Home Buying Guide – The Complete Reference

Mudit Buying

This article is prepared to inform a first time home buyer on the most important questions which need to be acknowledged and answered to make a good decision and be successful in the home buying. What it would cost to buy a home? Let’s here discuss on various items that you would need to arrange as a home buyer to coordinate your home purchase. Deposit – This is the amount that represents your good faith. When you like a property and offer is negotiated for amount, closing date and conditions, both you and seller agree on the amount; the deposit …

Pillars of Buying

Four Pillars of Home Buying

Mudit Buying

In this write-up, we will review what are the four most important factors to consider when buying a home for ownership or as an investment. Location – The location of a home plays a very important role in the future growth and Return on Investment of a property. How is the average family income of the neighborhood, what is the ownership/rental composition of houses in the neighborhood, how are the commute and transit needs meeting for going to downtown core from the neighborhood, how are the schools around the area, what is the composition of property types in the neighborhood, …

Busting Real Estate Myths #2 – Reaching To Listing Agent Directly Saves Money

Mudit Buying

In dealing with Real Estate, one of the most significant Myths people have is that in reaching out directly to the Listing Agent, they will get a bargain or discount in the price instead of going with their own buying broker. Nothing could be farther from the truth, and let’s discuss in detail why it is paramount for us as a Buyer to have our own representation. Here is the rationale why when we shop for a home, we ought to have our independent representation: 1) Negotiation Edge – The primary element in a successful negotiation is keeping your motivation …

Busting Real Estate Myths #1 – Open House Helps Sell my Home

Mudit Selling

This is a perennial and evergreen question that comes to me often working in real estate with Sellers. In this article, we will explore the truth behind this and rest the answer to one of the biggest myths that Open House helps sell a home. Let’s take a deep dive into details and point out why this is a myth and why Open Houses very rarely sell a home. 1) Prospects Are Not Qualified – The people who are dropping by in your Open House are not qualified; these are often people driving around the neighborhood and stopping to checkout …

Understanding Home Equity Line of Credit

Mudit Buying

A secured line of credit is essentially a low-interest loan that a financial institution offers you against your investments as collateral, generally your own Real Estate property or Guaranteed Investment certificates, etc. Since your owned asset backs the line of credit, it has a relatively lower interest rate and higher credit limit. The lender has a safety net that they can acquire and freeze the asset if the borrower does not pay the debt on agreed terms. They can go for power of sale of the property to recover their funds. The terms are generally better on Secured lines of …

Navigating Multiple Offers in Real Estate

Mudit Buying

In heated Real Estate Markets where inventory is restricted and demand in on the higher side, we observe Multiple Offer Situations. There might be a scenario where multiple parties liked the property the day you saw, and more than one of them would like to put an offer for purchase. This is a typical Multiple Offer situation where more than one offers are competing. The first thing I would like to point out to you about the Resale Home Market and its most significant advantage is that it has an ‘Unlimited Inventory.’ Every week new homes will keep coming on …

First Time Home Buyer Incentive

Mudit Buying

There has been a lot of articles and gray areas around the provision of new First Time Home Buyer Incentive (FTHBI), which is a federal program and has been launched in Canada on Sep 2nd, 2019. Let’s review when and where this program applies and get a real understanding of this first time home buyer incentive. Also, towards the end, we will consider whether it is a good option to exercise. The first thing we need to understand that this is a kind of loan from the government; this loan needs to be repaid back in 25 years or when …

Understanding Development Charges

Mudit Buying

When you are looking to buy a high rise condo as a pre-construction project or by way of an assignment sale which is prevalent these days, we hear a term call Development Charges. This article is for bringing clarity and remove confusion around development charges; these are the fees collected by the local municipality from the developers at the time when they apply for a building permit, and it is issued. These charges are meant to be utilized to ensure that there are enough civic amenities like parks, street lights, roads, transit infrastructure, sewer pipes setup, community centers, emergency and …

Investment Property – Understanding Tax Deductions

Mudit Buying

When you decide to buy an investment property, we need to understand what and how are the tax implications.  In this writeup, we will try to address and understand all these and more when it comes to buying a Real Estate Rental Property. Net Income Calculation: When you put a property on rent, the rent received from the tenants becomes our Gross Income, it would include all the rents received for the property. If the property has a paid shared laundry facility, that revenue from the laundry machines will be part of Gross Income. For tax payments, you take your …

How Realtors Help

Mudit Buying

A Realtor works for your best interest irrespective of whether you are buying or selling, they ensure to apply their skills and knowledge to get the maximum benefit to you in the transaction and making the whole process pleasant. In Buying they will help you to determine what you can afford and whether it is the right time to buy; what neighborhoods are best based on your budget and family lifestyle. What could be the right property type based on your family needs, budget, asset growth? How you can balance your ‘needs’ and ‘wants’ to have a smooth buying experience. …

First Time Homeowners Reference

Mudit Buying

In this article, we will try to explore the most important things which new first time homeowners must be aware of. If you are first time home buyer, these pointers will help you to make a smooth and worry-free transition into your new residence. 1) Utilize the Canada Post Service to order a new community mailbox key by creating a Service Ticket online on Canada Post website. This will ensure your mails are secure. 2) It is advisable to get the duct cleaning done to ensure the removal of dust/contaminants and any unpleasant odors as you take over your new …

Condos vs Freehold Ownership – Explained

Mudit Buying

This article will address the two major categories of home ownership – Condominium and Freehold. The aim is to dig deep into these two ownership types and describe the differences and what each one has to offer to make an educated buying decision. Condominium Home A condo property can be a high rise multi-level condo, a low-rise condo, 2-story or 3-story Townhouse condo, Semi-Detached Condo, or Detached condo complex. In the low-rise condo setup, you do not own the land on which the unit is built and any common areas outside your unit. Here the condo owners form a Condo …

Leverage In Home Ownership

Mudit Buying

What does Leverage mean in Real Estate Investments? In this article, I will try to highlight the two most important concepts which make Real Estate investments stand out: Leverage and Capital Gains Exemption. Home ownership is often referred to as opening up a mandatory saving bank account, with every mortgage payment you are having your equity increased in the property. Furthermore, the asset is an appreciating one in the long run and that factor adds to the value proposition. Aside from being an appreciating asset, a resting place which we call as our home brings the quality of life, stability, …

Home Inspection 101

Mudit Buying

Importance of Home Inspection in the process of buying/selling a home cannot be undermined. A Home Inspector will ensure to verify that the systems and the foundations of the home are free from critical damages, that may increase your cost of ownership and maintenance in the future. As a buyer when we put an offer for purchasing a property we can include an inspection clause along with other clauses such as finance. This would allow us to get the inspection done by a licensed inspector and walk out of the transaction if something substantial is uncovered. Also, at times the …

Listing, The Right Way

Mudit Selling

Selling a home is a project which if planned and executed right can reap the due benefits by allowing us to sell the property in less amount of time and at a reasonable price. The first and most crucial step in selling a property is its evaluation and agreeing on the right Pricing which is fair in the current market and justifies the property. This needs to be arrived at objectively, and without emotions, a fair comparative analysis of comparable recent sales in your area should be done by a Realty professional and after meticulously accounting for adjustments and features …

Understanding Mortgage Qualification

Understanding Mortgage Qualification

Mudit Buying

When we decide to own a home or purchase a property, the first step is to get the qualification done from a financial institution. In this article, we will determine what happens in the background and how a lender determines our qualification. This will help you to better understand the process and be well prepared for the eligibility even before reaching out to the lender. Lenders across rely on two measures of ability for a borrower to pay back the mortgage payments, these are GDS (Gross Debt Service) and TDS (Total Debt Service), let’s understand these. Gross Debt Service Ratio …

Understanding – Ontario Land Transfer Taxes

Mudit Buying

When a property exchanges hands in Ontario, Land Transfer Tax is paid to the government at the time to title registration or transfer of deed in the new buyer’s name. In this write-up, we will explore and try to make it clear for buyers how that calculation is done with an example. Below are the rate slabs used in the calculation of Land Transfer Tax in Ontario: Let’s take a quick example, applying our formula for arriving at Land Transfer Tax, assuming we are purchasing a property for $578,000. Land Transfer Tax = ($578,000 x 0.02) – $3,525 = $11,560 …

BuySellFirst

Should I Buy First or Sell First – Simplified

Mudit Buying, Selling

Working in Real Estate industry this scenario comes more often for move-up and move-over buyers, the dilemma whether to sell or buy first. In this article, I will try to explain the possible solutions and the ideal way to approach this. We will also discuss various markets and how this should be tackled. In the perfect scenario, one should always try to have the buy and sell transactions inked in close proximity, this will allow the closing dates to not be far apart for the actual moves. To ensure this happens when you are preparing your home for putting on …

Home Pricing for Sellers – Simplified

Mudit Selling

For the Sellers, there is a checklist which one needs to take care to put the home on the market, but nothing is more critical than the pricing strategy when you decide to sell a home. In this article, we will try to explore why the pricing is so important and discuss some pricing strategies one can adopt for sale. The importance of pricing it right the first time is critical because the opening 8-10 days there is maximum exposure to the property when placed on listing service like MLS®. The realtors across the board are actively looking for new …

How Income Properties Work

Mudit Buying

In this write-up, I will try to go through the basics of Revenue properties and what we should keep in mind when trying to make a decision and before signing on the dotted line. The three principal benefits of Realty Investments are for generation of Capital growth as the value of assets increases over time, Rental income to offset any costs associated with the property and Tax deduction benefits which CRA allows for rental properties. The rental revenue beats any typical equity dividend benefits when you invest in stocks. Real Estate investments are your hedge against economic inflation as their growth tend …