Mississauga Real Estate Blog

Interest Rates Down for the Next 14 Months

Todd Slater — Fri, 24 Apr 2009 19:25:58 +0000

So here is some good news. The Bank of Canada announced this week that interest rates will remain low for the next 14 months. So we are at historical lows and prices are more attractive then in the last few years. This is all very good news, but why do most people remain on the fence. Simple, we don’t trust the media or the government to tell us the truth. So folks do the math. You can lock in a 5 year mortgage in around 3.5 percent and lower if you have an open variable. So don’t be afraid if you see a deal or if you want to start buying investment properties. Do you homework and take advantage of these interest rates while you can. We may never see them this low again.

Talk to you soon.

Todd

More TAXES! What are they thinking?

Todd Slater — Wed, 01 Apr 2009 15:44:05 +0000

Has anyone looked up the definition of HARMONY and of course HARMONIZATION. Well with the latest brain storm of our government perhaps they should look up the meaning of DEPRESSION or perhaps FINANCIAL RUIN. This is by far one of the stupidest things they could possibly do right now and of course they think that it will help. HELLO!

So in their infinite wisdom they believe that adding taxes to services that are already struggling in a questionable economy is the solution. Also new home sales over $400,000. OK, so let’s tax the one thing to death that has kept Canada in the lead in the world economy, Real Estate. Wow, they are genuises! So let’s make it harder and more expensive for everyone to secure the most stable thing our economy has going for it, but in the mean time you want to bail every poorly run corporation out so they can make the same mistake again.

As a self employed average consumer I am insulted by this and keep wondering what it really takes to be a government official. I am sure that since they want to make it hard on everyone else, they are willing to take a pay cut, you know, just to show us they really care. HA! So my advice, start buying Real Estate and make some money on it before it costs more then just tax dollars.

Talk to you soon

TCS

If Realtors worked for AIG.

Todd Slater — Mon, 23 Mar 2009 19:02:38 +0000

Wow, I have to tell you, listening to the news lately can be saddening as well as frustrating. Let me pick on some of the top executives for a minute. Are any of you for real! The market is crashing the world economy is down the drain, but you think you should still get your million dollar bonuses. Ok, so if you feel that is fair, then perhaps if any of you that have your mansion for sale or perhaps the penthouse in the city, you should pay your Real Estate agent up front. After all, you believe you should get paid even if a company takes a huge loss and you consider that you still did your job.

Now I understand that some of you had contracts and perhaps this is your last chance of really cashing in on what was once your perceived value, but your companies are borrowing tax payers money to pay huge bonuses. Why not set it up for a long term payout so at least the money can be used to guarantee the future of the company. Your sacrifice now may be the smartest thing you can do for yourselves and the future.

As far as any buyers in the market for these homes, if you run across some of these people, offer them half the price of the home. They have plenty!!

Talk to you soon.

Todd

Mississauga Real Estate is still GOOD!

Todd Slater — Thu, 19 Mar 2009 21:40:24 +0000

No I am not crazy, the real estate market still has a heart beat in Mississauga. I know we hear all sorts of doom and gloom out there, but Real Estate in Mississauga is still selling. Now let’s not get ahead of ourselves either. Prices are not going up, but they are not coming down much either. Yes there has been an adjustment, but what did we all expect. Now I have to tell you, last week I sold a home in the Erin Mills area for the highest sale price ever for a model like this and it was in the $600,000 price range. So there still are buyers out there looking for the right home.

Also one piece of advice, in a market like this homes are taking longer to sell, so if you are on the market for a few months, don’t be surprised. Some buyers are looking at a home 3 to 4 times before putting an offer in. You just have to be patient!

Talk to you soon

Todd

ps. by the way, there may be some really good real estate deals coming out soon. All the AIG executives might have pay back their bonuses, so the big homes will have to go. LOL

Beware of Mortgage short falls.

Todd Slater — Thu, 12 Mar 2009 18:25:00 +0000

It is the sign of the times. Even here in Canada, homes are over leveraged and when you go to buy them the sale price may not be enough to pay off the outstanding debt on the home. So folks, when you are buying a home and your agent does their home work, make sure they check back on what the home seller originally paid as well if they have to, ask the listing agent if there is enough funds to pay outstanding liens.

The last thing you want to do is have your heart set on a purchase of a home that cannot close because there is not enough money and to book the move and pick out the new drapes only to find out on the day of closing that it is not going to happen. If you need to, have your agent put in a clause in the offer that the home owner warrants that there is sufficient funds from the sale price to satisfy all debts.

It is always better to know up front instead of on the driveway with a moving truck loaded with all of your belongings on the day of closing.

Talk to you soon.

Todd

Attention First time buyers, You could save the World!

Todd Slater — Wed, 11 Mar 2009 16:44:41 +0000

So, the papers and economists are finally listening……to what I have always said. This is not a ego driven comment, but one that makes common sense. In Real Estate, we have always known that if you have a strong first time buyer market, all the other price ranges start to fall into place. If 60 to 70 percent of all Real estate transactions happen below $400000 and then another 25 to 35 percent happen in the $400000 to $700000 price range and finally 5 to 10 percent are done in the higher range. Now this is typical in a normal market. So what happens when the market goes down……….simple, the lower price range is what people can afford and this becomes the most attractive to buy.

So I get that the governments are trying to get the economy back on track, but if they truly want Real Estate to recover, they need to focus more on the first time buyers and sellers and give them the tax breaks and incentives. They could be the ones to save the Real Estate markets and help get the economy going.

By the way, my team and I love working with first time buyers and watch for our new seminars to help educate everyone on buying their first home.

Talk to you soon.

Todd

Interest Rates Drop again, what are you waiting for ?

Todd Slater — Mon, 09 Mar 2009 16:34:06 +0000

So what do you think ? Interest rates drop again, prices are down, so what are you waiting for. Here is the thing, some of you may be saying, “sure Todd, you just want to make a sale, why should we buy now, prices can still go down.” The truth is you could be right, but then again if interest rates start going up in the next 6 months to 1 year, then you might have missed one of the greatest opportunities.

My advice is simple, if you are a first time buyer and you have the down payment saved and you are renting, then it is time to get into the market. The current interest rates are so good that you will be paying down the mortgage in less time. Keep one thing in mind though. When you get your approval for a mortgage amount, consider what it would cost to carry if the rates were 5 to 6 percent. These record low rates will not be like this forever and you are better to buy something that you can afford if rates to go up. Always think long term and your real estate investments will always pay off.

For all of you would be investors, remember in a down turn market, rentals become more attractive and the chances of getting better tenants increase. So take your time and find a good property, maybe with more then one income and get started.

A quick story……..and I will try not to bore you.

On the news the other day they said if you had invested in the DOW 10 years ago, so 1999, $10 000 and re invested all the dividends, it would be worth $9000 today. Ok that is brutal. My clients that I sold into homes 10 years ago with 10k down, so they put 5 percent down and bought a $200 000 home are now worth over $ 300 000 and they have also paid off some of the mortgage while living there or while renting it out and having others pay down the mortgage.

So yes, I am a Realtor, but the best investment still is REAL ESTATE.

Talk to you soon.

Todd

CNN, NBC, Dateline, Nightline, who will get 2009 RIGHT!

Todd Slater — Tue, 06 Jan 2009 23:19:41 +0000

Wow, have you ever been on sensory overload. With all of the predictions flying around in regards to 2009, will somebody finally get it right.

I have to say that some of the decline in the housing market is a direct result of media hype. Yes you heard me….The MEDIA. As Canadian’s we are blanketed by the United States media. Of course our natural presumption is if it happens in the US, it will happen here. In most cases this is true, but housing, come on! We have not taken on the same level of mortgage debt and we are not crazily putting on debt of a 150 % of our values, so why the buy in?

Negative press and media from any place in the world if heard enough will eventually make people believe it can happen to them. So let’s think about this for a minute and don’t worry I am not looking at this with rosey glasses. The whole auto sector meltdown is huge as well as the stock market, but let me discuss what I deal with every day as well as feature on my television show Realty Tv. Canadian Real Estate and today’s buying and selling trends.

Right now we are seeing a bit of a decline in prices, but the truth is this was to be expected. Real estate historically goes on 10 to 14 year cycles and we were due or even past due. The thing that is helping right now is interest rates. How can you beat these rates between 4 and 5 %. So yes we are going to see a down turn, but that does not mean you should stop investing in Real estate. Of course not and I am not saying that because I make a living selling Real Estate. The facts are, investment properties have never been so easy to carry with low interest rates and a increased number of renters and new immigrants as well as some lower prices.

Here is one concern, TIMING! Folks, homes are not going to sell as quickly as they have been so you need to be prepared in advance. If you have already bought and you have a closing, you should start putting the home on the market at least 6 months in advance. Give yourself time to get the home sold. Also you need to forget about the prices in 2007. Worry about today and get the maximum dollar in today’s market. If you have not bought yet, then make sure you get your home sold first, with a longer closing so you can have time to find the right home for you.

I could preach buy, buy buy! but that would be opposite to what Randolph was saying from the movie Trading Places…sell, sell, sell! So what do you do? Simple! Both. There will be opportunities to do both. If you want to make money in Real Estate, timing is everything. So I will try to keep you up to date on when to buy and sell. There is going to be some good deals coming soon so get ready!

Talk to you soon

TCS

The New year is here and what will 2009 bring.

Todd Slater — Mon, 29 Dec 2008 19:35:03 +0000

It is funny, this time last year I was not as excited about the New Year as I am this year. For a lot of you, this year can be a year of opportunity. First time home buyers should be rejoicing about the current market. Low low interest rates and prices softening, wow, this is definitely your year. Also you would be investors who have been sitting on the fence, well it is time to jump down and take that step to financial success.

I do have a question for you, why is it that the wealthiest Real Estate owners in the world are starting to buy up properties? Is it perhaps they know something others do not. Low interest rates and prices help investment properties carry with very little down. So why not let someone else pay your mortgage down and then reap the benefits when prices bounce back. Gee! Now I could make a smart remark like ” It isn’t rocket science”, but in all fairness it is scary to dive into a market that perhaps you have not been in before.

So here is a solution. First do lots of homework. Figure out the costs to the penny and see if it is something you can do. If you need some advice, email me, call me and I will take you through the steps. This could be your year so don’t miss out on a great opportunity.

Talk to you soon.

TCS

CMHC takes 40 and makes it 35.

Todd Slater — Thu, 10 Jul 2008 15:20:56 +0000

Well, if you have not heard the news, Canada Mortgage and Housing, the government run mortgage insurer announced it will be cutting back the 40 year amortization mortgage to 35. Also in the announcement is the fact that you must have 5% down instead of 0%.

This is not a bad thing when you look at the overall picture of the market. Right now our neighbours to the south are suffering a major market adjustment. By the time the US finally starts to recover, they could be looking at Real Estate worth half of what it once was. So why is this.

1. Anyone with a heart beat could get a mortgage. In fact I am sure there was a few given to those that are no longer living as well.

2. You can actually get more money then your home is worth. Home is worth 200k and debt was 300k. It is funny as well as ridiculous all in the same breath. The question I have, why bother paying it off when your value goes down so low and you owe so much.

3. The interest on these loans is tax deductible. I am sorry Mr. Bush. How much is the country in debt?

4. There is over 1 million foreclosures, yup, 1 000 000 powers of sale. Now for all you bargain hunters, that truly is the place to get a deal.

So what is CMHC really saying. Simple, put up a little, not a lot of your own money so you the buyer has an invested interest in the property and actually work on paying the debt off. Chances are you will fight a little harder to keep your home instead of running away at the first sign of stress.

So is this going to slow down all the first time buyers in the market. It might in the short term, but this also gives you a chance to set a goal and save that 5 percent. I can guarantee that once you do that you will truly feel different about the home you are buying.

Talk to you soon.

Todd