Tips of the week

After a very hectic summer, I now have some time to bring everyone up to date. I run a weekly tip of the week in our local paper that I would like to share on my blog, so here goes I will post my previous adds and will keep my posts updated as my new tips hit the paper weekly

 

TIP OF THE WEEK:

WHY IS NOW THE PERFECT TIME FOR CONSUMERS TO BUY OR UPGRADE THEIR EXISTING HOME?

-MORTGAGE RATES ARE AT A HISTIRICAL LOW

-MOST FINANCIAL LENDERS AND MORTGAGE BROKERS REQUIRE ONLY 5% DOWN ON A NEW MORTGAGE

-WITH A SHORTAGE OF RENTABLE PROPERTIES AND RENT ON THE RISE PURCHASING MAKES ECONOMICAL SENSE

WHY IS NOW THE PERFECT TIME FOR CONSUMERS TO BUY OR UPGRADE THEIR EXISTING HOME?

 

TIP OF THE WEEK:

ARE YOU THINKING OF PURCHASING A VACATION OR SECONDARY HOME? SOME OF THE ADVANTAGES TO THIS TYPE OF ACQUISITION ARE:

-BUYING A SECOND HOME IS A GREAT VENTURE OPPORTUNITY AND IS A MUCH SOUNDER INVESTMENT THAN INVESTING IN STOCKS THAT YOU HOPE BY CHANCE WILL ROCKET

-A SECOND HOME IS A GREAT ASSET TO HELP BUILD A SOLID PORTFOLIO FOR YOURSELF

-OWNING A SECOND HOME PROVIDES FOR THE OPPORTUNITY TO ENJOY AND GAIN FROM THE BENEFITS THAT GO ALONG WITH IT

-BEST OF ALL A VACATION HOME MAY PROVIDE FOR SOME WELL DESERVED REST AND RELAXATION

 

 

TIP OF THE WEEK:

ARE YOU WONDERING? SHOULD I HAVE A HOME INSPECTION DONE PRIOR TO PURCHASING A PROPERTY?

-ABSOLUTELY! PURCHASING A HOME IS A HUGE INVESTMENT.

-IN COMPARRISON TO THE COST OF YOUR INVESTMENT AN INSPECTION IS A SMALL PRICE TO PAY.

-A LICENCED INSPECTOR WILL GIVE YOU AN INDICATION OF THE QUALITY OF CONSTRUCTION AND ANY MAJOR REPAIRS THAT NEED TO BE ADDRESSED.

-THIS WILL ALLOW FOR YOU TO ALLOCATE FOR ANY ADDITIONAL COSTS YOU MAY INCURE IN YOUR PURCHASE

- THE KNOWLEDGE YOU RECEIVE FROM HAVING A HOME INSPECTION CAN ALLOW FOR PEACE OF MIND WITH NO HIDDEN SURPRISES WITH YOUR PURCHASE

 

TIP OF THE WEEK:

DO YOU KNOW WHAT AN EASEMENT (OR RIGHT- OF –WAY) IS ON YOUR PROPERTY?

-IT’S AN AGREEMENT THAT GIVES AN INDIVIDUAL, COMPANY OR MUNICIPALITY THE RIGHT TO USE YOUR LAND IN SOME WAY, THEESE EASEMENTS “RUN WITH THE LAND”. EASEMENTS REMAIN WITH THE LAND UNLESS THE HOLDER OF THE EASEMENT DISCHARGES HIS OR HER RIGHTS.

SOME EXAMPLES OF EASEMENTS ARE:

-ACCESS ROADS

-UTILITY CORRIDORS

-PATHWAYS/WALKWAYS

-POWERLINES

-SEWER/WATER LINES

 

TIP OF THE WEEK:

-DO YOU KNOW HOW TO SPOT A DEFECT WITH A PROPERTY? EVERY PROPERTY HAS DEFECTS. THESE DEFECTS ARE DISCRIBED AS PATENT, LATENT OR MATRERIAL LATENT

-PATENT DEFECTS ARE DISCOVERABLE THROUGH A REASONABLE INSPECTION OF THE PROPERTY.

- EXAMPLES INCLUDE AGING ROOF, WORN CARPETS, AND BROKEN WINDOW GLASS.

-SELLERS DO NOT HAVE A DUTY TO DISCLOSE THESE DEFECTS, ALTHOUGH THESE DEFECTS MAY NOT BE COVERED UP TO MISLEAD BUYERS TO THERE EXISTANCE.

CHECK NEXT WEEKS TIP FOR LATENT DEFECTS

 

TIP OF THE WEEK:

 

DO YOU KNOW HOW TO SPOT A DEFCECT WITH A PROPERTY? EVERY PROPERTY HAS DEFECTS. THESE DEFECTS ARE DISCRIBED AS PATENT, LATENT AND MATERIAL LATENT.

 

-LATENT DEFECTS ARE NOT DISCOVERABLE THROUGH A REASONABLE INSPECTION OF A PROPERTY.

 

-PROVIDED THAT A LATENT DEFECT IS NOT A HEALTH OR SAFETY HAZARD, THE SELLER IS NOT OBLIGATED TO DISCLOSE THIS INFORMATION.

 

EXAMPLE: THE HARDWOOD FLOORING IS SOUND, BUT IS SCRATCHED IN SOME AREAS. IT IS NOT DISCOVERABLE BECAUSE OF WIDE BASEBOARDS.

 

- SELLERS MAY NOT DELIBERATELY HIDE THESE DEFECTS OR NOT BE TRUTHFUL WHEN ASKED ABOUT THEM.

 

CHECK NEXT WEEKS TIP FOR MATERIAL LATENT DEFECTS

 

TIP OF THE WEEK:

 

DO YOU KNOW THE DIFFERENCE BETWEEN DEFECTS AND HOW TO SPOT A DEFECT WITH A PROPERTY? THESE DEFECTS ARE DISCRIBED AS PATENT, LATENT AND MATERIAL LATENT.

 

-MATERIAL LATENT DEFECTS ARE BOTH UNDISCOVERABLE AND COULD BE OF CONSIDERABLE CONCERN

 

- CAN NOT BE RENDERED THROUGH A RESONABLE INSPECTION OF THE PROPERTY

 

-RENDERS THE REAL ESTATE POTENTIALLY DANGEROUS

 

-UNFIT FOR HABITATION OR FOR THE PURPOSE FOR WHICH IT IS BEING ACQUIRED

 

-MAY INVOLVE GREAT EXPENCE TO REMEDY

 

EXAMPLES INCLUDE: A CRACKED FOUNDATION WALL COVERED BY PANELING

 

                                     -IMPROPER WIRING HIDDEN BEHIND WALLS

 

                                   - ANNUAL SPRING FLOODING DAMAGE CONCEALED BY NEW CARPETING

 

                                 - LACK OF MUNICIPAL BUILDING AND OTHER PERMITS RESPECTING THE REAL ESTATE

 

ALL KNOWN DEFECTS MUST BE DISCLOSED TO BUYERS

 

TIP OF THE WEEK:

GDS/TDS

Are you wondering how much you can afford for a mortgage? Most lenders depend on two standards of measurements to qualify mortgages

Gross Debt Service (GDS) - is based on the percentage of income that is required to pay all monthly housing costs, generally 32% of your gross household monthly income.

Total Debt Service (TDS) – is based on the total of the GDS plus any other obligation of payments you have such as credit card and vehicle payments, generally 40% of your gross monthly household income.

 

Tip of the week:

Are you wondering how can I come up with a down payment to purchase my first home?

If you are a first time home buyer the Home Buyers Plan (HBP) allows you to withdraw money from your RRSPs (tax- free) to make your down payment. HBP is administered by the Canadian Revenue Agency. Certain conditions must be met to qualify for HBP for more info contact (CRA).

-you may draw up to 25,000 from your RRSP per person towards your purchase

-your RRSP withdraw does not need to be included in your annual income tax return, and no tax is taken off the money you withdraw

-you do not need to repay the money to your RRSP for a two year period after the purchase of you home.

-starting two years after your purchase you have up to fifteen years to repay the yearly minimum deposit back into your RRSP. CRA determines what your minimum yearly repayment will be and when you need to start repaying it.

 

TIP OF THE WEEK:

What are Restrictive Covenants?

A Restrictive Covenant is a promise not to do something and has the effect of controlling the use or development of land.

A couple of examples are:

-A land developer may register restrictions regarding future development improvements in a residential subdivision such as building size, exterior finishing or fencing requirements and so on.

-May also be placed for a defined period of time for example: If a gas company decides to build a new station a couple of blocks away from the one they are selling they may put a restrictive covenant on the old station that it cannot be used for this purpose for a two year period.

 

Tip of The Week: What is title Insurance and why purchase it?

Title Insurance is a policy which insures a property owner should there be a prior claim against the property after the purchase has been completed. It is often purchased for the following reasons:

- It’s acceptable to most lenders in lieu of their survey/real property report requirements. It is less expensive than a survey and can be obtained fairly quickly

-allows a transaction to close before documents are fully registered at the Land Title Office by insuring against loss from other interests registered against title prior to full registration.

-certain defects such as encroachments shown on surveys or prior undischarged mortgages registered against title may also be may also be covered by title insurance. If it is determined that title insurance is able to cover loss from this defect, the transaction can close smoothly and on time.

 

Tip of the Week:

Have you heard of the Dower Act?

-This act prohibits a married person who individually owns land that either spouse has resided on at any time during their marriage, from disposing of that land without the consent of the other spouse, unless the courts have made an order dispensing with the consent of the spouse.

If you would like more information or to clarify the rules that pertain to the Dower Act. Please feel free to contact me.

 

Tip of the week:

Are you wondering how child support may affect effect your mortgage qualification?

-Generally when child support and alimony are paid by you to another party, the amount is deducted from your total income before determining the size of the mortgage you will be qualified for.

-Generally when child support and alimony are received by you from another party, the amount paid to you is added to your total income before determining the size of mortgage you will be qualified for. Most financial lenders will require proof of regular receipts for a designated period of time.

 

Tip of The Week: What is title Insurance and why purchase it?

Title Insurance is a policy which insures a property owner should there be a prior claim against the property after the purchase has been completed. It is often purchased for the following reasons:

- is acceptable to most lenders in lieu of their survey/real property report requirements. It is less expensive than a survey and can be obtained fairly quickly

-allows a transaction to close before documents are fully registered at the Land Title Office by insuring against loss from other interests registered against title prior to full registration. Allowing for a smooth closing.

 

 

 

 

 

 

 

 

 

 

 

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Stacie Dease

Stacie Dease

Associate
CENTURY 21 Lakeland Real Estate
Contact Me