So you want to be a Landlord?

If you’ve got some money that you want to invest, real estate may be a great option for you.  Someone else pays your mortgage and once the mortgage is paid off, you have extra income.

Get help with this early on.  What type of property is the best investment?  Where should you buy?  Who will screen tenants for you?  How much should you put down?   You need a real estate Broker with rental property experience and knowledge.  Pat and I own some rental property.  We also manage several properties and we help our clients buy and then rent their investment properties.  You need a mortgage professional who understands investment property.  You’ll need an accountant when it’s time to sell to help you understand any Capital Gains or HST implications. And you need a real estate lawyer.

I’ve found that a 35% down payment will result in positive cash flow in most cases and lots of lenders prefer a 35% down payment when it’s not your principal residence.

If you’d like to chat with us about this possibility, give me a call or text message at 905-466-7992 and we’ll show you how you can become a Landlord!

Heather Belsito, Broker, Stonemill Realty Inc., Brokerage

http://www.teambelsito.com

 

 

10 Ways to Make your Home More Saleable

A little bit of elbow grease will go a long way to getting the best possible price for your home.

  1. Get rid of clutter. Throw out or file stacks of newspapers and magazines.  Pack away most of your small decorative items.  Store out-of-season clothing to make closets seem roomier.  Clean out the garage.
  2. Wash your windows and screens to let more light into the interior.
  3. Keep everything extra clean. Wash fingerprints from light switch plates.  Mop and wax floors.  Clean the stove and refrigerator.  A clean house makes a better first impression and convinces buyers that the home has been well cared for.
  4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odours, smoke, and pet smells.  Open the windows.
  5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.
  6. Make minor repairs that can create a bad impression. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.
  7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks.  Put a pot or two of bright flowers near the entryway.  In winter, clear the snow, showing how easy it is to keep the snow cleared at this house.
  8. Patch holes in your driveway and reapply sealant, if applicable.
  9. Clean your gutters.
  10. Polish your front doorknob and door numbers.

Heather Belsito, Broker

Stonemill Realty Inc., Brokerage

905-847-5900 (office)  heatherbelsito@gmail.com

http://www.patbelsito.com

Protect Yourself from Illegal Building

In Ontario, every new home builder must be registered with Tarion.  In order to be registered with Tarion, a builder must complete a net worth statement and demonstrate adequate construction knowledge.  He may even have to write a test and be able to show Tarion officials a building plan and an agreement of purchase and sale.  The cost to enrol in Tarion is $300 a year, but the approval process can take a little time.  And if the builder is new, he’ll have to put a deposit down for each build so that Tarion has some recourse if something goes wrong.  And then every year, the builder has to renew with Tarion which means filling out another net worth statement and paying another $300 and waiting for approval.  Becoming a registered builder is not expensive and is a simple enough process as long as you know what you’re doing. Why then are so many new homes not under Tarion warranty?

One reason may be that the builder could not possibly become registered because he does not understand the process.  You should definitely stay away from any home offered by that builder.

But what if the builder is just trying to avoid the HST?  If you’re buying a new home with no Tarion warranty, you can assume that the builder/seller will NOT be paying HST.  The seller may have built the home for himself or a family member and may be under the impression that HST is not applicable.  This may be true, but if not, it’s a costly mistake and as a buyer, it is vitally important that you protect yourself from any future HST liability.  The best way to protect yourself is to surround yourself with knowledgeable professionals.  Start with a real estate professional who understands that this is a complex issue and add a real estate lawyer with tax knowledge or a lawyer who knows when to call in a tax lawyer.  Sellers of new homes may also want to consider consulting an accounting professional with a tax speciality because both Capital gains and HST may be applicable.

Here’s a link to a Toronto Star article from 2012 which outlines how a buyer became a builder and liable for the tax when she sold the home she purchased.

http://aaron.ca/columns/2012-09-15.htm

Heather Belsito, Broker

Stonemill Realty Inc., Brokerage

905-847-5900 (office)  heatherbelsito@gmail.com   http://www.patbelsito.com