During the construction of their dream home, the Edgerton family was faced with some unexpected financial situations that took a toll on the way they live now. Mr. Edgerton lost his job just after signing on to build their home; then shortly after hit with a $27,000 bill from their contractor for extra costs. Leaving them to use money from their credit cards and line of credit to cover it all. After the home was finished, they have continuously lived a frugal life cutting down on the extras in life and stopping their payments to their retirement fund and their daughters RESP. Although they made smart decisions regarding their credit cards using a calculator by https://www.interestrates.ca to manage their debt on low interest credit cards, often dipping into credit cards for monthly expenses was not a great way to live.

The Edgerton family live in the prestigious Lachute, Que., area; which is approximately an hour from Montreal. They are away from the typical hot zones for housing such as Toronto and Vancouver. In order to build their home outside of these hot zones, with the designs that they desired, they ended up with a $413,000 mortgage. According to the Edgerton family they spend nearly 43 percent of their combined income just to coverage their mortgage payments and other housing expenses that come with being a homeowner. One they have finished paying their monthly bills and purchasing groceries, they live a “hand to mouth” lifestyle because there isn’t any income left to spend on anything else.

As Mrs. Edgerton stated, one financial setback could cause potential ruin for this family that is just barely making it as it is. If unplanned financial situations occur such as a loss of income, a rise in interest rates, or an unavoidable major expense, it could result in the loss of their home. Mrs. Edgerton comments that “It is worrisome to know that so many people, including ourselves, have come to living on the edge without even realizing that things could drastically change if our financial live go in the wrong direction.”

Unfortunately, with house prices continuously on the rise in several regions and the tempting low interest rates provided with many mortgages, there are many other families living the same lifestyle as the Edgertons. Having an over priced mortgage, car payments, raising a family, purchasing necessities, in combination with other housing expenses it can be almost impossible to avoid living a life on the edge.

In fact, the debt-to-income ratio during the fourth quarter was at its highest; having $1.63 in debt for Canadians for every $1.00 in disposable income. However, unlike the Edgertons, many people do not discuss their struggles to live day by day. Having so many people living on edge, it could be a disaster if too many people reach their tipping point or if the market begins to decrease and they have to sell. It will cause a bigger reduction in the housing market. However, experts do believe that the housing market should stay stable and that it will begin to slow down with a couple years. 

The Bisha Hotel and Residences by Lifetime Developments, in association with INK Entertainment is a new condominium development located on the corner of King Street West and Bluejays Way in Toronto.

Upon its completion, it will consist of a total of 337 units that will vary in size from 379 square feet in an upwards of 699 square feet. Available units for sale start at $308,000. This outstanding new condominium rises an incredible 41-storeys above the downtown Toronto area, giving residents an incredible view of the city and panoramic view of the city skyline. Residents will be within walking distance of several lush and green parks such as the Road House Park and the Coronation Park.

Also within walking distance, residents will be able to enjoy the beautiful water at the Harbor Waterfront and the East Bay Front.  Also within close proximity, residents will have access to the Hazleton Lane shopping centre, the Discovery District, the Toronto Eaton Centre, and the Gardiner Expressway.

The residents at the Bisha Hotel and Residences will be able to enjoy a wide variety of amenities right within their own building. The spacious rooftop terrace is a perfect place for gatherings with friends or family, to have barbecues, as well as enjoy the beautiful views that can only be seen from the rooftop. Even more so, residents will have access to their very own private club and lounge with a kitchen and a 24-hour cafe, a bar, a luxurious indoor pool, and cabana all great ways to relieve stress after a long day.

The state-of-the-art exercise room and a fun and exciting games room are also at a resident’s disposal. Sales for the Bisha Hotel and Residences have already started and are expected to sell quickly.

For more information, please visit the presentation centre located at 373 King Street West suite 302 in Toronto. The presentation centre is open Monday- Thursday from 12:00-6:00 p.m. and Saturday and Sunday from 12:00-5:00 p.m.

The Harmony Village on The Humber is scheduled for completion in 2015 and upon its closing it will consist of a total of 375 units that will vary in size ranging from 680 square feet in an upwards of 2,032 square feet. Available units for sale start at $159,900. The Harmony Village on the Humber is located in the prestigious and sought after North York Neighbourhood, close to the downtown area and all of its luxurious amenities.

This exquisite new housing project is situated right on the banks of the Humber River, allowing for residents to be able to take a nice leisurely stroll, take a fun boat ride, or spend some time catching a big fish. Even more so, the Harmony on the Humber is encircled by many fabulous shopping centres, delicious bakeries, dazzling cafes, established public and private schools, area hospitals, several plush parks, and fine and casual dining options. Living at the Harmony Village on the Humber will guarantee that residents will not only have the best housing around, but will also have the best amenities available as well.

Residents will be situated directly across from a recreational centre where they can take a dive in the oversized swimming pool, go skating on the indoor skating rink, or play on the Bocce ball court. Even more so, resident will be able to utilize the recreational centre’s wash room, the meeting room for business gatherings, or the daycare centre when they need someone reliable to watch their kids. In addition, the recreational centre will have a party room and a kitchen available at residents’ disposal.

Sales for the Harmony Village on the Humber have already started. For more information, please visit the presentation centre located on the corner of Islington Avenue and Finch Avenue in Toronto. The presentation centre is open Monday-Thursday from 12:00-7:00 p.m. and Saturday and Sunday from 11:00 a.m.- 5:00 p.m.

The Motif Lofts and Towns is scheduled for completion in 2014 and once it has been officially completed it will house 38 units that will vary in size ranging from 558 square feet in an upwards of 3,062 square feet. Available units for sale start at $300,000. The Motif Lofts and Towns is a 5-storey charcoal brick facade building located in the vibrant downtown west community. This Loft and Townhouse development will consist of 33 loft units and 5 separate townhomes, all of which are designed with oversized balconies or terraces.

These balconies or terraces are designed with barbeque hookups and ample space, perfect for entertaining family and friends with a tasteful cookout. Even more so, this building is designed with an exquisite rooftop terrace, where residents can gather for a rooftop party, enjoy the exquisite views, or just read a book while catching some fresh air. The residents of the Motif Lofts and Townhomes will love the prime location that this establishment has setup in.

Not far from the front door, residents will be able to visit the fine art galleries, popular museums, sports venues, watch street performers, stroll through one of the lush parks, or participate in some activities at the recreational centres. Even more so, residents will also be just steps away from several fashionable shopping centres, fine and casual dining eateries, delicious bakeries, coffee shops, and public or private schools.

Sales for the Motif Lofts and Towns have already started. For more information, please visit the presentation centre located on the corner of Ossington Avenue and Queen Street West in Toronto. The presentation centre is open Monday-Thursday from 12:00-6:00 p.m. and Saturday and Sunday from 12:00-5:00 p.m.

The Knightsbrige Homes is scheduled for completion in 2016 and once it has been officially completed it will house 110 units that will vary in size ranging from 1,340 square feet in an upwards of 1,730 square feet. Available units for sale start at $700,000. These remarkable new townhomes are located in one of the most desirable neighbourhoods in Toronto, close to the downtown area with all of East Toronto’s life amenities just steps away.

These townhomes are surrounded by mature tree lined streets, shrubs, and historical buildings, that gives the entire neighbourhood a nature filled and beautiful place to live, work, and play.  Even more so, these townhomes are also engulfed by trails, parks, and scenic outlooks that provide residents with the peace and tranquility they need after a rigorous day. Even more so, these townhomes are located near many schools, libraries, hair salons and barber shops, dry cleaners, and cafes. Also within close proximity, residents will have access to the various public transit options, bus routes, and several major highways allowing travel to be easy and convenient.

The Knightsbridge townhomes have stunning exteriors composed of clay brick, stone, and stucco with impeccable masonry detailing. Each of these townhomes will be situated on top of extra deep lots that will vary in size ranging from 90-feet to 150-feet deep and have been designed with beautiful flowers, mature trees, and plush green grass. Self sealing shingles with a 25 year warranty, walkout backyards, and aluminum soffits are just some of the additional exterior features that potential buyer’s will see.

Sales for the Knigtsbridge Homes have already started and are expected to sell fast. For more information, please visit the presentation centre located on the corner of Eglinton Avenue and Beachell Street in Toronto. The presentation centre is open Monday-Thursday from 12:00-6:00 p.m. and Saturday and Sunday from 12:00- 5:00 p.m.

The Parc Lofts was officially completed in 2011 and now consists of a total of 103 units that vary in size from 1,300 square feet in an upwards of 2,000 square feet. Available suites for sale start at $400,000.

The Parc Lofts rises up 10-storeys in the well-known and prestigious King Street West Neighbourhood, providing residents with a view over the family friendly community that encircles them. This loft house development is situated in Stanley Park, giving residents a green oasis to enjoy everyday of the week. In addition, residents will find even more green space just seconds outside their door such as the Music Garden, Coronation Park, Allan Lamport Stadium Park, BMO Field, Bathurst Quay, and Alexandra Park. Additionally, residents will also be a short stroll away from some of Toronto’s finest hot spots such as Trinity Niagara, Liberty Village, Portugal Village, Trinity-Bellwoods, and the Fashion District.

Even more so, residents will have access to several public transit options, various major highways, and an abundance of bus routes making travel easy and hassle free. At the Parc lofts, residents will enjoy having oversized balconies and terraces that will provide them with a private place to relax and take in the views of the community that surrounds them. Even more so, these oversized balconies and terraces will be equipped with barbecue areas, allowing for residents to cookout with their family or entertain their friends.

Residents will love the historical buildings, foundation plantings, and the mature tree lined streets that engulf their new loft homes. Sales for the Parc Lofts have already began and are expected to sell quickly. For more information, please visit the presentation centre located on 25 Stafford Street in Toronto. The presentation centre is open Monday-Thursday from 12:00-6:00 p.m. and Saturday, Sunday, and Holidays from 12:00-5:00 p.m.

A relationship with a good realtor is going to be vital to your success as a seller, so take your time and interview more than one before making a final choice. Your neighborhood is a really good place to start. Who is offering homes for sale in your area? Check the local signs to see which realtors are popular. When you begin talking to realtors, ask them about their record, selling prices and how much they know about the area. Choose someone you feel comfortable working with and trust to handle your property as if it were his or her personal property.

Manage Expectations

As you begin this process, a good realtor will work with you so you know what to expect. They should be able to give you a full breakdown of what will happen so there are no surprises during the process. Part of that process will be them getting to know you.

Which means you should not be surprised when the realtor asks why you are selling your home and explores some of the issues you may face personally such as future plans and financial situations. Until they know a little more about you, they cannot provide the best sales experience.

Valuations

Number one on your Realtors task list is coming to an accurate valuation for your home and property. This is not a single step process but will involve analyzing the condition of your home as well as the recent sales for comparable homes in your neighborhood. They may also utilize a broad market survey, which is only available to professional realtors. When all of this is complete, you can rest assured you have set a price that reflects both the current market conditions and true value of your home.

Below is a breakdown of the closing costs that are normally presented to at the time of closing. Understand that you will most likely see many of these on your closing day. However, it is advised that you speak with your attorney in order to determine which costs pertain specifically to you:

• Home Inspection Fee for Resale Homes. This is usually a requirement with the resale of homes. Every inch of the home is professionally inspected. This inspection is done so that the buyer knows the value of the property. This fee can cost a home buyer anywhere in the range of $300 to $400. It is advised that the buyer only hires a home inspector that has liability insurance. This is a form of protection, just in case the inspector overlooks something important during the inspection.
• Appraisal Fee for New Homes. This is a fee that is usually a requirement for the sale of new homes in Canada. This fee helps the lender to determine the market value of the property. The homeowner has to pay this amount, and it could range anywhere from $100 to $300.
• Fire Insurance: Your lender will require that there is fire insurance on the home from the moment that you first take ownership. The amount insured is usually the same amount as the home’s price, or the amount that it will take to replace the home if something were to happen. The actual amount will depend on the amount of the property being insured, the type of coverage, the insurance company and where the home is located. Expect to pay about $250 to $600 each year for fire insurance.
• Provincial Sales Tax on Mortgage Insurance. CMHC and Genworth Financial will require you to pay taxes on the insurance premium at the time of closing. Usually you can add the insurance premium to your mortgage, however; the tax cannot be added to the mortgage.
• Land Survey Fee. Most mortgage lenders want to have a copy of the latest land survey on file. If one does not exist, the homeowner has to pay to have one done, and this cost can be anywhere in the range of $600 to $900. However, a lot of lenders will usually allow title insurance instead, and this is much affordable.
• Legal Costs and Disbursements. Attorneys and notaries have to prepare the mortgage, draft the title deed and conduct numerous searches. They will charge for their services. They also have to charge for their out of pocket costs such as supplies, searches and registrations.
• Land Transfer Tax. A majority of the provinces in Canada will charge a land transfer tax, and it must be paid by the home buyer. The amount of this tax depends on where the property is located. This tax is determined by the amount of the purchase cost. Many times first time home buyers or anyone who is purchasing a resale home may be able to get a refund of this tax.
• New Home Warranty. Most new homes in Canadian provinces have coverage via a new home warranty program. The purchaser has to pay exactly $600 for this coverage. If the builder does not meet his responsibilities, the program will finish building the home or make the appropriate repairs up to a maximum amount. For additional info on the Ontario new home warranty, please visit https://www.tarion.com.
• HST. HST is a Canadian Consumption tax, and it only has to be paid on new homes. Always establish if you or the builder is going to pay this tax. When making an offer on the home, it must specify “Plus HST” or “HST Included.” It also has to specify who will receive HST rebates, if applicable. A majority of the home builders in Canada include this cost in the purchase price so that you don’t have to pay it at closing.
• Closing Adjustments. These costs are estimates for the things that the seller had to pay up front such as utility bills, property taxes and other incidentals. After the home has been closed, the home buyer must pay these bills. Your attorney will advise you about these fees once all searches have been done.

Pricing your home aggressively has huge importance when you’re trying to sell your home. If the price is too high, it will run off buyers. If it is too low, then you won’t receive the true worth of your home. One of the best ways to price your home effectively is to look at the prices of competitor homes. This gives you the chance to see the whole process via a home buyer’s prospective. Don’t take shortcuts, and don’t be in denial about what you find. Based upon how others in your area have priced their homes, what is a fair price for your home?

Utilize Price Points

Buyers usually don’t have a specific price such as $305,999 in mind when they are looking for a new home. A house hunter will ask the agent to show them homes that are priced within a certain range. This range is normally divided by five or ten thousand dollar increments. Thus, price your home at one of these increments. Instead of an unnatural looking price point, move it down to the next price point in order to get more interested buyers.

Use Value Range Marketing

Consider using value range marketing because it could result in more interested buyers. This is a marketing technique in which you select a price listing based on the price that you would accept if the buyer gave you a check. Then choose a much lower price, and it will be the one that you would accept. But it is used as a beginning point to negotiate towards a middle ground offer. So, do not list the home at an exact price such as $496,000. Instead list your home in the range of $459,000 and $496,000.

Give Selling Agents a Bonus

A selling agent is one who provides buyers for your home. When there is a flooded market, many home sellers want to find ways to get agents to bring them more home buyers. One of the best ways to motivate selling agents is to offer a bonus. You might not like paying real estate agents more money just to do their job, but it will motivate them to bring in more possible buyers. Flashing around more money could get more money for your home.

Get an Aggressive Listing Agent

Get an aggressive listing agent who will really work in your favor. Talk to friends, family or anyone else about who they have used in the past to sell their home. Do the proper research and interview numerous agents before you hire the best one. Also, make sure that the agent has a well planned out marketing strategy before you sign a listing agreement.

Establish Two Way Feedback

If you really want to sell your home, don’t be offended when your agent gives you a little constructive criticism about your home. This could be anything from how to price your home to how to add more curb appeal. This is the best way for them to get the most money for your home. But the same agent must be willing to listen to you when you have concerns or suggestions. For instance, you might want the change the way that advertising is done by getting better flyers or offering better virtual tours.

Suggest Incentives and Pre-Paids

Sometimes a house hunter may have a short list of potential home purchases. Maybe you could do something to sway a house buyer in your direction. In order to do this, you could offer to buy down the interest rate on his loan. You could also offer to pay for closing costs, repairs, inspections or provide allowances for home upgrades after the closing date. Also, you could offer other incentives like offering to pay his cable bill, taxes, home owner’s association dues or even his gym fees for a year.

Stage Your Home and Enhance its Curb Appeal

Buyers will not make an offer for your home unless they are emotionally attached to it. Create the best first impression by staging your home and enhancing its curb appeal. Make sure that each room is beautiful and has a focal point that tells a story. Place colorful containers of potted plants on the front porch. Set the dining table with beautiful dinnerware. Put an interesting book on the bedroom nightstand. Set up the game room for the next challenging game. These are all ways to stage your home and boost its curb appeal.

Utilize a Pre-Inspection and Pre-Appraisal

Get an appraisal done before the buyer makes an offer. This is known as a pre-appraisal. This gives the buyer some objective insight about the value of your home, which could bring in more offers. Also, a lot of sellers like to have pre-inspections done so that buyers knows about potential problematic areas. However, be advised that you must disclose anything that is discovered during a pre-inspection, even if you don’t want to repair it.

Learn From Your Mistakes Early in the Game

Successful sellers are not afraid to find problems early in the game and make adjustments. For example, if you implement a marketing plan that doesn’t bring in new buyers regularly, this means that your listing price may be the problem, and it has to be reduced. But if there are a lot of buyers coming through the door, but no one is making any offers, this means that something is wrong with the home and not the price. There is something that needs to be changed, upgraded or added. A smart seller will do whatever it takes to find the problem and take corrective action.

In order to get the most money for your home, it takes a lot of hard work and dedication. This is the only way that you can attract the largest amount of potential home buyers. If you use one of the aforementioned strategies, then you will become a successful seller.

What type of area suits your needs? Are you looking for a place nearer to work or your aging parents? Perhaps you are looking for a different style of neighbourhood. There’s much to do before you’re ready to buy another home.

New beginnings are part of every move. Moving is a costly experience that typically requires payments during the time of ownership. The thought and act of purchase is exciting, however, for new and experienced homebuyers.

The first question you should answer is why you are moving. Are you ready to abandon city living for the more relaxed pace of the suburbs or perhaps move to an area where the cost of living, including taxes and insurance, are lower than what you currently pay? Is the primary reason for moving ultimately because the size of the house is no longer comfortable making it desirable to downsize or upsize your home?

Why downsize a home?

Outgo exceeds Income: Escalating property taxes, house payments, and HOA fees are eating up stagnant earnings

Free Time: Longer vacation benefits at work or newly retired status with the urge to travel rather than stay home taking care of the yard

Empty Nest: The children have grown, left home, and there’s too much space

Exchange of Lifestyle: Suddenly there are rooms and features in your home no longer used, such as a family room and swimming pool

Ready to Do and Spend Less: Reduce the cost and amount of cleaning, home improvements, and other expenses

Why upsize a home?

Significant increase in income: An impressive promotion at work, huge inheritance, or winning ticket

More space required: Parents move in, you’ve had a baby, or you need room for supplies for your home business

Additional yard space: You want a patio and built-in brick barbeque, want a family garden, just added a large outside dog to the family

Whether your goal is to downsize or upsize your home, it’s important to remember it will affect your financial ability for many years.