Factors that Determine Your Home's Value

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There are many factors that can affect the market value of your property, ranging from home improvements to the mood of the seller. All of this is a lot to internalize, but you can make an informed decision while pricing your home if you tackle these issues one at a time.

1. Location Your home’s proximity to public transportation, train stations, shopping facilities, schools, etc., plays an import factor in determining your property’s market value. Every area has a high end and a low end. The market value of your property is affected by that reality. People that purchase homes in “lower end” areas expect to pay less than they would if they bought the same home in a “higher end” neighbourhood.

2. Features One of the key factors in your home’s value is the features it provides. For example, some house styles are more popular with buyers than others. The age and size of your home compared to other available properties also plays a part in affecting your home’s value.

3. Condition Potential buyers will take into account the condition of your home in deciding if they want to buy it and how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a top dollar sale than one that is lacking the most basic routine maintenance.

Experienced buyers look for important conditions like paints, floor coverings, walls, ceilings, floors, doors, and windows. Buyers may also pay close attention to the plumbing, electrical work, repairs, bathrooms, kitchen, and so on.

4. Home Improvements Most people think that home improvement is a sure way to increase the value of a home. Major home improvements are unquestionably important factors that affect property value. Improvements like room additions, bedrooms, bathrooms, kitchens and other items like floor tiles, swimming pools, etc., can increase the value of your home. However, it only matters what those improvements are worth to the buyer.

5. Market Conditions When the market is flooded with similar properties for sale and real estate buyers are scarce, you can expect to sell your home for less than you would if there was a shortage of supply and lots of eager potential homebuyers.

6. Seller Motivation Seller motivation is also a major factor which affects the offer price made by the buyer. For example, if you bought a home in a new area you may be willing to accept a lower price to quickly complete the sale of your current home.

7. Marketing  The marketing plan that your agent executes on your behalf will determine the amount of interest that is shown in your property. Your agent’s level of skill and expertise in the negotiating process will affect the amount of money you’ll be able to get for your home. Many people put more thought into what they’ll have for dinner tonight than who they will trust to market their most valuable asset. Don’t make the same mistake. 

Saving Money for Your First Home

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When it comes to buying your first home, a big part of that decision should be based on what your current financial position is and the impact a home loan will have on your finances and lifestyle.

For many first-time homebuyers, saving what is required for a down payment can seem overwhelming. However, sometimes saving for a down payment is as simple as managing your budget differently.

Start with a goalOne of the best ways to save is to have a goal. It will keep you motivated and give you something to work towards. For example, you may choose to save a 10% deposit plus expenses (usually 5%) for your first home. But the more you can save, the better off you’ll be. Find out how much you need to put aside in order to reach your savings goal.

Create a budgetWrite down how much money you bring home each month; write down the payment amounts for each of your monthly bills; subtract your expenses from your income to determine how much extra money you have each month.

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

When you go shopping, ask yourself if you really need the item you are thinking of buying. If you don't need it, don't buy it. Put the money into your savings account instead. Remember that small amounts of money can add up to large sums over time.

Start an automatic saving plan Make saving automatic by setting up an automatic savings plan at your bank to regularly move a specific amount of money directly from your chequing account to a savings account. You’ll be surprised at how much you can save and how quickly the “pay yourself first” approach adds up.
  
Borrow from your RRSPs If you qualify as a first-time homebuyer, you may be eligible for the government's Home Buyers' Plan (HBP). This allows you and your spouse or partner to withdraw up to $25,000 each from your Registered Retirement Saving Plans (RRSPs) to add to your down payment or to cover purchase-related costs.

Best of all, you don't have to pay income tax on the funds, as long as you repay the total amount to your RRSP over the next 15 years. The repayment period starts the second year following the year you made your withdrawals. If the full $25,000 is withdrawn, the minimum annual repayment would be $1,666.

Take a holiday from tax If you open a new Tax-Free Savings Account (TFSA), you won’t pay any tax on earnings, which will help you compound your savings. You can contribute up to $5,000 a year to a TFSA, and save for anything you like, tax-free.

Review your mortgage options Once you make the decision to purchase a property, the next choice is the type of loan to suit your budget. The two most common types of loans are the variable interest rate loan and the fixed interest rate loan. 

You can now choose to pay back your mortgage over 25 or 30 years, instead of the traditional 20-year amortization period. This means you will pay more interest over the long term, but you can reduce monthly payments to get into your starter home. You can always change this later, once your income rises and you can pay your mortgage down faster.

Get into a starter house Try to be as flexible as possible when choosing your first home. Unless you’re status conscious, your first home doesn’t necessarily have to be your dream home. You could settle for a starter home, which you can afford with a small down payment and easy mortgage installments. There are plenty of lower-priced houses out there in need of repair, with some "Do-It-Yourself" projects where you can add more value to the house. Be careful not to buy a place where the cost of repairs will eat up any profits you might make when you sell.

In just a few years you will build enough equity in your starter home to make it easier for you to sell and move into your dream home.

Buying your first home is an exciting process. After all, your home could be the largest asset you’ll ever own. Being able to finance most of its cost will take a load off your back in the future.

Decorating with Book Cases

There is nothing like a well-styled bookcase filled with books, accessories, and collectibles to add warmth and uniqueness to a room. Books are entertaining and enlightening and can be a beautiful decorative element in a room if you learn how to display them in an effective way.

Bookcases can also represent and showcase you and your family’s passions, interests, and hobbies.  They can make a bare wall go from blah-to-beautiful and make an overall space feel larger and taller. 

You can also have a lot of fun filling your bookshelves. Start with a blank slate and build from the ground up by adding different layers to create an engaging and interesting composition. Look for spaces that aren't cluttered and can use some visual interest.

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The key to the overall look is how to pull the accessories together to create an aesthetically pleasing result. Keep it simple by making sure that large items are balanced by other large items. Try to add interest and vary the design by keeping some books leaning away from the centre of each shelf compartment, which leaves room for decorative items in the middle. The key to the overall look is how to pull the accessories together to create an aesthetically pleasing result, yet not add too much so it looks cluttered and not add too little so it appears bare.

You can also arrange your books by colours in a rainbow hue that spice up the room. Colour coding your books adds order to a shelf that is jam-packed with hardbacks and paperbacks. 
 
Use bookcases as decorating tools by focusing on the theme of your books. If you have a large number of beautifully bound older books, place these books together to create dramatic interest. Shelving books according to their height can add a pleasing order on the bookshelves and compliment your décor. Create interest with the bookcases themselves by using a floor-to-ceiling bookcase or shelf to add drama to any room, regardless of the books it houses.
 
Hardcover books look much better and more decorative without the dust jacket. The bindings are usually printed with a nice script, and the colours give the book more of a classic look.

Books are great for elevating a family photo or a short collection item. Varying heights create more visual interest, and the combination of books, pictures, and candles or a lamp is always a great vignette.

No matter your budget, a well-styled bookcase can be achieved using random accessories from around your home, discount store finds, collectibles, and do-it-yourself creations. Remember that you'll want to read the books from time to time, so make sure they are easily accessible.

What to expect from a Mortgage Broker

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Do you know that over 30% of Canadians now source their home loans through a mortgage broker? Why? Because it can save time and possibly money.

A mortgage broker act as an intermediary between lenders and customers who are looking to finance their home. One visit to a reputable mortgage broker will make the process much easier and could save you thousands of dollars. They look after you through the entire home loan process by providing information and documentation advice, sourcing suitable home loan choices, and submitting applications.

Brokers have access to information for all kinds of loans from banks. They don’t work for the bank and can give you the most cost-saving deal that they can find in the market. Brokers are expected to be transparent and take care of your best interests.

Here are a few advantages of using a professional mortgage broker:

Access to a wider range of productsA mortgage broker has relationships with several financial institutions that are competing to get your mortgage business. These institutions continuously compete with rate, product and service promotions, hoping to win your business. Working with a mortgage broker will provide you with access to some of the best deals and most innovative mortgage products you can obtain on the mortgage market.

Help you get the best deal possible Mortgage brokers shop the market for the best mortgage rate for you. They usually have access to so-called "wholesale" mortgage rates, which are significantly lower than the posted rates offered by the banks. In most cases, your mortgage broker has the ability to find the best rate on the market and still place your mortgage with the lender or bank of your choice.

Fewer complicationsThe many forms and other data that are required for a loan application can be quite complicated, A seasoned mortgage professional will have years of experience that will help him or her navigate the tricky loan application and avoid complications for you.

Save you timeThe most valuable of all commodities, a broker can save you time and has the experience to make sure you get the best package for your individual needs.

Mortgage broker services are freeMortgage brokers are usually paid for by the lending institution where the mortgage is placed through a so-called "finder's fee". In other words, mortgage broker services are free to you. There are cases, however, where institutions do not pay a finder's fee to the broker, in which case the broker will charge the client directly.

Home Inventory Remains Low in June

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KITCHENER-WATERLOO, ON (July 4, 2019) ––658 residential properties sold through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in June, representing an increase of 8.8 per cent compared to the same month last year.    

Home sales in June included 404 detached (up 8.9 per cent), and 50 condominium apartments (down 28.6 per cent). Sales also included 159 townhouses (up 27.2 per cent) and 45 semi-detached homes (up 15.4 per cent). 

“Home sales continued their strong momentum from last month,” says Brian Santos, KWAR President. “On a year-to-date basis we’re seeing sales have increased slightly over last year’s mid-year mark.”

A total of 3,154 homes have sold in Kitchener-Waterloo and area during the first half of this year, an increase of 1.4 per cent compared to 2018.

The average sale price of all residential properties sold in June increased by 8.9 per cent to $533,619 compared to June 2018. Detached homes sold for an average price of $618,186 an increase of 7.9 per cent compared to June of last year. During this same period, the average sale price for an apartment style condominium was $332,716 for an increase of 4.4 per cent. Townhomes and semis sold for an average of $411,126 (up 10.7 per cent) and $430,427 (up 9.9 per cent) respectively.

The median price of all residential properties sold last month increased 9.9 per cent to $494,500, and the median price of a detached home during the same period increased by 11.7 per cent to $581,500

REALTORS® listed 888 residential properties in K-W and area last month, an increase of 4.3 per cent compared to June of 2018, and a slight increase of 0.5 per cent in comparison to the previous ten-year average for the month of June. The total number of homes available for sale in active status at the end of June totalled 890, a decrease of 10.8 per cent compared to June of last year, and well below the previous ten-year average of 1,581 listings for June. Months Supply of Homes for sale stood at 1.8 months in June, which is 14.3 percent lower than the same period last year.  

“We’re still in a solid seller’s market situation heading into the summer months,” says Santos. “While more new listings are coming onto the market, strong buying demand is keeping supply tight.”