First Time Home Buyer Tips

This month I am providing you with some helpful tips when it comes to buying your first home. Including a Tax Credit, RRSP Home Buyer Plan, the Top 5 mistakes for new buyers, and some tips.     If you have any questions feel free to reach out to me anytime. Enjoy!

TAX CREDIT

The Government wants to help first time home buyers with a tax credit. The credit works out to a maximum of $750 for qualifying home purchasers.  To qualify, the home must be in Canada, and can be new or already built. It can be a detached, semi, town, condo, or apartment, and must be registered in both names. A buyer who has not owned a home in the last 4 years also qualifies. This can be found on line 369 of your income tax return.  If you want me to send you the quick video, let me know.  www.cra.gc.ca/hbtc

RRSP Home Buyers Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your RRSP at no cost or penalty to buy/build a home for yourself or for a related person with disability. You can withdraw up to $25,000 in a calendar year.  Your RRSP contributions must remain in the RRSP for at least 90 days. You will be required to repay back the entire amount to your RRSPs over a 15 year period, that starts 2 years after funds are withdrawn. You will not be able to withdraw the funds from your RRSP without a completed purchase agreement, so funds cannot be used from RRSP as your OFFER deposit at the time of offer, as no deal will be completed yet.  They will be withdrawn on closing and applied towards house, or give to you as a cheque.  So make sure you have funds to cover the deposit at time of offer.

 

TOP 5 MISTAKES FOR FIRST TIME BUYERS

1.     They buy at the wrong time

2.     They are ambushed by hidden closing costs

3.     They don’t get the agreement reviewed by lawyer

4.     They don’t bother with an inspection

5.     They don’t the know process and timelines

#1 TIP FOR NEW HOME BUYERS = Do Your Homework

You will want to lay the groundwork for a successful home purchase, by figuring out how much house you can afford and how much we want to borrow. This means meeting with a mortgage broker or your bank, reviewing your family finances, and thinking about the needs and wants you have in a home. For the rest of my tips for New Home Buyers, email me at randyhart@royallepage.ca

Randy Hart  |  Sales Representative
Royal LePage Burloak Real Estate Services

3060 Mainway, Suite #200, Burlington

Direct 905-808-3863    randyhart@royallepage.ca

www.randyharthomes.com

Buying or Selling…The Benefits of Using a Realtor

Buying or selling your home is one of the biggest financial decisions you can make. Before you do, doesn’t it make sense to contact a professional?  A Realtor’s experience can guide you through the process that can be more complicated than you think.

Their knowledge of the housing market can assist you in making the best possible choice. A real estate professional’s role is to understand their client’s needs, provide them with advice that will help guide them in the right direction and protect them from any home buying pitfalls.

With intimate knowledge of the real estate and legal terminology, a Realtor offers you the best opportunity to buy or sell your home quickly and for the best price. During a home evaluation they provide history on current homes for sale, and actual recent sale prices. This can be invaluable when pricing your home and negotiating. During a sale, the Realtor acts as a mediator between you and the other parties negotiations.  They are there to protect your best interests and can help reduce stress during this difficult process.

Another valuable aspect of the Realtor relationship is the network of lenders, lawyers, mortgage brokers, home stagers, painters, and contractors that can assist you in completing your real estate transaction.

I am a licensed Professional Realtor, and part of the Realtors Association of Hamilton & Burlington also known as RAHB, as well as the Canadian Real Estate Association (CREA), and the Ontario Real Estate Association (OREA).  While working with me, the national code of ethics and strict provincial laws ensure that you will be provided with a high level of service, confidentiality, integrity and honesty during your interaction. 

I primarily work in Burlington, Hamilton Oakville and Mississauga helping people buy and sell homes.  It is great working with so many good people, whether its a Burlington Detached home, an Oakville Condo, a Hamilton Investment property, or a Mississauga Townhouse.  Every home sale or purchase is different. I have a great team of professionals that I work with in financing, law, and home staging, to help answer any questions you may have, and provide you with quick and friendly service you need for your home.

If you have any questions or would like more information on recent trends in your area, if you would like a home evaluation to know your home value, or just need some real estate advice, please feel free to contact me with any questions. I’m available to discuss!

 

 Randy Hart  |  Sales Representative
Royal LePage Burloak Real Estate Services

3060 Mainway, Suite #200, Burlington

Direct 905-808-3863    randyhart@royallepage.ca

www.randyharthomes.com

 

 

 

 

 

 

 

Preparing to Buy a Home

Are you thinking that a home purchase may be in the future plans for you? Here is some information to get you on your way to a successful home purchase.

CREDIT - Review and Build Your Credit
 Your credit standing will be one of the indicators that the bank uses to determine how much money they can approve you for in a mortgage.

Order your credit report. I recommend using Equifax, where you can get a credit report for free. If you visit their website, www.equifax.ca , print and complete their form, and mail/fax it in with required documents. Review your report and check for any mistakes, accounts or debts that are not yours. If there is a problem, dispute any errors and report it to Equifax/Creditor.

Paying your bills on-time is VERY important. Pay before the due date, never late. When you pay late, your credit score is affected. If there is a problem with your credit, you need to work on it.

MORTGAGE – Be a Preapproved Buyer
After the credit report review, visit your local bank and meet with a mortgage specialist or contact a mortgage broker. They will go over your credit, review your salary, and determine what amount of mortgage they can offer you and at what interest rate. This process will tell you what is the maximum house price you can afford.

A down payment for the home purchase is also important. Most banks will require 5% down on your home purchase. Along with the down payment, you can expect another 1-2% of the purchase price in closing costs. Save your money!

HOMES - Start Looking and Educate Yourself
Make a list of the things you NEED in a house, and also a list of the WANTS. Needs are things like minimum number of bedrooms, bathrooms, etc. Wants are things that are nice to have such as hardwood floors and granite counter tops.

Go online to www.mls.ca and search for homes that meet your needs, and see what homes are like in that area and price range.

Next meet with a Real Estate professional. They will go over the above mortgage approval, your needs and wants in a home, and be able to discuss homes and areas that you are thinking about purchasing. I am happy to answer any of your questions over the phone, or meetup with you to discuss your needs and help make the home buying or selling process easier.

There are some other things to think about such as mortgage insurance, buying homes with the best resale value, and more that I can discuss with you further. I’m available anytime to review any of the above information, or answer any real estate questions.

Contact me anytime.

Randy Hart  |  Sales Representative
Royal LePage Burloak Real Estate Services

3060 Mainway, Suite #200, Burlington

Direct 905-808-3863    randyhart@royallepage.ca

www.randyharthomes.com

November Residential Condo Market Continues Rise!

(December 6, 2011 – Hamilton, Ontario) The real estate market in the Greater Hamilton, Burlington and outlying areas* continued to show increases in listings, sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

The residential condominium market saw the largest gain with an 11.2 per cent increase in the number of sales when compared to November of last year. The same market also saw a 6.1 per cent increase in average sale price over the same month last year. The 189 condominium sales were better than the ten-year average of 179 sales for the month.

In the residential freehold market, sales were up slightly less than two per cent over the same month last year and average sale price was up 8.7 per cent.

Listings were up over both last year and the 10-year average in all sectors.

“We are continuing to see a strong condominium market this year,” said RAHB President Ann Forbes Arndt. “Year to date, condo sales are just over five percent higher than during the same period last year, and the average sale price is 3.4 per cent higher than last for the same 11-month period.

Other year to date figures show that while the condominium market is stronger than last year, the residential freehold market is just over one per cent lower than the same period last year. Average sale price in the freehold market, however, rose 4.8 per cent over the same year to date period last year.

“Every community in our marketing area has their own localized residential market with larger swings than we see in the overall numbers,” said Arndt. Waterdown, Glanbrook and Dunnville (area 61) all saw significant increases in numbers of sales, while Caledonia and Grimsby showed the largest drops in sales compared to November of last year.

Dundas and Caledonia saw the greatest decrease in average sale price compared to the same month last year while Grimsby, Flamborough and Waterdown had the greatest increases in average sale price.

“These results should not be taken as trends as they are merely snapshots of the market at a particular time,” added Arndt.

Figures quoted are for sales and average sale prices of units located in the jurisdiction* of the REALTORS® Association of Hamilton-Burlington and processed through RAHB’s Multiple Listing Service® (MLS®). Unit sales reflect “all property types” including residential, condominium, commercial property, farm, vacant land and business, unless otherwise specified.

Article provided by Realtors Association of Hamilton-Burlington

Residential condominium market shines in October

The real estate market in the Greater Hamilton, Burlington and outlying areas* continued to show increases in listings, sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

The residential condominium market saw the largest gain with an 11.8 per cent increase in the number of sales when compared to October of last year. The same market also saw a 5.9 per cent increase in average sale price over the same month last year. The 199 condominium sales were better than the ten-year average of 194 sales for the month.

In the residential freehold market, sales were up less than one per cent over the same month last year and average sale price was up 5.1 per cent.

Listings were up over both last year and the 10-year average in all sectors.

“October was certainly a good month for condominium sales,” said RAHB President Ann Forbes Arndt. “It was the sector where we saw significantly higher sales over last year at the same time. Freehold sales were pretty much on par with sales last year at this time, but fell short of the average for this time of year.”

Year to date, listings of residential properties are down 3.4 per cent while sales are down 0.4 per cent for the same ten-month period last year. Average sale price, however, is four per cent higher year to date than last year at the same time. Total dollar volume of $3.195B in residential sales is 3.6 per cent higher than last year for the same period.

“Every community in our marketing area has their own localized residential market with larger swings than we see in the overall numbers,” said Arndt. Waterdown, Flamborough, Glanbook and Hamilton Mountain all saw significant increases in numbers of sales, while Caledonia and Hamilton West showed the largest drops in sales compared to October of last year.

Dundas and Caledonia saw the greatest decrease in average sale price compared to last year while Grimsby, Flamborough and Waterdown had the greatest increases in average sale price.

“These results should not be taken as trends; they are merely snapshots of the market at a particular time,” added Arndt.


Please refer to the accompanying chart for residential market activities in other parts of RAHB’s jurisdiction.

Figures quoted are for sales and average sale prices of units located in the jurisdiction* of the REALTORS® Association of Hamilton-Burlington and processed through RAHB’s Multiple Listing Service® (MLS®). Unit sales reflect “all property types” including residential, condominium, commercial property, farm, vacant land and business, unless otherwise specified.

Information provided by Realtors Association of Hamilton-Burlington

Continued Strength seen in Condominium Market

The October residential real estate market in Burlington saw overall increases in numbers of listings and sales and average sale price when compared to the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

For the residential market overall, numbers of listings were up 9.6 per cent over last year, but fell short of the 10-year average for the month. Sales were up 3.8 per cent but also fell short of the 10-year average. Average sale price continues to rise over the previous year. The condominium market showed continued strength, with sales up 32.5 per cent over October of last year. The average sale price of $307,385 was up 15.7 per cent over last year at this time.

Residential freehold sales were 10 per lower when compared to October of last year, but average sale price rose 6.7 per cent.
“The condominium market really shone in October,” said RAHB President Ann Forbes Arndt. “It contributed to the great performance seen in the condominium sector for RAHB’s entire trading area.”

Year to date, sales of freehold properties are up less than one per cent over the same ten-month period last year, with the average sale price 7.1 per cent higher for the period. Despite how well condominium units sold in the month of October, year to date sales are down 1.6 per cent to last year, though the average sale price for condo units is 4.9 per cent higher. Overall, residential sales are less than one percent down compared to the same ten-month period last year, listings are down about four per cent and average sale price has increased by almost seven percent for the period.

All information provided by Realtors Association of Hamilton-Burlington. http://www.rahb.ca/press/11110​4Burlingtononlyoctober.pdf

Downsizing...Make the Move - By Randy Hart

If you are like many families across Canada, you are living in a larger home than you need. Probably a 3 or 4 bedroom family home, the kids have moved out, and it’s just the two of you now. You are used to this large house, the yard, and have amassed a huge amount of belongings along the way. The majority of the years spent raising your family have been in this very house!

Things change rather quickly when they do; and sometimes adapting to these new changes is a battle that is hard to comprehend. You now have 2 or 3 bedrooms that are used as guest rooms, two fridges, but only need one, and more yard work and house maintenance than you ever have time to do…or want to do. It’s time to think about retirement and downsizing to a smaller more manageable home.

The thought of changing this; leaving this house, moving on to something different can be a tough one. Many questions come to mind during the thought of a move. Where will we go? How much space do we need? What type of home can we afford? We have so much stuff, what will we do with it?
For those planning their retirement, other questions come to mind as they were not able to put away as much as they wanted to during their working years. Will our investments sustain us for the years to come? How do we best manage our retirement funds? Most of the money they will retire with is in the equity of their house. Getting the equity that has built up in your house out, finding somewhere to live, and still being able to put a significant chunk in the bank to last you for the next stage of your life is the major challenge. A tough one at that, as people are now retiring between age 50 and 65, and living in the retirement stage of their life for 25-30 years. It takes a lot of funds to be able to support you during those years. Plus you have all the time now since your retired, to do all the things you wanted to, so spending money seems to be an easy thing to do.
To make this process a successful one for you, the positives and benefits need to be your focus. You need to think about freeing yourself from clutter, freeing yourself from the burden of traditional home ownership and the chores and maintenance that come along with it. Giving you the opportunity, the time, and the money to do the things you have always wanted to do.

There are choices for you, and by setting goals, and getting on the path to achieving these goals is the first step. Some may think a nice little bungalow with minimal stairs is right for them. Others want maintenance free living in a condo or retirement community, and others are even choosing to pool their money with the children (now young adults) and building or buying a home that suits both families with a separate living area or nanny type suite. Whatever your retirement or downsizing goal is, take the first step. Write it down. Then work backwards step by step; forming your plan of action.

This plan of action may include a few loads to the dump, a garage sale, donating some items to the goodwill or other family members. Seeing your financial advisor and discussing your retirement plan and how you will access funds. Meet with a real estate agent to discuss the value of your home, and the best steps to take to prepare the home for sale. Another popular step is meeting with a Seniors Move Management Company to provide assistance in all these areas and even help pack, unpack, and setup in the new home.

While it does seem like a challenging path, it is one comes with many benefits if taken. Choose your final goal, make your plan, meet with your advisors, and take the necessary steps to help you reach that goal. In the words of Nelson Mandela, “It always seems impossible until it’s done.” Take the steps to achieving your goals.