first time home buyers
- Purchasing a home.
- Looking for a home they can grow into with a backyard and parking.
- Limited budget and looking in downtown Toronto.
the selling process
Considering the market conditions, Michael worked with his clients to determine their needs and the preferred geographical area. Taking into consideration the clients budget and long term needs they were looking for a medium sized home where the family could grow and would not have to move when they decide to have children. Beginning with an education phase, Michael showed his clients their options, paying extra attention to the different property characteristics and ultimate selling price. This helped give Michael's clients a solid perspective on the market value and what they would get for your money. After a few unsuccessful offers on other properties they found a property that met all of the clients requirements with future possibilities. They moved forward with a fair offer followed by a home inspection resulting in the successful purchase of their first family home.
This process took 8 months with a few unsuccessful offers and in the end they were successful in buying the perfect house in an excellent area.
renting a home for investment
- Looking to purchase a home to rent for investment.
- Must have a monthly positive cash flow.
- Must have good long term opportunity.
the selling process
Considering the clients' needs and ability, Michael advised his client to purchase a home that needed renovations to fully maximize their investment. Throughout this process Michael identified homes that fit the criteria with rental rates for the immediate neighbourhood. Michael also researched the economics, demographics, transit development and the real estate development in the neighbourhood to better understand the future opportunity.
This process took 9 months with many unsuccessful offers and additional time spent on reviewing and studying neighbour rental rates and the future potential of the property. In the end Michael's client was successful in purchasing a home in an excellent area. After 3 months of renovations the home was rented above market value that produced a positive monthly cash flow.
personal factors to consider
how to pick
Ask your friends and family for a referral is a good place to start. Meet with potential agents, ask questions and see how they communicate and disseminate information. They are guiding you through a very important step and you need to be able to trust them 100%. Meeting over a coffee is a good way to get to know a real estate agent before you enter into a contract. Hiring a good agent will make all the difference.
This can be a difficult step for some, especially if you have unanswered questions. Understanding your options is integral in determining your priorities and focusing your search. Considering your future plans is also very important in defining your needs and ensuring the property is suitable for years to come. Michael is happy to meet over a coffee to address those unanswered questions and to help you define your requirements.
picking a neighbourhood
There are many great neighbourhoods to choose from and understanding your needs will help you determine the neighbourhood that's right for you. There are also many options within a neighbourhood depending on your needs and goals. Michael is familiar with many areas of the city and the surrounding areas and can help you understand your options within the region.
viewing and choosing
After identifying your requirements, price range, and geographical boundaries it's time to search, review and view available properties. Physically viewing a property is truly the only way to fully understand the characteristics of a property. Michael is a wealth of knowledge in the construction and renovation practices and costs of a build and can provide invaluable insight into the possibilities and pitfalls.
Once you and Michael have identified a property you are interested in purchasing, Michael will prepare all of the required paperwork including clauses to protect your interests. Depending on the market conditions, buyers can employ different strategies to ensure a smart, informed and successful purchase. Please ask Michael about the different strategies buyers can employ to be successful in the purchase of your next property.
After the acceptance of your offer, depending on the terms included, we may need to complete some due diligence within a particular time frame such as a property inspection or a mortgage approval. Michael always follows through to the property closing and beyond to ensure all of the details are handled properly and professionally.
Understanding your options is integral in determining your priorities and focusing your search.
Michael is familiar with many areas of the city including the surrounding areas and can help you understand your options within the region.
Physically viewing a property is truly the only way to fully understand the characteristics of a property.
financial factors to consider
Understanding your affordability is crucial. Your deposit, current debt responsibilities and income all play a role in determining how much of a mortgage you can afford. Getting a pre-approval from your bank or mortgage broker is the best place to start. Michael works closely with mortgage brokers and bank professionals and is happy to provide a referral.
When purchasing a property, your largest expense will be the land transfer tax. Luckily as a buyer, your agent’s commission is typically paid through the seller. You also have to consider home inspection fees, legal fees and moving expenses.
In Ontario, there is a provincial land transfer tax payable when you purchase a property in the province. If you are purchasing a property in Toronto, Ontario, there is an additional land transfer tax payable when you purchase a property. If you are a first time home buyer you are exempt from a portion of both the provincial and municipal land transfer tax.
Here is a link to a land transfer tax calculator.