Toronto Homes near Schools offering IB programs

And now it’s time for your Toronto Real Estate ABC’s.

A) There’s a new incentive for buying a house right now. B) A school with an International Baccalaureate diploma.

C) It’s a smart move.

Know this, and you can advance to the head of Toronto’s home-purchasing class.

Anecdotal evidence suggests that IB schools are behind a recent spate of bidding wars erupting in the GTA.

Widely perceived as a private school perk, academically elite IB programs are increasingly on offer through the public system, and houses in neighbourhoods with IB schools already in place are reaping the benefits.

“They’re a new real estate trend,” says Bill Thom an agent with Re/Max who says much of his business these days is coming from parents looking to buy homes in areas where there are schools with an IB program.

“Instead of giving $25,000 to a private school, I tell my clients to put that money instead on their mortgage. An IB school in their neighbourhood is a guaranteed world-class education, so why look elsewhere?”



Agent Bill Thom in Richmond Hill, an area that he believes has exploded in value thanks to local IB programs.
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Mr. Thom says that houses in areas with an IB school are selling faster and for more money right now than those in areas where this rigorous academic program isn’t already in place.

One of his recent listings was a two-storey at Bayview and 16th Avenue that after only five days on the market received 10 offers, largely because of nearby Bayview Secondary School, which implemented its IB program about five years ago.

“When that came in, it changed Bayview Hill’s housing prices,” says Mr. Thom. “Then they turned Bayview Hill Elementary School into an IB school too, so that made Bayview Hill even more desirable.”

IB schools have a reputation for providing among the most challenging of high school programs. The International Baccalaureate was originally developed in Switzerland in 1948 as a rigorous study program that would give the children of diplomats an entree to schools around the world.

The two-year academically enriched program stresses enhanced time-management skills along with an academic program combining advanced study with creative and athletic pursuits.

Home buying
Homes that get an A+
DEIRDRE KELLY
Toronto— From Friday's Globe and Mail

Toronto schools offering IB programs are often sought out by people moving to the city for the first time who are looking to buy real estate, says Alex Pino, an agent with Sotheby’s International Realty Canada.

“I think houses that are close to IB schools sell faster as there are many buyers coming from all over the world to the city looking for this education for their kids,” Mr. Pino says.

“In Rosedale and Summerhill, we see houses close to Branksome Hall and The York School selling faster and sometimes with several families bidding on them as they want their kids to walk to the IB schools. We just sold a Rosedale house to a family from South Asia whose girls are going to the local IB School.”

But it’s the public schools with IB programs having the biggest impact on the local real estate market, experts say.

Such is the case of Monarch Park Collegiate, an east-end high school that for decades has had a bad rap for being in a sometimes rough-and-tumble working-class neighbourhood.

Real estate surrounding the school has rarely been a hot commodity.

But that has changed since the implementation in September, 2008, of an IB world program that over the past two years is credited with turning the neighbourhood around, at least from a real estate point of view.

“Frequently, I get calls from people wanting to move into the area from another province or country who are looking for an IB school,” says John Au, Monarch Park’s IB program co-ordinator. “It becomes a factor for them wanting to move into the neighbourhood. They want to be closer to our school.”

Homeowners don’t necessarily have to buy in areas with an IB school in order to attend. As a specialized program within the Toronto District School Board (which, unlike other districts, doesn’t charge students wanting an IB diploma), the IB program is open to students outside a particular school’s catchment area.

But, increasingly, families are drawn to a neighbourhood, wanting proximity to their child’s education.

In Parkdale, an until recently downtrodden neighbourhood in Toronto’s west end, the presence of an IB school is cited as one of the reasons the area is turning itself around.

Parkdale Collegiate, founded in 1888 and the city’s second oldest high school, implemented its IB diploma in September, 2008, and since that time enrolment has spiked as a result of families actively seeking out the school, says Andrew Lin, the school’s IB program co-ordinator.

“We had 600 students before, when we didn’t have the program, and we now have 875. We average about 50 to 90 new students a year,” Mr. Lin says.

“The IB program is one of the main reasons for that increase. People in the neighbourhood recognize the value of an IB world school, and they recognize its value to the community.”

Buying a Home in Toronto

Finding the perfect home doesn't happen in one day. There are a number of things you can do to simplify the process, including defining financial parameters, potential neighbourhoods and the desired features in your next home.

Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what is most important to your lifestyle.

Then it's location, location, location. Location affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited somewhat by the price you can afford. Even so, make sure you consider such things as distance to work, schools, shopping and entertainment.

What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living.

A REALTOR® can help you analyze all of these buying issues. A REALTOR® working as a buyer's agent works to find the connection between homes available in the market and the needs and financial capacity of buyers. Talk to and compare the services of REALTORS® to help you navigate through this complicated business transaction. Be comfortable and confident with the REALTOR® you are selecting as your business partner.

As your agent, the REALTOR® owes you the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss agency with your REALTOR®. In most provinces, if a REALTOR® is showing you homes, they are automatically deemed to legally be your agent, and owe you all of the associated obligations.

A REALTOR® will use various tools to try and find properties that meet your specifications including the MLS® service. One of the important search tools will be the local MLS® system. By sitting down at a computer the REALTOR® can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS® system. You can also view listings posted to the national REALTOR.ca web site.

When you select a property and decide to visit a house, there are many things to consider. Does it have all the features you wanted? Is the neighbourhood what you expected? Try to picture your favorite furnishings in a room. Remember all of the technical considerations:

what type of wiring does the house have?
what about power outlets? Different appliances use different types.
what type of heating system does it use?
what about the roof and foundation?
what condition are the windows in?
what about the plumbing?
There are other things to look at as well. If you don't have time or don't feel comfortable doing it, home inspection services are available for a reasonable fee. Having a qualified home inspector look at the house is always a good idea. The older the home, the greater the need for professional inspection.

Once you find the house you want to make your home, work with a REALTOR® to develop an offer. In the offer, you should specify how much you're willing to pay. State when the offer expires, and suggest a closing date for the transaction. You can also propose some conditions on the offer. Some common types of conditions are:

getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
the seller providing a current survey, or a "real property report," showing the location of the house on the property owned by the seller and that there are no encroachments;
the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards;
if you still have any doubts about the home's safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer;
any inclusions - basically, what stays and what goes.
You will need to present a deposit along with your offer. An appropriate deposit will show your good faith to the seller. The seller's agent is bound by law to bring all offers to the seller's attention.

After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit. You may also be sued for damages. Make sure you understand and agree with all of the terms of the offer before signing.

No matter what type of home or property you're buying, plan on some extra expenses. In some provinces, you may have to pay a land transfer tax (a sales tax on property).

You may also have to pay:

a mortgage Broker's fee:
an appraisal fee;
surveying costs (if the seller couldn't come up with a current survey); and,
a high-ratio mortgage insurance premium.
an interest adjustment. Mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.
You'll also have to reimburse the seller for the unused portion of any prepaid property taxes or utility bills. As well, you must also pay any legal fees, and, if applicable, any REALTOR® fees. Be prepared to furnish proof to your lender that you have insured your new house as well.

Before the property can formally change hands, there are still a few things to do. On or before closing day, your lawyer and the seller's lawyer will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.

At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase. Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say... except welcome home!

(The comments contained on this site are for information purposes only and do not constitute legal advice.)

47-St.Tower, Dwntwn Tor.~King W Theatre Row frm $299,9. B 1st. 2 preview prices/floor plans. www.PeterTarshis.com

Happy Condo Living

Secrets for Happy Condo Living
Living in an apartment or condo can be a rewarding experience and you can truly be happy with a lower cost and little work. However, a condo is more than a financial commitment; it's a social commitment as well. In this article we'll examine these considerations to make sure that your new condo life is a great one.

When you're in buying mode, it's common to think only in terms of dollars and cents. But it's essential not to forget the social aspect of living in a condo. Different complexes work well for different kinds of people, so get to know your complex as well as your prospective neighbours to make sure that they're a good fit for you. If you're easing into retirement, it might not be a great idea to buy a condo next to a bunch of hard-partying college kids or vice versa.

When you live in a condo you have to share walls, ceilings, floors and common areas with neighbours. All of this means keeping close quarters with your neighbours. While that is not a big deal for those who have lived in apartments, others will have to get used to that level of close proximity to their neighbours.

The key to happy condo living is keeping your neighbours happy too. Respecting your neighbour’s right to the quiet enjoyment of their home is part of the arrangement. Your neighbours will appreciate, and hopefully reciprocate your efforts to lower the volume, walk quietly, and limit your vacuuming and entertaining to reasonable hours.

Another big issue in condominiums is pets. Most people are good about looking after their dog, but some people who exercise their pets will take them to the courtyard and not clean up after their pet’s mess.

A little flexibility is important too. If your neighbours are willing to turn down the volume for you and keep things as quiet as they can, perhaps you can be more understanding to their situation as well. They’ll really appreciate the give-and-take relationship. For your neighbours with children, try to remember that kids will be kids.

You need to remember that a condo living is a community, so you need to deal with your neighbours as community members and try to resolve the issues together. If that fails, the board will then intervene. For the most part, condo boards will ask people to resolve most issues themselves. They will recommend going to the neighbour and sitting down to talk with them to work things out.

Before you make a condo purchase, knock on a couple of doors and introduce yourself as a potential buyer. Ask your future neighbours questions about the complex that aren't being answered by the real estate agent, or ask the same questions again to get a different perspective without the sales pitch! Not only can you learn a lot about the people you'll possibly be living next to, but you can gain insight into how much they enjoy living in the complex.

Toronto Condo's on a roll- Fall 2010

In an astonishing turnaround, the Greater Toronto Area's new condo market shot from

moribund to near record-breaking in September.

In August only 861 suites changed hands,

while in September that number rocketed to 1,658.

Investor Alert - Fall 2010 - Condo Report

TORONTO-In contrast to the short backward slide of the US market, Toronto’s office space actually saw a drop in vacancy in the third quarter 2010 to less than 10%, which hasn’t been seen since early 2009. The lease-up of four new office towers to about 10% vacancy helped the market, though Avison & Young experts say the focus is now on large blocks available in former bank buildings downtown.

Bill Argeropoulos, VP and director of Canada research for the company, says the movement seen but not proven in the second quarter finally came to roost in the third, with close to 2.5 million square feet of transactions, 70% being renewals and expansions, and 30% relocations. However, he tells GlobeSt.com that the 9.7% vacancy isn’t too wonderful, as space that’s currently occupied but being marketed boosts the potential vacancy to 11.6%. “It’s likely foreshadowing, the vacancy figure will probably tick up higher and peak in 2011 before it begins to retreat,” he says.

He says four of the five new office towers downtown are now 90% occupied, including Bay-Adelaide Centre West, Telus Tower, RBC Centre and Maple Leave Square. Only 18 York St. is still under construction, “and that building is largely leased, only one floor available, and it should be delivered in the latter half of 2011,” Argeropoulos says. There are 11 full floors available in these developments, with the largest contiguous block being 80,000 square feet.



Now, it’s the older large bank buildings in the city’s financial core that are at risk of losing tenants. “If you look at the four towers there, there’s more than 200,000 square feet available, a result of tenants vacating for the new buildings or other properties,” Argeropoulos says. “They’re at 16% vacant, a glut in that district that I’ve not seen in my 22 years in the business.”

These older structures include Commerce Court West, Royal Trust Tower, First Canadian Place and TD Bank Center. Argeropoulos says renovation projects have begun for the properties, especially at the Brookfield-owned First Canadian, where the company is in the process of re-skinning the 72-story, 2.4-million-square-foot building, now about 17% vacant.

Similar to the US market, the Toronto trophy office market is starting to narrow, he says. “It’s getting so that large-block users, and/or tenants who want a LEED-certified space, may have to wait another three-to-four years. There isn’t a developer who is going to go into the ground on a speculative basis unless there’s a willing lead tenant,” he says.

Categories: International, Office, Leasing, Canada
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Buying a Home : 10 things You need to know!

Buying a home: 10 things you need to know

Tony Wong


Buying a house can be daunting, but a little planning makes it less stressful.

Shutterstock/Shutterstock


Buying a home is the largest purchase you’ll likely make. No wonder you’re stressed. Where should you look? Can you afford it? What will happen if interest rates rise? It may all seem daunting, but you can make it more manageable with a little planning. Here are a few things to figure out before you make the leap.

1. Get your financial house in order



Figure out your net worth, which is your assets less your liabilities. Assets are things like cash, investments, savings, cars, boats and so on, while liabilities are things you owe – car loans, amounts on lines of credit, overdrafts, credit cards. Subtracting one from the other tells you what you’re worth. Hint: If you get a negative number, you should probably re-think the whole thing.

The bigger the down payment the less interest you will pay in the long run. Well before you start looking for a house or condo, build a budget that will allow you to put some money away each month for that down payment.

2. Talk to a broker or your bank

Choosing a mortgage is like going to an ice cream parlour – there are dozens of choices and different flavors.

It may be time for a mortgage broker or adviser at your bank. A mortgage broker will shop around, much like an insurance broker, to find you the best deal. Your banker will sell you a mortgage offered by the bank. That doesn’t mean you can’t negotiate with your bank. The posted rates are a starting point and you can usually get a better deal. If they won’t negotiate go somewhere else.



Don’t be afraid to ask questions. If you go to a broker, ask how long they’ve been in business, what kind of products they offer and if they have references. Often the best way to find a broker is word of mouth. Ask your friends.

3. Terms and rates

The next decisions revolve around how long you want to lock the mortgage in and than will determine the rate of interest you pay. This is called the mortgage term and can be as little as six months or as long as seven years. It locks you in to a set of payments for the length of the term. Shorter terms have lower rates of interest.

Along with this is the amortization period, or the amount of time it will take to pay off your loan. It might run anywhere from say, 15 to 35 years.

The longer your amortization, the more interest you will pay. It may be worth considering a weekly mortgage. The monthly payment is divided by four, but the advantage is that you make four extra payments a year which are applied to principal. It’s a painless way to pay down your mortgage faster.

Once you’ve settled on a rate, term and amortization period, you get a mortgage pre-approved by your lender.

4. Get a real estate lawyer



While your dentist can likely do a fine root canal, an endodonist will likely do a better job. In some cases there won’t be a substantial difference in cost, but it could save you some pain down the road. Similarly, having an experienced real estate lawyer looking over your purchase agreement, checking for outstanding taxes and liens or claims against the property can be a lifesaver down the road.

Line the lawyer up in advance and explain your plan. That way, there’s no surprise when you put in your offer and come back to him with the deal.

5. Have realistic expectations

First time buyers often start with a wish list that may not be realistic given their resources. Starting big is fine, as long as you recognize that along the way you’ll make trade offs between location, size of house and features.

First, assess your lifestyle . If you are single, enjoy walking to Starbucks for a latte and hate cutting grass, then a detached home in the suburbs is likely not for you.

Make a list of the things you want. Do you need a two car garage? Space for a home office? Are you going to have children? Is it a good location? [hotlink to 10 things story] Don’t look at the house in isolation. Make sure the neighborhood, schools and surrounding amenities and services fits your needs.

Now start looking around. Use the internet, newspapers, and real estate magazines to get up to speed. Go to open houses to get a sense of what’s available at what price. Knowledge is power. A good place to start is with your local Multiple Listing Service site.

6. Stick to your plan

Understand what your spending limit is and don’t go over it. A pool might be nice, but it is not a necessity. Buying a home is ultimately a compromise of needs versus wants.

Try not to get emotional. In a hot market, bidding wars can be tough on buyers. But you could end up with a whole pile of buyer’s remorse if you think you overpaid.

Or what may look like a lemon. Homes that are in disrepair or need fixing up can usually be purchased for less. Don’t be hung up on the wallpaper, or the fact that the kitchen isn’t pristine.

Use a little imagination. Yes, it’s going to take work, but the savings could be worth it. Because when life gives you lemons, a slap of paint and a trip to the hardware store will Increase housing value like you wouldn’t believe.

7. Buyer agency agreement

Make sure that your agent represents you. A buyer agency agreement helps to reduce conflict of interest since the brokerage represents you exclusively. The seller’s agent represents the vendor.

A buyer’s agent for example, will tell you why you shouldn’t be buying a particular home. Make sure that the guy or gal on your team is batting only for you.

8. Get a home inspection

You wouldn’t buy a used car without checking under the hood, so why buy a house without a home inspection?

A home inspector will check for structural and electrical defects, roofing and foundation problems. This can come back to haunt you later. It also gives you some negotiation room when you put in your offer.

In hot markets, sellers may press to have the inspection waived. Don’t give in and get swept away in the heat of the moment. Walk away.

At the end of the day, it boils down to your risk profile. I have a friend who sometimes drives without a seatbelt. My cousin meanwhile, loves the fact they have somehow managed to invent car airbags for her knees. My theory is it’s better to have somewhere soft to land.

9. Don’t be afraid of being a landlord

One way to pay your mortgage off faster is to have someone help you. Buying a duplex or triplex is not a bad way to go, particularly in urban areas where prices have been bid up. Renting out the basement in a single detached home or a spare room is also a smart idea if you’re not using the space. And the extra money in your pocket may mean that you can afford a nicer home in a better neighborhood.

10. Maybe you should rent

Just because all your friends have put money down on a new condo doesn’t mean that you have to follow suit. Depending on your circumstances, it might make more sense to rent than buying a home. A rent versus buy calculator can help you figure it out http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca01821.html

Taxes, maintenance and utilities can add up. A low interest rate environment can tip the rent verses buy equation into the buy side, while higher interest rates, which make buying less affordable, can make it more favorable to rent.

In many cases, it is much cheaper to rent than it is to buy. Most studies show however, that in the very long term, it is better to buy. However, if you tend to move a lot, don’t like to deal with maintenance issues, and want to free up some money for other things, then renting might be the best lifestyle choice.

Tony Wong writes about real estate for The Toronto Star.

via thestar.com

Preparing your home for Fall

Keep your home in tip-top shape inside and out

Early Fall is the time of year to prepare your home for the cooler weather.
It's extremely important to make sure that your heating system is working properly and safely. It is recommended that a heating and cooling specialist look over your system once a year at this time.

If you have a forced hot air system, your heating and cooling use the same filters. If they're dirty then filthy air will be circulating around your home. Filter changing is something that homeowners can do themselves. It should be done three or four times over the course of the winter.

If you have gas heat, your serviceperson should check the pilot light, burner and chimney flute. That is where carbon monoxide byproduct exists in your home and you want to make sure that it is not building up in your home.
Forced hot water heating systems (baseboard heat) should be checked and serviced as well.

There may also be things that need attending to beneath your property. Have your sprinkler system flushed before the cold sets in. The process involves blowing air into pipes to displace leftover water. This is important because water lines are typically only 6 to 8 inches below the ground and are prone to freezing.

Homeowners with septic tanks should think about having them pumped out now before the ground freezes and snow buries the yard. Septic tanks should be checked every year and cleaned no less than every three years.

More Fall maintenance tips in the next issue.

Dream of home ownership

The dream of home ownership is no longer pie-in-the sky, it's just up in the air. Literally.

The crux of a Re/Max Ontario-Atlantic Canada report released this week reveals Canadians have stopped dreaming of "white picket fences" and are now focused on "funky loft apartments."

But even the real estate company had to admit in its press release that this desire to live in condominiums is principally being driven by the fact that's all many people can afford the first time they dip their toes into the housing market.

"As one of the few affordable housing options available to first-time buyers, the concept is poised for dramatic growth in years to come," said Michael Polzler, the executive vice-president of the company.

The condo market has become part of the urban landscape with one in every three homes sold in the Greater Toronto Area falling into the category. Even in small centres like Halifax, the condo has become a significant chunk of the housing market.

As home ownership levels have climbed during this housing cycle, one of the reasons behind the surge has been the rise of the condo, says Craig Alexander, chief economist with TD Bank Financial Group.

"Condos, generally speaking, have a lower entry point than many other dwellings. Of course, that is generalizing. But if you are single and you are entering the housing market for the first time, a one-bedroom condo is often the key entry point," he says.

Mr. Alexander says the big question for prospective condo buyers is what will happen to prices as supply begins to surge. Toronto is building more high-rise condo units than any other city in North America, says research firm Urbanation Inc.

"Condos are at most risk if we see a cooling and softness in prices," he says, adding the that this segment of the housing market is going to reap the benefits from a change in demographics and attitude that has people wanting to live downtown. "We are seeing a renaissance in urban living, people want to live in the core."

He can't prove it statistically, but Mr. Alexander says it's become more common for children to go directly from their parents' home to buying a home, skipping over the renting stage that had become common for previous generations.

Part of the reason is affordability, but government policy has also made it easier to buy property and the condominium model is gaining from the ease of entry into the market. Government-backed mortgage insurance has made it possible to buy a home with as little as 5% down, compared to 10% in the early 1990s. At one point the down payment could be as little as 0% until the government cracked down two years ago.

Then there's the amortization period, which was stretched to 40 years from 25 years by the mortgage industry before it was scaled back to 35 years. But even at that length, it's much easier to qualify for a mortgage as your monthly payment goes down.

But if all you can afford is a condominium, should you make a condominium your first home?

"The condominium market is more volatile, it moves faster in both directions. But having said that, owning a principal residence is generally a good thing, as long as you can afford that," said Ted Rechtshaffen, a certified financial planner and chief executive of TriDelta Financial Partners "It's a good wealth builder because it's the only thing you can buy that is tax-free [in terms of capital gains]."

All of that is true, but a condominium should be like any investment. You have to consider whether you plan to hold it long term. If you do, then price gyrations up and down are not as important. The same holds true for transaction costs.

"It's like a stock portfolio. If there are lots of transactions, it adds costs. One of the reasons people think real estate is safe and stocks are not, is they hold real estate for 10 or 15 years," Mr. Rechtshaffen says. "If your plan is to be there for two years, there are a lot of transaction costs to cover."

The days of flipping a cond are long over, if they ever truly existed in this cycle. Once you figure land transfer costs, real estate commissions, lawyer fees and the cost of mortgage insurance, a condo is really like any other housing stock, just cheaper.

gmarr@nationalpost.com

Toronto Investor Rental Info -

Value of a Landlord’s Reputation
by Richard Warren on September 2010

Many people demonize landlords as evil and greedy bloodsuckers. Some of them are to be sure. Most of them (us) are really just investors trying to make a living and build wealth. Finding a story about a slumlord that does nothing but collect rent is easy. They do as little as possible in terms of maintenance and repair and are simply looking for their monthly check. Ever here the story about the great property owner that treated his tenants fairly, made sure his rentals were properly maintained, safe and secure? I didn’t think so.

You only hear about the terrible landlords because bad news travels fast and good news isn’t very entertaining. It’s like sports referees or umpires; they go unnoticed until they blow a call. The value of having a good reputation as a landlord can be summed up in one word – vacancies.

A Fact of Life

Hear the one about the long-time landlord that never had a vacancy? Neither did I. Vacancies are a fact of life; tenants get new jobs, get married or divorced, have kids and need a bigger house, or buy a house of their own. When a tenant moves out it is rare to have a new one move in the next day. The property may need some repairs or updates, new occupants need to be found, and screening prospective renters takes time. If you can have it rented by the following month you are doing well.

A wise landlord uses a vacancy factor when calculating cash flow projections, generally 7-10%. Sometimes that’s sufficient, sometimes it’s not. Two years ago I wrote an article about two rental properties I owned that were polar opposites in terms of vacancies. While a vacancy factor is an assumption, it can vary wildly. I just experienced such a situation.

I own homes in a rural Nevada mining town with a very high demand for rentals. While I’ve certainly had vacancies, I recently went almost two years without one. Then I had one tenant of more than five years give notice because he had finally been able to purchase a house of his own. I was disappointed to lose an excellent tenant but I really couldn’t complain. Not two days later I had a call from another good tenant; she had to move out due to a family emergency. I suddenly had two vacancies – the law of averages had reared its ugly head.

A Priceless Commodity

Imagine a slumlord in that situation. His reputation will keep the good tenants away and he is left with the dregs that can’t get anyone else to rent from him. Fortunately I’m not in that situation – it’s just the opposite.

I immediately put the word out to my network that I had two rentals available. One was ready to go as soon as I changed the locks, the other needs to have a few things taken care of and it was time for new carpet. Within forty-eight hours I had received numerous calls on both properties. In the first case my long-term tenant actually found not one, but two prospective tenants for me. The one I selected is so anxious to move in that my total downtime on the rental will be ten days. The second house is actually paid through the end of September and I am in the process of selecting a tenant for an October 1st move-in.

Why did I have so many people calling me? It’s not because there are no other rentals or because they’re priced too low. The rents are right at market and there are enough properties available that people have a choice. The reason is that this is a small town and I have developed a reputation as a landlord who is fair, but firm, maintains the houses and treats tenants with respect. Want to have a low vacancy rate in your properties? Then develop a stellar reputation in your community.

It takes many good deeds to build a good reputation, and only one bad one to lose it. – Benjamin Franklin

Photo Credit: boliyou

Bottom line? It’s always a good time to buy, says expert

Beyond the numbers


By Dianne Daniel Special to QMI Agency

Recent interest rate activity has left many homeowners and buyers wondering whether to buy, refinance or lock in. To shed some light on the subject of pricing trends and rate activity, Homes Extra caught up with Lois Volk, a mortgage broker with Invis Inc. Here’s what she had to say.

Q: What’s the best mortgage strategy right now?
Variable or fixed rate? A: It depends a lot on the individual situation. First-time buyers are more inclined to choose a five-year fixed rate because they know what the payment is going to be for the next five years and it helps with their budgeting. But for second time purchasers there’s a lot more interest in the variable rate. Right now the spread between the variable rate (2.3 versus 3.79) amounts to about $200 a month on a $250,000 mortgage payment. So it’s really hard to argue that they should lock into a higher payment, but it’s just a guessing game as to how long these exceptionally low rates will last. If they’re going to be in a real tight budget situation than maybe they should be looking at the fixed rates.

Q: What if rates go up? Will I still be okay?
A: Risk tolerance is real big factor here. Some people won’t sleep at night if they know their mortgage payment might go up. So they’re a better candidate for a fixed rate and I have no problem selling a five-year fixed rate at 3.79 — it’s an excellent rate. But the economists will tell you that 80 to 85% of the time you’ll come out ahead with a variable rate mortgage. When I’m working with clients who want a variable rate mortgage, I always show them the cost if the mortgage goes up a per cent, and another per cent, and another. We have prime rate now at three per cent, it’s not unlikely that it could go to five or six per cent over the next five years.

Q: Is now the time to lock in my rate?
A: There’s no panic. Personally, I think you’re going to be okay with a variable rate mortgage for the next year, possibly more, but nobody has any idea what’s going to happen after that. In any variable rate mortgage you can lock in to a fixed rate at any time and the shortest term for a variable rate is three years. If you’re taking a variable rate mortgage, we suggest you pay based on a higher rate (for example, the bank’s qualifying rate of 5.39). That way you build in protection if the rate does go up, plus you’re paying off a big chunk of your principal in the meantime. The other thing to consider is there are a number of lenders offering split term mortgages where you can do part of it at a fixed rate and part of it at a variable rate. So if you’re a bench sitter, or a couple where one wants variable and one wants fixed, you can split it in half.

Q: Should I be considering refinancing?
A: I’ve actually been doing a lot of refinancing lately, partly because the interest rates are very low but also because the economy has left people in tighter situations. A lot of people refinance to consolidate debt; they’ve got credit cards and loans at higher rates with higher payments and in those cases it can be very much to their advantage to refinance at a lower rate with a longer amortization. There are a number of reasons why people will refinance (to buy a cottage, to invest, catch up on RSP contributions) and a mortgage is still the cheapest way of borrowing.

Q: Is now the time to buy?
A: Generally prices have come down across the country. In Toronto, it depends on the neighbourhood. If you can afford it and you want a house, it’s always a good time to buy.

The Canada Mortgage and Housing Corp. and many large real estate brokerages are predicting a more normal and well-paced market.

Rookie mistakes to avoid when buying a home

They’re often heedless, emotional, rigid and, even worse, uninformed.

September 22, 2010 VIVIAN SONG

Experts say they see the same rookie mistakes in first-time homebuyers who are entering the housing fray: they don’t do their research, underestimate their finances, and let their emotions carry them away.

But with falling house sales and declining prices in the GTA, first-time buyers may find that market conditions are currently in their favour.

“We’re moving towards a balanced market right now,” said Mark Salerno, GTA district manager at the Canadian Mortgage and Housing Corporation (CMHC). “Because the pace of sales has slowed, houses remain listed for longer, which gives people more time to do research, and do their homework without any pressure.”

To help first-time homebuyers avoid making the same rookie — and costly — mistakes as their predecessors, experts at CMHC and the Toronto Real Estate Board have provided some helpful advice on common homeowner traps.

Mistake 1: Jumping into homeownership without understanding the implications.

Just because market conditions seem ripe doesn’t mean you’re ready to become a homeowner. If you’re a renter, the first thing to do is check the terms of your lease agreement, says Bill Johnston, president of the real estate board. What are the conditions of termination? Can you sublet?

“Fifteen-hundred dollars in rent can be a significant burden if you suddenly find that you’re stuck,” he said.

The CMHC also reminds first-time buyers that being a homeowner means being responsible for all payments, repairs and maintenance, which requires additional time and money. If you have an unstable jog, or if you’re not prepared to deal with leaky pipes or spend the weekend shovelling and painting, you may want to reconsider buying.

Mistake 2: Not getting pre-approved.

Shopping for a home without getting pre-approved could dash your dreams if you set your sights on houses that are out of your price range: you need to know how much you can afford to play with.

One of the first orders of business is to get pre-approved by a lender. Your pre-approval will depend on your gross household income, down payment, credit history, assets and liabilities. Online mortgage calculators can give you a rough idea of your maximum loan amount.

The general rule lenders use to determine your maximum mortgage is that your monthly housing costs — mortgage, taxes, heating and other expenses — should not exceed 32 per cent of your gross monthly income. Secondly, your debt load should not be any more than 40 per cent of your gross monthly income, which includes housing costs, car payments and credit card payments.

Mistake 3: Underestimating the costs.

Don’t forget that in addition to your mortgage, the closing costs for sealing the deal can range from 2 to 5 per cent of the home purchase price. That includes lawyer fees, home inspection, deposits, land-transfer tax, moving expenses, property tax and home insurance.

If you’re buying a house, chances are you may have to purchase major appliances, furniture, window treatments and lawn or snow-clearing equipment, as well as connection fees for cable TV, phone and Internet. If you’re buying a condo, you have to factor in maintenance fees.

It’s also estimated that maintaining your house will cost 1 per cent of the home purchase price per year.

Mistake 4: Having preconceived notions of downtown or suburban living.

Here’s where our experts are divided. Although the knee-jerk reaction may be to look farther afield to the suburbs to get more bang for your buck, first-time homebuyers need to look at the whole picture, advises Salerno of CHMC.

“If you work in the city, while your house may be more expensive, the proximity may mean you don’t need two cars, or before- and after-school programs for the kids,” he said. “I would caution people to really think about the time it takes to live in the suburbs.”

He also reminds prospective homeowners that condos usually come with amenities, such as swimming pools and gyms, and are also typically close to city parks.

Johnston, on the other hand, advises expanding your horizons and keeping an open mind about location. A knowledgeable realtor, for instance, could find the exact home you’re looking with all the amenities you need — just in a different neighbourhood than you wanted.

“A realtor will give you options,” he said. “For instance, I ended up in Richmond Hill and I swore there was no way I would live north of Steeles Ave. But I love it.”

Mistake 5: Not considering the resale value of the home.

“One of the things with homebuying is that you have to step back and recognize that while you are moving into the house now, you will move out years later,” Salerno said.

Try to look at the house objectively, experts say. In addition to considering how it fits your needs, consider if it could also fit the needs of future homebuyers, such as families and couples. Although a nearby railway or highway may not disturb your sleep, it may be a major deterrent for future buyers.

Check zoning and development plans for the area, especially if there are vacant lots, empty fields or underdeveloped areas.

Take a drive through the neighbourhood and check out the level of amenities nearby, such as grocery stores and shopping, as well as the quality of schools.

Mistake 6: Not shopping around for the best mortgage.

Don’t make the mistake of bellyaching about your high-interest mortgage because you didn’t take the time to shop around.

Mortgage brokers are great resources because they will act on your behalf and try to secure the lowest possible rate. Because they’re paid by the lender, there’s no additional fee for you.

You may also miss out on valuable first-time homebuyer incentives if you fail to do your research. For example, the federal government introduced a First-Time Homebuyers Tax Credit last year that could provide up to $750 in federal tax relief for eligible buyers.

For those who buy a fixer-upper, you can also apply for a home renovation mortgage, or purchase plus improvement, which lets you finance the purchase and renovations as one loan.

“Everyone is frenzied in the homebuying process,” Salerno said. “The buyer wants to get into the house and the realtor doesn’t want to lose the sale, which can result in all parties missing opportunities.”

Mistake 7: Not doing a home inspection.

Here’s where the adage “Don’t judge a book by its cover” applies. Don’t be fooled by the little old lady who reassures you the house is a well-oiled machine.

Behind shiny new, stainless steel appliances could lurk rotting wood, busted pipes and families of rats. You’re already plunking down wads of money to buy your dream home; you don’t want another loan to fix things you never knew were broken.

If you find yourself in a bidding war, no matter how much you want the house, don’t make the mistake of forgoing the home inspection as a condition of purchase.

Mistake 8: Letting your emotions dominate.

Homebuying can be an emotionally charged event, especially for first-timers who are making the biggest purchase of their lives. But letting the heart overrule the head can cloud your judgment and end up costing you dearly.

“The mistake a lot of buyers make is that they get caught up in the frenzy of the marketplace, which is driven by fear and greed,” Johnston said. “Buyers who are lined up in multiple offers will then end up paying too much for a property.”

Take advantage of today’s quieter market, but do your research first.

First-Time Home Buyers Tax Credit (HBTC)

The First-Time Home Buyers Tax Credit (HBTC) is one of the measures provided by the federal government in 2009 to encourage investment in Canadian housing.

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit was $750. Each year, the credit is recalculated, so it may be higher or lower than previous years.

How do you qualify for the tax credit?
You, and anyone you purchase the home with, must be considered a first time home buyer to be eligible for the tax credit. The home must be used as your principal residence, and if you purchase with your spouse, common-law partner, or even a friend, then either one of you can claim the credit (or share it). However, the combined total cannot exceed $750.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer. See the Government of Canada website for further details.

What is a qualifying home?
To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums and apartments. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

How to Claim the First-Time Home Buyers Tax Credit?
First-time homebuyers purchasing a home may claim the HBTC on their income tax returns. Starting with the 2009 taxation year, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system.

Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Keep the HBTC in mind when you consider buying a Canadian home. It’s just another great reason to take the final step of real estate home ownership.

For more Information visit: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

The changings face of CREA's realtors campaign | Marketer News

The changings face of CREA's realtors campaign | Marketer News

Equine Therapy in Action!

6 Ways to Tell If Your Real Estate Agent Is Lying

6 Ways to Tell If Your Real Estate Agent Is Lying

RECO decision heralds new rules about basement apartments

Bob Aaron bob@aaron.ca
July 10, 2010


A discipline decision by the Real Estate Council of Ontario (RECO) earlier this year has established what may be a new disclosure standard for real estate agents dealing with basement apartments and land surveys.

Back in 2006, Richmond Hill real estate agent Sean Marandi listed a property for sale. In the published listing, it was described as a “magnificent house . . . elegant design with two apartments in the basement ($1,150 income) . . . three fridges, three stoves . . . Seller and agent do not warrant the retrofit status of basement apartment.”

Two days after the listing was published, Marandi drafted an offer on behalf of a buyer. He had advised the buyer that the property would be an excellent purchase for investment purposes because the previous owner had built a separate entrance to the basement.

The buyer signed a dual representation acknowledgement confirming that Marandi and his brokerage represented both buyer and seller.

In preparing the offer, Marandi did not insert a clause to ensure that the buyer was fully informed of the legality and suitability of the basement units for his intended use.

The offer did, however, contain a clause requiring the seller to provide an existing land survey of the property. That was never done.

Shortly after closing, the municipality informed the new owner that the basement entrance and basement apartment did not comply with the building code, and it issued a violation order against the property.

The cost of remedying the faulty construction of the basement door came to about $50,000. On top of that, the tenants took the buyer to what was then known as the Ontario Rental Housing Tribunal due to problems with the door.

Eventually the owner was forced into bankruptcy when the tenants stopped paying rent.

RECO filed discipline charges against Marandi for breach of its code of ethics. At a hearing in March, Marandi admitted to unprofessional conduct when he failed to verify the status of the basement apartment and failed to follow through with delivering a land survey to the purchaser.

The RECO discipline panel ruled that Marandi acted unprofessionally by not inserting a condition in the offer to ensure that the buyer received information or assurances about the legality of the basement apartment before the offer became binding. Marandi was ordered to pay a penalty of $7,500 and take a course in ethics and business practices.

Based on my reading of the case, it seems that in similar circumstances, potential purchasers have a right to expect very high disclosure standards from their real estate agents:

• Agents are now required to verify the legality and/or intended use of basement apartments with the municipality before offers are submitted.

• Agents can no longer insert clauses into offers stating that they and the seller “do not warrant the retrofit status” of basement apartments (a common practice at present).

• Agents are now required to “follow through” and ensure that buyers will promptly receive a land survey if the offer provides for it.

In a 2004 Ontario court decision in a civil case for damages, the judge ruled that agents have a positive duty to tell purchasers whether a basement living unit might not comply with the municipal bylaw. He wrote in his judgment that an agent must fully and fairly disclose to his clients all material information regarding the property.

The Marandi discipline decision echoes that high standard of full disclosure in offers to purchase. In future, disclosures should avoid words indicating that there is no verification of retrofit status, in favour of a blunt statement, such as “The purchaser acknowledges that the basement apartment is illegal.”

My colleague Merv Burgard, a London, Ont. lawyer who lectures extensively to real estate agents, tells me of a careful Brampton real estate agent whose advertisements often read “illegal in-law suite.” Hopefully, this degree of honesty and disclosure may soon become common practice in Toronto.

“When in doubt,” Burgard tells his students, “tell the whole truth, and warn (buyers) of the risks.”

***

RECO DECISION http://www.reco.on.ca/publicdocs/20100315_30735.pdf

and

http://ww.aaron.ca/columns/marandi decision.pdf


--------------------------------------------------------------------------------
Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone 416-364-9366 or fax 416-364-3818. Visit the column archives at http://aaron.ca/columns/toronto-star-index.htm for articles on this and other topics.

Tips For Getting The Most For Your Home When Selling.

In any real estate market, prepping your home so that potential buyers see it in its best light can mean that your home sells more quickly and possibly at a better price. Here are a few simple steps that can yield big dividends:

Check the curb appeal – make sure that the front yard and front porch / entrance way is clean and free of any messy looking items such as recycle boxes.

Get it fixed – repairs are important: make sure that bathroom tiles are not cracked, or the kitchen faucet doesn’t drip, to give two obvious examples.

Spruce things up in the kitchen – if this room is in need of a remodeling, you can update the space quickly and inexpensively with new curtains, new cabinet knobs, and a fresh coat of neutral paint.

Thoroughly clean – you may wish to hire a professional cleaning service to ensure that everything in your home from floor to ceiling has been carefully cleaned and/or dusted. Power-washing the exterior is also a good idea. Make sure rooms are free of extra clutter.

Brighten up your home – very clean windows and higher wattage bulbs do wonders for making a space seem airier and bigger.

Don’t get too personal – anything directly connected to you should be stashed from sight, such as toiletries in the bathroom or framed family photos, so that potential buyers can easily imagine themselves living in the home.

Always be sure to use a qualified Realtor when selling your home.

Toronto Area there are five active public real estate companies

Will the GTA be flooded by PPP opportunities?
In the Greater Toronto Area there are five active public real estate companies: Build Toronto, Toronto Lands Company, Waterfront Toronto, Ontario Realty Corporation and Canada Lands Company owner of Downsview Park. Each organization has been established to develop and manage public property in order to generate a sustainable revenue stream or enhance the value of its assets or both.

Build Toronto

The newest of these organizations Build Toronto announced that it is open for business today, May 12th at the Toronto Board of Trade. It was established in 2009 by the City of Toronto under the direction of Mayor David Miller.

Build Toronto has a portfolio of 31 properties representing hundreds of millions of dollars worth of real estate. The properties include underutilized transit land, parking facilities, libraries, police stations as well as the City’s residential properties.

Four large projects have been identified by Build Toronto as its first priority in the search for Canadian and International investors to partner in unlocking the market value of these sites. The properties include:

(1) A 54-acre location next to the Downsview subway station.

(2) 154 Front Street at the corner of Sherbourne and Front in the St. Lawrence neighbourhood in downtown Toronto.

(3) A 24 acre industrial property off the QEW highway near Islington Ave. and Lakeshore Blvd. in the city’s west end.

(4) 4050 Yonge St. an under underutilized 2 acre site projected for a 450,000 square foot development at the corner of York Mills Rd. and Yonge St.

All of these are Class A locations with extraordinary development potential. Under the direction of the Build Toronto Board, which includes leaders in Canadian real estate industry, Build Toronto seemed destined to find suitable partners that will see the properties developed.

In addition to Build Toronto there are four other public real estate companies. They are:

Toronto Lands Company

The Toronto Lands Corporation was created in September 2007 and incorporated in April 2008 as a wholly-owned subsidiary of the Toronto District School Board. The TLC’s mission is to maximize the Toronto District School Board’s real estate revenues in order to reinvest in TDSB schools and students.

Shirley Hoy, CEO of Toronto Lands Company said her organization is expected to generate a $30-million surplus annually for the Toronto School Board.

Waterfront Toronto

The Waterfront Toronto website says that it is building the largest urban revitalization project in North America. It is mandated by the three levels of Government each equally represented on its Board of Director to develop the publicly owned waterfront lands in downtown Toronto.

Ontario Realty Corporation

The Ontario Realty Corporation manages one of the largest real estate portfolios in Canada, consisting of approximately 6,000 buildings and structures and over 80,000 acres of land across the province. The portfolio includes a wide variety of properties ranging from detention centres to office space, courthouses and heritage buildings.

Its major projects in Toronto include 222 Jarvis St., the Keele-Wilson Provincial Campus Redevelopment and the West Don Lands Flood Protection Platform.

Canada Lands Company

Canada Lands Company Limited is an arms length, self-financing Crown Corporation reporting to the Canadian Parliament through the Minister of Transport, Infrastructure and Communities.

In Toronto CLC owns the CN Tower and several downtown office locations as well as other properties listed on its website.

Downsview Park in Toronto is a 572 acre property that was taken over by the Federal Government after the Canadian Forces Base on the property was closed in 1994. It is operated by PDP a crown corporation and subsidiary of the CLC established in 1999 that received full ownership of the Park in 2006.

While Build Toronto is well positioned to succeed with a strong Board of Directors and an exceptional portfolio of properties all five of these organizations are competing in the same jurisdiction for essentially the same partners and investment.

Does the presence of the five public development organizations work to their advantage or will the GTA becoming flooded with public private opportunities? Could flooding the market dilute the value of the opportunities to the development organizations and the public?

The Miracle is You - Kute Blackson (OFFICIAL Music Video)

Protecting Your Privacy While Your Home is on the Market

Numerous people are likely going to spend a considerable amount of time browsing through your home while it is on the market. If you are living in the home while it is for sale, your personal things will be on show too and potential buyers might look through drawers and other items that are inside your home. Your privacy and security may become an issue when showing your home, so it is important to consider all your options before you welcome someone into your home.

For many individuals, it is very important for them to protect their privacy, while others are simply concerned that buyers will make assumptions about them and judge them instead of simply judging their home. However, the importance of protecting your privacy is all the same and that goes for anything personal from financial information, such as cheque books to bank statements and personal letters.

Protect your documents
Keep in mind that a potential buyer may open cabinets or drawers—this is not considered snooping. Buyers can innocently tug on a drawer to inspect its construction or depth and find important documents that you might not intend for anyone to see.

Don't leave mail where anybody can find it
Many sellers make the mistake of leaving piles of opened mail neatly stacked on the kitchen counter or somewhere else in the home. By leaving your correspondence out on the table, a potential buyer can find out about your credit card debt, whether you have filed for bankruptcy and other private information that you probably don't want the seller to be aware of. Not only is this an invasion of your privacy, it can also change the offers that you receive from buyers. If you have a stack of mail from a collection agency, the buyer will know you are desperate to make a sale and will likely propose far under the list price.

Remove personal effects from your walls
From diplomas and religious artifacts to wedding certificates and personal photos, don't provide buyers with any personal information about yourself or your family. De-personalizing is also an important move to make when staging your home for sale anyway, so you can actually accomplish two things by removing the personal effects from your home.

Don't leave your computer up and running during showings
Gaining personal information from your computer takes only minutes for a professional hacker or thief, so be proactive and turn your computer off before potential buyers arrive.

Before you put your home on the market, empty out drawers, stage closets and pack up anything personal including medications. Disassociate yourself with your home—remind yourself that it is a house—a product to be sold on an open market that is bound to see plenty of new faces throughout the term of the selling process.

Consider renting a locker at your local bank and store away your jewelry and other valuable items. It is better to be safe than sorry.

Toronto real Estate Market 2010 - Report

The Canadian resale housing market is now moving towards a balanced market, rather than the seller’s market we have been in for most of the past year.

For the first time in almost a year, inventory increased in June/July. With more homes to choose from, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price.

In a stabilizing market, consumers need to rely more on the expertise of a REALTOR® because prices are highly local and competitive.

Just back from Chicago - & if your going !

Peter Tarshis
Just back from Chicago & stayed at the Westin Ohare ~ the hotel was great, affordable & I was well looked after + also heard great reviews from the other 700 ppl who also stayed there while attending the Spiritual Awakening (SA) conference held at this hotel.

The amazing things about the city is how they have protected & developed their large waterfront for the people not greedy developers. The elevated 'clean' subway ride ($2.50) took us right downtown just a 2 blocks walk from the Westin Ohare.

One day I took advantage of the nearby forest preserve for a 'get away from it all' walk.

Great hotel, helpful staff, grateful all my requests were looked after including top floor with a view.

If your going to 'Sweet Home Chicago' I definitely recommend this Westin Hotel.

O'Hare Hotel - The Westin O'Hare
www.starwoodhotels.com
The Westin O'Hare is in the heart of Rosemont, Illinois conveniently located to Allstate Arena, Donald Stephens Convention Center, Harey Caray's Restaurant and Chicago O'Hare International Airport


--
"HELPING YOU IS WHAT I DO"

I Believe in building relationships.
I am here to meet your needs
- to Serve & Protect - Your Investment.

As a Real Estate Consultant I am dedicated to the Real Estate Investor & Home Owner
- who is willing to work for one of the most precious things in the World
- Freedom.

Peter Tarshis

Royal LePage Real Estate
55 St. Clair Ave. West
416.921.1112 x 574 office/pager
416.921.7424 fax
1.800.622.9536 toll-free

416.705.1181 cell/text

See Peter on:
www.PeterTarshis.com
http://petertarshistorontorealtor.blogspot.com/
http://twitter.com/PeterTarshis
www.rlptv.com
www.Linkedin.com
www.torontorealestateboard.com
http://activerain.com/blogs/petertarshistorontorealtor

A referral is a big responsibility...it is also the biggest compliment a client can give me and is never to be taken lightly. I pledge to treat everyone that is referred to me with the utmost level of respect and professionalism.

Thank You for Your Trust.

Buying an Old House! A Money Pit or Gold Mine?

By Peter Tarshis Toronto Realtor

It’s like a love affair; some older homes make your heart skip a beat! It is hard not to fall in love with an older home’s historic unique architecture, gabled roofs, hardwood floors, crown moldings, and antique light fixtures—older homes definitely have their charm.The plastered walls, leaded glass windows, original chandeliers, and oak paneling make an old home as attractive as it can possibly be. If you found your love you should be aware of the following money pitfalls of old houses. You do not want to discover that beneath the surface of your dream home lays a dilapidated wreck.

This article provides you with some valuable tips to help you identify potential problems and some renovation rules, should you decide that this love affair is going to be your Gold Mine.

Foundation
The foundation is the most important aspect of any home especially for older ones. One problem that is common for older homes is called the “sulphate attack”. This can occur as a result of a chemical reaction between the soil and the concrete, which causes the foundation to crack and crumble and that can be very problematic. Another major concern with older homes is that the centre beam of the home can begin to sink. This can result in a sagging roof, bowed walls, and sloping floors. If the old house has a bad foundation then renovating it can be very expensive where the cost can range from several thousand dollars to $50,000 depending on the size of the home. Also, in some cases, one might need to jack up the house to replace the foundation and shore up the centre beam.

Electrical Wiring
When buying an older house, it is very important to find out if there are any problems with the state of the electrical and lighting system. Do the lights flicker? Is the current steady or do the lights fluctuate between bright and dull? Is there adequate lighting in the home? It’s important to have the wiring carefully inspected. Also, many older houses use aluminum wiring, which is cheaper than copper wiring but it is a serious fire hazard. Ensure that you factor the cost of rewiring into your offer price. Also, you should consider whether there are enough outlets in the home to suit the needs of a modern household. Install more outlets in order for you to run a number of devices at once like a television, computer, stove, etc.

Lead Paint
In older homes, lead paint is very common as lead was used as a white pigment in paint until the mid-1950s. If you are planning to repaint the home, call in a professional renovation firm as they know the safety precautions needed to be taken when repainting the house. Children and pregnant women should not be in the home during renovations.

Asbestos
Asbestos is a mineral that makes a very effective fire and heat-resistant material that was discovered to cause lung disease. When the tiny particles of this mineral are inhaled, over a period of years they begin to damage the tissue of the lungs. In old homes, asbestos was used in carpet underlay, textured paints, roofing felt, electrical wiring insulation, acoustic ceiling material and insulation. Getting the house checked for asbestos is very critical.

Galvanized Pipe
Galvanized pipes are known to rust very quickly. Most insurance companies now refuse to cover water damage caused by leaks in a home with galvanized pipes.

Condition of the Older Home
Just like people, years will eventually take a toll on homes as well. An older home may begin to sag and slope, which is why it’s very important to know about the conditions of the house you’re planning on purchasing.

Older homes may be beautiful, but they aren’t designed for modern living without a total update or upgrade. Make sure the house structure can be modified easily to suite a current living style.

For older homes, renovations are a challenge. To determine the price you are willing to pay, add up the estimated costs to renovate the property based on a thorough assessment of the house. Then, subtract that from the home’s market value after renovation. Allow for an additional 5% for cost overruns and unforeseen problems plus inflation.
Preserve the Charm of Your Old House

If you have already fallen in love with this old house, then make sure you follow the golden rules in repairing your dream home and preserve its historic features and value.

The golden rule of remodeling is, “do no harm”. As you update your older home, make sure to preserve its historic details. Reuse existing materials. Keep historic moldings and hardware. Wire gas lamps for electricity. Keep distinctive examples of craftsmanship. Restore marbling, stenciling, and carvings.
Don’t try to undo long-ago renovations. Most buildings change over time, and alterations to your house may have historic significance in their own right.
Whenever possible, repair rather than replace. Don’t throw away that old claw foot bathtub—have it re-glazed. Fix damaged doors, refinish old cabinets and patch cracking plaster.
If historic features cannot be repaired, look for a similar item at an architectural salvage centre, or buy a new item that matches the old in design, colour, texture, and other visual qualities.
And best of all make sure you hire a contractor that shares your passion and understands your love affair with your old house.
Good luck, you may have found your Gold Mine

Is an Open House Worth the Effort?

Open houses require a lot of preparation and are inconvenient to the home occupants and the selling agent. Many agents now refuse to hold open houses, considering them a waste of time and a security threat. And many sellers prefer to open their doors to serious buyers only.

Holding an open house might help you sell your home, but it is not the most important factor to consider. An open house is usually not the major marketing tool that agents rely on when they are trying to sell a property.

Many real estate agents believe that open houses serve more to attract semi-interested prospects rather then serious buyers. Agents admit that few sales traditionally come from open houses. As well, the Internet is also making open houses even less valuable.

But there are agents and homeowners who view open houses as an effective marketing tool that does help with sales.

So is an open house worth the effort?

There are times when an open house is not practical at all, such as if a house is off the beaten path, or in a gated community. Likewise, it might be best to avoid an open house on a shabby listing or one that requires a lot of work. It probably won't get much traffic, and agents will be reluctant to have their name advertised heavily in association with it.

However, an open house can be a valuable opportunity to get feedback about what is and isn’t attractive about a house. But it is not a good idea to hold them too often, as it can send a signal that the house is “market worn” and a tough property to sell.

On the other hand, in a hot sellers market where houses are selling rapidly, there is no need for an open house. If the MLS listing and posting pictures on the internet are already generating enough traffic to help you sell your house an open house is also no longer necessary.

The development of internet listings and other online real estate information is quickly making open houses more of an option, rather than a requirement for selling a home.

Many agents believes that an open house is only worth having if it's done properly and this includes sprucing up the house and its landscaping and advertising it well in advance.

If you’re planning an open house:

Clean like crazy beforehand, preferably with good-smelling organic cleaners that won’t upset anyone’s allergies.
Clear out the clutter, pets, toys and even extra cars from the garage.
Draw back the drapes, clean the windows and remove the screens so the most light shines in.
Mow the lawn, trim the hedges and put some blooming flowers in pots by the doorway.
To increase traffic, try some unusual marketing strategies, like holding your open house during rush hour, or coordinating your open house with others in the neighbourhood.

On Your Way Into the Office - 21 Ways to Pray at Work- Beliefnet.com

On Your Way Into the Office - 21 Ways to Pray at Work- Beliefnet.com

Canada Market Watch – June 2010

Canada's Hot Resale Housing Market Starting to Cool

Home sales activity in Canada came up short of the record for the month of April and new listings continued to climb, according to statistics released by The Canadian Real Estate Association (CREA).

“Many of the sales that would normally have occurred in May were pulled back to April, due to buyers trying to avoid the May 1st transitional implementation date for the HST, as well as new mortgage regulations that came into effect April 19th,” said Ottawa Real Estate Board President Pierre de Varennes. “Buyers knew they would be paying 8% more for all of the service costs associated with a real estate transaction if their closing date was after July 1st, and that it might be more difficult to qualify for financing, so they moved quickly to avoid either situation. In addition, by comparison May 2009 was a record-breaking month as the floodgates opened on pent-up demand following the brief downturn in the market,” he added.

In general the Canadian real estate market is moving towards a balanced market where inventory is increasing well to meet demand. Buyers, sellers and REALTORS® can all relax and enter a sales transaction without pressure.

The easing trend in national sales activity masks a rising trend in a number of major markets. Real estate is local, so buyers and sellers should engage the services of a REALTOR® for knowledge about housing market trends in their market. For sellers, getting specific advice about home values in their local neighbourhood is crucial in a competitive market.

Bank of Canada raising interest rate - June 1 2010

The Bank of Canada raised its benchmark interest rate for the first time since 2007, saying inflation is unfolding as expected and that spillover from the European debt crisis has been limited, while stressing there remains “considerable uncertainty” about an “increasing uneven” global recovery.

With his much anticipated decision to lift the central bank’s overnight rate by one-quarter of a percentage point to 0.5 per cent after more than a year at a record low level, Governor Mark Carney has become the first central banker in the Group of Seven to tighten since the financial crisis and recession began in 2008.
In a statement on the move, however, Mr. Carney and his rate-setting panel sought to emphasize that investors should not necessarily interpret the increase as the first in an uninterrupted series.

``This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending and the uneven global recovery,’’ the central bank said Tuesday. ``Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.’’
The central bank’s statement touched on themes that will no doubt be front-and-centre at the Group of 20 leaders’ meeting in Toronto at the end of June, where Canadian officials have said they will be pushing for continued efforts to smooth out the global imbalances that exacerbated the slump that much of the world is still clawing out of.

``The required rebalancing of global growth has not yet materialized,’’ the bank said, contrasting ``strong momentum’’ in emerging markets with recoveries in economies such as the United States and Japan that remains ``heavily dependent’’ on low interest rates and government spending.

``In general, broad forces of household, bank, and sovereign deleveraging will add to the variability, and temper the pace, of global growth,’’ policy makers said.
While flagging the possibility of ``renewed weakness’’ in Europe, where drastic spending cuts and higher borrowing costs will be the likely result of continent-wide debt problems, so far the effects of the crisis on Canada have been ``limited to a modest fall in commodity prices’’ and somewhat tighter financial conditions, the bank said.

The Canadian economy, which on Monday posted a whopping 6.1-per-cent annualized growth rate for the first quarter – the fastest in more than a decade – is ``unfolding largely as expected,’’ the bank said, led mostly by a hot housing market, higher incomes and a labour-market recovery that have helped fuel consumer spending.

Still, the central bank suggested that household spending and the economy will slow in the coming months as consumers deal with higher borrowing costs and try to limit or reduce their debt loads and as government stimulus spending fades. As a result, an ``anticipated pickup in business investment will be important for a more balanced recovery,’’ the bank said.
Inflation, which the central bank has been watching closely for months, has been in line with policy makers’ projections to exceed 2 per cent this year and reflects a combination of strong domestic demand, slowing wage increases and ``excess supply’’ leftover from the recession.

The central bank also said it is making a technical, yet significant, change to re-establish ``normal functioning’’ of the overnight market, whereby its benchmark will return to halfway between the rate it pays to chartered banks to hold deposits and the amount that it charges private-sector lenders for loans.

Spring Home Maintenance Checklist

Keeping your home in top shape requires year-round care. While each season brings different tasks and challenges for homeowners, spring is an especially important time – it’s when to assess winter wear and prepare for summer.

Many big home repairs start out small but, left unattended, become more costly problems. By taking care of little issues now, you can save yourself a lot of money and stress in the long run. Keeping a list of what needs to be done, and when, can help you to avoid and prevent the most common household problems.

Many of the necessary tasks are probably easy enough for you to take care of yourself. However, if you don’t feel comfortable or don’t have the proper equipment, consider hiring a qualified contractor to help you.

Inspect your roof. Shingles that curl (turn up) and claw (turn down) can make your roof inefficient and susceptible to leaking. Check around vents, skylights and chimneys for leaks and repair as necessary.

Don’t forget to check your roof from the inside too. Look in the attic for any signs of moisture or surface discolouration on the underside of the roof that may point to leakage from above or air leaks coming from your house.

Get a chimney check-up. Have a professional chimney sweeper clean/inspect your active or decorative chimney. Professionals should also check the chimney flue and cap for cracks or leaking.

Clean gutters and drain pipes so leaves won't clog them and be sure they drain away from the house. Drain outside faucets.

Clean siding with a pressure washer to keep mold from growing. Check all wood surfaces for weathering and paint failure. If wood is showing through, sand the immediate area and apply a primer coat before painting. If paint is peeling, scrape loose paint and sand smooth before painting. Replace rotted siding or trim.

Check foundation walls, floors, concrete and masonry for cracking, heaving, or deterioration. If you see large cracks or a significant number of bricks losing their mortar, call a professional.

Spring is also a great time to clean your windows, screens and hardware and replace storm windows with screens. Check your screens for holes or tears first and repair or replace them if needed. Examine putty/caulk lines around exterior windows and doors and ensure weather stripping creates a good seal.

Check all decks, patios, porches, stairs and railings for loose members and deterioration. Open decks and wood fences need to be treated every four to six years, depending on how much exposure they get to sun and rain. If the stain doesn't look like it should, or water has turned some of the wood a dark gray, hire a professional to treat your deck and fence.

Prune landscaping and create good drainage. Shrubs and landscaping help against soil erosion, but should be planted to form a negative grade, which means water will flow away from the house. You don't want growth up against the foundation of the home itself.

Inside the house:

When it’s warm enough outside, turn off your gas fireplace pilot lights where possible.
Carry out the manufacturer’s recommended maintenance for your air conditioning system and ventilation equipment. Be sure to consult your owner’s manual for cleaning instructions or hire a qualified contractor.
Check your smoke, carbon monoxide and security alarms and replace the batteries.
Reopen any valves for outside hose bibs that were shut off last fall.