Creating Your First Home Together
Filed Under Buying, First Time Buyers, Questions, Selling · Tagged: buy homes calgary, buying calgary homes, dating, engaged, First home, marriage, moving in together, new home, Sell Home Calgary
Moving in together is an exciting time as you and your partner take the next step in your relationship. Below is a seven step process that will ensure you and your partner are as happy with your new home as you are with each other.
Step 1: Deciding what type of home to buy. Choosing a type or style of home has a lot to do with lifestyle, it involves location, the amount of space required, and the amount of time you want to put into maintenance or renovations. Before you begin to look for a home, spend the evening together each making a list of needed features in your new house. Ensure that your lists are separate.
Step 2: Talk through the differences – once your lists are complete come together and compare notes so that you come up with your ideal home. It is important that you discuss the different expectations that you both have of your new home so that you come up with an image of an ideal house that you are both satisfied with.
Step 3: Can you afford it? Before you start to look for your new home make an appointment with a mortgage broker or banker to review your collaborative financial situation. Based on this evaluation they will indicate the maximum mortgage you will be approved. Ensure that you factor in your other monthly expense and your overall financial plan so that you don’t overspend on your new home.
Tip: Hold Off! Before you buy, hold off on getting a car loan or making any furniture purchases, as any big expenditures on credit will reduce your buying power and hurt your credit score.
Step 4: Ready! Once you have completed your due diligence, call a real estate professional that is a Buyers Specialist to represent you in your home purchase. This agent will work on your behalf to find properties, arrange showings, monitor the market, and connect you with mortgage brokers. The agent will also work on your behalf to negotiate the best price and terms.
Tip: A Buyers Specialist is Free. There is no cost to you to use a Real Estate Professional that is a Buyers Specialist, as the seller is responsible for the fee.
Step 5: Watch the Market- if you are interested in current market updates visit www.thecalgaryrealestateblog.com
Step 6: Ugh… packing- packing and moving can be stressful and time consuming. Before you move, make sure that you sort through your own items to eliminate duplicates; have your partner do the same. This will reduce the hassle of moving unnecessary items and will make moving day a more enjoyable process.
Step 7: Kick up your Feet and Relax –you have moved into your new home. Take time to enjoy living with your partner.
If you feel overwhelmed about buying or selling a house please e-mail Jared & Rebecca from The Chamberlain Group Sales@tcgroup.ca or visit us on-line at www.chamberlaingroup.ca
To Build or To Buy
Filed Under Buying, New Homes, Real Estate Videos, Video Blog · Tagged: build new home, build vs resale, buy home calgary, Calgary Show Homes, Sell Home Calgary, show home
Many times we have been asked the question is it better to build a new home or is it better to buy a resale home. To us it doesn’t make a huge difference as we are able to help you out in both situations. There are some things that you should consider before making your choice.
Real Property Reports
Filed Under Buying, Real Estate General, Selling · Tagged: city of calgary, land use bylaw, Real Property Reports, rpr
We received a letter from one of the lawyers that we work with that had some great info on Real Property Reports, and thought that it would be good to post this here for all to see.
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Whenever a property is bought or sold a Real Property Report (RPR) can be one of the most important components of the transaction. An RPR is a legal survey of the property, done by any Alberta land surveyor, showing its size and relation to the properties around it including neighboring properties, sidewalks and streets and other structures. The RPR also contains a survey of any permanent structures on (or sometimes near) the property, such as buildings, decks, fences, sidewalks, patios, garages, etc. The purpose of the RPR is to show compliance of the property and its buildings with the appropriate municipal bylaws. The RPR is usually a large piece of paper with two stamps affixed showing compliance, one in red (surveyor stamp) and one in blue (municipal stamp of compliance for The City of Calgary as an example). A RPR in Calgary typically cost more than $550.00.
A RPR does not have to be done every time a sale or purchase is made. If a property has an existing RPR showing compliance it may be acceptable if two conditions are met: that no structures have been substantially modified (added or removed) and second, that the bylaws pertaining to the property have not changed. A common scenario is that an RPR will exist for a property but the owners have since added a deck or a fence or some other structure. This would usually necessitate a new or updated RPR. Occasionally, bylaws will change and this may affect the status of an RPR. For example, bylaws concerning window wells and their distance from the property line have recently changed in Calgary creating noncompliance for some properties.
There are a number of regulations concerning the location of structures on a property in relation to the property line, for example, with the City of Calgary, the foundation wall of the sides of a house must be 1.2 metres or more from the side yard property line. These regulations can be quite detailed, for example, the City of Calgary in most cases does not permit eaves or eaves-troughs to extend onto the neighbor’s or the city’s land. It is quite common, especially on irregularly shaped lots, that fences will not be properly placed in relation to the property line. If a structure does not comply with the property line and encroaches onto the city property or onto a neighbor’s land, an encroachment agreement can be applied for. Depending upon the situation, a fee is paid to the City of Calgary (typically from $50.00-$525.00) and an Encroachment Agreement is made (or Relaxation Permit granted). An Encroachment Agreement is registered with Alberta land titles and applies for the lifetime of the particular structure in question (the structure cannot be rebuilt or replaced in the future). In some cases, the City of Calgary may not agree to an encroachment and may insist that the structure in question be made to comply. This may involve modification or removal of the structure and this can be a costly proposition.
Sellers of properties usually are required to initial a clause stating that the property is free of encroachments or that appropriate Encroachment Agreements are in place. A current RPR can protect sellers from future legal liabilities that may arise if encroachment issues are subsequently revealed. Buyers need to be aware of any potential encroachment issues as if they agree to buy property that is not in compliance they may inherit these issues and become legally and financially responsible to correct any encroachment issues. In terms of removal of a deck or sidewalk or driveway this can be expensive. Such issues may also arise when a bank considers a mortgage or a mortgage renewal for a property.
Other compliance issues may relate to satisfying the City of Calgary’s Land Use Bylaw (LUB). This document regulates and controls the use and development of all land and buildings within the municipal boundaries. It defines the range of uses considered appropriate for any particular site and sets out basic rules for site and building design.
Normally, certificates of compliance will be required when buying or selling property in order to show that the property and structures meet municipal bylaws. A certificate of compliance is obtained from the City of Calgary (cost is presently $93.00). This is not a requirement of the city but is a requirement on a Residential Real Estate Purchase Contract you will sign with your realtor. If an existing structure does not meet regulations the compliance certificate will be refused along with directions to be followed to correct the situation.
Title insurance is also an option with closing your real estate purchase or sale, in addition to or in lieu of a RPR. Cases are individual and you should get legal advice prior to finalizing to ensure your interests are properly protected.
Thank you again for considering us!
Sincerely,
Sandra Tillier
Time Seems Right to Buy…
Filed Under Buying, Education, First Time Buyers, Investing, Listings, News Articles, Selling · Tagged: calgary, Calgary Market, Calgary Real Estate, real estate investing
Shaken consumer confidence due to the world economic crisis has clouded the fact that it’s a great time to buy, says a leading real estate investor.
“People need to be telescopic in their thinking, not microscopic,” says Don Campbell, president of the Real Estate Investment Network, which has more than 3,400 members across Canada.
“Look five to seven years from now. Eventually, oil is going to come back, albeit not super hot, but between $70 and $80 a barrel, which will do super well here and create jobs.”
Calgary is in a relatively good position, he says.
“Calgary has a fairly diverse economy, average incomes are strong, and unemployment is down,” says Campbell.
“There’s strong in-migration (of people to the city) and the government is starting to spend money on infrastructure, so it will create jobs. People are coming here for jobs, but staying for the lifestyle.”
However, in the meantime “we’re on an 18-month rollercoaster ride,” says Campbell.
The Calgary-based real estate expert recently updated his bestselling book, Real Estate Investing in Canada, Creating Wealth with the ACRE System.
Campbell says his system works no matter if it’s a buyers’ or sellers’ market.
“What it will do is stop you from buying dogs,” he says.
Campbell tracks trends in the various cities, including each area’s economic outlook, migration, politics and municipal plans.
His system helps potential buyers spot markets that are over-or under-priced; before it happens, shows buyers how to spot towns that will boom or bust; and helps people accurately analyze each property.
As an example, if you’re buying, “follow the transit tracks,” says Campbell. “That’s where real estate values are going to increase.”
Interest rates are currently at record lows — and he’s predicting they will drop further.
“I see a 25-to-50 basis point drop in rates in the next couple of months,” he says. A basis point is a hundredth of one per cent.
“Right now, you can lock in for five years at 4.37 per cent — take it,” he says.
If you’re selling, “the important part is to not hope for the market of 18 months ago when you’re setting your sale price,” says Campbell.
“Be realistic. Think about it: today, there is a lot of competition — but there are buyers out there. Price it right and work on curb appeal.”
article from Calgary Herald
The Future of Home Buyers in Alberta
Filed Under Buying, Calgary News Articles, Recession in Canada, Selling · Tagged: home buyer, home buyers, RBC
Below is an article that was done in The Calgary Herald today. It talks about a report done on Home Ownership by RBC (Here is the link for the full report).
To summarize:
- 72% of Albertans believe it’s a buyer’s market
- 57% of Albertans believe it makes more sense to wait until next year to buy
- 86% of those polled in Alberta said buying a home is a good or very good investment (highest in the country)
- 39% of those that will buy, say they will because the price look attractive.
- 17% cited the need for a larger home
- 71% said they plan to purchase resale and of those 63% will opt for a detached home.
Home-buying intentions in Alberta have rebounded and are back to 2007 levels, according to an RBC home ownership survey released Wednesday.
The survey found that 35 per cent of Albertans are likely to purchase a home within the next two years, well above the national average of 27 per cent and up from 29 per cent in 2008.
“Home-purchase intentions in Alberta have not only shown big gains over last year, they also remain higher than any other region in the country,” said Don Peard, vice-president for RBC mortgage specialists. “More favourable mortgage rates and home prices may in part explain this increase, and Albertans still believe firmly in the long-term value of a home.”
The survey, conducted by Ipsos Reid, found that a large majority (72 per cent) believe it is a buyer’s market. Given current housing prices and economic conditions, most Albertans (57 per cent) believe it makes more sense to wait until next year to buy.
According to the survey, 86 per cent of those polled in Alberta said buying a home is a good or very good investment — the largest percentage in Canada.
Among those who plan to purchase this year or next, 39 per cent said they will do so because housing prices look attractive. Seventeen per cent cited the need for a larger home, and another 16 per cent said they will purchase because their current home does not meet their needs.
Seventy-one per cent said they plan to purchase resale and most (63 per cent) will opt for a detached house.
This news comes a few days after the Calgary Real Estate Board released its February MLS numbers showing activity in Calgary’s resale housing market picked up last month from a dismal January and average house prices stabilized.
There were 825 single-family home sales in February with an average MLS sale price of $415,568. Sales were up 50 per cent from the previous month, but down 34 per cent from February 2008. The average sale price was up just under one per cent from the previous month, but down nearly 12 per cent from a year ago.
In t he condominium market, there were 343 sales for the month of February at an average price of $268,971. Sales were up 52 per cent from January, but off by 39 per cent from February 2008. The average sale price decreased by less than one per cent from the previous month and was down nearly 14 per cent from a year ago.
In releasing the data earlier in the week, real estate board president Bonnie Wegerich said, “Undoubtedly, the global economic downturn has battered consumer confidence. But there are promising signs we are moving toward a more balanced and stable market. Sales are making some modest gains this month, prices are stabilizing and our inventory absorption rate is improving.”
Dan Sumner, economist with ATB Financial in Calgary, said the market is showing some signs of life.
“MLS home sales jumped to 1,431 units in February from 949 units in January. As a result, the inventoryto-sales ratio is returning toward a more balanced market with a ratio of 6.9, after peaking at 11.0 in December,” said Sumner.
Is Real Estate Spring Upon Us?
Filed Under Buying, Calgary Forecast, Real Estate General, Real Estate Seasons, Selling · Tagged: Calgary Forecast, Calgary Real Estate, chamberlain group, re/max
As you may or may not be aware of, there is a cycle that happens in the Real Estate Market each year. Spring, Summer, Fall and of course Winter. Just as you experience different seasons throughout the year, the Real Estate Market also experiences different seasons through the year.
In the Summer months, it tends to be slower as potential buyers and sellers are off prancing in the sun and on holidays. During the fall, we see a rise in the number of sales and typically this is good time to try selling your home. Then we have Winter. This usually happens from December through to February where again, buyers and sellers are staying indoors, because our Canadian winters are so cold! And during these months there are some days where I will sit and rip styrofoam cups to speed up the global warming process… but it never works, and I wouldn’t suggest it, as it gets really messy too. Rebecca’s not happy with me when I try this.
Then we have Spring. This is usually the best time of year to sell your home, as many buyers come out of hibernating, and are looking for a new nest. Over the past year, in 2008 and even into 2007, we haven’t really seen any normal cycles. Will this year be different? We are starting to feel a buzz out in the market place with many buyers, and first time buyers coming out of hibernation and starting to look for a new home. Only time will tell if we will have a ‘normal’ spring season.
The Real Estate Market is Prime for First Time Home Buyers
Filed Under Buying, First Time Buyers, Listings, Selling · Tagged: Calgary Real Estate Market, first-time buyers
They’re back… — but if they’re not, they should be. A few years ago, before diminishing affordability sent them scurrying to the sidelines to continue to share accommodation or hang out at their parents’ homes, first-time buyers were a force to be reckoned with.
If they had full-time jobs and could muster together five per cent of the value of a home for a down payment, they were in.
They were the starting point that set the whole chain reaction in motion.
They would buy a resale home and the sellers would move to something else, and those sellers — well, you get the idea.
I recall a housing seminar that strongly suggested first-time buyers were accountable for something like 35 per cent of all homes sold in Calgary.
Then, prices started to jump. Homes were selling in a matter of hours at above asking prices.
Multiple offers forced many potential purchasers to bail because their budgets just weren’t high enough to compete.
Sellers, meanwhile, were reaping the benefit of being behind the steering wheel.
Well, things have turned. Firsttime buyers are back in the game, if they want to be.
Sellers are having to bring their asking prices back to more realistic levels to attract an anxious, but cautious, pool of buyers who know they now have more say over what happens in the marketplace.
At the same time, though, jobs are being lost in some sectors, salaries are likely being frozen, and consumer confidence has taken a hit. While there is some pent-up demand for homes, the buyer pool has gotten shallower. Sellers have to realize this.
There also seems to be a new emphasis on quality now that the market has somewhat calmed.
Bill Bobyk, general manager of the Sterling Group of Companies, says there are two basic reasons people should be buying: “very good” prices and attractive mortgage rates.
Another factor to consider is that “because this is not the market to be flipping homes, people should be buying with the intention of living in them for a few years,” he says. “Buy them because they can be homes, not a shortterm investment.”
Another thing to remember are the tax breaks for buyers and home renovators in February’s federal budget, presented by finance minister Jim Flaherty.
“The federal government’s recent budget has added more reasons for Canadians who aren’t yet homeowners to consider entering the real estate market this year,” says Gary Siegle, Calgary-based regional manager for mortgage brokerage Invis. “For those who are feeling secure about their income and want to take advantage of low rates and a more affordable market, the budget provisions could make an enormous difference in terms of the properties they can afford.”
Homebuyers can now withdraw up to $25,000— up from $20,000 — from their RRSPs as a down payment under the Home Buyers Plan.
Secondly, they can qualify for a $750 tax credit to help them pay for closing costs, such as appraisal or legal fees.
“We are now seeing more firsttime buyers seriously considering making the jump this spring into ownership,” says Siegle.
In this type of market, there is room to negotiate with sellers on prices as well as any other terms set out in the listing, such as possession date, appliances being added, and home inspections.
There are plenty of homes to choose from, so don’t rush things.
Original Article from Calgary Herald:
MARTY HOPE
Calgary Herald
28 Feb 2009
Vacant Condos Create Unease in Calgary Market
Filed Under Buying, Condos, Developers, Listings, New Homes, Selling, calgary condos · Tagged: Calgary Real Estate, Condominiums, condos in calgary, Developers, new condo, vacant condos
“Many buildings in Calgary began construction with less than 50 per cent of the units pre-sold,” said the Altus Group Economic Consulting report.
There are indicators of a “much more serious problem for Calgary,” said the Altus Group. Those indicators include a high level of condominium starts in 2008 (5,335 units) and a high level of condos under construction. The pace of condo starts has also declined “dramatically” since the end of July, but “very few projects in Calgary have been formally cancelled so far.”
The biggest cancellation was the two-tower downtown project known as Gateway Midtown.
“Excessive investor activity has also been a concern in Calgary,” said the Altus Group report. “While the percentage of condominium apartment units offered for rent declined in Calgary between 2007 and 2008, the vacancy rate rose significantly from 0.7 per cent to 3.5 per cent.”
The report said there is “clearly a large oversupply of product” in Calgary and “more project cancellations would help move the market back into balance more quickly.”
One of the reasons overbuilding tends to happen in a number of markets is due to the difference in construction times between single-family homes and condos, said Robert Feldgaier, senior director with Altus Group.
“With ground-related housing, it’s a lot easier to adjust construction to changing market conditions, whereas with the lead time for apartment construction and the actual time to build a building, depending on the market, there’s a significantly longer lag in adjusting to the market conditions,” said Feldgaier.
In Calgary, most of the projects that have been on the market have proceeded to construction even if they haven’t achieved even half of the units being sold, he said, adding “there’s not likely to be too many new projects starting this year.”
The lower level of multi-family starts in Calgary has been a trend since the middle part of last year, said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp. The number of condos under construction hit a peak, and record, of 10,746 units in Calgary in May 2008, he said. Last month, that number had dropped to 7,351 units.
Louie said the percentage of condos absorbed, or moved into, at completion in January was 82.5 per cent. In September, the percentage was 100 per cent.
Also, in the resale market the CMHC tracks new and vacant listings. In January, 8.1 per cent of condos on the resale market were new and vacant. In November, it was 9.5 per cent, said Louie.
He said there were only nine condominium starts in January and for the City of Calgary there were zero apartment building permit applications for the month.
The Altus Group report said that with mortgage rates already near historic lows, unlike the last recession, “developers need to ensure that their product is priced appropriately since affordability will be key to attracting buyers.”
“Developers should look for opportunities to target younger owner-occupant buyers seeking attractively priced product as well as empty nesters in neighbourhoods where there may still be relatively few projects from which to choose,” said the report.
Click on Image above to view original source from The Calgary Herald
RRSP’s and First Time Buyers
Filed Under Buying, Mortgages · Tagged: Calgary Real Estate, Calgary Real Estate Market, RRSP, RRSP Investment, RRSP Takeout
Q. Over the past four years, my wife and I have contributed to our RRSPs. Soon, we plan to purchase our first home. Is this a good time to buy or should we wait another year or two? Can we withdraw the maximum $20,000 under the Home Buyer’s Plan?
– Sondeep
A. The Canadian real estate market continues to show sale and price declines. Although most experts do not expect a U.S.-style meltdown, a significant price reduction is expected. Regardless of which province in that you live, real estate agents advise sellers “realistic pricing is key to selling your home.” If you plan to live in the home, real estate will always be a good investment.
See Latest Calgary Market Update Here
Our federal and provincial government has made several initiatives to stimulate the economy and the housing sector. Many recent changes in the federal budget are excellent incentives for all homeowners and first-time buyers.
First-Time Home Buyers:
• New-increase! The RRSP Home Buyers Plan withdrawal limits per individual have increased to $25,000 from $20,000, effective Jan. 27, 2009.
• New-tax credit! After Jan. 27, 2009, homebuyers that have not owned a home in the current year or four preceding years may qualify for a $5,000 non-refundable tax credit.
Existing Homeowners:
• New-Renovations! Families that undertake renovations or alterations between Jan. 27, 2009 and Feb. 1, 2010 to their principal residence may qualify for a 15 per cent non-refundable tax credit. Cost of renovations must be greater than $1,000 and up to $10,000.
These are giveaways, check with your tax adviser/accountant.
Original Article Here by- Henry Choo Chong
Purchasing a Home: 5 Things To Consider
Filed Under Buying · Tagged: 5 steps in buying a home, Alberta, buy a home, buying a home, Calgary Real Estate, calgary real estate blog, home buyer
While buying a home is a stimulating feat in life, it is for sure not something you want to rush into. It is going to be one of the most expensive purchases you will make in your life. This is the reason why you will have to take the time to study all the alternatives available on the market.
Below are 5 important elements to know purchasing a home.
1. Clean your credit record
Paying an amount big enough to finance a home is something a lot of of us cannot afford right on the spot. Because of this, asking for a loan is essential for most people. You will need to make sure your credit record is as clean as possible so that you will be accepted. It is advised that you get copies of your credit report several months before you start shopping for a house so you know what to expect. Try to get your credit rating above the 600-650 range according to FICO scores. Anything above these values, you should be able to get approved for a new mortgage.
2. Stay within your price range
Because of the current economical situation, there are so many homes on the marketplace to choose from that it can be difficult to find the ideal one for you. However, it is crucial you stay within your financial limits and do not try to reach too far. It is not fun for anyone to be ‘house poor’.
3. A home in a school district
If you have children, you will for sure want to purchase a home within a specific school zone. However, it can be a good idea to purchase a home in a school zone even if you do not have kids. The reason for this is because strong school districts are a top priority for a lot of people who are looking for a home to purchase. Buying a home in a school district will allow you to make a substantial profit when you will sell it.
4. Real estate agent
Buying a home is a hard task and you won’t probably have the time it takes to run here and there, visiting and comparing prices. It is therefore advisable to have a professional service that will provide you with a large selection of homes that are within your financial limits and have the qualities you are looking for.
5. Hire a Home Inspector / Condo Doc Inspector
It is best when you purchase a home or condo to have a home / condo doc Inspection. This does cost apx $400 upfront, but is worth it. They are able to find problems in your home or documents that you may not be able to do so without them, and potentially save you more money
There are different things you will have to consider prior to buying a home. Since this is the potentially the biggest step in your life, this is for sure not something you want to make a rash decision on. Remember the five tips listed in this article the next time you go looking for home.
