Real estate for beginners:
Real estate transaction is a process whereby rights in a unit of property are transferred. The unit of property is measured and can be described in square feet or meters. The transaction can often be quite complicated due to a large amount of money being exchanged, government regulations on property rights being transferred and the complexity of the procedure.
A buyer may engage with a real estate broker to represent him/her for finding a suitable property. After a transaction being finalized with a contract and is ratified by all the parties to the contract, a short interim period of not more than 30 days is allowed to the buyer to thoroughly inspect the property. The closing of the sale ends at the end of this period and it completes the transfer of ownership to the buyer.
Real Estate in Canada:
On 24th May 2017 the Bank of Canada had announced that it was keeping its trend on lending rate unchanged at 0.5%.Any increase in rate will be announced on 12th July 2017 accompanied by the Monetary Policy Report. This will update the Bank Economic Forecast.
In the Real estate market, home sales throughout Canada fell 1.7% in April 2017 month on month and 7.5% year on year. At the same time, the number of newly listed homes has jumped 10% month on month. Like a number of countries, Canada has built too many new homes. However overbuilding is not in Canada's hottest markets- Toronto and Vancouver regions, but it is primarily in Alberta and Saskatchewan, where demand for these new homes slumped after the Oil Price Collapse. If you're planning to sell your property in GTA then this is the right time before there is any depreciation in your equity.
Many investors are compelled to keep important regional disparities in mind. Recently the Rent Control rules that ended in 1991 were re-announced by Ontario Government. This can only protect Tenants from rent increments but majorly discourage developers from building rental units.
Avery, the author of The Wealthy Renter, stated Rent control is, at best, a short-term measure. Previously such controls had forced rental buildings to become run down, as the landlords had no incentive to reinvest in them. He said that the diminished quality of rentals may have added to a negative stigma around renting.
The big question is now that whether Canadian real estate market will finally crash or not in 2017.
Real estate includes large transactions and heavy carrying costs and owning of real property, thus it is not as prone to burst as other financial markets. However easy regulations and access to mortgage financing over the last few decades has promoted the borrowers to enter this market and increasing the pressure on demand. The burst would require a sudden fall in demand and an equally quick rise in interest rate, leading to a significant tightening of credit. All of which leads to a fall in sales activity. According to Canadian Real Estate Association (CREA) national sales will drop by 3.3% in 2017, year on year. In an Annual Report CREA states: Transactions in B.C and Ontario are anticipated to remain strong but fall short of this year's record levels.
CREA predicts home sales
In B.C to decline by 12.2%,
In Ontario to decline by 2.7%,
In Saskatchewan to decline by 1.2%,
In Nova Scotia to decline by 2.1%,
In PEI to decline by 2.2%,
In Newfoundland and Labrador to decline by 1.4%,
In Alberta to increase by 3.5%,
In Quebec to increase by 1.2%,
In Manitoba to increase by 0.8%,
In New Brunswick to increase by 1.6%.
•Spring is usually the busiest house selling season and none should be surprised as a spike in sales reaches almost 10% during this time.
•Given to the above situation, buying property to rent out would make sense only if you have a large down payment which covers all rent expenses.
•Title regulations would reduce the number of first-time buyers, particularly in expensive markets.
Hoping for any beneficial increase in market value in a recent period is pointless. It is suggested to list your home as early as possible if you are planning to sell in the coming year. Summer market usually attracts family homes as the buying parents want to settle down before the school starts. This is the right time to strike your deal, as later, the price hike has negligible chances. SaveMav with a consistently excellent service can help you get your right price in the right time. With a flattering testimonial and an excellent crew, SaveMax is your one spot destination for the steps you will have to take while selling your home.