History dictates that investing in real estate has been one of the best investments.  For some, real estate has earned them more capital without the risk that some other investments pose.   Financial institutions and private lenders will lend money for the purchase of real estate because they understand that the likelyhood of their investment failing is minimal.   

Here’s why investing in real estate is worth considering:

Facts

Over the years, the value of real estate has continuously increased.   On average, the value of most homes has almost doubled over the past 10 – 15 years.  To put this in perspective, look at the value of your own home today compared to when you purchased it.  

Control over your investment

Owning real estate allows you to be in control of when to sell or to keep it as a means for increasing your profits. 

Flexibility

Owning a piece of real estate gives you the flexibility of furthering your investment portfolio.  Being able to take out additional financing if necessary can easily be done when you own a property.  You can also make money off your property by becoming a landlord. 

Reducing your mortgage

If you use your home as a rental property, rental payments can be put towards your mortgage.  This would decrease the amount that you have to pay, or pay down the principal balance on your mortgage quicker.

Potential Additional Income

Owning additional real estate will generate additional income for the present and for your future. 

Investing in more real estate

Owning real estate allows you to borrow against the equity to purchase additional real estate.  Investing in more real estate means even more equity for you as an individual.

Invest in the future

Owning real estate holds many advantages.  In addition to being able to sell at any time, rent to provide additional income or save on your taxes, your real estate investment can also be passed on to future generations in an effort to give them a head start in ownership of a great ongoing investment.

In determining whether you should go with a variable rate vs. fixed rate mortgage how do you decide…..

Yes, let’s flip that coin, VARIABLE vs. FIXED… the best Variable Rates are prime (3.00%) minus .80%, which means your payment is at a rate of 2.20%. Sounds great and it is, for qualified candidates. News just in,  fixed 5 year rates have just lowered to 3.99%.  Pretty good if you like the thought of a steady secure payment over the next 5 years.

The truth is, either way you really can’t go wrong. There is a rise in debt consolidations to payoff outstanding credit, and there is no need to panic, credit repairs through mortgages are available.  Contact one of the experts at Maple Leaf Mortgages or apply on-line to get started.

Starts July 1, 2010

HST is 13% = 5% GST + 8% Provincial Sales Tax
No HST on residential re-sale transactions except for tax on commission payable by the seller on closings after July 1st (see below)

No HST on residential rents

HST on commission payable by the seller on sales (re-sale transactions) being completed after July 1st except where the agreement of purchase and sale was firm and binding prior to July 1st – then no HST (GST still payable) – more specifically, this rule would apply where at least 90% of the agent’s services on the transaction have been completed prior to July 1st, notwithstanding the closing occurring after July 1st.

Generally HST will apply to commercial real estate transactions – purchases and leases

For newly constructed houses/condominiums, No HST (GST will still apply) if the agreement of purchase and sale was assigned on or before June 18, 2009

For newly constructed houses/condominiums where the agreement of purchase and sale was signed after June 18, 2009, No HST (GST still applies) on purchases having a price not exceeding $400,000.00

There is a $24,000.00 rebate on all newly constructed houses/condominiums – there is a graduated tax on purchase prices of between $400,000.00 to $500,000.00; the full HST payable on that portion of the purchase price over $500,000.00

On newly constructed condominiums – No HST when interim occupancy closing occurs prior to July 1st notwithstanding the final closing occurring after July 1st.

Spring is in the air.  Thoughts turn to outdoors; walks, spring cleaning and fixing those things around the house that need fixing.

Many mortgage brokers don’t listen to their clients.  They just do things, without any regard for how their mortgage advice or mortgage given to the client will affect them in the future.  Maple Leaf Mortgages is our career path, so for us your repeat business and loyalty is what we strive for.

So…when you look at your bills this spring and need advice on how to consolidate them which will create monthly savings and better cash flow, we can definitely help!

You’ve been thinking about an addition to your home or perhaps that swimming pool or car; needing a new fence or roof, just call a Maple Leaf expert to show you how to get a “home renovation loan.”

Maple Leaf Mortgages is dedicated to get you the best mortgage that fits your needs.  Whether it’s a new first mortgage, variable or fixed, second mortgage, line of credit, Maple Leaf Mortgages has expert service and we want you to know what you are receiving and how it will make your life better!

Looking back on the year 2009 does not resonate with thoughts of optimism.  This year has been one of recession, reflection and rebound.  The three “R”s as we see it.  The year started off with sounds of doom and gloom for businesses, governments and consumers alike.

Since the last recession in 1991/1992, we have been on this whirlwind ride of profits and good times.  The usual ten-year cycle lasted longer than we expected, but the excess spending habits, profit taking and rampant credit seeking had no limits.  Then came October 2008 and all went down in our industry; financial institutions and private lenders all pushed the pause button.   Rates changed, policies changed, values changed, and attitudes changed.  The recession was full blown and the markets, employers and government were affected.  The effects of the recession hit hard, especially in the United States.  Here in Canada we learned that because of our checks and balances in place, the effects would not be as devastating.  Slowly we have recovered, with the U.S. lagging behind.  This recession allowed government, employers and consumers to reflect, not only on their spending policies and habits but also on their goals and ability to stay solvent.  Reflection is a good thing for all.  It allows one to understand, evaluate and make the necessary changes needed.

Coming to the end of 2009, the rebound is beginning and the optimism is growing.  Markets are reacting to this stabilization in the economy; inflation intact, employment numbers reflecting a bounce back and profit margins are growing.

We at Maple Leaf Mortgages wish everyone Seasons Greetings and a safe, healthy and happy New Year for 2010!