Advice to tips and advice to improve your finances and long term goals
Tuesday, August 27, 2019
Financial Health House and Home Buying and Selling
In our “bigger is better” culture, there’s an expectation that each home should be larger and grander than the last. However, life changes like divorce, kids leaving for college, or even the simple act of growing older can prompt us to find a smaller home that better suits our shifting needs and lifestyle.
In fact, the advantages of downsizing are being increasingly recognized. A “tiny house movement” has gained passionate advocates who appreciate the benefits of living simply at any age and stage of life. Not only does a smaller home typically cost less, it also takes less time and effort to maintain.
Whatever your reasons are for downsizing, the process can seem overwhelming. Because of this, people tend to put it off and then find themselves in a crisis situation, necessitating a unplanned move. To help take away some of the fear, I’ve outlined five steps to guide you on a downsizing journey. In the end, I hope you’ll find that it's not so scary after all and that less is more … more comfort, more security, and more time and energy to spend on the activities and the people that you love.
5 STEPS TO DOWNSIZING SUCCESS
- Determine Your Goals and Limitations
The first step is to figure out your goals for your new living environment. Do you want to live closer to family? Are you hoping to cut down on home maintenance? Are you looking for a community with certain amenities?
You should also consider any limitations that will impact the home you choose. For example, are stairs an issue? Do you need access to medical care? In the case of divorce, are there child-custody issues you need to take into account?
Estimate how long you plan to stay in your new home. Do you expect your needs to change during that time?
Make a “wish list” of features and prioritize them from most to least important. If you’d like any assistance with this process, give us a call! I’d be happy to sit down with you for a free consultation. I can also help you assess the value of your current home so you can set a realistic budget for your new one.
- Find the Perfect New Home
Once you’ve established your “wish list,” we can begin the search for your new home. As a local market expert, I know the ins and outs of all the top communities in our area. I can help you determine the neighborhood and type of home that will best fit your wants and needs.
From family neighborhoods to retirement communities, I serve clients in all stages of life. If you or a loved one are in need of extended support, I can also share my knowledge of the assisted living facilities in town and help you identify those that offer the optimal level of care.
Are you planning to relocate out of town? Through my network of other Master Accredited Senior Agents I can refer you to a reliable, competent and trusted real estate professional in your target area who can help you with your search.
- Sell Your Current Home
If you’re ready to sell your current home, we’ll begin the process of preparing to list it as we search for your new one.
I have a special interest in helping homeowners who are facing major life transitions, and offer a full-service real estate experience that aims to remove as much of the stress and hassle of selling your home as possible. I also understand that many of my clients choose to downsize for financial reasons, so I employ tactics and strategies to maximize the potential sales revenue of your home.
My approach focuses on optimum preparation, pricing, and promotion. As part of that plan, I invest in an aggressive marketing strategy that utilizes online and social media platforms to connect with consumers and offline channels to connect with local real estate agents. This ensures your property gets maximum exposure to prospective buyers.
- Sort and Pack Your Belongings
Even before you find your new home, you can begin preparing for your move. A smaller home means less space for your furniture and other possessions, so you will need to decide what to keep and what to sell or donate. Sorting through an entire house full of belongings will take time, so begin as early as possible.
Parting with personal possessions can be an extremely emotional process. Start with a small, unemotional space like a laundry or powder room and work your way up to larger rooms. Focus on eliminating duplicates and anything you don’t regularly use. If you have sentimental pieces, family heirlooms, or just useful items you no longer need, think about who in your life would benefit from having them. For large collections, consider keeping one or two favorite pieces and photographing the rest to put in an album.
Make sure the items you keep help you achieve the goals you outlined in Step 1. For example, if you want a home that’s easier to clean, cut down on knickknacks that require frequent dusting. If you’re moving to be closer to your grandchildren, choose the shatterproof plates over the antique china.
Allow yourself time to take breaks if you start to feel overwhelmed. If you’re helping a loved one with a move, try to be a patient listener if they want to stop and share stories about particular items or memories throughout the process. This can be therapeutic for them and an opportunity for you to learn family history that may otherwise have been forgotten.
- Get Help When You Need It
Moving is stressful in any situation. But if you’re downsizing due to health issues or a major life change, it can be an especially tough transition. Don’t be afraid to ask for help.
Seek out friends and family members who can assist with packing and de-cluttering. If that’s not an option, or if you need additional help, consider hiring a home organizer, full-service moving company, or even a senior move manager, which is a professional who assists older adults and their families with the physical and emotional aspects of relocation. Through my extensive network of exceptional specialists I'm confident we can find just the right support for you.
If financial constraints are holding back, let me know. I can help you explore the possibility of tapping into the equity in your current home now. That way you can afford to get the assistance you need to make your transition as smooth as possible.
ARE YOU LIVING YOUR BEST LIFE?
Later-in-life housing decisions really do deserve a customized transition plan, extra time, patience and highly specialized guidance. Working with someone like myself - a Master Accredited Senior Agent and Senior Real Estate Specialist - is your best route. Call or email me today at 905-330-5201 or firstname.lastname@example.org to schedule a free, no-obligation consultation and receive your own tailor made transition plan!
Monday, May 14, 2018
Financial Health Real Estate Market Buying and Selling
At the beginning of this year, new tighter mortgage rules were put out by The Office of the Superintendent of Financial Institutions (OSFI). This has made it more difficult for some homebuyers to get mortgages this year.
The new rules have stricter qualifying criteria as the requirement for a mortgage stress test is now extended to all homebuyers. Even borrowers with a down payment of twenty per cent or more now face a stress test, as has been the case since January 2017 for applicants with smaller down payments who require mortgage insurance. This is aimed at limiting the amount of debt that Canadians and financial institutions take on.
So what is the stress test? It means that financial institutions would use either the five-year benchmark rate published by the Bank of Canada or the customer's mortgage interest rate plus 2 per cent - whichever is higher. This is to ensure that borrowers’ housing expenses compared to their income remain below a certain threshold even if rates rise. Financial institutions look at the size of the loan compared to the price of the house as well as credit scores.
For some first-time homebuyers these stricter mortgage lending rules mean you might need to rent for longer before you can buy a home. Or you might need to consider getting a co-signer to qualify under these stricter rules. This may cause others to have to settle for a less expensive home than they would have qualified for in the past, and some people may choose to wait and save up for a larger down payment.
Are you a first-time homebuyer? Get in touch to discuss how I can help you on your journey to home ownership! Call me at (905)330-5201 or by email at email@example.com
Monday, November 20, 2017
Financial Health Real Estate Market Buying and Selling
With interest rates on the rise and many housing policy changes over the past year, it's more important than ever for first-time home buyers to have their mortgage pre-approval in hand when beginning the search for a new home.
There are a few reasons why getting pre-approved is so important as you begin the journey towards home ownership. For one, it takes the guesswork out of house hunting! There's no sense in viewing and falling in love with a home you can't afford. You can streamline the process and keep only true contenders in the running when you are aware how much you can afford to spend on your new home. Another reason to get pre-approved is that it shows that you're a serious buyer. Both real estate sales persons and sellers will recognize that you have done your homework and are truly ready to buy. In fact, having a pre-approval in hand may give you negotiating power over another buyer who has not been pre-approved.
Getting pre-approved will also help things move along quicker and smoother during a negotiation. It will allow you to act fast when placing an offer on a home. By getting pre-approved you have started the application process for the mortgage. They will provide you with a pre-approval letter, though it is important to remember that this is not a guarantee of financing. Most realtors will still recommend that you include a condition on financing in any offers you submit.
What is a mortgage commitment letter? A little more in-depth than a mortgage pre-approval, a mortgage loan commitment letter means that a full mortgage application was taken, the loan has passed through underwriting and the borrower was approved. A commitment letter is a document that lets everyone in the real estate transaction (real estate sales persons, sellers, etc.) know that the lender is prepared to take on a loan that will cover the cost of a home.
The simple step of getting pre-approved will make your home buying experience run smoother.
Monday, September 25, 2017
Financial Health House and Home
Buyers have plenty of choice when it comes to choosing the type of home they will buy. You can purchase new from a builder, or shop around for a resale townhouse, single family home or condominium.
The latter is an excellent option for first-time buyers, young professionals and retirees or those looking to downsize. That's not to say that all condos are affordable. A spacious unit in a well-appointed building can easily boast a price tag well into the millions with monthly maintenance fees approaching $1,000 per month.
Whatever your price range, there are a few things to consider and research before settling on a condo purchase.
The first factor to consider is those condominium fees. Possibly one of the great mysteries of homeownership, these fees can turn an outright purchase into what seems like a rental, with monthly payments to factor into your budget for as long as you live at that address. If you have never paid condo fees before and the concept has you running scared, take a few minutes here to understand what they are and what they cover:
• The cost of keeping common spaces (elevators, indoor and outdoor gardens, lobbies and hallways, etc.) clean and in good working order.
• The upkeep of amenities such as fitness rooms, swimming pools, bowling alleys, theatre rooms, spas and party rooms.
• Snow removal, roof repair and insurance.
You'll also want to think about the building's amenities. Before you move into a condo, decide whether its in-house bells and whistles are perks you'll use often enough to warrant the fees you'll be paying for them each month.
A final consideration is the condo corporation's status certificate. A status certificate is a prospective condo owner's first look into the financial health of their potential investment. This comprehensive report gives all the details on the current fees that owners' pay, any large fee increases that may be on the horizon and any liens or arrears owed by particular owners. Financial statements are also a part of the status certificate and will show the trends in expenditures and receipts of the past, and provide comparisons of a corporation's actual and expected costs. To get your hands on a condominium's status certificate, you must submit a written request to the condo board's management company, plus a $100 fee. They have 10 days, as required by law, to provide the certificate.
Monday, July 17, 2017
Financial Health House and Home Real Estate Market
Even homeowners who do all their homework before buying are occasionally surprised by how quickly the many expenses of home ownership add up each and every month. But rest assured; if you stick to your budget and make a few sacrifices here and there, it is possible to save money and maybe even pay off your mortgage a few years early!
Mortgages are compounded with hundreds of payments to slowly reduce both your principle loan as well as interest charges, so you can expect interest-heavy payments for the first five to seven years as your bank makes lending you all that money worth their while. But there are ways to pay down your mortgage faster and save money in the long run!
Bi-weekly is best - Opting for an accelerated biweekly payment schedule will not only allow you to make 26 payments a year, it will also reduce both your interest rates and principle amount faster. Lenders may charge you an additional fee, but this is money well spent.
Round it up – Did you know that a hypothetical increased payment of $1,000 instead of $830 could save up to $48,000 over the course of the mortgage? That's nearly eight years of payments! Ask your lender if this is an option for you.
Make a lump payment – If you get an annual bonus or consistently receive a substantial income tax return, consider using the windfall as a lump payment at the time of your mortgage renewal or sooner if your lender allows it.
When it comes to saving money, it's common to have difficulty during your first few years of homeownership as you adjust to the added expenses. But it can be done. Here are a few simple ideas to help you cut back:
- Online grocery shopping. How many times do you walk into a grocery store with nine or ten items on your list and leave with a cart full? Instead, do your shopping online and simply drive to the store to pick up your order – no more impulse buying! Check your local retailers to see if the service is offered.
- Make your own lunch and coffee every day.
- Use public transportation if available
- Install a programmable thermostat to save on energy bills