Buying a Cottage or Home

Helicopter Viewings

How Much Can You Afford

Preparing to Buy

Needs vs Wants

Financial Advantages of Buying

First Time Buyers

My Commitment

Understanding the Market

Understanding Agency

Types of Ownership

Imagine the View 

 

Helicopter viewings A unique experience and spectacular views. We can arrange to have our associate at Dominion Pegasus take aerial photography of your property.  Or arrive in style. Imagine the View  IMAGINE MUSKOKA

So how do you get from here to there? Bridging the gap between dreaming and owning can be costly.

Most lenders say that your monthly housing expenses (principal, interest and taxes) should not exceed 30% of your family income (before personal income tax). This is called your gross debt service ratio (GDS).

Lenders may also look at your total debt service ratio (TDS). Your TDS takes into account monthly housing expenses, plus other debts and loans you may have.

To calculate your TDS: use my mortgage calculators or call me

• Multiply your monthly gross (before tax) income by the maximum TDS ratio of 40%.
• Subtract your regular monthly costs (e.g. credit cards, car payments, personal loans).

The figure you are left with represents the maximum amount available for your mortgage payment, property taxes and 50% of condo fees (if applicable).  

Preparing to Buy

You can be a smart consumer before you even start looking through real estate listings. A small investment of time and effort right at the start can pay tremendous dividends. You'll save time, quite possibly some money, and you'll likely be happier with the end product when you approach the cottage or home buying process as an informed and organized consumer.

So brush up on your real estate knowledge with all the tips, advice and facts you need to make informed choices as you embark on the path to cottage or home ownership:

Needs vs. Wants

Factors such as cottage or house cost, neighbourhood, lot size and special features play a big role in your decision. Determining which features your new cottage or house absolutely must have, and which features you could live without, is your first step in the cottage or home buying process. 

Canada real estate listings: find cottages or homes for sale

Your real estate listings search starts here with our information about Canada MLS listings, as well as exclusive and Carriage Trade listings. If you're planning to buy a  house, condo, cottage, land or other real estate, I can help you find the perfect property. If you're planning to sell your cottage or home, I will provide you with pertinent real estate information about market conditions and cottage or home values.

 

• Cottage or homeownership is the single largest source of savings for Canadian households.
• Your payments build equity (as opposed to renting, where your money goes to the building owner).
• Unlike other investments that can be volatile, when you buy a cottage or home the increase in its value is relatively steady. The average price of a cottage or house for sale on the Canadian real estate market has increased every year since 1998.
• The return on investment for a cottage or house can be substantial. In 2004, the average house price in Canada rose by 9% in just one year. It also experienced a 27% increase over four years.
• Cottage or homeowners can use the equity in their cottages or homes as security for other loans.
• Buying a cottage or home and building equity is the first step on the property ladder. It gets you into the market, keeps you in touch with increasing cottage or house prices, and puts you in a good position to trade up to bigger and better cottages or homes as your circumstances allow.

First-Time Buyers

Owning a cottage or home definitely has its advantages. With this primer on the benefits and joys of cottage or home ownership, you'll learn tips and incentives to help you get your foot on the first rung of the property ladder.

The owning advantage (and some added incentive)

Two out of three Canadian families own a house that's one of the highest rates of home ownership in the world. And for good reason.

Real estate is a great investment. And with increasing cottage or housing prices, it's all the more important for first-time buyers to get a foot on the first rung of the property ladder.

Other advantages of owning:

Pride of ownership. When you own, you have the freedom to renovate and decorate as you please.

Family and community. Homes can strengthen ties to your family and members of your community. More than basic shelter, homes can be a legacy passed on from one generation to the next.

I will:

1. Assist you in setting out your property preferences
2. Develop a property profile for guidance
3. Promote YOUR Best Interests
4. Negotiate, negotiate, negotiate! Favourable terms, favourable conditions, I work for you
5. Act as your sole representative, in person
6. Listen to and respect your instructions
7. Confidentiality, it's a sacred trust
8. Beyond attention to detail. I will exercise all reasonable professional skill, care and diligence. As my client I owe you a care of duty for everything that I do or should do for you (even if you haven't asked me.)
9. Fulfill Fiduciary & Regulatory Obligations
10. Comply with Regulatory Requirements
11. Adhere to Regulations and rules, and the bylaws
12. Insure the utmost loyalty, confidentiality, full disclose, avoid and disclose any conflict of interest
13. Open and clear communication means keeping you fully informed - straight talk regarding the progress of the transaction
14. Any relevant facts that would affect your transaction
15. Obtain Expert Advice. I will always direct you to experts in any field that is of importance to you and your decision making process
16. Accurately and professionally prepare and convey offers, counter offers and other written documentation
17. Timely Presentation of all Offers and Counter-Offers, agreements and statements
18. Even if you have an existing offer  - this ensures you are well informed
19. Transparency. I will disclose material latten defects. This helps protect your interest in the long term and it's the law

Imagine the Commitment IMAGINE MUSKOKA
Not only will I earn your trust, I will earn your respect.
Imagine That! IMAGINE MUSKOKA

Supply and demand can vary widely across the nation, across provinces, and even across neighbourhoods. The ups and downs of your local housing market can affect how much bang you get for your buck. But whatever the state of the market, astute cottage or home buyers can tailor their buying strategy to take advantage of current market conditions. Market conditions Characteristics Implications

Buyer's Market

• The supply of cottages or homes for sale on the market exceeds the demand.
• High inventory of cottages or homes.
• Few buyers compared to availability. 
• Cottages or homes are on the market longer. 
• Prices tend to drop.
• More time to look for a cottage or house. 
• More negotiating leverage.  

Seller's Market

• There are more buyers looking to buy cottages or homes there are cottages or homes on the market.
• Smaller inventory of cottages or homes. 
• Many buyers. 
• Cottages or houses sell quickly. 
• Prices usually increase.
• May have to pay more and make decisions quickly. 
• Conditional offers may be rejected.  

Balanced Market

• The number of cottages or homes on the market is equal to the number of buyers.
• Sellers accept reasonable offers. 
• Cottages or homes sell within an acceptable time period. 
• Prices are generally stable.
• More relaxed atmosphere. 
• Reasonable number of cottages or houses to choose from.  

Agency law protects home buyers from conflicts of interest, and ensures your real estate agent serves you with integrity, confidentiality and loyalty. Brush up on the types of agency relationships, so you can select a real estate agent the smart way,

Agency law: your assurance of fair play

Would you raise an eyebrow if you discovered your dentist owns the candy shop down the street? Would you be uneasy knowing the mechanic who fixes your car's brakes moonlights as a tow truck operator?

These examples may be a little far-fetched, but they demonstrate the point. You'd have cause to be extremely wary of the conflicts of interest that could arise from business relationships like these. It's basically why agency law was established  to protect you from real estate agents who claim to work in your best interest while actually working for another party.

Under agency law, the agent legally owes you the duties and obligations associated with agency: utmost care, integrity, confidentiality and loyalty.

As real estate agent I must disclose, in writing, whose interests he represents in any real estate transaction. I may represent either the buyer or the seller, and in some cases I may even represent both involved in the same transaction. The important thing is that I as your agent discloses this information as required by law.

The types of agency relationships:

As a Buyer's agent I work only for you, the buyer, and am sworn to confidentiality and to work to find the best deal for you. If a seller reveals anything they wouldn't want the you as the buyer to know in front of me, as your agent, it's my duty to report that information back to you the buyer.

As a Seller's agent I am legally and ethically bound to work solely on behalf of you as the seller. As your agent I will seek the best terms possible for you, and I owe no obligation to the buyer other than the duty to disclose any defects regarding the condition of the property. As my client, expect complete confidentiality. As a buyer, watch what you say in front of me. As the seller's agent I am obliged to disclose any information that might benefit my client and I will. 

Dual agency In some cases, the same agent (or agents from the same brokerage) represent both the seller and buyer. In this situation, the broker has a duty to be impartial. The nature of the dual agency must and will be disclosed to my clients, and you are required to acknowledge their understanding of the relationship in writing.

 

Before you embark on your cottage or house hunt, brush up on the broad categories of Canadian home ownership: freehold, condo and co-op. Which one meets your needs? It's a decision that can impact your personal freedom, your finances and your responsibilities for the upkeep and repair of your dwelling. Knowing the one that's right for you will save you time and help you narrow down your cottage or home search.  Freehold, condo or co-op? Here's a quick guide to help you determine your type As you embark on your hunt for housing and begin perusing real estate listings, you will no doubt encounter a strange new lexicon. You'll encounter words and acronyms like chattel, estoppel and MLS. And when it comes to types of cottage or home ownership, the words look a bit more familiar, but the meaning is not so clear.

This isn't a foreign language, nor is it the result of a real estate broker with a malfunctioning keyboard. This is the language of real estate agents, and confusing as it may seem, have no fear. Your translator is here.

In Canadian real estate there are three broad categories of home ownership. The words, freehold,  co-operative and condominium are the terms used to define an owner's rights and responsibilities as they pertain to the dwelling.

These types vary in the extent of the freedom the owner is allowed regarding the decoration and renovation of the property, and rules that restrict certain behaviours. They can also define who is responsible for the various maintenance tasks on the premises.

These are the basic points you should know about the types of home ownership:

Freehold ownership

• The owner owns the cottage or house and the grounds.
• Freehold homes offer the most privacy and freedom of choice of any type of home. Homeowners are free to decorate and renovate as they please.
• The owner is also responsible for all the maintenance on the interior and the exterior of the cottage or house.
• Freehold is the most common type of home ownership.

Condominium ownership

• The homeowner owns the unit and shares ownership of common elements. Condos are usually apartment buildings, but also include townhouse developments and developments of detached buildings on private roads.
• The homeowner is responsible for the interior area of the unit (everything from the plaster in). The condo association is responsible for the up-keep of the exterior of the building, common interior elements (halls, elevators and parking garages, for example) and the grounds.
• All condo owners pay a monthly fee to the condominium association to cover maintenance costs and common utility fees and taxes.
• Condos often have strict rules regarding noise, use of common areas and renovations to units. Condominium residents often enjoy less privacy than residents of detached cottages or homes. ? Condos are usually less expensive than freehold cottages or houses.

Co-operative ownership

• Co-operatives (or co-ops) are similar to condos but instead of owning your unit, you own a share in the entire building or complex.
• Co-op residents pay for maintenance and repairs through monthly fees and are subject to the rules and regulations of the co-op board. If you decide to sell your shares and move out, the co-op board has the right to reject your prospective buyer.