Do You Have Equity in Your Home?

If you have some equity in your home, or you have ready access to $25,000, you need to take that money and put it to work for you. You need to build your financial wealth.

In the Millionaire Real Estate Investor Workshop we delve right into the true meaning of the term ;financial wealth' and what it can do for you and why you need to build it. We also introduce you to the models and systems used by 120 millionaire real estate investors, so that you can learn from their mistakes, gain their habits, and take a quicker, straighter path to financial wealth.

I was doing some research for a new investor client today, and came up with some incredible opportunities available in Milton right now. Let me give you the details: 

The numbers in the table are based on commonly-available mortgage rates as of the date of writing. The one expense not included is the insurance coverage, because that can vary depending on the coverage you get and your relationship with your insurance company. 

As noted, these properties are currently available today, and will give you a positive cash-flow on a consistent monthly basis.

A further note is that we may be able to get you into the properties on a no-mortgage, $5,000 down basis. This method would be great for someone with minor blemishes on their credit, or someone just beginning to save their downpayment to buy.

Whether you would be interested in either scenario, give me a call at 905-208-7002 to schedule a meeting to discuss how we can get you into these opportunities, either as your first step to becoming a Millionaire Real Estate Investor or as a new home owner.

Some Canadian Real Estate Factoids . . . .

• In the first half of 2008, $56-billion of new mortgages in Canada (more than half of new mortgages) had 40-year amortizations. Two U.S.-based mortgage insurance companies, Genworth Financial and American International Group, are reportedly asking the Canadian federal government to raise existing government guarantees of private mortgage insurance to 100% from 90%. The federal government guarantees 100% of the mortgages insured by Canada Mortgage and Housing Corp.
   
• The TD Canada Trust Homeowner Confidence poll reports that 92% of Canadian homeowners are staying put and not considering selling their homes. Of those surveyed, 53% are going ahead with planned renovations or plan to do even more home improvements.
   
• According to the Toronto Real Estate Board, the median price of all condos sold in November, 2008, fell to $226,000 from $241,000 in November, 2007. Sales dropped to 906 from 1,837 a year earlier. In December, 2008, the number of condo suites listed for sale increased to 4,637 units from 4,366 in December, 2007. The average number of days it took to sell a unit in 2008 climbed to 43 from 33 a year earlier.
   
• According to Cushman & Wakefield LePage, the industrial vacancy rate in Canada was an estimated 5.8% at the end of 2008, much lower than the doubledigit vacancy rates in many American cities. Vacancy rates increased 0.7% in small markets and climbed even less in major markets like Toronto, Montreal and Vancouver last year. The national industrial vacancy rate is expected to rise 0.7% in 2009.
   
•  According to the Toronto Real Estate Board, sales of existing homes in Toronto fell 45% in December, 2008, from December, 2007. The average price dropped to $361,415 from $394,931 a year earlier. According to Canada Mortgage and Housing Corp., housing starts in Toronto rose 27% in December from a year ago. Total housing starts reached a record level in 2008, boosted by a 137%
  jump in condo starts, while low-rise starts fell.
   
• According to RealNet Canada Inc., the downtown core submarket in Toronto had sales of 143 condo units in November, making it the second-hottest area for condo sales in the GTA. The average price in the downtown core submarket is $745 per square foot, fourth highest among all GTA submarkets.
   
• According to the British Columbia Real Estate Association, existing home sales in the province fell by one-third to 68,923 units in 2008 from 2007. The average home price increased 3.5% to $454,599 for 2008. Prices dropped 11% from a peak of $483,291 in March to $429,210 at the end of the year. In
  December, 2008, sales were down 49% from a year earlier and the average price declined 6%.
   
• ......

  A major real estate firm, in a separate report, blamed the depressed level of consumer confidence, along with the slide into recession, for a slump in home sales and prices in the final quarter of 2008.

  "The combination of a global economy in recession and shrinking employment figures did much to dampen consumer confidence, diminish home sales and cause house prices to drop," Royal LePage Real Estate Services said in releasing details of its latest house-price survey.

  The average price of a detached bungalow dipped by 4.8 per cent from a year earlier to $319,640, standard condominiums fell 5.2 per cent to $233,230, and the standard two-storey home declined 6.3 per cent to $376,140.

  However, price trends varied dramatically across regional real estate markets, it said, noting that Regina and St. John's, N.L., posted double-digit gains, while the larger cities that have seen the greatest increase in prices this decade, including Toronto, Edmonton, Calgary and Vancouver, recorded declining house prices.

  But the real estate giant also released survey results suggesting the market could get a lift from the fiscal stimulus in the budget.

  Nearly half of Canadians — 49 per cent — agree that the economic stimulus in the budget will have a positive impact on Canada's real estate market, it said.

  "Political actions taking place south of the border are also likely to buoy the country's economic conditions," it said, citing another survey finding that 82 per cent of Canadians agree that the inauguration of U.S. President Barack Obama will have a positive impact on consumer confidence here.

  The news out of the U.S. on Monday, that home sales unexpectedly rose 6.5 per cent last month, raised hopes that the deep housing market depression there, which triggered the global recession, may be easing.

  "Though unlikely to mark the bottom of the housing downturn, the report at least suggests the market is not spiraling downwards in response to mounting job losses and tightening credit standards," said BMO Capital Markets economist Sal Guatieri. "An upward trend in home sales that gobbles up supply and stabilizes prices would be an important signpost of economic recovery, but that is likely still some ways off."

  There was also an unexpected year-end increase in the index of U.S. leading economic indicators, which tends to signal the short-term direction of the economy.

  However, analysts noted that the increase in the U.S. index was narrowly based, largely reflecting a surge in money in the U.S. economy, and that the trend in the index continues to signal recession.

  In Canada, the reports of an improvement in the mood of consumers came amid a continuing flow of announcements of the levels of spending stimulus that will be in the budget, with Infrastructure Minister John Baird saying the government will spend $7 billion over two years on new infrastructure, bringing total promised new spending to more than $13 billion.

  "This is clearly having some impact on consumer confidence as nearly half of all Canadians believe the steps the government is taking to stimulate the economy . . . will positively impact the country's real estate market," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. ....... (Vancouver Sun)
   

• In the Milton area, we are seeing buyers starting to buy after delaying decisions for the past 5 to 6 months. Part of this is, I think, they have decided that the 'sky is falling' reporting of mainstream media has not proven true. Another factor is the incredible interest rates available, and a third factor is the excellent deals available on homes today. Buyers realize that they cannot time the bottom of the market, and don't want to be left thinking and waiting when the market does turn back up.

Bank of Canada lowers overnight rate target by 1/2 percentage point to 1 per cent

OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 1 1/4 per cent.

The outlook for the global economy has deteriorated since the Bank's December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity. Heightened uncertainty is undermining business and household confidence worldwide and further eroding domestic demand. Major advanced economies, including Canada's, are now in recession and emerging-market economies are increasingly affected. Energy prices have fallen as a result of substantially weaker global demand.

Stabilization of the global financial system is a precondition for economic recovery. To that end, governments and central banks are taking bold and concerted policy actions. There are signs that these extraordinary measures are starting to gain traction, although it will take some time for financial conditions to normalize. In addition, considerable monetary and fiscal policy stimulus is being provided worldwide.

Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence. Canada's economy is projected to contract through mid-2009, with real GDP dropping by 1.2 per cent this year on an annual average basis. As policy actions begin to take hold in Canada and globally, and with support from the past depreciation of the Canadian dollar, real GDP is expected to rebound, growing by 3.8 per cent in 2010.

A wider output gap through 2009 and modest decreases in housing prices should cause core CPI inflation to ease, bottoming at 1.1 per cent in the fourth quarter. Total CPI inflation is expected to dip below zero for two quarters in 2009, reflecting year-on-year drops in energy prices. With inflation expectations well-anchored, total and core inflation should return to the 2 per cent target in the first half of 2011 as the economy returns to potential.

Against this background, the Bank today lowered its policy rate by 50 basis points, bringing the cumulative monetary policy easing to 350 basis points since December 2007. Guided by Canada's inflation-targeting framework, the Bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve the 2 per cent target over the medium term. Low, stable, and predictable inflation is the best contribution monetary policy can make to long-term economic growth and financial stability.

Information note:

A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the Monetary Policy Report Update on 22 January 2009. The next scheduled date for announcing the overnight rate target is 3 March 2009.

Tips for Selling Your Home in Winter

by Brandon Cornett

Most real estate experts agree that it's best to sell your home during the warmer months of spring and summer. For one thing, home buyers with children will often plan their house hunting / home buying process for the summer, when their children are out of school.

But what if you can't sell your home during the spring or summer? What if it's just not in the cards? Perhaps you cannot afford the home any more and you need to sell it fast, regardless of the season. Or maybe you have a job transfer that requires you to move during the winter months.

Whatever the reason, you need not despair. While there are certain challenges to selling a home during winter, they do not by any means make it impossible. On the contrary, if you follow the selling techniques and tips in this article (and the advice provided by your real estate agent), you should be able to sell your home in the winter nearly as easily as you would in the summer.

Contrast the Cold With the Warmth

Emotions play a big role in the home buying process. Granted, the buyers will be most concerned with the size of the home, the number of rooms, and other tangible items. But "gut" feelings and first impressions go a long way as well. So even in the coldest winter months, you can put this knowledge into practice. In fact, you can even take advantage of the winter cold!

The best way to do this is by showcasing the warmth and coziness of your home. By doing this, you will create a favorable first impression that the buyers will take with them throughout your house. Let's look at an example of this concept in action.

Imagine This Realistic Scenario

Local home buyers John and Jane visit your home while house hunting. It's cold outside, with wind and rain on top of that -- the kind of conditions that make you want to hunker down someplace warm. John and Jane open the front door and enter the home. The house is well lit and exudes warmth. Candles burn atop the mantle. A fire crackles softly in the fireplace. The smell of gingerbread cookies (recently baked on offered on a glass plate) permeates the air.

Doesn't that feel inviting? It will be the same way for buyers. So just by showcasing the warmth of your home, you have increased the likelihood of selling it. You are creating a favorable first impression by literally welcoming the buyers in from the cold.

You can think about it in terms of both psychology and physiology. The first physical impression will be one of warmth and relaxation, just as soon as the buyers walk in. This will lead to a favorable mental impression as well, and the buyers will carry this impression with them through the rest of the home.

Conclusion

Some people will tell you that selling a home fast during winter is impossible. We say it depends upon two things -- (A) the amount of effort you put into it, and (B) the type of real estate market you are in. So one cannot say across the board that selling a home fast in winter is impossible. It is a case-by-case situation. Use the tips provided in this article, follow the expert advice of your real estate agent, and you have every chance of selling your home during winter!

Traveling? How to Save on Your Hotel Bill

(ARA) – Whether you’re heading for a late-winter escape or you're planning ahead for spring break with the kids, traveling remains a popular activity despite the challenging economy. If you're on a budget, you don't have to give up your vacation plans, you just need to know how to travel smart.

"One of the key ways to find the right property within your budget is to look at the overall value of the stay, not just the nightly rate," says Scott Booker, chief hotel expert and guest advocate for hotels.com. “A hotel offering complimentary breakfast, for instance, could save a family of four around $40 per day. Properties are also rewarding guests with discounts for longer stays, dining coupons, and other features to attract more guests.”

You can find the right property within your budget by doing some simple research. Here are Booker's top tips for the value-minded traveler:

* Book early.
As soon as you decide on the property you want, book it. During peak travel seasons, such as over holidays and school breaks, properties can fill up quickly. Check to see if the site offers a price match guarantee, so that if a price drops you can get the lower rate.  

* Have deals come to you.
Subscribe to travel newsletters and know when to check sites for new promotions. Being the first to know gives you a huge advantage at scooping up good deals. For example, Fridays are a great day to check hotels.com since new deals are loaded on Thursday nights. They also send out an e-newsletter on Tuesdays featuring some of the best promotions.

* Look out for hidden fees.
Properties can charge for a variety of different services that may give guests an unwelcome surprise. These can include extra person charges, resort fees, fitness center usage fees and pricey change or cancellation fees. Be sure you know what these charges are before you book -- and if you're uncertain about anything always ask for clarification.

* Consider a condo.
Families and groups may find vacation rentals a better option, since they offer many of the comforts of home -- multiple bedrooms, common areas and a kitchen. Condos and specialty lodging can provide a better value for a group versus the cost of multiple hotel rooms. Plus, guests can bring, prepare and store food, which means spending less time and money at restaurants.

* Think about location.
A great rate isn’t a good deal if you spend too much time or money trying to get to where you really want to be. Location can easily offset a bargain price, so make sure the property is convenient to your main activities for the trip -- whether it’s the slopes, grandma’s house or the city center.

* Look carefully at reviews.
In the current environment, travelers accustomed to booking four-star hotels are now looking more closely at two and three star properties to save money. But because they are not very familiar with these properties, people can be anxious about booking them. Guest reviews offer great insight on what the property will be like once you’re there and help you decide if you’ll receive the same level of comfort as a hotel with a higher star rating. Also be sure to read reviews from people who have actually stayed at the property. You need to know you’re reading honest comments from people who have recently been there.

* Talk with a live person.
There are so many choices available online that it’s easy to spend a lot of time searching -- which can lead to confusion and missed bargains. If you are having trouble deciding on a property, it might be advantageous to talk with a live person.

"At hotels.com you can call a specialist to ask questions and book a property for no extra charge," says Booker. "We understand that every traveler is different, and that the same property isn’t right for every trip.  Asking questions and reviewing all of your options can help you find the best hotel so you can truly enjoy your vacation.”  

Courtesy of ARAcontent

Garden Superstars for Spring 2009

(ARA) - From picture-perfect roses to containers that are works of art, spring 2009 promises wonderful color and exciting new products for garden lovers everywhere.

“People want shrubs and plants that look great, are easy to grow, are good for the environment and perform well in their gardens,” says Susan McCoy, garden writer and trend spotter. “That’s just what the new products this spring promise to deliver.”

McCoy reveals a few of her favorite garden superstars for spring 2009 to help scratch that itch to get out in the garden after a long winter.

Let the Sun Shine  

McCoy loves “Sunny Knock Out," the newest addition to the Knock Out Family of Roses (www.TheKnockOutRose.com). It lives up to the Knock Out reputation for blooming continuously with little to no effort, and is naturally resistant to rust, mildew, blackspot, Japanese beetles and rose midge, making it easy to avoid harsh chemicals. It is bright yellow, the latest trendy color, and has a mild, sweet fragrance. From Canada to the Gulf states, you can expect the same profusion of sunny blooms on this compact shrub that grows up to 4.5 feet tall, making it perfect to mix in flower beds, for mass plantings or as a specimen plant.

Tropicals Sizzle in Your Garden

Add lots of color right up until fall’s first frost with the new Sun Parasol Crimson mandevilla. This easy tropical from Costa Farms (www.SunParasol.net) has huge crimson red, bell-shaped velvety blooms that cover the 12- to 15-foot vines, making it perfect for hanging baskets, containers, climbing up a trellis or in a landscape. Available in “Pretty” and “Giant” sizes, Sun Parasol Crimson comes in a 10-inch hanging basket or a 6-inch pot with or without a trellis. Either way, the saucer-sized blooms will add some tropical zest to your garden landscape, decks, patios and apartment balconies. Plant these beauties in six to eight hours of sun each day.

Pot up Some History  

For instant garden style, McCoy loves the latest “designer” containers and accessories from Campania International (www.CampaniaInternational.com).  The 2009 Chicago Collection reflects the city’s prairie style and art deco traditions with clean lines and minimal design. If you appreciate historical craftsmanship, the 18th century Colonial Williamsburg collection contains an array of garden containers, including cast-stone replicas of urns that blend a refined look with a contemporary feel. From window boxes to birdbaths, their accents will add an elegant touch inside or outside your home.

Grow ‘em Right

Start your containers off right with peat-free, organic potting soil. The Organic Mechanics (www.organicmechanicsoil.com) “Container Blend” is made of 100 percent organic materials from recycled agricultural waste products. With this rich potting mix, you’ll water less but your container plants will flower more and look greener. Plus the nutrient-rich product is reusable, a real cost benefit for gardeners. Perfect for all your containers, hanging baskets and window boxes, it is available this spring in Mid-Atlantic garden centers and Whole Foods stores.

Go Native, Go Local

Be a star in the garden this spring with American Beauties native plants (www.ABNativePlants.com), and the wildlife will thank you for providing food and shelter. Plus you’ll be making a contribution to the National Wildlife Federation Backyard Habitat program. But don’t get these natives confused with roadside “wild” flowers. These shrubs, trees, vines, grasses and perennials were hand-picked for their beauty, and their minimal need for fertilizer, water and pest control. The newest is “Iron Butterfly” Vernonia lettermannii, from Dr. Alan Armitage. This brilliant purple ironweed attracts butterflies in a wide range of soils and conditions.

Tickled Pink  

This first-ever pink blueberry -- “Pink Lemonade” -- is a sweet new introduction from Briggs Nursery (www.BriggsNursery.com), and one of the most exciting new plants McCoy has seen in years. The pink blueberry bush provides delicious fruit rich in antioxidants plus four seasons of color -- white flowers in spring, bright pink fruit in summer, great fall color and finally dusky auburn stems in winter. Growing about five feet around, this ornamental shrub looks great as a hedge border or stand-alone shrub with the added benefit of tasting great in cereal and pies, or to feed the wildlife.

Drowning With Love

Did you know that the No. 1 reason indoor plants die is people love them so much they over water them? That’s why McCoy loves the WaterStik -- a no-brainer watering system that tells you when to water and when not to. Just insert the WaterStik into the container, and it blinks to tell you if it needs more water, needs you to stop watering or anything in between. For this and other state-of-the-art plant irrigation systems, visit: www.Waterstik.com.

Courtesy of ARAcontent

I originally read this post on ActiveRain, a real estate blog, and immediately contacted the author, Lane Bailey, for permission to 'Canadianize' it and give a link back to his site. I like the ideas in this post. Lane's site is here.

Ok, I have written about it before, but it is time again to talk about why "I bought it for 20% under list" means absolutely NOTHING in the world of real estate.  

This is a common misconception... but still a misconception.  As an agent, I hear buyers (investors or people looking for a family home) talk about how they only want to pay X% of the list price.  Their fear is that if they are paying more than X%, they might be paying too much. 

It doesn't matter.

For some, X=70, for others it is 90.  But... it still doesn't matter. Let me explain...

Imagine if you will that you are in the market for a nice car... to drive.  I happen to be selling this driveway art Jeepster.  It is listed for $45,989.00.  But I'm willing to make a serious deal.  I will sell it to you for half.  So, for $22,994.50 you can own this pretty gem.  It is one of a kind...  And it is 50% off. 

Ok, you decide that maybe you should look around.  Maybe there is another good deal out there.  And then you run across a nice Pontiac G8GT.  It looks nice and everyting, but the dealer is holding firm on their price.  Despite the fact that there are 4 on the lot that look exactly the same, they are convinced that they can get $34,090... which is within "dinner" of the full list price.  

Obviously this is a no brainer, right?  Choice "A" is rare, heavily discounted and cheaper.  Why would anyone spend another $11k+?

Right?

Hold up...  I'm obviously not being serious... and the example is extremely over the top.  But the basic premise still holds true.  List price isn't a measure of actual value.  List price is just a number.  Sure, it is a number that was reached based on the professional advice of a real estate agent, maybe an appraiser and the seller.  Right? 

Sorry, but...

Right now in Milton, ON, about 1 in 8 homes listed ends up selling within the first 4 months, at which point the seller is usually tired of it all and gives up.  That's right, there are EIGHT times as many homes coming on the market as there are getting sold out of the market (in fact, less than 5% of the homes available are sold in any given week).  The rest languish, are withdrawn or expire. Many of them are nice homes.  But here is the problem... they aren't good deals. 

Here are some examples:

• A bank owned property that needed $50,000 worth of work to make it average for the neighborhood... but it was priced about $30,000 below homes that were ready to go. 
• A property from an over-leveraged private seller that was priced $50,000 over the neighborhood comps, because that was what he needed to get in order to retire his debt. 
• A property that the seller is "testing" on the market.  They don't really need to sell, but "if they get their price" they would love to buy another home. 

How many properties like this have we seen?  In the case of the first one, a low-ball might get the property... but for the rest it would be pretty fruitless. 

On the other side of the equation:

• A bank owned property that is priced $30,000 BELOW neighborhood comps... needs NOTHING to be ready to go.  The bank knows that they need to price it astoundingly if they want to get it sold fast. 
• A property that belongs to an estate.  The previous owner had a paid off mortgage, and the heirs want it gone because they "want their money." 

Now, every once in a while these kinds of sellers will price it high because "they want negotiating room"... but it is MUCH more likely that they will price it to grab the buyers attention.  That means there isn't 20% to take out of it. 

The point is simple...

Many of us agents... as well as our clients... get caught up in the idea that there is a percentage off of the list price that can make the property a "good deal".  But, it just isn't the case.  The reality is that there are properties that are cheap... and lousy deals.  there are properties that are not cheap... and are great deals.  There are properties that are bargains at full price, and there are some that would be a rip-off at half price. 

Final example...  There are homes being sold in Detroit and Cleveland for as little as $500.  in some cases these are killer deals and the banks are perfectly willing to lose money just to make them go away.  In other cases they are over-priced.  A relative just looked at one of these homes and what he found was that the $500 property needed $40,000 in reapirs and when he was done he might be able to rent it for enough to cover the mortgage... but selling it would leave him upside-down for at least as long as it takes that market to come back... decent homes are selling for $30,000 on the same block. 

List price isn't directly tied to value, just like the truth isn't directly tied to politicians.

When they say enough, something is bound to turn out to be true.

Is your home more than 30 years old?

If it is, you may find that your insurance company has some pretty tough standards to either issue a new policy or renew your existing policy. Take a look at this brochure from the Financial Services Commission of Ontario. Comments are invited.