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Archive for the ‘Real Estate’ Category

All about the real estate in Toronto

Tuesday, September 6th, 2011

Real estate plays a very important role while considering the economy of any country and when it comes to the global real estate market, Canada plays a very important role. It is Toronto which has boosted up the real estate market of Canada.

Considered the most sizzling city of Canada, Toronto has a social culture which is beneficial for a perfect real estate market. Toronto is a mix of vibrant culture; beautiful architecture spreads across the city and a great historical background. It is a place which has large amount of educated population. All these plays a vital role and are the major reason behind the immune property rates in Toronto compared to other parts of the world specially during the US crisis. Both the residential and the commercial properties in Toronto have gained a good real estate value.

Real estate in Toronto is said to be the base of the Canadian market especially since past 10 years. It is the pillar strength for the Canadian market. Organizations like CMHC (Canada Mortgage and Housing Corporation) have given rates for the properties in Toronto for the coming years. They use factors like mortgage rates, income, employment and various demographics in which the property is located.
Whenever the rates are higher it would reduce the housing demands and this is the reason why the mortgage rates are having greater impact on the real estate market of Toronto. If the mortgage rates are higher than the price of the house also goes higher and thus it gets difficult for the first time house buyers to buy a property in Toronto. During past few years it has been observed that the mortgage rates have gone up a bit and due to it even the property rates have been increased in Toronto.

Real estate in Toronto has been successful due to 2 major reasons. The first one is the employment ratio and the second one is the average income of the population. Majority of the Canadian population have a full time job and thus the income would also be more. The country is in general need for the work force. All this factors would contribute towards the increasing need of buying a property. If people are earning more they would have more money to spend somewhere.

The migrations also play an important role in the real estate scenario of Toronto. More and more number of people are migrating there and also it is great tourist destination. This would influence the potential buyers to buy a property at this location so that they could get more returns. But also this contributes towards higher mortgage rates. Foreign investors have purchased a larger number of luxury properties in Canada. In fact these investors are the major buyers of the luxury properties.

About Foreclosure Real Estate Investment Strategies

Friday, August 13th, 2010

Foreclosure real estate investing can be a profitable niche for those who take time to learn the strategies. Foreclosed realty encompasses a variety of properties including residential homes, vacant land, and commercial real estate.

When buying foreclosure real estate, investors must be financially prepared to invest in property repairs or renovation. While foreclosed properties are priced below market value, homes requiring substantial repair can quickly deplete home equity.

Investors must engage in due diligence by reviewing comparable sales reports and obtaining home inspections, property appraisals, and repair cost estimates to determine the true cost of buying foreclosure properties.

Several options exist for locating foreclosed properties at discounted prices. The most common is to attend public foreclosure auctions. All properties presented through auction are sold in “as-is” condition. Buyers must be prepared to submit payment in full within 24 hours once their bid is accepted. Once realty is transferred, property owners are responsible for removing creditor and tax liens and making necessary repairs.

Another option is to seek out foreclosure short sale homes. These properties are in the midst of the foreclosure process and purchase negotiations take place with lenders’ loss mitigation department.

With short sales, lenders agree to accept less than the full amount owed on the home loan. Properties are listed through realtors or sold directly through the bank. The short sale process can be complex and lengthy; taking up to four months or more to complete. Buyers must obtain prequalified financing prior to submitting an offer. It is important to note that banks rarely accept offers lower than the asking price unless property inspections reveal major problems.

Short sale houses can provide investors with a good deal, but may not be the best option for investors who participate in house flipping or plan to use the home to generate rental income. Buyers willing to wait out the process can generally purchase homes at 10- to 20-percent below appraised value.

One way to obtain the best price on foreclosure properties is to seek out private investors who specialize in wholesaling. Some investors and investment groups purchase entire bank portfolios consisting of dozens of bank owned foreclosure properties.

Also known as real estate owned (REO) homes, these properties are houses that did not sell at auction. One of the biggest advantages of REO property is houses are sold with a clean title. When banks regain ownership of foreclosure real estate they remove attached creditor and tax liens and commence with eviction action when foreclosed homeowners refuse to leave the premises.

Foreclosures, short sale and bank owned real estate nearly always require some level of repair. Investors must take time to calculate the true cost of the property before making an offer to buy. Otherwise, investors could hold title to a money pit which could take years to financially recover from.