Ben Sage - Moving Woodstock

When is an 8% return on investment actually 35% ???

noreply@blogger.com (Ben Sage, Sales Representative) — Sat, 14 Jan 2012 16:38:00 +0000

Good day all!

Many of you know that I am not only a Real Estate Salesperson, but also a Real Estate Investor. The purpose of this blog post is to show how you can absolutely demolish returns expected through traditional stock-market investments through Real Estate Investment.

So, how is it possible to earn HUGE returns on your investment in this volatile marketplace?

Let's use my new listing at 42 Vansittart Avenue in Woodstock as an example.

Asking Price is $157,750.
Both units are currently rented, grossing $16,800 annually.
Landlord covers Property Taxes ($2,138 annually), Water ($1,100 annually), and Water Heater Rentals ($380 annually)
You should probably have insurance too ($600 annually).

This leaves a NET OPERATING INCOME (NOI) of $12,582.

When you consider that you'll earn $12,500 on a purchase price of $157,750, you end up with a RETURN ON INVESTMENT (ROI) of 7.92% or, 8%.

This 8% return on investment assumes that you paid $157,750 in CASH for the property.

Not a bad return, when I consider what my Mutual Fund portfolio looks like at the end of 2011......but....

BEHOLD the POWER OF LEVERAGING!

Suppose, however, you decided take out a mortgage on the property, as opposed to pay cash for the full amount. How does the investment look then?

Well, you'd need a 20% downpayment (thanks to the instability in the global markets, investors need to pay 20% upfront in order to purchase "speculative" property).

So, your 20% downpayment would be $31,550.

Lets assume closing costs at 1.5% (may be more, may be less, depending on certain circumstances). Another $2,366.25.

Your total out of pocket expense would be $33,916.

We now must add the cost of borrowing that money into our expenses. Year 1 on a mortgage (using 4% fixed/15 years) would cost you $4,893, reducing your ROI to $7,688

Considering you've only invested $33,916, and you're earning $7,688 on that investment, it now shows a return of 23%.

TRADITIONALLY, PROPERTY VALUE IS AN APPRECIATING ASSET

Calculating Capital Appreciation based on 2.5% annual increase in property values (historically, increases have been much higher than that, however, lets be reasonable here - historic increases are largely unsustainable, and a more conservative approach is prudent) shows a further gain of $3,950 in equity.

LOOKING AT THE BIG PICTURE.....

After the first year, you've seen a 23% return on your cash investment, and you've seen an appreciation in the asset of 2.5% or $3,950 (representing a further 12% return on your cash investment), for a TOTAL RETURN ON CASH INVESTMENT of 35% in your FIRST YEAR!

MONEY OUT = $33,916

CASH RETURN = $7,688
CAPITAL APPRECIATION = $3,950

(TOTAL RETURN = $11,638)

Divided By

(TOTAL INVESTMENT = $33,916)

equals

34% ROI

CALL ME TODAY TO GET STARTED!

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

What's happening in Woodstock, December 2011

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 01 Dec 2011 15:46:00 +0000

Hello again!

It's time for a market update. These statistics reflect Residential Real Estate Sales information (excluding condominiums) in Woodstock, Ontario. These statistics were generated using information from the Multiple Listing Service.

It looks like the Average Sale Price for a Residential property in Woodstock in November 2011 was $207,325, which is down from $221,112 in October of 2011, but remains up 4% over November of 2010!

This chart shows current Residential Listings, compared to Residential Homes Sold in Woodstock. As of November 2011, Woodstock showed an Absorption Rate of 7.2 months (meaning at it's current inventory and sales levels, our market would run out of inventory in 7.2 months).

I hope you find this information useful and informative - if you have any questions about this or other Real Estate related matters, please feel free to contact me!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

House Prices Flatten in September (on a National Level)

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 01 Dec 2011 15:14:00 +0000

After nine straight months of increases in the national home price, the numbers flattened in September, according to the Teranet—National Bank House Price Index out today.
Both the national composite of the recently expanded 11-city index remained at 149.52 in September.... (Click HERE to read the complete article.)

Ben Sage, Sales Representative. www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Oxford County unveils new website.

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 10 Nov 2011 20:06:00 +0000

The County of Oxford today revealed phase I of it's newly developed website. The site features a new "glossier" look, similar to other websites, streamlined navigation, upgraded search function, new mapping tool, and SMS service for news, events, tenders and other updates.

Take a minute and have a look:

http://www.oxfordcounty.ca/

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca

What's Happening in Woodstock? November 2011

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 10 Nov 2011 17:15:00 +0000

Hello again!

It's time for a market update. These statistics reflect Residential Real Estate Sales information (excluding condominiums) in Woodstock, Ontario. These statistics were generated using information from the Multiple Listing Service.

It looks like the Average Sale Price for a Residential property in Woodstock in October 2011 was $221,112, which is up from $214,230 in September of 2011, and up almost 11% over October of 2010!

Continued low interest rates, and lack of supply seem to be supporting values in Woodstock.

This chart shows current Residential Listings, compared to Residential Homes Sold in Woodstock. As of October 2011, Woodstock showed an Absorption Rate of 6.5 months (meaning at it's current inventory and sales levels, our market would run out of inventory in 6.5 months).

House prices to hold next year: CMHC

noreply@blogger.com (Ben Sage, Sales Representative) — Fri, 04 Nov 2011 13:29:00 +0000

Originally seen in The Globe and Mail

The housing market may be a boring place for the next year, according to CMHC, as the number of starts remains near current levels and resale prices hold steady.

In its fourth quarter market update, Canada Mortgage and Housing Corp. said mortgage rates would likely remain at historically low levels at least until the last half of 2012. The housing market’s fate is largely tied to rates, the agency said.

Economists and market watchers have predicted a variety of scenarios for house prices in the next year, with some suggesting prices could drop as much as 10 per cent by the end of 2012. Capital Economics goes a step further, having predicted a drop of 25 per cent in the next several years as demand weakens amid higher mortgage rates.

“Should rates move lower than projected, housing starts and MLS sales could be higher than expected and house prices could grow at a faster pace than forecast,” the report stated. “Alternatively, should financial market expectations improve and interest rates move higher than projected, housing starts and MLS sales could be lower than expected and house prices could grow at a slower pace than forecast.”

CMHC said there could be as many as 470,100 resales in Canada this year, and expects that number to rise to 485,500 in 2012.

“We expect balanced market conditions to prevail and the average MLS price to remain fairly flat to the end of 2012,” the report stated.

CMHC said 186,750 new homes would be built in 2012, compared to 191,000 for 2011. Analysts generally agree that at least 175,000 new homes are needed each year to meet demand from new families and immigration.

“Ontario, Saskatchewan and Nova Scotia’s growth will be the strongest, while Prince Edward Island and British Columbia are forecast to see modest growth,” CMHC said. “The other provinces, on the other hand, are expected to see decreases. In 2012, housing starts are forecast to increase in British Columbia, Alberta and Manitoba.”

Other highlights from the report:

· Posted mortgage rates will remain relatively flat until late 2012. For 2012, the one-year posted mortgage rate is expected to be in the 3.4 to 3.8 per cent range, while the five-year posted mortgage rate is forecast to be within 5.2 to 5.7 per cent.

· Single starts have rebounded coming out of the recession. After an increase in the third quarter of this year, they are expected to moderate before rising later in 2012.

· Since the beginning of 2011, new listings steadily outpaced existing home sales. As a consequence, the resale market has moved from sellers’ to balanced market conditions.

The agency said the economic outlook for the country was uncertain, making it difficult to forecast growth in the housing market.

“Sustained financial market uncertainty has heightened risks but, there are both upside and downside risks to the outlook,” the agency stated.

The positive: “Some upsides include the potential that the U.S. could recover stronger than is forecast, thus increasing U.S. employment and economic growth. This could, in turn, boost employment growth in Canada and lead to stronger than anticipated housing demand.”

The negative: “Some downsides include a slower than expected recovery for the U.S., reduced economic growth in emerging economies and a downturn in parts of Europe. Such events could result in slower employment growth in Canada, which could lead to lower demand for housing.”

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca

Is Zoopraisal Just a Fancy Word For "Wild Guess?"

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 27 Oct 2011 14:07:00 +0000

Article written by my colleague Asif Khan – Re/Max All-Stars

As word of Zoocasa’s new property value guessing game made it’s way around the internet, messages began to flow in from clients and colleagues. Is Zoopraisal a game changer or just simply a game? Can the values be relied upon? Is Brookfield not owned my Royal Lepage? Is this an invasion of my privacy? Will my ex now be able to find out the value of my home? Why are the numbers off by so much? All valid concerns, yet nothing to worry about. l’ll share a few of my thoughts here:

Appraising a property’s value can be as automated as diagnosing medical conditions through a computer program. Imagine going online, selecting your body type, sex, height and weight from four or five drop down boxes and then selecting symptoms from a field of three or four predetermined choices like cough, fever, rash, and loss of appetite, then have the computer generate a diagnosis. As the hourglass spins, you wait with great anticipation as your diagnosis is being determined. All of the sudden a box pops up and you now know you have pneumonia. How comfortable would you feel that the diagnosis is correct? Now let’s replace your health with your most important monetary asset – your home. How confident would you feel about your home’s value when determining the same by selecting from a few drop down boxes and choosing from a few predetermined fields?

CTV’s headline read “New service bypasses agents, offers free home appraisals”. There couldn’t have been a more misleading statement to lead off the report on Zoocasa’s new Home Appraisal system. In fact, the word “appraisal” should not even be mentioned in the same sentence/paragraph as this system. It is nothing more than a “wild guess”. It is ironic that the “Zoo” feels they can replace the human element when it comes to something as subjective as property values. Zoocasa’s business model is to have Realtors and Mortgage Brokers advertise on their site to fund it’s initiatives. Yet, obviously Zoocasa is creating a perception that they are a service which “bypasses agents” as this is the second time Zoocasa has been painted in this light. Is this not a classic case of biting the hand that feeds you? Zoocasa will argue that this is not the case and they are a “Realtor Friendly” site. However when the media is led to believe that Zoocasa is being built to “bypass agents” one would have a valid argument.

Today, Canadian Appraisers expressed their concern with the inability of Zoopraisal to provide true values to the consumer. With unique characteristics that can be found from home to home, it is unlikely that a computer generated value would be accurate. There are many factors to consider when pricing a property for sale or evaluating a price for purchase. Each home will have a wide variety of upgrades, updates and specific enhancements that increase or decrease it’s value from the average homes in the area. Outside of upgrades and enhancements, one needs to consider market conditions, competition, supply and demand. To rely on a computer generated value that is based on neighbourhood sales data – which may or may not be accurate – is misleading to the public.

The “Zoo Keepers” are working to persuade realtors to believe this new tool will benefit consumers and real estate professionals in determining true values for homes. On the contrary. Zoopraisal will confuse the general public even more by providing unattainable figures, thereby undermining the value of a Realtor and their ability to accurately determine the proper value of homes. To give you an example, I recently listed a home for $429,000. The home sold for very close to asking price and set a new record in it’s immediate area for price. The value of this home on Zoopraisal is stated to be $685,000. When searching my own home, which is valued at about $750,000, Zoopraisal gives me a value of approximately $594,000. Being a Real Estate Professional, I know Zoopraisal’s values are off base, however if I were a consumer and trusted the figures to be reliable, I would put myself in a compromising situation when pricing my property. Zoocasa’s failure to manage expectations from their launch of a fictitious value determination tool will cause a lot of problems as we move forward. If used for entertainment and taken with a grain of salt, it is a great way to spend a rainy afternoon. If relied upon for accuracy, which unsuspecting consumers will do, how will that affect not only the Real Estate industry, but also the banking industry when it comes to refinancing?

In my opinion, this upstart version of the USA’s Zillow may be positioning themselves to rival the MLS system however is it going to be a contender or just a pretender like others that have come and gone? They are riding on the coat tails of the circus that has been created by the Competition Bureau’s attack on the Real Estate industry to gain popularity, while endearing themselves to Realtors by providing banner ads for a fee. I love Zoocasa’s demographic information, and feel they do provide some value during the home buying process. I am disappointed with their venture into the “guesstimate” home valuation technique, and feel this will make a mockery of the property valuation process. As one of the first advertisers on Zoocasa, I’m disappointed in the direction they seem

headed. Signs at the Metro Zoo read “Do Not Feed The Animals”. The time may be here to apply the same advice at another “zoo” and protect my hands from being bitten.

Asif Khan, ABR
Member of Re/Max Hall of Fame
Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca

I am excited about Re/Max Curbside Marketing

noreply@blogger.com (Ben Sage, Sales Representative) — Sat, 26 Feb 2011 11:39:00 +0000

For almost a year now (I keep telling you we're ahead of the curve), the office of RE/MAX a-b Realty ltd and its agents have been working with Quick Response Codes. Many of us have implemented these codes into our marketing program, using them on our business cards for profile/contact information, or inserting them into feature sheets or onto lawn signs for quick access to information.

With the launch of Curbside Marketing, RE/MAX has made it absolutely simple to implement an advanced information system as a key part of marketing your listings.

For my listing clients, I am now including a custom sign rider (I'm sure you've seen these before) that doesn't simply have a URL on it (www.whateveraddress.com) as it has in the past. The sign rider will now contain TWO methods of gathering information; the first is a "Short Code" that you may text on your phone (free of charge, of course), and receive INSTANT information on the listing you're sitting in front of! (Photos, description, property description and details, as well as video!). The second is the trusty QR Code, which, for the more savvy Smartphone users, can be scanned by your phone's camera, and bring up the listing information without keying a single digit/letter into your phone!

Cool eh?

Watch this space for more, as I roll out this amazing service for my selling clients.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON
www.facebook.com/SageAdviceRealEstate www.bensage.com www.oxfordcountyhomes.ca

Free Plug Friday on 104.7 Heart FM

noreply@blogger.com (Ben Sage, Sales Representative) — Fri, 11 Feb 2011 17:06:00 +0000

Hello everyone!

Last week I had the extreme pleasure of being featured on 104.7 Heart FM's FREE PLUG FRIDAY with Liz and John!

In case you're interested, here's how it sounded.

BEN SAGE, REMAX FREE PLUG FRIDAY HEART FM FEB. 4.11(2) by Ben Sage, Salesperson

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Panicky Beurocrats threaten to put a damper on the Real Estate Market again....

noreply@blogger.com (Ben Sage, Sales Representative) — Fri, 14 Jan 2011 16:03:00 +0000

In a chilling reminder of what happened to our market as of July 1st, 2010, it is today being speculated that Jim Flaherty, our wonderful Finance Minster may act to stem the scourge of consumer credit that us Canadians are apparently awash in.

Pundits have been ironically warning us for nearly a year, as our spending lifts the country further from the throws of a double dip recession, and distances us from our under-water American counterparts, that our growing household debt is a problem.

Am I talking about raising interest rates? Not likely at this point. This certainly wouldn't help our escalating Loonie keep pace with the rest of the world. What is being suggested today has far more sinister consequences for the real estate market. For buyers and sellers alike.

The reduction of the maximum mortgage amortization from 35 years to 30 years (or even 25?).

Two years ago, maximum amortizations were reduced from 40 to 35 years. The results on the Real Estate market were difficult to track, as local pricing / market trends were all over the place in 2008.

This time around, I'm 100% certain that it will chill an otherwise recovering new and re-sale housing market in Woodstock. Let's look at a scenario.

December 2010's average sale price in Woodstock was $183,107.

Assuming 5% down over 35 years at a fictional rate of 3.94%, your payment would be $760.65

At 30 years, payments translate to $821.28

Under the same terms, at 25 years amortization, the payment balloons to $909.37

With Woodstock property taxes increasing at par with assessment phase-in, HST now in full effect on Hydro, gas, and other services, the dawn of Metered Water services, Time-of-day Hydro usage, Rising Garbage tag prices, and other financial pressures on the household, what do you think could happen to the value of your home?

Fewer buyers able to buy, fewer sellers able to sell for "what they need" out of a home...

Basically, a big chill. 2007-2008 all over again.

The time to list is now. Seriously!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

The Status Report - Woodstock Residential Market Update, January 2011

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 06 Jan 2011 20:28:00 +0000

2010 was a very interesting year in Real Estate Sales in the Woodstock and District Real Estate Board.

Here's a look at some of the numbers:

The average sale price in 2010 was $218,216, up 3.44% from an average 2009 sale price of $210,957. For reference, 2008's average sale price was $215,202, and 2007 was $210,510.

Here you can view a Line graph of Historic Sales Values in Woodstock for the 2009 and 2010 Calendar year, as well as a bar graph illustrating the number of Residential homes sold in Woodstock for the same period.

It is interesting to note the trend - As predicted by myself and many in the sector at the conclusion of 2009, due to low interest rates and deferred purchasing, the first half of the year would be a busy time, with prices being pushed higher by steady supply and increased demand. Take a look at what happened to average sale prices after July, 2010. The impact of the HST had a large psychological effect on the buyers in the marketplace. Additional factors that caused the decrease in sales volume and subsequently in the average sales price (by tipping the supply and demand scale) include the threat of rising interest rates ("buy now before the rates go up!), and tighter lending requirements.

Going forward into 2011, I am confident that we will see very much a repeat of 2010 in terms of overall volume and average sales prices. We've seen a pretty stagnant growth pattern year over year since 2007, and next year should look somewhat the same. I expect slightly fewer number of sales year over year from 2010, and average sale prices to remain strong, but not growing much past the $220,000 mark. It is expected by many industry analysts that we will have a very strong first half of 2011, followed by a stagnation in the latter parts of this year. In other words, the graph should look strikingly similar.

Though we do not have any major factors on the horizon that might influence the market (such as the HST introduction), we do have several smaller factors influencing market strength. The ongoing threat of higher interest rates has been somewhat subdued by latent recoveries in the domestic and American markets, but the recovery is gathering steam. This means that EVENTUALLY interest rates will start to climb, and when they do, this is bound to have a negative impact on housing values. It's been said that rates may begin to climb at the conclusion of spring 2011.

What does this mean for you?

Well, if you're thinking it's time to sell, the time to act is NOW. Catch the wave that is likely to crest in March or April if you're looking for the best value in 2011.

If you're buying, suppressed demand in the market means you will have time to act, but shorter supply trends indicate that prices are likely to increase throughout the year. Be aware of interest rate trends, and make sure you get a RATE GUARANTEE if you are planning to buy. If rates go up, you will be able to purchase less house for similar cost, so it makes sense to act soon.

If you have questions about this post, or Real Estate in general, feel free to email me here.

I wish you all a safe and prosperous 2011. I'm here, and ready to help!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

A Public Service Announcement for my Real Estate Agent friends, Clients, and Private Sellers alike...

noreply@blogger.com (Ben Sage, Sales Representative) — Fri, 17 Dec 2010 14:59:00 +0000

Local News for Friday, December 17, 2010

Wellington County O.P.P. are asking for assistance from the public in tracking down a pair of man in their thirties, after police say they entered a residence with a real-estate agent, then proceeded to tie up the agent and ransack the house.

O.P.P. responded to the call just after 12:30 yesterday afternoon to the dwelling on Wellington Road 124 in Erin. Police say the suspects removed an unknown quantity of property and then fled. The victim did not require medical attention. Police describe one of the robbers as black, almost six-feet tall, and about 200 pounds. The other man is described as hispanic, standing about six-foot-four, and weighs around 240 pounds. The pair were driving an older model Pontiac, silver--grey in colour.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Fall/Winter 2010 Woodstock Condo Report

noreply@blogger.com (Ben Sage, Sales Representative) — Tue, 30 Nov 2010 15:44:00 +0000

After a tough year for Condominium sales in 2009, the prospects for selling a condominium in the Woodstock market are definitely improving, as signs of stability are returning to the broader economy. A return to moderate confidence in the market has fueled a rebound in the Condo market throughout 2010. Compared to only 60 condominium units sold (4 new) in the entirety of 2009, the market has shot back with a 21% rebound this year, with Year to Date sales of Condominium units in Woodstock totaling 73 (and we sit at November 30th). 5 of these reported sales were of new condominiums.

We have also seen some new and exciting condominium developments in Woodstock, including Woodstock's first "Stacked Townhouse" Condominium Complex in the South end of Woodstock. With prices starting at $169,900 with a garage, this style of affordable luxury is certain to catch on. They are a commuters dream, just seconds from Highway 401.

In the northeast end, The Builders Group is listing Residential attached condominiums, in 2 storey non-traditional style. For the budget minded, these units start at $219,900.

In the Alder Grange subdivision, on the north end of Woodstock, sales continue of new Ranch-style attached condominiums, with either single or double garages, in 2 - 3 bedroom configurations, while across Highway 59, you have additional choices available, with Bungalows and Loft style Condominiums.

Employment prospects in Woodstock and Area remain promising, with CAMI on 6 day rotations indefinitely. This plant is expected to churn out 250,000 vehicles in 2010, a record for this facility.

Toyota has been and continues to produce the RAV4 in its Woodstock facility, and many Woodstonians make the 25 minute drive up the 401 daily to produce Corolla's in the Cambridge facility. The Woodstock factory employs roughly 2000 people and produces 150,000 RAV4's annually.

If you're making the commute from Cambridge or London into Woodstock, may I suggest looking at some affordable Condominium options? With Condos ranging from $65,000 up to $300+, we certainly have something that suits your budget, and needs.

I'd be happy to help.

For more information on Condominiums in Woodstock, head on over to Your Condo World website, or email me and we can chat!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

A Ground Level View of the changes to Organized Real Estate in Canada

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 04 Nov 2010 20:06:00 +0000

So, by now we've all heard about the groundbreaking changes to the way organized Real Estate functions in Canada. There have been many media reports on these fundamental changes, some have been accurate, and some have, of course, been extremely sensationalist - guess which stories get talked about more frequently?

I'm going to try to break down the changes into every-day terms, so that my clients, prospects, and colleagues can have a decent grasp on THE FACTS, and what this means for them. I will do my best not to editorialize this Blog post - try to keep it fact based as much as I can!! Keep in mind, these changes are all very new to all of us, even those of us involved in the Real Estate business, as we have been kept in the dark until very recently, due to the ongoing settlement between CREA and the Competition Bureau.

First off, let me dispel a common misconception. Individual Sellers are NOT now able to post their listing on the MLS® system. MLS® remains a member to member system. www.realtor.ca is the public portal to view listings that have been posted on the Member to Member MLS® system. This has not changed.

What HAS changed is the minimum service that can be offered by a Real Estate Salesperson or Broker.

Previously, if you chose to LIST your house with a Real Estate Salesperson on the MLS® system, an Agency/Representation agreement was mandatory. In short, this meant that by hiring a Realtor to list your home, you had no choice but to pay for a full service, including filling out listing documents, photographing, organizing showings, qualifying buyers, hosting open houses for agents and for the public, and negotiating offers to purchase your house. This Representation agreement comes with fiduciary duties to the seller, which comes with its own set of responsibilities and consequences for improper behaviour. (It is important to note that many Realtors have a different idea of what "full service" actually means, but that's a different topic altogether).

What this settlement includes is a removal of the AGENCY PILLAR in the 3 pillars of the MLS® system. This is where the misconceptions about "public listing on MLS®" comes from.

In short, Sellers now have the option of OPTING OUT of the Representation portion of our "Standard" listing forms. Sellers wishing to utilize the MLS® must still use a licensed Real Estate Salesperson to put their listing on the system, however, they may retain the right to handle many services on their own. They can handle all of their own showings, they are free to qualify their own buyers, host their own open houses, take their own pictures, market their own property, negotiate their own offers, and basically perform any of the duties that a Full Service Real Estate Salesperson would traditionally have handled. It is important to also note that in order to satisfy the requirements of MLS®, all listed properties must include a "C/B" (Co-broker commission amount). This is what a Buyer Representative will be paid to negotiate a successful purchase on behalf of their Buyer client. The settlement does not specify what amount this C/B needs to be. That is up to the seller.

The tricky portion of this new settlement is that the Realtor who takes a "mere listing" may have waived his or her fiduciary duties to the seller, however they remain responsible for the accuracy of the information on the MLS® listing. It remains to be seen whether problems arising out of a mere listing will result in litigation being brought against the Listing Agent (ie, will opting-out of Representation ACTUALLY relieve the listing agent of any responsibility should something go wrong).

I liken this to "slippery when wet" signs on the floor at mcDonalds. They can put out the signs, but if someone falls and breaks a hip and dies, can you predict who may lose the pending lawsuit?

One non-negotiable aspect of these changes is the fact that sellers wishing to have a "mere listing" on MLS® will not be able to post their contact information directly on the MLS® itself. Links can be provided to external sites containing names and contact information, but this direct seller information will not be posted directly on the MLS® public site. As mentioned above, MLS® remains a Member to Member service.

Another common misconception is that the system has been changed so that sellers can now post their house on MLS® for a Flat Fee. Sellers always have been free to negotiate whatever listing agreement they chose, and as such this has ALWAYS been the case. Commission can be either a percentage of sale price, or a flat fee. This has not changed. As mentioned previously, this agent was not able to opt out of the Representation portion of the Listing Agreement, as this would have been contrary to the Rules of the MLS®.

As previously mentioned, this is all relatively new to me, and to every Real Estate Salesperson and Broker in Canada. If this has caused any confusion, or if you have questions about this settlement, please don't hesitate to ask - I will do my best to answer in an honest, objective manner!

I'm sure I will have more to say about this in the coming days and weeks, but I think that covers the changes on a really basic level.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

This is a test post! Ignore me!

noreply@blogger.com (Ben Sage, Sales Representative) — Tue, 02 Nov 2010 03:37:00 +0000

Just testing Facebook "like" feature. Ignore this post!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Housing Demand Perks Up

noreply@blogger.com (Ben Sage, Sales Representative) — Sat, 30 Oct 2010 13:26:00 +0000

*Article courtesy of Heather Degraaf @ Scotiabank
Contact Heather for all your mortgage needs. 519-535-7890

Housing Demand Perks Up

After a seasonally uncharacteristic spring and summer slump, Canadian home sales appear to be stabilizing at a new lower, but more sustainable level. National MLS sales volumes increased 3% m/m in September, building on a similar gain in August. Sales activity is still down almost 20% y/y but the decline is accentuated by las August's record monthly sales pace. Two-thirds of local markets reported higher sales last month.

The moderate pickup in housing demand is being aided by lower borrowing costs. While policy tightening by the Bank of Canada has led to a modest backup in variable mortgage rates, fixed rates have come down across the maturity spectrum in recent months, mirroring the drop in bond yields. We expect interest rates will stay lower for longer, underpinning steady housing demand through the fall, contingent on at least a modest pace of job growth.

With new listings edging up only marginally last month, the new-listings-to-sales ratio edged down to 2.0. Meanwhile, the month's supply of active listings fell for a third consecutive month to 6.6. Both metrics suggest a more balanced national market. Sellers (and builders) in Canada remain highly responsive to underlying market conditions. Unlike in the United States, Canadian foreclosure rates are low and not a significant source of downward price pressure. New construction too is gradually moderating. As would be expected given generally balanced conditions, average prices are essentially flat (+0.2% m/m and -0.2% y/y). Prices were overbid last fall as buyers outnumbered sellers, but have fallen back to more reasonable levels.

While ultra-low interest rates remain highly supportive for the interest-sensitive housing market, moderate economic growth and hiring, debt-leery households and high home prices will keep many buyers on the sidelines for now. Look for a flattish fall national market from a sales and pricing perspective.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Woodstock cracks top 100 cities for Growth and Entrepreneurship.

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 21 Oct 2010 20:45:00 +0000

The Canadian Federation of Independent Business has just released a report outlining the top 100 Canadian Cities for Entrepreneurial growth. The report utilizes many different factors to achieve ranking, such as presence, growth, health, and policy environment for small businesses.

Congratulations to Woodstock for cracking the top 100 - #97! Only 4 places behind Toronto, the economic engine of the country!

For more details, check the full report, here.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Globe: Mortgage breakage costs: let’s stop the nonsense

noreply@blogger.com (Ben Sage, Sales Representative) — Fri, 06 Aug 2010 14:04:00 +0000

I found this article interesting and very relevant. Check it out!

Original Article

Have you ever wondered why the banks list posted mortgage rates that are ridiculously high?

One reason is that it could result in you paying $10,000 or more in extra penalties should you ever break your mortgage with them.

Here is the scenario:

Many people have, at one time or another, looked at breaking their mortgage in order to get a better rate.

With interest rates dropping to historic lows, it is more and more common for homeowners to think about the benefits of breaking their mortgage, paying a penalty, and locking in to a new lower rate mortgage.

Traditionally, the mortgage penalty on fixed rates is either 3 months interest OR something called the Interest Rate Differential (IRD) – whichever is higher. On a closed, variable rate mortgage, it is usually simply 3 months interest.

While the 3 months interest is pretty easy to understand, the IRD is a little mysterious. For help on this, I went to TD Bank's mortgage website. RBC has a similar section.

They both show the following formula:

Step 1: (A) The current interest rate under your Mortgage expressed as a decimal (for example, 6.75% = .0675)

Step 2: (B) The current interest rate that we can now charge for a mortgage term offered by us with the term closest to your remaining term. The interest rate will be our posted interest rate for the term minus the most recent discount you received

Step 3: (C) A - B = C, which is the difference between your current interest rate and the interest rate in B above (write C as a decimal)

Step 4: (D) Amount you want to prepay

Step 5: (E) Number of months for the remaining term of your Mortgage

Step 6: (F) (C x D x E) ÷ 12 = F, F is your estimated Interest Rate Differential Amount

Let’s say you have a mortgage at 4.75%, and it comes due in 2 years, and it has a current principal owing of $400,000. TD’s current 2 year posted rate is 4.1%. Let’s say that you were offered a 0.5% discount off the 2 year rate. The math would work as follows:

.0475 (A) – .0385 (B) = .009 (C)

.009 (C) * $400,000 (D) * 24 (E) / 12 = $7,200 (F)

While $7,200 seems like a lot of money, if you can lock in a 5 year mortgage today at 4%, you are benefiting from 2 years of a 4% interest rate instead of 4.75%, but you are also guaranteeing three additional years at 4%, when it is quite likely that in two years, a 5 year fixed mortgage rate will be a lot higher.

Here comes the evil part.

At many big banks, they don’t use your existing 4.75% rate. What they do is take the posted rate at the time you took out your mortgage. This is a rate that has no relevance to you, as you never paid it. In fact, it likely isn’t listed anywhere on your mortgage contract. Remember the ridiculously high mortgage rate we talked about at the beginning of this article? Now you see what it can be used for.

If we take the same IRD formula, but replace the actual rate of 4.75% with a posted rate of 6.25%, the IRD becomes:

.0625 (A) – .0385 (B) = .024 (C)

.024 (C) * $400,000 (D) * 24 (E) / 12 = $19,200 (F)

Because of this sleight of hand, you would now owe the bank an additional $12,000!

If you try and fight the calculation, you will likely face a long line of staff who don’t understand the calculation themselves. A few months of complaining through the right channels might get you your money back.

In the March budget, the federal government said it would “bring forward regulations” to standardize the calculation and disclosure of mortgage pre-payment penalties. (This applies to federally regulated lenders.) We are still waiting.

This is exactly the type of situation where a good financial advisor can help you avoid or manage. The situation on IRD calculations as it currently stands with the big banks is rotten to the core.

_____

Nice eh?

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Chicken Little and Media...

noreply@blogger.com (Ben Sage, Sales Representative) — Wed, 04 Aug 2010 13:01:00 +0000

If you're anything like me, you're a compulsive news reader. I have a love-hate relationship with news-media. I feel it is very important to be in touch with the world around me, as it impacts my business on a day-to-day basis, as well as shaping the future of my marketing avenues, and business planning, however, it can be very difficult to overcome the overwhelming, and CONSTANT negativity in the news.

At this time I am in a position, thanks to some wonderful Realtors and Industry analysts, to repeat a prediction that I encountered recently. Brace yourself for it - THERE WILL BE NEGATIVE MEDIA regarding the Real Estate market, very shortly. Yes, I know, this is a shocking revelation!

My goal today is to soften the impact of this sensationalist media by preparing you. By arming you with the facts.

Most of this content is "borrowed" from a gentleman named Doug Hannan, who is a Broker/Manager for RE/MAX West on Bloor st in Toronto (Another universe in Real Estate land, but nevertheless, seemingly the sole focus of real estate media in Ontario).

Doug obviously follows the Toronto Real Estate Market very closely. He has noted that in the month of July. TREB's (Toronto Real Estate Board) sales numbers were slightly lower than expected. He also noted that inventory had dropped a proportional amount, indicating balance in the market. Sales for the month were 6,566 units, down 1,900 from June of the same year (a typical seasonal drop - Vacation time!!). New listings this month are down 3,000 units to 21,096. It is to be noted that RE/MAX Realtors have been predicting a decrease in inventory since late 2009.

Where the media sensationalists will galvanize, is in the Year over Year numbers. It stands to reason that a July 2009 vs. July 2010 drop in sales of 35% would yield some alarm bells, but I am predicting that the media will have a decidedly un-elephant-like memory. They will fail to note (as they have previously failed to note) that July of 2009 was an absolutely ABNORMAL month, even in an extremely hot year. July 2009 Sales set a record at 9,967 sales (up 28% from July 2008). Benchmarking against the best July of ALL TIME is an unfair method of assessing the health of our market. The media won't mention this, save for a tiny disclaimer at the end of their "Real Estate Bubble is HERE, the sky is falling, depreciation is just around the corner, thousands to be left over-leveraged on inflated prices" reports.

The Sky is not falling, friends. Balance and sustainable growth will be the cornerstone of the immediate Real Estate market.

Thanks Doug - for the insight!

To Reach Doug Hannan of Re/Max West, try this:
doug.hannan@sympatico.ca

Thanks for reading!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Reason #67 to use a Realtor to list

noreply@blogger.com (Ben Sage, Sales Representative) — Sat, 03 Jul 2010 19:12:00 +0000

... Happy Canada Day weekend everyone... As a point of interest, I've been trying to find information about a home for sale in Otterville for 27 minutes and counting.

The home is posted for sale on www.propertyguys.com, and the site hasn't managed to be able to handle my search request yet... It appears to not understand what "otterville, Ontario" means.

Don't put a potential buyer through this!!!

When you hire me to list your home, you won't simply get a listing on Realtor.ca. I put your listing information in so many places, even if Realtor.ca happens to be down, a quick google search (or my trusty personal website) will get you more information than you can possibly imagine.

Fanshawe College’s Woodstock Campus expansion hits funding setback

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 03 Jun 2010 16:48:00 +0000

(Woodstock, Ontario) A major expansion project at Fanshawe College’s Campus in Woodstock has been denied funding through the Government of Canada’s Community Adjustment Fund (CAF).

Fanshawe applied for $11 million in CAF funding to help offset the costs of a proposed $14 million campus expansion to accommodate increasing demand in Woodstock and area.

“This is a huge disappointment for Fanshawe and for our partners in Oxford County,” said Fanshawe President Howard Rundle. “We are committed to providing training opportunities for students in this region, but we cannot do that as effectively as we want to without significant expansion to our Woodstock Campus. The demand is there. We need the support.”

The CAF was created as part of the federal government’s economic stimulus plan. It has earmarked $1 billion to support projects that create jobs and maintain employment in communities that have experienced significant job losses due to the global recession and lack of alternative employment opportunities. It is administered locally by the Federal Economic Development Agency for Southern Ontario. In 2010/2011, the CAF is providing $127.8 million for renovations in southern Ontario selected through an intake process.

Fanshawe, established in Woodstock in 1967, has identified campus expansion there as a key priority in its capital planning. The campus is running at full capacity, with enrolment at 300 full-time and 3,300 part-time students in recent years. Initial construction plans call for a first phase expansion of 65,000 square feet, with a second phase addition of 26,000 square feet, comprising new labs, classrooms, flexible teaching facilities, and workshops.

Fanshawe College and the City of Woodstock have each pledged $1 million in funding for the project; in addition, the City has contributed $1.25 million in property and facilities.

“Attracting investment to the region is dependent upon a highly skilled workforce,” said Woodstock Mayor Michael Harding. “Fanshawe is an important partner. We support the College’s efforts to grow, to offer more programs, and to help us continue to build an educated workforce in Oxford. Our commitment remains unchanged.”

President Rundle said that while the funding denial is a setback, Fanshawe will continue to investigate other ways to fund the project.

“Community colleges are more important than ever as Ontario moves toward a knowledge-based economy,” President Rundle said. “We know that tomorrow’s jobs will require technical skills and specific training, and we are still working with our partners to make that training available in Oxford County. We are optimistic that the project will eventually go ahead as planned.”

For more information, please contact:

Donna Derer

Chair, Woodstock Campus

Fanshawe College

dderer@fanshawec.ca

519.421.0144 ext. 222

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

HST and its impact on Real Estate - Scotiabank Update

noreply@blogger.com (Ben Sage, Sales Representative) — Mon, 22 Mar 2010 15:10:00 +0000

Hello all,

This morning I got an update from Heather Degraaf at Scotiabank regarding HST and it's impact on Real Estate Sales. This has clarified a few issues and questions for me, so hopefully it will be helpful for you:

_________

What is HST?

The merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.

Who does it Affect?

The New HST affects Ontario and British Columbia

Nova Scotia, New Brunswick, and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec, and Prince Edward Island all collect separate PST or QST (Quebec)

How much is it?

In Ontario, it will be 13% (5% GST + 8% PST)

When will it be implemented?

Beginning July 1, 2010

How does it affect the sale of my current owner occupied principal residence (resale)?

The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST

When does the HST apply to the sale of a new construction home or new rental property?

Builders sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.

The provincial portion of HST would not apply to builders sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.

The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser, before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.

Is there a Housing Rebate?

Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate

Please visit http://www.rev.gov.on.ca/en/taxchange/index.html and http://www.gov.bc.ca/hst for more information on the rebate.

Are other closing costs subject to HST?

Yes, other costs associated with the purchase of you rnew house, including legal fees, home inspection fees, appraisal fees, and real estate agent commission fees will be subject to HST.

This information was provided by Heather Degraaf, Mortgage Development Manager, and Heather can be reached at 519-421-5260

For more information, feel free to contact Heather, or myself!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Ontario set to outpace the rest of the country in 2010!

noreply@blogger.com (Ben Sage, Sales Representative) — Thu, 11 Mar 2010 14:10:00 +0000

Reprinted from CBC NEWS

Ontario's economy is expected to outpace the national average with 3.3 per cent growth this year and 4.1 per cent growth in 2011.

RBC Economics says increased housing activity and greater vehicle production spurred a return to positive growth in late 2009.

The bank forecast says Ontario's construction sector should see a rise in activity in 2010, fuelled by higher capital spending.

It also says high demand for real estate should extend to new homes, with housing starts likely to hit 64,200 units this year — 14,100 more than in 2009.

But, the report says, "this recovery will not be evenly felt across economic sectors. For instance, the province’s hard-hit manufacturers will continue to face many obstacles. Top on the list of impediments will be the continued strength in the Canadian dollar ... which will dampen the beneficial effect of improving demand south of the border."

RBC notes that a strong Canadian dollar limits U.S. demand for Ontario exports and the auto sector is susceptible to more turbulence.

The forecast also predicts the introduction of the new harmonized sales tax [HST] in Ontario on July 1, will be 'possibly the biggest policy event to occur in 2010 ..."

"Although the HST will result in certain currently exempt products and services being taxed, moving to a value-added tax structure will make the tax system more economically efficient and will improve the competitiveness of Ontario businesses by lowering the cost of doing business in the province. The benefits of such a tax system will accrue over the medium to longer term."

The report says the Ontario economy should improve this year and next as more industries move into recovery mode.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

For my 100th blogger post, I have EXCITING news!!

noreply@blogger.com (Ben Sage, Sales Representative) — Tue, 16 Feb 2010 14:11:00 +0000

Back by overwhelmingly popular demand, the County of Oxford has announced another round in the Ontario Affordable Housing Program (AHP).

If you're currently renting, and you are having trouble saving for a downpayment, you may qualify for up to 10% in downpayment assistance, courtesy of the AHP.

The EXCITING news here is that this government issued assistance is available on NEW homes and RE-SALES!!! That opens the door to far wider selection of homes to consider!

Contact me today for more information, and to start looking for that perfect place!

MORE INFO HERE

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Updated Mortgage Rates, Courtesy of Dominion Lending

noreply@blogger.com (Ben Sage, Sales Representative) — Tue, 09 Feb 2010 15:54:00 +0000

Hello everyone!

WOW! Interest rates have decreased again! Here are the rates as of Monday February 8th.

6 month 3.50%
1 year 2.49%
2 year 2.95%
3 year 3.40%
4 year 3.85%
5 year 3.64%
VRM closed 2.05% ( prime - 0.20% )
LOC 3.15% ( prime +0.90%)

Holly Breckenridge
Mortgage Agent
Dominion Lending Centres
(First Capital Inc.) License #10746
88 Wellington St
Stratford, Ontario
N5A 2L2
Ph 519-275-5029
Fx 519-273-4202
License # M09000659

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON