Real Estate Talk:
A wonderful purchase

A home is a sanctuary and being able to find the one that fits your needs is paramount

By Joseph Marovitch

July 13, 2023

Approximately a year ago, a client of mine purchased a ranch in a suburb outside Montreal, in a beautiful countryside with green mountains, running rivers, and large fields for grazing and riding horses.

Prior to the purchase, these clients were, and are, friends of mine who lived in a rented 2-bedroom lower duplex in the city. For years they discussed moving to the country, living on a ranch, raising horses, and riding them. This was a dream that persisted over 10 years or more. To my clients, and to be honest, myself, the city is confining and can be suffocating. They needed breathing room, fresh air, and an incentive to enjoy life each day.

Both of my clients are self-starters and entrepreneurs, that run their own successful business in Montreal. Yet they were prepared to live in the countryside and commute to the city if they could live the dream of freedom. So the search began two years ago until finally a property was found with several acres of land, a sturdy, beautiful and bright home, a ranch that can house up to seven horses, and a workspace with massive storage.

The private driveway up to the ranch is over 300 feet, with large fields on three sides and a forested area in the rear that leads to a scenic river. The night sky is so vast that thousands of stars can be seen. In the morning they can sit on their front balcony and enjoy the sunrise and view. They can breathe. They also acquired a beautiful dog with an amazing personality.

A home is a sanctuary and being able to find the one that fits your needs is paramount. If you are a couple, it must meet both your needs and desires. Choosing a home must never be a one-sided compromise or it can end up in disaster. My friends found their sanctuary and have never looked so content! I wish them all the happiness in the world.

Next article: Why adhered to the terms and deadline in an offer

State of the market

Bank Of Canada rate: 5%
Canada Inflation rate: 3.5%

The Bank of Canada has done it again! On July 12, 2023, the Fed raised the rate another .25 basis points to a rate of 5%. This means the main 5-tier banks will increase their rates proportionately. The average 5-year closed fixed rate will rise from 7% and short-term mortgages will rise further as well.

The Fed is still attempting to reduce the inflation rate to 2% but our economy is too strong and demand for goods and services is too high. Probably due to pent-up demand from the pandemic years. The best we can hope for is 3% to 3.5% average inflation. However, further interest rate hikes can nudge us toward a recession and reduced property values in the short term.

If purchasing, I suggest contacting a private mortgage specialist who can find the best interest rates possible. One company I deal with and did an exceptional job for a client of mine is Group Orbis based in Montreal. They will find the best rate possible, usually far below the five-tier bank mortgage rates.

Should you have questions or comments please feel free to contact me via westmountmag.ca or look me up on LinkedIn. As well, to view past articles, click here.

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Images: Michael Lieberman

Other articles by Joseph Marovitch