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Everything You Need to Know About Townhouses - 2% Realty Calgary Airdrie - Morris Tkachuk - Realtor Services - Featured Image

Everything You Need to Know About Townhouses

What is a Townhouse?

A townhouse is a multi-floor home that shares walls with other units. They may exist in small or long rows depending on the age of the community and city. They often include less outdoor space and conform to a consistent appearance. 

Pros of Townhomes

Less maintenance

Townhomes are often part of larger structures, so there is less maintenance to be done overall. This includes not having to deal with outdoor spaces as frequently. Many townhouse projects will also have property maintenance services, meaning things like snow shovelling and weeding are taken care of for the homeowner.

Equivalent space

You don’t lose much indoor space with a townhouse. The square footage is roughly equivalent between a unit and a single-family home, but without the extra cost of more land. This can be a great way to save money without sacrificing much in the way of space.

Lower costs

Speaking of equivalent space, townhomes are also a great way to reduce costs for relatively minor sacrifices, like the loss of extra land. This also extends to maintenance costs, which for shared items, like roofs or siding, are typically spread across all homeowners in a townhouse development. 

Cons of Townhomes

Amenity fees

Townhomes often offer extra amenities to incentivize buyers. This includes pools, workout areas, communal space and more. While these should be considered as a perk when looking for townhouses, if they do not appeal to you, then it is likely you will be disappointed when you have to pay for them.

Vertical space considerations

Townhouses are not built for everyone. Seniors living in townhomes will likely struggle with the vertical space, which demands a fair amount of ascending and descending staircases. Vertical space also means that you will have to consider the layout and storage of the home, so that you aren’t traversing multiple floors to fetch linens or other regular concerns. 

Semi-apartment living

While townhomes absolutely remove the burden of having people above and below, you will still have at least one neighbour separated by a wall. This means noise and personal space complaints may still be a concern, and the mileage of privacy can vary considerably. 

Shop for Townhomes with Confidence

There are many more advantages to townhomes that we have not covered in this article. They are a great way to build equity and establish yourself as a property owner. But, finding the right townhouse for your needs is no simple operation. It involves an intimate knowledge of the market you are planning to purchase in, a keen eye for a good deal and experience with other townhouse sales.

Basically, it requires the help of a professional and qualified real estate agent, like those you can find at 2% Realty. With a wide selection of townhouses to choose from and many years of experience in Airdrie property, it just makes sense to call these friendly experts today.

Why More Generations Are Living Under One Roof in 2021 - 2% Realty Airdrie and Calgary - Realtor Services - Featured Images

Why More Generations Are Living Under One Roof in 2021

In 2021, we are already seeing the pressure relief valve loosening. Pent-up demand for housing, entertainment and social activities is slowly seeping out in the form of reduced restrictions, wide-scale vaccine rollouts and increasing economic activity. It is clear that we are moving forward from the events of 2020.

Still, while many of our favourite things will come back largely unchanged, our housing will never be the same. Many families are choosing to stay together in their homes or selling multiple properties to accommodate a multigenerational lifestyle. Some of the reasons for this change include: 

Caring for an Ageing Relative

For many multigenerational homes, the key driver of the decision is the oldest member of the family. Not only are more families choosing to move in together under one roof to save money, but many are also rekindling their relationships. The reduced costs of sharing a home, as opposed to senior living care, can be substantial. 

Consolidating/Leveraging Wealth

In 2021, many consumers are coming to realize that their personal finances are just not enough to purchase their own homes. As a result, multigenerational homes are growing in appeal for those who are still looking to own property to grow their family’s wealth. Many families are pooling their savings together to purchase either their first property or improve their chances of larger lines of credit for more valuable property acquisitions. 

Pandemic-Related Factors

As we’ve seen throughout the last year, the ongoing pandemic has sent shockwaves through traditional and emerging markets alike. Some of the most profound changes have occurred in the real estate industry, as children have had to return home after facing job loss. But, it isn’t only our children who are facing these tough decisions. 

The pandemic has also caused many to reevaluate how they think of work. For many, remote work is no longer a distant goal, but rather a daily reality. Many families have felt the squeeze as they spend more time together and think about how nice it would be to have just a bit more room away from their loved ones. This is causing families to reconsider what needs their housing must satisfy. 

Conclusion

While the factors presented above are all good indications of future trends, the real estate market does have room for every kind of homeowner. So whether you are looking for a bigger place for the whole family or a couple looking to grow, make sure you visit 2% Realty for professional advice and friendly service.

The Importance of Home Equity - 2% Realty Airdrie and Calgary - Realtor Services - Featured Image

The Importance of Home Equity

Although our world may seem to be in a new state of flux, many of the same pieces of timeless advice still apply. For instance, taking each day one at a time. Another timeless nugget of wisdom is to invest in property as a way to grow your net worth. Through the process of growing your equity, you can leverage your wealth, save more money and provide a better life for your family.

But what exactly is equity? Is it still relevant in discussions about the real estate market? What can you do to have the maximum impact on your equity? The answers to these questions and more are waiting below.

What is Home Equity?

Home equity is the difference between the amount you owe on your house (your mortgage) and the amount you have already paid. Basically, it is the amount of money you have actually put towards the purchase of your property. Therefore, your equity increases the longer you own your home and allocate funds towards your mortgage.

Can You Gain Equity while Renting?

Due to the nature of equity, you cannot accrue it while renting. Many people who support renting believe that the loss of equity is made up for with the lack of maintenance costs and property taxes. While this idea has been gaining traction in recent years, it may not be as valid as once thought. 

How Equity Provides Greater Value than Renting

There are two flaws with the idea that renting can actually save you more money in the long run. The first flaw is fairly straightforward and supposes that paying money exclusively to a mortgage is really like paying money to your future self. Unlike paying rent to a property owner or landlord (where the money goes to someone else’s mortgage) with your own property, the money is entirely your own. 

The second flaw in the logic is the direct comparison of net worth. In this First American article discussing the matter, renters show lower net worth in every wealth category except $127,000-$192,000. It is also interesting to note that the conclusion of this article states “…the most recent data reinforces that housing is one of the biggest positive drivers of wealth creation.”

So, what does all this mean for the importance of house equity? It means that house equity is still one of the best ways to increase your personal net worth, even as conventional wisdom begins to shift. Still, it is just as important to have the right professionals on your team when it comes to making a savvy realty purchase. 

When you work with 2% Realty, you get access to exclusive listing sites, great service, low commission rates, and, of course, a savvy real estate agent. With just 2% of the sale price going to the real estate agents involved, they are the perfect option for both buyers and sellers. If you’re ready to start building your equity and saving for your future, make them your first call.

The Do’s and Don'ts of Applying for a Mortgage - 2% Realty Airdrie and Calgary - Realtor Services - Featured Image

The Do’s and Don’ts of Applying for a Mortgage

Our do’s and don’ts fall into three categories: personal finances, professional help and important decisions. 

Personal Finances

Do: Organize and Prioritize Your Finances

With any large purchase, like buying or selling a home, there is a lot of scrutinies involved. This comes from lenders, real estate agents and even employers in some cases. But, more on that later. For now, we must focus on the person with the biggest stake in the game and the best reasons to pay attention, namely you.

Income/Expenses

Start by tracking your finances. Use budgeting wherever possible to understand exactly where your money goes. This includes keeping fantastic records, but it also means keeping key documents close at hand, like: 

  • T4s
  • Tax returns
  • W-2s
  • Income information
  • Receipts for large purchases

This is also the time to ask for a raise or put in overtime and develop a stringent savings plan. The more money you can put towards the down payment, the more you will be approved for and the smoother the whole process will run. 

Credit

Keep your credit in check. Make sure you get a credit report and find ways to raise your score. It’s important to make a plan and stick to it, as lenders want to see healthy and regular activity. This can mean paying down debt, but it should also mean flagging any suspicious transactions in the last six months. 

Don’t: Fiddle With Your Finances

Before applying for a mortgage is not the time to mess with your finances. Banks love consistency, and will traditionally ask for three to six months of account statements. So be sure to keep large purchases, credit card cancels and account changes for either before or after the mortgage application process is complete. 

Professional Help

Do: Maintain Professional Relations

It’s important to maintain professional relations with both lenders and real estate agents during the mortgage application process. These professional services make it easier to understand the home buying process by offering current information and support. 

Lenders

Communication is essential throughout the homebuying process. This means listening to sound advice from financial professionals, but it also means keeping a keen ear out for places where you need more information. Now, let’s discuss pre-approvals. 

Pre-approvals are a lender’s way of telling you how much they will lend you before actually making a purchase. You will want one before going house shopping. Make sure you find the right mortgage broker to represent you by looking for someone you feel comfortable with asking questions. 

Realtors

While you will have to wait for the pre-approval to go through before contacting us, 2% Realty will be on your side when it comes to finding the perfect home for your needs. Using a real estate agent gives you exclusive access to different home listings and also helps simplify the homebuying process. Learn more on our website. 

Don’t: Go it Alone

Don’t forget that your understanding of the process is the most important aspect. But that doesn’t mean you need to isolate yourself. Take it one day at a time and don’t overwhelm yourself with too much information at once.  Seek the advice of friends and family wherever possible and rely on experts who you can trust. Along with that trust also comes responsibility, however. 

Lenders

Don’t be slow to respond to your mortgage team. Some decisions must be made quickly, so your availability can be a critical part of the equation. You should also err on the side of too much when it comes to offering information to your lender. This is just part of the reason good record-keeping is essential. Only ask for an amount you can afford, and keep your expectations realistic.

Realtors

Start looking for your realtor early. You want them to be looking for your dream home for as long as possible to get the best deal on the market, and you can get some of the initial legwork out of the way. 

Important Decisions

Do: Keep a Routine

Did you know that lenders usually ask mortgage applicants for a job history that includes the previous two years (24 months) of work? This means that your employment history should be consistent and look stable for the majority of that period. Continue making rent or mortgage payments on time as well.

Don’t: Make Major Lifestyle Changes

As you might expect, the stability of your finances, employment and lifestyle mean that you will have to live a moderate lifestyle leading up to your property purchase. This means you shouldn’t change your job, invest in an expensive new hobby or get a divorce in the immediate period before applying for a mortgage.

Rightsizing, Downsizing, Upsizing: What's Right for Your Family? - 2% Realty Calgary Airdrie - Morris Tkachuk - Calgary Realty - Featured Image

Rightsizing, Downsizing, Upsizing: What’s Right for Your Family?

In an industry inundated with unique and special terms, even realtors sometimes need help understanding the new vocabulary of real estate. So, what do all these new terms actually mean?

Downsizing

Downsizing refers to moving into a smaller space. For mature families that see kids going off to college and couples looking to adopt a more modest lifestyle, downsizing is a great way to distill the best parts of your current home into a more concentrated version of coziness and comfort.

Upsizing

Upsizing is the opposite of downsizing, meaning that you would be looking for a larger house. Think of a young couple trying to start a family and you will have a pretty good idea of who upsizing could apply to, but anyone looking to declutter a cramped living space should consider it. Upsizing gives breathing room for your activities, hobbies and busy lifestyle. 

Rightsizing

As you might already expect, rightsizing is the middle ground of upsizing and downsizing. This method relies on finding the perfect space for your needs, whatever those may be. It often involves thinking about the future to plan accordingly and usually offers flexible space that can change with your wants and needs.

What’s Right for Your Family?

Most often, people choose one of these options based on external factors. These include the demands of a growing family, changing needs for a home office or outdoor living space, career changes, adopting pets and many other options. So, most will find that life pushes them towards one decision or another. Most often, this looks like rightsizing.

Still, if you are in the mood to put your house up for sale and try something new, but aren’t too sure what’s next, consider assessing your living space. Ask yourself questions like:

  • Do I have to rearrange my whole room just to add something new?
  • Are there unused rooms full of untouched belongings or standing totally bare?
  • Will this space suit me in the future?

Other questions along these lines can help you narrow down what you actually expect from your home. If you find that you have a lot of unused space, perhaps downsizing would be better. Conversely, if everywhere you look there is an abundance of stuff, a larger space might be in order. 

Make the Decision Easy with 2% Realty

Whatever factors make up your decision on what you want for your next home, you will likely be rightsizing to some degree. After all, just considering your needs means that you are looking for a space to accommodate your unique and wonderful lifestyle. But, finding the right home can be tough especially with so many factors to consider. Let the friendly and knowledgeable staff over at 2% Realty give you a hand at a great commission rate. Call today!

Why Right Now Might Be the Perfect Time to Sell Your House - 2% Realty Calgary Airdrie – Morris Tkachuk - Real Estate in Calgary - Featured Image

Why Right Now Might Be the Perfect Time to Sell Your House

While most people can agree that 2020 was a pretty topsy-turvy year all around, it’s also true that the effects are not quite over. Unfortunately, the turning of a calendar year does very little to change global problems. But, one serious upside of the situation is that we are more resilient as a global community.

Indeed, from citizens banding together to support local businesses to countries sharing their vaccines with countries of lower socioeconomic status, our bonds have never been stronger. Even as individuals, many of us have grown to understand and accept our role as a part of a country, and learned to continue our lives in spite of challenges and adversity. 

More than ever, people are realizing that they have the choice to interact with society in their own way. For some, this means selling their property and moving somewhere new. For others, it might mean consolidating the family into a single home or taking advantage of some of the main reasons now is a great time to sell your home, such as:

Bank of Canada’s Lower Interest Rate

With a historically low interest rate (0.25%), the Bank of Canada is attempting to do more than encourage homebuyers to spend. They are stimulating the economy by making it easier for investors to take risks without fearing harsh penalties or high-interest rates. As a result, we are seeing renewed interest from many demographics, including first-time homebuyers and seasoned investors. 

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With Low Mortgage Rates, Now is the Perfect Time to Buy - 2% Realty Calgary Airdrie – Morris Tkachuk - Real Estate Services - Featured Image

With Low Mortgage Rates, Now is the Perfect Time to Buy

If you’ve been debating your first home purchase or playing around with the idea of adding another property to your portfolio, now could not be a better time. With the Bank of Canada boasting historically low-interest rates that show little sign of fluctuation, the opportunity is beckoning. 

What Rates Are Affected?

When we talk about low mortgage rates, we are referring to the power the Bank of Canada possesses to affect policy interest rates.  

Why Does the Bank of Canada Affect This?

It does seem controversial, at first glance, for the Bank of Canada to have so much power over the other banks in Canada and their mortgage products. However, the mechanism at play here offers consumer protection that prevents adverse effects on the inflation rate. 

When the economy is doing well and our country is prosperous, the Bank of Canada raises policy interest rates. This discourages excessive spending and keeps our citizenry moderate. When the economy is suffering a depression or influenced by global affairs (pandemics, trade tensions, etc.), the interest rate is lowered. Lowering the interest rate encourages people to spend, sometimes in spite of rising prices, and offers a solution for shy or cautious investors. 

Just How Low Are Policy Interest Rates?

Understanding the mechanism behind the changes helps us have a better context for the decision, but is anything really different? Obviously, the Bank of Canada adjusts this rate to match our current economic situation, so it must change all the time right? Well, yes and no. 

Yes, the rate will change as new factors and conditions affect our markets. However, right now we are in the midst of historically low rates. Just how low are they? Right now the policy interest rate is set at just 0.25%.

Why Now Is the Perfect Time to Buy

Of course, as homebuyers, we will not only pay this incredibly low rate. Our financial institutions are still beholden to their employees, investors and the free market, so they apply their own rates on top of the policy set by the Bank of Canada. However, this rate is so low that we are seeing fixed rates actually exceed variable rates, a notoriously rare circumstance. 

So, what do all these changes mean for mortgage holders or soon-to-be homebuyers? It means that you have access to some of the greatest selections in the real estate market, at some of the lowest historical prices. Still, this great opportunity cannot last forever. As global conditions change or improve, we are certainly going to see changes coming from our financial regulators. Therefore, don’t delay in calling 2% Realty for a free consultation today!

Why Owning a Home is More Affordable than Renting One - 2% Realty Calgary Airdrie – Morris Tkachuk - Real Estate in Calgary - Featured Image

Why Owning a Home is More Affordable than Renting One

In recent years, changes to the real estate market, including our understanding of the greater systems, have caused some people to shy away from home buying. Those who were confident in the past might be uncomfortable with a new purchase if they cannot afford the payments or get a loan from their financial institution. 

As a result, more and more people are saying that renting might be the more affordable option, especially in a lower-paying “gig” economy. However, these claims may not be as concrete as they lead you to believe, for there are still many benefits of buying over renting a home, including: 

Equity

Easily the strongest contender in the buying vs. renting debate, you gain no financial equity from renting. In fact, you gain few long-term benefits from renting when it comes to your financial situation. While you may pay less each month for a rental property, you sacrifice the development of financial stability.

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Perks of Buying a Home in Airdrie - 2% Realty - Full Real Estate Services - Featured Image

Perks of Buying a Home in Airdrie

As a growing community, Airdrie continues to attract homebuyers for its unique neighbourhoods, small-town feel and access to modern amenities. But these are just the tip of the iceberg when it comes to the many perks of buying a home in Airdrie. Some of the other bonuses include:

The Neighbourhood

At this moment, Airdrie is just the right size. Depending on which direction you walk, you can make it from one side to the other in the span of a day. This means that you have access to all the neighbourhoods in town, making the whole place feel like one big community. 

The Amenities

As a result of this singular community feel, the amenities of Airdrie provide everything you need from groceries to hobby shops to your new favourite restaurant. From the big box stores off Veterans Boulevard to the tight-knit main street, a new business or grocery run is always right around the corner.

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