Tuesday, November 28, 2006

Hello all! Just got back from a trip to Cleveland seeing Susan's family...Grandma, in her 87th year, is still going strong!

Below are some home Maintenance steps to keep in mind...All the best...Dan


Priority Maintenance for Home Buyers

There are so many home maintenance and repair items that are important; it can be confusing trying to establish which are the most critical. To simplify things, I have compiled a short list of our favorites. These are by no means all-inclusive, nor do they replace any of the information in a home inspection report. They should, however, help you get started on the right foot.


One-Time Tasks

1. Install smoke detectors as necessary (usually one on each level of the home, near any sleeping areas). Install carbon monoxide detectors, according to manufacturer’s recommendations.

2. Make any electrical improvements recommended in the home inspection report.

3. Remove any wood/soil contact to prevent rot and insect damage.

4. Change the locks on all doors. Use a dead bolt for better security and to minimize insurance costs.

5. Correct trip hazards such as broken or uneven walks and driveways, loose or torn carpet or uneven flooring.

6. Correct unsafe stairways and landings. (Railings missing, loose, too low, et cetera.)

7. Have all chimneys inspected before operating any of these appliances.

8. Locate and mark the shut-offs for the heating, electrical and plumbing systems.

9. Label the circuits in electrical panels.

10. If there is a septic system, have the tank pumped and inspected. If the house is on a private water supply (well), set up a regular testing procedure for checking water quality.
Regular Maintenance Items

11. Clean the gutters in the spring and fall.

12. Check for damaged roofing and flashing materials twice a year.

13. Cut back trees and shrubs from the house walls, roof and air conditioning system as needed.

14. Clean the tracks on horizontal sliding windows annually, and ensure the drain holes are clear.

15. Test ground fault circuit interrupters, carbon monoxide detectors and smoke detectors using the test button, monthly.

16. Service furnace or boiler yearly.

17. Check furnace filters, humidifiers and electronic air cleaners monthly.

18. Check the bathtub and shower caulking monthly and improve promptly as needed.

19. If you are in a climate where freezing occurs, shut off outdoor water faucets in the fall.

20. Check reversing mechanism on garage door opener monthly.

21. Check attics for evidence of leaks and condensation and make sure vents are not obstructed, at least twice a year. (Provide access into all attics and crawl spaces.)

Wednesday, November 01, 2006

Court assails mortgage-fraud law
Ontario couple freed from bogus financing as judge scolds province, bank and broker
KIRK MAKIN
JUSTICE REPORTER

An Ontario judge has absolved a Toronto couple of the need to pay off a fraudulent $247,860 mortgage on their condominium -- and lashed out at a chink in the law that has created "a serious mortgage-fraud plague."

In a blistering judgment, Mr. Justice Randall Echlin of the Ontario Superior Court said yesterday that the fraud perpetrated against Seyed Rabi and Shohreh Shafiei could have been quickly detected had the Toronto Dominion Bank or its mortgage broker exercised "rudimentary due diligence."

He said numerous irregularities in the way the bogus financing took place ought to have set off alarm bells -- simply sending an appraiser to the condo door would have tipped the institutions to the fact they were being hoodwinked.

"I cannot help observe that there ought to have been more care taken in advancing a sum in excess of one quarter of a million dollars," he noted.

Morris Cooper, a lawyer for Mr. Rabi and Ms. Shafiei, hailed the ruling as a dramatic turning point in a scandalous situation that has left numerous victims. "Today's decision and how the Court of Appeal deals with it will undoubtedly have nationwide impact," he said in an interview. "This decision is certainly a breakthrough in this entire area of law relating to title and mortgage fraud. To make homeowners responsible for compensating the bank is perverse."

In an unusual departure, Judge Echlin went so far as to call for the province to better protect innocent homeowners who find themselves required to fight for compensation from a special fund.

"This can involve years of proceedings and tens of thousands of dollars in legal expense, not to mention heartbreak and aggravation," he said. "Victims of the system are essentially revictimized."

Mr. Rabi and Ms. Shafiei bought the condo, where they live with their two children, in 2001. They had it paid off in full by 2004, when fraudsters used false documents and a falsified "purchaser" name to take out a mortgage on the property.

A year later, the couple noticed that it was no longer registered in their name. By that time, the fraudsters had disappeared with the money. Meanwhile, the mortgage broker delegated by the bank to complete the deal refused to compensate the bank, claiming it was a valid mortgage.
Toronto Dominion acknowledged at trial last month that the couple was defrauded. However, the bank said that it was an equally innocent victim, and that Mr. Rabi and Ms. Shafiei ought to be legally responsible for the mortgage.

"It is extremely curious that the condominium unit in question was listed as having a locker and two parking units, and yet the fraudulent sale did not refer to these, nor did it offer any explanation for the absence of such transfers," Judge Echlin noted yesterday. "Finally, it was odd that there was no deposit. All of these red flags should have raised questions for the lender.
"In this day and age of impersonalized mortgage lending and borrowing in which banks download the appraisal process to a mortgage broker who, in turn, does as little as possible to maximize profit, such frauds can and will occur," he added.

The focus now moves to the Ontario Court of Appeal, which will hear a major appeal later this month dealing with the mortgage fraud problem.

Previous Court of Appeal decisions have stated that while a fraudulent mortgage can be re-registered, there is nothing the courts can do to relieve innocent homeowners of the burden of paying the mortgage.

Monday, October 16, 2006

Hello All! I have had fantastic feedback from so many of you. I will continue to develop the site to make it a greater resource center. Please let me know what else you might want to see on the site. On a personal note, I was away at the family cottage this past weekend with my brothers closing it for the winter...and we ran into a foot of snow! Had my first full out snowball fight of the year with no injuries...wishing you all the best...Dan

Toronto's healthy market rolls along

Toronto's healthy market rolls alongTORONTO, October 16, 2006 -- The Toronto Area resale housing market showed solid activity throughout September with 6,622 sales to maintain the year's strong performance, Toronto Real Estate Board President Dorothy Mason announced today.

“Though the overall sales pace is at more normalized levels, 2006 remains within one per cent of 2005's all-time record pace for the year,” Mrs. Mason said.
The average price of a home during September was $349,142, up five per cent from the $335,334 recorded last September.

According to Jason Mercer, Senior Market Analyst for the Canada Mortgage and Housing Corporation, good economic conditions continue to provide strong support for the housing market.

“While trending lower, sales are forecast to remain near record levels through 2007,” Mr. Mercer said. “Steady job creation and low borrowing costs are key factors underlying continued strong demand for existing homes.”

In Toronto's east end, Guildwood / Scarborough Village (E08) showed 37 per cent more overall transactions than the previous September as condominium sales in the area nearly doubled from the year before.

Strong results were seen in North York during the month, including a 27 percent jump in overall transactions in North York City Centre West / Willowdale (C07) compared to September 2005. Strong detached home sales contributed to the increase.

“We are still seeing healthy sales levels consistent with a housing market that is in very good shape,” Mrs. Mason said. “Prices are increasing steadily and demand is based on real need. It's an excellent time to take advantage of these conditions by getting into the market or making a move to another home.”

Wednesday, October 11, 2006

Launch

Welcome to my new Blog, this is an exciting time for me! Launching my new web site and a blog! I want to thank Mike MacMillan. I met Mike and Terri a few years back and had the pleasure of selling them a home. Mike took this upon himself to design a site that reflected my vision and needs. I think he did a great job! I hope over time, with you're input, to develop a library of useful reference material in addition to current market evaluations. Looking forward to you're comments...All the Best

Wednesday, October 04, 2006

The faster you pay the more you save on mortgage costs
Interest can double the price of your home Make extra payments whenever possible

ROB FERGUSON
STAFF REPORTER

Chances are you've never met Rick Mathes, but he's offering some "been-there-done-that" money-saving advice for first-time homebuyers.
When shopping for a mortgage, think long and hard about how you plan to pay it back.
The longer you take, the more it costs. In fact, interest costs alone, over the life of a long mortgage, can tally almost as much as the house.
Such thoughts are an occupational hazard for Mathes, a mortgage expert whose official title is vice-president of real estate secured lending at TD-Canada Trust.
"For most people, it's the largest financial transaction of their lives," he says, recalling his own first home-buying experience years ago.
"I was traumatized. I thought, `I'm going to be paying how many tens of thousands of dollars in interest?'"
Here are the cold, hard numbers:
A 25-year mortgage on a $300,000 entry-level house costs about $200,000 in interest at current rates. The combined total: $500,000.
That's why Mathes hunkered down, taking advantage of typical mortgage features like doubling his regular payments and paying down a chunk of the principal — the original amount borrowed — every year. Many lenders allow customers to pay down up to 15 per cent of the principal once a year, usually on the anniversary date.
"If you do that, you can turn a 25-year mortgage into about five years," says Mathes, with the unsurprising caveat that "not many people have the wherewithal to do that."
Present company excepted, of course.
"I got rid of mine in about six years," Mathes notes. "But then you're looking at renovations or moving up."
Marion Nader bought a condo last fall and is hoping she'll soon be able to afford some extra payments, but it's not easy.
"I know the sacrifices I make now will pay off," says Nader, who lived in Woodbridge before moving to the King and Bathurst St. area to be closer to work.
But with rising hydro bills, property taxes and the recent RRSP deadline all pinching her pocketbook, Nader is finding home ownership "a little bit more than what I had anticipated."
Still, many people are finding the cash.
At least one bank reports the average payoff period for mortgages has declined to 18 years, as homeowners become better educated and take advantage of additional pay-down privileges.
One strategy is to make sure your mortgage payments — which should tally no more than one-third of gross family income — are manageable, then to have the discipline to put any extra cash down on the principal.
Given the way mortgages are structured, the highest interest costs are in the early years.
Here's how it works: The repayment plan for a mortgage is based on an amortization period — the length of time you plan to take to pay down the loan. Typically, it's 25 years. Every weekly or monthly payment retires more of the loan's principal, so the interest charges, therefore, become less and less.
In the first five years of a mortgage, a whopping three-quarters of your regular payments typically go to interest and just one-quarter to the principal.
Asked for his top advice to first-time homebuyers, Mathes says don't automatically opt for a five-year mortgage term with a fixed interest rate.
It's a traditional choice for many rookie buyers, who like the idea of knowing how much their mortgage payments are going to be.
Owning a home typically comes hand-in-hand with unexpected cash outlays for home repairs and maintenance, not to mention things like decks, new furniture and — maybe —starting a family.
"The most classic mistake is they go in the five-year mortgage and, two or three years later, everything changes and they wish they weren't locked in," says Mathes.
But he acknowledges that the popoularity of five-year terms has increased in the past few months as rates crept up. That's because homeowners have been locking in on rates before they sneak higher, a switch from the past few years of declining rates, when the best option for many people was a variable rate mortgage, in which rates rise or fall with the market.
As an example, he notes that a $200,000 five-year-mortgage at 7.95 per cent, taken out in December 1999, would have cost $33,000 more in interest than a variable rate mortgage, because rates declined over that period. Of course, the interest cost would have been higher had rates risen instead.
"If you have risk-tolerance, you should play the odds," says Mathes, adding that studies by a number of banks over recent years suggest short mortgage terms and their typically lower rates are more economical in the long run.
Many homebuyers are shying away from variable-rate mortgages these days. The flexible-rate plans account for just 20 per cent of sales, compared with 40 per cent six months ago at TD-Canada Trust, Mathes says.
By the way, he also advises making the maximum RRSP contributions every year and using any tax refund to pay down the mortgage.
He does not recommend raiding an RRSP nest egg to come up with a down payment, unless you are a disciplined saver with a good cash flow to replace it later. But he says "it's an individual decision." While getting a big enough down payment to avoid having to purchase government-required mortgage insurance
Realtor's help is free, so why not hire one?
First-time buyers can benefit from realtors' knowledge Buying a house can be emotional and stressfulBuyer gets the benefit but seller pays the fee`She pointed out things I'd never notice'
DONNA JEAN MACKINNON
STAFF REPORTER

At 26, Margaret Fury came to a crossroads in her life. The upshot was she ended up buying a house.
Her grandfather was ill and she had planned to move in with her grandmother. But it wasn't to be.
"My grandmother advised me to go out on my own and live my own life — as long as I didn't move far away," says Fury, who was living with her parents, rent-free, in Brampton and whose car was paid for.
The first step was finding a real estate agent, which immediately begs the question: Why do you need an agent?
Kim Campbell, a Brampton realtor, who specializes in first-time buyers, answers: Why not?
"As a buyer, you don't pay the agent anything. The seller pays the commissions," she says. "It's basically a free service for buyers, so why not take advantage of the agent's expertise?"
First-time buyers are going into unknown territory, she adds, and a savvy agent can guide them through the intricacies of house hunting and the offer process.
Also, agents do the legwork for their clients. They may check out 15 houses and decide only two are suitable, thus saving clients endless hours of driving around and poring over MLS listings.
Fury's mother was on Campbell's email list and spotted the perfect house on it.
Fury loved the four-bedroom, semi-detached house. It was not a fixer-upper and was close to family. Located in Peel Village (Highway 10 and Steeles Ave.), the house was built in the 1960s. It had a large lot with gardens and mature trees, which were alive with blue jays and cardinals.
"The older couple selling were so nice," Fury says. "They were the original owners."
There was already an offer on the house, but the deal fell through over a washer and fridge. Fury made an offer of $320,000 and a month later she was ensconced in the house.
After 18 months, she looks back and says the first year was the hardest financially. Fury forked out a 25-per-cent down payment, so she didn't have to pay mortgage insurance, which is added automatically if the upfront sum is less than 25 per cent.
"But I felt house-poor — no more free-and-easy shopping and spending," she says. "Living on a budget was scary."
Fury became a homebody, entertaining friends with style, thanks to a "mammoth" barbecue that was a housewarming gift.
`As a buyer, you don't pay the agent anything. The seller pays the commissions. It's basically a free service for buyers, so why not take advantage of the agent's expertise?'
Kim Campbell, Brampton realtor
Then Fury made another change. She left her downtown sales job and found more lucrative work in Etobicoke, a 20-minute commute away.
"Now I can still afford a vacation, and the plush white carpets in the house will be replaced," she says.
Fury listened to experienced people such as Campbell who believe in making money on your first house.
"Now I tell everyone to buy, not rent," Fury says. "In one year, I've made money. My house is worth at least $400,000."
Campbell says Fury is among the growing number of single women buying homes as an investment — sort of a forced savings plan.
She advises first-time buyers to focus on location, and is convinced there is more value in the suburbs than the city.
"Being in a good neighbourhood is No. 1," she says. "I advise being picky about the location and foregoing an extra ensuite and double-car garage to pay for the best location they can afford."
Campbell also worked for Jean and James Rowlandson, a couple with a baby. They rented in Mississauga for two years to save for a down payment and then contacted Campbell.
"We hit it off. We were so pleased with Kim. I knew about financing, but she pointed out things I'd never notice," says Jean, a 34-year-old banker now on maternity leave.
The couple looked at about 20 houses in the $250,000 to $270,000 range. When they walked into a five-year-old house in a subdivision at Sandalwood and McLaughlin, north of Brampton, they knew this was it. The price tag was $268,000.
"I was always on the other side of the desk," Jean says. "It was just numbers then. Suddenly, buying a house became emotional and stressful."
The house had been upgraded and had custom work, so they didn't worry about major improvements. James did finish the basement and they figure the house is now worth about $339,000.
But Jean is not happy about the pie-shaped lot, since it has a minuscule backyard and a "non-existent" front yard, taken up by two garages.
The couple now plans to move somewhere like Midland, where they can get a lot more house for less money. Jean is sure she can get a transfer and James, a self-employed distributor, can work anywhere with high-speed Internet.
Welcome to my new Blog, this is an exciting time for me! Launching my new web site and a blog! I want to thank Mike MacMillan. I met Mike and Terri a few years back and had the pleasure of selling them a home. Mike took this upon himself to design a site that reflected my vision and needs. I think he did a great job! I hope over time, with you're input, to develop a library of useful reference material in addition to current market evaluations. Looking forward to you're comments...All the Best

Monday, September 11, 2006

Handy-man special can be a real bargain

If it's well done, you'll get all the money back
Apr. 20, 2006. 01:00 AM
PAUL IRISH
STAFF REPORTER

If you're looking for a house in an established area with some real character, don't buy the best one on the block, buy the worst.

It's advice many real estate agents give to first-time homebuyers who — unlike their counterparts in new subdivisions — don't want to wait 30 years for their trees to mature, but still can't afford to pay top dollar.

The theory is simple: Any renovations or refurbishing will more than pay for themselves as the worn and neglected home is brought up to the loftier neighbourhood standards.

A $250,000 fixer-upper could eventually fetch $400,000 in the right Toronto neighbourhood with the purchase of a new $40,000 kitchen, two new bathrooms totalling $30,000 and perhaps another $20,000 to paint the walls, refurbish the floors, install new windows, put on a new roof and make over the gardens.

It's a lot of money but you'll come out ahead with more coin in your pocket as the value of your newly refurbished home is pushed up by the market.

But it's not a slam dunk, as anybody who has undertaken renovations — big or small — will tell you. It's even more complicated when the owners have small children, as your home becomes a major construction area with debris, dust and tools.

Renovating isn't as easy as it's sometimes made out to be on the makeover TV shows. You might have the money, but do you have the time? If you have the time, do you have the expertise?

Dean Artenosi, a developer and president of Renosolutions, a division of the Arten Group of Companies (http://www.renosolutions.ca), says he deals with many first-time homeowners.
A lot of people try to do renovations themselves, he says, but it has a way of coming back and biting them. With time being the "new currency," he advises against it.

"I admire the ambition that many people have, but it's stressful just being in a home that's undergoing renovations, let alone doing the actual work. It can be a very trying time and we do our best to get it done and get out."

Chris Willerton, 33, and his wife recently purchased a home near Woodbine and Mortimer Aves. in Toronto and immediately put in a new main washroom.

"When we first saw the house, everything was there except a suitable washroom," he says. "Instead of continuing our search, we decided we could put in a new one."

Willerton says he's good at basic jobs around the house, but they decided to spend about $20,000 on a professional contractor.

"I know my limitations and we decided we wanted some real quality out of this," he says.
Willerton is confident he'll get the $20,000 back and more, when the house is sold.

Wise Advice for the 1st Time Buyer


Brampton realtor Kim Campbell offers this advice to ease the steep learning curve for first-time homebuyers:


· Find a knowledgeable realtor who will explain everything, including the offer process, buyer agreement, the dual-agent system, multiple offers and lawyers' fees.
· Ask family and friends for an agent referral.
· It's important to have a good rapport with an agent.
· Be honest and upfront with the agent about what you want, so you don't waste time pursuing the wrong properties.
· Couples: Make sure you are in agreement and hunting for the same dream house.
· Be aware location is the No. 1 priority when buying, if you are thinking of your first house as an investment.
· Client loyalty is important, if you expect the agent to work hard for you.
· Arrange a pre-approved mortgage and organize house insurance.
· Take a long-term mortgage and lock into today's low interest rates.
· Understand the importance of a house inspection by an independent expert.
· Look at how the neighbours keep their houses; if they're dirty and rundown, that will never change.
· Do your homework. Attend open houses and look at MLS listings online so you will have some sense of the local real estate scene.

Donna Jean Mackinnon from Toronto Star

Tuesday, August 22, 2006

New Blog Set Up!

Welcome to my new blog! It's important to stay close to all of my people so I've set up this space to keep in contact with everyone. Got a question? Need a hand? Over time, I hoping that this blog will evolve into a very useful tool for my clients.

In the meantime, you should check out www.TurningHousesIntoHomes.com, my new website. You'll find all sorts of useful tools and advice that will help get you on your way to finding a new home in Toronto.

Talk soon!