As central bankers clamor to attach parachutes to the falling stock prices by infusing capital in anyway possible, we have seen stocks and currencies rise and fall daily with more volatility than even the most seasoned traders can stomach. Both prospective and existing homeowners have seen mortgage rates steadily increase over the past 2 months as banks try to claw back their losses and price in the increased risk associated with holding mortgages.

See attached full article.

Market Update November '08.doc (243.00 kb)

For those wanting a steady return on their money, your home can be a sure bet. When the baby boomers started madly buying houses in the 1980s, suddenly real estate seemed like the path to instant wealth. The real estate markets fluctuate constantly. There have been times when house prices have gone down. However if you look at the overall price of homes in your area over the last ten years, in most cases, (depending on your region) prices have risen.
Where is the housing market headed? Nobody can accurately predict. But even if house prices don't rise phenomenally, a home has two strong things going for it as an investment. First, any capital gains on your principal residence are tax-free. If your home appreciates by six per cent, you get to keep every cent of your gains.
Now six per cent may not sound like much, but in terms of how much you end up with, you'd have to earn as much as twelve per cent on a fixed-income investment such as a GIC to match that return, after tax.
Second, you don't have to come up with the full purchase price, meaning you're able to harness leverage. The conventional mortgages require a down payment of twenty five per cent of a properties appraised value. Where as the High Ratio Mortgage, requires only five per cent down payment.
For example, if you buy a $200,000 home, you need to come up with around $50,000 for a conventional mortgage. If the home's value rises to $220,000, that's an increase of 10 per cent. But what's really happened is you've put up $50,000, and made $20,000. Your real gross return on your invested funds is around 40 per cent. But notice the word “gross”. Don't forget that your real return will be less.
Buying a home and having a mortgage is also a tremendously powerful forced savings program.

What is the perfect open house?  It is, of course, and event that attracts lots of potential buyers, of whom a few become seriously interested in your house, and at least one makes you a fair offer.

Chances are, you already know the basics.  On the big day, your house should be clean, relatively free of clutter, and presentable.

But you need to go even further if you want your open house to be a success.  After all, there may be competition.  Your open house may not be the only one in town that day, or even the only one on your street!

Although it is your home - with all the emotional attachment that goes with it - you need to think of your house as a product... a product that must be "packaged" to appeal to potential buyers.

How do you do that?  Here are some tips that can help:

• Clear the air of odours.  The faintest scent of cigarettes, pets, or even exotic cooking can be a turn off of some buyers.
• Pack up the personal items.  Buyers want to envision themselves in the house, not you.
• Buy some flowers.  A couple of potted flowers placed inside and outside the front doorway can add significant visual appeal.
• Make sure everything works.  Check for burned out lightbulbs, running toilets, derailed closet doors, and other things that may need a quick repair.
• Take the pets for a walk.  Don't leave them in the house during the event, no matter how friendly or well behaved they may be.

There are, of course, many other things that you can do to make your open house  a success.  Need more tips?  Call today.