Real Estate Quotes

Thoroughly check the yearly financial report of the complex and the status certificate of the condo unit you with to purchase. They should contain: facts relating to financial and management stability of the complex; the most recent audited financial statements; a record of assessment; any pending or anticipated legal actions; anticipated common element repairs; the anticipated common loans; anticipated increases to reserve funds; anticipated structural or mechanical repairs; and municipal work orders. [2013] - Dan S. Barnabic

Check the present, previous, and anticipated future demographics of the area to make sure that you and your children do not end up the victims of crime.  [2013] - Dan S. Barnabic

Condominium units in the suburbs are usually less expensive. Provided that roadways to schools and downtown areas are accessible and public transit is available, there is nothing wrong with locating outside ritzy and expensive urban centres. [2013] - Dan S. Barnabic

The monthly fees can go up significantly if you're buying a newly built condo. It was very common to see maintenance fees rise by 40 to 50 percent in year two and another 20 to 30 percent in year three, after the complex had been registered. [2013] - Dan S. Barnabic

Realty, or property, taxes are not part of monthly maintenance fees but often are required to be paid on a monthly basis along with maintenance fees. Taxes vary from one municipality to another and are assessed based on the value, size, and location of the complex. Taxes fluctuate yearly, but, in general, they range from 0.5 to 2.6 percent of a unit's purchases price. [2013] - Dan S. Barnabic

If the market is depressed, mortgage holders, such as banks, seldom have the patience to await a market rebound. Most are not in the business of owning real estate. Their paramount goal is to sell defaulted units at the best possible price in order to recover as much of their investment as possible. This often means selling these units at a loss. Most mortgage holders are exclusively financial institutions, not obligated to contribute to maintenance fees and other dues on behalf of the indebted unit owner. [2013] - Dan S. Barnabic

The living standards index: Housing costs should be no more than 28 to 33 percent of yearly, pre-tax household income. "Housing costs" includes mortgage payment, utility costs, maintenance fees, and taxes. Typically, banks will not lend mortgage money if the consumer's income is too low to meet this measure. A down payment of 25 percent (or in the case of condominiums, even 35 percent) is required to qualify for a mortgage. [2013] - Dan S. Barnabic

Buyers should not assume that real estate will constantly appreciate and never go down, or that if they don't buy "now" the opportunity will never arise again. History shows that real estate markets fluctuate over time. Waiting for the market to slow and correct itself, so real estate can be purchased at more favourable prices, can pay substantial dividends. [2013] - Dan S. Barnabic

An 8 percent interest rate is a fair measure of safety notwithstanding that prevailing mortgage rates may be much lower. Low interest rates are a desperate move on the part of the government to keep the economy afloat and are not going to last forever. I have been observing real estate trends for over four decades and have witnessed interest rates on first mortgages fluctuate anywhere from 3 percent to 18 percent. In fact, there were long periods when they lingered in the 8 to 10 percent rage. [2013] - Dan S. Barnabic

The most obvious sign of oversupply can be detected by looking at the overall numbers of rental units in any given condominium complex. More than 30 percent of the units rented out or put up for sale is a fair warning to buyers of an oversupply of units. Conversely, if real estate agents are flooded with listings and many For Sale signs appear on front lawns, there is oversupply. It's a buyers' market. [2013] - 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