The Real Estate and Mortgage Show

5th Commandment of Buying Real Estate

5th Commandment of Buying Real Estate

i have the real estate crystal ball and I’m here to tell you whats going to happen.

 

 

Hey, look what I got, the real estate crystal ball, and I'm gonna tell you exactly what's going to happen.

Actually, I'm not gonna tell you because that's not a crystal ball.

That's a solar powered globe that I took off my front porch. Anyway, here's the thing. Nobody knows what's going on in the real estate market. I've been hearing a couple of real estate agents actually picking on each other saying, Hey, real estate agents don't know what they're talking about.

They're not economists. Well, guess what? Economists know what they're talking about. At least they should know what they're talking about. And they don't know what they're talking about. They keep changing their story. They've done it all year. They made bad predictions last year, and here we are in the mess that we're in. Okay, here's the bottom line. Prices are down in our area somewhere between 25 and 30%.

That is significant. Now, what you qualify for in terms of a monthly payment in the spring compared to now, it's probably the same if you're earning the same money, you qualify for the same payment, you do not qualify for the same mortgage amount. But the good news is as prices are down, okay, so no problem, you can get into the market for a lot less money.

That means less down payment, that means less closing costs, less land transfer tax. So why not take advantage of it?

 

If you don't feel comfortable acting in today's market, don't do it. Sit on the sidelines, Wait for prices to come back up.

That's totally up to you. Now, our price is done going down. I don't know, but neither does anybody else. But here's what I do know. We seem to have flatline probably since August.

There's not a whole lot of difference in values between now and August, so I have a feeling we're somewhere around the bottom.

But hey, again, I'm just the dumb real estate agent. What the heck do I know? But I do know this on boots on the ground and I know what people are doing out there.
We're still running into multiple offers. We're actually running into quite a bit of activity because the inventory is down.

The inventory is down quite a bit from July, I think we were sitting at about 370 listings in Cambridge in July, and now we're about 2 75. So it's down, let's say a hundred listings. So it's down quite a bit. Anyway, that's what's going on in the marketplace. The other thing is the US Fed is meeting tomorrow afternoon, and that should tip the hat of the Bank of Canada as to what we do here in December.

So keep an eye on that, and if you feel comfortable diving into today's crazy real estate market, give us a call, 5 1 9 2 4 0 0 3 6 0. We're here to help you. And if you need mortgage help, we're here to help you with that as well. We'll talk to you later. I hope you have a great day.

Private Mortgage Borrowing

So, you know, we love private mortgages, We love doing them, but we always triage the situation to make sure that the borrower is in fact a qualified private borrower and not somebody that can actually go to a financial institution. Because if you can do that, then why would you borrow privately? Okay?

Secondly, we also make sure that you have an exit plan.

So if you've got those two criteria, then obviously we've got our own criteria, the biggest one being loan to value on the property and the type of property. But if you meet those criteria and you've been getting turned down by lending institutions or financial institutions and they don't want to quite help you out, then give us a call.

As long as the deal makes sense and there's an exit plan, then we've got a solution for you. But if it's just, you know, prolonging the inevitable, it's probably not something we can do anyway, give us a call, 5 1 9 2 4 0 0 3 6 0.

If you think you got something that, uh, would fit the mold, then by all means, I'd be happy to help you out.

Trust the experts to be wrong

Trust the experts to be wrong

Hey, so yesterday I tuned into TikTok,  obviously to upload my video and I came across a lady that's actually a real estate agent in the Toronto Real Estate Board.

 

She was pontificating about how she was tipped off about how agents who think they, just because they have a social media platform, they have the right to say whatever they want.

 

She was actually quite vulgar about it. And what was really interesting was she was actually exercising the very thing that all these other agents do, you know, using her freedom to say whatever she wanted on our social media, okay?

 

I think agents should do that. I didn't like the fact that she just wanted to generalize and make herself look better by putting down every other real estate agent.

 

I can tell you, you know, yeah, there's no question there's some bad people in the business, but I will say, for the most part, agents are pretty good people.

That's been my experience over 35 years in the business. Agents are pretty hard-working and they're pretty dedicated to their craft.

 

Yes, there are some that are crazy, no question about it, but for the most part, you can count on a real estate agent being a pretty good person.

 

Okay? Now here's the thing. One of the things she was going on about was she didn't like that agents were making, um, economic, predictions or giving advice. And, you know, why not? I mean, agents have boots on the ground. They know what's going on. They know what's going on at the offer table. T

hey know what kind of activity they're, they're experiencing in the, in the marketplace.

 

You know, in 2020, I don't know if you guys remember it or not, but Tiff Maclan basically told everybody that interest rates aren't going anywhere. So if you're making a big purchase, a house or an investment, you can be assured that interest rates aren't going anywhere wrong.

Okay, Scotia Bank, at the end of last year, I believe they predicted somewhere around a 2% lift in the marketplace, or almost double that. Okay?

 

These are experts now, the boots on the ground. Yeah, we didn't have a clue what was going on either, okay? But neither did they, they got all the education, these experts, you know, they go to U of T or Queens University or London, but Western University, that's fine. I, I have nothing against that type of education, but it doesn't make him an expert. I'll tell you, when I was first in the real first got in the real estate business in 19 87, 19 90, I met a gentleman by the main, by the name of Tom Wright. Now 1990 was a shit market, okay?

 

Now, Tom was very attuned to what was going on in the marketplace. And, you know, he read the Financial Post, he read the Globe Mail, he did all that and I asked him, What should I be reading in order to be astute about the marketplace as you are? Tom? And Tom said, Listen, Walter, don't worry about reading about any of that stuff. Talk to the guys on the shop floor, okay? They're the guys that know what's going on. They know when the plant is busy. They know when it's slow. They can feel the hum in the air in

 

Terms of what's going on in the marketplace. So before you, you know, give this whole deification to economists, they're not as great as people think, Okay, talk to the boots on the ground. They know what's going on. I would take that over any economist any day.

What has the interest rate increase done to your purchasing power?

Let me give you the skinny on what happened yesterday with the, interest rate changes here in Canada.

Obviously, everybody knows, cuz everybody on TikTok and LinkedIn and Instagram and Facebook are all telling you that rates have gone up by half a point.

So here's the bottom line. The rate or the payment that you qualify for has not changed, obviously.

Okay? What you qualify for is a percentage of your income.

That's it. You can't change that unless your income changed. So if the point, if the interest rate went up by half a point, uh, the bottom line is you've lost basically 5% of your, uh, purchasing power.

I, the way on my calculations is, as for every quarter point that rates go up, you lose about two and a half percent.

Okay? So we're just under that. So I guess the good news for buyers is that your, your purchase price is gonna change if you're dealing with a seller that needs to sell.

They need to adjust to the marketplace, otherwise you're not gonna buy their property cuz you just plain don't qualify. So you're going to have to find a seller that's goingto cooperate to that.

So the good news is buyers, you get a better deal. Sellers bad news is, is you're not going to get as much money.

Now remember this buyers, purchase price is permanent.

Mortgage rates always change.

Remember that, take advantage of the market the way it is now because, uh, when interest rates go back down, you have locked in a price based on higher interest rates.

 

So this is good news for you, buyers and sellers. Hang in there. If you don't have to sell, hang on but if you do, you gotta take it on the chin.

Curious about what the current value of your home is in today’s market?

So a lot of people are wondering what the value of their home is these days, given the adjustment in the marketplace.

So what I'd like to do is invite you to a website I've created called Value of my home.ca.

You just need to click on that red link down there, where it says, Get my home value now.

Then once you do that, you'll be taken to this page right here. And all you gotta do is just put your address in that box there.

I think after that I'll ask you a couple questions about your property and your email address, and we'll send you a market evaluation of your property.

Some of the comparables are a little wonky because it is a, you know, an automated system, but it does give you a good general idea of what's happening in your marketplace right now.

So go ahead and use it if you like, valueofmyhome.ca and if you need to reach out to me, um, my link's in the bio. So, please go ahead and do that.

Have a great day.

 

www.valueofmyhome.ca

4th Commandment of Buying Real Estate.mp3

4th Commandment of Buying Real Estate.mp3

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3rd Commandment of Buying Real Estate

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2nd Commandment of Buying Real Estate

 

Commandment #2 Thou shalt not buy a car truck or van or you may be living in it