Monday, September 28, 2009

Interesting information for 5 year home owners.

Hey everyone!

Thanks for visiting my blog. Today I am going to talk about interesting facts for folks who have owned there home for 5 plus years. Currently our market is booming. We have just changed back to a Sellers market. What does this mean for you the homeowner? Well we just went through a year of major decline, granted Ottawa saw very little in reduction of prices however we as Realtors noticed the slow moving market and the skeptical buyers. So now with the market changing and house prices once again rising it is time for homeowners who are looking to upgrade to a larger home, or homeowners looking to downsize to take advantage. How are you going to take advantage?

With prices rising and Buyers scrounging to find a home that suits them, you are sitting on a large amount of equity dollars. If you have been paying your mortgage down for the last 5 years you could be sitting on a large amount of investment dollars. By selling your home now you could cash out that money and payoff all that unwanted debt and still have a large down payment to buy your next home.

I think the best way for homeowners to look at it is this :

Example :

You bought your home for : 200k in 2004.
Your home is now worth : 330k in 2009
I list your home for: 339k
We sell your home for : 335k
Commission costs : $16,750
Lawyer costs : $1200

Leaving you with : $317,050

Now you have not remortgaged your home since you have owned it so your remaining amount on your mortgage is in and around the $150,000 area.

$317,050 - $150,000 = $167,050

That is a pretty large amount of money to cash out of your home. Now if we say you have $30,000 in debt you would really like to clear up and you would really like to buy that new car you have always wanted, you would be left with $100,000.

If you took that $100,000 and placed it as a downpayment on your next home you would not have to pay CMHC premiums. You would now own a significantly larger home. Lets use an example.

You want to upgrade to a 2700sqft 2 storey in Barrhaven. Purchase Price is $405,000. So we put in an offer and Joey works his magic and gets it to you for $395,000. Now we contact our financial people to get our information on how much your payments are going to be. Here is the breakdown.

Purchase Price : 395,000
DownPayment : 100,000

Total Owing : 295,000.


Loan Amount:
$295,000.00

Loan Insurance ( 0%):
$0.00
Total Loan(Mortgage) Amount:
$295,000.00

Principal & Interest:
$1,592.00


Homeowners Insurance:
$141.54


Property Taxes:
$395.00


Condo Fees:
$0.00


Monthly Loan Insurance (0%):
$0.00

Total Monthly Payment:

$2,128.54

So by doing this upgrade you could be in a significantly larger home with large amounts of value and have a payment of : $2128.54 and this would include Property Taxes as well as home insurance.

Sounds like a pretty good deal now doesn't it? This is just an example but it also gives you an idea of what you have to look forward to.

If you would like to discuss this further do contact me. http://www.joeysells.ca/Contact_Me/page_946440.html

If you have any friends and or family that you think I might be able to help make the kind of money you have in the last 5 years please do let me know or send them my information. I always do appreciate referrals.

To view My Listings or get a Free Online Home Appraisal please click here : www.joeysells.ca

Thanks very much for visiting and I hope to hear from you soon!

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