Your REALTOR's job is to find you a home, not give you legal advice. Keep in mind that your agent is usually paid only after you purchase a home and their fee often comes out of the proceeds; think about it.
Your lawyer's only job is to look out for your best interests. A written agreement to purchase a home binds you legally to its provisions. Before you sign anything, your lawyer can review the agreement and advise you of changes, clauses or contingencies that they feel are necessary. You are not obliged to use a lawyer recommended by either your agent or your lender.
Happy house hunting,
David Shieh
Posted by David Shieh- Abbotsford Real Estate Agent
Monday, February 26, 2007
Thursday, February 22, 2007
Do-It-Yourself Buyers - Get your own real estate agent!
Most of us think of a real estate agent as
representing the seller, which they usually
do. But having your own agent to help you
buy a home can save you time and money.
A good buyer's agent can help you find the
right home quickly because they know the
area and have access to listings, agent open
houses and other information.
Your buyer's agent can advise you on market
conditions and appropriate prices, pre-inspect
homes for you so you don't waste time on
something completely unsuitable and recommend
the other professionals you need from home
inspectors to lawyers. The seller's agent has a legal
responsibility to act in their best interest, not
yours. You need a trained professional in your
corner, and that's a Buyer's Agent.
It is essential to communicate exactly what your
needs are to your Buyer's Agent, so you are both
looking for the same home. Choose your agent
with as much care as if you were selling a home
and if he wants you enter into a formal agreement,
make sure it includes a cancellation clause in
case you aren't satisfied with the service.
Happy house hunting,
David Shieh
Posted by David Shieh- Abbotsford Real Estate Agent
representing the seller, which they usually
do. But having your own agent to help you
buy a home can save you time and money.
A good buyer's agent can help you find the
right home quickly because they know the
area and have access to listings, agent open
houses and other information.
Your buyer's agent can advise you on market
conditions and appropriate prices, pre-inspect
homes for you so you don't waste time on
something completely unsuitable and recommend
the other professionals you need from home
inspectors to lawyers. The seller's agent has a legal
responsibility to act in their best interest, not
yours. You need a trained professional in your
corner, and that's a Buyer's Agent.
It is essential to communicate exactly what your
needs are to your Buyer's Agent, so you are both
looking for the same home. Choose your agent
with as much care as if you were selling a home
and if he wants you enter into a formal agreement,
make sure it includes a cancellation clause in
case you aren't satisfied with the service.
Happy house hunting,
David Shieh
Posted by David Shieh- Abbotsford Real Estate Agent
Tuesday, February 20, 2007
Why put any money down on a home?...Go 100% financing!
Why put any money down on a home?...Go 100% financing!
With the recent enhancements to 100% financing products which allow for fully discounted broker rates, it is a wonder if there is any benefit to making a down payment on a home if you don't have to. For example:
With 5% down payment - the insurance premium is 2.75%
With 0% down payment - the insurance premium is 3.10%
Taking that into consideration, let's see what difference it makes on a $300,000 purchase.
At 95% Financing:
Purchase Price: $300,000
Down Payment: 5% = $15,000
Insurance Premium: 2.75% = $7837.50
At 100% Financing:
Purchase Price: $300,000
Down Payment: 0% = $0
Insurance Premium: 3.10% = $9300
So, for a premium difference of only $1463 you don't have to make a down payment.
Furthermore, take that $15,000 and deposit it into an RSP. At an average 40% refund rate you would get approximately $6000 back.
Apply that refund back onto the mortgage and not only have you reduced your mortgage amount by $6000 but you also have a $15,000 RSP.
Happy house hunting,
David Shieh
Posted by David Shieh- Abbotsford Real Estate Agent
With the recent enhancements to 100% financing products which allow for fully discounted broker rates, it is a wonder if there is any benefit to making a down payment on a home if you don't have to. For example:
With 5% down payment - the insurance premium is 2.75%
With 0% down payment - the insurance premium is 3.10%
Taking that into consideration, let's see what difference it makes on a $300,000 purchase.
At 95% Financing:
Purchase Price: $300,000
Down Payment: 5% = $15,000
Insurance Premium: 2.75% = $7837.50
At 100% Financing:
Purchase Price: $300,000
Down Payment: 0% = $0
Insurance Premium: 3.10% = $9300
So, for a premium difference of only $1463 you don't have to make a down payment.
Furthermore, take that $15,000 and deposit it into an RSP. At an average 40% refund rate you would get approximately $6000 back.
Apply that refund back onto the mortgage and not only have you reduced your mortgage amount by $6000 but you also have a $15,000 RSP.
Happy house hunting,
David Shieh
Posted by David Shieh- Abbotsford Real Estate Agent
Friday, February 09, 2007
Buy if you love Canada
This editorial first appeared in the December 25, 2006, issue of Maclean’s magazine:
Buy if you love Canada
How much are Canadians worth? The short answer: a lot. Last week’s study by Statistics Canada, "The Wealth of Canadians," was so full of good tidings one scarcely knows where to start. The total value of Canadians’ assets is up 42 per cent since 1999, to a staggering $5.6 trillion. And the net worth of the median Canadian family now stands at $148,400.
Curiously, most reporting on this study fixated on the increase in household debt, which also rose substantially to $760 billion. This was widely seen as evidence that Canadians are finding themselves deeper in debt and worse for it. A closer look reveals not a dangerous predilection for careless spending, but rather an astute investment in both personal wealth and social stability.
According to StatsCan, three-quarters of total household debt is mortgages. Credit card debt is a mere 3.4 per cent. This great emphasis on mortgage debt has pushed the rate of home ownership in Canada from 59.6 per cent to 61.9 per cent over the past six years. It’s a statistic worth celebrating. But can we do even better?
The financial benefits of owning your own home are substantial. It represents the bulk of Canadian families’ personal assets as well as a kind of retirement savings program. But the country as a whole also gains from broad-based home ownership. In many ways, the homeowner is the modern version of Thomas Jefferson’s yeoman farmer, the bedrock of democracy and political participation. Owning a home means having a stake in the functioning of society. Homeowners tend to be regular voters, are more engaged in their local institutions, and contribute to their neighbourhoods in ways that renters do not. Rising home ownership rates reflect a general sense of optimism in Canada. Even higher levels of debt would thus be welcome, if it meant more Canadian families were getting their own bit of land.
It is an odd thing, then, that no politician or political party seems interested in championing the Canadian dream of home ownership. Low inflation and corporate competition have resulted in innovations such as zero-down mortgages and 35- or 40-year amortizations, making mortgages more affordable. But at the same time, a great many government policies seem specifically designed to drive home prices upward. Greenbelts, mandated density rules and other forms of restrictive planning conspire to frustrate home ownership by making houses more expensive, particularly in larger urban centres. "Sprawl" is the pejorative urban planners use when they wish to ignore the benefits of owning your own home.
The Australians, by contrast, embrace this dream. "We should encourage and nurture the aspirations to home ownership," said Peter Costello, the treasurer of Australia, this past summer in lamenting the various local planning barriers to growth in his country. Home ownership rates in Australia are nearly 70 per cent, among the highest in the world. Yet the federal government wants to push it even higher because the benefits are so obvious and wide-ranging. Is there anyone in Canada who will take up a similar crusade?
Posted by David Shieh- Abbotsford Real Estate Agent
Buy if you love Canada
How much are Canadians worth? The short answer: a lot. Last week’s study by Statistics Canada, "The Wealth of Canadians," was so full of good tidings one scarcely knows where to start. The total value of Canadians’ assets is up 42 per cent since 1999, to a staggering $5.6 trillion. And the net worth of the median Canadian family now stands at $148,400.
Curiously, most reporting on this study fixated on the increase in household debt, which also rose substantially to $760 billion. This was widely seen as evidence that Canadians are finding themselves deeper in debt and worse for it. A closer look reveals not a dangerous predilection for careless spending, but rather an astute investment in both personal wealth and social stability.
According to StatsCan, three-quarters of total household debt is mortgages. Credit card debt is a mere 3.4 per cent. This great emphasis on mortgage debt has pushed the rate of home ownership in Canada from 59.6 per cent to 61.9 per cent over the past six years. It’s a statistic worth celebrating. But can we do even better?
The financial benefits of owning your own home are substantial. It represents the bulk of Canadian families’ personal assets as well as a kind of retirement savings program. But the country as a whole also gains from broad-based home ownership. In many ways, the homeowner is the modern version of Thomas Jefferson’s yeoman farmer, the bedrock of democracy and political participation. Owning a home means having a stake in the functioning of society. Homeowners tend to be regular voters, are more engaged in their local institutions, and contribute to their neighbourhoods in ways that renters do not. Rising home ownership rates reflect a general sense of optimism in Canada. Even higher levels of debt would thus be welcome, if it meant more Canadian families were getting their own bit of land.
It is an odd thing, then, that no politician or political party seems interested in championing the Canadian dream of home ownership. Low inflation and corporate competition have resulted in innovations such as zero-down mortgages and 35- or 40-year amortizations, making mortgages more affordable. But at the same time, a great many government policies seem specifically designed to drive home prices upward. Greenbelts, mandated density rules and other forms of restrictive planning conspire to frustrate home ownership by making houses more expensive, particularly in larger urban centres. "Sprawl" is the pejorative urban planners use when they wish to ignore the benefits of owning your own home.
The Australians, by contrast, embrace this dream. "We should encourage and nurture the aspirations to home ownership," said Peter Costello, the treasurer of Australia, this past summer in lamenting the various local planning barriers to growth in his country. Home ownership rates in Australia are nearly 70 per cent, among the highest in the world. Yet the federal government wants to push it even higher because the benefits are so obvious and wide-ranging. Is there anyone in Canada who will take up a similar crusade?
Posted by David Shieh- Abbotsford Real Estate Agent
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