First Time Buyer's Guide, 2012 Jas Jagpal, REMAX Toronto

First time Buyers always have a lot of questions.  In fact, repeat buyers have just as many because most people do not buy and sell houses on a weekly basis and tend to forget a lot of what happens.  

Here is a small video answering some of the more common questions and what First Time Buyers should be aware of when thinking of Buying a condo.   Obviously a more deeper analysis is done when you book an appointment and come see me at my office.

I'm looking forward to helping you.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  

Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

 

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

REMAX BRAND POWER - Toronto Real Estate

Jas's Thoughts - BRAND POWER!     

Think of a Porsche, Cadillac, BMW, Lexus and you think of powerful, quality cars.  Tried and tested to offer the greatest luxury, convenience, reliability and thrill of driving a very nice car. 

In real estate, people think of and choose RE/MAX as their most trusted and desired company to work with.  This isn't by accident or luck.  Over time, those agents attracted to this Brand are usually better educated, on average higher producers and most work full time. 

Consider RE/MAX as the Harvard University of real estate.  Media calls up its leadership for real estate news.  Realtors pay a premium membership fee to attend it so they can have access to the finest training programs in the industry.

Why do 7 of 10 buyers prefer to work with RE/MAX?  Why do majority of sellers prefer to SELL with RE/MAX?  Over time consumers have benefited by the experience, professionalism and dedication of RE/MAX Realtors.

Sure there are differences within RE/MAX Realtors.  Some like myself take advantage of courses, seminars, mastermind groups, etc. to better my knowledge so I can help my clients where others don't.

We see the highest turnover in Real Estate because it is such an expansive industry with so many niche products and services.  As a Realtor you have to stay on top of the ever changing market conditions to be able to provide clients with the right information and best service.  That is where top Realtors stands arms length from the average Joe who works Real Estate part time.

How Does RE/MAX brand help?  click here

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  

Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

 

 

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

ONE FATED EMAIL - 2 YEARS LATER: Jas's Thoughts From Toronto Tuesday's Real Estate Newsletter

ONE FATED EMAIL - 2 YEARS LATER:  Jas's Toronto Weekly Tuesday Newsletter - Issue 9

Do you believe in Fate,  Karma,  Destiny?   I DO and here is why!

You see I've witnessed too many "coincidences" in my life that can be contributed to chance occurrences. 

The most dramatic event that changed my life was my father, a highly spiritual godly man, foretelling my future when I was in third year university (22 years old).  Back then people would be always asking for his "advise".　

I remember asking him to read my palm and tell me about my life.  I was fearful of my future and hoping for decent employment so I thought I'd be smart by asking him a monetary question.  You see I was heading into a career in teaching and if he answered yes to my question that would have meant I'd received full time employment. 

So I asked him "will I make $30K after university?".
His answer caught me by surprise.  He said, "a lot more than that."　
So, one who had never enjoyed riches in my young life, I said $40K.  He repeated "a lot more than that."  So bullish,  I said $50K.　 Again he repeated  "a lot more than that."

At this point, I'm thinking in my head, what the heck is he talking about!  As a teacher I wouldn't make that for 10 years.  How can I expect that in a few years of graduating.  So I mockingly said $100K and he said the same thing "a lot more than that."　At this point I thought my dad had lost it or was playing with me.  So I frustratingly said to him "what do you know!"  Teachers can't ever make that!"  But then he said there was one condition.

It would happen after I was 28 years old and the real savings after 30.

Now, here was a son of an immigrant father, where none of his siblings had gone to university before him and worked average factory jobs.  I would’ve probably followed their footsteps if it weren't by fate, York University offered me a Entrance Scholarship because of my marks in the sciences. Now 3 years in I’m thinking of becoming a science teacher and my father foretells me something unimaginable.  I could he be so rich when I'd be happy with $30K job?  At his point, I forgot everything he said and continued my education- but how could I escape my destiny?

A few years later, I did not become a teacher.  Because of destiny- I found myself living and working in a Analytical Laboratory in British Columbia.  Then two years in, alone and restless I fatefully met my wife to be on the Internet. Soon fate struck again- my sister who was out of mind and sight for years e-mailed me that she was in the printing business and if I could take a look at her website and give my feedback.

I married in the summer of 1998 and my wife and I moved back to Toronto to be closer to family. As I was about to search for Laboratory positions, my mom tells me to "swallow my pride and go work with my sister in her printing business."  I did.  

A few months later, I asked my sister if I can start a printing company at the side- internet based and wouldn’t compete with her Toronto base and run all the printing orders through her. She gave me her blessings. So while I worked full time for her, I setup "shop" in October 1998 with a cell phone in hand and website. 

Now the million dollar question was how would I get customers when Dot.com companies were going bust all around me!   Again destiny (God) showed me the path and I received my first order in December 2008 and by February 2009 was making a thousand dollars plus on the side a week.  

As the busness grew and I revised my hours with my sister to work Saturdays to take additional week day off to service my clients.  Then It just hit me!  I relived what my dad foretold me years ago.  Here it was.  I was now 28. Just as dad forecasted six years ago.

For the naysayers how could this be chance?  Who could have predicted an internet based printing business for a lowly chemist!  It was then my faith in fate / karma / destiny / God, whatever you may want to call it, crystalized. 

Since then I've had many fateful moments in both personal and business careers.  Now as the title mentions.  Just 2 years ago I received an email for information on a condo project by a lovely lady living in Italy.  I had emailed her back and let her know what was available then.  Just last week she emailed me and was in town. I emailed her back answering her questions and offered to meet her at my office on Monday at 2pm to discuss the projects.  In this business, we get many enquires from people and very few are genuine.  So when I did not receive a confirmation from her that she can come, I wasn't expecting her.

But she did.  I was working at home, luckily dressed up, and reached the office in 15 minutes.

 

We met for the very first time.  2 years later.  We discussed her needs.  I told her about the projects that would fit her criteria.  As fate had it, that afternoon we went out and saw a couple of sales office and she picked a condo that fit her exact needs.  In addition we negotiated caps on levies and received bonuses and cash savings.  It just happened we went to this project and this was exactly what she needed.

 

That is why I hold firm in my belief that there is a higher power working through us all.  I can’t say I was the creator of this experience?  How could I have foretold the bonus discounts she received? 

 

Likewise I could have never predicted people calling me from Montreal to invest, from Edmonton to sell.  Nor did I imagine that people of all colors and religions would choose me, a turbaned Sikh, to help them buy, sell and invest.  That is why I am thankful and grateful for the trust people give me. 

 

What do you believe?  Have you experienced circumstances beyond coincidences?  Is anything a coincidence?

 

You know from my life's experiences that I strongly believe in sewing seeds of honesty and integrity.  In the cosmos I'm just a drop of water, yet somehow, the power in all, the life giving energy force, rewards righteous actions and will dream a "bigger dream for us than we could have ever imagined."

 

Without a doubt in my mind, I'm thankful to God for everything I have.  I'm grateful for my parents wisdom, my wife's love, my clients trust and feel blessed and honored that I can share my thoughts and experiences with you all.

 

Have a blessed life.

Jas Jagpal

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

 

 

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

September 2012, Toronto Real Estate Market Update

Toronto, September 11, 2012.

The August 2012 sales statistics are out and once again we have declining sales compared to 2011.  This time the numbers are down 12.5% from 7,330 sales in August 2011 to 6,418 sales in August 2012.

What is contributing to this sales decline?  Working in the field it appears "affordability" is becoming an issue.  Average prices are 6.5% higher in 2012 from 2011.   Up 16% in detached homes in the Toronto 416 area.

We also have the new "mortgage rules" which are showing their impact.  Reducing the Amortization from 30 years to 25 years in essense reduced the buying power for many first-time home buyers.

Finally the Toronto Land Transfer Tax is pushing off people from selling and buying another home.  When you calculate Land Transfer Tax on a $500K average price home in Toronto you are paying $6,475 of Provincial Land Transfer Tax now add the Toronto portion and you are almost doubling the cost to a whopping $12,200 in taxes.  So if you had to sell and buy again, you are looking at $14K - $15K of total closing costs on the buying end... notwithstanding fees and costs associated with selling.  This is causing some people to rethink selling.  That is why I'd say new listings are down as well in August.  Inversely this will help to keep prices up as market conditions stay tight.  So if anyone was hoping for prices to fall.  Not anytime soon. 

For your information: The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.

5 Home Buying Tips + Videos:
1.  Work with a mortgage lender and find out what you are pre-approved for.
2.  Work a monthly budget and figure out what you are comfortable spending on housing on a monthly basis.
3.  Choose an area that you want to move in.
4.  Work with a trusted Realtor, let them know your budget plan and have them determine exactly what can be purchased in your choice of location and buyer criteria.
5.  View properties and put an offer in.

Remember ASK a lot of questions.  There are no dumb questions.  Buying is a nervous time and holding back from your trusted Realtor will only dampen your buying experience.  It is better to get your questions answered than being stressed.  Oh by the way,  I would be more than happy to help you or your family and friends buy or sell a house or condo.

Videos on "Are You Fit To Buy?"

 

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  

Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002
Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

Toronto Real Estate Market Update - Condo Rentals / Tips on Buying

Toronto Real Estate Market Facts Sept, 4 2012

Now that our kids have gone back to school and everyone is getting back to "normal life",  I expect real estate transactions to pick up.  In August, I did notice the condo rental market tightening up a more people turn to rentals than buying in this uncertain financial markets.  It is a boon for investors who are renting as they are getting premium rents for their units.

 

Are you thinking of buying a house or condo?  Even those who have bought before, as many of my clients have done, often forget the process and have many questions.  It's important to be able to call, text or email your Realtor and get answers right away.  I encourage you to ask, ask and ask  as this is your right as a client.

 

Here is a Tip on Mortgages & Buying a home  

 

1.  Before you are looking to buy and apply for a mortgage, I'd recommend pulling your credit report and score. www.Equifax.ca  Go through it carefully and make sure everything is correct.  The banks will use this report to determine the amount they will lend you and your rate.  It is better to fix any errors then being told afterward you can't get a mortgage.  Save yourself the shock, pain and embarrassment.

 

2.  After getting a mortgage approval on an offer for a home, DO NOT, buy a big-ticket item on your credit cards.  Banks pull your credit report again before lending you the money near closing.  With more debts racked up, the banks will lend you less.  Now you are stuck paying the difference and people have lost their homes and deposits because of this.  Top agents will make sure they tell you this.

 

3.  Set aside 2-3% for closing costs.  Especially when you are not a first-time Buyer.  Top agents will do a closing costs analysis.  Ask if your Realtor doesn't.    

 

4.  Opt for accelerated bi-weekly mortgage than a monthly one to pay down your mortgage faster. 

 

Remember, if you have any real estate buying, selling, investing questions or have a friend, family member who does, just call me and give me the opportunity to help out.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  

Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002
Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

Bank changes HELOC - Home Equity Line of Credits

My TD mortgage broker updated me that there will be changes starting August 20, 2012 for home equity line of credits by Canadian banks.

Currently, clients can get a HELOC up to 80% of the value of their home, if they qualify.

So if the house is worth 500K, the maximum HELOC can be 400K.

Under the NEW rules the maximum HELOC will be 65% of the value of the home. 

So the same $500K home now offers a  HELOC of only $325K.

Now those that are looking to use HELOCs to purchase investments will lose out on a significant source of CASH available, especially when average homes are around $500K.  That is $75K of money that was accessible to you before the changes.

Talk to your mortgage broker if you have further questions and call me if you are looking to buy, invest or sell.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 

 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742 

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

Are You Fit To Sell your home in Toronto?

Many Sellers or Realtors don't quite understand the many facets that need to be looked at before listing your home For Sale.

We've all taken Buyers to homes that are on Sale and wonder "what were they thinking"?

I remember vividly taking a client to a 3 year old house, a couple years back, in a prime location and was embarrassed to walk in with my clients.  The walls were filthy, food all over the floor in the kitchen and the hard wood floors sticky, while the home owners just sat their in the kitchen eating.

This home sold for over $30K less than market value because the owners did not understand or care to show case the home to Sell at the highest price.  With a thorough cleaning and few hundred dollars paint investment, they would've made thousands more.

You will find a selection of professional Videos by RE/MAX that emphasize the key areas that a home seller must consider when Selling their house.

If you are considering selling your homes in Markham and GTA and have questions, want to sell fast and at the highest possible price, then contact us and we will be happy to help you.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

Tuesdays with Jas Jagpal - Issue 3 - Toronto Real Estate Newsletter

Toronto Real Estate Market Facts   (Email JasJagpal@Gmail.com to sign up for the complete newsletter) We have two different markets out there it appears.  One for the 416 area code and another for the 905. Though over all stats show an average price increase, year over year for July by 4% to $477K from $459K and a decrease in sales by 1.5% to 7,570 from 7,683.  The real picture is quite different. If you are living in the 416 area: Sales of Detached Homes (- 4%) ; Semi-detached (- 14%), Townhouse (- 5%) ; Condo Apartments (-13%).   If you are living in the 905 area: Sales of Detached Homes (- 1%) ; Semi-detached (+2%), Townhouse (+24%) ; Condo Apartments (-2%). Clearly semis and townhouses are selling like hot cakes in the 905 area code. NEW and ACTIVE LISTINGS:   This is significant as we have 16% more active listings in July 2012 than 2011 and added 12% more new listings in July 2012 than 2011.  The direct impact of this will be greater competition in the market place.  It will become harder to sell homes.  Days on the Market to sell will increase thus softening prices and also making it more difficult for For Sale By Owners, or discount brokers to sell homes.  If the trend continues we will start hitting a Buyers market I'd say by the winter.  MORTGAGE RATES (July 2012): Chartered Bank Fixed Rates:  1 year - 3.10%, 3 year - 3.95%  5 year- 5.24%  (not discounted rates) AMORTIZATION PERIOD: There is a misconception out there that there are only 25 year amortization mortgages.  This only applies to CMHC approved mortgages where people pay less than 20% down payment.  For those paying 20% or more, lenders can still give 30 year amortization. So you should be concerned about the market?  I don't think so.  With low interests projected to last for many years and our overall economy in decent shape,  we should expect stability in the market for the foreseeable future and not crazy price increases we lived through the past two years.  If you are thinking of Selling get a FREE Market Evaluation. Sincerely, Jas Jagpal, Broker  647.272.6629   jasjagal@gmail.com

Buy /  Sell / Invest in Condos.  Toronto Condo Real Estate!

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

5940 Yonge St, Toronto - 1BR Condo for Sale

See the full gallery on Posterous

You Are Going To Fall In Love With This Spacious, Bright And Airy PentHouse Condo - 9 Ft Ceilings . Don't Miss It! Enjoy Your Morning Coffee Or Tea At The Breakfast Bar With The Morning Paper. Ideal For First Time Buyers And Investors

1BR - 506 Sq Ft,  with Parking and Locker and Laminate Floors  at Finch and Yonge St.
Maintenance Fee: $374.80 - all inclusive includes Hydro.

FOR SALE only $259K

Low Rise Condo Building.  Built 2006.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

How to Buy in Toronto, Canada if you live in Foreign country!

Just recently a lady from New Delhi, India contacted me in regards to buying a home in Canada and had several questions on what the precedure is.  If she could get a mortgage loan, etc.  So if you are a foreigner where there are no rules in your country prohibiting you from owning property elsewhere then here is an example of what you'll need to do.

1.  Contact a local Realtor, you can trust, like myself who the experience to advise you in the Toronto Real Estate Market.

2.  Let them know exactly the reasons why you intend to buy.  Investment, personal use because you are planning to move here.

3.  How much money you have to invest and what are you looking for.  A house, condo, commerical.

4.  If you are not paying ALL CASH and need a mortgage loan, then you will need to qualify.  So if you need a bank loan to buy a house, you will need have a minimum 35% downpayment, plus 6 months carrying expenses in your bank account.  Plus show income source / job letter to secure a mortgage.  In addition banks require you to "sign in person."  You can not do a Power of Attorney.  You can have a notarized Power of Attorney for the Realtor if you trust them well to help you BUY! and Sign on your behalf.

5.  As with all purchases, you will require a DEPOSIT.  You should be able to Wire money to a Lawyers account or have your own account Setup from which a Draft can be made to the Brokerage/ Lawyer holding the funds.

6.  Do your due-dilligence and research.  Your Realtor is a great source to help you accomplish this and liason between banks, lawyers on your behalf.  Ask them lots of questions.  Good idea to CALL THEM! and not just Email.

If you have any further questions, please feel free to contact me or visit our website.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

 

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

Panicking about the Toronto Housing & Condo Market?

I've often written in my blogs that the Toronto housing market is still in great condition because of the major factors that influence housing.  1. Employment  (economy)  2. Interest Rates (government) 3. Affordability  (income & debt) 4.  Immigration  (supply & demand)... well below there are 9 more reasons not to panic.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal. 
 Jas Jagpal, Broker  647.272.6629   jasjagpal@gmail.com  Office: 905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

House prices: 9 reasons not to panic

By Larry MacDonald | May 03, 2012

With the mainstream financial media now sounding a shrill alarm about the Canadian housing bubble, is it time to sell the house? Unless you're transferring to a new job, or a retiree wanting to downsize or move to more favourable climes, you're probably better off staying put rather than capitulating to the panic of articles like "Ready to be bold? Sell the house and rent."

House prices may indeed stagnate or head south for a while, especially in the heated condo markets of Vancouver and Toronto. Those kinds of fluctuations are part of the natural course of markets. But to say house prices are going to crash like they did in the U.S. is a stretch. Here are nine reasons why.

1. Behavioural finance tells us that when extrapolating into the future, people tend to give too much weight to recent events. Accordingly, a number of bloggers and many in the mainstream financial press presently appear to view a U.S.-style housing crash in Canada as a near certainty. But if one looks back in time over many decades, such calamities are rare, “fat-tail” events. On this basis, it seems importune to urge homeowners to sell for the sake of avoiding what historically is a low-probability event.

2. It is anomalous to see financial journalists talk about the futility of market timing in the stock market but then give the impression houses should be sold to avoid an anticipated collapse in prices. Why should trying to sell a home at the top and buying it back at the bottom work out any better than the dismal record of those who have tried timing the stock market? In fact, the comments section of the above mentioned article has many stories of people who did sell in past years because they thought house prices were too high, only to subsequently watch from the sidelines as prices continued to march upward. And even if one does exit at the peak, there is the tricky task of timing re-entry. Not to be overlooked, as well, is the extent to which the exorbitant transaction costs in the housing market may eat into any possible gains.

3. Selling one’s house to become, for example, a renter entails giving up the inflation hedge represented by a hard asset. Prices for gold bullion and other precious metals have climbed over the past decade to new heights as investors sought protection against the erosion of incomes and wealth by inflation. This is a material threat given the vast quantities of money that central banks are printing to keep the banking and government sectors from defaulting on their monumental financial obligations. Indeed, the response to huge debt burdens historically has been to inflate them away. Owning a home is an inflation hedge, and unlike precious metals, the owners get to live in their hedge.

4. Housing bears base much of their case on price-to-rent and price-to-income ratios showing substantial over-valuation. But as I suggested in "What the housing bears may be overlooking," valuation isn't extreme when looking at the yardstick most ordinary folk use: mortgage payments relative to family income. Over-valuation doesn’t look so severe by this measure because a big component of mortgage payments—interest rates—is very low and incomes have continued to rise over the years.

5. Housing doomsters argue that interest rates are abnormally low and poised to climb, which would make houses less affordable and result in a popping noise. However, as I wrote in "5 reasons why the housing market won't crash," the Bank of Canada will only allow its rates to climb as long as the economy is growing vigorously—which, in turn, means that employment and income levels are trending upward. Historically, job increases and wage gains have buoyed the housing market and served as an offset to rising mortgage rates, warding off extreme scenarios such as plunging house prices.

6. Before the U.S. crash, the general view was that house prices could only go up. Such a psychology led to reckless behaviour and contributed to the excesses now being worked off in the U.S. Their plight has largely cured Canadians of that dangerous mindset. In the old days, for example, the government responded to high prices by legislating tax breaks for first-time home buyers. This time around, Finance Minister Flaherty has taken steps to restrict the availability of mortgage finance, and just recently moved to put the Canada Mortgage and Housing Corp. (CMHC) under the supervision of the Office of the Superintendent of Financial Institutions (OSFI).

7. It hardly needs to be said, but housing should be considered primarily as a consumption item. Simply put, its main purpose is to provide shelter. Uprooting could mean leaving behind niceties such as good schools for your children and the circle of friends they have acquired—just to cite a couple of inconveniences. Taking an investment approach and trying to speculate on the ups and downs of prices can lead to undesirable outcomes both financially and in terms of quality of life.

8. The crash in the U.S. had a lot to do with circumstances unique to that country. The banking system was hyper-competitive and quick to take risks in pursuit of profits; policymakers aggressively pushed homeownership through measures such as tax breaks for mortgage interest payments; and weak recourse laws let mortgage defaulters off the hook. Canada has a different environment—a more stable and regulated banking sector, less of a policy push toward home ownership and recourse laws that allow wider latitude for mortgage lenders to go after delinquents.

9. What’s especially different is the phase the monetary cycle is in. When the U.S. housing market keeled over in 2008, the Federal Reserve was deliberately trying to slow down the economy. At first its higher interest rates had little impact because momentum in job and income gains were offsetting. But the Fed kept on tightening until short-term interest rates surpassed long-term rates, creating “inversion in the yield curve.” It was this severe degree of monetary restraint that ultimately punctured the mania. In Canada, monetary policy is currently highly expansionary, along with the rest of central bankers around the world. It is nowhere near an inversion of the yield curve—probably years away. The catalyst for over-valuation to end traumatically is missing, and will be for some time.

So relax, homeowners. There are many reasons not to put the ‘For Sale’ sign up. True, there could come a day when the yield curve in Canada inverts and there is a retreat in house prices. But even then, there is no inevitability to a housing catastrophe. A unique confluence of events came together in the U.S. during 2008—a once-in-a-lifetime event from which Canadians had the good fortune to be spared.

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

How to determine fair commission when Selling your Toronto home?

As a broker in the Toronto Real Estate market I often get calls from perspective Sellers of their homes and condos and after a few minutes of conversation or less, some home owners will ask the commission question.  How much do you charge? 

When you tell them commission is based on the marketing services required to successfully sell their home and it varies from a total commission of 3.5% to 6%.

Some people's response is that "people are charging 1%, what will you do for me?."  I'm amazed when I hear this.  It feels like Sellers are grouping all Realtors together as a herd of sheep.

Many may not know it is quite easy to get a Realtor's license but takes a lot of work and effort, time and money, investing in education to be a successful one.  Since it is easy to get a license naturally we have an abundance of licensed Realtors.  Did you know most work part-time and do less than 4 deals a year! 

Forget I just said that.  Think as a Seller, would you trust a Realtor to represent and market your property and negotiate the best price for you if they can't negotiate a fair commission for themselves?

Sellers, often neglect this fact and lose out at the end when they calculate their "net return" on the sale of their home.  For example-  Say a 1BR condo is worth 250K.  At 1% listing commission you pay 2500 to the Listing Agent's brokerage.  After marketing costs, commission splits, the Listing Realtor might be left with $1500 for their time.  Now when you want them to cut their commission a further 0.25%, and some desperate Realtors do, after all they do have monthly expenses.  This saves you $625 on the listing side and the Realtor ends up taking home $1000.

Now ask yourself, how motivated would you be to negotiate a thousand or two more on the Selling price from the Buyer when it only makes you $10-$20 more on your commission.  The focus would be on getting the deal done.  Whereas when you pay fair commission, Realtors are motivated to get you the best price and are happy advocating for you.

And when homes are worth $700K then for many Realtors a 1-1.5% listing commission seems quite fair and they'll be determined to work for you.  But if they aren't making anything, then truth be known, they won't do anything.  That is just human nature.  Most people will give back according to their sense of fairness. 

From my experience, fair commission is quite frankly determined by the following factors Sellers should give thought to.

1.  Location of your property
2.  Condition of your property
3.  Selling price of your property
4.  The cost to market and sell your property
5.  The time it takes to sell similar properties

We all know that cheapest isn't the best.  We buy items from the "dollar store" knowing we're fine if they break the next day.  That is our expectations for the money we spent.

I'm sure, when it comes to our largest asset, we'd prefer to hire, quality, honesty, experience and service.  We'd all pay a bit more to a Lawyer and feel a lot more relaxed and confident dealing with one who specializes in real estate then one in family law when closing a real estate deal.  Or choose a surgeon with a track record of doing hundreds of successful surgeries than one who has just started.

So if you are planning to SELL.  How much commission a Realtor accepts shouldn't be the deciding factor on who you should choose to help you Sell.  You want to know the answers to the five factors I mentioned above and then choose a Realtor you can trust, be confident with and who will be there for the entire Selling proccess working on your behalf.  Otherwise, you might start off paying less, but end of netting a lot less.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  E: jasjagpal@gmail.com O:905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

What Toronto's New Mortgage Rules Mean To You?!

It's been a couple of weeks since my last posting.  It has been a busy time and there is so much happening in the Toronto real estate market and the world financial markets that many people are confused and anxious about their future.  

The Federal government announced Mortgage Rule changes that will take affect July 9th.

What are the main changes?

1.  Amortization period reduced from 30 years to 25 years
2.  Refinancing credit from your home is reduced from 85% to 80%.
3.  Homes over $1 million can't get CMHC insurance. 

What does this mean?

1.  If you put 5% down to buy a house or condo,  for every $100,000 loan you will be paying roughly $50 extra per month.  So on an average $400K home you are looking at an additional $200 a month. 

Who is going to be impacted?

This will primarily impact first time home buyers whose budgets are already stretched and can only afford 5% down payments.  Instead of buying a home at $400K, they might only be able to afford $350K and thus find that a great many homes are out of their reach.

What should you do?

If you are seriously considering buying.  Talk to your mortgage adviser or myself today.  You'll need to lock in a deal prior to these changes July 9th.  We're expecting these changes to make the market hotter in the next month so it is a great time to SELL!  Buyers need to act FAST!

I predict a huge rush to buy before the deadline and then a slowdown like we had during the GST/HST rule changes a couple years back. 

Thinking of doing renovations?

If so you'll want to make an appointment with your financial institution right away if you need the 85% financing mark.

The last change affect CMHC not insuring homes over a million dollar shouldn't affect the market that much at all.  If you are buying a million dollar house you ought to have 20% down payment... otherwise just your mortgage payments are ridiculously high.  I expect some homes near 1 million might have a slight downward pressure to sell below a million dollars for buyers to get insured.

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  E: jasjagpal@gmail.com O:905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

So there you are folks the biggest news in real estate.  Don't forget to check out new pre-construction projects at my Toronto Condo Real Estate website.  Plenty of new projects coming up in Richmond Hill!  XPRESSION is something you ought to consider.

Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale

June 2012 Mid-Month Toronto Resale Housing Market Statistics

It's a strong Toronto real estate market.  Average price is still 8% higher than last year and we can expect this trend to continue with interest rates forecasted to stay low and market conditions tight.  Remember real estate is -local (location, location, location) so not every neighborhood saw same price increases so you'd need to get a CMA for your house to know what you can sell it for.  Call us to book your appointment.

TORONTO, June 18, 2012 – Greater Toronto REALTORS® reported 4,597 sales through the first 14 days of June – a result that was on par with the strong sales activity reported in the June 2011 mid-month release. While sales were flat on a year-over-year basis, the total number of new listings entered into theTorontoMLS system was up by 16 per cent to 8,382.

“Sales growth continued to be much stronger outside of the City of Toronto in the first half of June.  While higher average home prices and slower listings growth in the City of Toronto likely explain some of the disparity in sales growth, recent polling suggests that the City of Toronto’s Land Transfer Tax is having a substantial impact on where many households are looking to buy,” said Toronto Real Estate Board President Richard Silver.

“Recent polling indicated that three-quarters of people in Toronto and surrounding 905 regions who are planning to move over the next two years said that they are more likely to move outside of Toronto specifically because of the added upfront costs associated with the Toronto Land Transfer Tax,” continued Silver.

The average selling price for transactions during the first two weeks of June was $516,834 – up by over eight per cent compared to the average of $477,025 reported for the first two weeks of June 2011.

“The annual rate of price growth remains very high in the GTA.  Increased listings will result in more balanced market conditions over the next year, but it will take some time before price growth will moderate to a more sustainable pace.  Right now, months of inventory remains very low from a historic perspective and will likely not climb back to the pre-recession norm until 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

From the Toronto Real Estate Board

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  
Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  E: jasjagpal@gmail.com O:905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Homes for Sale : Markham Condos Real Estate : Investment Pre-Construction Condos

Bank of Canada holds Overnight Interest Rates

With all the uncertainty in Europe, high unemployment and economies expected to be flat it was an easy decision by the Bank of Canada to leave the rates where they are.  With all the news of mortgage rates increasing we won't expect them at least this year in my opinion.  So we can continue to enjoy the low rates and if you are a buyer, sitting on the sidelines for awhile, the summer is your best time to look and buy when seasonally many stop.  You'll be less likely in multiple offer situations and pick up a home, maybe a few thousands dollars cheaper.

Below you can read the artcile from The Globe and Mail

At a decision Tuesday in Ottawa, Bank of Canada Governor Mark Carney left his main interest rate at 1 per cent for the 14th consecutive decision, extending the bank’s longest pause since the 1950s. But even as he sounded a more cautious tone, Mr. Carney indicated he remains worried about high personal debt and hinted he is still eager to tighten policy as soon as conditions allow.

Read more 

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  E: jasjagpal@gmail.com O:905.471.0002 
 Jess Jagpal, Sales Representative  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Homes for Sale : Markham Condos Real Estate : Investment Pre-Construction Condos

3BR Bungalow in Scarborough For Sale with Income Potential

See the full gallery on Posterous

33 Lord Roberts Bungalow near Kennedy Station (Midland & Eglinton)

If you wanted to own a bungalow and was looking to offset your expenses by renting out the basement than this bungalow in prime location should be given serious consideration.

5- 10 minute walk to Kennedy Station, Schools (Public and Catholic), GO and shopping.

This bungalow is freshly painted, has 3 Bedroom + 1 Washroom in the main floor.  Plus 1 Bedroom, Washroom and Kitchen in the basement.

You'll be living in a safe and family oriented quiet neighbourhood.  Huge lot. 47 x 114 feet.

A Must See!  Listed for $449,900 

Extras: 2 Fridges, Stove, Washer And Dryer. All Electrical Light Fixtures. Excludes: (Chandelier On Top Of Dining Table). Broadloom Where Laid. Hardwood Flr Underneath Carpets Upstairs! Gas Burners And Equipment And A/C.

Looking to sell your house?  Contact Jas at 647.272.6629

Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc.  He has formed 2 teams.  One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA.  No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.  

Choose Results, Honesty & integrity.  Choose Team Jas Jagpal.  E: jasjagpal@gmail.com  O:905.471.0002 
Assistant; Buyer Representative: Jess  jessjagpal@gmail.com  416.312.9742

Posted via email from Markham Homes for Sale : Markham Condos Real Estate : Investment Pre-Construction Condos