Posts Tagged ‘Part’

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

1. Showing you bad houses to buy before showing you the target house.
Your Real Estate will first show you a series of houses in terrible condition and is overpriced. Then, after you see your terrible selection and you believe these houses are what you after to work with. Once that belief is set in, then your Real Estate Agent will show you a nice house.

By the Law of Contrast, a valuable house looks even more valuable when it comes after a worthless house.

If you find yourself viewing houses that are just rip offs, be careful when you see a decent house. It is actually less valuable than you believe. You Real Estate Agent may even try to compliment those worthless houses so that when decent house shows up, you believe it’s your perfect home!

2. Making you travel to look at the houses you want to buy first.
This is a very common practice and it would seem to make sense. You would need to look at the houses before buying it, correct? Well, there is reason behind the Real Estate Agent wanting you to travel and spend your valuable time staring at these houses. By spending so much time on one house, it becomes too much of an effort to find your perfect house. You end up settling for your less than desired house.

What should be happening is that before looking at the house, you should request a comparable analysis. Your Real Estate Agent has statistical information about the houses you are looking at and houses similar to what you are looking at. This statistical information reveals the market value of the home and whether the home is worth you TIME. By not showing you the comparable analysis, the time, effort and pain it takes for you to search for a home causes you to make a decision faster. If the Real Estate Agent shows you the comparable analysis first, it reduces the pain and you would wait longer to decide. Also, the Real Estate agent has to spend time to create the comparable analysis report where most likely, they would not want to do.

Rule of thumb: Find a Real Estate Agent that will give you the comparable analysis first.

Now, this isn’t to say you should never look for the house first.

There is one exception.

When you first meet your new Real Estate Agent, there is some level of concern on the agent’s side. The agent is spending valuable free time on you, gambling that you would buy a house through him. So if you start off by requesting comparable analysis, he will not do it. Any honest Real Estate Agent would not do it. A comparable analysis is valuable information that the Real Estate Agent gets for being a Real Estate Agent. They need to pay a fee to be a Real Estate Agent.

What the Real Estate Agent needs to know, is that you need to provide some “level of comfort” that you will certainly buy the house through him in order to get the comparable analysis. To me, this is fair because if the Real Estate Agent is going to spend the time on you to help you find a home, then it would only be fair that you buy through him and let him get the commission.

The legal way to show this “level of comfort” is to sign the 90-day commitment contract that indicates you would only work with him and no other agent for 90 days. This legal way is by no means the only way nor is this a bad way, either. It is only a matter of preference and your relationship with your Real Estate Agent that determines the best approach.

3. Encouraging you to put a high security deposit when writing up a contract to purchase your desired home.

A security deposit informs the seller you are interested in purchasing the property and the amount lets the seller know how serious you are. The higher the amount, the more serious you are.

The moment the contract is agreed upon by both parties and signed, you must provide the security deposit within the set time specified in the contract. This security deposit is suppose to be returned to you if the contract becomes null and void, if the conditions (usually financing and inspection) specified in the contract fails.

Now, this procedure seems to be fair. Here is where the problem lies:

If the contract becomes null and void and you want your money back, all parties must sign a form called a Mutual Release. This signature must include the buyer, buyer’s agent, seller and seller’s agent. If any one party does not sign, you will not get your money even if the contract has been null and void. If anyone party refuses to sign, you have to go through court, most likely small claims court, to settle your dispute and if you know anything about the court system in Canada, you know your court date could be as long as two years away!

You should never be serious in buying house. It is poor negotiating tactics. If your Real Estate Agent encourages you to put a high security deposit, it is because your Real Estate Agent wants you to be serious about purchasing the property even though it is poor negotiating tactics.

The reality is your security deposit can be very difficult to get back. Sadly, this is the general process in most home buying transactions and it is a very poor process.

And did you know…

IT IS NOT NECESSARY TO PUT A SECURITY DEPOSIT AT ALL!

There are no limitations to a contract. It is only a matter of agreement. You can write anything you want on the contract as long as both party agrees. My suggestion is to encourage your Real Estate Agent to only provide the deposit after the contract passes the conditions. This is possible, but only if your Real Estate Agent is willing.

Once again, I cannot stress this enough, to find a Real Estate Agent do not search through the Internet and pick the first one you see. Good salesmen do not make good Real Estate Agents.

If you have any more questions or concerns, feel free to e-mail me at admin@freerentalads.ca
You are also certainly welcome to e-mail me your good and bad home buying experiences. I may or may not choose to post them up.

More to Come!

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

In Part 1 a general understanding of mortgages was explored. Part 2 investigates the many different types of mortgages which can generally be classified into two groups: changeable and static. Static allows you to budget more effectively as you know the figures that you will be dealing with each month. This raises the question of why so many people appeared to choose changeable and lose their homes as their rates zipped up.

It is difficult for many borrowers to resist the initial lower monthly repayments that are often offered on the changeable mortgages. This gives new home owners extra cash to repair and redecorate and sometimes an optimistic outlook can over-rule prudence. There are also genuine cases where a variable mortgage is advantageous; understanding mortgages can clarify these choices.

Mortgages have both similarities and differences; interestingly most of the similarities are favorable for the borrower.

-For instance you can usually move (called portering) a mortgage to a new property if you move house. This means that you will not have to pay a penalty for terminating the mortgage earlier than agreed.
-Another advantage is that often when you sell your house and do not want to keep the mortgage on it, the prospective buyer can ‘assume’ the balance of your mortgage; this can make it easier to sell.
-Renewal is automatic once you have been accepted into a mortgage scheme.
-You can usually pay off a lump sum every year on the anniversary of your mortgage date.

However, similarities aside, it is the differences between mortgages that are usually the deciding factors, and there is more variety of choice in the changeable or variable mortgages. These changeable mortgages come in several different forms, the most popular being:

Adjustable Rate Mortgages (ARMS) start at a low rate (perhaps it is a giveaway that this is called the teaser rate!) and moves up to a higher rate after an interim period, usually of six months. There are also steady and/or irregular increases, which make it difficult for the home owner to keep up. These increases are also difficult to estimate as they are calculated on a formula based on the Lender’s Index and Margin.

Two Step Mortgages lock the interest rate in for about seven to ten years; this later adjusts to a higher rate. This can be advantageous if you plan to stay in one place and know that your salary will increase drastically in the future i.e. if you are on an apprenticeship course).

Lender Buy Down is a similar idea, with the interest rate gradually increasing and can be practical for the same reasons as above. All the above mortgages start off with a lower monthly repayment which increases over time. Any of these mortgages could be subject to the whim of the financial markets and/or a Lender’s formula.

This means that they can change and if this means a big increase it could be insurmountable for the home owners. A mortgage broker can explain the positives or the negatives of a variable mortgage which will reflect your own particular set of circumstances.

One of the alternatives to the above choices and one which is easier to understand is a Fixed Rate Mortgage, sometimes called a ‘locked in rate’ mortgage which means that once the term has been agreed, your monthly payment will stay the same for the duration of the term or contract.

The contract can be for five years, or three or twenty or thirty. The interest rate will most likely be different for each term. A mortgage is usually amortized (completed) over a thirty year period, so you may have several terms in the life of your loan.

When you first start paying off a mortgage almost all of it is simply paying down the interest, but as the years pass, your monthly amount will start to pay off more of the principal and less of the interest.

This happens regardless of how many short or long terms you sign up for, as long as you are renewing each time with the same Lender. However, because of the high interest repayments in the beginning of a mortgage, it may be cheaper to rent if you plan on staying only two or three years in a new town.

With a mortgage that has a locked in interest rate, even though the rate at which you are paying down the balance of your property is changing, your monthly amount does not change because you have signed for a fixed rate of interest for a fixed time. This static payment can buy a large amount of peace of mind!

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

This mini video series brought to you by www.bestmortgagerates4u.ca shows the process of buying a home. Thinking of Buying a Home? Step 7 : What professionals are needed in the home buying process? Stay tuned for the other steps. This step by step advice was compiled by a seasoned mortgage…

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Visit www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate Assets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Isnt everything the last 5 years seem to be about some big money real estate scam? Here is an A&E “Flip This House” scam that was shown to viewers. Part 2 of this story is located HERE www.youtube.com