Wednesday, June 8, 2011

Why Use A Real Estate Agent ? (edit/delete)

There are many discussions going on across North America about the value of using a real estate agent. Below is a copy of an email I recieved from a customer and my response. This was a retired couple. He was a lawyer. I think the email speaks for itself. My response also speaks for itself. Natasha is my daughter who is our general manager.

An email from one of Hants Realty's customers

by Luke Matthews on Wednesday, June 8, 2011 at 4:17pm
This email just made my day!!

Hi Larry. Every time I drive through Brookfield, I say to myself that I must e-mail you, because every house in the village that was for sale when we listed ours is still for sale. So we want to say a very big thank you to you, and of course to Natasha. You were both patient, helpful and cheerful when we needed it. (Especially when I got ticked and was ready to pull the plug!) You are good at what you do, and we tell everyone we see what great service we had from you. Best of luck to you.

Sincerely, Jean and Don.

Here was my response

Hi Jean. Thanks so much. Appreciation is the greatest human want mainly because it is so rare. It is people like you and Don that keep our little family enterprise going and make our efforts all worth while. Give Mark my thanks for recommending me to you and from my family to yours.

God Bless !!

Larry
Larry Matthews is a recognized expert in Nova Scotia real estate. He is licensed as a real estate broker, real estate appraiser and mortgage broker. The Nova Scotia Legislature has passed a resolution recognizing Larry and his wife Peggy for the success of their company Hants Realty Limited. The Municipality of East Hants awarded Hants Realty Limited with a certificate of recognition for providing 25 yrs of quality service to the residents of East Hants. Larry is an author,photographer,artist and publisher. http://www.easthants.com http://www.larrymatthews.com
 

Real Estate The Most Important Fact You Need To Know (edit/delete)

The equity you build in your principle residence is tax free.(In Canada) Most of the wealth created over time is created by owning your own home. The sooner you own a home the quicker you will become financially independent. Renting will keep you poor. These are all time proven facts.
        Today many people are confused because there is so much negativity night after night being broadcast on the news. For example housing sales dropped 27% in the USA in the month of July compared to last year. Supposedly the single biggest drop in history. Canada after seeming to being immune to this recession is now seeing housing sales plummet across the country. Has real estate now become like the stock market ? An investment avenue many people would be wise to avoid ? I would say avoiding the only investment where your return is tax free would be a mistake.
No one would argue that these are uncertain economic times. The whole world is in a state of flux and change is the common denominator. Society is changing that is a fact. Stability is now a rarity in every day life. Technology is changing the work place, how we interact and how things are done. Immerging economies are challenging once dominant countries for superiority in the world market place. Global warming and changing weather patterns are creating chaos around the world. We all have friends who are pessimists and are thriving on all the negativity. It is important to not be overwhelmed by it all and to maintain our focus on improving our financial well being . We do this by adhering to tried and true investment principles one of which is home ownership. Here are some things to consider about real estate. Real estate is local . Figures quoted on the news are usually National in scope. Actually having absolutely no relevance to your local real estate market. Every one needs to live somewhere . Real estate(The Land) cannot be manufactured . They are not making any more real estate. As in any commodity the real estate market is affected by supply and demand. The changes the Canadian government made to the lending requirements have effectively removed 50% of eligible home buyers from the market place so of course that has had a negative impact on home sales.
I have a saying. “ The money is made in the buying”. I can see increased listing inventories and great buying opportunities ahead in many local markets. The best time to buy a home is in a buyers market. (Circumstances favor the buyers) . Motivated home seller’s are going to be more negotiable.
Prices are going to soften and there will be some great deals. Remember you are buying a home. So what if the market remains soft for a few years. Over time the real estate market will recover. You will have capitalized on a unique buying opportunity and have substantially increased your net worth by the tax free appreciation in your principle residence. In closing let me repeat the most important fact you need to know about owning real estate.
The equity you build in your principle residence is TAX FREE. My recommendation. Buy a home and prosper.
Larry Matthews
Sept 4th 2010 http://www.easthants.com/realestate    http://www.larrymatthews.com
http://www.yourfirsthome.ws    http://www.hantsfinancial.ca
Larry Matthews is a recognized expert in Nova Scotia real estate. He is licensed as a real estate broker, real estate appraiser and mortgage broker. The Nova Scotia Legislature has passed a resolution recognizing Larry and his wife Peggy for the success of their company Hants Realty Limited. The Municipality of East Hants awarded Hants Realty Limited with a certificate of recognition for providing 25 yrs of quality service to the residents of East Hants. Larry is an author,photographer,artist and publisher. http://www.easthants.com     http://www.larrymatthews.com
 

How Real Estate and Leverage Can Create Wealth

How Real Estate and Leverage Can Create Wealth (edit/delete)

I would like to explain how leverage can be the essential ingredient to creating wealth. We all understand there are many types of property to consider when buying real estate as an investment. Each property is unique and can be bought with various goals in mind for ROI (return on investment) . Income producing real estate is bought with the emphasis on the cash flow it produces while land might be purchased with hopes of appreciation over time. The average person with $100,000 who buys a $100,000 property. Who pays cash and then sells it for $125,000 thinks he has made 25% on his $100,000 investment. An astute real estate investor will take that $100,000 cash and perhaps buy 10 properties at $100,000 each putting $10,000 down on each and mortgaging the other $90,000. This investor now owns $1,000,000 worth of real estate. Now I realize I am skirting details like closing costs,cash flow etc but an astute investor would be sure of things like debt service and money for closing costs. An astute investor might even get the seller to pay the closing costs. An astute investor would leverage that $100,000 into $1,000,000 worth of real estate. Now let us assume it took the average person 5 years to cash out for the $125,000 and make his $25,000. Now let us assume the same results for our astute investor. That 25% return (say 5% per year not compounded = $25,000 on the average persons property purchased for $100,000. our astute investor cashes out for $1,250,000.00 . His profit is $250,000. Both had $100,000 to invest. The average person made 25% or $25,000. The astute investor made 250% or $250,000. With the same amount to invest over the same amount of time. The astute investor made 1000% more than the average person. That is the power of leverage in relation to real estate. Did the astute investor have more risk and hassle? Of course . Was it worth it ? I believe so.
I realize this may seem far fetched to some people especially in these economic times. I have helped my customers do this time after time over my 35 year career as a real estate broker, mortgage broker and appraiser. This is my third recession. In my 35 years I have made more money by investing in real estate than I have working in real estate. I have a saying. "The money is made in the buying" . The three most important qualities of a good real estate investment are location,location and location. I have another saying "It is not what you make but what you keep that counts". What you net after taxes is the money that you get to keep and spend. An astute real estate investor maximizes leverage and minimizes tax. That is how true wealth is created.
Hants #1
LLarry Matthews
Larry Matthews is a recognized expert in Nova Scotia real estate. He is licensed as a real estate broker, real estate appraiser and mortgage broker. The Nova Scotia Legislature has passed a resolution recognizing Larry and his wife Peggy for the success of their company Hants Realty Limited. The Municipality of East Hants awarded Hants Realty Limited with a certificate of recognition for providing 25 yrs of quality service to the residents of East Hants. Larry is an author,photographer,artist and publisher. http://www.easthants.com http://www.larrymatthews.com