As a fairly general rule, homes appreciate about 4-5% a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
5% may not seem like that much at first but you could easily earn over the same return with a very safe investment in treasury bills or bonds (stocks).
For Example...
Presumably, if you bought a $200,000 house, you did not pay cash for the home, you obtained a mortgage. Suppose you saved and put as much as 20% down – that would be an investment of $40,000.
At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the 1st year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment" would be a whopping 25%.
Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.
Your rate of return when buying a home is higher than most any other investment you could make.
**It is such a great way to get ahead in life and plan further into the future. It doesn't matter on your income, high or low, finding out if you qualify for a mortgage is free.**
Contact me for further details. Any consultation/discussion is free of charge
Whether you are looking to buy somewhere in Canada, The United States, Mexico, Costa Rica, or another Country, I can assist with this process. I work with a group of dedicated professionals who have chosen to specialize in the challenge of moving lives and integrating them seamlessly into new surroundings.
We’re More Than Realtor®s, We’re Friends Many of our clients have bought or sold homes in the past, but few are prepared for the exceptional level of customer service that their relocation specialist provides. We work closer to our clients for longer periods of time. We’re always there to provide needed information and an objective opinion and as a result, many clients become genuinely close friends. We have associates working all over the world who work together to help people find the perfect home. You don't have to do this alone, you don't have to hope that the Realtor you locate on your own is educated, professional and has the time for your needs. I work with one of the most advanced Relocation Outfits in the world. Don't hesitate to ask about our services.
You pay us nothing to assist with your buying process!!
Edmonton, July 5, 2011:Economic and other external indicators point to a strengthening of the local real estate market according to the REALTORS® Association of Edmonton.
Statistics Canada reported that Alberta boasted the highest spike in population in the first quarter with a 0.4% increase.
The Conference Board of Canada predicts that housing prices in Edmonton will increase from five to seven percentin the short term although local prices are currently down when compared to last year.
Although the Bank of Canada seems reluctant to raise interest rates because of the negative impact on exports, CMHC reports that Canadians are budgeting for an interest rate hike.
While housing prices nationally are up by 8.6% (May figures) Edmonton prices are tracking predictably in a stable market.
CIBC is of the opinion that Alberta home prices are over-valued by 17% yet RBC names Edmonton amongst the most affordable major metro markets in Canada.
A report by Peters and Co. forecast that $180 billion will be spent on new oilsands projects in the next decade with current oilsands operations and maintenance adding another $30 billion a year.
How Realtors Help..... Call Amber 780-906-0693 or email amber.prue@gmx.com
Ahh, the big city. Sure the prices are generally higher, but you can walk to a restaurant, maybe even to work. You’ll also have the widest range of housing options.
Suburban
Newer schools, newer shopping centres, bigger yards, bigger homes, no wonder so many people love the suburbs.
Smaller Cities and Towns
There are many wonderful self-contained communities and compared to the big city, you can save a bundle.
Rural
If you like the idea of owning land how about a few acres all to yourself? Seclusion is not for everybody, but for some, it’s heaven.
STEP 2:
Next, decide what type of home you want...
Single-family detached
As the name implies, the home is not attached to the home next door. Styles range from a single-story suburban bungalow, to a three-story Victorian.
Semi-detached or linked
Two houses that share a common wall. Usually less money than a fully detached home.
Duplex
A two-family home.
Town house
Also known as terrace or row housing. Several homes with a common style and joined in a row. They usually share walls on both sides.
Condo
Some people can’t wait to start gardening on Sunday morning. If you are not one of those people, it’s just an elevator ride away. Condos also make a great first home purchase because they’re often thousands of dollars less than a detached home.
How Condos are owned
You’ll own 100% of your unit and a share of the common areas. Common areas include the necessary plumbing, electrical systems, hallways and elevators. They may also include lots of fun stuff like a private gym or party room.
Condo fees - Membership has its privileges and it costs
On top of your mortgage and property taxes, condo owners also pay a monthly fee to operate and maintain the common areas. Depending on the condo, fitness rooms, pools & games rooms can be included.
STEP 3:
New or Resale?
Resale - Previously loved
Nothing can match the charm and character of an older home. As a bonus, the previous owner may have made improvements and upgrades and you get them with the house, usually for less than the cost of putting them in yourself. However, some may have a little too much ‘character’ like a leaky roof. Know what you’re getting into. You should always work with a knowledgeable REALTOR® and as we cover in Step 10 never buy a resale home without a Home Inspection.
Ah, that new house smell
You will be the very first person to live in your new home. In fact, your new home may be so new, that it’s not even built yet. Before you commit to anything, carefully examine the property, the blueprints and visit other homes built by the same company. Have your REALTOR® and lawyer review everything before you sign. While your home is being built, stay on top of the process and remember, you have a legal right to make a full inspection of the house before you accept it as complete.
STEP 4:
You know what you want, but let's talk needs
Are you getting out of a two-bedroom apartment because it’s too small? Then your new home should have at least three bedrooms and probably a second bathroom. REALTORS® call these must-have features needs. Features you’d like to have are called wants. Your strategy should be to find a home within your price range that fulfills all or most of your needs and as many of your wants as possible
Call or Email me for details on buying a property and the steps you take. 780-906-0693
You’re trusting a REALTOR® with your most valuable possession, your home. REALTORS® take this responsibility very seriously. Here’s what we promise you.
Your REALTOR® is highly trained
REALTOR® training is so rigorous that candidates often fail the pre-registration courses. Those who do pass must master a long, diverse list of subjects ranging from housing construction to family law.
Your REALTOR® is continuously trained
We keep pace with the times. All Licensed REALTORS® must take continuing education courses to make sure their knowledge on subjects like legal issues and technology are up to date.
Your REALTOR® does everything by the book
A licensed REALTOR® must be registered under provincial laws that govern exactly how real estate can and cannot be traded. These regulations are your legal guarantee of professional behavior.
Your REALTOR® is an ethical businessperson
REALTORS® must adhere to the extensive Code of Ethics of the Canadian Real Estate Association. Several provinces have additional Codes of Ethics governing the behaviour of real estate professionals. Your interests must always be put first.
Your dealings with a REALTOR® are insured
For your peace of mind, provincial regulators sponsor consumer protection programs that may require, for instance, that REALTORS® maintain Errors and Omissions Insurance. Often deposits consumers make in real estate transactions are also insured under these programs.
Your REALTOR® has access to the Multiple Listing Service® and Real Estate Weekly
TheMLS® Systemis the single most powerful tool for buying and selling a home. It is a complex information sharing and cooperative marketing network created by REALTORS® to help consumers buy and sell homes. TheReal Estate Weekly is an Association-owned newspapers and as such, only REALTORS® have access to this medium, which distributes over 60,000 papers per week. The paper is distributed throughout Edmonton and surrounding areas as far north as Westlock, south to Wetaskiwin, east to Ardrossan and west to Alberta Beach and now includes Strathcona and Sturgeon counties.
The fact is, most people who try to sell their own home end up using a REALTOR® in the end anyway. Before anybody decides to fly solo through this complex, time consuming and financially perilous process, they should consider these questions.
Will you really “save” the real estate commission?
When buyers see a home for sale ‘by the owner,’ they see a bargain. They imagine the REALTORS® fee going into their pocket, not yours.
Are you familiar with real estate law?
Complicated and ever changing, real estate law governs nearly every phase of selling your home. One misstep and an entire deal can fall through, or worse, a lawsuit can come your way.
How many potential buyers will you reach?
Selling a home takes more than just hanging a “For Sale” sign. How will you promote your home? Will you write your own ads? How will you use the Internet, knowing that you’ll have no access to REALTOR.ca or the Multiple Listing Service®?
Do you have the time?
Promoting a home is a full time job and you may already have one. Will you be able to take calls at any time? How about screening the callers to figure out if they’re qualified to buy your home? Not everybody who calls is even suitable to walk through your home, but how do you tell?
Do you know the market well enough to get the most for your home?
Lacking experience, the average do-it-yourselfer is merely guessing at their listing price. Often they set the price too low and miss out on thousands of dollars, or they price their home too high and drive away willing buyers.
What about your selling skills?
If the personalities of prospective buyers rub you the wrong way, can you still deal with them effectively? What about your own defensiveness when you hear negative comments about your home? Best to keep it at arms length through a REALTOR®.
Do you have the negotiation skills to keep a deal on track?
When an offer comes in, emotions can run high with so much money on the line. This is why direct seller-to-buyer deals often end in disaster. REALTORS® keep it professional and are indispensable when it comes to bargaining with buyers.
Contact me for a free consultation 780-906-0693 or email amber.prue@gmx.com
Letter of employment confirmation - Ask your employer for a letter that confirms your position, your pay and how many years you’ve been with the company.
List your assets - Your car, stocks, bonds, GICs, bank account total. Show which assets will be used for your down payment.
List your liabilities - Car payments, student loans, credit card debt. List all the money you owe and note how you’re paying it off.
Social Insurance Number
Mortgage Brokers/Specialists don't get paid unless you obtain a mortgage, so they always look for the best interest rate. Usually the lending institution pays them, not you. Also, nowadays, most everything can be done via online and emails which saves you time.
Call or message me for information on how to contact a Mortgage Broker/Specialist.
Markets go up, markets go down and even the smartest experts can’t accurately predict when a market will peak or bottom out. The good news is if you’re buying a home as a long-term investment (and for long-term enjoyment), you’re protected from short-term changes in the market. Over time, real estate has almost always increased in value.
All you have to do is pick a home that meets the needs of you and your family. Then you’ll enjoy living in your investment as it grows in value. A home is one of the best financial decisions you can make and it’s tough to live in a stock portfolio!
Many people are able to time their sale and their purchase so they happen on the same “closing date.” BUYERS can make their offer “conditional’ on the sale of their existing home, to make sure they’re not left paying for the upkeep of two homes. This means if your house does not sell, you do not have to purchase. When selling, you can also try to extend the “closing period” to give yourself more time to find your next home. REALTORS® are very skilled at this sort of negotiation and can make your transitional life a lot easier.
