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Start your winter home preparation now - Yourhome.ca

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Do renters need insurance?

August 16, 2011Jennifer Brown
SPECIAL TO THE STAR

Contents insurance is something most renters don’t put too high on their list of priorities.

In the grand scheme of expenses, many feel it’s a cost they can do without, believing the likelihood something bad will happen is slim.

According to the Insurance Bureau of Canada, about half of all renters don’t have insurance, especially young people. They also fail to appreciate the full value of their clothing and personal belongings.

But there are other factors to consider, such as a tenant’s legal liability.

For example, you could be liable if your toaster oven causes a fire and it affects other units, or if you accidentally leave a tap on in the bathroom and the water causes damage.

The building owner could charge you for the cost of the damages, but they would be covered under your contents insurance policy. Without insurance, it would come out of your pocket.

But can a landlord make renting a unit conditional on having contents insurance?

Francis is a Toronto tenant who was looking to sublet her apartment. Her landlord met with the people interested in subletting and insisted they would be required to have contents insurance.

Francis and her roommate were never asked about contents insurance and she has never owned any in the 10 years she’s been renting. Although she understands she won’t be covered in the event of a fire or theft, she doesn’t think her furniture and possessions are worth the expense of insuring — especially since the odds of anything happening seem quite low.

Barrie-based paralegal April Stewart says contents insurance isn’t required under Ontario’s Residential Tenancies Act. However, landlords do have the right to insist on seeing proof of insurance prior to accepting a tenant or a sublet.

“Landlords who wait until after giving possession can try to evict based on no insurance, however there are inconsistent decisions on the matter,” says Stewart.

In the 2005 case of Stanbar v. Joseph Rooke, the Ontario ...read more Do renters need insurance?

CREA Updates Resale Housing Forecast

CREA Updates Resale Housing Forecast

OTTAWA – August 16, 2011 – The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service^®(MLS^®)  Systems of Canadian real estate Boards and Associations for 2011 and 2012.

Overall, sales activity and prices remained stronger than expected in the second quarter. Sales momentum was also better than expected heading into the third quarter. As a result, the 2011 national forecasts for sales activity and average price have been raised slightly.

National sales activity is forecast to reach 450,800 units in 2011, up less than one per cent from levels in 2010. CREA had previously forecast a decline of about one per cent for activity in 2011. Erosion in affordability due to higher prices has prompted a small downward revision to the outlook for sales in 2012.

British Columbia’s 2011 sales forecast has been revised slightly higher, in recognition that home sales there appear to have bottomed out sooner than previously anticipated. Stronger than expected activity in Ontario offset slightly softer than anticipated demand in Quebec, Manitoba, and Newfoundland in the second quarter of 2011. Accordingly, the Ontario sales forecast for 2011 has been raised, while the outlook for activity in Quebec, Manitoba, and Newfoundland has been revised lower.

National sales activity in 2012 is forecast to ease seven tenths of a percentage point to 447,700 units, which is roughly on par with its ten-year average.

“While there had been some talk of potential interest rate increases, that hasn’t happened,” said Gary Morse, CREA President. “In fact, mortgage interest rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012. It’s a great opportunity to purchase a property with financing at very favourable rates.”

The national average home price is forecast to rise 7.2 per cent in 2011 to $363,500. This is an increase from the previous forecast, reflecting continued strong price growth in Vancouver in the second quarter of 2011 and acceleration in prices elsewhere, particularly Toronto. These two markets exert an outsized influence on the national average due to their relatively high level of activity and average price.

The national average home price is expected to moderate in the second half of 2011, returning to normal following a heavily skewed start to the year. In the first half of 2011, the national average home price was pushed upward by a surge in multi-million dollar sales in selected areas of Greater Vancouver and a higher than normal share of overall sales in more expensive markets.

“Some of the expected moderation in the national average price is seasonal, with average price peaking in many local markets during the second quarter of any year,” said Gregory Klump, CREA’s Chief Economist. “Elevated shares of provincial and national sales activity in Vancouver and Toronto are also expected to return to more normal levels, contributing to an anticipated moderation in average price in British Columbia, Ontario, and nationally.”

“Additional new listings are anticipated to result in a more balanced resale housing market in most provinces,” said Klump. “The national average price is forecast to stabilize in 2012, although at a slightly higher level than previously expected.”

For more information, please contact:Pierre Leduc, Media Relations
The Canadian Real Estate Association
613-237-7111 or 613 884-1460
Email: pleduc@crea.ca

CREA Residential Market Forecast:

* Provincial weighted average price for Quebec; does not affect unweighted national average price calculations. Information on Quebec’s weighted average price calculation can be found at: http://www.fciq.ca/immobilier-statistiques-definitions.php

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

BuzzBuzzHome's Blog!: Prices for new Canadian homes up by 0.3 per cent

BuzzBuzzHome's Blog!: Prices for new Canadian homes up by 0.3 per cent: "BuzzBuzzHome Corp. August 11, 2011 According to data released today by Statistics Canada, new home prices in Canada increased by 0.3 per cen..."

4 Bedroom Home for Rent In The Heart Of Lorne Park School District

1624 Gallant Dr
Mississauga, Ontario
Lorne Park
Map Coord: 472-38-Q
$3,200 per month

This home is located in the heart of Lorne Park school district and situated on a beautiful pool sized treed lot. It is approximately 2700 square feet plus finished basement.  This home is tastefully updated and renovated throughout. New kitchen cabinets with granite counter tops, pantry and island as well as large eat-in area. Spacious open concept layout, hardwood floors and large principle rooms. 
Minutes away from mature parks and located in a great walking area. 
Ready To Move In Condition. Close To All Amenities, Schools, Shops, Park. Easy Access To Hwy QEW
Extras: Fridge, Stove, B/I Dishwasher, Washer, Dryer, Central Air, All Existing Window Coverings, And Elf's, Garage Door Openers. Furniture In The House Included, If Unwanted, The Landlord Will Remove.

·	Detached	·	Rooms: 9 + 2	·	Bsmt: Finished
·	2-Storey	·	Bedrooms: 4 + 1	·	Heat: Gas/Forced Air
·	Exterior: Brick	·	Washrooms: 4	·	Apx Age:
·	Lot: 60 X 109.7  Feet	·	Kitchens: 1	·	Apx Sqft: 2500-3000
·	Garage: Built-In/2	·	Family Rm: Y	·	Pool: None
·	Drive: Pvt Double	·	A/C: Central Air	·	Parking Spaces: 2
·	Central Vac:	·	Laundry Lev: Main	·	Waterfront:
·	Laundry Access: Ensuite	·	Furnished: N	·	Private Entrance: Y
·	All Inc: N	·	Lease Term: 1 Year	·	MLS#: W2168893

How to boost your rental income

Finding the right rental property is certainly one of the first steps to success in owning investment real estate. Below is a quick start guide in finding the right property that will help you generate additional income. First, consider whether you want to look for rental property on your own or whether you wish to use an agent to assist you in the process. In many cases, agents may know of properties just coming on the market, which may not have hit MLS. 

An agent should be well-versed in the local neighbourhood, which can be especially important if you are not from that area, however make sure the agent you choose has a rental property themselves. If they don't, I highly recommend looking for one that does to ensure you are speaking the "same language." 

Before you actually begin looking at prospective properties, make sure you have your finances in order. Ideally, you should check your credit report several months prior to purchase to be certain there are no inaccuracies that could prevent you from obtaining a mortgage. Be sure to check with at least two bureaus to get a clear picture of your credit standing. Assuming your credit is in order, this can help you to obtain a more favourable interest rate. 

Be sure to check with the local police department to find out whether the area is safe and if you will need to provide any additional security. Drop by City Hall to determine whether there are any zoning plans for the local area that could potentially lower, or perhaps increase the value of the property. 

Research prices, rental rates, vacancy rates and tenant absorption rates. If housing prices have gone down recently, this could be an indication that rents will also be lower. Conversely, if prices are high, this could indicate a high demand area in which you may be able to charge a higher rental amount. Carefully consider the advantages and disadvantages of purchasing a property labelled as a "fixer-upper." 

While you may be able to purchase the property for less money than other properties, you may find that you have purchased a "money pit." In the event that major repairs are required, equating to a large investment of both time and money, it would be better to pay more for a property that may require less attention but still produce cash flow. 

You should hire a professional property inspector who checks many things in a property that could cost you money. Knowing if the electrical meets code, no lead paint, plumbing is good and the overall property is safe gives you confidence in the long-term value of the property. 

An inspection can often reveal problems you may not notice but could ultimately cost thousands of dollars to correct. Lastly, just because you really want to get into the market, do not make the mistake of settling for an inferior property. This can come back to bite you in many ways which usually is right in your bank account. It all comes down to the numbers. 

Guide to Inexpensive Property Repairs 

The worst thing you can do is get emotional when looking to fix up a rental property. You must remember... you are not living there. If you want to make money on your investment property, you must keep repairs logical and to a minimum. Since repairs are a necessity to attracting and maintaining quality tenants, it is also important to learn how to make these repairs on a limited budget. 

Just like in selling, you want to make a good first impression. The first area a tenant will see is the entryway. Tiling the foyer with a few bright ceramic tiles can spice up the look of the entrance for a minimal cost. Some other effective, inexpensive repairs can begin with replacing all switch plates. Swapping out old light fixtures is also a very inexpensive way to make significant changes. When trying to attract good tenants, interior doors are something a renter will notice. While changing the doors, be sure to also consider changing the handles as well. 

Older door handles can really make a place look drab. For a few dollars, you can easily replace old handles with brass or brushed metal handles. Take a look at the existing trim. If it appears worn or cracked, it could be time to replace it. If it's in reasonable shape, make sure you caulk all the cracks and spaces between the trim and the walls. This creates a really tight look to the floor and window trim. 

Painting walls with a flat paint will hide a lot of imperfections that may be there. Kitchens and bathrooms are very important areas. While it may not be practical to replace the cupboard doors, painting them with a semigloss and replacing the knobs for more contemporary knobs is a nice inexpensive touch. You can also replace old taps, sinks and toilets very inexpensively. 

Setting Your Rental Rates 

Formulating a rental price for your unit can be challenging. You need to look at rental ads in local newspapers, Craig's List or Kijiji to research the fair market value rents for your area. Most tenants look for convenience when searching for a rental property by looking for a place that is near their work or close to their children's school, so consider location and amenities when determining rental rates. 

For example, a three-bedroom unit in one end of town may rent for more than in another part of town based on location and amenities. It is important to keep in mind that there is a point when rental rates can reach a cap. 

When interest rates are low and rental rates are high, tenants will quickly make the connection that it just doesn't make sense to rent any longer and it can be less expensive to purchase a home. If this is the case, moving the tenants into a rent-to-own program may be a good strategy as it will keep the cash flow high and you have a built-in buyer. To help keep your finger on the pulse of the market, join a landlord association in your local area. 

Any emerging trends will affect all landlords equally. Any upward or downward trend in the local economy could have an effect on your rental rates. Make sure you keep track of whether there have been job losses or new job creation in the local area. Lastly, keep in mind what extras your property offers in terms of onsite washer/ dryer, AC, dishwasher, on street or driveway parking, garages etc. This will play into your rental rate determination. 

Showing Your Property Effectively 

It is as important to put your property's best foot forward in renting as it is when you are selling. Curb appeal is as important to tenants as it is to buyers. Prospective tenants are put off by properties that have a dilapidated exterior. Even small rental properties can create a good first impression. Repair issues should always be addressed prior to showing a property to prospective tenants. It is never a good idea to show a property which is still in the process of being repaired or renovated. Wait until the property has been completely fixed up before showing it. 

Cleanliness is of utmost importance. There is nothing worse for making a bad impression on a prospective tenant than a filthy property. Above all, be certain that the carpeting is clean. Ideally, it is best to have the carpet professionally cleaned and allow plenty of time for the carpet to dry before you actually show the property to anyone. 

Never put off replacing worn carpet as this can cause problems in attracting quality tenants. Get to know the best points of the property before you show it in order to point out its best features. Before you actually show the property, take time to look at it through the eyes of the renter. If there is something that catches your eye that appears negative, it will to the prospective tenant as well. If the temperature outside is cold or hot, be sure to set the temperature inside the property so that it will be comfortable. Generally, most people will not want to stay long in a property that is either too hot or cold. If the temperature is uncomfortable, there is a good chance that most prospective tenants will not stay around long enough to see the best features of the property. Make sure that you turn on the lights before you show the property. 

This is particularly important if you are showing the property at night. If the property is not well lit, prospective tenants may wonder if you are trying to hide something. The few dollars you will spend on having all of the lights on during showings will often translate into attracting good quality tenants. Do not hesitate to show off the exterior grounds and any good feature of the property. 

The key is to give prospective tenants an idea of what it is like to actually live there by showing off the grounds and perhaps something special in the immediate area. Lastly, make sure you are prepared for all showings by having a rental application and a copy of the lease you use. You also need to have decided on if you are including any deposits for security, pets, keys or last month's rent. 

Taxable Deductable Expenses 

As a rental property owner, it is important to understand what expenses you can deduct in order to improve your profit margin as much as possible. It is prudent to speak with your accountant in order to ensure you have a good understanding of the tax-deductible items. Below is a non-comprehensive guide to some of the most common items, which are frequently deducted as a rental property owner. An important thing to understand is the difference between improvements and repairs. Many owners often think that everything they fix on a property is tax-deductible. 

This is not always the case. A repair is essentially anything done to keep the property in good, safe condition. Consequently these repairs are tax-deductible in the year in which the repair is done. Examples of repairs would include painting, replacing fixtures and landscaping as well as all labour costs. An improvement is something that you do to the property in order to add value to it. 

As such, it is not usually tax-deductible at the time when you pay for them. That said, you may be able to recoup the cost of these capital improvements by depreciating the cost over the life expectancy of your property. Common examples of capital improvements would include adding a garage, a new roof, new windows, replacing the wiring or the plumbing. You will be able to deduct travel to and from your property. You can choose to deduct the exact amount or choose to use a standard mileage rate. 
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GTA REALTORS® Report July 2011 Resale Housing Market Figures

To see full report Click Here

Buying and Restoring Historic Homes

It is interesting to note that the National Registry of Historic Places requires a home to be at least 100 years old and look much the same as it did when built. In addition to having the authentic architectural character of a home built in its period, the historic home also has a cultural significance. Moreover, municipal and provincial rules may amend the national rules to include other components.

Why Do Consumers Buy Historic Homes?
You may be charmed by the nooks and crannies of a colonial home; you may be awed by the fact that you may live in the place a poet, artist or famous explorer once called home. Of course, there are also the more tangible benefits of receiving investment tax credits, heritage tax breaks.

Is Restoration Difficult?
Restoring a historic home can differ substantially from remodeling any other kind of residence. That being said, the restoration does not necessarily have to be overly costly or time consuming. First and foremost, you need to understand what the regulations are with respect to restoring historic homes. You may not be able to use certain building materials or even color schemes that upset the integrity of the structure's appearance. Fortunately, there are a number of contractors well versed in taking on restorations. There are sometimes grant monies available to bankroll the work, helping to offset the actual costs of restoration.

Appreciating the Value of Historic Homes
Similar to owning an antique, the value of historic homes does not necessarily drop with the occasional nick or scratch. Even those properties which feature electrical wiring that is hopelessly antiquated and violate virtually any building code known in your municipality, can have a relatively high value. You do need to be aware of old plumbing and electrical systems that could compromise the safety of dwelling in one of these historic homes. This type of repair can be costly as well, since it frequently involves replacement of entire systems.

Buying Restored vs. Needing Restoration
A turnkey historic home is a tempting proposition. The hard work of ferreting out period decor, door knobs and paint is done by someone else. All you need to do is move in your furniture and enjoy the experience. While buying restored may be the path of least hassle, it is also the path of maximum upfront expenditure.

Buying a historic home in need of restoration can greatly decrease the sales price of the home; however, it could lead to costly surprises when restorations are more extensive and costly than anticipated. Each path has a number of pros and cons, and choosing one over the other really depends on your comfort level and availability of funds.

Never Buy Without Inspections - What Types Are Available and Why Are They Important?
Because of their age, a potential home buyer should never overlook an inspection on an historic homes. Home inspectors specializing in historic properties can easily ascertain which wear and tear is to be expected, and which point to unfettered decay and costly restoration requirements. Even old technology - such as a home's heating system and plumbing  - can be in tiptop working condition - though you might prefer to replace it to a more energy efficient system. Don't forget to inspect septic and well system as well.  

For more information email me your questions.