Waterloo Region's 16 Regional Forests are an Asset to Locals

Waterloo Region isn't just all tech, financial and educational innovation. We also have some of the most beautiful forested areas in Ontario. Cyclists, Hikers and Birdwatchers are some of the people who benefit from the numerous regional forests in our area totaling more than 430 Hectares.

This article from the Record outlines what is being done with them.

Urban dwellers find nature, recreation in regional forests

080511Hovingh_A2 Regional planner Albert Hovingh oversees 16 forested areas owned by Waterloo Region.

David Bebee/Record staff

WATERLOO REGION — They are scattered throughout Waterloo Region, 16 regional forests and woodlands that connect hikers, birdwatchers and cyclists with nature.

“They are really quite rustic. They are different from city parks,” said Albert Hovingh, a forester and regional planner who oversees this network of forests that spans a total of 435 hectares.
Some are well known, while othe
s are seldom used by the public.

“The forest component of the region is a little bit under the radar but they really are some fabulous places to visit,” said Chuck Hammell of the Waterloo Cycling Club.

Hammell speaks with authority. As chair of the club’s trails committee, he oversees 24 kilometres of mountain bike trails through the Petersburg Regional Forest and the Waterloo Landfill Woodlands, two neighbouring wooded areas connected by a hydro-line corridor. The cycling club has an agreement with the region to develop and maintain the trails.

Hammell said this trail north of Waterloo has been touted as one of the best urban cross-country mountain bike facilities in North America because of its length and beauty. It attracts people both locally and from across Ontario.

Up to 200 mountain bikers, runners and hikers use it on a summer’s evening, he said.
As a competitive mountain biker race, Deputy Police Chief Brent Thomlison is one of trail’s fans.
“It is the place to go. It replicates the places that you would find” on the competitive racing circuit, Thomlison said.

Down the road in Cambridge, between 15 and 20 seniors walk every Tuesday morning “rain or shine,” often at one of three regional forests in Cambridge and North Dumfries Township.
“Personally I like the bush trails. You get out in the bushes and it is quiet … and you may meet a deer,” said group leader, Tom Boyd, 80, of Cambridge.

Since its inception in 1993, the Allan Reuter Centre Senior Walkers have raised enough money to purchase 20 benches, including three for the Sudden Regional Forest in North Dumfries. The cost of the weekly walk is $1 per person.

The 16 regional forests and woodlands vary in size from four hectares to 88 hectares. There are no picnic tables or public washrooms to protect their serenity and rustic nature.

Some date back to 1944 when the former County of Waterloo started acquiring derelict farmland and other properties for reforestation purposes. In 2003, more properties were donated to the region.

The region assumed ownership of the forests in the late 1990s from the Ministry of Natural Resources.
To increase their profile, the region is in the midst of erecting kiosks at the properties with signs depicting trail rules and uses to avoid conflicts between different users.

Hovingh, who is the region’s forestry department, said he has an annual budget of $39,000, and because of that, often relies on volunteer work and donations to maintain the forests.

For instance, in co-operation with the Waterloo Stewardship Network, a coalition of volunteers supported by the Ministry of Natural Resources, a tract of dead Red Pine trees at the Drynan Forest in North Dumfries Township was cleared to allow for the development of a hardwood forest which is more conducive to the area’s soil condition, he said.

Future plans include replacing the 400-metre long boardwalk at the Sudden Forest in North Dumfries Township, which is closed because its rotting condition makes it unsafe, Hovingh said.

Variable Rate Mortages on the Rise

Just announced today, variable rate mortgages were increased by RBC from 2.25% to 2.55%.

Other lenders are expected to follow suit tomorrow.

What does that mean?.....an extra $3,000 in interest payments on a $200,000 mortgage over a 5-year term.

Contact me to keep abreast of interest rates and the real estate market.  Having an informed REALTOR representing your interests will save you time, money and stress!

Own a Blackberry? New Music Sharing on the Way...

Research In Motion, in an attempt to stay on top of what consumers want, is launching a new music service today that will allow BBM users to share music.

This service will allow a "community-based music library" to be shared among BBM "friends."

This link to an article provides more detail.

http://www.570news.com/news/local/article/270279--rim-confirms-new-bbm-music-service

Choosing a Roofing Contractor? Read this First.

As a REALTOR, I find the most common questions from buyers when looking at a home are "How old is the roof?"  and "How expensive is it to fix?".  The question I never get is "How do I choose my roofing contractor?"  The contractor will be the determining factor of both cost and quality of work.

This article below written by Shelley White of the Globe and Mail outlines the questions that need to be anwered before choosing your contractor.

The spectre of leaks and water damage is nerve-racking enough, but with costs that can start at $5,000 and rise to $20,000 or more, a new roof can be a crippling expense.

But there are ways to minimize your risk and keep the roof over your head intact.

The first step in roof maintenance is determining whether you need work done well before you spring a leak. Craig Bennett, deputy executive director of Avenue Road Roofing in Toronto, says that there are some red flags to watch for.

“Observe the appearance of your shingles,” he says. “Specifically, look for curling or clawed shingle tabs, look for areas of excessive ‘granule’ loss [on the surface of the shingles]. In terms of age, a roof that is 15 years old should be inspected.”

Homeowners can also check to see if any of the metal flashing on the roof has pulled away or the caulking has dried out. If you have attic access, look for water marks or the appearance of mould (black marks).

Once you’ve determined that your roof needs work, it’s time to find a contractor. Mark Benerowski, a Toronto building inspector for the past 10 years, says that references from friends and family are a good way to start, but it’s important to get at least three quotes – he suggests getting 10 – before deciding on a contractor.

“Sometimes the larger companies can be good to go with, but a company is only as good as its installer. Ask if they’ve expanded a lot in the last couple years. How much experience do your installers have? How many installers can I expect to be on the job?”

Because a roofing job should last 15 years or more, look for a roofer who is going to stay in business. Mr. Bennett says that although many consumers won’t require it, it’s wise to look for companies that are bonded, which demonstrates that the contractor has had to withstand stringent business scrutiny.
“Also, look for roofing contractors who have been certified by the product manufacturer to install their products,” he says. “Ask to view a job in progress and speak with several past clients, particularly those who required warranty service.”

Other essential elements to watch for are safety and insurance, Mr. Bennett says. Consumers should ask to see a company’s health and safety policy, and ensure they have adequate insurance for the job at hand.

To further protect yourself, Mr. Benerowski advises that specifications be included in any contract or quote. “Don’t let them just put down three-tab shingle installation,” he says. “You want specifications as to flashing, the brand name and warranty of your shingle, the underlayment that will be used, how much ice shield, how high the ice shield is going to be.” (If the terms and details of roofing seems daunting to a layperson, you can get consumer info on the Canada Mortgage and Housing Corp.’s website.) “If you can specify in the contract, that’s half the battle.”

As for the cost, Mr. Bennett says his company’s statistics have shown that the average price for a complete shingle replacement within the Greater Toronto Area is about 2 per cent of the property value. But prices can vary widely depending on how complicated the job is and where it is located.
As well, your choice of materials will affect your final price. At the low end of the scale, there’s paper asphalt or fibreglass shingle (increasingly the most popular choice, according to Mr. Bennett). Metal is typically double the price, cedar triple and slate, three to four times the cost.

Once the job begins, if you’re concerned about the work being done, you can hire a building inspector to assess it, both during the project and after completion. For a one-time inspection, Mr. Benerowski charges between $200 and $300. For a more thorough, phased inspection report, it can cost between $500 and $600, based on 2,000-square-foot home.

If you do your homework before hiring your contractor, Mr. Bennett says, you should end up with a roof job that will stand the test of time.

Watch for these red flags
Building inspector Mark Benerowski identifies common mistakes to watch for.

Roofers trying to work too fast: Ensure your roofing company will be providing you with an experienced installer and enough manpower to do the job properly (at least two or three workers). “It’s a seasonal type of business, so roofers can get very busy in the summers,” Mr. Benerowski says. “If a roofer is working too fast and hasn’t set his pneumatic gun properly, that nail head could be driven too hard with too much pressure. You’ve cracked the shingle and now you have a potential for leakage.”

Laying new shingles over old: Specify the full removal of the old shingles – if you don’t, the roofers may lay new ones over the old ones, which can trap moisture and lead to premature deterioration of the new surface.

Not removing old nails from the roof: Leaving old nails is like trapping “a bunch of needles underneath the new shingles. When you strip a roof, it has to be fully stripped.”

Poor ventilation: Be sure your roofing contractor will be addressing ventilation issues and is up-to-date on current ventilation techniques and products. “If you don’t have any ventilation at all, in the summer the attic gets very hot and you end up baking your shingles and they don’t last as long.”

New Edition of Coldwell Banker Properties for Sale

Check out this latest EBook edition of Coldwell Banker properties for sale.

http://issuu.com/kwtreb/docs/cbpbr?viewMode=magazine

5 Tips to Finding a Good Buyer Agent When Purchasing Real Estate

With Summer coming to a close (sigh), the expectations for the Fall Real Estate Market are good.  Just recently, the Canadian Real Estate Association raised its forecast for sales.  This translates into more listings and more buyers. With more than 90% of all homes sold transacted through the MLS with REALTORS, there is a great demand for buyer agents to help buyers through the buying process.

And, let's face it - in every profession there are good ones and not so good ones.  When buying real estate it is of the utmost importance that you find not only a knowledgeable, competent and dedicated professional, but also one who you connect with and trust.

Many buyers today are interviewing their REALTORs just as sellers interview their representatives - and that is the first step to finding a good representative who truly has YOUR best interests in mind.

Here are 5 tips to help you find a great REALTOR.

1. Ask around. The first place to start looking for a buyer's agent is by asking friends and family. Did they like their agent? How was their experience? Recommendations are a good place to start, but don't feel pressured to use your sister's agent or your friend's mom's cousin who happens to work in real estate. Go through the rest of the tips before deciding.

2. Check credentials. Is his or her license current or are there any complaints registered about him? Do they have advanced accreditation, such as ABR (Accredited Buyer's Representative) or CRS (Certified Residential Specialist)  Designations aren't everything, but they do show commitment to the profession. Don't hesitate to ask to see their sales volume or references. An agent who is active and recommended must be doing something right.

3. Have a trial period. This is the tip most people skip, but I think it's one of the most important. If he or she doesn't mention it first, ask to sign a buyer's contract for the day, so that you can see how you work together. Think of it as dating — you didn't marry the first person who asked you to dinner. Did the agent understand what you were looking for and is that represented in the day's showings? They'll get paid if you decide to purchase any of the properties they show you, and you're not stuck with them if you can't stand to be in the same car by the end of the day.

4. Trust your gut. If after your day out with your potential agent, something doesn't feel right, listen to your intuition. You should like your agent and know that they have your best interests in mind. You could be working with them for a year or more, so if there's a personality clash or a trust issue, find someone else.

5. Sign a BRA. A Buyer Representative Agreement protects both you and your a REALTOR. It outlines in writing what is expected from each party. If you don't have a contract, your REALTOR is only a facilitator of the transaction and doesn't represent your interests.  A true professional will explain everything in detail and you should leave a buyer counselling session with the feeling that you know everything about the buying process and nothing will come as a surprise.

Hopefully these tips help your real estate transaction go smoothly. I look forward to you calling me in for that interview ... Happy house hunting!

Higher Taxes for Waterloo in 2012?

With Waterloo City Council budget deliberations starting, so does the talk of higher taxes.  With nearly half of the property tax bill comprised of city taxes (the other half education taxes), this could mean a noticable increase for the average home owner in Waterloo.

This Record article outlines what was discussed at Monday's meeting.

Waterloo heading for higher taxes next year

WATERLOO — Waterloo council intends to raise city taxes again next year, but the size of the increase won’t be determined until February.

Council launched its 2012 budget deliberations Monday.

City hall forecasts a tax increase reaching almost 10 per cent over a four-year term ending in 2014. This includes an increase of 1.9 per cent approved in 2011.

City staff told councillors that Waterloo has a high debt, can’t maintain its current infrastructure and no longer enjoys the fast-growing tax base of decades past. This suggests the city, described in a recent report as having among the highest taxes in Ontario, can’t afford new projects.

“You get to that point where you have to say, ‘It’s now time to do less with less.’ And we’re there,” Coun. Mark Whaley said in an interview.

Some councillors recognize that many residents feel tapped out, even as other residents clamour for new services.

“There are so many folks that feel they are at the limit of affordability,” Coun. Diane Freeman said. “People feel totally overwhelmed.”

City taxes – at just over $1,000 for a home assessed at $254,000 - account for less than half the property tax bill. Regional taxes are roughly half the bill and education taxes make up the rest.
Council has created a volunteer committee of 12 citizens that intends to recommend budget options. Committee chair Mike Magreehan, a financial planner, said its members are grappling with “nice-to-have” spending on items including senior programs, a skateboard park, the local symphony and the downtown Clay and Glass gallery.

Citizens also hope to make recommendations around public communication, clarity of financial statements and ways to encourage savings within city hall.

Bank of Canada "Handcuffed" When Trying to Set Interest Rates

Interest rates set by central banks allow governments to "direct" national economies because these rates affect major economic factors such as inflation and dollar value.

Now, thanks to a US government decision, the Bank of Canada may not be able to set the rates based on proper economic indicators, as this CBC article outlines below.

"The Bank of Canada had been expected to start raising interest rates in September, but is now likely to keep them on hold or even announce a cut, experts say.

Canada's central bank is due to make an announcement on rates in September, on the heels of the recent decision by the U.S. Federal Reserve Bank to keep interest rates south of the border low and stable for two years.

CBC business commentator Michael Hlinka, who also teaches at the University of Toronto School of Continuing Studies, is among those to predict a cut in Canadian rates. He calls the announcement by the U.S. Federal Reserve "extraordinary" and also "short-sighted and utterly clueless."
 
"I've never heard of a central bank in North America ever put an extended time frame on interest rates like this," said Hlinka, not even after the Sept. 11, 2001, attacks.

"The announcement in the U.S. that interest rates won't go up any time soon is public policy makers saying to consumers, there is no reward in saving your money, so don't think about saving for your retirement or a rainy day, you might as well spend it now in the hope that this consumer spending will stimulate the economy and lead to job creation."

Canada will have no choice but to follow suit in cutting rates, said Hlinka.

"To raise interest rates would drive up the Canadian dollar, making our exports that much less competitive. Now it seems almost inevitable that the next move for our benchmark interest rates will be down."

But that could push the country into a deep and prolonged recession with record levels of private debt, according to Hlinka.

Cutting interest rates could further overheat the housing market and encourage people to spend beyond their limits, creating a bubble that will soon burst, predicts Hlinka.
He points to Vancouver, a city whose housing market has cooled considerably this summer, as a harbinger of things to come for Toronto and other Canadian cities.

BMO deputy chief economist Doug Porter told the Canadian Press that the bank will likely keep its key overnight rate target at one per cent well into next year.

Until the recent turmoil, Porter said, he thought the Canadian central bank would start raising interest rates this fall with two quarter-point rate hikes by the end of the year.

"In fact, because of the weakness in equities there has been some talk recently that there is even a remote possibility the Bank of Canada could cut rates in the coming weeks or months," Porter said.
"I still think that's a long shot, but at the very least events have conspired to keep the Bank of Canada on the sidelines for a lot longer than most had anticipated as recently as a few weeks ago."
Andreas Park, a professor of economics at the University of Toronto, is more cautious, hedging his predictions and taking a wait-and-see approach.

"If economic conditions stay as they are now in Canada, I predict interest rates will go up. If we see a deterioration in the U.S. on a small scale that affects Canada slightly, then they will stay as they are. If there is another recession in the U.S. the interest rates will be cut in Canada," says Park.

"All of this is a big unknown for Canada at this point. And the Americans don't know it either."
If the U.S. government cuts spending dramatically that could have a negative impact on the economy, he adds. If that happens, Canada will be affected.

If interest rates are cut in Canada in September, it will mark five years of low rates.
Hlinka draws parallels between the Bank of Canada and its Swiss equivalent, which announced last week it was cutting its benchmark interest rate from one-quarter of a per cent to as close to zero as possible.

With unemployment at 3.2 per cent and an economy that is growing at two per cent in the midst of all the turmoil in Europe, the Swiss are the envy of the world.

"They're terrified that the appreciation of the Swiss franc is going to upset that apple cart," says Hlinka.

 "So their public policy makers and central bank is saying, 'We'd much rather run the risk of creating an asset bubble, instead of sitting and watching the Swiss franc appreciate day after day and make the products we export to the rest of the world utterly uncompetitive,'" says Hlinka.

Switzerland's major trading partners are in the EU, while Canada's major trading partner is the U.S. Switzerland's economy is much healthier than its peers in the EU, just as Canada's economy is much healthier than the U.S.'s.

But Hlinka warns there is a risk in cutting interest rates.
"I feel like the wild-eyed Cassandra inside the gates of Troy who said 'Don't bring in that statue. It can lead to no good.'"

Rather than addressing fundamental economic problems, public policy makers are playing on the margins with factors that have nothing to do with what the real issues are, such as structural imbalances in the economy, says Hlinka.

"The public sector is too big relative to the private sector in the developed countries of the world. The public sector has a much better deal in terms of wages, benefits, job security, and working conditions, and it's creating a two-tier society of haves and have-nots."

The private sector creates wealth while the public sector distributes it, and the result of the imbalance is there are too many people who are working to distribute the wealth and too few people who are working to create it, according to Hlinka.

"By the way, these are very unpopular things to say and I'm the first to admit it."
It's an easier fix to fiddle with interest rates, rather than tackle politically sensitive issues, says Hlinka."

Your smartphone: a new frontier for hackers

With more than 3 in 10 Canadians owning a smartphone (up 50% from 2010), and this number increasing faster than the soaring U.S. debt, it is important to realize the dangers that malicious software and hackers pose.  After all, most smartphone users keep all of their contacts, passwords and calendar information on these devices as well as use them to text, email and call regarding personal and private issues.

This article below by Jordan Robertson of the Associated Press outlines the ins and outs of the dangers.

Last week, security researchers uncovered yet another strain of malicious software aimed at smartphones that run Google's popular Android operating system. The application not only logs details about incoming and outgoing phone calls, it also records those calls.

That came a month after researchers discovered a security hole in Apple Inc.’s iPhones, which prompted the German government to warn Apple about the urgency of the threat.
Security experts say attacks on smartphones are growing fast — and attackers are becoming smarter about developing new techniques.

“We're in the experimental stage of mobile malware where the bad guys are starting to develop their business models,” said Kevin Mahaffey, co-founder of Lookout Inc., a San Francisco-based maker of mobile security software.

Wrong-doers have infected PCs with malicious software, or malware, for decades. Now, they are fast moving to smartphones as the devices become a vital part of everyday life

Some 38 per cent of American adults now own an iPhone, BlackBerry or other mobile phone that runs the Android, Windows or WebOS operating systems, according to data from Nielsen. That's up from just 6 per cent who owned a smartphone in 2007 when the iPhone was released and catalyzed the industry. The smartphone's usefulness, allowing people to organize their digital lives with one device, is also its allure to criminals.

All at once, smartphones have become wallets, email lockboxes, photo albums and Rolodexes. And because owners are directly billed for services bought with smartphones, they open up new angles for financial attacks. The worst programs cause a phone to rack up unwanted service charges, record calls, intercept text messages and even dump emails, photos and other private content directly onto criminals' servers.

Evidence of this hacker invasion is starting to emerge.
— Lookout says it now detects thousands of attempted infections each day on mobile phones running its security software. In January, there were just a few hundred detections a day. The number of detections is nearly doubling every few months. As many as 1 million people were hit by mobile malware in the first half of 2011.

— Google Inc. has removed about 100 malicious applications from its Android Market app store. One particularly harmful app was downloaded more than 260,000 times before it was removed. Android is the world's most popular smartphone operating software with more than 135 million users worldwide.

— Symantec Corp., the world's biggest security software maker, is also seeing a jump. Last year, the company identified just five examples of malware unique to Android. So far this year, it's seen 19. Of course, that number pales compared with the hundreds of thousands of new strains targeting PCs every year, but experts say it's only a matter of time before criminals catch up.

“Bad guys go where the money is,” said Charlie Miller, principal research consultant with the Accuvant Inc. security firm, and a prominent hacker of mobile devices. “As more and more people use phones and keep data on phones, and PCs aren't as relevant, the bad guys are going to follow that. The bad guys are smart. They know when it makes sense to switch.”

When it comes to security, smartphones share a problem with PCs: Infections are typically the responsibility of the user to fix, if the problem is discovered at all.

The emergence in early July of a previously unknown security hole in Apple Inc.’s iPhones and iPads cast a spotlight on mobile security. Users downloaded a program that allowed them to run unauthorized programs on their devices. But the program could also be used to help criminals co-opt iPhones. Apple has since issued a fix.

It was the second time this year that the iPhone's security was called into question. In April the company changed its handling of location data after a privacy outcry that landed an executive in front of Congress. Researchers had discovered that iPhones stored the data for a year or more in unencrypted form, making them vulnerable to hacking. Apple CEO Steve Jobs emerged from medical leave to personally address the issue.

The iPhone gets outsize attention because it basically invented the consumer smartphone industry when it was introduced in 2007. But Apple doesn't license its software to other phone manufacturers. Google gives Android to phone makers for free. So, Android phones are growing faster. As a result, Google's Android Market is a crucial pathway for hacking attacks. The app store is a lightly curated online bazaar for applications that, unlike Apple's App Store, doesn't require that developers submit their programs for pre-approval.

Lookout says it has seen more unique strains of Android malware in the past month than it did in all of last year. One strain seen earlier this year, called DroidDream, was downloaded more than 260,000 times before Google removed it, though additional variants keep appearing.
Lookout says about 100 apps have been removed from the Android Market so far, a figure Google didn't dispute.

Malicious applications often masquerade as legitimate ones, such as games, calculators or pornographic photos and videos. They can appear in advertising links inside other applications. Their moneymaking schemes include new approaches that are impossible on PCs.

One recent malicious app secretly subscribed victims up to a service that sends quizzes via text message. The pay service was charged to the victims' phone bills, which is presumably how the criminals got paid. They may have created the service or been hired by the creator to sign people up. Since malware can intercept text messages, it's likely the victims never saw the messages — just the charges.

A different piece of malware logs a person's incoming text messages and replies to them with spam and malicious links. Most mobile malware, however, keep their intentions hidden. Some apps set up a connection between the phone and a server under a criminal's control, which is used to send instructions.

Google points out that Android security features are designed to limit the interaction between applications and a user's data, and developers can be blocked. Users also are guilty of blithely click through warnings about what personal information an application will access.
Malicious programs for the iPhone have been rare. In large part, that's because Apple requires that it examine each application before it goes online. Still, the recent security incidents underline the threat even to the most seemingly secure devices.

A pair of computer worms targeting the iPhone appeared in 2009. Both affected only iPhones that were modified, or “jailbroken,” to run unauthorized programs.

And Apple has dealt with legitimate applications that overreached and collected more personal data than they should have, which led to the Cupertino, Calif.-based company demanding changes.
“Apple takes security very seriously,” spokeswoman Natalie Kerris said in July. “We have a very thorough approval process and review every app. We also check the identities of every developer and if we ever find anything malicious, the developer will be removed from the iPhone Developer Program and their apps can be removed from the App Store.”

A criminal doesn't even need to tailor his attacks to a mobile phone. Standard email-based “phishing” attacks — tricking people into visiting sites that look legitimate — work well on mobile users. In fact, mobile users can be more susceptible to phishing attacks than PC users.

The small screens make it hard to see the full Internet address of a site you're visiting, and websites and mobile applications working in tandem train users to perform the risky behaviour of entering passwords after following links, new research from the University of California at Berkeley has found.

The study found that the links within applications could be convincingly imitated, according to the authors, Adrienne Porter Felt, a Ph.D. student, and David Wagner, a computer science professor.
They found that “attackers can spoof legitimate applications with high accuracy, suggesting that the risk of phishing attacks on mobile platforms is greater than has previously been appreciated.”
A separate study released earlier this year by Trusteer, a Boston-based software and services firm focused on banking security, found that mobile users who visit phishing sites are three times more likely to submit their usernames and passwords than desktop PC users.

Mobile users are “always on” and respond to emails faster, in the first few hours before phishing sites are taken down, and email formats make it hard to tell who's sending a message, Trusteer found.
Still, mobile users have an inherent advantage over PC users: Mobile software is being written with the benefit of decades of perspective on the flaws that have made PCs insecure. But smartphone demand is exploding, with market research firm IDC predicting that some 472 million smartphones will be shipped this year, compared with 362 million PCs. As a result, the design deterrents aren't likely to be enough to keep crooks away from the trough.

“It's going to be a problem,” Mr. Miller said. “Everywhere people have gone, bad guys have followed.”

Tips for cost effective kitchen renovation

 

If you’re thinking of selling your home in the near future, investing in a few well-conceived improvements could pay you big dividends in terms of improving your resale value The big question is: where to spend your money?  Whether you’re selling in the near future or at some later date, your first consideration should be the value you place on the improvements while you’re continuing to live in the home. After taking that into consideration, there are several guidelines that can help you achieve the best return on your investment.  The kitchen is normally the focal point of any house.  It’s the high point of virtually every potential buyer’s walkthrough – male and female alike.  As such, improvements to this area are almost always a worthwhile investment. 

As a general rule, the more visible an improvement is, the better your chances for a good return on your investment.  For example, mentioning you have a new water heater or plumbing upgrade won’t have the powerful visual impact of a new kitchen counter top or tile backsplash -- even though they may cost the same.  Refacing your existing kitchen cabinets is a lower cost option than replacing all your cabinetry.  If you’re thinking of a major kitchen renovation, focus your energy – and your budget – on creating new work surfaces and improving function or traffic flow, rather than simply focusing on adding more floor space. 

For the more budget conscious, a fresh coat of paint is one of the least expensive improvements that can create a favourable first, and lasting impression on buyers.  In fact, dollar for dollar, a fresh coat of paint often delivers one of the best returns on your investment.  So, why stop with the walls?  Painting your kitchen cabinets and simply replacing your handles with updated hardware can revitalize the entire look of your kitchen and strengthen its visual appeal. 

Remember when choosing your colours that light colours can make a room appear larger, and neutral shades will be most appealing to the greatest number of potential buyers.  Another optical effect that will help create the illusion of more space is to install new flooring or backsplash tiles on the diagonal to draw the eye up and away on the longest line possible.

A new tap, and possibly even a new kitchen sink are also very affordable options to give your kitchen a quick and affordable ‘facelift’.
 

Lighting is also a very affordable way to improve the look and the function of your kitchen space.  For a very minimal investment, the new halogen light fixtures can illuminate your workspace while adding ambiance to your kitchen.   Small under the cabinet halogen pot lights take up little space, and can add a modern flair.

TDS - Total Debt Service Ratio...not just for mortgages

It is important for everyone to know their financial situation.  I am an advocate of regularly checking your credit report for accuracy.

There is another item that can help you determine where you stand financially, and it is used by nearly every financial institution when it come to determining loan amounts to consumers - it's the Total Debt Service Ratio.

Your TDS ratio
There is a simple way to calculate what you can afford - or how much you have available to spend — on a monthly basis. It's called the Total Debt Service ratio or TDS, as those in the financial-know like to say.

The rule of thumb for TDS is that all your monthly debt payments should be less than 40 per cent of your gross monthly income. This 40 per cent should include your housing costs (rent or mortgage payments), your car payments (leases or loans) and all the other credit payments you make each month - including credit cards (yes, those too!), lines of credit, student loans and other personal loans.
If you can keep your debt payments within 40 per cent of your income, then the remaining 60 per cent can be allotted to 'discretionary' spending — such as groceries, clothing, entertainment, transportation costs and your shopping habit.

Here is how to calculate your TDS ratio in three easy steps, so you can see how you're currently faring; either do it personally or with your spouse to determine a household figure.

• Step one: your salary income

Check your pay statements to determine your gross monthly salary. This means what you earn in total each month, before deductions such as taxes and CPP are taken off. If you are calculating your household TDS, rather than just your own, then add your hubby's gross monthly salary as well.

• Step two: add any other income

Now add any income that you receive on a regular, monthly basis. Maybe it's child support payments, investment income or cash from a part-time job. (Maybe trust fund payments or royalties from the songs you wrote for Beyoncé? Don't we all wish!)

• Step three: multiply by 0.40

Take your total income (step 1 + step 2) and multiply the total by 0.40. Voila! The result is your total debt service ratio — the maximum amount you can afford to spend on your monthly debts and expenses.

The upper limit
Suppose, for example, your TDS calculates to $1800. If you find you are actually spending less on your housing, loan payments and expenses - say $1500 a month - then congratulations frugal girl! Technically, you are living within your means. Just remember, that TDS calculation represents your upper limit.
On the other hand, if you are actually spending more than your TDS figure on monthly debt obligations, then your ability to afford the rest of your life probably feels severely constrained. Try to re-negotiate loan payments and make it a priority to pay down those debts and get your TDS back in line.

The other 60 per cent
The less you spend within your TDS ratio, the more disposable income you will have to enjoy each month. If your expenses and monthly obligations keep you at the 40 per cent limit, then you still have 60 per cent of your income for the business of daily living. By outlining a simple monthly budget of how much of that money has to go toward gas money, subway fare, groceries and other essentials, you can quickly estimate how much you have left each month to spend on fun stuff — like shopping (and SAVING, of course).

Your bottom line
Living within your means starts with knowing your means. With a credit card in hand, it's so tempting to make purchases and tell yourself you can afford it by cutting back in other areas. The trouble is, that kind of impulse spending often leads you to dipping into money that is earmarked for paying bills — and your finances quickly get messy. Know your limits and live well!

Do You Know if that House You are Buying is a Former Grow-Op?

Here is a link to the quarterly publication by RECO for Real Estate Buyers and Sellers - in this issue: Are You Buying a Former Grow-Op? and How to Protect Your Valuables During an Open House.

http://www.reco.on.ca/publicdocs/ElectronicNewsletters/Summer2011/Uniflip/index.html