Durham Region Real Estate Blog

Your bathroom is an important room in the house and should never be underestimated. Often it’s in the smallest room in the house that we get to mke the biggest impact. And bathroom renovations can bolster the saleability of your home. No longer just a place to wash and go, bathroooms can provide sanctuary from the chaos of life. So let’s start with a few – Absolutely Do Not Do items.

1. Carpets. These nasty fibers can hold a multitude of fluids so opt for surfaces that can be wiped clean.

2. Coloured fixtures. Avocado is not back in style! A chocolate brown toilet is not the way to go. Stick with white fixtures and inject your colour elsewhere.

3. Cheap laminate flooring. Some of these products are nothing more than a photograph of wood grain on top of compressed fiber board or chipboard. When you add water they expand. Opt for water-resistant products.

4. Toiletries on display. No one wants to see how many pills and potions you use. Ick! Choose a mix of open and closed storage so your Chanel toiletries will be on display and your unmentionable creams won’t!

5. Wallpaper. Yes, there are papers out now that can handle the humidity levels in your bathroom, but why would you when there are so many great paints on the market? Add drama with great towels or artwork, storage boxes or candles. All these can easily be rearranged or changed to suit your mood.

So what if you have some issues with your lavatory and can’t afford to change the big ticket items? Work with what you’ve got. If you have a gold toilet, tub and sink, go with it! Make them poart of your colour scheme.

Match dominant colours to create a uniform and calming look. Bright colours that compete can create a chaotic mood. Do you have dark brown tiles? Get a luxurious chocolate brown shower curtain in canvas and some brushed nickel accessories for a streamlined hotel look. Keep your eye out for great towels in neutral colours that don’t compete with your bold fixtures. Candles and hand-milled soaps can offer an inexpensive decorative touch.

Before you know it, you’ll have a bathroom to envy whether you are selling or staying put!

If you’ve read or listened to the news at all, you know that the Harmonized Sales Tax (HST) is on it’s way here in Ontario. The provincial government has announced that it intends to combine the eight percent Provincial sales Tax with the five percent federal Good and Services Tax, creating a thirteen percent HST.

The HST is not yet in effect. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010, however there are transition rules in place. The HST will not apply on the purchase price of a resale home, but it will apply to services such as moving costs, legal fees, home inspection fees and Realtor® commissions. The HST will apply to the purchase price of newly constructed home however, the Province is proposing a rebate so that new homes across all price ranges would receive a seventy-five percent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

So it is important to remember that sales of resale residential housing and long-term rentals or residential housing will be exempt for HST purposes, but you will pay HST on the other services related to the sale or purchase of a house (real estate commissions, lawyer fees, moving services, home inspections, etc.)

Have you heard?

Yesterday morning the Finance Minister, Jim Flaherty announced tighter mortgage lending conditions, effective April 19, 2010, with the intent to protect borrrowers from “overborrowing” and improve their ability to manage their debt wisely in the event that interest rates rise.

The key points were as follows:

Must Qualify at 5yr Rate
As of April 10th, to be approved for a CMHC insured mortgage, potential borrowers must be able to service CMHC’s debt service ratio requirements* at the lender’s “posted” 5-yr fixed mortgage rate, regardless of the term of the mortgage they eventually book.  Currently, the qualification, is based on the lenders 3-yr posted fixed rate.

Though rates vary from lender to lender, 5yr mortgage rates are approximately 1% higher than 3yr rates at the present time.

Maximum Home Refinancing Decreased
Homeowners can presently refinance their home to a maximum of 95% per cent of the appraised value of the property.

Under the new legislation the limit will be decreased to 90% of the loan to value ratio.

Minimum Down Payment For Non-Owner-Occupied Property
CMHC insured mortgages for rental/income properties will be limited to 80% of the lower of the purchase price or appraised value of a rental property.  CMHC presently insures up to 95% of the price of a residential property purchased as an investment.

Owner-occupied residential properties with rental income (e.g. duplex) will still be able to be bought with a 5 per cent down payment.

Note that lenders may put these changes into effect at their own discretion before April 19, 2010.

*Gross Debt Service (GDS) ratio — carrying costs of the home, including the mortgage payment, taxes and heating costs, divided by borrower’s income.

GDS should not exceed 32% of gross income.

*Total Debt Service (TDS) ratio — carrying costs of the home plus all other debt payments divided by borrower’s income.

TDS should not exceed 40% of gross income.

Canada’s lending policies have been strong and conservative, unlike those policies in the United States. This is a big part of the reason why we haven’t fallen into a deep recession like the U.S. did.

So, it might be time to start to look for a new home, while you can still qualify at the current, lower three year mortgage rate. And if you’re looking for a great investment property, you may want to start the look now, when you can still finance up to 95%. With some great buys out there in the Durham Region, now is a great time to get into the income property market!

Most of us have a home owners policy, but have you ever done a home inventory? Whether you’re an apartment renter, a high-rise condominium dweller or a home owner, everyone is subject to theft, fire or natural disaster. As an exercise, try to take a mental inventory of just one junk drawer, and then imagine having to do that for your entire home after a fire. You might have an elephantine memory, but trying to remember everything after it’s gone is a monumental task. Getting started is the hardest part. Use these tips to make the most of your efforts.

1. You must count everything. Include any item of value, not just large appliances and electronics. Don’t forget to document toys, the contents of your closets and anything in your kitchen cabinets.

2. Get organized. Taking the time to record serial numbers, collect receipts and take photographs now can save you a lot of time later. Insurance claims are processed more quickly and are more likely to receive full compensation when they are supported with visual evidence of ownership.

3. Schedule a photo shoot. In addition to making a list of items, take pictures of rooms and large or important items. On the back of each photo, make a note of what is shown, its value, make and any serial number or special identifiers.

4. Round up the troops! Enlist the help of the entire family. Assign a room to each family member, or use a camcorder and have each person take turns describing items for the camera.

5. Move it! Conduct a home inventory when you move. As you pack your items for each room, take photographs and note the serial numbers. This way you’ll also have detailed information in the case that something is lost or damaged during the move.

6. Keep duplicates. Make a copy of your inventory to keep in a fire-proof safe at home, but most importantly, keep another copy in a safe-deposit box, at your office or any safe location away from your home.

7. Consider extra coverage. If you have special items such as expensive jewelry, fine art or rare antique collections, you may wish to purchase extra coverage (a rider or endorsement) to protect these items.

There is a variety of personal finance software packages that include home inventory features and a number of free or inexpensive programs are available for download online. Just make sure that you burn a copy of the file to CD for off-site storage.  Check out www.mycroftcomputing.com/eiown.html or www.knowyourstuff.org

Get started today! Don’t be daunted by accumulated items – a partial inventory is better than nothing! And remember to update your inventory list annually, as well as each time you make a major purchase.

Is your home causing you to suffer from sniffles and a sore throat? Dust mites, mold, cockroaches and pets can wreak havoc on those who suffer from allergies.

Dust mites tend to dwell in the bedroom and feed on the shed skin of us and our pets. Then the pets themselves can be a big cause of the sniffles. Proteins from dander – the skin flakes that you dog or cat sheds – cause allergic reactions in many of us. Mold can be found in any area of your home with high humidity or where water accumulates. Kitchens, bathrooms and basements are the best examples of such rooms. Mold thrives around cracks where water seeps in; around leaks in hoses, dishwashers and toilets; and under carpets that are frequently exposed to moisture. And then there are the nasty cockroaches, though they are not what we are allergic too, it’s their droppings that cause the reaction. Unfortunately, the protein in their dung is a primary trigger of allergic reactions and asthma symptoms.

So how do we combat all these allergens and make our homes allergy-proof? Well, it will take a little more than a spring cleaning and you might want to where a mask to cut down on the allergens that you inhale.

In the bedrooms, wash your sheets weekly in very hot water (130°F). Wash your other bedding regularly in very hot water and dry in a hot air dryer at least every eight weeks. Vacuum your box spring and mattress and encase each in an anti-allergen covering and wipe off with a clean, damp cloth. Dust and vacuum all surfaces weekly and keep your pets out of your bedroom.

Your kitchen can be a hot spot of allergens. Clean the inside and outside of your fridge monthly. Clean crumbs, grease and water from the stove, flooring and countertops regularly. Empty trash cans daily and clean them on a regular basis. Clean the area under your sink, keeping it dry and reducing clutter. Dispose of any paper grocery bags as they are a favorite hiding place for roaches. Keep food containers tightly sealed and wash and dry dishes as soon as possible after eating.

In your living and dining rooms make sure to vacuum at least once a week (more often if you have pets) and if possible, use a vacuum with a HEPA filter in order to keep fewer allergens from circulating into the air. Clean light fixtures and fans monthly, using a clean, damp cloth. Vacuum upholstered furniture regularly and steam clean furniture and carpets at least once a year. Keep your fireplace clean and maintained and don’t store mold-prone firewood indoors.

Bathrooms have a high humidity level, so take extra care here. Clean showers and bathtubs weekly, making sure to clear out soap scum in the process. Wipe up water around showers and bathtubs after every shower and keep the shower door or curtain open during the day so that the walls will dry. Use an exhaust fan or keep the windows open during showers to lower humidity in the room. Wash towels and bath mats often. And don’t forget to regularly clean the area under the sink and repair any leaks immediately.

Around the house, be sure to clean often. Allow natural sunshine in to reduce mold growth. Seal any cracks around the walls, floors or cabinets to keep the insects out. Use window coverings that you can easily clean and then make sure to clean them regularly.

If you take care of your ventilation, you’ll be one step closer to an allergy-free home. Clean the ductwork regularly to prevent allergens from building up in your central heating and air systems. And don’t forget to clean or change the cooling and heating system filters monthly.

You’ll be healthier in your clean home and when it comes time to sell it, you’ll have a home that is ready for market. Buyers love a clean home so you’ll be one step closer to selling your home for top dollar!

If you have read my past blogs, you know that I am opposed to the new Harmonized Sales Tax (HST), and I did try to get as many people as possible to write all the politicians they could, in order to have the new tax defeated.  This didn’t work and it looks like we are going to have the new tax, like it or not. So let’s embrace the new tax!

The Ontario provincial government has announced that it intends to combine the eight percent Provincial Sales Tax wit the five percent federal Goods and Services Tax, creating a thirteen percent HST. The tax is not yet in effect, but will start on July 1, 2010. While the new tax will not apply to the purchase price of a re-sale home, it will apply to services such as moving costs, legal fees, home inspection fees and Realtor® commissions.

There are transitional rules that will apply to HST and Realtor® commissions. The HST will general apply to services, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90% or more of the services are performed before July 1, 2010, the HST will not apply.

For example, if I am selling your home and list it on June 1, 2010, receive an offer on June 15, 2010 and the transaction closes on July 2, 2010 then, since more than 90% of my services were performed before July 1, 2010, only GST will apply to the commission at that time.

In another example, let’s say that my services to sell your home are performed from May 1, 2010 to July 31, 2010 with the sale of your home closing on July 31, 201o. Since 2/3 of my services were performed from May 1, 2010 to June 30, 2010, only 1/3 of my services were performed after the July 1, 2010 HST start date. You would be charged GST on 2/3 of the commission and HST on 1/3 of the commission.

Sure, the new rules are a little confusing, but we’ll figure it out. You should keep in mind that while my topic covers how HST will affect home sales, it will also affect all business owners. Keep in mind that if you have a GST number and are able to get GST rebates, you may want to hold off on large purchases that are currently subject to 8% PST. If you buy the item after the HST comes into effect, you can apply for the HST rebate.

So, we saw the third best year in history for sales within the Durham Region.   Statistics showed 9162 sales of single family homes in 2009, a 7% increase over 8563 in 2008 with the highest year being 2007 with 9978 sales.  Sales for the month of December came in at 507 which was down 27% from November’s 695, but still a very impressive number. Year over year average prices gained by 1.8% to $278,246 from $273,370 in 2008 even though the average price of a home in Durham Region in December was $286,724.  The total number of active listings continued to drop in 2009 to 15109, 18.6% lower than the18570 in 2008.  The resale housing market was slow at the beginning of the year but kept building to record sales in July, Sept., Oct. and Dec.  I predict that 2010 will be a positive year for real estate sales and we should see moderate growth in this important sector of our economy.

You have been told, over and over, that kitchens and bathrooms sell houses. And it’s true! You need to make the most of what you’ve got and keep it looking great.

So, when is the last time you looked up at your bathroom ceiling? Are you feeling brave? Get up right now, and go have a look. It’s o.k., this blog will still be here when you get back! How was it? There’s a pretty good chance that you’ll find peeling paint and mould growth. Moisture is the reason why – moisture and inaccessibility. Most of us aren’t tall enough to wipe the ceiling dry after a shower. And putting a coat of latex paint isn’t going to help your problem. So what are you to do?

Peeling bathroom ceiling paint is common. You need to begin by scraping. Try using a four inch wide putty knife for this job. Lift up any loose edges and get that old paint popping right off the ceiling. Be ruthless and eliminate everything that’s weak. And don’t worry about damaging the drywall because you’ll be filling the whole area later.

Once you’ve removed all the loose paint, sand the area to further refine the ceiling. You could tackle this job by hand, but an electric quarter-sheet finishing sander is an inexpensive power tool that does a much more thorough job. Put a piece of 120-grit sandpaper in the machine then go over all regions of the ceiling that include mould or area of damaged paint. Sanding removes roughness, though it will also highlight areas you thought were sound but actually need more scraping. Keep your putty knife handy!

Now you’re ready to fill the area. It may look like only a small ridge, but it’s more than paint can cover. Genuine drywall joint compound is the best stuff to use here, because it’s smooth and fine grained. Use your putty knife to apply a skim coat over the scraped areas, extending out several inches past the point where sound paint begins. Aim to apply slightly more depth of compound than necessary, then sand the area flush with the surrounding ceiling by hand. An abrasive sanding sponge is the ideal tool to use for this application.

Now you are almost ready for paint, but don’t get out the roller just yet. You much kill the remaining mould spores. If you don’t, the mould could (likely will) return sooner rather than later. You could use a solution of bleach and water for this task or search your local hardware store for a non-toxic product. Spritz it on and let it dry.

Take just two more steps to keep the mould from re-emerging. The first is coating the filled-and-killed surface with a stain-blocking primer. Look for one that is especially rated to hide mould stains. The second is to choose your paint wisely. Look for a mould resistant kitchen and bathroom paint. It will include compounds that prevent new mould from regrowing, even in the damp and challenging conditions so common on our bathroom ceilings.

So, it might not be a pretty job, but it is one that is well worth the effort, both now and when you decide it’s time to sell!

So the real estate market is booming and it seems that not much else is! In 2009 there has been a 20% increase in the average purchase price of a home in Canada. There is excessive demand in the market and the government is starting to worry that home buyers are taking on too much debt.

The government says they are going to keep a close eye on the market and the debt load of Canadians to see if we are getting ourselves into too much trouble. There is talk they will change the laws and you’ll need to have  a larger downpayment before you can qualify for your mortgage. They may also reduce the maximum amortization period from the current 35 year maximum. A balance will need to be maintained to stop people from being overextended, while not increasing the rates for the rest of us.

So, what does all this mean for you? Well, don’t panic. You’ll be fine. If you have an existing mortgage, check on your interest rate. Are you locked in or do you have a variable rate mortgage? Perhaps you can refinance to lower your interest rate. If you can, then take advantage of the lower rate to shorten your amortization period. Maintain the same payments you are currently making and chip away at the principal owed. You could be mortgage free years sooner!

If you are thinking about buying your first house, make sure you don’t overextend yourself based on very low interest rates and long amortization periods. You don’t want to find yourself in a bind when it comes time to renew your mortgage and interest rates have increased. Ask your mortgage broker or financial adviser to educate you on what the difference in your payments would be if the interest rates were 1% or 2% higher than they are now. Could you still afford that mortgage?

Most mortgages are arranged using conservative numbers, so don’t worry. Just ask plenty of questions and do business with people you can trust. Email me with any questions you have and I’ll give you as much information as I can.

In the Durham Region there were 695 sales of single family homes in November which is down 19% from the 860 record sales in October, but up a whopping 70% from the 409 sales in November, 2008! Not bad at all. One year ago many people would have bet that the market would be back up tot the levels we saw in November 2004 to 2007 which averaged 661. At $286,497, average prices dipped slightly from October but did increase 6.5% from the $268,902 we saw in November, 2008.

The number of listings on the MLS® system have dropped again this month, to 1,593 from 1,753 last month and 44% less than the 2,838 of November, 2008.  This slumps is reflective of a seller’s market!

So what will the final numbers be for 2009? Tune here to find out and in the meantime, have a fantastic Christmas!!