Geese

Have the courage to change the things you can

If you are a seller, there are plenty of buyers in the market for a home they consider priced correctly. You have to decide what the correct price is for your home if you truly want to sell. If you want your house sold, you must list it at a price a buyer will pay for it. Not a buyer from 2006 but today’s buyer who has plenty of homes from which to choose. It will take courage to sit with a real estate professional and honestly decipher the true value of your home. If you want to sell, you must have that courage.

If you are a buyer, and you believe now is the right time for your family to purchase a home – DO IT! Prices are back to pre-bubble prices and interest rates are at historic lows. That means that your monthly housing expense will be lower than any time in the last 50 years – and probably lower than your current rent payment.

The wisdom to know the difference

We all realize that the economic situation will take some time to correct. The question is whether or not it makes sense to delay moving on with your life until everything gets ‘better’. Should you not sell your home and delay reconnecting with friends and relatives that have all moved to another part of the country?

Should you not buy a house and enable your kids to attend the school you have already decided is best for them? Should you spend another winter up north even though your doctor recommends you move to a climate better suited to your current medical situation?

This is where your wisdom must kick in.

You already know the answers to the questions we just asked. You have the power to take back control of the situation by moving forward. The time has come for you and your family to move on and start living the life you desire. That is what is truly important.

10 Questions to Ask BEFORE Renting Your Home

1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).

2.) Because of the economy, over ten percent of homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?

3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?

4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?

5.) Will you allow pets? Cats? Dogs? How big a dog?

6.) How will you actually collect the rent? By mail? In person?

7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?

8.) Do you have a list of craftspeople readily available to handle these repairs?

9.) How often will you do a physical inspection of the property?

10.) Will you alert your current neighbors that you are renting the house?

OUR annual HO HO HO SHOW will be this FALL - NOV. 17  at our Town & Country Hall.

visit:  airdriewomen.ca

for more information -

Table Rentals and Memberships are available.

Will be a Spectacular SHOW -  

160 Acres inside NE Calgary, newly annexed

 Quarter Section located within the city limits of Calgary. This parcel of land is located within The City of Calgary boundaries and is presently in the Northeast Regional Policy Plan.

The new airport expansion lies directly to the south and west and will create thousands of jobs.  As well, to the north is Rocky View County.  There is the Cross Iron Mills Mall, Costco, proposed Horse Race Track, Wagon Wheel Industrial Park, where Wal-Mart has their Western Regional food distribution warehouse. As well there is the Highfield Industrial Park and Target is presently building their western regional warehouse there with much more growth on the books.

Price: $17,600,000

Rule Changes - The Ugly

Hope you are all enjoying the summer and getting ready to get back to normal routines.

Back in July, the Canadian Government made changes to the mortgage lending rules and I would like to review four financing situations that highlight how much impact these changes have going forward.

1) Nullified Switch

The Facts: Your existing mortgage with a remaining amortization of more than 25 years is up for renewal. You have less than 20 percent equity. You have found another lender with a great rate but your gross debts exceed 39% of your income.

The new reality: Kiss the better rate goodbye. Only your existing lender with the higher rate can re-lend without re-qualifying you.

2) Consolidation Blues

The Facts: You have an existing mortgage and would like to increase it to consolidate some high interest debt or to make improvements to your home. However, the additional needed funds push you above the 80% refinance limit.

The new reality: No can do. You will have to continue paying the high interest debt as is. As for the home improvements, you might have to forget them or obtain a higher interest loan elsewhere. All this comes at a higher interest rate than it would have under the old rules.

3) Moving up!

The Facts: You have outgrown your existing home and would like to buy a bigger and more expensive one. You want to increase your existing mortgage to do this but have less than 20% equity.

The new reality: You will have to qualify under the new rules on your entire mortgage, even on the existing part. This means that your gross debts will need to be less than 39%, you are capped at 25 year amortization and the purchase price will need to under $1 million.

The Facts: You have an existing home equity line of credit (HELOC) and want to make some changes such as change the lender, increase the borrowing amount or add a new mortgage portion to the HELOC.

The new reality: Any of these changes could limit your HELOC to 65% of the value of your home.

These are only four examples which hopefully show the implications of these new rules. I am sure there are many others but at least this will get you thinking. The Government’s objective to reduce Canadian household debt is a good one. However, I question whether some of the new rules do this. Also, studies show that mortgage debt is not the big issue. It is credit card and other debt that needs controlling.