Townhomes in Orleans – A little analysis

I recently dug into the sales activity in my neighborhood of over 27 years – ORLEANS.

I wanted to look at the most popular housing in my age group – TOWNHOMES.

I identified what price ranges all the activity is happening in – here it is (I plotted it in an MS PAINT graph to make it easier to understand):

 towns

 

As you can see, most of the activity flows around 250K.

Lets say you put 5% down, or $12,500 – your mortgage amount would be $237,500.

Your MORTGAGE PAYMENTS would be around $1,070.00 with todays posted rates from one of my recommended mortgage brokers.

Are you paying more than that in RENT right now? I sure hope not!

You should know, this number does not include payments on  mortgage insurance or property taxes – which you can very well pay seperately.

One last thing – almost all of these towns sold within a 1km radius of Innes and Tenth Line!

Coincidence that this is the kind of house I’ve been helping people buy in that area?

I am where the market needs me to be!

 

Cheers

Make a Big Splash this Summer!

A backyard swimming pool can be a joy to own – especially on those really hot and humid days. By keeping to a consistent maintenance schedule and following strict safety guidelines, your pool will provide hours of enjoyment cool relief from summer’s heat.

To keep your pool at its best and your family safe this summer, the Ontario Real Estate Association offers the following tips.

Safety first Although a pool is fun, fun, fun, it can also be dangerous. Each year a number of children drown in backyard swimming pools so attention to safety is critical.

Before beginning your swimming season, review the importance of strict safety guidelines with every member of the family. Be sure everyone knows the rules and informs any guests of those rules too. You may even want to consider taking a pool safety course from your local Red Cross.

Here are some pool safety guidelines from Health Canada:

  • Check with your municipality to find out the rules for putting up a fence around your pool.
  • Build a fence and a gate that will keep children away from your pool.
  • Keep the gate locked at all times.
  • ALWAYS have an adult watching children in and around the pool.
  • Children under the age of 3 and children who cannot swim must wear a life jacket or PFD (personal floatation device).
  • Send children to swimming and water safety lessons.
  • Make sure lifesaving equipment and a first aid kit are handy.
  • Take a course on pool safety, first aid and lifesaving skills (such as CPR).
  • Have emergency phone numbers listed at the telephone closest to the pool.
  • Make sure toys, garden furniture and tools are not near the pool fence. Children can climb up on these things to get into the pool.

To learn more about water safety and learn to swim programs, please call your local Canadian Red Cross Society, or the local Branch Office of the Lifesaving Society.

Sparkling water Keeping your pool crystal clear and sparkling does not need to be a challenge. A proper maintenance schedule can make the chore of pool maintenance a breeze.

  • Use a pool leaf skimmer to remove any floating debris.
  • Frequently check and clear the drainer baskets in the skimmer and pump for excess debris.
  • Vacuum the pool at least once a week or more especially following a heavy rainstorm.

Some pool owners prefer to use an automatic pool vacuum that remains in the pools at all times. With this device, manual vacuuming is rarely required. If you are vacuuming the pool yourself, begin by brushing down the walls from top to bottom. If your pool surface is vinyl, you can clean the “bathtub ring” with a vinyl pool cleaner and a sponge. Keep your filter clean by rinsing it with a garden hose. A clean filter will ensure proper circulation and flow of water through the pool jets.

Clean your deck area by using a garden hose and direct the water away from the pool to keep dirt from getting into your clean pool.

Depending on your type of pool, you will need to test your water and add the correct balance of chemicals to keep your water safe, hygienic and clear. Your local pool store will test your water free of charge and recommend the proper chemicals you will need. Many pool owners prefer to hire a professional pool maintenance company to provide weekly cleaning and inspections. Prices vary depending on your service contract.

Although it is relatively easy for a homeowner to open up the pool for the season as well as close it in fall, pool maintenance companies will take care of it for you for a fairly reasonable price.

Take the time to learn about pool safety and maintenance and you will make a big, safe splash this summer!

pool2

Rate Advisor and CMHC links by John Walsh

Hi Everyone,

I recently received a quick mortage rate update from our friend John Walsh, as well as a few helpful CMHC links. Enjoy!….

Folks,

I don’t know about you, but for me navigation of the CMHC site is like poking myself in the eye some days.

I did a completely unrelated search and found a series of, well, what I have to term useful links.

http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_002.cfm
http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_003.cfm

First link to help folks calculate online what they can afford as far as mortgage is concerned. Step by step.
Second link give a list of all “related” expenses to buying a first home.
In the list they mention “hand tools”. I say “power tools”, but then again I am a guy. 🙂
That portable table saw has to be the most useful item I’ve ever bought, which reminds me I have to go build a square foot garden box for mother’s day.

johnwalshupdate

This is what a Fortune looks like when it is born.

Remember my rant about the best things in life being free? Free things like information?

Remember how I said some people would find it scary that I would make this information public to you, since they would rather make it seem like they came with the information themselves, or they would rather bait you with it?

Well, too bad for them…

I want you and everyone to have this information so we can elevate ourselves in terms of our savviness, real estate positioning and subsequent financial success. Let’s all have incredible properties!

Here is a start – INFORMATION. This stuff is actually PUBLIC information – but I doubt any of you know how to access it!

First up – Month over month information. Remember all the buzz about a recession? Lets look at Ottawa activity, month over month since 2003.

Graph2

See the 2009 months I highlighted? (the ones we have gone through already) On average, ther are not too off from 2008 averages – slightly above in some cases, slightly below in others.

See the decline in 2008 prices from about June to December (in red?) Then our latest few months have indicated an INCREASE!

Now look at a specific batch of years by month. lets look at January for arguments sake (first one). 2003 to 2009 = see the increase? A little over 200 to just under 290 in 6 years!!

These numbers are from the Ottawa Real Estate Board a.k.a the horses mouth – so dont just take my word for it!

 

Here is another quick one: Year over year since 1996 – so 13 years and a few months

Graph

What does that say – about 137.5K to about 268-270K ?

Think about that… if you bought a house for 137.5K ten years ago, you would now have 132K in appreciated equity PLUS whatever the principal went down to over time, PLUS whatever POSITIVE CASH FLOW you would have earned over time as a result of making the most out of your equity in your house (i.e. after 5 years, taking out equity to finance a low maintenance investment property that earns you hundreds of dollars a month IN YOUR JEANS).

Ever feel like wealth is just too far out of reach to even properly imagine? Ever wonder how people have made their fortunes, and dream of having seemingly endless supply of cash to rely on?

I do! All the time! Thats why I got into this business. To build wealth over the long term and to pass that on to my family and future generations.

This is what a fortune looks like in the beginning.

How about over a longer period of time? Here you go! (from an earlier post)

avg-sales 

Imagine what kind of Fortunes a 60 or 70 year old person could be leaving his family based on these figures!

Imagine if that person would have properly leveraged themselves in Real Estate and grown their portfolio over time!

Pick yourself up some Real Estate for some of the best rates this country has had in over 50 years!

Bank of Canada will show you the record lows we are experiencing right now – Prime at 2.25%!!!!

CPI (Consumer Price Index – average price increase of a basket of goods) is down to 1.2% while the average wage increase is up to 4.3% this year! Purchasing Power is HUGE right now!!

I’ve given you the information – what are you going to do with it?

The Best Things in Life are Free

You know what really threatens people? INFORMATION.

Information about them, information about where they live, what they do, what language they speak, and what religion they practice.

One would think that we are fortunate enough that by living in Canada, we don’t have to worry about these types of differences causing any kinds of major problems, right?

Now I’m not so ignorant to think that small prejudices don’t exist and won’t impose themselves on people in their everyday lives –but there really isn’t any reason, in my opinion, to want to hide anything.

 As you know, I work in Real Estate. I am blessed to be doing something that I love, with co-workers that are incredibly devoted, and I get to work with people in an exciting time of their lives. One thing that I like to do with my clients – is provide them with INFORMATION. I give them insight into different areas and housing types, specific information and research on certain specific houses, sales history, sales trends, and surrounding sales comparables. Quite often enough, my clients are blown away by the resources that I have at my disposal – and rightly so. I think they are pretty darn powerful myself! After all, in this day and age, privacy is a thing of the past, right? My affiliations within Organized Real Estate (Municipal, Provincial and Federal) give me access to a tremendous amount of information from the Land Registry System, Statistics Canada, Various Boards of Director’s professional opinions, and a seemingly limitless amount of related professionals to tap into (Mortgage Brokers, Lawyers, Home Inspectors, Engineers etc). All of this is INFORMATION – and I am not afraid to give it to you.

 But there are people who are.

 Some people would rather hoard information as to make it seem like they are pulling magic strings and digging up this information from a mixture of expertise, elbow grease and connections in the marketplace. As a matter of fact – my mentor and Broker at Partners Advantage GMAC , Dr.Bruce Firestone, has advocated ‘free information’ for YEARS! On his personal website – http://www.dramatispersonae.org – he writes: 

 “MIT has taken the position that it will put all of its course outlines, course materials, even examinations on the web for free. The engineers at MIT are among the smartest in the world. They feel confident that this will enhance the MIT experience- essentially; they are saying that they don\’t care if someone on another part of the planet wants to teach a MIT course or use their material. They believe that the spread of knowledge can only benefit humankind. MIT will instead, as my friend Professor Tony Bailletti says, sell the \’delta\’ factor- that is, the opportunity to actually be in a classroom with the creators of the material; to be exposed to their minds; to experience first hand the Socratic method of student/teacher interaction”

 So where am I going with this? Here is my dilemma – I want to give out INFORMATION, and I am a week or two away from doing so. I want to provide my people with relevant information about their housing types in their areas so they can make informed decisions, have accurate opinions, and make good judgments about their own property values. How would you feel if you got a monthly report card in your mailbox that outlined the location and size of sales activity in your neighborhood? I think it would be pretty cool. I think it would not only help people as I described above, but I think it would help stabilize the equilibrium in our Real Estate market – albeit a small effect as it may be. What I mean is – people would not think their property is worth 30K higher or lower that it really is, as they perhaps would have had they not had access to such information I want to provide them with. People just don’t know! And its not their fault. I want to help. If the prices on the marketplace can more accurately reflect what their true market value should be – then the marketplace will be more efficient. People will sell their houses faster, no parties would be getting ‘ripped off’, and all stakeholders would benefit from the transparency and logic of free market influence. What is so scary about that?

 

As I said earlier – some people would rather protect that information and make it seem like they are the experts that came up with this information on their own, and it is part of their value proposition. Well – it is part of a Realtors value proposition.

 Here is the key – its only PART of my value proposition. A very small part. I would call it a given.

 I am not afraid to make that information available and risk a FSBO (For Sale By Owner) try to sell their homes themselves. I am not afraid of people taking this information and going to another Realtor out there. I am not afraid of other Realtors copying my idea and giving you the information in my place. Why?  Because the information is NOT what makes the difference between me and others. The information is FREE – take it. I want you to be more informed!

 Regardless of who out there has information – I would bet I am in the top 1% of the hardest workers out there in the game. The difference that I bring to the table is I push the limits of effort exerted for my client’s interests. I get out on the street and I work HARD. Part of my business model is to focus on my core competencies and make my own ground rules (within rules and regulations of course) that brings Real Estate activity to a platform where I am king – where I am the new common denominator and I do it best. I wont be part of the rat race and focus on getting the biggest ad in the paper, or getting the nicest pair of shoes to woo my clients. Im not about perception – Im about substance. I believe that people are savvier than ever and can recognize the difference between  style and substance.  A quote that I like is “You can pile on the lettuce and tomatoes and special sauce, but people are looking for the beef, the content that you offer”.

 So that’s my spiel. Style Shmyle. Im young, healthy, I exercise and dress well enough to hold my own in that department – but Im not going to pretend like that is why you should do business with me – because of my style. I don’t have to rely on an image to speak for me. My results speak for themselves.

 So take the information and run with it if you want – I can make it available and I plan on doing it soon – shake things up a little.

 But when you get tired running around between 8-10 different parties at once, trying to navigate legal documents, prepare marketing campaigns and sales strategies, crunch numbers, find and rationalize market data, negotiate price, terms and conditions, all while being at work or at home trying to eat dinner on a Sunday night – and potentially all for someone who is not qualified or experienced enough to hold up their end of the bargain – THEN you might think about getting a hard worker on your side. One that is smart, sharp, and able to get the job done.

 I am one of those people.

John Walsh on Pre-Approvals and Pre-Qualifications

Why it is important to get pre-qualified or pre-approved.
-first differences in the two terms
Pre-qualified -implies credit has been checked*, income verified, potentially some credit issues found that can be overcome, generally debt service ratios make sense, overall deal looks reasonable.
Pre-approved -credit checked* (no issues), income verified, debt service ratios work, potential property identified, either purchase or selling agent wants/needs/demands a piece of paper stating that financing will not be an issue.

*Please note that most banks do not pull credit in order to pre-approve you. This is a very dangerous practice, IMHO, as if there are problems with credit, they simply cancel the pre-approval, leaving the buyer in a panic mode.

-saving everyone time and effort.
What you think you can afford versus what reality dictates might be off by $10K or $100K. If you have that kind of cash just sitting around, then no problem. Most don’t. Make sure you are looking in a range you can afford. Save your agent time and effort negotiating a deal that you can’t afford and save your mortgage guy a few gray hairs trying to put a square peg in a round hole.

-identify any potential problems with your credit and fix them
Part of the pre-qualification from a broker is checking credit. Most folks don’t know the rules and figure their credit is fine. Mostly they are correct. Occaisionally, there are either mistakes on the bureau, which can be fixed with a phone call, or some long lost utility bill was not paid and has gone to collection for $50 and has subequently trashed your credit. This could take 2 months to fix. Fix it before you put in that offer and find out you can’t extend financing condition for 30 days while you run around and document the repair.
Simply put bad credit equals higher rates. That $50 collection could cost you and extra 2% points on your mortgage. Ouch!

-know the rules of the game
Simple things like self-employed people need two years history. Cash on hand has to be there for 3 months or you have to show the paper trail where it came from. And the BIG one, your taxes have to be PAID and up to date. This can be a show stopper.

-I offer free credit advice, banks don’t. It’s not in their best interest.
This is one of those services that you can’t put a price on. I’ve been down the path of bad credit and know first hand how to fix it. If I see that there is a problem, I will work with the client in order to fix the problem, rather than hand out a mortgage that will go power of sale in 2 years.

In short, be an informed consumer. Dont’ roll the dice and hope your banker will just give you money because you’re a nice guy/gal.

Warmest regards

John R. Walsh, B.Eng
Mortgage Agent with Mortgage Alliance
Licence Number: M08000603
Founder of O.R.E.I.O. www.oreio.org

613-237-7044 x148
888-474-0137 (toll free fax)

jwalsh@mortgagealliance.com
http://ForAllYourMortgageNeeds.com
blog: ForAllYourMortgageNeeds.com/wordpress
Twitter: www.twitter.com/jr2walsh

What’s Scarier? Jumping into the deep end, or being in it?

Alot of people would say that jumping into it would be – and it’s actually very true. People are afraid of the unknown, and are very hesitant to push their comfort limits whatsoever.

People that frequent the deep end will tell you that there is MUCH more room for you move around, you aren’t surrounded by the novices, you can fully extend yourself and even try some cool summersaults underwater. If you are really brave you can even get down to the bottom and pick up some blue, yellow and green rings!

Real Estate is no different, and here’s why – when the recession news hit, people got SCARED. Its ok, its natural. They saw the deep end and said, ” No way Hosé! Im not getting in there! I can’t see the bottom!” Some of these people already had their trunks and floaties on, and some were even about to get on the diving board.

A few brave souls jumped into the deep end because not only did they have a good idea of how to swim, but they knew there were professionals helping them every step of the way; just like instructors and lifeguards do in the water – REALTORS do in Real Estate. You know what these people found in the deep end? You guessed it – some really cool spots to explore and the confidence to know that they can make it where others were too scared to try. This market has seen buyers come in with cheap money and pick up some really good bargains.

Now that the deep end has been around a little while, people are starting to look at it again and think, “Ok – I’ll just put my legs in, its not so scary!” People are coming around! Here in Ottawa, we are blessed to have lower than National Average Unemployment rates, more stable incomes, and the SAME cheap money available to us! One of the reasons I personaly believe is causing this is the great number of public servants in our core – security and competitive pay, but thats another blog.

The point is that people are starting to become a little more comfortable and realize that the sky is not falling. People are coming outside, opening their eyes and starting to get out there and make smart and strategic moves again. Real Estate is all around, as are the opportunities – so get that swimsuit back on, squeak into those floaties and come let the experts show you how you can make it in the deep end!

The water really isn’t that cold, and there are some really cool rings down here.

The Client Knows its Overpriced…

So a client of mine sees a house they like from a search I provided them with. The next day we go see the unit, and the next day he brings his significant other with him to get her approval. THEY LIKE IT, and want to submit an offer! I dont blame them – the house was very nice, the layout was very functional in a unique way, and it provided JUST enough room for improvement so that they saw future potential but not at the expense of a headache of renovations upon their move-in. There was one thing however, that didnt make sense – THE PRICE. This particular unit was in a range of townhomes in Orleans that would normally  be much more palatable than this one, equiped with up-to-date hardwood and a new kitchen as well.  Something about the unit just seemed to be slightly outdated and outclassed by its competition in its respective range.

So what did I do? What any good REALTOR would – HOMEWORK. I went back to the office and dug into past and present comparables and adjusted the price of all the nearest comparables to see what they would go for at this very moment had they had the exact same features. The results were in – 20K overpriced! How had a seller, or even worse, a listing agent – overpriced by THAT much? Has the market appreciated significantly? No. Is this particular type of housing in shortage and in high demand? Townhomes in Orleans! HA! Not exactly…

So not only did I prepare the offer, with all the documentation and information for all parties involved, but I actually supplied my analysis to the other side and indicated that their ‘ballpark’ was in a completely different end of town! How had they overpriced so high?

Phone Rings.

Its the Listing Agent.

“Yadda Yadda .. (wait for it)… Yadda.. THE CLIENT KNOWS ITS OVERPRICED, and they wont look at this offer. I know its a good offer but they’re not in a rush”

Wait a minute.. they KNOW??? Do they also know that not only are they throwing ALL the comparables on their street off, but their unit will miss the search for people that are looking for houses in its acceptable range, and that this house will sit there and develop a negative stigma and eventually get low-balled? Do they not know its a BUYERS MARKET and there are better houses down the street, block and in every direction from them?

What they are doing makes NO SENSE. If they dont want to sell, get the product off the market. Here  my clients are, going to visit the unit TWICE (they live out of town) and go through the emotions of submitting an offer and waiting – just to hear that! How many others are going to have to waste their time? What about all the sales representatives that are putting in effort to make the market more efficient?

I am not in the business of ‘sitting and waiting to see what happens’. I am in the business of  SALES, and I help my clients BUY Real Estate for the best bang of their buck, or SELL Real Estate for top dollar. That does not include by ANY means, an inflated price just for giggles.

A suggested Market Price is something that SHOULD take a great deal of dilligence to arrive at. If a REALTOR does ALL their work and can properly support their suggested market price, it provides an undeniable basis of strength in negotiations.

That is what I provide my clients with.

I dont put signs up to have them float around for months on end just to see if I get any action. This isn’t fishing.

If you want a smart, hard working REALTOR that will REALLY work in YOUR best interests, give me a call or email me.

This is my passion and I pride myself on doing it right.

POSTSCRIPT: This reminds me of a home I went to view – a good old GRAPEVINE listing. The woman who was trying to sell her house was one of the nicest people I’ve ever met, and she was doing a terrific job of cleaning her house and making it welcoming. We asked her what about her slightly- high price is justifiable. Her Answer? ” Well theres no justifying it, its because some guy down the street didnt know what he was doing and underpriced his unit by about 25K.”

Think about that for a minute. Not only did that man LOSE 25K that he should have gotten in a free and efficient market, but now about 5 other Grapevine’s on the block were all stuck with no negotiating basis for their house! Not a strong one atleast! Whoever wants to sell their house out of the remaining 5 is going to have to say ” FINE, just take it, here is your discount”. What does that do to the remaining 4? You guessed it – a distorted market where inneficiency has caused them to LOSE MONEY.

Its a good thing good people like the Founder of our Senators Dr.Bruce Firestone is hiring a strong team of talented, young and good-hearted individuals to be the next round of REALTORS to work for Partners Advantage GMAC Real Estate and show this market what strong, independent and passionate people can do.