Indicators Are There by Darrin DeRoches January 24 - 30, 2013 The results are in for the real estate market for 2012 and the average price is up over 7 per cent but the total number of units sold was down slightly from the previous year. I could spew out all of the numbers of units and averages but it all boils down to: your property is worth more. If we look back to all the predictions, they stated that the market would increase slightly by 2 to 3 per cent and in fact it rose over 7 per cent. We can now sift through all of the experts who say that this year will maintain but with only a slight increase, which is saying that I was wrong last year. So maybe if I understate the obvious I may be right.     The real answer is no one really knows what is going to happen. There are big indicators that help experts guess that the market will go up or down but these indicators are not fool proof. I take my information from the market itself. Drive downtown and see all the boarded up building sites. That statement used to mean a condemned, derelict building boarded up with no activity but pigeons and crack heads. One building site that hasboards on it is the new McMaster site with the boards boasting all of the activity that the building will generate once it’s built. Across the street at Main and Bay a hotel and condo building is rising out of the ground. The old Grapes N Things and Waltz are being built into new restaurants. The old Don Cherry’s has construction crews tearing it apart. A new BBQ joint near Ferguson, plus a café around the corner and new restaurant – the George Hamilton is almost finished on King and Bay. The new Hess and King apartments are coming along nicely. The condos at Aberdeen and Dundurn have owners already moved in. The Witton lofts are moving along and the boarded up site beside Acclamation on James is almost ready to go.     The city is finally leasing out the bottom floors of the Lister Block to a new café and a restaurant. The new market in Jackson Square by Ocean fresh is due to open in May and the Mustard Seed are working towards their new Co–op in the downtown. The old Junction Café has been sold and work has begun on that property as well as a champagne bar around the corner. There are rumours of more things coming to town soon – like a casino– but all of those mentioned are working on a “New Downtown”. These indicators, plus the condo projects in corktown and more coming, are all indicators of a strong market for 2013. Hamilton is on a upswing with over $1.5 billion spent in development last year up about half a billion, so take notice and if you’re not in it yet, get yourself in to the 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

Open House Draws Buyers

by Darrin DeRoches January 17 - 23, 2013

The year is starting off right. I did an open house this past weekend and it was the best open house I have ever held. The buyers were out and they were looking to buy. The second week of January tends to be the beginning of the New Year market but the turnout was amazing. The property is located in a great neighbourhood and there were a couple of other open houses in the area but the sheer number of couples, parents and grandparents was impressive. The weather was amazing and I am sure it helped out with the number of people looking but there were a lot of buyers out looking to buy.     People showed up early and the last group stayed late. The flow of people was constant and I felt like a doorman at a nightclub instead of a broker at an open house. We just left the door open to keep things moving smoothly. People were waiting to get in while some were taking off their shoes, others snuck in the side door. Good thing I brought a mortgage broker with me who was able to help with the volume of people.     The real “take away” from the open house was not that we are going to sell it fast at top price but rather that there are a lot of people looking to buy a property. Most people go to open houses to start their “window shopping” which means they are probably not going to buy today but definitely this year. We had over a hundred people through the doors – I feel four couples are actually serious and I would expect second showings or an offer this week. Open houses are only successful if they bring an offer or they successfully expose your property to the neighbourhood. There are always the “nosey neighbours” who come and pick apart the house. It is really easy to spot them since they are trying the hardest to “act” as a buyer. Most agents try to sign up prospective buyers or talk to the neighbours about possibly selling their home. The day was so busy that we could only give our information and work with those who seemed most interested.     So why was the open house so busy? Marketing, timing and weather. A broker has to know his market and how to reach it. The buzz created by the busy open house will make potential buyers think fast about making an offer since they see all the activity on the house. We had one couple call their parents to come down and take a look due to the crowds. We may have gained a couple of potential clients but all who came to the open house will remember the buzz our listing created! 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.

RENT TO OWN

The following is an email I just received and I feel a lot of people are looking to own a home this year but “Renting to Own” is not the answer:

“We've been talking to some folks who operate a "Rent to own" deal. Everything seems to be legit, and they seem to be pretty transparent.  They buy the house we choose; we give them 3% and pay them what a mortgage + taxes would be at 6% over 25 years, with an agreement to buy at the end for 3% per year more than they paid.  They refund us what we would have paid towards the principal and the deposit that we then use towards the down payment.  We pay all house expenses. They make a shit load of money in interest, but its money that would go to a bank anyways.  To me, 6% and 3% per year isn't unreasonable ………no different than high risk/low money down mortgage. We want to spend under 200K, and live in the downtown core. They seem to think I'm crazy and keep sending me listings in Rosedale, the East end or on the Central Mountain for 225K.  Every one of them an ugly box bungalow. They don't like any listings I send them, either location. What do you think?  Rental prices for houses in the Hammer are pretty high, we'd likely end up spending $1200/1500 a month anyways. Assuming the contracts are good and everything is on the up and up, it seems to work for everyone? “

What I think is really just spitting back what the reader says in his email. “Everything seems to be legit” is the first red flag.  The facts you give them 3% down when all you need is 5% down to buy a property yourself then pay all the cost at a rate of 6% instead of a going rate of 3%. The last line is classic “… it seems to work for everyone?”  The person goes on about their credit being weird and if they rented it would be about the same anyways.  I answered him with the simple line “Bullshit”. That’s it, I called it – bullshit.  If you are able to come up with 3% down then wait to you have saved another 2%.  Fix your credit and buy your own home you want to own and add value to not an “ugly box bungalow”.  They pick these properties since they are around $200,000 and they can make an easy return the 6% and an easy rental, when no if, you screw up.  You will be paying a 6% mortgage and you will be stuck in the ugly bungalow with the hope of owning it one day.

Take your time, fix your credit, save a down payment and then email me when you want to buy a home your will own the day you move into it.  I will find the property you want in the area that you want with a mortgage you can afford. RENT-SAVE-BUY!

Looking Back, Looking Ahead

by Darrin DeRoches January 3 - 9, 2013

It’s the end of the year and it is a perfect time to do a year in review. I can look back and write about all the predictions that I made and boast about being right or I can look ahead and really take stock in the future of our market in 2013. So, let’s do both.     2012 was a great year for real estate in our market. It went up across the board at seven per cent and higher. We all made money if we owned real estate. Best investment of the year – Hamilton! We won the best place to invest in Ontario and Canada and the market is getting better every day. We are all worrying about the fiscal cliff but when we wake up from the hangover of 2012 it will be a great beginning to 2013. Canada weathered the storm of the mortgage crisis in the states and we actually came out stronger, so whatever “creative accounting” they do we will be strong in 2013.     Next year will be even better. We will have ups and downs. The bank rate might even rise off the lowest rate in forever but the strength of the market and the great investments coming to our city will only make the real estate market stronger. So get your finances in order and look ahead to make 2013 the best year ever which is the Year of the Snake. Okay, the Year of the Snake does not sound like a good reference and we should take it into consideration when looking ahead. When it comes to business and real estate there are “snakes” to watch out for so take a second look before making the big decision on buying real estate. Do not work with people who offer the “bait and switch” or “no money down”, “rent to own”, “no commission” – remember you get what you pay for and this is so true when it comes to any business transactions. Work with those who “earn” their commissions and put your interests in the fore front. If you need references just email or call and I can refer you to the right people in the mortgage business, lawyers, appraisers, debt counselors etc. We only work with the best, reputable people and are always happy to refer you to the ones that you can trust.     The future of our market is looking strong, it is a sellers’ market but the right broker can help a buyer find the right deal and still find a “deal” in a sellers’ market. My phones have not stopped ringing over the holidays, the market is strong and it did not slow down at all during the Christmas break. The new year is going to start off fast and keep moving so if you want to be buying or selling get ready for a quick sale. Lucky number 13 and the Year of the Snake gives me the indication of a great year in real estate but take a second before signing your life away – take a moment and make sure you are not dealing with a snake in the lucky year 2013! 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.

All I Want For Christmas...

by Darrin DeRoches December 27, 2012 - January 2, 2013

Some people might ask for something smaller but I spoke to several realtors last week who have listed a property one week before Christmas and are getting offers! It may sound a little strange because most people wonder who in their right mind would list a home, let alone buy a home a week before Christmas. These people are not out of their minds, they are actually taking advantage of a sellers’ market!     The properties are all different and are located in different areas but all have the same result one week before Christmas – offers! The selling of a property so close to the holidays seems like a crazy thing to do but these agents listing them are how they say “crazy like a fox.” A great agent understands the market and today’s market is screaming “Sell!” If you look at the activity of comparable properties in a specific area and you see little or no competition in your price range – it is time to list – today – no matter what time of the year it is. A quality product, priced well will sell anytime, but in today’s market you can ask a top price and still achieve your goals. This is where the majority of people will chirp in and say “wait until the spring market” and most people believe in the spring and fall market – but the real answer of when to sell is “what is the market doing today?”     I am in the process of renting apartments and we just signed two deals this week for apartment move in’s on February 1st. Again, you would wonder who is looking to move in the winter let alone pay top dollar for an apartment. Many people are looking and the response in the last week was amazing. The market is always moving and having the right product at the right time will bring you great rewards. If you are thinking of selling or renting I would suggest getting it on the market before the big push in mid to late January. The weather has helped tremendously and the outlook is a little cold but no big storms coming our way, so wait for everyone to sober up after the New Year and hit the market before everyone else does. Why? You will have a great advantage and less competition in the first couple of weeks of the year. Why compete with other properties and weather when you can sell before both slow down a sellers’ market. Ask top dollar and you will get it. Better yet call me and we can devise a plan that will bring amazing prosperity for the New Year! Happy Holidays! 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.