Wednesday, July 22, 2009

Longevity and long range planning

Hello:
This article just came through my email and I thought I would share it with you. It's very interesting. Makes you think that you had better make a "longer' range plan than first anticipated. I still feel real estate investment is the way to go, but many will not agree.
Only time will tell and by the looks of it, we'll have lot's of it!
All the best,
Mark



Tomoji Tanabe died in his sleep this past June 19th. A resident of Japan, he was the world's oldest man at 113. He drank milk every day, avoided alcohol, and did not smoke.

His successor as the world's oldest man was Henry Allingham, a resident of England who was also 113. Henry attributed his longevity to "cigarettes, whiskey and wild, wild women".

I'm pretty sure the secret to a long life is a large measure of luck.

When we are young we tend to think of life as a long journey with no end in sight. It is something we look forward to and we don't worry about it. As we approach retirement we still look forward to a long life but we start to worry about just how long it might be.

You are going to hear the word "centenarian" more and more in the future. It refers to those who have reached the age of 100 - a milestone we think of as being quite rare. In the 1950s there were only a few thousand people over the age of 100 in the world.

Some experts are predicting that there will be one million (1,000,000) centenarians in the US by 2050. This means that one million people in the US in their early 60s are looking at another 40 or more years of life. On a global basis it is expected that there will be more than five million centenarians by 2040.

While luck definitely plays a role in longevity so do advances in medicine, technology, food supply and physical fitness. The one element that may impact longevity the most is that of nano technology - literally microscopic intelligent machines that may be injected into our bodies to address a myriad of health issues.

All of this begs the question: just how much life can I afford to live?

It looks like Spock had it right when he said "Live long and prosper".



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


Tuesday, July 21, 2009

Bank of Canada Announcement on Interest Rates

This is the latest news

The Bank of Canada announced this morning that they are maintaining the overnight rate target at .25%; and have confirmed their conditional commitment to hold the current rate policy until June 2010. The full announcement can be viewed at:

http://www.bank-banque-canada.ca/en/fixed-dates/2009/rate_210709.html

Several lenders have made adjustments on their variable rate pricing. We've seen the pricing variance change from prime 'less' to prime 'plus' in the last year.

Currently the movement has been to reduce the variance from Prime plus .60% to rates as low as Prime plus .30%.

Did you know.....for large mortgages most of the schedule A banks have limits on maximum mortgage amounts, especially if the mortgage is not insured?

Typically, a sliding scale is used to determine the maximum lending amount. For example: 80% of first $750,000 and 50% of balance (the scale varies by lender).

In the case of a $1Million purchase price - the maximum mortgage allowed would be $725,000 versus $800,000 financing available with a 20% down payment (conventional mortgage)

There are lenders, offering very competitive interest rates, who will allow up to 80% financing with a maximum mortgage amount of $1.5 million (on purchase of $1,875,000). This is available, to qualified borrowers, without requiring CMHC insurance. These are unique situations - if you require this type of financing, please contact me.

Thanks and have a great day!

Mark

2009 and 2010 Real Estate Market Predictions and general economic predictions


For the past 4 years I have looked into my crystal ball and given my predictions ahead for the Mississauga and GTA real estate marketplace and the general economy.


This year I have waited until July to write my predictions for the next 12 to 18 months and you can find them here:




Enjoy!


I would love to hear your comments or predictions for our future.


All the Best!

Mark

Monday, July 20, 2009

Be careful when using and quoting TREB stats and press releases

I was asked:

Is this information, that is in the News and on the 'net, abound house prices
and multiple offers, true?
If so, could my house value really have gone up
more than 16% this year. If so, what was the benchmark to start from.
16% on
top of zero is still only 16%, however, 16% on top of 1 Mill. is a lot.
OR.....is this a bunch of "feel good BS" from the likes of Stats-Can.

Good question:

Yes, be careful about the reported real estate prices, the stats are often mis-quoted

When TREB reports 16% they are usually reporting that sales VOLUMES have increased 16% compared to the same month last year

Prices are currently UP about 4 to 5% since the low of January of this year after falling about $50,000 (from about $398k in April of 2008 to just under $350k in January of 2009) which is a drop of about 12% so we are still down compared to the zenith in spring of '08

http://www.mississauga4sale.com/TREBprice.htm#graph

TREB often reports that real estate is up, say 10%, but they are often referring to the sales volumes, not the prices. The average price is really only that, an average price, and areas can vary widely from the average. As well, you only need a few million plus dollar sales in one area to increase the average price in an area substantially, so again, be careful when using averages for your immeditate area.

Average prices are useful to watch trends over time.

Enjoy!
Mark


again, sent with mark@mississauga4sale.com and not the hotmail crap



--------------------------------------------------------------------------------





Toronto Real Estate Board (TREB) Average Prices and Graph

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

Saturday, July 18, 2009

RE: Power of Sale Listing

This is another power of sale question that I thought I would share the answer with you.

Dear Mark
I found your information on Power of Sale are excellent.
Just wonder if purchaser needs to pay GST when buying a property from Power of Sale.
Kindly advise.
Best Regards
L.C.

Question was:
Hello L.C.,

Thank you for your real estate inquiry. You do not have to pay GST on a POS property purchase, similar to most resale purchases.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

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

Has the Toronto Real Estate Market prices reached their Zenith? No way!

These are my 2 cents worth in response to Garth Turner's comments and predictions on our Canadian real estate bubble that is about to burst and that "This is because the housing market is at its zenith" as stated at his blog post here:

I don't agree that the housing market is at it's zenith. There is much room for the Mississauga Real Estate Market and the GTA real estate market to increase.

First things first.

Negative articles, press, blogs and news sells. Negative press has always sold newspapers and negative press is most sensational. You can read the negative press, but don't always follow the predictions, often they are wrong.

If you want to get noticed, write something very negative or go against the grain and many will notice. Other negative people will tell their negative stories, because negative people need validation of their negative experiences and observations, so they can say "I told you so" and sit on the sidelines and stay safe. (just read the majority of responses in this blog, it's the negative herd mentality).

I'm not saying negative people are wrong or that negative analysis is not necessary, but don't let it affect your psyche or your personality. Always be positive, even in negative situations and you will survive. Even some of the negative people who have written above are sometimes positive because they see opportunity in negative situations (what an upside world we live in)

If you say something positive or predict positive news about the future and it does not happen, people will point at you and put you down for being wrong. If negative press comes to be, the writer can say I told you so. If negative press does not occur, everyone forgets about the negative news and moves on, waiting for the next negative news.

Thus, negative news cannot lose.

I do not agree with Garths comments that he states our Canadian real estate bubble that is about to burst and that "This is because the housing market is at its zenith" We are no closer to the peak of real estate prices in the GTA or Canada than we were each spring and fall peak experienced during each year from 1995 to 2008

Some have commented about the 'emotional' aspects of the real estate market and the financial markets.

We all make decisions based upon emotion and then attempt to validate our 'emotional' decision with facts.

I would like to know where you think we currently are on the market emotions cycle as pictured here:

http://www.mississauga4sale.com/Market-Emotions-Cycle.htm#graph

Do you think we are at the point of Hope, Relief or maybe even optimism? If you asked any realtor back in October 2008 up to about January 2009 they would have said that we were in the area of Despondency. Our GTA marketplace was so depressed, sales were down incredibly, agents were getting out the business by the truckload and the future looked grim. Our 'price' bottom was January 2009 and since then prices have only increased in the GTA. This gives many of us reason for hope and even optimism, some in the downtown areas of Toronto are feeling euphoric of late with multiple offers and 100%+ selling prices. Could this real estate bubble last much longer? Will this real estate mini bubble last much longer? Your guess is as good as mine.

I've been a residential real estate agent in Mississauga since 1987 and I've watched people suffer from real estate losses and even lose their homes in the period from March 14, 1989 to about 1994 when the market began to increase again. Our real estate market has enjoyed unprecedented growth from 1995 to September of 2008. 14 years, incredible. During this period I had clients who were buying a new home in say 2001, closing 15 months later and making $100,000 profit and did it again from '03 to '05 or '07 and made a ton of money in real estate. I warned them that our market had already peaked at whatever it was at the time, $250,000 GTA average price, $300,000 average price and then $380,000 average price in '07, how high could it go and when would it burst. Well, I was wrong that the prices had 'maxed out' every time the TREB (Toronto Real Estate Board) price hit a new maximum each spring and fall from 1995 to the spring of 2008.

I carry two articles in my portfolio, one written in 1987 which talks about Toronto average real estate prices predicted to rise to over $200,000 in 1988 and another article that appeared in the Toronto Sun written by the Business Editor, who was none other than Garth Turner, dated January 7, 1988 where I have highlighted one paragraph that sums up why real estate in the GTA was undervalued, Garth states "This is the result of simple market forces - of supply and demand. As long as people are willing to sacrifice other aspects of their lives to liver where the action is, then prices will rise" Reasons for the huge increase in real estate values in the 80's were that women came into the work force during this decade and investors fueled the market from the mid 80's until '89. It was just a simple case of what Garth states, supply and demand. Many blamed the reason for the 'bust' back in '89 due to double digit inflation, double digit unemployment and investor greed. It took about 5 years to recover from that bubble. I feel that supply and demand was the fundamental reason why real estate continued it's unprecedented growth from 1995 to 2008 The differences in this last cycle of increase was that we had relatively low interest rates (actually an all time low in 03 and 04), low inflation and low unemployment. Again, supply and demand reared it ugly head and prices kept increasing. Only when the "financial crisis" peaked in September of 2008 did our local GTA real estate market pause. And this pause was only for about 4 months. Since January of 2009 prices have increased again.

So what's my point? Garth preaches doom and gloom for our future real estate market. I certainly hope he is wrong. I've read through all the comments on this post and while most bring up very important and factual points, these don't address the old adage of supply and demand. If there is demand and the demand continues, prices will stay about where they are or increase. If the US and the global economy improve over the next year, then we are in for another round of positive real estate markets in Canada. As long as people around the globe see Canada as 'the land of the free' they will continue to migrate here and as long as our Canadian economy does not run out of control, demand will exceed supply.

If you bought a home back in 1989 at the very peak of the TREB market and held that same home for the past 20 years you would still have 5 years left on your mortgage that was originally about $180,000 (assuming you put 10% down payment) and you would still owe about $50,000 on this mortgage assuming 8% average interest rate since 1989. You would now have a property worth about $400,000 and equity of about $350,000 If you are thinking of buying a home today, don't buy anything that takes up more than 35% of your gross income, make your amortization 20 years if you can handle the payment, or 25 years at the most. If you rented for $1375 (the mortgage payment for the preceding analysis) you would be paying about $2000 per month or more for the same house and you would have ZERO to show for it. Also, don't go for the 30 or 35 year mortgage. Go as short as you can to pay off that mortgage as quick as you can while the rates are low. I do believe what Garth predicts that rates will rise again to double digits by the year 2020, but if you pay down as much of your mortgage as you can in the next 10 years, you will be ok by the time the interest rates hit double digit again. My point is that if you sit on the sideline and hope for real estate values to drop 10 to 50% over the next year or two, you'll be out of luck (again) here in Canada. Our economy is not the same as the US anymore, our banking system is not the same and our mentality is not the same, certainly not similar to what SF Banker writes about.

So, what's my second point? Read the negative press, articles, blogs and such, but DON'T be negative and follow their advice in the long run. Buy real estate for the long run, buy real estate that is within your family budget and pay it off as quick as you can. So when the next 'drop' in the market occurs and the nay sayers say they are right, then you can buy another property at a good price! :-))

Just my 2 cents worth.

I wish you all the best!
Mark


Toronto Real Estate Board (TREB) Average Prices and Graph

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

Friday, July 17, 2009

Stock Market outlook to end of 2009 and beyond - postive!

this is the outlook from investors and customers of RBC on the stock market and financial markets in general, thought I would share the postive mood!

Mark



Your views on the stock Market:

        1. One in every two direct investors surveyed on this panel are holding their investments steady for now and see no reason to panic about current stock market conditions.
        2. Four in ten have added or are planning to add more money into the stock market in the near future.
        3. The majority (seven in ten) believe the stock market, as measured by S&P/TSX Composite Index, will be higher by the end of 2009 and a third believe it will be higher in three months’ time.
        4. Those who have a positive outlook on the stock market (22%) are seeing opportunities in current stock price volatility; they believe it presents trading opportunities. These investors believe that current stock market valuations have reached the bottom, that the bear market is now over and that the financial sector has begun to stabilize .
        5. Those who have a negative outlook on the stock market (8%) believe that current stock market valuations have not reached the bottom and that the bear market is not over. They believe that the current economic conditions will have a serious negative impact on GDP and that unemployment rates will rise.
        6. Those who have a neutral outlook on the stock market (70%) need to see stabilization/lowering of unemployment rates and positive news from corporate announcements to feel more positive.

        Thursday, July 16, 2009

        Mississauga Real estate and GTA real estate mortgage interest rates

        these are the current posted and attainable interest rates in our local
        marketplace.
        Enjoy!
        Mark

        TERM POSTED Obtainable RATES*
        6 Month 4.60% 3.75%
        1 Year 3.75% 2.75%
        2 Year 4.05% 2.85%
        3 Year 4.65% 3.44%
        4 Year 5.14% 3.89%
        5 Year 5.85% 4.12%
        7 Year 6.80% 5.15%
        10 Year 6.90% 5.20%
        Variable Rate 2.55%
        Prime Rate 2.25%
        * Rates may vary and are subject to change without notice OAC.
        Rates Last Updated: Thursday, July 16, 2009

        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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        Website <http://www.mississauga4sale.com/index.htm> :
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        * Thinking of selling your home in the next 3 to 6 months? Would you
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        <http://www.mississauga4sale.com/internet-evaluation.htm> & Quick
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        Foreclosure and Pre-Forclosure in GTA

        This is a common question that I receive about foreclosure properties and thought I would share it with you.

        Hi my name is D. and i'm looking for Pre-foreclosures in the Brampton,Mississauga, Oakville, and North York area.

        If you can assist me in buyingthese properties at least 20% it's market value it would be greatlyappreciated. Hope to hear from you soon, take care.

        Thanks
        D.


        Hi D,

        Thank you for your real estate inquiry. I've not seen any pre-foreclosures or foreclosures of any type in the GTA in many years. Foreclosure is a remedy in the USA and some provinces in Canada, but not Ontario. The most popular method of banks when an owner is in default in Ontario is Power of Sale.

        20% under market value is also seldom found, but does happen occasionally, you'll have to watch for those great opportunities from my list.

        Use
        http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
        this link if you have not already signed up to receive a daily list of new
        and changed Power of Sale Properties
        http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
        in the GTA

        Please let me know if you would like to see inside any of these power of
        sale properties. You can read all about Power of Sale Properties at this
        page
        http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure-FAQ.htm

        Let me know if you have any other questions or if there is anything else I
        can help you with.

        Thank you again for contacting me and I will do my best to help you with
        your real estate needs,

        Mark

        Tuesday, July 14, 2009

        When Selling should you tell people you are moving out of town?

        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

        Question: When Selling should you tell people you are moving out of town?

        This is a question that I receive from some of my sellers

        There are mostly negative aspects of stating you are moving out of town after your closing or out of the province or even worse overseas.

        In my experience, it is very negative to mention that you are moving far away on the listing or to even tell the buyer this fact. The buyer would most likely become very nervous knowing you are moving out of the country and would worry about the condition of the unit and removal of any items and how they would possibly remedy any unforeseen problems after the closing date if you left the country.

        Also, moving out of the country can be interpreted as 'the owner is desperate and must sell" and this could negatively impact your sale price. Thus, I can only see a negative impact on your sale if you mention this anywhere or anytime.

        I hope this helps.

        Thank you,
        Mark