TAXING ISSUES: Making and keeping your 2014 New Year's Resolutions

My New Year’s resolution is to save up for a new house; get rich; get in shape; help the less privileged; buy low and sell high; quit smoking; travel more; win the lottery! How many times have we heard these words uttered?

As you sit at the dining-room table with pen to paper, sipping coffee with the fireplace crackling in the background, pause for a moment before making that New Year’s resolution list and glance at the crumpled, faded list from last year. How many of your resolutions were actually accomplished? If you are like lots of other Canadians, then not many.

The new year is the time for us to put 2013 behind us and reboot for another year. It’s a great starting point to forget the old and embrace the new. It’s a time to pause and look at what has been accomplished and what still needs to be done.

No one is successful without goals and objectives that can be measured. Although, my accounting and tax background do not give me the expertise to help you lose weight or quit smoking, the approach to financial resolutions may not be much different. The old adage, “Life is what you make of it,” applies to accounting, sports, business and family goals alike.

Set realistic resolutions. “I want to look like I did as a teenager” is unlikely, unless you are one!

Don’t just say, do. Resolutions can’t be accomplished without action and following through. Stop talking about joining a health club, and do it. Regardless of what some so-called experts say, you can’t lose weight by sitting in front of your computer (although the eyes and fingers may get a good workout).

Having a plan and its execution is as important as the resolution itself. Without a plan, there will be no success. “This year, I would like to save for a home.” This is a great resolution, however how will you achieve this? How much will you need? Where will the savings come from? How and where will you obtain financing? Step one is to create a cash-flow budget. Identify how you can increase income and where you can cut expenses.

Set long-term goals, but make them achievable objectives that can be measured periodically. For example:
a: If you would like to lose 20 lbs. this year, set a weight-loss goal of three pounds per month.
b: If you would like to start an RRSP, contribute $X by the end of the year. This will be achieved by setting up an automatic payment plan with your financial institution. Pre-authorize monthly RRSP contributions.

Goals cannot be reached, unless you reach for them!

#CobblestoneRealty #RealEstate #NewYears2014 #SouthFlorida #Resolutions #BeRealistic

Tips for Decorating Small Rooms

If decorated poorly, small rooms can seem claustrophobic and uncomfortable. However, there are many design and decorating tips that can make the room look bigger than it is and give the illusion of space. Here are some decorating tips and tricks to making a small room look bigger: Choose light colors. Light colors make rooms look bigger and maximize the effect created by natural light. Dark colors make rooms appear smaller because they absorb light. Use multi-function furniture. Multipurpose furniture such as sofa beds, chest of drawers, beds with storage drawers, and extendable dining tables can all save space and help keep small rooms looking clean and organized. The more light, the better. If you can let natural light in, it will open up the room a lot. Make sure that any window coverings are sheer and/or pulled back. If there isn’t a lot of natural light in the room, adding more light fixtures will give a similar effect. Keep the room organized. Having too much clutter will make a room feel and look very cramped. Don’t cover walls with a lot of pictures. Limit the number of accessories in the room as well. Add mirrors. Mirrors give rooms an illusion of depth. Use a focal point and angle the mirrors toward it.
Cobblestone Realty LLC	Categories: General Real Estate, Helpful Tips, House and Home, New Trends, Opinion, Other, Places/Spaces, Real Estate Practices

Is your property photo ready?

So, the asking price for the property has been agreed upon and every room is edited and de-cluttered. The property is staged and the architectural features are highlighted – not the lovely assortment of figurines that have been collected over the years. Now the property is ready to be photographed and marketed. This is one of the most important details when listing a property for sale, because if the photos are not fantastic, no one will show up to see your house in person. Everyone looking to purchase a property is looking at the photos online first. The pictures need to accurately represent each room. Wide-angle photography is perhaps the most deceiving. Of course, it has its place in small rooms like washrooms, dens or home offices. But often, wide-angle photography completely distorts not only the furniture, but the actual space in the room. Any linear features in the room will be “warped” like hardwood floors, tiles, patterned carpets and even cabinetry. These lenses can make an arm chair look like a sofa. The interior of a small property looks like a 5,000-sq.-ft. home. All in all, a turn-off to potential buyers who show up and see something completely different than what they were expecting. A photograph taken on a normal setting will show the space in a truer form. Take photos showing the transition from room to room if possible. This allows the buyer to get a feel for the flow of the property. And remember to turn on all the lights and lamps, even if you are taking the photos during the day. When shooting your photos, consider what is in the forefront. Ensure each piece of furniture is as visible as possible. Stand in a corner of the room because often, the shots taken at an angle are better than those taken head-on. I cannot stress this enough: please clean and tidy each room. I actually saw a photograph online that had a blue recycle bin – yes, the one from the back lane – in the kitchen. The same property was represented online with unmade beds, piles of dirty laundry, and the ever-decorative overflowing ashtrays strewn throughout every room. Remember, the first impression is the only impression, so make it count!

Categories: Real Estate Practices, National Topics, House and Home, Helpful Tips, General Real Estate

Three Housing Predictions for 2014

As 2013 comes to a close, it’s time to look ahead to see what trends we may see in the housing market in 2014. 1. More inventory at higher prices. All the distressed property from the last 5-7 years is starting to dry up. Sellers will likely see better profits than they have in years. Homes right now are priced to cater to sellers, and we will likely see the end of the “buyer’s market.” 2. Mortgage rates will continue to rise. Mortgage rates have risen over the past few months and the positive trend seems to likely continue throughout 2014. 3. Mortgages will be easier to get. Higher mortgage rates have cut refinancing activity and pushed banks to ramp up their purchase lending. There are also new mortgage rules coming out in 2014 that may cause banks to be more willing to lend. What are your predictions for the 2014 housing market? #CobblestoneRealty #RealEstateTips #SouthFlorida #HousingMarket
		Categories: Markets/Economy, Loans, House and Home, Helpful Tips, General Real Estate, Finance, Contracts/Legal, Service/Services, Real Estate Practices, Real Estate News, Other, New Trends, National Topics

Should You Buy a Distressed Property?

Many houses on the market right now are distressed properties. Distressed properties include those whose owners have defaulted or are about to default on their mortgages. In many cases, distressed properties can be less expensive that comparable homes for sale. There are a number of different types of distressed properties: Short Sale. In a short sale, the homeowner can't afford to maintain the mortgage. Rather than foreclosing on the home, the lender agrees to the sale of the property for less than the balance of the loan. Short sales give both lenders and homeowners an option other than foreclosure. Foreclosure Auction. Banks and other lenders will auction off properties that have been repossessed from homeowners who have defaulted on their mortgage loans. Foreclosure auctions are usually held at public facilities such as courthouses. The auctions are generally best left to investors with cash available to spend. All bids have to be backed up with the money for the entire sale price up front. Also, houses usually purchased at an auction are purchased site unseen. REO (real estate owned) Foreclosure. When people describe a distressed property as a “foreclosure,” they are usually referring to an REO foreclosure. These are bank or lender owned properties that you purchase directly from the lender in a process that is similar to a typical home sale. The advantages of purchasing a distressed property: A distressed home will sometimes be priced significantly lower than it would be sold for if it were not a distressed property. That doesn’t mean all distressed homes will be cheaper than all other homes that aren’t distressed, however. If there are a lot of foreclosures in an area, prices of non-distressed homes tend to be lower, too. In some cases of distressed properties, you can offer to purchase the home for less than the asking price. There is little to no emotion involved with a seller on distressed properties since you’ll be dealing with the lender instead. The disadvantages of purchasing a distressed property: Distressed homes take more time and effort to purchase. They require a lot of paperwork, and you might end up waiting a long time just to have your offer rejected. Depending on the property, it may need many major repairs. Many distressed properties have been vacant for a while with no continuous maintenance. Lenders generally sell distressed homes as-is. There is often a lot of competition when purchasing distressed properties with other buyers and investors. More competition leads to higher prices. If you have any questions about purchasing a distressed property, contact us today. We can guide you through the home buying process and help you determine if buying a distressed property is right for you.
	Categories: Opinion, National Topics, Markets/Economy, Loans, House and Home, Helpful Tips, General Real Estate, Finance, Contracts/Legal, Other, People, Real Estate News, Real Estate Practices

What Real Estate Agents Wish You Knew

For Buyers: 1. When looking to buy a home, do not get any new loans or use credit cards heavily. The preapproval letter is just the beginning of the process. Once you get preapproved, don’t run out to start buying things for your new home on credit. Just before closing, most lenders will pull your credit again to re-examine your financial situation. If your credit has changed since the preapproval, you may have a higher interest rate, or even worse, you may not get the loan. It’s best to maintain your frugality even after living in the home for a few months to get an idea of how much it will cost you to live in your new home. 2. Prequalification does not mean preapproval. In a prequalification, the lender generally doesn’t verify all the buyer’s information. A preapproval required third-party verification. If you are a serious buyer, get preapproved before looking at homes. That means you’ve already applied for the loan, your financial information has been verified, and you’ve been given a specific loan amount and interest rate. For Sellers: 1. Selling a home usually takes longer than you think. Most people underestimate the time it takes for a house to sell due to unrealistic expectations. These unrealistic expectations can often cause more stress. Make sure you communicate your expectations with your real estate agent then be open to suggestions and advice and a more realistic timeline. Give yourself a minimum of four to six months to sell your home. 2. The little details make a big difference. Your home needs to look good, feel good, and smell good when you are preparing to sell it. The home should always be ready to show. Messy rooms, poor staging, and odors will turn prospective buyers off quickly. Always leave a warm, comfortable, and inviting impression.

Categories: Service/Services, Real Estate Practices, Real Estate News, People, Other, Opinion, New Trends, Markets/Economy, Marketing, House and Home, Helpful Tips, General Real Estate, Advertising

What’s lurking behind the walls of your dream home?

For most Canadians, a home is the biggest investment they’ll ever make. It’s critical that homebuyers do their research and know what they’re buying before they sign on the dotted line. Having the information they need can help prevent surprises that can be costly to fix, dangerous, or even invalidate home insurance. “A home doesn’t come with a money-back guarantee, which is why it’s so important to be aware of potential issues before you buy,” says Henry Blumenthal, vice-president and chief underwriter, TD Insurance. “New homeowners need to know what they’re buying and ensure they can maintain and protect their most valuable asset, because once the ‘sold’ sign goes up, the buck stops with them.” Equally important as a home’s curb appeal is the cost to repair and maintain it, and the potential insurance implications that come along with it. The best way to understand a home’s condition is to hire a professional home inspector. A home inspection analyzes the structure and major systems: roof, exterior, electrical, heating, cooling and plumbing. By sharing the details found in the inspection report with your insurance provider, your insurer can help identify problem areas that could increase premiums, prevent you from qualifying for home insurance or require additional riders. “We provide homebuyers with information they need to make an educated decision,” says Bob Dunlop, president, Carson Dunlop. “Because every buyer is different – one person’s fixer-upper is another person’s nightmare – it’s not a question of whether a house passes or fails, it’s whether it works for a particular buyer’s needs.” When assessing risk, insurers are primarily looking at two factors: the frequency with which a particular problem tends to occur and the potential magnitude of the loss associated with the problem. Water damage is one of the most common home insurance claims and has the potential to cause major damage. Five years ago, water damage represented a quarter of the claims TD Insurance paid out; today it’s up to half. On average, water damage costs policyholders more than $7,500 to repair. A home inspector assesses a home’s vulnerability to water damage and can flag items like poor maintenance of eaves troughs and downspouts, improper installation of a basement backup valve, cracks in the foundation or an aging roof. “With a roof that’s 20 years old, the only guarantee you have is that it’s going to leak at some point,” adds Blumenthal. “An insurer’s unique insight and experience can help you make your buying decision. If your insurer isn’t comfortable with an item in the home-inspection report, you should take a closer look before you buy.” Other common items that a home inspector will look at that could ultimately impact your insurance premiums and eligibility include: » Plumbing and electrical. An outdated plumbing or electrical system can be a potential hazard if it hasn’t been properly maintained or updated. » Heating. An older heating system, such as an oil furnace, could leak and cause damage to your home and the surrounding area if not maintained properly. » Liability exposure. A pool that isn’t properly fenced creates a higher probability of an accident. » Previous renovations. If renovations were clearly the work of a corner-cutting do-it-yourselfer, they could pose a safety threat. » Smoke detectors. Without functioning smoke detectors there’s a higher potential for significant damage from a fire, including danger to you and your family. » Alarm systems. A functioning alarm system is a theft deterrent that could help lower your insurance premiums. “The inspection identifies what repairs need to be made and at what cost,” adds Dunlop. “Depending on your financial situation, what comes out of our report could have an impact on your purchase decision. It could even give you some bargaining power with the seller.” According to Canada Mortgage and Housing Corp., a typical home inspection is in the range of $500, depending on the size and condition of the home. “Buying a home is exciting and it’s easy to get carried away and overlook the details, but the most important thing buyers can do is take time to ask questions so there are no surprises,” says Blumenthal. “That way, they can feel confident that their new home is a safe investment and a safe haven.”

Categories: General Real Estate, Helpful Tips, House and Home, National Topics, Real Estate News, Real Estate Practices