Matrimonial Separations and selling Real Estate for residential transactions

The information below was forwarded to me and I thought you may find it of interest.

Thank you,

Mark

When acting for separating spouses on the sale of a matrimonial home where only one of the spouses is on title be sure to confirm the status of the marriage before the agreement is executed.

In the event the spouses have been living separately before the agreement, and a formally executed Separation Agreement is not in place, the consenting spouse (i.e. the non-titled spouse) must sign the consent clause. This is because he/she still retains a right in the property as it was a matrimonial home.

By ensuring that the spouse signs consent you potentially eliminate contention or backlash from unresolved family law matters to the real estate transaction.

Generally speaking always remember to ask if your client has a spouse who will be consenting to the agreement as supposedly “happy” families have been known to contend a sale on the grounds of non-execution of the consent clause.

The OREA form of Agreement of Purchase and Sale contains the Family Law Act Warranty. Once you become aware that consent is required remember to have the Spousal Consent section at the end of the agreement executed by the spouse before an eligible witness.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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What is best? The stock market versus real estate investing

Hello,

The bull market has been running up the high Dow Jones and TSX and other markets for some time now and many people feel they need some pessimism in order to cool it down a little since the rise in the markets was too high and over a short period of time too fast for most of the market to absorb the huge influx of money.

Maybe it's time to sell your stocks or mutual funds and sit on the sidelines for a while.

Only time will tell.

I continue to feel that real estate is a very good long term leveraged investment, tenant pays off the property, you get a tax write off.

Here is a good "real life" example of how you can be financially secure when you are 60 years old.

Imagine you bought just one townhouse investment property when you were 40 years old for $250,000

You put $25,000 downpayment and your mortgage and tax payments were $1500 per month for 20 years and the rent payments were $1400 per month for 20 years

It may cost you $100 per month out of your pocket plus another $100 per month for regular maintenance and incidentals, thus $200 per month or $2400 per year but you got $1000 of that back on your taxes so it really cost you $1400 per year or $28,000 over the 20 years and ...

Imagine you are now 60 years old and you say, honey, we need some money to travel and buy things for our children and ourselves and enjoy life since we are now 60 and you sell that investment property for at the least $300,000

Your adjusted cost base, (your total cost of your investment property) is initial cost plus additions which is about $284,000 (250000+28000+4000 land transfer tax and legal fees to buy and sell it) less costs when you sell equals a capital gain of $16000 which you would pay about $2000 income tax so now you have $288,000 EXTRA cash to spend on you and your family for 20 years of owning that investment property, piece of cake!

This is assuming that the property value increases only 20% over 20 years. If history repeats itself, then the property should at least double if not triple in value in 20 years, but let's be super-conservative with our estimates and say it doubles, even with capital gains tax on half the profit you would still end up with about $455,000 (250000+250000 less about $45000 capital gains tax)

Now, and here is the kicker, if you bought two properties at 40 and did the same thing you would end up with $910,000 in your bank account at age 60

Almost $1MILLION

It does not matter how much inflation we have over the period from now until 20 years from now, $910,000 in your bank account is still almost a million dollars no matter how you look at it

If I had $910,000 today versus $910,000 back in 1989 I would still have a heck of a pile of money and freedom to do the things I want to do, inflation or not.

1989 was not that long ago, so 2029 is not as far in the future as it seems, it will be here for you sooner than you think and if you don't start doing something about it now, you won't have the $910,000 in your bank account or anything for that matter in 20 years from now

You must take some action, get off your butt and do something about it today. Beg or borrow that $25,000 today, buy that townhouse today for $250,000 and sit on it for a measly 20 years, only 240 months and you are done. If you can do it and surely if you can purchase two investment properties now, you'll be set for the balance of your life

I'll even make it easier for you, buy one or two properties as I have outlined above and then let me manage them for you for a small fee and you can literally sit back and enjoy the benefits of your long term investment without lifting a finger for the next 20 years. Want to know more about property management?

Sound like a plan for you? Then let's just do it!

http://www.mississauga4sale.com/property_management.htm

I wish you All the Best to you and your family!
Mark

Rental Properties in Mississauga and the GTA

I was asked:

Hi there,

Do you update your rental list regularly on your website? I have been back many times to check but everything listed says it is already rented. Please advise how often this is updated so that I know when to check

Thanks

L.

Hi L.

Yes, I update it all the time. You must be going to an older page.

You need to browse to this page http://www.mississauga4sale.com/listings.htm and near the bottom are the rentals

or you can click the link near the top that says

Are you looking for Rental Listings?

and this will automatically take you to the bottom of the page referenced at

http://www.mississauga4sale.com/listings.htm#rentals

I hope this helps.

What are you looking for, I have 4 rental properties right now available

Thank you,
Mark

What's a Den?

Peopole ask me

Hi:

This is going to sound weird, but what is a den? And does it have a door that gives you privacy?

G.

thankyou

Hi G,

Yes, usually a den has a separate door to it. It's a separate room with a door and NO closet, that's why they call it a den rather than a bedroom. Many dens are open, people close them off with one wall, add a door and it's a den or another bedroom.

Hope this helps,

Mark

Leasing and new to the country, how can you secure a tenancy?

I have many requests for rental properties from people who are new to the country. They are new immigrants and want to lease for one year, and people ask me how I would handle this because they have no Canadian credit check (none), employment (none), but they have enough money to rent for the next for year

My answer is in these cases tell these people that they will probably have to put up first and maybe last 3 or 4 months upfront to secure a rental

I've had some pay for the entire year upfront

You could also have a Guarantor , someone who lives here now

Hope this helps
Mark

Mississauga perspective on Real Estate Finance and Mortgages

This was an interesting article about mortgages and real estate financing,
Enjoy! Mark

Subject: Mortgage and Real Estate Finance

I enclose details of our report on mortgage and real estate financing.

US Mortgages, the largest fixed income market in the world, have recently
turned into the latest distressed sector, in the midst of declining house
prices, deteriorating fundamentals, and limited liquidity.

Understanding the nature of this complex structured market, and appreciating
its subtleties, is a prerequisite for taking advantage of the current
dislocation, while avoiding its pitfalls.

Although the difficult environment is likely to continue, everyone who has
been in the market through its gyrations knows that times of trouble can
often spell opportunity for the smart investor.

There are Mortgage and Real Estate Finance books on the market that can give
you an in-depth overview of both the primary and secondary mortgage market.

They will provide a much-needed analysis of the latest innovations in the
market, and serve as a crucial guide to taking advantage of the current
environment.

These books cover areas such as:

- History of the Market from the Great Depression till today
- Loan Origination and Underwriting
- Structures used in Securitisation and Arbitrage
- Agency Mortgage Market and CMOs
- Alt-A and Sub-prime Market
- Non-traditional Mortgage Products
- Real Estate Indexes and Trading
- Modelling of Prepayments and Credit
- New Resources for Mortgage Analytics
- Risk Management of Mortgage Securities
- Investing and Opportunities in Mortgages
- Rating Agencies' Perspective
- Servicing in a Distressed Environment
- Regulatory and Policy Issues

If you want more information on this or other books like this, please send
me an email.

Thank you,
Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
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The bank of Canada is keeping rates where they are

The bank of Canada is keeping the prime interest rate at this ultra low
level at least until next year

The bank of Canada his decision today to keep the interest rate at these
altra low levels could have a serious negative impact on the Canadian dollar
which dropped almost 2 points today in trading on the world market

If the Bank increased the rates it would have serious impact and apply
upward pressure on inflation

They are trying to keep inflation low as well as they don't want our dollar
to reach par with the US dollar

The Bank of Canada is stating intrest rates will stay this low until at
least late spring next year.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
Best Mortgage Rates
<http://www.mississauga4sale.com/mortgage-rates-mark.htm> Current Home
<http://www.mississauga4sale.com/TREBprice.htm> Prices Search MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm>
Newsletter
<http://www.mississauga4sale.com/newsletter/latest_newsletter.htm>
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
* BUS 905-828-3434
* FAX 905-828-2829 *CELL 416-520-1577
* E-MAIL <mailto:mark@mississauga4sale.com?subject=Mississauga Real Estate
Information Request> : mark@mississauga4sale.com
<mailto:mark@mississauga4sale.com?subject=Mississauga Real Estate
Information Request>
Website <http://www.mississauga4sale.com/index.htm> :
<http://www.mississauga4sale.com/index.htm> Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick
Over-The-Net Home Evaluation ?
* Power of Sales and Foreclosures
<http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm>
* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line
<http://www.mississauga4sale.com/popupquestion.htm> Real Estate Newsletter
sign up
* See seasonal housing patterns
<http://www.mississauga4sale.com/TREBavg1995date.htm>
* Would you like me to send you a 2009 Calendar
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Mississauga and latest Prime rate and five year fixed rates currently 3.68%

This is another great article about the current mortgage interest rates and
why they are at current levels and what the future holds.
Enjoy,
Mark

Good afternoon,

As expected, the Bank of Canada kept their overnight rate unchanged at 0.25%
(meaning the prime lending rate remains unchanged at 2.25%). With the
economy starting to show some signs of recovery and with the real estate
market as strong as it is, the Bank of Canada would have likely raised the
rate this morning if it were not for our strong Canadian dollar.

Raising mortgage interest rates would send our dollar higher, therefore
doing damage to our economy. As long as the Canadian dollar remains high,
we can expect the prime rate to stay fairly low and there is some
speculation now that the prime rate may be left unchanged beyond the BOC's
commitment to hold it to mid 2010.

With most major lenders pumping their 5 year fixed mortgage rates up by as
much as 35 basis points last week, there are still many rate deals available
for your clients. It still amazes me just how many homebuyers go to their
bank and accept whatever rate they are quoted without actually taking a look
at other options that could save them thousands of dollars. For example,
most banks are offering a 'discounted' 5 year fixed rate of around 4.35%.
With a mortgage amount of $300,000 and an amortization of 35 years, the
monthly payment would be $1,384.88 at 4.35% Let's now compare this with
the lowest available market rate for a five year fixed, which is 3.68%.
For the exact same mortgage amount, your monthly payments would only be
$1,266.45 saving the client $118.43 per month or a whopping $7,105.80 over
the 5 year term! Now, this 3.68% rate is for closings within 30 days
only, and comes with limited prepayment privileges of 5% per year, so it may
not be for everyone, however over 90% of homeowners never take advantage of
their prepayment options anyway. With a 5% prepayment privilege, they can
still pay up to $15,000 toward their mortgage without penalty using the
above example, so does it really make sense for you to PAY just to have the
OPTION to pay up to $60,000 more per year towards their mortgage? While
some people may have that kind of disposable income to throw around, I would
say that most don't.

Today's lowest mortgage rates:

1 year 3.68
2 year 3.20
3 year 3.50
4 year 3.85
5 year 3.68 (quick close, no frills)
5 year 3.84 (full prepayment options, 90 day close)

5 year ARM 2.15 (prime -0.10)
I hope this finds you Happy and Healthy!

All the Best!

Mark

Read more about:
<http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm>
Homes for Sale

* Interest <http://www.mississauga4sale.com/rates.htm> Rates

* Power of Sale Properties
<http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm>

* Price <http://www.mississauga4sale.com/TREBprice.htm> Trends

* or Search the MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm> 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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
Best Mortgage Rates
<http://www.mississauga4sale.com/mortgage-rates-mark.htm> Current Home
<http://www.mississauga4sale.com/TREBprice.htm> Prices Search MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm>
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
* BUS 905-828-3434
*mark@mississauga4sale.com
* Website : <http://www.mississauga4sale.com/index.htm>
Mississauga4Sale.com

* Thinking of selling in the next 3 to 6 months? Would you like a
Complimentary <http://www.mississauga4sale.com/internet-evaluation.htm> &
Quick Over-The-Net Home Evaluation ?

* On-Line <http://www.mississauga4sale.com/popupquestion.htm> Real
Estate Newsletter sign up

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<http://www.mississauga4sale.com/TREBavg1995date.htm>

<http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure.htm> Homes
for Sale

RBC feels our economy is on the rebound

This is another good news story from one of the major banks in Canada. RBC feels that our economy is on the rebound and should be moving at a very good pace in the next few quarters.

This is good news for a change!

Enjoy!
Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Canada’s economy set for rebound

Special factors took the steam out of Canada’s GDP in July, but the stage is set for a decent rise in August. The special factors limiting July’s output were the tepid rebound in motor vehicles and parts output, temporary closures in the mining sector, unseasonably cool weather that cut into utilities output and a strike by municipal workers.

In 2010, we forecast growth of 2.6% with consumer spending growing by 2%. While Canadian household balance sheets are sounder than in the United States, the sharp drop in asset values and continued debt growth during the recession produced a rise in the debt-to-asset ratio and contributed to debt as a percentage of disposable income hitting an all-time high. Rising financial asset prices and a rebound in real estate values suggest that these ratios headed back down in the third quarter but will still limit spending growth in the near-term.

Another solid gain in manufacturing sales combined with a return to more normal conditions in other industries will provide support to August GDP and will be sufficient to see Canada’s economy record a modest increase in the third quarter.

The Bank of Canada has made a "conditional commitment" of a 1/4 per cent overnight rate "at least through the end of June of next year". In a recent speech, Governor Carney reiterated that this commitment was conditional on the performance of inflation relative to the Bank’s target. Based on our economic

forecast, we expect that the Bank will follow the prescribed policy route, with 50 basis point hikes likely in both the third and fourth quarters of next year.

RBC comments on the economy

This is the latest report from RBC on the state of the economy

Enjoy!
Mark

ECONOMICS DIGEST

October 2009

Economy flatlines in July

GDP output stalled in July, disappointing forecasts for a 0.5% monthly increase. However, despite July's disappointing result, the spurt in manufacturing sales will likely be sufficient to see Canada's economy record a modest increase

in the third quarter.

Strong job gains and a fall in the unemployment rate in September indicate improvement in labour market conditions and support our view that the economy is emerging from recession.

Retail sales disappointed in July, falling 0.6% after a 1.1% rise in both May and June, but the healthy retail sales gains in May and June represented a sharp turnaround from the lacklustre sales from February to April and resulted in sales

being up 2% at an annualized rate at the start of the third quarter.

Housing starts were stronger than expected in September at an annualized 150,100 (market expectations 148,000). Although this was a 4.6% decline from 157,300 in August, housing starts are still up from a recent trough in April of 118,500.

The merchandise trade balance for August deteriorated to C$2 billion from a C$1.3 billion deficit in July. Upward pressure on imports and downward pressure on exports will likely result in net trade acting as a drag on economic growth through next year.

The headline CPI was flat in August and the year-over-year rate stayed in deflationary territory, rounding out three months of negative prints. The Bank of Canada’s core measure, which is reflection of underlying price pressures, continued to trend down and, at 1.6% year-over-year, was the lowest since July 2008.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?