The Velocity of Money and Real Estate Investing.

The Velocity of Money & Real Estate Investing.

The other day i was talking to one of my investor clients from stoneycreek who was asking is it better to put 50% down in the rental property or buy 2 rental properties with 25% down on each of them. I would like to share a lesson from Robert Kiyosaki’s book, “Who Took My Money?” I strongly encourage people to read this book. He writes that the Velocity of Money is the one reason why rich get richer and the average investor risks losing it all. In the book Robert’s says:

“As a professional investor, I want to …

1. Invest my money into an asset.
2. Get my money back.
3. Keep control of the asset.
4. Move my money into a new asset.
5. Get my money back.
6. Repeat the process.

When I teach my real estate investing concept of having homes buy more homes, I am teaching Robert’s velocity of money concept. I had read Robert’s book in 2004. Since then, I had already utilized it with my real estate investing and helped many of my real estate investor clients in Hamilton-Burlington area.

To give you an example: Let’s assume you purchase a nice single-family home for $200,000. To purchase this home, you get a 5-percent down mortgage under CMHC OR GE program and invest approximately $10,000. You use a fixed, interest-only mortgage program and your total monthly payment is, say, $1,400. You offer this home on a Rent to Own Program. Your new tenant/buyer gives you $6,000 up front on this lovely home and picks a program paying you $1,695 a month in rent.

After collecting your up-front payment, you would still have $4,000 invested in this property ($10,000 down payment less that $6,000 upfront payment received from your tenant/buyer). Your monthly cash flow would be approximately $295. (Rent of $1,695 less your payment of $1,400) It would take you another 13 1/2 months to recover your remaining $4,000 invested. ($4,000 divided by $295 monthly cash flow) In this example, it would take you around 14 months to complete steps 1, 2 and 3 above.

You would have invested in an asset, gotten ALL your money back and kept control of this same asset. Now you are on to step 4, which is move your money into a new asset. Robert continues his teaching as follows:

“A professional gambler wants to be playing the game with house money as soon as possible. While in Casino Niagra, if I had put my money back in my pocket and only played with my winnings that would have been an example of playing with house money.

The moment I began betting everything, I lost the game because I lost sight of my goal, which is to stay in the game but to play with other people’s money … not my own money.”

When you come to a point in your investing at which you have gotten all of your money back and still own the asset, you are playing with house money. In this example, after Month 14, you would still receive a cash flow of $295 a month until the property sells. This is all house money. Now let’s move on and assume that the your tenant/buyer doesn’t purchase your home during the Rent to Own Program.

In four years, your $200,000 home would be worth $243,000 with a 5-percent appreciation rate. This appreciation would ALL be house money. You could then borrow a portion of this increase in equity tax-free. You could refinance this home at 90-percentloan to value. A 90-percent loan on a $243,000 home amounts to $218,700, less your current loan on the property of $190,000 would provide you with $28,700 tax-free (Current loan is $200,000 initial purchase price less your $10,000 down payment).

At this point in time, you would have recovered your $10,000 investment, plus taken in an additional $10,030 in positive cash flow and borrowed out another $28,700 tax-free. This amounts to roughly $48,000 in four years. Remember, you still own the original asset — the $200,000 home.

Now, here is where the fun starts to happen. What can you do with the $48,000? Could you use this $48,000 as a 10-percent down payment on a $480,000 asset? Let’s assume you do. What do you think the cash flow would be on this property? Maybe $10,000 a year? In a few years, both of these properties could be refinanced to pull out more money to invest into another asset, creating even more cash flow.

For example, at an appreciation rate of 5 percent a year, the $200,000 home would be worth $295,000, and the $480,000 property would be worth $583,000. You could borrow another $100,000 out of these properties and use as a 10-percent down payment on a million-dollar property. What would the cash flow be on a million-dollarproperty?

Your assets double when you separate your equity from your properties. Can you see what I mean? Can one property properly managed make you a millionaire?Yes..you bet !

Now if you really think about what happened in this example, you will see that you were making your money work extremely hard for you. You didn’t let it sit idle as equity in a property. The key point for you to realize is that equity in a home is idle money. Idle money provides zero return.

If you only take one piece of advice from this report, make it this one …

FUNNELL ALL YOUR INVESTMENTS THROUGH YOUR REAL ESTATE;
Buy an asset (real estate) and have that asset fund your retirement plan, your car, boat etc.


fIRST buy real estate to create cash flow. Then use the cash flow to sustain your lifestyle, fund your RRSP's. As Robert Kiyosaki’s book teaches, your focus should be getting your money back and reinvesting, not letting it accumulate. He writes, “In my world, the velocity and safety of my money is far more important than the amount of my money ... Only amateur investors put their money in their retirement plan,RRSP'S and set the parking brake”

Don’t get me wrong. I just want you to fund your retirement plan, RRSP'S from house money. House money is much better than your money. Don’t you agree?


The information provided here is for educational purpose, if you are interested to discuss in details the ramifications, please consult your financial planner, your realtor for your personal investment goals.

Happy Investing,
Jimmy Singh, B.E.; S.R.E.S
Certified 50+ Real Estate Specialist
Full time Realtor & Investor Serving Hamilton-Burlington & Surrounding areas
Remax Escarpment Realty Inc. Brokerage
905-575-5478

10 FAST AND QUICK REPAIRS TO SHOWCASE YOUR HAMILTON-BURLINGTON HOME FOR SALE ...

10 FAST & QUICK REPAIRS TO SHOWCASE YOUR HAMILTON-BURLINGTON HOME FOR SALE ...

1.Wall cracks, holes or dents – fill and touch up, repair torn or loose wall paper

2.Window trim and baseboards – either touch up or replace if cracked, scratched or faded

3.Windows and window panes – replace cracked windows, make sure windows are operate properly

4.Switch plates and electrical sockets – if cracked, outdated or not working, replace them

5.Faucets and toilets – repair if leaking or dripping

6.Toilet seats – replace if cracked, broken or hinges not working

7.Flooring – repair or replace flooring that is chipped, scratched, loose, broken or missing

8.Carpets – professionally clean all carpets so they look their best

9.Cupboard doors – repair any doors that do not swing smoothly

10.Replace light fixtures that do not work properly, or are outdated, replace burnt out light bulbs

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

JIMMY SINGH, B.E. ; S.R.E.S.
REMAX ESCARPMENT REALTY INC. BROKERAGE
Specializing in Residential & Investment Real Estate
visit my website for more informative reports..
WWW.JIMMYSINGH.CA
jimmysingh@remaxescarpment.com

10 useful Tips to Prepare Young Children for a Move Buying or Selling your home in Hamilton-Burlington

Parents:
10 Tips to Prepare Young Children for a Move


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"Allowing your child to decide what to do with his/her worn toys provides them a feeling of control in a situation that is largely, out of their control."


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Over the years, many studies have been conducted to define and rank which typical life experiences cause the greatest amount of stress for the average adult. For anyone who has had to make a move, it probably comes as no surprise that moving ranks within the top 10 of the most stressful events… and once you add children to the equation, the stress level only increases.

We have compiled the following tips to help parents prepare their young children for a move, and to also help them adjust to their new home and community once the move has taken place.

1. Tell your children about the upcoming move as soon as possible.
Waiting until the For Sale sign appears on your lawn, or having your kids find out about the move from neighbors, will only leave them feeling left out and most likely, angry.

2. Discuss with your children, in an age-appropriate manner, some of the pros and cons of moving.
Most children get great comfort from simply being heard, and by being assured that their parents are committed to helping them adjust to a new environment.

3. Encourage your children to help you investigate your new community.
Most cities or towns have their own website, which they use to advertise and promote life in their community. In addition to finding information on the area lifestyle, you should also find a list of the local amenities, such as schools, places of worship, recreation centres, community sports associations, and parks. Most community sites will also include locations of the nearest shopping malls, movie theatres, and special attractions such as water parks, horse stables, and public beaches.

4. When packing, resist the urge to throw out all of your children’s old, unused toys.
Instead, ask your children to help you prepare for packing by separating their toys into three piles. Pile 1 comes with them to the new house. Pile 2 is for donating to a local shelter or community centre, and pile 3 is only for those toys that they understand are beyond repair, and for safety sake, should be thrown away. Allowing your child to decide what to do with his/her worn toys provides them a feeling of control in a situation that is largely, out of their control.

5. Pack any young children’s belongings last; allowing them prolonged access to their familiar possessions reduces their anxiety.
Ask your children to help you pack some of their belongings into boxes; and be sure to explain that the boxes, and every item that goes into the box, is going to be unpacked at the new house. Assemble some fun packing materials; a variety of brightly coloured (washable) markers for writing their name on each of their own boxes, bubble wrap for swaddling their dolls and soft toys, and a selection of stickers to decorate, and easily identify what is in each of their boxes.

6. Take your children to visit the new home at least once prior moving day, and be sure to keep the visit short, and upbeat.
7. Ask your child if he/she would like to have a moving party.
Invite his/her friends over to enjoy a night of pizza and movies. Take pictures of each guest posing with your child using an instant or digital camera. Keep one copy for your child, and give one copy to each guest to take with them.

8. Most kids make new friends at school fairly easily, but if your moving date is scheduled after the end of the school year, your child could be facing a long, lonely summer break.
To keep your child from feeling isolated you will have to take steps to help him/her meet some new friends. Soon after moving into your new home, ask your neighbors if there are children of the same age close by. Ask those neighbors who have young children if they are interested in allowing your children to play together at the local park during supervised play dates.


9. Once the move has taken place, organize a "family exploring day".Let your children help you plan an afternoon walk, or scenic drive through a specific part of your new town. By doing this, you will not only be helping your children to familiarize themselves with their new community, but your family will also be creating fun, new memories associated with your new home.

10. Involve your children in deciding how to decorate their new bedrooms.
Even the youngest child should have some of their ideas incorporated into the new design. Whether it’s a big decision (choosing the wall color), or a small decision (selecting just the right spot for his/her toy box), giving your child “a say” helps them to embrace their new space.

Above all, keep the communication lines open - before, during, and after the move. Depending on the child, it can take anywhere from a few days to many months to adjust to their new surroundings.

Joy & Happiness to you & yours !
Jimmy Singh,
sales Rep.
Remax Escarpment Realty Inc.Brokerage

Visit www.jimmysingh.ca
for more informative report Buying or Selling RealEstate in Hamilton-Burlington.

READ THIS BEFORE YOU BUY A NEW HOME IN HAMILTON-BURLINGTON AREA --FREE REPORT

10 Tips to Save You Time and Money: The Homebuyers' Guide to NEW HOMES



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"...read This BEFORE You Visit Your First Model Home!"


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When shopping for your home, you'll discover that most homes on the market are resales. Yet, one out of four homebuyers purchases a new home. Both new homes and resales offer advantages. Before you make a decision, let's . . .

Compare These Points!
New Homes
offer innovative use of space and style
greater energy efficiency
a choice of options and upgrades
everything is new, and modern.

Existing Homes
on the average they are less expensive
often they are in established neighborhoods with mature landscaping
homes have already settled, eliminating possible problems that arise from this happening after the purchase of home
As you can see, there are advantages to both. Most people consider both new and existing homes before they decide to purchase. Should you be thinking about buying a new house, here are 10 points to consider before you visit your first model home.

1. Determine a Comfortable Price Range
Before you visit your first model home, sit down with your agent and do your homework. You'll want to be prepared so that you can determine a comfortable price range for your new home. If you own a home, you'll first need to know the net proceeds from its sale in order to determine how much cash you'll have to work with. Don't simply estimate this but carefully calculate every possible selling cost. If you're a first time buyer, you'll need to first qualify your income. Determine the size of your down payment, then work out a monthly debt load so you can determine a comfortable price range.

2. Sellers' Agents Versus Buyers' Agents
Here's a good point to remember. The sales agent in the model home represents the builder, not you. They are known as sellers' agents. As a buyer you can work with a buyers' agent at no additional cost. It's his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money.

3. A Builder For All Reasons
Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements.

4. Get the Facts About Your Builder
Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get "spec sheets" on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.

5. Check Out the Neighborhood
Learn as much as you can about the community.
Discover what amenities it has to offer.
Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads
Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable.
Review the rules for the homeowner's association, or find out if one will be set up.
Think of how you will be affected by commuting routes and times.
6. Choosing Options and Upgrades

The less expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding usable space like a sunroom or a powder room. These features can add the most to the resale value of your home. Upgrading means selecting quality above "builder standard" such as carpeting, ceramics, detailing, kitchen fixtures and appliances. Be sure to take advantage of builder incentives that offer free upgrades or credit off the sale price. Remember, you can add a deck, finished basement or landscaping later and sometimes for less money.

7. Negotiations
Often buyers don't realize that there may be room for negotiating price, upgrades or options. For example, you have some scope for negotiating with the builder if s/he has a completed a home but hasn't sold it. Also some "premium lots" are priced higher and are sometimes saved to be sold last. Keep in mind that typically, all lots cost the builder the same, so be sure to enquire about lot pricing. Builders may offer discounts or special financing to help close a sale.

8. Be Sure the Contract Works in Your Favor!
When spelling out the particulars of an agreement with your builder, ensure you protect yourself by having safeguards written into the agreement, such as:

placing your deposit in escrow
detailing your upgrades;
allowing you access to the construction site to check on progress;
a 30-day advance notice of the closing date.
an explanation of what the fine print means in the warranties of the builder and manufacturer.
9. Financing - What's Best for You?
Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However, because "home loan" lending is highly competitive, you have many financing choices other than those being offered by the builder. Shop around for everything, from rates to lender fees. Appraisals, inspections, surveys, attorneys and closing fees can vary as well.

10. Just Because it's New.... - Doesn't Mean it's Perfect
Yes it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter, and safer. But because nothing is perfect, even if it's new, consider hiring a reputable, licensed home inspector. Then create a builder "punch list", from what you've learned to address any problems before closing. Consider budgeting for items to be modified or added later on. Many new home buyers use a real estate agent to help them negotiate the best price and terms with the builder.

Buyer Advantages Your Builder May Not Reveal!
Here's a fact that you may not be aware of, some builders have newly-constructed homes available for immediate delivery. Usually these homes are ready to move into within 30 days. Even if some builders are eager to sell, they'll probably keep that knowledge to themselves. Immediate delivery homes are often available for various reasons:

the community, where new homes are being constructed is nearly complete, so the builder proceeds to have the on-site-contractors build "spec" homes (homes built on speculation for sale) on the last lots;
the model home is for sale;
the contract on a home has fallen through;

builders include constructing homes for immediate delivery for buyers who are relocating or who have sold their previous home and need one to move into quickly.
Immediate delivery homes may be more desirable because, sometimes builders offer financing incentives or free options. This may be done in place of chopping prices to appeal to buyers purchasing later in the building phase. An immediate delivery home is an advantageous way to purchase a home if you need to move in quickly, or need a physical space to walk through and see before you sign a contract. Be sure to enquire.

If you are looking to buy a new home, feel free to call me to know your options ,learn inside secrets builder's Sales rep. use to charge thousand $$$ extra !!How to Protect yourself to avoid overpaying ?
Good Luck !

Jimmy
Jimmy Singh, B.E.; S.R.E.S.
Sales Rep.
Certified 50+ & Seniors Real Estate Specialist
Remax Escarpment Realty Inc. Brokerage
Serving Hamilton/Burlington Real Estate Market
905-575-5478(Hamilton) 905-639-5258 (Burlington)
www.hamiltonhomesinfo.ca

Residential Tenacies Act (RTA) ontario De-Mystified for local Hamilton-Burlington landlords

Following are the important issue when it comes to landlords and tenants and The Residential Tenancies Act is law in Ontario.

Statutory law for residential tenancies in Ontario now comes under The Residential Tenancies Act (2006), replacing the Tenant Protection Act.

This new statute became effective on January 21, 2007

The major changes under the residential tenancies act (2006) effective January 31, 2007 are


•The Landlord and Tenant Board is responsible for all matters regulated under the residential tenancies act, there is a local office here in Mississauga and Toronto
•The landlord must give new tenants a pamphlet with information on the responsibilities of landlords and tenants, the role of the Landlord and the Tenant Board and contact details for the board. The pamphlet is available through the Landlord and Tenant Board or at this link: http://www.ltb.gov.on.ca/graphics/249749.pdf
•The landlord can apply to the Landlord and Tenant Board for any justifiable increase in rent by more than the rent control guideline, if taxes, charges, or utilities have increased. If utility costs or taxes go down, the rent must also go down.
•IF the rent increase application is for capital expenditures or security services, there is a limit or three percent above the guideline for a maximum of three years. Once the capital expenditure is fully paid for, the rent must go down for any tenants who were living there at the time of the increase.
•At a hearing for a rental increase above the guideline, the board can decide to deny or delay the rent increase if there are serious outstanding maintenance issues for work orders on the property
•The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is the rate of inflations.
•The rate of interest that a landlord must pay to a tenant on a last month's rent deposit every year is the same as the annual rent increase guideline and landlords can use the interest to top up the last month's rent to keep it current.
•There is a shorter eviction process for tenants who cause wilful or excessive damage to a rental unit or building. This shorter process also applies to tenants who cause a disturbance in a small rental building where the landlord also resides. The notice period to the tenant is shortened to 10 days from the previous 20 days. Landlords can apply to the board for an eviction notice immediately after serving the notice.
•Except for a notice for non-payment of rent, when a notice of termination has been served on the tenant, the landlord must apply to the board for an order terminating the tenancy not later than 30 days after the date specified in the notice of termination.
Even thought het Residential Tenancies Act has replaced the Tenant Protection Act, the bulk of the legislation regarding notice periods for termination remains unchanged.

You may find additional information regarding the Landlord and Tenant Board, all of their forms and information is available online at:

http://www.ltb.gov.on.ca/en/index.html


Please email me if you have any further questions or require information on Hamilton-Burlington Rental Market.

Great Weekend,

Jimmy
www.jimmysingh.ca
jimmysingh@remaxescarpment.com

In todays market is it a good idea to rent out a investment property or home in Hamilton-Burlington area that doesn't cover operating expenses ?

One of my cliet Sandy booked a new home in Stoneycreek with a builder and want to sell for a profit, but can't right now, is there another option available to her?

In the past 8 months or so, I've had clients who have purchased a new property and have waited a year or more until the closing before they can sell the property. Normally, they would be able to make a nice profit on their investment, but this is not happening recently as often as it did over the past 10 years or so.

Sometimes a qualified buyer comes along and will pay a high enough price for the property and you can make a profit and other times you end up having to rent out the property.

The reason for this is that over the past 10 years real estate has appreciated at such a high rate per year, there has seldom been a problem with "selling for a profit" on your new property, mostly because of the extended time period from when you put in the offer until the closing.

The problem recently is that the market has cooled a little since about May of 2006 and the prices have not escalated as much as in previous years. Thus, there are other sellers that are very close to the break even point when they sell. You have to not only account for the real estate commission, but also your legal fees when you purchase and sell and the land transfer tax when you purchase plus other closing costs and disbursements. For a detailed list, read more here.

What happens is that we will end up putting the property on the market for rent and for sale and if an acceptable offer to purchase comes in before renting it out, that's great, if not then we end up renting out the property and waiting until the market value increases.

The bottom line: Be careful when purchasing a new property in the current market if you are planning on selling it right away to make a profit. Plan on renting it out if you can't sell it for a profit.

For more information please contact Jimmy Singh

Jimmy Singh, B.E.;S.R.E.S

Specializing in Residential & Investment Real Estate
RE/MAX Escarpment Realty Inc.Brokerage
BUS 905-575-5478

E-MAIL jimmysingh@remaxescarpment.com
Website: www.hamiltonhomesinfo.ca

Is it a good time to buy a home in Hamilton-Burlington area or should you wait for market to settle down ?

Just came back from walmart buying candies for coming Hallloween weekend.Met Jay my buddy from gym (looking to get married this dec)& he asked the very common question that is on the mind of many hamiltonians looking to buy their first home or upgrading to a bigger home in today's market, Should I Purchase My Home Now or Wait for the Market to Stabilize?


This is an important question that is difficult to answer but the following will give you an idea of what to do from once perspective


Many people are debating whether they want to buy a property now or whether they should wait. They are getting mixed messages from the media about the market conditions and the state of the economy. Reports are indicating that the real estate market is rebounding. However, we are still hearing negative news about businesses folding and job losses. So is now a good time to buy?

On the other hand, there is still the question whether housing market prices will hold or drop further. Potential buyers are wary about taking on such a huge borrowing to find that the dream house they have just bought may be worth appreciatively less in six months’ time.

The decision whether to buy a home now or wait is very tricky at the moment. On the one hand you have very low mortgage rates as the Bank of Canada had cut the interest rate several times in the last few months to try and get the banks lending again. Deals as low as 2.75% are being advertised to entice new customers into the market and get the chain moving again. Also, property prices have dropped in the last year and there are many good deals to be made.

House prices are cyclical. A low market is always a good time to buy even though it may be several years before the market rebounds. The property market will rebound. If you are in a position to buy a house and can afford the repayments, buy now. Waiting to buy could result in paying much higher prices in a rising market.

Are you really ready?
It is also important to consider how long you will be in the home that you are about to purchase. Once you buy the home, it may be very difficult to resell right now. If the market continues to drop and you end up moving and selling in a year, you may have been wiser to wait a bit longer. So that is something that you want to make sure that you consider when making the decision to purchase a home.

Another thing that you need to think about is if you can afford the home that you are considering buying. While prices have dropped recently, you want to make sure that you find a home that is going to fit your budget. As a precautionary measure you should also budget for the fact that the cost of living might rise even further, and that being able to afford these increases will be important.

Of course, if you have a long-term plan to be in the home, the fluctuations and potential decrease in value in the near term doesn’t need to get you down, as the only price that matters is the price you are able to sell for when you need or want to move.

If you have the funds available for a down payment and you are eligible for a mortgage, and feel comfortable about your job security, and currently meeting the rising costs of living fairly easily; then the time is probably right for purchasing property. It is still a buyer’s market, so find your dream home, negotiate your best deal and jump in. Buying property now is one of the best times in the last hundred years to get a bargain.

Yours Truly,

Jimmy

Looking to buy your 1st home No Money Down ? No Problem , i'll get you money you need . Call today for a no-obligation consultation.
905-575-5478(Hamilton) 905-639-5258 (Burlington)

Visit my website for real estate related insider information :-
www.jimmysingh.ca

Fall Home Improvement Tips for Hamilton-Burlington Home Owners

Fall Home Improvement Tips for Hamilton-Burlington Home Owners

Hello Dear Neighbours!


Fall in a cold climate is the time when animals store up food for the winter and grow thick coats, and the humans take in their last harvest, change everything in their clothes closets and shore up their houses for the snow and cold winds. One season at a time is about as far ahead as the animal kingdom thinks, but us humans should be thinking two seasons ahead. That's right, in the fall we need to plan for spring as well as winter.


Don't forget that the fall is also the time to prepare the rain gutters. After the last leaves have fallen, you need to do a last good cleaning of the rain gutters, and make sure they are solidly attached to the house so that they will be able to withstand the winter snow. If you don't get the leaves out now, they will create a long lasting icy block preventing the roof drainage system from doing its job when rain or melting snow hits the rain gutters from now until spring. Remember that the downspouts need to head about five feet away from the foundation as well. The primary function of roof drainage systems is to keep water away from the foundations of the house. There are a number of entries about "rain gutters" in the Nuts&Bolts section as well.

Now that we have the Spring thaw taken care of, we can turn our attention to getting the house itself ready for winter.

•- a tune-up for the "furnace";
•- clean the "chimney" attached to a wood burning appliance;
•- make sure all "wires" — such as electrical, telephone, cable — are solidly attached to the house;
•- use binoculars to study your "roof", or hire someone to take a close look to be sure the shingles and the flashing are all in good shape for the winter;
•- inspect, and replace if necessary, the "caulking" around the windows, doors, any other penetrations. Some siding requires caulking as well;
•- inspect, and replace if necessary, all "weather-stripping";
•- and if your "windows" are in really bad shape, you may need to replace them as well;

•If you follow my weekly preventative maintenance calendar regularly, most of these things will be up to date without your having to undertake any major winterizing efforts.

Each season has its own beauty, and its own demands. That is why I love living in a region that has four distinct seasons. It is like living in four different places, without having to move.

Have a Great Day !
Your Truly,
Jimmy

"Helping Families Make the Right Move !"

Selling a House with Pets at Home ?Visit my website to showcase your home for sale :-
www.jimmysingh.ca
905-575-5478(Hamilton) 905-639-5258(Burlington)

Learn how Fixed Mortgage rates go up when Variable rate is coming down

Over the past few months lot of my Hamilton-Burlington Area Home Buyers asked me how can fixed mortgage rates be going up when variable rate is coming down?Thants a great questions.How do you choose whether to go short or long term on your mortgage when it comes up for renewal?


Variable rates are tied to your bank's prime rate, which is based directly on the Bank of Canada rate. The central bank uses its rate as a tool to achieve the goals of "Low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt." Our central bank sets the trend for short-term interest rates and has a direct impact on short-term rates for mortgages and lines of credit, as well as rates paid on deposits and investment certificates.


Fixed-term rates, such as long-term mortgage rates, by contrast, are based on the bond market. Bonds are issued by governments and large businesses. We've all heard of Canada Savings Bonds, right? And they are just one type of bond. The "yield" of the bond is the annual rate of return, expressed as a percentage. Bond yields can be volatile and fluctuate in response to various political and economic factors, such as inflation and unemployment figures, and developments in the stock markets. They are increasingly affected by global forces.

Long-term mortgage rates (3 years and longer) are based on bond yields, but are less volatile because financial institutions absorb the daily market fluctuations in order to create a more stable rate environment for their customers. Generally speaking, higher bond yields increase funding costs for banks, which in turn leads to increased long-term fixed rates.

Conversely, lower bond yields lower banks' funding costs and lead to lower long-term mortgage rates.

So, short-term rates move with the Bank of Canada's needs, while longer-term rates are tied to the bond market. The Bank of Canada can influence long-term rates, but it has no direct control over them. This difference in how rates are set is the reason we sometimes see short-term and long-term rates moving in unison, while at other times they diverge.


Perhaps the easiest and best solution is to break your mortgage into pieces and diversify your borrowing across short and long terms. This is mortgage "laddering," a concept Canadians know and use to stagger their GIC maturities for diversification, but which surprisingly few of us use for our mortgages.

Diversification is an important principal that applies as much for borrowing as it does for investing. By blending different types of mortgages and staggering maturities, you can diversify your interest rate risk, and perhaps minimize your interest costs.


I hope this finds you Happy and Healthy!

All the Best!
Jimmy
Any Questions regarding Hamilton-Burlington Real Estate Visit:-

www.jimmysingh.ca

Real Estate Transaction and Effect on Matrimonial Home during Separation

DIVORCE: What You Need to Know About Your House, Your Mortgage and Taxes



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“Once you know how a divorce affects your home, mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions.”


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How to Avoid Costly Housing Mistakes in the Midst of a Divorce

Divorce is a tough situation which opens up many emotional and financial issues to be solved. One of the most important decisions is what to do about the house.

In the midst of the heavy emotional and financial turmoil, what you need most is some non-emotional, straight-forward, specific answers. Once you know how a divorce affects your home, your mortgage and taxes, critical decisions are easier. Neutral, third party information can help you make logical, rather than emotional decisions.

Probably the first decision is whether you want to continue to living in the house. Will the familiar surroundings bring you comfort and emotional security, or unpleasant memories? Do you want to minimize change by staying where you are, or sell your home and move to a new place that offers a new start?

Only you can answer these questions, but there will almost certainly be some financial repercussions to your decision process. What can you afford? Can you manage the old house on your new budget? Is refinancing possible? Or is it better to sell and buy? How much house can you buy on your new budget? The purpose of this report is to help you ask the right questions so you can make informed decisions that will be right for your situation.

4 OPTIONS

You have 4 basic housing options when in the midst of a divorce:

Sell the house now and divide up the proceeds.
Buy out your spouse.
Have your spouse buy you out.
Retain your ownership.
It’s important for you to understand the financial implications of each of these scenarios.

1. Sell the House Now and Divide Up the Proceeds

Your primary consideration under these circumstances is to maximize your home’s selling price. We can help you avoid the common mistakes most homeowners make which compromise this outcome. As you work to get your financial affairs in order, make sure you understand what your net proceeds will be - i.e. after selling expenses, and after determining what your split of the proceeds will be. Note that the split may not be 50/50, but rather may depend on the divorce settlement, the source of the original down payment, and the legislative property laws in your area.

2. Buy Out Your Spouse

If you intend to keep the house yourself, you’ll have to determine how you’ll continue to meet your monthly financial obligations, if you now only have one salary. If you used two incomes to qualify for the old loan, refinancing on your own might be a challenge.

3. Have Your Spouse Buy You Out

If you are the one who is leaving, you have the opportunity to start again in new surroundings with cash in your pocket. However, be aware that if the the old home loan is not refinanced, most lenders will consider both you and your spouse as original co-signers to be liable for the mortgage. This liability may make qualifying for a new mortgage difficult for you if you decide to purchase a home, even though you won’t have legal ownership.

4. Retain Joint Ownership

Some divorcing couples postpone a financial decision with respect to the home and retain joint ownership for a period of time even though only one spouse lives there. While this temporary situation means you have no immediate worries in this regard, keep your eye on tax considerations which may change from the time of your divorce to the time of the ultimate sale.

When You Decide to Sell

I f you and your spouse decide to sell your home, it will be important to work together through a professional to maximize your return. Differences aside, you both should be present when a listing contract is put together. Both of you should understand and sign this contract, and both should be active in the ultimate negotiations.

When You Buy Your Next Home

Use the proceeds from your previous home or buy out to determine an affordable price range for your next home. Maintain a clear focus on getting the right home to suit your new situation. You may wish to review with an agent who offers a house-hunting service to help find a home that matches your new home buying criteria.



--forwarded to me by a local family lawyer----

When acting for separating spouses on the sale of a matrimonial home where only one of the spouses is on title be sure to confirm the status of the marriage before the agreement is executed.

In the event the spouses have been living separately before the agreement, and a formally executed Separation Agreement is not in place, the consenting spouse (i.e. the non-titled spouse) must sign the consent clause. This is because he/she still retains a right in the property as it was a matrimonial home.

By ensuring that the spouse signs consent you potentially eliminate contention or backlash from unresolved family law matters to the real estate transaction.

Generally speaking always remember to ask if your client has a spouse who will be consenting to the agreement as supposedly “happy” families have been known to contend a sale on the grounds of non-execution of the consent clause.

The OREA form of Agreement of Purchase and Sale contains the Family Law Act Warranty. Once you become aware that consent is required remember to have the Spousal Consent section at the end of the agreement executed by the spouse before an eligible witness.

I hope this finds you Happy and Healthy!

All the Best
Jimmy !

Specializing in Residential & Investment Real Estate

If you have any real estate related question, please feel free to E-mail me !
jimmysingh@remaxescarpment.com
Website : www.jimmysingh.ca

What's Best to Invest in today's market? Real Estate vs Stock Market

Hello Hamilton-Burlington Area Real Estate Investors,

The bull market has been running up the high Dow Jones and TSX and other markets for some time now and many people feel they need some pessimism in order to cool it down a little since the rise in the markets was too high and over a short period of time too fast for most of the market to absorb the huge influx of money.

Maybe it's time to sell your stocks or mutual funds and sit on the sidelines for a while.

Only time will tell.

I continue to feel that real estate is a very good long term leveraged investment, tenant pays off the property, you get a tax write off.

Here is a good "real life" example of how you can be financially secure when you are 60 years old.

Imagine you bought just one townhouse investment property when you were 40 years old for $250,000

You put $25,000 downpayment and your mortgage and tax payments were $1500 per month for 20 years and the rent payments were $1400 per month for 20 years


It may cost you $100 per month out of your pocket plus another $100 per month for regular maintenance and incidentals, thus $200 per month or $2400 per year but you got $1000 of that back on your taxes so it really cost you $1400 per year or $28,000 over the 20 years and ...

Imagine you are now 60 years old and you say, honey, we need some money to travel and buy things for our children and ourselves and enjoy life since we are now 60 and you sell that investment property for at the least $300,000


Your adjusted cost base, (your total cost of your investment property) is initial cost plus additions which is about $284,000 (250000+28000+4000 land transfer tax and legal fees to buy and sell it) less costs when you sell equals a capital gain of $16000 which you would pay about $2000 income tax so now you have $288,000 EXTRA cash to spend on you and your family for 20 years of owning that investment property, piece of cake!

This is assuming that the property value increases only 20% over 20 years. If history repeats itself, then the property should at least double if not triple in value in 20 years, but let's be super-conservative with our estimates and say it doubles, even with capital gains tax on half the profit you would still end up with about $455,000 (250000+250000 less about $45000 capital gains tax)


Now, and here is the kicker, if you bought two properties at 40 and did the same thing you would end up with $910,000 in your bank account at age 60

Almost $1MILLION


It does not matter how much inflation we have over the period from now until 20 years from now, $910,000 in your bank account is still almost a million dollars no matter how you look at it


If I had $910,000 today versus $910,000 back in 1989 I would still have a heck of a pile of money and freedom to do the things I want to do, inflation or not.


1989 was not that long ago, so 2029 is not as far in the future as it seems, it will be here for you sooner than you think and if you don't start doing something about it now, you won't have the $910,000 in your bank account or anything for that matter in 20 years from now

You must take some action, get off your butt and do something about it today. Beg or borrow that $25,000 today, buy that townhouse today for $250,000 and sit on it for a measly 20 years, only 240 months and you are done. If you can do it and surely if you can purchase two investment properties now, you'll be set for the balance of your life

I'll even make it easier for you, buy one or two properties as I have outlined above and then let me manage them for you for a small fee and you can literally sit back and enjoy the benefits of your long term investment without lifting a finger for the next 20 years. Want to know more about property management?

Sound like a plan for you? Then let's just do it!
Read my article :Making Million$$ investing in Greater Hamilton Real Estate

http://www.hamiltonhomesinfo.ca

I wish you All the Best to you and your family!

Jimmy

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter

RE/MAX Escarpment Realty Inc.Brokerage
905-575-5478(Hamilton) 905-639-5258 (Burlington)

Certified 50+ Real Estate Specialist

E-MAIL : jimmysingh@remaxescarpment.com
Website : www.jimmysingh.ca

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