MahmudNaqvi.com » FAQ’s

New Law to Curb Home Sales

Mahmud Naqvi — Fri, 19 Feb 2010 21:03:17 +0000

Come April 19, new laws will kick in designed by the conservatives to cool down the housing market. This is one good move by the feds. Record low interest rates made it easy for many to purchase rather than rent. Indeed this has been a factor for a consistent multiple-offer situations. Here is what this new law dictates:

Buyers must qualify for a fixed 5 year rate, they can opt for a variable rate. Currently mortgage qualifications are on a fixed 3 year term.
Refinancing limit of 90%. This is excellent as it will force home owners to retain[at least] some equity in their homes.
Purchase of a property other than for personal use will need a 20% down payment. Not the current minimum of 5%.

On the whole these new laws are good for the long haul. Home buyers must be aware of the fact that eventually the interest rates will go up.

Government programs for Home Owners

Mahmud Naqvi — Tue, 12 Jan 2010 20:49:34 +0000

If you own a home or are planning to buy one soon, here are some programs available to you as a resident of Canada. This is an incentive from Canada Revenue Agency that makes home ownership a bit easier.

Home Buyers Plan
Withdraw up to $20,000 from your RRSP to buy a qualifying home under this program.
Tax Credit for First Time Home Buyers
Claim a non-refundable tax credit of up to $750 on your 2009 income tax and benefit return for the purchase of a qualifying home acquired after January 27, 2009.
GST/HST New Housing Rebate
You may qualify for a rebate of part of the GST/HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a major addition onto your existing house, or on converting a non-residential property into a house.
Home Renovation Tax Credit
Get upto $1350 tax credit on your 2009 taxes for renovation or alterations.
Medical Expense Tax Credit
Renovation or alteration expenses that improve access for persons with disabilities
Provincial credits you can claim on your tax return
Ontario property tax credit and Senior Homeowners’ Property Tax Grant.
Working at home
Home expenses you can claim

You can get more details from the CRA website dedicated to these programs and incentives.

Frequently Asked Questions By Home Sellers

Mahmud Naqvi — Fri, 23 May 2008 22:03:03 +0000

Time and again I meet seller’s who have questions which are pretty much common concerns. Here is a brief compilation of frequently asked questions by Sellers:

Does time on the market affect selling price?
Absolutely! There is a direct correlation between time on market and final selling price. The longer a home is on the market the greater decline in perceived value by the buyer.

How do I know my price is right?
It is our job to assist you by providing a comprehensive market analysis to give you the information you need to set your price.

Should I price my house high in order to have room to come down?
Having a high asking price puts you at a disadvantage. Buyers will interpret your high asking price as not been serious about selling.

What is “computer avoidance”?
Salespeople search the MLS system for properties by price, and criteria. Overpriced properties will fall outside of the search parameters and be missed.

How do I negotiate with the buyer?
It is our job to negotiate on your behalf and to provide advise, opinions and solutions to keep the negotiations moving through to a satisfactory result.

What am I suppose to do when the house is being shown?
If you are present greet the salesperson and their clients warmly and let the salesperson present your home, don’t become involved in the showing you might share some information that could be detrimental to the sale.

Do I really need to keep the house clean for every showing?
Yes, we want to make it look as much like a model home as possible. I will provide you with a helpful booklet “Dress Your House For Success” which will give you some great ideas and insight that don’t cost anything.