"Real Estate Bits - 2"

April 2004

Money Matters...

Presented By: Glen Travers - Manager - Scotiabank
(416) 932-3034
E-Mail: glen.travers@scotiabank.com

"Doing Renovations The Right Way"

Today's low interest rates are a double edged sword for homeowners who want to move up. On the one hand, mortgages are available at bargain rates. On the other hand, real estate prices have skyrocketed in key centres across the country. Many homeowners have turned to renovation as a cost-effective alternative to a new home. In addition to sprucing up your home and making it more attractive to inhabit, the right renovations can increase its re-sale value. According to the most recent (1999) Renovations and Home Value Survey conducted by the Appraisal Institute of Canada, here are the Top Ten renovation projects, along with the average potential "payback" when the home is sold (expressed as a percentage of the cost of the reno):

1. Painting and decor - interior 73%
2. Kitchen renovation 72%
3. Bathroom renovation 68%
4. Painting - exterior 65%
5. Flooring upgrades 62%
6. Window/door replacement 57%
7. Main floor family room addition 51%
8. Fireplace 50%
9. Basement renovation 49%
10. Furnace/CAC replacement 48%

If you are making modest renovations on your own, paying for the materials with your credit card may make sense - provided you pay off your balance every month. For more extensive work, resist the temptation to draw cash advances on your credit cards. A personal line of credit is a much more cost-effective way to get the cash you need. Drawing on a personal line of credit has another advantage - you pay interest only on the amount borrowed. This can be particularly useful when paying a contractor in stages. For major renovations, you may want to tap into the existing value of your home. The CMHC web site has a comprehansive section on home renovations. Go to the "Building-Renovating and Maintaining" section at www.cmhc-schl.gc.ca/en/burema/index.cfm.

With today's low interets rates, many homeowners are taking a hard look at the financing of their most important asset. Before you decide to re-negotiate your mortgage, carefully consider the potential costs involved. If your mortgage is closed (that is, you can't pay it ahead of schedule) you may face a penalty when you re-negotiate. It may still be worthwhile to refinance. The key is to determine whether the potential interest-rate savings outweigh the penalty. The rough guideline is that refinancing makes financial sense if the refinancing rate is at least 2% below your current rate. Your mortgage specialist can help you crunch the numbers.

Your home equity is the current value of your home less what you still owe on it. For example, if your home is valued at $250,000 and your outstanding mortgage is $120,000 - your equity is $130,000. The equity you have built in your home can be a valuable source of financing. You can borrow against it to pay for your child's tuition, purchase an investment portfolio, pay for large-scale home renovations or buy an income property. In some instances, the interest may even be tax-deductible. Your tax advisor and mortgage specialist can help you decide whether it makes financial sense to tap into your home's equity.

Please don't hesitate to call me if you would like to chat about your financial planning strategies (416) 932-3034.

Regards,

Glen.

"Tricks Of The Trade"

"Kitchen Ideas"

In my job I get to see dozens of houses every week. Most have been prepared for the market, some are very nice and a few are truly outstanding. The fun part is picking up decorating ideas from the trials and errors of total strangers. Some homes have been done by designers and others have been created from the fertile imaginations of their owners, after a perusal of decorating magazines and a few trips to home shows. Either way, it's fun to see the choices people make for their homes, and one of the rooms that is the most fun to see is the kitchen. Over the last couple of years, and in no particular order, these are some great thing I've seen in kitchens.

• Floors - any materials seems to be acceptable these days from hardwood to limestone, cork, linoleum, peel and stick tiles (some are absolutely fabulous), wood laminate, painted/varithaned plywood,ceramic, porcelain and polished concrete. Just use your imagination, It's best to have a professional installer do the work, unless you can do an "expert" installation yourself. This is when you must tell "helpful but well-meaning" Uncle Harry that you have already hired an installer.
• Counters - Just the replacement of a worn, dated kitchen countertop can add a whole new look to a tired kitchen. If you follow this up with a new paint job the kitchen can be transformed. Counters can be anything from stone to soapstone (be sure you understand how to care for it), wood butcher block, granite, Corian, marble, concrete, or ceramic. The sky is the limit as to colour and design so pick what you like - bearing in mind that for future re-sale "neutral" is always best!
• Backsplashes - Just as much fun as picking the countertop - the backsplash can match the countertop or be a wonderful contrast. Think about what appeals to you and how you feel about texture and colour and then decide on stainless steel, ceramic, marble, tumbled marble, glass (fabulous), metal or mosaics in glass, ceramic or marble. There is an option for every taste and budget!
• Cupboards - Again, almost anything goes from painting and re-storing existing cupboards, if a new kitchen isn't in the cards due to budget constraints, to a entire kitchen renovation. Decide if you like the current style and layout of your existing kitchen. If not, then you can re-design the room yourself or with the help of a good kitchen designer. You can mix and match materials in a kitchen, add an island, have a family message centre or computer nook, a sitting area in a big kitchen is great, a countertop with barstools is fabulous for entertaining, wall mounted ovens, covered appliances (fridge & dishwasher) to match the cupboards, bevelled glass-front cupboards with interior cupboard lighting can add a sophisticated look to a kitchen. As to cupboards the selections are almost limitless from solid wood to veneer, metal to glass front, flat doors, raised panels and doors trimmed with metal or wood beading.
• Appliances - Go to some good appliance centres (I used Tasco and was pleased with their quality and service) and pick what you can comfortably afford and what you like. Black, white, stainless steel, covered to match your kitchen cupboards, electric to gas stoves, wall mounted ovens, built in microwave ovens and counter cooktops, not to mention built-in specialty wine coolers.
• Everything but the kitchen sink - you say - that's a whole other selection, along with taps, sprayers and faucets. So go crazy (not literally of course), have some fun and think about how you would like your kitchen to look - don't forget cupboard door knobs and drawer pulls - and then go shopping!
  

Regards,
Rosemary ...

Okay, Okay - Here's "The Joke"

Samantha is a very bright little girl. One day she went with her father to the local police division so he could ask about an error on a traffic ticket. She sat on a chair in a room at the entranceway while her father spoke to the desk officer. She was looking at the "wanted" pictures of numerous criminals on the wall, when a police officer walked into the room. "Good morning Sir", she said to the policeman, "Why are all these pictures on the wall?" The officer sat down beside her and replied, "These are all very bad men who we want to catch and put in jail". Samantha thought about this for a minute and then said, "If they're really bad people and you want to put them in jail, why didn't you just keep them here when you were taking their pictures?"

Guest Columnist

~ Ms. Jackie Kulack ~

"My Front Door"

(416) 571-4878
E-Mail: myfrontdoorjd@hotmail.com

"The Front Door Of Your Home"

Your "front door" is much more than the entrance to your home. It is the promise of what lies inside. This transitional space between in and out is a reflection of your life and your personal style. At My Front Door, we design liveable outdoor spaces that reflect the personality of our clients. We create custom settings for entranceways, small gardens, terraces and patios through the use of fresh plant material, fine outdoor furniture and unique accessories. Hand crafted architectural garden pieces, with clean simple lines, such as trellises, arbors and pieces of art are integrated into the design to create mood and comfort, as well as to compliment the home's architectural style and your budget. All of the senses are realized through the use of colour blocking techniques, the application of natural materials to create texture and the use of aromatic plants such as lavender and heliotrope to create a calm, soothing atmosphere. Fountains or water gardens, surrouded by greenery further enhance the serene setting.

The change of season is celebrated at My Front Door with fresh greens and flowers, custom urn design and door adornment to further personalize the outdoor space. For spring revival, striking bulbs, grasses and lush perennials create beautiful statements in large scale containers of stone, iron or ceramic. These are nestled in amongst seating arrangememnts of richly coloured outdoor wicker, iron or traditional teak furniture. A seamless transition occurs into the sizzle of summer by adapting the outdoor space and surrounding garden beds with vibrant, lush summer plant material, a rich wreath of ivy, soft greenery and hydrangea on the front door. The thoughtful placement of colourful pillows, accessories and lighting make the outdoor room truly inviting.

Partners Jackie Kulach and Debbie Higgins combined their love of design and the outdoors into this unique endeavour. With specialties in both Landscape and Floral Design, their natural flair and passion for their work is evidenced in every project.

The entrance to your home should be as welcoming and comfortable as any room on the inside. Please call us at My Front Door for an appointment to discuss or plan your garden design (416) 571-4878.

Regards,

Jackie

Ask An Expert?...

As promised this space is reserved just for you. Please send any questions you have to my e-mail. You get to have a free telephone consultation with the "Expert" of your choice. If you subsequently choose to establish a business relationship with that person/company then you should define the specific details of any business contract with that person or company!

mail@rosemarywright.com  and I will get you an answer or connect you with the Appropriate Expert.

• Ask A Lawyer?
• Ask A Painter?
• Ask A Surveyor?
• Ask A Designer?
• Ask An Accountant?
• Ask A Tradesperson?
• Ask A Home Inspector?
• Ask A Financial Adviser?
• Ask A Colour Specialist?
• Ask An Insurance Broker?
• Ask An Interior Decorator?
• Ask A Web-Site Designer?
• Ask A Kitchenware Retailer?
• Ask A Landscape Designer?
• Ask An Employment Lawyer?
• Ask A Banker/Mortgage Broker?
• Ask A Firecode/Retrofit Specialist?
• Ask A Garden Sculpture Specialist?
• Ask A Basement Waterproofing Specialist?

The above article(s) provide information that is of a general nature only and is never intended to be a substitute for advice specific to your particular concern. No one should act upon such information without appropriate advice and/or consultation.

Please Call Me With Any Real Estate Questions.

I’m Always Here To Help!!!

-Rosemary Wright...

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Client & Networking referrals are the foundation of a successful real estate agent’s career.  Over many years in this industry I have enjoyed the confidence & repeat business of my clients.  I appreciate your on-going support and want you to know that I will always look after friends & colleagues you refer to me with professionalism, care and respect.

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The intent of the newsletters - "Real Estate Bits " & "Real Estate Bits -2" is to provide information to you regarding real estate. Personal details such as your name, contact information and address are never revealed to anyone without your consent. In accordance with the new Privacy Act, your consent must be given (either implicitly or explicitly) to receive these newsletters. If you do not want to receive my newsletters - please notify me. My newsletters are not intended to solicit Buyers or Sellers who are currently under contract with any Broker.

The information and opinions contained, statistics and articles are courtesy of TREB, CMHC or other individuals or companies and are believed to be reliable, but their accuracy is not guaranteed. Sutton Group-Bayview Realty Inc. and Rosemary Wright accept no responsibility whatsoever for any loss arising from any use or reliance on the accuracy and timeliness of the information contained herein. Every endeavour is made to ensure accuracy. These newsletters do not render financial, legal, accounting, home inspection or professional advice. They are for general educational purposes only. They do not offer do-it-yourself advice. We encourage you to always contact the appropriate professionals or specialists to address your individual needs.