November 2012

Found 5 blog entries for November 2012.

Are you considering investing in rental property that is near a university? Keep in mind that while there will be a great demand for housing; many of those looking are students. While some university students are very responsible, there may be others that remind you of that movie “Animal House,” where everything that can go wrong in a property very messily does so. Just do the proper screening and lay down some basic rules and the chances of your unit becoming an out-of-control party central decreases dramatically. 

Sub-Letting Option

In the United States, students are usually offered one-year leases. In Canada, where the norm has been to follow the school term and offer eight-month leases, there appears to be a change afoot. The year leases are

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When you invest in property, the intent is to find good tenants to keep that cash flow going. Screening potential tenants is a must, even more so if you are considering doing a rent-to-own agreement. After you’ve found someone suitable, it’s then a matter of keeping them happy so that the deal doesn’t fall through down the road. Secure the services of a good finance manager and a lawyer to make sure all the agreements and associated paperwork are letter-perfect. But there are other considerations that are equally important.

Finding Suitable Tenant Buyers

Where is the best place to look for people suited for the rent-to-own scenario? Your best bet are people who are perhaps new to Canada and can’t yet qualify for typical financing, or those who have

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Did the Bank of Canada, in its bid to cut down on Canadian debt, make the mortgage rules a bit too strict? Some of the mortgage brokers nationwide are at least hinting at this fact, noting that the rules have the possibility of undermining what has been a sound economic recovery.

According to the Canadian Association of Accredited Mortgage Professionals, CAAMP for short, when the rules were enacted this past July, the resale housing market started to slow down. Sales from August through October this year were 8 percent lower than the same time period last year.

Changes included a reduction in the maximum amortization period from 30 to 25 years for those borrowers taking out default insurance on that mortgage, a federally backed policy. Shorter amortization…
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Calgary’s real estate market is doing just fine, particularly in the resale sector. The Canadian Real Estate Association, or CREA, noted that the city had the nation’s highest rate of sales increases this past October. In a data report released this past Thursday by MLS, the city showed 2,104 sales with an average increase of 26.7 percent for the month. Compare that to the national decrease of 0.8 percent where 35,971 units, in total, changed hands.

BMO Capital Markets’ Robert Kavcic, an economist, credited the strong income and population growth for the increased housing demand. The excess supply has dwindled, meaning prices are on the rise and the market just entered into the seller’s domain. This October saw a five percent price increase over October

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Forecasters at Royal LePage Realty are expecting the housing market in Calgary to continue its strong growth throughout 2013. The firm just published their 2013 Housing Market Outlook this past Wednesday and released it along with their predictions that by the end of 2012, some 25,500 homes will change hands. That is a 13.5 percent increase over sales in 2011. The prediction is that for 2013 there will be an additional ten percent increase in sales, ending up at 28,100 sales by that year’s end.

As far as price, the prediction for MLS sales is an increase of 2.5 percent to an average of $413,000 per home by the end of 2012, along with an additional two percent by the end of 2013, bringing the average to $423,000 per unit. It was noted that Calgary is seeing…
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