Monthly Archives: November 2009

Reducing Water Consumption

According to The Harmony Foundation of Canada, each Canadian uses 260 litres of water each day.

That is an incredibly high amount of water we all use each day.

There are many ways to decrease the amount of water we use.

You should first check for any leaks and drips. Leaky faucets can us as much as 9,000 litres a year down the drain. You should then look into replacing any fixtures and appliances with low use models.

You must then go into specific rooms and see what you can do to lower the water consumption in each room, thus lowering the overall water consumption in your house.

The bathroom is a given for high water consumption. Begin installing water-saving devices on toilets, showerheads and faucets to cut back water consumption by as much as 35%.

Moving on to your laundry room you will find that 20% of your water consumption occurs here. Look into buying an efficient washing machine.

Of course you should always wash with a full load, set the machine for the smallest load possible and use pre-soak or second rinse cycles only when clothes are badly soiled.

In your kitchen, you will find that if you wash dishes by hand, then rinsing them through running water, you will waste more water than using just a dishwasher.

Use your dishwasher when you have a full load, and only wash the dishes with a basin of water. This way you will start lowering your water consumption.

Now the outdoors is a large water usage location, especially in the summer. When you are washing your car on a warm fall day, keep in mind that if you should use a bucket and sponge, you will save ¾ of the water you normally use.

Watering your lawn will also use a great deal of water, therefore you should install a few water saving items, such as a rain barrel.

Now you might ask yourself what is the point of lowering your water consumption in today’s market?

People are constantly looking at ways to lower their environmental footprint in the world, preserving it for future generations.

If you can show that your house is essentially a green house, it will attract buyers who are interested in that aspect.

This of course is only a suggestion, but it will make your house more attractive if you add in that your house uses far less water than a normal home in Toronto, considering people are always looking for ways to be unique in society.

NEW HST TAX WILL HURT CONDOS, CO-OWNERSHIPS, CO-OPERATIVES AND HOUSE OWNERS

By Martin K. I. Rumack

New taxes are never a good thing.  The new harmonized sales tax (HST) which is effective July 1, 2010, will be tough on the housing industry and particularly on owners of condominiums, co-ownerships, co-operatives and houses.

In the past, the 8 per cent provincial sales tax has not applied to services, but that will change on July 1st.  The new HST will combine the sales tax with the 5 per cent GST for a combined 13 per cent sales tax.  For owners of condominiums, co-ownerships and co-operatives, it means many services that make up maintenance fees, such as hydro and natural gas, repairs and maintenance, landscaping, and contracted services will be taxed at the new rate.  It’s estimated that maintenance fees will rise by 6 or 7 per cent.

Property managers also warn that if major work is planned for an older building, such as replacing a roof, owners may have to pay a special levy to top up their building’s reserve fund to cover the new charges.

It is not just owners who will feel the impact of the harmonized sales tax.  Renters will have to pay the tax on repair and maintenance changes to their rental property.  For anyone who buys a property after July 1, closing costs such as legal fees, real estate commissions, home inspections and the costs of movers will also increase because of the HST.

If you are thinking of buying, if you buy now, you can avoid that increase.

Martin K. I. Rumack is a Toronto based Barrister and Solicitor and is a regular contributor to the Muddy York Blog. Contact Information:  202 – 2 St. Clair Avenue East, Toronto, Ontario, M4T 2T5, Tel:  (416) 961-3441 (Ext. 26). Mr. Rumack can be mailed directly at martin@martinrumack.com.

Renovating Homes with Lead Paint

By Heather Rose

Lead paint is relatively common in older houses and the disturbances caused by renovation can be disastrous. Lead was primarily used as a pigmentation agent in most oil paints and a few latex paints until the early 1950′s and as a drying agent into the late 1970′s when governments finally limited the lead content allowed in interior paints. Exterior paints were given warning labels if they exceeded a similar limit, but it is estimated that some exterior paints were up to 70 per cent lead by weight. Currently most Canadian paints do not allow lead to be added at all.

If your house was built before 1980 you may have lead paint on your walls. If it was built before 1950, you most definitely do. There are testing kits that can determine if you have lead paint available at large hardware or health food stores. These kits can also be used on other household surfaces to test for the presence of lead.

If you intend to renovate your home and it may or does contain lead paint, there are a few things to consider – particularly the fact that every method of removing lead paint is dangerous to a degree. The agitation of lead paint creates a deadly dust, which can already be present in high-friction formations like door and window frames.   The safest and wisest course of action is to hire a contractor that specializes in lead and asbestos removal and who adheres to proper industry standards. Replacing small lead-coated things yourself is possible, but health authorities warn not to attempt anything yourself that involves more than a few square feet of material. Some of these smaller items can include radiator panels and door and window frames.  One of the more damaging things that can be done is covering up the lead paint with new paint. Not only can the new paint cause chips or flaking, but preparing for decent coverage involves sanding and other activities that produce dust. Sealing the lead paint with a liquid epoxy that encapsulates and traps the paint preventing future chipping is a better option.

During the renovating or lead paint removal it is especially important to protect family members and belongings from lead dust and perform an intensively thorough clean up afterwords with the use of a HEPA filter vacuum. Pregnant women and children should be removed from the premises completely until renovations are complete.

Has your child been exposed to lead paint? Lead poisoning can produce flu-like symptoms or even none at all. Children are at a higher risk because they play closer to the ground, are often putting their hands in their mouths and have a faster metabolism therefore absorbing things faster. Ways that increase your family’s risk of being exposed include living in a pre-1960′s house with peeling paint or spending a great amount of time in a building (day care, school, business, etc.) with such, regularly visiting or living in a remodeled house and being in close proximity with exposed people who may carry dust on their clothing.

Heather Rose is a Toronto based Journalist, who is a regular contributor to the Muddy York Real Estate Blog.  Heather website is located at heatherroseportfolio.squarespace.com.

Toronto’s Cavalcade of Lights

From Nov. 28, 2009 to Dec. 31, 2009, Toronto’s 43rd annual Cavalcade of Lights will be hosted at Nathan Phillips Square. cc lights toronto

Nathan Phillips Square is named after the former Toronto mayor and opened in 1865.  It hosts concerts, a weekly farmer’ market and other public events and demonstrations. It is also above one of the largest underground parking garages in the world, which can hold up to 2,400 vehicles. It sits in front of city call and the large reflecting pool acts as a skating rink in the winter months. Visitors can also shop at numerous concession stands and rent skates.

The official opening celebrations will take place on Saturday at 7:00 p.m. with the official Toronto Christmas tree lighting and music by Stephen Page of the Barenaked Ladies, Keshia Chante and other artists. A spectacular fireworks display will take place at 8:00 p.m. during a skating party on the ice rink. Several more skating parties will take place during the month of December on Saturdays, featuring musical acts like Jully Black and Faber Drive. During the afternoon a fair trade market will be open featuring Christmas decorations and crafts.

In 1958, 420 design submissions for Nathan Phillips Square were considered, but Finnish architect Viljo Revell’s design was chosen, and work began in 1961.  The “Freedom Arches”, the three large arches that stretch over the reflecting pool, were erected in 1989 and contain an actual peace of the Berlin Wall at the base of the center arch, where a plaque reads: The Citizens of Toronto dedicate these arches to the millions who struggled including Canadians, to gain and defend freedom and to the tens of millions who suffered and died for the lack of it. May all that we do be worthy of them. Only in freedom can the Human Spirit soar. Against the Human drive for freedom nothing can long succeed.

Nathan Phillips Square is definitely the heart of Toronto.

Make People Hate Your House

How could anyone hate my house?   Mess, pets, and other things that may impact the sale.

When a buyer comes to see your house for the first time, they’ll be trying their darnedest to visualize themselves living there. They’ll see own furniture, kids running around, their future decoration plans and their schedules flowing throughout the home day in and day out.

There can be some impediments to this important process. The largest: You. Yes, you. Disassociating yourself with your home is a great tip for sellers because by depersonalizing the house, potential buyers can better see themselves living in the home. Your favourite things and knick-knacks may make it homey for you but they may not be to the tastes of others.  Allow potential buyers to imagine their own knick-knacks and comforting objects in there instead. This will also help to de-clutter your space.   It’s not just the  “essence” of you that should disappear slightly, but your physical self as well. Hanging around the home while buyers peruse will make them feel awkward and like they are snooping. Your agent is in charge of up-selling every little quality and perk – it’s what they do – so you don’t need to worry about sticking around to tell the buyers about them.

General messiness or uncleanliness such as dirty laundry, shoes or undergarments on the floor and on beds is also very unappealing. Give your home a room-by-room thorough cleaning. Any bug problems should also be dealt with before the house goes up for sale. Take a scrutinizing walk around your home. Pet droppings in the yard, a grungy bathtub, gutters with plants sticking out of them – what have you grown used to that you don’t notice anymore? Have a friend come over and take a walk around with you. They might not be used to your home and are able to offer advice from a fresh set of eyes and nose – they may smell pet or cigarette odors you don’t. Ensure your pets, especially dogs are kept away during showings. Not all people are dog people and who appreciate your furry pals jumping up to say “hi”.

Some adjustments might be a little larger than simply moving things around. Don’t forget to make obvious repairs or maintenance when it comes to your home and gardens. If potential buyers see anything along those lines in disrepair it will set the “what else hasn’t been done” wheels in motion. Dimly lit rooms, ugly wallpaper and damp basements are also buyer turnoffs. Many buyers are looking for a home they can make their own, and these are just some of the things that will help that home be the one you’re selling.

 

The Ins and Outs of Curb Appeal

By Susan Eickmeier

Many people might say you cannot judge a book by its cover, and that same cliché can be applied perfectly to curb appeal. Some houses cannot simply be adequate enough on the outside but be a perfect fit on the inside to those who would just pass by. There will always be a select group of readers and in this case, potential homebuyers who are missing out on great homes because of a not-so-great exterior.

A good experiment to try is to stop across the street the next time you drive or arrive home. How does your house look? What are the home’s best and worst features and what can you do to enhance or minimize them?

Approach your home. Is it clean-looking, is the walk up to it tidy and unobstructed? Walking up to your driveway or pathway is something you do everyday. What are you missing when you don’t take a closer look?

Doing this exercise just before nightfall is also helpful because you may notice your outdoor lighting is lacking or could use some rearranging. Using indoor lighting to create warmth when looked upon from outside is also inviting. It is not unusual for a buyer to look at your home later in the day, or to drive around back if possible. If your back yard can be seen from a nearby road or driveway, it is useful to repeat the exercise here.

Taking photos of your home and viewing them in black and white can also highlight minor imperfections that are usually difficult to see in colour photographs. It offers a different perspective and an almost fresh set of eyes to you, someone who sees the home every single day.

Some handy tips you can use to increase your curb appeal include the following:

  • Remember, whether you hire a professional, or plan to some of it yourself, you will definitely reap the rewards later;
  • Replacing the windows, front doors and shutters. If replacing the door is too expensive, try embellishing it with new hardware.
  • If you are doing this yourself, washing mildew or mold on the siding and windows using a pressure washer will make it much easier. This is also a great idea for decks, railings, the driveway or anything else which needs to be refreshed.
  • Removing any weeds growing through cracks in pavement or patio stones, even the sidewalk if there is one. Landscape to the street.
  • Planting for your lighting situation – some plants do better in shade than in full sun. Find bushes or trees for the colder winter months so that the house looks great year-round.
  • Using neutral or natural-looking paint colours on the house,  and ensure the trim compliments the roof and save bright and vivid colours for smaller outside accents such as patio furniture.
  • Avoiding outside clutter and keeping the exterior of the house clean is a must.

By ensuring the outside of a home looks as encouraging and inviting as the inside, more potential buyers can be attracted. Remember what drew your family to the property in the first place and emphasize all that you can to show off what your house can offer to buyers who will want a closer look.

Susan Eickmeier is a Sales Representative with Royal LePage R.E.S. Ltd/Johnston & Daniel Division working in the Central Toronto market.  Susan is also a regular contributor to the Muddy York Blog. Susan’s website is located at www.susaneickmeier.com

Mortgage fraud may be out of the headlines, but watch out!

Mortgage fraud seemed rampant just a few years ago but much less lately having since died off after consumer awareness and systematic changes have made the crime more difficult.

Down from an average five per month a couple of years ago, only 18 new investigations into real estate fraud have been opened up this year to date by the Law Society of Upper Canada. However, tough economic times, a more electronic environment and hot real estate markets still offer attractive venues for crooks, especially in Ontario. Criminal Intelligence Service Canada defines mortgage fraud as: the deliberate use of misstatements, misrepresentations or omissions to fund, purchase or secure a loan.

Simply put, mortgage fraud is any scheme designed to obtain mortgage financing under false pretenses, such as using fraudulent or stolen identification or falsifying income statements.

Many instances are not reported to the proper authorities, and real estate is a cozy home for fraud due to the amount of legal processes, different people or associations and information involved. But now that more mortgage brokers bear more responsibility due to new regulations in transactions, they take on more of the losses financially than the victims themselves.
Buyers are advised to move with caution when it comes to using unestablished companies or individuals offering guaranteed protection against foreclosure via an advanced fee, as well as to be aware of the top four scams according to industry professionals:

•The classic bait and switch

The mortgage is advertised with an ultra low rate that ends up being higher in actuality when everything is said, done and closed.

•Loan flipping

Repeated refinancing of a mortgage when a homeowner can’t keep up with payments, the lender flipping the loan will ask for large fees and penalties every refinance, and the fees and are usually based on the entire mortgage amount driving the borrower deeper in debt.

•House flipping

A house flipper targets a first time buyer or one with credit issues, earning trust with their alleged knowledge and experience, arranging the loan and taking care of the details on their own but the buyer ends up with a poorly reconstructed or “fixed-up” home worth nothing close to the original loan the flipper then walks away with, leaving the homeowner to pay off a mortgage much larger than the house is worth.

•Identity theft through personal information harvesting

More and more transactions are being done online instead of person to person. Titles can be searched for and registered online, and mortgage information can be stored on computers, making it easier for criminals to obtain what they need.
Mortgage fraud is definitely down but not out, and as technology progresses so does the crime itself. Doing the homework and research to find an appropriate and reputable lender is definitely worth the time it takes to ensure that you and your investment are protected.

Muddy York Update – TREB Market Update – October 2009

trebThe Toronto Real Estate Board released the October 2009 statistics for the GTA. The number of sales for the month of October was 8,476 in the GTA compared to 5,155 in October of 2008, representing a 64% increase.

The number of days on the market decreased from 37 in 2008 to 26 in 2009.

In the Central District of Toronto in October 2009, the average price was $556,402 and the median price was $407,750.  The average percent to list came in at 101%.  The average number of days on the market was 20 days compared to the GTA average of 26 days.

Overall, over $913 Million worth of real estate traded in the central core of Toronto during the month of October.

Source:  Toronto Real Estate Board

Don’t Rule Out Vacation Properties

By Heather Rose

The current economic climate results in more and more people choosing local and less expensive destinations for their vacations. No one wants to take less time off, but getaways are planned carefully and with a budget in mind. Renting someone else’s cottage an hour or two away can be the perfect escape for a family or couple looking to get out of the city and partake in a bit of nature without overspending.

Current low interest rates, moderate prices and less competition offer an attractive advantage for generating extra income. Many financial institutions offer vacation and second home mortgages with specialized terms, allowing you to pay off the property faster.

Some things to consider before buying a cottage or vacation home include:

  • Is it nearby a small town? It it secluded just enough or too much, making buying commonly forgotten necessities and last-minute items a hassle?
  • Would you prefer to have a private beach on the river, lake or ocean, or would you rather just be closer to a large public beach?
  • Is it large enough to retire to eventually, with enough bedrooms and bathrooms, or is it merely cozy enough for a weekend or two?
  • Are winter activities such as skiing, ice-fishing and Ski-dooing possible, or is the landscape only appropriate for summertime fun?
  • Do you require indoor plumbing or would you not mind using an outhouse?
  • Are you close enough to a hospital, fire department or police services in the case of an emergency and for peace of mind?

A vacation property is not quite the same as a house, but all the amenities needed for everyday life can still apply for the most part along with a few legalities and cost issues to consider.

Figure out how much money it will cost to clean up after each guest (or do the work yourself for less), childproof certain areas of the cottage (this is a hefty concern for potential guests with small children) and repair or maintain the cottage and property all year along with utilities, taxes, furnishings, a small emergency fund and of course the mortgage. Once this is figured out, how much do you need to charge and how often for you to cover costs and pay the mortgage or even break even and profit from it?

Speak with an insurance broker about the possible damage the cottage may incur before signing up. If there is a risk of damage caused by malice, or vandalism, they should know about it. Other insurances to consider are fire, theft, and flood.

Acquiring a vacation property can be a wise choice and a great way to make some extra income instead of an unreasonable luxury. You could run your own bed and breakfast, rent out the place yourself or allow non-profit organizations to use it for a sizeable tax deduction. In between, enjoy a relaxing week or two away from it all with your own family.

Heather Rose is a Toronto based Journalist, who is a regular contributor to the Muddy York Real Estate Blog.  Heather website is located at heatherroseportfolio.squarespace.com.