Real Estate 101

Spring fever - Aaahhhhh!

2011-04-15T08:58:00.000-07:00

Spring is officially here! We are heading into the biggest home buying season of the year, and if you are thinking of buying a New (to you) home, it is safe to say that it will be your single most important investment you can make. It is a known fact that we all pay for the space we live in, we either pay rent or we pay the actual living costs, like mortgage, utilities, maintenance, etc. whether you are buying a single family home for yourself and your family, or a multifamily home for you to live in and rent out part to help cover some of your living costs, or as an investment, there are Costs involved in Buying a property.

Here are some of the Standard Costs involved:

Mortgage Costs....Make sure you know the range of payment schedules (monthly, bi-weekly, weekly) varying amortizations and terms...ask your Mortgage Broker (Bank) to provide a printout to keep handy when "home buyer stars" are blinding your eyes. Other mortgage costs to keep in mind are the interest rate adjustments (these can be avoided by lining up your closing date exactly one month prior to your 1st mortgage payment)...and before you agree to it, compare it to a "term Life Insurance" policy, which may be a better deal.

Insurance....Mortgage Insurance is mandatory with 5% down, and usually required by lenders with 20% or less down payment. this is generally added to your mortgage payment and thus will increase your monthly payment.

Home Inspection....This is an absolute must for re-sale homes. The average cost runs about $100.00 per hour (2 - 2 1/2 hours average), always ask for a quote.

Survey (Certificate of Location)....if one is not already available, your lender may require one so try to negotiate this with your mortgage, or plan on spending $750.00 - $1500.00.

Legal Costs and Disbursements....This varies depending on where you live, but plan on spending $1500.00 to $2.500.00. It is a good idea to get quotes from a few lawyers Optional Title Insurance covers survey issues and undischarged mortgages relating to previous owners. this cost ranges from $200.00 to $300.00.

Property Appraisal...This may be required by your lender, but remember this amount is not the same as your purchase price so don't be surprised if there is a difference. this can be $150.00 to $200.00.

Home Insurance....This is often overlooked, so be sure to get at least two quotes, and ask about separate riders for things such as Jewelery, antiques, bicycles etc.

Vendor Reimbursements......This is the payout to the vendor for prepaid items such as taxes and fuel that are paid in advance.

Land Transfer Tax.....Loathed by most buyers, this tax may be levied in your area, but there could be reductions for 1st time buyers or seniors.

Repairs.....This includes any repairs that you know must be done, such as re-shingling the roof, and for redecoration to your personal preferences to make it Your Home.

Replacements....Curtains, carpets, rugs, may or may not go with your furniture.

Condo Costs.....these can include a parking spot, monthly condo maintenance fees.

Moving....Unless you have friends, who adore you and have trucks, get at least 2 estimates from"legitimate" movers - I have heard way to many horror stories of "moving costs".

It takes a little work, but knowing the costs saves you from the "sticker shock" of any unavoidable costs of acquiring your new home.

Buying Recreational Property in Winter

2010-12-09T11:29:00.000-08:00

Is a cottage or recreational property on your wish list? Demand for summer cottages or year-round vacation homes has increased over the years. What was once a relatively low cost alternative to an annual summer vacation has now become a significant financial investment.

Generally, there are three primary factors that drive the demand - and price - for a recreational property:

+ The commute time / distance from home
+ Proximity to leisure activities (waterfront in summer/ski hills in winter or both!)
+ Accessibility to property year round.

As you can expect, the cottage that can be used in winter as well as summer has the greatest usage and appeal, and that usually translates into a higher asking price. However, although the price may be higher, a year-round property usually offers the best opportunity to increase in value over time, as well as more potential for rental income.

If you are considering a year-round property versus a summer cottage, winter can be an ideal time to view the property. It will give you an idea of how long it will take to get there, how accessible the roads are in challenging weather. Viewing the cottage in winter also allows you to see the heating system in action. Wood stoves and inserts do a far better job of heating a space than an open fireplace, but only the hardiest individuals would find them adequate to meet all the demands of a cold Canadian winter. If there is no back up heating system, either electric baseboards or a furnace, you will want to allow for the expense of installing one as part of your budget. Also, if you plan on adding baseboard heaters, they draw a lot of power and you will need to be sure the existing wiring has the capacity to run them.

One area of caution for winter viewings: If outside improvements such as docks, decks and building features such as the roof are obstructed by snow, you should be prepared to clear them if possible, and/or add an appropriate condition to your offer to assure that they are in serviceable condition.

The best news about viewing a recreational property in the winter is there are usually less buyers on the scene to compete with your offer.....so don't sit back and wait for summer to roll around again!

Contact me for further assistance, and remember, I have Realtor contacts all over the world.

Investments - Bed & Breakfasts

2010-11-10T10:11:00.000-08:00

I am often asked, "How is Real Estate?" My usual answer, is related to the Niagara market, and it is now and has been for the past number of years, is "The Real Estate Market is good!" Niagara, after all, is in one of the Premiere areas of the world to live in, taking into account climate, location, economics, and quality of life.
Now I may be a bit biased, but remember, I chose to live in Niagara, having moved here myself, some 12 years ago. Granted, one, or may I say three of my main reasons I relocated were to be closer to my children, who had left home for higher education, and one of the things they learned was that career opportunities were better elsewhere than where we called home. But, as many who look to relocate when they are faced with an empty nest, look for a place close to their offspring, then climate, location, economics and quality of life. I will admit that climate was one of my main concerns, having spent all of my life, up to 12 years ago, living and working in Northern Ontario, which I dearly loved. However, nothing stays the same, and the absence of family caused me to focus on my future. Thus searching for Location, Climate, Economy, and quality of life, as well as the proximity of my children, I settled on the Niagara Region. It had all the things I was looking for, yet it wasn't the big city with the problems that presents (being a small town boy, rush hour and non friendly people were not on my list of "wants".
Niagara Region is made up of many municipalities, each of which offers it own unique advantages, yet sharing location, climate, economy and quality of life.
The Niagara Region is bordered by Lake Ontario, Lake Erie, the Niagara River, the Welland Canal, is home to the Niagara Escarpment, which contributes to not only the beauty of the area, but the climate, making it almost tropical (in a north american way). The Region is abundant in agriculture and green space, with farms, orchards, vineyards throughout, easy accessibility to all the municipalities ( and improving with the now promised local intercity transit, and the introduction of the Go Transit System to the Region, now linking us to areas as far away as Barrie in the North and Oshawa in the East, and expanding further as we speak). Local industry and initiatives are abundant as the inventiveness and opportunities are endless, from the traditional agriculture, manufacturing, transportation to the newer high tech, service, tourist and hospitality industries thrive. We have an abundance of Golf Courses, for all abilities, recreational facilities, walking, hiking and biking trails, an of course the mighty Niagara Falls Tourist attraction which now includes two World class Casinos.
All of this is pointing to the Niagara Region becoming not only a great place to raise a family, but a great place to retire to!
And, if you are not quite ready to retire, then operating a Bed and Breakfast, may just be your "cup of tea" so to speak. Practically every municipality in the Region is home to, or has the potential for Bed and Breakfast operations. Niagara Falls, Niagara on the Lake, St. Catharines, Port Dalhousie, Welland, Port Colbourne, Fort Erie, Grimsby, Jordon, Beamsville are all charming places that people enjoy visiting, and a Bed and Breakfast is fast becoming an alternative to Motel 6 and the Hiatt's presently operating. Featuring from One to Six or more charming rooms, with character and charm are enticing more and more travellers, and the internet is the one main media that Bed and Breakfasts seem to thrive on.
There is a constant turnover in these small independent businesses, primarily due to age of the owners that make these businesses an ideal possibility for those looking for a Semi-Retirement occupation that still allows time to travel in the off season.
If this sounds like an interesting possibility for you, I would be pleased to offer my assistance in searching for the right opportunity for you. After all, "Helping People Find Homes" is my motto, and I would be pleased to help you find yours. Why not end me a note, and let us get the conversation started.......

Realtors and HST on Collision course!

2009-12-09T09:22:00.000-08:00

Although organized real estate is still working to derail it, the HST train seems to be heading straight for us and unlikely to be knocked off track. If the Harmonized Sales Tax (HST) takes effect in July 2010 as scheduled, it will impact the real estate industry.

As far as real estate is concerned, the tax will apply to many previously tax-free services, including: home inspection fees, real estate commissions and fees, legal fees, home appraisals, moving costs AND mandatory home energy audits. The Ontario Real Estate Association estimates that the HST will add almost $1500.00 in tax to the purchase of an existing home!

From a personal point of view, this is an obvious TAX GRAB by the McGuinty government. It is becoming clear to me that all levels of government, from the municipal and school boards, to the provincial and federal levels, that those elected (note that I did not use the term Representatives - as it has been a while since I felt Represented), have the belief that the well of money for them to dole out on all sorts of projects and FAVOURS, is unlimited, due to the APATHY of the citizens. The elected people where I live, poopoo any idea of budgeting, with the excuse that THEY know what is best, even if the "people" don't agree.

I see more and more cynicism towards government and politicians than ever before....it is almost as if people have no faith in the power of their vote any longer, and with the influence the Media has in our lives, I am tending to agree.

The Realtors of Ontario are raging an intense battle over the HST issue, and have the ears of the two leaders of the opposition Ontario parties, (although what they will say if elected is questionable), and are prepared to fight with their last breaths.

May I suggest to you, join this fight, and reclaim your right to be heard on matters such as this. Take a moment to tell your elected people that the well is drying up, and that more thought and consideration is needed from them, in regard to their reckless spending habits. More discipline is needed, more compassion is needed, more understanding of how hard it is to earn a dollar today, and how much it hurts us to see such monumental waste going on with our tax dollars. Too many are getting rich from our taxes, and this is not what was intended.

The cost of living is going up faster for the lower and middle income people, and it is time for those elected to show some compassion, understanding and decency in representing us.

Talk to your friends and family, ask them to add their voice to the growing sound of those discouraged with the direction of government today.

I hope the next post to this blog will have more to deal with actual buying and selling of homes.

Buying in the US

2009-11-14T06:56:00.000-08:00

I recently came across this video that deals with buying property in the US. It is an interesting discussion for those contemplating buying a winter home for personal use or for investment.

http://money.ca.msn.com/video/?cp-documentid=1d9e40cc-237a-4a4d-b637-f3e31bfd34a5,0265815a-0d15-4121-97f3-578ae6cfd2de,c035f338-7fad-47ad-825d-bb118e2a8bd5,7eceeb77-f203-494b-902e-c40528b5c1da,c035f338-7fad-47ad-825d-bb118e2a8bd5,19fbdd17-74d6-496e-bd0a-727f88a99c44,f438beeb-1036-43f6-bf8c-8a9aba5d464c,43dc8c78-22b7-4cc7-a34f-21ba8be39881,05c0be44-5aa5-4794-91b5-8db510a81d83,c2045287-1054-4222-9462-7051683e217b

Fall and Colours

2009-10-14T08:53:00.000-07:00

Here we are, already in October, and here in Niagara faint signs of Fall are showing. It is the highlight of Fall, to view the Fall Colours, and I have always enjoyed these sights, from my days in Northern Ontario, to now in the Niagara Region. Undeniably, some of the most beautiful colours are found in the Algonquin Park and Haliturton areas, but no part of our province is lacking when it comes to fall colours.
I still remember one of my trips through the Algonquin Park and Haliburton, with a group of Japanese tourists, watching their excitement at seeing the marvels of the change of colours in this grand expanse of wilderness.
The change is now underway, getting it's start in Northern Ontario, and now working it's way towards the Southern part of the country. For those wanting to get back to nature, this is the time of the year to do some exploring, with your camera along the highways and biways of Ontario and Quebec. It is one of the pleasures we have in this great country of ours, viewing the great scenery that is before us every day. One of my favourite day trips lately has been the drive along the Niagara River Parkway, from Fort Erie to Niagara On The Lake, on to St. Catharines. It has a nice combination of water scenes along the river, vegetation and greenery including the odd golf course, and of course the vineyards and orchards, not to forget the always picuresque Niagara Falls, the Whirlpool and the fabulous view at the scenic overlook at Queenston Heights. This drive is spectacular year round, but even more worthwhile during the spectacular Fall Colours. Enjoy!

Where Did The Summer Go?

2009-09-05T06:06:00.000-07:00

Oh My! Is it September already? Where did the summer go? Okay, now it is time to clean up the house/apartment/condo/cottage.........here are some tips:

Who says you need to spend an entire Saturday cleaning the house?

If you can spare 10 minutes once or twice a day, you can spruce up the house without breaking a sweat:

1. Grab a laundry basket, a large garbage bag and some small garbage bags. Go from room to room, emptying the garbage cans and putting the stuff that doesn't belong in that room into the laundry basket, said Amy Clark, a home management expert for the Kenmore Make-it-Simple Team. Replace the garbage bags as you empty the trash.

2. In another 10-minute chunk, return the items in the laundry basket to their proper homes.

3. Next, sort the mail. Recycle old magazines, newspapers and file away papers, said Alicia Rockmore, CEO of Buttoned Up, an organizational lifestyle company in Ann Arbor, Mich.

4. Do a surface wipe. Take some disinfectant wipes or some cleanser and paper towels and clean all the counters and the sinks in the kitchen and the bathrooms that get used the most often, said Rockmore. "Literally, you can do the kitchen in 10 minutes and one or two bathrooms in 10 minutes."

5. Grab two microfibre cloths and a multipurpose cleanser, said Clark. Dust the surfaces in each room with one cloth and use the other to wipe down the mirrors.

6. Unload and load the dishwasher.

7. Do the final eye, said Rockmore. Check room by room to see if anything needs to be addressed immediately, such as a dirty toilet.

2009-05-22T10:52:00.000-07:00

Buy and sell your house successfully

with 10 tips from a real estate professional.

With the continuing economic forecast of doom and gloom, it's hard to imagine this being a good time to buy or sell a home. But despite the rocky economy, you don’t necessarily have to stay put, explains Robert Barkwell, a Sales Representative with Coldwell Banker, Momentum Realty, in St. Catharines, Ontario

On average, properties are staying on the market longer and there has been an overall decline in how much homes are selling for, but properties are moving if the price is right, Linda explains. We're heading into the spring market, and that, along with the current low interest rates, should bring out more prospective buyers, Robert explains As for people looking to buy, now is a very good time, he says. "With the all-time low mortgage interest rates, it is the perfect time for first-time buyers, investors and existing homeowners who are looking to upgrade to purchase a property."We got Robert's best advice for weathering the current economic storm. Whether you're a buyer, seller or both, check out these 10 tips for navigating the real estate market successfully.

Tips for buyers

1 It's all about location. Whether you're a first-time buyer, investor or existing homeowner, you need to understand the best locations for your investment, Robert says. "Buying the smallest house on the best street versus the largest house on a less preferred street will reap big rewards when it comes time to sell." As an investor, a condominium that is near public transit or a university is a good move.

2 Think about a condo There may be a surplus of inventory in the condominium market, so your realtor should be able to negotiate a good deal for you when it comes to buying a condo, Robert says. If you're buying as an investor, rather than a first-time homebuyer, you will want to consider leasing out your suite for the next four to five years before selling, she explains. "It's been suggested that the condo market should be in an upswing by 2013."

3 Know your credit rating It's best not to just assume your credit rating is in order. To avoid getting any surprises before you meet with a lender, check your rating first so you have time to resolve any issues that might stand in your way of buying. You can call either Trans Union of Canada at 1-800-663-9980 or Equifax Credit Information Services Canada at 1-800-465-7166.

4 Know your price range and stick to it Meet with one or more mortgage lenders to obtain a pre-approved mortgage before you start house hunting, Linda says. Once you know how much you can spend you can narrow down your choices. It's safer to buy within your budget, no matter the economic situation.

5 Head out of the city It's booming in Niagara Region, for example, Robert says. Young families are heading there to buy affordable and newer resale homes. Sometimes it pays to go further afield depending on what you're looking for. If you want more space and more property, but have a budget to stick to, a downtown location won't do. You have to widen your circle of prospective locations.

Tips for sellers

1 Refresh and beautify Getting your home ready for sale is crucial. Robert suggests considering a consultation from a professional stager so your home's potential is maximized when potential buyers see it. Think about getting rid of clutter, adding stylish accents to tired furniture and tidying the yard for curb appeal.

2 Upgrade and update You don't have to completely renovate your home, but consider updating areas that are tired, such as replacing a kitchen counter and sink or replacing worn carpeting. Adding hardwood to a room or two is also helpful as this upgrade is becoming very popular to buyers, Robert says.

3 Make sure the price is right Price your property right the first time, according to the current market conditions in your area. Some sellers believe that if they overprice their property, they have more room to negotiate or they can always reduce it later, Robert says. "This strategy can really hurt the seller." Prospective buyers will search for homes within their price range. If your home is listed too high, buyers may skip over it.

4 Don’t worry about a closing date conflict If you receive a great offer on your home but the closing date is up to 30 days later than the closing date of the property you already purchased, don't sweat it, Robert says. Most mortgage lenders will approve bridge financing for approximately 30 days, if all conditions have been removed and you have a firm sale. For peace of mind, speak to your current lender prior to listing your property to confirm this, he suggests.

5 Get the best representation Your home is most likely your largest investment so you'll want to feel comfortable when you go to sell it. Start off right by selecting a real estate agent who you feel you can trust, Robert says. Find someone who has a solid marketing plan plus a proven track record of successful negotiated sales.

Buying or Selling a Home is one of the Major Decisions you will make in you lifetime. Take the care of using a Professional, and take advantage of their Market knowledge, Mortgage Market, Pricing Strategies, Marketing Stregths, Negotiating Abilities and personal experience in dealing with people.

2009-05-01T07:26:00.001-07:00

Robert Barkwell, Sales Representative,
Coldwell Banker Momentum Realty, Brokerage
353 Lake Street, 905-935-8001
St. Catharines, Ontario.

Serving the entire Niagara Region from Lake Ontario to Lake Erie