Frequently Asked Questions (FAQ) about Homes and Real Estate
- Why should I buy a home and invest in real estate?
Because in a stable political and economic country, real estate is always the best investment in one’s life in the long run, in addition to the comfort of living in your own house. Further, owners will often fix up their own house on their own time enjoying the process and increasing its value.
- Why should I buy properties as investments ?
Again, it is like owning blue chips stocks, in the long run, investment and commercial properties give a secure good return.
- Should I not use the money to buy stock rather than properties ? I get my money back much quicker ?
This is why real estate is usually a long-term investment. Quicker return also means higher risk.
- Do I pay capital gain tax on the house (property) I live in if I make a profit when selling ?
In the United States, you do.
In Canada, you do NOT. - Does it mean that I am better off in Canada when it comes to selling my house ?
Not necessarily. In the United States you can deduct the mortgage interest from your income tax in Canada you CANNOT deduct the mortgage interest.
- I am a first time home buyer. Is there any program that might benefit me ?
Yes. Depends on whether you live in the United States, or in Canada. And also it depends on which state or province you are in, there are government incentives to help first time home buyers. Check with your Realtor. Click here to ask http://www.flaherty.ca/gold_askexpert.asp
- What is a good area (neighbourhood) to move to ?
Well to start, a good area usually costs more. Your Realtor will be able to indicate good areas from bad ones. Also ask your Realtor to point out future government zoning changes nearby that might give a neighborhood great appreciation in the near future, i.e.. Government newly-approved mall nearby, or new freeway (highway) planned.
- What are other ways to know if a neighbourhood is good or bad ?
Ask your insurance agent, drive the neighbourhood, speak with some residence or go to a local police station and find out. Ask them the crime rate statistics to compare with other neighbourhoods.
- Education is important to me as a parent. How do I know if the school in the area is good ?
Look under school boards and other similar organizations from the internet or library. See how that school and teachers were ranked. See if any awards were won in the past. Ask you Realtor about the school reputations in the area.
10. Should I pay down my mortgage when I have extra money?
- If you live in the United States, it might not be a good idea, because mortgage interest is deductible from annual income. That means you pay less income tax for the year and you could earn more by investing your money elsewhere.
- If you live in Canada, mortgage interest is NOT tax deductible So, you should use the extra money to pay down your mortgage principle.
11. Between stocks and properties, which one has higher risk ?
The value of stock can go down to zero. Residential properties especially your own home will appreciate. In a slow market it may take longer to achieve any kind of appreciation. The amount of loss or appreciation will depend on when you purchased the property and if you paid fair market value or not. This is where the expertise of a professional Realtor would come in handy to provide you with expert advice.
12. How can I be sure to get top dollar for my house when I sell it ?
i. Interview at least three Realtors and be sure to ask these questions. Click here http://www.flaherty.ca/agent_questions.asp
ii. Be sure to get the best on-line representation of your house. Read the blog here titled Welcome / The real estate secret.
Here is a sample of my tours that are linked directly into the MLS listing. http://flahertytours.ca/72baybrook.htm
13. What areas do you service ?
I service Peel Region, Dufferin, Wellington and some surrounding areas. These area include Brampton, Caledon, Orangeville, Shelburne, Alliston, Dundalk, Alliston, Erin, Mississauga and Georgetown.
14. Will the HST apply to resale homes
i. No, not resale homes in Ontario, but it will apply to services such as lawyers fees, real estate fees, home inspectors etc.
ii. Yes, it will apply on the cost of a new house. ( A really good reason to make your real estate investment a resale )
15. How often is Realtor.ca updated ?
Realtor.ca or mls.ca ( same thing ) is a national database of mls listings. It is not the actual mls data base. Hundreds of real estate boards across Canada upload data to Realtor.ca The uploads are generally done every 24hrs, but depending on weekends and holidays it can be up to 72 hours out of date. In order to learn about the newest hottest listings matching your specific criteria in Orangeville, Caledon, Brampton Shelburne join my VIP buyer program. All new mls listings matching your specific criteria will be emailed to you long before they are even uploaded to Realtor.ca . Click here to join http://www.flaherty.ca/vip_buyer.asp
Kevin Flaherty
Web: http://Flaherty.ca
E-mail: Kevin@Flaherty.ca
Direct: 1-877-352-4378