Newsletter Only

I’ve spoken about FOMO in the past, and let me tell you it is not only reserved for the newest fad, fashion or electronics; it absolutely exists in real estate also. Fear of Missing Out is driving a spike in new condo sales. These are units that have yet to break ground (PreCon) or those that are still under construction. With some people panicking that they were not able to secure a house or existing condo in this past year, they are purchasing essentially any kind of property they can get their hands on. As a result, new condo sales are booming in most urban centres across Canada.

With attractive payment plans spread out over a longer period of time, and incentives Buyers have the luxury of time to come up with their downpayment, so for many this is a no-brainer. Specifically younger buyers that otherwise feel they have been priced out and do not have a shot at becoming a homeowner, PreCon has allowed them an opportunity to get into the market.

As you know, I have curated this section especially for first time home buyers. My hope is this information will give you some insight on the programs available to you to take advantage of as you embark on this new journey. As always, my goal is to empower you with the right information so you are savvy, prepared and knowledgeable on how to best navigate home buying. Although I have touched on the Home Buyer’s Plan in the past, I have had many questions about this in the past month or so – mainly do the fact that home and condo prices are coming in higher that most have budgeted for and this is a great option to be able to make the purchase more a reality.

Glossary Term of the Month: I come across many people who are confused or intimidated by the various products or services or even terms commonly used in a real estate transaction, so I thought it would be helpful to add this section to my newsletter. I hope you find it useful, and if you have any particular terms you would like for me to deep dive into, reach out and let me know, it would be my pleasure.

Lien:

During the title search conducted by a lawyer for a property, a lien is something they will be looking for, for that specific property. In short, a lien is a notice attached to the title of a property that says the owner owes a creditor money. A mortgage is one example of a property lien. Allowing property taxes or utilities go into arrears are two other examples of liens that can be attached to a property.

In order to sell your home and transfer the title to a new homeowner, the owner would need to repay any debts and clear the title of any liens against the property first.

As always, changing topics from Real Estate for a minute, I’m sharing top interesting articles I’ve come across this month. Let me know which one you like the best and feel free to share with me your favourites reads this month.

1. The uncanny, fluorescent world of the Costco Influencer. (Jezebel)
2. Not everyone is excited about hugs making a comeback. (BuzzFeed News)
3. Inside the “world’s largest” video game cheating empire. (Vice)
4. The Olympics devastate host cities and need a permanent location. (Teen Vogue)
5. Gen Z’s ambitious and anxiety-fuelled pursuit of straight As across YouTube, TikTok, Discord, and Twitter. (Cybernaut)
6. The mystery of the $113 million deli. (NYT)

In Toronto it is very common that resale condos are purchased not only from end users but also by investors. This is especially true as Downtown Toronto has a heavy investor base that looks to purchase condos at the pre-construction phase. As such, when a condo is complete and has been registered many of the units are not readily available for end users to purchase simply because they have already been secured for investors to rent out. This in my opinion has added to some of the condo supply issues we are experiencing in Toronto because as we are seeing new buildings come onto the market, many of those units are for rent, not for purchase. 

As you know, I have curated this section especially for first time home buyers. My hope is this information will give you some insight on the programs available to you to take advantage of as you embark on this new journey. As always, my goal is to empower you with the right information so you are savvy, prepared and knowledgeable on how to best navigate home buying. Although I have touched on the Home Buyer’s Plan in the past, I have had many questions about this in the past month or so – mainly do the fact that home and condo prices are coming in higher that most have budgeted for and this is a great option to be able to make the purchase more a reality. 

Tax Credit
In an effort to assist Canaidans in purchasing their first home, the First-time Home Buyers’ Tax Credit was born. This initiative was conceived as a part of ‘Canada’s Economic Action Plan’ designed to help recover closing costs such as legal expenses, inspections, and land transfer taxes. 

I come across many people who are confused or intimidated by the various products or services or even terms commonly used in a real estate transaction, so I thought it would be helpful to add this section to my newsletter. I hope you find it useful, and if you have any particular terms you would like for me to deep dive into, reach out and let me know, it would be my pleasure.

Deposit:  So you have finally managed to secure a property, now what? Well your Final Agreement of Purchase and Sale (signed by all parties) stipulates that within 24hrs of a signed agreement (not including weekends or holidays) you will need to provide the Listing Brokerage with a minimum of 5% in the form of certified funds. Without this deposit, your purchase will become null and void. 

This month being the first month of the year, I think it is important to touch on the current status of the Condo Market in Toronto and its potential fate in 2021. I had personally started noticing week over week (close to about 5 weeks ago) a pattern emerging. This pattern was that the surge of listings that we had seen over the last quarter of 2020 was starting to level out. Instead I have been seeing more and more condo statuses updated to ‘Sold’ or ‘Sold Conditionally’, than new listings. That noticeable pattern to me has now become what I believe is the beginning of the end of the bottoming out of this market.

1. Understand and track your Credit Score. This is a key indicator that is used by your borrower and reflects the health of your finances and in turn your eligibility for a mortgage loan. There are many aids such as Credit Karma and Borrowell that can give you insight into your credit score monthly and provide advice on how to improve your credit. 
   
2. Do not make any large purchases at the same time as you are seriously considering purchasing a home. A home purchase can often trigger a need for other large lifestyle items, such as a car. Wait until after you have purchased your property to thoughtfully assess if you want to make any other large purchases. 
   
3. Don’t attempt to ‘time the market’. Sadly, this is an approach of the past. Trying to time the bottom of the market for purchasing and top of the market for selling can prove to be dangerous and oftentimes in the end is not worth the stress and small gain (if any) you may get.