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Should I Sell My Home?
Selling a home is a major decision that requires careful thought and consideration. However, there are many reasons why you may be considering this major change. Whether you are looking to upgrade to a larger property, relocate to a new neighbourhood, or simply want to free up some extra cash, selling your home can be a smart financial decision in achieving your goals. In order to make an informed decision, though, it is crucial to take into account many influencing factors that could impact the sale.
Possibility of Return
One of the most important factors in considering whether or not to sell your home is the potential for significant financial return. In essence, you should assess whether selling your home will result in a profit based on the current real estate market and the condition of your property.
If the conditions are ripe for you to garner a healthy profit, it may be a good time to consider listing your home for sale. This additional return generated from the sale can then be used to pay off debts, invest in a new property, or simply provide a much-needed financial boost.
On the other hand, if the market demand has slowed or property values for homes similar to yours have dropped, you may want to consider waiting to sell when the market improves. To get a better understanding of the current real estate market and how much your home is worth right now, get in touch with your local real estate agent.
Lifestyle & Personal Reasons to Sell
Another crucial factor to consider before selling your home is your personal situation. If you have to move for work, family, or other reasons, selling may be the best option, regardless of the current real estate market. However, if you are content with your current living situation and have no immediate need to move, don’t rush into the decision to sell lightly.
Your lifestyle may also play a significant role in your decision to sell your home. Perhaps your family has outgrown your current house, or it is simply no longer meeting your needs. In this case, selling can give you the freedom to find a new property better suited to your lifestyle. However, it’s important to consider the emotional attachment you may have before getting started. If you have lived in your home for a long time and have many memories there, it can be more difficult to move on than you may anticipate. Be prepared to say goodbye when the time comes!
Selling as an Investment Strategy
Beyond the financial and personal benefits, selling your home can also be a smart investment strategy. If the real estate market is strong and your property is in good condition, you might be able to sell your home for more than you paid. This can bring you a nice return on your investment to help increase your net worth and build your property investment portfolio.
Challenges to Selling a Home
Of course, selling your home is not without its challenges. You will need to find a real estate agent, prepare your property for sale, and go through the process of showing your home to potential buyers. This can be time-consuming and stressful, but with the right approach and support, it can also be a smooth and successful experience.
In conclusion, selling your home can be a smart financial decision that can provide a significant return on your investment, the opportunity to start fresh, and the potential for increased net worth. With the right approach and support, you can successfully navigate the process and move on to your next chapter.
What is Vendor Financing in Real Estate?
If you have been researching real estate investment, you have likely encountered dozens of unfamiliar terms. This is often especially true when investigating different ways of financing real estate. Of course, you could consider the conventional route and finance your home through a bank or a broker. However, exploring alternative approaches, such as vendor financing, is worthwhile.
What is Vendor Financing?
Vendor financing is a unique financing arrangement wherein the seller of a property extends financial assistance to the buyer. In essence, the seller assumes the role of the lender and offers the buyer a loan to facilitate the purchase of the property.
How Does Vendor Financing Work?
In a vendor financing arrangement, the buyer and seller will agree on the loan terms, including the interest rate, repayment schedule, and any down payment required. Typically, the seller will require the buyer to put down a deposit, which will be held in escrow until the sale is complete.
Once the loan is agreed upon, the buyer will make regular payments to the seller until the loan is paid off. At that point, the buyer will take ownership of the property.
Why Consider Vendor Financing?
Vendor financing can be an attractive option for both buyers and sellers. For buyers, it can be a way to purchase a property without going through the often lengthy and challenging process of obtaining a traditional mortgage. For sellers, it can be a way to make the property more appealing to potential buyers and expedite its sale.
Moreover, vendor financing can be a valuable tool for real estate investors seeking to buy investment properties without relying on conventional financing methods. However, it is crucial to meticulously evaluate the loan terms and ensure that they align with the interests of both parties before entering into a vendor financing agreement.
Whether you are weighing the pros and cons of real estate investing or simply looking for unique ways to finance the purchase or sale of a property, exploring your options beyond the traditional routes is imperative. Vendor financing is an intriguing and flexible alternative to conventional mortgage financing with unique potential advantages. By thoroughly considering all your options and assessing their suitability, you can better align yourself to make informed decisions to reach your real estate goals sooner!
Your Guide to Finding a Profitable Investment Property
Making a profit in real estate investment is more complex than buying a property and collecting rent. There are many steps to take along the way to generating revenue, each with unique challenges. From renovating your investment property to finding good tenants, there’s quite a lot you’ll need to do before the money starts to roll in. But you’ll need to find the right property before getting to that.
Not all properties are created equal when it comes to generating revenue, and you’ll want to find one that maximizes your potential for a return. Here are some of my best tips for finding a profitable investment property:
Define Your Investment Goals
When building a real estate investment portfolio, you should have set objectives in mind for your finances and future. Before you begin looking for an investment property, take the time to define these investment goals. Are you looking for a short-term or long-term rental property? Do you want regular rental income, long-term appreciation, or a combination? By setting clear objectives, you can better filter potential investment properties as you search.
Location, Location, Location
Any REALTOR® worth their salt knows location is the backbone of any real estate property, especially regarding profitable investing. Walls can be painted, floors can be changed—you can even go so far as completing an entire remodel to make a property better. One thing you can’t change, though, is its location.
To find the most profitable investment property, you’ll want to search for properties in good locations with strong growth potential. Factors you’ll want to consider include amenities, transportation, schools, and employment opportunities. You may also want to ask your experienced local REALTOR® about any potential development plans for the area that may affect the property’s long-term value. These factors are all things quality tenants will look for in a rental property, helping you to secure your investment better and make more money.
Know Your Market
Analyzing and staying current on your local real estate market is vital to making a profit in real estate investment. Market reports help you better understand current trends, vacancy rates, rental demand, and property values—all of which influence your profitability as a real estate investor. These statistics can help you to look for properties in areas with demand and projected value growth for the future and eliminate riskier opportunities where fluctuations and vacancies are more likely. Then, with this to guide your neighbourhood search, you can research the local rental rates to ensure they align with your investment goals.
Not sure how to interpret real estate market statistics? Find an experienced local REALTOR® knowledgeable in real estate investing to help you interpret and apply the data to fit your needs best.
Calculate Revenue Projections
Before buying an investment property, you should always forecast the potential cash flow you can expect. Look at both the projected rental income and any expenses you can expect, including property taxes, insurance, and maintenance. By subtracting the operating expenses from your rental income, you can calculate your potential net operating income (NOI). If this number doesn’t align with your goals or isn’t above breaking even, you’ll know it’s not the right investment property for you.
Evaluate the Property’s Current Condition
A well-maintained property will attract more quality tenants and demand a higher rent. When looking at potential investment properties, evaluate their condition and estimate repair or renovation costs. Improvement costs can add up quickly on the wrong property, costing you more than you may have anticipated before you begin turning a profit. A profitable investment property should always generate a healthy return on your investment, not a loss.
Do Your Due Diligence
It is always better to be safe than sorry in real estate investing. Before making an offer, ensure you thoroughly understand the property you are considering. Have a property inspection performed by a trusted professional and get them to review the report with you in detail. Review any and all documents provided to you and verify any claims the seller has made. You can then weigh the pros and cons of investing in this property and how they could affect your portfolio’s bottom line.
Investing in real estate will always come with risks and challenges. By taking steps to mitigate these before getting started, you can maximize your potential of finding a profitable investment property and generating revenue. Do your research, set your objectives, and seek the advice of an experienced, professional REALTOR® when needed. Then, sit back and (hopefully) watch the money roll in.
The Best Tips for Finding Good Tenants
After weighing the pros and cons of investing in real estate, you’ve decided to move forward with buying an investment property. Congratulations! This is the first step toward building your property investment portfolio. The next step, however, is turning that investment into profit; and to do so, you will need to start looking for good tenants. As many real estate investors will tell you, though, finding good renters can be a challenge. Here are some tips to help you get started:
1. Know the Tenant You Want
Before you begin looking for tenants, you’ll first want to get a clear idea of what your ideal tenant will look like. Will this property be used for short-term or long-term rentals? Are you looking for a young family to fill a 2-storey home or a business professional to rent a high-rise condo in downtown Saskatoon? Would you consider pets or is it too much of a risk for the property? Deciding on key qualities for your ideal tenant will better help you narrow your search and advertise your investment property to the right potential candidates more effectively.
2. Have a Screening Process
A potential tenant may sound great on paper and may even have a fantastic personality in person, but you never know what risks they may be hiding. This isn’t to say that every renter has something to hide, but in order to protect your investment best, it’s crucial to screen each person to confirm their responsibility and reliability. Things you may consider as part of your screening process could include collecting references, verifying employment, performing a background check, and running a credit check.
3. Advertise Your Property Effectively
Advertising your property for rent is your first line of defense in finding good tenants. Of course, you want to highlight the incredible features your property has to offer them, but you’ll also want to include your expectations of them, as well. Clearly list your criteria, including details of the screening process, to better eliminate less qualified applicants before beginning interviews. You may still see some hopefuls throwing their names in the ring to see if you’ll really stick to your list, but fewer than you may have gotten without including it.
4. Conduct In-Person Interviews
While phone calls are certainly less time-consuming, in-person interviews are essential for finding good renters for your investment property. You’ll be able to get a better sense of personality and demeanor of your potential tenants. Plus, you can also use the interview as an opportunity to let them tour the property to see if it’s the right fit for them, too!
5. Communicate Clear Expectations
Effective communication is the foundation of any successful landlord-tenant relationship. This helps to solidify expectations and help both you and your tenant feel confident in what the guidelines of their tenancy are from the beginning. Let them know house rules, maintenance responsibilities, and due dates for rent. Be responsive and answer any of their questions and concerns to help encourage open and honest communication from their end, too.
Real estate investing can be an exciting new venture, but finding good renters can be difficult to do. With these tips for finding good tenants, however, you should be able to mitigate much of the stress associated with this process and hopefully come out with a great fit.
Still searching for the right property for your investment? Contact me today to start your search.
Saskatoon Real Estate Market Update: April 2023
After the record-breaking numbers the Saskatoon real estate market has seen in the past couple of years, you may be curious as to how things are looking in the busy spring season of 2023. While year-over-year numbers are still declining, we are still seeing above-average sales in comparison to long-term trends. And inventory remains a challenge for the residential real estate market in Saskatoon. Here’s a breakdown of how things are looking as of April 2023:
Saskatoon Home Sales in April 2023
Sales in Saskatoon real estate declined year-over-year in April 2023, with 396 residential properties sold. This is just 14% below residential sales in April 2022, showing that the market is cooling in comparison to recent record years. Trends, however, still remain 1% above the long-term trends, showing that the market is still slightly busier than average at this time of year. This is good news for those considering selling a home in Saskatoon, but also indicates a balancing of the market coming for homebuyers, as well.
Saskatoon New Listings in April 2023
New listings continued to drive inventory issues in April 2023, with only 669 residential properties listed. Though it was technically a slight increase from April 2022 (only 0.6%), this is still 17% lower than the average number of new listings seen in April over the past 10 years. Without the new listings available to bulk up inventory and refresh interest, Saskatoon home buyers continue to struggle with selection and availability in their home searches.
Saskatoon Real Estate Inventory in April 2023
Residential real estate inventory in Saskatoon continues to pose difficulties for the market, still 5% below last year’s levels and 36% below long-term trends in April 2023. Months of supply sat at about 2.6 months, which was 10% above last year’s levels, but nearly 42% the 10-year average at this time. This means fewer homes for sale from which buyers can choose, driving up demand and, subsequently, home prices.
Saskatoon Home Prices in April 2023
Average home prices in Saskatoon continued to increase in April 2023, with the current benchmark price sitting at $375,600. Though only up 1% over last year, this is still 12% above the average home prices we typically see in the spring real estate market in Saskatoon. This makes it a great time to consider selling your home, with more potential for a return on your investment.
The spring real estate market is always a busy time in Saskatoon. April 2023 was no exception. Though sales were on the decline in comparison to last year, we continue to see more demand than typical at this time of year. But with fewer new listings to add to the inventory, buyers continue to be limited. It will be interesting to see how these ongoing trends influence the market as we move into summer, though only time will tell!
Wondering what this could mean for your buying and selling plans? Contact me today to discuss.
