Hiring your best buddy or favourite cousin to sell your home might sound like a no brainer. But you really need to examine your relationship and your own personality before signing on the dotted line.

When it comes to close friends and family members who are professional realtors versus engaging an agent you haven’t worked with you really have to know yourself,  what you’re willing to tolerate, whether you’re comfortable sharing your financial information with a friend or relative and how truly honest can you be.

Whether you hire your friend or decide to go with a realtor you don’t know, you run the risk of hurting your relationship.  Not selecting them is likely to hurt feelings and that may have a lasting impact on your relationship. Hiring them and finding fault with their conduct and ways can have the same impact. It’s kind of a no-win situation so you have to know yourself well and know what scenario you can most endure.

Clearly, there are definite advantages to taking on someone you know. The level of trust you already share is understood and established. There’s no need for awkward small talk and cliché platitudes allowing you to get straight down to business. Appreciation and compassion also come into play as your realtor/relative/friend will likely be extra grateful that you selected them and will hopefully return their appreciation with above-and-beyond service. Hiring a friend or family member could also benefit you financially if that person is willing to give you a break on their fees.

But there are definite drawbacks to hiring someone you know. Your friend or relative begins their relationship with you with a bias and that can lead to problems. Will your close friend tell you the colour of your front door is hideous and may possibly be a turn-off for prospective buyers? Will your cousin point out off-putting food smells that lingered during the open house? There’s a good chance that because these people love you, they don’t want to hurt your feelings so they overlook certain faults or justify them as trivial or unimportant. You want an agent who can be brutally honest with you and whose main goal is getting you the top dollar for your property.

That close friend or relative may also think they know what you need better than you do. They’ve heard you long complain about your noisy neighbours and they know the ideal property on a quiet street. The catch? The house is $50,000 over your budget. A professional realtor wouldn’t likely assume they know what’s best for you by throwing financial caution to the wind.

There are plenty of hot-button situations that can arise when buying and selling real estate and some lead to awkward, uncomfortable and sometimes heated conversations. Otherwise simple matters turn into emotional issues and dealing with a friend or relative can exacerbate the issue. A professional realtor can cut through the feelings and is more apt to focus on the business at hand: selling or buying your home.

As March progresses and spring appears in the offing, it’s still anyone’s guess as to whether the month will close out like a lion or like a lamb.

Given that our winter since January has been a rather cold and snowy one, and given that our heating bills are reflecting that, let’s look at ways to lower our energy consumption in this the final month of winter.

Furnace

Make sure your furnace is working optimally by inspecting its air intake and vents as well as filters. If you find debris remove it. This will assist air circulation and aid in the efficiency of your furnace.

Determine when your furnace was manufactured. If it’s more than 10 to 12 years old, you may want to think about replacing it. But pay attention to the estimated gas consumption of new models. If you can reduce your gas consumption by 20 to 30 per cent getting a new furnace may well be worth the expense.

Programmable thermostat

If you are serious about energy savings, these are a must. Dropping your temperature by a few degrees can make a big difference on your bill. Why bother heating your house when no one is there to enjoy the warmth? A programmable thermostat allows you to program when your heat comes on and how high or low it goes. For the tech nerd, consider Wi-Fi or smart thermostats, which allow you to remotely check and change your thermostat as needed no matter where you are.

Insulation

Your attic and walls should be properly insulated. Worn or old insulation will increase your energy bills. How old is your insulation?

Weather stripping

There are simple ways to check whether your seals are doing their job. Look for curtains that waver ever so slightly. A good way to check is by wetting your hand and putting it up to windows and doors. If there is a draft, you will feel the cold right away.

Let the sunshine in

Raise the blinds or open your curtains during the day to take advantage of the sun’s heat. Remember to close them at night to insulate against cool night air.

Remember what mom used to say

Your whole house need not be an oven for you to feel comfortable in winter. Think about padding yourself with a sweater or sweatshirt. That way, wherever you go in your home, you’ll feel comfortable even though the temperature might be on the cooler side.

Source:  www.energyrates.ca

Toronto has an abundance of neighbourhoods, some 240, unofficially in all, and knowing which neighbourhoods are on the verge of real estate glory can be somewhat of a challenge.

But there are pointers to look for and this blog will examine that as we explore ways in which buying real estate in the GTA is still possible even for the budget conscious.

Up-and-coming neighbourhoods or those on the cusp of being the next hot real estate pocket often start out as ugly, rundown districts bereft of the badges of gentrification such as young families and thriving commercial activity. Some are former industrial areas. The homeless or people living on the fringe reside there.  Others are just old, outdated and untended neighborhoods that could use an injection of charm and vitality.

About 15 years ago, that was what buyers thought of about Leslieville, Toronto’s tony east-end neighbourhood now known for vintage furniture shops, film studios and cafes. The then derelict neighbourhood needed more than a little TLC. Today, Leslieville real estate prices have reached those of Riverdale and the Beaches.

If you’re looking to get into the Toronto real estate market and have limited means searching out these neighbourhoods might be the place to start. Here are a few signs to watch for:

Following the operations of big-brand retail and foodservice chains such as Starbucks can assist you in determining whether a neighbourhood is worth investing in. The appearance of these often international brands is a barometre for a neighbourhood’s upward evolution. These commercial entities typically do their homework before committing a storefront so their appearance or the announcement of one is a solid sign that your neighbourhood is improving.

The big benefit to either moving into or investing in a neighbourhood on the rise is that if you get in early enough there’s money, sometimes substantial money, to be had.

The first step is to pick a neighbourhood that will gentrify in five to eight years. To do that, look for the early signs of improvement such as people moving into the side streets, fixing up their homes, and adding curb appeal.  Once that happens, the neighbourhood’s commercial district follows with the opening of lively looking cafes and shops. Keep in mind that established gentrified neighbourhoods often border emerging neighbourhoods.

The second pointer is that the neighbourhood must have some redeeming features. Curb appeal is critical. Victorian era homes are a good example of this. Their charm will appeal to younger buyers who often fuel the improvements in an emerging neighbourhood. Try to avoid neighbourhoods with unrelated housing styles that are rundown. That type of neighbourhood will have difficulty making the transition.

The third factor in trying to determine a neighbourhood ripe for improvement is to keep an eye on urban areas near main arteries that are close to transit. Naturally, you will also want to consider schools in the area, restaurants and shops, how walkable it is and other demographics, from household incomes, languages spoken and family types and sizes.

Owning real estate in Toronto can price many out of the market so it’s no surprise some would consider buying a home with a virtual stranger.

That’s the thinking behind co-ownership, a buying concept that is on the rise among non-intimate partners because it helps people get a foothold in the city’s prohibitively pricey market. Of course, your buying partner need not be someone you hardly know. Siblings, cousins, buddies and even co-workers might want to consider this communal approach to housing.

Buying with likeminded family members, friends or acquaintances is made much more feasible given the skyrocketing cost of real estate. But co-ownership also serves another need that’s not often talked about and that is the need to connect with others. Ideally, co-ownership set-ups fill social and practical needs that serve both sides. For example, an elderly single woman provides child care for a young couple, while the young couple oversees outside maintenance such as snow shovelling and lawn care. Or perhaps one owner walks the other’s dog, while the other oversees minor home maintenance issues that inevitably arise.

Naturally, it’s important to have meaningful conversations with your co-owner before jumping in. You will need to know about each other’s personal finances, future plans and make provisions should one decide to opt out of the arrangement at some point down the road.

Among banking institutions and the legal community, co-ownership is a concept that is in the process of being normalized. A few years ago, Meridian Credit Union, for example, launched its friends and family mortgage, which allows up to four people to be placed on title at no extra cost. And DUCA Financial Services Credit Union launched its More Together mortgage, which allows up to six individuals on title.

Communal or co-op living arrangements have existed in one form or another for years. Alternative living arrangements are what many single, divorced or widowed baby boomers seek as they grow old and reject the notion of large institutional retirement and nursing homes. Many seek companionship and a sense of community and find shared accommodations to be the ideal setting as they age.

The demand for a three-bedroom home is still a strong one but many homebuyers are now drawn to two-bedroom dwellings thanks to changing lifestyles that rethink the traditional way we look at housing.

There are plenty of reasons that go into deciding if you require a two- or three-bedroom residence and often affordability, convenience and ease-of-use factors play a big part. Where you are in the life cycle might be a first question you want to ask yourself. Do you have young children who will inevitably outgrow the coziness of sharing a bedroom at some point? Are you an empty nester looking to take long and expensive trips so less house means fewer headaches and expenses? Maybe you are just starting out so budgeting and economies of scale are top of mind. A smaller home would definitely fit the bill.

It’s true that three-bedroom homes are the most desired, according to the National Association of Realtors. Actually, it’s three bedroom homes with two-bathroom dwellings that appeal to the largest numbers, which are families with one or two kids still living at home.

So it’s a pretty safe bet that if your home comprises two bedrooms only it won’t be highly sought after by couples looking to start a family or those who already have children. That third bedroom harbors a lot of power within our mindset. Often it holds hopes and dreams to act as a den or office, as a guest room for visiting family members and friends or perhaps as a play room for little ones.

But homebuyers come in all shapes, sizes and preferences. And plenty are not looking to add to our population numbers. Often they are professionals who have disposable income thanks to the absence of children and frequently they are looking for features that offer luxury and comfort.

Transforming that unused third bedroom into a grand spa bathroom complete with steam shower, heated floor, oversized tub and dressing space might be just the answer for childless buyers looking for a little self indulgence.

Not only will you get to enjoy the comfort of a luxury bathroom while living there, but when the time comes to sell, there will be plenty interested buyers who feel the same way.

There’s no need to let the myth of having a third bedroom get in your way, especially if you have upscale features that make up for the difference.

There’s no time like the present to be an advocate for living in smaller spaces.

Minimalism is trending like never before and home de-cluttering organizers are the balm for our over- consumerized soul. Look at the popularity of Marie Kondo, the Japanese organizing guru whose books have sold millions around the world and who has a popular Netflix series about how to live better with less.

At some point in our lives, we will likely need to live in spaces that are smaller than what we’re accustomed to. Maybe you’re faced with downsizing and selling your four-bedroom for a two-bedroom condo? Perhaps you’re a single professional looking to get into the real estate market? Or maybe you’ve experienced job loss and a reduction in income that necessitates a less costly living space? Change is seldom easy so let’s consider ways to make the transition a bit smoother:

Keep it tidy:

Smaller spaces get dirty and cluttered much more quickly than bigger spaces. Spend time thinking about ways to organize your new home so that it looks comfy without being messy. Everything should have a home, preferably out of sight, though this isn’t always possible. Consider your walls as they often don’t get used enough for storage. Use pegboards, shelving and the many customizable racks for storage as well as display purposes.

Lighten up:

Always been a fan of furniture that is big, heavy and weighty-looking? Time to change it up. Overstuffed sofas and chairs will overpower your space, making your lay-out look cramped and overwhelming. Go for lighter styles such as coffee tables and chairs that show off their legs. That results in the illusion of more space as the look is more orderly and light. Consider multi-functional furniture, a coffee table that doubles as a dining table and wheels on tables and seating so they can be easily moved out of the way. And watch what colours you choose as a lot of dark shades may also work to overpower your space. Same goes for window coverings and paint.

Change the scenery:

You may experience cabin fever in your new smaller digs. Find places outside your home that offer you comfort, joy, amusement and peace. Is that favourite coffee shop with the Zen vibe a place you like to linger and people watch? Do you get a kick from observing the fast twists and turns performed at your local skateboard park? Or maybe your thing is a comfy chair and the kind of quiet and solitude that befits your local library?

Sources: www.apartmenttherapy.com, www.bhg.com, www.freshhome.com

It’s believed that predicting the future of any real estate market is a little like rolling the dice. You always hope for the best but know that factors outside your control can tamp down even the most optimistic expectation.

That said, 2019 should be a year in which we approach the Toronto real estate market with guarded optimism. Given its unbridled and record-setting growth in recent years, a kinder, gentler market may be just what the doctor ordered.

2018 was a year of self control for the local market thanks to a number of factors, including rising interest rates and tougher government policies. The government-imposed stress test for mortgages definitely played a significant role. Under the new policy change that came into effect one year ago, buyers had to qualify for a mortgage that was larger than they were applying for. This stricter stress test was imposed due to fears that homebuyers would not be able to service their mortgage debts should interest rates rise suddenly.

Earlier, in the spring of 2017, the Ontario government’s Fair Housing Plan, a move that also caused the market to struggle. The 16-point plan called for a number of policy changes, including expanded rent controls to all private rental units and a 15 per cent tax on foreign buyers.

According to the Canada Mortgage and Housing Corporation (CMHC), existing home sales and starts will post a partial recovery in 2019 after a somewhat dampened 2018. The CMHC expects that buyers will re-enter the market based on the strength of strong-than-expected job growth and in-migration.

“Our key take-away from this year’s outlook is moderation in Canada’s housing markets for 2019 into 2020,” says CMHC chief economist Bob Dugan. “Housing starts are expected to decline from the higher levels we’ve seen recently. We expect resales in 2019 and 2020 to remain below recent peaks while prices should reach levels that are more in line with economic fundamentals such as income, job and populations growth.”

The CMHC report goes on to say that given the GTA’s balanced market conditions, it expects moderate sales growth and the growth of home prices in line with inflation over the next two years. “The rising costs of home ownership will result in strong rental demand while new supply will add some upward pressure on vacancy rates,” says the housing market activity report. “Toronto buyers should see more housing choices as builders concentrate their efforts on new high-rise projects.”

According to the Financial Post, Toronto’s booming condo development will slow down with growth continuing but at a more restrained pace.

Sources: www.financialpost.com, www.cmhc.ca, www.newswire.ca, www.torontostoreys.com,

January is the perfect time to do a review of your finances. It’s a good idea to devote some time this month to looking over previous expenses and earnings, both expected and unexpected, to determine how last year’s pattern may or may not shape this year’s.

That said, January is also prime time to get our financial house in order. Since your mortgage is likely your biggest and most long-term expenditure, let’s look at how we can support paying it down while covering all the other substantial expenses – retirement, vehicles, children’s education — that life throws our way.

Start with a budget

You need to take a long, hard look at your finances. You should know where most of your money, some of your money and a little of your money went last year. Do you know, for example, that 10 per cent of your net earnings went to local restaurants? Are you wasting money on gym memberships and other services that are rarely used? For one month, save every receipt received by you and those in your household. Include charges to credit cards and automatic withdrawals from bank accounts. What you’re spending your hard-earned cash on may surprise you at the end of 30 days.

Make a game plan and be specific

It’s important to specify what exactly you want to do with your household finances – save for retirement, save for the kids’ education, save for a vacation. We can all say let’s save more and spend less but without a specific and realistic amount to shoot for, you’re likely going to fall short. Can you afford to plunk down an extra $500 a month on your household debt? Is that realistic? There’s no point in earmarking numbers you can’t maintain. Perhaps $200 works better.

Consider automatic payments

So you want to save for a big European vacation three years from now? Set up a vacation fund and have your bank withdraw automatic payments each month. The same goes for a retirement fund or savings for your child’s post-secondary education.

Don’t spend, save instead

This is much more difficult than it sounds. Try to commit one day a month or week even when you don’t spend a dime. Bring your lunch to work, watch Netflix with the kids and cook dinner from what you find in the fridge and freezer. This could prove to be a fun and eye opening exercise for the whole family.

Look at your mortgage

Since this is your largest outlay, try paying it down quicker, if you can. Bi-weekly payments pay down your mortgage debt much faster than monthly payments. Another painless method is to round up your payments. So if you’re paying $667 every two weeks round up the payment to $700. You’re not likely to notice the extra $33 but your mortgage will. If you inherit or win money consider plunking it down on your mortgage. Use your raise at work or your annual tax refund to help pay down the principal of your mortgage. Most lending institutions allow you to make an extra mortgage payment per year that is applied directly to the principal. Even seemingly small amounts can add up to big savings.

Sources: www.ratesupermarket.ca, www.capitalmortgages.com, www.canadianliving.com

A new year always brings with it hope and promise for a bigger, brighter and better future. Given that level of optimism, it’s probably a good idea to have some kind of strategy in place to help you achieve your goals.

Here are a few suggestions to help you reach your 2019 real estate related resolutions:

Buyers 

Do you have any idea about your credit rating? How does it fare? You may want to inquire before you apply for a mortgage just to be on the safe side. Speaking of mortgages, get pre-approved for one before you go house hunting. This will indicate what price range you can afford based on a review of your finances. A pre-approval will also provide written confirmation of the lender’s interest rate for a certain period of time. This could come in quite handy especially with interest rates predicted to rise.

Know what you are getting into. The dream of home ownership is fabulous but sometimes consumers get caught up in the pretty little details and don’t factor in the hard reality. A home is probably the most expensive proposition you’ll make. Can you afford it? Is your down payment sizable enough? What is your household income? Is it expected to rise? What are your long-term income/revenue prospects? Do you have enough to cover closing costs, estimated in the range of 1.5 to four per cent of your purchase price?

The Canada Mortgage and Housing Corporation (CMHC) offers a wealth of information and tools to help you figure out if home ownership is right for you. Visit www.cmhc-schl.gc.ca to learn more.

Sellers 

Find a reputable and qualified agent, not your cousin Jimmy. Remember you will be spending a fair bit of time in their company so it’s wise to select a realtor you like or, at least, can tolerate.

Get your financial house in order. Yes, you need to wrestle with your finances when selling as well. Will you have enough after selling to purchase another home? Or do you plan to invest your proceeds or perhaps start a new business with the money? Remember that there are costs you will incur as a seller – home repairs, legal and realtor fees, house inspections and appraisals.

The work. Know that there will be a lot of it. From keeping your house tidy and clean at all hours to getting rid of or reducing clutter, overstuffed closets, sheds and garages, junk drawers, unpleasant smells, unsightly decorating – and on and on. Remember the key is to pare down so store or pack away rarely used small appliances, jewelry, toiletries, out-of-season clothing, reading material, unused toys, artwork and photographs.

If you want your home to present well you will need to give it a serious once over and fix and replace outdated, broken and shabby items. Ask friends or your realtor for help with this as an extra set of eyes will identify problems that you don’t readily recognize.

Sources: www.nexthome.ca

Condo amenities and condo fees are a funny thing. Since one very much depends on the other, you need to be mindful of what features you really need because it’s easy to get sucked in by splashy features that sound like they will improve your life.

Does the notion of star gazing each evening from a 30-storey observatory platform appeal? How about mini putting? Maybe you would like access to a communal dog grooming salon where you can wash your Doberman after a muddy walk? Perhaps shooting hoops on a basketball court would do?

Developers are continually looking to up the ante on their development’s amenities in an effort to market their condo buildings. While some might say an outdoor TV-viewing area is a bit much, others might be pushed into buying because they think that’s the best feature ever.

The point is these amenities have to be paid for, as does the maintenance of them. As your condo ages, expect your fees to rise in an effort to cover the cost maintaining declining amenities such as hot tubs and swimming pools. If you’re not a swimmer or a hot-tub soaker, you may decide that paying for those features is not worth it.

Condo fees are nothing to sneeze at. In fact, next to your mortgage payment, they are likely your next biggest expense in owning a condo. According to Condos.ca, the average condo fee in Toronto in 2017 was 65 cents per square foot. On a 1,000 square foot condo that comes to $650 per month. Condo fees in the city naturally vary and can drop as low as 50 cents per square foot to as high as $1.

Though condo fees also cover other expenses of condo life such as some or all of the utilities and the building’s reserve fund, there are some developers who take a different approach. One reportedly surveyed and then listened to residents on how they wanted to use the spaces. Others say developers here should model after their European counterparts who offer amenities that might be described as no frills.

While Zen gardens, yoga studios and squash courts sound tempting, you need to think long and hard as to whether you would actually use them. Know what you realistically will use. Understand the difference between the must-haves and the nice-to-haves.

Sources: www.condoessentials, www.ratehub.ca, www.globeandmail.com, www.condo.ca