How to ride the new wave

BY JAY BRIJPAUL

COVID-19 has sparked a new evolutionary trend. To curb the spread of COVID-19, companies have adapted by asking their employees to work from home. The world became virtual: virtual meetings, virtual court trials and, in real estate, a buyer can now view homes virtually, sign documents electronically and meet with their lawyers via zoom. Most employees who work behind the desk are embracing this trend and if given the opportunity, will continue to work from home.  It is a win-win situation because employers would require less office space and the company’s overall expense would shrink.  Employees are saving travelling expenses and commuting time as well.

Many who work from home can now settle outside of the GTA, where home prices are more affordable. Smaller towns generally have less crime rates and offer a more relaxed lifestyle. Buyers who plan to relocate out of GTA should make a list of all the places they consider living in. It’s great to visit these towns. Look for amenities such as good schools, shopping, hospitals, and recreation centers. It’s a good time to view some homes in the area. This way, we can have a feeling about what is available within our price range. Some towns have high property taxes because of the small population. Before deciding, consider checking the property tax.

Nowadays, bidding for homes is virulent. With affordable prices, low interest rates and an abundance of buyers, bidding fever is spreading fast in the small towns.  The best approach is to engage an experienced realtor to assist. A local realtor will have more knowledge about the area and is in a better position to assist. However, do not discount a realtor in GTA if you are planning such a move. They can assist in the research and can arrange to show homes in remote areas. GTA realtors may choose to refer a buyer to a realtor in that town and in so doing, oversee the operation.

When buying an out-of-town property, before submitting an offer visit the property, check whether the seller has an inspection report. If not, make the offer subject to inspection. If the property is on well or septic, arrange for the proper inspections. Test the well water for contamination. It’s best to ask the seller for a report on when the last service was done. A quick call to the service technician is beneficial. If there are many buyers bidding for the home, then, it’s best to inspect the property before submitting an offer. With multiple offers, sellers tend to choose offers that are unconditional. These are called firm offers and are not subject to the buyer obtaining financing or conducting an inspection. As such, before submitting an offer, procure a pre-qualification for the mortgage. To be ahead of the competition, offer the seller a good price with a strong deposit. Usually, a deposit of around 5% of the purchase price is recommended.

For newly built homes, research the builder. Choose upgrades that are difficult to do later, such as large basement windows, separate entrance to the basement, high ceilings and hardwood stairs. Make your purchase subject to your lawyer’s approval and watch out for hidden fees. For freehold properties, ask for a copy of the survey. It’s like the map for the land. Properties with maintenance fees are either condominiums or parcel of tied land (POTL). When purchasing these, ask for the status certificate. A status certificate will give an idea of the financial health of the corporation and the bylaws.

Before buying out of town, weigh your options. I recall one family who sold their home in GTA, moved out of town and in a few years, sold their out-of-town home and relocated back to GTA because their children would be attending university in GTA.

Seniors, how can you enjoy an affluent lifestyle? Lilly sold her GTA home for one million dollars and bought a newly built bungalow in Tillsonberg for four hundred and fifty thousand dollars. Lilly is a senior citizen who lived on a shoestring budget. Lilly said that this move allows her to live an affluent lifestyle. “In GTA, I had hot dogs for dinner but now, I have steaks.” Said Lilly. The price disparity between GTA and out-of-town properties is a good reason to relocate.

Out-of-town properties are great for investment as well. If you are planning on buying a rental property in a small town, look at the major source of employment. Places like Barrie, Windsor and Niagara Falls are excellent cities to invest in.