The Way Canadians Can Become Homeowners - PowerPoint PPT Presentation

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The Way Canadians Can Become Homeowners

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Learn here the following: 1. Rent To Own A Condo: A Dream Or A Nightmare? 2. The Best Win-Win Option To Have A Home In Canada 3. Rent-To-Own Property: A Profitable Choice For Canadians 4. Benefits Of Hiring An Excellent Canadian Credit Management Expert For Your Business 5. Getting To Know Power Of Sale In Canada: Main Elements Regarding This Concept – PowerPoint PPT presentation

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Title: The Way Canadians Can Become Homeowners


1
The Way Canadians Can Become Homeowners
  • Rent To Own Power Of Sale Credit Management

2
Synopsis
  1. Rent To Own A Condo A Dream Or A Nightmare?
  2. The Best Win-Win Option To Have A Home In Canada
  3. Rent-To-Own Property A Profitable Choice For
    Canadians
  4. Benefits Of Hiring An Excellent Canadian Credit
    Management Expert For Your Business
  5. Getting To Know Power Of Sale In Canada Main
    Elements Regarding This Concept

3
Rent To Own A Condo A Dream Or A Nightmare?
  • The benefits of a rent-to-own condo are many.
    Firstly, regarding the maintenance of the place,
    it is not a secret to anyone that furniture
    suffer decay with the passing of years.
    Consequently, a simple change of water pipes, or
    replacing faucets can cause regular expenses to
    your pocket. Families in condos dont have to
    worry about these issues as condo managers have
    to deal with these problems. Renting a condo does
    not pose any responsibilities regarding repair,
    renovation or even maintenance of properties. In
    fact, renting to own a condo depends on the
    lifestyle of each family. For example, for
    Canadians who feel identified to the sense of
    community, the life in a condo is a good
    scenario. It has been proven that people that
    rent a condo tend to coexist much closer with the
    other similar families than when living in a
    house.
  • Regarding the condo legislation in Canada, it is
    very efficient and is not that restricting. The
    usual limitations found in these rules are the
    amount of persons per unit, the presence of pets,
    partying times, among others. These and many more
    are very explained in the Canada Mortgage and
    Housing Corporation Guide, which is found in
    every condo throughout the country.

4
The Best Win-Win Option To Have A Home In Canada
  • Its easy to see the benefits of rent-to-own
    homes for tenants. There are many people in
    Canada who cannot apply for a mortgage due to
    their insufficient income record. Taking this
    into account, people can improve their records
    during this period. By paying on time your rental
    according to what is established in the
    rent-to-own home contract, may improve your
    payment record and your chances to get a loan.
    Sometimes its impossible to achieve, in a short
    period of time, the necessary down payments to
    get a mortgage (normally between 2 or 3 of the
    total value). Rent-to-own home is a viable option
    to enjoy a home while creating the necessary
    conditions to buy one permanently.

5
The Best Win-Win Option To Have A Home In Canada
  • For Canadian landlords, there are some other
    benefits. If you are a person who has tried
    selling a house for some time without no success,
    maybe you should consider solving this problem by
    simply renting it. According to research done
    about the Canadian real estate business, the
    majority of rent-to-own home tenants end up
    buying the house. So, if you can create a
    rent-to-own contract, your chances to sell the
    property will increase. Moreover, this kind of
    tenants are more committed with the property,
    because they feel a sort of attachment to that
    place. Besides, this kind of contracts gives the
    landlord certain frequent sums of money to cover
    any damages that may be caused by tenants. Also,
    in the long run, the rent fees are an alternative
    for not completely selling the property.
  • There is also another benefit of rent-to-own
    homes which may change according to landlords and
    tenants. In the contract the purchase end price
    is agreed. After this, despite the fluctuations
    of the Canadian market, the price will remain
    unchanged.

6
Rent-To-Own Property A Profitable Choice For
Canadians
  • This option is also known as lease purchase. It
    allows tenants to buy the house they are leasing.
    In order to do that, they would pay a few more
    dollars over the normal rent payments in the
    local market. Many Canadians think this option
    involves interest rates but it actually does not.
    The only thing you pay besides your normal rent
    is an amount of money to create a fund which
    would work as down payment until the property is
    finally bought. Thats why your monthly rental
    will be a bit above market prices.
  • An essential aspect in this issue is the presence
    of a lawyer. Since this kind of contracts are
    very technical, the best thing that tenants and
    landlords can do is hire one to write the papers
    after a preview negotiation. Legal advisory is
    useful for both in order to do everything
    according to the law and to avoid further
    misunderstandings.
  • As a tenant, the most important thing for you is
    to take over control using your option fee.
    This is how the above-mentioned amount of money
    comes into play. You should always be notified
    that this money has been received by the
    landlord. To do so, you can ask him/her for bills
    to make sure. Another thing that is recommended
    by experts is trying to include your name in the
    title of the property. This is very difficult,
    but if you can get it done, it is harder to be
    affected by a breach in contract.

7
Benefits Of Hiring An Excellent Canadian Credit
Management Expert For Your Business
  • Firstly, a Canadian credit management expert is
    primordial in identifying which customers have
    high credit risk, meaning, which are less likely
    to pay you back the money. They have the power to
    cause significant limitations to your cash flow
    and ultimately make you lose money. An expert
    will check their credit potential through various
    ways like credit risk reporting which points out
    a dark past in a companys credit history and
    payment practices. A credit report doesnt mean
    that in the end you will actually get paid with
    real money, but it reduces the risk of a
    non-payment outcome.
  • Secondly, credit management services not only
    stop at credit risk studies. It goes beyond that.
    For instance, after identifying clients with a
    good credit background, there still remains an
    ongoing credit monitoring to determine if their
    credit risk balance changes. This will alert your
    business immediately so that you can take
    precaution actions to protect yourself
    financially and at the same time, guarantee your
    payments.

8
Benefits Of Hiring An Excellent Canadian Credit
Management Expert For Your Business
  • Thirdly, a credit management expert can be the
    right person to aid in drafting payments
    contracts which warranties your payment in the
    future. Clients in Canada which are not keen to
    signing them are potentially inclined to not
    paying you with actual cash. Having professional
    assistance ensures that your terms are always
    respected when dealing with clients. And if it
    gets to trial, experts can demonstrate bad faith
    in your clients behalf as well as preparing
    excellent settlement offers to make you come out
    on top.
  • Last but not least, it is normal that you dont
    know the specifics regarding credit management. A
    Canadian expert on the field can not only assist
    you but also teach you the basics to manage
    effectively your credit. Showing you the tools to
    guarantee your financial status on your own can
    make a complete difference when you cant afford
    a credit management expert indefinitely.

9
Getting To Know Power Of Sale In Canada Main
Elements Regarding This Concept
  • There are many elements which help us understand
    its functioning. When a Canadian vendor is
    selling the property under Power of Sale, he/she
    must pay out all prior encumbrances like
    mortgages or liens. However, lets bear in mind,
    that dealing with mortgages is very tricky, and
    POS is not exempt of its effect. For instance, if
    a house is sold in Canada under mortgage for the
    first time, it can employ Power of Sale by
    including the bank and fixing the situation. But
    a second mortgage of the same property loses the
    claim and right to Power of Sale.
  • Also when the property is on a mortgage, and a
    Canadian bank sells it using Power of Sale for a
    superior price than that of the mortgage, the
    remaining money goes to mortgagor/previous owner.
    This same argument goes on the opposite direction
    when, for example, the bank is unable to sell the
    property for the price of the debt. Despite
    selling using POS, the new buyers will get the
    property clean of debts but the bank can sue the
    previous owners.

10
Getting To Know Power Of Sale In Canada Main
Elements Regarding This Concept
  • Seeing this only sheds some new information about
    Power of Sale, we can also see how complicated it
    is. But dont be frightened, there are many
    benefits regarding this type of transaction in
    Canada. Firstly, its the time. When buying under
    Power of Sale, there are no court actions hence
    making it much faster and efficient to sell than
    to sue for possession and then selling, also
    known as foreclosure. Secondly, its the cost.
    Selling under POS requires the entire process to
    be done in the solicitors office, making it
    cost-effective to avoid going to court. Thirdly,
    its the clearance of encumbrances. POS makes it
    possible for you to acquire the property and
    involve the bank to solve any debts directly with
    the mortgagor.

11
The End
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