Real Estate Insider: July 2020 - Lalovich Real Estate Skip to Main Content

Real Estate Insider: July 2020

Posted on July 15th 2020 by Lalovich

Human beings are very predictable, and as the old saying goes, “History is doomed to repeat itself”. This blogger believes that the speculation we are seeing out of the army of new day traders gambling with stimulus money is awfully similar to the Florida land boom in the 1920’s. Do you see any connections between then and now? Read here about the “Florida Land Boom” and decide for yourself!

“Buy land, they aren’t making any more of it” – Mark Twain. The bigger the population gets, the truer this quote seems to be. Read here why farmland is a low risk investment that should be essential in any diversified portfolio.

Step by step guide to mastering the Smith Manoeuvre. A leveraged investment strategy that makes your Canadian mortgage tax deductible! 

Considering re-financing? Lenders are becoming more strict in the age of COVID-19 due to fear of non-payment, the best thing you can do is to stay informed on your options, and this article is a good place to start!

HGTV has popularized the BRRR strategy (Buy, Renovate, Refinance, Rent) as a fool proof way to retire rich in Real Estate. There are a lot of moving parts to this strategy and small details can be the difference between a flip or a flop. Read here some tips on financing the BRRR strategy so you can do it right the first time!

Here’s what you need to know if you are planning on breaking your mortgage early.

What exactly is getting “pre-approved” for a mortgage? And how early before I start house hunting should I get it done? These answers and more are one click away!

This person has just purchased a new townhome that he intends to rent out, but is wondering if he should live in it for a while to take advantage of the Home Buyers Plan. The short answer is no, but the reason why might surprise you! Read more here if you are or plan to be in a similar situation.

Plain and simple the current system to support small businesses in Canada is not working. A newly formed advocacy group, the National Coalition of Commercial Property Owners, is suggesting direct financial support for small business in the form of a cheque. Do you agree or disagree with this suggestion? With the fate of thousands of small business in Canada still hugely unknown, it is easy to see where they are coming from.

Proposed bill in California would allow Small Business tenants to renegotiate their lease, and if no agreement can be made in 30 days, would be allowed to break their lease without penalty. While this was made for the benefit of small businesses, it could be devastating for commercial landlords who still have to pay their full expenses and debt obligations. Something like this isn’t uncalled for, but there needs to be relief for small commercial landlords who will be left without Tenants and a large mortgage bill to pay. Do you think the State is over stepping? Read more about the proposed bill and its effects here.

A lot of Landlords are getting heat for not applying for the Commercial Rent Relief Program set in place by the government. Before you judge, read here the reasons most Lawyers are advising their clients not to! Is this a bad look on the Landlords, or a poorly set out program by the government? 

ATTENTION ALL PARENTS WITH CHILDREN HEADED OFF TO COLLEGE/UNIVERSITY. It is becoming more and more popular for parents to buy rental properties around their children’s universities to offset a lot of housing costs. If you are in the situation to do so, it seems like a no-brainer! But there are a lot of expenses to consider before pulling the trigger on becoming your child’s (and their friends) landlord. Read here to get an idea of the real costs to expect from a student rental.

CMHC has tightened lending restrictions by decreasing the debt ratio, increasing the required credit score to get approved, and eliminating borrowed down payments if you want to qualify for a mortgage with less than 20% down. They did this to “protect future home buyers and reduce risk” but there are other private mortgage insurance companies that have no interest in following suit. Read here the new rules that took affect July 1, 2020 and how they might affect your borrowing power moving forward.

Buying a home with your spouse can be tricky, especially when it comes to the first time home buyers plan. This woman is worried that she won’t qualify because her husband purchased a condo before they were married. Read here on when/if she still qualifies if you are in a similar situation! Good advice for all first time home buyers!

CMHC recently tightened up their lending criteria, which most first time homebuyers consider their only option for mortgage insurance. This is simply not true, there are other mortgage insurance companies that do not share the same views as CMHC and are providing hope for those who don’t qualify under the new rules. Read here why Genworth Canada and Canada Guaranty are going against CMHC, and why they believe CMHC isn’t doing right by Canadians in the midst of a global pandemic.