Tips for Waterloo Region First-Time Home Buyers

The pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results will be to your benefit. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Home ownership is the cornerstone of financial independence and security. It may seem a daunting prospect to younger people or first-time buyers, but it is achievable.

Like many would-be homeowners, you may be wondering how you can possibly afford to buy your first home. Even if you think you can’t afford a home, these saving tips and financing strategies can take you there sooner than you think and turn you from a renter into an owner.

Develop a culture of saving
The first priority for you should be to develop a culture of saving. This not only helps you in budgeting and planning for the future, but also satisfies banks and other lending institutions that you have a clear commitment to save.

Start an automatic savings plan
Saving for a down payment can be a financial challenge, but it’s a step forward to owning your dream home. Make saving automatic by setting up an automatic savings plan at your bank to regularly move a specific amount of money directly from your chequing account to a savings account. You’ll be surprised at how much you can save and how quickly the “pay yourself first” approach adds up.

Borrow from yourself
The federal government’s Home Buyer’s Plan (HBP) lets you borrow from your Registered Retirement Savings Plan (RRSP) to help purchase your first home. You and your partner can each withdraw up to $20,000, provided it’s not locked-in and the money has been in the RRSP for at least 90 days.  You have to repay the loan in installments over the next 15 years to avoid a tax hit. 
 
Take a holiday from tax
If you open a new Tax-Free Savings Account (TFSA), you won’t pay any tax on earnings, which will help you compound your savings. You can contribute up to $5,000 a year to a TFSA, and save for anything you like, tax-free.
 
Review your mortgage options
Once you make the decision to purchase a property, the next choice is the type of loan to suit your budget. The two most common types of loans are the variable interest rate loan and the fixed interest rate loan.  

You can now choose to pay back your mortgage over 25 or 30 years, instead of the traditional 20-year amortization period. This means you will pay more interest over the long term, but you can reduce monthly payments to get into your starter home. You can always change this later, once your income rises and you can pay your mortgage down faster.
 
Get into a starter house
Try to be as flexible as possible when choosing your first home. Unless you are status conscious, your first home doesn’t necessarily have to be your dream home. You could settle for a starter home, which you can afford with a small down payment and easy mortgage instalments. There are plenty of lower-priced houses out there in need of repair, with some "Do-It-Yourself" projects where you can add more value to the house. Just be careful not to buy a property where the cost of repairs will eat up any profits you might make when you sell.

In just a few years, you will build enough equity in your starter home to make it easier for you to sell and move into to your dream home. Buying your first home is an exciting process. After all, your home could be the largest asset you’ll ever own. Being able to finance most of its cost will take a load off your back in the future.

Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labour-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account. So consider whether you're ready for the expense and effort of homeownership before committing.

Top 10 Tips for Staging Your Home For Sale in Kitchener -Waterloo

Home Staging is a proven system for preparing properties for sale. You aim to present your home in the best possible light to win the hearts of prospective buyers. With Staging, the focus is shifted from the furnishings to the home itself, the views, the space, and the unique features of the property.

In preparing your house for sale, you need to take a step back and have the mindset that this is no longer your home but your investment. You want your home to stand out from the crowd and have a broad buyer appeal. Following these 10 tips will help you sell your house sooner and possibly for more money.

1. Curb Appeal – stand back and view your home as if you were seeing it for the first time. This is the ‘first impression’ stage. Depending on the season, you may want to have pots of colourful and attractive flowers to greet buyers; a clean and inviting doormat; new and shiny door handles and/or knockers with a freshly painted door.

2. Declutter – start your pre-pack as soon as possible. You need to decide what you are going to keep, give away, sell or throw away. You may rent storage lockers so you can start to clear out what is not going to make the house look good.

3. Clean – you would think this one is common sense, but let me assure you, I wish it was so! A clean home translates into “They must have really cared for their home.” Use environmentally friendly cleaners where you can, and for hard-cleaning areas, TSP is a good product. Bathrooms and kitchens must be sparkling clean at the very least.

4. Depersonalize – we know you love your family photos and your personal treasures, and for living, they are perfect. However, when it comes to selling your home, you want buyers to focus on the best features of the house and not your personal collection. Pack personal items and photos carefully and store them away so you can showcase them in your new home.

5. A neutral colour scheme is the way to go for selling. Choose only three colours or less to paint your house for selling. If you have an open floor plan, then paint the main floor all the same colour. Bedrooms look good in light sage greens or warm blues like the new aqua.

6. Highlight your home’s best architectural features – place your furniture in each room so that you have very obvious focal points that show off the home’s best selling features. For example, if you have a beautiful fireplace, then place the furniture in a parallel grouping so that the eye is drawn to the fireplace.

7. Decide on the function in each room – if you were using your guest bedroom as your den for living, for selling, turn it back into a bedroom with bedroom furniture in it. If you do not have the right furniture for each room, consider renting it. There are more and more rental furnishing companies opening up every day. If you don’t want to rent, then borrow.

8. Lighting your home to its best advantage – spend money on new light fixtures in brushed nickel or stainless steel. Brass is out, so don’t fight it. There are many low-cost lighting stores to select from, so no excuses for having dated light fixtures.

9. Use window treatments that sell your home – the most popular on the market are the 2” faux woods in a white tone to go with your trim. Decorative side panels will do the trick if you need to add warmth and colour.

10. Flooring needs special attention and is a good investment for updating the look of your home – tile or linoleum is great for entranceways, bathrooms, kitchens, laundry rooms; a good quality laminate or hardwood is perfect for living rooms and family rooms; bedrooms are attractive in a neutral carpet.

By planning and budgeting, you can get yourself to the “OPEN HOUSE READY” stage. Remember that over 79% of prospective buyers have already checked you out through the MLS listings. Will they like what they see?

Happy Selling!

Basement Waterproofing Technologies in Kitchener, Waterloo and Cambridge

Basement leakage is the most common problem found in houses, and over 90% of all basements will leak and suffer damage at one time or another. Some evidence of moisture penetration can be found in almost every house. A house with water problems does not necessarily mean it was poorly constructed. Water can appear in even the best-built home.

Moisture problems can be intermittent. In some houses, water penetration will occur after virtually every rainfall. In other houses, it will occur only after periods of prolonged rain. In most cases, however, the resultant damage does not indicate frequency.

Not all basement leakage problems are solvable, but the majority of leakage problems can be solved by directing surface water away from the building around the foundation or/and using downspout extensions to force rainwater to flow away from the house.

Warning signs of water leakage:

• Mold and mildew: Fungus that grows in damp and dark areas and causes discoloration or musty odors.
• Musty odors: This could be the result of the decay process from mold and dry rot.
• Peeling paint
• Damp spots on walls: Water has absorbed through your walls.
• White substance on basement walls: This is a chemical breakdown of the bonding agent that holds your walls together. The white substance is a sign of possible structural deterioration.
• Cracked walls: Should be inspected to determine the exact cause.
• Rust on appliances, furniture or furnaces.
• Dry rot: Black fungus grows mostly on walls or wooden surfaces, causing wood to decay.

Why is waterproofing important?
A wet basement can dramatically reduce the value of your home. Studies show that most people won't even consider buying a home with water leakage. Selling a home with water leaks can easily result in as much as a 25% reduction in the sale price.

Even if you rarely have problems with dampness or flooding, it's best to solve the problem completely before doing any remodeling work. Permanent solutions can take time to implement. A good place to start is to talk to an independent home inspector who specializes in waterproofing problems.

Damp proofing or waterproofing on walls?
There is a big difference between damp proofing and waterproofing. By definition, damp proofing can retard moisture but, unlike waterproofing, it does not stop hydrostatic water pressure.

To damp-proof, you apply a coat of tar-based material to the outside walls. Tar damp proofing is inexpensive and meets the lowest minimum standard.

Damp-proofing may be acceptable if there is sandy soil and great drainage. But often, there is a high water table or poor soil. Clay holds rainwater, which builds up hydrostatic pressure against the foundation. Moreover, water cannot drain through the undisturbed soil under the footings and the groundwater level rises.

Complete waterproofing is ideal
Good waterproofing is a wise investment. It is not just a coating but a whole system that includes:

1- Redirects water away from the foundation
Different exterior waterproofing barriers vary in effectiveness at protecting exterior walls. But wall anti-leaking barriers do not affect water penetration due to water accumulation at the footer or floor level. The ideal solution is to direct accumulated water away from the foundation and into drainage or pumping systems.

2- Install an interior drainage system
To control leakage in the basement, you may want to install a drainage system on the inner side of the foundation. The floor is broken up along the perimeter of the basement wall, and drain tile is placed in a trench that carries the water to a discharge point or sump pump, which takes the water away from the house.

3- Apply waterproofing compounds to the walls
With mild or occasional capillary seepage, capillary waterproofing materials can be applied to either exterior or interior wall and floor surfaces. If properly applied, they will penetrate several inches into concrete and close off minor cracks by forming crystals in the presence of water. You should carefully read the product label to determine if the product's waterproofing limitations are sufficient to fix the problem. Waterproofing paint is most effective if applied directly over cement and not to existing painted walls.

Tips for Surviving a Home Renovation in Waterloo Region

Home renovation can be exciting, but they are often stressful, especially if you have to stay at home while the work is being done. With careful planning, it is possible to survive major renovations. Even though your daily routines may be derailed, you can minimize the inconvenience and give yourself room to collect your thoughts even amid a storm of drywall dust, flying wood chips, and noxious odors. The tips offered below can help you anticipate the problems that can arise with almost any remodeling project. Use this knowledge to short-circuit the stresses that are a natural part of changes to your home.

Prepare the house. Move anything you don’t want damaged (art, furniture, and electronics) into a part of the house not being worked on—or move it into temporary storage. Store your clothing in plastic garment bags, and protect floors with heavy-duty cardboard or construction paper taped at the edges. Most important, make sure you completely seal off work areas with industrial plastic sheeting.

Plan for everyday life. Your house may be in disorder, but you'll still want hot meals, a snug bed, a refreshing shower, and clean clothes. Seek safe harbor away from the confusion by staying at a motel, taking refuge with a kind relative, or even moving into a travel trailer or recreational vehicle. But don't go so far away from home that you lose touch with the project.

If you must live at home during remodeling, rearrange rooms before work begins. To prepare for a kitchen makeover, move your microwave and refrigerator to a place where they can still be used. If the water will be turned off for long periods of time, order bottled water and scout out a place for showers. A bedroom may even become a combination living room/kitchen for a while.

Plan for waste removal. There's no way to avoid a mess when remodeling. But the tide of rubble, trash, and dust can be contained. Before the swing of the first hammer, work out waste logistics with your contractor. Hang tarps in doorways to seal off rooms where remodeling is underway. Establish a plan for handling waste materials so they will be routed away from sensitive areas, such as gardens or porches, and hauled away on a regular basis.

Prepare for the unexpected. Keep the lines of communication open and stick to your plans as much as possible. Small project changes often lead to unexpected service charges. Have a contingency budget of 10 to 20 percent of the total project budget. Any contractor will confirm that you never really know what you are dealing with until you cut into the walls. This is when you may find rusted pipes that need to be replaced, horrific electrical systems, insulation issues, or mold. A contingency for these types of things makes such discoveries a bit more bearable.

Keep your sense of humour. Surprises will happen during renovation. Things will get dirty, noisy, and it may take longer to complete than you anticipated. Communicate with your contractor and try resolving these challenges calmly and with an open mind.

Do I Qualify for a Mortgage in Waterloo Region?

Many people wonder if buying a home in Kitchener - Waterloo is really within their reach. It often seems like a daunting purchase for the first-time buyer. The good news is that with the large variety of options available today, it has never been easier to secure a mortgage.

Mortgage lenders assess a variety of criteria when considering mortgage applications. Most lenders look at the following factors when determining whether you qualify for a mortgage loan.

One of the first questions a lender will consider is how much of your total income you’ll be spending on housing. This helps the lender decide whether you can comfortably afford a house.  Mortgage payments for principal, interest, and taxes generally should not exceed 30% of your gross monthly income.

A lender will then look at your debts, which generally include house payments as well as payments on all loans, charge cards, child support, etc., that you make each month.

A history of steady employment, usually within the same job for several years, helps you to qualify. However, a short history in your current job shouldn’t prevent you from getting a loan, as long as there have been no gaps in income over the last two years.

Good credit is also very important in qualifying for a loan, and the lender will want to know that the house is worth the price you plan to pay.

Down payments are not always required, as there are mortgage programs that provide 100% financing for qualified purchasers.  If you have a down payment of 20% or more of the purchase price, this is known as a "conventional" mortgage, and the mortgage lender will not require default insurance.  However, with mortgage loan insurance to cover potential default on payments, you may be able to qualify for a mortgage with a down payment of as little as 5%.

When budgeting, also consider other monthly-related expenses such as condominium fees, heat, hydro, water, property tax, insurance, and household maintenance.

Even if you can’t buy a home right now, home ownership is possible. If you make it a serious goal and plan for it, within two years you can probably overcome most or all of the obstacles that usually face first-time buyers.

Condo Living - the advantages of downsizing in Kitchener-Waterloo

Homeowners in Waterloo Region are realizing that “living large” doesn’t always mean bigger is better. In fact there are many benefits to downsizing to a smaller home. Whether the decision is voluntarily or you are forced to move because of a job relocation or other life event, rest assured there are many benefits to decreasing your home size.

Here are a few benefits of living a “cozy life”.

1. A clutter-free lifestyle
Let’s face it, the more space you have, the more space you will fill with furniture, novelties, and clutter. Downsizing is a great opportunity to review your lifestyle and prioritize your needs. Then, you can choose to bring only what is essential and most valuable to you into your new home.

2. Smaller living means less stress
Many homeowners agree that living in a larger home can lead to greater stress and upkeep. Taking into account cleaning, home repair, furnishing, taxes, gardening, and the cost to run all of these can lead to financial and emotional stress. Downsizing can reduce the burden of daily chores and free up more time and money for leisure activities and your friends and family.

3. Saving energy is the future
One of the main disadvantages of owning a large home is the ever-increasing energy costs. Smaller homes, especially those with energy-efficient appliances and windows, give you the added benefit of reducing your carbon footprint while being budget-friendly.

4. Easier home upkeep
Who needs house help when you’ve only got 40 sqm to clean? Anyone who has lived in bigger houses like traditional bungalows knows that maintaining a fairly big home is not easy. You need more time, energy, effort, and patience. In a smaller home, you can live on a little less. Plus, you also get to save the environment by using fewer cleaning products.

5. Minimalist living
Knowing that you have limited space for non-essentials, you will think harder before making that next purchase. As a result, you save money on furniture, appliances, and decorations that you don’t actually need. Aside from this, you are also less likely to turn your lovely home into a warehouse.

6. More time for fun and travel
You will be surprised at the amount of time you will save by living in a condo. The time you save on maintenance, chores, and decorating can be converted to leisure and relaxation. The same goes with the time you save on traffic. Most condos are in the heart of the metropolis and business districts so driving and commuting to and from work is much faster.

7. Stronger family bond
Among the many benefits of moving to a condo, especially for families, are the many opportunities to bond and have fun. Picnics in the park, swimming weekends, strolling down the gardens, and walking the dog along safe community patios are priceless advantages of living in a condo. At home, you are also more likely to talk to each other and watch movies together because the small space is inevitably bringing you closer.

Living within your means and living simply are at the heart of condo living. Many people think space will be an issue, but it is an opportunity to change the way we live and ultimately make our lives better by living in a small space.

Planting for Late Summer and Early Fall in Waterloo Region

 

Planting isn't just a spring activity in Waterloo Region; fall is also a great time to plant. Turfgrass, spring-blooming bulbs, cool-season vegetables, perennials, trees, and shrubs can all be effectively planted in the fall. Autumn's cooler air temperatures are easier on both plants and gardeners. The soil is still warm, allowing roots to grow until the ground freezes.

What are good vegetables to plant in late summer?
Fall and winter gardening is only successful if you know the average date of the first killing frost in the region in which you live. Crops need to be planted early enough to let them reach full maturity before the killing frost arrives.

Several vegetables can be planted in late summer for a fall crop. For a fall crop, plant beets, carrots, Swiss chard, kohlrabi, and kale in early to mid-August, plant leaf lettuce and spinach in late August to early September, and plant radishes from mid- to late September. Due to hot, dry soil conditions, seed germination in late summer is often rather poor. To promote seed germination, plant fall vegetables when the soil is moist after a rain, sow the seeds slightly deeper than spring plantings, and lightly water the row after the seeds have been sown.

Lettuce seeds are sensitive to extreme heat. To achieve good lettuce seed germination, check the weather forecast and sow the seeds when a prolonged period of mild weather is predicted.

Extending the growing season
There are many ways to add anywhere from 10 to 15 degrees of warmth to the fall and winter garden by taking advantage of free solar energy from the sun. Many of these season-extenders offer frugal ways to get the most from your garden.

Cold Frames
Planting vegetables in a cold frame is an excellent way to lengthen the growing season. Fall and winter crops flourish in a cold frame and are protected from strong winds and cold night temperatures. Cold frames are very easy to build, and once the vegetables are planted, they require minimal care. An old window sash makes an excellent cold frame. Build a frame that is 18 inches high in the back and 12 inches high in the front and attach the window sash.

Greenhouses
Greenhouses were originally constructed for the wealthy during the Roman Empire. Today, however, there are countless options when it comes to building your own greenhouse or purchasing a do-it-yourself kit. Greenhouses extend the growing season by protecting plants from harsh weather and making great use of solar energy. Many people grow vegetables year-round with the help of a greenhouse and a heater.

Raised Beds
Raised beds are popular amongst gardeners wishing to control soil quality and extend the growing season. Soil in raised beds heats up very quickly, and the bed can be covered with a hoop that protects crops when frost is a threat.

Cool-season vegetables
Many vegetables thrive in cool weather, including broccoli, Brussels sprouts, carrots, cabbage, kale, kohlrabi, lettuce, radishes, rutabaga, spinach, and Swiss chard.

Lettuce, spinach, and other greens with a short maturity cycle can be planted later in the summer season. Extend the growing season by planting these vegetables under floating row covers or cold frames that will shield plants from frost but still allow light, air, and water to penetrate.

Trees and shrubs
Fall is an ideal time to plant trees and shrubs. The weather is cool, but the soil is still warm enough for root development. Before digging, always check with your local utility companies to locate any underground lines. Always plant trees and shrubs at their natural soil lines. Keep newly planted trees or shrubs well watered until the ground freezes so they get a good start before going into full dormancy during winter.

Spring bulbs and pansies
Fall is the best time to plant spring bulbs and pansies because the still-warm soil temperatures give their roots time to establish. By planting in fall, you'll get two seasons of enjoyment out of these cool-season favorites. Remove spent flowers so the plant doesn't use its energy to set seeds, and keep the soil moist. After the soil freezes, mulch plants to prevent alternate freezing and thawing cycles that can heave plants out of the ground.

Turfgrass
Fall is the right time to establish new turfgrass and do most lawn maintenance. If you live in the north, cool-season grasses such as bluegrass, fescue, and ryegrass should be fertilized in early September and again in late October or early November to give a boost for earlier spring green-up. In the south, avoid fertilizing dormant warm-season grasses unless they have been over-seeded with winter ryegrass.