Edmonton Real Estate Blog

To view the video for Edmonton’s First Time Buyer report just click on the following link:

http://www.youtube.com/watch?v=q_djccXIHN8

In a recent research study done my MoneySense magazine Edmonton ranked 8th best city to live in Canada beating Calgary by a country mile at 16th place.

Motivated by a strong Canadian dollar and what they perceive as bargain U.S. home prices, as many as 1 in 5 Canadians say they’d consider purchasing property in the U.S. 　

A new survey for BMO Bank of Montreal and conducted by Leger Marketing reveals that as home prices have dropped in the regions of the U.S. which are traditional destinations for Canadian snowbirds, interest in purchasing U.S. property has risen. 　

Want to know which Canadians to target? 　Regionally, those in Alberta (31 percent), British Columbia (28 per cent), and the Prairie Provinces (27 per cent) are most interested buying property in the U.S.　

Bank of Montreal suggests that Canadians wanting to purchase in the United States should consider the questions shown below. 　While some of these are lifestyle questions which the prospects will have to answer for themselves, to answer other questions, a REALTOR’s input will be valuable. 　If you want to tap into this market, make sure you are knowledgeable and can refer prospects to tax advisors and others as needed. 　

Questions for Canadians Considering Purchasing in the United States:

• What states and neighborhoods fit your needs?
• Since you are responsible for property maintenance, consider how easily you can access your property from your Canadian home throughout the purchasing process and after acquisition.　
• Consider flights and airlines, if you can fly there direct, and the cost.　
• Research and even ask locals about the community to ensure it suits your needs.　
• What to consider when financing the purchase with a U.S. based financial institution?
• It is important to be aware of the differences in mortgage financing and how interest is charged in the U.S.　
• What mortgage money is available to international buyers?
• Furthermore, understand the impact of penalties and withholding taxes if and when you decide to sell your home in the U.S.　
• Do you understand the status of the property?
• Understand the terms of the property. For instance, is it labeled as short-sale or on foreclosure?　
• The status of the property can have a variety of implications. Be sure to consult an expert before making any buying decisions.　
• How will you use your property?
• Is your purchase for investment or lifestyle purposes? This will affect where you buy and how you hold the property. Also, understand the options available and what will benefit you in the long run.　
• If your purchase is for income purposes, keep in mind that renting your property means added responsibility. Research the possibilities of increased utility usage, property management needs and the vacancy rate in the area to ensure you’re prepared. Investment properties can be subject to taxation in two countries, so make sure you speak to a taxation specialist.　
• How much time will you spend south of the border? Consider how many months of the year you’ll be living there so that your purchase reflects your lifestyle.Be aware that there are rules regarding the amount of time you can spend in the U.S. before being considered a U.S. resident and subject to paying income tax.　

I am busy sending all the people in my “A” group St.Patrick’s Day card with a lottery ticket.  My the luck of the Irish be with them.

Great News!!! I just passed my final exam with a test score of 94% as the first step in earning my “Certified Luxury Home Marketing Specialist” designation. I am now member of “The Institute of Luxury Marketing”

One of the best things you can do to ensure you get the home you want is to arrange for financing before you go shopping. This is often referred to as getting “pre-approved”.

Getting pre-approved simply means that your lender has calculated how much of a mortgage they’re willing to offer you, depending on your down payment and current financial situation.

There are two advantages to having a pre-approved mortgage. First, you know exactly what you can afford when shopping for a new home. Second, when you make an offer, you’re likely to be taken more seriously.

To get pre-approved call “Chita” at Dominion Lending Centres – Optimum 780-932-2225 or go online for a free no-obligations pre-approval @ www.edmontonbestmortgagerates.com

Canadian new home prices rose more than expected in January and hit a record high, but the pace of growth was the slowest since March, adding to evidence that the housing sector is starting to cool.

But that was nation wide and things are a little different here in Alberta. There is just too much going on in the oil and gas industry that going to keep the Alberta economy very strong.

So I do expect prices of homes but new and resale to rise during the balance of this year and next year as well.

It is looking like the Edmonton real estate market is improving. As of this morning there were 2,188 single family homes for sale in Edmonton proper. More importantly there has been 557 sales in the previous 30 days. That gives us a lsting to sales ratio of 3.93:1 which is basically at the level we need for the market the stabilize and become neutral. With this kind of ratio we can expect prices valuations to stop falling and normalize.

I anticipate as we get more along into our spring marketplace that we might see this ratio drop and if we do expect valuations to start to rise again. So if you are thinking of buying to hesitate do it now, especially before the mortgage rule changes on March 18th.

After selling 2 homes in the last 7 days I am really starting to feel that the Edmonton Real Estate market is starting to pick up.

This could be do to the fact that many people are trying to buy before the March 18th deadline for the change in mortgage rules. But I also have to attribute it to a all the economic developement that is starting to happen in Edmonton now and scheduled for the year 2012.

The Edmonton rea estate market should be booming again and I see prices increasing again in the incoming 18 months as well as I expect interest rates to increase and we see economic recovery happening and we see the Bank of Canada trying to curb any inflationary pressures by raising interest rates.

This make now the best time to buy for the next 2 years before prices in Emdonton go up and before interest rates also go up.

While No-Frills mortgage products typically offer a lower – or more discounted – interest rate when compared with many other available products, the lower rate is really their only perk.

This type of product will only seem ideal for you if you have no plans to take advantage of benefits that will help you pay off your mortgage faster – such as pre-payment privileges including lump-sum payments.

Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their mortgage; and property investors who need a low fixed rate and are not concerned with making lump-sum payments.

No-Frills products also won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

It’s understandable why these products may seem appealing. After all, not everyone feels they have the extra cash to put down a huge lump-sum payment. And who needs a portable mortgage if they’re not planning on moving any time soon? But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage.

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick” close.

There are, however, other ways in which to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, and by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical 0.1% discount of a No-Frills product within approximately three years.

No-Frills products represent a great example of why interest rates are not the only important factor to consider when deciding whether to opt for a particular mortgage product. Much like buying a car, you get what you pay for. If you don’t want a car with air conditioning, a stereo, a cup holder, and so on, then you can get the cheapest car going… but you’ll likely regret it later.

As always, if you have questions about finding the right mortgage to suit your specific needs, I’m here to help!

Information provided by:
Chita Rattanarasy
www.EdmontonBestMortgageRates.com
Dominion Lending Centres – Optimum

Call her today for a free no-obligation mortgage pre-approval @ 780-932-2225