Latest Buying Articles

Calculating the REAL costs of Home Ownership

Wed, 14 Oct 2009 15:22:29 -0700

When you first embark on your search for your first home, having a realistic expectation of how much you’re going to have to pay is going to make home hunting – and ownership – a lot easier. Many people look for a home based on the amount of mortgage they will have to pay and while a mortgage is certainly a big part of your monthly home payment, it’s by no means the only expense associated with owning your home.

The costs of actually buying a home can run into the thousands. There’s the home inspection, the lawyer’s fees, transfer taxes, moving expenses and more. This can really hit you where it hurts if you’re unprepared. Do your research and make sure that you have a sum set aside for closing costs.

In addition to your mortgage payment, there are the taxes that the city levies to keep its infrastructure running. The amount of property tax that you pay depends on the municipality you live in. It is usually calculated as a percentage of your assessed home value. While they can be below 1% of your home’s assessed value in some areas, property taxes can exceed 5% in others, which can make your monthly payments balloon.

If you don’t have the 20% down for a traditional mortgage, you will probably have to pay mortgage insurance. This is a fee levied by the lender to cover the insurance it buys to cover the loan if you default. You can generally cancel this after you reach around 20% in equity, but reaching this point will take some time. Other options, like taking a second mortgage out to avoid this can be just as or more expensive than the mortgage insurance.

Homeowners insurance really depends on the value of your home and belongings, but you might be paying anywhere from $50 to hundreds of dollars a month to ensure that damage, vandalism, burglary, etc. can be repaired and items replaced. So that is something that you might need to calculate paying.

A homeowner cannot run to the landlord if their sink is plugged up or their toilet overflows. All the costs of repairs and maintenance fall to you now. It’s a smart idea to save a small percentage of your income to ensure that you have the cash when the toilet threatens to fall through the floor. Saving 5-10% each month of your net pay will set you up with a decent fund – unless, of course, an overlooked problem manifests itself right after you buy.

While home ownership can be rewarding and financially smart, you need to be aware of the real costs. By calculating the costs of buying your own home and maintaining it, you will be much better prepared for owning your property and better able to enjoy it.

Sourcing a Good Foreclosure Deal

Wed, 14 Oct 2009 12:43:17 -0700

While the newspapers and television shows are full of stories about the great deals to be had on foreclosed properties (for those who can afford to take advantage of these hard times), there are a number of elements to consider before jumping in to what seems like the bargain of the decade.

How to find the deals:

These foreclosure situations arise for a number of reasons – the owners have lost their main source of employment and cannot maintain the mortgage payments, or property taxes have not been kept up to date. Do your own research, in conjunction with a realtor who is familiar with foreclosure properties in your area. The realtor may help you avoid properties that are not worth the price, even if it is a distress situation.

Check out local free lists of foreclosures, bank-owned properties or short sales. These properties may go quite quickly in the competitive, bargain-hunting world of real estate today. Some homes will be snapped up within one hour of being put on the market.

Be ready to buy:

It is essential to be ready to move when the right deal comes along – including having a pre-approved mortgage and a strong down payment. When a property is bank-owned, the faster it can get the home off their books, the better it is for them. But also realize that they are not in the business of giving their assets away completely.

One benefit of buying a bank-owned property is that all the liens and back taxes should have been removed.

Be sure to get an inspection done before purchasing. This could avoid unforeseen costs after the deal goes through.

Know if this property is the one you want. This is where your research is crucial. On a quick foreclosure sale, you don't often have the luxury of time for mulling over details such as square footage or proximity to shopping and schools.

What's the catch?

In some cases, a deal may be struck with the current owner, such as taking over the payments. This would include not only the property, but all of the associated debts and requirements for repairs.

Some homes may be in a state of disrepair due to neglect by previous owners. In some cases, anger and frustration at the impending loss of their home caused the owner to punch holes in the walls or otherwise damage the property.

If the property being purchased is a rental unit or home, and currently has tenants, you may be responsible for legal fees if you want to evict them.

Always ensure the property taxes are current.

Worry-Free Calgary Condo

Wed, 14 Oct 2009 09:58:16 -0700

With Calgary metro condo sales accounting for almost 91% of total residential home sales, you'd think there would be no need for incentives. However, the 940 new condo listings from August 2009 were 21 per cent lower than the prior year when listings totaled 1,186.

Everyone has felt the pinch, including well known Calgary condominium developers, Anthem Properties. They were commended for their agressive undertaking to develop waterfront property along the Bow River. Not only the largest condo project in history, this prime downtown real estate suffered from contamination and required over $10 million dollars dedicated for clean up, before they could even break ground.

This multi-year project includes three highrise towers and five podiums of 1,000 units in total plus retail space. Waterfront is located in an incredible downtown Calgary location convenient to shops, restaurants, jobs and local parks. The quality condos are equipped with high quality Sub Zero appliances, Caesarstone counter tops and hardwood floors.

In the summer of 2009, over 100 condo units at Two Waterfront were drastically reduced in price. One bedrooms dropped from $300,000 to $249,000 and large two bedroom condos came down $187,000 in price. After selling 60 condos in 60 days, you would think that the developers would be content with that response. They still felt that although there was strong interest in the property, consumers were still reluctant to commit to purchasing.

Recently, Anthem Properties announced a new worry-free program to encourage fence sitters to take the plunge. If a prospective buyer hasn't sold their existing home by the time they take possession and move into their Waterfront condo, then Anthem Properties will purchase their home at a pre-arranged price.

Calgary builders aren't the only one's tantalizing buyers with incentives. In Toronto, the condo capital of North America, only 917 units were sold in the first three months of 2009 - the lowest since the same time in 1996, and down from the average 4,000 units sold in subsequent quarters. Added to the lack of consumer interest, is the impending harmonized sales tax in 2010 that will add another 8% to the price of a new home.

To stimulate sales and combat what could possibly cause a dangerous glut in new home sales, developers are offer discounts of up to 20%, as reported in Urbanation Inc. Over 60% of major builders are also offering perks that include free parking and reduction in mortgage rates. Experts feel that these incentives are not enough and lower price per square foot may be what it takes to boost sales to the levels they require.

With regard to the harmonized tax, new homes priced under $400,000 will be exempt from the tax, but that only effects 70% of the market. Compounded with the harmonized tax, Toronto has created their own version of a land transfer tax, in addition to the existing provincial required tax (we're at 3 taxes in Toronto now), you could easily see another $8,000 tacked on to the price of that $400,000 home.

Buying a Home to Share with Your Elderly Parent

Wed, 14 Oct 2009 08:29:27 -0700

In many cultures, the traditional living arrangements that families had was for multiple generations to live under one roof and help take care of the household together; in our modern times this has become more of a rarity, but due to financial concerns some families are returning to a multi-generational living arrangement.

If you do not currently own a home that’s large enough to house all of the family members that’ll be living together you will need to purchase one that has enough space and amenities. If you will be living with both of your elderly parents, you may want to purchase a home with a whole suite built into it; if you will be sharing your home with just one parent you may want to opt for a smaller solution like having an extra bedroom with an ensuite for them.

When looking for a new home for the whole family, elements of universal design will be welcome elements, but some of these can be added at a later date if the home doesn’t already contain them. Universal design elements allow people with mobility problems of all kinds access to the home just like everyone else has. Levered door handles, grab bars, wide doorways, and walk-in showers are all examples of universal design.

Whether or not your parent has mobility issues now, it’s a good idea to make allowances for the possibility that they will have them in the future. Look for a home that has an on-grade entranceway so that they won’t need to climb any stairs. It’s also a good idea if their bedroom and bathroom can be on the main floor of the home for easy access.

If you have children, it is a good idea for your new home to have their bedrooms or play areas far enough removed from your parent’s sleeping area so that the children are free to play without disturbing your parent if they are resting. Many older people aren’t used to the hustle and bustle of living with children and will need a quiet retreat.

Whether you’re looking to live with your elderly parent just until they require a more hands-on living arrangement or if you plan on giving them care right up till the end of their life, it is a good idea to sit down and make a plan for what you and your family is going to need to accomplish that goal. Take into account the needs of everyone in the family, including your own; care-giving is an exhausting job so make sure that you have private space for yourself as well.

Extension of the Home Buyer Tax Credit for Some

Tue, 13 Oct 2009 12:52:45 -0700

A bill that extends the $8000 home buyer tax credit into 2010 for people serving in the military, diplomatic positions and intelligence operations may pave the way for the bill’s extension to the general sector. The Home Buyer Tax Credit is seen by many in the White House as an important stimulus to the economy, helping to create and maintain jobs in the coming year.

The Home Buyer Tax Credit was created to encourage first-time home buyers to purchase their first home and is calculated as 10% of the home’s purchase price up to $8000. By taking advantage of this tax credit, new home owners now have a financial advantage that can make home ownership that much easier. It’s like having one’s closing costs and taxes for the year paid for with a bit left over.

According to a study made by the National Association of Realtors®, 350,000 people who bought a home during the time when the Home Buyer Tax Credit was applicable to their purchase would not have taken their first step to home ownership if it weren’t for the Credit. As of mid-October, the window for civilian residents of the U.S. has been effectively closed, as it is nearly impossible to initiate a home purchase and have closing completed in the timeframe of two weeks.

The extension of the Home Buyer Tax Credit to the military and other government employees makes many hope that it will be generally extended into 2010 so that people who were unable to take advantage of it this year will still have an opportunity. While there has been no official word from the White House on whether this is going to be the case, hopes are high that the positive attitude towards it will be enough for it to be signed into law.

Many believe that the tax credit is an important part of combating the recent foreclosures that have turned some areas of the nation into wastelands of empty houses. The more people who invest their money into real estate, the more people there are to take an interest in their neighborhood and create thriving communities.

With government personnel being granted a reprieve that may enable them to buy homes once returned from active duty overseas, the Home Buyer Tax Credit is still alive and well. Hopefully, once the success of its extension for people serving their country is realized, it will make sense for the government to enable its use by non-government citizens into the New Year.

Things to know while investing in Mexico Real Estate

Tue, 13 Oct 2009 04:36:24 -0700

If you are a savvy investor, you will know that diversification is the way to go. Thus, instead of putting all your money in US properties, it may be a good idea to try investing in Mexican Real Estate. Why Mexico? Well, aside from the fact that market conditions in this Latin American country is entirely different from that of the US, the proximity of Mexico to the US makes checking on a property easier. Besides, there are over one million US citizens who are already permanent residents of this tropical country. Property experts believe that the real estate market in Mexico will continue to rise, as more baby boomers plan to retire in a tropical haven within the next few years. However, before you spend any money, you need to know some important tips on how to invest in Mexican real estate market.

The first thing you need to do if you plan to invest Real Estate in Mexico is to check the location of the property. If you intend to buy a vacation or retirement home in Puerto Vallarta, for example, it would be a good idea to stay in the area for a few weeks. In fact, you should also make it a point to visit the location not only during the peak season but also during the lean months. Inspecting the site will tell you if the living condition in the place you are planning to invest in is comfortable or not. Also, if the home or real estate you intend to buy is an old building, it may be a good idea to bring a third party expert so you know that you are not paying more for something that has less value.

First-time Mexico real estate investors could learn a lot from people who have already invested in the country in the past. So if you want to buy a property in this country, you should ask your friends or surf the Net for information about the problems that they faced when buying homes or other real estate properties in the country.

Lastly, you definitely need the help of an expert for Buying property in Mexico. Investing in a different country can be tricky so you need someone who has extensive experience in dealing with Mexican government agencies. However, you need to choose the person or company who will assist you because there are many unscrupulous people who prey on individuals who are new to the country and the real estate industry.

Your beachfront property in Mexico is within your reach. Check out Real Estate listings of Playa del Carmen, Puerto Vallarta and Cancun for insight into this booming market. Contact Tom Budniak for the best deals in Mexican Property.

Tom Budniak operates, owns, and manages Realty Executives Vallarta here in Mexico. Tom's office is considered by many in the industry to be the top office in Puerto Vallarta. Tom, from Realty Executives Mexican Caribbean is a Certified Member of RMRE and MLS 4 Riviera Maya. Check out all of the resources available through Tom and Realty Executives Vallarta.

Author: Tom Budniak

Buying a Home With a VA Mortgage: What You Should Know

Tue, 06 Oct 2009 15:28:41 -0700

While many home buyers are snatching up deals from the pool of foreclosures, many military personnel are discovering some problems with trying to benefit from the deals that can be had in the foreclosure market.

Due to the limitations on VA mortgages and the prevalence of vandalism and poorly maintained homes on the foreclosure market at present, there are many homes that home buyers who're hoping to use VA mortgages to buy a home are not able to purchase. Many real estate agents are claiming that banks are overlooking offers made by buyers who are looking to make purchases with VA mortgages in favour of investors' cash offers. Other, less convincing claims are also circulating that banks are looking on cash offers so they can cut down on the number of loans that they hold that are tied to government agencies.

However, most of the problems with home buyers trying to purchase foreclosures with VA mortgages do, in fact, seem to come back to many of the issues with foreclosure homes qualifying as purchasable under the conditions of the loans. Due to the emotional state of many home owners who have their homes foreclosed on, many bank owned homes are in a horrible state of disrepair and tragically vandalized.

Homes that do not qualify for the VA's stringent home condition requirements are usually not pointed out as such to home buyers, leaving many of them uncertain as to why their bids for homes aren't accepted. Some advertising will point out that certain listings will not qualify for VA mortgages however.

For many military personnel and veterans alike, the best option really seems to be that of pursuing the regular real estate market for homes not in distress. The banks are not so quick to favour cash bids for them over mortgaged offers as they are with foreclosure sales, so buyers with VA mortgages making offers have a better chance of success when buying these homes.

In an ideal world it was be easy for any deserving buyer to purchase a home, but in reality there are rules and regulations that go along with any purchase that requires a loan to complete. When you accept that the AV mortgage restrictions are in place to not only protect the home buyer but also the mortgage lender, the rules become a little more understandable and acceptable.

Why Puerto Vallarta Condo is the Preferred Choice of Smart Investors

Mon, 05 Oct 2009 04:33:56 -0700

The Puerto Vallarta Real Estate market has been one of the most preferred areas of Mexico in the past few years. The real estate in Puerto Vallarta has seen strong demand even in tough economic conditions basically because of wide choice of investment options like beach front condos, vacation rental condos, rentals villas and lots.

When a second home in Puerto Vallarta is mentioned, most people conjure up an image of a beachfront villa in Costa Vallarta, but reality is that for an average investor looking for a second home with good ROI, condos in Puerto Vallarta are the best option.

Puerto Vallarta Condo Homes for sale are in reach for most of the people looking for a vacation home in Puerto Vallarta. Condominiums in Puerto Vallarta are becoming contemporary, luxurious and high end, sought after by an increasingly larger portion of real estate buyers. Buyers now look for condos that come with all luxuries and space that is usually expected only with a home, but they also want to be able to just lock up their home and leave. This is driving the demand and prices of condos in Vallarta. Million dollar condos are getting common. Three bedrooms condos with over 3,000 square feet are increasingly popular with investors. All regions in Puerto Vallarta are witnessing this strong trend. Condos at Punta Mita usually start around $1 million USD. Many projects in Conchas Chinas, Amapas are experiencing incredible development. Prices for condos have seen increase in prices. For example, a condo that was selling for 300,000 USD is now available above 450,000.

Puerto Vallarta has seen a strong influx of tourists and expats from all over the world. This has fueled the growth of Puerto Vallarta Real Estate sector. This is evident by the launch of big ticket real estate projects in Puerto Vallarta by real estate majors from all over the world. The tourist boom has also boosted the local economy, created more jobs which have attracted people. Therefore, now not only expats are buying homes but also locals who have benefitted economically from this increased tourist activity.

Puerto Vallarta offers an eclectic life style which no other city in Mexico can offer. Puerto Vallarta city is abound with art and music. City regularly hosts live concerts of diverse music, art galleries, beachfront sculpture displays and much more. The local Indian culture scene is quite strong in this city signifying that even though the city is modern, it has not severed its umbilical chord with its past heritage. Lot of crafts and local wares are on display and sale.

Another factor is for what a person pays in property taxes alone in California , USA ; one can pay the property taxes and nearly all the operating expenses of a home in Puerto Vallarta.

Author: Tom Budniak

Successfully Buying a Pet-Friendly Condo

Fri, 02 Oct 2009 10:08:44 -0700

With the recent economic downturn and more home buyers looking to downsize to smaller homes there are many buyers out there looking to buy a condo or townhouse who've previously lived in a house. However, some of these prospective buyers are having a hard time relocating into these smaller homes due to the rules that come along with condo living.

Most condominiums allow residents to have some sort of pets in their units; what type and size of pets they allow is up to the individual condo association. Some associations allow all and any pets. Some will allow one pet, some more. Some condos allow a small dog under a certain weight; many allow one or two indoor cats. Most condo associations allow small caged pets like gerbils, hamsters, fish, and reptiles. But don't assume that any particular condo complex allows any pets at all.

What happens if your condo association finds out that you're harbouring a pet against their regulations will depend on the individual bylaws for your complex. Consequences generally range from fines and having to get rid of the pet, to lawsuits over breach of contract. Renters harboring illicit pets are often evicted if the pet isn't removed immediately.

The best way to know exactly what a condo association actually allows is to get the most recent copy of the association bylaws so that you know exactly what the rules are. However, the bylaws won't let you know what the general feeling in the complex is about pets. It is in your best interest to sit in on a association meeting or two to get a better idea how the neighbourhood feels about pets. The last few months worth of meeting minutes can also help you get an idea of if there's any bad feelings harboured about dogs or cats in the complex even if they are allowed.

It's best to be aware that even in an area that allows pets, there can be some big problems going on with pets that you might not immediately see. If neighbours are upset about dog or cat feces in common areas or pets being allowed to roam free, there will be some hard feelings about pets in general in the complex; you may want to decide to not buy into this kind of environment.

Since most pet owners look to their pets as members of their family, you will want to buy into a condo complex that is at least tolerant of your furry friends. Unfortunately, not all prospective buyers do any inquiries into the association bylaws and end up with a home where their pet is not welcome. Don't let that happen to your pet; do the research first, before you buy.

Hazards of Living in a Golf Community

Thu, 01 Oct 2009 15:57:49 -0700

We’ve all seen the images – the rolling greens, with golfers enjoying the day in the peacefulness of Mother Nature’s finest work. Perhaps you already live on the perimeter of a course in a prominent golf community, or have had the pleasure of visiting friends who have bought their dream home on the green.

There are many benefits to this lifestyle. New courses and surrounding communities spring up around the country every year, much to the delight of the truly dedicated golfers and duffers alike.

However, with the tranquility and beauty come the hazards – and not the bunker and water type.

One woman who lived on a golf course gathered a considerable collection of errant golf balls that had made their way into her yard – all 1,800 of them! She carted them into the courtroom when she sued the course for damage to her home and car. Even the people working on her landscaping had to wear hard hats for protection.

In this case, the court ruled that golfers wandering through yards to find their balls, and the balls themselves, were trespassing. A settlement was reached and the golf course agreed to shorten the 9th hole, which would keep the woman’s home out of the line of fire.

This is not always the result as most courts rule that homeowners assume risk when they move next to a golf course. There are several ways to educate yourself when making the decision to purchase a home link-side.

1. Do you love the course you will be living beside? Play it a few times before you buy to make sure you won’t be bored after only a few months.

2. Are your neighbors the type of people you will enjoy socializing with? Spend time in the clubhouse or attend functions to meet the locals and get hints about your new home territory. Will you get involved with the community’s associations and event planning?

3. Will the mandatory fees break your budget? There are several common fees associated with golf communities, including membership, social club, homeowners association and food purchases. Just like other strata living situations, special assessments may arise, from minor repairs to major renovations.

4. Will noises bother you over time? There is a reason golf courses look so good – the constant maintenance from grounds personnel, including mowers at the break of dawn and sprinklers in the evening. Then there is the occasional blue streak cursing from frustrated golfers playing near your yard.

5. Can you live with the rules and regulations? Check out the fine print in the contract you’re signing. Is the community pet friendly? Will your color scheme and outdoor decorating plans clash with the status quo of the neighborhood? Can you have guests, and where can they park?

6. If golf balls show up regularly in your yard, will you happily collect them or feel the anger growing? Dodging the occasional ball is par for the course (no pun intended) when buying a home in a golf environment.

On the up side, most golf communities are prestigious and offer a relaxing and enjoyable lifestyle. You may even be a part of the club that hosts the next great tournament and be able to rub elbows with golf superstars. If you are lucky enough to live beside one of the greens, you will have front row seats to tournaments that come through your town.

Living in a golf community is the dream for many active retirees, and there are plenty of options to choose from. It pays in the long run to do your due diligence to make sure that your swing (decision) won’t cost you a stroke or two in your game of life.