Preparing Your Home Before Winter Arrives

With the temperatures this past long weekend hovering in the low 20's, it almost seems absurd to be preparing your home for the winter, right? Not so! This is the perfect time to do the cleaning and maintenence that will help keep your heating bills down in the following months, as well as prolong the life of your home and appliances.

Here are some simple things you can do:

1. Furnance maintenence includes:
- Clean or replace filters.
- If forced air, have ducts vacuumed.
- Bleed air from water radiators, if necessary.

2. Make sure smoke alarms & carbon monoxide detectors are in working order, with new batteries.

3. Humidity levels will drop in the winter months, so you will want to be sure you have a humidifier of some sort. If you have a humidifier on your furnace, check that it is scale free: either clean it with a de-scaler or purchase a new filter.
If you are humidifying your living space with a portable unit, make sure you do some research before purchasing. The larger the humidifier, the more maintenence required, but you must also keep in mind the size of the rooms, and also the energy efficiency of the unit.

4. Give your home a really thorough cleaning, so when you seal out the cold, you aren't trapping in all the dust that has blown in with the autumn winds!

5. This is the time for a switch of wardrobe as well: wash your summer clothes before you pack them away, and place some cedar balls in your drawers, and cedar blocks in your closets to protect your knitwear from moths (and avoid the chemicals and strong odours of moth balls!)

6. Keep out the drafts!!!

Doors:
- Install a sweep along the bottoms of your doors, the rubber edge will seal out the wind.
- Apply "sticky foam" on the edges of the door trim
- As extra assurance, install weather stripping to the outside edge of the doorway.

Windows:
Replace window screens with storm windows, then prepare to keep out the drafts:
- One option is removable caulking (be sure to follow directions exactly so as not to damage the window panes or walls).
-Removable draft seal works in much the same way, and is just peeled off like tape in the spring.
- The old standard plastic (just blow-dry to apply) works also.
Heavy drapes can help keep the cold at bay...and remember not to seal *all* the windows, as some fresh air is good to let in once in awhile.

7. Check chimneys for obstructions.

8. Clear eavestroughs of debris.

9. Drain and store outdoor hoses. Close the valve and drain the exterior faucet.

Even these few simple tasks will help winterize your home: keeping you comfortable, lowering monthly bills and maintaining the value of a homeowner's most valuable asset!

Take advantage of these crisp autumn days to talk a walk through the neighbourhood, enjoy the leaves changing colours, and maybe stop into some of the many Toronto homes with an open house!

Investing in a Second Property

If you're thinking about buying a house or condo as an investment property, market conditions are definitely in your favour. While the resale housing market has seen a tremendous amount of activity from first-time buyers in the past year, it's also a perfect time for existing homeowners to invest in secondary residential properties.

With record-low interest rates and significantly lower prices it's hard to go wrong - unless, of course you lack the financial means to make the investment. After all, you have to be ready to meet all the obligations that come with owning more than your principal property. For instance, keep in mind that if you intend to rent out the second property, you'll also have to be prepared to deal with tenants and handle maintenance costs.

Leverage

Secondary home ownership is an attractive investment option because it gives you even more leverage than you have with your principal residence. Leverage is when a relatively small amount of your money controls a much larger asset - like a property.

The more leveraged you are, the greater the financial return on your down payment becomes if the value of your property increases. There are very few other investments which can be purchased with such a small percentage of your own money.

Getting Financing

You should be aware that many lenders place non-owner occupied deals in the high-risk category and it's not that unusual to find lenders who will not finance rental units at all - or those who will only finance them if they are insured.

Obviously, lenders will want to know whether the property will carry itself. (Is there sufficient rent to cover the mortgage payment?) Don't make the mistake of assuming that a rental income of $500 per month will carry a mortgage payment of $500 per month. Only a portion of the rent is used to pay the mortgage; the remainder must cover taxes, maintenance, vacancy, bad debt and expenses.

Costs

You should also be aware that the cost of obtaining a mortgage (for legal and appraisal fees) on a non-owner occupied property can be higher than the cost of obtaining a mortgage on an owner-occupied property, when more than one unit - such as a duplex or triplex is involved. Interest rates charged on rental properties might also be higher because some lenders view these properties as being a higher risk.

As mentioned above, the main responsibility of having a second property is being able to carry it financially. And if you're like most people, you'll probably have to rent it to someone as a result.
This is also a great deal of responsibility because you will have to maintain the property in addition to your own principal residence, and you'll be responsible for finding tenants who you trust and feel comfortable with.

If you'd like more information about purchasing any type of residential property: from a first home to a second property or more, contact Elli or leave a message on the blog.

Summer Home Maintenance Tips

The warm summer months are upon us and most of us have finished spring cleaning and de-cluttering of our homes. However, did you know that there are steps that homeowners should take to protect their investment? The summer months is the best time to get those tasks completed.
Below is a list of items that should be tended too.

1. Clean and check range hood filters over stoves on a monthly basis.

2. If necessary, use a dehumidifier to keep the humidity in the basement at or below 60%.

3. Check basement pipes for condensation or dripping.

4. Refill floor drain in the basement if it doesn’t have enough water.

5. Run water in fixtures that aren’t used on a regular basis (i.e. laundry tub, spare bathroom sink and tub or shower).

6. Deep clean carpets and vacuum the bathroom fan grille.

7. Clean the duct connected to the dryer by unplugging the dryer and disconnecting the duct connected to the dryer. Then take your vacuum and clean the duct.

8. Check windows, door hinges and garage door openers for smooth operation and lubricate if necessary.

9. Make sure water is not leaking into your house along the electrical conduits.

10. Check all paint and caulking.

11. Repair driveways and walkways as needed.

For more information on home maintenance or other free reports, contact Elli or leave a message on the blog.

What to know when shopping for Condos!

For people who are in the market to own their own property but don’t necessarily want a house, a condo can be the next best investment. Since there are slew of new condos going up along the Toronto Waterfront and other exclusive areas (i.e. Young and Bloor) condos are proving to be prime real estate investments. However, before you pull out the pen and get ready to sign the deposit cheque, there are some things that you should know.

1. Ensure that it fits your needs – if you are going to be living in the condo instead of renting it out, you will need to make sure that the condo fits the style that you are looking for. Condos range from high to low rises, from townhouses to triplexes and knowing what you want to helps to narrow down the search for the right one.

2. Find out what costs are included – for instance, is parking extra? What about amenities like use of the party room or swimming pool? Are finishes included in the purchase price? Are utilities covered in the monthly condo fees (aka maintenance fees)? All of these are questions that you need to have answered. They can make or break a deal if you as a buyer assumes what is included in the purchase price of the condo without asking first.

3. Be aware of the rules and regulations – most condos have boards that regulate the condos and create by-laws associated with the upkeep and maintenance of the condominium complex. There can be restrictions on anything from pets to parking. The by-laws are designed to protect homeowners from living in a non-harmonious environment.

4. Find out about the boundaries – in a freehold, bare or vacant land condos the individual unit consists of the entire house, including exterior walls, roof and the land surrounding it. Before making a purchase, be sure to understand where your unit will begin and end.

Finding the right condo takes research but as with any home search it starts with what you want and what you would like to have. Familiarize yourself with the condo market by searching listings that are on MLS.ca and of course be sure to follow up with your agent for any properties that you may be interested in. You can also download a Condominium Buyers Guide from CHMC’s website.

For more information, leave a comment or email Elli.

Canada's Real Estate Trends

In May, Scotia Bank released the new housing trends for the 1st quarter of 2008. New figures show that the real estate market is cooling down after seeing phenomenal numbers in 2007. Resale of homes have fallen 15% which is down from last summer and the average resale home price in Canada had its first quarterly decline in the first quarter of 2008.

Canada also saw a decline in residential building permits in comparison to last year and the inventory of unsold new homes are trending higher. Some factors causing the decline in these first quarter numbers include the relentless weather that we experienced throughout the winter season along with limited demand for the increased supply.

Financial experts expect a 15% decrease in overall sales compared to 2007. However, with that being said they do expect the average price of a home will increase by approximately 5%. It is safe to say that that the Canadian home market is still in a good position since homes are not overvalued and home equity as a share of real estate assets is near a record high.

Even though experts are expecting a bit of a slump our mortgage quality is still sound. Lending institutions have maintained conservative loan criteria and have introduced a new range of products such as no down payment, longer amortization periods, and adjustable mortgage rates. In my next post we will talk about some of these new mortgage products that are available to home buyers.

Going Green - Making Your Home Environmentally Friendly

In this day in age with increasing advances in technology and higher standards of living, everything seems to be at our disposal. However, we have and continue to take the earth for granted.

There are varied opinions on what effect global warming will have on the earth in the future but It is there are steps that we can take to rectify this situation. Aside from buying a hybrid car it’s the small choices that can prove to be most beneficial.

Make your home energy efficient - by installing florescent blubs (these cost more than the average blub but last longer). When buying appliances, choose the ones that have the energy star symbol on them and in some jurisdictions, the city will offer up to a $100 rebate on the product you buy. Unplug unused appliances – even though the appliance maybe turn off it is still draining energy.

Change your windows- on newer homes this isn’t necessary but changing your windows in an older home will allow for better insulation of the home and hence better air circulation for heat or air conditioning.

Switch to unsustainable flooring – if you’re thinking of changing your flooring think about making the switch to unsustainable flooring. This type of flooring is made of natural materials such cork or bamboo and acts as a insulator for the floor because it retains the heat (great for those cold winter mornings).

Low flow faucets – come in a variety of styles that fit the theme of your bathrooms or kitchen and best of all you are conserving on your water consumption.

Keep recycling - there is a website www.greenhome.com where you can find a variety of earth friendly products. From cleaning products to bedding to personal care product this site allows you to shop from the comfort of your home all while making your contribution to saving our earth.

Florida Bound – Canadians buying Real Estate in the US

With the real estate market being what it is in the US some Canadian home buyers would snub the thought of buying property south of the border. However, the truth is that this is the best time for Canadian home buyers to invest into the housing market especially in Florida.

In the past, buying property in Florida was thought to be for only retirees but that doesn’t hold true anymore. Due to the strong Canadian dollar, an excellent opportunity has presented itself and many Canadians who are not yet of retirement age are answering the call by investing in the US real estate market.

Florida is proving to be a real hot spot as more residential properties are being sold at nearly half off the price that the property would have been valued at this time last year. Builders in Florida are continually competing with each other by plunging prices of properties and don’t think that it’s just foreclosure properties that are available, new homes and condos are also being listed at considerably lower prices.

So are you convinced yet? Well, here are some other reasons to invest in a Florida property:
1. Florida has the lowest real estate prices in over 30 years.
2. Great investment opportunity as you can buy low and sell high.
3. The eventual US market rebound will mean a profit for you.

If this isn’t enough to put it into perspective, think of the fact that for the price of a cottage in Ontario, you can own a luxury property in Florida that you can enjoy at anytime of the year. May it be for your own personal use or for a vacation rental property the situation can only be win-win.

Want to find out more about properties in Florida? Contact me with your questions or leave comments on the blog.