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Sooke Real Estate Information Night – Come and Learn!

 

Is this the year you buy your first home?

Is this the year you buy your first home?

Get educated about buying and selling real estate.

Hear from three local experts about buying your first home, moving up, and more!

When: Thursday, March 26, 2015 at 7:00pm

Where: Best Western Premier Prestige Oceanfront Resort, 6929 West Coast Road, Sooke [map street view]

I’ll be joined by Sooke’s dynamic mortgage team, Kerry Reid and Kari Stauble of DLC Modern Mortgage group. Our seminar will be a fun, interactive, and informative evening, arming you with the tools to bring your real estate goals within reach.

Topics covered will include: Read more

Upcoming Free Victoria BC Real Estate Seminar: Buying A Home

House for Sale in Sooke

Ah… springtime… when a young person’s thoughts turn to… buying a home, of course! The spring market is here, and many first-time buyers are taking advantage of record low interest rates and making the jump into their own homes.

How much do you need and how can you save for a down payment? What’s the best type of mortgage for you? What homes are available and what sorts of programs are out there to help a first-time buyer?

How will the upcoming mortgage rule changes affect my affordability? Will the HST spoil my dream of home ownership?

All these questions and more will be answered at a fun, free, interactive seminar I’m putting on next month with two other professionals.

A Certified Financial Planner will talk about how to save for that ever-important down payment, and government programs to assist home buyers. Find out the details of how to borrow from your RRSP tax-free to help you buy a house, and other tricks of the trade.

Robert Boyd, Mortgage Expert with Dominion Lending will present on the various types of mortgages that are available, how to apply, and how to get the best rate possible to save you money. Learn about mortgages and rates, amortization and prepayment and take the mystery out of mortgages

Tim Ayres (that’s me!), REALTOR® with Royal LePage Coast Capital Realty will walk you through the home-buying process – how we search for a home together, showings, offers, negotiation and finally, getting the keys to your new home. Find out what to look for, how to ensure you get what you need, and how having an experienced REALTOR® on your side can help.

When: Tuesday, March 30th, 2010, 7PM.

Where: Investors Group Westshore office, 201 – 630 Goldstream [map] – [street view]

The seminar is free, but we have limited space, so please phone me at 250-885-0512, fill in the form below or visit TimAyres.ca/seminars for more information.

Tim Ayres – Sooke Real Estate Professional

Your comments are welcomed and encouraged!
Just use the form or link below this post.

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Upcoming Free Victoria BC Real Estate Seminar: Buying A Home

House for Sale in Sooke

Is 2010 the year you decide to stop paying rent and invest in your future in the form of your very own home? How much do you need and how can you save for a down payment? What’s the best type of mortgage for you? What homes are available and what sorts of programs are out there to help a first-time buyer?

All these questions and more will be answered at a fun, free, interactive seminar I’m putting on next month with two other professionals.

A Certified Financial Planner will talk about how to save for that ever-important down payment, and government programs to assist home buyers. Find out the details of how to borrow from your RRSP tax-free to help you buy a house, and other tricks of the trade.

Robert Boyd, Mortgage Expert with Dominion Lending will present on the various types of mortgages that are available, how to apply, and how to get the best rate possible to save you money. Learn about mortgages and rates, amortization and prepayment and take the mystery out of mortgages

Tim Ayres (that’s me!), REALTOR® with Royal LePage Coast Capital Realty will walk you through the home-buying process – how we search for a home together, showings, offers, negotiation and finally, getting the keys to your new home. Find out what to look for, how to ensure you get what you need, and how having an experienced REALTOR® on your side can help.

When: February 9th, 2010, 7PM.

Where: Investors Group Westshore office, 201 – 630 Goldstream [map] – [street view]

The seminar is free, but we have limited space, so please phone me at 250-885-0512, fill in the form below or visit TimAyres.ca/seminars for more information.

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Tim Ayres – Sooke Real Estate Professional

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Just use the form or link below this post.

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First Time Buyer Friday #10 – How Does Rent To Own Work?

In my continuing series, First-Time-Buyer Fridays, I answer a common question from a first-time buyer. If you have a question to submit, first-time-buyer or experienced investor, put one in the comments below, or fire me an e-mail at Tim@TimAyres.ca.

What's the Deal with Rent-To-Own?

What's the Deal with Rent-To-Own?

Q. I’ve heard about people being able to rent-to-own a home? Is this legit? How does it work? Why don’t more people do this?

A. At first glance, renting to own a home sounds like such a good deal. No or little money down, similar payments to rent, going towards your equity instead of in the landlord’s pocket. And for many people, this would work out just fine. However, it’s not as simple as it sounds.

A rent-to-own program is essentially an agreement for sale, which is a legal term that means you are agreeing to purchase the property from the owner on a set date in the future, for an agreed-upon price today. Payments on an agreement for sale are credited to the purchase price, and used to pay any interest, if any. Essentially, the seller is financing your purchase of the property until such time that you can qualify for a mortgage and pay out the rest.

Most rent-to-own programs boast that they are “interest-free,” but while you’re paying no interest, only a portion of your payment is applied to the principal. The rest goes directly into the owner’s pocket as rent. So, no, it’s not interest in the traditional sense of the word, but it’s essentially six-of-one, half-dozen-of-the-other, isn’t it?

From a buyer’s perspective, a rent-to-own scheme is attractive if that buyer would likely not be eligible for traditional mortgage financing due to poor credit, and/or would not have sufficient funds available for the required minimum 5% down payment. By renting-to-own, the buyer is essentially paying a down payment (and rent) to the seller while living in the house. At the end of the term of the rent-to-own contract (one to five years), the buyer/renter is obligated to pay the outstanding balance to the seller/landlord, which would be the original price agreed on at the start of the term, less the amount of the portion of the monthly payments allocated to the purchase price and the buyer/renter’s initial deposit. The agreement for sale is registered on the title to the property which ensures that the seller/landlord cannot simply sell the property to somebody else.

Example: if the purchase price of the home was $400,000, and the rent was $1750 per month, 30% of which was assigned to the purchase price ($525), three years of payments would net $18,900 which would leave an outstanding balance of $381,100. This balance would need to be paid to the owner at the end of the term, assumedly by a mortgage that the buyer would now qualify for (a bank would hopefully recognize the history of monthly payments to improve the buyer’s credit situation). Please note that these numbers are for illustration only, and the length of the term and amount of the monthly payment which is applied to the purchase could be more or less, depending on what is negotiated.

What happens at the end of the term if the buyer still doesn’t qualify for a mortgage to pay out the outstanding balance to the seller? In this case, the seller would be eligible to keep the deposit and all payments made by the buyer during the term. The same goes if a buyer defaults on a payment.

From the seller/landlord’s perspective, is this a good deal? I know I wouldn’t do it. First, unless you own the property outright or have a small mortgage, you’re going to be making payments on the property until the end of the rent-to-own (agreement for sale) term when you get your lump-sum from the buyer. If the renter/buyer’s payments aren’t large enough to cover your mortgage payments, you’re still paying out of pocket and still need a place to live. Second, if you have a small enough mortgage or own the property outright, why not just rent it out to good tenants and have a nice income stream for life? Why sell an income-producing asset at the end of the term? And thirdly, for every rent-to-own buyer in the marketplace, there are probably several more willing and able outright purchasers for your property. Why wait to get your cash now? You’d earn some rent/interest on the agreement for sale, but the opportunity cost of doing so could exceed the benefits, especially if the buyer defaults and the property has lost value. This is probably why you don’t see more agreement for sale/rent-to-own properties on the market – there isn’t a compelling incentive for owners to agree to it.

I think there are better ways to improve your credit and to save money for a down payment to take advantage of home ownership. RRSP withdrawals, the tax-free-savings-account, and other financial tools come to mind. However, you’d probably talk to families who’ve been able to purchase a home through a rent-to-own scheme that are perfectly happy with the result.

In any case, I would highly recommend having a lawyer and/or an accountant review any rent-to-own or agreement for sale contract you are considering entering into, either as buyer/tenant or as seller/landlord to make sure you understand the benefits and risks. There are many schemes that would be very one sided toward the landlord/seller, so be sure what you’re entering into is fair and equitable.

What do you think? Have you ever purchased a property this way or know somebody who has? I’d love to read your comments below.

If you have any questions about renting to own, agreements for sale, how you can make home ownership a reality, or any other real estate matter, please give me a call at 250-885-0512, e-mail me at Tim@TimAyres.ca or fill in my contact form. You can connect with me on Twitter at Twitter.com/TimAyres.

Tim Ayres – Sooke Real Estate Professional

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Are Sooke’s Seaview Trailer Park Residents Still In Peril?

Sooke Harbour

Sooke Harbour

Since I first posted about the plight of the residents of the Seaview Mobile Home Park in Sooke, I’ve had quite the response from residents of the park and observers of the situation. I even had a comment the other day that was so defamatory that I was afraid to post it and I deleted it. Libel and slander are not why I started a blog.

It’s understandable – this is human drama in the purest form. A disadvantaged group of tenants at the mercy of a landlord. These struggles have gone on for centuries and always cause emotions to run high. I am honoured that the residents are choosing my blog as a forum to express their comments, and I thank the two residents of the park that have taken the time to e-mail me to update the situation.

Ever since I wrote last week about Sooke Council passing the mobile home park resident protection bylaw, I wondered how it would affect Seaview, since they were given the eviction notice before the bylaw was passed. I feared that if the eviction notice was lawful, the residents would be forced to leave.

I got an e-mail yesterday from a resident of the park who informed me that the residents are disputing the eviction on the grounds that it was illegally served. This person further stated that even if the eviction notice is valid, that the landlord will have to relocate or buy up the units at fair market value. It would appear then that the District of Sooke’s new policy will apply to the residents, which is some good news.

I will keep updating as I get more information.

Your comments are always appreciated, and can be left below this post or by clicking on the big red comment link.

Tim Ayres – Sooke Real Estate Professional

Your comments are welcomed and encouraged!
Just use the form or link below this post.

You can bookmark this post using the button below,
or get free updates using the big buttons on the sidebar!

First-Time Home Buyer's Seminar

West Shore Professionals Hosting Free Event

Tuesday, January 29th, 2008 at 6:00 P.M.

Exclusive first-time buyer’s seminar. Hosted by three of the West Shore’s best and brightest professionals, this informative presentation will enlighten you on the process of buying your first home, and lay out options to make your home ownership dreams a reality!

Your Hosts:

Jeremy Kimm, Certified Financial Planner. Jeremy will explain how to take advantage of investment, government programs and tax strategies to help you quickly “create” a down payment on your first home.
Alexis Mills, Accredited Mortgage Professional. Alexis will spell out the different financing options that have become available, and how the services of a mortgage broker can get you better interest rates than the banks and credit unions. Alexis has access to over 50 different lenders, making them compete for your business.
Tim Ayres, REALTOR®. Tim will go through the home-buying process, step by step, explaining all the details and de-mystifying this exciting and important time in your life. Tim will show you how you can be the first to know about property deals when they become available!

If you’re planning to stop paying rent in 2008, you simply can’t afford to miss this free seminar. From savings to sun decks, closets to closing, you’ll leave empowered with knowledge you can use!

Tuesday, January 29th at 6:00PM
At the West Shore Investor’s Group Office
201-630 Goldstream Ave

Space is limited; please call Tim at 642-6361 or e-mail to reserve your spot!

Subscribe via e-mail, your favourite feed reader, or bookmark this post:

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First-Time Home Buyer’s Seminar

West Shore Professionals Hosting Free Event

Tuesday, January 29th, 2008 at 6:00 P.M.

Exclusive first-time buyer’s seminar. Hosted by three of the West Shore’s best and brightest professionals, this informative presentation will enlighten you on the process of buying your first home, and lay out options to make your home ownership dreams a reality!

Your Hosts:

Jeremy Kimm, Certified Financial Planner. Jeremy will explain how to take advantage of investment, government programs and tax strategies to help you quickly “create” a down payment on your first home.
Alexis Mills, Accredited Mortgage Professional. Alexis will spell out the different financing options that have become available, and how the services of a mortgage broker can get you better interest rates than the banks and credit unions. Alexis has access to over 50 different lenders, making them compete for your business.
Tim Ayres, REALTOR®. Tim will go through the home-buying process, step by step, explaining all the details and de-mystifying this exciting and important time in your life. Tim will show you how you can be the first to know about property deals when they become available!

If you’re planning to stop paying rent in 2008, you simply can’t afford to miss this free seminar. From savings to sun decks, closets to closing, you’ll leave empowered with knowledge you can use!

Tuesday, January 29th at 6:00PM
At the West Shore Investor’s Group Office
201-630 Goldstream Ave

Space is limited; please call Tim at 642-6361 or e-mail to reserve your spot!

Subscribe via e-mail, your favourite feed reader, or bookmark this post:

Subscribe  by Email AddThis Feed Button AddThis Social Bookmark Button