How to Maintain Good Credit

In today’s society, credit is our gateway to purchasing big-ticket 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 good credit?
 
Establish chequing and savings bank accounts

This 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 keep 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.

Are Condos Family Friendly?

When looking to buy a new home for their families, most people don’t automatically think purchasing a condominium is a viable option for them.  Part of the reason for this thinking is the widely held misconception that a condo lifestyle is primarily for young couples, seniors, and singles.  It is a North American myth that families need big houses to thrive and that children need a lot of space to develop well. None of this is supported by research evidence.

Paradoxically, detached houses have become bigger and bigger at a time when they have become emptier and emptier. Families have fewer children and, in a majority of Canadian families, both parents work and during the day most children are in school.

Families that live in large houses actually have less time together because each family member spends most time alone in his or her room. Nowadays, kids have a cell phone, television, computer, Internet, and a game system in their own bedrooms—and this is where they spend most of their time. In large houses, some parents now have to phone or text their children to get them to come down to eat.

Many families may look at high-rise complexes and multi-units and think that they are not suited for family lifestyles. The truth is that condominiums are a feasible option for anyone who wants to own property. In fact, many condos may provide more, not fewer, opportunities for children, including:

Sociability. Children living in a condo, especially in a high rise, meet people on a daily basis in corridors, elevators, lobby, and parking. They can learn to interact with others, and how to be polite or considerate. They may become less shy and more sociable.

Diversity. Condos generally have a diverse population, especially in large cities, so that children are more likely to meet people from all ages and various backgrounds.

Peers. There are typically several other children around in the same building. This situation can help them make new friends.

Physical Activity. Many condos have a pool so that children can have fun while exercising. As well, many condos are located near a playground or green space.

Living in a condo may also offer many advantages for parents with small children, such as:

Easier Supervision. It may be easier to supervise children’s social activities in a condo because it is a fairly self-contained vertical neighbourhood or a townhouse area that is quite compact. It’s easier for parents to keep track of their children’s whereabouts.

Sociability. Mothers at home with small children will likely meet other mothers in the same situation. In some condos, enterprising mothers exchange services and babysitting, arrange meetings or go to a nearby park together.

Car Pooling. Car pooling for schools can more easily be arranged once parents know each other.

Similarly, condos are ideal when a mature couple or person wants to help aging parents where adult children may buy a suite for their parents in their building, or in an adjacent building.

A condo home is like a home anywhere else: location counts. Parents or would-be parents should look into the surrounding neighbourhood just as people do when they buy a detached home. Some areas are better than others and the same can be said about schools. It is recommended that you visit the neighbourhood school to make sure that your children can attend it. It's not always the case in some areas that have seen a lot of recent development.

Condo living does not mean that parental supervision is not necessary. For instance, small children should never be left alone on a balcony or terrace on floors above ground level. They could climb and fall. Neither should children be left alone in elevators. Unless a building has cameras in the elevators, children below the age of 14 should probably always be accompanied by another person. Underground parking areas are not a safe place for a child alone.

In other words, parents have to exercise the same caution and vigilance over their children that they would in other living environments. They only need to adapt their vigilance to the type of condo they live in.

We are seeing a great deal more in the way of multi-family developments in both established and newer communities that offer close proximity to schools, libraries, pools, and arenas, amenities that are obviously priorities for young families.

Home builders are also taking into consideration some of the more obvious requirements like more bathrooms, and bedrooms, and have grown more cognisant of the little things that families appreciate, like sound attenuation, extra phone jacks, and cable outlets. With many of those important details now being looked after by builders and developers, families don’t have to worry about it and can instead focus on what type of condominium development would best work for them.  Most tend to lean towards a townhouse style, with many units now offering sizes and plans similar to single-family homes.

Home Upgrades that Pay Off

When it comes to preparing your home for sale, some home sellers make it their objective to get the most return on their homes. Before starting any home improvement, you should evaluate the return on investment (ROI). Ask yourself what renovations will boost the resale value of the house.

Here are a few renovation ideas that pay off.

1. Floors
Replacing dated, scuffed floors can give your house a new sheen and make small spaces seem larger. Flooring can generate a payback as high as 75% on investment.  If you have carpet in the family, dining, and living rooms, it is recommended to change to hardwood and/or tiles. Not only will it make your home more elegant, but you will also enjoy the benefits of a healthier indoor environment, with fewer allergens.

According to the Appraisal Institute of Canada, the ROI on floor upgrades ranges from 50% to 75%. That means if you spend $5,000 redoing your floors, you can expect to recoup anywhere from $2,500 to $3,800 of your costs. If you’re a handy person, you can save yourself a few hundred dollars by installing the floors yourself.

2. Interior and exterior paint
Painting is an inexpensive and very profitable renovation project. Rolling on a new interior or exterior paint colour can generate a 50% to 100% return on investment. If you are planning on selling your house, choose neutral shades over trendy colours that may not appeal to all buyers.

3. Kitchen
Instead of spending a bundle gutting this essential room, think smaller. Counters, sinks, plumbing and lighting fixtures, and appliances can change their look and cost far less than a major renovation. From an investment standpoint, the kitchen may be the best place to sink your money: Kitchen facelifts pay back about 80% of their cost.

Granite is the standard high-end finish for kitchen counters, but high-end synthetic stone materials look just as good, wear better, and cost about the same. Installing a granite or solid-surface counter, along with a stainless-steel sink and faucet, will probably run $5,000 to $8,000.

Your contractor might suggest that, while you’re replacing the counter, get a new backsplash, too. Save your money, as backsplashes don’t get the wear and tear counters do and can add $2,000 or more to the cost of your modest upgrade.

3. Bathrooms
You can expect to recapture about 75% of the cost of a minor bathroom remodel. Most bathtubs already have showers built-in, so the plumbing infrastructure is likely there. Replace a dated, rarely-used tub with a spacious shower and multiple showerheads. Similarly, adding a decent-sized shower to a half-bath makes it a whole bath — and much more marketable.

You can purchase a big “rainfall” showerhead for about $200, or spring for a fancier handheld showerhead and other gadgets for $500 and up. Don’t bother building a niche into the shower wall to hold shampoo bottles and such (typical cost: about $300).

4. Closets
Large and organized closets are a big draw for prospective buyers, though it’s impossible to put an exact payback percentage on them. Fitting a walk-in master closet with drawers, shelves, shoe racks, hooks, and poles can cost $500 to $2,500 or more, depending on the quality of the materials and the complexity of the design. Wood is the most expensive material, but typically delivers the best return on investment.

This is a job where it’s easy to overspend. So decide exactly what you want and need before you either buy the supplies or bring in a professional closet organizer, who will charge $50 to $150 an hour. Make sure you square reality with the many options: Will you really sort your socks into separate drawer dividers?

5. Energy Upgrades
Real estate agents say energy-saving amenities make a house more attractive to buyers. New windows, for example, return 77% of the project cost, according to Remodeling Cost vs. Value Report. But there’s another good reason to upgrade now; you can, in some cases, let the government help shoulder the cost of projects to make your house more energy-efficient and more attractive to prospective buyers.

You may need to wait years to recoup some energy conservation moves. So if you’re more worried about money than your carbon footprint, run the numbers to ensure you’ll be there by the time the cost gets covered. When you’re ready to sell, spell out your energy improvements for prospective buyers. Create a worksheet showing what you spent, plus the before-and-after utility bills.

Remember to keep receipts and careful records for all your energy-saving expenses. This will keep you square with the Canada Revenue Agency and let you prove to potential buyers that you have lowered their future energy bills.

Tips for Attending Open Houses

With things returning to "normal", open houses are once again becoming a popular way to expose a homes for sale to buyers.

Open houses can be of great help for buyers to see what is available for sale in a particular neighbourhood and compare prices 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 with 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 of 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 records 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 the 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.

Home Buyers Demand Returns to More Typical Levels

Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase.

Despite slower sales, market conditions remained tight enough to support higher selling prices compared to last year. However, there is evidence of buyers responding to increased choice in the marketplace, with the average and benchmark prices dipping month-over-month.

Ontario - Market Conditions Remained Tight

Toronto, 03 May 2022 -- The Greater Toronto Area (GTA) housing market continued its adjustment to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

“Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase. Moving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth and related government revenues as we continue to recover from and pay for pandemic-related programs,” said TRREB President Kevin Crigger.

GTA REALTORS® reported 8,008 homes sold through TRREB’s MLS® System in April 2022 – a 41.2% decrease compared to April 2021 and a 27% decrease compared to March 2022. On a year-over-year basis, the decline in sales was greater in the ‘905’ area code regions surrounding Toronto, particularly for detached houses. The MLS® Home Price Index Composite Benchmark was up by 30.6% year-over-year in April 2022. The benchmark level in April was down in comparison to the March level. The average selling price, at $1,254,436, was up by 15% compared to April 2021, but down compared to the average selling price of $1,300,082 in March 2022.

“Despite slower sales, market conditions remained tight enough to support higher selling prices compared to last year. However, in line with TRREB’s forecast, there is evidence of buyers responding to increased choice in the marketplace, with the average and benchmark prices dipping month-over-month. It is anticipated that there will be enough competition between buyers to support continued price growth relative to 2021, but the annual pace of growth will moderate in the coming months,” said TRREB Chief Market Analyst Jason Mercer.

MORE LISTINGS, SLOWER HOME SALES IN APRIL MONTHLY PRICE GAINS EASE FOR THE SECOND STRAIGHT MONTH

 KITCHENER-WATERLOO, ON (May 4, 2022) —The 633 residential homes sold through the Multiple Listing Service® System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in April 2022 is a decrease of 25.0 per cent compared to April 2021. On a month-over-month basis, sales in April were down 13.4 per cent compared to March 2022. The previous ten-year average number of residential sales for April is 608 (650 if not including April 2020 when home sales came to a short-term pause due to the beginning of the Covid-19 pandemic). 

“Last month introduced a small measure of relief to the market,” said Megan Bell, President of KWAR. “While the number of sales remains strong, and sale prices continue to turn out robust annual gains, we’re seeing fewer multiple offers and more conditions on offers making their way back into the market.” 

Total residential sales in April included 361 detached (down 25.4 per cent from Ahpril 2021), and 107 condominium units (down 2.7 per cent). Sales also included 48 semi-detached homes (down 29.4 per cent) and 117 townhouses (down 35.7 per cent).