Friday, May 26, 2017

Canadian - U.S Interest Rates and what they mean for you...


 
By Yvonne Dick from The Real Estate Magazine
 
 
 
We live in interesting times, as the Chinese proverb goes. The presidential election in the United States shows us the ripple effect that can occur when our neighbours to the south do something a little different with policies and rules.

While the Bank of Canada sometimes follows as the U.S. leads, other times it does not. When the U.S. Federal Reserve raised interest rates recently (Dec. 14, 2016 and again in March 2017) the Bank of Canada did not raise rates. Recently the Fed raised its interest rate by 0.25 per cent so that it now stands at 1.0 per cent. The plan is for it to be raised again in 2017 until a 1.4 per cent interest rate is achieved. The Bank of Canada’s current interest rate is 0.5 per cent and it is likely to stay there in the near future.

The Bank of Canada’s key interest rate is a target rate used by banks to set the prime rate. This determines what your base interest rate will be when borrowing money. Factors such as your credit may increase your interest rate, but the base rate of interest your bank begins with in calculating your interest starts from its prime rate. Since this rate is re-evaluated and sometimes re-set eight times every year, each change can influence future borrowing and current variable rate borrowing.

We know that the U.S. and Canada generally move in the same directions with monetary policies. Canada has been divergent from the usual for a few months, while other countries are also trending toward the divergence of monetary policies. For instance, the Fed kept its policy rate near zero for the past seven years, the European Central Bank cut its rate to negative 0.3 per cent and Canada cut its rate in late 2016. The central banks are following policy that assists their country’s own economies.

Governor Stephen Poloz of the Bank of Canada says he believes divergence patterns will be around for a while. While the U.S. economy is picking up, Canada is remaining stagnant. Higher interest rates are therefore are not in the cards at the moment.

When the Fed raises interest rates, the loonie becomes weaker. To augment that, the Bank of Canada may keep interest rates low, as they have most recently. Our oil prices have a strong effect on the Canadian dollar as well and sometimes higher oil prices buffer a weak loonie. Good for some sectors, bad for others. Tourism goes up with a weak loonie, while prices of things like groceries usually go up. U.S. equity investments will rise.

In real estate, a lower loonie can also translate into more foreign buyers hitting the hot markets.

Fixed-rate mortgages are linked to 10-year bond yields. A rise in bond rates will begin to increase fixed-rate mortgage rates. That is because fixed-rate loans can feel the pressure from inflation, market fluctuation and investor sentiment. Bond markets can move faster than the prime rate. A negative scenario for mortgage buyers, for instance, is when the market does not like a series of factors such as divergent money policy, slow global economic growth, an aging global population and even who is elected president or prime minister of key influential countries.

Variable rates are less likely to change in the current market. Although the Fed influences these rates too, it is U.S. variable rate mortgage holders along with credit card, auto loan and line of credit users who will feel the pain first. Higher loans can also decrease business spending along the line and affect the stock market, through sectors such as financial holdings when there is a rate hike.

While this is a simplification, it is a good reminder that whether your clients get a fixed or variable rate mortgage, be sure it is something they are comfortable paying back. For consumers, continuing to watch both the Federal Reserve and Bank of Canada are prudent steps when thinking of a mortgage. The increasing interest rate at the Fed will eventually increase borrowing costs across the board, which trickles down to similar increases for Canadian borrowing costs.


Thursday, May 25, 2017

How to Build and Maintain Your Credit

                                                    
In today’s society, credit is our gateway to purchasing big tickets items like a home, cars, electronics and many other daily needs. When you buy something on credit you are responsible to repay it under the contract with the lender. If you do not pay the debt according to the terms and agreement your credit score will be affected. When you have bad credit you will be denied financing up to 90% of the time because the lender looks at you as a serious risk, which is not good.

So how do you build and maintain a good credit?
Establish chequing and savings bank accountsThis is the basic step necessary to build credit. Lenders see bank accounts as signs of stability. Opening a chequing and savings accounts is one of the few things young people can do to start building a financial history. While you can't get a credit card in your own name until you're 18, many banks have no problem letting you open an account.

Always pay your bills on time This is one of the major factors that keeps people from increasing their credit score. When you make a late payment, the lender will mark your credit and this will substantially affect your credit score. Some people do not listen to this and charge more than they can afford. They get caught in a trap that they can never get themselves out of because they can barely afford to pay the payments.

Check your credit report regularly Your credit report is available to you at little or no charge from major credit reporting agencies like TransUnion or Equifax.

Your credit report contains all your financial obligations and accounts associated with you. This is what banks, mortgage, credit card and auto loan companies use when reviewing your application. Every transaction or purchase that you have made shows on your credit report.

Check your credit report for inconsistencies, incorrect information or accounts that you do not know about. If there are any corrections that need to be made, follow up with the credit bureaus.

Do not spend more than your credit limit  A limit is set for you so you do not go over it. A creditor looks at you and thinks that you spend beyond your means and instead of you trying to improve your score you are hurting it.

The best way to avoid going into serious debt or financial trouble is to avoid using credit at all, use cash or your bank account instead. If you are in a situation where it is an emergency use credit and then pay it off immediately. The problem with today’s society is that we spend way more than we make and this is what gets us all in trouble.

How to Save Money AND the Environment

Due to less than usual rain falls this summer, many cities in Canada have issued a water shortage advisory asking residents to conserve water usage.

Water is a limited resource. What each of us does in the world, how we live, does make a difference. As we learn the value of clean, safe water and how scarce it truly is, we can take steps to protect it and to get it to people who lack access today.


Here are a few tips to help you save water.

1. Turn off the water after you wet your toothbrush. There is no need to keep the water running while brushing your teeth. Just wet your brush and fill a glass of water for mouth rinsing. This can save up to 6 litres of water per minute.

2. Rinse your razor in the sink. Fill the sink with a few inches of warm water. This will rinse your razor just as well as running water, with far less waste of water.

3- Install water-efficient toilets, low-flow showerheads and faucet aerators in your kitchen, bathrooms and laundry room.

4-Take a shorter shower. Taking a shower can use anywhere between 6 and 45 litres of water per minute.

5-Always use full loads in your washing machine and dishwasher–this cuts out unnecessary washes in between.

6- If you have a dishwasher, only wash full loads and use the energy saver or shortest cycle modes.

7- Fix a dripping tap. A dripping tap can waste 15 litres of water a day, or 5,500 litres of water a year.

8- Don't let the faucet run while you clean vegetables. Just rinse them in a pan of clean water.

9- Install a water butt to your drainpipe and use the water collected to water your plants, clean your car and wash your windows.

10-Water your garden with a watering can rather than a hosepipe. A hosepipe uses 1,000 litres of water an hour. Mulching your plants (with bark chippings, heavy compost or straw) and watering in the early morning and late afternoon will reduce evaporation and also save water.

11. Water your lawn only when it needs it. A good way to see if your lawn needs watering is to step on the grass. If it springs back up when you move, it doesn't need water. If it stays flat, the lawn is ready for watering. Letting the grass grow taller (to 3") will also promote water retention in the soil.  Water during the early parts of the day.

12- Fill a jug with tap water and place this in your fridge. This will mean you do not have to leave the cold tap running for the water to run cold before you fill your glass.

13- Install a water meter. When you're paying your utility provider for exactly how much water you use, laid out in an itemized bill, there's an incentive to use less water.

14- Invest in water-efficient goods when you need to replace household products. You can now buy water-efficient showerheads, taps, toilets, washing machines, dishwashers and many other water-saving products.

Why does saving water matter?
Even though water doesn't appear in short supply in the Canada, using less water actually means you are:

1-Reducing energy use. Cleaning waste water (or 'grey water', as it's called) is an energy-intensive process; so is heating the hot water that comes out of your taps.

2-Saving money. If you're on a water meter, these tips above could save you a money.

Contact me today for a Free Home Value Report or for answers to all your real estate questions at www.kimlouie.net!

Tuesday, May 23, 2017

Easy Curb Appeal Ideas

Curb appeal is a term used to describe how your home looks like from the exterior and  how appealing it looks when viewed from the curb. This includes areas such as the lawn, patio, front door, exterior paint, trees, shrubs and more. In a simpler sense, curb appeal is what the buyers initially see the moment they step out of their car.



 Curb appeal contributes greatly to the desirability of a home. Most real estate agents confirm that curb appeal can affect a buyer’s decision to purchase a home more than the square footage or the price of the home. It often means the difference between a house sitting for months or selling in a few weeks.

If your home is not particularly attractive from the outside, there are many ways to improve the curb appeal of your home without shelling out thousands of dollars in renovations. There are dozens of small, inexpensive home improvements that you can do to your house to add instant curb appeal. Adding curb appeal to your house not only makes it easier to sell, but it also gives your house that nice and finished look in which you can take pride in.

The following steps will help to quickly create curb appeal for your home.

1. Tidy up. Make sure you don't have old rusty junk lying around the yard, unless it is being used stylistically in a garden. Get rid of things that are just lying around. This would probably be the first step of improving the look of your lawn. Remove items such as old rope, boots, cracked pots, worn hoses, wrecked flower boxes and other things.

 2. Trim up. Cut the grass and edge the borders with a weed trimmer. Take care to get rid of all weeds, including ones by the walls and around the mailbox post. Add a layer of mulch to cover up dull areas in the landscaping or flower beds.

 3. Build a healthy and green lawn. Adding some starter sod can make a big difference very quickly. Sod can be bought at lawn and garden stores and comes in rolls or squares. After you lay it across your yard, water it well and you'll immediately have a lawn, with roots taking hold within two weeks.

4. Add some colour to your yard. Planting flowers will enhance the curb appeal of your home. Buying colourful plants that have already started blooming will immediately make a difference. They can either be planted in pots or in the ground. Use your imagination and choose flowers that bloom in colours that look good with your home.

5. Paint. Giving your home (trim and shutters too) a new coat of paint easily breathes new life into its appearance. However, make sure you select a colour palette that matches the architectural style of your home. For example, if you live in a historic home, you’ll want to stick to an authentic palette.

6. Update your front door. Greet guests in style with an eye-catching front door that makes a statement. You can find exterior doors in a variety of materials from traditional wood to sturdy steel. The key is to select a door that suits your home’s architectural style. If your current door is in good mcondition, you can make it stand out by painting it a bold colour or adding windows, sidelights, mouldings and more.

7. Illuminate paths and walkways with outdoor lighting. Install lighting fixtures that will complement the style of your home as well as help to create dramatic effects. Use fixtures with built-in motion detectors to enhance safety.

8. Add decorative accents. Top your exterior off with finishing flourishes such as trendy new house numbers that are clearly visible from the street. And while you’re at it, why not add a new mailbox? Or frame windows with new shutters?

9. Dress-up your front porch or entry. Make sure you have an inviting place for potential buyers to sit and admire the landscaping. Even a small sp
ace has room for a chair or bench and a round table, or a stool to place a drink on. An outdoor accessory or two is fine, but keep it simple and uncluttered.
Keep in mind that simplicity is the key to creating curb appeal. A few flower beds that border and define walkways, curbs and lawn areas, and a few flower pots next to the home is often enough.
Remember: Breaking projects up into small, manageable chunks —as your time and budget allow—is the best way to go, because even just a few design tweaks can make a big impact to your home’s curb appeal.

Contact me today for a Free Home Value Report or for answers to your real estate questions at www.kimlouie.net!

Tips for the Garden "Newbie"

Gardens are a perfect place to refresh your mind and soul. It can bring you peace and serenity with nature’s entire beauty — flowers, plants, water and wind. There is no doubt that gardens make a home beautiful.

Typically, when people start planting their garden, they start with flowers. In addition, most people will pursue planting roses. The novice gardener doesn’t realize that roses usually take the most time and effort as compared to other flowers. With such an enormous array of flowers to choose from, it is best for the novice to start off with easy care plants and flowers.

Vegetable gardens have become quite popular too. A vegetable garden can bring a sense of pride and accomplishment when you place those fresh vegetables on your dinner table. The list of vegetable plants is endless, therefore when planning your vegetable garden choose the right vegetable for your growing climate. For instance, cool weather crops would be green beans, zucchini and cucumbers.
Many gardeners will consider planting fruits as well. In Canada this could be a tricky option due to harsh weather. However many home owners have proven that it is possible. Consult with the experts from your local gardening nursery to select plants that are most suited to your area.

Herbs are another favourite for the home garden. If you have limited space, you can grow your herbs indoors in a sunny window. The most often used herbs for cooking are basil, thyme, oregano, parsley and cilantro. These herbs are easy to grow too.

Landscaping your yard is another form of gardening. There are different types of grasses and shrubbery to decorate your yard. Decorative rocks, ponds and statues are also included as a form of landscape gardening. Landscaping your yard is not limited to plant life. As with a garden, your lawn and shrubbery need upkeep.

As mentioned earlier, gardening can be fun and educational for the whole family. In addition, what a delight to see the flowers bloom and harvest the vegetables.

However, as with anything else, to be a successful home gardener takes work. Plants need to be weeded and watered. Do not get discouraged if the flowers are not as brilliant as expected or the beans did not do so well. Research the plant in question and then try again next planting season, eventually you will have a wonderful garden.

Contact me today for a Free Home Value Report and answers to your real estate questions at www.kimlouie.net!

Friday, May 19, 2017

Fireworks Shows this Weekend in Waterloo Region and by-laws for hosting your own fireworks...

Unless your neighbours shoot off a few fireworks in their backyard, there's really only one official spot locally to see the night sky light up with multiple colours to mark Victoria Day.
The holiday on Monday is an all-day festival in New Dundee, southwest of Kitchener.
It starts with breakfast at 7:30 a.m. and goes through to fireworks at dusk.
The event also includes a car show, town-wide garage sale, kids shows, local bands, midway rides and a parade at 1:30 p.m. at Doug Fisher Memorial Park.
Be aware, there will be road closures during the fireworks.

Spring fireworks display

If you can wait a week, the Elora Lions are hosting their spring fireworks display on Saturday, May 27 at the Grand River Raceway in Elora.
The fireworks begin at dusk, but the gates to the raceway open at 6 p.m. and there will be pre-fireworks entertainment by local musicians and dancers. There's a minimum $5 donation per person with proceeds going to Elora Lions Projects, the diabetic wing of new of Groves Memorial Community Hospital in Fergus.
Saskatoon Fireworks festival

Host your own show

You could also take a drive to see fireworks – there are displays in Milton, Hamilton, London and Toronto – or you can opt to buy some and set them off yourself.
But there are rules about who can use them – no children – when you can buy them and when you can set them off.
Waterloo – low-hazard recreational fireworks permitted, but must be used outside in a safe manner. The fireworks can be set off on the seven days immediately before and after Victoria Day (also Canada Day, Lunar New Year's and Diwali). No flash crackers, bottle skyrockets or stink bombs.
Kitchener – recreational fireworks are permitted on the day before the holiday, the holiday itself and the day after a holiday. They can't be set off in the street, city-run parks or playgrounds, within 25 feet of a building> Also, the city recommends not experimenting with homemade fireworks.
Cambridge – fireworks are only allowed on the day before the holiday, the holiday itself and the day after a holiday (two days in the case of bad weather). City staff are currently completing a review of its fireworks bylaw.
Guelph – recreational fireworks are allowed on the day before the holiday, the holiday itself and the day after a holiday. They can be discharged between 9 a.m. and 11:59 p.m. and you need permission from the city to set them off in parks.

How to handle fireworks

All the bylaws indicate safety measures everyone should take when setting off fireworks at home.
  • Store fireworks in cool, dry place.
  • Only use fireworks outdoors. Choose a clear, open area.
  • Do not let children use fireworks.
  • Keep an extinguisher or water nearby (garden hose or bucket).
  • Light one firework at a time.
  • Dispose of fireworks properly by soaking them in water and then putting them in a trash can. Wait 30 minutes to dispose of those fireworks safely.
  • Never experiment with homemade fireworks.
  • Don't try to re-light duds.
  • Don't throw or point fireworks at other people.

Thursday, May 18, 2017

Change Your Mood with Feng Shui Colours

Colour is one of the easiest ways to shift the energy in your home or office in order to create the right mood. However, working with colour can be a bit tricky as many interior decorators and feng shui enthusiasts will surely agree.


Followers of the ancient Chinese art of Feng Shui believe that colours play an important part in the harmony of our lives. Selecting the right colour could affect your health, career, finances and even your romance. While finding the right feng shui colours for your space is really easy - as you can see in our description below - it might take a bit of work to make a specific colour work harmoniously in your space.

Chinese Feng Shui has five elements: earth, wood, metal, fire and water. Each property enhances certain areas of a person's life. Feng Shui colours are separated into categories that coincide with these elements. By using Feng Shui colours that match particular elements, a person can attract specific attributes into a home or office.

The Feng Shui earth element symbolizes relationships and harmony. Colours associated with the earth are pale yellow and tan. Yellow gives patience and encourages calm thinking. It also nurtures the ability to remain centred throughout life’s changes.

Wood elements relate to green and brown colours. They are associated with family and represent wealth and prosperity. Decorating a room with shades of green reinforces the power of the wood element and prevents family upsets and fights.

Enhance the metal property to promote concentration, efficiency, creativity, mental sharpness, love, friendship, travel and productivity. Metal is enhanced with the Feng Shui colours of gray or white. Avoid the use of too much white, as this can create excess "cold" energy, creating a negative result. The colour white, which represent spiritual and moral purity, is also used in Chinese Feng Shui decorating when people want to have children.

Fire is yang energy and is considered the most powerful among the five. It represents energy, passion, warmth and cheer. It can, however, be dangerous as it also burns. This element is associated with triangular shapes and the colours red, orange and purple.

The fire element can be enhanced by the placement of red objects and the use of candles and bright light. Chinese families often paint their front doors red to invite positive energies into their home. The fire element is a great way to boost your fame and recognition.

The water element in Chinese Feng Shui is used for abundance, wealth, purity and peace. Blue and black are the Feng Shui colours for water.

Black represents seriousness and justice, deep waters and the darkness of winter. Not usually considered lucky, but when used in balance with other colours black can absorb negative chi. Black or dark blue are best for the career area of your home.

If you dislike a particular colour, it doesn't have to be used in abundance. Even accents of colour can produce the desired energy. For instance, it is not necessary to paint the walls green or to use green furniture to get results. Simply place some green plants in your room and add some artwork with touches of green. This is sufficient to produce positive energy.

As you use colours in your overall external environment, realize that according to Feng Shui principles, they will also affect your inner self. Let your surroundings be an accurate manifestation of who you are now, and all that you endeavour to be. Strive for harmony, rather than excess. This balance will nurture a deep satisfaction and enduring results as you develop the sphere of influence surrounding your mind, body and spirit.

Contact me today for a Free Home Value Report or for answers to any of your real estate questions at www.kimlouie.net!

Monday, May 8, 2017

Home Inspectors soon to be licensed and regulated in Ontario


The Ontario government last month finally passed legislation to regulate the home inspection industry and establish qualifications for home inspectors.


The Home Inspection Act 2017 establishes minimum standards for home inspection contracts, home inspection reports, disclosures and the performance of home inspections.


Under the new law, anyone performing a home inspection must be licensed and insured. A written contract with the homeowner must be signed, and a written report has to be delivered after the inspection.

Until now, anyone with a flashlight and a business card could hold himself or herself out as a home inspector. Without any rules for training, competence, insurance or oversight, the field was truly the Wild West.


Although the new law has received Royal Assent, it will not come into effect until the government drafts and proclaims regulations to implement the details of the legislation.


A regulating authority like the Law Society or the Real Estate Council of Ontario will be established by government regulation to oversee the profession.




Requirements for errors and omissions insurance will be implemented, and a code of conduct enacted to govern the conduct of registered inspectors. A discipline committee and an appeal committee will be established by regulation to enforce compliance.


A government announcement noted that these changes will ensure that consumers benefit from quality advice, are protected from surprise costs and are aware of safety issues before buying a home.
They will also create a level playing field for the home inspection industry, preventing inspectors with little or no training from competing with qualified professionals.


Back in 1994, the Ontario Association of Home Inspectors was established by an Ontario law, but membership was voluntary. The association pushed for a licensing regime for several years.
 
The government recognized the legislative vacuum and in December 2013, it commissioned a blue-ribbon panel to report on industry regulation. Not surprisingly, the panel’s report, entitled “A Closer Look: Qualifying Ontario’s Home Inspectors,” recommended setting up a governing body to license, govern and regulate home inspectors. Mandatory insurance, education standards and a code of ethics would be instituted.


The panel reconvened in 2015 and affirmed the 35 recommendations in its earlier report. Still the government took no action. In March 2016, Liberal MPP Han Dong (Trinity—Spadina) introduced a private member’s bill to regulate the home inspection industry.


The following month, David Orazietti — then Minister of Government and Consumer Services — told me that he felt strongly about the issue, and wanted greater regulation in this area.
“I’m committed to introducing legislation as soon as possible,” he said, adding that it would be “within this year.”


In August last year, no doubt prompted by Dong’s private member’s bill, the government announced its intention to introduce legislation.

The new law received first reading in the legislature in November, but was not passed until last month.


Ontario consumers have had to wait for this legislation more than three years after the first panel recommended regulating the industry. And there will be more waiting while the government drafts implementation regulations.

Wednesday, May 3, 2017

Home Sales continue to climb as inventory sits at about half of normal in Waterloo Region...




These stats are averages for the month.  The market is moving very quickly, week to week, with sales outpacing comparables....and that has many ramifications for appraisals and firm deals actually closing.  Inventory is slowly starting to climb.  For a rundown on real time market conditions, feel free to contact me via www.kimlouie.net


It was another record setting month for home sales as 766 residential transactions were recorded through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), an increase of 14.3 percent compared to April 2016.


Residential sales in April included 492 detached homes (up 14.7 percent compared to April 2016), 161 condominium units (down 1.2 percent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 52 semi-detached homes (up 30 percent) and 53 freehold townhouses (up 60.6 percent).

"Homebuyers were out in full force again in April," says James Craig, President of the KWAR. "The encouraging sign was that we actually saw more listings coming onto the market last month than we’ve seen in quite a while."

REALTORS® listed 985 residential properties in K-W and area last month, a 17.8 percent increase compared to April of 2016, and the first time the number of new listings put on the market in a single month has come so close to the 1,000 unit mark in two years.

However, with inventory continuing to sit at or below one month of inventory for the ninth consecutive month, there continues to be a lot of pressure on prices. By the end of April, there were only 652 residential listings still active on the KWAR’s MLS® System — that’s 48.8 percent fewer than the 1,274 available listings that were on the market at the end of April 2016.

The average sales price of all residential sales increased 39.7 percent to $512,656 compared to April 2016. Detached homes sold for an average price of $594,453 an increase of 40.1 percent, while the average sale price for an apartment style condominium was $267,455, an increase of 18.3 percent. Townhomes and semis sold for an average of $377,531 (up 39.3 percent) and $415,709 (up 47.7 percent) respectively.

Vigorous demand for homes in Waterloo region meant homes were snapped up quickly. The average days on market in April were 10, compared to 33 days a year ago. On a month to month basis, it took four fewer days from list to sale date in April compared to March.

To address the growing concern around housing affordability, particularly throughout the Greater Golden Horseshoe, the province recently announced 16 measures for homebuyers and renters, called Ontario’s Fair Housing Plan. "It’s still too soon to say what kind of impact these change will have on the market," says Craig. "We don’t support expanding rent controls, or any new taxes – but I was pleased that the government will be creating a Home Ownership Task Force to provide ideas about getting more supply to market."