The Government keeps changing up rules and on January 1, 2017 those of you in Ontario, will see 3 new rule changes – some good and some bad!
There is a clear distinction between shopping for a property as an investor and as a homeowner.
As an investment property, you may be looking at properties that need lots of work or may have smells that you would avoid as a potential homebuyer. Recently, an investor I met, said “the smell of poo is the smell of money”. While that is gross, it is also true! As an investor, the worst shape the property is in, the better the deal you will get. Remember the money is in the buy!
On the other hand as a homebuyer, in most cases you are looking for a turn-key property and one that you can call home for years to come.
It’s no news that the new mortgage rules have thrown everyone into a tizzy! Not only, are there new rules, but now there is new terminology and a new way of thinking we need to adopt, so I thought it would be a great primer to spell it out in this blog post.
Before November 30, 2016 we would assess a Purchase in terms of Conventional or High Ratio. Now we need to look at a Purchase in terms of Insurable or Un-Insurable. Note all refinances are considered Un-Insurable.
So how does this affect you?
When I started investing in real estate, I remember my coach saying to me “always start and end with your WHY. I didn’t know what my Why was when I started or why it even mattered, but as I gained more experience and started making passive income, I stopped to reflect on what my Why was and why it actually mattered.
Everyone has a different reason for getting into Real estate investing; for some they hate their job and want to pursue real estate investing to be able to quit their job; for others they love their job but just need a bit more month before the money runs out; and others just love real estate as a passion. However, no matter what the reason, they all start and end with their WHY!
As a mortgage broker, I am lucky to work with investors and help them start and/or build their portfolio’s. One of my investors’ recently shared his experience of selling one of his properties and how Home Staging made a difference for him in standing out amongst the competition!
As a past home stager, I was reminded how sometimes we overlook important aspects of a property or have our eyes on the wrong things, when looking at all the options in the marketplace.
Many real estate investors start out with a dream of owning many properties but ultimately, many things can sway the dream or the well-thought out plans, such as low inventory, high prices, low cash flow and the inability to qualify.
So you have money but can’t get the returns you want, or you cannot find a property within your budget, so how can you make that money work for you? There are many different options available.
Last week we were all taken aback when the Federal Government released the latest round of mortgage rules. It was not just one new rule but four new rules and it could certainly impact Real Estate Investors to name just segment.
By now we as professionals have all had time to process the changes, blog about it and even bitch about it! We need to take a step back, put things into perspective and focus our efforts on the consumers, who are our clients and potential clients.
As a mortgage broker, I focus on investors and many of the investors I work with, focus their efforts on pre-construction and rent to own to name just two methods. In light of the new mortgage rules, I wanted to discuss how they might impact real estate investors investing in these two particular areas of pre-construction and rent to own.
Booya and the Government changes the mortgage rules again!
This past week the Trudeau Government took us all by surprise by announcing new mortgage qualification rules. The mortgage industry and the media have gone wild with speculation and concern about the future of our industry, but what does this mean for you and how do you navigate these changes going forward?
Currently in place, the Government has required homeowners with less than 20% down to qualify at the BOC rate of 4.64% for any term less than a 5-year fixed rate. Effective October 17, 2016, this requirement will apply to all insured mortgages, including fixed-rate mortgages with terms of five years or more.
Recently I was approached to finance a commercial building in Hamilton, Ontario.
The property was a vacant and former rooming house and the clients wanted to transform it into a retirement home. The clients were a retired nurse and two personal support workers, all of whom had experience working with seniors, however they did not have experience operating a retirement home.