Blog.ByTheOwner.com

At midnight on Saturday October 29th, we will be moving our clocks back one hour. This is a good time of year to change the batteries in your smoke detectors and to check other security devices around the house.

You might also want to have your chemical and fire extinguishers verified. To do so, follow the instructions indicated on them and then complete a test. You can fill them up if needed and note the date of verification on the canister.

We should all have at least one extinguisher in a secure place known by all family members. If your family doesn’t have one, you should consider purchasing one, it’s a minor investment for your security.

Where to place smoke detectors and extinguishers?

You should have at least one smoke detector per floor in your home. You can place them on the ceiling near the stairs for example.

In an apartment, you should have at least two; one placed near the front entrance and the other located near the back entrance or exit.

The extinguisher should be placed in a secure location near the kitchen or the garage.

Everyone should make a habit of regularly checking their security devices and smoke detectors for their own safety.

ollowing the purchase of a property, there are several types of fees that can be assumed by the purchaser. Unfortunately, for many buyers, these fees are unknown and are an unexpected expense that was not planned for in their budgets.Here is a list of some of those fees:

1. Title transfer tax

Also known as the ?welcome tax?. This is billed by the city where the property is purchased and is sent to you around 3 to 6 months after the lawyer has completed the transaction. This is an indirect tax that is imposed by the municipality in order to transfer the right of the property to their area.
In order to calculate this tax, we must first base it on the highest price between the purchase price and the municipal evaluation. Then from this amount, you need to separate according to the following categories:
$0 - $50,000 = .5% of the amount in this category
$50,000 - $250,000 = 1% of the amount in this category
$250,000 and more = 1.5% of the amount in this category
Finally, you add the amounts together that correspond to your tax.

For example: A property purchased at $280,000
$0 - $50,000 = 50,000 x 0.5% = $250
$50,000 - $250,000 = $200,000 x 1% = $2,000
$280,000 - $250,000 = $30,000 x 1.5% = $450

Add together: $250 + $2,000 + $450 = $2,700
2. CMHC insurance fees

This is payable at the same time as your mortgage payment and can be paid either at the bank or to the notary/lawyer. It is calculated by:

% of loan: Insurance prime
up to 65% 0.50% of mortgage
up to 75% 0.65% of mortgage
up to 80% 1.00% of mortgage
up to 85% 1.75% of mortgage
up to 90% 2.00% of mortgage
up to 95% 2.75% of mortgage
Example:
You purchase a property worth $200,000. If you give 5% down, or $10,000, your financial institution will insure the difference, or 95% of the loan. The insurance prime will then be $190,000 x 2.75%, $5,225 plus tax. This amount can then be added to your mortgage and the applicable taxes are paid to the lawyer/notary. This will mean that your mortgage will now be $195,225.

If you choose to put 20% down, or $40,000, the insurance prime will only be $1,600, 1% of $160,000. The total mortgage would then be $161,600.
3. CMHC inspection fees

The CMHC charges a fee to evaluate your new property and as a general rule of thumb, most financial institutions will cover this fee (normally $235) as part of a promotion.

4. Professional inspection fees

The price to have a professional conduct an inspection can vary between $500 and $1,500. This will allow them to inspect the property and make sure there are no hidden faults within the property. To help select a good home inspector, nothing is better than a friend?s referral.

5. Notary/Lawyer fees

Fees can vary between $500 and $1,500 and can be even higher in some instances, in depends on your personal situation. It is advised to consult around 2 to 4 companies before deciding on one. Once again, using the referrals of friends can help when selecting a notary/lawyer to work with.

6. Zoning certificate

The certificate will indicate the total area of your land as well as the registry number. If the property does not conform to any new laws, it is the seller that will assume any fees. These can be from around $500 plus tax.

7. Moving fees

These fees can vary depending on what time of year you move, the amount of furniture you have and the total distance involved.

8. Fees for changing utilities

When moving you must pay to disconnect and/or transfer your existing utilities, such as the electricity, cable and telephone. These fees can vary from $100 to $250 for all three.
9. Property insurance

Before going to the notary/lawyer, you should insure your property against fire and other damage. These fees can vary depending on the value of your property, furniture, deductible, etc? Normally they will range between $200 and $1,500. It is once again advised to shop around before selecting a company in order to receive the best price.

10. Adjustments

When you go to the notary/lawyer you should expect some adjustments to the municipal and school taxes, as well as any applicable condo fees. The notary/lawyer will calculate this based on the date of possession and the date of payment for those fees. This will determine how much the buyer will have to reimburse the seller.

11. Heating fees

In regards to the oil reservoir, the seller should fill the reservoir the day of the meeting with the notary/lawyer. They need to bring a copy of the invoice as well as a copy of the last statement. This will assure that the reservoir is full when the buyers take possession. Or, at the time of certain transactions, if both parties agree, the seller can simply give the monetary amount.

In conclusion, it is strongly recommended to consult the following websites before buying a property.
ACAIQ ? www.acaiq.com
CMHC ? www.cmhc-schl.gc.ca
The ACAIQ provides two good guides for the buyer and the seller at a minimal cost of $2.50 plus tax and shipping/handling. Simply call them to order, it?s a good investment that will help you save in the end.

Below you will find a list to help you calculate the approximate costs and expenses involved in buying your new property.

1. Title transfer tax:  $
2. CMHC insurance fees: $
3. CMHC inspection fees: $
4. Professional inspection fees: $
5. Notary/Lawyer fees: $
6. Fee for editing of will (notary/lawyer): $
7. Zoning certificate: $
8. Moving fees: $
9. Fees for moving utilities: $
10. Home insurance: $
11. Adjustment of land taxes (municipal): $
12. Adjustment of school taxes: $
13. Adjustment of condo fees: $
14. Adjustment of loan interest: $
15. Adjustment of oil reserve: $
16. CMHC insurance tax: $
17. Renovations and repairs: $
18. Certificate of conformation for wells: $
19. Loan fees: $
20. Other: $

Other fees for a new home

21. GST and PST: $
22. Connecting of public services: $

www.bytheowner.com

In life, people generally want the biggest and most beautiful things in order to appear better to others. We can easily say that we live in a society of consumers. One of the bases of marketing is to create a need among people so that they are interested in your product and therefore purchase it.

When purchasing a home, you should complete the following important excercise to help define your actual needs. You should confirm how many bedrooms you want, do you want an office, do you really need a garage, fireplace, central air or a pool, etc…

You probably know at least one person that has purchased a property after their first visit because they were caught in the moment. However, they soon realize that they are actually missing needed space in the basement or that there is not enough room to add a second bathroom. Or, they might have realized that the home is too big and that certain rooms are not really necessary. During the visit it was a matter of, ‘Just in case we need it’. In the end, the purchase does not correspond to your real needs and becomes a bad investment.

When you start thinking about your needs, you need to consider the financial side as well. It does not make sense to purchase big and then live in the red in regards to your budget. You should be able to continue enjoying life after purchasing a home, enjoying a nice bottle of wine, taking a vacation and special treats. If you find that you are not able to do so, then purchasing a home might not correspond to your needs for the moment.

In order to correctly evaluate your financial standing, consult a financial advisor at your local financial institution. They will be able to help you determine what size of a monthly mortgage payment you can afford. You will then be able to shop for homes within the price range they have determined feasable for you. Ideally, you should look for something less than the maximum proposed so that you will have more freedom in your monthly budget and you will have liquid assets for unexpected events.

Since around 2000 the real estate market has changed from when you could purchase a home for ‘peanuts’ and less than the evaluation. The market is evolving.

What has provoked this market change? There are several different factors that can explain this new trend. For example, when there is a shortage of apartments this will then lead to an increase in rent prices. In turn, certain renters have realized that is better to buy a home and pay the same in mortgage payments as they were paying in monthly rent. Another factor involved were the low interest rates combined with high rent prices. Some buyers were able to negotiate an interest rate of 5% over 5 years with their financial institutions.

Will this latest real estate trend continue? Will this lead to consequences over the next few years? What impact will the recent inflation have on your rate of purchases? These are questions that everyone is asking themselves. In our opinion, there are negative consequences that can in turn have a positive effect on our economy. On the negative side, it is unimaginable that the market can and will continue in the same manner. For example, when you buy a home evaluated at $100,00 and you pay $200,000 including major repairs, like the roof and windows, you can’t expect to turn around and sell it at a profit.

Imagine if the interest rates rise to around 7% or 9% in 5 years, several people will not be able to pay their mortgages and will be forced to hand their keys over to the creditors. They will not be able to support this financial debt because they did not plan ahead for this particular scenario. In 5 years, those that have managed to save their money will be able to acquire these properties in foreclosure and at a good price. We hope that this scenario will not happen again as it did in the late 90’s. This is a hard lesson for those that lose their homes.

The best advice is to look ahead and plan for higher interest rates, this way you will not be caught off guard if and/or when this happens. If you do plan on purchasing a property in the next month or next few years, do not give up on your dream home. Simply be well prepared and make a purchase based on your needs and budget, otherwise it will cost your more in the end. If the property was meant be, you will get it, otherwise there is always another one waiting for you somewhere.

Now that you have decided to start looking for your first property to purchase, there is a lot of excitement in the air, however there is also a lot of nervousness. This is all normal.

The investment required to purcharse a property is probably the most important that we can make in life. It is essential to be well prepared.

Before starting your search, we suggest that you take some time to consider all the aspects involved, eliminating conflicts, misconceptions, loss of time and unexpected expenses.

Therefore, here are the principal questions to study before starting your search:

• What area to search?
• What are your needs?
• Why do you want to buy a property?
• What type of property are you looking for? (condo, bungalow, cottage, etc…)
• What do you want in your home? (garage, fireplace, etc…)
• Do you want a new or used home?
• Is it a short or long term purchase?
• What is your budget for purchasing a property?
• What are the expenses associated with purchasing a property?

The answers to these questions can change the direction of your search, however they are important to think about because they can make your search easier and help you to located good ads in the newspapers.

In regards to the question about your budget, the best person to help give you advice is located at your financial institution. Before starting your search, it is very important to meet with them. They will be able to establish a maximum loan amount after reviewing your financial information. Therefore, you will not lose your time looking at properties that are financially not possible at this time. This will allow you to also eliminate having misconceptions about what you can purchase. Howver, you should still be able to find the home of your dreams.

Another important point to keep in mind, if your financial advisor indicates your maximum loan amount is $150,000, you do not need to use this entire amount. You can find a home for $130,000. They have simply advised you of the maximum amount available.

You have to remember that the purchase of a house is an investment. This will allow you to enjoy and continue to profit from life. With confidence, who knows where you will end up!