Remember Real Estate Guru Tom Vu? Here are some quotes that someone sent me - you will laugh - what a character!

Someone emailed me these quotes from Tom Vu, not sure where they came from, but anyone who is over 35 (or younger real estate investors!) will appreciate these quotes.

Quotes from Tom Vu

• "Are you man enough to get off your lazy American ass and go to Vu's seminars?"
• "A lot of your friends will tell you, 'Don't come to the seminar. It's a get-rich-quick plan.' Well, tell them, it is a get-rich-quick plan because life is too short to get rich slow."
• "Tom Vu says his system is different than other experts'."
• "Okay. You've seen me make a lot of money. You've seen my students who are average people make a lot of money. Isn't is about time for you to go out and make a lot of money?"
• "There's two kinds of work in America: hard work and smart work. Which one are you doing now?"
• "This is not a country club! This is my house!"
• "Today I'm gonna show you how to drive a sports car. First, you need a lot of money!"
• "Don't listen to your friends. They're losers!"
• "Do you think these girls like me? NO, they like my money!"
• "At first I got lots of discouragement from friends and stranger who are loser! You know what these people kept telling me? They kept saying, 'Well Tom Vu, you a crazy nut, here you are, a poor immigrant, poor minority, speak no English, no contact, on and on, and you trying to be rich in America! You crazy, man! Look at people out there! They smarter than you are, they not even rich! Who are you to try?' And you know what? I have to keep telling these people every time, I kept saying, 'You are loser! Get out of my way! I make it somehow!'"

You can watch part of his cheesy TV commercials and read more about Tom Vu at this page Tom Vu page

Here is some insight from a seminar attendee:

Vu's main strategy was to "control," rather than own, real estate. So you would go out looking for distressed properties, (foreclosures and such) and offer to buy these houses at incredible discounts. He claimed to never offer more than 50% of market value, but said it would depend on whether it was a buyer's or a seller's market how much your discounted offer would be.

The desperate owner would be happy to just get out of the property without ruining his credit, so he takes your offer happily. In your offer, you write that the agreement is between the seller and you "or assigns". Then you offer ten bucks as a down payment to make the contract legal ("exchange of consideration"). Your closing date is a couple of months hence. In addition, you tack on a whole pile of whim-and-fancy clauses, such as "this deal is subject to the final inspection and approval of the buyer before closing."

During the time before closing, you find a buyer to assign your interest in the contract to. Selling the place will be easy, since after all, you got it at a huge discount in the first place. You walk away at closing with a hefty profit. Unlike the vast majority of seminar attendees, I actually tried for a long time to do this in my neck of the woods, British Columbia, Canada. I failed miserably. I encountered the following realities:

1. Even with distressed properties, offering to buy a property that far below market value was a joke (I was trying 80%). I was laughed out of most negotiations…

2. Many of these properties were over financed, and even if they weren't, there was no desperate bank mandate to unload these non performing assets at all costs. Generally, even in foreclosure sales, the owner or later, the bank, wanted fair market value.

3. Whim-and-fancy clauses were not acceptable to anyone I dealt with.

This site is found at this page

Enjoy!

Mark

Read about Real Estate Foreclosures Investing

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com8 Website : Mississauga4Sale.com

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How to make money in real estate in the GTA

There is one sure way to make money in real estate in our area of the GTA, buy a property, rent it out, hold it for at least 4 to 5 years.

Not only will you gain as your mortgage principal amount decreases during that time period as the the tenant is paying down your mortgage you also get to enjoy the increase in value of the property over time = profit.

It really is as simple as that.

All the Best!
Mark

The pros and cons of owning real estate

Read about my personal story of how to get that mortgage paid off quicker.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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It was the highest October on record for MLS® home sales

Highest October on record for MLS® home sales

OTTAWA November 15th, 2007 MLS® resale housing activity in Canada's major markets had their strongest showing in October compared to any other year on record and are on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national MLS® sales activity rebounded to 28,966 units in October 2007, up 1.3 per cent from levels recorded in September. The rebound follows three consecutive monthly declines since sales peaked in June, and reflects a rise in activity in Toronto, Edmonton, Hamilton-Burlington, Victoria, Montreal, Quebec City and Winnipeg. Higher activity in these markets more than offset sales declines in Calgary, Vancouver, Saskatoon and Sudbury.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in October compared to the same month last year. Transactions posted year-over-year gains in every month except September this year, putting activity on track for a new annual record. MLS® home sales activity for the year-to-date in October totaled 319,411 units, an increase of 8.6 per cent compared to levels for the first ten months last year. Year-to-date transactions continue running ahead of year-ago levels in nearly all major markets.

Seasonally adjusted n ew MLS® residential listings edged down 0.2 per cent month-over-month in October 2007 to 49,497 units. This is the fifth highest monthly level on record. New listings receded from their peak in Calgary, and eased to their fourth highest level in Edmonton. The decline in new listings in these markets more than offset a rise in new listings in Toronto and Montreal.

"The trend in new listings shows there is no panic selling in Canada's housing market," said CREA President Ann Bosley. "It is important Canadians understand the differences between the Canadian and U.S. housing markets, and their local REALTOR® can provide that information."

CREA's MLS® revised market forecast for 2008 indicates a gradual slowdown in the re-sale housing market nationally, but MLS® sales volume will remain at near record levels. "The MLS® residential average price is forecast to set new records in all provinces next year, but those increases will become smaller as the resale housing market becomes more balanced in 2008," Bosley added.

The monthly rise in sales activity in October 2007 caused the resale housing market to tighten a little compared to the previous month. Winnipeg, Regina and Hamilton-Burlington were the tightest of Canada's major markets in October, while Edmonton, Calgary and Windsor were most balanced.

The major market MLS® residential average price rose 10.6 per cent year-over-year to $333,544 in October the sixth consecutive month that the increase exceeded ten per cent. Average price reached the highest level on record in Regina, Saskatoon, Toronto and Montreal.

"More than half of major markets posted a monthly increase in activity," said CREA Chief Economist Gregory Klump. "By the end of next month MLS® sales activity is likely to exceed the annual sales last year."

"Negotiations still favor the seller in nearly all major markets," said Klump. "This suggests resale housing demand remains on a strong footing, and that price increases will continue to exceed overall consumer price inflation."

MLS® Major Market Residential Summary:

				(Unadjusted Data)
		September 2007	% change	October 2007	October 2006	e
Dollar Volume ($ millions)	9,632.5	9,408.6	2.4	9,475.3	7,963.1	19.0
Unit Sales	28,966	28,587	1.3	28,408	26,407	7.6
Average Price ($)				333,544	301,552	10.6
New Listings	49,497	49,580	-0.2	50,880	47,773	6.5

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 92,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at http://www.crea.ca/.

Read more about local GTA Price Trends

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Fairness Prevails - New Condo at Yonge and Bloor creates some chaos

Line dwellers get to go home as condo sales start

From Wednesday's Globe and Mail November 14, 2007 at 3:37 AM EST

A group of mostly young people who spent more than a week standing in line outside Toronto's most hyped real estate project finally got to go home yesterday, handing their place in line over to a phalanx of high-powered real estate agents and investors.

Units at the One Bloor Street luxury condo officially went on sale yesterday, with hundreds clamouring to purchase condos that are expected to fetch up to $8-million.

Since Monday of last week, some real estate companies had paid people thousands of dollars to stand in line outside the sales centre on their behalf, creating a mini-slum of sleeping bags, umbrellas and take-out containers.

For most of the past week, the paid line dwellers used a list to mark who held what spot in line, but the whole system descended into a shouting match yesterday morning when two real estate agents decided to simply walk up to the front of the line, ignoring the masses behind them.

"Two agents from Milborne Real Estate tried to jump the line," said Elliot Rudner, a 24-year-old who made about $2,000 for lining up. "They believed the list had no authority."

About half a dozen police officers were on hand to keep the scene from turning chaotic, but things calmed down after the builder, Bazis International, decided to honour the list.

Over the course of the morning, the line-up dress code shifted from jeans and scarves to silk ties and dress shirts, as real estate agents took over from their surrogates.

In all, more than 200 numbers were handed out to the madding crowd lining the pavement outside the luxury condo's sales office at Yonge and Bloor. Each number went to a real estate agent required to requeue later yesterday evening, with Bazis staff accepting offers straight through the night.

The developer expects to quickly sell out of lower-priced units, which start at the $300,000-plus level for a 550-square-foot one bedroom.

The highest priced units are penthouses of more than 3,000 square feet, most of which are in the $8-million-plus price range.

In the case of One Bloor, many committed and potential buyers are likely investors from other countries, said a real estate professional who asked not to be named.

"They are looking for a good safe investment in a good safe country ... and this is one of the best-known corners in Toronto, right at the edge of Yorkville," he said.

These are strong selling points for speculative buyers who may be inclined to sell their units well before they are completed in 2011 if they appreciate enough in price, the real estate professional said.

While the development is a positive for the city, the hype that's been stoked by the clamouring lineup of real estate agents is over the top, he said.

"Frankly, I'm embarrassed by what's going on here," he said.

NB: Apparently prices were increased after the first hour of sales, the builder increased the price about 30% across the board, so a $300k condo went up to $420k in one hour, lucky to those first in line!

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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CMHC eases down payment rules for properties

CMHC eases down payment rules for properties

Move risks overheating already hot housing market

You have to wonder what David Dodge will be thinking this time. Just over a year ago, the Bank of Canada governor met with Canada Mortgage and Housing Corp. because of his fears exotic mortgages were juicing an already robust Canadian housing market. Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

The Crown corporation, which controls about 70% of the mortgage insurance market in Canada, has quietly introduced changes that lower the down-payment threshold for an investment property. Instead of needing 15% down, Canadians will be able to buy a second property -- not to mention a third and fourth and fifth -- with no money down.

"These enhancements will ensure continued supply of affordable rental accommodations across Canada," said Pierre Serre, vice-president of insurance products with CMHC.

Critics charge CMHC once again has moved into risky territory, the last time being its decision to allow Canadians no money down on a principle residence. "Look at the fee, anytime it's that high, you know there is a lot of risk," said one senior mortgage industry observer.

The mortgage insurance fee for the new product is 7.25% of the total amount of the loan. So a $300,000 mortgage would have a $21,750 mortgage insurance fee.

Instead of paying the fee up front, CMHC will allow that fee to be added to the overall mortgage which can be amortized over as many as 40 years. Based on 5.8% interest, the current discounted rate for a five-year term, it would cost just over $1,700 a month to carry that $321,750 mortgage.

By law, any consumer with less than a 20% downpayment must buy mortgage insurance if they are borrowing money from a financial institution covered under the Bank Act.

None of CMHC's competitors are coming close to this new offer. Genworth Financial Canada -- the other dominate player with about 30% of the mortgage insurance market -- requires investors to have at least 10% down.

Back in July, 2006, Mr. Dodge demanded a meeting with the federal crown corporation. He was concerned about products like interest-only mortgages which give consumers the option of not making a principle payment for the first 10 years of a mortgage.

Mr. Serre said CMHC did consider the issue of whether the changes could overstimulate the market. "We look at those kind of considerations all the time," he said, adding that to get a loan consumers will have to meet certain criteria in terms of their overall debt load. "We're not trying to get people into situations they can't manage."

Some question whether there was any need for the latest change, given how strong the market in Canada remains.

The Building Industry and Land Development Association said this week condo sales in Toronto - the largest market for new high rises in North America -- were up 31% over the first nine months of the year from a year earlier.

"I'm not sure why CMHC is relaxing the rules, the logic escapes me," said Stephen Dupuis, chief executive of BILD. "The market is strong. I look at what is happening in the United States and wonder if there is a need to be so free with credit."

The real reason for the new program, suggest some commentators, is CMHC trying to fend off competitors in the marketplace. In a constant battle with Genworth, CMHC is also facing up to four new mortgage insurers who have applied to do business in Canada or are already licenced to do so.

"There are competitors in the marketplace that didn't exist before. They are reacting to competition that hasn't even materialized yet," said Mr. Dupuis. CIBC World Markets senior economist Benjamin Tal said the latest changes by CMHC are probably just the beginning. "The genie is out of the bottle, this mortgage market is starting to move. Over the past 16 months we've seen more changes than the past 30 years," said Mr. Tal. Garry Marr, Financial Post
Published: Wednesday, October 24, 2007

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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TRUMP TOWER - Trump fired up about Toronto tower

Trump fired up about Toronto tower

The Donald flew into Toronto in his private jet today to break ground on the 57-storey Trump International Hotel & Tower.

"This will be one of the great buildings in the world," New York developer Donald Trump told a small tented audience on the Bay St. site of the proposed skyscraper at the intersection of Bay and Adelaide Sts. in the city's financial district.

This artist's rendering shows the Trump International Hotel & Tower at Bay and Adelaide Sts. in Toronto, in between the Scotiabank and Bank of Montreal buildings.

Outside the sites, onlookers lined Bay St. with cameras hoping to catch a glimpse of the star of television's The Apprentice.

"When we come back here in two years, everyone in Toronto will be very proud."

Trump said more than $300 million in units had already been sold. The long-awaited building the developer's first in Canada will have 118 residences and 261 hotel suites.

There has also been deep skepticism among some in the real estate community that it would ever be built, since it has taken three years to break ground in a hot condominium market.

"We wanted to take our time to do this right. Even with a great location like this, if you don't build the right product, it won't work," said Trump.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX

Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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RBC reports that our Economy forges ahead in the second quarter

Strong Signals - Economy forges ahead in the second quarter

Second-quarter GDP grew by a stronger-than-expected annualized 3.4%, following an upwardly revised 3.9% gain in the first. The monthly 0.2% gain in June was also an upside surprise, with markets expecting no gains. Strength late in the second quarter suggests strong momentum going into the third.

Employment increased by 23,300 in August, beating the 11,300 increase in July.

The unemployment rate held at 6%, the lowest level since 1974 and wage growth continued to be firm. The average hourly wage rate for permanent workers rose 0.9% and was 3.8% higher than in August 2006, the fifth month of solid monthly gains and the fastest pace of increase since August 2006.

Retail sales declined 0.9% and 0.3% excluding autos. However, real retail sales advanced at an annualized 10.8% in the second quarter, the fastest quarterly pace since the fourth quarter of 2001.

Housing starts were stronger than expected in August, coming in at a 226,500 annualized rate, firmer than market forecasts for 220,000 units and faster than July's 215,600 unit rate, indicating that Canada's housing market continues to perform well, backed by strong employment gains and income growth.

Canada's merchandise trade surplus shrank to $3.7 billion in July and June's surplus was revised down by $1 billion to C$4.3 billion. Exports increased by 1.4%, while imports rose by a sturdy 3.5%, pointing to the sector acting as a weight on the pace of economic activity in the third quarter.

The year-over-year all-items inflation rate held steady at 2.2% in July, while the Bank of Canada's core inflation rate slipped back to 2.3% from 2.5% in June. However, despite the dip in the core inflation rate, it has held above the Bank's 2% target for 11 months.

Courtesy of Dawn Aspinall RBC Economics Research

Read more about the current state of real estate in the GTA

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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The latest from RBC about Financial market stress

Here is the latest from RBC about Financial market stress — not economic fundamentals — to prompt Fed rate cut as of August 22, 2007

We have revised our outlook for the Fed funds rate and are now calling for a 50 basis-point rate cut as policymakers work to alleviate liquidity concerns that have recently emerged in financial markets.

On August 17, the U.S. Federal Reserve reduced the discount rate in order to “promote the restoration of orderly conditions in financial markets.” The Fed has also updated its economic outlook, stating that “although recent data suggest that the economy has continued to expand at a moderate pace” volatility in financial markets has “the potential to restrain economic growth going forward.”

Since these risks have not yet abated, we expect the Fed to cut the Fed funds rate to 4.75% at or before the September 18 FOMC meeting, supplemented by other liquidity-enhancing measures, including possible additional changes to the discount rate and the continued injection of temporary reserves, until financing markets stabilize. The Fed is likely to keep the amount of easing limited, however, since the aim of this policy change is to ensure that financing remains accessible.

These Fed measures would also limit the extent of any damage to economic activity going forward. The combination of weaker equity markets and tightening credit conditions implies slightly greater restraint on business investment in the near-term. However, the extent of the restraint will be limited by large cash balances retained by businesses. The weakness in housing is likely to persist longer than previously expected.

Consumers will be contending with both falling housing prices and weaker equity prices that will likely moderate real spending growth to a pace slightly below 2.5% during the second half of this year. One main offset is that strong global demand will keep U.S. exporters in good shape. With import growth lagging, the trade sector will provide decent support to growth.

Inflation risks remain, making Fed reluctant to prime the system further
This growth outlook will not prevent core inflation from holding just above 2% for the remainder of 2007 and the headline CPI rate is expected to move higher as the big decline in commodity prices in the latter part of 2006 will likely not be repeated. Pipeline price pressures remain as evidenced by the elevated level of the ISM price indices and one-year inflation expectations are holding above 3% according to the University of Michigan consumer sentiment survey.

While the Fed has acknowledged that the “downside risks to growth have increased appreciably,” they were mum on the repercussions for the inflation outlook, suggesting that they still view the risks that “inflation will fail to moderate as expected” as remaining substantive.

Rate decline in 2007 will be more than reversed in 2008
Our baseline assessment for growth going forward is that the combination of tight labour markets, an easing in credit conditions and a return to stability in equity markets will limit the downside risk. While the financial market fallout may curb growth in the second half of 2007, more stimulative monetary policy in the near-term makes us confident in our 2.9% real GDP forecast for 2008. Importantly, a more stimulative monetary policy will keep alive the risks that core inflation will remain above 2% meaning that the Fed will look to reverse the rate cut.

By the second quarter of 2008, the period of risk reassessment and high liquidity needs is expected to have passed and the Federal Reserve will be looking to reverse the easing of mid-2007. Given our view that the economy will expand at about its potential pace in 2008 and that core inflation measures will remain above 2%, we expect the Fed to shift policy to a less neutral stance, with 75 basis points of rate increases expected by the end of 2008 to put the Fed funds rate at 5.5%, just a notch below our previous 5.75% year-end 2008 forecast.

Our revised Fed forecast calls for market interest rates to be lower in 2007 than in our previous outlook. We are forecasting the yield on the two-year UST at 4.5% at the end of 2007 with the 10-year yield forecast at 4.85%. This compares to our previous forecast which looked for the two-year yield to rise to 5.20% and 10-year rate to 5.35% at the end of 2007. Our forecasts for 2008 are little changed with the two-year at 5.55% and the 10-year rate at 5.75% at the end of the year.

Bank of Canada to stay on the sidelines; focus shifts to liquidity measures

Canada’s economy remains in healthy shape with second-quarter real GDP growth of 3% expected to be announced on August 31, the second consecutive quarter of above-potential growth. The retail spending report for June highlighted the economy’s strength with real retail sales growing at a stellar 10.7% annualized pace in the second quarter. Labour market conditions are tight and wage growth has accelerated sharply in the past three months. Inflation remains elevated with both the Bank of Canada’s core rate and the all-items inflation rate holding above the 2% target. With the economy running in a state of excess demand, housing price inflation strong and wage growth accelerating, inflation pressures are expected to remain elevated.

Against this fundamental backdrop, the Bank of Canada would normally be raising interest rates to ensure that inflation rates fall back to the 2% target. However the significant dislocation in the short-end of Canada’s financial market and weakening in equities during the period of global financial market volatility will likely keep the Bank concentrating on maintaining liquid markets so that financial market volatility does not spill over into the real side economy.

Worries about the spillover from the financial markets into the economy will likely keep interest rates lower than in our previous forecast. We have shifted the timing of the next Bank of Canada rate hike in our forecast to the first quarter of 2008, a change from our previous view that the Bank would raise the policy rate by 25 basis points on September 5. Interest rates will remain lower as investor risk aversion will result in continued buying of safer government securities. The two-year rate is forecast to end 2007 at 4.5% and the 10-year rate 4.70% (from 5.10% for both the two-year and 10-year yields in our August 1 forecast).

In early 2008, the economy’s strong momentum and the waning of risk aversion will see the Bank of Canada move to tighten policy, with the overnight rate forecast to rise to 5.25% over the first half of 2008 (up 75 basis points). Two-year yields are forecast to rise to 5.3% with 10-year rates peaking at around 5.45%, little changed from our previous forecast.

This article is courtesy of RBC Economics and research

You may wish to read more about our markets




For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Condo's continue to be very HOT in Canada

It's Still Condo Mania in Canada

Nearly half of all new home sales in Toronto in April were high-rise condominium suites, lofts and stacked townhouses. Across Canada, from 2001 to 2005, condo starts have posted an annual increase of more than 16 per cent, accounting for almost one-third of new home construction. Despite the amount of new product available, in most parts of the country, it's still a sellers' market.

A recent survey by Ipsos-Reid for TD Canada Trust, and a follow-up report by TD Economics, says both the short and long-term outlook for condos in Canada is good. It says Canada's healthy labour market, low interest rates and an aging population will contribute to brisk condo sales.

"The hottest markets, notably Calgary and Vancouver, will see some cooling off from dramatic and unsustainable highs last year, but overall conditions will remain healthy and activity will be high," says Craig Alexander, VP and deputy chief economist for TD Economics, and author of the study.

He predicts that during the next 18 months, the pace of condo starts will decline by about six per cent and resale prices will "cool out, while still remaining quite elevated." He expects Calgary will see price growth drop from 26.6 per cent last year, to 10.5 per cent in 2007/08. He forecasts Edmonton prices to drop from 16.6 per cent to 12.5 per cent, and Vancouver prices to go from a 16.3 per cent increase last year, to 10.5 per cent this year.

In the more stable central and eastern markets, Alexander calls for Toronto condo prices to increase by 4.2 per cent this year, while Ottawa price gains rise from 3.6 per cent last year to 4.5 per cent. Montreal price increases are expected to drop to 3.5 per cent from 6.4 per cent.

The survey found the top two reasons for preferring condos were lower maintenance costs and greater affordability. Alexander says that condo prices are almost half of the average price of detached bungalows in Vancouver, and roughly one-third less than the average price in Calgary and Toronto. "Given the rapid price increases in detached dwellings sustained over the last few years, condos may be the only option for some potential homeowners -- and many first-time buyers -- in selected markets," he says.

Other reasons for preferring condos are good building security, attractive design and environmentally friendly design/energy efficiency. Proximity to public transit, retail outlets and entertainment are also important factors for those looking for a condo.

The survey found that 39 per cent of Canadians would consider buying a new or resale condo, an increase of four per cent from a similar survey taken in June 2006.

"Looking beyond the near-term outlook, there is fundamental support for condos in the major Canadian markets from structural economic trends, including the aging population and the continued urbanization of the country," says Alexander in the report.

Older Canadians are attracted to condos as they downsize and look for less maintenance in their homes. The median age in Canada was 37 in 2001 and is expected to be between 45 and 50 by 2056. "This could create headwinds for real estate, which is influenced by demographic demand for housing, but the aging population could prove positive for condos," Alexander says.

While the demographic trend suggests slower population growth, Alexander says it is evident that cities will continue to grow faster than rural communities. In 1901, 37 per cent of Canadians lived in urban centres. By 1951 it was 62 per cent, and by 2006, 80 per cent of the population was living in an urban centre.

Rising traffic densities has led to urban renewal in the cities, which is expected to intensify in the years to come, Alexander says. "While condos are not solely located in cities, as evidenced by their presence in some resort settings, the bulk of condos are concentrated in urban centres, making them highly likely to benefit from the urbanization trend."

Despite the generally rosy outlook, Alexander says there are some risks for the condo market.

"The explosive price growth and the presence of speculation in the west have been sending off warning signals," he says. "But, if price growth moderates as new supply comes on the market and as eroding affordability dampens demand, a boom-bust cycle can be avoided.

"Meanwhile there is significant additional supply in the pipeline for Toronto from projects that are already underway, but are not yet completed. This could impact price growth, but so long as employment remains solid and interest rates do not rise significantly from current levels, there should be no problem absorbing the additional units," Alexander says.

Read more about Mississauga and GTA Condos



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Canadian Dollar is surging, many predicting par with US Dollar by end of 2007

Canadian dollar surges on expectations of rate hike; stocks mixedPublished: Tuesday, May 29, 2007 10:39 AM ET
Canadian Press: MALCOLM MORRISON
TORONTO (CP) - The Canadian dollar surged almost three-quarters of a U.S. cent Tuesday morning, charting territory last visited 30 years ago, after the Bank of Canada hinted at a rate hike "in the near term."
The Toronto stock market was little changed after posting gains for the last two sessions with energy stocks under pressure from a sharp drop in oil prices.
An investor watches the stock price monitor at a securities company Tuesday in Shanghai, China. (AP Photo)
The loonie was up 0.72 of a cent to 93.29 cents US - its highest level since September 1977 - after the Bank of Canada announced it's leaving its key interest rate unchanged at 4.25 per cent but warned of rising inflationm.
"There is an increased risk that future inflation will persist above the two per cent inflation target and that some increase in the target for the overnight rate may be required in the near term to bring inflation back to the target," the central bank said.
However, analysts were not convinced a rate hike is in the offing.
"I still don't believe the bank will have room to tighten given recent news of lumber mill shutdowns (due to the dollar) and increased opposition to currency appreciation by manufacturers," said Andrew Pyle, investment adviser at Scotia McLeod in Peterborough, Ont.
The currency has risen about 8.7 per cent this year, partly in the belief that the Bank of Canada will raise interest rates later this year to cool inflation. It has also been supported by a string of positive economic reports, higher commodity prices and corporate acquisition activity that has boosted demand for Canadian dollars.
New York markets were higher after consumer confidence bounced back unexpectedly in May.
Toronto's S&P/TSX composite index slipped 3.3 points to 14,070.44.
A big early mover was transport giant Bombardier Inc. (TSX:BBD). Its shares jumped over 10 per cent to $5.30 after first-quarter profit more than tripled to US$79 million, from US$24 million a year earlier.
The TSX Venture Exchange climbed 11.39 points to 3,237.52.
In New York, the Dow Jones industrials were up 25.6 points to 13,532.88.
The New York-based Conference Board said its consumer confidence index rose to 108.0 in May, up from a revised 106.3 in April, mainly because of "a more upbeat assesment of present-day business conditions."
The Nasdaq composite index rose 13.29 points to 2,570.48 and the S&P 500 index added 3.05 points to 1,518.78.
Also Tuesday, Standard & Poor's releases its home price index and the Dallas and Chicago Federal Reserves will report on regional manufacturing activity.
And on Friday, the U.S. non-farms payrolls report for May comes out.
The TSX energy sector lost 0.4 per cent as oil prices fell Tuesday, reflecting hopes that the inauguration of a new president in OPEC member Nigeria would contribute to stability in the market. Light sweet crude for July delivery fell $1.19 to US$64.01 a barrel on the New York Mercantile Exchange.
Suncor Energy was down 42 cents to $93.10.
Shares in Pacific Energy Resources Ltd. (TSX:PFE) rose eight cents to $3.22 after it announced it is paying US$448 million plus 5.5 million shares for all Alaska oil and gas properties and operations owned by Forest Oil and Forest Holding.
In other news:
-A consortium led by Royal Bank of Scotland said Tuesday it will launch a bid of 71.1 billion euros (US$95.5 billion) for ABN Amro, topping a friendly offer from Barclays PLC and pressing Bank of America Corp. for control of the Dutch bank's U.S. arm.
-The Wall Street Journal says telecommunications gear maker Avaya is negotiating with possible buyers, which may include Nortel Networks (TSX:NT). Nortel shares were up 36 cents to $28.11.
-FNX Mining (TSX:FNX) said drilling continues to expand its finding of "high-grade" copper, nickel, platinum, palladium and gold at the Levack footwall deposit in Sudbury, Ont. The report came a day after FNX shares jumped 10 per cent to a new closing high of $34.71 after the company quadrupled its resource estimate at properties other than the Levack footwall. On Tuesday morning, its shares rose 16 cents to $34.87.
Overseas, London's FTSE 100 index rose 28.8 points to 6,599.3.
Frankfurt's DAX 30 climbed 38.47 points to 7,777.67 and the Paris CAC 40 declined 10.43 points to 6,061.04.
In Tokyo, the Nikkei 225 index rose 84.97 points, or 0.48 per cent, to finish at 17,672.56 points.
In Hong Kong, the blue-chip Hang Seng Index fell 60.17 points, or 0.29 per cent, to 20,469.59.
Investors are expecting China to issue more tightening measures to cool the domestic stock market after the benchmark Shanghai composite index rose to a third consecutive record high. The Shanghai index ended up 1.5 per cent at a record close 4,334.92 as new investors continued to pour into the stock market.

More on interest rates



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Where can I find Power of Sale, Foreclosure and Tax Sale properties and information?

Another question that I receive is where can I find Power of Sale, Tax Sale and Foreclosure properties and information?

I am very familiar with Power of Sales, Foreclosures and Tax Sale properties. Have you read the information on my site at these pages? http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure-FAQ.htm

Are you signed up to receive my power of sale properties? http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

In my experience I have seen that people spend many weeks and months researching and learning about power of sales properties and then decide not to buy one due to the many uncertainties involved and the fact that you need the resources at hand to do the renovation work. Don't get me wrong, some people buy them successfully, just not that many.

Again, in my experience, there are two things you should do in real estate. Buy as expensive of a principal residence as you can to maximize your tax free asset. The other best thing to do is buy and investment property and hold it for at least 5 years to earn fairly easy profit.

I will help you in whatever area you decide.

Thank you,
Mark




For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Cottage purchase and 5% downpayment

Seeing friends and neighbours packing up for the cottage certainly has many families dreaming..... With a downpayment of 5% it's possible to be packing up the kids & pets.

CMHC will insure a property the borrower uses for vacation purposes as long as the property is occupied at some point during the year by the borrower, or by a relative of the borrower on a rent-free basis and meets CMHC's general property requirements including;

The property is located anywhere in Canada and is suitable for, and available for, year round occupancy; and
Properties located on an island must have year-round bridge or ferry access; and,
The borrower's ability to occupy the property must not be restricted or limited at any time. Properties with seasonal use or access, time share interests, life leases, or properties in rental pools are not eligible.

Under CMHC's Second Home product, an individual can be a borrower/co-borrower on a maximum of two CMHC insured homeowner properties, including a vacation home which meets the above criteria. CMHC's Second Home product can also be used to purchase a home for a family member attending college or university away from home.

No additional premium surcharges;
No additional underwriting requirements

Enjoy your summer and hopefully a cottage purchase is in your future!

More on rates and financing



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Agency in a real estate transaction - who is acting for who?

Agency in a real estate transaction explained

When working with a REALTOR, it is important to understand who the REALTOR works for. To whom is the REALTOR legally obligated?

In real estate, there are different possible forms of agency relationship:

1. Seller representation

When a real estate brokerage represents a seller, it must do what is best for the seller of a property.

A written contract, called a listing agreement, creates an agency relationship between the seller and the brokerage and establishes seller representation. It also explains services the brokerage will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a seller my have.

A seller’s agent must tell the seller anything known about a buyer. For instance, if a seller’s agent knows a buyer is willing to offer more for a property, that information must be shared with the seller.

Confidences a seller shares with a seller’s agent must be kept confidential from potential buyers and others.

Although confidential information about the seller cannot be discussed, a buyer working with a seller’s agent can expect fair and honest service from the seller’s agent and disclosure of pertinent information about the property.


2. Buyer representation

A real estate brokerage representing a buyer must do what is best for the buyer.

A written contract, called a buyer representation agreement, creates an agency relationship between the buyer and the brokerage, and establishes buyer representation. It also explains services the brokerage will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a buyer may have.

Typically, buyers will be obliged to work exclusively with that company for a period of time.

Confidences a buyer shares with the buyer’s agent must be kept confidential.

Although confidential information about the buyer cannot be disclosed, a seller working with a buyer’s agent can expect to be treated fairly and honestly.

3. Dual representation

Occasionally a real estate brokerage will represent both the buyer and the seller. The buyer and seller must consent to this arrangement in writing. Under this dual representation arrangement, the brokerage must do what is best for both the buyer and the seller.

Since the brokerage’s loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a dual agency relationship be properly documented. Representation agreements specifically describes the rights and duties of everyone involved and any limitations to those rights and duties.

4. Customer service

A real estate brokerage may provide services to buyers and sellers without creating buyer or seller representation. This is called “customer service.”

Under this arrangement, the brokerage can provide many valuable services in a fair and honest manner. This relationship can be set out in a buyer or seller customer service agreement.

Real estate negotiations are often complex and a brokerage may be providing representation and/or customer service to more than one seller or buyer. The brokerage will disclose these relationships to each buyer and seller.

REALTORS are governed by the legal concept of “agency.” An agent is legally obligated to look after the best interests of the person he or she is working for. The agent must be loyal to that person.

A real estate brokerage may be your agent—if you have clearly established an agency relationship with that REALTOR with a representation agreement. But often you may assume such an obligation exists when it does not.

REALTORS believe it is important that the people they work with understand when an agency relationship exists and when it does not—and understand what it means.

Who’s working for you?

It is important that you understand who the REALTOR is working for. For example, both the seller and they buyer may have their own agent which means they each have a REALTOR who is representing them.

Or, some buyers choose to contact the seller’s agent directly. Under this arrangement the REALTOR is working for the seller, and must do what is best for the seller, but may provide many valuable services to the buyer.

A REALTOR working with a buyer may even be a “sub-agent” of the seller. Under sub-agency, both the listing brokerage and the co-operating brokerage must do what is best for the seller even though the sub-agent may provide many valuable customer services to the buyer.

If the brokerage represents both the seller and the buyer, this is dual representation.

Code of Ethics

REALTORS believe it is important that the people they work with understand their agency relationship. That’s why requirements and obligations for representation and customer service are included in a Code of Ethics which is administered by the Real Estate Council of Ontario.

The Code requires REALTORS to disclose in writing the nature of the services they are providing, and encourages REALTORS to obtain written acknowledgement of that disclosure. The Code also requires REALTORS to submit written representation and customer service agreements to buyers and sellers.

Honesty and Integrity

Most real estate professionals in our province are members of the Ontario Real Estate Association (OREA) and only members of OREA can call themselves REALTORS.

When you work with a REALTOR, you can expect not only strict adherence to provincial laws, but also adherence to a Code of Ethics. And that code is very important to you because it assures you will receive the highest level of service, honesty and integrity.

Highest Professional Standards

Before receiving a real estate registration, candidates must successfully complete an extensive course of study developed by OREA on behalf of the Real Estate Council of Ontario. That is only the beginning: in the first two years of practice, registrants are required to successfully complete three additional courses as part of their articling with an experienced broker. In addition, all registrants must continue to attend courses throughout their careers in order to maintain their registration.

The information on this page has been provided by the

Ontario Real Estate Association.

Read more about Agency in Ontario



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Bank of Canada to raise rates in late 2007 and 2008 - from RBC

Bank of Canada to raise rates in late 2007 and 2008

Interest rate outlook

Bank of Canada to raise rates in late 2007 and 2008 Canada’s economy is picking up pace with first-quarter GDP growth on track to meet our 2.8% (annual rate) forecast. The economy expanded at a stronger-than-expected 0.4% monthly pace in February, double market forecasts for a 0.2% rise and faster than January’s 0.1% gain. The threemonth running rate clocked in at a 3.6% annualized pace, a solid pick-up from the 2.4% rate in January and sub-2% pace in the final six months of 2006.

Tight labour market conditions and growing incomes are supporting consumer spending and business spending remains firm. The rise in the Canadian dollar may dampen export demand but the slowing is likely to be limited by a strong appetite for commodities, while import demand may prove to be more robust than we had thought. While the trade sector may be a drag on growth in 2007, solid household and corporate balance sheets will more than make up for it. We expect Canada’s economy to grow by 2.5% in 2007 and an even faster 3% in 2008 – this is not new.

What is new is that Canada’s inflation rates, both the all-items CPI and the Bank of Canada’s core measure (CPIX) increased at a faster pace in the first quarter than policymakers expected and evidence is starting to build that these indices will remain elevated during the next few quarters. The all-items index increased at a 1.8% average pace in the first quarter and the CPIX rate at 2.3%, broadly in line with our forecast. Upward price pressures on a trend basis persist with the threemonth annualized gain in core CPI at 2.4% in March (see chart page 7), the fastest pace of increase in four months. We now view the risks that these inflation rates will hold above 2% in 2007 to be biased upward. While the Bank may tolerate higher inflation in the near-term, a persistent run above the target is likely to lead policymakers to view policy to be inconsistent with reaching their medium- term inflation goals. Also, we expect that any surprises to the Bank’s growth outlook will prove to be to the upside, meaning that the economy will move farther into excess demand rather than back to its productive capacity as the Bank expects.

See current Mortgage Interest Rates



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Banks applaud legislation to lower minimum payment needed for mortgage insurance

Banks applaud legislation to lower minimum payment needed for mortgage insurance


Saturday, April 21, 2007

TORONTO (CP) - Canada's big banks are applauding new legislation that lowers the required down payment for mortgages.

The federal government said Friday it is lowering the minimum down payment requirement for mortgage default insurance from 25 per cent to 20 per cent. The new legislation is part of Bill C-37, expected to be proclaimed next week.

BMO Bank of Montreal says homebuyers could save an average of $2,500 in insurance premiums, based on an average home price of $300,000.

"We see a number of customers scrambling to meet the 25 per cent down payment, in order to avoid paying the insurance premium," said Cid Palacio, Vice President, BMO Bank of Montreal. "These changes will allow those homebuyers to reduce their down payment and get into their new home faster."

The new limit also affects individuals who intend to refinance their mortgages.

RBC Royal Bank said a recent survey it did found 39 per cent of Canadians have borrowed against the equity of their home, by either refinancing their mortgage to a larger amount, or by taking out a home equity line of credit.

"Now, with refinancing at 80 per cent, we're making an extra five per cent equity available to our clients for their financing needs," said Catherine Adams, RBC Royal Bank's vice-president, Home Equity Financing.

Scotiabank said it will cover the cost of insurance paid by the few hundred customers whose high-ratio mortgages are currently being processed. These are customers of the bank who would have been exempt from default insurance under the new rules.

Under the existing Bank Act regulations, which have been in place for 40 years, a bank cannot provide a mortgage loan for more than 75 per cent of the value of the property, without having the customer purchase mortgage insurance. Bill C-37 raises the loan-to-value ratio requiring mortgage insurance from the current 75 per cent to 80 per cent.

More on mortgage rates



For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com