Tips for Waterloo Region First-Time Home Buyers

The pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking over your shoulder. You are able to make home improvements knowing that any appreciation that results will be to your benefit. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Home ownership is the cornerstone of financial independence and security. It may seem a daunting prospect to younger people or first-time buyers, but it is achievable.

Like many would-be homeowners, you may be wondering how you can possibly afford to buy your first home. Even if you think you can’t afford a home, these saving tips and financing strategies can take you there sooner than you think and turn you from a renter into an owner.

Develop a culture of saving
The first priority for you should be to develop 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.

Start an automatic savings plan
Saving for a down payment can be a financial challenge, but it’s a step forward to owning your dream home. 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 yourself
The federal government’s Home Buyer’s Plan (HBP) lets you borrow from your Registered Retirement Savings Plan (RRSP) to help purchase your first home. You and your partner can each withdraw up to $20,000, provided it’s not locked-in and the money has been in the RRSP for at least 90 days.  You have to repay the loan in installments over the next 15 years to avoid a tax hit. 
 
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 are 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 instalments. 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. Just be careful not to buy a property 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 to 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.

Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labour-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account. So consider whether you're ready for the expense and effort of homeownership before committing.

Top 10 Tips for Staging Your Home For Sale in Kitchener -Waterloo

Home Staging is a proven system for preparing properties for sale. You aim 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.

In preparing your house for sale, you need to take a step back and have the mindset that this is no longer your home but your investment. You want your home to stand out from the crowd and have a broad buyer appeal. Following these 10 tips will help you sell your house sooner and possibly for more money.

1. Curb Appeal – stand back and view your home as if you were seeing it for the first time. This is the ‘first impression’ stage. Depending on the season, you may want to have pots of colourful and attractive flowers to greet buyers; a clean and inviting doormat; new and shiny door handles and/or knockers with a freshly painted door.

2. Declutter – start your pre-pack as soon as possible. You need to decide what you are going to keep, give away, sell or throw away. You may rent storage lockers so you can start to clear out what is not going to make the house look good.

3. Clean – you would think this one is common sense, but let me assure you, I wish it was so! A clean home translates into “They must have really cared for their home.” Use environmentally friendly cleaners where you can, and for hard-cleaning areas, TSP is a good product. Bathrooms and kitchens must be sparkling clean at the very least.

4. Depersonalize – we know you love your family photos and your personal treasures, and for living, they are perfect. However, when it comes to selling your home, you want buyers to focus on the best features of the house and not your personal collection. Pack personal items and photos carefully and store them away so you can showcase them in your new home.

5. A neutral colour scheme is the way to go for selling. Choose only three colours or less to paint your house for selling. If you have an open floor plan, then paint the main floor all the same colour. Bedrooms look good in light sage greens or warm blues like the new aqua.

6. Highlight your home’s best architectural features – place your furniture in each room so that you have very obvious focal points that show off the home’s best selling features. For example, if you have a beautiful fireplace, then place the furniture in a parallel grouping so that the eye is drawn to the fireplace.

7. Decide on the function in each room – if you were using your guest bedroom as your den for living, for selling, turn it back into a bedroom with bedroom furniture in it. If you do not have the right furniture for each room, consider renting it. There are more and more rental furnishing companies opening up every day. If you don’t want to rent, then borrow.

8. Lighting your home to its best advantage – spend money on new light fixtures in brushed nickel or stainless steel. Brass is out, so don’t fight it. There are many low-cost lighting stores to select from, so no excuses for having dated light fixtures.

9. Use window treatments that sell your home – the most popular on the market are the 2” faux woods in a white tone to go with your trim. Decorative side panels will do the trick if you need to add warmth and colour.

10. Flooring needs special attention and is a good investment for updating the look of your home – tile or linoleum is great for entranceways, bathrooms, kitchens, laundry rooms; a good quality laminate or hardwood is perfect for living rooms and family rooms; bedrooms are attractive in a neutral carpet.

By planning and budgeting, you can get yourself to the “OPEN HOUSE READY” stage. Remember that over 79% of prospective buyers have already checked you out through the MLS listings. Will they like what they see?

Happy Selling!

Basement Waterproofing Technologies in Kitchener, Waterloo and Cambridge

Basement leakage is the most common problem found in houses, and over 90% of all basements will leak and suffer damage at one time or another. Some evidence of moisture penetration can be found in almost every house. A house with water problems does not necessarily mean it was poorly constructed. Water can appear in even the best-built home.

Moisture problems can be intermittent. In some houses, water penetration will occur after virtually every rainfall. In other houses, it will occur only after periods of prolonged rain. In most cases, however, the resultant damage does not indicate frequency.

Not all basement leakage problems are solvable, but the majority of leakage problems can be solved by directing surface water away from the building around the foundation or/and using downspout extensions to force rainwater to flow away from the house.

Warning signs of water leakage:

• Mold and mildew: Fungus that grows in damp and dark areas and causes discoloration or musty odors.
• Musty odors: This could be the result of the decay process from mold and dry rot.
• Peeling paint
• Damp spots on walls: Water has absorbed through your walls.
• White substance on basement walls: This is a chemical breakdown of the bonding agent that holds your walls together. The white substance is a sign of possible structural deterioration.
• Cracked walls: Should be inspected to determine the exact cause.
• Rust on appliances, furniture or furnaces.
• Dry rot: Black fungus grows mostly on walls or wooden surfaces, causing wood to decay.

Why is waterproofing important?
A wet basement can dramatically reduce the value of your home. Studies show that most people won't even consider buying a home with water leakage. Selling a home with water leaks can easily result in as much as a 25% reduction in the sale price.

Even if you rarely have problems with dampness or flooding, it's best to solve the problem completely before doing any remodeling work. Permanent solutions can take time to implement. A good place to start is to talk to an independent home inspector who specializes in waterproofing problems.

Damp proofing or waterproofing on walls?
There is a big difference between damp proofing and waterproofing. By definition, damp proofing can retard moisture but, unlike waterproofing, it does not stop hydrostatic water pressure.

To damp-proof, you apply a coat of tar-based material to the outside walls. Tar damp proofing is inexpensive and meets the lowest minimum standard.

Damp-proofing may be acceptable if there is sandy soil and great drainage. But often, there is a high water table or poor soil. Clay holds rainwater, which builds up hydrostatic pressure against the foundation. Moreover, water cannot drain through the undisturbed soil under the footings and the groundwater level rises.

Complete waterproofing is ideal
Good waterproofing is a wise investment. It is not just a coating but a whole system that includes:

1- Redirects water away from the foundation
Different exterior waterproofing barriers vary in effectiveness at protecting exterior walls. But wall anti-leaking barriers do not affect water penetration due to water accumulation at the footer or floor level. The ideal solution is to direct accumulated water away from the foundation and into drainage or pumping systems.

2- Install an interior drainage system
To control leakage in the basement, you may want to install a drainage system on the inner side of the foundation. The floor is broken up along the perimeter of the basement wall, and drain tile is placed in a trench that carries the water to a discharge point or sump pump, which takes the water away from the house.

3- Apply waterproofing compounds to the walls
With mild or occasional capillary seepage, capillary waterproofing materials can be applied to either exterior or interior wall and floor surfaces. If properly applied, they will penetrate several inches into concrete and close off minor cracks by forming crystals in the presence of water. You should carefully read the product label to determine if the product's waterproofing limitations are sufficient to fix the problem. Waterproofing paint is most effective if applied directly over cement and not to existing painted walls.

Tips for Surviving a Home Renovation in Waterloo Region

Home renovation can be exciting, but they are often stressful, especially if you have to stay at home while the work is being done. With careful planning, it is possible to survive major renovations. Even though your daily routines may be derailed, you can minimize the inconvenience and give yourself room to collect your thoughts even amid a storm of drywall dust, flying wood chips, and noxious odors. The tips offered below can help you anticipate the problems that can arise with almost any remodeling project. Use this knowledge to short-circuit the stresses that are a natural part of changes to your home.

Prepare the house. Move anything you don’t want damaged (art, furniture, and electronics) into a part of the house not being worked on—or move it into temporary storage. Store your clothing in plastic garment bags, and protect floors with heavy-duty cardboard or construction paper taped at the edges. Most important, make sure you completely seal off work areas with industrial plastic sheeting.

Plan for everyday life. Your house may be in disorder, but you'll still want hot meals, a snug bed, a refreshing shower, and clean clothes. Seek safe harbor away from the confusion by staying at a motel, taking refuge with a kind relative, or even moving into a travel trailer or recreational vehicle. But don't go so far away from home that you lose touch with the project.

If you must live at home during remodeling, rearrange rooms before work begins. To prepare for a kitchen makeover, move your microwave and refrigerator to a place where they can still be used. If the water will be turned off for long periods of time, order bottled water and scout out a place for showers. A bedroom may even become a combination living room/kitchen for a while.

Plan for waste removal. There's no way to avoid a mess when remodeling. But the tide of rubble, trash, and dust can be contained. Before the swing of the first hammer, work out waste logistics with your contractor. Hang tarps in doorways to seal off rooms where remodeling is underway. Establish a plan for handling waste materials so they will be routed away from sensitive areas, such as gardens or porches, and hauled away on a regular basis.

Prepare for the unexpected. Keep the lines of communication open and stick to your plans as much as possible. Small project changes often lead to unexpected service charges. Have a contingency budget of 10 to 20 percent of the total project budget. Any contractor will confirm that you never really know what you are dealing with until you cut into the walls. This is when you may find rusted pipes that need to be replaced, horrific electrical systems, insulation issues, or mold. A contingency for these types of things makes such discoveries a bit more bearable.

Keep your sense of humour. Surprises will happen during renovation. Things will get dirty, noisy, and it may take longer to complete than you anticipated. Communicate with your contractor and try resolving these challenges calmly and with an open mind.