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The TopThree Myths About Buying Properties

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Buying property is a rather big deal, and for most of us it’s an incredibly scary process that involves spending a lot more money than we are normally used to parting with in one go. For this reason then, we will usually try to collect as much information as we possibly can prior to going ahead. Knowledge is power, and the more we know about how to deal with mortgages and choose the right properties, the better chance we’ll have of making the best decision, getting a good investment and being happy in our new home.

Only some of the information out there is wrong, and there are many commonly held misconceptions when it comes to buying property. Read on to discover some of the common real estate myths so that you can avoid letting them influence you in the wrong way.

You Need at Least 20%

There’s a lot of doom and gloom being spread when it comes to the property market. Generally the economic troubles we’ve seen in the last few years have made it more difficult for many of us to get the properties we want, and some young people have pretty much written off any chance of ever getting on the property ladder as a result.

Actually though things aren’t all that bad. Governments and banks around the world recognise this difficulty and they want to do what they can to help you buy property despite the obstacles. That’s why there are so many different ‘schemes’ available to help first time buyers such as ‘rent to buy’ and ‘1% mortgages’. Don’t assume you can’t afford a property – because you probably can.

Paying Off Your Mortgage is Much Cheaper Than Renting

On the other hand though, don’t get too carried away. Many people will tell you that everyone should buy as it’s so much ‘cheaper’ than renting. In some ways that’s true, but what you have to remember is that there are many hidden costs when you buy real estate. For instance you’ll need to pay for any repairs to your home yourself, and you’ll also be shelling out for interest and for stamp duty etc on top of the mortgage repayments themselves.

It’s Best to Put Down a Massive Deposit

If you have lots of cash, then it makes sense to put down a huge deposit right? That way you can ask for a smaller loan, pay it off more quickly, and pay less interest over the years.

It sounds logical, but in fact it doesn’t always work out that way. The problem you see, is that when you put down a lot of money on your real estate, you actually cost the banks because they won’t be making as much money off of you. As a result they can end up charging you greater interest on your smaller loan in order to ensure they’re still making as much money as possible and that means the difference ends up being quite negligible. You may have been better off just keeping the money in your account to help with future cash flow!

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Today’s feature writer, Jim Carter, is a part of the team at Mark Richards Real Estate, a team of property consultants based in Toronto. He is an earnest employee and he enjoys swimming and surfing when he is not busy with work.

So many houses for sale in my neighborhood!

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It seems that the real estate market here in Toronto is booming. I keep hearing on the news all the doom and gloom predictions about how the real estate market is set to crash here in Canada, but it seems that each year the price of houses just goes up higher and higher and the demand for them is not going down. Not at all.

I mean .. usually by this time of year – almost mid- December, house sales in the city are down. I’m not in real estate but just going by what I see on the news and what I see either driving around the city or walking around the neighborhood most years it seems house and condo sales do best from Spring through to late summer. I imagine it was the same this year, but oddly enough this month I’m seeing more and more signs, even in my own neighborhood, for homes going up for sale and the houses are selling very quickly.

This seems odd for this time of year. I’m seeing signs from all the big popular companies like Royal Lepage, ReMax, Century21 and then a few I haven’t really heard of before like Levein Team real estate which must be smaller firms.

Just down the street from me there are three houses in a row up for sale and I’m sure they’ll all be sold within a week or two even though we’re in the midst of the holiday season!

Don’t you think this is strange?






New Neighbors soon! The house next door is SOLD

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It looks like we’ll have new neighbors soon. Much sooner than I thought we would.

The house next door … you know, the one that the home owners son has been renting out for the last year to a series of awful people? Yeah, that one … they put it up for sale about a three weeks ago and amazingly it’s been sold.

I personally thought the price they were asking was too high for the house. It was low for my area … about a hundred thousand dollars lower than what most houses in my area are selling for … but since the house hasn’t ever had any renovations done on it and I think it needs a new furnace, air conditioner and generally a lot of work the price, to me at least, was about 50,000 higher than I thought it should have been.

Of course I have no idea how much it actually sold for. Perhaps they accepted a bid that was a lot lower than the asking price.

I also don’t know who bought the house or when they’ll be moving in. There was a man at the house on Thursday that must have had serious interest in it as I believe he had an inspection done. They were at the house for about three hours … but when the house didn’t have a sold sign up by that evening or even the next day I thought that if he made a bid at all it wasn’t accepted. Who knows … maybe they went back and forth with bids all weekend until they finally came to a deal on Monday (when the sold sign went up).

I’m just hoping that whoever moves in 1. doesn’t turn around and rent the house out to bad people again and 2. turns out to be a decent neighbor. My definition of a decent neighbor is someone who will say hi or at least be polite when you see them outside their house (especially important since we’ll have to take turns using our shared tiny one car driveway) and who is fairly quite (since our houses are so very close together). I don’t think that’s too much to ask.

Ok, gotta go and find something to eat that won’t bother my stomach. Geez it’s like I took a handful of the best diet pills on the market! I’m starving yet don’t really feel like eating as I know I’ll be in pain after I eat – thanks to my Crohn’s disease that’s activated again. See the post below for more on that if you’re interested.

Do I Qualify For the First Time Home Buyer Tax Credit If I Buy a Mobile Home?

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The first time home buyer tax credit is made available after the present Obama administration took a big leap in reviving the declining market of housing realty. This credit is part of the stimulus package approved by the federal government to resuscitate the ailing US economy. Some of the home buyers can have the $7,500 credit available for them if they are qualified in the mentioned qualifications.

So if you’re looking for a mobile home for sale you can take advantage of the credit the federal government offers to would be home buyers like you. But you are required to be certain that you understand all the details of the credit before you apply for it.

First time home buyer tax credit is available only if you buy a mobile home as your principal residence. This means that your mobile home needs to be the home where you plan to reside nearly all of the time. This credit is also available to the principal purchase of a condo, town house houseboat or a separated home as long as it is your main residence. Accordingly, your mobile home must be in the US. Please keep in mind that it is not eligible if you buy your mobile home from your parents, or siblings.

Although mobile homes fall under the category of qualified homes for availing tax credit, there are other requirements you should take into consideration to avoid waste of your time and effort in applying the credit. These are the following qualifications needed for your application:

1. The tax credit is only available to first-time homebuyers. The rules provide that anyone will be a first-time buyer if he or she has not owned a principal residence for three after buying a house. If you owned a vacation house that is not your principal residence, you can apply for the credit. Married couples must fit to the definition. But the rules on married couples are vague because the rules did not provide if the situation occurs where only one is qualified and the other is not.

2. You must have a $75,000 modified gross income, or MAGI, on your federal tax return if you are married head of a household or single. If you are filing a joint tax return in conjunction with your wife, your MAGI must $150,000.

3. If you have more than $75,000 MAGI and if you’re single or married head of household, you may get a partial credit subject as long as it is below $95,000. The same applies for the second category, where your joint tax return indicates a MAGI of more than $150,000 but less than $170,000. MAGI beyond the marked limits will be not qualified for a tax credit.

4. You cannot apply for a first time home buyer credit if you bought your home before April 9 2008. 2009 home buyers are likely to have the tax credit.

To further your knowledge about the first time home buyer credit that is currently being offered by the federal government, you should visit the nearest authorities in your state. You could also learn information related to this in the net. You can benefit much from this opportunity, but you must seek advice and make plans to avoid credit problems in the future.

First Time Home Buyer Tax Credit if You Buy a Mobile Home

Sell Your Home Quickly with Useful Practical Tips

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These days, selling a home is almost like going to a job interview.  Selling a home involves presentation, which is one of the key factors that determine the outcome.  Although this may sound a bit weird to you, but presentation is a way of life in the world of real estate.  Buyers in today’s market look for good presentation – many basing their final decisions on it.

If the property you are selling comes with a garage, you’ll need to go through your garage before you sell your home. The garage is one room in your house that can pile junk without you noticing it happening.  If your garage is messy, you obviously want to clean it up.  Buyers look for homes that are in perfect condition, and anything less than perfect will look ugly in the eyes of the buyers.

Most if not all homes have some truly outstanding features inside.  You should always do your best to highlight these features instead of just hoping that the buyer understands what they are looking at.  Professional agents use proper lightning to highlight these features during an open house, use this technique also.  It does not hurt to talk about the feature slightly with your potential buyer.  Make sure that the best feature stands out by thoroughly cleaning and highlighting it.

When a potential buyer pulls up to your home, the first thing he will see is your lawn.  If your lawn is trimmed and well taken care of, he will get a good impression right off the bat.  In fact, if your lawn is a wreck, he may even pull away without looking back.  To give the best impression to the buyer, you can always plant flowers around the walkway and throughout the yard.  This entices the senses of your potential buyers even more.  And to help you understand the real market value of your home, you should consider using real estate tools like real estate appraisal software.  To help you understand your options better, a Real Estate Analysis software can help you, too.

Now that you’ve got your buyer’s attention with your well manicured lawn, don’t lose it.  Make sure that your front door is in excellent  shape.  A squeaking door is a turn-off right away – much like a date who doesn’t groom his or her hair.  You can add some indoor plants, paintings, or rugs to ensure that your buyer gets a good impression upon entering.  When the buyer walks through your home’s entry way, make sure that the view he or she takes in is nothing less of delightful.  That is to say a misplaced armoire or an unbalanced furniture should be corrected.  Your biggest goal when showing your home is to ensure that the buyer is pleased in whatever way you can.

Keep in mind that it may take some time to sell your home.  These days, homes can sit on the market for months at a time before they actually sell.  If you are having trouble selling your home, you can always reduce the price or simply go back to the basics. With patience and diligence, you will sell your home sooner than you think.

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