Thursday, 11 May 2017

4 Reasons to Buy A House Today!

Home ownership will always be a part of the Canadian Dream. Owning your own house has countless advantages(educational, health, social) that far eclipse any economic impact. However, we want to look at some key economic advantages of home ownership in today’s post.Check out these 4 Reasons to Buy A House Today!

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report show that home ownership remains more affordable than renting with a traditional 25-year fixed rate mortgage in the largest cities in the Canada. Check out this article on rent vs buying here https://andrewweaver.ca/rent-vs-buying/

2. Being a Home owner "encourages" You to Save

According to SavingAdvice.com, home ownership is a great way to save. Their advice is quite simple:
“Home ownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Home ownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”

3. Tax Deductions and Home Ownership

According to the Tax Policy Center’s Briefing Book -“A citizen's guide to the fascinating (though often complex) elements of the federal Tax System” - there are several tax advantages to home ownership. Here are three:
  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Economists Predict House Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.
Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

Conclusion

Some are afraid that house values may have already peaked. Nonetheless, we believe that purchasing a house now will prove to be a sound financial decision for years to come. As Warren Buffet said, “When others are greedy, be fearful. When others are fearful, be greedy.”


Andrew Weaver
REALTOR®
"Your source for Wasaga Beach and surrounding area real estate."
705-331-2374
andrewweaver.ca


Friday, 5 May 2017

Consider Wasaga Beach For Your Next Cottage

Wasaga Beach has forever been the chosen retreat for neighboring Toronto residents because it lays claim to having longest fresh water beach in the world, but it did not officially become a town until January of 1974. Consequently, the community has continually increased -- from 12,419 permanent residents in 2001 to 15,029 when the 2006 census was conducted.
As the numbers continue to rise, Wasaga Beach has earned a reputation as one of the quickest growing regions in the country. The number of transactions and the extent of Wasaga Beach real estate sold is climbing dramatically -- especially since 2009 -- and new inhabitants are building houses as the demand for more seasonal structures is growing, and cottages and recreational properties are springing up along the popular water front. 
Residents and tourists alike are drawn to Wasaga Beach by the the fourteen kilometers of safe sandy public beaches that is also home to the Wasaga Beach Provincial Park, which was awarded the coveted Blue Flag designation for its endeavors to govern Wasaga's shoreline in accordance with international environmental guidelines. The area provides recreation all year round along the sandy beaches -- designated 1-6 (with 1 and 2 being the most busy) -- and during the spring and summer there are recreational activities such as beach volleyball or a game of Frisbee to be enjoyed by all. The same expanse of beach becomes a wintertime gathering point for sports buffs who come to snowmobile and snow shoe on the well-groomed trails.
Even though a major fire demolished seventy percent of the main drag, businesses and apartments -- as well as the pedestrian mall -- on November 30, 2007, Wasaga Beach growth has not stopped. Instead, the area is experiencing a big development boom with fabrication currently underway on a modern style beach front boardwalk with a plaza, eateries, and an all weather theme park attached to a monorail. To deal with the requirements of the burgeoning area, the area transit service, Georgian Coach Lines, has had to expand their routes twice since 2008 and offer service daily from 7AM to 7PM on an east-west loop through the town.
The growing availability of amenities and products in Wasaga Beach has helped push real estate sales up 65 percent in the first quarter of 2010 when compared to the same period last year. The month of March 2010 saw a substantial 50 percent rise which also had a positive affect on the adjacent Collingwood real estate sector. Even more encouraging were the price range increases, up to 172 percent in some regions of the Greater Toronto Area, with homes that were marketing for 300K moving into the 350K to 500K range. Although undoubtedly seasonal buyers make up much of the increase, it also appears to be due to the high-end estates in Wasaga Beach are becoming a sought after retirement choice for wealthier residents. But no doubt the general appeal of the Georgian Triangle 'quality of life' will keep attracting the attention in a wide range of home buyers who are drawn by the natural beauty of Wasaga Beach, but take pleasure in the convenience of having the services of Toronto that is just a 1.5 hour driving distance.  

Wednesday, 3 May 2017

Real Estate Lingo Explained

Purchasing a home in Wasaga Beach can be nerve racking if you are not familiar with the terms used during the process. To start you on your path with confidence, we have compiled a list of some of the most common terms used when buying a home.

Annual Percentage Rate (APR) – This is a broader measure of your cost for borrowing funds. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower is required to pay. Because these costs are rolled in, the APR is usually higher than your interest rate.
Appraisal – A professional analysis used to estimate the value of the property. This includes examples of sales of similar properties. This is a necessary step in getting your financing secured as it validates the home’s worth to you and your lender.
Closing Costs – The costs to complete the real estate transaction. These costs are in addition to the price of the home and arepaid at closing. They include points, taxes, title insurance, financing costs, items that must be prepaid or escrowed and other costs. Ask your lender for a complete list of closing cost items.
Credit Score – A number ranging from 300-850, that is based on an analysis of your credit history. Your credit score plays a significant role when securing a mortgage as it helps lenders determine the likelihood that you’ll repay future debts. The higher your score, the better, but many buyers believe they need at least a 780 score to qualify when, in actuality, over 55% of approved loans had a score below 750.
Discount Points – A point equals 1% of your loan (1 point on a $200,000 loan = $2,000). You can pay points to buy down your mortgage interest rate. It’s essentially an upfront interest payment to lock in a lower rate for your mortgage.
Down Payment – This is a portion of the cost of your home that you pay upfront to secure the purchase of the property. Down payments are typically 3 to 20% of the purchase price of the home. There are zero-down programs available through VA loans for Veterans, as well as USDA loans for rural areas of the country. Eighty percent of first-time buyers put less than 20% down last month.
Fixed-Rate Mortgages – A mortgage with an interest rate that does not change for the entire term of the loan. Fixed-rate mortgages are typically 15 or 30 years.
Home Inspection – A professional inspection of a home to determine the condition of the property. The inspection should include an evaluation of the plumbing, heating and cooling systems, roof, wiring, foundation and pest infestation.
Mortgage Rate – The interest rate you pay to borrow money to buy your house. The lower the rate, the better. Interest rates for a 30-year fixed rate mortgage have hovered between 4 and 4.25% for most of 2017.
Pre-Approval Letter – A letter from a mortgage lender indicating that you qualify for a mortgage of a specific amount. It also shows a home seller that you're a serious buyer. Having a pre-approval letter in hand while shopping for homes can help you move faster, and with greater confidence, in competitive markets.
Primary Mortgage Insurance (PMI) – If you make a down payment lower than 20% on your conventional loan, your lender will require PMI, typically at a rate of .51%. PMI serves as an added insurance policy that protects the lender if you are unable to pay your mortgage and can be cancelled from your payment once you reach 20% equity in your home. For more information on how PMI can impact your monthly housing cost.
Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, to help you find your dream home, to negotiate any of the details that come up, and to help make sure that you know exactly what’s going on in the housing market. Real estate professionals can refer you to local lenders or mortgage brokers along with other specialists that you will need throughout the home-buying process.

The best way to ensure that your home-buying process is a confident one is to find a real estate professional who will guide you through every aspect of the transaction with ‘the heart of a teacher,’ and who puts your family’s needs first.

Coldwell Banker Ronan Realty

Coldwell Banker Ronan Realty
 
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