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PACKING UP AND MOVING
It is only when you are ready to move that you fully appreciate the massive accumulation of personal effects, Big screen T.V., home gym equipment, computers and the list goes on. It’s time to call in the professionals. From the stories I hear, and there have been many, I suggest that you do not go with the lowest price or the cash deal. For example if you chose a cash deal, how would you handle it if the driver had an accident and your property was damaged or destroyed? Is there insurance? To make the right choice, here are a few suggestions:
- Get a referral from a family member or friend;
- Ask your Realtor for a referral;
- Once you have a name, check with the Better Business Bureau;
- Ask the company representative to come to your home - get a quote in writing and do not be afraid to ask for a discount;
- Does the quote include loading and unloading? How many people will be doing the job?
- Consider moving mid-month, when rates are cheaper;
- What liability coverage does the moving company carry?
- Keep all receipts.
Some moves can be claimed on your Income Tax - check with your accountant.
Update on CMHC Rates Effective immediately CMHC reduced residential mortgage insurance premiums for first time Buyers who have less than 10% of a down payment from 3.25% to 2.75%.
For more information, go to the CMHC website at www.CMHC.com.
Please call or e-mail me if you have any questions with regards to your move.
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TIPS ON MOVING WITH CHILDREN
Moving with young children can be both unsettling and exciting. If you approach the move by including the children in the process it will help ease the anxiety they feel about losing touch with old friends, fitting in at a new school and making new friends.
When looking for a home with your agent, or on the internet, let your children participate by reviewing the virtual tours of the homes of interest. Discuss with them the pros and cons. Why you prefer one over another. Ask them for feedback. Consider the time spent as educational. Your children will be buying their own home one day.
Have your children get involved in packing. Discuss with them the advantages of giving away toys or clothes they no longer use, to underprivileged children. Drive them to the donation center. Allow them to hand in the donations. Giving is a great feeling.
Include your children in decorating decisions for their new room(s).
Drive the children around the neighborhood and point out their favorite restaurants and stores. This will help them feel at home.
Introduce yourself and your children to the new neighbors. Invite the neighbors’ children over to get acquainted as soon as possible.
Buying a new home can and will be exciting when we all work together.
Please call or e-mail me if you have any questions with regard to your move. |
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FIRST TIME BUYERS
As first time buyers, most of you are not prepared for the closing costs associated with the purchase of your first home. Let's take a look at some of the closing expenses, assuming that the closing is October 1 with a purchase price of $350,000.00 and the property is located in the City of Toronto.
Lawyers Fees - Fees can range between $500.00 to $700.00 + GST and should include certifying title to the financial institution who is providing the mortgage funds.
Disbursements - Disbursements are over and above the above- mentioned fee and are based on a number of factors.
For example:
a) Search of Title: If the property is in the Registry System, a 40 year search is required to certify title; if the property is on the Land Title System only a search from the current owner forward is required; provided the Land Register has Certified Title absolutely.
b) Clearance letters: Must be obtained from hydro, gas and water departments to name a few. This is to ensure there are no liens registered against the property. There is a charge for each letter. The approximate costs are - (fees are current as of October, 2004.)
| Tax Certificate |
|
$ 65.00 |
| Building Zoning Certificate |
|
$105.00 |
| Water Certificate |
|
$25.00 |
| Gas |
|
$16.05 |
c)Title Insurance: Most Financial Institutions require a survey if the Seller does not have one, your solicitor can obtain Title Insurance which costs approximately $216.00 for a purchase policy and if there is a first mortgage there is an additional charge of $54.00 for a Lender=s Policy. Even if you have a Survey it may be in your best interest to obtain Title Insurance vs. the cost of clearance letters. Discuss this with your Solicitor.
d) Other Disbursements:
| Cost to register Deed |
|
$70.70 |
| Cost to register Mortgage |
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$70.70 |
You should also budget approximately $100.00 for other miscellaneous expenses.
Land Transfer Tax - If the Purchase Price is less than $250,000.00, the tax is 1% less $275.00 or $2,225.00. If the Purchase Price is $250,000.00 to $400,000.00 the tax is 1.5% less $1,525.00. For example: $350,000.00 would be $3,725.00.
Realty Taxes - Most taxes are payable quarterly. Therefore you will be responsible for 3 months of taxes: taxes $2,200.00 per year 365 = $6.03 per day x 92 days = $554.76
Water Bill - The property could be on a flat rate, which is billed every six months. If the Seller paid the June to December water bill of $200.00 (184 days), on closing you would be responsible for 92 days or $100.82. The home could also be billed based on usage. If this is the case, the meter will be read on closing and you will receive a bill starting from the date of closing.
To re-cap:
| Lawyer Fees + GST |
|
Approx $ 650.00 |
| Land Transfer Tax |
|
$ 3,725.00 |
| Realty Taxes |
|
$ 554.76 |
| Water Bill |
|
$ 100.28 |
| Search Of Title |
|
$ 100.00 |
| Clearance Letter Disbursements |
|
Approx $ 211.05 |
| Registry Mortgage and Deed |
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$ 141.40 |
| Miscellaneous |
|
$ 100.00 |
| Title Insurance |
|
(Purchase Policy) $ 216.00 |
| |
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(Lender Policy) $ 54.00 |
| Total |
|
$5,852.49 |
Armed with this information you can now go out looking for a home, knowing what you can afford and how much you really have for a down payment.
Please call or e-mail me if you have any questions regarding the purchase of your home. |
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WHY HAVE A HOME INSPECTION?
Buying a home is one of the biggest investments most people will make in their lifetime. As your Agent, I want to ensure you enjoy your home for years to come. I will therefore suggest that your offer to purchase be subject to a home inspection. This will require you to retain a Certified Home Inspector, who will go through the home and complete a comprehensive inspection report. A typical inspection includes: checking the structure, heating and air conditioning systems, plumbing, including water pressure, electrical, looking for knob and tube wiring in older homes, windows and the foundation.
The inspection will take approximately 3 hours based on the size of the home and cost approximately $350.00 to $400.00 and will be money well spent. It will give you the opportunity to see, first hand, any problems that may exist. As important are the objective comments that the Inspector will make, as to the condition of each item checked. You will also be provided with valuable tips for future maintenance or upgrades, so don't forget your pen and paper. At the completion of the inspection, the Inspector will sit with you and provide an overall summary of his/her findings, together with a detailed written report, which you can refer to in the future.
Consider having a home inspection on the home you are living in, if at the time of purchase, one was not done. You will be amazed at the energy saving tips and maintenance suggestions that can save you costly repairs in the future.
I am with you every step of the way.
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CONSIDER THE FOLLOWING BEFORE YOU BUY A CONDOMINIUM
1. Decide where you want to live and visit the community at different times of the day and night. Check the environment. Is it what you want and where you want to be? What is the noise level? Is there a mix of younger and older people? Is the area diverse and does it meet your lifestyle ¡V walking paths, restaurants, cafes, galleries and parks? Are they conveniently located but do not interfere with your quiet enjoyment?
2. Many condominium developers offer alternative floor plans, trading, for example, a bedroom for a den. If purchasing an existing condominium do not assume you can make changes to the interior. Most condominium By-Laws require Board approval before making structural changes.
3. Be prepared to downsize; not only in floor space but furniture. You may have to give up the dining table that sits 12 for one that sits 8. Ensure that the space is functional for your lifestyle and consider, at all times, re-sale. Two bedrooms and a den are very much in demand for people who are downsizing. While a two bedroom unit allows for an overnight guest, and can also be used as an office or den at other times.
4. Are the amenities offered by the Condominium Corporation those that you would use? It is nice to show your friends the huge pool, spacious party room and fitness centre but remember, amenities cost money to maintain and will have a direct impact on the monthly maintenance fees, now and in the future.
5. Does the location of the unit in the building meet not only today¡¦s requirements but future requirements? If your health or age requires assistance now or in the future, is the layout of the unit conducive to having live-in help? How far is the unit from the elevator? Will the hallways in the unit allow for a walker or other devices?
The freedom and lifestyle that condominium living offers will amaze you. No more repairs, cutting grass or shovelling. These are things of the past. And when it comes time to take a vacation, just cancel the paper, lock the door and enjoy!!
Having done your homework I will find you a condominium you will enjoy for years to come. |
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Thinking about putting your house on the market this spring?
Why wait til spring? Do It Now!
In a typical January / February market there is a shortage of product. Homes that are put on the market at this time have a better chance of selling at full list or close to it, based on the law of ¡¥Supply and Demand¡¦.
Some people think that a house shows better in the spring, it may, but there¡¦s nothing like walking out of the cold into an Open House to the smell of hot apple cider or the glow of a lit fireplace. The perspective Buyers will immediately feel at home and can envision living there.
Call me, and you can be in your new home before Spring. |
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Winter will shortly be upon us and it's time to tune up your house.
Why not think about energy conservation and save money at the same time.
Here are a few pointers to help reduce energy consumption:
- When leaving the room, turn off the lights;
- Buy energy efficient lights and bulbs, they cost a little more but exceed the life span of the standard bulb;
- Run your dishwasher, washer and dryer with a full load;
- Old toilets consume more than 3 times the water of a newer toilet. There is a program in Metro Toronto which subsidizes owners as much as $100.00 to offset the cost of replacing your toilet with a city recommended six-litre model;
- Replace your shower heads with a new, water efficient head;
- Change the filters on your furnace and dryer;
- Check the water temperature on your hot water heater, it may be that you can reduce temperature and still have the water needed at peak periods;
- Does your hot water heater feel warm to the touch - it may be losing heat - wrap it with an insulating fiberglass blanket but do not cover the gas unit, control or air flow;
- Add weatherstripping to all windows and doors; and
- Consider putting your outdoor lights on sensors.
These are just a few points that will help you save cost and, conserve energy.
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The Cost & Need to Replace Oil Tanks
Did you know that the Insurance industry implemented new regulations in 2001 which requires home owners with oil heating to have a basic inspection of their heating system by May 2004, as well as a comprehensive inspection by a certified oil burner technician by May 2007?
The Insurance companies are stringently enforcing the provisions in your policy that requires replacement of inside oil tanks after 25 years and outside tanks after 15 years.
The cost of installing a new 900 litre tank and removing the old one, is approximately $1,000 to $1,300. This cost should be considered when purchasing a home where the heat source is oil.
For more information on Heating Inspections and Oil Tank Replacement, contact
Technical Standards & Safety Authority at, 416-325-2000 or visit www.tssa.org. |
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An Incentive Program that has been around for years (1992) is the Home Buyer’s Plan
(HBP), which allows RRSP holders to use their plan to purchase a home. Until 1999 HBP could only be used once in a lifetime.
Did you know that rules have changed since 1999 the Home Buyer’s Plan can be used by a Buyer more than once provided certain conditions are followed; all prior withdrawals must be repaid and the buyer must not have owned a home for five years before the new withdrawal (there are exceptions for those with disabilities).
For individuals who have sold their home for financial or personal reasons they can now get back into the market using their RRSP savings. A Buyer can borrow up to $20,000.00 from their RRSP towards the purchase of a home (for two people that is a maximum of $40,000.00), however the home must be purchased no later than October 1st of the year following the withdrawal. It must be repaid in annual payments over not more than a 15 year period, commencing no later than two years following the withdrawal.
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Did you know Ontario New Home Warranty Program has doubled
the deposit protection for Buyers of new freehold homes should the Builder fail to close or complete construction, from $ 20,000 to $ 40,000. There is no change to deposit coverage for purchase of new Condos, the deposit remains at $ 20,000, as Buyers are protected by the trust and excess deposit insurance provisions of the Condominium Act 1998 for deposits over that amount. |
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Thinking of buying a cottage or rural property.
consider the following issues and discuss them with your Realtor:
Type of sewage disposal system:
Is the property serviced by the municipality or a septic tank and tile bed. If its a septic system – request that the seller advise if they encountered leakage or overflow; when was the last time the tank was pumped; obtain a copy of the permit issued by the relevant municipality and/or health department.
Water Source:
Water is something we cannot do without – you will find that out the next time the well goes dry – if you do your homework this should not happen. Bring in a contractor to provide a report on the water flow rate – is it sufficient for your needs? How many people will you have at your home on a regular basis? Will the water source provide adequate water pressure? What is the quality of the water? Have it tested, not once but two or three times within a month, to ensure the quality is consistent.
Zoning:
Can you use the property year round? Is it located in an environmentally protected or sensitive area? Is the zoning mixed, such as farming / residential. You could wake up a year from now to the smell of a barn.
Survey:
“Up to date survey” is the key phase – a lot can happen over five or ten years, such as new fences, additions, etc. A survey provides the lot boundaries, locations of all structures and shows rights - of - way and or easements. Boundary disputes are as old as civilization and a sure way to have neighbors turn against one another. A survey may not be cheap on a rural property, but worth every penny for peace of mind if a dispute arises.
Waterfront Properties:
Does the Seller own the land to the edge of the water or is there a 66 foot road allowance along the shoreline? The fact that its been used exclusively does not give you ownership – only a deed will do that. Therefore, ensure that if the dock or boat house is located on a road allowance there a permit and for how long and at what cost, can use be continue?
Just a sample of the questions which you should be asking.
I’m with you every step of the way.
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Adding Value to Your Home.
You often hear the saying ¡§In order to make money, you have to spend money¡¨.
One of the biggest investments we make is the purchase of a home. When selling we want the maximum return on our investment. In order to achieve this, you must be able to evaluate the asset to determine if improvements will increase its value.
With paper in hand go through your home. The chart below will be helpful in determining where your dollar is best spent. Don¡¦t forget the exterior, a coat of paint, landscaping or simply cutting back bushes and planting flowers can make the difference. First impressions are very powerful and the curb appeal can make the difference between a Buyer looking forward to entering your home or deciding it¡¦s not for them.
Always think ¡§Re-Sale¡¨ even if your planning on staying in the property for the next few years. Renovations can be an investment, but should be done in neutral tones and classic low-key design.
| Home renovations |
| Item |
% return on investment |
| Kitchen |
80% |
| Bath |
80% |
| A/C |
80% |
| 1 Car garage |
80% |
| 2 Car garage |
80% |
| Additions |
60%-75% |
| Siding S&F |
50%-75% |
| Basement |
60% |
| Windows |
60% |
| Decks |
50% |
| Gas fireplace |
50% |
| Pool |
25% |
Sources: Canada Mortgage and Housing
Corporation, 2002 and The Globe and Mail
As you can see, renovations such as kitchens and bathrooms have a great rate of return and I can assure you it's one of the first things Buyers look at.
I look forward to receiving your feedback on this and future topics, Email or give me a call.
I am with you every step of the way!
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Getting Your Home Ready For Sale
As the beauty of the summer garden fades and we move into fall, it’s time to showcase the colors of autumn inside. Spending a few hundred dollars may result in getting several thousands more on an offer. Here are some inexpensive and easy ways to beautify your home:
•Replace your throw pillows with new fall colors like orange, yellow and rust.
•Purchase vases in colors to match the new throw pillows. Put a flower or two in them. Sunflowers are amazing as they give a warm feeling to any room.
•Buy new fluffy bath and hand towels, and a new shower curtain. Make sure to re-caulk the tub and shower for a clean look.
•Lighting is very important as this time of year it gets dark earlier. Use lamps to show the room in its best light. Consider buying wall sconces for a warm lighting effect.
• If you have a fireplace, turn it on. A buyer can imagine sitting beside it on a cold winter day. If you really want to make a proposed purchaser feel at home put apple cider on the stove.
•Remove dated carpet and replace it with sisal rugs or leave the floors bare.
•Open all shutters and window coverings. Remember- light, light and more light.
•And do a “spring cleaning” in the fall. Your cupboards, drawers, etc. will be looked in. Buyers want to know how much storage space they will have.
For more tips I would be pleased to meet with you to provide further suggestions.
“I’m with you every step of the way”
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