Best Real Estate Agent Brampton: 2014

The Jobless Recovery is Complete

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It has been several years of watching millions of people chase the few jobs out there but that is changing in a hurry and permanently. Early November numbers indicate that 321,000 jobs were added to the U.S. economy. Revisions for September and October show that 44,000 more jobs than had been estimated were actually added. 2014 is turning out to be the biggest employment growth year since 1999. Unemployment Will Remain Low Within the next couple of years, the concern will shift from unemployment to labor shortages. Baby boomers continue retiring at an unprecedented rate. More than a quarter million Americans turn 65 every month. Many remained in the workforce during the recession because they saw their Wall Street invested retirement accounts shrink. Wall Street has recovered and these seniors are now feeling more confident about leaving the workforce. Only about 17% of baby boomers have retired to date, meaning a lot of jobs will become available in the near term future. The peak hiring of the millennial generation has passed meaning fewer people will be entering the workforce. As soon as next year, those born between 1981 and the early 2000s will become the majority of the workforce. They will soon be earning more money and have increased purchasing power across the entire economic spectrum, including homes. What This Means for Real Estate The shrinking workforce and millennials becoming dominate in the economy creates two significant changes in the residential real estate market. First, wages for these first time homebuyers are going up. Although the millennial generation has shown a preference for inner city apartment renting, this should change as their wages increase and they become more family orientated. In the early 2020s, many more first time buyers are expected to enter the market. However, not in the numbers that baby boomers once bought at. In addition, as baby boomer age, many will move out of the family home and into some type of senior housing. This will create an abundant market of existing houses. The second major change coming is that interest rates are going to start going up. The Federal Reserve has been artificially holding interest rates down to stimulate the economy. With unemployment down and wages heading up this artificial stimulation is about to end. Most experts now expect the Federal Reserve to raise interest rates beginning the summer of 2015. Exactly how this will affect real estate isn’t completely clear. While the raising income of millenials will absorb some of this increase in interest rates the increase will certainly lock some of the younger generation out of the marketplace. The banks have also been easing access to mortgages lately. If this continues, it’s likely to add more fuel to the real estate market. 2015 very likely will be a year of strong growth. The Real Estate Future With optimism comes a tendency for many to over react. A building and investing cycle is on the horizon. If investors and builders are overly optimistic, this could lead to another cycle of boom and bust. Real estate is always a market of supply and demand. Hopefully, we’ve learned from the past and will keep supply and demand in balance to create a stable market going forward. The real estate market also has several moving influences pushing it in several different directions. Currently there are some major forces at work. While another major event like another recession could change everything, right now the future of real estate is promising.

Thoughts on Real Estate Investing

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Whether you’re a seasoned professional or a novice investor there are fundamentals that you should always be paying attention to when investing in real estate. The fundamentals for beginners may be second nature to experienced investors but they aren’t to the beginner. The beginner needs to keep these in mind every step in the process of making his or her first purchase and sale.

Money can be made in any type of real estate market but it takes different strategies that change on a regular basis. There are two basic investment strategies. One is to buy and hold as rentals and the other buy and flip as quickly as possible. Within those two basic strategies are many other options. Today, one of the better buy and hold strategies is the lease option where you hold for a few years but have a plan to sell to the renter at a future date. For those wanting to flip houses, being able to owner finance them (even using other people’s money) is a great strategy. Both of these strategies are working well today because of the tough lending qualifications and because so many people have damaged credit scores coming out of the recession.

Real Estate Investing for Beginners

First and foremost, have an exist strategy. Never buy a house just because you can get it at a good discount. Know exactly what you are going to do with it once you own it. It’s also preferable to have a plan “B” and a plan “C”. Once you have an exit strategy, join an investment club if you haven’t already. Decide on a couple of experienced members that you trust and possibly use the exit strategy you’ve decided on. Invite them to lunch. Explain your strategy to them and ask them to punch as many holes in it as they can. Use the information you learn to improve your plan.

Expert advice for beginners is invaluable. An example of a big mistake one beginner was advised not to make involved a double lot. The beginner had found a double lot at a deep discount in a lower to middle income subdivision. He saw a huge opportunity to buy the lot and then go through the permit process to subdivide it with the intention of more than doubling his investment by selling two individual lots at retail. When he discussed his plan with an expert, the expert suggested that before making the purchase he first look into his ability to subdivide the property. When the beginner did, he learned that it could not be subdivided because of a wildlife habitat issue. The only use the property was suitable for was building a small mansion in the middle of low-end neighborhood. Obviously not a good investment strategy.

Real Estate Investing for the Experienced

If you’re at the top of your game, the best thing you can do to stay there is remain humble. Lack of humility is the biggest problem any businessperson can cause for them self. People simply don’t like doing business with someone that is arrogant. The best deals won’t be made available to you. When you do find a decent deal, negotiations won’t go in your favor when you portray yourself as always coming out on top. Stay humble and you’ll do much better.

Being humble includes offering your experience and knowledge to beginners and others less experienced than yourself. Don’t think of them as competitors and blow off their requests for help. There are plenty of deals for everyone. Occasionally, taking the time to thoroughly think through the strategic basics will also help keep you at the top of your game.

GTA resale market to be strong in 2015

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Opportunities for investors in the GTA will abound in 2015, as more homeowners in the area will list their houses for sale, creating a more balanced market, according to experts. Speaking at CMHC’s Toronto Housing Outlook Conference yesterday, senior market analyst Dana Senagama said the GTA’s sales-to-listings ratio will be 55 per cent, though some markets will deviate. For instance, the Durham region, which includes Ajax, Oshawa and Whitby, will see a sales-to-listings ratio of around 75 per cent. Senagama also highlighted more good news for investors: a strong demand for rental units. She pointed particularly to growing long-term investor activity around rental condominiums. “If you’re making the decision to invest, you need to look at the rate of return,” she said. “Thus, look at cap rate, which has between four and 4.5 per cent in the last five years.” It may be that investors are more motivated by capital gains, she added, since there is a stronger price appreciation (around 20 per cent) for new condos. “We’re seeing around a quarter of the total condo universe rented out by investors.” Looking more widely across Ontario, Ted Tsiakopoulos, regional economist at CMHC, said the province’s rental market will continue to tighten – great news if you’re an investor. “Nothing here suggests to me that prices are going to fall, that you should be rushing out to sell your real estate,” he said. Residential real estate assets in the province have been historically stable, he added. Bob Dugan, CMHC’s chief economist shared a Canada-wide outlook during the conference, forecasting slower growth in housing prices in 2015 and 2016. He added: “Price growth will drop below 2% in 2015 and 2016. Where we end up in that range depends on what happens with the economy.”

Rents Are Up, So Are Evictions

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On average, nationally rents have increased 7 percent year on year while income has only gone up 1.5 percent. Over the long haul, renting has appealed to people because it was less expensive than buying. Renting has traditionally cost about 25 percent of average income compared to ownership costing 30 percent or slightly higher (according to Zillow). Today, renting is costing the same percentage of income as buying does. For many, it would more sense to buy if they could come up with the down payment and qualify for a mortgage. Unfortunately, they can’t qualify and landlords are taking advantage.

One small financial emergency and a month’s rent is missed. That becomes grounds for the landlord to start the eviction process if the tenant doesn’t voluntarily move out. Some greedy and vicious landlords are looking for any minor violation of a lease agreement to send renters to the street so that they can bring in new renters at a higher rent. It can be as minor as a single noise complaint or a claim that the renter is hoarding unwanted materials in the rental unit.

Evictions Are a Legal Process

The eviction process varies from state to state. However, the U.S. Department of Consumer Affairs describes it this way. When a tenant doesn’t voluntarily move out of a rental unit after legally being given notice to vacate, the landlord can file an unlawful detainer lawsuit in superior court. The eviction process is a legal process that will almost always result in the tenant having it added to his or her legal/criminal record.

The tenant is given legal notice that a lawsuit has been filed. These lawsuits move through the courts very fast. The tenant often has no more than five days to file a response if he or she wants to contest the suit. A judge will typically then make a formal decision within 20 days. If the tenant hasn’t made a response and appeared for trial, the judgment will almost always favor the landlord.

The landlord cannot use “self-help” measures to remove the tenant from the rental unit. For instance, the landlord cannot change the door locks or cut off utilities. The landlord must use the court-approved process to evict the tenant. If the landlord does use unlawful methods to remove the tenant, the landlord typically becomes financially responsible for any damages or hardships the tenant incurs.

The Court Eviction Process

The court process does vary from state to state. Generally however, if the tenant presents a case that shows there is no reason for the eviction (perhaps the rent has been brought current), the court will not evict the tenant. Instead, the court might award the tenant damages for filing fees and attorney costs depending on the language contained in the lease.

When the court finds in favor of the landlord, a writ of possession is issued. The writ of possession is an order for the sheriff to remove the tenant from the unit. Typically, the renter has about five days to voluntarily move before the sheriff physically removes the tenant from the rental unit. The court will likely award damages in favor of the landlord in the form of back rent, court filing fess, and attorney fees. In some states, the court can also order the tenant to pay a fine to the landlord for not leaving the unit when originally and legally told to do so.

All traditional court proceedings apply to evictions. A tenant being evicted can require “discovery of evidence” and/or subpoena witnesses and other legal proceedings. This includes the right to appeal a judgment that goes against the tenant. However, even on appeal, the tenant will typically be required to move before the appeal is heard.

5 Reasons You Should Give Home Automation Some Thought

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Whether you have just recently moved into a new home or if you have been considering upgrades for safety and for property value purposes, consider the option of home automation. There are a few reasons to consider home automation regardless of the size of your home, how much you travel as well as where you are located.

Safety and Protection

With a home automation system installed, you have the ability to lock down doors, windows and any other access points to your home, whether you are inside or out. Home automation systems detect break-ins and alert authorities as well as homeowners as quickly as an incident occurs, regardless of the severity of the incident itself. Getting peace of mind with a home automation system is another benefit of having one installed.

Accessibility

Many home security systems today allow for the ease of accessibility. It is now possible to view installed security cameras with the use of your television, desktop computer and in some cases, even your smartphone. Using your smartphone or another computer is a way to monitor any cameras you have set up throughout your home or even any outdoor property you are protecting at all times.

Having the ability to check on your home from just about any location is a way to ensure nothing is out of place or that you are not at risk of a potential intruder or danger. Using an automation system with security and smartphones allows you to alert authorities immediately if you spot something that is out of the ordinary while away from your home.

Features and Options

Depending on the type of home automation system you have installed, it is also possible to use a temperature gauge and monitor. Monitoring the temperature in your home is an ideal way to ensure your heating or air conditioning unit is working properly when you are unable to check on it yourself. Be sure to review all of the features and options available provided from individual home automation systems to ensure you are getting the most for your investment. Comparing features and prices is a way to find a home automation that is ideal for your property, regardless of your own needs and its location or size.

Another feature that is available with many home automation systems today includes timed lighting. Timed lighting helps to ensure you are not keeping the same lights on when you are not in the home. By having a timed automated system set up for lighting, it is much easier to leave the home or travel without looking conspicuous or becoming a target to potential thieves who have been looking into your neighborhood.

Home Warranty

Opportunities Working together with home warranty companies is another way to ensure that your home security system is always covered and can be repaired or inspected at any times. A home warranty company is capable of offering long-term warranties to ensure your household is entirely protected for years to come. Having a home warranty for your automation system is a way for you to feel protected whether you are out of state or even traveling globally.

Less Hassle

When Traveling and Out of Town Although it is still advisable to inform close family friends, and even neighbors when you are going tout of town for vacation or business, there is less need to do so with a proper home automation system installed. With features such a timed lighting and the ability to check on your home and all of its rooms at any times, leaving your home unattended has never been easier.

The more you know about what home automation systems have to offer, the easier it becomes to find a security option that is right for you and your household.Whether you require home automation for your main home, a vacation home or even your place of business, there are plenty of packages and options available for you.

Learn To Become A Pro At House Shopping

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A lot of people want to buy the best kind of real estate as they invest their money, but they aren't sure how to go about it. What you have to keep in mind is the more you know the better chances you have at buying real estate at the best price.

When you are buying a home you should always have people in your own corner. Get your seller agent first thing. Also when you are doing things like having the home inspected or appraised hire your own people as well.

When you are looking at buying a home look up the neighborhood for sex offenders. The police are in charge of keeping that list updated. However your agent may be able to help you find that information. Of course if you have children you wouldn't want to move next door to someone that has a record that involves children.

If you are a first-time homebuyer, don't make the mistake of buying the first house that you like. You need to view at least three other houses that are comparable in value, before making a decision. Too often, people get caught up in the mere idea of buying a house, not realizing that there may be something better out there.

Look at a lot of houses before you buy, even if you love the first property you tour. It can be easy to fall in love with the idea of buying a house and then, consequently, the first property you see. Make sure to tour many other properties for comparison, just to make sure that the house you choose has everything you want or need.

The information in this article is a great place to start when thinking of strategies you want to use towards buying real estate. Remember that the tips in this article is only a portion of the information you can know about how to be successful in buying the real estate that's right for you.

Study: Green Neighborhoods linked to healthier babies

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Pregnant women living in “green” neighborhoods are more likely to deliver healthier babies, suggests a new study from researchers at Oregon State University and the University of British Columbia.

What makes a neighborhood green: the presence of trees, leaves, grass, and other greenery. Mothers who live in such greener spaces are more likely to deliver at full-term and have babies born at higher weights compared to mothers who live in urban areas that aren’t as green, according to the study recently published in Environmental Health Perspectives. “This was a surprise,” says lead author Petty Hystad, an environmental epidemiologist at the College of Public Health and Human Services at Oregon State. “We expected the association between greenness and birth outcomes to disappear once we accounted for other environmental exposures, such as air pollution and noise. The research really suggests that greenness affects birth outcomes in other ways, such as psychologically or socially.” Researchers controlled for factors such as neighborhood income, exposure to air pollution, noise, and neighborhood walkability. Between 1999 and 2002, researchers tracked more than 64,000 births in Vancouver, British Columbia. They found that when mothers lived in greener neighborhoods, pre-term births were 20 percent lower, and moderate pre-term births were 13 percent lower for infants. The study also found that infants from greener neighborhoods tended to be of a healthier weight: They weighed 45 grams more at birth than infants from less-green neighborhoods. Why the link to healthier pregnancies and green neighborhoods? More research needs to be done to determine if green space opens the door to more social opportunities and enhances a woman’s sense of belonging in the community, or if it has a psychological effect in reducing stress and depression, Hystad says. The study also was not clear on what type of green space is most beneficial to pregnant women, but Hystad says that adding a planter to a patio or a tree to a sidewalk wouldn’t make a large difference in birth outcomes. The study is one of several recently that shows the health benefits of green space, Hystad says. “We know a lot about the negative influences, such as living closer to major roads, but demonstrating that a design choice can have benefits is really uplifting,” says the study’s senior author Michael Brauer of the University of British Columbia. “With the high cost of health care, modifying urban design features, such as increasing green space, may turn out to be extremely cost-effective strategies to prevent disease, while at the same time also providing ecological benefits.”

Using the WOW Factor to Sell Flipped Houses

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“WOW” Factor

When a potential buyer views a property, you want them to experience the “wow factor.” What is the wow factor? This is what your potential buyers should be saying, “this is the nicest house I’ve looked at so far!” First impressions are very important. When a buyer walks into your home for the first time, you want to leave an impression that they will remember.

Each time you sell a property, you should ask the buyer why they bought your house. Inevitably, many will have looked at 20, 25, 35 homes before buying yours.

Remember, you’re looking to sell to the perfect-condition homebuyer and you want to make your property seem very appealing to that type of buyer.

Creating the Wow Factor: Aside from a completely renovated home with modern amenities such as granite, re-finished hardwood floors, and everything new from top to bottom, here are a few more things to increase the wow factor:

Stainless Steel Appliances: In almost all cases, you want a matching stainless steel stove, dishwasher, and microwave. Not only does it give more perceived value, it also makes the kitchen look more complete. Rather then dead space, the kitchen now has brand-new appliances. Occasionally, you might include a matching refrigerator.
Free Home Warranty: Although a free home warranty is not a physical feature, it provides a great deal of comfort and confidence in the buyer’s mind. It costs $300-375 but is a huge selling feature.
Free TV: You might want to try offering a free 46” flat screen TV. You can hang a plastic imitation flat screen TVs on the wall with a small sign that says, “With an accepted offer, you get this free TV.” The cost is $680 for the actual TV. By having a replica of the TV in the home, it provides an additional wow factor.
100% Ready: Never show the house to potential buyers until it is 100% ready. 100% ready means vacuumed, deep cleaned, spotless, and ready to go. The perfect-condition homebuyer is turned off if it’s not 100% and you want to have an amazing first impression.
Mats/Sign: To give potential buyers the image that your homes are “high-quality,” you should put mats at the door entrances with a sign reading, “Please take off your shoes.” The image this gives the buyer is that this home is a first-class property.

Listing Agent

Once a property is 100% complete, you want it listed on the MLS. Your image is very important as part of the “wow factor”. The goal is to attract a buyer’s agent. The process of buying a home has changed from the traditional real estate model. In the past, a person would hire a realtor (buyer’s agent), the realtor would give them a list of houses to look at and then show them the properties.

Today, in almost all cases, a buyer searches on the internet for homes for sale in the areas they are interested in living in. After they find a home they are interested in, they call up a realtor to request the realtor schedule a showing. Either way, in most cases, it’s a buyer’s agent who has the buyer so the listing must be designed in a way to attract buyer’s agents to show your homes.

Hiring the Right Listing Agent: It’s important to choose the right listing agent. You want the top-selling agent in the area to list your properties. The benefits are:

Image: The top selling agent in the area has a well-known name, image, and branding. You want to be associated with that image. Only go with agents having an image of listing the best houses in the neighborhood.
Buyers: The top selling agent has a large buyer base. Often, the listing agent or someone from his/her office will sell the home.
Work Ethic: He/she became the best selling agent from working hard. You want an agent who is totally dedicated to selling your property.
Repeat Business: The top selling agent is motivated by repeat business. One of the indicators used to measure an agent’s success is the total number of homes sold. Unlike a one-time homebuyer, or home-seller, as an investor, you represent repeat business, which helps him/her reach or maintain his/her status.

Responsibilities of the Listing Agent: The job requirements for the listing agent are very clear and specific and include the following:

Yard Sign – Your agent should put up a professional (no scratches/dents) yard sign that is very visible from the street.
Brochures – Each property needs a 2-page color brochure explaining the features, neighborhood stats, school/shopping info, updates, etc. It has numerous pictures and showcases all the benefits of the home. Copies of the brochure are placed in an info box attached to the yard sign. Brochures must be refilled weekly. A stack of brochures is also placed on the counter inside. You want each potential buyer to take a brochure with them when they leave. Often, buyers will look at several properties at a time and you want them to remember your home above all others.
MLS Pictures: High quality pictures are essential. You’d be amazed at how often you see MLS listings with no pictures, only a few pictures and/or poor quality pictures. How detrimental to the listing! A buyer often decides if they will even look at the property solely based on these pictures. Upload the maximum number of pictures allowed on the MLS. Special attention is given to the lighting, order, quality, angles, etc. of each picture.
Comments: There is a lot of psychology that goes into the comments. Like the pictures, well-crafted comments will draw the buyer in to set up a showing to view the house. The key is to focus on features. Here is an example of comments for a high end house:

“New cabinetry, granite countertops, and stainless steel appliances in a spectacular new kitchen, home is completely remodeled, it’s like a new house. Bathroom is completely stylish and completely new. Lots of gorgeous refinished hardwood floors, new carpeting, and new travertine-look ceramic tile. Neutral paint and crisp white trim throughout. This won’t last long, acclaimed Lake Orion schools.”

Notice some of the key words used – “granite”, “completely remodeled,” “gorgeous,” “refinish,” and “neutral paint.” You want to create urgency with all your write-ups (“hurry this won’t last long”). The MLS comments section limits the number of words so you’ve got to be concise. A top selling agent should be able to create a top-notch comments section.

Feedback: You want to require personal feedback on each showing. Not an automatic email that says, “Please give us your feedback.” You want the listing agent (a real person) to call the buyer’s agent that showed the property and get personal feedback. Here are some of the questions to ask:

How well did the property show?
What is your opinion of the price?
What did the buyer like most about the house?
What did the buyer like least about the house?
In a rating from 1-5, one being bad and five being excellent, how would you rate this property?

Some agents can’t be bothered to give feedback and don’t want to talk. Your listing agent needs to be personable on the phone. He or she also needs to be persistent about getting feedback because it’s crucial that you receive that feedback. A recent investor had a property listed for 60 days and was getting 5-6 showings consistently each week but wasn’t receiving any offers. He wasn’t getting any feedback so he had no idea why buyers weren’t making offers. Without feedback, there is no way to know what the market thinks about the house. If you’re having showings but not getting offers, there is a reason and the feedback will let you know why you aren’t getting offers.

Credit Repair Tips To Restore Your Sanity And Security

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Many people think having bad credit will only impact their large purchases that need financing, such as a home or car. Still others figure who cares if their credit is poor and they cannot qualify for major credit cards. Depending on their actual credit score, some people will pay a higher interest rate and can live with that.

Do not fall prey to the seven or ten year bad credit "monster" so many creditors put forth. You can positively impact your history through diligence and effort. These time frames are by no means a set standard on how long negative reports affect your standing. Many times these are used as a scare tactic to keep you from being proactive in your efforts.

To avoid getting in trouble with your creditors, keep in touch with them. Explain to them your situation and set up a payment plan with them. By contacting them, you show them that you are not a customer that does not intend to pay them back. This also means that they will not send a collection agency after you.

Try credit counseling instead of bankruptcy. Sometimes it is unavoidable, but in many instances, having someone to help you sort out your debt and make a viable plan for repayment can make all the difference you need. They can help you to avoid something as serious as a foreclosure or a bankruptcy.

With the new credit card laws in place, banks must now decline your card in the event of a possible overdraft. They will most likely try to get you to opt out of this, claiming that it is a service they provide to approve the purchase anyways, and then charge you a small fee. These fees are high. You will be much better off getting declined and using a different bank account or credit card for your purchase, than paying their fees.

As we have seen, having bad credit cannot only impact your ability to make large purchases, but also prevent you from gaining employment or obtaining good rates on insurance. In today's society, it is more important than ever to take steps to repair any credit issues, and avoid having poor credit.

10 tips for first time real estate investors

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Many people consider investing in real estate as a way to build a nest egg and have tenants help you pay the mortgage. There are pros and cons to taking that leap, but if you do, here are 10 things to know.

1.Visit with a mortgage broker or your bank to determine how much money you can afford to borrow responsibly for your investment.

2.Look for properties that generate a positive cash flow. What this means is that the rent that you receive from tenants should be enough to pay your mortgage payment, property taxes, utilities and insurance bills. Budget an additional ten percent on your overall payments to pay for minor repairs that will invariably arise. Currently this is very difficult to find in the Toronto area. Do not be afraid to expand your search to smaller communities, where you will be able to find more properties that match your search criteria.

3.Use an experienced local real estate agent who also invests in real estate themselves. Investors learn about the pitfalls only through first-hand experience, both good and bad, and you want that experience working for you as well.

4.Have any property inspected by a professional home inspector. In addition, find a contractor who you can trust to give you the right advice for any minor repairs or renovations that may be required, especially for older properties, in order to add the most value to your investment.

Related: 10 things to know about buying a home

5.Consult with your accountant and lawyer as to how you will take ownership of the property. There are some benefits in taking title in the name of a limited company, in order to protect yourself against personal liability should someone get hurt on the property and for other tax planning purposes. However, on the other hand, you will also have to pay about $1,000 in incorporation fees and have to file a separate tax return each year for your company.

6.Keep proper records of income and expenses for your investment property. Do not mingle these with your personal bank account as it will become difficult to properly trace this when you have to file a tax return at the end of the year, regardless whether you own the investment in your personal name or in a company name.

7.If you are buying with a partner, make sure you have a proper partnership or joint venture agreement to protect both of you should things not work out as planned. In particular, provisions should be made if one of the partners wants to sell and the other one doesn’t, one partner is not paying their share of expenses or what happens if one of the partners dies.

8.Hire an experienced property manager to assist you in finding suitable tenants and dealing with any ongoing maintenance, repairs or other complaints by tenants. You do not wish to be woken up in the middle of the night to handle emergency repairs. Budget an additional $100 per month for this service.

9.Be careful not to buy and sell properties quickly. The Canada Revenue Agency may view this activity as business income. This means that you will have to pay tax on any profit you make on your investment. It is preferable to buy properties for the long term, rent them out and use your positive cash flow to reduce the amount of your mortgage owing, building equity in your property. If you then sell years later for a profit, it will likely be classified as a capital gain and thus one half of your gain will be tax free.

10.Don’t be afraid to walk away if the deal does not work for you, no matter how much time you may have invested in the property.

The Purpose of Commercial Real Estate is to Service Society

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When you consider the future of commercial real estate, what is your number one consideration? It should be the direction that society is going in. From manufacturing to warehousing to retail to apartment buildings, commercial real estate is all about servicing society.

Manufacturers that don’t keep up with technology won’t be able to produce customized products in mere days. The automotive industry has been moving in this direction for years. Manufacturers that master technology that quickly delivers customized products will thrive. Those that don’t will go bust.

Commercial Sectors Behind the Power Curve

Full service malls are already on the decline. Mall anchors such as Sears and J.C. Penny’s are going dark all over the country and causing the smaller stores to shutdown with them. These once major chains might survive in a much smaller online version but the mall format is doomed on two fronts. Both from the continuing growth of internet sales and from the proliferation of discount sellers like Wal-Mart and Target. Mall properties may soon be worth no more that the land they stand on. Warehouses are another sector of commercial real estate in dire trouble. While the high tech distribution centers like Amazon and FedEx have heavily modernized and automated their facilities, most warehouses have not and are way behind the power curve. Most warehouses are nowhere near having the ability to make one day or same day deliveries. This is analogous to car manufacturers that can quickly deliver customized products. The highly automated warehouse will thrive in the future and the antiquated ones will go the way of the large malls. Our population insists on instant gratification and only distributers that can deliver will survive.

The Country Will Urbanize

One sliver of hope for malls is they could be repurposed into the town centers that Baby Boomers, Gen X, and Gen Y are demanding. These massive sections of the population want the charms of city living where they can to live, work and play in a compact area. But just any old building on any old block in the city won’t do. The commercial properties that will thrive are those that reinvent themselves for old technology into modern mixed-use properties. The younger generations work to live instead of living to work as the Baby Boomers did. The younger generations want to take frequent breaks from work and demand amenities in or near the work place. This could lead to a repurposing of malls and older office buildings.

Suburbs Need to be Modernized As Well

The transition into city life doesn’t mean that suburbs will be abandoned. Millennials still like this life style. But as is true for much of our aging infrastructure, suburbs need a major facelift. Millennials want the same compact lifestyle as the other generations except they want it outside of the hustle and bustle of the city. They too want a work-play environment. Suburbs will become more walk able communities with high-speed public transportation into the cities. Besides technology, the other big change to commercial real estate will be the green movement. Society will demand a small carbon footprint that is more ecologically friendly. While “going green” is happening across Europe, it’s still mostly a buzzword here. Still, commercial properties that want to thrive will need to greatly improve technology and go green in the years to come.

Living in an Older City is “Healthier”, claims new study

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Older cities are generally healthier than many newer cities because compact street networks promote more walking and biking, according to researchers at the University of Colorado Denver and the University of Connecticut.

The study’s co-authors looked at 24 medium-sized California cities with populations between 30,000 and just over 100,000, examining street network density, connectivity, and configuration. They studied how street design correlates with obesity, diabetes, high blood pressure, heart disease, and asthma rates collected by the California Health Interview Survey since 2003.

The report concluded that more intersections in a city leads to a reduction in obesity at the neighborhood level, as well as a reduction of obesity, diabetes, high blood pressure, and heart disease at the city level. The study also found a correlation between wider streets with more lanes and increased obesity and diabetes rates.

“Over the course of the 20th century, we did a great job of engineering utilitarian active transportation out of our daily lives,” said Wesley Marshall, study co-author and assistant professor of engineering at CU Denver.

“While they were well-intentioned design decisions, they effectively forced people to make an effort to seek out exercise and we are now seeing the health implications of these designs.” Researchers also looked at each city’s “food environment,” and found that more fast food restaurants were associated with higher diabetes rates and more convenience-type stores correlated with higher obesity and diabetes rates. “While it is possible to lead an active, healthy lifestyle in most any type of neighborhood,” Marshall said. “Our findings suggest that people living in more compact cities do tend to have better health outcomes.

” Additionally, the study found that the presence of a “big box” store tends to be indicative of poor walkability in a neighborhood, and was associated with a 13.7 percent rise in obesity rates and a 24.9 percent increase in diabetes rates.

“Taken together, these findings suggest a need to radically re-think how we design and build the streets and street networks that form the backbone of our cities, towns, and villages,” said Norman Garrick, co-author and associate professor of engineering at the University of Connecticut. “This research is one more in a long line that demonstrates the myriad advantages of fostering walkable places.”

That Flipped Home Might Be Far From Perfect

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It is easy to look at a flipped home through rose-tinted spectacles, and to assume it is ready to move into and that there won’t be any major pitfalls. Unfortunately this might not be the case, as most property flippers or contractors will be anxious to shift the house as quickly as possible so they can move onto their next project. As a result, work can often be rushed and below standards you’d typically like to see in your own home. An article in aol.com has highlighted the major things to look out for when buying a flipped property, to help avoid any nasty surprises once you move in.

One thing many of us are guilty of is getting caught up in the excitement of buying somewhere new. It can be very easy to focus on nice shiny new appliances, or marble or granite countertops, and to not pay attention to the overall quality of the work. A properly refurbished home will be nicely finished. Signs that this isn’t the case can include moldings that aren’t properly lined up, gaps in between the wall and countertops, poorly finished tiling and light switch plates that don’t quite fit properly. Often the cabinets in the kitchen won’t quite shut properly. Even though these seem like minor cosmetic issues, they could indicate more important jobs haven’t been carried out properly, and it is well worth paying closer attention to other areas that could be more expensive to rectify. This might include water heaters gas lines or the electrics panel. It is easy for potential buyers to assume a home that has been newly renovated is new enough not to require an inspection, but this could be a costly assumption to make. An inspector can make sure all work was up to code and can check the general standard of the work.

It is worth getting an inspection even if the work has already been signed off by the city as they will only have been interested in the health and safety aspect. A home inspector will check every part of the house, ensuring it is perfect. It is even more important to make sure the contractor obtained all the relevant permits, and that they were all signed off. You should receive copies of all the final permits, or otherwise you should be able to find them online. Failing to check these details could mean you end up being liable for illegal or poor quality work.

Although work on flipped homes is often carried out to a good standard, it is worth carrying out your due diligence to make sure you don’t get caught out.

Hourly Pricing vs. Project Pricing

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Where to start is by considering both methods of paying contractors; hourly or by the project. You’ll soon learn there are significant differences.

Paying Hourly: When you pay a contractor hourly, 100% of the responsibility to save money is on you, the investor. If the contractor hustles, you’re going to save money, and that’s what is enticing. Paying hourly requires heavy oversight to make sure the contractor hustles. But, if the contractor doesn’t hustle then you lose money. From experience, you’ll find that an hourly contractor will hustle on the first one or two jobs but the tendency over time is to slow down for job security.

Depending on your state laws, you also run the risk of having the contractor classified as an employee instead or as an independent contractor. Only hire independent contrators. That way you don’t have to be their accountant and responsible for for their taxes, insurance, and other costs and responsibilities that come with having employees.

Paying by the Project: Paying a contractor a set price for a specific scope of work puts the responsibility to make money on the contractor because if he hustles, he makes more money, if he doesn’t hustle, he loses money. For this reason, project pricing is better than hourly pricing. A good gauge of a good contractor is that he prefers being paid based on the project because he knows he’ll make more money then hourly. For example, a contractor once worked all through the night hanging kitchen cabinets on a project (a neighbor called complaining about the noise). The following day he was asked why he worked all night. His response was, “I like money more than sleep.” You can be guaranteed that wouldn’t have happened had he been getting paid hourly. Paying by the project is also a good tool for staying on schedule.

Selecting Contractors

Selecting the right contractors is critical to completing the rehab on schedule with quality craftsmanship at the right price.

Understand Labor and Material: The better you understand the “going rates” for each subcontractor, the better you will be at selecting the right contractors. For example, a recent quote from a painter came in unexpectedly high. You should know that the material should cost approximately $900 and a 2-man crew should be able to complete the job in approximately 30 hours for each painter. If each painter earns $20/hr, labor should cost approximately $1,200. When you take the time to learn how much material and labor costs are for painting, you will have a gauge ($2,100) when reviewing quotes. In this example, the quote from this new contractor was $3,800. After asking him to explain why his price was $3,800 (to make sure your not missing anything), you can determined that you aren’t missing anything and his price quote is simply too high. Find a different paint contractor.

Attention to Detail: You want contractors who are really paying attention to detail, really looking at the big picture, going the extra mile. If you have contractors that go the extra mile then they will stay on your team. If they aren’t a team player and don’t pay attention to detail, you can easily replace them. It’s a competitive market and you should use that to your advantage as the boss.

Proven Track Record: All contractors must first have a proven track record. What does that mean? You don’t want to be the “on-the-job training” program. For example, you don’t want someone learning how to do ceramic tile on our job. You want an established tile contractor on your job that is experienced and good. For that reason, contractors must be highly referenced. Your best contractors should come highly referred to by another respected investor or contractor. And you should offer your own references to others for highly skilled contractors that pay attention to detail. Being totally involved in your rehab projects will make you a lot more money than hiring a general contractor.

Recent Report Thinks Housing Will ‘Soar’ in 2015

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Just recently there have been quite a few rumors that the housing market is about to take a turn for the worse, but an article in Housingwire is predicting the opposite. This is based on a report released by Altos Research which says the market will begin to soar next year. Although the report does concede that demand will ease, it is still quite bullish about the outlook for the housing market. Based on its models, the company is forecasting another year where home values will rise. It is predicting a 7% increase for next year. This is quite remarkable as some experts are anticipating that house prices will depreciate next year.

Apparently this negative view is largely due to the media, according to the report from Altos Research. They think this outlook is short-sighted, and even though they concede the concerns are valid they feel the variables affecting home prices are proven to be driven by new household formation and low supply in the market, constrained by low new construction. The main reason Altus Research feels prices will increase by 7% is that it expects inventory levels to increase by another 10%. It’s anticipated that as inventory levels and the number of transactions continues to increase, alongside house prices, then participants in the real estate market will broadly benefit.

In addition they point out that the number of days houses remain on the market before attracting a buyer is still low compared to figures seen before the housing crisis. This shows it’s still very much a sellers’ market. During a sellers’ market, sellers are able to list their homes at a higher value in the hope that a buyer will be tempted to pay the price. If this fails to attract a buyer, then the seller always has the choice of reducing the price closer to market values which also gives the buyer the impression of a compromise. According to Altos, just over a third of properties will see the price is reduced in this way, something the company sees as an indication of weaker overall demand combined with strong competition.

The report points out that the housing market recovery will soon enter its fifth year. The market is still dealing with low inventory levels and demand, but is boosted by an expanding economy and overall remains healthy. As a result supply and demand are becoming more balanced.

Five-year mortgages holding firm, but just wait

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Five-year fixed mortgage rates tend to roughly track the yields on five-year government of Canada bonds, because those influence the cost of the funds that the banks obtain to lend out. Yields on five-year government of Canada bonds have fallen. They ended last year at 1.95 per cent, and this week were below 1.50 per cent.

“If you went back to the start of the year, there was an absolute consensus that bond yields were going to head higher,” explains Toronto-Dominion Bank chief economist Craig Alexander. “Not dramatically, but there was an absolute consensus that bond yields would be increasing through the course of 2014. So, one of the big surprises this year has been the drop in bond yields.”

Canadian bond yields tend to mirror those in the U.S. because the market views the securities as alternatives to one another.

“One of the things that happened at the start of this year was, initially, there were some concerns about emerging markets and the angst over the slowdown in China,” Mr. Alexander adds. “But then we started to get very weak economic data out of the United States, and there was news that the U.S. economy outright contracted, and you saw broad-based scaling back of expectations about global growth. So, while some of the fears about emerging markets diminished, it happened at the same time that people found something new to worry about.”

So, a more negative outlook for economic growth in the U.S. and elsewhere turned into good news for Canadian home buyers.

But Mr. Alexander thinks the U.S. economy is on pace to grow faster than most other advanced countries in the second half of this year. “As a consequence, I think that the rally in bonds that we’ve had since the start of the year is likely to be reversed, from an economic fundamentals point of view it’s only a matter of time. The thing that economists are notoriously bad at is timing.”

In other words, economists are still expecting five-year fixed mortgage rates to creep up, they just don’t know exactly when. Mr. Alexander now expects five-year bond yields to creep back up to about 1.95 – where they were at the end of 2013 – by the end of this year. He then sees them rising by about 90 basis points next year, largely during the second half of the year.

Encouraging Boomerang Kids to Move Out

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In the not so distant past, it was expected that kids would leave home after college, and most of us were anxious to do so. Nowadays things are often quite different, and many parents find themselves looking after adult children with little idea of when they will fly the nest.

An article in aol.com points out that a significant number of young adults are now choosing to return home, and recent research by Gallup shows 14% of young adults aged 24 to 34 years old have moved back in with their parents. During the first quarter of this year the homeownership rates for those aged below 35 was 36.2% compared with a historical high of 43.1% at the end of 2005. These figures are attributed to the high cost of living, college debt and a weak job market.

While some parents may welcome their adult children back into the nest there are plenty of others who would like to have their homes back to themselves. The article goes on to highlight several points that could encourage children to fly the nest. The first is pretty unsurprising and that is to charge rent if you’re not already doing so. This helps to give boomerang kids a bit of a reality check and could be enough to force them to seek out alternative accommodation, as if they are being forced to pay rent they might as well do it as an independent adult. Another idea is to collect monthly payments that are equivalent to local rents for the next six months. The money is returned to them at the end of this time when they leave home.

This helps encourage them to budget properly and give them a helping hand on setting up their own. It can also help to enforce house rules such as no guests after 10 PM and no loud music or parties. Most young adults will soon baulk at these strict rules and want to gain more independence through living in their own place. Some parents may find it helpful to set a deadline for the amount of time children are able to live with them. Once this deadline is set it’s important to stick to it, as after all most parents didn’t bargain on having their kids living with them for more than the first 20 years or so. Boomerang kids may also need a bit of help in setting up their new home and in organizing and buying all the things they’ll need. Parents can help by making a list of everything that is essential plus everything that might be nice to have a little later down the line.

A Couple Of Things To Know Before Getting Into Debt Consolidation

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With the state of the economy, it is no wonder why so many people are turning to debt consolidation. It can really help a person's financial troubles. But, on the other hand, if you don't know much about it, debt consolidation can cause more problems. In this article, you will be given tips to help you use debt consolidation properly. Don't fall victim to companies claiming to cut your monthly payments in half with just one phone call. It is understandable that you want a quick solution to your problems, however, you can just be making your situation worse. Sit down and consider the different debt consolidation options that are available to you and decide on the pros and cons. To pay off your debt, try borrowing money from friends or family. This is a great way to save interest. That said, there may be several problems like possibly damaged relationships, expecting returned favors in the distant future despite paying it all back, and possible legal action from a family member or former good friend. Exercise caution when using this suggestion, and make sure to pay it all back in a timely fashion. Consolidate all of your high interest credit cards onto one credit card with a reasonable interest level. If you've got multiple cards above 20% interest, you are paying way too much. That money going to interest could be helping you pay off that debt! Plus multiple cards means multiple minimum payments. It's best to attack one card alone if you can. Now you can see that there is a lot you need to know about debt consolidation if you want to use it the right way. Without knowing much about it, you can get into deeper trouble. Use the above information, as well as any other information you acquire, to use debt consolidation properly.

Home Improvement: Make Your Home More Valuable With These Easy Tips

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Many home-improvement jobs can be done without the help of a professional. Many self-help books are available that you can use to learn exactly what techniques and equipment you need for any job. If you follow the directions, you should be able to get the job done right the first time.

Many tenants who are renting an apartment or home are in a pickle when landlords don't allow tenants to paint the walls in a different color or take off the wallpaper that doesn't suit their tastes. A great way to get around this is by purchasing flat bed sheets (the unfitted kind) and tacking them in a pleasing design on the wall. This will not harm the underlying wallpaper or paint and can add a touch of personality that won't displease the landlord.

Protect yourself when you change the blades in your utility knife. While changing the blade, wrap tape around the old blade before tossing it in the trash. By doing this, the sharp edges of the blade will be covered. When taking out the trash, or packing down the trash, the sharp edges will not be able to hurt anyone with the tape wrapped around them.

In order to save money on air conditioning costs during the summer, try installing ceiling fans. Ceiling fans recirculate air within a room, cooling it down without the need for turning on a central air system. They are relatively easy to install and can be installed in place of your lighting fixture.

Doing the home improvements yourself can give you a lot of pride and joy. The money that you can save from doing the improvements on your own could be used somewhere else or to do more improvements in the future. Following the directions in the books will make the work quick, easy and rewarding.

Read This Article, Master The Topic Of Debt Consolidation

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Nobody likes to deal with overwhelming debt. However, this happens to people all the time, especially for people who have not heard of debt consolidation. Continue reading to learn more about how debt consolidation can help you.

Prior to searching for a debt consolidation company, make sure you look through the FTC regulations regarding this topic. Read about things like debt relief and negotiation companies. It will give you some of the background you need to go forward with the process, and it will make you feel more prepared in general.

When choosing your debt consolidation company, look at the big picture. You need to deal with your debts today, but you need a company which will continue to work with you into the future. This includes offering courses on budgeting or debt counselors.

To help you consolidate your debts consider borrowing against your 401k plan. Many employers allow employees to take a loan out against their retirement plans. One of the benefits to this is that you pay the money back to yourself. The interest rates are generally very low and the interest paid also goes back into your account.

Consider the benefits of debt consolidation, even if you're debt isn't that heavy. For example, a debt consolidation loan with very favorable terms can save you a lot of money in interest every month. A single payment is also much easier to manage than many. Weigh the pros and cons, and see if debt consolidation can put you in better financial shape.

Nobody wants to be faced with a huge amount of debt, but the unfortunate reality is that many do. Learning all that you can about debt consolidation can help you see if it's right for you. Review the above advice regularly as you proceed, and you truly can emerge from the despair of debt.

We'll Teach You All About Debt Consolidation

Article Source:http://bestmortgagebrokers.net

Has the stress of too many bills each month got you down? Are you writing out check after check and not seeing your balances go down? Well don't worry, that is why there is debt consolidation. In the following article there are great tips on how you can combine all your bills into one simple payment to help you get out of debt fast.

Find a debt consolidation service in your area. These services will negotiate with your creditors and manage your payments for you. You will only have to send money once a month to your debt consolidation account and it will then be distributed to the different creditors the service negotiated with.

Don't make any decisions on a whim. Seriously, you're talking about your personal finances here, something that will affect the quality of your life in many ways. Because of this, real research is needed. Understand what got you here, learn about your options, and fully research the debt consolidation firms you are considering.

Figure out how your interest rate will be formulated for your debt consolidation. An interest rate that is fixed is the best option. This will allow you to know exactly what's going to have to be paid during the loan's life cycle. Adjustable interest rates can be tricky. Those interest rates can increase as time passes.

Never borrow money from someone totally unfamiliar to you. Loan sharks are there to hurt people when they need help. When borrowing money to pay off your debt, make sure you have a reputable debt consolidation company.

Combining all your bills into one simple payment is an easy process. All you need is to be educated on how it's done. Don't let the craziness of writing too many checks each month pile up on you. Take the valuable information learn here and use it to your advantage to simplify your bill paying process each month.

Tips And Tricks For Accomplishing Home Improvement Projects

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Anyone needs a little advice in home improvement, even if you are a professional. There are just those projects that you may not be 100% sure of, or techniques that you don't know about. If this is the case, great advice could be just a click away. Start with this article and learn some great tips about home-improvement today.

Remove a door from its frame without taking out the screws in the hinges. Need to take out a door so you can move a big piece of furniture? All you have to do is drive a nail through the bottom of the barrel of the hinge so the pin slides out of the top. Do that on both hinges and the door is free!

Repairing leaky faucets is an excellent home improvement project for even a novice handyman. When you can deal with the issue quickly, you'll save on your water bill. This is a project that will pay for itself in no time.

Improve the outside of your home by landscaping with plants native to your geographical region. Native plants are proven to do well in your climate, so the long-term results are predictable. You can plan your landscape with confidence that the look you want to achieve will be the look you get. If you choose non-native plants instead, there is a risk that the plants may not thrive in your climate.

When hiring someone to perform home improvement work on your residence, do not pay cash. Always pay by either check or credit card; you will have a documented trail showing that your contractor has been paid. If you pay cash, it could become your word against his word, and you won't have any proof that you followed through with payment.

Home improvement tips, like the ones in this article, are always going to come in handy when you approach the various situations you will come across in a variety of home-improvement projects. From simple repairs to the home to great and elaborate remodeling projects, learn all you can so you can do your best.

All You Need To Know About Debt Consolidation

Article Source: http://bestmortgagebrokers.net/

The burden of unmanageable levels of debt is something that nobody ever wants to face, but far too many people do. Debt consolidation can be a useful solution, provided that it is done in smart, deliberate manner. The piece below offers lots of helpful tips for ensuring that you make the best decisions for you and your family.

When considering what options are available to you with debt consolidation services, avoid the assumption that anyone advertising themselves as non-profit is automatically trustworthy or affordable. Some imposters steal the term and make deals that are bad for the consumer. Call your local Better Business Bureau to check out the company.

Prior to making any debt consolidation decisions, look at the privacy policy of the company you are considering. You'll be giving this company a lot of your personal financial information, and what they are allowed to use it for is a really big deal. Never assume in this instance. Look to that privacy policy to know the real situation.

Ask your debt consolidation firm about any sort of education services they offer. Quite often, these firms have excellent training opportunities that can help keep you out of this situation in the future. That's important for your financial well being! Take advantage of any opportunities that they might have, even if you think you're already prepared.

Get a debt consolidation company's TOS (terms of service) in writing before making any decisions. It should have information about their fees and how long you will have to use their services. They should also outline what the benefits of using their company are. If you cannot get anything in writing, steer away from the company.

Extreme amounts of debt plague an unfortunate number of individuals, many of whom feel there is no hope for ever climbing out of the situation. However, when done wisely, debt consolidation offers a way out. Hopefully the information presented above has given you the tools you need to move forward with confidence.

How To Get Debt Consolidation To Work For You

Article Source: http://bestmortgagebrokers.net/

Crippling amounts of debt have a powerful ability to undermine self confidence and sow the seeds of family strife. For that reason, it really does pay to take some time learning about possible solutions to debt problems, including debt consolidation. By reading as much as possible on the topic, it is possible for anyone to make a prudent choice that will lay the foundation for a firm financial future.

Look online for a lender to help with your debt consolidation. Lenders online have a good track record for supplying loans quickly and safely. Research the lender to ensure that they are well known and respected in the industry. Carefully read all the terms associated with the loan and you should have an easy time of securing one that fits your needs.

Try borrowing money agaisnt your life insurance policy. You do not need to pay back what you borrow if you are unable to or do not want to, however it will get deducted from what you've paid to your beneficiaries. That is why you should plan on paying the money back.

Do you own a life insurance policy? Cashing in your policy will allow you to get out of debt. You must talk with your insurance company to see what you can receive against the policy you hold. You may be able to borrow against your investment to pay for your debts.

It is important that you read the fine print of any debt consolidation loan before agreeing to it. For instance, let's say you get a home equity loan. Should you default on this loan, your lender can take your home from you. Prevent this from occurring by reading the fine print.

Debt problems plague an astounding number of people, and many of them simply do not know where to turn. The purpose of this article was to discuss the good and bad aspects of debt consolidation to help readers determine their best course of action. Hopefully it has proven to be a useful resource that will be revisited often.

What to Do When Your Credit Card Debt Has Been Charged Off

One of our readers, Ashok, sent us this question:

Sir, I am a credit card defaulter. I changed my address and likelihood of bank finding me is almost zero. But I feel guilty to do this and want to settle my account with bank, However, i am not in a condition to pay the full amount, but would like to get my name written off from bank’s defaulter list. How do I settle my account with bank? What kind of rebate i can expect? Is there any agency to help me out in this?

Thanks for your question Ashok!

You are wise to want to settle the account out for several reasons:
Credit card companies employ entire departments of people they call “skip trace”. Which basically means when someone skips out, they harass everyone you know until they find you.
The credit card company will keep reporting the debt to all three credit bureaus until they write it off. When they write it off, they will sell your debt to a new collection company, who will also report your debt to all three credit bureaus. When they give up on trying to find you, they will simply sell your debt to another company.
If anyone ever does catch up to you, you can expect them to sue you, and garnish your wages.

Now, assuming that they do not ever find you, you will still have to deal with the damage that delinquent account is doing to your credit score. So, you are exactly right to want to make good on the debt. It will begin the process of repairing your credit.

There is one thing you need to be aware of before you begin. Now, I do not know how old your debt is, but I can tell you that if your credit card company has written off your debt already, calling them will “re-open” it, and they will begin collections all over again. This could actually cause you to have multiple negative accounts on your credit report over the same debt – so do a couple of things first.

If you want to make good on your debt what you have to do is pull all three of your credit reports, and find out who currently owns your debt. From that point, you have two options:
Call the collection company who owns your debt now, and offer a settlement for a reduced amount.
Send a certified letter to the collection company that currently owns the debt telling them that you refuse to deal with anyone but the original owner of the account (the bank that issued the card.) This is your right by law.

There are pros and cons to both of these:

Collection companies are used to making settlements, and they will likely settle for less than your original bank will. However, they may have tacked on quite a few additional fees to your account that would not be charged to you if you deal directly with the bank that gave you the card.

The best way to know if fees have been added is to look at your credit report. Look at the amount your bank charged off, and then compare it to the amount the new collection company says you owe.

Settling the debt with the original bank will look better on your credit score because it will show a paid charge off. If you pay your original bank you can wait a few months, and challenge any negative information on your reports that resulted from the collection companies (not the original bank.)

As far as what kind of a settlement you can expect: it depends on how much you are willing to negotiate. In situations like yours, you should easily be able to cut the total by 50% if you are dealing with a collection company. If you deal with the original bank, upwards of 30% is a reasonable expectation.

As far as organizations that can help, yes, you will get the help you need from a credit counseling agency. Just be careful which one you choose, because not all of them do a good job. They will negotiate with your creditors on your behalf, and get the account settled for you.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

What to Do When Your Credit Card Debt Has Been Charged Off

One of our readers, Ashok, sent us this question:

Sir, I am a credit card defaulter. I changed my address and likelihood of bank finding me is almost zero. But I feel guilty to do this and want to settle my account with bank, However, i am not in a condition to pay the full amount, but would like to get my name written off from bank’s defaulter list. How do I settle my account with bank? What kind of rebate i can expect? Is there any agency to help me out in this?

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Canada Scraps 'Millionaire Visa,' Sends B.C. Property Market Reeling

Real estate agents in Vancouver say property prices could take a hit, after Canada scrapped a program which allowed wealthy immigrants to fast-track the visa process.

The Immigrant Investor Program, launched in 1986, offered visas to business people with a net worth of at least $1.6 million who were willing to lend $800,000 to the Canadian government — for investment across Canada — for a term of five years.

By 2012, the scheme had to be temporarily frozen due to a huge backlog of applications from wealthy mainland Chinese hoping to come to B.C. Now, the government has announced it will end the program for good and scrap all 59,000 applications backlogged worldwide.

The decision came less than a week after the South China Morning Post published a series of exclusive investigative reports into the controversial scheme.

Property prices could take a hit

In West Vancouver, real estate agent Clarence Debelle is still receiving offers from mainland China for luxury property, but she’s concerned the end of the investor program will have an impact on the local economy and the high-end housing market.

“I deal directly with these people who bring a lot of wealth, who are creating lots of jobs for local Canadians — builders, trades, architects, realtors like myself,” said Debelle.

“Most of the buying is coming from Chinese immigrants who are wealthy, so if we make it difficult for them to come into this country, we have killed 80 to 90 per cent of the buying in West Vancouver.”
Immigration lawyer Richard Kurland agrees.

“When you suddenly stave off the intake of literally hundreds of millionaires in the Vancouver property market, prices can only go one way and that’s down,” said Kurland.

Market impacted by more than investors

Others aren’t so sure. Even with the investor program frozen, housing prices continued to rise.
Tom Davidoff with UBC’s Sauder School of Business says the market is driven by other things like low interest rates and the local and global economies.

“Given that in the last couple of years, we haven’t seen the market cool off, it’s hard to believe that freezing the investor market is going to kill even the high-end in Vancouver,” said Davidoff.

The government has also announced the end of the Entrepreneur Program, a smaller scheme for business people who plan to own and manage a business in Canada.

However, wealthy investors can still come to Canada through the Start-up Visa Program, which encourages immigrant entrepreneurs to partner with private sector organizations to invest in local start-ups.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.