Toronto First Time Buyer Course from RE/MAX

Buying your first home can be a difficult and confusing process. There is a huge amount of knowledge you need to know or be aware of, in order to make a successful home purchase.

I enjoy having the opportunity to explain the process to first time home buyers, to take away the mystery and show them that it really can be easy and fun to find that first perfect home.



If you are looking for the information to make your first purchase of a condominium or house a success? Get the assistance of the Toronto RE/MAX Real Estate Help Desk. Ralph Evans
is a modern, professional RE/MAX agent comfortable explaining the process to others.

Meet with Ralph Evans at your home, office or at his office for a persnalized first time buyer course, just for you!

This free presentation will provide you with the knowledge you need to successfully purchase your first home. You will learn about the various choices of home styles you can choose from. The differences between condominiums and freehold homes. The characteristics of townhouses, semi-detached, and detached homes.

You will learn about the financial aspects of home ownership. You will see how mortgages work and how to calculate what you can afford. You will find out about the special programs available to you to help make home ownership as affordable as possible. You will see what other costs you'll need to consider. You will find out where to go to get the best possible mortgage rates and how to lock in those rates, while you look for a home.

You will find out about the many advisors you will need to complete the purchase of your home. You will understand the role of the real estate agent along with the home inspector, the lawyer, the mortgage broker and the insurance agent.

Get all your questions and concerns answered.

If you do want Ralph's help to look for the perfect home with you, that would be great too! I'm here to help. www.RealEstateHelpDesk.ca
Call me at 416 577-5486 or contact me at ralph@RealEstateHelpDesk.ca

Market Commentary from Michael Polzler - RE/MAX Ontario-Atlantic

Michael Polzler, who is the Executive Vice President and Regional Director for
RE/MAX Ontario-Atlantic Canada Inc., published the following commentary on the real estate market...


Toronto Real Estate Board stats for October created some heated dialogue in the industry in recent weeks. While many believe that the dismal statistics reflect the recent volatility in financial markets, some are now asking if they also identify an emerging trend in the Greater Toronto Area.

The simple answer is no. Although there are some serious negative factors influencing the marketplace, one month does not make a market. We need several consecutive months of momentum – one way or another – before we can really determine the direction of the market.

Make no mistake. 2008 has presented our industry with challenges across the board. Unit sales are down 16 per cent from one year ago, hovering at approximately 70,000, while average price at $380,654 is up marginally over year–to–date figures for the same period in 2007. And the prognosis will get worse before it gets better, considering the new land transfer tax rate implemented in January, 2008 artificially inflated housing values during the fourth quarter of 2007. Average price hovered close to $400,000 in October, November, and December of last year – which will be the measuring stick in the months ahead.

Clearly, market conditions have shifted in favour of the buyer. There are more homes listed for sale than one year ago and houses are taking longer to sell. Our forecast for 2008 – released in October of 2007 – said as much.

Sellers are adjusting to new market realities – albeit reluctantly – while buyers are taking it all in. Some are sitting on the fence, waiting for housing values to fall further or interest rates to decline a percentage point or two more. The courageous are jumping into the market, taking advantage of lower prices, greater selection, and less competition.

For those that are trading in the same market, it’s all relative. Sellers may get less than they thought for their homes, but they’ll also pay less on the other side of the transaction. With market conditions stabilizing, first–time buyers now have the luxury of time in making their housing decisions. They also have greater purchasing power than they had one year ago – and their dollar will go much farther.
Unlike other investment vehicles, residential real estate serves two purposes. It’s still considered an investment, but it is also a roof over your head. We know from past experience that housing appreciates at a rate of five per cent annually. It’s cyclical, so it may rise and fall, but the risk involved will never be as steep or as serious as in the stock market, where the value of your portfolio can drop 30 per cent overnight and some of your stocks can fall to 0. You also can’t live in your mutual fund.

Real estate in the Greater Toronto Area has faced many challenges over the years but continued to experience steady growth. In 2009, there are some announcements that are expected to have a positive impact on the housing market and they are as follows:

1. The Bank of Canada has indicted that lending rates may fall further in 2009.

2. Federal government intervention in the form of a $75 billion mortgage purchase from the CMHC will free up additional credit.

3. Measures will be introduced by both the Federal and Provincial government to bolster the economy. In Ontario, that could mean a bailout package for the ailing manufacturing sector.

4. A lower Canadian dollar – hovering at 85 cents American – may provide a much–needed boost to manufacturing.

5. Job employment rates continue to hold steady in the GTA, despite upward momentum at the provincial level. The unemployment rate was 6.8 per cent in October, down from 6.9 per cent in September.

6. Population in the GTA continues to grow through migration, with 60,000 plus households expected to form in 2009.

Last, but not least, we must remember that the Greater Toronto Area generates about 10 per cent of the country’s total wealth – that’s comparable to what New York, Chicago, Boston, and San Francisco make to the US economy. There’s no question that we are a world–class city – in a have–not province. We may be in for some challenges over the next six to nine month period, but we should see clear signs of recovery by late 2009. The good news is that lifecycle events will continue to occur, whether real estate is experiencing a bull or bear market.

Sincerely,

Michael Polzler
Executive Vice President and Regional Director
RE/MAX Ontario-Atlantic Canada Inc.

Do you want some personal guidance on what opportunities exist for you in today's market? Please contact me by email or through my website.

Toronto Power of Sale Properties

With the recent events in the financial world, we are likely to see an increase in the number of homes that will be sold through the process called "Power of Sale". These home can be an excellent buying opportunity in a difficult real estate market.

What exactly is that and how is it different from the "Foreclosures" in the States?

Normally, it is the homeowner that sells their home to the buyer. In Power of Sale, the bank as lender sells the home without ever taking ownership directly.

If a Canadian homeowner falls behind in making their mortgage payments, the bank has a process to terminate the mortgage and get their money out. Firstly, the mortgage will be a few months behind in payments, then the bank will issue notices to the homeowner advising them of the need to pay-up the outstanding amounts of the loan.

After sufficient notice period, the bank will begin the power of sale. They have the property listed for sale with a Real Estate Agent, and they can seek a buyer for the home. However, they do need to ensure they sell it for fair market value, otherwise the owner can sue the bank for the difference. The bank wants to recover the amount of the loan and cover their legal costs. Any money in addition to that left over from the sale is returned to the homeowner. But, if there is still a shortfall after the bank sells the home, the bank can still sue the homeowner for the remainder of the loan.

So, here is a big difference to the US market. In the States, the bank usually takes over ownership of the home first and then sells the home on the open market. They can sell the home for whatever they can get for it, and then if there is a shortfall they have no further recourse to sue the original homeowner. This is Foreclosure. If the homeowner makes an arrangement with the bank to sell the home, below the value of the mortgage-balance with the proceeds going to the bank, then its called "Short-Sale".

Here in Canada, the bank does not take ownership of the home, they must sell for fair market value and they can still go after the homeowner for more money.

As a buyer of a power of sale home, you need to be aware that the original homeowner could step in at any time and pay-off the mortgage. This would cancel the power of sale! That can occur right up until closing. Further there are no guarantees from the seller about the condition of the property, what is included or what is in working condition.

I am a modern professional RE/MAX agent. I focus on real estate on the west-side of Toronto, including the downtown condos, High Park, Bloor West Village, Swansea, Kingsway, Sunnylea, Etobicoke and into Mississauga.

Now that you know a little bit more about how Power of Sale works, if you are looking at finding the values on the this market, Ralph Evans and the Real Estate Help Desk is here to help! Access my list of power of sale properties in the area you are interested in. let me keep you informed about new power of sale properties as they get listed.

Let me know how I can help you!

DNA Condo Toronto

Billed as Downtown's Next Address, the DNA condo is an ultra-modern and cool place to live. It has a strong sense of design that is very different from many of the new condo's that have been built recently in Toronto.

I always like to come here and show buyers through the building. They can see the difference right away.

There are great design elements one finds in many suites, the bathroom and kitchen fixtures, the shower stall design, portable kitchen islands on wheels, great high-end washer dryers.

Located right in the middle of the King West Village area, it has its own Starbucks outlet on the corner of the building at Shaw and King St. What could be more convenient than that!

I am a modern professional RE/MAX agent - be sure to check out my website. If you are looking to buy a suite here, sell, lease a unit or you'd like to rent someone else's place, let me know. I'm Ralph Evans and I'm here to help!

Toronto MLS Housing Statistics for October 2008

Today the Toronto Real Estate Board published the numbers for the Toronto home sales for the month of October 2008. The average selling price across the GTA was $352,974. This is down 4.2% from the monthly average the month before and down 11.3% at the peak of May 2008.

It is not surprising that there has been a pull back in the real estate market in Toronto, but certainly nothing like the decline the stock market has seen! Homes remain a very stable long-term investment. The number of sales is well below the volume recorded in past years for the month of October. Mostly, people are being cautious at this time. People who do not need to be selling their homes are not selling. They are happy to stay put and will make a move when market conditions improve. But this then has an effect of skewing the average sales price. Fewer high-end homes are selling. The overall mix of homes may be different and thus the average is impacted.

But then current market conditions provide an excellent opportunity to be a buyer. The supply of homes for sale is up and the number of bidding wars and multiple offers is way off. The buyers have much more control for setting the terms of negotiation.

It is also a good time for move-up buyers in the same market. If you are selling one house and buying another within the Toronto market you are still okay. You may lose some value on the sale of your existing home. But you get a good deal on your purchase and then if you are moving-up to a better home, it should appreciate more rapidly than the home you have moved from.

If you would like to discuss the current market conditions more or understand how this impacts your current situation, please give Ralph a call.