Advertising Feature | European Vacation Homes and Real Estate

Published in the Real Estate Edge magazine in February 2007, this advertising section for recreational property investments in Europe provides information on accessible and affordable real estate investments for retirement or recreation.

European vacation home dreams can come true with Seekers Canada – take a trip and discover great investment real estate opportunities.

Don’t think of it as retirement. Think of it as the next phase of the best years of your life. Then formulate a comprehensive plan that will enable you to squeeze every drop of enjoyment, fulfillment and adventure from the years to come.

Many healthy and active Western Canadians past the age of 50 are doing exactly that. They’re including Spain’s warm, hospitable Costa Blanca in their plans, purchasing surprisingly affordable and valuable retirement/vacation homes and real estate on the shores of the Mediterranean.

It’s easier than you think. And there’s no need to go it alone. Seekers Canada, the marketing arm of an International network of Real Estate professionals with associates in the UK, Italy, and Spain, is here to assist you every step of the way as you decide and purchase your recreational and retirement real estate across the world.

Based in Edmonton, Seekers Canada, offers access to an enormous range of European vacation real estate properties to suit property investors who wish to combine rental return with capital growth or to purchase a home to occupy for a portion of the year, then to rent out during the summer months. Numerous syndicate corporate-purchase packages are also available for these European real estate recreation and retirement homes and properties.

And Seekers Canada will stick by your side, helping you to answer every legal, regulatory, or tax-realted question that may arise along the way. “Many Canadians have begun to consider the Mediterranean an attractive alternative to more traditional retirement destinations such as B.C. or the U.S.,” explains Vernon Samaroo of Seekers Canada. “Many are often disappointed by the length, gloom, and dampness of B.C. winters,” says Samaroo, adding: “Besides, B.C. real estate will virtually be out of reach of a large number of baby boomers seeking a warmer climate in the winter months. Others have found that gated communities in Florida and Arizona have lost much of their appeal in recent years.”

So consider the new real estate investment options. Consider Europe property investing. Aft first, it sounds like an impossible dream. But Seekers Canada is making that dream a reality for dozens of shrewd Canadians who wish to combine a desireable lifestyle with a readily workable real estae property investment strategy.

Seekers Canada can help you find suitable property and real estate recreational and retirement homes in France or Portugal, Turkey or Hungary. But at the moment, the Mediterranean coast of Spain is the area of choice for some very good reasons.

“The British and Germans have been buying real estate recreational and retirement properties there since the mid-60s. As a result, the financial and social infrastructure in these regions are very strong. These areas are not over-run by tourists. In fact, they are extremely quiet during the winter months (average temperature of 19 0C), when most Canadians would be more likely to visit their Spanish property investments.”

Second, offshore landlords who have purchased real estate along the coast have rapidly found that the income from summer-only rental arrangements can be more than enough to cover their annual mortgage payments.

These are not timeshares or timeshared recreational property real estate, but full title ownership accompanied by bank guarantees and 10 year new home warranty. And how do clients feel about Spain, which boasts the best health-care system in Europe?

Read this testimonial authored by Seekers Canada client Jim Guthrie, Edmonton-based general manager for Frontier Drilling, USA. Although they were somewhat sceptical going in, Jim and his wife purchased a Spanish apartment real estate within a week of their first visit. “Many different facts and experiences influenced our decision,” Jim subsequently wrote. “The entire area is well planned, well built, and with a local populations that is fairly prosperous, friendly and courteous.” The real estate property investments developments all had lots of green spaces, good views, great walkways with flowers, palm trees, water courses and swimming pools … I think one of the great selling points of the country are, the beaches are groomed every day, and the county authorities have developed these wonderful walking, bike-riding paths all along the Mediterranean, and just adjacent to the beach.”

Guthrie also praised Seekers Canada and its associates for their expert advice on “banking, legal, government and real estate regulations we would encounter, and generally speaking none of them were onerous.”

They also provide rental and property-management services for the recreational and retirement property real estate which complete a fully hands-on program.

By the way, Spanish real estate values and property capital gains have steadily risen in recent years and insiders expect the trend to continue through the coming decade and beyond. You can get acquainted with Seekers Canada by attending an introductory teleconference presentation, or perhaps a friendly dinner presentation, ideal for families and groups no larger than 12. Then accept Seekers Canada’s invitation to travel to Spain for a personal inspection or the retirement real estate and recreational properties.

“We do ask you to pay for your airfare. We take care of all your other expenses. And if you decide to purchase, airfares will be refunded, says Samaroo.

A personal guide will show real estate properties, answer questions and help you get acquainted with one of the most exquisiste vacation destinations on earth. First get all the facts. Then make the shrewdest investment real estate call of your life. For contact information, as well as further details, please visit the informative website: www.seekerscanada.com.

Don’t make the same mistake in property investing in real estate!

Lawyer Rob Balanda pulls more property investment warning stories from his filing cabinet, so you can learn from the mistakes of others. This was published for the Australian Property Investor magazine in February 2007 (apimagazine.com.au)

Trading Properties

I received a call from a real estate investor who had been sitting on an old fibro cottage in an areas which he though would be a prime redevelopment real estate site. He had been watching real estate prices rise and rise but in the past year or two they’d slipped back.

He didn’t find this out until he put the real estate property on the market at what he thought would be a record price, only to find out that the real estate market hadn’t rung a bell when it hit the top, and he’d missed the upswing. Keen to see the real estate property investment, but with unrealistic expectations about its value in the market, he placed an ad in the exchanges and trades section in the real estate part of his local newspaper.

As luck would have it he found someone with a similar problem and he agreed to exchange his real estate property for another person’s expensive unit. The exchange got him out of a property investment that he no longer wanted but he didn’t have the cash fro the sale to, for example, pay his capital gains tax.

I also gave him a fright when I told him the amount of stamp duty he’d have to pay on the expensive unit that he was trading for. He then suggested to me that we should “write down” purchases prices of both real estate properties to save him and his co-investor a bit of stamp duty and a lot of tax. Wrong.

My advice to him was this was a definite no-no and I strongly urged him not to do it. The reasons I gave him were as follows:

1. Firstly, writing down the real estate purchase prices deprives the Australian Tax Office of revenue and this is considered fraud.

2. Secondly, the Office of State Revenue is entitled to stamp duty on the real estate purchase price of the traded property investment or its value, whichever is greater, and by writing down the purchase prices he will deprive them of revenue.

3. Thirdly, as he was transferring a loan from the fibro dwelling to the real estate unit this created all sorts of problems for him and his lender. Lenders base the amount they’re advancing on the value of the real estate property or the purchase price – whichever is lesser. If he wrote down the value, the lender wouldn’t be able to transfer the full amount of the loan that he had on the fibro cottage over to the new unit.

4. Finally, and worst of all, you artificially create a lower cost base for capital gains tax purposes which could come back to haunt you in the future. For example, if you wrote down the value of the real estate property which was valued at $600,000 to a $400,000 sale price and you later sold the property after it had gained $200,000 (making it now worth $800,000), tax would be payable on the amount of $400,000 ($800,000 less $400,000). This is a huge mistake and the real estate investor wanted to do it to save himself a miserable amount of stamp duty. Forget it!

Option or first right of refusal on real estate property investments

A real estate property investor advised me that he and the owner of the property had agreed that he would have first option to buy this property in the next six months and asked me if I could do something simple to document this agreement. I asked him:

What was the purchase price for the real estate property investment should the first option be exercised?

When would the settlement take place?

What was the amount of the deposit?

I also asked some other questions about details that are normally included in a formal contract of sale for real estate property.

It was clear to me that he hadn’t agreed to take an option to buy the property investment, but had simply been given a right of first refusal. There’s a fundamental difference between these two concepts.

An option to purchase real estate gives the buyer of the property the right, but not the obligation, to buy the real estate property within, say, a six-month period. It allows the investor of real estate to put the property on lay-by and during the next six months make up their mind about whether they wish to purchase the property or not.

It’s essential however that the exact terms of the contract that comes into existence if the option is exercised are finalised at the same time the option is granted for that real estate property specifically, for example the purchase price, settlement date, deposit, etc.

A right of first refusal has been described by the High Court of Australia as “worthless”. It means that if the real estate owner of the property at some time in the future decides to sell the property – and they don’t have to – they agree to first advise you that it’s now available for purchase.

That purchase will be on whatever terms and price they determine and once they’ve made you aware that it’s for sale, then you’ve discharged their obligations to you. It’s for this reason the High Court says it’s worthless.

For more practical point of view, and not the lofty heights of the highest court in the land, the right of first refusal does have some value. It’s worth something to be the first person to know that a real estate property is for sale, as you can then at least take the initiative and attempt to buy it.

Rob Balanda is a partner of MBA Lawyers at Surfers Paradise and the author of the “Made Simple” series of publications available from Business Mall. Please note that this information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.

Avoiding the Pitfalls of Real Estate Investment

In Part 5, Monique Wakelin talks about what to watch out for when deciding what proper real estate assets you should consider in the December issue of API Magazine for the article: ‘Take Control: How Home Equity puts you in the driver’s seat’.

It’s not unusual to hear tales of woe from both first-time and seasoned real estate investors who have fallen for the traps and failed to achieve the capital gains they expected. Some of the most common mistakes that could potentially cost thousands of dollars include:

Investing in speculative sectors of the residential property real estate market. These include off-the-plan developments that concentrate on “inducements” such as rental guarantees, offers of finance or tax breaks. The “inducements” often mask a propensity for low or no capital growth.

Faulty real estate asset selection. You can select a real estate investment property in the right suburb but in the wrong street. It may be that the surrounding buildings and aspect detract from its attractiveness and long-term growth potential. The wrong building style can also be a slow mover, even if it’s in the right area.

Failing to understand the importance of scarcity value. The higher the demand for the asset and the less supply, the greater your capital gain in real estate will be.

Buying a real estate investment property for tax benefits, stamp duty savings or rental guarantees. On a properly selected investment property, these factors are an added bonus rather than the primary reason for the purchase. Nobody ever becomes financially independent concentrating on saving tax.

Failure to check major body corporate expenditure. The fees charged on some apartment developments canbe astronomical. In the case of some CBD high-rises, body corporate fees can be between $3000 and $4000 a year. This is a major part of an investor’s outgoings and an unnecessary expense.

Paying too much. An overpriced real estate property will take a great deal longer to catch up with its true worth and to start producing capital gains than one that was bought at the right real estate market price to begin with. Always do your homework in regard to prior benchmarking in real estate value.

Failure to diversify locations and building styles within a property portfolio in real estate. Not all real estate sectors of the property market move in a uniform way – even in the high demand areas. Diversity in a real estate portfolio can help the investor ride out any short-term anomalies in one area or market sector.

Relying on historical statistics. Most of the property real estate data we see is already three months old. This puts the investor in the position of trying to make tomorrow’s decision with yesterday’s news. You can’t beat on-the-ground homework for the most accurate picture of where the market is and where the real estate markets are moving.

Lack of independent information. When seeking advice from anyone in an advisory capacity, always check their qualifications, length of time in business, affiliations, any vested interest, what they abse their recommendations on, what ongoing services they provide and ensure their fees are paid by you, the customer, and not by other interested parties. Always ensure they have unrestricted access to the real estate market.

The cost of waiting for the “ideal” circumstances. This could be a wait-and-see attitude to interest rate movements or whether the property real estate market is going to soften. There’s no right or wrong time to buy an investment real estate property. If investors apply the long-term principle then the cost of waiting can be very expensive indeed!

Monique Wakelin is the co-founder of Wakelin Property Advisory, www.wakelin.com.au, a Melbourne-based property consultancy. For more home purchasing and real estate investment tips and checklists, please visit this link.

Tips on Saving for a Real Estate Down Payment

For many first-time home buyers, the thought of saving a substantial amount of money for a downpayment can seem overwhelming. But there are several ways to make a down payment a lot easier and have you into your new home faster than you’d ever imagine. Published in the New Home Buyers Guide January 19 – February 02, 2007 on Page 22.

Invest in yourself first
No doubt you think that paying your monthly bills is an important financial commitment. Like most people, you may also consider savings or investments to be purely optional.

However, if you can commit yourself to paying everyone else, you can make the same commitment to yourself. Set up a savings or investment plan and start making payment to it, just as you do for other creditors.

Re-organize your finances and you may find the money you need to collect for the purchase of your first home. Often times, finding some extra money for savings is as easy as reorganizing your budget. Managing your money a little differently perhaps by consolidating your debts, can sometimes free up the extra money you need.

Consider tapping into your RRSPs
RRSPs are a good way to secure your financial future while enjoying the tax benefits today. As a first-time home buyer (or if you haven’t owned a home in the previous five calendar years) you may qualify for the government approved RRSP Home Buyers Plan that allows you to use your RRSP savings toward the purchase of a home. If eligible, you and your spouse may withdraw up to $20,000 each from funds that have been in your RRSPs for at least 90 days.

The funds aren’t taxed as long as you repay the total amount to your RRSP over the next 15 years. Your payments don’t have to start until the second year after the initial withdrawal.

Use GICs to help you save
GICs offer you competitive rates of return and offer a safe, secure way to grow your savings. For flexibility, you can choose from a variety of terms. Choose non-cashable GICs and your money will be securely tucked away for the term you choose and you won’t be tempted to dip into it.

Another government approved program allows you to have less tax deducted from your regular pay cheque. You’ll benefit from a tax refund each month rather than one lump sum next year.

Every month you’ll have extra cash on hand to add to your downpayment savings on your new home or real estate property and then once you own your home, you’ll be able to make your regular mortgage payments or contribute to your RRSP more easily.

First Time Home Buyer Info

The first time real estate home buyer property purchase tax exemption. First time buyers are exempt from paying the property purchase tax under the following conditions:

1. Price of real estate property is $325,000 (Lower Mainland of Vancouver) or less. For homes between $325,000 and $350,000 an exemption is available on the sliding scale. Above $350,000, there is no exemption available.
2. Mortgage loan to value ratio is 70% or higher.
3. Mortgage term must be for one year or longer.
4. Mortgages held by parents do not qualify.
5. Maximum amount of real estate principal buy down in the first year is $13,000, in the Lower Mainland.
6. Home buyers must not have owned a house anywhere in the world before. If only one client qualifies then only their portion of the home purchase will be eligible for the exemption.
7. Home buyers must have been a resident of B.C. for at least one year, or have filed tax returns as a resident of B.C. for two of the last six years.
8. If home purchasers move out of the home prior to their one year anniversary, a portion of the Property Tax will be payable.

The price and savings for this tax exemption for first time home buyers of real estate properties:
$325,000 = $4,500
$275,000 = $3,500
$250,000 = $3,000
$200,000 = $2,000
$150,000 = $1,500
$100,000 = $1,000
$50,000 = $500

For more information about Real Estate Checklists and Tips for Real Estate Investment Condos in the United States and Canada, click here.

The Home Buying Process

Frequently asked questions about buying a new home from the New Home Buyer’s Guide BC Homes & Resorts from August 25 – September 22, 2006 edition with permission from the Canadian Home Builder’s Association (Visit CHBA at www.chba.com and HomeBase.ca for more information).

The home buying process should begin with questions – lots of questions to help you to make the right decisions about the builder you choose and the home you buy. Asking questions helps you to understand the buying process and eliminate any uncertainty you may have about it. Here are some of the common questions that home buyers ask in consumer seminars, in calls to local Home Buyers’ Association offices and in builders’ sales centres.

How do I make sure that I choose the right new home builder?

Talk with several new home builders first. Check out each company and the quality of their homes. Visit model homes or sales offices. Get facts and figures about every builder: How long have you been in business? Where have you built real estate before? Where are you building now? Can I visit one of your construction sites? Are you a member of the Canadian Home Builders’ Association? And so on. Ask about their customer service and third party warranty. Ask for references from past customers and follow up with them.

What kind of products will my builder use?

Professional builders use only products with a good reputation and a proven track record, products that are made by established manufacturers, meet Canadian standards and come with a warranty. The use of brand-name products in new homes offers a double benefit – you know what you are getting and so does your builder. I am not sure about my builder’s construction methods and technologies. How do I know they really work? Home building has advanced tremendously even over the last ten years, and technically, new homes are more sophisticated than they used to be. If you have questions about any aspect of how your home is built or how any of the systems or products work, such as the furnace or ventilation equipment, don’t hesitate to ask. Professional builders will be happy to explain things in detail. They often have cutaways or examples in their model homes or offices, or they can give you manufacturer’s information or third-party (such as government) reference materials.

What if there is a delay in finishing the home?

Both you and the builder want to see your home completed on time, and in the vast majority of cases, your home will be ready as scheduled. Occasionally, a delay may happen as a result of the unforeseeable – most often, sudden shortages of materials or labour. When a delay in unavoidable, your builder will work hard to minimize any inconvenience to you and your family. Ask your real estate builder to explain in detail what you can expect in case of delay.

Can I visit the construction site to watch the progress of my home?

Seeing your home take shape can be an exciting aspect of buying a new home. Ask your builder about the company’s policy on site visits and how to make arrangements. Can you tour your home while it is in progress and when? During construction hours, or in the evening and on weekends? Keep in mind that, for safety reasons, you should not enter the construction site for an unscheduled visit.

I have heard about the “other costs” of buying a home. What are they?

By far, the largest cost of home buying is the price of the house. However, there are some accompanying costs that you should be aware of. These costs vary from one region to another, but typically include lawyer’s fees, an appraisal fee (for mortgage purposes), fire insurance, and adjustments if you are selling your current home. Ask your builder or lender to give you a list of items and an estimate of costs. (Home buyers are often encouraged to set aside between 1.5% and 2.5% of the rice of the house for additional costs). At the same time, make sure to ask about the projected taxes for the new home, and the builder’s estimate for utility bills.

How long will it take to build my home?

The time required to build a new home can vary considerably, depending on development of the land, availability of labour, size and design of the home and a number of other factors. In larger developments, construction of your home may no begin until a certain percentage of the homes have been pre-sold to ensure an efficient and cost effective real estate construction process. Your builder will provide you with a detailed schedule of events and milestones, so you’ll know exactly what to expect and when.

Can I make changes to the design?

Today, customizing is the norm, not the exception. Often, your chosen plan can be modified, before the foundation is built, to suit your own needs and desires – eg. Moving walls, wxpanding closets, adding windows. However, each builder has a different approach, so ask about flexibility and limitations in the design. Do I have choices? Can I make changes and when? In larger real estate developments, the exterior style elements and colour scheme may be architecturally determined, so there are fewer opportunities to accommodate personal preference.

What is warranted and for how long?

Professional real estate builders provide third-party warranty on their homes to protect purchasers against faulty materials or workmanship, usually for one year, and against major structural faults for up to five years (up to ten under extended warranty options). The warranty also protects deposits up to a certain amount. Warranty programs vary from one province to another, so make sure to have your builder explain exactly what’s covered or call your program office for more information.

What else should I know about?

How buyers ask many other questions, depending on the specific circumstances. For instance, when you are buying from a model home or from a drawing, you want to know if there are any differences between what you see and what you get. You also want to know about your choice of features, if you can supply your own fixtures or materials, and if you get a credit or refund when eliminating items included with the home. In large developments, ask to see the utility plan: Where are the electrical boxes or panels placed? Streetlights and postal boxes? Where is the bus stop? Also find out about the landscaping plan and when the roads will be paved.

Professional home builders welcome your questions. They know that a well informed customer is most often a satisfied customer – the greater your confidence in them, the more satisfying the process for both you and your builder.

Sheriden Manor Real Estate

Invest: Retire or just Enjoy Recreation. An article written by Bill Kimmett and published in the New Home Buyers Guide in the October 13 – October 27, 2006 edition.

Being more than a bit shell shocked with real estate prices lately, I thought I had slumped into an 80s mode when Cliff Armstrong of Sutton Group Express Realty informed me that “you can purchase at Sheriden Manor in 100 Mile House from $44,900.”

To put things into perspective, you can buy a condominium in this bustling South Cariboo town for the price of a car. And with real estate investment returns ranging from 24.8% to 36% per annum, this is an incredible deal. Invest in B.C.’s hot real estate market now and reap the benefits.

To make your real estate investment painless as possible, a management company will ensure that your condominium is rented at no additional cost to you. And vacancy rates have been at less than 2% for the past few years. Here at Sheriden Manor, buyers will enjoy a completely worry-free investment in real estate.

Back to my day-dreaming! Buy a home for this incredible price, and decide whether to rent as an investment or move in and retire in the splendour of the South Cariboo. My friend had a guest ranch in nearby Clinton, so the rolling big sky country surrounding 100 Mile House is familiar to me. So close to Vancouver yet a million miles away in serenity and lifestyle.

Last year I drove with my brother the road from Vancouver through Whsitler, Pemberton and then to the Cariboo. An alternative route to the typical drive through the Fraser Valley through Hope and then North. The scenery was spectacular and with the miles, stress dropped away.

Arriving at 100 Mile House you will be amazed at the variety of outdoor pursuits to engage you. Lakes abound offering the bliss of fishing or simply relishing the sparkle of pristine waters. Camping is the name of the game in this four season wonderland with opportunities to set up your camp around every corner. The excitement of riding steeds over seemingly endless trails captures the cowboy in all of us. And for those who need the thundering hammer of engines in their outdoor adventures, you will find it in the snowmobiling trails. Cross-country skiing for the purists and downhill for the speed fanatics … here in the condominium at Sheriden Manor, you are close to it all.

Cliff advised that for as little as $11,000 down you can be an owner here. And when you call him, ask about the zero down payment plan. Sheriden Manor sounds better and better. The points to remember are prices from $44,900, worry-free managed investment in real estate, fully rented with a less than 2% yearly vacancy rate, returns to 36% plus, close to a bounty of four season enjoyment, and in the vibrant growing community of 100 Mile House.

Visit www.cliffandgary.com or call Cliff Armstrong or Gary McGratten at 604-538-8888.

Their advertisement in a real estate magazine is as follows:
This is your opportunity to invest in BC’s hot real estate market. Returns on real estate investment from 24.8 to 36% per annum with bachelor, one bedroom and two bedroom condominiums for sale. Close to hundreds of lakes, fishing, camping, hiking, boating, cross-country and downhill skiing, horseback riding, hunting, golfing, snowmobiling and much more.

Buying a new home or real estate investment

Courtesy of the Canadian Home Builders Association and also published in the New Home Buyers Guide in October 2006.

The Typical New Home Buying Process

Buying a brand new home is a big decision and an important real estate investment, and there is a lot to think about. You want to buy with confidence, enjoy the experience and know that you have made the best decision for you and your family. Typically the process of buying a brand new home or real estate property takes place over time and in several stages. To begin with, you want to take some time depending on your priorities – what you want in a home, where you want t o live and how much you want to spend on your property – and then explore what’s available. Once you have narrowed your choices down to one community, one builder and one real estate home, you are ready to work out the details and sign a contract with your builder. Then it’s time to step back and let the builder do the work.

Before you start looking

Get off to a great start by doing some pre-planning before you go house hunting or real estate shopping. Discuss with everyone in your household what they want in your new real estate property and surroundings. Make a list of what’s important and divide them into must-haves and would-be-nice-to-haves. Also think about what you absolutely don’t want to live with. Here are some of the things you should consider.

Community
- distance to work; traffic; public transportation
- schools and child care
- places of worship; hospitals; libraries
- distance to shops
- green spaces; recreational facilities

Your Home
- style; size; number of bedrooms; home office, other needs
- layout; open or divided spaces; formal or informal; privacy needs, flexibility for changing use of space in the future
- mobility restrictions, health considerations; indoor air quality
- energy efficient outdoor spaces
- special features – the things you have always dreamed about having
- pre-wiring for automation; security systems, communication, entertainment, business

Financing
- the downpayment you have available
- the monthly mortgage payment you are comfortable with
- other financial obligations and needs

At this point, find out who the CHBA members builders are in your community. Check ads in your newspaper to get a sense of what builders are offering. Talk with family, friends and co-workers who have recently bought a new home. Ask your lender for mortgage pre-approval so you know the price range you should be looking at. Attend a home show or real estate investment show to see the latest in features and finishings, and to meet area builders.

Exploring your Options

Now you are ready to see what’s available. As you drive around visiting builders’ model homes, sales centres for new real estate deals and offices, it’s a good idea to take notes. That way, it is much easier to make comparisons later.

The key to successful home hunting is to take your time. Don’t rush. Take a thorough look at everything and ask questions – lots of them. The real estate builder or salesperson should be ready and pleased to answer each question. Sales centres will often have a complete information package on the real estate and homes, the development, and the real estate community, including schools and other facilities. And keep in mind that a real estate builder’s model home is usually just one of several designs offered by the company – a starting point.

The community/development
- Does the community meet your needs (as determined in your planning)?
- Does the development have a good “feel”? Can you see yourself living there? Ask about landscaping plans and common facilities, if any. Visit a builder’s finished real estate development for a better impression
- What are the long-term plans for the community and real estate development – e.g. growth, roads, facilities, commercial/industrial expansion?
- Are there any community or development convenants and bylaws that restrict how you can live in your home (e.g. no pets)?

Model homes and real estate plans
- Take a close look at the qualify of each model home – is construction solid, the real estate finishing well done with attention to details?
- Compare real estate floorplan layouts and size (more square feet does not always mean more living space).
- Find out if the features in each model home are standard or upgrades (i.e. extra cost) and ask to see samples of the real estate builder’s standard finishing products.
- Note the features of each real estate property and home that appeal to you (worth considering when you have made a final decision on a model and have some leeway for details).
- Imagine your family’s daily routine through out the seasons.
- Note if the real estate builder is using brand-name products you know and trust.
- Ask about each builder’s design flexibility (e.g. moving walls, enlarging windows).
- Ask about optional or upgrade “packages” (e.g. lighting and plumbing fixtures).
- Look at the real estate company’s other designs and plans
- Visit model homes outside your price range for ideas for layout and features (but stay focused on the price range that’s most comfortable for you).
- Ask about lot availability for the home model suite you are interested in – there may be restrictions.

The builder
You should shop around for your real estate property builder as carefully as you do for your home.
- Is the company a member of the local Home Builder’s Association? Membership is an important indication of their professionalism.
- Does the company belong to a provincial new home warranty program?
- How long has the company been in business, and on average, how many real estate properties do they build annually?
- Where else have they built and/or are they building now (it’s worth a quick tour to see if you like the finished results).
- Will they give you the names of past customers for references (Do check with a few to find out if they are satisfied and would recommend the real estate builder).
- Call the Better Business Bureau to see if there are any complaints against the company.
- Ask about after-sales service – most builders have an established follow-up system
- Find out, in detail, what the warranty on your real estate property or home covers.

And you also need to know
- What is the recommended deposit? Can you make a refundable deposit to hold the home/lot for a few days or a week, while you make a final decision?
- Are you expected to make milestone payments throughout construction or pay the full price of the home, less deposit, on the day you take possession?
- When can construction and real estate development begin, and when can you expect to move in?
- Who will your contact person be, before and during the real estate construction phase of your home?
- Would you be able visit your home during construction?

Once you have found your new home

When you have found the home you want, and you are confident that you are dealing with a professional builder, you can ask the builder to write up a sales agreement. Make sure you have a lawyer review the contract before you sign. From here on, you will be working in close contact with your real estate builder, or builder’s representative to see your home purchase brought to a satisfactory conclusion.

- You need to finalize arrangements with your bank lender, if the real estate contract is conditional upon financing.
- As construction progresses, your real estate builder will call you into choose finishings such as cupboards, floor coverings, and tiles (referred to as “colour selections”).
- Your builder may ask you to make final decisions on placement of electrical, telephone and cable outlets.
- The builder may make arrangements for you to visit your home in progress (for safety and insurance reasons you cannot drop by the construction site unexpectedly).
- Just before your home is completed, you will be asked to join the real estate builder on a walkthrough of the home to verify that the work has been done according to plan. You will be asked to sign a certificate of completion, noting any last-minute touch-ups or details yet to be done to your real estate property. This triggers the warranty coverage on your home. Outstanding work will be done before you move in, or soon after.
- The builder will provide you with the manufacturers’ warranties on components and products used in your home.
- On closing day, title to the home is transferred to you from the real estate developer, the outstanding payment balance is transferred from your financial institution to the builder, and you get the keys to your new home. This is done through lawyers who register everything with the appropriate authorities.
- Before the end of your first year in the new house, the real estate developer will touch up any small imperfections that may have merged due to the house settling and materials drying out (completely normal in any new home).
- BUT you don’t have to wait if you have questions, concerns or problems. Professional builders provide effective after-sales service-part of their commitment to customer satisfaction.