Napoleon Hill - Yesterday and Today

One of my Business Heroes is Napoleon Hill whose writings have challenged and informed me through the years.

This week a colleague of mine reminded me of Napoleon Hill’s comments on positive thinking and I wanted to share them with you – he wrote:

WHEN YOU CLOSE THE DOOR OF YOUR MIND TO NEGATIVE THOUGHTS, THE DOOR OF OPPORTUNITY OPENS TO YOU

It is the nature of opportunity that it simply refuses to attach itself to negative thinkers. Negative minds cannot conceive exciting new business opportunities, invent innovative new products, solve problems, or create beautiful music or works of art.

All these activities require a positive belief in yourself and your abilities. When you approach every challenge with a Positive Mental Attitude, you will always discover opportunities that others have overlooked.

Relish your achievements and recall them when the going gets tough. Take comfort in the knowledge that you have succeeded in the past and you can do it again.

Changes to the Rules for Government Insured Mortgages

Changes to the Rules for Government Insured Mortgages

 In the face of the International Monetary Fund’s comments that the Number 1 risk to the Canadian economy is household debt, Finance Minister Jin Flaherty has announced on January 17^th, three new mortgage regulations:

• Mortgage amortization periods will be reduced from 35 years to 30 years.
• The maximum amount that can be borrowed when refinancing a home will be lowered from 90% to 85%.
• The government will withdraw its insurance backing on lines of credit secured by homes.

The changes in amortization and refinancing will go into effect on March 18, 2011 while the change to home equity lines of credit will go into effect on April 18, 2011.

The first change is likely to have the greatest impact. Buyers who purchase a home with less than 20% of the value of the home are required to purchase government-backed mortgage insurance through Canadian Mortgage and Housing Corporation (CMHC).

This change will help reduce total borrowing costs for consumers, helping them to build equity more quickly. As an example:

A $300,000 mortgage with a 4.5% interest rate and an amortization of 35 years would have a monthly payment of $1,412.05 and a total interest cost of $293,059 of the life of the mortgage. The same mortgage with a 30 year amortization has a monthly payment of $1,512.65 but the total interest cost reduces to $244,551.49 a reduction of roughly $100.00 per month for a total of over $50,000 over the life of the mortgage.

Minister Flaherty called the changes “moderate” and it is of interest to note that they did not include two other proposals which could have had a significant impact on the real estate market. They did not include an increase in the minimum 5% down currently required for a home purchase and maintains the standard that only 50% of monthly condominium fees be included in the list of expenses that are measured against income when financial firms consider a mortgage candidate’s application.

When planning your home purchase, one of the first things you should do is to ensure that your mortgage financing arrangements are in place. Meet with your bank’s mortgage finance specialist or mortgage broker to secure a pre-approval and the peace of mind that when you find your dream home, your goal of ownership is achievable.    

Full Service Real Estate is Here to Stay...Here's Why!

A recent article in Canadian Business Magazine said this, "Travel Agents and Stockbrokers are nearly obsolete thanks to the Internet . . . are Real Estate Agents next?" The article was daunting and might have some believing that REALTORs® are going the way of the dodo bird but here is what I know:

Buying and selling a home is nothing like buying or selling stocks or booking a holiday. Our home, 99% of the time, is our most valuable asset. It is where we live, raise our family, become friends with our neighbours, build a community, and create some of our most cherished memories.

If you are going to sell your most valuable asset, it makes logical sense that you would want to hire a highly qualified real estate professional who can:

·    Provide expert advice to maximise your home’s equity through proper pricing models, home staging concepts, and marketing strategies that create demand, increase showings, and expose your home to the largest number of qualified buyers.

·    Negotiate every detail on your behalf, in your best interest, to net the most money from the sale.

·    Qualify potential buyers before they come through your home and ensure that the buyers are escorted by a licensed real estate professional vs answering a call from a deal-seeking buyer calling a private For-Sale-by-Owner and then allowing a complete  stranger into your home.

• Handle all the details and provide professional advice right up until closing
• Create peace of mind.

But talk is cheap and so my advice to you is to ask some very direct questions and expect some detailed answers. The following Five Questions should be on your “must ask” list:

• What is your Marketing Plan for our home?
• How often will our home be advertised and in which publications will the advertising be found?
• May we see examples of recent advertising and in-home Feature Sheets?
• Other than mounting our listing on MLS, Corporate, and my Personal Web Site, what is your Web Strategy for our home?
• Will there be a written Marketing Plan and accountability to its implementation?