Canadian home resale market forecast update (RBC Economics)

According to a recent report issued by RBC Economics, demand for housing in Canada will be shaped by nearly perfectly offsetting forces, and the net effect of these forces will be close to nil. This means resales activity largely be  flat overall in the coming year.

What are the balancing factors, according to RBC Economics? Sustained growth in the economy, with real GDP growth of 3.2% in 2011, and 3.1% in 2012. This growth will generate demand by creating stronger employment and higher family incomes. RBC Economics also assumes ontinued net-migration, which will keep demographic fundamentals supportive.

Balancing these positive forces will be a likely increase in interest rates, with the overnight rate increasing by 75 basis points by the end of 2011 and another 125 points the following year. A rise in interest rates will dampen demand by raising the proportion of household budgets spent on servicing their elevated debt and by eroding housing affordability, which has recently shown signs of strain.

Regionally, RBC Economics expects the Alberta market to lead the way with growth rates of 7.0% and 6.2% in 2011 and 2012, respectively, although this would, represent only a partial recovery from the substantial 13.6% drop in 2010.  Activity in Ontario is expected to be mainly flat in 2011 relative to 2010 with some weakness emerging next year.

What about Vancouver? “Deteriorating affordability in Vancouver” has slowed house sales overall in British Columbia, after a strong 2010, RBC Economics notes. Still, the initial strength will be enough to lift annual resales by 3.1% to 76,900 units in 2011, according to RBC Economics.

Real Estate Investing Expert Linda Chartier’s Guide to Investing in Caledon Ontario Real Estate

Real Estate Investing Expert Linda Chartier’s Guide to Investing in Caledon Ontario Real Estate

Investing in Caledon Ontario can be a very profitable business for the wise investor. Unfortunately, you can also lose a lot of money in Caledon Ontario real estate if you don’t know what you’re doing. In this article, I’ll go over several tips to help you ensure a profitable investing career in the Caledon Ontario real estate market.

Pick a Specialty

When you’re going in to real estate investing, you’ll likely find that there’s an overwhelming amount of available information on all kinds of investing tactics.

Rather than specializing in being “a real estate investor,” pick something more specific. Perhaps you’ll specialize in small apartments. Perhaps you’ll specialize in buying foreclosures. Perhaps you’ll specialize in fixing houses.

Whatever the case may be, pick a specialty and learn everything you can about that tactic. You’re much more likely to success that way.

Know Your Taxes

Taxes are often a big “gotcha” for investors. To start, it’s important to learn as much about Caledon Ontario tax laws as you can. Have an accountant you can rely on and educate yourself in the various ways you can work with the tax laws to reduce your taxes.

Understand how taxes will impact your bottom line. Realize also that taxes change over the years. When you choose a property, it’s important to choose a property that will be profitable even if the tax codes change.

Be Meticulous With Your Inspections

You should always meticulously inspect your properties before making a purchase. You shouldn’t ever purchase a building before you’ve done a proper inspection.

Many investors simply inspect the property by hand. However, it’s usually a good investment to have your property looked at by a professional before making your purchase.

Know Your Rent, Utilities and Maintenance Costs

Cashflow is something that you must be very careful with. If you’re working with a thin margin, things like vacancies and unexpected maintenance can easily put you in the red zone.

It’s important when you’re calculating your investment to factor in vacancies and maintenance costs. A good way to determine this is by looking at the building’s past history. If there isn’t a good record or if there isn’t a reliable history to go back on, another way to help determine these costs is by looking at the costs of similar units in your area.

There is a lot of free and useful information available to you about buying or investing in Caledon real estate. For complete information about the Caledon Ontario real estate market including current properties for sale, property values and more please visit the most complete website online dedicated to everything Caledon Ontario real estate at . Please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions.

If you don’t already have an agent you’re working with who can help you, feel free to give me a call at the RE/MAX office in Brampton 905-456-1177 or the RE/MAX office in Orangeville 519-942-8700 to discuss how we can help.

Call for help with all your Caledon real estate needs or send me an email by simply filling out the form below and I will get back to you as soon as possible.

Understanding A Caledon Ontario Sales Contract

Finding the right Caledon Ontario home is an exciting time so make sure that once you have decided this is the home for you that you protect yourself when writing the sales contract. This is where making the wrong entries can cost you money, or the home.

It may sound silly to say, but when you are writing a contract make sure that it is the current edition of the form. On the bottom is printed the date this form was last changed. Not having an up-to-date form will leave out new changes to the guidelines that you need to be aware of.

These contracts are long, complicated and full of legal talk so take time to read everything. Never let anyone rush you into signing something unless you have thoroughly gone over every word. If there is something that you want to address that isn’t listed the counter offer is the time to address it. Once the contract is accepted, it will be too late to bring it up.

The contract is going to have a lot of specific dates in it. For example, inspection cutoff and contingency cutoff, financing contingency cutoff, loan application, loan approval, etc. Sellers will want these dates to be as soon as possible. But as a buyer you want them to be as long as possible. All of these dates can be negotiated so give yourself plenty of time to get everything taken care of.

When looking over the Provincial contract make sure everything has been filled out. There should be no blanks anywhere. Some contracts spell out who will be doing certain repairs, the condition of certain components of the home or a clause concerning the inspection contingency. Read these areas carefully.

Once the contract has been accepted, write all of your specified dates down. These are very important! If you miss a cutoff it could be disastrous for you. Make sure you keep within the time limits to protect yourself. If something comes up that may interfere with a deadline contact your agent immediately.

You can do some of the preliminary work ahead of time to start the process. Having essential documentation to your lender means they can get started on your loan package and just wait for an address to plug everything into their system. Also, having already chosen an inspector will have them on standby.

For more information on the contents of the Caledon Ontario real estate contract, contact local real estate experts Kevin Bailey and Linda Chartier at the RE/MAX office in Brampton 905-456-1177 or the RE/MAX office in Orangeville 519-942-8700 to discuss how we can help.

Call for help with all your Caledon real estate needs or send me an email by simply filling out the form below and I will get back to you as soon as possible.