Just a thought before selling

Just a thought before selling your home

Sunday Jun 13th, 2021


Everyone is aware of a Hot market despite of the pandemic situation. In the last 3 months, the average sold price in GTA was over $1 Million.

In fact some homeowners are planning to sell their home in the coming months. Before you decide to sell your home, please check which situation would apply to you, because sometimes you don’t need to sell your home.

1) The first situation is the Job relocation and Promotion. Who is paying the Moving Cost and the Real Estate Commission on the sale of your home?  You or the Company help part of the cost.

2) Are you getting married or having the birth of a baby soon.

3) Separation or Divorce

4) Illness or death of a spouse.

5) You are changing the Lifestyle. You may need to move from a house to a condominium because you do not want to or not capable to take care of the house.

You may be planning to move to Senior Home or Nursing Home.

You are going to retire and prefer a peaceful country living style rather than in the busy city.

6) Some homeowners like to Cash out a large amount of the home equity when they sell their home or… take the advantage of a very low interest rate and refinance the home for other project or investment.

e) Few or some of homeowners originally want to renovate the house and found out that the cost of renovation is too high, or the noisy and dusty construction inside the home for few weeks or months would affect their daily life, or the renovation’s cost will never be recovered when it is time to sell.

In this situation, selling their home and move to a bigger home could be a better choice rather than renovation.

e) Some homeowners want to sell their home and move to a bigger home and they think they would have an income earning in the basement rental apartment. The benefit of having a bigger home is to have better appreciation in the coming future, and the rent from the tenant would support part of the mortgage and other expenses.

This plan may work if the tenant pays the rent every month, and there won’t be any vacancy of the basement apartment forever.

The downside of having a non-retrofit basement apartment may be against the local bylaws and fire-code regulations which govern the rental properties.

Expensive legal action can occur based on the laws protecting the tenant in Ontario. Sometimes the tenants can stay in the rental property while the landlord did not receive any rent from the tenants during the COVID situation.

Also the increase of the rent is very limited based on the Ontario Rental Guideline every year.

f) One way you don’t have to sell home is if you have a Reverse mortgage. This specific type of mortgage has been in the market for a while. This unique arrangement in finance is suitable for older homeowners with equity in their property.

The advantage of having a Reverse Mortgage is letting the older homeowners to have a fixed amount income every month for their daily expenses and they can remain living in their home without selling their house.

The homeowners need not to pay any monthly mortgage payment to the bank like other conventional mortgage. Instead, the reverse mortgage is paid back by the estate or when the property is sold.

Sometimes part of the Reverse Mortgage can be used to help their children for the Down Payment when they purchase their first home.

For more information regarding the Reverse Mortgage or any questions about selling or buying homes, please give me a call 416-399-9981 or email to me by simon.chan@century21.ca

You are welcome to visit my website Proactivesalesteam.ca and watch my other video for more update real estate information.

Thank you for watching this video. Please share it with your friends and family. I hope this video will be helpful when they decide to sell or buy real estate in the coming future.

Thank you. You have a very good day.

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