Do you know how much money will be needed in order to close your deal? Besides the basic purchase price, buyers face legal fees (plus GST) and disbursements (plus GST), which are the out-of pocket expenses a lawyer/notary incurs. Then there are closing adjustments with the seller - taxes, rental income, condominium maintenance, and some utility charges. And don't forget about the costs of arranging a new mortgage which can include application and appraisal fees. For a resale home, these "extras" can easily add 1½% to 2% onto the basic purchase price.

Buyer information
Do you know what needs to be done after the deal is closed? Once your offer has been accepted the work has just begun. Future steps include arranging for monthly mortgage payments and property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move, among others.

Avoid any surprises by having a CENTURY 21® real estate professional guide you through the necessary steps. Rely on their expert advice to keep you informed and prepared. It's just one more way that your CENTURY 21 real estate professional takes the anxiety out of buying a home.
Nadeem Khan is an experienced Realtor specialized in GTA market. Please Contact Nadeem Khan today to set up a no hassle, no obligation consultation specific to your Real Estate requirement.
Don't trust your financial future to small time investors with no license to practice Real Estate, they do not have your best interest in mind.
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Buy Sell and Rent Real Estate in CANADA

1. How to Invest in Changing Real Estate Market ?

We in Real Estate Profession frequently are often asked many questions by the interested Buyers or Investors with regard to Real Estate Investment in the market of Canada and particularly in Greater Toronto Area (GTA) that include Toronto, Mississauga and surrounding cities.

One of these questions is, “Will real estate investment be a profitable investment in this market (GTA)”? The truth is, real estate investment works in every market. But you need to learn your market and adapt the techniques that it requires.

There are many ways to describe real estate markets, including “hot” versus “flat” or “rising” versus “falling” or “buyer’s” versus “seller’s.” All real estate markets are subject to fluctuations; but these fluctuations typically do not greatly influence the ability for the informed investor to make a profit.

Unlike the stock and commodities markets, real estate markets don’t rise and fall rapidly. For long-term investing, additional market factors are important to your buying decision. Investors who plan for short-term real estate market appreciation are speculating, which is outside of the basic model of low-risk investing.

2. What is the ideal market for Investing ?

Let’s be clear: There is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets, however, because if the market keeps rising, the probability of selling the property quickly for a large profit increases. In contrast, when property values are falling, more "bargains" become available.

Yet you need to assess the true value of these properties based on when you expect to sell the property. Thus, your purchase must be made at a steep discount to allow for a profitable sale later.

3. What are some basic strategies to limit risk?

Some basic strategies can be used successfully in virtually all market conditions. Become educated in your local market first by understanding the large-scale trends-from national, regional, and specific neighborhoods. Learn about target neighborhoods, enlisting the aid of successful real estate professionals along the way.

These professionals will help interpret market indicators, such as the average length of time houses are sitting on the market this month versus last month or last year. Armed with this type of information, you will be able to make good and educated decisions.

4. Inventory trends ?

Inventory, defined as the number of properties offered for sale, is a good indicator of current market trends. If inventory is low because of building restrictions or geography, then high demand will lead to rising prices. In rising markets, sellers often capitalize on the excitement of new listings to get properties under contract quickly, at premium asking prices.

In GTA, there sometime are also seasonal fluctuations in inventory, such as fewer listed properties in the winter months than in summer and a surge of listings in the spring.

Generally, seasonal drops in inventory reflect the trend to market properties more aggressively in spring and summer months when real estate markets are more active. Properties sell year-round, though investors should plan to reduce the price for winter listings or at least know that properties take longer to sell during those months.

5. Falling markets ?

While most markets in North America have risen over the last five years, however some of the markets in USA are flattening out, and some may have already dropped. This type of market offers great opportunity to the savvy investor. When property values are falling, inventory often rises, and many sellers become highly motivated when their properties fail to sell quickly.

Motivated sellers will do whatever it takes to sell their property. Whether sellers need to move from the area, are struggling financially, or have other pressing reasons to sell, they may well accept a below-market offer.

Investors know that a weak market can offer extraordinary deals, though flippers need to proceed with caution. In a falling market, even a few months’ delay can turn a sound deal into a headache. It always pays to know the market and purchase the property at a price low enough to net an eventual profit, even if the market continues to fall.

The common myth is that you cannot make money by in a bad real estate market. In a bad real estate market, you can often buy “junk” properties for (as an example) 50 Dollars and sell them for 60 Dollars. It’s all in how you do the math.

It is worth noting that markets can and will change. If the market rebounds after a purchase, then all is well for the investor. However, if the market takes a downturn after a purchase, there can be trouble ahead. Markets commonly show signs of slowing or turning over several months.

Sometimes the early signs come from national economic & political trends.

6. Exit strategies ?

More important than guessing the future of a local market, you need to have a clear plan in mind when purchasing property. A smart investor knows exactly how he will exit the property before he buys. An even smarter investor will have a backup plan or two, in case the first course of action doesn't work.

In short, know your market and your plan before you begin to invest.

7. What is a Mortgage ?

As you proceed through the home loan process you will encounter a variety of terms, many of which may be unfamiliar and confusing. To better navigate that process and make an informed, confident mortgage selection, take time to explore financing terminology. Some of the more common terms are briefly explained below to help you get started.

To find out more about Mortgage; please click here.

8.Why the Buyer Needs Title Insurance ?

Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. However, your policy insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims. With a title insurance policy, you need never worry that your new property's history will tarnish your bright future.

9. What is the Land Transfer Tax and who should pay ?

When buying a home in a major Canadian centre, you will often have to pay a tax referred to as land transfer tax, or sometimes as property purchase tax. The tax is usually calculated as a percentage of the purchase price, and the formula varies from province to province.

We have collected information and prepared a calculator to help you determine what the land transfer tax will be on the property you are looking at.

Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property.

Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, .5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00.

To find out more about Land Transfer Tax and the Calculator; please click here.

10. Miscellenous ?

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