Joe Romeo – Page 3 – Romeo Circle – ReMax Twin City Realty Inc. Brokerage

28 Jul

Are You Ready To Be a Landlord?

So you have thought about it and have decided the way to make money is to purchase a property and become a landlord! Sounds like an easy way to make a passive income? Before becoming a Landlord there are a few points to consider. Do you have the time available? Duties of a Landlord take up a lot of time and effort. Even if you decide to appoint a management agency to manage most of it for you, there will always be requests for repairs, lease agreements etc. If you decide not to pay the management fees (which can be as much as 10%) of the rent then you must have even more time available. Being a Landlord should be treated like running a business. It needs to be taken seriously. Evaluate your Financial Resources The idea of someone else helping to pay off your mortgage is appealing. However you must look into your finances carefully before deciding to buy a property with the sole aspect to rent out as an investment. Take into account that in terms of Canadian Law the banks will require a 20 % down payment to qualify for a loan. This is where small rental properties between 1 and 4 units are being purchased for financial gain and not your primary property. Make sure you are familiar with the tax laws in Canada and that you will declare the income from the rental. In addition you should be aware of which items you can get a tax benefit from when you are a landlord. It is vitally important that you put aside at least 2 % of the purchase price for any additional costs that may arise. The cash flow for your “rent” business must be in a positive cash flow from day one. Know your local regulations Research and be aware of local regulations pertaining to a landlord’s responsibility. Each province in Canada has their own regulations regarding rentals. For example in Ontario you can’t collect a security deposit but in most other areas you can collect deposits for security and rental. Tenants This can be the most trying part of being a landlord. It is a good idea to research the area you intend to rent out in. An area that has little rental stock is advantageous as you will have a large pool of tenants to choose from. Make sure to get references and if possible arrange a credit check. Exit Strategy This is one of the most important things to consider when deciding to rent out a property or even your basement. Care and thought must be given to your rental goals. Is it for a quick flip on the market after upgrading the property or do you want to hold onto the property and sell close to retirement providing a nest egg? Finally if you are prepared to put in the time, thought and effort into renting out your property then you will reap all the positive benefits of becoming a Landlord. ...

18:33 / All Things Real Estate / Joe Romeo

01 Jun

5 Questions you should ask your Mortgage Lender Before Signing

Buying real estate can be a very exciting time, so many things to think about and big decisions to be made. Be sure not to rush into a purchase, be prepared, get pre-approved and ask questions before signing. Here are 5 questions you should ask your Mortgage Lender. How the penalties are calculated if I break my mortgage early? Specifically, ask what rate they use to calculate the “interest rate differential”. Typically, if the lender has “posted rates” they use these to calculate the penalty. If this is the case, the penalty can be 3, 4 or even 5 times higher than a mortgage lender that does not have posted rates and uses them in their early payout penalty calculation. This one question can save you thousands of dollars. Is this a “collateral” mortgage? Some lenders have recently started putting all of their mortgages into what is called a “collateral” charge. In the right situation, given significant equity in the home, this product can be very useful and advantageous. The disadvantage to this product however, is that you cannot “switch” it to another lender at maturity. You have to actually discharge this type of mortgage and re-register a new one with a new lender which will cost on average $1000 for legal fees and appraisal costs. Beware of lenders who do this, especially if your mortgage is high ratio because it is only useful if you have more than 20% equity. Can I “blend and extend” my mortgage if I buy another house? Most variable rate mortgages cannot be “blended” however, typically the penalty to break a variable is 3 months interest. Some lenders have changed their policies (very quietly) – instead of allowing you to add new money to a mortgage in the event of a new purchase, they require you to pay the full penalty. Some clients have been caught off guard by sneaky lenders who don’t tell them this until only a few days before close, at which time it’s too late to switch lenders. What happens to my life insurance if I switch lenders at the end of my term? This is a very commonly overlooked detail by those who take the insurance offered by their bank or lender. The challenge is that if you want to “switch” your mortgage to another lender at the end of your term, you have to re-apply for insurance. The downside to this is that you’ll be five years older, and if you have developed any health issues, you may not qualify for the insurance at all. Getting insurance that mortgage brokers offer stays in place for the whole time you have your mortgage, no matter who your mortgage lender is. What happens at the end of the term (typically five years)? Will they offer you the best rate they offer their new clients, or will you have to negotiate for best rates at that time. Most banks know that clients likely won’t make the effort to negotiate the best rates. Working with an independent specialist will provide...

05 May

K-W Housing Market -this is the time to Buy

Over the last ten years the housing market in Canada has experienced a boom. This has been primarily due to very low interest rates and easier access to mortgage loans. These factors allowed many new buyers to enter the market. In particular, the Waterloo Region — Waterloo, Kitchener and Cambridge — are expected to have rising prices and the market is to continue to outstrip demand. The local market has increased over the last 18 months by as much as 40%. There is an ongoing shortage of residential properties. With average homes expected to reach $600,000 in nearby Hamilton–Burlington, the slightly more affordable Waterloo Region area is going to attract even more buyers than is currently the case. With its transit infrastructure, an excellent schooling system and growing tech sector (It is becoming known as the Silicon Valley of Canada) is attracting interest. The average house prices in this area are in the region of $400,000. It has also become difficult to meet the mortgage qualification requirements and this combined with the slight rise in lending rates will make it difficult for buyers to purchase expensive properties. This again is expected to send more buyers towards K-W as a more affordable way to gain a foot in the housing market. It is defiantly a seller’s market in the tri cities region. Local Buyers are frustrated with multiple offers being made on properties and the price being driven up by’’ outsiders” entering the area. Of course it is better to try and get into this market and if you have to consider downgrading your immediate needs by say considering a smaller house then do so, assuring a worthy financial investment for the future. It is perhaps worthwhile researching and considering the condominium market in the K-W area. This Condo market has not yet reached the same price level as the single home units. It is an affordable way to get into the property market. It may not be exactly the lifestyle you are looking for but at least you will own a property in this expanding area. History has shown that once the single unit property market becomes sated then the value of the Condo market dramatically increases. This may be the way of future growth in this area. There is still stock available in the market upwards of $800,000 but this is now also beginning to show offers higher than the asking price of up to 2%. If you can at all stretch your funds available this is worth considering. The middle range pricing market is fast catching up to this upper range” and very soon the upper market will also begin to feel the knock-on effect with prices and stock expected to rise as well. Therefore, if you are looking for a good investment in the estate market look no further than the Cambridge, Waterloo and Kitchener areas and expect your purchase to increase in value quickly as demand grows in this area....

16:05 / All Things Real Estate / Buyers Area / Joe Romeo

20 Apr

Is Your Home Ready For This Market?

Spring has sprung! If you are looking to sell your home this spring, now is the time to start preparing! Do your research! Get in touch with a knowledgeable real estate professional. They will be able to share important knowledge, such as how much money properties similar to yours sold for in your area. This will help you decide on an appropriate asking price. They will also be able to tell you how quickly you’re likely to find a buyer. They will also advise on how quickly you are likely to find a new home to buy for yourself. If you sell your home in a market where there is low inventory (what the Waterloo Region is going through now) you may want to buy first to secure your next move. Declutter! Remember, you will be showing your home to prospective buyers. They need to be able to see themselves living their ideal life in your home. Not necessarily see how you live yours. All of those magazines, family photos, and dog toys you have lying around the house. Put them away. Buyers want neat and tidy, they don’t want to see pictures from your high school graduation. Take show homes, for example, they are always clutter-free. Home improvements. So, doing a complete overhaul of your home might be a little excessive if you’re looking to sell up. But there are always small adjustments that can be made to make your home look more appealing to buyers. And even up your asking price a little. Not sure where to get started, this is where your real estate professional can come in handy. An experienced realtor can help you put your to do list together. Sometimes just small changes, like a fresh lick of paint over the front door, and sparkly new grouting in the shower can make the world of difference to how your home looks. Curb appeal is essential! Get packing. I know. Packing sucks. And it sounds a little premature to pack before you’ve even put your home on the market. But you probably have cupboards and cupboards of stuff you don’t use on a daily basis that can be sorted through and organized. It will make the job seem much less intimidating when the time comes to actually move. And it will help with the clutter issue, too. Pick the right real estate agent. Check out those that have experience in selling properties similar to yours and are well known in the area. Feel free to conduct interviews, remember you’re the one hiring them. The right agent can make a huge difference to the speed and overall profit of your sale - so choose wisely. Don’t wait until the spring market is in full bloom. Start getting yourself together now and you’ll be quick off the mark come selling time....

16:01 / All Things Real Estate / Sellers Area / Joe Romeo

30 Mar

How To Buy In a Sellers Market

As we are seeing in the Waterloo Region, with the demand for property far outweighing the supply, it can be difficult and exasperating at times, to be a buyer in a sellers market. Here are some things to consider when entering this market Know the market. Visit a few open houses in the area and check out their asking prices. See what their square footage and features are in relation to your property. It is good to bring on a realtor who knows a lot about your area. Some homes in your area could be underpriced! Plan. So, you’ve found your dream property. But you are certain theres going to be competition to get it. Don’t offer asking price! Increase your offer. In a bidding war, more often than not your competitors come in offering hundreds / thousands more. You can also present your offer as a deal that will go through quickly. You can pre-plan by getting any inspections out of the way. Get your financing approved now. These two things will reduce the conditions of your offer and give a shorter date of completion. Often sellers want to sell up as quickly as possible, so even if your bid wasn’t the highest, it may still be accepted if it seems like it will go through quicker than the rest. Move fast. As soon as you hear about a new property on the market, go and check it out. Within 24 hours if possible. And ask for all of the information you can think of up front. This will make you prepared for the bidding war right from the off. In a seller's market, there’s no time to sit back and mull things over. If you want to buy, you need to make it your priority. Multiple offers. Don’t make the mistake of assuming you don’t have a chance just because a property has multiple offers. Research has found that the majority of offers are at or below the asking price. Work with a pro. I know you can do it alone. But just because you can do something yourself, it doesn’t mean you should. Realtors have the inside scoop on the industry. They are privy to information that you, as a buyer, are not. And they are vastly experienced in all issues surrounding real estate. The seller will have an estate agent on their side fighting for them. It only makes sense to retaliate with an expert of your own. Don’t give up. So, the market isn’t on your side right now. That doesn’t mean all hope is lost. It just means you have to work a little harder to get what you want. You will get there in the end, as long as you just keep going. Get in touch today for more expert advice on buying a property in a seller’s market....

19:01 / All Things Real Estate / Buyers Area / Joe Romeo

23 Mar

Why Buy a Home in Cambridge?

The City of Cambridge was formed January 1, 1973, only 44 years ago. Today Cambridge is uniquely made up of 4 former cities; Galt, Preston, Hespeler and Blair. In recognition of the past Cambridge maintains three downtown cores. With rich architectural heritage and a modern flare Cambridge is a desirable city for many. The three downtown cores are active and growing. Cambridge is a great home for all lifestyles; young professionals, families with or without children, and empty nesters (just to name a few). This central city is just 40 minutes west of Toronto, 60 minutes east of London, 40 minutes west of Hamilton and 30 minutes south of Waterloo. Cambridge is a great location for the commuter family. Go anywhere you need to go and come home to all the features Cambridge has to offer; schools, parks and trails, shopping, restaurants, and so much more From trendy downtown condos to large country style homes and everything in between; we are certain you will find your fit in Cambridge. With all it has to offer it is not a surprise that Cambridge is the second largest community within the Waterloo Region....

13:41 / All Things Real Estate / Buyers Area / Joe Romeo

16 Mar

Do you want to Increase your Homes worth?

Can I increase my homes worth in a Sellers Market? There are many things that we can do as home owners to bring up the value of our home in all types of markets. Often we put it aside because we are too busy or just don’t want to put out the extra cost right now. Planing and preparing your home for sale can be very beneficial, don't leave yourself wishing you did. Below we have listed some ideas to help you. Add Fresh Paint: Go out to the store and buy a $25 gallon of paint. Fresh paint in a home is going to brighten up the area and have a more cleanly appearance. If you are especially considering selling we would definitely recommend thinking of the colors you will be applying to the walls before purchasing. Many people have different opinions how to decorate their home and what color scheme to use. This is why we would recommend choosing a neutral color for your new fresh look. Planting Trees and Shrubs: The very first thing someone notices about your home whether it be walking by or walking up to your entrance is how the outside appearance looks. People look for a nice “curb appeal”. This is why we are recommending planting some trees and shrubs around the property. If you wish to take a cheaper route you could purchase some soil/mulch to add into the gardens you already have to liven the look. Remember even the little things like cutting your grass regularly through out the summer will help your overall curb appeal. Lighting: With summer right around the corner don’t be afraid to open your windows and let the natural light shine though your home. There is nothing nicer then being able to walk into a room and not have to flick on a light because its already so bright! Don’t have those big windows in your home to provide the natural light? That’s OK! How about adding some fun lamps to bring the needed light into the rooms in your home. If you’re not looking into dealing with an electrician and don’t like the lamps idea, you can always reach out to Pinterest for a lot of great DIY ideas....

15:32 / All Things Real Estate / Sellers Area / Joe Romeo

01 Mar

Location, Location, Location!

Finding the right neighbourhood We always hear the term; Location, Location, Location, however do you know what this means to you? When looking for a new place to call home, you have to remember that it is not just the house you are moving into but also the neighbourhood, and you want to make sure it is the right fit for you and your family. Here are some things to consider when choosing the location of your new home; What do you want to be surrounded by? It is important to decide what type of setting you feel most comfortable in. For example if having land, privacy and few neighbours is a must then you definitely want to focus your attention away from cities and highly populated areas and perhaps start looking down those country roads just on the outskirts of town. However if you prefer being close to amenities, schools and neighbours then definitely focus your attention on subdivisions and urban areas. Distance to work, family and friends Another helpful tip is to consider the length of time it will take to get to and from work or school. Nobody wants to be stuck in rush hour traffic everyday. Perhaps before making any decisions, time your drive to and from and decide if it is something you are willing to do for the next couple of years. You may also want to think about the distance in between yourself and family/friends. For many people being close to family is a must, however that is not the case for everyone, so you will need to decide if that is a key factor or not. What is in the area? Always ask your realtor about the area you are considering to call home. You will want to consider the distance to amenities and the demographics of the area, especially if you have children, it may be nice to be located in a neighbourhood with other families and parks nearby. It is always a good idea to explore the area and see what is around before making an important decision. Any criminal activity? Whether you have children or it is just you moving in, do a little research on the area to ensure that you are not moving into the “sketchy” or “questionable” area of town. You want to make sure that where you will be residing is safe. Again this is something your realtor should be able to disclose when searching for the perfect location...

19:49 / All Things Real Estate / Joe Romeo

22 Feb

Picking a Realtor

When deciding to put your home on the market, it is important to choose a realtor that you feel will provide you with the best possible service. You want to ensure your realtor is qualified, knowledgeable and trustworthy. These guidelines below will help you conduct an interview for realtors that will leave you with all the necessary information to make the perfect choice. 1) Background and Experience Don’t be afraid to ask questions about their backgrounds; where they grew up, their interests, why they decided to become a realtor etc. This will help to build a personal connection with your realtor. Ask questions about their experience; How long have they been a realtor Where are their strengths ( residential, commercial, first time buyers, investment properties) What services they provide 2) Knowledge of the area You want to make sure your realtor is knowledgeable of the area for many reasons when listing your home and/or finding you a home; Knows average sale prices of homes in the area Knows the average time a home is on the market Knows all the nearby schools and amenities, in order to properly market your home or find you a new one 3) Testimonials and Packages Don’t be afraid to ask if your realtor has testimonials from past clients. This is a great way to receive feedback about the performance of that realtor. You can also ask your realtor to provide you with a sellers or buyers package. This package should be something for you to keep that outlines your realtors’ background information, experience, statistics of the brokerage and/or the realtor, mission statements, where your home is marketed and what services that specific realtor is willing to provide. 4) Review of Information Always ensure your realtor is willing to review and explain all paperwork and formalities with you. You should never agree to, or sign anything without knowing exactly what it entails. 5) Ask Questions! Make sure you ask any and all questions that you feel your realtor should be able to answer. Don’t let you interview end with any questions unanswered. A good realtor should be able to make you feel comfortable and certain about your decision! ...

20:50 / All Things Real Estate / Joe Romeo