Is Downsizing Your Home Right for You?

Downsizing is a common topic that comes up with homeowners as they approach their retirement years. But before moving to a smaller house or condo, pre-retirees need to think about both the lifestyle and financial implications of such a major move.

Many would prefer to stay in the family home if they can. However, downsizing can be a very appealing option to free up funds for retirement and cut living expenses, for the average homeowner who has been paying a mortgage for years and building up substantial equity.

The first step is to have a clear idea of what it costs you to run your life now, you should also research the potential costs of the new home you are considering. Keep in mind "How do you want to spend your time?" This gives you a sense of where you want to live in retirement and whether you are ready to downsize.

When it comes to the financial considerations of downsizing, consider whether the move is financially beneficial. “The initial thought is ‘I’m going to reduce my expenses,’ but this may not always be the case.”

The plan to end up with a large chunk of money to invest doesn’t always go as planned. Related expenses can take a serious bite out of any profit from the sale of your house. So, approach this option with caution, take into account the moving cost and other expenses like closing fees and real estate commissions, condo fees and land transfer taxes.

However, if you plan to travel a lot, spending a few months in the warm weather of Florida or Mexico, and maybe a couple of months touring Europe each year. Then it makes a good sense so have a condo, where you can just lock the door and leave, is so much easier than a house with a yard and all of that.

Also, the financial benefits of downsizing can be substantial, when you sell your home and buy a smaller house or a condo, the idea is to be able to pull the equity out and have that as ready cash available for your retirement lifestyle and to also reduce the day-to-day costs, so what you’ll be needing to draw from your retirement income is less.

Take the emotion out of the downsizing decision
The main reasons most empty nesters are reluctant to downsize tend to be emotional ones. They feel comfortable there, it's where their children grew up, it's their home, but the decision is better made based on financial and health reasons.

There is the age-appropriateness of the property itself. Older adults are better off moving to a single-story home while they are perfectly healthy before stairs begin to pose a risk.

Determine whether to stay with a few changes
Aging in place can be a viable option, even if modifications need to be made. Such improvements can be cheaper than moving into a new home. For example, the average cost of building a wheelchair ramp is approximately $2,500.  It's more about rightsizing rather than downsizing, people often like where they live and want to find ways to stay there.

Contact me at www.kimlouie.net for a free Home Value Report or to chat about the current real estate market!

Staging Your Home for a Faster Sale

When selling your home it is important to take advantage of every trick in the book to get your home sold as fast as possible and for top dollar. One of these tricks is called Home Staging.
Home Staging is a proven system for preparing properties for sale. It helps to make your house seem bigger, brighter, cleaner and an ideal dwelling for almost any prospect that inspects your home. Staging helps prospects visualize themselves in the house and allows them to mentally make it their home.

Staging is not designed to make your house more liveable for you and your family. In fact, it is a bit of hardship to live in a staged house during the selling process. You and your family will literally be out of your comfort zone. Everything that makes your house your home will for the most part be gone. But remember: this is only temporary.

Having your house on the market can make things challenging for you and your family. At times, your agent will give you short notice that a "hot prospect" wants to see your home right away impacting you and your family. So anything that can shorten the time on the market, like Home Staging, will be well worth it, even if it means a little more temporary discomfort.

Staging is more than just cleaning, painting, and making repairs. Your aim is 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. Staging is about getting your house sold.

Home Staging involves de-personalizing your house, reducing the furnishings to bare minimums and creating vignettes inside each room. It may also include the use of the accessories to highlight your home’s best architectural features. Common accessories might include:

• Mirrors
• Cut flowers in attractive vases
• Fresh fruit
• Up lights, table lamps and floor lights
• Ottomans
• Pillows and baskets
• Scented soap bars
• Fresh towels
• Ironed crisp bed sheets

You might be tempted to feel that since you're selling your house and moving to a new one, you don't want to invest any more money into your existing property and save that money for your new home.

Do not make this mistake!

If your house doesn't have that certain appeal and lacks attention to detail, real estate agents will be less inclined to show the property, simply because they know what your competition is doing and their time and their buyer's time is valuable—why waste it on a property they know most buyers will pass on?

Contact me today at www.kimlouie.net for a free Home Value Report or for any questions regarding the current real estate market!

The Path to Real Estate Investment Success

Residential property can be a great investment selection – but you need to buy well to secure the best return.

Property is widely considered a great investment and a powerful wealth creation strategy. But as with anything in life, there are no guarantees.

Yet if you back yourself with the power of knowledge and employ the right investment strategy, there is no reason why property investment can’t be a powerful wealth creation strategy for you and your family.

If real estate investment is on the horizon for you, try to keep the following tips in mind, and you’ll be well on track to securing yourself a great investment.

Know your limits
Overstretching your budget is a sure-fire way to cripple your chances of doing well in the property market.

Whether you are a seasoned investor or new to the market, there is nothing more important than determining your budget and understanding how much you can afford to borrow.

A mortgage broker can work with you to assess your borrowing capacity and ensure you embark on an investment strategy that fits your budget. With pre-approved finance, you’ll also be ready to strike when the right property comes along.

Location, location, location
When investing in property, the location of your potential purchase should always be front of mind.
Be sure to consider areas that are backed by strong population growth, employment opportunities, development prospects and solid infrastructure projects.

A great idea is to take a drive around any areas you’re interested in and note all local schools, transport hubs, and shopping centers.

A property that is within proximity to such key amenities is usually in higher demand for both tenants and future buyers, which should maximize your prospects of achieving solid capital growth and stable rental income.

Understand the tenant
The location and type of property you purchase will be a strong motivating factor in the type of tenant you are likely to attract.

If you are seeking a long tenancy agreement with a family, it may be wise to consider areas that support such a demographic.

Once again, consider a safe area surrounded by a range of schools and shopping centers to support the needs of your target market.

While there are no guarantees with any investment strategy – understanding these three essential aspects of successful property investment should get you closer to ensuring good returns on your next purchase.

Contact me today at www.kimlouie.net to discuss your investment options or for any questions regarding the current real estate market!

Determining the Value of Your Home

When planning to sell your home, coming up with the right selling price may seem like a very difficult process. There is a lot of data to sift through and you might feel a little lost. However, with some careful investigation and calculations, you can come up with a good estimate of your property's market value.

What is the market value?
Market value is how much a home would sell for under normal conditions. This excludes sales where the buyer or seller is under pressure to act, perhaps due to career relocation, the death of a family member, or divorce.  Market value is basically an educated guess, but it can be fairly accurate if you apply the right method and consider all the important details.

A number of factors may affect your home's market value, including:

External characteristics - "curb appeal," home condition, lot size, the popularity of an architectural style of property, water/sewage systems, sidewalks, paved roads, etc.

Internal characteristics - size and number of rooms, construction quality, appliance condition, demonstrated "pride of ownership," heating type, energy efficiency, etc.

Supply and demand - the number of homes for sale versus the number of buyers; how quickly the homes in your area sell.

Location - desirability for a particular school district, neighborhood, etc.

How to estimate your home's market value?
We recommend you use the sales comparison approach to estimate your home's market value.  This is the primary method used by professional appraisers and real estate agents to determine the market value of homes.

1. Begin by researching recent sales of similar properties in your local area. The sale prices of these properties will provide a good starting point in estimating your home's value.  Try to find sales of at least three properties that are comparable to your home.  If possible, make sure these properties were sold under normal conditions.  You only want properties sold at market value.
2. Unfortunately, you probably won't find an exact comparable sale.  To account for this, you need to adjust the sale prices by adding or subtracting the estimated value of any home improvement or differences between your home and the comparable properties you identified in step 1. This will require some analysis on your part to determine whether these differences increased or decreased the sale price, if so, by how much?  The adjusted sale price is your estimation of what the property would have sold for if all the characteristics were the same.
3. Seek the help of your local real estate agent. Realtors have plenty of experience in your area and are aware of recent sales. Even if their office didn't make a recent sale in your area, they have access to the MLS system which gives them access to detailed information about recent sales that are comparable in your area. They can also provide up-to-date awareness of the market conditions and other parameters that affect the selling price.

The Psychology of Colours

Knowledge of how colour affects your conscious and subconscious mind can change your life. It can inspire you to discover more about yourself and to embrace who you really are. The colour scheme that you select for a room has the ability to create the mood of the individuals that enter the space. Psychologists believe that colour can inspire people to action, conjure up memories from the past, promote intellectual thought, or even calm the human spirit.

When you prepare to select paint colours for decorating, consider the effect that the colour scheme you choose will have on people in the space. Below are some examples of colour and the mood that it inspires.

Neutral colours like sand, shell, coral and pearl create a sense of peace and well-being. Natural tones have historically been known for creating a mood of serenity in human beings. These are excellent colours for walls and furniture, with other shades being used for accent pieces throughout the décor.

Gray, blue, red, burgundy, and cranberry creates a mood that inspires intellectual thought. These colours also lead the individual to think of travel and education. While many may consider some shades of these colours to be too bold, the colour red, for example, is sharp and clean, leading to a mood of intellectual security and freedom. Depending on the shades of these colours, they can be used as either one of the prominent colours in the room, or as accent colours that compliment neutrals.

Bubble gum pink, buttercup, wintergreen, all the berry colours and crayon colours are playful colours that can create a mood of excitement in any room. The decorator should be careful in the use of these colours because if overdone they can also lead to an exhaustive feeling after a period of time. Yet, when used in moderation these colours lead to a mood of movement, activity, playfulness and freedom. When used in a child’s room, for example, these colours should be offset by both natural and intellectual colours in order to ensure that the mood of the room does not create a mood of too much activity.

Colour psychology has become an important part of the interior design project in the last few decades. Colour psychology focuses on how colours that exist around us create moods, or induce certain emotions.

Red: The colour red inspires passion and intimacy. It is a good choice when you want to stir up excitement, particularly at night. In the living room or dining room, red draws people together and stimulates conversation. In an entryway, it creates a strong first impression. Red has been shown to raise blood pressure, speed respiration and heart rate. It is usually considered too stimulating for bedrooms, but if you’re only in the room after dark, you’ll be seeing it mostly by lamplight, when the colour will appear muted, rich, and elegant. Red, the most intense, pumps the adrenaline like no other hue.

Yellow: The colour yellow captures the joy of sunshine and communicates happiness. It is perfect for kitchens, dining rooms, and bathrooms, where happy colours are energizing and uplifting. In halls, entries, and small spaces, yellow can feel expansive and welcoming.

Blue: While some people may contend that blue is a cold colour, colour psychology focuses on blue as a tranquil and calm colour because it can be associated with water. Blue is an excellent choice for bedrooms, guest rooms and living rooms. With so many shades of blue to choose from, there are many possibilities with blue as a central colour in the décor of your home.

Green: This colour is considered a natural, peaceful inclusion in decorating. Colour psychology suggests that green can be used in any room because it is welcoming and inviting. Many people elect to use green in their kitchens, either as a central colour or as an accent colour because of the traditional use of kitchens as a gathering place for families and friends.

Orange: Most people associate orange with Halloween. Colour psychology suggests that this is because orange creates a mood of warmth and seasonal change that brings happiness in the fall season. Orange is a good colour to use in living rooms or family rooms for this reason.

Violet: An important colour in colour psychology, violet is considered the most effective colour when attempting to create calm and tranquil moods. Many modern operating rooms will paint their recovery areas in violet for this reason.

Home Sales Dip in June in Waterloo Region

For the first time this year home sales in June decelerated on a monthly basis. Last month’s 716 residential sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) were down 3.2 percent compared to last year’s record breaking June. This brings the total number of sales during the first half of the year to 3,834, an increase of 9.1 per cent compared to 2016.

"Home sales in June were very strong, and we’re on track to have another record breaking year of residential sales," says James Craig, President of KWAR. "June is the fourth consecutive month home sales in the Kitchener-Waterloo area have exceeded 700 units. Historically sales in KW and area have only ever surpassed the 700 unit threshold in a single month three previous times."

Home sales in June included 467 detached homes (down 4.3 per cent compared to June 2016), and 141 condominium units (down 5.4 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 53 semi-detached homes (up 15.2 percent) and 51 freehold townhouses (down 5.6 per cent).

"We definitely saw more supply coming on the market the past two months and that has helped to meet the strong home buyer demand," said Mr. Craig.

REALTORS® listed 1,083 residential properties in K-W and area last month, a 28.7 per cent increase compared to June of 2016. It’s the second month in a row that the number of new listings put on the market has exceeded 1,000 units, demonstrating an unprecedented surge of supply. Nevertheless, inventory levels remain very low, sitting at near or less than one month of inventory as strong buyer demand endures in Waterloo region.

The average sales price of all residential sales increased 19.8 per cent to $465,772 compared to June 2016. Detached homes sold for an average price of $537,389 for an increase of 19.3 per cent, while the average sale price for an apartment style condominium was $276,443 for an increase of 17.6 per cent. Townhomes and semis sold for an average of $341,716 (up 23.2 per cent) and $380,660 (up 28.4 per cent) respectively.

Contact me at www.kimlouie.net for a free home value report!

Buyer's Guide to Open Houses

Open houses can be of a great help for buyers to see what is available for sale in a particular neighbourhood and compare price and features of those houses. However, to make the most out of your open house tour, you need to be prepared. Here are some things you should think about before attending an open house.

Be represented – The seller has someone working for them and so should you. Establish a relationship with your real estate agent early to assist you as you move forward with the home buying process. You could find yourself in a difficult situation at the open house if you don’t sign in under your buyer broker’s name. Listing brokers often act as dual agents, and if you sign in under your own name, the listing broker may be able to claim you as a client if you decide to make an offer for the home.
Prepare ahead of time – Your agent can help you prepare and know the market before you explore it. If you have an interest in a particular neighbourhood, your agent can provide you information on what to expect in terms of average price, amenities, taxes and more.
Make a list – Having a list of priorities will help you evaluate the homes you visit during open house events in terms how it meets your needs and expectations. Some homes might "wow" you into overlooking your priorities; this list will give you focus.
Plan your route – Open houses tend to be scheduled from 2 p.m. to 4 p.m. on Sundays. Having a route planned of your top picks to view (and arriving early) will ensure you won’t feel rushed while previewing your prospective dream home.
Spend time – Some aspects of the home may truly impress you, but don’t let necessity be overlooked. Your need for a home office or spare bedroom shouldn’t be overshadowed by a kitchen that dazzles you. You should really try and imagine your family using and living in the spaces you visit.
Collect details – Scoop up the detailed property information sheets when you visit an open house. This offers some public record and will be helpful when you review and reflect on the open houses you attended.
Leave no stone unturned – Carefully inspect all areas of the home inside and out. Don’t overlook the basement or other storage areas as this can give an indication of how well the owners have cared for the property.
No obligation – You should feel free to explore a home during an open house without obligation to buy. Don’t be shy to ask questions of your host.
While the agent listing the property is obliged to protect the best interest of their client, they will have knowledge and information to share, such as incentives or prospective offers; you just have to be sure and ask.
While seeing as many as a dozen homes in a single day can be overwhelming and exhausting, it gives buyers an opportunity to see if the house is worth going back for a second more formal showing. If nothing is appealing, you don’t have to waste valuable time during the week. 

Finally, if an open house you attend leads you to believe you may have found your perfect home, don’t tell the seller or listing agent. Calmly leave and have your agent phone for a formal second showing. If there is tremendous interest in the home and you feel you must make an immediate offer, walk with your spouse or partner in the garden for a few minutes. You should be able to talk there privately.

Contact me at www.kimlouie.net to chat about the current real estate market!

Condo Living - The Benefits of Downsizing

The kids are long gone, you’re sick of mowing the lawn, and you’re tired of paying to heat and cool a nearly empty house. Why not downsize?

"Less square footage doesn't necessarily equate to less living". Sarah said while entertaining a small group of friends in here stunning city view location within walking distance of her workplace and health club in downtown neighbourhood.

Sarah's new space fits her tastes and lifestyle, having lived with her husband Jim and two children for over 22 years, she realized that she was a slave to her house. "My two kids had moved out, and the idea of using only two rooms (the bedroom and kitchen) out of six, didn’t make any sense. So with some anxiety, we decided to downsize. I joked with my husband that we would have to give up a lot if we moved into a condominium. What we gave up was flights of stairs, shovelling snow, putting out the garbage, raking leaves, cleaning out the eaves troughs, maintaining the furnace, and landscaping to name a few!" Sarah Said.

"Downsizing is about committing to change as much as it is about deciding where to put the furniture. Instead of dwelling on the negative and what you're leaving behind, think about what the positives are; a smaller space often takes less maintenance, leaving more time for hobbies" she adds.
While moving to her new place, Sarah had to give up many of her possessions, yet by focusing on what she was creating instead of what she was giving up, she was not only able to simplify her lifestyle but found new ways to use some of her most prized possessions.

Condos life has many advantages, because the space is smaller, you may be able to spend more on the quality of live and details. For example, you may be able to afford Italian marble for your kitchen counters because there's less counter space.

As a busy downtown Realtor, Sarah says most of her downsizing clients have decent equity in their existing homes and are moving into the city because they want a lifestyle change. Although they are willing to give up square footage, they still want amenities such as fitness facilities, kitchens with granite counters as well as stainless appliances and spacious master suites.

Condos offer more opportunities to socialize; you will meet neighbours in the halls, the lobby and the laundry room. You will also have the opportunity to meet (and argue!) with them at your association's monthly board meetings. Condo living is a good choice for low-key, sociable types who enjoy getting to know other residents. When buying a condo, keep in mind that happy neighbours are a sign of a responsive, well managed building.

Most condos are equipped with security doors and intercom systems. Many also offer alarms, security cameras, and 24 hour doormen and lots of neighbours. Security conscious buyers and extensive travelers can rest assured that their homes will be watched and maintained while they are away.

A private, waterfront lot with magnificent views is way out of reach for most buyers; Condos ownership makes this attainable for most buyers. With access to luxury, high-end locations such as city center, waterfront, or art-district, is one of biggest perks that condos offer over single family homes.

“Now that I’m a happy condo owner I’ve discovered that my downsized lifestyle offers many upsides. My husband and I are having the time of our lives. We have adopted an active lifestyle, with long walks on nature trails and short hops to local attractions by public transport. We now take in live theatre, music, and ballet. We try out new restaurants and get “recharged” by the breathtaking beauty of the waterfront” Sarah Said.

On average, condos are much more affordable than houses, making them an excellent fit for individuals who want to lower or limit their housing costs. Clearly condos are the economical choice for retirees hoping to downsize, or first time homebuyers trying to enter high-end markets.

In her new one-bedroom loft in the lakeshore neighbourhood, Sarah enjoys a stunning city view . By focusing on what she was creating in her new space instead of what she was giving up, she was not only able to simplify her lifestyle but found new ways to use some of her most prized possessions.

Contact me at www.kimlouie.net to find out what your home is worth or to chat about the current real estate market!