first time buyers ebook

Jody Thompson416.450.5900

Remax Professionals Inc, Brokerage

Wednesday, 9 January, 13

So many things to consider.......

Wednesday, 9 January, 13

Things to consider.....the buy versus rent decision

prep to do before you start your search

criteria for your search

new construction versus resale properties

income properties

post closing costs

helpful resources

Wednesday, 9 January, 13

Buy versus Rent

Wednesday, 9 January, 13

Buy versus rent decisionno right or wrong decision - it’s what is right for you

renting is a good option if you are going to need to move again in the short term

buying is always the better longer term investment as your mortgage payments are going towards an asset versus someone else’s asset

buy when you can afford the downpayment

Wednesday, 9 January, 13

Early prep before you start your search

Wednesday, 9 January, 13

Before you start your search

Prioritize your wish list & understand where you might be willing to compromise

Get your mortgage pre-approved so you know what you can afford & can move quickly when you find the home of your dreams

Use a real estate representative to show you different areas so you can hone in on what neighbourhoods meet your criteria & are in your budget (0ver 140 neighbourhoods in Toronto!)

Determine if you have $$$ in your RRSP that are available to use for your downpayment (gov’t has a special program for first time buyers)

Wednesday, 9 January, 13

How to select the right neighbourhood for your family?

Wednesday, 9 January, 13

How to select the right neighbourhood?

Demographics of the area - young families, singles, empty nesters - does it meet your needs?

Lifestyle elements - coffee shops, restaurants, recreation facilities

Amenities - banking, gas stations, libraries,hospitals, community centers, cycling trails

Schools & Daycares - to suit your family requirements today & in the future

Transit Access - easy access to work

Wednesday, 9 January, 13

New construction

Wednesday, 9 January, 13

New construction

allow the homeowner to select many of the finishings for their unit

need to be aware that the sales centers typically have much higher ceilings, many upgrades and are filled with very expensive furnishings that might not represent your suite - know what you are getting!!!

over 200 builders in GTA makes judging quality product a challenge (ask to see finished projects in other areas)

typically requires 15-20% deposits upfront that could be tied up for over a year depending on construction timeframe for your project

Wednesday, 9 January, 13

Resale Homes

Wednesday, 9 January, 13

Resale Homes

typically closer to more amenities - public transit, shopping, restaurants, community centers, schools than new construction

many times you can get larger sq ft condos and homes than new construction at the same price point

neighbourhood appeal is visible -often with more mature trees and landscapes - you see what you are getting!

older homes can come with need for immediate repairs ie if there is asbestos, and /or knob & tube - a building inspector can help you access this

Wednesday, 9 January, 13

Helpful Resources

Wednesday, 9 January, 13

Helpful resourcesreal estate agents that focus on buyers

mortgage brokers

handy man

renovators

home inspectors

lawyers

Wednesday, 9 January, 13

Investing in income properties

Wednesday, 9 January, 13

Investing in income properties great way to have someone assist in paying down your mortgage

need to ensure that your income property is safe and legal to avoid issues

tenant selection is critical

being a landlord comes with additional responsibilities

Wednesday, 9 January, 13

Closing Costs to plan for......

Wednesday, 9 January, 13

Costs you need plan for

legal fees - typically between .025%-.050% of purchase price

land transfer tax - two land transfer taxes in City of Toronto (see next page for details)

mortgage appraisal

movers

seller prepaid taxes, utilities

charges for hook up of utilities ie cable, phone etc

costs for any immediate repairs required

Wednesday, 9 January, 13

Estimate of Land Transfer Fees

Toronto

Municiple Land Transfer Tax (MLTT)

Up to and including $55,000.00 X 0.5% of total property valueFrom $55,000.01 to $400,000.00 X 1% of total property valueOver $400,000.00 X 2% of total property value

Ontario

Provincial Land Transfer Tax (PLTT)

Up to $55,000 X 0.5% of total property valueFrom $55,000 to $250,000 X 1% of total property valueFrom $250,000 to $400,000 X 1.5% of total property valueFrom $400,000 up X 2% of total property valueThe City of Toronto levies an additional LTT on Toronto real estate in addition to the provincial rate.

Land Transfer Tax Rebates: First Time Home Buyers

If you are a first time home buyer you are eligible for rebates for both the Municipal and Provincial Land Transfer Tax

• Municipal Land Transfer Tax (MLTT): Maximum $3725• Provincial Land Transfer Tax (PLTT): Maximum $2000

Wednesday, 9 January, 13

Let me assist you with your search.....

Jody Thompson sales representative

Remax Professionals Inc. Brokerage

www.thompsonsells.com416.450.5900

Wednesday, 9 January, 13

Wednesday, 9 January, 13