Real Estate

In recent years, the housing market has been on a very bumpy financial ride. Due to the sub-prime mortgage crisis which resulted in millions of homeowners losing their homes due to the inability to pay their monthly mortgage payments, President Obama\’s mortgage refinance stimulus plan was implemented to help people stay in their homes and encourage people to buy a home. The plan included lowering interest rates so that people could take advantage of the savings. Now that the economy has shown signs of improving, many people are wondering how long mortgage rates will stay low or if there is going to be an increase in the coming months and next few years.

In this current economic environment where improvement in the economy is not happening as fast as we would like, as well as the continued Government and Federal Reserve support, most experts agree that for the next few months, there should not be much of a change in mortgage rates. Currently 30 Year Fixed mortgages rates have been hovering just under 5%. It is expected that 2010 will see rates rises to just over 5%. This is mainly due to the economy not getting worse and there are some signs that the economy will get better. However, many economists predict that low mortgage rates will be here for a little while, but not for long.

Economists suggest that as the economy grows and banks begin to increase their lending, mortgage interest rates will steadily increase to rates preceding the housing market crisis. In the next few years, many predict the pre sub prime mortgage crisis rates will return. This may be a good time for prospective homeowners to consider buying a home as the rates will not be making any further dramatic reductions, and over time they will begin to rise. Locking into a low rate now will definitely save homeowners money in the future as the rates start to rise. As well, by the first half of 2010, the Federal Reserve\’s Housing Recovery Plan of buying as much as $500 billion of securities backed by Ginnie Mae, Freddie Mac, and Fannie Mae, will be coming to an end, so mortgage rates are expected to rise. Many experts believe rates will rise to over 5%.

Another consideration many housing market forecasters are worried about is inflation. Concerns about inflation could send Treasury yields higher which would cause an increase in mortgage rates. So, the mortgage rate prediction by many economic experts is that for the next few months, rates will stay about the same, and then they will begin to slowly rise in the next few years, depending on the state of the economy and the recovery progress of the housing market. But do not expect a continued decrease and the rates will eventually go up.

If you are considering refinancing or planning to purchase a home in 2010, this may be a great time to lock into a low interest rate mortgage. If not, you may miss out on a great deal if you wait too long.

There are a tonne of different ways someone can save money and invest in. We offer some of the best GIC rates. We also offer competitives mortgage rates. Do your research online and find the best rates.

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British Colombia, Canada, is well-known throughout the world for its gorgeous and dazzling mountain views, vibrant and bustling cities, a strong and diverse culture, and its numerous recreational activities such as the stunning golf courses and best ski condos. In British Columbia, the BC real estate market has always been a booming business. However, due to the recent down turn in the economy, the British Columbia real estate market had experienced a brief cooling off period. Now, this exciting and beautiful Canadian province has started to make a strong recovery. A distinct bounce back in consumer demand has turned a possible gloomy 2010 into a very strong year for home sales. A boost in consumer confidence, increased consumer demand, and low mortgage interest rates, have all played an important role in improving the British Columbia real estate market.

Real Estate developers are not only attracting retirees, but they are also attracting an innovative young work force. Many developers are responding to consumer demands for a private piece of paradise where people can enjoy the beautiful scenery, but still have access to a vibrant and culturally diverse city such as Vancouver. Whether you are looking for a cozy and private residential home or looking for new real estate investment opportunities, British Columbia provides many real estate options for the informed investor. Investors and home buyers are recognizing these opportunities. For instance, the average annual MLS (R) residential price in the province is expected to rise 2 per cent. In 2010, many experts are also expecting to see another increase of 4 per cent in the price of real estate. More specifically, home sales in 2010 are projected to increase an additional 8 per cent.

The interior housing markets of British Colombia are also seeing vigorous consumer demand because of stronger market conditions and current low mortgage rates that are boosting home sales. Vancouver, BC has recently seen a large jump in quarterly sales. According to figures released by the Canadian Real Estate Association, Vancouver is fast becoming one of the hottest real estate markets in Canada. As well, Vancouver and Victoria have declared near record sales this past fall.

Many regions across the Province are now seeing strong home sales. For instance, home sales in the Fraser Valley and the city of Victorian have seen a rapid growth in home sales. In fact, sales in Vancouver, the Fraser Valley, and Victoria have boosted the province\’s overall home sales total to almost record levels. In December of 2009, The British Columbia Real Estate Association reported that Multiple Listing Service (R) residential sales in the province have made a remarkable increase this past November. However, it is important to note that the demand in these residential sales markets is expected to level off in 2010 as demand is exhausted and home prices begin to rise again.

With the current low interest rates available on mortgages, many experts suggest that it may be a good time to look at the real estate investment opportunities in British Colombia. As the economy slowly rebounds, one may find themselves with a lucrative investment in a beautiful province.

If you are looking for BC real estate, or even just the best ski condos around the area, then look no further! We offer the best locations and prices!

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Investors looking to make money during the real estate meltdown have turned their focus on the foreclosure market. This market has somewhat boomed since the recession. If you are a new investor or simply looking for a new home through foreclosures there are a few things you should consider before purchasing a repossessed property.

Banks put repossessed homes back on the market quickly so they do not have to take care of their expenses such as property taxes, insurance and other costs. When a foreclosed home hits the market it is usually at a low price because the bank wants to get it off of their hands. Unfortunately, potential buyers bid against each other until the repossessed real estate is no longer a bargain. This is why you have to think and budget ahead. Prepare an amount you are ready to spend and do not spend more.

If you can network directly with an asset manager at a bank you can get ahead of the game. If you keep in touch regularly you may can get the heads up on houses that are about to hit the market giving you a head start.

If you are looking to buy a property from a particular bank it would be a good idea to get a pre-approved mortgage from that same bank. This will give you favor if your bidding is comparable to the other bids. If you find a bank later that is offering you lower rates you can choose the one with the lower rate after the bidding has finished.

Keep in mind that when you buy a foreclosed home it is not like buying a regular home. You can not expect damages to be repaired and receive the house in tip-top shape. You will get the house as did the bank, i. E. The way the previous owner. ’s left it. A lot of the time when people could hardly make mortgage payments they were not worrying about maintaining it. There may be a possibility that the house was also ruined by the previous owners as is the case with many foreclosed homes.

Once you have been awarded a bid the bank will try to move as fast as they can to get the paperwork finalized and hand over the house to you. Before signing you should get the legal advice of a real estate lawyer. Whatever the fees, it would be a good idea to get a lawyer because you are investing so much money into a property you really need to understand the fine legal print on the contracts.

Before bidding let the house stay on the market for a couple of days. This will give you the chance to see what other bidders are offering. Ask the agent in charge of the property what bids are like, he/she may tell you that bids are coming in at $100,000, you can start your bid a little higher to get the advantage.

It would be wise to go through the repossessed properties you are considering with a contractor who can tell you how much work needs to be done on the house. This way, you will know how much it will cost you to repair so that you bid accordingly.

Gaining a lot of attention recently is real estate Toronto in terms of houses and condos. You can find local organizations and Toronto associations in your area for services you may require.

The measuring stick of the economy has long been how the housing market if performing. When times are good houses are getting built, banks are loaning money, and families are buying homes. The economy is bad with homes are not being constructed, banks are not loaning out money, and families are not buying homes.

But when houses are being constructed many people are affected. Men and women in the construction industry are not working. Thus they cannot support their families. The house material companies do not sell products of they cannot put more people to work.

The companies that manufacture house building materials do not get orders so they have to lay off people in their manufacturing plants. Banks do not lend money so they have to keep their interest rates high. With higher interest rates people do not borrow as much money and this makes it hard for people to get a loan and then people cannot buy houses.

So it becomes a self defeating cycle. So much of our economy is based on the house market. But as it is said in the real estate field, the housing market goes up and it goes down. The government is so involved in the housing market that it has many regulations in place to try to control the market. They control everything from the construction of houses to the lending of the money to buy the houses.

They control the bank’s part and the mortgage broker’s part. The government controls the real estate agents involved in the sale by enforcing rules they have to abide by. The government can try to build up home sales by offering income tax credits to first time home buyers. The government encourages home ownership by providing income tax savings by allowing people to write off their interest payments off their taxes.

This is a major reason why people want to own a home; to pay less income tax. We now just take this benefit for granted. In reality it is one of the major ways the government controls the economy. There are many parts in our economy but in no other part does the government take control like it does in the housing market.

Maybe the government realizes that there is stability in house ownership. Of maybe the government realizes that if we own our homes we will be too busy to keep our homes and have to time to protest against the government. Or perhaps the government thinks that house ownership is the part of the happiness pursuit and all that.

Whatever the reason the housing market is the government. And whether that is good or bad depends on how you look at it. The housing market will always have its good times and its bad times. It will always have people who try to make a killing in the market and those who simply want to own a home and raise their family. And the government will always be there controlling the market.

When you’re deciding to buy a house, some of the factors that you have to take into account are mortgage rates. As mortgage rates are important for home-buyers, rates GIC are important for investors. If you’re interested in a customized financial plan, remember to visit us.

Renting out houses as investments make pretty good financial sense over the long term (house prices tend to double in price every 8 to 10 years) but what about Apartments?

Initially, you have to ask yourself, what am I investing for? Is it long term capital growth or short term income from rentals? Usually, older individuals invest for short term income rather than long term for obvious reasons!

Apartments generally do not make good capital growth investments as historical property prices have in fact reflected the price of land and as an Apartment owner, this land price is not reflected in the value of the unit itself. Developers are using all sorts of tactics to sell apartments at present such as ‘rent guarantees’. It is worth thinking about what happens after the rent guarantee runs out and if the figures don’t add up then, they most likely won’t add up now. Also will the developer offering the guarantee be around to follow through on it? Most Real Estate agents know that these guarantees are a marketing trick and tend to reflect the flaw in the Apartment market as a whole. (Why offer something when you don’t need to?)

In addition, think about the mortgage financing for Apartments, especially with most Banks not going over 60 or 65%. Whilst this may be OK for you, think about your potential buyer a few years down the line.

Apart from not owning the land, another factor is the potential over supply. Developers can easily put up a block of new Apartments, quickly and therefore further diluting the potential market. Old rule of supply and demand kicks in and as an individual you have very little control over it.

The fact above together with steep Body Corp fee’s and repair issues means that Apartment buyers will need to cautiously think before making a purchase. As for rental return, around 7% would warrant a house purchase but near 10% is required for Apartments

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