Is Our Market Indestructible?

Is Our Market Indestructible?

Look up, its a bird, its a plane, No.. its not superman, its our Real Estate Market!

Almost everyday I speak to somebody regarding the Real Estate market in the GTA crashing.
Everybody says to me, wow, I can’t believe that house sold for 200% over asking.

I started my real estate career in a downturn, in 2008, so really that was the last time that the market was in a buyers market situation.
While the market was low, it still didn’t crash at that time. The last time we had a full on crash was the late 80’s and early 90’s.

If you look at the stats for the past 40 years, you will see one thing that is very common; The market goes up and down. While it goes up and down, it has steadily gone up in Toronto.

If you watch news casts and listen to real estate experts, you will be listening to a lot of crap. Nobody really knows or can predict if the market will tank into oblivion.

If you watch movies about the market crash in the U.S. you will see that many people were predicting the market crashing there since 2003, but it really didn’t happen until 2008. That’s a five year difference, and that scenario had the worst sort of ingredients to start that fiasco.

Here is Toronto, the laws are pretty stable, the interest rates and mortgages are not wacky or have a lot of craziness to them, they are pretty standard, and there are no funny business mortgages here. So in that respect, the money is stable. Our laws are for the most part making sure, people who are taking on mortgages can afford them. So that’s a big factor in determining if the market will crash.

While our dollar is tanking big time, bad for oil and subsidiary business, it is great for other businesses such as manufacturing, travel and of course Real Estate.

Unemployment is a big factor in people being able to afford their house correct? While it is up in Alberta, the rest of the country has actually gone down a bit this month. So its bad for Alberta, but here in Toronto, its gone down and held steady.

Market Demand. If you have tried to buy a house in the GTA, you know for the most part you will be in a bidding war situation. The reason being, so many people are coming into the GTA, and staying where they work, they do not want to commute. Plus, foreign buyers, are buying up our cheap Real Estate. Compared to other parts of the world, our prices are cheap. Yes they are. First time home buyers are buying condos, driving up that market as well.

Cheap Interest Rates. Getting a mortgage in Canada is like the banks giving away free money. Yes you pay a measly 2.5% but that is a far cry from the 8% mortgages I was selling. It is harder to get a rental than to get a mortgage these days. If you have some money down, and you have a decent job, you can get a mortgage, regardless of your credit. Yes there are many lenders who are private that will lend to anybody, if you have minimum down.

So, the next time you have your friends over and you start talking Real Estate, and start dreaming of a crash, examine these factors discussed and think again for now!

360 Degree Video Will Change Video Tours

360 Degree Video Will Change Video Tours

The biggest thing which I believe will hit the Real Estate market in the next couple of years is 360 degree video. Youtube is already hosting videos and a bunch of cameras came out at CES conference and some are already on the market. Basically this is an extension of 3D camera’s but it can be manipulated.

Imagine you are selling your house, and your video tour is going through the house, but you can turn the camera in any direction while the video plays.

This will be a great tool in the future, because it is not just a still picture, you can make a video and still have the 3D effect and use your browser or phone and move around.

To See what this technology is all about, go to youtube and type in 360 degree video. FYI Safari browser does not work. Use Chrome or your mobile device

How To Rent a Place Without A Credit Check

How To Rent a Place Without A Credit Check

It is true that renting a place these days are harder than getting a mortgage. The reason being, if you don’t pay your mortgage, its 3 months and they foreclose on your property and take it from you. If you don’t pay your rent for three months..well it gets complicated. 

So that being the case, landlords are increasingly getting pickier and picker on who they rent their investments to. The ideal renter, has money, has a good paying job with history and has a good credit score of over 700 with good references. In a perfect world this is what every landlord wants. 
When you rent a place, most landlords want 2 pay stubs, T4, NOA, references, and of course a credit check. Some landlords will not deviate from this, and if you don’t have it, don’t bother, its just what they’ve been taught in landlord school. I’m here to tell landlords and tenants, it doesn’t matter how good credit is, I’ve seen great credit people fail and be horrible tenants. 
Not everybody has credit for one reason or another. There are many instances where there is no credit due to being an immigrant, on a workers visa, student from another country or here. Here are a few ways to get into a rental without a credit check. 

1. Letter of Recommendation:

If you are here studying or working, get a letter of recommendation from your professor, student liaison, or boss. This will make you look reliable in the eyes of the landlord. 

2. Offer a couple months extra:

I wouldn’t recommend paying the whole year but paying a few extra months would help a lot to calm the nerves of a landlord worried that you are not going to pay. Make sure that extra payment is documented with chq’s and in an agreement.

3. Scholarship information:

Show the landlord that you have a scholarship and that there is an allotment for rent is a good way to prove you have money coming in for the rent. 

4. Co-Signer:

This is obvious if you don’t have credit and may be the only alternative if the landlord doesn’t accept the other proposals above. 

5. Increase in Rent:

Offer them a bit more than the asking price is a good motivator to get you in there, hey a few hundred bucks extra maybe worth the headaches perceived for some landlords. 
Be Honest and Speak to the landlord. Sometimes putting a face to the application is enough to get a landlord to accept you as an applicant. When a landlord receives an application, its easy on paper to say no to someone, but when you speak to the landlord, and make a case for them to rent the place out to you then it may give you a chance. 

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