Fixtures are things that are affixed and are assumed to come with the property upon closing. It’s something like a lampshade or dining room chairs. Read our article on becoming a landlord in Ontario Chattels (and fixtures)Ī chattel is something that you can easily remove. Lower prices mean a better opportunity for cashflowing property. This increase is beneficial to potential landlords as it means lower prices. Recently, there has a been a large number of Guelph houses for sale. The higher it costs to own a property, the more rent to you need to charge. In Guelph and most of Southern Ontario, it is becoming increasingly difficult to be cashflow positive. If the rent was $2500 and the costs to own the property are $2700, you are “cashflow negative” $200 per month. If a tenant gives you $2500 per month and the bills cost $2300, you are “cashflow positive” $200 per month. “Cashflow” refers to the amount of money left over once a tenant provides you with monthly rent and you have paid all the bills associated with the property. This is one of those real estate terms that are especially important for investors. There are some rules of engagement if you plan to submit a bully offer. What is a bully offer? In the above scenario of holding offers, a very aggressive buyer may submit an offer in advance of the offer date, effectively trying to “bully” their way to buy the house. Generally, the higher the assessed value of your home, the greater property taxes you will pay. The assessed value has no impact on your purchase price or ability to get a mortgage, it’s used for property tax purposes. Note that “assessed value” and “appraised value” are two different things. In this case, it’s likely that MPAC will be reviewing your taxes and likely increase them. In a housing market like Guelph, where prices are rapidly increasing, the assessed value can sometimes be 50% less than the value of the purchase price. They makes that determination in order to figure out how much property tax the owner should pay. This is how much a home is worth according to a public tax assessor. Potential buyers need to do their own due diligence Assessed value This could be something that perhaps the current owner has never used (like central vacuum for example). This could also be found on properties that are being sold as Power of Sale.Ĭertain items in a home could also be “as is”, which means that the seller makes no guarantee that the item works. Therefore, they’re not making any guarantees. This is because the owner has passed away and the executors of the will have no idea about the state of anything in the home. If a home is for sale as part of an estate sale, for example, it will likely be for sale as is to the potential buyer. Property marketed in “as is” condition usually indicates that the seller is unwilling to guarantee the condition, age or status of some or all items in the house. Most commonly in Ontario the amortization period is 25 or 30 years, although you can find some shorter and longer terms. Sometimes it may seem like a better deal, but the longer your amortization the more interest you’ll pay. If you’re taking a long amort to get the best mortgage rate, do your math.

This is the length of time it will take to pay off the mortgage assuming you maintain the terms of the mortgage. You’ll often hear your mortgage broker or bank talk about the amortization period, or shortened to “amort”. This allows you to build more equity in the home early on. These are in alphabetical order for easy reference! AmortizationĪmortization is the process of combining both interest and principal in payments, rather than simply paying off interest at the start. Since there are many terms here, most of these terms can be clicked on that will take you to a specific blog on that topic. So, we’ve put together a list of common real estate terms used during purchasing and selling of a house. Like many industries, real estate has some of it’s own lingo that not everyone uses or understands.Īs a buyer or seller in this marketing, it’s useful to have an understanding of the common terms used. Looking for the most common real estate terms for todays market? Purchasing or selling a house can be a very stressful and confusing process, the terminology shouldn’t be.

Real estate lingo listing