Connect with us

Real eState

Important Things To Consider Before Selling Your Real Estate – Business Review – Business Review

Published

 on


Real estate is always a good investment. It brings you money and the value of the real estate increases over time, generally at a rate higher than inflation. You can see your property’s value increase as you invest in it and maintain it well during its lifetime. With foresight and investments, the property will help provide financial security for your family. The value of the property you purchase will certainly go up over time, but what do you do if suddenly for some reason or another, you need to sell it?

Before you put your property on the real estate market and start looking for a buyer, there are certain things that you need to consider. If you are planning on selling your property, here are  certain aspects that you need to look into:

How Fast Do You Need To Sell It?

The first thing that you need to clarify is how fast do you need to sell your property. There can be times when you will not have a choice of the time frame, but most people who sell real estate can choose whether they need to get it done it quickly or if they take their time with it. If you need to sell a commercial property fast, you should know that there are direct buyers who can buy it for cash without having to spend any time promoting it. This will relieve you from the hassle of going through all the formalities that come with selling real estate. Once you sell your commercial property directly to one of these companies, you can be sure that the money will come within a couple of days so that you can reinvest it as soon as possible.

Renovating Or Not?

Once you have thought about the time frame within which you need to sell, your next step should be to think about renovations. If you are looking at selling your property as soon as possible, then it might not make sense to spend a lot of money on renovations. You can always go for minor or cosmetic changes that do not cost much and do not affect the property’s price by much either. However, if you can wait out a few months before selling, let’s say up to six months, then spending some money and investing in major renovation projects will help increase the value of your property immediately.

Once you have decided on the type of renovations, you need to think about their cost as well. It is not a good idea to borrow money for renovation purposes because once you sell the property, you will have no way of paying back the borrowed amount of interest charged on it. You should therefore avoid taking out any loans for this purpose unless necessary.

Check The Property Tax

It is not just you but most sellers of real estate tend to forget about the property tax when they go about selling their property. This is important because once you sell your property, the new owner will be responsible for paying up all taxes that are levied on it. Therefore, it makes sense for you to pay up all the taxes due on your property before putting it up for sale. If you do not want to pay them yourself, then at least make sure that the buyer pays them when he buys the property from you. Also,  ensure that the property tax receipts are regularly updated and in perfect working condition so that they can be shown to the new owner.

The Zoning Regulations

The zoning regulations can play a very important role in determining whether your property should be sold or not. The zoning law determines how the land around your property can be used for purposes such as building homes or shops or offices etc. You may find that though this could affect the sales value of your great, however, if you get the zoning regulations changed, then you might be able to increase the value of your property and make it more secure as well. For instance, if you have a big property in an urban area, you may find that it is not much use if you could only build homes on it. However, if the zoning laws were changed to allow for building offices or shops, then your property would increase its worth by many folds over.

How Much Is It Worth?

This is an important factor to consider before selling your real estate. This value will be determined by the current market trends, the number of potential buyers, and how much is it worth right now. Once you have conducted a proper valuation on your property, you can sell it after getting advice from an experienced broker who specializes in commercial real estate ask for a professional opinion on your property’s value. The reasons behind this are many, for instance, properties that are available for sale with brokers generally get more attention than those which are sold by individuals. Also, they would know what kind of offers to expect so that you do not miss out on certain opportunities because someone else might have already made a better offer than the one you received. They will let you know if any potential buyers in the market may be interested.

Is It The Right Time To Sell?

Sometimes even if your property has gone up in value over time, it may not always sell for more money than when you bought it because potential buyers might think that it is not the right time to buy. For instance, if you are trying to sell a house or office in an area where there will be new developments, then it might take some time before potential buyers start showing interest in your property because they would want to wait for all these other projects around them to be completed first. On the flip side of this argument, if you think that the market is saturated with commercial properties and people do not have much money at their disposal anymore, then now might be an excellent time to sell off real estate because even though its value has gone down over time, people may still buy it because nobody else is willing to invest in such risky propositions anymore.

Before selling real estate, it is very important to make sure that you go through all the factors mentioned above first. This way you will be able to decide if you will benefit from the current market conditions or not. If find that you can sell it at a price and conditions that are acceptable for everyone involved,  then you can proceed accordingly and start working on other goals in life without any complications.

Adblock test (Why?)



Source link

Continue Reading

Real eState

This Week’s Top Stories: Canada’s Immigrants Are Unhappy With Real Estate and Central Banks See Odds of A Correction Rising – Better Dwelling

Published

 on


[unable to retrieve full-text content]

This Week’s Top Stories: Canada’s Immigrants Are Unhappy With Real Estate and Central Banks See Odds of A Correction Rising  Better Dwelling



Source link

Continue Reading

Real eState

Investment properties are driving up Toronto real estate prices: report – NOW Toronto

Published

 on



Bank of Canada says buyers are making the housing market more vulnerable to a correction


Homeowners purchasing investment properties are driving up prices in Toronto real estate and making the housing market even more vulnerable to a correction, according to the Bank of Canada.

In a November 23 speech summing up a trend across Canada but especially felt in Toronto and Montreal, Bank of Canada’s deputy governor Paul Beaudry says investors are flocking to buying secondary or multiple homes with expectations for future price increases, which he says can become “self-fulfilling” in the short term but catastrophic later.

The damage from a drastic fall in house prices can “spread far beyond the investors” because so for many households have their wealth tied to low-mortgage rates and the value of their home.

“A key concern here is that financially stretched households have little breathing room to absorb any disruption to their income,” Beaudry says.

Beandry’s speech comes as more and more homeowners are witnessing massive real estate price gains, particularly over the past year, experiencing FOMO and jumping into the investment property game, seizing on every available listing and pre-construction condo opportunity up for grabs. They’re able to scoop up properties by leveraging the equity amassed on their homes from those very same price gains, which leaves first-time homebuyers in the lurch.

According to Teranet’s market insight report, 25 per cent of the people purchasing a home between January 2011 to August 2021 were multi-property owners, competing against roughly the same number of first-time home buyers.

A chart provided by the Bank of Canada shows the year-over-year growth in investors buying homes surged 100 per cent compared to just over 40 per cent among first-time home buyers. The growth between these demographics were roughly in line in the past, so the extremely wide gap in the past year is a jarring indication of the imbalance in the housing market.

According to Teranet, most multi-property owners were gen-Xers (32 per cent) and generational households with multiple buyers (26 per cent). Millennials only made up 22 per cent of that demographic. And the sales data indicates that most people multi-property real estate in owners in Toronto are flocking towards purchasing condos as investment units since they are the more affordable option.

Beaudry reminds that investment buyers expectations for price gains are predicated on the current situation, where supply is short. He says the expectations are “becoming extrapolative, which could create “a disconnect between actual home prices and their more fundamental levels.”

At this point, most buyers seeking investment properties owners are relying on future immigration to drive Toronto real estate prices further up from their current sky-high levels. Meanwhile they’re driving those prices up themselves.

Gold rush

“Buyers beware,” says Odeen Eccleston, broker at WE Realty. We’re discussing recent trends with Toronto real estate agents selling pre-construction condos as investment properties, after a recent sales pitch I encountered.

A realtor I spoke to, who did not want to identified in this story, has been heavily marketing new sales of pre-construction condo units at the edge of eastern edge of Scarborough. Two-bedroom condos were selling for approximately $700,000, which is roughly the current market rate, though not really in that relatively untapped area.

The realtor dismissed any concerns I had about not being able to secure a big enough mortgage that would cover that unit and my current home when it would be ready to close in four years. The realtor also vaguely promised being able to secure an adequate mortgage for me or an easy re-assign, which means I could simply sell the property to a new buyer in a tight window before closing, provided there’s interest.

“Better hurry up, lay down that deposit before the opportunity is gone,” was the vibe of our conversation and the mantra for the Toronto real estate market. “We could sort out the actual finances later.”

“It makes me extremely nervous,” says Eccleston about that attitude among realtors when it comes to handling transactions worth nearly a million dollars. “A lot of times people are overly confident.”

I personally decided to opt-out. Why deal with real estate fees and taxes, while stressing that this condo unit needs to gain value at the rate that condos have been gaining value over the past few years to make that investment worthwhile. I could just purchase stocks in Lowes or Home Depot instead. If real estate is doing well, then surely those businesses must. And that investment takes much less effort and has been growing at a faster rate than real estate.

Of course, some people don’t have the stomach for stocks. Eccleston notes that she doesn’t always have the stomach for these extrapolative real estate investments, warning that counting on major price gains in the condo market is still a risk.

“At the same time, I was saying that five years ago,” says Eccleston. “I was apprehensive then as well. All of those agents pressured their clients to buy something five years ago are winning big time.”

@justsayrad

Brand Voices

Adblock test (Why?)



Source link

Continue Reading

Real eState

Canada’s Real Estate Bubble Is Getting Even More Irrational: US Federal Reserve Data – Better Dwelling

Published

 on


[unable to retrieve full-text content]

Canada’s Real Estate Bubble Is Getting Even More Irrational: US Federal Reserve Data  Better Dwelling



Source link

Continue Reading

Trending