How To Green Your Home Buying
September 04, 2008
The housing market may have had a rough time of late, but there are still plenty of us out there looking for a new home. Whether you are a first time buyer or a seasoned veteran, it is worth remembering that buying a house is one of the biggest decisions you can make, and not just financially. The location, size and style of your house, along with what you chose to do with it, can have a huge impact on your ecological footprint. So choose wisely, ask all the right questions, and check out some of our handy hints below. Happy hunting!
1. Get good help
Not long ago, if you’d have told your realtor that you were looking for a green house, they’d have handed you a gallon or two of emerald-hued paint. Nowadays, with increased eco-awareness and energy prices going through the roof.
When screening potential realtors, ask them how much they know about home energy performance and other environmental issues that matter to you.
2. Conduct an energy audit
If your green realtor is on their game, this one will go without saying, but it’s not an automatic. You can tell a lot just by taking a careful look around. Check out the heating and cooling systems carefully and make sure they are in good working order and sized appropriately. Take a gander at the windows, and check if they’re single or double-paned, and at the doors, to see if you feel a draft coming through around the edges. Be on the lookout for missing or inadequate insulation, or signs of mold.
To get really good info, though, we recommend hiring a professional for your audit. They’ll use things like infrared cameras and special fans to pressurize your house and determine how leaky it is; this will help you determine if your potential new house needs any big efficiency upgrades, and if something like new insulation will make sense.
3. Shade grown?
Trees are good for a lot more than hugging, so take a peek outside your potential new digs to check out the foliage the comes with the place. Big deciduous (leafy) trees are great natural climate controllers; in the summer, their leafy branches block the sun and can help keep your home cooler (reducing cooling costs), and, in the winter, the bare branches let more natural light and heat through to your home (reducing heating costs).
4. Buy small, live large
The smaller your living space, the less energy is needed to heat and light it, and the less you have to spend on utilities too. With some thoughtful, careful interior design, you can create beautiful living environments out of some surprisingly small spaces; we recommend multi-functional and transformer furniture to help you get the most out of your space.
Posted by Kanza at 1:49pm
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Single women: Buy with this in mind
September 02, 2008
More and more single women are becoming homeowners but in many cases the properties they can afford are located in high-crime areas, so they need to pay special attention to safety and security measures.
Berry Everitt, managing director of the Chas Everitt International property group, says the latest figures from the National Association of Realtors show that single women represent 22% of all buyers , “and while exact figures are not available, estate agents report that the number of single women buyers is also climbing rapidly”.
Some of the factors that such buyers need to consider when viewing properties for sale are the following:
- Homes in well-lit streets are safer than homes in dark side streets. The same applies to homes that are close to the street as opposed to secluded units that are not clearly visible from the road.
- Studies show that crime is higher in mixed-use neighbourhoods with offices or retail properties in among homes than in all-residential areas. The reason seems to be that in mixed-use areas, residents lose control over people loitering while pretending to be there “on business”.
- While safety measures such as burglar proofing, additional security lights, security doors, alarm systems and secure perimeter fencing can be installed after purchase, it may be wise to only consider properties that are already secured, or to least make sure these measures are installed before taking occupation.
- An attached garage with a door leading directly into the home limits exposure at a vulnerable entry point. Remote-controlled gates and garage doors also obviate the need to get out of your car to gain entry.
- A dog in a securely fenced backyard is still an excellent alarm and deterrent – not to mention a potential best friend.
Posted by Kanza at 1:06pm
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House Prices
August 28, 2008
Should you be concerned about House Prices?
Of course, it is your home and likely the biggest investment of your life. However, the trend for house prices over the last 50 years is up. There are always dips but the housing market always rebounds. The typical down cycle is 3-5 years. So, if you are able to hold your home for this period, then you are fine. You can ride out any downturn. If, however, you may need to move in that time period and the forecast for prices is not strong, you may want to hold off buying. You don’t want to be pressured to sell in a downturn. The other alternative is for you to buy now and then rent out your home, should you need to move and the housing market is in a slump. You can especially get good rent for furnished quality homes in accessible areas like Yonge & Bay and Yonge & Eglinton in Toronto, the downtown area in Vancouver and Marda Loop in Calgary.
Posted by Bruce at 9:46am
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September Rate Update
August 28, 2008
I wanted to give everyone the scoop on interest rates for the month of September.
A rate decision will be made by the Bank of Canada on September 3rd. The expected decision is for rates to remain unchanged. Here’s the most recent quote from The Bank of Canada: “The Bank now judges that the current stance of monetary policy is appropriately accommodative to bring aggregate demand and supply into balance and to achieve the 2 per cent inflation target. There continues to be important downside and upside risks to inflation in Canada, which the Bank will monitor closely.”
As for the U.S, the economy there continues to slow and the feeling is that it has still not hit bottom. One prerequisite for stabilization is the ready availability of mortgage financing. For banks to start lending again, Fannie and Freddie will have to be recapitalized first. Progress is expected in the near future. The rate decision in the U.S is set for September 18th.
Posted by Bruce at 9:44am
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Top 10 things you need to know before buying a House
August 27, 2008
Top 10 things you need to know before buying a house
1. Don’t buy if you can’t stay put.
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.
2. Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you’ll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
4. Don’t worry if you can’t put down the usual 20 percent.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.
5. Buy in a district with good schools.
In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.
7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say five to seven years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.
8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
9. Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.
10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.
Posted by Kanza at 2:01pm
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What is all this talk of amortization?
August 22, 2008
Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire to kill, from Latin ad- + mort-, mors death.
In layman terms it is the period of time required to repay a loan. Recently the length one is allowed to stretch out the life of a mortgage has been in the news. The federal government has shifted the maximum length of time our banks can lend a mortgage down 5 years from 40 years to 35. This is after gradually growing the terms from the standard 25 years that was maximum for decades in March of 2006 to 30 years, than 35 and finally 40 years soon after.
Reason for this new allowance was to give more people the option to afford their own home since the increase in the price of real estate throughout the country had not kept pace with increase in average wages which was freezing out many consumers. The longer an amortization is the less income one needs to qualify for the loan. Typically home loans are rather large so need the extra time presented by amortizing to allow one to reasonably pay amount back. So most mortgages are set up in 5 year terms but with an amortization of 5 to 8 terms or 25 to 40 years.
Though due to problems with US housing market, the Federal Government has felt this extended change, along with some others including 0% down mortgage, may be fuelling a similar sort of housing bubble that the US has been experiencing with serious consequences. As such, the maximum amortization now available is 35 years. So one is now allowed 7 terms of 5 years to pay back a home loan.
Michael Pezzack, AMP*
Mortgage Agent
Posted by Kanza at 11:11am
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Explosion that rocked the city
August 12, 2008
I’m sure everyone’s heard of the massive explosion Sunday morning at a propane depot near Keele and Wilson. Residents were evacuated and left homeless for 1 to 2 nights as emergency crews were working to figure out the cause and to make sure the area is safe for residents. There are still a lot of unanswered questions, but perhaps the most miraculous thing of all is that there weren’t a lot of casualties, yes there were a couple lives lost, but could you have imagined if this happened in the middle of the afternoon? Where people were out in their yards or driving down the street or walking their dogs? It would have been a major catastrophe.
Not only that, this also is a prime example of how important insurance is. Some residents and business owners are claiming they have no insurance to cover the damages done by this explosion. What are they to do?
We’ll never know when something like this will happen, hopefully never again.
Posted by Leslie at 1:59pm
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rule changes!
August 08, 2008
The federal government, in its attempt to avoid a housing crisis such as the U.S. is currently experiencing, have made some changes to the mortgage lending rules that you should be aware of. As of Oct. 15th 2008, no longer will one be able to purchase a home or condo with 0% down or be allowed a 40 year amortization. A minimum 5% downpayment will be required and maximum amortization of 35 years will be the limit. Also being eliminated are any high ratio interest only mortgages. A high ratio mortgage is any mortgage with a downpayment of less than 20% of the purchase price. This change also disallows high ratio home equity line of credits. Note: cashback mortgages will still be available so the option of buying without a downpayment will still exist, but at higher rates.
Although the changes are not officially taking place until October, many banks and mortgage lenders have already adopted these new rules for any new applications. Fortunately, there are still a few lenders waiting until mid October to enforce the new rules so the possibility is still out there if you move fast and wish to have the maximized amortization or the 0% down option.
Even though the mortgage rules appear to be a little unstable, currently rates are holding steady without many changes since the spring season. 5 year fixed rates are in the mid 5% range and variable or adjustable rate mortgages in the 4.15 - 4.25% range. As always, it’s best to shop around for the lowest rates and a brokerage such as Buyingblock does the work for you — at no cost!
Posted by Michael at 9:11am
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Housing prices up 1% in July
August 07, 2008
The Toronto Real Estate Board release it’s July 2008 report yesterday. Here are some highlights:
- Sales remained at a moderate pace as 7,806 sales were reported
- Sales declined 12% from June 2007, but increased 10% from 2006
- A listing’s average time on the market increased from 31 days to 33 days.
- There’s a 28% increase in available listings than 2006.
Read the Toronto Star article.
Read the press release from the Toronto Real Estate Board.
Posted by Leslie at 1:43pm
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Does a list price really mean nothing?
August 05, 2008
I came across an interesting article in the Toronto Star today about the Toronto Real Estate Market and the multiple bidding wars still prevelant. Even during a time when the market has really cooled off, home buyers are still facing bidding wars and most times, the house they were so keen on buying have really sold for over 50% of the asking price. Why is that?
Well it seems that for the past 5 years, houses have been listed way below it’s actual worth in order to stir up multiple offers and essentially build up a frenzy for the property…aka, quick sale.
The article argued that the Toronto Real Estate Board should really put some rules into effect that limit the way agents can list listings, not only that, should actually make agents list at its market value.
Click here to read the full article in Toronto Star.
Posted by Leslie at 1:59pm
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