Choosing the Right Neighbourhood When Buying a Home

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Whether buying or renting, you should be choosy about the neighbourhood you move into. And if you have a family, there are even more factors to consider. So before you move, research your options; get to know the area, spend some time on its streets, in its cafes and walk along its sidewalks. Just like any relationship, feel it out before you move just to make sure it's a good fit.

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 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 into the neighbourhood and the 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 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 a good place to get an idea about 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 it's 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 about after you have bought the home.

Is an Open House Worth the Effort?

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Open houses require a lot of preparation and are inconvenient to the home occupants and the selling agent. Many agents now refuse to hold open houses, considering them a waste of time and a security threat. And many sellers prefer to open their doors to serious buyers only.

Holding an open house might help you sell your home, but it is not the most important factor to consider. An open house is usually not the major marketing tool that agents rely on when they are trying to sell a property.

Many real estate agents believe that open houses serve more to attract semi-interested prospects rather than serious buyers. Agents admit that few sales traditionally come from open houses. As well, the Internet is also making open houses even less valuable.

But there are agents and homeowners who view open houses as an effective marketing tool that does help with sales.

So is an open house worth the effort?

There are times when an open house is not practical at all, such as if a house is off the beaten path, or in a gated community. Likewise, it might be best to avoid an open house on a shabby listing or one that requires a lot of work. It probably won't get much traffic, and agents will be reluctant to have their name advertised heavily in association with it.

However, an open house can be a valuable opportunity to get feedback about what is and isn’t attractive about a house. But it is not a good idea to hold them too often, as it can send a signal that the house is “market worn” and a tough property to sell.

On the other hand, in a hot seller's market where houses are selling rapidly, there is no need for an open house. If the MLS listing and posting pictures on the internet are already generating enough traffic to help you sell your house an open house is also no longer necessary.

The development of internet listings and other online real estate information is quickly making open houses more of an option, rather than a requirement for selling a home.

Many agents believe that an open house is only worth having if it's done properly and this includes sprucing up the house and its landscaping and advertising it well in advance.

If you’re planning an open house:

• Clean like crazy beforehand, preferably with good-smelling organic cleaners that won’t upset anyone’s allergies.
• Clear out the clutter, pets, toys and even extra cars from the garage.
• Drawback the drapes, clean the windows and remove the screens so the most light shines in.
• Mow the lawn, trim the hedges and put some blooming flowers in pots by the doorway.

To increase traffic, try some unusual marketing strategies, like holding your open house during rush hour, or coordinating your open house with others in the neighbourhood.

Tips for Building a Garden Fence

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A garden fence is probably the most important element of garden design. The more the fence looks attractive and welcoming the more you and your guests will feel comfortable. In some ways, a garden will appear incomplete without a fence. A garden fence not only adds to the overall beauty of the garden but also gives the entire landscape a more complete look. A fence can be erected around the front yard, backyard or around the entirety of the property. Adequate fencing adds to the security of your house and property as well.

DesignFencing design is as much about location and configuration as it is height and detailing.  There are many options for your garden fence design, including designs that are minimalist, vintage, Victorian, country, etc.

Fencing can be a strong design element or it can be made to disappear into the background of the landscape. For those who prefer the touch of classic, the Victorian-style using iron fence elements is a good idea. An iron fence is the preferred option if you have a large yard outside the boundaries of your property to deepen the glamorous sense. This kind of fence design should be complemented with details like lacy or floral as the representation of the Victorian style. Don’t forget to put any ornamental plants or bushes near the fence to add to its beauty. For a country design, you may try to design or make the fence from rattan, bamboo, or simply wood. Painting the fence with your favorite colours such as white, cream or rustic brown is good for a country-style design.

When selecting fencing design, you should also take into consideration the average cost of popular fence types which include wood, vinyl, wrought iron and chain link.

Materials
There are many options in fencing materials. Much of this is due to the rising cost of lumber and the drive to create non-wood alternatives that are longer lasting. In fact, this innovative area has yielded some truly remarkable options, particularly where the climate is severe. Vinyl has finally come of age, offering a far greater range of colour and style than ever before. Wrought iron, now tubular and much lighter weight, is far more affordable and easily adapted to a wide range of sites.

Innovation and security
Today there is more emphasis on security and technology. Video cameras and entry gates with buzzers and intercoms are making homes more secure and offering greater backyard security. Also, recent innovations have yielded new and unusual designs that prove equally effective as very tall barriers. For historic or cottage style living, the picket fence has become totally maintenance-free. The integration of steel posts has also solved problems with rotting earth to wood anchorage.

No matter what your architectural style, your site requirements and the regional limitations, there are fencing solutions available. It is important to understand the newer options and evaluating whether or not they are an improvement to the traditional wood fence. It is all governed by characteristics of your home site, your budget, the local climate and availability of quality contractors. When all these factors are met, your fence choice will last its full life expectancy and ultimately maximize every dollar you spend.

Property lines and regulations
The property lines of rural properties and even some suburban lots can be murky. It is important to know exactly where the property line runs during the design process and particularly before you finish with the cost estimates. In many cases, it is worth the additional expense of a legal survey before the construction of a fence. It may be just setting the corners of the property, or you may need a full property line survey if the parcel is irregular. Insist on a licensed land surveyor for this job to avoid future boundary disputes. To save money, neighbours may work together to share the cost of the surveyor for mutual property lines, which also ensures both are satisfied with the proposed fence.

It is also important that the fence adheres to the local regulations for residential fence heights. Some cities require you to acquire a building permit if you decide to build a fence taller than six feet. It is always a good idea to research your local laws and regulations before breaking ground on a new fence.

Buyers Struggling as Fewer Homes for Sale Result in Fewer Home Sales in K-W

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“For the third consecutive month sales were down in January,” says Colleen Koehler, President of KWAR.  “Slower January sales are a result of fewer homes being put up for sale. This is causing further price acceleration as we have enough willing and able home buyers contending for those few homes that are available.”

Total residential sales in January included 153 detached homes (down 19 per cent), and 39 condominium units (up 18.2 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 21 semi-detached homes (on par) and 68 freehold townhouses (up 7.9 per cent).

The average sale price of all residential properties sold in January increased 15.7 per cent to $561,029 compared to the same month last year, while detached homes sold for an average price of $670,944 an increase of 18.8 per cent. During this same period, the average sale price for an apartment-style condominium was 382,636 for an increase of 26.1 per cent. Townhomes and semis sold for an average of $439,765 (up 20.3 per cent) and $484,190 (up 18.7 per cent) respectively.

The median price of all residential properties sold in January increased 17.3 per cent to $536,000 and the median price of a detached home during the same period increased 22.6 per cent to $650,000.

“Consumers can’t buy what’s not there. The available number of homes for sale, or lack thereof, continued to evade home buyers in January,” says Koehler. “There is no doubt we would be reporting more sales if we had the inventory to match the demand.”
Koehler notes Kitchener-Waterloo and area continues to be an exceptionally attractive place to buy a home and a creditworthy buyer can negotiate an attractive interest rate with their mortgage lender.

REALTORS® listed 464 residential properties in KW and area last month, a drop of 21.1 per cent compared to January of 2019, and a decrease of 35.4 per cent in comparison to the previous ten-year average for January. The total number of homes available for sale in active status at the end of January was 392, a decrease of 38.7 per cent compared to January of last year, and 63.7 per cent below the previous ten-year average of 1,080 listings for January. The number of Months Supply (also known as absorption rate) in January was just 0.8 months, 38.5 per cent below the same period last year. The previous ten-year average supply of homes for January was 2.32 months, however, in the past 5 years the average supply for January was 1.96 months.

The average days to sell in January was 22 days, compared to 27 days in January 2019.

Historical Sales By Property Type 

Months Supply of Homes for Sale 

Historical Median Sales Price – By Property Type 

Historical Average Sales Price – By Property Type

Historical Sales – By Price Range 

Average Days on Market


KWAR cautions that average sale price information can be useful in establishing long term trends but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. Months Supply is the inventory of homes for sale at the end of a given month, divided by the average monthly closed sales from the last 12 months Those requiring specific information on property values should contact a local REALTOR®. REALTORS® have their fingers on the pulse of the market. They know the questions to ask, the areas to probe and what to look for so that you get a complete picture of the property and community you’re considering.

Is Refinancing Your Mortgage a Good Idea?

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There are times when it makes sense to refinance your mortgage. It is, however, important to have a clear financial objective in mind to be able to choose the most appropriate loan.

Since interest rates are at a 40-year low, switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are penalties for paying your mortgage loan out prior to renewal, however, these could be offset by the extra money you save through a refinance.

What's your goal?Before deciding whether or not to refinance, you need to determine what you want to accomplish. Remember, a refinance doesn't pay off the debt; it just restructures it, often at a lower interest rate and a different loan term than the current mortgage.

1- Reducing the interest expense is the most common goal of a refinance. But some homeowners also appreciate the ability to extend the loan back out to 30 years, reducing the monthly payment.

2- Debt consolidation is another goal of refinancing. If you have both a first mortgage and a home equity mortgage, combining the two mortgages into one fixed-rate mortgage levels out the payment over the loan term.

3- Getting cash from your home. The equity you have in your home can act like a savings account that you could access through a home equity loan or a cash-out refinance. This is usually done when you want to finance an important home improvement, pay for college or pay off high-interest credit card debt. Whatever your reason, this may be the right option for you.

When to refinance?After determining your reasons for refinancing, you need to consider whether the timing and circumstances make this the right time to get a new mortgage.

You may be better off to stay with your current mortgage. For example, if your current mortgage has a high prepayment penalty or if you plan to move from your home in the next few years or when the monthly savings gained from lower monthly payments may not exceed the costs of refinancing.

As a rule of thumb, it pays to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. Asking yourself a few questions may help you determine if you can save money:

• How much can I lower my current monthly payment? 
• How long do I plan to stay in the house after I refinance?
• How much will I pay in refinancing costs? 

How to refinance?Refinancing is similar to the process you encountered when you closed on your first mortgage. It requires an application, credit check, new survey, and title search, as well as an appraisal and inspection fees. As you know, this process can be quite lengthy and expensive.

Keep in mind, however, that by refinancing you may extend the time it will take to pay off your mortgage. That said, there are many ways to pay down your mortgage sooner to save you thousands of dollars. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal per calendar year. This will also help reduce your amortization period (the length of your mortgage), which in turn saves you money.

Improve Your Home's Curb Appeal with a Stone Veneer

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Whether you want to increase the resale value of your home, or you just want it to look its best inside and out, nothing does both like the look of stone crafted designs. Yet, natural stone can be prohibitively expensive.
 
Most new homes that appear to have a stone facade are actually stone veneers which are a manufactured stone that looks like a real stone. Stone veneer has become very popular because it weighs less eliminating the need for wall ties or footings and makes it cheaper to install. It also costs less and is available in a variety of colours and designs making it easier to coordinate with the style and colour or your new home. A quality veneer is also extremely durable, ensuring it will protect your structure with little maintenance giving your home lasting appeal.
 
You can create a striking, beautiful contrast by combining brick and stone. Brick endures longer than virtually any siding material and will maintain its beautiful look. Another benefit to brick is that it is more soundproof than other sidings to create a quiet and cozy interior.
 
If you’re performing a home renovation, a stone veneer can easily be applied over wood or stucco. The relatively simple upgrade adds tons of curb appeal and increases your resale value.
 
How to Install Stone Veneer Siding
Get the look of real stone without the high cost by following these easy step-by-step instructions:
 
Step 1: Create Your Design
First, create the pattern you want on your exterior by drawing it out on graph paper or using computer software.  Next, lay the veneer stone on the ground in the pattern you have designed to ensure you have enough stones.
 
Step 2: Create a Moisture Barrier and Add a Wire Mesh
If you’re covering wood you’ll first need to create a moisture barrier by applying roofing felt or house wrap over the surface with nails. This step is not necessary for masonry walls. Attach a wire mesh to the wall with nails or screws. This will become part of the base that holds the stone veneer to the walls.
 
Step 3: Apply Mortar and Attach Stones
Once the wire mesh is attached, apply mortar approximately 1/16" to 1/8" thick with a trowel. Apply mortar to the stone and attach it to the surface working in a horizontal pattern and leaving a small gap. Hold the stone against the surface until it sets. Be careful not to get mortar on the surface of the stone.
 
Step 4: Finishing Touches
Since laying stones is a bit like putting a puzzle together, not all the pieces will fit perfectly. Use a power saw with a masonry blade or grinder to reshape the stone to fit. Fill gaps and small spaces with grout to prevent moisture from getting through.

Is it better to Rent or Buy? That depends ...

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Buying a house can be the most rewarding purchase you ever make. However, depending on your current circumstance this may not be your best option. To help make an educated decision, try to answer the following questions first:

1. Do you really want to own your home?
Some would argue that this is the first question you should ask yourself. Homeownership, like everything else, is a matter of choice. Only you can decide whether or not homeownership is important to you. If it is then you may want to re-assess how you spend your money every month.

2. How often do you expect to move in the future?If you expect to be moving a lot (every couple of years or more) then you probably shouldn't buy your own home. Every time you buy or sell a home you incur significant costs. Unless you get lucky and the value of the home you purchased goes up by at least 10%, you'll be losing money.

3. How stable is your employment situation?You should only consider buying a home if your employment is stable. Homeownership requires a number of regular payments like the mortgage, property taxes, maintenance, insurance, etc. Missing any of these payments can trigger terrible consequences for a homeowner. Unless your employment is stable, your best option is "renting".

4. Can you afford to make the monthly payments?When qualifying for a loan, most mortgage companies will not allow your housing costs to be more than 33% of your gross income. Housing costs include your mortgage payment, property taxes, utilities, and 50% of condo fees if applicable. If your total debt servicing costs (housing costs plus all of your other monthly debt payments) exceed 40% of your gross income you will not qualify for a mortgage.

How much rent are you paying now? What is the maximum amount you are willing to pay?

If you buy a home, it is important to have some money set aside for "emergencies". You may not be able to save as much money as a homeowner as you did when you were renting, but it is important that you leave some room in your budget. If you have to stretch your budget too far, you should definitely reconsider your home purchase.

5. Do the mathHousing costs can be divided into shelter costs and investment costs. When you rent, you pay your shelter costs, and the landlord pays the investment costs. When you buy, you pay both, which is usually more. Ten years later when you sell the house, you will find that your investment did well and you saved a lot of money by buying.

From a purely financial standpoint, whether you should rent or buy comes down to your monthly budget and the cost of borrowing. If you have the down payment and interest rates are 5% or lower, it makes very little difference whether you rent or buy. At interest rates above 8%, buying will cost you 20% or more than renting.

Although it might seem that you will be spending more money on buying a house than renting, you need to consider your options and priorities. There are many more advantages to purchasing a home over renting.

Conclusion
Buying a house is an investment, and for many people, it is a good one. You can purchase insurance to help you manage any potential risks like fire, earthquakes, and thefts. Remember to take your buying/selling costs into account when considering selling your home. The strength of the real estate market in your area will determine the return on your investment.

Assuming that you can afford the increased costs of owning your home, the question of what's better, renting or buying a house, becomes one of personal preference. There is a certain satisfaction in owning your own home, but only if it is important to you.

If you are only staying somewhere for a short period of time (less than five years), renting is almost always better; the transaction costs of buying and selling houses will definitely make it less expensive just to rent.

For longer periods, buying a house is usually better. Although if you have the discipline to invest the difference between your rent and your potential mortgage and other buying costs in a reasonably high yielding investment, renting might be better. But that’s if you carefully figure out the difference and diligently invest that difference. If you can’t do that then buying is probably the better choice.

Buying a house is usually a sound long term investment as it helps you build equity vs. throwing your hard-earned money away as rent real estate generally appreciates; a house bought today is worth more a few years down the road.