For Residential Real Estate
When you think you might be in the market for a new home, look for a REALTOR who is the right fit in terms of personality and experience in representing you as your Buyer Agent.
Look for someone who is thorough—there is lots that can go wrong in these transactions.
A Buyer Agent will have access to the backend systems of MLS.ca (called MLX) and can help you find the right home in the right area at the right price. He or she will do a CMA (Comparative Market Analysis) for you so you know what comparable homes are selling for in the immediate area.
By narrowing done the choices, you will save a lot of time and aggravation.
Your Buyer Rep does lots of these deals so he or she can help with: a buy low/sell high strategy, arranging for a building inspection and building inspector, selecting a mortgage broker, determining your closing costs (like legals and LTT, Land Transfer Tax) and help in the negotiations as well as the legal agreements that go along with these negotiations and completion of the transaction.
I recommend that your principal residence is put in the name of the spouse or partner who runs the lowest risk of being sued assuming you are in a long term relationship. It is a bit of a creditor proofing strategy for you and your family. If you are not sure, put it in your own name or in joint names.
Your principal residence should be in your own name(s) because, in Canada, the capital gains from the sale of your principal residence is tax free.
Any business or any other real estate you may buy should probably be in a personal holding company. This has some tax advantages as well as income splitting possibilities and represents the possibility of diversifying your portfolio.
To learn more about creditor proofing, see: http://www.dramatispersonae.org/CreditorProofing.htm.
One final note, although your Buyer Agent represents you, he or she almost always gets paid by the Seller so it costs you nothing to have a professional REALTOR represent you in most cases. If you think you can negotiate on your own, remember the Seller’s agent may not be representing you and that agent will get the entire commission so you haven’t saved any money or time and you may have deprived yourself of representation. Plus REALTORS are insured, so if anything goes wrong, you may have something to fall back on. Litigation is a very expensive alternative.
Prof Bruce
Ps. The reason I am so strongly in favour of using mortgage brokers is explained elsewhere on my blog. See: http://www.eqjournalblog.com/?p=34.
Pps. Get yourself a good real estate lawyer. One who provides value for service and cares about you as a client.
Ppps. Here is why I think real estate investing can be a good idea: http://www.ottawarealestatenews.ca/WhyInvestInRealEstate.html. And here is why home ownership has been a boon to the economy and the sub prime mess is blamed on the wrong people: home buyers (http://www.eqjournalblog.com/?p=169).