Understanding Development Charges

maddy248563 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 …

Home Buying Guide – The Complete Reference

maddy248563 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 …

Investment Property – Understanding Tax Deductions

maddy248563 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

maddy248563 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

maddy248563 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

maddy248563 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 …

Pillars of Buying

Four Pillars of Home Buying

maddy248563 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, …

Leverage In Home Ownership

maddy248563 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

maddy248563 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 …

Understanding Mortgage Qualification

Understanding Mortgage Qualification

maddy248563 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

maddy248563 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

maddy248563 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 …

How Income Properties Work

maddy248563 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 …

Understanding Your Closing Costs

maddy248563 Buying

In this article we will try to understand the Closing Costs associated with a Real Estate Transaction, often buyers especially the first time home buyers have questions around how these work and what they can put aside to ensure they are prepared. The approach we will follow here is to break-up the Closing Costs into various components and explain them one-by-one, at the end, we will take an example calculation to give us a fair idea. Let’s start with our first and the biggest component of closing cost: LTT Land Transfer Taxes – This is a provincial tax which government levies whenever …

Home Buyers Plan – RRSP Withdrawal Benefit for First Time Home Buyers

maddy248563 Buying

In this write up we will try to get clarity around one excellent instrument for First Time Home Buyers given by Canada Revenue Agency. And this often gets ignored due to poor planning around first home purchase. If you are a first time home buyer government provides RRSP withdrawal plan (Home Buyers Plan – HBP), this withdrawal can be used to contribute towards your down payment for your home. Main Prerequisite: • You must be a Canadian Resident at the time of withdrawal • The money should have been deposited in the RRSP at least 89 days before withdrawal under …

Mechanics of Renting Vs Buying

maddy248563 Buying

With this article we will try to be as objective as possible to answer the question by discussing all arguments on buying vs renting, and weigh the options for their merits. There is no straight answer to this, however, based on the below it would make easier for you to consider your personal situation and see what works best for you. Let’s dive straight in.. Good About ‘Renting’ –  • Only one Amount – There are no repairs or maintenance costs, you have only the monthly rent to worry about. • Flexibility of Moving – If your work involves frequent …

Understanding Your Property Taxes

maddy248563 Buying

When dealing with Real Estate Residential the question which frequently comes across is How are Property Taxes are calculated for a home. In this article I will try to address that.   There are two prime factors which are involved in calculation of property tax, before we go into specifics of each one of these: Phased-In Current Value Assessment (CVA) Total Tax Rate [further broken down into City + Province (Education) + Regional] Property Tax = Phased-In Value x Total Tax Rate Municipal Property Assessment Corporation (MPAC) is a not-for-profit organization that was created by Province of Ontario in 1997. This organization’s job …