IS A HOME A GOOD INVESTMENT?

 

For those wanting a steady return on their money, houses can to be a sure bet. When the baby boomers started madly buying houses in the 1980s, suddenly real estate seemed like the path to instant wealth. The real estate markets fluctuate constantly. There have been times when house prices have gone down. However if you look at the overall price of homes in your area over the last 10 years, in most cases, (depending on your region) prices have risen.
 
Where is the housing market headed? Nobody can accurately predict. But even if house prices don't rise phenomenally, a home has two strong things going for it as an investment. First, any capital gains on your principal residence are tax-free. If your house appreciates by 6 per cent, you get to keep every cent of your gains.
 
Now 6 per cent may not sound like much, but in terms of how much you end up with, you'd have to earn as much as 12 per cent on a fixed-income investment such as a GIC to match that return, after tax.
 
Second, you don't have to come up with the full purchase price, meaning you're able to harness leverage. The conventional mortgages require a down payment of 25 per cent of a house's appraised value. Where as the High Ratio Mortgage, requires only 5% down payment.
 
For example, if you buy a $200,000 home, you need to come up with around $50,000 for a conventional mortgage. If the home's value rises to $220,000, that's an increase of 10 per cent. But what's really happened is you've put up $50,000, and made $20,000. Your real gross return on your invested funds is around 40 per cent. But notice the word “gross”. Don't forget that your real return will be less.
 
Buying a home and having a mortgage is also a tremendously powerful forced savings program.
 
 
adminlistingsprivacy policycontactsite map

Preparing for Showings

First Impressions
Remember, when a prospect comes to look at your house, the first thing they will see is your home's front door! Make it look fresh and clean. Be sure your lawn and landscaping is well manicured and trim looking. Be sure the yard is free of refuse and leaves. If it has snowed, be certain the ice and snow is removed from walks and steps.

What You Show Is What You Get
Faded walls and worn woodwork will reduce the appeal of your home. Why try to tell a prospect how your home could look when you can show them by a reasonable amount of redecoration? A quicker sale at a higher price will result. Invest in wallpaper in the kitchen or bathroom. It will pay dividends for you.

Let the Sun Shine In
Open those drapes and curtains all the way, so the prospect can see how bright and cheerful your home is.

Fix That Leaky Faucet
Dripping water discolours sinks and suggests to the buyer that the plumbing may be faulty or worn out.

Little Things Mean A Lot
Take a few minutes to check to be sure that your doors don't stick or have loose knobs on them. Don't forget your windows and cabinet drawers. Try and repair any minor flaws since they do detract from your home's value.

Safety First and Always
Be certain stairways are clear and clean since this will avoid injuries around your home, as well as avoid distraction to the potential buyers.

From Top To Bottom
Display your attic, basement, utility space and crawl spaces by removing all unnecessary articles. A coat of paint can do wonders if your basement appears dark and dreary.

Big Closets
Make them look bigger by having them neat and well organized to show that your home has ample closet space.

Bathrooms Sell Homes
Make those rooms absolutely sparkle. Check and repair any damaged or discoloured caulking in the bathtubs and showers, and be sure that the towels and area rugs are bright.

Bedrooms Shouldn't Sleep
Keep those rooms bright and cheerful. Remove any excess furniture and be sure to use attractive and colourful bedspreads, and fresh curtains.

Shine On
Your home's illumination can be a "welcome sign" to that prospective buyer! Turn on all your outside and inside lights when showing your home at night and they'll feel a glowing warmth as a result of your lighting.

ROYAL LEPAGE TERREQUITY REALTY, independently owned & operated
Copyright © 2002-2017. All rights reserved.
Internet Marketing for Real Estate Agents by Lone Wolf Technologies.
Lone Wolf Technologies