Finance – Interest Rates

With a Recession coming and the crises in  the Stock/Credit markets, some buyer’s are finding out that the rates promised but not locked in have suddenly risen.

If this has happened to you you may wish to speak with the competition and see if there is a better rate to be had. It is not known to all but Banks / Finance companies actually compete for your business and offer varying rates as the lending criteria between these companies is of course different. 

You may indeed be able to find a better rate for yourself its a simple as entering basic info see the link below for Canadian and American mortage rate comparisons.

“For assistance with your realty needs Email me today Robert-Paterson@ColdwellBanker.ca“

Source….. Rob Paterson

Real Estate – There a New Season

Wow with fall fast becoming winter climate change is bringing us a new season. I am talking about the realty climate now and the new season is “Reduced / New Price” the orange and black affixed notice on for sale signs are all over the neighborhood.

With record prices being sought for homes now and the level of affordability at the lowest in years houses are sitting on the market for longer periods and receiving fewer and lower offers if any at all. The economy is now a headline story  with layoffs and bankruptcies happening all around.

 If you have a secure income believe it or not now is your opportunity to enter and invest in this declining market if you wait for the market to rebound you will miss the opportunity presented by this correction. With Investment property and Multi Million dollars homes now reduced and residential properties starting to decline there are deals to be had that were not there even 6mos ago….

If you are interested in recieving Reduced / New Price listings contact me today:

Robert-Paterson@ColdwellBanker.ca

Source…. Rob Paterson            

Home Maintenance – How is your Furnace running ?

Its that time of year again, yes time to turn the thermostat up and heat the house. Did you know that over 1 million furnaces break down each year. To avoid furnace disruptions you may wish to turn up the thermostat prior to the cold period when you want warmth. This little exercise can save you dollars in more than one way as we all know during peak season the furnace repair guy can cost a premium.

To ensure your furnace is ready to perform as you expect In the late summer check your furnace and filtering systems. Change and clean the filters as required by the manufacturer depending on the filter you may have to clean it every 30 days this is important so be sure to check it out.

A typical 20 yr old furnace will run at 60% efficiency while a new high efficiency furnance will run at 90% efficiency. Replacing the old furnace could save you 40% as this amount is wasted energy flowing up the chimney compared to the 10% waste from a new energy efficient model.

If you are in the market to replace or have replaced old reliable you may qualify for goverment rebates see the Energy Audit link

Source….. Rob Paterson

Ask The Agent – Real Estate Markets

The more things change the more they remain the same

Every market has a cycle there is the up and the down. Our recent market lasted an unprecedented 15yrs all up no down. Now that the correction has began depending on your local market conditions we can expect to see price declines of considerable amount in some cases compared to the market highs. Will we see a crash i do not think so but a correction is needed and now is the time.

Over the next few years there will be more people losing there homes than before there will also be a similar amount of people who have been waiting years to leave the rental market entering into this new housing market.

Remember a correction in housing prices is a cyclical occurrence this has happened in the past an no doubt will happen again in the future. The long term outlook for real estate will be up if demand remains strong and supply tightens. Alot of the cheap available land for development is gone and whats left is coming under more government regulation this should bode well for future rise in prices or a more stable market.

If you are selling your home in this market (buyers) do not be offended if your home sits on the market for a longer duration than expected. You may also receive offers that are lower than you expect remember in a buyers market where listings outnumber buyers and there is more competition for your home you will encounter these issues. If you really need to sell your home put it on the market over the winter months when there is less competition and these issues may be avoided….

Source…. Rob Paterson   

 

 

Ask The Agent – Open Houses Should I ?

Exposure is the best way to have your property noticed when selling. There are different types of exposure Open Houses are one. 

An Open House can work but it will rarely attract the buyer(s) who would actually be able to afford your home. People frequent Open Houses to see the inside of the home quite often to view the decor to get ideas on how to decorate there own home. Neighbours will check out the open house to see if it is really worth the listed amount in comparison to there home.

Open Houses do have a function though in a Sellers Market you can strategically use this method to obtain multiple offers on your home. It’s as simple as having your property listed  on a Monday slightly below market value and holding the Open House on the Saturday and entertain the Hopefully multiple offers on the following Monday. This can possibly bid up the price of the home when played properly.

Source….. Rob Paterson

Green – WiFi Thermostats

As technology changes we hope there will be real tangable benefits for us. Here is a product i found on the internet. It is new to the market and may make a difference to the heating costs you incur this winter.

With WiFi technology you can now control your thermostat from the coffee shop or office. This could come in handy. See the link there may be use for this product the future may be greener after all…

Source… Rob 

Affordability How Much is Too Much

 

In Canada with various programs such as Zero and Five percent down mortgages along with historically low interest rates housing was made more affordable across the country during the roaring nineties and early part of the Millennium than anytime since the early 1960’s.

The economy as a whole benefited with full employment in the construction industry, Low interest rates Mortgage business was booming and home-owner’s flush with cash from equity loans were spending. Our economy was truly riding on the real estate market with house price increases depending on where you resided 8-15% year over year the only downside was the loss of farmland or was it.

So great was this boom ordinary people made substantial income by buying and selling there home. These homeowners sort of speak the better term Investors would simply move in leave there possessions packed in boxes in the garage and sell after 1yr by this time the home had appreciated and of course it did, great wasnt it. This process would be repeated time and time again for hundreds possibly thousands of people across the country.

Wow what a story and like all good stories they come to an end. Some think this is the end of the Boom well they are wrong the end began some two years ago and this is really the beginning of a correction where prices will become more affordable to what the average person can handle.

There is one part of the story no-one mentions and that is during all the run-up in prices while everyone was enjoying the increase in there real estate holdings the average wage did not keep pace with the wild increase in real estate values. The end result is average home prices are now way out of wack compared to what people can afford instead of the 30% you may have paid for your housing costs at the start of the boom that percentage is now more like 70% .  

With affordability now at its lowest levels in a decade there was bound to be a correction. In Canada like all western countries we have enjoyed this boom with multiple credit cards, equity loans, leased vehicles 2nd mortgages the party has been great hasnt it. 

Now its time to pay up, throw some water on your face. Our problems will not be subprime unlike the United States our financial sector Bank’s and Insurance companies alike are sound due to Government regulation. There is one looming problem though and its interest rates if interest rates go up and your mortgage comes due this could be your subprime as you may be put in the awkward position of default.

My advice to you If your mortgage is coming due get in a couple of years get rid of the credit cards downsize to one lease and pay down that bad consumer debt. This could mean the difference between keeping your house and default.

Affordability how much is to much……

Source… Rob Paterson