Government Initiatives to Assist Homebuyers and Homeowners

Programs for first-time home buyers:

• First-Time Home Buyer Incentive (FTHBI): Provides a shared equity mortgage with theh Government of Canada to help first-time home buyers lower their monthly mortgage payments without increasing their down payment.
• First-Time Home Buyers’ Tax Credit (HBTC): Budget 2022 proposed increasing the amount used to calculate the First-Time Home Buyers’ Tax Credit to $10,000 (from $5,000), which would provide a tax credit of up to $1,500 to eligible home buyers. This amendment applies to the 2022 and subsequent taxation years.
• Home Buyers’ Plan (HBP): Allows eligible home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to put towards the down payment of their first home.
• Tax-Free First Home Savings Account (FHSA): Designed to give first-time home buyers the ability to save $40,000 on a tax-free basis with an annual contribution limit of $8,000. The government is working with financial institutions to have the infrastructure in place for individuals to be able to open an FHSA and start contributing at some point in 2023.

Upgrade/renovation programs:

• Multigenerational Home Renovation Tax Credit: A refundable credit that allows families to claim up to $7,500 to build a secondary unit in their home to accommodate seniors or adults living with disabilities. Any expenditures to be claimed should be incurred after January 1, 2023.
• Home accessibility tax credit (HATC): A non-refundable credit that helps support seniors and individuals living with a disability with a rebate on mobility renovations for their home for up to $10,000 in qualifying expense.
• GST/HST new housing rebate: Offers a rebate on the GST or the HST for new homes. The rebate is available to home buyers who purchase a new-build home, preconstruction, or who make substantial renovations to an existing home.

Energy efficiency programs:

• Canada Greener Homes Grant: Helps homeowners save money and lower their footprint while creating new jobs across Canada for energy advisors.
• Greener Homes Loan: Helps Canadians make their homes more energy-efficient, by offering interest-free financing in addition to the Canada Greener Homes Grant to help you complete major retrofits recommended by your energy advisor.
• Oil to Heat Pump Affordability Program: Helps Canadians who heat their home by oil switch to new, energy efficient heat pumps.
• Energy Savings Rebate Program: Energy Savings Rebate program makes energy-efficient products more accessible to people across Ontario.  

Tips for Buyers Attending Open Houses

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 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.

Bedroom Makeover with Feng Shui

Feng shui is an ancient and wise approach to the way our environment affects us. The way we feel and the way we act is influenced in large part by the environment that surrounds us. Therefore, by learning how to properly organize what surrounds us, we can improve our lives, and this is what feng shui is all about.

Feng Shui literally means “the way of wind and water”. It is a way of manipulating the universal life force known as chi so that it flows unobstructed within our bodies, homes, and workplaces.

Use these feng shui tips to arrange a safe haven in your bedroom.

1- Remove the TV, computer, exercise equipment, and any other work-related materials. The bedroom is a place for sleeping, relaxing, and sexual healing and should not be cluttered with other items that destroy the good feng shui energy in your bedroom.

2- The bed should be the biggest piece of furniture in the bedroom. It should be easily approachable from both sides to balance the flow of energy. It must have two bedside tables (one on each side), and a solid headboard. Choose the mattress wisely and invest in the one that will promote the best sleep and relaxation.

To allow for a balanced feng shui energy flow under the bed, you need to have your bed at a reasonable height above the floor level. Beds that have built-in storage drawers underneath are considered bad feng shui beds because the energy needs to circulate around your body when you sleep, which is not possible if the space underneath the bed is blocked.

3- In addition to a good headboard, you always want to have a solid wall behind your bed. When you sleep under a window, your personal energy tends to get weaker in time, as it has neither proper support nor protection. You also need to make sure that the bed is not placed in line with the doors.
4- Make sure there are no heavy or sharp items hanging over your bed. Do not hang a ceiling fan, chandelier, or chimes above your head as this is also considered bad feng shui.
5- Use soft colours to achieve a good feng shui balance in your bedroom. The best colours for the bedroom are the "skin tones", pale-white to rich chocolate brown tones. Avoid rich water (blue) colours.
6- Soft, dim lights are the best for bedrooms. Use a dimmer switch to adjust the level of light in the bedroom. Candles are the best feng shui bedroom lighting, but be sure it does not emit toxin fumes or pose a risk of fire.
7- Keep all the bedroom doors closed at night. This will allow for the best and most nourishing flow of energy to strengthen your health, as well as the health of your relationship.
8- Do not have mirrors reflecting or behind your bed. Mirrors bring the energy of the feng shui element of water, and a strong feng shui water element in the bedroom attracts the energy of sorrow, and can weaken your energy when you sleep. Try to reposition the mirror or cover it with a nice fabric.
9- Open the windows often to keep the air fresh and full of oxygen. You cannot have good feng shui in your bedroom if the air you breathe in is stale and full of pollutants.

10- Plants in the bedroom are not good feng shui unless your bedroom is fairly large and the plants are located far from the bed.
A comfortable bedroom is one that promotes a harmonious flow of nourishing and sensual energy which excites and calms you at the same time. Creating a balanced and comfortable bedroom is one of the most important things you can do in your home.

Facts "tell", Pictures "sell"

Since many buyers are turning to the internet to shop before they take a drive around neighbourhoods, photography can make a difference in selling your home quickly.
 
A picture says a thousand words, and with the right listing pictures, you can attract more people to your property by showing your home’s highlights. Below are tips on how you can take the best quality pictures of your property to showcase it properly. 

While I provide all of my clients with professional photography, here are some tips for the do-it-yourselfers!

 
Clean the entire house before taking photos.
Never take photographs of a dirty home. Remove all trash cans from all rooms being photographed. Tidy up any clutter and remove personal photos and drawings from refrigerators and bulletin boards.
 
Think about the picture before you take it. 
What are you trying to show in the photo?  Do you want to move or remove anything before you take it?
 
Highlight the best features of your home. 
Do your rooms have spectacular views? You can take pictures of your rooms to show off their views. Let the potential purchaser imagine themselves standing in the room with the view. They will appreciate the picture more knowing where they will be able to enjoy the view when they purchase the home.
 
A general photography rule of thumb is the closer the subject, the better the photo.  However, it may be useful to take a few steps back or use a wide-angle lens to give the viewer more context and makes your home seem more spacious.
 
Take a shot of every part of the house including living room, kitchen, dining room, and other key areas of your home.
 
Pay attention to lighting. 
Lighting is the key to good photography, you must choose the optimum time of the day for the shot typically when the sun is behind you. If the front of the house faces east, the morning is the best time. If the front faces west you want to take your pictures in the late afternoon.
A good general time of the day is around noon or early afternoon on a sunny day for most exterior pictures since the sun is overhead and there are few shadows.  If it is overcast you can set your camera to a lower shutter speed to absorb more light and create a brighter image.

The light source also affects colour. When the sun is lower in the sky, either in the morning or in the late afternoon, you get more intense colour. This time of day makes the sky pop blue and the house shows off its best colour. High noon overhead sunlight tends to wash out colour.

Cloudy and overcast days can often provide surprisingly wonderful diffused light that can bring out great colour, although shots like this lack the bright blue sky in the background.

For dramatic evening photography, turn on all the house lights, and take the picture after sunset but before it is totally dark.  You will see light coming out of the windows, however, there will be enough exterior light to capture the details of the house. 

For an interior room photography, avoid mid-day, on sunny days the light coming in the windows will be too bright. The best times are after daybreak and just before sunset.  Use a powerful flash or turn on all the lights.

Take many shots. 
If you are using a digital camera, you can take multiple shots of the same room and then pick which one looks best. You can try different angles and pick the winning view of the room.

You can touch up your pictures on your computer software including brightening up a darker picture. After you have a look at your pictures, you will have a better idea of how to improve them. Some indoor pictures can look too warm due to the lighting. You can always reduce certain colours with your photo editing software to make it look more natural.

Consider hiring a professional real estate photographer.  
Many real estate agents and homeowners simply do not have the time, equipment, or skills necessary to take good photographs of a home or building they are listing for sale. Professional photography is provided by many brokerages as an optional service and the price is extremely reasonable.

Photos of your home are the first introduction of your new listing to the world. This is the visual element that captures the imagination of buyers and sends them running to contact you for a first look.

5 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.

Home Prices Increase Month-Over-Month

WATERLOO REGION, ON (May 4, 2023) — Sales volume through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR) remained subdued last month, with 670 homes sold in April, representing a decrease of 22.0 per cent compared to April 2022 and 18.0 percent below the previous 5-year average for the month.

“The local spring market is off to a slower than usual start with half the number of new listings hitting the market than this time last year,” says Megan Bell, president of WRAR. “However, with demand continuing to outstrip supply, we saw prices increase on a month-over-month basis as total sales volume continues to waver well below historical figures for the month of April.”

Total residential sales in April included 404 detached (down 22.8 per cent from April 2022), and 119 townhouses (down 20.7 per cent). Sales also included 95 condominium units (down 18.1 per cent) and 51 semi-detached homes (down 25.0 per cent).

In April, the average sale price for all residential properties in Waterloo Region was $797,716. This represents an 11.9 per cent decrease compared to April 2022 and a 2.6 per cent increase compared to March 2023.

• The average price of a detached home was $925,219. This represents a 10.7 per cent decrease from April 2022 and an increase of 1.7 per cent compared to March 2023.
• The average sale price for a townhouse was $664,519. This represents a 12.7 per cent decrease from April 2022 and an increase of 3.9 per cent compared to March 2023.
• The average sale price for an apartment-style condominium was $488,971. This represents a decrease of 18.3 per cent from April 2022 and an increase of 1.5 per cent compared to March 2023.
• The average sale price for a semi was $686,792. This represents a decrease of 10.1 per cent compared to April 2022 and a decrease of 1.9 per cent compared to March 2023.
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“Waterloo Region remains a sellers’ market, and while prices have fallen in comparison to last year, we anticipate that home prices will continue to increase steadily,” says Bell. “Some stability in mortgage rates has brought about a return of buyer activity as we begin to observe a return of multiple offer scenarios, bidding wars, and a decrease in the number of days properties take to sell.”

There were 869 new listings added to the MLS® System in Waterloo Region last month, a decrease of 49.4 per cent compared to April of last year and a 33.2 per cent decrease compared to the previous ten-year average for April.

The total number of homes available for sale in active status at the end of April was 703, a decrease of 25.9 per cent compared to April of last year and 49.7 per cent below the previous ten-year average of 1397 listings for April.

The number of months of inventory is up 8.3 per cent compared to April of last year, but still historically low at 1.3 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in April was 16, compared to 9 days in April 2022. The previous 5-year average is 16 days.