Just as it is important to have a great Mortgage Broker who you can depend on, I have also been very lucky to know one of the best minds in the Toronto Real Estate appraisal business, Barry Lebow. Barry is not shy about giving you his thoughts so I asked him for some suggestions for Sellers and Buyers in Today’s Real Estate Market:
Sellers or Home Owners:
“For someone who is worried about their home ownership one way to get a leg up is to finally think of finishing that basement into a rental unit. Let’s face reality, most people who rent a unit in their home do not add that income into their income tax. I am not advocating cheating on taxes I am observing that it is the norm. So, if someone was at a 30% tax bracket and getting a basement rental income of $850 a month it is as if their income increased by another $13,000 a year. Yes, there are more utility costs to deduct but overall, renting and keeping one’s home makes a lot of sense.
Even a small thing, like having that rare garage in the city core that you have filled with junk or do not use, it can bring in tax free income as there are many people who want private winter storage for their prized vehicle.”
For Buyers and Sellers who become Buyers:
“We have experienced a downturn in the economy at the same time that we traditionally experience a downturn in real estate, the months of December and January. Real estate activity in the hottest years falls off during these months. For people fence sitting, there should be some good deals out there and for people wanting to move up, even better.”
When markets shift the worst thing you can do is nothing. Opportunities are in every market, whether you decide to stay where you are and renovate, or take advantage of a slower market to buy.”