The Calgary Real Estate Blog » First Time Buyers

Is It Better To Be A Home Owner vs. A Renter For Taxes

Jared Chamberlain — Sat, 01 May 2010 20:41:33 +0000

Jared Chamberlain video blogs about being a home owner versus a renter in Calgary’s real estate market, specifically for tax purposes. Jared outlines the 3 reasons why it’s better to be a _____! Watch to see which is better. To leave a comment or if you don’t agree with what Jared is saying, please email him at jared@tcgroup.ca or head over to ChamberlainGroup.ca

Creating Your First Home Together

Rebecca Chamberlain — Tue, 09 Feb 2010 23:53:54 +0000

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

Sellers Can’t Move… Period!

Jared Chamberlain — Tue, 28 Apr 2009 13:48:50 +0000

We have been noticing a trend happening lately with the sellers that we have been dealing with. The number of listing presentations that we have done recently is very high… Many sellers, those who have purchased in the last 2-3 years, are having a difficult time versus those who purchased 3-4+ years back.

Of the sellers that have purchased 2-3 years back, some of them are wanting to upgrade their home, and some are even wanting do downsize… But here’s the thing… Majority of them can’t do either! With the market swinging the way it has over the last year, prices have gone back to the values of early 2007. The sellers don’t have enough equity in their homes to make either move. It’s hard to see the ones who are wanting to downsize, as their payments are a bit high for them currently, but they simply can’t. Those who are venturing to sell, they are selling $30,000 – $50,000 below what they paid for the home, and in some cases even more.

What will this mean? I think we will see condo prices and sales increase over the coming months, as their are many and I mean MANY new buyers now buying. But the upper end single family homes, we will probably not see as great of an increase for some of the reasons above…

What are your thoughts?

Time Seems Right to Buy…

Jared Chamberlain — Mon, 09 Mar 2009 15:18:55 +0000

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 Real Estate Market is Prime for First Time Home Buyers

Jared Chamberlain — Mon, 02 Mar 2009 16:05:36 +0000

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