The current financial frenzy has whipped up concerns over investing and
retirement and turned real estate into one of the few investments
attractive to Canadians.
Most financial advisors know little about investing in real estate. The
usual real estate advice from bankers, stock brokers, financial
planners, insurance agents and other investment professionals is to sell
your home, rent something modest and invest the money with them, ideally
in their products. Canadians who wouldn't give up their homes when the
stock market was hot were encouraged to mortgage their properties and
put this money into stocks and mutual funds.
Retirement and estate planners still see renting as an
equally-acceptable alternative to home ownership, which is surprising
when so many Canadian retirees are facing stressful rent hikes and
tenancy problems, particularly those under Ontario's Tenant Protection Act.
Home ownership carries a security of tenure which may not merely equate
to money. This peace of mind supports good health. Studies have proven
that those with safe, comfortable homes and secure tenure live longer
healthier lives.
If you want to have a successful, fulfilling future, expect to take
control of your housing needs and decisions. Relying on advice from
financial advisors and estate planners may short change you since their
interests differ from yours.
Fortunately, real estate brokers, developers and new home salespeople
have learned that savvy Canadians are turned off by hollow razzle dazzle
and "just trust me, sign here" pressures. When you visit a condominium
showroom or new home presentation centre, now you have a better chance
of getting the straight goods than ever before.
Real estate salespeople and builders expect you to visit new home sites
many times, over several months, before making a decision. This does not
mean you can let your guard down, but it does make it easier to get the
facts. Think "buyer be aware" as well as "buyer beware" when you do your
research. The more you understand about the development process and what
is planned for the area around the development, the easier it will be to
successfully select an ideal home.
Pre-selling has become the accepted approach to building new houses,
condominiums and everything in between. This means you must buy from
plans, drawings, computer graphics, written descriptions and verbal
explanations.
Keep your furnishings and lifestyle in mind. If you have
a beloved collection of comfortable pieces, don't let a model suite full
of antiques or expensive furnishings give you false impressions of
space. Visualize the pristine rooms full of the clutter of your hobbies
and activities.
Beware of presentation centres that emphasize decor. The
current wave of interior design mania á la Debbie
Travis' Painted House may distract you from the investment you are
making.
Compare the room dimensions in your current home with those
listed for the new suite or home you're considering. This will help you
see exactly how much useable space you are actually gaining or losing.
Visit completed housing developments by the same architect and
builder to get a feel for their standards and style. Look at a few older
projects to see how well they have weathered. Don't be shy about asking
residents for their impressions.
Ask friends and acquaintances what they learned the hard way.
What do they wish they had taken the time to learn about or fully
understand?
Meet with city planning officials to find out what is planned
for that area. The wonderful farm fields across the road may be zoned
for hundreds of townhomes or an industrial park.
Start a file folder or two to keep the information straight.
Local Realtors may also be able to add to your knowledge by providing
value comparisons with existing homes and condos in the area.
You will probably grow to feel that the salespeople are good
friends who have your interests at heart. Remember, they do not work for
you unless you have paid them to put your interests before the
builder's.
Read the Agreement of Purchase documents and then take them to
an experienced real estate lawyer who has no ties to the developer. Ask
questions about any clauses that do not match what you have been told or
that you have read in promotional literature. Clear up all your
assumptions and hopes before you sign.
If this is a new home or condo, a provincial New Home Warranty
Program may apply: Alberta, Atlantic Canada, British Columbia, Saskatchewan. Check out your rights and how the warranty may help if things go wrong or construction is delayed. Learn the specifics and limitations of any guarantees offered provincially or by anyone. Guarantees are usually not as all encompassing as they first sound.
Remember, "Buyer be aware" is the winning attitude when it comes to real
estate investing.
Published: October 15, 2002
Use of this article without permission is a violation of federal copyright laws.
 Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life.
Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009.
As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com. |
