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The hidden costs of selling your property in Canada

The hidden costs of selling your property in Canada

 

Beware; there are the hidden costs of selling your property in Canada you might not know about. Are you been thinking of selling your property and maybe moving into retirement living you’ve been checking out? Selling your property can be a very profitable affair, especially if you have had that piece of property all your life. That means you may have bought it at time when property was not very expensive and could be enjoying the appreciation, which has occurred over the years. However, there are hidden costs of selling your property in Canada involved in selling your property and before you list your property for sale, you might want to check out these costs.

Hidden costs to sell your sell your property in Canada are:

 

  • Are you going to sell your property through a real estate agent or try selling it on your own? The fee is approximately 6% plus taxes.
  • How much do you estimate it will cost to prepare your property for sale?
  • Do you know what would it cost to pay off your mortgage including penalties, discharge and other charges?
  • Are there any repairs or upgrades you need to do that would help sell your property?
  • Are you going to hire a professional to stage your property?

 

Staging is changing the appearance of your property to make it more appealing to potential buyers—for example, renting furniture for a room.

 

Clutter, Grime, and Odors. Deal with it…
Living in our homes, we get used to things and we like them that way. All the family photos and bowling trophies may be family treasures but to a buyer trying to imagine themselves at home, too much information is a turn-off.

Other hidden costs of selling your property in Canada

Closing costs

  • Legal costs
  • Realtors fee plus taxes
  • Insurance cancellation
  • Adjustments (property taxes, utilities, condo fees, etc.)
  • Mortgage  penalties & discharge fees
  • Moving costs
  • Hiring a mover or renting a truck
  • Packing materials
  • Hotel costs, if required
  • Disposing of Junk

Mortgage Penaltyb1

The prepayment charge for a closed, fixed-rate mortgage is usually the greater of

  • three months' interest on the outstanding balance of your mortgage, or 
  • the interest rate differential (IRD): an amount based on the difference between two interest rates. The first is the interest rate for your existing mortgage term. The second is today's interest rate for a term that is similar in length to the time remaining on your existing term. For example, if you have three years left on a five-year term, your lender would use the interest rate it is currently offering for a three-year term to determine the second rate for comparison in the calculation. 

b2Mandatory Repairs

When you’re selling your property, especially if it’s an old one, chances are there are many things that need to be repaired or replaced. Perhaps that 1990s toilet needs to be revamped or the kitchen cabinets need to be changed. It’s easy to get carried away with repairs. Think about it, you’re finally getting around to all of those things that you were meaning to get done over the years. The list could include light switches, dimmers, painting, re-grouting, and while they sound small, it’s these little things that can easily turn into thousands of dollars, especially if you’re hiring an expert to do that for you.

What you need to do is to pay attention to the repairs that have a major visual impact and would affect the property value. For example, a new kitchen would excite buyers more than new room carpets.

At the end of the day, the more prepared you are, the smoother the process and the less expenses you will incur. It all comes down to clear thinking and a few calculations, to make sure the cost of selling isn’t eating too far into your well-earned capital.

 

Failing to Complete Disclosures. CAVEAT EMPTOR, BABY!
Being upfront about any issues with your home will save you time, money and face. You may not want to mention the time the firetrucks showed up or the time you flooded the basement.

When do you report a capital gain or loss?

Report the disposition of capital property in the calendar year (January to December) you sell, or are considered to have sold, the property.

Note

Regardless of whether or not the sale of a capital property results in a capital gain or loss, you have to file an income tax and benefit return to report the transaction (even if you do not have to pay tax). This rule also applies when you report the taxable part of any capital gains reserve you deducted in 2014.

  • A donation of securities to a registered charity or private foundation does not trigger a capital gain.

·         If you sell an asset for a capital gain but do not expect to receive the money right away, you may be able to claim a reserve or defer the capital gain until a later time.

Reporting the sale of your principal residence to Canada Revenue Agency (taxman)b3

When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. This is the case if you are eligible for the full income tax exemption (principal residence exemption) because the property was your principal residence for every year you owned it.

Starting with the 2016 tax year, generally due by late April 2017, you will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption.

Are you aware of hidden costs of selling your property in Canada? What other costs should you be aware of when looking to sell? Have you sold your property in the last 5 years? We buy houses for cash with fast closing.

Top 10 reasons to buy a home during winter & holidays in Canada

Top 10 reasons to buy a home during winter & holidays in Canada

 

Very few Canadians like to uproot their family and go through the stresses of home buying and moving during the winter & holidays, but for those who do not mind, the holiday season may provide home buying bargains for Canadian professional real estate investors.

Here are Top 10 reasons to buy a home during winter & winter & holidays in Canada, why?

 

Less Market Activity – Lots of family, school, and work activities, combined with the weather in many locations, lead to fewer real estate transactions over the winter & holidays. Since fewer people overall are looking to buy houses, you will have less competition for your preferred house – and this gives you leverage.a1

Winter & Holiday home sellers often have to adjust their price downward or make other concessions if they want to sell. Keep this in mind as you search for homes. Bargains may be available, and listed prices may be more open to negotiation.

Clearance Sale Canadian home builders end up with surplus properties as well as those properties with a new buyer befalls. They are happy  to find Canadian real estate investors to buy the property at a whole sale price. This is very common among condominiums in slow markets.

Circumstances Canadians sometimes have to sell their home but not by choice, but due to circumstances beyond their control. That is due to sickness, loss of job, transfer, death, divorce or drugs. Since there are not that many active buyers during the holiday and winter months, it is a perfect time for investors to scoop these types of deals without any competition.

Power Of Sale/Foreclosure Due to time and  legal obligations the lender have no patience but to sell these properties as soon as possible to recuperate and safeguard their investments. During holidays and winter times a lot of jobs intend to disappear and a lot of home owners start defaulting their mortgage payments. Remember always buy pre-power of sale or pre-foreclosure Canadian real estate.a2

Estate Sales are the sales with next of kin have inherited these properties by default due to the laws of the country there are a lot of financial obligations which include capital gains, taxes and outstanding bills. These properties need to be sold in urgency because most of the time they are empty and are not in good shape. These are perfect properties for Canadian real estate investors to fix and flip for instant profits.

Motivated panic sellers – People who are selling their homes over the winter & holidays often have great incentive to sell, such as upcoming job relocation. If a house has already been on the market for some time, that incentive is multiplied.

a3

You may be able to use this urgency to your advantage (assuming you are not in a similarly urgent need to buy). Negotiate fairly but firmly with sellers and you should be able to extract a lower price and/or other concessions like paying part of the closing costs.

Potential Tax Advantages – If you itemize your taxes, you can deduct any points you paid upon closing, as well as property taxes and mortgage interest. Whether it is to your advantage to buy before or after year’s end depends on factors such as how many other deductions you have this year and expect to have next year.

 

Better Interest Rates – Within the general trend of interest rates, there is often a cyclical trend of lower interest rates during the winter & holidays – not from the generosity of lenders but due to limited demand forcing greater competition among Canadiu 

There are plenty of factors that can obscure or swamp this cycle, but in general, you should see preferable interest rates around the winter & holidays compared to the times immediately before or after.

Faster Closings – Generally, all parties involved have incentive to complete transactions toward the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before the year closes, sellers want to move on to their new home and settle in for the winter & holidays – and just like the sellers, you want to settle in as well.

Since all parties are motivated and there are fewer transactions taking place during this time, it should be easier to put everything in place for a smooth and rapid closing.

These factors do not always apply. For example, if you are trying to buy a home in a winter ski resort area or similar high-demand winter destination, these dynamics may be reversed – except for the tax implications. However, for the majority of Americans, the winter & holidays represent an opportunity to buy a home under mostly favorable economic conditions.

The weather may still be frightful, but your opportunities to buy a home around the winter & holidays may be just as delightful. Enjoy the holiday season as you explore your options. Don’t forget to give Santa your new forwarding address!

We Buy Houses in Canada

We Buy Houses in Canada   

 

Professional real estate investors group (PREIG) Canada is helping fellow Canadians in need and we buy houses in Canada for cash with fast closing.We buy houses in Canada to provide instant cash, fast closing to avoid foreclosure, eviction and help fellow Canadians to downsize and move forward.We buy houses

We buy houses in Canada understand the urgency of time and money. We buy houses in Canada will make a written offer for you to review it with your real estate lawyer and get independent legal opinion.

We buy houses in Canada helping fellow Canadians in need now leads from the front when it comes to helping Canadians in and around the area to sell their homes really fast.

 With deep roots and insights in finance and Canadian real estate, we have helped innumerable Canadians to sell their homes without much of hassles whatsoever.

We buy houses in Canada and we are cash home buyers. The reason you want to sell your home for cash and fast is important to us to make sure that you are able to move forward. Together we can come together with win/win solution.

cash4yourhome

We buy house due to Canadian Home owners are facing one of following challenges;

 

Behind mortgage payments

Needs cash now

Bank/Lender refuses to renew mortgage

Demand letter by the bank, pay up or get sued

Avoid eviction orders by court

Missing mortgage payments

Unemployed

Laid off

Property requires renovation

Work orders by city inspectors

Avoid seizure of your property

Behind Taxes with Canada Revenue Agency

Foreclosures

Right to redeem (power of sale/foreclosures)

Non renewable of Mortgage

Fire damage properties

Power of sale

Sell Your House For Cash
Sell Your House For Cash

Tax Sale

Sheriff Sale

Court case

Eviction by Sheriff

Law suits

Expired MLS listings

Divorce

Bankruptcies

Homes in probate

Family problems

Sickness

Poor health

Pay off debts

Accidents

Downsize

Old age

Sellers whose employers transfer them

Owners who are evicting tenantsforeclosure

Vacant homes

Trashed or damaged homes

No-Commission

Fire damaged properties

Estate Sales

Death

Drugs

Grow Op houses

Meth labs

Murder

Stigmatized properties

Flood/wind damage properties

Seized properties

Auctions

 

All paper work approved in writing by the home owners Lawyer FIRST.

What is important is that you are treated fairly with respect and dignity and get out of the situation really fast.cashbuyers

With a considerable experience, expertise, knowledge, and vital industry exposure, Professional real estate investors group (PREIG) Canada is always successful in assisting Canadians to sell their properties without much of hassles.

By doing so, we have helped innumerable Canadians in need of money get quick cash. We buy any and almost every type of homes and properties. Therefore, Canadian property owners who must sell due to relocating or need fast cash owing to an urgent need, want to sell properties without involving in lengthy and cumbersome procedure.

We buy homes in Canada in any condition and irrespective of the location and condition. Despite the price range and condition of the property, we help Canadian property owners dispose of the property right away. Moreover, we offer no obligation offer to enable Canadian home owners to make the right decision for them.

Professional real estate investors group (PREIG) Canada is the best resource for those who want to know how to sell their house in Canada for quick cash and fast closing.

About Professional real estate investors group (PREIG) Canada

Professional real estate investors group (PREIG) Canada is known to provide a win-win situation to those who are in a dire need of money and want to sell their home fast.

cash4yourhome

 

10 Subjects to Include in Your Joint Venture Agreement

10 Subjects to Include in Your Joint Venture Agreement

 

Ten areas to consider including in your JV agreement include:1

1. Purpose of Joint Venture

Are you buying, fixing, and selling a property together? Are you buying, fixing, and renting a property together? Get really specific on the purpose of this joint venture. That way, both parties are clear and comfortable.

2. Purchaser of the Property

Who is purchasing the property? Sounds a bit obvious — but can be overlooked in some joint ventures. The purchaser of the property is taking on more risk, so this arrangement should be spelled out in the agreement.

3. Term of the Agreement

If you are buying, fixing, and selling a property, you need to put in the agreement how you handle if the property does not sell. You also need to spell out if both partners will be part of the decision-making process of reducing the house price. It is really helpful to include all contingencies and worse case scenarios.

As I shared, we are in the midst of finalizing a joint venture agreement for a fix and flip project with another company. We have specified in the agreement that our partner will determine correct pricing of the finished property and will be in charge of the appropriate timing of reducing the price if need be. Our joint venture partner knows the local market much better than we do, so why would we want to micro-manage these decisions? The key to having a successful joint venture is to be crystal clear on the value each partner is bringing to the table and for the partners to not get involved in areas that are not appropriate for them to get involved with.

4. General Definition Section

Some would say this is just legalese; however, it is helpful to define the key phrases and terms you are using in this agreement. Remember, not everyone defines these common terms the same way.

5. Obligations of the Joint Venture2

In my opinion, this is one of the most important aspects of the agreement. You have to spell out in the clearest terms what each partner is responsible for. This includes who will be responsible for obtaining the commercial loan and how much that commercial loan is for (if applicable). This also includes aspects such as:

  1. Financial: what equity each partner is responsible for
  2. Operations: who is running the day-to-day operations of the rehab and responsible for bookkeeping and record keeping
  3. Marketing/sales: who is responsible for marketing and selling the finished product

The key here is to spell out every single detail. Include everything. I have never heard partners complain about too much communication in a partnership.

6. Allocations

You might have covered this in another section, but make sure you include the percentage of profits each partner will receive after all liabilities and holding costs, etc. are taken care of. I have seen many joint ventures be 50/50, but sometimes they are 40/60 or 30/70. It completely depends on the value the partners are bringing to the table.

7. Termination

Remember, joint ventures are not meant to be long-term agreements. They are designed to be short-term with a very specific, defined purpose. There is a clear beginning and ending to all joint ventures. These types of details should be spelled out as well in the agreement.

8. Rights and Duties of Parties Included in Joint Venture

This is mostly legalese but helpful to include to protect all parties involved.

9. Payment of Expenses

You need to specify in this section who will be handling funds, who is in charge of the banking relationship (if there is one), who will be paying the contractors and service providers, etc. This should have been covered above in the responsibility section, but if you have not specified how much equity each partner will be putting in, this is another place to add this. Additionally, you should specify in which partner’s business checking account the funds will reside. Money allocation and disbursement is one of the most important areas to cover in these joint venture agreements!

10. Insurance

This is an extremely important section. Many times, joint ventures are not newly formed business entities. Therefore, you should be clear on how this project will be protected with insurance and which type of insurances are important to purchase and maintain during the project. In this section, you need to specify who is purchasing and maintaining the various insurances (worker’s compensation, builder’s risk insurance, property insurance, etc.). Again, I am NOT an insurance agent by any means; however, I know the importance of properly protecting the building and all the contractors that will be working in the building.

In summary, I don’t know many real estate investors that have not at some point entered into a joint venture relationship. Therefore, you want to set yourself up for success from the beginning. Even if you are entering the joint venture with a family member or a good friend, you MUST put an agreement in place so the roles, responsibilities, percentage of profit, and money allocations are specified and clear from the very beginning.

For those who have entered joint ventures, please share your experiences. Are there any other areas that I am missing that are essential to include in an agreement?

Best time to invest in Canadian real estate

Best time to invest in Canadian real estate

Canadian professional real estate investors learn during the apprenticeship some hardcore facts about Canadian real estate investments. Buying and selling requires some insight to be profitable. Since spring and summer months are notoriously the best time to sell real estate in Canada, fall and winter may be the ideal months to buy real estate.

1. Fewer buyers are in the market – less competition1

Competition for houses drops off in the fall in Canada, a time when most people consider it to be off-season in real estate. But there are still homes for sale – and in some cases, there’s just as much inventory as there was during the spring and summer. Fall means new inventory and repositioned old inventory that did not sell in the prime season.

This puts Canadian professional real estate investors at a great position to negotiate. Fall Canadian professional real estate investors should consider making aggressive offers, followed by more aggressive negotiation. Many panic sellers are motivated to sell before the holidays. If possible, Canadian professional real estate investors should let these sellers know that they can close before Thanksgiving or before the school winter break.

22. Greedy sellers can be tired and frustrated

Some greedy property sellers who put their homes on the market during the prime selling times of spring and summer might have been overconfident by listing their homes for more than buyers were willing to spend. After months of little or no action, these tired and frustrated property sellers are often ready to make a deal.

Canadian property owners who were unrealistic earlier in the year about price will now be more willing to reduce the price come fall. Because there are fewer buyers and because the property owners are now eager to sell, they are more inclined to take the lower offer than wait another six months for spring to come around.

3. Sellers become more serious3

Not all homes on the market in fall are summer leftovers. Some Canadian home owners need to sell in the fall because the timing is right. Maybe they were having a home built and it’s now ready. Maybe they need to move because of a job. The sellers with houses on the market in the fall tend to be serious. That means sellers could be more open to negotiating and accepting a reasonable offer.

44. Fall is a better time of year to buy Canadian real estate

Waiting until the fall (to buy) gives you an advantage when learning about a home and the neighborhood. You’ll be settled in your home and can take precautions – like setting up that new alarm system.

5. You’re the center of attention5

Because spring and summer are ideal times to buy a home, realtors are usually busier then. And that could mean you might not always get the attention you want. This is also true for other professionals you’re working with to buy a house. Service providers, such as mortgage lenders and real estate professionals, can often respond more quickly since the summertime crazy market has slowed down.

The same goes for movers. Because summer is peak moving season, Canadians often experience more delays and service issues, such as moving companies reaching capacity and running out of trucks to pick up shipments. The probability of experiencing a delay goes way down in the fall season.

6. You can take advantage of end-of-year sales to outfit your home

More than likely you will be making improvements to your new home after your purchase. Most likely you will need to buy items to maintain your home, and if appliances did not convey with your purchase, you will need to buy those as well.

Wouldn’t it be great to coordinate your home purchase with sales on items you’ll need? September is a great time for buying carpet and paint. October means lawn mowers go on sale, and appliances and cookware are cheaper in November. November is also a great time to take advantage of retailer holiday sales items, which seem to be abundant that time of year.

The best advice is to learn from fellow Canadian real estate experts with decades of experience and proven results.

Always learn from a Canadian real estate investment expert with proven results before investing in Canadian real estate.

We are sincerely devoted to helping you create wealth for life with spectacular results in Canadian real estate investments.

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Nov 25, 2016 Ontario Sheriff’s Sale of Lands – Ottawa

Nov 25, 2016 Ontario Sheriff's Sale of Lands – Ottawa

Ontario Sheriff's Sale of Lands – Toronto

Nov 25, 2016 Ontario Sheriff's Sale of Lands – 35 Murray St, Unit 214, Ottawa-Ontario Canada

Under and by virtue of a Writ of Seizure and Sale issued out of the Superior Court of Justice dated June 6, 2013, Sheriff’s file 13-1210 to me directed, against the real and personal property of Mireille lavoie Debtor, at the suit of The Bank of Nova Scotia, Creditor, I have seized and taken in execution all the right, title, interest and equity of redemption of Mireille Lavoie., debtor, in and to: Unit 9, Level 3, Carleton Condominium Plan No. 419; Firstly: LTS 3 & 4 and PT LT 2, N/S Murray St, PL 42482 PT 1 4R6069, Secondly: LT 5 and PT LT 6, N Murray St, PL 42482 PT 2 4R6069, as in Schedule ‘A’ of Declaration LT 551233; Ottawa (Pin: 15419-0035LT)

Unit 44, Level A, Carleton Condominium Plan No. 419; Firstly; LTS 3 & 4 and PT LT 2, N/S Murray ST6, PL 42482, PT 1 4R6069; Secondly: LT 5 and PT LT 6, N Murray St, PL 42482, PT 2 4R6069, as in schedule ‘A’ of declaration LT551233; Ottawa (PIN: 15419-0131 LT) Municipally Known as:

Continue reading Nov 25, 2016 Ontario Sheriff’s Sale of Lands – Ottawa

Tax sale properties Bracebridge – Ontario

Tax sale properties Bracebridge – Ontario

Nov 17, 2016 Tax sale properties Bracebridge – Ontario

Tax sale properties Bracebridge – Ontario

Municipal Act, 2001
Sale of Land by public tender
The Corporation of the Town of Bracebridge

Take notice that tenders are invited for the purchase of the lands described below and will be received until 3:00 p.m. local time on November 17, 2016, at the Town of Bracebridge Municipal Office, 1000 Taylor Court, Bracebridge Ontario.

The tenders will then be opened in public on the same day as soon as possible after 3:00 p.m. at the Town of Bracebridge Municipal Office, 1000 Taylor Court, Bracebridge.

Continue reading Tax sale properties Bracebridge – Ontario

Tax sale properties North Dundas – Ontario

Tax sale properties North Dundas – Ontario

Nov 17, 2016 Tax sale properties North Dundas – Ontario

Tax sale properties North Dundas – Ontario

Municipal Act, 2001
Sale of Land by public tender
The Corporation of the Township of North Dundas

Take notice that tenders are invited for the purchase of the lands described below and will be received until 3:00 p.m. local time on November 17, 2016, at the Township of North Dundas Municipal Office, 636 St. Lawrence Street, Winchester Ontario.

 

The tenders will then be opened in public on the same day as soon as possible after 3:00 p.m. at the Township of North Dundas Municipal Office, 636 St. Lawrence Street, Winchester.

Continue reading Tax sale properties North Dundas – Ontario

Tax sale properties Lakeshore – Ontario

Tax sale properties Lakeshore – Ontario

Nov 16, 2016 Tax sale properties Lakeshore – Ontario

Tax sale properties Lakeshore – Ontario

Municipal Act, 2001
Nov 16, 2016 Ontario tax sale properties Lakeshore
Sale of land by public tender
The Corporation of the Town of Lakeshore

Take notice that tenders are invited for the purchase of the land(s) described below and will be received until 3:00 p.m. local time on November 16, 2016, at 419 Notre Dame, Belle River, Ontario. The tenders will be opened in public on the same day at 3:05 p.m. local time at 419 Notre Dame, Council Chambers, Belle River, Ontario.

Continue reading Tax sale properties Lakeshore – Ontario

Tax sale properties South Glengarry – Ontario

Tax sale properties South Glengarry – Ontario

Nov 24, 2016 Tax sale properties South Glengarry – Ontario

Tax sale properties South Glengarry – Ontario

Municipal Act, 2001
Sale of land by public tender
The Corporation of the Township of South Glengarry

Take notice that tenders are invited for the purchase of the land(s) described below and will be received until 3:00 p.m. local time on November 24, 2016, at the Municipal Office, 6 Oak St., Lancaster Ontario.

The tenders will then be opened in public on the same day as soon as possible after 3:00 p.m. at the Municipal Office, 6 Oak St., Lancaster.

Continue reading Tax sale properties South Glengarry – Ontario