Money Matters...
(416) 932-3034
E-Mail: nino.pasquariello@scotiabank.com
According to a recent Royal LePage poll, four Canadians will be seeking recreational properties this year for every one owner who plans to sell.
The scarcity of supply, low interest rates, increasing interest from U.S. buyers, and the perception that property is a "safe haven" from volatile stock markets have combined to put upward pressure on prices. For many potential buyers, creative solutions are called for.
Whether you're interested in purchasing a lakefront property or a ski chalet, coming up with the funds can be tricky. Lenders typically view loans on recreational properties to be riskier than home mortgages, and may insist on a larger down payment or charge higher interest rates. But there are some strategies you can employ to help make your dream a reality.
Remortgage your home. Your primary residence is a good place to look for financing. If your home is worth more than your outstanding mortgage, you may be able to tap into some of its equity and raise extra cash - up to 90% of the present value. You could also consider taking out a second mortgage on your home; however, rates will probably be higher than on your first mortgage.
Resourceful financing solutions:
Along with rising prices, potential owners of recreational properties will have to budget for renovations, maintenance, and property taxes.
Renting your property. If you anticipate that you won't be using your vacation property for all the summer months (or if you intend to purchase a winterized chalet near the ski slopes that won't be in use during parts of the season), you might consider renting out your property to help with the carrying costs.
The Royal LePage Poll also revealed that 40% of potential buyers plan on renting out their property for part of the year. Having occupants when you are not there may also help to discourage thieves and vandals.
Tip: Be sure to save all receipts associated with maintenance, utilities, and insurance, as you may be able to claim tax deductions if you are drawing income from your property. Renovations also increase your capital base and can lower potential capital gains when and if you decide to sell.
To determine a fair rental price, ask around or check into classified and Internet listings and community bulletin boards to get a sense of what others are charging for similar properties. Listing your property with a rental agency can help you market it.
Don't forget that if you decide to rent out your home away from home for parts of the year, you will be responsible for ensuring that it is clean and habitable.
Tip: If you anticipate being out of the country when renters occupy the property, you might consider hiring a manager who can take care of maintenance and repairs.
Family ownership:
Another way to reduce your financial outlay is to consider a joint purchase with family or friends. A parent may consider buying property with an adult child who does not have a principal residence. If the property is in the adult child's name, this can help to save on capital gains taxes if you intend to sell during your lifetimes.
Siblings may also consider purchasing a property together. On the face of it, this may seem like an easy way to make a recreational property affordable, but potential problems can easily arise.
The most obvious is the use of the property - particularly as Canadian summers are short. Other things that should be worked out well in advance - and preferably put in writing - are who will be responsible for maintaining the property (work and costs) and succession planning.
Tap into local knowledge:
Local real estate brokers are a valuable resource who can help you in your planning and budgeting. They will understand the market and renting conditions and can give you good estimates on property taxes and annual upkeep.
If you are planning to buy vacant land on which to build a dwelling, they can also help you check into any building restrictions and local zoning regulation.
Ask yourself the tough questions:
With the recreational property market so tight, it pays to be honest with yourself and your family about what you really want. How often do you plan to use the property? Can you afford the purchase price and maintenance costs without having to compromise on the other things you want out of life?
In your planning and budgeting, you may find that it makes much more sense to rent for a month during the summer season, and still have enough left over for travel and other leisure activities. But if your dream of owning a recreational property is still burning bright, sit down with your mortgage lender and find a way to make it happen.
Regards,
Nino.
"Tricks Of The Trade"
Ain't it the truth? We all love a bargain - that delicious feeling we get when we've prevailed in negotiating the very best deal we can get. Sometimes it's possible to get a bargain and other times we have to accept the fact that it's just not going to happen. Having said that I thought I'd pass along a couple of neat places you can check out if you like to poke around looking for bargains. You never know what you're going to find when you visit, but if you're looking for re-cycled home and building materials, you can find items priced far below the cost of a new retail purchase. It's a fun way to putter away a lazy Saturday afternoon!
1) Habitat For Humanity Toronto Inc.
29 Bermondsey Road - Toronto (416) 755-7353 or 1120 Caledonia Road (416) 783-0686
www.torontohabitat.on.ca
2) Home Again Recycling Depot
89 Research Road - Toronto (416) 467-4663
Have Fun!
Regards,
Rosemary ...
Okay, Okay - Here's "The Joke"
A blonde was speeding down the road in her little red sports car and was pulled over by a female police officer, who also just happened to be a blonde.The blonde cop asked to see the blonde's drivers license. The blonde driver searched through her purse and was getting progressively more agitated when she couldn't locate it. "What does a license look like?" the blonde driver finally asked. The blonde policewoman replied, "It's square and it has your picture on it." The driver finally found a square cosmetic mirror, looked at it and then handed it to the policewoman. "Here it is," she said.The blonde officer looked at the mirror, then handed it back saying, "Okay, you can go. I didn't realize you were a cop."
Guest Columnist
Ms. Stacy McLennan
stacy mclennan interiors
Interior Designer
E-Mail: smi@rogers.com
416-769-0902
Who Am I?
My name is Stacy McLennan. I am a Registered Interior Designer and principal of stacy mclennan interiors. I have been working in the design industry for over 7 years. My projects include both residential and commercial design.
I was the winner of HGTV's first Superstar Challenge competition in 2003, and went on to host Kitchen Equipped on the HGTV network. With the influx of design shows on television today, there is no shortage of ideas for the home. It's important, however, that people approach any kind of renovation with a lot of thought and planning. That's where I come in! With my experience and knowledge in the field, I can introduce you to new ideas and turn your home into a place that you can be comfortable in!
In many cases, hiring a designer can actually save you money! An interior designer can help answer many of the questions and concerns that come along with any project, and you get it right the first time! Even if you're looking to sell, an interior designer can offer advice on ways to stage your home so that it is more appealing to potential buyers! I offer design consultations, as well as a full scope of design services, including construction drawings and building permit applications. For more information, you can contact me at smi@rogers.com or call me at 416-769-0902.
Whether you're putting your house on the market or you've just purchased a new home, there are some innovative and relatively inexpensive ways of improving your space without breaking the bank! With the kitchen being the "hub" of the home, I thought I would offer some helpful tips on how to transform your kitchen on a limited budget and without a lot of fuss!.
Get out your paint brush!
A fresh coat of paint is a sure way to give any kitchen an instant makeover! I suggest keeping your general paint color neutral, and adding splashes of color on accent walls or through the use of fabrics and kitchen products. This allows you to change things up more frequently, and you'll never tire of it!
Don't drain your pocket book!
If you want to add a little splash to your countertop without breaking the bank, look to replace an old faucet. A new faucet can really dress up your countertop without a lot of hassle or expense. There are a large variety of styles to choose from, so you'll be sure to find something that matches your kitchen décor. Keep in mind that a goose neck faucet is ideal if you have big pots to clean. The high spout allows for easy maneuvering of pots and pans, and it looks great!
Window shopping......
When it comes to dressing your windows, there's really no limit to what you can do! Adding a splash of color or pattern is a great way to really make a statement! Try to co-ordinate fabric treatments with seat cushions or area rugs. For something a little more contemporary, look to install wood or bamboo blinds.
You can handle this!
Sometimes, it's the little things that count, like changing up your kitchen handles. This is an easy and inexpensive way to instantly update your kitchen cabinetry. The selection is endless, so can really make a statement here! Tip: If you are mixing and matching your handles, it's best to stick with the same finish and change up the shape or size.
Let the light shine!
A dated light fixture or insufficient lighting can put a damper on things. Updating your lighting, or even changing the shape, style pr colour of a lamp shade cna ahve a real impact on your space.
Line it all up!
The way you display products can really make or break any kitchen! Countertops and open shelving can be great places to display items, but be sure to keep products to a minimum and avoid clutter. Try color blocking products on open shelving for an organized, contemporary look. This will give visual impact, and allows easy access to those items used most frequently.
I hope that you find some of these suggestions helpful! For more information or a consultation, please give me a call or send an E-mail. I look forward to hearing from you.
Regards,
Stacy.
Ask An Expert?
These are just some of the professionals who can help you with your home ownership concerns. If you subsequently choose to establish a business relationship with any person/company then you should be sure to define the specific details of the relationship or business contract before you proceed.
- 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.
Business Referrals:
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.
Please Call Me With Any Real Estate Questions.
I'm Always Here To Help!
Rosemary Wright
Sales Representative - Sutton Group-Bayview Realty Inc.
Bus: (416) 483-8000 Fax: (416) 463-0159
Web-Site: www.rosemarywright.com
E-mail: mail@rosemarywright.com
Direct Page: (416) 582-1216
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