It’s Your Property, But Have A Plan
Recently, a financial expert posed a question online about a couple who sought his advice. They were considering renting out their condo and moving to a rental of their own as a way to help expedite the payments against their mortgage (the rent they would be paying was apparently less than their current monthly mortgage payment). The discussion board was abuzz in a matter of seconds. What the couple was overlooking was the fact that their mortgage payment includes both interest and principal. While the principal portion is a cash expenditure, it is not an expense per se, so they really aren’t comparing apples with apples. In addition, insurance is typically higher on secondary properties – especially ones you plan on renting out. Their lender might have something to say about this arrangement as well, since secondary properties often require a lower debt to equity ratio. Another consideration is any added expense they might incur once the Tenants move out. I am generalizing here, but most rentals I have seen are subject to more wear and tear than a property that has been owner occupied. And they definitely shouldn’t ignore some of the issues attached to screening, securing and managing a tenant – also known as Landlord/Tenant relations. This can not only be time consuming, but costly if the property remains vacant for a month or so while you are in between Tenants because the last one didn’t quite work out. These were my comments, but there were some from other readers – many of whom were not nearly as diplomatic toward the couple who were trying to forge a clever path toward early retirement. I tip my hat to them for seeking guidance first. Which is really the moral of this story: Property Owners have plenty of options, but it’s important to have a well thought out plan – incorporating feedback from outside experts - before any decisions are made.
Good News: A Leap Toward Luxury
I’m writing to share some great news with you. I was recently granted Coldwell Banker’s distinguished designation of “Certified Luxury Property Specialist”. This is part of our proprietary program called Previews International – dedicated to servicing the international luxury real estate market. This formalizes my commitment to addressing this segment of the marketplace – not only here in Toronto, but on a global scale as well.
If you or someone you know would like more information on this program, how I employ it, as well as what properties qualify, ask me for more information.
Meanwhile, feel free to peruse our site: www.ColdwellBankerPreviews.com.
Tales From The Trenches: Welcome. Please Don’t Sit Here.
No matter how many properties I tour, I never really know what to expect. I recall touring a house that was beautifully staged and, clearly, a lot of attention had been paid to the details. The master bedroom showed nicely but, as we walked toward the bed, my clients noticed a little place card that read “PLEASE DON’T SIT ON THE BED”. Everything about the house seemed so warm and welcoming, so my clients were rather taken back by this little advisory. Upon closer inspection, we noticed a lump in the center of the bed. It turned out to be the family cat who obviously liked to nap right under the covers. Good thing her owners were so focussed on the details!
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