I’m sure you have met at least one person in your life that is successful, motivated and self-empowered. This is someone that always seems to land on their feet, turns everything into gold and every success seems to come their way faster and thicker.

I’m also sure you have stopped to think about why these chronically successful people are so energetic, driven and successful with no apparent struggle while you seem to have such inertia impeding your progress.

Many believe that this is some unfair throw of the dice; that they just weren’t meant to become successful. Or perhaps it’s that the ultra successful people had some advantage or social lever that you didn’t. Occasionally this is true, occasionally success is inherited or stumbled into. However, more times than not, it’s created.

Success, first of all, is not a set of achievements or a combination of external factors; it is a mindset. Success is an attitude that comes from a framework of powerful beliefs and empowering thoughts. There have been many books written about this, probably some of which you have read. In the ones I have read, there always seemed to be a certain partiality – an incomplete picture – perhaps biased towards financial success or some other area but not another.

In the following list of beliefs and empowering thoughts, I would like to present a rounder view of success. One that I hope will give you a wider angle towards the meaning of success ranging from the material to the spiritual.

1. I am in charge of my life
   The belief that you and only you are responsible of what you make of a given situation. Life does not happen to you but is a result of how you respond to opportunities and challenges.
2. I can make tomorrow better
   The belief that you can change your future by your actions today. Some people are stuck in a fatalist (and dis-empowering) mindset where they believe they have little control on their life.
3. There is a lot of opportunity out there
   Successful people have their mind set on abundance and opportunity and not scarcity and lack. Trust me this makes a world of a difference. Believe that life, energy, positivity, love, opportunities, success, happiness are abundant…because they are!
4. I don’t need the approval of others to succeed
   If you are always looking for others’ approval and consent you will not go very far off and you will certainly not be self-empowered. Successful people follow their heart even when others are skeptical or do not consent.
5. My intentions have effect on my reality
   This is not to believe in magic where you can wish things into being…well almost. Most people are blind to this but successful people know, consciously or otherwise, that a focused and strong intention is indeed a powerful thing that will make a lot of things happen and certainly get you to your destination faster.
6. People are catalysts not barriers to success
   If approached in the right way and you network with the right people, you will leverage your efforts by a thousand fold. You will get things done faster by getting help from others.
7. Positive thoughts are powerful and empowering
   Successful people know very well that choosing to start a day with a positive rather than a negative outlook means having successful day as opposed to a frustrating one. It’s definitely in the attitude.
8. I am not separate from the rest
   This is a deep insight which only the truly successful and wise ones keep at heart. Commonly people believe that they are separate and cut off from the rest because they are individuals. True knowledge will tell you that everything is interconnected and success comes from acknowledging that you are not separate but one with the forces of life and the universe.
9. How can I use this situation?
   When life throws a bad streak at you or you your plans go down the gutter, ask yourself “How can I use this?”. My life changed as I started doing this. You can always turn a situation around even by just observing, learning and sharpening your attitude.
10. Hard work & perseverance are rewarded
    This is a rule of thumb even if perhaps reward doesn’t always come immediately but is paid off in the long run.
11. My past can be reviewed and rewritten
    Some people are locked in their past or think that their past circumstances determine their future. Successful people are skillful in the art of interpreting their past and reframinmg it according to their optimal advantage.
12. There are forces and energies which can help me if I’m conscious
    You might be thinking magic? Fairies? Not exactly. We cannot perceive certain subtle energies but some successful people believe in positive and negative energy flows from things and people just like ancient Chinese traditions believed in the flow of the Chi (Qi) or life energy. You can make yourself aware of this but it takes practice.
13. Failure is good
    As in point 9, empowered people can turn a failure into success by learning from it and moving on.
14. Don’t take it personally
    Get out of the trap of taking life circumstances personally or you will end up enslaved emotionally. When you get rejections, criticisms, cold shoulders, etc., put in within an impersonal bracket. They are not rejecting me, but an idea of me they have in their mind.
15. Bad patches are temporary
    We all pass through bad patches. It’s the cycle of life. But we all get out of them unless we chose not to. Think outside of the moment.
16. What I learn can be improved and refined
    Self-empowered people have a very dynamic view on life. There is always space for change and improvement especially on skills and lessons learnt.
17. I am constantly developing and expanding new capabilities
    Just like the previous point, empowerment comes from a non-static outlook where life-affirming mind states are believed to expand not contract.
18. Things are impermanent, don’t attach yourself to things
    This is a Buddhist concept which the real successful have learnt through experience. You might think that successful people are materialistic. I think the really successful are people who have a richer view on life and know how to ride life’s waves without getting emotionally attached.
19. Forget, forgive, rejoice
    Don’t get stuck in resentment and grudges. Travel light without dragging an emotional baggage full of past disappointments.
20. I already have all I need
    Self-explanatory. The path to success is through self-discovery and not world conquest as some would believe. People who have made it knew how to uncover their skills and true potential instead of obsessing with possessing

Original Source: Dumblittleman.com

Lets pick a popular investment these days – a 3 bedroom, 2 bathroom investment condo.

180K purchase price or rent at $1200 a month.
5% Down payment.

Your loan would be:
180,000
-5% Down Payment
+2.75% CMHC Mortgage Insurance (must be insured when you loan over 80% of value).
Loan = 175,700.

Payments?
Amortized over 35 years, 5 year fixed at 3.84%
Monthly Payment is $761.18

Let’s assume condo fees of $200 and Property Taxes of $1800 a year.

761.18
+ 200
+150 (1800/12)
= $1,111.00 per month.

Cheaper? Yes it is.

Now you’re telling me that $200 is low for condo fees, and what if taxes were higher – say $2000 a year?

Sure thing…

$761
+$300 condo fees
+ $166 taxes ($2000/12)
Total monthly payments = $1,227.00

Cheaper? You might not think so… but let’s really look at what is going on here.

That $761 monthly payment actually has a little over a $200 component of it going towards the loan itself (called the principal), while the other $561 of it goes to interest on the loan. Over time, this $200 figure gets larger and the $561 part gets lower until the loan is paid in full (in theory over 35 years of the amortized mortgage).

What does that mean? It means that $200 of the payment is actually being put into a savings account for you called ‘Equity’ in your home. What this means is that you are KEEPING that $200 component and putting towards the value of your home which can be recognized once you sell down the road. Just like a savings account – your money is being put somewhere to be withdrawn by you and for you at a later date.

So this means that out of the $1,227 payment (which was estimate high), $200 is being put back in your pocket and $1,007 of it will never be recouped.

Now if you were renting – how much of that $1,200 monthly payment will never be recouped?

You guessed it – ALL OF IT. Never to be seen again.

Now take into account the following:

As a general rule, real estate appreciates in value by 5% a year (more in recent years, but lets be conservative here), and what that means is that when you OWN your property, over the period of ownership the home becomes more and more valuable –which translates into a higher sale price when you sell compared to when you bought it. So you essentially MAKE money on the sale of the home! MORE MONEY you do not make when you rent. That $180,000 condo could be worth well over $200,000 in a number of years. In a great city like Ottawa that has a major economic driver like the employment rate being sheltered though the huge amount of public service employees – our economy is arguably a very stable one that would not be subject to huge fluctuations, and therefore see consistent growth over the years – exactly like what we have been seeing year after year.

So those are TWO ways that real estate make money.

But guess what – it gets better. There is a third. A little gem that should be sought out by all investors – POSITIVE CASH FLOW.

Let’s take that condo of $180,000 with payments (that were estimated HIGH) at $1227, and you rent it out for $1300 a month to a family. That’s about $70 a month in your pocket. That my friends, is called icing on the cake.

Now what if you wanted to live there? Or had a son or family member who wanted to rent out a room?

No problem. You live in one room, and you rent out atleast one bedroom for $500 or $600 a month. If there is a bedroom in the basement with a washroom – you might get $700 for the whole lower level. So apply this $500 – $600 dollars to your monthly costs of $1227 (on the high end), and you are OWNING a property for under $700 dollars a month, and $200 of it is being saved in your ‘equity’ saving account each and every month.

Less money out of pocket per month, your investment appreciating in value over the years, and potential for positive cash flow every month all mean a TREMENDOUS difference over time.

Finally – what if your numbers were better that what I described? Is that possible? Was I exaggerating?

Well – you be the judge. I have two investment condos for sale at the moment. One is $187,000 that has condo fees of $220 and taxes of $1700 a year. So the number would be better there.

I have another for $164,000 that (while needs a few thousand to upgrade), has a large bedroom in the basement that could fetch $600 a month easily, and the units themselves rent for about $1300 – while total cost would be under $1100!!!

You do the math. Either way, ownership is better. In a relatively stable and growing market like Ottawa, historically and as far as predictions go – we are not in a volatile market where property values are likely to drop, and therefore REAL ESTATE provides a great way to leverage your money, earn some income, save for retirement, and help secure your financial freedom.

Besides, you can’t live in an RRSP. Last time I checked – a roof over your head meant something.

Happy Buying, and Happy Selling!

Contact me anytime to chat.

Cheers.

www.MarcEvansRealEstate.com
marcevans@remax.net
613/868-4383

Ottawa’s residential housing market is weeks away from posting its best year on record in terms of unit sales and average price. Despite a slower than usual start to the year, more than 15,500 homes are expected to change hands by year-end, up 11 per cent from 2008 levels, and five per cent ahead of the previous benchmark set in 2007 (14,739). Housing values in the nation’s capital are also expected to climb, appreciating five per cent to $305,000 in 2009, up from $290,483 one year ago.

Job security and stable economic performance are the major factors influencing those considering homeownership, a decision enhanced by rock-bottom mortgage rates. While demand for housing has steadily increased throughout the year, supply has been an issue, with limited inventory reported in many hot pocket areas of the city. First-time buyers continue to represent the lion’s share of activity, driving sales of affordably priced product across the board. Townhomes, condominiums, and low rise apartment units are growing increasingly popular with this segment of the market due to price point. Revitalization in some of Ottawa’s older communities is gaining momentum as entry level buyers choose to invest a little sweat equity in their purchases. Neighbourhoods such as Mechanicsville and Preston St. are areas to watch, with housing values appreciating with every renovation completed.

Experienced purchasers are also taking advantage of ideal market conditions to move up and over to a larger home, better neighbourhood, or different housing type. Sales in the top end of the market—priced in excess of $750,000—have been steady, with the number of homes sold up moderately over 2008 figures. While real GDP growth is expected to fall for the first time in more than a decade in 2009, a solid rebound in the area of three per cent is forecast for 2010. New construction, including a new $21 million sporting event venue and training centre in Rockland, is expected to bolster economic performance in the New Year. Increased enrolment at Ottawa’s four post-secondary institutions has also prompted additional capital expenditures, including a new $112 million, 15-storey tower at the University of Ottawa, scheduled for completion in 2011; two new buildings at Carleton University; a construction trades centre at La Cité collégiale, opening in 2010; and a new $70 million construction trades centre at Algonquin College.

While the federal public service continues to provide a great degree of stability and security in Ottawa, there are concerns regarding continued layoffs within the high-tech sector. High-tech jobs have declined by about 14 per cent year-over-year. However, Ottawa’s employment rate is the highest of the 11 economic regions in the province. As such, unemployment levels in Ottawa, at just under six per cent, are relatively stable and expected to remain well under the close to nine per cent provincial average. Given a continuation of sound economic fundamentals in the New Year, Ottawa’s residential real estate market will stay the course. The number of homes sold by year-end is expected to match heated 2009 levels, while average price is expected to post further gains, rising four per cent to $317,500 in 2010. First-time and more experienced buyers are expected to work in tandem, driving activity at virtually all price points. Despite an increase in inventory in the Spring, seller’s market conditions should prevail throughout much of 2010. Low vacancy rates and volatility in the stock market may also spur some investment activity in 2010, as investors seek multi-unit residential property for a long-term hold.

Homes are getting pretty expensive. Im seeing singles pushing 500K in the East and West ends, and Towns pushing 300K.

why? Pent up demand, low inventory and cheap money.

So what happens to the 2nd larget demographic in Ottawa (25-30years old) in a handfull of years when the market is different?

Picture this: You go out, you buy a nice townhome for 270K, you have a child, a dog  – and you live your life.  Now mortgage rates go up (which they likely will), and if you are on a variable rate mortgage it could be a year – or a fixed , maybe a few years – 5 at most.

The past little while has not been a time of economic expansion for yourself, because you’ve been supporting this new family. So what happens when you have to re-negotiate your rate on a home that you were possibly both over-leveraged into and bought for a premium due to affordable rates?  Now you have an expensive home with an expensive loan. hmmm… HOUSE POOR.

Unfortunately, I think this is going to happen to many people.

Makes me happy for all those people I helped buy homes that seemed to be 15-20K under potential market value, and all the while they could have afforded MUCH more – these people will be alright.

What do I think the answer will be? Green Housing. Eco-friendly developments, and heavy government incentives.

I think people are going to need to move to (relatively) more affordable housing (via $$ incentives) that will present a lower carrying cost to offset the volatilty of mortgage rates over the life of the investment.

Incentives for either a green retrofit or new green builds will be a sensible bailout for Canadian homeowners that have overleveraged themselves during THESE times.

I would think that it might be a wise invesment to get into these kinds of homes by buying stock or even buying these homes pre-construction once plans are released.

New technology and architechtural advancements will combine to give Green living a huge appeal in a coutry like Canada – where the land is already are major source of enjoyment.

Cottage living, ice fishing, skiing, snowboarding, hunting, four wheeling, fishing, hiking, sight seeing - all things Canadians enjoy that come from the land.

The harmony between housing and environment has incredible potential – and my prediction is that we will see this relationship grow tremendously over the next 5 years.

Thoughts?

Postscript:

the LARGEST demographic - our parents (50-65 years old) will be looking for LIFESTYLE living solutions that run with the land. Waterfront retirement resorts or granny flats, functional housing backing onto golf courses and wetlands that will provide them with gorgeous views, opportunities to see wildlife and enjoy peaceful walks. These types of housing, being ECO-friendly, will also provide better air quality, more sunlight and perhaps even community gardens. I would PERSONALLY like to see housing for the elderly that not only do this, but also instead of offering RENT  – perhaps the buildings, resort or immediate community could be a corporation – like a condominum arrangment perhaps – where these people can continue to enjoy the benefits of Real Estate investment, while condo fees support staff and management.  Why pay the corporation when you can BE the corporation?

And if you like this blog, check out a few of my other entries:

http://evansmarc.wordpress.com/2008/09/18/agricultural-innovation-out-of-necessity/

 http://evansmarc.wordpress.com/wp-admin/post.php?action=edit&post=26

http://evansmarc.wordpress.com/wp-admin/post.php?action=edit&post=59

Last time it was too canned from an exercise I had done. It didn’t read correctly and was a little scattered.

I took some stuff out, added a little, and re-organized. It definitely reflect the person I am much better. Here goes.

PERSONAL MISSION STATEMENT

My life’s journey is to establish my family as one that is secured, healthy, wealthy, strong and happy.

I will be a person who believed in something bigger than himself, that there was a purpose behind every day of his life and he never lost sight of it. One who devoted all his time and effort to the betterment of his loved ones and raised the bar for the standards in ethic, passion, determination and drive.

I believe that love, passion and caring are to be guiding forces in life.

I am at my best when I am using my unique skills and traits to help others.

I can do anything I set my mind to.

I will lead by example.

I will find opportunities to use my natural talents and gifts.

I will enjoy my work by finding opportunities where I can help people solve problems.

I will find enjoyment in my personal life by providing security, freedom and pleasure.

I will surround myself with family, and a handful of good friends who share my values.

I will stop procrastinating and start working on:

• Realizing my potential.
• Continuously improve my production capacity and set objectives for production.
• Follow through with action steps – implement the knowledge I have gained.

I will strive to incorporate the following attributes into my life:

• Being the only driver in my life. I choose where, when and how
• Dedicated and devoted to my personal mission
• Becoming a true pioneer, an entrepreneur, and a role model

I will constantly renew myself by focusing on the four dimensions of my life:

• Being physically strong and conditioned.
• Personal Values and Principles that guide the person that I am.
• Focus and Unbreakable Ethic. Determination.
• Living with Passion

What’s in your attic? Usually when I have to stick my head up through an attic hatch to inspect the space, I feel a sense of dread. It’s like I’m in a horror movie and there are monsters in the attic. It’s easy to see warning signs of attic problems without going up there — ice dams, roof damage, water dripping from soffit vents, ceiling stains. But just like the guy in the horror movie, I still have to look inside, even though a voice inside my head is saying “Don’t go in there!”

What’s in your attic? If I looked in there, I hope I’d find insulation. I hope there’d be enough vents. I hope I wouldn’t find: mould, wet insulation, dirty insulation, vermiculite insulation and/or no insulation, animal or bird droppings, blocked or non-existent vents, or kitchen and bathroom exhaust fans venting into the attic. But believe me, I’ve found them all.

Of the many problems you can find in an attic, most are caused by inadequate insulation, insufficient ventilation and air movement — and the last one is the most damaging.

You have to have enough insulation in your attic. You really can’t have too much unless you’ve put in so much that you are actually touching the underside of the roof or blocking the venting. Insulation is necessary to prevent or slow the transfer of heat from one area of the house to another — like from your living room into your attic and out the roof. You can use a number of different materials like fibreglass, blown-in cellulose, spray foam, rigid foam, batt insulation, even recycled blue jeans. Insulation will help reduce heat loss, and improve the energy efficiency of your home.

Your attic also must be ventilated. If it isn’t, any moisture or water vapour that is present in the space can lead to serious problems, like mould or rot. A lot of moisture from everyday living — from showers, laundry, doing the dishes — will rise into the attic along with the warm air by which it’s carried. Once there, condensation will occur.

Condensation can soak your attic insulation, destroying its effectiveness. In winter, the warm, moist air sneaks into the attic, where it’s cold or freezing, and frost forms on the underside of the roof. Sometimes homeowners have what they think is a leak in the roof, because there’s moisture or staining on the ceiling of the room below. There may be mould on the underside of the roof sheathing, rafters, or trusses. The plywood sheathing may rot out altogether in time.

You definitely need roof vents — either soffit vents (make sure they aren’t covered by insulation), a ridge vent, or a turbo vent. All vents should have screens to prevent wildlife from getting inside. Check with a professional roofer for how many vents you need, given your roof’s size.

Roof vents move hundreds of cubic feet of hot air and moisture out of the attic.

But, if you do have condensation problems in the attic, increasing ventilation by adding more vents might not be the answer. Too much venting will suck even more warm, moist air out of your living space and into your attic where not only are you wasting heat, you are creating more condensation.

The most important thing to do to prevent attic problems is to properly seal the attic and prevent air movement between the warm and cold zones of your house. If you prevent the warm, moist air from flowing into the attic where it will inevitably condense, you likely won’t see problems with moisture and mould.

Air leakage is the cause of ice dams — one of the biggest problems I see with roofs in the winter months. When the temperature outside is below freezing, the top surface of your roof is cold (as it should be) and snow that falls stays on the roof.

But if warm air leaks into your attic, it will melt the snow from the underside. That creates a runoff that will refreeze further down the roof close to the eaves. This melting and refreezing will eventually build up to an ice dam, which can create a lot of damage as melted snow and ice find their way up behind the roof shingles, into your attic and possibly into your living space.

Original Source:  http://homes.winnipegfreepress.com/index.php?action=news&step=article&id=1106

September 22, 2009 Niagara Fallsview Casino Resort, Niagara Falls, Ontario – Toronto’s popular high rise builder Tridel, captured top honours when it was named 2009 Ontario Home Builder of the Year by the Ontario Home Builders’ Association. The award highlights the home building company that sets the standard for the rest of the industry through its leadership in improving the overall image of the industry. The award is presented to the company that demonstrates the highest levels of performance based on surveys from home buyers along with stringent judging criteria in the areas of sales and marketing excellence, unique floor plan design, community service, support of the industry and its ability to adapt to changing needs. Ontario Home Builder of the Year is among 29 categories in the OHBA Awards of Distinction program which honours innovation and excellence in the areas of design and sales and marketing.

 The 2009 Ontario GREEN Builder of the Year was presented to Durham Custom Homes of Oshawa who clearly demonstrated that it is possible to take an enthusiastic environmental approach and apply it to all facets of their company. Judges of this highly sought after award included representatives from Canada Mortgage and Housing Corporation, Tarion Warranty Corporation, the Consumers’ Association and the Ministry of Municipal Affairs and Housing, as well as Ontario’s former Chief Energy Conservation Officer, Peter Love .

The following companies took home first place awards in 2009:

ARCHITECTURAL DESIGN:

Most Outstanding Production Built Home – 1 storey up to 1900 sqft.: Geerstma Homes Ltd., for Grandview Estates – “The Grandhaven”, Quinte West

Most Outstanding Production Built Home – two storey up to 2500 sqft.: Brookfield Homes, for The Village –“Hillebrand with Optional Loft”, Niagara-on-the-Lake (credit to: Viljoen Architect)

Most Outstanding Production Built Home – two storey 2500 sqft. and over: Reid’s Heritage Homes, for The Residences of Cobble Beach – “The Winthrop”, Owen Sound

Most Outstanding Custom Home – under 2500 sqft.: Oke Woodsmith Building Systems, for “Finch”, Lambton Shores

Most Outstanding Custom Home – 2500 – 5000 sqft.: Christopher Simmonds Architect Inc., for “Arbour Court”, Gloucester (credit to: Lorenzo and Emily Nicolini)

Most Outstanding Custom Home – 5000 sqft. and over: Teddington Homes, for “134 Riverview”, Toronto (credit to: Ray Murakami – Architect; Anne Johnston – Interior Designer; Reza Hosseinian – Builder)

Most Outstanding Attached Multi-Unit Home – semi/town home/stacked: Christoper Simmonds Architect Inc., for “95 Riverdale”, Ottawa (credit to: Guy Robinette)

Most Outstanding High Rise Building: Amexon Development Corporation, for South Beach Condos + Lofts, Phase One, Toronto (credit to: II by IV Design Associates, Arsenault Architects)

Most Outstanding High Rise Condo Suite: Aspen Ridge Homes, for Scenic on Eglinton – “Suite J” , Toronto (credit to: Page + Steele Architects)

Most Outstanding Home Renovation: Oke Woodsmith Building Systems, for “Arnold Crescent”, Bluewater

ROOM DESIGN:

Most Outstanding Kitchen: Christopher Simmons Architect Inc., for “Kenwood Residence”, Ottawa (credit to: BCR Woodworking)

Most Outstanding Bathroom: Landmart Homes, for Bel Air- “The Clara”, Ancaster (credit to: Hampton Kitchens, Ruth O”Neil Inc, McConnell Plumbing & Heating))

COMPANY IMAGE & ADVERSTING:

Best Internet Website: Amicone, for Bob Lo – www.boblo.ca (credit to: Gerry Ryan. G. Ryan Design)

Best TV or On-site Video/Digital Presentation: TAS DesignBuild, for Giraffe Condominiums, Toronto (credit to: Zerofractal Studio)

Best High Rise Ad Campaign: Monarch Corporation., for Couture, The Condominium, Toronto (credit to: The Brand Factory Advertising & Design)

Best Low Rise Ad Campaign: Branthaven Homes, for BeachHouse, Burlington

Best Project Logo Branding: Bazis International, for Emerald Park, Toronto (credit to: Gerry Ryan, G. Ryan Design.)

Best Project Sales Brochure – Low Rise: Branthaven Homes, for BeachHouse, Burlington

Best Project Sales Brochure – High Rise: Empire Communities, for Fly Condos, Toronto (credit to: Montana Steele Advertising)

ON-SITE SALES PRESENTATION :

Best new Home Sales Office – under 1500 sqft: Devonleigh Homes Inc., for Brownley Meadows, Angus (credit to: Lawlor & Company)

Best new Home Sales Office – 1500 sqft and over: Lanterra Developments, for ICE Condominiums at York Centre, Toronto (credit to: Munge Leung Design Associates, Montana Steele Advertising)

Best Design Centre Remington Homes, for The Design Studio by Remington, Markham (credit to: Watt International Inc. Andrew Gallici)

Best Interior Decorating – Model Home/Suite – under 2000 sqft.: Amexon, for South Beach Condos + Lofts, Phase One – “The Delano”, Toronto (credit to: II by IV Design Associates, project3sixty.ca, Euroline Appliances)

Best Interior Decorating – Model Home/Suite – 2000 sqft. and over: HUSH, for Estates of Olde Meadowvale Village – “Reading”, Mississauga (credit to: In2ition Design Division, In2ition Marketing Insights)

PRESTIGE AWARDS:

2009 Product of the Year – non builder: EnerQuality Corporation, for GreenHouse™ Certified Construction, Toronto

Project of the Year – Low Rise: Brookfield Homes, for The Village, Niagara-on-the-Lake (credit to: Duany, Plater-Zyberk & Company, The MBTW Group, and Watchorn Architect Inc.)

Project of the Year – High Rise: Aspen Ridge Homes, for Scenic on Eglinton, Toronto (credit to: Page + Steele Architects, Mike Niven Interior Design, the Brand Factory)

2009 Ontario GREEN Builder of the Year Durham Custom Homes, Oshawa

2009 Ontario Home Builder of the Year: Tridel, Toronto

It was a little less than a year ago that the global financial crisis began to hit home, which is to say that mortgage rates spiked higher. Now, the cost of mortgages is coming down. If you’re buying a home or renewing a mortgage, it’s time to review your options. Fixed-rate mortgages declined a little last week, but the most dramatic changes can be seen in variable-rate mortgages. For the first time in almost a year, it’s possible to get a variable-rate mortgage at the prime rate used by most major financial institutions, which is currently 2.25 per cent.

Pre-crisis, variable-rate mortgages came with discounts that ranged from 0.75 percentage points to as much as 0.9 points off prime. By late last fall, crisis conditions prompted lenders to start charging prime plus a full percentage point or more. Now, some lenders are starting to unwind their crisis-rate premiums.

“Variable-rate mortgages are all over the map right now,” said Gary Siegle, regional manager with the mortgage brokerage firm Invis Inc. in Calgary. “We’re seeing them right in the area of prime with some lenders.”

An example of a variable-rate mortgage at prime: ResMor Trust, a small player that deals through mortgage brokers, is offering four-year variable-rate mortgages at prime in all provinces except Quebec. The catch: You have to have your mortgage approved by Sept. 30 and close the purchase within 45 days.

Can variable-rate mortgages fall back to their pre-crisis lows any time soon?

“Definitely, 100 per cent, no,” said Robert McLister, a mortgage broker and author of the Canadian Mortgage Trends blog (canadianmortgagetrends.com). “Could they get a little below prime? Definitely.”

Okay, it’s strategy time. With prime at 2.25 per cent and fully discounted five-year fixed-rate mortgages going for something in the area of 3.9 to 4.1 per cent, you’re got some thinking to do if you’re buying a home or renewing a mortgage.

The variable rate looks tempting. Sure, the prime is going to rise in the medium term, but it’s expected to stay put until next spring at least. Even when prime does move higher, it will have to increase by roughly 1.75 percentage points to get to where today’s five-year mortgages are.

“The risk is obviously that rates go up a lot more,” Mr. McLister warned. “Rates went down four percentage points from December, 2007, through April, 2009. They could easily go up four – why not?”

Variable-rate mortgages allow you to lock into a fixed-rate mortgage, so there’s no reason why you have to ride interest rates all the way up. Still, you have to recognize that fixed-rate mortgages could be significantly more expensive by the time you decide to lock in.

An academic study of rates between 1950 and 2007 found variable-rate mortgages were the money-saving choice over five-year fixed-rate mortgages 89 per cent of the time. If you’re willing to ride rates higher for a while in hopes of longer-term savings on interest costs, then consider a possible approach suggested by Mr. McLister.

Instead of arranging a variable-rate mortgage now, go for a one-year fixed-rate mortgage. Then, when you’re renewing in one year’s time, you’ll move into a variable-rate mortgage that will ideally have a rate that is discounted below prime.

Fully discounted one-year closed mortgages today go for about 2.55 per cent, so you’re not paying much of a penalty at all compared with what variable-rate mortgages are pegged at right now.

Another suggestion from Mr. McLister is to consider a three-year mortgage, which offers an attractive blend of low rates and security against interest rate surges. Three-year mortgage typically go for around 3.39 per cent on a fully discounted basis, but he knew of one small lender offering 2.9 per cent through the mortgage broker channel.

The case for going with a five-year fixed rate is that rates are very cheap by historical standards. Rates were a little bit lower last spring, but they’re not as high as they were a month or two ago thanks to a pullback in bond yields that has trickled down to fixed-rate mortgages.

Mr. Siegle said over half of his firm’s clients are locking into a fixed-rate mortgage right now. “You can’t ever time the bottom of the market, but are these good rates that you can be comfortable with? A lot of people are saying, ‘yeah, they are.’ “

Source: http://v1.theglobeandmail.com/servlet/story/LAC.20090915.RCARRICK15ART1924/TPStory/TPBusiness/#

When representing a Buyer I often get asked, “Is your commission negotiable?” Quite often, my reply is, “Well, anything is negotiable – but my bottom line does not move, I’m sorry.”

How rude.

Really?

The way I see it, and I am confident that any good Realtor sees it – is that they are worth something. My time is worth something, so is my effort and my results. But enough about me – what about the client?

How does a discounted commission effect the people whom we represent? For one – Buyers signed up under Buyer Agency Agreements (BAA) have me and my entire brokerage behind them finding them the best deal possible. In this BAA we talk about big bad commission and how much money we are going to make by doing all of this work. Quite often enough, the commission is set at 2.5%. I let my buyers know that in the event that the listing end is NOT offering 2.5% to my brokerage, then they will be responsible for the difference up to the stated amount (i.e. Listing offering 1.5% and Buyers agree my brokerage should get 2.5% – the BUYERS will pay the 1% deficiency). I also tell my buyers that there will be a deficiency BEFORE the offer is made, and that they may have to pay themselves. So what do they do? What would you do? Let say the offer price is $250,000 and you now realize you will have to pay me a $1000 shortfall. What would you do? Just as I thought – you would offer $249,000 and pay me. So who’s pocket does the money come out of? RIGHT! – the SELLERS (they got $1000 less in their pocket, and the Buyers still paid the regular price in the end).

So tell me – why are sellers only offering 1.5% up when the offers coming in are going to be 1% less to make up the difference?

What’s worse is that it is possible that these Sellers who are not offering a fair commission to cooperating brokerages, are not getting fair exposure to buyers because other Salespersons may be hesitant to show properties that aren’t paying! These Sellers are often seen as headaches to a lot of people (sorry to say, but Im being honest) – when it doesn’t even make a difference to how much $$ is involved! Why make yourself a headache for no reason? Why put a big X on your forehead for NO REASON?

So the money comes out of the SELLERS pocket regardless, and now the seller is hurting their chances of getting the BEST kinds of Buyers in to their house (qualified by buyer agents aka they HAVE MONEY), AND they have set the stage for a potential deal with two picky and unhappy parties. Who wins? The sellers don’t, I know that much.

So what about the Seller that has a Professional Real Estate Salesperson list their home for them and who agrees to take a hit on their commission to get the business?

To this Seller I have one question: Do you REALLY want a Salesperson to price, list, negotiate, and close on your home – one of the biggest investments in YOUR life (not theirs), one that is supposed to represent your best interests and fight for you and your bottom line – if they can’t represent their own best interests properly, fight for themselves or their own bottom line? Do you? What if I told you this discount commission you are ‘saving’ is actually coming out of your pocket REGARDLESS in the form of a % difference on incoming offers to pay the buyer agent? WHAT IF the salesperson employed is giving you a certain % of their effort for your certain % of pay?

You shouldn’t want that. You should want a strong, smart, resourceful and determined Salesperson that will not only stand up for themselves, but stand up for YOU and YOUR INVESTMENT and YOUR MONEY.

I wouldn’t hire a discount army to defend my country and I wouldn’t hire a discount doctor to look after my loved ones. I don’t even want a discount dry cleaner to clean my suits for Pete’s sake! Why would anyone want a discount Realtor to represent them with hundreds of thousands of dollars in the balance?

Do a good job, deliver what you said you would, and make me happy and you will get my business.

This country was founded on hard work that relied on honourable businessmen with integrity and an unbreakable work ethic. When my grandfathers were working in the bush and risking their lives to feed their families, or working with the military to rescue my relatives from abroad – they did so with by being strong, prepared, qualified, honest, smart, determined, and hard working.

 As they were – so am I.

I will not negotiate my bottom line, and I will not negotiate yours.

PRICE – Pricing the Home – MOST MONEY POSSIBLE

• Know exact Value (Past Trends and Comparables)
• Know Acceptable Mark-up (Street Specific)
• Price to Situation (Low if you need to sell, higher end all else)
• Do NOT overprice (worst thing you can do)

EXPOSURE – Marketing the Home – BEST ODDS OF MOST MONEY

• De-Clutter and Stage
• Signage (Front Lawn + Directional’s)
• Print Advertising (Magazine, Newspapers)
• Website Advertising
• Local Advertising (Flyers, Feature Sheets in local stores)

QUALIFY – Qualified Buyers – BRING MONEY TO THE TABLE

• Make sure they have been pre-approved
• Verify personal circumstances to make sure they can act and aren’t wasting your valuable time
• If they are working with a Realtor, you can be assured they are qualified

NEGOTIATE – Watch bottom line – KEEP MONEY IN YOUR POCKET

• Remember your pricing strategy and stick to your guns
• Play the Buyer’s role and try to identify your own weaknesses
  • Deal with them before the Buyers do

CLOSING – Secure it – FOLLOW MONEY TO YOUR BANK ACCOUNT

• Contracts, Clauses and Conditions
• Schedule Conditions and Manage them
• Be diligent until deal is tendered

Be smart, be prepared, work hard and a Profitable Sale can be made – I do it all the time.

To get you started, I would be glad to offer you some of the basic sales statistics in your area to give you a better idea of how to price your home– no obligation.

If at any time you would like to hear how I can significantly increase the odds of bringing good money to the table, keep it in your pocket and make sure it gets to your bank account – please do not hesitate to ask me. It’s my job and I am very good at what I do.