Third best May in the history of the Toronto Real Estate Board

 

 

June, 2010

Dear Friend, 

I would like to apologies for sending out this newsletter late. I have been extremely busy with Five Condos project and now Chaz On Charles project that I didn't get much time to research and write this month's newsletter.

The real estate market continued to be extremely active in May with the sale of 9,470 homes, resulting in the third best May in the history of the Toronto Real Estate Board. The average price of a home rose to $434,155, up 9.7% since the start of 2010, more proof as to the great investment that real estate really is.

The first five months of 2010 have been extremely busy, brought on by the specter of rising interest rates and the new HST (Harmonized Sales Tax). While the rest of 2010 will continue to be active, I do not believe sales will maintain their current torrid pace. With April's 10,898 sales being the "peak "of 2010's market, the number of sales will slow down as we head first into the Summer months and then into the end of the year. The number of homes available for sale increases with the Summer market as well and now stands at 25,414.

While there are fewer buyers and more homes for sale, prices will not decrease. Buyers will have more choices to pick from, but well priced homes will sell and for top dollar.

Those sellers who will be represented by professional agents who know how to price, market and negotiate on their behalf will do better, the others will not. Last year, 2009, out of the 30,000 agents on the Toronto Real Estate Board, over 7,000 did not sell 1 home all year! There is a difference in agents and companies. My company, RE/MAX, spends about $9,000,000 per year in media advertising in the Toronto area alone. That attracts more buyers to me and with more buyers I can sell your home faster and for more money!

June will see approximately 8,500 homes sold, 1 out of 3 homes for sale. Two out of three homes will not sell! It is a great time to get into the real estate market. Call me and let me show you the benefits of upgrading your home today.

Have a great month,

SunnyBatra
Your Friend in Real Estate

Posted via email from Sunny Batra's Blog

Happy Father's Day!

This day is a very special day as it reminds me of all the good times I had with my father who is not with us today. He passed away several years back. He was my best friend. I wish I could turn the clocks back but I can't.  However I can take this time to wish all the fathers a Very Happy Fathers Day. I hope you have a wonderful day with your loved ones.  If you are not a father then give you father a big hug with a kiss on the cheek and tell how much you love him.

 

Happy Fathers Day

Posted via email from Sunny Batra's Blog

Renting vs. Buying, Which Option is Better for You?

   

Buying a house can be the most rewarding purchase you ever make. However depending on your current circumstance this may not be your best option.  To help make an educated decision, try to answer the following questions first:
1. Do you really want to own your home?
Some would argue that this is the first question you should ask yourself. Home ownership, like everything else, is a matter of choice. Only you can decide whether or not home ownership is important to you. If it is then you may want to re-assess how you spend your money every month.
2.  How often do you expect to move in the future?
If you expect to be moving a lot (every couple of years or more) then you probably shouldn't buy your own home. Every time you buy or sell a home you incur significant costs (selling commissions alone average 6%). Unless you get lucky and the value of the home you purchased goes up by at least 10%, you'll be losing money.
3.  How stable is your employment situation?
You should only consider buying a home if your employment is stable. Home ownership requires a number of regular payments like the mortgage, property taxes, maintenance, insurance, etc. Missing any of these payments can trigger terrible consequences for a homeowner. Unless your employment is stable, your best option is "renting".
4. Can you afford to make the monthly payments?
When qualifying for a loan, most mortgage companies will not allow your housing costs to be more that 33% of your gross income. Housing costs include your mortgage payment, property taxes, utilities, and 50% of condo fees if applicable. If your total debt servicing costs (housing costs plus all of your other monthly debt payments) exceed 40% of your gross income you will not qualify for a mortgage.
How much rent are you paying now? What is the maximum amount you are willing to pay?
If you buy a home, it is important to have some money set aside for "emergencies". You may not be able to save as much money as a homeowner as you did when you were renting, but it is important that you leave some room in your budget. If you have to stretch your budget too far,  you should definitely reconsider your home purchase.
5. Do the math 
Housing costs can be divided into shelter costs and investment costs. When you rent, you pay your shelter costs, and the landlord pays the investment costs. When you buy, you pay both, which is usually more. Ten years later when you sell the house, you will find that your investment did well and you saved a lot of money by buying.
From a purely financial standpoint, whether you should rent or buy comes down to your monthly budget and the cost of borrowing. If you have the down payment and interest rates are 5% or lower, it makes very little difference whether you rent or buy. At interest rates above 8%, buying will cost you 20% or more than renting.
Although it might seem that you will be spending more money on buying a house than renting, you need to consider your options and priorities. There are many more advantages of purchasing a home over renting.
Conclusion 
Buying a house is an investment, and for many people it is a good one. You can purchase insurance to help you manage any potential risks like fire, earthquakes, and thefts. Remember to take your buying/selling costs into account when considering selling your home. The strength of the real estate market in your area will determine the return on your investment.
Assuming that you can afford the increased costs of owning your home, the question of what's better, renting or buying a house, becomes one of personal preference. There is a certain satisfaction in owning your own home, but only if it is important to you.
If you are only staying somewhere for short period of time (less than five years), renting is almost always better; the transaction costs of buying and selling houses will definitely make it less expensive just to rent.
For longer periods, buying a house is usually better. Although if you have the discipline to invest the difference between your rent and your potential mortgage and other buying costs in a reasonably high yielding investment, renting might be better.  But that's if you carefully figure out the difference and diligently invest that difference. If you can't do that then buying is probably the better choice.
Buying a house is usually a sound long term investment as it helps you build equity vs. throwing your hard-earned money away as rent real estate generally appreciates; a house bought today is worth more a few years down the road.

 

Sunny Batra, Sales Representative
Re/max Realtron Realty Inc.
Office: 416 289 3333
Fax: 416 289 4535
www.SunnyBatra.com  
My Blog www.SunnyBatra.posterous.com
Follow me www.Twitter.com/Sunny_Batra      
Facebook group www.fbook.me/TorontoInvestment    
Friends Page www.facebook.com/Realtor.SunnyBatra

 

Posted via email from Sunny Batra's Blog

2010’s last opportunity to invest in Triple “A” Real Estate in the Yonge/Bloor neighborhood.

 

My last investment project Five Condos has gone up in value by $25,000 in less than a month and is set to be released to the public on June 19th. This project is no different. We have the first access to the units at a VIP discounted prices.  Come and learn more about this project on Wednesday, June 16th.

www.SunnyBatra.com/ChazOnCharles

 

Sunny Batra, Sales Representative
Re/max Realtron Realty Inc.
Office: 416 289 3333
Fax: 416 289 4535
www.SunnyBatra.com  
My Blog www.SunnyBatra.posterous.com
Follow me www.Twitter.com/Sunny_Batra      
Facebook group www.fbook.me/TorontoInvestment    
Friends Page www.facebook.com/Realtor.SunnyBatra

Posted via email from Sunny Batra's Blog

Canada ‘pumping out jobs,’ employment report shows

June 4, 2010 00:06:00Emily MathieuBUSINESS REPORTER

A stronger than expected economy has led to more jobs being created across Ontario in May. The province saw an increase of 18,000 full-time positions, with growth over the past year slightly higher than the national average.

But the return of formerly discouraged workers to the labour market and an increase in the population means the unemployment rate remained persistently high.

Statistics Canada’s latest Labour Force Survey showed the boost in May brought employment gains in the province to 127,000 since July 2009, or an increase of 1.9 per cent compared to national growth of 1.8 per cent.

The unemployment rate in Ontario edged up 0.1 per cent, to 8.9 per cent.

Across the country employment was up 25,000 in May, the fifth consecutive month of reported job gains. Full-time positions were up 67,000 and were partly offset by losses of 43,000 part-time jobs. Full-time employment has made up the majority of gains since July 2009, the report showed.

The national unemployment rate was unchanged at 8.1 per cent.

“Canada’s recovery has outperformed expectations with the labour market pumping out jobs at a healthy clip as the economy grew at a stronger-than-expected pace in both the fourth quarter of 2009 and first quarter of 2010,” Dawn Desjardins, assistant chief economist, RBC Capital Markets wrote in a note.

She said the unemployment rate will continue to drift lower, but will likely remain above pre-recession levels as workers “who became discouraged during the economic downturn return to the labour force.”

In the United States, a burst of hiring for the 2010 census pushed nonfarm employment numbers up to 431,000 in May, according to the U.S. Bureau of Labor Statistics.

Outside the hiring of 411,000 census workers, little changed. Weak hiring in the private sector, with a reported increase of 41,000 positions, pointed to slower than expected economic recovery. The unemployment rate edged down to 9.7 per cent, from 9.9 per cent.

In Canada, the majority of May’s job growth was among women aged 55 and older, with a reported increase of 17,000. Since July 2009 the fastest rate of employment growth has been documented among men 55 and older, up 5 per cent with women in the same age group coming second with a reported increase of 3.1 per cent.

Average hourly wages in May rose 2.4 per cent, following a trend in recent months.

“Despite the fact there has been some improvement in the jobs picture unemployment remains a significant problem for Ontario and the rest of the country,” said Erin Weir, an economist with the United Steelworkers.

Unemployment needs to be addressed for recovery to stay on track, he said.

In the private sector the number of employees rose 43,000 in May, adding to a total increase of 2.8 per cent since July 2009 with most of the gains in recent months.

The number of self-employed workers dropped 28,000. Since July the number of self-employed Canadians has dropped 2.3 per cent, while employment in the private sector has increased by 2.2 per cent during that same period.

“The fact that self-employment is melting away during the recovery validates what union economists noted during the crisis: the surge in self-employment had reflected a lack of jobs,” Weir said in an earlier note.

Gains were reported in transportation and warehousing, health care and social assistance, public administration and agriculture. Declines were recorded in information, culture and recreation, accommodation and food services and natural resources.

Manufacturing and construction showed little change in May.

Posted via email from Sunny Batra's Blog