The Right Mortgage Broker

Mortgage Broker

by Darrin DeRoches March 7 - 13, 2013

The right mortgage broker can save you a ton of money. When buying a house most people are so excited that they will sign just about any mortgage to get the money so they can have their dream home. The majority of people just walk into their bank and ask for a mortgage where they are given a percentage that is posted by the bank. They figure it is the best deal and sign away. The problem is it usually is not the best deal for them but rather for the bank. This is why everyone should always consider using a Mortgage Broker for their renewals, new mortgages and re– finances.     The only problem with this is to find the right one. Usually when buying a home your real estate agent works with several brokers. Some are good at customer service and some are good with “getting the job done.” So you have to be careful who you go with since they are handling the biggest purchase that most people make in their lives. Just because they can get the job done does not mean it is worth signing your life away. I had an unusual need for a mortgage for a client of mine so I called the mortgage broker to see if they could get it done.     The client has a home that is fully paid off and is currently up for sale and is worth $280,000. They wanted to buy a new townhome that was worth about $170,000 today before the original home sold. Most people would just say to get a “bridge mortgage” from your bank. Simple enough but the bank said no. The original house is worth over $100,000 more than the house that they wanted to purchase—why would the bank say no? Banks would do the deal but it would require a lot of paperwork and time to get it done and when pressed on this their answer was simply no. So when we asked the mortgage broker to shop it around to lenders, he did.     The problem was the client was in–between jobs and the banks were worried that they would be unable to pay the carrying costs. The mortgage broker kept getting declined from several banks so he looked into private financing. This is where he got a yes! Only one problem—they wanted $16,000 to do the deal and then a monthly payment which was about double the posted rate. It would have cost the client about $20,000 to buy a home before selling theirs. Of course we declined the deal but the mortgage broker found another private lender who did the deal for under $5,000 and a reasonable carrying cost.     Big difference from 20 grand to 5 grand and a yes from a definite no from the banks. This was all completed in less than 48 hours and we closed the deal early. Working with the right people not only saves you a ton of money but gets the job done—the right way! If you need a qualified, honest mortgage broker drop me a line and I will give you his contact 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.

Royal Connaught

by Darrin DeRoches February 28 - March 6, 2013

Downtown Hamilton is still humming with activity and the latest announcement from the owners of the Royal Connaught is really exciting. The developers, Rudi Spallacci and Ted Valeri have owned the property for over a decade and they have had some false starts but this plan seems to be the right one for the times. They are planning on three additional towers being built at 36 storeys, 33 storeys and 24 storeys tall. With a total of 708 units when they are done building their new project but most importantly a saved historical building as its foundation. They are planning on opening the grand foyer of the Royal Connaught this summer with all the plans laid out. The biggest question is will the project actually move forward and I can answer that with a resounding – yes!     These developers have done a ton of projects in the city and they know exactly what it takes to get it done. They are starting with the existing structure and selling one tower at a time. The demand will be there once the product is released.  The beauty of this project is it can go in stages and finance itself as it grows. Sure, we are not Toronto where they just build it and it gets filled up, we will build then sell and then build some more. The demand and market conditions will dictate the pace but the final results will be magnificent. A heritage building as its anchor and a new 36 storey  building will change the landscape of our city just as the original building of the Royal Connaught did when it was erected.     The addition of all of these new people living downtown, with the other projects already being built, will be a huge change to our downtown. I am getting inquiries on my downtown commercial listings from all over the place. Toronto is obvious, but also Kitchener, Peterborough and Oshawa companies as well. A commercial space put up a for sale sign this week and had four showings before it hit the market. They are asking nearly triple the price of what they bought it for 12 years ago and they will get close to their price. Downtown will fill up in the next five years and there is a lot of opportunities for those who can look ahead.     I was speaking to a real estate agent about it and his response to these announcements was “who is going to buy them?”. Hamiltonians will buy, people from outside the city will buy, and investors will buy to rent out. We are one of the last “affordable” cities in the Golden Horseshoe and these condos are going to be the perfect fit for breathing new life into our downtown. Rumour is they may still incorporate a hotel in the project and I really hope they do – it would be the perfect project with that mix – old and new – condo and hotel. 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.

HOW IS THE MARKET DOING?

Real Estate

by Darrin DeRoches February 14 - 20, 2013

Every real estate agent hears the same question over and over “How is the market doing?” Since I write a weekly article I figure I should answer the question from time to time. The market is doing great. We are beating every other market in the country – right now. Our employment rate is below the national average and our real estate market is constantly growing. Our only problem is inventory. I presently have several clients looking for townhouses in stoney creek and ancaster but the problem is no quality units are on the market. There are units available which would need some work and my clients are looking for ready to move in units. I spent the weekend showing several clients different properties and even slugging through snow drifts to find a suitable unit. There are very few options out there. I do not blame the sellers on trying to get top dollar but if they priced it right properties are selling fast.     We stopped in an open house which already had a conditional offer on it and they had couples clamoring to get in to see if the deal falls apart. This particular house was priced right and sold in under a week during a snow storm. Buyers are braving snow drifts, soaking feet and a few slips and falls to get into a quality property before it sells. My clients just started looking and they were even considering on putting in an offer just so they would not miss out. I told them to digest it, sent them some history on the property and wait and see. The property is over–priced and I believe we can find them another unit for a better price. I know it is my business to sell properties but time and patience can help make a better decision.     The year has started with a bang and properties are moving. The biggest push of the year is the spring market and I know it will be fast and furious. The snow will melt and the market will be blazing hot. If you are considering on selling this spring give me a call and I can show you how to take advantage of the fast moving market and realize top dollar on your sale and get a fair price on your purchase. Being prepared and ready to move will be the best strategy to win in the spring market. If you are a first time buyer we can also prepare you to not only be pre–approved but to be the top candidate in the search for your first home. This market will be the most competitive and how you present yourself and your offer will be the difference from winning in this competitive marketplace to losing in frustration which could keep you renting. 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.

Locating The Casino

by Darrin DeRoches February 7 - 13, 2013

Over the past few weeks, the debate over the casino has heated up. It seems the location of the property is the biggest problem. Downtown Hamilton or keep it at Flamborough racetrack? When it comes to the viability of a casino the location does not make or break it. The old saying “if you build it – they will come” is so true when dealing with the location of any casino. A casino has all the money and marketing power to convince the average person to drive, fly, bus or walk to its doors and spend their “entertainment dollar”. So, since the location should not matter to their bottom line, they should go ahead and put it out in Flamborough where it will be a destination oasis out in the farmers’ fields.     The casino will work wherever they put it but the missed opportunity of not placing it downtown is the real issue. It will change the face of a city and give those looking to invest in our city that we welcome all investments. The hotels, jobs, entertainment, restaurants and a slew of spinoffs that would come from a casino downtown would help our city grow into the future. The casino is not the be all and end all of our city and it does not represent the city’s future at all but it does help us move forward. As a city we have to welcome all types of investments to our bottom line. The casino will attract other businesses to the core. The casino will attract conventions to our city. Good or bad, a casino in the downtown will attract more investment. If the opponents of having a downtown casino want our city to stay the same then vote no for a casino we will be fine without one.     Our downtown has turned the corner as the ad in the Spectator points out and I am the first to applaud the changes independent and corporate people are doing to help “grow” our city. From food trucks, to business parks to Supercrawl – these great successes are the reason we have turned the corner. A corner we have been waiting to turn for over 20 years. Looking forward, a casino will be a piece of the puzzle to change our downtown just as important as the independent store owner opening a new spot in our downtown. Both belong downtown. Both can co–exist downtown. Both will help Hamilton catch up for the lost years of doing the same – nothing! Location does matter and a casino downtown is just as important as a market downtown, a festival downtown, a condo downtown, a hotel downtown, McMaster downtown, hospital downtown, theatre downtown, restaurants downtown. These are all great investments located in our downtown which help bring people to 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.

Commercial Leasing

by Darrin DeRoches January 31 - February 6, 2013

When you are buying a house you use a real estate agent but when you are looking to lease a space for your business, most people believe that they can do it themselves or they will ask their agent who sold them their home for advice. If you or your agent do not know what TMI or HVAC is then call a commercial broker immediately. If you are a good business person you will always look for people who are smarter than you in their respective fields. Negotiating a commercial lease can be detailed and small little clauses can create huge costs.     First off, HVAC is heating, ventilation, air conditioning. Seems pretty simple to understand but when negotiating a lease, who is responsible for the unit, maintenance and replacement costs over the term of the lease? A standard lease can be from one year to five years with renewals up to 20 plus years. The maintenance and replacement of HVAC can cost tens of thousands of dollars. I had one landlord who refused to fix the air conditioning and our options were to fix it ourselves or leave. It is pretty hard to move your business once you have taken years to build it up, so we spent over $15,000 dollars to fix something that we used for two summers. The cost of replacing the filters can cost a couple of thousands of dollars a year. Add in the ventilation unit and heating cores, it can be extremely costly.     TMI is the next big thing when negotiating a lease. When a property is listed for $17 a square foot, that is just the base rent. TMI is the Taxes, Maintenance, Insurance on the property. This may include landscaping, snow removal, extra insurance depending on the type of business you are running etc. These fees can escalate over the years as the costs rise for these services. Most deals will add on the costs in square feet, so the original is $17 plus another $5 for TMI which brings the total rent to $22 per sqft. These costs will increase over the course of the lease. An example is one lease I was paying around $1,800 a month when I started and 10 years later I was paying $3,000 a month. The area was the same but the TMI increase as well as my original cost per sqft. The landlord then was considering redoing the façade of the mall and in our lease we had to pay our share which would increase the rent another $300 a month for the improvements since it was a clause in our lease we signed over ten years ago.     These are only the tip of the iceberg when it comes to the ins and outs of a commercial lease, so if you are considering opening a business this year and figure you can just negotiate your own lease – think again. Do not use a regular real estate agent – use a broker or a commercial agent who has the experience in your field – they can make or break your business. 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.

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.