Saturday, March 19, 2011

That Fixer Upper Might Be More Then You Thought


An online survey of 1,001 Canadians who have purchased a home within the past two years, or intend to buy a home in the next two years, shows that gender plays a role in the selection of new homes vs. 'fixer-uppers'.

More men than women surveyed in the 2011 TD Canada Trust Home Buyers Report preferred fixer-uppers because they are more affordable (14 percent vs. 8 percent) and allow for renovations to suit individual tastes (37 percent vs. 29 percent).

There is a certain romance in popular culture around the ‘do-it-yourself’ renovation, spawned by ads showing smiling, stress-free couples nonchalantly flirting over bowls of cereal in their Euro kitchens or effortlessly applying the latest paint colours to quaint summer cottages; but many who have lived through a major do-it-yourself project will warn that costs can quickly spiral - especially if you're not as 'handy' as you might think.

Ninety-seven percent of all survey participants indicated that cost was the most important consideration in the home buying process. While the price of a fixer-upper may be lower up front, renovations can quickly eat up savings on monthly mortgage payments if you underestimate the price of materials and labour, or have to repair ‘do-it-yourself’ mishaps.

According to a recent report by the Canadian Environmental Law Association, renovations on old homes might even pose risks to your family’s health.

When it comes to selecting a fixer-upper, your best asset is someone with experience in home renovations. Be sure that you understand potential hidden costs before you jump on that attractively-priced gem in the rough.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record -

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.

Thursday, March 17, 2011

Canadian Mortgage Rules Change Tommorow


The Government of Canada announced adjustments to the rules for government-backed insured mortgages. These changes are an effort to address concerns about the increasing levels of Canadian household debt. They are designed to ensure that homebuyers don’t risk their financial security by buying more than they can afford.

So what do these adjustments mean to the average homeowner?

Here’s a look at the new rules that were announced by Finance Minister Jim Flaherty:

Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent.

By reducing the amortization period for new high-ratio mortgages, monthly payments may be more, but Canadians will be able to decrease the amount of interest paid on their mortgages. According to Adrienne Warren, Senior Economist for the Bank of Nova Scotia, the impact of the change to amortization would be relatively modest, at about $100 more per month in carrying costs for an average home.

The new rule takes effect March 18, 2011 and will only affect people buying homes after this date. If you already have a mortgage (either a 35 or 40 year) you should be able to keep it through your renewals.

5% continues to be the minimum down payment.

Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 % from 90 % of the value of their homes.

This new rule is an attempt to promote “saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers”.

This rule also takes effect March 18, 2011

Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit (HELOCs).

According to a Globe and Mail interview with personal finance expert, Rob Carrick, there has been no indication of upcoming changes to how lenders do business. In theory though, by withdrawing government-backed insurance, lenders could start charging higher interest rates on new credit lines or create tougher qualifying requirements.

Home equity lines of credits have been growing in popularity as a borrowing tool and the Federal Government is attempting to slow the growth of this type of borrowing.

This rule takes effect April 18, 2011

No matter what situation you’re in, whether you are a current homeowner or are in the market for a new place, it’s a good idea to take a hard look at your finances and know where you’re money is going.

There are still many mortgage options for homebuyers. Do your research and talk to a Realtor or a mortgage broker to find out what your options are.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record -

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com

Friends, followers and Connections are the way of the future.

Tuesday, March 1, 2011

first time buyers to seek smaller spaces


High home prices are putting pressure on many first time buyers to seek smaller spaces to save on monthly mortgage payments.

Not all small spaces are created equal; it is important to define your lifestyle needs in addition to square footage when determining monthly payments. What are some features of small spaces that can help to reduce your monthly housing expenses?

The 2011 AVID Design Driver survey is a popular annual report on trends in home buyer preferences, geared towards the building industry. Key findings in this report also offer insight into how home buyers can save money and maximize use of space.

Here are four desirable housing features mentioned in the report that could improve your bottom line simply by design.

Energy Efficiency

High fuel and utility costs can shrink your disposable income. Energy efficiency in heating, cooling and household appliances is increasingly becoming a crucial home design feature. Buying a condo or apartment that is built for utmost energy-efficiency is not only good for the environment: it’s good for your pocketbook.

Functional and Space-Saving Design


First time buyers are increasingly squeezed by the price per square foot of homes, especially in urban centres. But some designers do a great job of making the most of smaller spaces and leaving nothing to waste. A home that makes every inch of space functional for work, rest and entertainment can give you the feel of a larger home for less money.

Entertainment-Friendly Kitchen


Whatever the size of the space, a well-designed, large and open kitchen is a perennial standout for home buyers. An attractive kitchen space will likely encourage you to eat and socialize more at home instead of draining disposable income by dining out. It's also a good resale investment.

Convenient Location

Residential buildings located close to bike and walking routes, shopping and work hubs encourage you to leave your car at home, which can help you to save thousands of dollars annually on vehicle maintenance expenses and fuel costs.

A potentially costly mistake to avoid as a first time home buyer is to rush in to a purchase without first considering your lifestyle, existing monthly expenses and debts, as well as personal plans for the future. Don’t be swayed by attractive selling features that don’t suit your needs or are beyond your affordability ceiling.

It’s Your Career – I’m Here to Support YOU!

Constantine Isslamow | Broker of Record

CENTURY 21 United Realty Inc. Brokerage
387 George Street South, P.O. Box 178
Peterborough Ontario. K9J 6Y8
Direct Line: 705.743.4444 | Fax: 705-743.3702 | E-Mail: Constantine.Isslamow@century21.ca
www.ConstantineIsslamow.com