Friday The 13th
Worse Than Friday The 13th |
| by Darrin DeRoches July 19 - 25, 2012 |
What is the busiest day for real estate closing this year? August 31st. This year August 31st falls on a Friday and most people in the industry book their closings on Fridays so the lawyers and banks can take the week to get everything in order. The busy spring market tends to have closing all lining up for possessions for September. This being true plus the end of the month being on a Friday with the long weekend on the same weekend, you must be crazy to even consider this date.
The possibility of many closing failing to occur on such a date increases due to delays in getting mortgage advances for buyers which will have a chain reaction causing delays to other closings. You will be under enough stress looking to move into your new dream home but add the factor the bank was unable to complete your deal and the seller’s lawyer screaming at you about the delay. You will be unable to move your belongings into the new home since the deal did not close. It is a long weekend and the offices are closed on Monday, plus it will take a long time on Tuesday to “catch up” with the mess left from Friday. This scenario does happen and you “legally” cannot move into the new home unless the lawyers have them money from the bank and the bank will not be working past five o’clock on a Friday – especially on a long weekend. Let’s also remember that all moving vans will be booked out and if you live in a building with an elevator – they too will be booked on this day. Everyone wants to be ready for the new school year and be in their new property but at what costs? Most real estate agents would not even think to look ahead and in all reality they will not have to deal with any of this stress, unless you are calling them freaking out that you cannot close on your new home and you are homeless for at least the weekend. There are other dates that come up throughout the year but Augusts 31st on a Friday this year will be the absolute worst – to date. Again if you already have this date booked a van booked and you think it will not affect you think again. The person who is selling their home to you may not have a truck booked and their bank or lawyer may not be able to process their deal and you will find yourself sitting in your moving van out on the street unable to take possession of your new home. The problem may not be you, your lawyer, your bank, their bank, their lawyer it may just be the processing at the ministry who has all their staff booked off for the last long weekend. This is not a Y2k thing where all the computers may stop working it is more of a long hot summer thing where August 31st Long Weekend may be more important to someone in the chain of closing and while they are at the cottage enjoying the weekend you are stuck sleeping in a moving van someone else has booked for the next day! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
9 Million Reasons To Celebrate
9 Million Reasons To Celebrate |
| by Darrin DeRoches July 12 - 18, 2012 |
I just wrote about the Downtown Renewal Program and since writing the article, it keeps coming up in conversations. I have two downtown commercial properties up for sale and all the potential buyers are very surprised when I tell them about the programs. Without re–hashing the whole programs the simple terms are if you are located downtown or are in a B.I.A – there is free money and interest free money available from the city. These loans can make or break a project in the core and the new Staybridge Suites – which opens next week – used the program to the tune of 4 million dollars or so and we now have a new hotel in our city.
The same developer – who by the way is doing about 200 million dollars of new construction in our city – just got approved for another 9 million dollar interest free loan. He is bringing a second hotel with the Hilton Company as well as new condos to Bay and King and will be ready for 2013. The city approved the loan today and everyone is getting excited about a 9 million dollar loan. The project is already on the go, a second crane is being erected, jobs are being created and everyone is skeptical about the company behind the investment. What other private company is investing over 200 million dollars in our downtown? It has taken years for this developer to acquire the land and get all the financing in order. All the projects they have done have changed the landscape in our downtown. The press gets overly excited since the company does not do big interviews and make big promises as some other so–called developers have done, and are yet to produce anything. This company just does what needs to be done. Put shovels in the ground and get the buildings built. The loans that the city are handing out have helped a great deal of projects come to life. There was only one project that had defaulted but it was eventually turned around and completed. The fund is going strong and it is the crucial part of many projects that would have never happened unless the city was involved. So let’s not get excited over 9 million dollars for one project because of the additional revenues created through taxes and jobs will far surpass the 9 million dollar mark. Also remember it is a loan with no interest. The money will be paid back in 5 years and then be lent out again for the next project. The success of these loans will only bring in more and more investment into our city which will create a better future for everybody in the city. I applaud City Hall and all the companies taking advantage of the programs to improve our buildings and create a great future landscape of our downtown. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
25, 30, 40 Year Mortgages, Oh My!
25, 30, 40 Year Mortgages, Oh My! |
| by Darrin DeRoches July 5 - 11, 2012 |
The big thing this week is the change in the mortgage lender practices. Everyone has been reporting how the 30 year mortgage amortization is gone and only 25 year will be available plus they are changing the Gross Debt Ratio is being lowered to 39 per cent and lastly they will only allow 80 per cent on refinancing. There are also other rules about buying over a million dollars, but if you are buying at that level, you’ll have to put 20 per cent down. So suck it up.
Everyone is focusing on the new rules but no one is really talking about what you can do if these rules affect you buying a home. First off you can apply for a mortgage before July 9th and you can have that rate held so you can qualify for the old rates as long as you must complete the transaction before Dec 31st 2012. That can make a big difference for the average home owner who is looking to buy this year and want to get the most house for themselves. The average consumer will be able to get almost $50,000 more in an available mortgage which can make a huge difference in the location, size etc. The 85 per cent loan to value on your home will also enable the average consumer about $20,000 dollars more than the 80 per cent new rule. So if you are even considering on doing a re–finance to do renovation or whatever you will have to get it done before July 9th. Even if you do not use the money available to you, it will be approved and you can use the money in the future. The funny thing is the government only allowed 18 days for these changes to take place, so banks will be overwhelmed with applications and may not be able to process everyone. Some banks may even start the new rules early while others may try to compete by locking in the old rates to the end of the year to attract new business. The other thing most people will not tell you is that these rules only apply to the “big banks”. Credit Unions and private mortgage lenders will still offer the old rates. That being said you will need a good mortgage broker who will shop your deal around to these lenders. There is always another way to do a deal so if you are looking to get the most bang for your buck consider looking into the alternative. The difference between a 25 year and 30 year mortgage is very little in the monthly payment but it can make a huge difference in the home you will be able to qualify for. If you consider the life of the mortgage and the size of the home, location etc., you will make a great deal more on the larger home and it will cover the difference of the five more years of payments. Plus you will be living in a better home over the course of the mortgage. Remember, five years ago we were taking out 40 year mortgages and now we are discussing 25 year mortgages. Wow! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Grants & Low Interest Loans
Grants & Low Interest Loans |
| by Darrin DeRoches June 28 - July 4, 2012 |
There are parts of Hamilton that are eligible for grants and low interest loans. The interesting part is that property owners are not lining up to get the free or cheap money. The programs have changed, for the better. and I was not aware of the new opportunities available to property owners. There is the “Gore Improvement Grant Program”, the “Downtown Commercial Façade Program”, the “Commercial Property Improvement Grant Program” and the “Hamilton Downtown Office Tenancy Assistance Program”.
The basic requirements for all of these programs is that you follow all the building codes, permits etc; and that you have all your property taxes paid. Of course there are other fine details but the overall message to all these programs is the city has money available to property owners who want to improve their downtown properties and bring back business and people to the downtown. Since the inception of the programs there have been great success stories and a couple of questionable situations, but all in all, the city is doing more than their part to improve our downtown. In the Gore Improvement Program the city is basically giving up to $50,000 in a matching grant to those who own a property in the Gore Park area to fix almost anything in the building. The Downtown and Commercial Improvement Programs are granting from $10,000 to $20,000 matching grants for those owners who will use the money for the facades of their buildings. This money can be used for windows, signage, awnings, brick cleaning etc. You can apply each calendar year and improve your building with this program. So if you want to do new windows this year and awnings and brick cleaning the next, just re-apply. The last program is the Downtown Office Tenancy Program which has funds to loan up to $450,000 dollars at a rate 1 per cent below the prime rate for up to 90 per cent of the cost. Where in the world can you get a loan that is below prime and will cover 90 per cent of the work? The work can consist of HVAC, paint, walls, data systems etc. Basically the city will help you with the lowest loan possible if you are willing to put up 10 per cent of the funds to create office space in the downtown. So fix up your property, add value and entice new tenants with a state–of–the–art property. It seems too good to be true but apply for the grants or loans, follow the rules, and you can add value to your property — it is just about that easy. There are also interest free loans for condo conversion available. If you would like more details about these programs or other programs the city is offering just email me and not only will I send you the information I can arrange a meeting with the city to get the money flowing. I can also help with providing the post appraisal of what your property will be worth once the work is done. Free and cheap money is just sitting there waiting for you to take it! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Enough Already
Enough Already |
| by Darrin DeRoches June 14 - 20, 2012 |
I was showing a young couple with three young kids a student home this week and I was a little puzzled as to why they were considering buying a student investment property. My first question was “Have you seen any other student properties?” Their response was “Oh yes, we have viewed over 40 properties.” Big red flag comes popping up. Who in their right mind would truck around their three small children and view over 40 properties? My response was “well you obviously know the drill so I will just answer any questions you have.” I was still curious as to why they were not be able to find a property that works for their family within viewing 40.
As the showing progressed, we talked about what they were looking for, the area, size, yard etc. I asked why they were considering a student property and they wanted some income to help with the cost of the home. This particular property was $340,000 because it had a potential income of over $2,400 a month but if they lived in it, they would be making about $1000.00 a month income. I suggested that they consider a duplex or triplex in an area that would provide them the size, yard and all of the ‘must haves’ on their wish list. They answered with “well, we are considering student homes – right now.” Another red flag hit. We ended the showing with them checking out the yard, roof etc., and they politely asked for my card but we both knew there is no way they would be buying this house, let alone a student house. I told them about other properties we have listed and they asked if they can view them – but I explained to them that the yard, size of rooms and everything considered would not work for their family. In saying goodbye I wished them a good day and said to enjoy the nice weather and they answered “We have another house to view.” Red flag – house number 42! The reason that I was curious about their situation was not to knock them for looking at over 40 houses, but the fact that they are not using a real estate agent in their quest to find the perfect family home. In the ten minutes that I spent with them, it was obvious that they were really taking all properties into consideration. They wanted to make the right decision for their family and that was where a good agent would be able to narrow down the search and figure out really what they are looking for. Is it income, location, size or are you not really ready to buy a home today? Maybe the wife and husband have two totally different ideas of a dream home. Buying a home is a huge financial and emotional decision and if they would use an agent instead of the internet, their kids could be playing in the yard of their dream home instead of driving off to home number 43. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
Mobile Agent To The Rescue
Mobile Agent To The Rescue |
| by Darrin DeRoches June 7 - 13, 2012 |
The bank rate held again today at 1 per cent. Sounds pretty much the same, no glitz or glam, just a safe banking system that is strong and keeping our lending rates low. The only reports on an increase in the rate is that in the near future a modest rate increase may happen and there is a 50 per cent chance that it will occur. Pretty wishy washy stuff. So it looks like low mortgage rates are here to stay.
This brings me to my experience of renewing one of my house mortgages. The bank contacted me about six months ago and offered a low one time rate to get me to renew with them and to avoid the possibility that I would shop around the mortgage. I figured that the rates would be the same so I left it until today to look into it. The bank sent me a second renewal where they asked me to check a box and send in the renewal and they now are offering me the posted rate, which is considerably higher than the one they offered six months ago. I made an appointment with the bank and sat with their “inside mortgage” agent who then offered me a rate lower than the posted rate but still not as competitive as other lenders. I told the agent that I deal with a lot of brokers and that I could “shop around” my mortgage and asked if she can do better? The answer was that she could send it to head office with an explanation that we would be willing to open new accounts and consider other products – if they would give us a better rate. She also justified the rate by saying it was so much lower than the rate we had 5 years ago – Really? No shit! Come on, that is the best pitch, it’s lower than the rate we have been milking you for over the last five years. I should be so grateful. Plus just fill out the paperwork and bring it back in – do all the work and we will just keep making money off of you. So I left with the hope that the big man in Toronto will consider giving us the same rate that everyone else is offering in the open market. This bank has an “inside” mortgage agent, a “specialist” mortgage agent and a “mobile” agent. The funny thing is that they all can offer you different rates. Same bank, different employees, better rates. Sounds like I am making this up – but it is true. So I called a mobile agent that I have met before and asked her to look into the renewal and she guaranteed me that she can get the best rate, and she does. I did not want to go through the hassle of shopping around a mortgage and coming up with all new paperwork etc., but I still had to “shop it’ inside the same bank. Weird but true. The worst thing is that each bank does it differently, but the “mobile agent” tends to do all the work for you and will get you the best rate inside your own bank! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca. |
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