• Mohit Garg - 416-878-0749

With COVID 19 growing rapidly in our world, here is the common investors questions?

Mortgage Deferral and How it is helping you

At this point every bank has developed their own policy and their own restrictions on qualifications. One thing I can tell you, this is NOT a free money. You absolutely PAY for it and you will pay for it in compound interest. This is ONLY good for the ones that they need the help as their last resort and it is the choice between delinquency/bankruptcy or using the help banks are offering. Make sure you ask the following before you proceed:

1. How is the deferral calculated?

2. How is it being paid back?

3. Does it change your maturity of your mortgage?

4. Does it change your monthly payment after this 6 months is over and by how much?

5. Does it apply for investment property and is it calculated differently? And if so, how

I have attached the phone numbers for all major banks to contact. Allow yourself 2-3 hours to be on the phone to get through! After all, we are all home so you might as well listen to the music:)

2.Is this a good time to SELL?

As I always said, the best time to sell it all depends on you and your financial strength. None of us at best, have a crystal ball, let alone during such unprecedented times. In order for you to know if it is the best time to sell, depends on the answers to these questions:

1. Have you bought and haven't sold and need the fund to close the purchase?

2. Is this an estate sale?

3. Is this a case of divorce/loss of job/transfer of job to another location?

4. Have you managed to secure a retirement home and if you don't sell you lose your spot?

5. Will you have a difficulty with your payments to carry if this virus more than couple of weeks?

6. Are you retiring and every dollar coming out is important and you don't have time for our market to recoup?

If you answer to any of the questions above is "yes" then you SHOULD sell. Otherwise you should hang on for now and wait and see. Even though Real Estate is one of the essential services during this tough times, but it should be limited to urgent cases ONLY for the safety of you and the rest of us.

What should you expect when selling during COVID 19?

As you know we do have many limitations to market your property. Luckily since I and my team always worked with foreign investors, we are well equipped to market your property digitally and through Virtual showings and open houses. However our physical showings for the properties have dropped from last week to this week by 54% and the number offers have dropped by 49%. That does not mean our prices have dropped and certainly that does not mean our prices will hold as the demand drops.

If you are living in the property we are selling, we will train you to help us with showings on video as we do not want to take the risk of having people coming to your home. If your place is tenanted, your tenant may very well refuse all showings rightfully.

All our appraisals are happening off sites so we do not allow any appraiser inside any property. If needed we get our clients to zoom video chat us to accommodate the viewings.

So in short, it won't be impossible to sell your home but it will certainly would be in not our traditional way.

Would anyone BUY a property without seeing?

The answer is absolutely YES. We have been selling properties for years unseen to our out of Province and Out of Country clients. So we are pretty comfortable on selling site unseen.This is good time to invest in pre-constructions.

Is this a good time to BUY?

You should certainly get into the market, if you are NOT a high ratio buyer, meaning you have a good down payment. As with any shift in the market, unfortunately there are buyers and sellers that will get stuck in the crack of the market. We have created an investor list to help our Sellers that are struggling with their properties and absolutely NEED to sell. Due to the urgency of the sale and less ability to showcase the listings at the current time, that will be reflected on the price offered. If you are an investor or a seller who is looking to be added to our list, feel free to email me and we could definitely have a virtual coffee time to see how best we could help you!

What should you expect when purchasing during COVID 19 period?

If you are buying during COVID 19 period, you need to lower your expectation in terms of the showings. Many properties will have restrictions or no showing during COVID 19 time frame. We can certainly help you to get as much protection on your purchase when you do so. It is good time to buy pre-construction which comes with Tarion Warranty.

I booked a new Condo a month ago and now I lost my Job, Can I cancel the Deal?

Generally all pre-construction deals have 10 days of cooling period and after that they go firm.In this situation I advise you to take help of your lawyer. Lawyers can request some of payments to be pushed in the future. Rest all depends of the terms of the Agreement of Purchase.

Does it affect you if you are buying and selling at the same time in our current market?

Absolutely NOT! If you are selling low and buying low, or selling high and buying high, selling in the hot market and buying in the hot market or selling in the low market and buying in the low market, the state of the market does not affect you one way or the other. The only upside is, if you are selling an inferior property and buying a superior property, in our current market, you are actually putting more money back in your pocket by upsizing. Call me to walk you through the process and the logic behind it.

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