Rates And Timing

by Darrin DeRoches February 16 - 22, 2012

Last week I wrote about when to put your property on the market and the advantages and disadvantages. I spoke with an investor this week and he is considering listing his student house in Westdale and he is considering listing it in late March, which is just in time for the spring rush. Sounds about right, but it’s actually totally wrong. Student houses should already be on the market or get up in the last week of February.     The reason a student house has to be on the market before the spring rush is because students are already looking for accommodations for next September. If you have a house that is not rented or you want to lease it out to students, the property should be on the market so you can advertise it rented or available. If you notice I would not refer to the property as vacant but available. It is not any slick real estate term or marketing jargon, it should be listed in a way that a parent is able to purchase the property with the intention of their child moving in and renting to their friends.      There are two types of buyers in the Westdale student market. The investor who is looking for a positive cash flow property that they can buy and fill it up with students who pay the cost plus profit. Then there is the investor who wants to buy a property for their child going to school that will take care of it throughout the years and when they graduate sell it for a profit. This is why a student house should be listed so you are marketing to both buyers in the next six weeks before exams and empty houses for the summer. The market pretty well dries up until August when the investors begin to reconsider buying a property for the incoming students. If you wait till the end of March, you will miss the boat!     Another interesting thing this week is the whole 2.99 percent mortgage which was based on four years and a 25 year amortization. The big banks used it as an advertising draw in January and depending on who you listen to, it was just a gimmick. The smaller banks and some mortgage brokers are still offering this low rate and First Credit Union is offering 2.89 percent. So if you did not take advantage of these offers you should talk to a mortgage broker who can sign you up and even lock in the offer for up to 90 days. Send me an email if you need a referral and I will be happy to connect 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.