Old Homes Don't Mean Bad Homes.

I got news for everyone out there. New or old there is unfortunately no such thing as a perfect home. All homes are different and all have their own quirks about them that make them unique and one must know what those are before they become costly problems.

The benefits of living in an older home are plenty! The history, the style, the craftsmanship, the way that 3rd stair always squeeks. But owning such a home has its challenges. Maintenance can be tricky and expensive, especially if certain areas have been neglected. Here are some common issues found in older homes.

Energy inefficiency is the one of the key main issue with older homes. Most older homes were built with single-pane windows; maybe those are ok in a tropical climate, but whoever thought that they were sufficient for the temperature changes that we see here in Ottawa, were sadly mistaken.

Insulation in older homes was little to none in some cases and lack of insulation will also result in wasted energy and money. The most important and easiest area of the home to insulate is the attic, but walls and floors above ventilated crawlspaces should be insulated as well if possible. The attic may already have insulation but it may be inadequate by current standards. Not to mention, the type and materials used in older insulation should be carefully looked at and inspected.

If your home has older water pipes, have them checked to identify the material and determine if they need to be replaced. Some older materials such as galvanized steel, iron, and even lead are subject to deterioration and are still in use today even though new construction does not allow them. Replacement options include copper and PVC piping.

Electrical systems can still cause some issues and older types be found a lot homes and may not only be dangerous, but they can make the house uninsurable. Homes in the Glebe and downtown areas where they were constructed prior to 1940 may still have knob and tube wiring. Other homes built prior to the 80's may have aluminum wiring which heats up much quicker than copper and can become brittle over time. Even if no danger is present, we use so much more electricity in our homes now that the capacity of your older system may be inadequate. Only a qualified electrician should attempt any repairs or updates to your home's electrical system.

Foundations can be a tricky subject. Most older homes used stone foundations. During the 50's,60's and 70's, came around block foundations. Both of those types can have issues and your home should be looked at thoroughly to ensure that all is intact with them. Today homes mostly used poured concrete. Not to say that there aren't problems with those as well, but they are generally more durable. You should have someone that can identify any issues before the issues become problems. I have been on well over a hundred home inspections, and I can spot most problems before we waste our money calling in home inspectors to notice the same issues.

All in all, there is no such thing as a perfect home unfortunately. All homes have their problems and the key is to know what your home needs to make it as perfect as it can be.

Great Tips for Real Estate Investors

This is another solid blog that I grabbed from one of my Mortgage Specialists Nick Bachusky( www.mortgageinottawa.com ). I deal with a lot of investors and most start out making some of these mistakes. Give it a good read so that you don't.

Top Eight Mistakes Property Investors Make with Realtors from CREW (Canadian Real Estate Wealth)

Here is an interesting article that I came across in Canadian Real Estate Wealth magazine, I work with a lot of real estate investors and this is just a refresher to make sure you try hard not to fall into any of these traps

1. Lying about how much buying power they have
“Often investors are not honest with respect with their buying power and how much cash they have available, or they hope they can reduce the price or get some miracle and find the extra cash down payment,” says Montreal Realtor Banny Bar.

2. Backing out of deals
“A lot of hard work and effort can go into putting a deal together,” says Edmonton-based Realtor Corey Young. “Sometimes because an investor is not emotionally attached to a property, the slightest thing wrong with the inspection or with financing and they can pull the plug. That can definitely be frustrating for a Realtor.”

3. Being vague about where and what type of property they want to buy
First-time investors are especially vague, point out several Realtors. Requests for “cash flowing” properties could be answered with a single family home in a suburb, or a 100-unit building downtown. Know what type of building, tenant and cashflow you need, says one frustrated real estate agent, as well as the neighbourhoods and price range that interest you.

4. Being goal phobic
“If an investor comes to us and says that they want to buy a condo investment, we usually ask ‘what for?’,” says Toronto Realtor Adam Brind. “If they can’t give us a straight answer it means that we usually have our hands full.”

5. Expecting miracles from the Realtor
Bar has seen emails simply asking “Do you have any great deals?” without context or more information.
“I love those ones,” he says. “My reply is: ‘Yes I do, how many hours have you got? And I charge $2,000 per day.’”

6. Failing to listen and communicate
You use a Realtor for a reason – their expertise in the market. If they make a suggestion or ask you a question and you don’t take the time to consider it, you’re probably limiting yourself.
“The clients that actually follow through and purchase or sell product are the ones that ask the good questions,” says Young. “They are the ones that respond with in depth answers to my questions.”

7. Assuming the developer is on your side
Hello, investors: developer has their own agenda, and it’s really your Realtor who can help on issues such as picking the right floor plan for resale and weighing the adjacent land plans.
“It’s important for us to remind new clients that we have existing relationships in the industry and that we’re working for them – not the developer,” Brind says.

8. Having too many advisors
“Nothing is worse than working with an investor or first-time buyer that is getting mixed messages from various sources,” Brind says. “Very often we get investors that have ‘relatives’ in the business or ‘semi-professional’ friends that moonlight as real estate professionals.”

If Real Estate Investment is something that you have been thinking about, please feel free to give me a quick shout to see just how I can help. I have help many build and start their portfolio's in order to make solid and sound investments.

Breakdown of Closing Costs in a Purchase

This blog is from one of my fantastic Mortgage Specialists Nick Bachusky over at Mortgage Specialist Direct, a new branch of Dominion Lending. Be sure to check out his website for other great information at www.mortageinottawa.com

Estimating your closing costs after the excitement of buying your home is about as appealing as sorting out travel insurance after you’ve booked your dream vacation. That said, closing costs are unavoidable so the best approach is to prepare for them ahead of time. The old rule of thumb for closing costs was to conservatively assume that they would account for approximately 2% of your purchase price but with HST being applied to some new home purchases, that approach is somewhat dated. Today’s post will give you a brief explanation of closing costs and then I’ll close with a couple of insights that I think every home buyer should hear.

Closing Costs for Every Buyer

Land Transfer Tax:

This is usually the largest single charge. It is calculated by taking your purchase price and multiplying it by a table of rates that rise with the purchase price. The top rate of 2% kicks in after $400,000, which means you pay 2% in tax on every dollar that you spend over $400,000. I know. Ouch. At least first-time home buyers get a rebate of up to $2,000.

The tax rate has not changed since June 1, 1989.

• 0.5% of the value of the consideration up to and including $55,000,
• 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
• 1.5% of the value of the consideration which exceeds $250,000, and
• 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

Legal Fees and Disbursements:

The lawyer’s fee for his/her time can only be estimated until you get a quote. Don’t be shy to ask for one. If you need a great real estate lawyer, let me know, I work closely with a few excellent ones that will be in great contact with you. I know a lot that are not very good at communication. Fees vary widely from lawyer to lawyer and they are often based more on law firm policy than on difference in service. Standard disbursements include registering the deed and mortgage charge, performing a title search and preparing your tax certificate. Each disbursement includes a standard administration fee with the lawyer’s time added on top.

Closing Adjustments:

These are reimbursements to the seller for any payments that were made for a period extending beyond the closing date. Put another way, you are reimbursing the seller for the portion of each charge that applies to the time when you are the owner. Examples include property taxes and condo maintenance fees. Interest Adjustment: Lenders like to start mortgage contracts on the first of the month, but buyers and sellers aren’t as regimented. Your interest adjustment cost covers the period between your closing date and your first scheduled payment (which if you choose to pay monthly is the first day of the following month). It works out to a little less than you would be paying if your mortgage term started on the same day you bought your house because it doesn’t include any principle repayment (it’s an interest only charge).

Fire Insurance:

If you need a mortgage, your lender will insist that you have fire insurance. This isn’t a big upfront cost because you can pay it monthly, but you have to prove you’re covered before the lender will advance funds on your behalf.

Closing Costs for Sub-groups of Buyers
Mortgage Default Insurance:

If you have a down payment of less than 20% you have to pay for mortgage default insurance so that if you default on your loan, the lender gets reimbursed. It’s based on a sliding scale where the smaller your down payment, the higher your insurance fee (CMHC is the largest provider). The fee is calculated as a percentage of your purchase price and you can add it to your mortgage balance, but you have to pay PST (8%) on the fee at closing. This is commonly forgotten by many financial advisors at banks.

HST for New Home Buyers:

If you buy a new house after July 1, 2010, you have to pay HST. All buyers get a rebate of $24,000 regardless of the purchase price, which is the same as paying no tax on the first $185,000. Some builders are including the HST in their sale price, so be sure to check. Go to the government for always up to date information here!

New Home Warranty Program:

New home buyers are required to enroll in the Tarion New Home Warranty program. Most builders also include this cost in the sale price but otherwise you will have to pay the fee at closing. Your new home warranty begins before you even move in. Once you provide the down payment for your new home, it’s protected. You also have a right to compensation if your builder delays the closing of the sale without giving you proper notice. Before you take possession of your new home or condominium, your builder will walk you through a pre-delivery inspection (PDI). For freehold homes, the builder pays the warranty enrolment fee to Tarion on or before the date the building permit for the home is issued. Condominiums are enrolled at least 30 days before construction begins. Tarion then gives the builder an enrolment number for the home. Some builders will include the warranty enrolment fee in the purchase price of the home, while others show it as an item on the Statement of Adjustments. You can find out more here!

Status Certificate:

Condo buyers need to pay for a status certificate, which their lawyer will review at closing. It includes the condo corporation’s financial statements and bylaws and it will give you a sense of the overall financial health of the partnership you are about to join. Your lawyer will use this document to gauge the probability of a significant increase in your condo fees. The good news is that the fee for this certificate is capped at $100. Want more information, go here!

Lastly, estimate your closing costs upfront and include them in your purchasing budget. Too many people wait until they’ve signed a purchase and sale agreement and then the money has to come out of their budget for new carpets and curtains. If you need to work out the costs, I can do that for you!

PRICED TO SELL - Gorgeous 2Storey Loft Style Home

PRICED TO SELL at $274,900 - This stunning loft style 2 storey home sits nestled on a huge lot only 30 mins from downtown Ottawa, and mins from Kanata.

Neighbourhood features:
- Family Oriented
- Park Across the Street from home
- Natural Gas available at road
- High Speed Internet Available
- 30 mins from Downtown Ottawa.
- 5 mins from shopping
- good mix of homes in the area(no cookie cutters here!)
- Close to Constance Bay

Home Features:
- Forced Air Oil Heat
- Central Air Conditioning
- Fresh Paint Job
- Updated Flooring
- Over 25k spent in the last 2 years in improvements

Main Level:
- 2 storey living space flooded with natural light
- Powder room
- Large bright updated kitchen with lots of counter space
- Inside access to garage
- Exit out to rear deck
- Upgraded laminate throughout

Upper Level:
- Plush carpeting for added comfort
- 2 large bedrooms
- 2 full bathroms(one ensuite)
- Laundry room
- Great loft area perfect for office or family room.

Lower Level:
- Laminate flooring with Dry core underbelly
- 3rd bedroom
- Yet another living space!
- Storage area
- Utility room

With all this home has to offer, it is sure to go quickly. Call now to book your private showing. View More Images Below.

Stunning 4 bedroom home on a large private lot!

Have you been looking for that oasis of a home within 45mins of downtown Ottawa? Well look no further and start packing your bags. This one is sure to get you excited to move! A beautifully layed out 4 bedroom split level home sits nestled amongst large mature trees and is approximately 2140 square feet. It sits on an approximate total of 1.77 Acres, and is located about 5 mins from the Hammond Golf Course.

If one house just isn't enough for you, then don't worry, we'll throw in another home on the property for free!!

Main Features:
- 1.77 Acre Lot (178.90' X 429.79')
- Home nestled amongst loads of mature trees
- 5mins from Hammond Golf Course
- 45 mins from downtown Ottawa
- Natural Gas available at road
- Municipal water available
- 2140 sq.ft of living space
- 4 bedrooms
- 3 large living areas
- 2 full bathrooms
- Newer Roof
- 2 car garage
- Another 2 bedroom home at the rear of the property in need of TLC(as-is where is condition)

Main Level:
- Large updated kitchen
- Great sized formal dining area
- Ceramic Tiled entry way
- Hardwood flooring
- Inside access to garage

Second Level:
- Large Living area
- Master bedroom with 4 Piece Ensuite (stand up shower and soaker tub)
- Another good sized bedroom
- Large patio area over looking a gorgeous treed lot

Lower Level:
- Laundry room
- Living Room with gas stove
- Walkout to back yard
- Full bathroom
- 2 good sized bedrooms

Basement:
- Storage room
- Huge family room

Second home on property(as-is, where-is):
- 2 Bedrooms
- Kitchen
- Full Bath
- Large living area

This home has so much to offer for the price, and is too much to try to mention on paper or show through images. This just absolutely must be seen to be appreciated. Call me now to book your own private tour of the property. You will not be dissappointed.



Andrew Miller
Sales Representative
Keller Williams Ottawa Realty Ltd.
Brokerage, Independently Owned and Operated
610 Bronson Avenue
Ottawa, Ontario K1S 4E6
Direct: (613) 447-7669

Market Outlook for 2012 is looking good!

I just finished up at a 2012 Mortgage Outlook with CMHC today. There were a lot of great things said. Mainly that Ottawa's housing market is in great shape to be living right now and for the future! I know there was recent press about that and may have you believing otherwise, but here are a few notes that I took in from todays meeting that could change your mind.

- Ottawa is currently in a strong balanced market, and prices expected to RISE with rate of inflation.
A 2.7% increase in home prices over the year is projected.

- Ottawa is definitely more stable as compared to other markets in Canada. So don't believe everything you see on TV

- Average employment by the government in 2002-08 was approx 95k, while average in 2008-12 was just shy of 120k.

- The government cuts that we are hearing of now represent approximately 1.5% job loss. That isn't as large of an
impact as most are thinking or hearing about.

- Other job sectors are still growing.

- Ottawa is at the top of the employment rate at 84.9%(ages 25-45) second only to Kitchener.

- Ottawa has grown approx. 47% in terms of income over the last 11 years and Ottawa has the highest weekly salaries anywhere in canada at just over $1000.

- Mortgage rates are still historically low, there is no better time to be buying! I've heard a recent deal was 3.89% for 10 year fixed!!! That's insane.

- Average of approx. 6000 immigrants per year are coming to Ottawa. 50% are economic immigrants meaning that they have degrees and support job growth. This combined with other factors translate to approx 5800 new houses a year required here in Ottawa.

- New homes are sitting at about 24% higher pricing then resale homes.

I think all this information I gathered says it all. The Ottawa housing market is fantastic. Rates are lower than most of us will see in our lifetimes. Prices aren't going down like some people may be telling you. There's not many times like this to be buying and selling homes.