Bonnyville Homes Blog

It is no secret that real estate is one of the best investments one can make for their future. Real estate is considered a safe venture; however, not everyone can buy real estate and expect a return. Multifamily Syndication is a real estate phenomenon that is slowly become a major real estate trend. This is a real estate trend that is showing real estate agents that working smarter is better.

What is Multifamily Syndication? 

Multifamily Syndication is when a group of investors of individuals pool their money together to invest in a multi-unit building. Once the investors have saved enough money for a down payment, they can then look into purchasing a multifamily apartment or property.

Why invest in multifamily properties? 

When it comes to determining if a multifamily property is the one for you and your investors, consider the following: 

• Multifamily properties offer a high return in capital – investors can watch profits happen faster than those who have single family homes.
• Tax saving benefits through tax deductions and depreciation – when you invest in a multifamily property, regardless of your city, you are actually contributing to the community. It is for this reason many governments, regardless of level, will provide tax breaks and deductions.
• Multifamily provides high ROI with equity and/or a lender

Multifamily investment properties provide long term financial gain and security. Sometimes it can be hard to know if buying single family homes is better than purchasing one unit with multiple renters. Multifamily syndication is a real estate phenomenon that is bringing together people’s passion in investing and real estate.

Many cities across Canada and the US are turning over properties and seeing the endless possibilities of investing in multifamily properties. Though capital is needed to get started, investors can see the benefits in no time.

In the market for a home? Are you looking to go from renting to owning? Maybe you are considering a condominium rather than a stand-alone home – we share insights on whether or not a condo is a right call for you.

For those who choose and prefer a condominium, there is little or no external maintenance required. Not only is there no grass to cut, but for those who like to travel, the only thing you have to

worry about is making sure your door is locked.

When determining if the condominium you are looking to invest in is for you, consider the building entrance. Check the outside and see if the grounds are well kept and the exterior is clean and well maintained. Another sign to look for is if there are advertisements for community gatherings for those living in the condominium – this can be a sign of an active and friendly building.

It is best that before settling on a condominium, you embark on multiple walkthroughs. This can help check for any smells or abnormalities. Sometimes property managers will try to clean the building just for tours and such, but in actuality, there are many flaws. It is always good to see the building and the unit as-is.

Another factor to consider is the orientation of the unit. What direction does the balcony face?. What floor is the unit on? Typically higher levels are quieter, while lower floors because they are closer to the ground, tend to be noisier. The difference in sound is sometimes reflective in the cost – the quieter the unit, the more expensive it is. Always check the age of the condo; if it is older, the fees may be higher.

What is the floor plan of the condo, how many bathrooms are there, and how is the kitchen organized? Are the appliances included, and how old are they? The exact size/square footage of your condo unit is significant. This will help you and your real estate agent calculate possible prices. Check to see if there have been upgrades such as premium countertops and porcelain tiles, crown molding, and upgraded kitchen cabinets.

Are you looking for add-ons? Ask to see is there is storage available or parking. Is it big enough for your skis, bikes and camping gear? Take a tour of the building to check out all the shared amenities such as a gym, party room, and pool. Is there any guest parking, and at what is the cost? Building security is also an important consideration.

Buying a home can seem daunting yet very exciting. With so many options to choose and pick from in the real estate market, it can feel as though your head is spinning out of control. This does not have to be a feeling your experience when it comes to buying your dream home. We share five steps when it comes to buying your dream home – you will be wondering why you were so worried in the first place.

Step One – Finances

Before you begin the search and start looking at listings of potential homes, consider your finances. If you are buying a home with another person or your spouse, it is important to have the important and sometimes dreadful money talk. By having a discussion on finances with your partner and with a professional such as broker, you will be able to determine what your purchasing budget is.

Step Two – Real Estate Agent

Some would argue you don’t need a real estate agent; however, real estate agent has access to some very useful information. They are able to provide a history on the house as well as they can look at a comparable. Knowing what other homes have sold for can best position you when making an offer.

Step Three – Starting the Hunt

You would think this is pretty straightforward; however, for first time homebuyers, this is actually just as daunting as talking about finances. This step, while overwhelming can be a fun experience. During the early stages of the house hunting it is important to go in with a fairly open mind but also with a list of your must-haves and negotiables. For some a driveway is a necessary while for others it is not. The more homes you visit, the better understanding you will have on what you want your dream home to be.

Step Four – The Offer

This is just another reason having a real estate agent can be helpful. They are able to not only provide you insight on market prices but they are able to place an offer for you. Real estate agents want to ensure you are making the right decision and that you are placing an offer on a home you can afford. Not only are they the voice of reason when it comes to the offer, but more often than not, the seller will have a real estate agent who will only want to deal with a fellow real estate agent as well.

Step Five – Move In!

Once you have gone through the finances, the searching and then the placing of the offer – here comes the best part, the move in. Now you get to pack up from your old home and move into a new home for a new adventure and new memories.

Buying a home does not have to be complicated – just check out the five steps we have listed and you will see, that there is nothing to worry about. Still unsure, talk to a local real estate agent today and they’ll show you just how easy and stress-free of a process it can be.

There once was a time that living in a condo was frowned upon. There was a stereotype that came with living in condos. Today, however, the condo life is one that applicable to the working professional, a young family, retiree or anyone seeking the lifestyle of city living but having a place that is their own.

When one thinks of condominium living, they are choosing to live a life that is free from some of the major stressors that often come with owning a freehold. There is little to no maintenance or repairs required on the homeowner’s part. They have access to additional amenities that don’t typically come with a freehold. Many of the condos built today are designed for an ever-evolving city landscape and city lifestyle.

Here is a list of things to consider to help you find the right condominium in your city.

Amenities

• Gym and Swimming- Want to cancel that gym membership? Some condos offer a gym as well as a swimming pool and sauna.
• Parking – Don’t want to have to deal with removing snow or running to your car in the rain? You may have to pay extra, but some condominiums offer underground or covered parking. Not to mention, depending on the style of condominium, the parking may be connected to your unit.
• Entertainment Rooms – Do you enjoy hosting or having parties? While condos do not offer the same space as a freehold, some condos provide entertainment rooms that can all the homeowner to still feel as though they can host and have parties minus the worries for space.

Location

• Transit – Unless you are a retiree, transportation can be very important. How close or far is the condo from a major station?
• Shopping and Groceries – For some, knowing that they are within walking distance of a store is a must, while others this is not as important to them.
• Schools – Whether you are planning to have kids or have kids, distance to a school or childcare can be a necessity. More importantly, if you are close to schools and/or parks this can be a good sign you are looking at a building that is family friendly.

View

• Floor – Not everyone can have or afford a penthouse view; however, for some, if they are to purchase a condo they want to know what their view is or will be. Will you have the view of another building or will it be of nature and greenery. Many cities around the world are building condos with rooftop greenspace.

When it comes to finding the perfect condo, one must consider their lifestyle. Considering whether or not certain amenities are deal breakers or makers will help not only you but your real estate agent as well. They can direct you to buildings that will suit your lifestyle and your budget because everyone deserves to live in their dream home. The last thing you want to do is buy a home in an environment that is the opposite of what you are looking for.

When it comes to owning a home or property in general, property taxes are just part of that package. For first-time homeowners, it may seem overwhelming to have to factor in property taxes in addition to the mortgage and any other routine expenses. To better understand property taxes, we break it down and explain how they are calculated.

What are they?

Property taxes are based on location or municipality. When we pay property taxes we are paying for schools, community services such as garbage pick-up, snow removal, policing and much more. In addition to these services that are paid for by the property taxes, some regions may have additional charges that are specific to the location.

How are they calculated?

Property taxes are calculated by taking the value of your current property along with the total tax rate (which is designated by the city) and then multiplying the two. The number that you get when you do this is the amount you will owe in property taxes.

Do I have to pay them?

Yes, if you own a home you are required by law to pay property taxes. Don’t be afraid by the number that you get every year. Most cities allow for a payment plan that breaks it up into smaller payments. If, however you rent the home, you do not have to pay for the property taxes; however, chances are your landlord has included that into the rent you are paying.

Are property taxes the same everywhere?

No, property taxes will not be the same everywhere. Property taxes will vary on the location – parts of a city that are much denser and there are a lot of services, their taxes will be much higher that rural places where there may not be as much services required. Some cities will offer a breakdown of property taxes based on location. Something to keep in mind though – property taxes are unavoidable and though they will vary on location, this should not be a reason to not look into moving to a specific community.

How can I prepare when paying for property taxes?

When you purchase a home, the previous owner or your real estate agent will be able to provide you with information on your property taxes. This information will include when to pay, how to pay and what is covered in your property taxes. It is important that once you know when your property taxes are due and how much that you plan and save for it. The last think you want is to have a lean against your home.

Buying a home is a big step for most, and paying taxes is never fun; however, it is part of our responsibility if we want to ensure our neighborhoods are safe and are roads and sidewalks are maintained. If you think you won’t be able to afford the property tax in an area, sometimes looking at homes that are below your allotted budget can help with this problem; however, it is best to not let property tax dictate where you live and what you chose to buy.

Ready to buy a home? Curious about the real estate market? Why not work with a buyer’s agent.

What is a buyer’s agent?

A buyer’s agent is a real estate professional who is able to represent you, the buyer and your interest. They are able to manage your transactions as well help you navigate the real estate market. They take the stress out of finding a home and ensure that all the proper guidelines and steps are taken to ensure a smooth transaction.

What do they do?

One of the first things that a buyer’s agent does when you hire them is help you start the search for a home. Typically, what they will do is help you in the research of potential listings and once you have narrowed down the options, they will then arrange a viewing. Not only do they help from the very beginning but they are able to assist with the arranging for an inspection and negotiations. Like a real estate agent, they are able to provide invaluable knowledge that can help you in closing the deal.

They say what we are afraid to.

As potential homebuyers we may not always agree with the price of a home we see. We may see the cost of upgrades and repairs, and our buyer’s agent will too. When they do, they will say the things we may be afraid to say when dealing with the seller. They can negotiate those prices where you may feel need to be reduced. This is just another example of how a buyer’s agent represents the needs of the buyer.

They manage the endless amount of paper work.

Whether you are buying or selling, there is a lot of paperwork involved. With a buyer’s agent, they take care of all the necessary paperwork, from pre-approval letter to disclosure statements and letters of offers. They can ensure that all the t’s have been crossed and the I’s have been dotted. With a buyer’s agent you can rest assured that nothing will be overlooked, if anything you can breathe a sigh of relief knowing they will be thorough every step of the way.

Buyer’s agent takes the stress out of buying a home. Depending on the buyer’s agent and the location to which you are interested in they will also have insight on the location of your potential dream home. With a buyer’s agent, there is no additional fee that you have to pay, which is why they work for their clients and their interest. They want to ensure your needs, concerns and anything else you may be feeling when purchasing a home are addressed and alleviated.

So, when you are ready to take that big step and start the journey to buying a home, consider working with a buyer’s guide, you will be glad you did.

If you are new to the real estate market, you may wonder what’s the difference between homes that have a condo fee versus that of a freehold. Asides from the extra fees, there are a few pros and cons that come with having a home that is either a free hold or part of a condominium.

To best understand the difference of condos and freehold, here are some facts to consider.

Condos are part of a community

When it comes to a condo, there are condo fees often associated with the purchase. These fees are given to the homeowner and then are responsible to pay monthly. Sometimes, when it comes to getting a mortgage, one may have to consider the limit on what they can get as it will play on what they can be approved on.

With a freehold, the homeowner does not pay a monthly maintenance fee or if there is any work that needs to be done, it will be up to the condo association to fix and maintain. Freeholds, it would be entirely up to the homeowner to address any issues and pay out of pocket.

Out of pocket vs. community fund

Condo homeowners pay a monthly fee, also known as condo fees, which are then pooled in a special account. This money is then used to pay for grounds maintenance, if there are communal spaces, this also pays for that. It also pays for certain elements, such as walkways, doors and windows – each condo is different, so it’s important to double check.

Homeowners of freeholds however must pay for any repairs, upgrades and modifications. In a way, this can impact a potential homeowner’s budget. Freeholds can be costly if the house is one that needs repairs and updates.

When it comes to choosing a home – whether it be a condo or freehold, consider what your needs and budget are. If the roof gives out, would you be able to afford it? How much privacy do you want, as some condos are back to back. Enter the real estate market knowing the facts and being informed.