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How to Identify Your Needs When Buying Your First Property Buying your first property is an exciting milestone, but it can also feel overwhelming. With so many factors to consider, it can be hard to know where to start. Understanding your real needs is essential to making an informed decision and avoiding unpleasant surprises after the purchase. This article will guide you through the key questions to ask yourself to identify your priorities and make your first real estate purchase a success.

1. Assess Your Financial Situation

Before thinking about the type of property you want, it’s crucial to have a clear understanding of your financial situation.

Overall Budget: Determine how much you can invest in purchasing your home. This includes not only the purchase price but also notary fees, taxes (such as the welcome tax in Quebec), inspection fees, and moving costs.
Borrowing Capacity: Schedule a meeting with a financial advisor or mortgage broker to get pre-qualified. This will give you an idea of how much you can borrow and prevent you from viewing properties beyond your means.
Down Payment: Remember that for a first home, the minimum required is 5% of the purchase price, but a higher amount can reduce your monthly mortgage payments.
Monthly Expenses: Consider recurring costs such as municipal and school taxes, condo fees (if applicable), insurance, and utilities.

2. Define Your Essential Needs

Once your budget is set, it’s time to think about what you're looking for in your future home. Make a list of your must-haves versus your nice-to-haves.

Type of Property: Single-family home, condo, duplex, triplex? Each option has its advantages and drawbacks. For example, a condo requires less maintenance, while a single-family home offers more privacy.
Number of Bedrooms and Bathrooms: Consider both your immediate needs and future plans. Do you plan to grow your family? Do you need a home office?
Outdoor Space: Do you need a yard, balcony, or garden? Gardening enthusiasts or families with active children will appreciate a private outdoor space.
Parking: Is parking a necessity? In cities like Montreal or Quebec City, private parking can be a luxury but also a necessity depending on your lifestyle.

3. Choose the Right Location

Location is often the deciding factor in a property purchase. It influences not only your quality of life but also the resale value of your home.

Proximity to Services: Schools, daycare centers, grocery stores, hospitals, public transportation – make a list of the services that are essential to you.
Commute Time: How much time are you willing to spend commuting daily? If you work in Montreal, for example, would you be comfortable living in a suburb like Laval or Longueuil?
Neighborhood: Every neighborhood has its own vibe. Do you prefer a quiet residential area or a lively urban district? Visit different neighborhoods at various times of the day to get a better feel for them.
Resale Potential: Even if you’re not thinking about selling right away, it’s wise to consider the long-term value of your property.

4. Anticipate Your Future Needs

Your needs today may not be the same in five or ten years. Try to anticipate changes that could impact your long-term satisfaction.

Family Growth: Do you plan to have children? Welcome aging parents?
Remote Work: With the rise of remote work, do you need a dedicated home office?
Renovations: Are you open to buying a property that needs renovations, or do you prefer a move-in-ready home?

5. Visit Multiple Properties to Refine Your Criteria

It’s rare to find the perfect home on your first visit. Take the time to visit different properties to compare what you really like and what is non-negotiable.

Take Notes: After each visit, write down the positives and negatives of the property to avoid mixing them up.
Compare Prices: Analyze similar properties in the same neighborhood to ensure the asking price is fair.
Pay Attention to Details: Check the overall condition of the house, insulation, plumbing, electrical systems, etc. Don’t hesitate to hire a home inspector to avoid unpleasant surprises.

6. Work with a Real Estate Broker

Navigating the real estate market, especially for a first-time buyer, can be complex. A real estate broker can guide you through every step, from property searches to signing at the notary’s office.

Personalized Advice: A broker knows the local market and can help you find properties that meet your specific criteria.
Negotiation: They can assist in negotiating the price and conditions to ensure you get the best possible deal.
Security: They ensure all legal procedures are followed, minimizing the risk of costly mistakes.

Conclusion

Buying your first property is an exciting project, but it requires good preparation. By clearly defining your needs, assessing your budget, and considering your future plans, you increase your chances of finding the ideal home. Remember, you’re not alone in this process: a real estate broker can provide valuable support to make this journey as smooth and enjoyable as possible. Ready to take the next step? Feel free to reach out to discuss your needs and start your search. Together, we’ll find the perfect property for you!

When you start looking for a house to rent or buy, you will come across a wide range of listings. While the difference between homes and apartments will be apparent, differentiating between a condominium (condo) and an apartment may not be that easy. In fact, some people even tend to think that the two terms mean the same type of residential building. Although they may seem similar when it comes to outward appearance, design, and specifications, these two types of properties actually differ. The differences between them can affect your lifestyle and how you operate daily. Therefore, it is essential to go for an option that suits your individual needs. This post discusses some of the fundamental differences between condos and apartments to help you make an informed decision.

1. Ownership

The most significant difference between a condo and an apartment is ownership since it also impacts the overall management of the property. While most condominiums are managed by a Homeowner's Association, each unit within the condo building has a separate owner. In most cases, you have an option to purchase a condo as you would a standard house. If you choose to rent, your property owner may not be the same property owner for the unit next door. The only difference is that all homeowners within the condo building come together to share responsibility for common areas such as walkways. The ownership of apartments is quite different since an individual apartment unit cannot be bought separately. The entire apartment building will have one owner with units leased to different individuals. Unlike condos that are managed by a Homeowner’s Association, most apartments are managed by a third-party company that reports directly to the building owner. Even if you choose to lease an apartment for a specific number of years, you will most likely deal with the management company and not the property owner.

2. Fees

The standard apartment fee in most parts of Canada includes the first and last month's rent and a security deposit. If you are bringing a pet into the apartment, you may be required to pay a pet fee. The security deposit is usually equal to one month's rent, while the pet fee varies depending on the management. The other fee that may apply if you are looking to rent an apartment is the application fee, which comes before you get to the final stage of signing the lease agreement. It covers a few essential expenses such as running credit, criminal, and eviction reports, to establish that you are a good renter plus the administrative costs associated with verifying your employment, income, references, and rental history. Since each condo unit within a condo building is owned by a different person, it is up to the individual owner to determine the condo fees. Therefore, each unit's fee can vary. Some condo owners may request a security fee but no pet fee, while others may allow you to move in even without paying the security deposit. It is upon you to negotiate with the condo owner and come up with an agreement. The only standard fee applicable to all condo units will be the Homeowner's Association fee used to maintain common areas.

3. Amenities

All units in apartment buildings mostly have standard features that are similar across the community. Sometimes, there may be different floor plans and options for standard or upgraded features if the apartment owner invests in upgrades. Some of the shared apartment amenities include a playground, pool, gym, community hall, parking, and on-site laundry. Condo community amenities are quite similar to those of apartments, but things might be a little bit different inside the individual units. The features in individuals units may be more unique and highly customized to create higher property value. Sometimes, you may come across condos with hardwood floors, vaulted ceilings, and granite countertops.

Did you know that more than 90% of homebuyers start their home search online?

This means that they have to scroll through tens or hundreds of home listings on a laptop or mobile device clicking only on listings that grab their attention.

Therefore, if you are listing your property for sale, your primary goal should be to capture great photos that will make a potential buyer slow down, take a look, and read about the house. The secret to capturing the buyer's attention is to make sure all photos showcasing your home are great.

In this post, we discuss essential tips from pros that can help you capture a picture-perfect house and snap the best shots of your home for listing.

1. Invest in a good camera

First things first. If you want to take great photos of your property, make sure you set your mobile phone aside and invest in a good digital camera. Any point-and-shoot digital camera with at least five megapixels will produce great shots for your listing.

However, if you are willing to spend more on a powerful camera, then go for any digital SLR which offers a wide range of settings and allows you to use different lenses.

2. Use a tripod

No matter the type of camera you are using, positioning it on a tripod provides you with a chance to steady the camera and be more deliberate in making your composition. As long as you are using a digital camera, you can always take a quick test shot and review it to identify areas where you need to make adjustments before taking the final shot.

The first thing you need to do is adjust the overall composition and the details within your frame by changing the lens or moving the camera- this process works best if your camera is on a tripod.

From there, feel free to make the next adjustments by moving or changing the furnishings and objects in the room so you can capture the most captivating photo.

3. Light it up

Light is a critical element of photography. In fact, proper lighting is the key to capturing great photos that will wow potential buyers. Therefore, it is always a good idea to schedule photo shoots during daylight hours.

Open the windows and doors to allow in as much natural light as possible. Open the blinds and curtains and let it shine. You can also consider turning on all the lights in the room when you are photographing it.

Try as much as possible not to use the camera’s inbuilt flash function because it can sometimes create shadows and dark corners in your photos.

4. Choose the best angles and compositions

The best way to show a room in your house is to shoot from the doorway or corner of the room so you can capture as much space as possible. This trick helps to provide context and makes a room look much more spacious.

When taking exterior photos of your home, make sure you start at an angle to the house other than taking it straight-on. This will allow potential buyers to see your home's depth quite well. Avoid taking photos of objects that obscure your home, such as poles and wires.

As coronavirus continues to wreak havoc across the world, scientists have confirmed that the virus can live on surfaces for up to 36 hours. This means high-touch public areas are more dangerous than ever.

But as much as you’d want to avoid these areas and spend more time at home, you should keep in mind that it is not just public spaces that pose a risk.

If you or one of your family members is one of the many asymptomatic victims in the world, your entire household could be at risk of contracting the virus. The risk is even higher if you don’t observe recommended hygiene standards.

One of the best ways of keeping COVID-19 at bay is by keeping your home/apartment/condo clean and sanitized all the time. Here is a simple guide on how to clean and sanitize your property to keep your loved ones safe during this difficult time.

Clean the Most Used and high-Touch Surfaces Regularly

While it is pretty hard to tell what is contaminated in your house, you need to start paying close attention to high-touch surfaces because that is where the biggest risk lies.

Scientists say that our hands are responsible for transferring the virus from one place to another and from surfaces to our bodies.

Therefore, start paying close attention to frequently touched items/surfaces such as fridge doors, kitchen surfaces, kitchen cupboards, TV remotes, door handles, taps, and mobile phones.

Use clean water and soap to wash these items/surfaces frequently because research shows that coronaviruses are vulnerable to soap. Wipe the door handles, TV remotes, fridge doors, and cupboard handles often.

Wash Your Laundry in Warm Water

Cold water without soap may not be effective when it comes to killing germs and coronaviruses that may be lurking on your clothes.

Therefore, it is a good idea to run your laundry through warm or hot water to get rid of the viruses and germs. If you are collecting laundry in a linen bag, be sure to throw the bag in the load as well.

Most importantly, if you suspect any member of your household is already infected, keep their laundry in a separate container, and only handle the clothes when wearing disposable gloves.

Use the Right Cleaners

This is the time you need to keep in mind that not all types of cleaners are effective in killing viruses. Public health experts recommend using diluted household bleach or any alcohol-based cleaning agent to clean your house and laundry.

If you choose the latter option, make sure the cleaning solution contains at least 70% alcohol. Hydrogen peroxide is also another effective cleaning agent, but you need to leave it on the surface for at least one minute for it to be effective.

Vodka, vinegar, and most homemade sanitizers won’t destroy coronaviruses, so it is good to avoid them altogether.

Use Hot Water to Wash Dishes and Cutlery

Washing your dishes and cutlery with hot water and detergent is sufficient to keep them safe for use. If you have a dishwasher, that is much better because you can use hotter water that your hands cannot tolerate. Viruses and germs cannot withstand the high temperature of hot water.

Buying your first home in Montreal or anywhere else can be quite a daunting task. Whether you are purchasing a condo, townhome, or house, you need to keep in mind that there will be lots of expenses involved. In fact, real estate agents in Montreal advise potential homebuyers to set aside between 2% to 3% of the property value to cover additional expenses. So, are you planning to buy a property in Montreal? We have compiled a list of expenses to plan for to make the process a little bit easier for you.

Transfer Duties

Also referred to as welcome tax, transfer duties will be charged within days or weeks following the signature of the deed of sale for the home you are buying. The total amount of the welcome tax is approximately 1% or less of the buying price. Feel free to use this simple tool to find out how much you will be charged.

Appraisal Fee

Your financial institution may also ask for property assessment to confirm its actual market worth. This is where the appraisal fee comes into play. A certified property appraiser will be deployed on-site to verify the dimensions of the house, its structural condition, quality of renovations carried out, the size of land, and the general characteristics of the neighborhood (availability of social amenities such as schools, hospitals, shopping centers). The appraiser will then give his/her opinion on how much the property is worth taking into account the prevailing market conditions.

Notary Fee

In Canada, any real estate transaction requires the services of a notary. However, the cost of this transaction may vary widely depending on a wide range of factors. The type of building, number of separate accommodations, and number of interested buyers are some of the factors that would impact a notary's rate. The easiest way to determine how much you will pay in notary fees is to reach out to a qualified notary who will assess your case, taking into account all the mentioned factors.

Electricity Meter (Hydro Quebec Costs)

The seller and buyer of any property in Montreal must notify Hydro Quebec of the exact date the property is scheduled to change hands so that the electricity meter is read and all amounts owing properly allocated. You will be expected to cater for the cost of this process. Charges usually vary depending on a wide range of factors such as urgency.

Inspection Fee

A building inspector will charge anything between $400 and $1,000 to inspect a home in Montreal, depending on its size. However, it is worth paying the money because home inspection can save you from significant losses once the deal has been closed. Also, don't be afraid to pay a little more for the services of an experienced and reputable home inspector, preferably one who has qualifications in engineering or architectural design.

Mortgage Insurance

You may also be required to obtain mortgage insurance if you are making a down payment of less than 20% of the property’s asking price. The cost of this insurance varies from one company to another, but it will always be anything between 0.5% and 2.90% of the total amount of mortgage loan. It is the responsibility of your financial institution to manage the mortgage insurance.

Establishing whether you should rent or sell your property can a big decision, and it is not something you can afford to take lightly. This is the primary reason why you should take time to evaluate each option carefully to make a sound decision that favors you in the long run.

While there are plenty of benefits for both options, there are also drawbacks. In this post, we discuss the pros and cons of each option to help you make an informed decision.

Pro & Cons of Renting

There are several pros and cons to renting your property other than selling it off. Renting out your home can diversify your income streams and investments, helping you lower your financial risk.

For instance, if you lost your job unexpectedly, you will still have a source of stable income. The other advantages of renting your property include;

It is relatively easier to rent your home than sell it: Depending on where you stay, it might be easier to find a tenant than it is to find a homebuyer. The truth is that selling a property is generally a tedious process that consumes a lot of time.
You can still take advantage of home equity: There is no need to sell your property if you really like the neighborhood. By renting it out, you can still play to the dynamics of your local real estate market without having too much at stake. After all, you'll always have your capital tied up in the form of home equity.
Tax shelter: While renting your home, you can write off all of your expenses. Technically, the cost of repairs, management, maintenance, and utilities is passed down to the tenant. You can also depreciate the value of your property hence lowering your overall tax liability.
Renting provides you with the opportunity of moving back to your home if need be: While considering whether to rent or sell your property, it is also good to evaluate the qualitative advantages of renting. By renting your home, you can still get the tenant out and move back into it.

However, there are also some cons of renting your home. They include;

Market rents tend to fluctuate a lot, and your property may generate less rental income than you had anticipated. It can even sit vacant for several months, causing an unexpected financial strain.
Dealing with tenants and general maintenance of the home is something that can be stressful, time-consuming, and draining.
Depending on your financial situation, renting your property may hinder your ability to find a mortgage to purchase another home elsewhere.

Pro & Cons of Selling

Selling your property can be a tough decision because it is the only place you call home. You have probably created a lot of memories, and it is just hard to let it go.

But, sometimes, selling your property instead of renting it can be the best decision for you. Some of the pros of selling include:

Selling frees up significant capital that you can invest elsewhere. This means that you don’t necessarily say goodbye to being a homeowner. You can use the money to purchase another home wherever you want.
Selling also makes sense if you are looking to upgrade to a better property or are not planning on coming back to where you currently live.
Selling off your property will most likely demand less of your energy and time than renting it. Since you will not become a landlord, you don’t have to deal with the numerous time commitments involved in renting out a property.
Also, if you feel like the real estate market in your area is going to experience a sharp decline in the coming years, then it will be good to sell off your home. This will help you generate as much income as possible before things start to go south.

Unfortunately, there are also a few disadvantages to selling your property. They include:

If you have a large amount of home equity in your property, you may end up paying capital gains tax on the amount above the set threshold depending on your property income.
You also lose out on the potential appreciation of the property value in the future. This should be a serious consideration, especially if your home is in an area with a relatively stable housing market where property value continues to rise.
Lastly, it may be difficult to sell your home unless you lower your asking price if the local property market is declining. The last thing you want to experience is your home overstaying on the market since it usually turns off potential buyers.

You are on the hunt for a new home; you have already seen several listings online and even put together a shortlist of potential properties that you may consider buying.

There is even one property with the exact number of bedrooms you need, a renovated kitchen, and enough square footage you have been dreaming of - the house looks perfect in photographs.

However, you need to keep in mind that while a house may look perfect online, seeing it in person is the only way to establish whether it is right for you.

Visiting the property allows you to check out its features and determine whether it is in good condition. So, what are some of the critical things to look out for when walking through an open house?

The Front Door

The first thing you need to pay close attention to is the overall state of the front door. How does the paint look? What about the knocker, door handle, and light fixtures? Are they spider web laden or pitted? What kind of first impression do you get? The first look on the front door is always a crucial indicator of how the rest of the property looks like and how well it is maintained.

The Neighborhood

You also need to remember the fact that you are not just buying a house; you are purchasing a neighborhood too. Apart from the overall state of the property, this is perhaps the other most important takeaway from seeing a house in person.

During your visit, be sure to scrutinize the neighborhood and pay close attention to the overall condition of other homes in the area, traffic speeds, and whether or not there is easy access to amenities that your family may need.

Signs of Water Damage

You need to make sure that the property you are about to purchase has not been damaged by water or moisture. Signs of water damage in a home may not be obvious, but you can always spot some of them if you are keen.

If the home has a basement, be sure to pay close attention to the carpet, walls, and flooring. Do not hesitate to touch the carpet in the basement to establish whether it is wet, especially if there has been rainfall. Musty smells are also a sign that water has found its way into the home’s basement.

The Flow of Natural Light

Although you may be touring the house in bright daylight, try to figure out how it will look like on a gloomier day. Does it have enough windows and doors to bring in plenty of natural light? Are the windows and doors strategically located to allow in maximum light? Is the basement fitted with windows to bring in natural light? You have to look at all these factors because you do not want to spend time in a gloomy home during winter.

Do Not Forget to Inspect the Exterior

Lastly, don’t forget to walk around the entire home and inspect the exterior components. Pay close attention to the age and overall condition of the roof, siding, and foundation.

Check the gardens to determine how much effort and money you will need to invest in landscaping to improve the home’s curb appeal. You should also check the state of the walls, driveway, and pathways.

Keep in mind that if you do not want to spend a lot of money hiring outdoor maintenance experts, then you may want to look for a property with easy outdoor upkeep.

An investment property can be highly profitable if you finance it properly. Unfortunately, saving for the down payment can be the most difficult part of your investment process. Furthermore, financial institutions consider mortgages to be a riskier business, and as a result, they charge high fees and interest rates to help minimize the risk. The good news is that you do not have to go through all this hassle while trying to finance your real estate investment. You can take out a home equity loan or home equity line of credit (HELOC) and use the money to finance your investment. In the long term, your commercial property will generate sufficient income to pay off the equity loan or line of credit debt, hence making your decision worthwhile.

How Does a Home Equity Loan Work?

As the economy grows, your property value rises. The equity on your property refers to its current appraised value minus the amount that you may owe in mortgage debt. For example, suppose your Montreal real estate broker appraises your property for $600,000, and you owe $300,000 on your mortgage, it means that your home equity stands at $600,000-$300,000, which is $300,000. You can borrow up to 90% of this amount to finance your real estate investment. The difference between a home equity loan and a home equity line of credit (HELOC) is that a home equity loan is delivered in a lump sum while HELOC is much like a credit card account that you can only access on an as-needed basis. Home equity loans come with fixed interest rates.

Investing with a Home Equity Loan

This financing strategy does not require selling your primary residence or even refinancing the existing mortgage on it. You are simply borrowing money against the property by leveraging its equity. This can also happen with rental properties that have high equity or are owned outright. You can borrow up to 90% of your home equity at a fixed rate. For instance, if your property is worth $600,000 and you owe $300,000 in a mortgage, you can borrow up to 0.9´($600,000-$300,000) which is $270,000. Just like any other loan, your home equity loan takes into account your credit score, debt to income ratio, etc. Apart from having enough equity in your home, you must have sufficient income to support the payments with all of your other debt. You should also strive to understand the risks involved before you decide to take a home equity loan to finance your investment. The major drawback is that you risk losing both your investment property and primary home if you miss payments.

Benefits of Home Equity Loans

Home equity loans offer a wide range of exciting benefits to investors. These loans have low or no closing costs, which can save you thousands of dollars. They also have a quick turnaround time and offer the option of fixed-rate that is much more attractive than a variable rate. Additionally, the interest charged on your home equity loan is tax-deductible whereas the interest charged on an investment property mortgage is not.

Over the past few years, Montreal has shifted from a buyer's market to a seller's market. Today, more property buyers are competing for the few properties that are available on the market.This situation has led to perpetual bidding wars, a sharp rise in property prices and more offers over the asking price.

However, not all sellers seem to attract multiple offers on their properties. You need to implement the right strategies to take advantage of the heated market and sell your property at the best price possible.

Here are a few tips that will help you move your property listing into the multiple-offer zone.

Price Your Home Aggressively

Typically, homes that get multiple buyer offers tend to be sold in an "auction" style. Think back to the last auction you attended or watched on television and you will remember this basic principle of auctions: the starting price is always low.

In fact, it is the relatively low price that gets a lot of people excited about the real possibility of emerging winners in the bidding war. It is the same thing when it comes to pricing your property.

Make sure that you price your home slightly under the current market value to attract more buyers, which will lead to a bidding war. If this strategy doesn't generate the expected interest, you can simply decline all the offers and re-list your home at the right price.

Focus on Curb Appeal

This one goes beyond editing your home photographs and making them appear appealing online. The house will need to be in great shape when potential buyers show up to have a look at it.

There is no point in ensuring that the photos you post online are glittering, yet the same can be said of the physical property. The first impression of the property will lay the groundwork for how the potential buyer mentally feels about your home the entire time you interact with him/her.

If you are living in the house, consider de-personalizing it and cleaning it thoroughly. You can also paint your walls, kitchen cabinets and change the faucets. Keep in mind that it is the small things that matter.

Stage Your Home

Make sure that you prepare your home for sale under your real estate agent’s guidance. Depending on the state of your property, staging could compromise of simple things such as repainting your walls, de-cluttering rooms, or replacing fixtures.

Remember the fact that your primary goal is to create a great first impression without spending a lot of money on renovations. Your real estate agent will help you identify good investments that will play a critical role when it comes to staging your home.

Give Buyers and Their Agents Ample Access

It is always good to put yourself in the buyer's shoes. Let us assume that 30 properties on the market meet the buyer’s specifications and needs in terms of the number of bedrooms, bathrooms, location, price range, and square footage. And 20 of those top the list.

But, the buyer has time to view only eight of them on a particular day. If the buyer can't access your property today because you have got so many restrictions or demands around showing it, there is a high chance your home will miss out on showing with this qualified and motivated buyer.

If you want to attract multiple offers to your listing, it is essential to ensure that your home is available to potential buyers anytime they need to see it Although this might seem frustrating and inconvenient, it is good to consider what is at stake.

Know When to List Your Home

The day of the week when you list your property can also determine whether you receive multiple offers or not. Real estate experts recommend listing your property on a Thursday since most buyers usually plan their visits over the weekend. Going live on Thursday will give potential buyers time to discover your listing on Friday and plan for a visit on Saturday or Sunday.

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