Quotations by Dan S. Barnabic

Steer clear of condo complexes that offer units at bargain prices with excessively high monthly maintenance fees. [2013] - Dan S. Barnabic

Don't pay too much attention to real estate brokers' forecasts - or, for that matter, to banks' analyses of the markets - because these prophecies are mostly profit-driven. Instead, pay close attention to official government findings regarding the stability of interest rates for the immediate future and beyond, the surplus of unsold real estate, and the state of the overall economy. Reports of these findings are published in newspapers, broadcast on TV, and posted on the Internet. [2013] - Dan S. Barnabic

Regardless of market conditions,the right time to buy is: 1) When you can buy your condo unit at a price that requires no more than one-third of your annual income to cover mortgage payments, maintenance fees, and realty taxes; 2) When you're able to obtain a mortgage at a very favourable interest rate and lock in for many years to recession-proof yourself from exposure to market swings. [2013] - Dan S. Barnabic

Notwithstanding market conditions, always start with a lower offer, say, 75 percent of the asking price. If the broker doesn't want to present your low offer, find another one who will. If there are multiple offers for the condo unit you're interested in, don't let your broker get you into a bidding war. Walk away and consider another unit. [2013] - Dan S. Barnabic

A solid down payment of at least 25 percent will act as a buffer for you at mortgage-renewal time should interest rates increase or the value of your unit decrease because of a market slowdown. [2013] - Dan S. Barnabic

Whatever the size of your down payment, it should never be borrowed. It should come from your own savings, accumulated over time. [2013] - Dan S. Barnabic

There will always be great opportunities to buy a condo unit. The longer you wait, the better your choice of what to buy. [2013] - Dan S. Barnabic

Major oversupply and the saturation of real estate products in the U.S. precipitated a major real estate crash by 2006. Canada started to feel the effects in 2011, and by October 2012 developers were seeing a considerable downturn in sales. [2013] - Dan S. Barnabic

Many financial institutions judge a condo complex to be risky if more than 25% percent of the units are rented out and therefore refuse financing to new buyers. Ascertain how many condo units are being rented out. You can do so by visiting the complex itself and talking to the occupants and owners of condos in the complex. If 25 percent or more of its units are rented, stay clear of the complex. It very well may have a dark future. The exception to this rule may be condo complexes located in tourist resort areas with high rental demands. [2013] - Dan S. Barnabic

Whenever possible, make an offer to buy your unit with the closing day set for 90 days and with at least 60 days of conditional or contingency clauses to obtain a satisfactory home inspection report, conduct legal searches, and perform other due-diligence checks. [2013] - Dan S. Barnabic

Thoroughly examine the status certificate of the unit you are considering and the financial yearly reports of the complex. Find out any expected or likely future increases in maintenance fees. [2013] - Dan S. Barnabic

Bachelor and junior bedroom units are harder to sell than one-bedroom units, units with a den, or two-bedroom units. Even single people or childless couples tend to prefer two-bedroom condos because the second bedroom can be used as an office or for guests. [2013] - Dan S. Barnabic

Units located in the vicinity of power lines and busy roadways or railway tracks are less desirable and therefore more difficult to resell. The same is true of units that were bought without a parking space or without an option to by one. Units with nine-foot ceilings are much more attractive than ones with lower ceilings. The view from the unit is equally important. A unit facing another building across the street will fetch a lower price than one with a clear view of open spaces. [2013] - Dan S. Barnabic

Closing costs may include the mortgage arranging fees, insurance, home inspection fees, legal costs and disbursements, property transfer tax, land transfer tax, life insurance, and property and fire insurance. Those closing costs can range anywhere from 1.5 to 3.5 percent of the total cost of your property. [2013] - Dan S. Barnabic

The only way to maintain overpriced, expensive homes and make them look affordable is to have them financed at very low interest rates. [2013] - Dan S. Barnabic

Renting seems to be more advantageous for people who do not plan to stay in the same premises for more than four to five years, and buying is more advantageous for those who decide to stay for a longer period. [2013] - Dan S. Barnabic

The most opportune and favourable time to buy is during a so-called buyer's market, when many real estate products, including condominiums, are offered at cheaper prices. Buying when the market is high and "going with the flow," hoping that prices will continue to rise, may not be such a good idea. An oversupplied market is a buyer's market. An undersupplied market is a seller's market. [2013] - Dan S. Barnabic

It is important to note that it is not disadvantageous to rent rather than buy, especially during times of inflated and unaffordable real estate prices. [2013] - Dan S. Barnabic

By the time a condominium complex is 40 years old, it will have gone through several partial or complete retrofits, likely in stages. [2013] - Dan S. Barnabic

Generally speaking, when more than 10 percent of the unit owners become insolvent, unable to carry monthly mortgage payments, and their mortgage holders sell such units at fair sale prices, the overall value of all the units in the complex diminishes. [2013] - Dan S. Barnabic