NEW HOME VS RESALE ..WHICH IS BETTER

Question: We’re starting a family and looking to buy our first home. We like the idea of buying a newly-built home, but we’ve been kind of shocked by the prices. We thought a new home a little ways outside the core would be cheaper, but they don’t look cheap to us! What’s up? Is buying an old fixer-upper a better choice?

New Homes:

New home construction often happens in suburban areas that are underdeveloped, therefore can offer more in terms of living space and property size. Urban infill projects are the exception, as they are utilizing prime city space and are limited in size.

The ability to choose custom finishings in a new home appeals to a lot of people. Instead of having to inherit someone else’s choice of flooring, cabinetry and countertops, you have the opportunity to select your own. And who can forget that everything is new, and never been used – including the bathrooms!

Finally, new home purchases come with a warranty. Coverage by province, but typically protect you against delayed closings, defects in construction, basement foundation and much more. In Ontario, Tarion provides all new homes with coverage.

Most builders price condos and homes at anticipated future market value. This means a potential buyer will be paying what the builder thinks the home will be worth when it is completed and occupied.

An additional cost needs to be taken into consideration when contemplating a new home. HST/GST is applied to the price of a new home and can significantly increase your overall costs.

Newer homes can take advantage of advances in materials technology and construction standards.

Resale Homes:

Existing homes tend to be in established neighbourhoods, which can give an accurate sense of what the community will be like to live in. From existing infrastructure, schools and businesses serving the area, you can paint an accurate picture with some diligence.

An existing community will have a record of sales performance that can be tracked through historical data. This allows you to better determine value when deciding location and which home to purchase.

Many older homes have been built to last with sturdy materials and fine workmanship.

 Resale homes are exempt from the tax(HST/GST).

Buying an older home that requires some TLC can allow you to unlock some of the hidden potential of that home, whether it be for use and functionality or value down the road.

Resale home prices tends to be cheaper than builder's price.

Whatever decision you make, both options have their pros and cons. Once you’ve determined which considerations are most important to you, your choice starts become clearer.

CLOSING COSTS

I’m buying my first home. What are some of the costs I should plan for, besides the purchase price?

For  first-time home buyers it’s so important to understand the full cost of buying a property.

1. Deposit : Require at the time of offer. This deposit is part of the
                   Down payment.

2. Home Inspection : A home inspection is the most widely
                 recognized pre-closing cost. It may be seen as an optional
                 expense but it’s also a smart one is because a qualified
                 home inspector, engineer or contractor can identify
                 underlying problems with a home’s major systems, like
                 heating and electrical. in a rural area, you should also have
                 the septic system inspected and water testing conducted
                 for the good of your health.

3. Appraisal : Some lender may require, as a condition of financing,
                that you pay for an appraisal or survey of the property to
                ensure the home’s value matches its sale price.

4. Land Transfer Tax :  A land transfer tax is up to 2% of the
                purchase price. In Toronto, an additional tax of up to 2 %
                applies. As a first-time buyer, you should talk with your real
                estate agent about whether you are eligible for a refund of
                the land transfer tax.

5.Legal fees : Your lawyer will conduct a title search on the home to
                 ensure the seller can actually sell the property and that
                 there are no liens against it. They will also register the deed
                 and mortgage for you.

6. Refund to Seller : You may also need to refund the seller for pre-
                paid expenses — property taxes, maintenance fees,
                utilities, hot water heater rental fees.

7. Insurance Policies : Three different insurance policies round out the
               closing expenses.
               1. mortgage insurance: if your down payment is less than
               20 per cent of the sale price.
               2. Title Insurance : will protect you against title fraud, errors
               in surveys and encroachment issues with neighbours.
               3. Home Insurance : You need to get Home Insurance
               before the closing which will depends on what type of
               insurance you are choosing.

8. Moving Expenses : Some gas, hydro and water companies charge
              a hook-up fee and you’ll need to pay if you want to forward
              your mail from your old address.


9. Renovation or Upgrades : Some house are in move-in condition ,
              some may need little TLC. dated kitchen and broken fence.
              A fresh coat of paint, some window coverings, or perhaps a
              shiny new fridge and stove also add up.

 Understanding the full cost of buying a home will help to budget for these final touches. 

FINAL RESTING PLACE

Buy now or you could end up in the suburbs until the end of time.

It sounds like your typical real estate pitch but this one is for your final piece of land, your burial plot. Prices are rising fast and what used to cost $200 to $400 in the 1970s in a central area of Toronto might be closer to $18,000 to $24,000 now.

Your final resting place is not unlike any other property choice, desirable locations are going to cost you more money. You can spend as little as $1,600 in Toronto for a plot and funeral, if you keep it simple and are cremated, or blow $50,000 on a plot and a swanky affair.

Plots:

Prime real estate in Toronto’s core can run close $15,000, for an adult grave although most locations are stackable so that’s the price for a couple. There may be an extra fee when the second person is buried.

Head to the greater Toronto area suburbs and that same adult grave is closer to $2,000

Crypt:

Finding one in the city is tough enough. Price comes down to what “floor” you’re on. They stack them and the second level — eye level — can cost you the most. Those spots are easily $45,000 for a couple. Once again, the suburban option will save you money with prices close to half that.

Niches:

An indoor single niche for cremated ashes can cost about $7,000 in Toronto’s core with outdoor niche’s available for half that.
Back in the suburbs, that single indoor niche is less than $2,000.
It’s important to note all these prices are guaranteed for eternity, if you pay up front.

Mausoleum

At the Mount Pleasant Group of Cemeteries, a private family mausoleum goes for $500,000

A funeral can easily run $10,000 to $12,000 on average and with many operators demanding 50% up front.

Selling your own home

I can’t decide whether I should sell my home myself or hire a real estate agent. What are the pros and cons of each?

Before you decide to sell your own home, consider how much time and expertise it will take. Also, know that commission rates with real estate agents are negotiable.

When the time comes to put your home on the market, it can be tempting to handle the transaction yourself, referred to as a FSBO — For Sale By Owner. After all, who knows your home better than you?

Going the FSBO route means you’ll be responsible for everything : — 1. Setting the right price,
2. Advertising your property,
3.Making yourself available to let interested buyers in to take a look,
4.Reviewing offers,
5.Negotiating terms and
6.Managing the paperwork once an agreement is reached.

One of the challenges you will face is getting the attention of homebuyers, who largely turn to the Multiple Listing Service (MLS) to identify available homes that meet their needs. Only registered real estate professionals have the ability to post listings on MLS. Some real estate brokerages now offer a “mere posting” service, where your property is listed on MLS for a fee, but leaves you responsible for all other facets of the transaction.

Even if you don’t use a real estate professional to help you sell your home, you may still end up paying commission — to the buyer’s representative. That’s because in a traditional sale, the commission for both representatives is typically paid by the seller. As a seller in a FSBO scenario, it’s your choice whether you agree to pay a buyer representative’s commission. If you don’t, the buyer would have to pay and may see it as a disincentive to purchasing your home.

There are significant benefits to working with a registered real estate agent, including valuable consumer protection. The There are three pillars of that protection are knowledge, professional standards and insurance.

Registered real estate professionals must complete ongoing, mandatory continuing education. That means they’ll be fully prepared to help you navigate the selling process, including determining how best to market and show your home to buyers, deciphering paperwork and negotiating on price and terms.

Your real estate professional is also required to uphold professional standards that emphasize fairness, honesty and integrity, and follow rules and regulations protecting consumers. In the rare instance that something goes wrong and you want to complain, RECO will investigate and take steps to hold the real estate professional accountable for their actions.

The final pillar of protection, insurance, has two facets:
1. Deposit insurance provides the buyer with peace of mind knowing their payment will be held in trust and insured against fraud, insolvency or misappropriation.
2. Real estate professionals must hold errors and omissions insurance to pay for damages and legal costs arising from claims related to a real estate transaction.

 Working with a real estate professional, however, can save you time and effort, and affords you protections that don’t exist in the FSBO scenario.

Convenince/ Variety Store for Sale - $125000

Seller is highly Motivated

What's going to happen to the Gardiner?

Gardiner Expressway repairs will slow traffic for years There are currently eight projects underway along the 18-kilometre highway: more than $100 million worth of fixes from repairing off-ramps and medians to replacing of 800 metres of actual elevated roadway. These are not scheduled for completion until late 2015. In the meantime, city engineers are working with traffic experts to ease the pain for drivers by staggering lane closures, limiting construction on surrounding roads and modifying traffic signals on streets in the vicinity of the Gardiner in the event of a backup.

The replacement of 800 metres of deck from Strachan Ave. to Spadina Ave., by far the most significant project planned to date, will be carried out in two 400-metre phases. Apart from a break for the Pan-Am Games, traffic will be reduced by one lane in each direction along the busy western stretch from early next year until the end of 2015. Meanwhile, from April to December 2014, three bridges in the western portion of the Gardiner will be refurbished, closing a lane in each direction at those locations. Buckley predicts slowdowns resulting from these projects will persuade many drivers to switch to public transit or stagger their work hours so as to avoid rush-hour. His advice to those with no other option but to brave the Gardiner: “Be patient.” COURTSEY "Toronto star"

How " FREE" is Credit Card Balance protection insurance..

Interesting Read

Balance protection insurance is a profit centre for the banks. They find it an easy sell because Canadians are risk averse and worry about paying their credit card bills in a crisis. Most banks charge you for insurance only when you carry a balance from the previous month. But a few, such as TD, charge fees each month.

TD spokeswoman Huma Pabani said customers are told over the phone that the insurance premiums are based on the average daily balance. After verbally agreeing, a customer gets a letter and certificate of insurance in the mail, showing how premiums are calculated.
sales pitch to buy insurance to protect ones balance if one became sick or lost their job is always misinformed about the ‘fee-free’ coverage. There is always a premium charge if you used the card. 
The trend is caused by lower demand for classic credit cards and transfers of balances to lower-cost lines of credit.When it comes to your credit card limit, banks used to raise it without asking and notify you after the fact. Now they are required to get your consent before increasing the limit.