Agent Photo

Curtis Leibel 780-438-2500

SERVING YOUR EDMONTON REAL ESTATE NEEDS



Archive for the ‘Uncategorized’ Category

Buy used vs. Build new

Friday, August 31st, 2012

Real estate is a rare investment where in almost all cases, over an extended period of time, you can expect the value of your property to increase.  There are of course exceptions to the norm (industry fueled areas where resources have been depleted, natural disasters, etc…) but generally an investment in a home will increase over the long term.  Thus, the decision between buying a used home vs. building a new home is often a tough decision to make, because unlike a used car, you are not getting a discount because the home is older.

Keep in mind that everybodys situation is unique to themselves, so something seen as a positive for some might be seen as a negative by others.  Here is a quick list of factors that may or may not make one seem more appealling to you than the other….

BUILDING A NEW HOME

Maintenance:  has that new home smell  😉  There is alot of comfort knowing that when you move into a new home there will be very little maintenance or large expenditures on repairs.

Cost: You are usually getting a lot more house for less money

Location:  Unless you are spending big money on tear down lots in the center of the city, new homes are generally located on the outskirts of the city

Resale: If you are looking to sell in the near future – the other houses in the development are very similar so there is not much to seperate one from the other.  This can be good or bad.

Equity: Unless you plan on finishing a basement or building a suite, other than time there are not many ways to help your property appreciate – therefore your investment is based solely on the trends of the market.

Initial move in period:  Could be lots of mud, machinery, and noise as other houses in the community are being built.  There could also be settling issues that arise over the first few years.

New Home Warranty – alot of builders provide a new home warranty which protects the home for the first few days

Possession day:  Could be delayed because of finishing delays

Bonus: you know that no one has ever lived in this house before and it is all yours!

BUYING A USED HOME:

Maintenance:  obviously depends on the age of the home, but you can expect a lot more work and upkeep.  There could be some large expenditures in your new future (ie. shingles, furnace,etc..)

Cost:  Surprisingly quite often the cost of an older home is the same or more than that of a new build.

Location:  One of the reasons the costs are higher is usually because the location is better and the neighborhoods are more established.

Resale: There is a lot more variety in houses in the established neighborhoods.  It makes it harder to predict the value of your home, but also provides a lot more variety for the buyer.

Equity:  If you are willing to put in some sweat, buying an unrenovated home is a great way to build equity and make a home that suits your needs and tastes.

Initial move in period:  Still susceptible to the nuiances of the community, however often they are more predictable and less extensive.

New Home Warranty – other than Real Property Reports that carry level some of protection, buyer beware!  If the furnace breaks the day after possession its on your dime.

Possession day:  Could still be delayed by financing issues or residents moving out, but much less common.  You can expect to do alot more cleaning on move in day as its always a guess as to how clean the previous owners have left it.

Bonus: There is a lot more variety in location and style of houses if you are willing to look in different areas and time periods.

These are some of the major factors when considering whether to buy old or build new.  As always, we are just brushing the surface, so if you have any more questions dont hesistate to give me a call!

Recreational Property for Sale

Monday, August 13th, 2012

I have a new property that I just listed for sale at the popular Mulhurst Village at Pigeon lake.  One block off the lake, complete with 1.56 acres, this lake home is all you could ever want.  Here are the details:

1 block from Pigeon Lake and the golf course, quietly hidden amongst the trees
on 1.56 acres of land. This beautifully maintained 1941 sq ft 2 storey home has
loads of features. The house itself boasts a tiled kitchen, newer carpet in the
living room, 3+1 bedrooms and 3 bathrooms including an ensuite. It also features
a large double garage with a brand new door, RV parking, 2 driveway access,
large deck, master bedroom balcony, wet bar plus an enclosed hot tub. This is
the best of country living with the benefits of a municipality.

Give me a call if you have any more questions about this property, or would like to set up a viewing!

 

What is a Real Property Report (RPR) ?

Wednesday, July 4th, 2012

In the legal sense, A real property report (or RPR as it will be referred to from now on) is a legal document that illustrates the location of significant visible improvements relative to property boundaries.  In a simpler sense, a RPR defines the exact property lines and locations of any structures that have been built on the property.

RPR’s first came in to existance around 1989 in Alberta, although it wasnt widely accepted in the sale of house until 1994.  Now, the sale of a home in Alberta must be accompanied by a RPR (or title insurance instead- which will be the topic of an upcoming blog).    People often wonder how recent the RPR has to be – it depends on what the buyer asks for, but usually as long as there has been no new structures built on the property since the last RPR.

When the lawyer reviews the RPR, they will see it is either complying, or noncomplying.  Noncomplying means that some structure/s are not built within property lines or up to satisfaction, and at that point its up to the agreement of buyers/sellers to determine whether changes will or will not have to be made.

A RPR will range in cost, but for an average lot with a single family house you can expect the cost to be anywhere between $600-$800.  It can be completed by anyone that is approved by the Alberta Land Surveyors Association and takes about 2-3 weeks (unless a rush is put on at an extra cost….).  Hopes that answers any questions you may have had about RPR’s.

How much money do I need for a downpayment?

Monday, March 26th, 2012

Principal residence- 5%, Investment/recreation property – 20%-35%

Starting with principal residences, if you are buying a home and planning on living in it, you can expect to have to put 5% down.  A couple things to keep in mind for this- first. anything less than 20% down requires CMHC insurance (which is a few extra thousand dollars that will be added to your mortgage).   The other thing to remember is that when you purchase home, you most likely included an initial deposit with your offer; these funds will be subtracting from the 5% down. (ie.  Buy house for $100,000 with $2500 deposit…only need to pay $2500 later to equal the $5000 down payment)

There a few lenders out there right now that are still offering 0% down, but they can be hard to get and you will end up paying more for them.  Usually they add that extra 5% right into the mortgage.  On top of this the lenders will be very particular about the house they are lending on, so could deny lending based on the condition/appraisal of property.

When looking at investment or second properties, the gold standard used to be 20% down.  Nowadays however this is becoming more and more rare, as lenders now are more often expecting 30-35% down.  Again there are many stipulations.  Although you wont need CMHC insurance on this type of product, you will most likely still need appraisals (at your own cost) to be completed.  Additionally, most lenders have restrictions on the type and amount of properties you can own.  It is best to talk with a mortgage broker about a potential purchase so you can know what to expect ahead of time.

Half Duplex in Kenilworth

Friday, August 19th, 2011

I have a great new Half duplex located on 90ave and 63 street.  This property has great income potential.  The home has a separate entrance on the side, comes with 2 kitchens, 2 bathrooms, 3 bedrooms up, 2 bedrooms down and separate laundry on both floors.  Everything has been renovated including both kitchens, both baths, new shingles on garage, new soffit and fascia on house and garage, new furnace, refinished hardwood flooring and much much more.  Live upstairs and rent out the basement, or rent out both as this is a great potential cash flowing property.

10230, 122st

Thursday, June 9th, 2011

Another investment condo listed.   This one is a beauty – located in on the second floor in Oliver, with a patio that overlooks the park.  Totally upgraded with new brick in the kitchen, new cabinets, new hardwood floor, tiled backsplash and all new paint and trim.  Take a look as I dont think this one will be around long!


Curtis Leibel, REALTY EXECUTIVES - DEVONSHIRE REALTY
11058 51 AV, Edmonton, Alberta, T6H 0L4
Tel: 780-438-2500 Fax: 780-435-0100
© Copyright 2011, Real Estate Websites by Redman Technologies Inc. | Privacy Policy | Sitemap
The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton
MLS® MLS REALTOR® Realtor
Trademarks used under license from CREA