Time to Make Your Move: Unlocking the Potential of Today’s Real Estate Market

by Jeff Griffith

Making Your Move!

So, you’ve been eyeing the housing market, contemplating the idea of selling, and maybe even daydreaming about that next perfect home. Well, guess what? Now might be the ideal moment to turn those dreams into reality!

Why Now? Prices are Down!

First things first, the real estate market is in your favor! And I’m not just talking to the first-time buyers (although, hey, it’s a fantastic time for you too – reach out anytime!). This message is for all of you contemplating selling but holding out for those prices to move upward.

Maximize Your Profits with a Twist!

Now, let’s talk strategy. Most sellers want to get top dollar for their homes, and that’s a smart move. But here’s the twist: Waiting for prices to rise might not be the golden ticket you think it is. If the market takes off, the house you’re eyeing will also be on the rise.

Lower prices also mean more potential buyers, translating to fewer days on the market and less disruption from showings. It’s a win-win!

Thinking of Selling? Consider This:

Imagine the style of house and neighborhood you’ve got your eye on. Odds are those homes are priced higher than your current one. Let’s say you’re eyeing a $1,000,000 home, and your current place is valued at $750,000.

Now, if you wait for a 5% increase in your home’s value, you’re looking at an extra $37,500 in value for your home. Sounds sweet, right? But hold on. The market forces that increased your current home’s value also impacted the dream home’s value – that $1,000,000 home is now $1,050,000.

Let’s Crunch some Numbers:

Here’s a snapshot of what happens with a $1,050,000 purchase versus a $1,000,000 purchase:

Purchase Price	$1,050,000	$1,000,000
Interest Rate at Time of Writing	5.64%	5.64%
Down Payment (20%)	$210,000	$200,000
Monthly Mortgage Payment	$5,196	$4,949
Remaining Mortgage at Renewal Time	$750,728	$714,979

Money in Your Pocket Every Year:

Across the board, that lower purchase keeps giving back. Your lower purchase is an investment that pays for itself with lower monthly mortgage payments and interest savings.

The Long-Term Gain:

Here is a nugget to ponder. Fast forward 20 years, assuming an average interest rate of 4% to calculate what that extra $50,000 really cost. Now, there are a number of variables that could impact the final number, but on a straight line $50,000 over 20 years at 4%, the interest payments would be approximately $47,000+. The cost of waiting for your old house to increase in value had quite the long term impact. A reminder that interest rates right now are hovering around 5.64% on a fixed rate 5 year, I calculated the average rate on the $50,000 at 4%. The cost could easily be higher.

So if it is me looking back, I would be asking why I gave the bank an extra $47,000 and the previous homeowners an extra $50,000 when that money could be working for me in my investment portfolio, or to pay for trips, cars, or other splurges for me and my family.

Don’t Wait for Perfect, Sell at the Best Time to Buy!

So, what are you waiting for? Don’t let the perfect time pass you by. Sell when it’s the best time to buy. Your dream home and the deal of a lifetime might just be waiting for you! Its time to make your move.

Ready to Make Your Move? Let’s Chat! Contact me through my website at JeffGriffith.C21.CA, through email at jeff.griffith@century21.ca, or on instagram, facebook and linkedin at jeffgriffithrealestate

Jeff's Jots • 12/28/2023

Your Guide to Getting Started as a Pre-Construction Investor

by Jeff Griffith

Pioneering Success: Your Guide to Buying Pre-Construction Properties in Ontario

Welcome to the world of real estate investing in Ontario – a landscape brimming with opportunities for returns. One that stands out for it’s potential returns is pre-construction property investment. Not sure where to start? Keep reading and then contact Jeff Griffith Real Estate at https://jeffgriffith.c21.ca or Jeff.Griffith@century21.ca for guidance.

Understanding the Pre-Construction Advantage:

Pre-Construction Investment is when you purchase a property before it’s built, offering potential for significant appreciation.
Benefit of an extended down payment structure plus early investor benefits add value.
Ontario’s sustained growth and urban development make pre-construction investments attractive.

Conduct Thorough Research on Developer

The success of your investment is closely tied to the reputation and track record of the developer.
Research factors like experience, completed projects, and financial stability are important factors.
Developers with a proven history of delivering high-quality projects on time could provide you with a sense of security.

Choose the Right Location:

Location is always a critical factor in real estate, select projects in areas poised for growth.
Consider emerging neighborhoods or regions with planned infrastructure improvements.
Proximity to public transportation, schools, and amenities enhances long term value.
Explore opportunities with eco-friendly builders respecting Ontario’s green spaces.

Review Project Plans and Features:

Thoroughly review project plans, layout, finishes, and amenities.
Pay attention to the fine print, including potential additional costs, maintenance fees, and completion timelines.
Builder contracts differ from the standard Ontario Real Estate Agreement for Purchase and Sale. Builders do not have a standard contract across all Builders.
Work with both a real estate agent and lawyer to navigate this critical part of the process.

Secure Financing and Understand Payment Schedules:

Pre-construction properties provide phased payment schedules.
Understand payment structure, including down payments, interim payments, and closing costs.
Negotiate terms, as they vary from builder to builder.
Buyers have a 10-day cooling off period in which they cancel the contract if desired.

Stay Informed about Market Trends:

Dynamic real estate market; stay informed about trends.
Monitor market conditions and assess their impact on your investment.
Work with a Real Estate agent to understand the current market, trends and other opportunities.

Be Patient and Plan for the Long Term:

Patience is crucial; construction timelines may extend, and delays can occur.
Embrace a long-term perspective, understanding that full benefits may take time.
A well-timed and researched pre-construction investment can be a cornerstone of success.
Today’s investment could put you one step closer to your retirement goals, or helping your child with their step in to a new home.

Immense Potential:

Ontario has a housing need, making pre-construction investments in the future a necessary and potentially a financially successful endeavor.

For more contact Jeff Griffith at https://JeffGriffith.C21.Ca or Jeff.Griffith@century21.ca for expert guidance in your real estate journey.

Market Thoughts • 12/05/2023

Navigating Homeownership: 5 Programs That Can Help

by Jeff Griffith

Navigating Homeownership: 5 Programs That Can Help

Within the changing dynamics of the Canadian real estate market, potential homebuyers encounter a distinctive opportunity. Lower list prices, coupled with the prevailing state of the bond market, have led to a scenario where homebuyers are now benefiting from reduced 5-year fixed rates. This presents an opportune moment for individuals contemplating homeownership. Remember you date the rate, you’re married to the sale price.

In conjunction with the stabilization of interest rates, various government initiatives which may alleviate the financial challenges associated with buying a home. The following section delves into five home-buying incentives and programs in Canada designed to transform the aspiration of homeownership into a tangible reality.

Click the link to be directed to the remainder of the article: Jeff’s Jots 5 Programs That Can Help

First Time Home Buyer Incentive:

This federal program supports first-time homebuyers by offering a shared equity mortgage. Eligible individuals can receive 5% or 10% of the home’s purchase price as a down payment, reducing mortgage costs. https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive

Home Buyers Plan:

The Home Buyers Plan (HBP) allows individuals to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) for a down payment, providing a tax-free source of funds. Talk to your investment advisor for more details.

Tax-Free Savings Account (TFSA):

Utilizing a Tax-Free Savings Account (TFSA) proves advantageous for prospective homebuyers seeking an alternative source of funds. This financial strategy involves reallocating investment capital from one market to another, with the notable advantage of enhancing current living conditions through homeownership. Talk to your investment advisor for more details.

GST/HST New Housing Rebate:

The GST/HST New Housing Rebate is designed to ease the tax burden on new home purchases. Eligible buyers can receive a rebate on a portion of the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) paid on their newly constructed or substantially renovated home.

Canada Greener Homes:

Recognizing the importance of energy-efficient housing, the Canada Greener Homes initiative offers grants of up to $5,000 to homeowners who make environmentally friendly upgrades. This program not only supports sustainable living but also enhances the overall value of the property.https://natural-resources.canada.ca/energy-efficiency/homes/canada-greener-homes-initiative/canada-greener-homes-grant/canada-greener-homes-grant/23441

Additional Programs of Interest:

First Time Home Buyer Land Transfer Refund:
Facilitates financial relief for first-time homebuyers by offering a refund on the land transfer tax, reducing the upfront costs associated with purchasing a home and making homeownership more accessible. https://www.ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers
The Canada Mortgage and Housing Corporation (CMHC) serves as a key resource for new home buyers by facilitating access to affordable housing options, providing mortgage loan insurance, and offering valuable information and tools to support informed decision-making in the home-buying process. Visit their website for more details https://www.cmhc-schl.gc.ca/nhs

It is important to note that though these programs are available some individuals may not be eligible for the program; government programs are subject to change; bond markets, interest rates and real estate markets do fluctuate. Talk to your lender and your financial advisor before entering any of these programs.

For more go to https://jeffgriffith.c21.ca