Ontario’s rent increase guidelines determine how much a landlord can raise the rent – excepts apply
The Ontario rental increase government determine the maximum amount rent can be increased each year. The annual rent increase is calculated based on the Consumer Price Index. For 2013 the maximum rent raise is 2.5%. Therefore if you are currently renting your unit out for $1000 you can bump the rent up to $1025 for 2013.
In most cases, the rent for a unit can be increased if at least 12 months have passed since a tenant first moved in, or if at least 12 months have passed since the last rent increase. Proper notice of 90 days must be given to the tenant before the rent increase takes effect.
Types of conditions a buyer can place on their home purchase offer
If you have ever purchased a property in Ontario, you may have heard the term “conditional offer” when working with your sales representative or broker.
If so, you’re not alone – making conditional offers in Mississauga real estate is one of the most common practices. As long as they are effective and reasonable, adding conditions to your offer can be a great way to achieve some added peace of mind as a home, condo or property buyer.
When a real estate sales agent and the buyer he/she is representing decide to submit an “Agreement to Purchase” on a listed Ontario property, that offer will often contain conditions. These are intended to ensure that the buyer is protected from unforeseen upsets that would complicate or prevent the sale, such as denial of a mortgage. The conditions must be met and fulfilled or waived within a set period – usually three to seven days.
Using real estate to teach your kids financial responsibility
Investors already know that buying real estate is a solution to paying for a child’s education however, this may not be the right solution. In fact, it could be detrimental to a child’s performance, according to a paper published by University of California, “More is More or More is Less? Parent Financial Investments During College.” It suggests that there is a direct relationship between parents who pay the bills and lower academic performance by their children.
Rather than let your children party at school while you are stuck with the bills, why not use your real estate to teach your children financial responsibility. Below are four strategies for getting your kids to pay for their own education and at the same time, teach them real estate investing skills.
1. Teach them property management
If your properties are less than five years old (i.e. low maintenance) and your child goes to a school near your properties, why not have them manage the properties as their part-time job? Better yet, have them live in a unit as their principle place of residence and rent out the extra rooms to friends. Teach them how to manage the properties like a pro, with the right agreements, contracts, and templates. And don’t forget to teach them about all the applicable rental regulations. Now, they can use the cash flow from the properties to help pay for their own tuition and books.
The pros and cons of pocket listings: your agent handling all the marketing without MLS
Pocket listings or whisper listings (sometimes called inside listings) exist outside the MLS system. They are basically what we commonly see advertised as “exclusive” listings. What you need to know about pocket listings is your Realtor will be marketing your home without posting it to the MLS and all prospective buyers will inquire directly through him.
This means your home won’t really be on the open market. It will not be available to other realtors through the local real estate board (the back end of the MLS) or to the general public through Realtor.ca. The good thing about this is that your realtor will have more control over who will visit your home. The bad thing is the most powerful marketing tool normally used to sell homes has been taken out of the mix.
Why List your Home Exclusively?
1. To save money. Instead of splitting a 5% commission with a cooperating brokerage, your agent will keep the entire commission. An exclusive listing usually comes at a reduced commission rate of 3.5-4%.
2. If you have a stigmatized property. Maybe something really horrendously horrible happened in your house (use your imagination) and you don’t want the neighbours and the general public to turn your home into a gawking tour.
How to negotiate for both the buyer and seller to meet their pricing objectives
For both buyers and sellers, the home price negotiation process can be an emotionally draining element of securing the deal. Nonetheless, it is still a crucial stage in which pre-conceived ideas and objectives can be realized through the use of pragmatic negotiation strategies. Home price negotiation does not have to be overly complex. Here, we’ll outline some negotiating tips that both buyers and sellers can use to set the foundation for meeting their pricing objectives.
Before entering the negotiation process, buyers and sellers must determine their number one objective. Objectives might include: selling or buying at a set price, ensuring the deal is closed by a certain date due to work of family obligations, or retaining a strong relationship with the selling/buying party to ensure any post-closing issues can be resolved amicably. By deciding on their real estate deal objectives before they enter the negotiation process, buyers and sellers can move forward with a tangible goal foremost in their thoughts.
Leverage is critical to the successful completion of any property pricing negotiation. Buyers and sellers must consider elements such as the overall market conditions, the other party’s level of urgency and the number of interested buyers for the property when considering their leverage. For example, buyers who know that they are the only ones to bid on a home have strong leverage when it comes to deciding their price-point. The more leverage achieved by the buyer/seller before negotiation begins, the greater the chances they have of achieving their set objectives.
How obligations the bank has when they foreclose on a home in Ontario
Foreclosure is the legal right of a mortgage lender or other third-party lien holder to gain ownership or the right to sell the property and use the proceeds to pay off the mortgage, legal fees, commissions, court costs, utilities, etc., when the mortgage or lien is in default. The process is different in Canada because the laws in Canada are different.
The way a mortgage or lien holder gains ownership after default varies from state to state in the U.S. as well as province to province in Canada. How foreclosure works in Ontario involves two main methods. Without getting too far into the technical details, the first involves the lender taking title to the property and then selling it. The other allows the lender to control the sale of the property through a court order without having title.
Generally speaking, U.S. and Canadian banks want their “non-performing mortgages” off their books so that they can lend out their money again and collect interest from performing loans. They are not interested in becoming landlords or flipping property.
An indoor swimming pool is a popular option for many expensive or high-end luxury homes. Even if you don’t live in a mansion or very expensive home, you may be considering adding an indoor swimming pool. However, before you do – consider the following:
The most obvious benefit of an indoor swimming pool is its ease of access and proximity to your living area. Also, having an indoor swimming pool will allow you to enjoy a leisurely swim even on days that are cloudy or rainy. Many indoor swimming pools are equipped with heating systems that allow you to control the temperature of the water, and this can make for a more enjoyable swimming experience.
Also, there is no need for winterizing an indoor pool because the pool is not exposed to cold winter weather. Finally, maintenance on indoor pools is a lot less as the pool is not exposed to the outside dust and debris that is normally blown into an outdoor pool by the wind – that means less frequent pool cleaning.
Top considerations when buying a new home
Now that you’ve decided to buy a home, revenue or recreation property in the Mississauga area, ask yourself what specific type of neighbourhood or investment you’re interested in. List your space needs, including:
-living space requirements (i.e. how many bedrooms, bathrooms)
-type of property (i.e. townhome, condo, rancher, acreage)
-proximity to schools, recreation, waterfront, views
-target price range
It’s important to be realistic when you’re thinking about a down payment and setting a price range. It’s a good idea to talk things over with your real estate sales professional. I am here to provide you with the advice you need to make owning property in Mississauga and the surrounding area a reality. Are you are first time home buyer? I will guide you through each step serving your best interests.
How to get your pets out of the way of prospective home buyers
Some potential buyers who view your property may love pets as much as you do. However, others may be turned off by the tell-tale signs of pet ownership – such as kitty litter, dander, and smells.
So be sure to make a plan for selling a home when you have a pet.
It’s a good idea to keep pets out of the house during viewings. Even if your dog or cat is friendly, some buyers will be uncomfortable around them. So, you’ll need to decide where your pets will go when buyers view your property. Consider a local kennel or “pet day camp”.
“Can’t I just take my dog out for a walk?” you might be asking. You could; however, you may not always be available to do that during a viewing. So have alternate plans available.
You should also consider how you will deal with pet dander and everyday pet odours. You’re probably used to them. Unfortunately, some buyers will be turned off or even be allergic. So, in addition to cleaning your home before a viewing – especially in those areas where pets spend time like a favourite cushion or scratching post – consider using specialty air sprays available on the market that will neutralize pet odours.
Comprehensive list of additional expenses you may incur when purchasing a home
Lots of people who decide to buy a home haven’t got a clear idea about all of the costs involved, beyond the purchase price and, perhaps, the legal fees. We often enter into the biggest purchase of our life without a clear plan, research or budget.
Here are some additional costs when buying a home that should be considered:
Mortgage Loan Insurance:
If you are putting less than 20 per cent of the house value down, you’re going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments. Usually, mortgage loan insurance premiums range between 0.5% and 2.75% of the principal plus applicable fees.
Lenders typically loan a percentage of the home’s purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.
The lender may ask for a current survey or certificate of location before signing off on the loan. There can be a substantial cost for having a new survey done on the property.