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It’s incredibly risky for someone to pursue selling or buying a home without a real estate agent. There’s a ton to know and a minefield to navigate through when it comes to hunting, negotiating and legalities.

All productive and effective real estate agent share certain qualities.

Local Knowledge is Key Because Every Neighbourhood is Different

Partnering with the best real estate is great but you might be better served with the best real estate agent for your specific area. The most successful real estate in Toronto might not be the best bet for your desire to buy a home in Milton.

A Personal Reference is worth a lot more than Marketing

When someone you know and trust has worked with a professional you are considering, their recommendation can be the difference maker. Anyone can write a catchy slogan on a bus shelter ad but when someone you know recommends an agent, it’s a sign that there’s at least something positive there.

A Hands-on Approach

Real estate is a client service business and shouldn’t be done by sitting at a desk. Your agent should be physically with you every step of the way from viewings to open houses to meeting you at coffee shops to go over strategy and listings. If you find yourself missing your real estate agent, then it’s probably time to find a new one.

If your Real Estate Agent has any of these Qualities, you Might want to Reconsider

If your real estate agent lacks communication skills, is hard to reach or is constantly scrambling for answers than you need to take note and possibly act. This is the biggest purchase of your life so you need their undivided attention.

If you don’t feel as if your wants and needs are being reflected or that your agent is imposing their will, you need to take note and decide if it’s time to course correct.

Above all else, you know whether you have the right agent or not and it’s perfectly fine to go with your gut. It’s about what’s right for you.

There are lots of great reasons to apply for a home equity loan. Some of the more popular ones are renovations or a medical emergency. One of the lesser known reasons that people look to a home equity loan is to buy investment properties.

Is this a good idea? It’s not a straightforward answer so let’s look at the pros and cons.

Should People use their Home Equity to Invest?

A property owned for the sole purpose of being flipped or rented can be a great investment especially in a market like the GTA. Using a home equity loan to fund this type of venture is a hit or miss proposition based on the competency of the applicant. Most industry professionals will tell you that using your home equity to fund a side business or investment is a good idea.

Pro: If you have the Right Experience and Personality then you could find Success

Rental properties can provide a steady income and even pay for themselves if you put in the proper work and buy in the right neighbourhood. If you focus on the numbers and not the emotion or delusions of grandeur you could experience a very healthy return on your investment.

Pro: One of the more Stable Markets

The housing market in the GTA has proven to be strong year over year. Very few markets can make the same claim of stability so if you’re looking for a sound investment and the chance to put in a little elbow grease than an investment property is might be your calling.

Con: Every Market has some Volatility

There’s always volatility within the market and you must be prepared for the long haul. Whether you’re flipping or renting, it’ll take time to make your money back. With all investments, a realistic approach is best.

Con: There could be Trouble if you don’t Flip or Rent Fast

Not only will you have to pay the down payment you’ll also have to cover all the costs associated with buying a home. If you can’t flip or fill it fast you might be paying for two homes which for most can be strenuous.

The best thing to do is sit down with a trusted professional and decide if a home equity loan for an investment property is right for you.

House Hunting is tough, there’s no doubt about it. It’s stressful and time consuming and there’s a lot to know if you want to do it right.

Here’s some dos and don’ts that can help guide your hunt and make sure you make an offer with confidence on the best home for you.

Do set a Budget

A lot of hunters think that a few thousand dollars paid over 25 years is so big deal. While you shouldn’t let your dream home slip away, every dollar counts and there will be interest paid on every dollar borrowed for the purchase. It’s okay to be flexible but still wise to set a budget.

Do Invest in a Home Inspection

You need the trained eye of a professional to inspect the plumbing, appliances and to determine if there’s any lingering problems or potential ones on the horizon. The average person doesn’t have this knowledge or these skills, making a professional home inspection a worthy investment.

Do Shop for a Rate

The interest rate and associated terms are crucial to your financial health so make sure you are getting the best deal. To do this, you need to shop around and be well informed about the future prognosis of mortgage rates to see if waiting a bit makes sense.

Don’t Trust Every Word of a Listing

Listings are ads. They are designed to intrigue and entice, to compel the reader to take the next step. There’s also a lot of grey area and it’s easy for agents to play with wording. How new do “new appliances” have to be for it to be accurate? Impossible to answer and those who craft listings know that.

Don’t Overbid just for the sake of Winning

Bidding on a house or condo is thrilling. The anticipation can be a rush and that moment where your bid is chosen is a feeling of total euphoria. It’s important to know that while winning is great you want to pay fair value, which means curbing any impulses to blow your opponent out of the water.

The biggest do of all is to surround yourself with knowledgeable professionals that you trust and who can guide you on what to do and what not to do, helping you come out on top.

Home equity loans are simple yet are sometimes treated as complicated. It’s a type of loan that allows a person to borrow against the value of their home, and to take advantage of equity they’ve built up.

Most industry experts express that homeowners should take more advantage of home equity loans, believing it to be a viable treatment of their best asset.

Here’s some basics that are important for everyone to know.

Low Rates, Relatively Easy Approval and Potential Tax Benefits

Typically, with home equity loans you can receive a fair interest rate, especially when compared to other loans. While not guaranteed, most homeowners can get approved even if they have bad credit, because your home is strong collateral.

As well, interest on a home equity loan can potentially be tax deductible, but not in every case. This is one question you will want to ask your accountant.

Large Amounts for Borrowers and Secured Loans for Lenders

Home equity can help you access a large sum of money if you need to overcome financial difficulties. It can also help you pursue a business opportunity or to fund an education or deal with a medical emergency. These things cost money, sometimes more than you have liquid in savings.

These loans are secured loans because banks feel comfortable extending you a loan based on the equity in your home.

You can borrow with a Home Equity Loan in Two Ways

Borrowers have two options when they are approved for a home equity loan. They can receive a lump sum or it can be dispensed as a line of credit. With a line of credit the money will be made available and you only repay what you use.

The way you borrow effects the repayment plan and accrued interest.

Be Wise in how you Borrow when your Home is Involved

As with anything, there are some pitfalls with home equity loans. Since your home is involved you don’t want to borrow against it to travel or repay a credit card. It is best used in specific situations and can be incredibly beneficial in those circumstances.