Market Update (May 2021) 

Body:

- If you are an end user, you have to focus on the fundamentals: Location, location, location

- as long as you buy well, and you see yourself in the house over the long term, you will do well

- certain pockets / neighbourhoods are always in demand no matter what

- more upscale neighbourhood, less motivation / necessity to fire sale if market shifts

- Low interest rates enable buyers to achieve their house goals in a more aggressive timeframe

- construction cost / land costs constantly increasing

- As an INVESTOR cashflow is king, important for house to carry over time

- use leverage to your advantage & have tenants pay off the mortgage

- multiple profit centres of real estate investing

- cashflow

- appreciation

- leverage

- mortgage pay down

- tax incentives

- In a typical investment property, assuming a 4% appreciation per year, and positive cashflow, you typically get 100% return on your investment in 4 years (return on your cash investment)

- Even if the market were to correct by 50% from the purchase price, as long as the property has a positive cashflow, over 25 years, you still get 400% return on your initial cash investment

- best time to buy real estate is YESTERDAY

Business motivation:

- As a business owner, I never want to spend my business income on lifestyle

- I always aim to re-invest in real estate, and live of passive income

- Passive income is income that I didn’t have to earn, and I feel better about spending it as opposed to business income, which is income that I had to work hard for

Body:

- If deposit is not dropped off is the deal automatically dead?

- Meaning of “time is of the essence”

- If an offer is signed on Saturday at 2pm, when does the deposit need to be dropped off?

- what happens if the deposit is received late?

- meaning of void and voidable

- does the deposit need to be certified / bank draft or can it be regular cheque

- If firm offer is accepted is buyer compelled to close? what happens is buyer changed their mind? what damages is the seller owed?

- if firm offer is accepted is seller compelled to close? what happens if seller changes their mind? what damages is the buyer owed?

- How secure is the brokerage’s trust account?

- What happens to trust funds if there is a dispute?

- What amount of deposit should a buyer be prepared to give?

- Does the size of deposit matter?

- How have courts ruled when market softened in 2017 and buyers breached their contracts?

- what can buyer expect from our court system for breaches during covid?

Market Update  (April 2021) 

Body:

- If deposit is not dropped off is the deal automatically dead?

- Meaning of “time is of the essence”

- If an offer is signed on Saturday at 2pm, when does the deposit need to be dropped off?

- what happens if the deposit is received late?

- meaning of void and voidable

- does the deposit need to be certified / bank draft or can it be regular cheque

- If firm offer is accepted is buyer compelled to close? what happens is buyer changed their mind? what damages is the seller owed?

- if firm offer is accepted is seller compelled to close? what happens if seller changes their mind? what damages is the buyer owed?

- How secure is the brokerage’s trust account?

- What happens to trust funds if there is a dispute?

- What amount of deposit should a buyer be prepared to give?

- Does the size of deposit matter?

- How have courts ruled when market softened in 2017 and buyers breached their contracts?

- what can buyer expect from our court system for breaches during covid?

Market Update   (April 2021) 

Body:

- what are buyers experiencing in the market

- timing is everything in real estate

- Home inspections

- Buyer acting in bad faith - provide recent example

- Seller options / withholding the deposit

- Different language to write home inspection conditions

- What if the house does not appraise

- Is buyer compelled to close

- what options do both parties have?

- what happens to the deposit

- is the listing brokerage compelled to do anything

- how long can the listing brokerage hold the deposit

- is the deposit held insured ? by whom? for how much?

Business development

- navigating through covid

- pivoting and adapting

- business development through covid

- trends in the marketplace

Market Update:

- Analysis of the current real estate market (David Gorski) Month over month analysis, avg. price, avg. days on the market, absorption rates (April 2021)

Body: Buyers & Multiple Offers

- What buyers are experiencing

- 5 tips that buyers can do to prepare before starting their house hunt

- 3 reasons why we are seeing multiple offers:

        - Low interest rates

        - Lack of inventory (historically always wrong time to sell, covid 19, tough to buy)

        - High demand (Canada has been rated as a top destination to live in the world, stable economy, immigration policy)

- Legal pitfalls of not including home inspection conditions

- Legal pitfalls of not including financing conditions

- What happens when there is a firm offer and the house does not appraise before closing

- Highest offer doesn’t always win …….  (stories from our perspective)