Why It Is Advantageous to Buy a Property in Canadian Real Estate Market

Canadian Real Estate Market Outlook

To streamline and minimize blog maintenance, I will be discontinuing maintaining the Canadapersonalfinancewebsite.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on Apr 3, 2010

Investing in real estate in Canada is a prudent step to take right now. According to recent reports, Canadian real property market is attractive. 2010 is a perfect year for any real investor in the country. Probably even international investor would be glad to take advantage of declining property prices. Many countries lack luring residential or commercial investment opportunities.

This means that an investor can currently expect a good return on property investment in Canada. Just like in other developed countries, Canadian commercial real estate market growth rate is slow. However the cost of these properties have not been too steep lately. An investor can choose to buy a commercial property in busy places where people are seeking business premises. Also buying a house in an area where income potential and employment odds for residents seems promising is perfect.

Buying commercial properties is often beneficial because one is assured of steady income flows. Furthermore, buying a property a time like now when prices are reasonable is wise. In future, a house’s value is expected appreciate and it is much more likely to cost more than its initial buying cost. Before one can buy any property, it is important to examine his or her finances. To be specific, a foreigner who intends to invest in Canadian real estates need not consider the currency conversion alone.

There are extra financial factors that are handy. For instance, a person may decide to purchase a real estate by paying a mortgage loan. The option is available to both the natives and international investors through banks, although the former is favored. As a foreigner, one needs to approach a Canadian bank to inquire about it. Some banks will definitely provide this type of home buying loan based on some conditions. An investor must ensure that his or her credit score is above reproach.

It is very possible to apply for a mortgage in Canadian currency from anywhere. Having a motive to relocate to Canada is a good intention still. To achieve this, one must find a good international mortgage broker. This is not an easy task because these brokers operate in some select countries. If an investor lives in Canada, it is easy to find a good mortgage broker. A broker is always useful to help investor during price negotiations. They are source of advice too.

Even before one can select a mortgage plan, evaluating his or her financial ability is crucial. Every investor knows his or her financial strengths. It is wise to consider that real estate prices can suddenly change due to fluctuating currency exchange rates. Select a home mortgage plan that is easy to pay, putting into consideration such random economic changes. As an international investor, it is important to seek consultation before signing any mortgage documents. Choosing to invest through a certain bank that supports international mortgage loans is a trouble-free approach.

A home buyer or a commercial real estate buyer, from Canada or a foreign country must not default in payment. This can hurt an investor’s credit score or result to a foreclosure process. Foreclosure is the process through which a real estate is repossessed after an investor defaults. This can be difficult for international real estates investors, although it can be a bad experience for anyone.

Why You Should Not Get Too Attached To Developed Property

When Buying To Let, Don’t Develop For Living

Many real estate investors fall into a simple trap on their first development. Having purchased a property with letting it out in mind – or even the idea of selling for a quick profit – they behave too much like themselves. That may sound wacky, after all we are all told often enough to “be [your]self” when we are young, so why change? The problem comes with the fact that a buy-to-let real estate property may look wonderful to you when you are done with it – but you are not going to be letting it to you. It is all too easy to become personally involved with the development and make a mess of it. So remember to take a detached approach when it comes to development.

One thing to remember about real estate development is that it tends to involve homes. Even if only subliminally, a house conveys to us the feeling that it is for living in, and when we come to develop it we often do this based on what we would like to live in. This is fine, in small measures. To put it another way, you need to be able to look at the house and feel that people would be at home there. It is not about standing back and thinking that you would feel at home, because you are not going to be living there. Adding idiosyncratic touches to the development because you feel it gives the house some character may well be an artistic approach, but remember that your idiosyncratic touches will make the character of the house your character.

This is not to say that a new development should be bland and consciously inoffensive. There needs to be something innovative about it if you are to realize a profit. To get an idea or two, it is helpful to view a house or two in the same area, houses which are selling for close to the price you hope to realize. By doing this you will be able to see what kind of stamp you want to place on the property when it is finished. Location is important when it comes to the kind of touch you want to put on the house. If your development is in a neighbourhood that is by tradition the place for retired couples, then developing a classic bachelor pad or a house for a young family is obviously going to lose you profits.

It doesn’t need to be rocket science – you can do some very simple research and find the ideal development property, then with a few simple touches have the ideal house or set of apartments to sell to the local market. Don’t make the mistake of getting too attached to the house, or to your idea of what it should look like. The chances are the potential buyers will have tastes which differ with yours. Save those touches for when you develop a property for living in. that is when you will need them.

To streamline and minimize blog maintenance, I will be discontinuing maintaining the realestateexpedition.com website (however, I will still hold the domain). I will gradually move all articles from this site to Ahmed Dawn Dot Com. This article originally published on the above website on July 11, 2009.

World's Riskiest Cities for Property Bubble

USB Releases Global Property Index

First Published: ADawnJournal.com Published Date : November 30, 2015

The UBS just launched its Global Real Estate Bubble Index that tracks the risk of property bubbles across the globe by analyzing various metrics. The risk of a property bubbles has increased dramatically for global cities, according to the USB report.

Here are the top ten cities on the list facing bubble risk:

– London

– Hong Kong

– Sydney

– Vancouver

– San Francisco

– Amsterdam

– Geneva

– Zurich

– Paris

– Frankfurt

Some highlights from the report:

– London is the most vulnerable city to have a property bubble.

– Sydney is the world’s most overvalued city.

– US city San Francisco is overvalued, but New York and Boston are fairly valued, and Chicago is undervalued.

– Vancouver prices in 2015 are 25% higher than they were in 2006.

– Sydney prices in 2015 are 30% higher than they were in 2012.

– Amsterdam is the second-most susceptible city on the continent.

– Hong Kong, the second riskiest city after London, has been in bubble risk since 2011.

– In Hong Kong, a worker would need to work 14 years to buy a 60 sq meter apartment.

World’s Tallest Building

World’s Tallest Skyscraper Will Be in Saudi Arabia

First Published: ADawnJournal.com Published Date : July 14, 2016

Saudi Arabia recently announced to build the world’s tallest skyscraper. The multi-purpose Kingdom Tower near Red Sea in Jeddah will stand 1000 meters tall (3,280 feet) and will be located in the centre of the $20 billion dollar Kingdom City Development project. This tower will have office space, a Four Seasons hotel, condominiums, the world’s highest observatory deck, encompassing about 5.4 million square feet of space.

Kingdom Tower will be designed by Chicago-based architectural firm Adrian Smith + Gordon Gill. The Saudis have awarded this $1 billion plus project to the Saudi construction giant The Binladen Group. The construction of the world’s tallest tower is expected to take about five years.

Once completed, Kingdom Tower would break the record of the world’s current tallest skyscraper Burj Khalifa in Dubai. 828 meters Burj Khalifa is not only tallest building in the world but also the world’s tallest free-standing structure. Canada’s 553 meters CN Tower (completed in 1976) held records for being the world’s tallest free-standing structure and the world’s tallest tower for 34 years until the completion of Burj Khalifa in Dubai and Canton Tower in China.

Saudi Arabia, an oil dependent country, recently trying to emerge from an oil-based economy to a diversified economy. Currently Saudi Arabia is working on various projects to build numbers of economic cities, complexes, and skyscrapers to become an economic hub in that region.

Your Responsibilities as a Mortgage Holder

Mortgage and Responsibilities

First Published: Aug 22, 2009 ADawnJournal.com
 

To buy a house in this day and age, it is – for most of us – necessary to borrow money. There is obviously a section of society who are able to afford to pay in cash and own their real estate property without ever needing to borrow to support it. However, even those who can afford to buy property without a mortgage will often get one anyway. Their positive financial situation means that they can support a higher level of borrowing than the average individual, and therefore purchase a more desirable property. Others again will decide not to get a mortgage and continue to rent for the majority of their life because of the greater relative freedom it gives them. The fact is that having a mortgage confers upon you certain responsibilities which it is essential that you meet.

It may seem, with the failsafe aspects built into a mortgage – the possibility of a payment holiday, the ability to renegotiate and remortgage, and so forth – that there is less incentive upon an individual to maintain the correct running of their account. However, it needs to be taken into account that for every concession a bank gives on the basis of a customer’s inability to make full payment, there is a price to be paid in terms of “provision”. That is to say that a bank needs to set aside a certain amount of money to cover bad debt. For every time that a person defaults on a loan of any sort, that money needs to be dipped into. Every time that money is dipped into, it affects how a bank can set its interest rates on commercial and residential credit.

There are two kinds of “bad debtors” – people who do not pay towards their debts – and these are termed “can’t pay” and “won’t pay” customers. Both types of customer affect provision in much the same way, as the money needs to be set aside to cover their debt whether or not they could actually make the payments. However, from an individual, arguably moral, point of view, the “won’t pay” customers are unnecessarily driving up the cost of banking for those who are making their payments and running their accounts successfully. It would be poor business sense on the part of a bank to allow itself to be hamstrung excessively by the bad debts of its customers – so “good debtors” bear the brunt of the costs.

It could not be said that “can’t pay” customers have the same moral obligation to make their payments as “won’t pay” customers. But the fact is that if you are in a position to meet your debt payments – especially mortgage payments which are tied to risk both for yourself and for the bank – then you must do so, as to fail in this respect does not just penalise you, but others as well. It is also true that banks have their own responsibilities to live up to, but as consumers we have little sway in making them do so – so for our purposes, only our own responsibilities are relevant.