Monday, February 26, 2018

1 in 4 retirees are living with debt

The dream of a retirement without debt won’t be a reality for many Canadian seniors.
According to a new report from Sun Life Canada, 1 in 4 Baby Boomers still have a mortgage or other debts, and many are worried about their finances.
Twenty percent are still making mortgage payments, 66% have credit card debt, 26% have auto finance, and 7% have either unpaid health expenses or owe money for a holiday or vacation property.
"Through our national survey, we took a moment to check-in with Canadians and gauge how they are stacking up when it comes to their finances," said Jacques Goulet, President, Sun Life Financial Canada.
It’s unlikely to improve with those approaching retirement, as the survey also shows that almost a quarter of working Canadians have dipped into their retirement funds.








Source: https://www.canadianrealestatemagazine.ca/market-update/1-in-4-retirees-are-living-with-debt-238088.aspx

Friday, February 23, 2018

Consumer confidence weakens further

Canadians are worried about their jobs, their personal finances and the economy; but are more convinced that home prices will rise.
That’s the finding of the latest Canadian Consumer Confidence Index from Bloomberg and Nanos Research, which declined again last week to 58.32, the fourth straight week of lower figures, having started the year at 61.91.
“Over the course of the past four weeks the proportion of Canadians reporting their job security was either secure or somewhat secure declined more than four percentage points,” said Nanos Research Group Chairman Nik Nanos.
The only component where there was a rise in positive responses was for home prices being higher in 6 months, although against the backdrop of the other elements that won’t be a positive for many.
"Households in the youngest age group and with the lowest incomes are reporting the biggest drop over the past month in pocketbook sentiment, which includes perceptions of household finances and job security. This drop among the most vulnerable coincides with the recent decrease in part-time employment and will undoubtedly spark the debate over increasing the minimum wage”, said Bloomberg economist Robert Lawrie.
Regionally, Atlantic Canada and Quebec were the only ones to see a rise in the confidence index overall.





Source: https://www.canadianrealestatemagazine.ca/market-update/consumer-confidence-weakens-further-238089.aspx

Friday, February 16, 2018

Almost half of Canadians unsure what a mortgage deposit is

Many Canadians have a pretty good grasp of key financial terms but a new survey highlights some big knowledge gaps.
For example when asked what a mortgage deposit is, 22% of respondents to the Angus Reid study were not at all confident that they understand the term and a further 26% were not very confident.
Most people were confident with the term fixed mortgage (44% very, 34% fairly) and there was strong understanding for terms including savings account, RRSP and TFSA.
The survey shows that male respondents and those ages 55 and older are consistently more likely than women and younger respondents to say they are confident in their understanding of the financial terms on the list.
Wealthier Canadians are also more confident in their financial knowledge, especially as they are more likely to invest.






Source: https://www.canadianrealestatemagazine.ca/market-update/almost-half-of-canadians-unsure-what-a-mortgage-deposit-is-237750.aspx

Monday, February 12, 2018

Is standard leasing necessary?

Leases signed in Ontario after April 30 this year will have to comply with the newly announced standard leasing form—which will apply to rented homes, apartment buildings, condos and other secondary units—but according to the Federation of Rental-Housing Providers of Ontario, it isn’t necessary.

“From our perspective, from the industry’s perspective, we didn’t think we needed one,” said FRPO President and CEO Jim Murphy. “There are a lot of leases out there that have been accepted by courts, accepted by landlord tenant boards, so most of our members would use leases that we provide and that others provide, and they’re fine and they work, but as part of the Fair Housing Plan there was development of standard lease.”

While Murphy doesn’t think the lease is necessary, he doesn’t think it contains anything problematic. In fact, from the FRPO’s perspective, it could have been a lot worse.

“There are unique exceptions that, in certain places across the province, a standard lease can’t deal with, like parking,” said Murphy. “If someone is in a regular apartment building or a fourplex, there will be issues around insurance that tenants may have to carry. There are potentially unique circumstances that I don’t think any standard lease could deal with—they could deal with information about tenants like paydays or which day rent is due, or who the agreement is between—but we’re pleased the government has accepted that some items cannot be included.”

To elucidate his point, Murphy points to British Columbia, where the government has laid out suggestions for leasing agreements but leaves the terms of final agreements up to the parties involved.

“We’d have liked the B.C. model, but the Ontario government went in a different direction and came up with the standard lease.”

Mary Di Felice, an office manager with REMAX Premier, has seen many leases that contained all sorts of illegitimacies.

“By and large, people don’t know how to complete them,” she said. “It depends on who prepares them. If it’s a landlord, they go on the internet and they get a shell form and then fill it out, but they sometimes don’t know the law and they fill it out with stuff that’s contrary to the Landlord Tenant Act—things like key deposits and security deposits. People unfamiliar with legislation fill these out incorrectly.”

Ontario becomes the second province after Nova Scotia to enact into law a standard lease.












Source: https://www.canadianrealestatemagazine.ca/news/is-standard-leasing-necessary-237522.aspx

Thursday, February 8, 2018

CMHC says policy should tackle supply not demand

The Canada Mortgage and Housing Corporation has published a new report on housing affordability in Canada’s biggest cities but admits it doesn’t have all the answers.

The agency found that escalating house prices are mainly driven by strong economic and population growth, and low mortgage rates; with Toronto and Vancouver lagging on the supply side.

While the two hottest markets showed large and persistent price increases during the analysis period of 2010-2016, Montreal saw only modest growth and the oil-dependent Calgary and Edmonton markets gained slightly.

Vancouver led the gains over the 6 year period with a 48% rise in house prices with population and disposable income rises, and low mortgage rates, accounting for almost 75% of that rise.

House prices increased by 40% in Toronto over the same time period with 40% of the rise being explained by conventional economic factors.

These price increases have tended to be for single-family homes rather than condo apartments. Supply of condos has been proportionately greater than for single-family homes.

“Large Canadian centres like Toronto and Vancouver are increasingly behaving like world-class cities,” said Aled ab Iorwerth, CMHC’s deputy chief economist. “Their strong local economies and historically low interest rates make them attractive to both people and industry which drives up demand for housing. When you have weak supply responses, as you do in these markets, prices have nowhere to go but up.

Although investor demand for condos has increased the rental supply, CMHC says that they tend to be more expensive than purpose-built rentals.

The report also highlights that measures to address the supply challenges are “more likely to have positive impacts than measures focused on the demand side.”

“While it is true that the supply response in Toronto and Vancouver has been significantly weaker than in other Canadian metropolitan areas, we do not fully know why this is the case,” said Evan Siddall, CMHC’s president and CEO. There continues to be data gaps and we need to work more closely with jurisdictions at all levels to fully understand what is happening.”











Source: https://www.canadianrealestatemagazine.ca/market-update/cmhc-says-policy-should-tackle-supply-not-demand-237488.aspx

Monday, February 5, 2018

Low inventory weighs on Kitchener-Waterloo

Home sales were subdued in the Kitchener-Waterloo market in January as inventory remained tight.

There were just 270 residential sales in the month, down 18% compared to a year earlier with new listings up 10.45% year-over-year to 486. While that brought total inventory to 588 (up 56% from January 2017) it was still well-below historic levels.

“On the surface, activity appears to be somewhat sluggish in January, says Tony Schmidt, KWAR President. “However if we set aside the past two years, it was a very typical January in terms of the number of sales. What is less typical is that listing inventory is still at historic low levels, and we continue to see multiple offers on properties putting upward pressure on prices.”

The average sale price increased 9% to $458,750 year-over-year with detached homes selling or an average of $554,857 (up 10.7%) and the average sale price for an apartment style condo reaching $246,821 (up 4%).  Townhomes and semis sold for an average of $371,095 (up 14.5%) and $388,974 (up 9.7%) respectively.

The median price for all property types was $431,143, up 6.8%.

While the tougher mortgage rules that came into play on Jan. 1 have sidelined some homebuyers, the reality is we’re still experiencing more demand than supply right now,” says Schmidt.












Source: https://www.canadianrealestatemagazine.ca/market-update/low-inventory-weighs-on-kitchenerwaterloo-237305.aspx

Thursday, February 1, 2018

Light and Space: Creating Resale Value Through Home Improvement

It’s hard to walk through a friend’s house without seeing features you’d love to incorporate into your home. Getting excited about changes you want to make can motivate you to fulfill long-held dreams for making your home more attractive, but it can also entice you into spending too freely on materials that can make it difficult to recoup your investment at resale time. Remember, home ownership is about making smart decisions concerning your most important asset. Ultimately, renovations are business decisions, things you do to get the most value out of your money and hard work, and so you can command the highest price possible.
Light and space
When it comes to attracting home buyers, light and space are two of the most important features these days. People want to see flow-through and eye-catching spaces that really shine. Vaulted ceilings and skylights are excellent ways to create space and add natural light. Many homeowners achieve this effect by knocking out walls, making it easier for prospective buyers to envision how they’ll utilize the space. Abundant lighting can also perform that function, allowing buyers to get a good view into every corner. Accentuate the natural light in your home by installing blinds and keeping drapes open. Recessed lighting and fixtures that spotlight key features of your interior also make a powerful impression.
Kitchen
Kitchen upgrades add more value than any other room with the possible exception of the bathroom. But this is one place where you need to be careful about how much money you spend on renovations, bearing in mind the likelihood of recovering your investment. Fortunately, there are many affordable, do-it-yourself kitchen projects that can add value. Consider putting in faux marble countertops that will give the room a traditional look without going to great expense. Consider lighting up the kitchen by installing glass tiles around your cabinet space and on the backsplash. You can also create the same effect using high-gloss ceramic tiles.

Bathrooms
Your bathrooms will also attract a lot of attention from buyers. There are a number of DIY projects you can take on in the bathroom, modifications that won’t require you to try your luck with the plumbing. You can replace an outdated and worn vanity with one that accentuates your overall decor for around $200. Shiny new faucets and fixtures also add value and give the room a fresh look. If you’re considering adding something new and interesting, what about putting in a full-length mirror and medicine chest combination? If you have a shower rod, try adding a second one that can be used to hang baskets for additional storage. It’s the perfect solution for that person who always seems to run out of shampoo in the shower.
Finished basement
If you’ve been meaning to finish your basement for years, now would be a good time to do it if you’re looking to add value and up your asking price. There are lots of features you can incorporate, including a bathroom, kid’s play room, bar, or home office. If you have limited space, think carefully before proceeding. You might not have enough square footage to work with.
Roof repairs
Buyers are always very interested in the condition of your roof. Be sure to replace any shingles that are missing or loose, and clear the roof of any branches or debris. Consider having your roof inspected before putting your house on the market to determine what level of work, if any, needs to be done.

There are many upgrades and fixes you can do yourself when you decide it’s the right time to get your house ready to sell. Bear in mind that buyers will look into every nook and cranny, so pay careful attention to detail. A well-staged house that looks good outside and inside is bound to attract lots of attention.






Source: Courtesy of Pixaby