Increase Your Home's Value with a Front Door Replacement

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A new front entry upgrade instantly improves your home’s curb appeal and is a smart investment that saves energy and adds value to your home. In a recent survey released by the National Association of Realtors, the replacement of an exterior door held the most value and recouped the most cost of any exterior improvement project.

Many advances in the past ten years have made new front entry doors more energy efficient. For example, the new steel and fiberglass front entry doors have dense cores that make them more effective at insulating your home and resisting heat build-up compared to solid wood doors. As an added bonus, the majority of these new front entry doors are not easily dented or dinged, nor do they warp or split like a traditional custom entry door, making them somewhat maintenance-free as well as perennially visually appealing.

Here are a few tips to consider when choosing your entry door to ensure you find the perfect fit for your home.

1. Door Styles
A front door reflects the personality of a home and the family who lives there. The style is one element of your home’s design, so it should complement and enhance the overall look and feel. Style can be casual, traditional, formal or artistically reflect influences from around the world.

In most cases, the front door is the focal point and you should choose a door style with supporting glass accents, door trim, light fixtures, and shrubs to create a front entry that captures the eye. If the door plays a supporting role to more intricate landscaping, you might select a simpler door style to play a role within the larger image you’re creating.

2. Consider Your Environment
You need to consider the environment that your door will face. Your entry door is the first line of defense against the elements. If your door cannot stand up to the wind, snow, rain, heat, cold and more you will lose money in energy costs every year. Your entry system is comprised of more than just a door – the components that make up the system (the frame, sill, hinges, lock, and more) also determine how efficient and durable your entry door is. With premium components your door can withstand the elements and last for years.

3. Wood, Fiberglass, or Steel?There are three basic options for entry door material – wood, fiberglass, and steel. Each has its advantages and disadvantages, it is important to consider each carefully and determine which suits your needs best.

• Wood – Wood doors are considered the go-to choice for high-end projects. Since wood has an implication of being upscale it’ll make any home appear more extravagant and sophisticated. Natural wood textures can complement any number of architectural styles and bring undeniable character and charm to a home. Remember though that continuous care, maintenance, and a professional grade finish are musts to ensure long-term performance and beauty with a wood door. Key factors in wood door performance are adequate roof overhang, minimal sun exposure, and proper sill height.

• Fiberglass – Fiberglass doors offer durability and beauty. There are hundreds of fiberglass options available that offer the look of real wood, but unlike real wood, fiberglass will not expand or contract as the weather changes. Fiberglass doors offer superior durability, resisting denting, splitting, cracking, and warping to offer long-term performance. Properly finished, most fiberglass doors can go years without needing paint or stain touch-up.

• Steel – The most affordable option for entry doors is steel. Steel doors may offer excellent strength, security, and insulation, but are very susceptible to denting resulting in difficult and expensive repairs. Compared to wood and fiberglass, steel doors do not stand up as well to normal wear and tear.

4. Components, Accessories, and Features
As stated earlier, your entry door is about more than just your door slab. It is about all the components, accessories and features that make up the entry system. There are a number of features to consider before purchasing an entry system:

• Security – When it comes to security, consider the material you chose and the lock accessories available. While steel is often touted as stronger than wood or fiberglass, the difference is not significant. Regardless of which door material you choose, make sure the door slab fits tightly into the frame and make sure the door is fitted with secure, high-quality door locks. Multi-point locks provide superior security and help prevent warping, wind deflection, and drafts which help keep heating cooling costs low and the elements out.

• Door Frame (Head, Jamb, Mull, Sill) – A continuous frame system provides a consistent foundation to maximize stability and functionality. Make sure that your frame is going to stand up against the elements. Look for wood composite systems that won’t absorb water like real wood as this will help prevent rotting and warping.

• Glass – If you can imagine it, you can get it. There are hundreds of glass options to choose from – clear glass, decorative glass, full view, half view, single sidelite, double sidelite, arched, rectangular, and the list goes on. Glass can add beautiful character to your entry system, however, make sure that you research the energy and privacy ratings before purchasing so you are not surprised later.

5. Do Your Research
With thousands of manufacturers, hundreds of dealers, and endless options to choose from research your options before making a purchasing decision. You want your entry system to last for years to come so don’t skimp out and go for the lowest price – find the best value. Make sure the system you choose reflects your style, fits your needs, and will hold up to the environment. Your entry system is one of the most heavily used and visible parts of your home.

Contact me at kimlouie.net to chat about real estate!

When is the "BEST" Time to Sell A House?

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One of the questions that we frequently get asked is, "When is the best time to sell our house?" In fact what those people are really asking is, "How do we get the maximum value for our property?" It is not really about the time of the year.

However, weather and holidays do play an important factor in selling your home. Almost no one goes house hunting around Christmas, and few give up their summer vacations.

Late spring and summer are usually thought of as the best times to put a home on the market because buyer demand builds steadily through spring. Sales then peak during the warmest months when the nice weather and beautiful flowers make it a great time to show your home.

Families with school-aged children are less likely to move during the school year and summer is an ideal time.

August brings a lag in sales, as people go away on vacation and start to think about the new school year. Sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. However, by January, buyers are out again and sales steadily increase into spring.

Of course, selling in the hot season isn’t the whole story. You should pay attention to your local housing market and try to list during a seller’s market when there will be more competition among buyers for your home – which could mean a better price, a quicker closing, and fewer conditions on the offer. Your real estate agent will be able to tell you what the local housing market is like.

On the other hand, if it is a buyers market, you may be in a strong position to purchase a new home, especially if you have accumulated large equity in your current property.

Another key factor to consider is the economy. Are interest rates higher or lower in comparison to your current mortgage? If they are higher, you may want to stick with your current home, as your new mortgage payments could be uncomfortable. If rates are lower, you might be able to trade up to a more expensive home without a significant increase in your monthly mortgage obligation.

Some sellers may have no choice but to sell at a slow time of year. Job relocation and the need to free up assets are facts of life that can deprive families of the luxury of waiting until the spring bloom to put their homes on the market. But there are ways to improve your chances of a sale if you have to list your home late in the year, like playing up holiday decorations and shovelling walkways to maximize curb appeal. Selling at this point in the cycle isn't always the worst fate.

Try not to sell a house in a quiet market. As a general rule of thumb, you'll want to sell your home within 6-8 weeks from listing, while it's fresh. After this period the listing becomes "old" and buyers start getting suspicious. They tend to assume something is wrong with the property and stay away. When this happens, it could damage your chance of getting the best price.

Trying to time the real estate market is no different than trying to predict the financial markets. One can make broad assessments, however, precise predictions would be tantamount to having a crystal ball. If we could all predict the future, we would never have market corrections or crashes.

The truth is, there are people buying real estate every week of the year, and often for personal reasons. The best time to sell is when you are ready.

Contact me at kimlouie.net to chat about real estate!

Don't Forget Your Home Buyer's Tax Credit!

 

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The First-Time Home Buyers Tax Credit (HBTC) is a non-refundable tax credit for eligible home buyers who buy a qualifying home after January 27, 2009. If you have a disability or are buying a home for a relative with a disability, you do not have to be a first-time home buyer.

The value of the HBTC is based on $5,000 multiplied by the lowest federal income tax rate for the year. In 2013 the lowest federal income tax rate was 15%, and it remains the same in 2014, so the value of the HBTC would be $750.

Who is Eligible for the First-Time Home Buyers Tax Credit?
You, and anyone you purchase the home with must be considered a first time home buyer to be eligible for the tax credit. The home must be used as your principal residence, and if you purchase with your spouse, common-law partner, or even a friend, then either one of you can claim the credit (or share it). However, the combined total cannot exceed $750.

What is a qualifying home?
To qualify for the HBTC, a home must be a housing unit located in Canada, including mobile homes, condominiums, and apartments. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies.  However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

How to Claim the First-Time Home Buyers Tax Credit?
You claim the HBTC On Schedule 1 when you file your Canadian income tax return. For more details. see Home Buyers’ Amount from the Canada Revenue Agency.

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system. Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Keep the HBTC in mind when you consider buying a Canadian home. It’s just another great reason to take the final step of real estate home ownership.

Contact me at kimlouie.net to chat about real estate!

Choosing the Right Neighbourhood When Buying a Home

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Choosing a neighborhood is almost as critical as choosing a house or apartment. It needs to be safe with low crime rates, affordable, and provide you with everything that you need.

If you're planning on purchasing a home, keep in mind that you're not just buying a house, you're investing in a neighborhood. The two are synonymous so you need to be extra careful in choosing the area you'll be living in.

You can't judge a book by its cover, nor a neighbourhood by its looks. Ultimately, you want to buy a house that will still be in a desirable place to live 10 or 15 years from now. Depending on your own particular needs and tastes, some of the following factors may be more important considerations than others:

• Style of homes
• Quality of schools
• Property values
• Crime rate
• Future construction
• Proximity to: schools, employment, hospitals, shopping, public transportation, cultural activities,  highways, beaches, parks, shopping, recreation and spiritual or community organizations (churches, temples, mosques, etc.)

If you’re a first-time buyer with limited financial resources, it’s a wise purchasing strategy to buy a home that meets your primary needs in the best neighbourhood that fits within your price range.

You can maximize your home purchase location by incorporating some of the following strategies into your neighbourhood search:

• Look for communities that are likely to become "hot neighbourhoods" in the coming years. They can often be discovered on the periphery of the most continuously desirable areas.
• Look for a home in a good neighbourhood that is a bit farther out of the city. If commuting is a concern, purchase a home that is close to public transportation.
• Look at the neighbourhood demand by asking whether multiple offers are being made, whether the gap between the list price and sale price is decreasing, and whether there is an active community involvement. You can also drive around neighbourhoods and see how many "sold" signs there are in a particular area.
• Look into purchasing a condominium or co-op, rather than a house, in a desirable neighbourhood. This way you may still be able to purchase in a prime area that you otherwise could not afford.
• Consider the safety issues such as traffic and how your kids are going to get to school. Paying attention to the local school system is valuable even if you don’t have children or plan to because many potential buyers are concerned with that issue. A thriving school district can be an indication of an area that will continue to rise in property values.

Of course, being too close to the school or boxed in by traffic jams can hurt the resale value of your home. You should also check how local students score on standardized tests to help determine the quality of the education taught in the area.

There are a few more sources that can provide assistance in learning about a neighbourhood:

• Go have dinner at one of the restaurants in the area. You can strike up conversations with some of the local patrons in that restaurant.
• Talk to local business owners. Even if they don't live in the area, they will have some insight about the neighbourhood and people living there.
• Find out about owner-occupancy. Your agent is a good source for this kind of information. Ask about rental values - even if you plan to live in the home. Often tenants don't have the same pride of homeownership that owners do; thus properties are not always kept up.
• Check the landscaping at major commercial developments. Is it kept up?
  Visit local facilities such as malls, movie theatres, etc. Frequently these will be hang-outs for school-aged children and  good place to get an idea about the neighbourhood kids.
• Drive through the neighbourhood and see if there are a lot of home remodelling projects going on. If so, it likely means homeowners are planning to stick around and are willing to invest more in their homes because they like the neighbourhood.

Once you have identified your preferred neighbourhood, make several visits to it on different days and times, coming back in the evening, on weekends, and during school time hours to see how the area changes. Observing the neighbourhood and the people who live and work in the area will give you a better understanding of whether its a fit for you and your family. The more time you spend studying the location the less likely you are to discover something you really dislike after you have bought the home.

Contact me at kimlouie.net to chat about real estate!

January Home Sale Prices in Waterloo Region

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KITCHENER-WATERLOO, ON (Feb 4, 2019) –– There were 307 residential sales in January through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR), an increase of 14.6 per cent compared to January 2018.

"January was surprisingly busy with an above average number of home sales," says Brian Santos, KWAR President. "The number of units sold last month were up nearly fifteen per cent compared to the previous ten-year average for January."


Total residential sales in January included 189 detached (up 26 per cent), and 80 condominium units (up 19.4 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 20 semi-detached homes (down 28.6 per cent) and 17 freehold townhouses (down 19 per cent).

The average sale price of all residential properties sold in January increased 5.3 per cent to $484,076 compared to January 2018. Detached homes sold for an average price of $564,718 an increase of 1.9 per cent compared to January of last year. During this same period, the average sale price for an apartment style condominium was $303,379 for an increase of 22.1 per cent. Townhomes and semis sold for an average of $368,227 (up 0.7 per cent) and $407,852 (up 4.6 per cent) respectively.

The median price of all residential properties sold last month increased 5.3 per cent to $455,000, and the median price of a detached home during the same period increased 7.1 per cent to $530,000
"It was a positive sign to see an uptick in the number of residential listings hitting the MLS® system last month," says Santos. "However, the total number of homes available for sale continues to perform well below historical averages."

REALTORS® listed 585 residential properties in K-W and area last month, an increase of 25.5per cent compared to January of 2018. The number of active residential listings on the KWAR’s MLS® System to the end of January totalled 810, which is 11.4 per cent more than January of last year, but still well below the previous ten-year average of 1,189 listings for January.


The average days it took to sell a home in January was 26 days, which is 5 days less than the amount of time it took in January 2018.
Santos says, "We have a positive outlook for 2019. I think we’re going to see home prices remain steady or have small increases, sales will continue to be strong but we’re also beginning to see more homes being listed for sale to increase our inventory and provide buyers with additional options. So long as everything else remains equal Waterloo Region should remain a strong and stable market."

Using Your Home Office as a Tax Deduction

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One of the great virtues of starting a home business is the tax breaks you can claim. However, claiming aggressive write-offs is a sure way to attract CRA auditors. In this article, we'll look at some of the more popular home business write-offs as well as some tips on how you can legitimately claim them.

1. Keep Business Records
If you wish to claim tax deductibles on your home office expenses, you must get into the record-keeping mindset. You need to establish a means of keeping track of the money that is coming in and the money that is going out. Being audited is not the end of the world. However, being audited and not having the records to back up your deductions can be a nightmare.

The more detailed your accounts are, the easier it will be to face an audit. Compiling your daily reports into a monthly tracking sheet will drastically shorten the time it takes you to get your taxes together, and it will have the added benefit of providing a snapshot of your business month-to-month.

2. Write-off Your Workspace
Writing off a home office can be particularly attractive if you have a line of work that can be neatly confined to a dedicated room. You can still write off part of a shared room, but in either case, the space is calculated as a percentage of the total house or apartment area. That percentage is applied to all the related costs, including utilities, insurance, rent or mortgage payments and so on.

3. Update Your Business Equipment
Office furniture, software, computers, and other equipment are all 100% deductible within the year that the cost is incurred - you don't need to depreciate. There is an upper limit and the purchases must be majority-usage (primarily used) and necessary or helpful for business.

4. Business Phone and Internet
If chatting with clients is a necessary part of your business, it may be worth getting a second phone line or a dedicated business cell phone, as both of these are 100% deductible. If you only converse with clients occasionally, you can still write off the costs by noting the dates, times and reasons for the calls and then circling the items on your regular phone bill to deduct at tax time.

You can also deduct part of the cost of your internet if you use it for business. There is no absolute percentage to use, but it will be difficult to write off more than 50% if other members of your family are using it for non-business purposes. Be reasonable and pick a defensible percentage that you won't regret in the case of an audit.

5. Entertainment Expenses
You can wine and dine clients (preferably paying or likely to pay clients) and get a tax break. The tendency for business owners at all levels to abuse this write-off has scared many home business owners away from claiming it. However, it is acceptable for you to take out a client for a meal and some entertainment. It will be easier to defend a $200 deduction for a client who has brought you a lot of business than the same meal for a buddy who paid you $20 for an hour's work over the entire fiscal year.

6. Take a Trip, Not a Vacation
Have to hit the road to expand your market? Save your receipts. On business trips, your travel expenses are 100% deductible and your food expenses can be deducted at 50% of the total. Keep all of your receipts because even things like dry cleaning and tips are considered a necessary expense when you're out pounding the pavement in new markets.

7. Automobile Expenses
When it comes to automobile expenses, you can claim registration, repairs, oil changes and gas. But it’s important you keep a log of the kilometers you are traveling for business on a daily basis, because you may need to prove how frequently you use your car for business.

8. Employ (not just pay) Your Family
You can use family members as employees and deduct their salaries as long as you account for their work and pay the going rate. If you have a business that lends itself to having a spouse and kids help out, then use that labour pool. You'll likely pay less than market rates for the help, and you can deduct insurance premiums for them as well.

9. Make Justifiable Deductions
Just because you have a home business doesn't mean you can go crazy with deductions. If you don't think you can face down an auditor with detailed proofs justifying the deduction, then perhaps it isn't a deduction you should be taking.

The CRA's T2125 form — Statement of Business or Professional Activities — needs to be filled out to claim these expenses. Page 3 of this form deals with the calculation of what is called business-use-of-home expenses.

Most tax software programs will let taxpayers claim home office expenses, although you may want to upgrade to a more expensive version that caters to the self-employed or small-business owners.

Working from home can result in big tax savings. But the rules are strict and the paperwork can be formidable. It might be wise for first-time claimants to seek the help of a professional.

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