Listen To Your Broker

by Darrin DeRoches November 18 - 24, 2010

I may sound like a broken record, but you need to listen to your broker!  HGTV is a great station to watch, but just because some famous designer says to paint it all beige or use a colorful bedsheet as a tablecloth does not mean it works in your area.  Hardwood and granite never go out of style.  Professional workmanship shows through. Decluttering is worth its weight in gold. Price it right!     I had a great listing this week.  A three plus one bedroom bungalow on the mountain with an updated kitchen and bathrooms.  On the way to the listing I was considering on pricing it around $219,000.  When I pulled up and saw the newer roof and windows plus some nice landscaping, things were looking up. Mountain homes in Hamilton are all very similar.  It seems as if three to four different styles were built after WWII. Some have had additions and renovations over the years, but they all boil down to the same layout and price.  Once I viewed the inside and saw the granite counters, Ikea kitchen, hardwood floors, vessel sinks and updated colors, I knew the word “SOLD” was coming soon.     We did all the pictures, created the virtual tour and then had to sit down for the big discussion: price! They wanted to price it at $235,000.  I walked in believing it would be around $219,000, but once I saw the inside I was more than confident it would sell at $229,000  After a good discussion, we decided to price it at $229,000 – not $229,999 or $229,888, just $229,000.  People think the number doesn’t mater, but it really does.  At $235,000 we would have missed a large market who can only buy up to $230,000.  Sure it is only five grand more, but a limit is a limit. If we priced it at $229,999 it is just saying to the market this house is $230,000. the $229,888 is a lucky number thing trying to say it’s not $230,000, and round numbers tend to say we are open and flexible.  Our price of $229,000 said we are at $229,000, the house is worth $229,000, and we are going to negotiate for $229,000!     This may all sound a little wishy–washy or touchy–feely, but agents do respond to price, pictures and comments. You are marketing your home and how you price it, present it and what you say about it sets the tone! Houses on the mountain sell in about 40 days on average and usually for close to their asking price.  This being said, some sit longer since they are trying for top dollar even though they do not deliver top dollar quality.  We had eight viewings in the first two days – in the slow month of November – and had an offer for full price which we then negotiated to over the asking price, all in just two days.  It was a pleasure working with a client who took the time to declutter, clean and listened to their broker. Some properties may require staging, some need cleaning. Who knows? Your broker should!  V                [DARRIN DEROCHES]

Sleepy November

by Darrin DeRoches November 11 - 17, 2010

Sleepy November is finally here and the market has begun to slow down.  The numbers for the year look promising, but the last two months of the year seem to be in for a slowdown.  The residential market usually begins to slow, but there’s always a blip in the commercial market. At the end of the year, there’s always growth in commercial sales, which creates a bit of upswing in the market, since companies need to “use it or lose it” within their portfolios.  So as winter approaches, what should you be doing in the real estate world?     Interestingly, it seems a lot of agents are jumping ship from one company to another.  It also seems that some companies are lowering their splits with agents and this may be the cause for all the movement.  So if all these agents are starting to make moves for the end of the year, so should you. If you are even considering selling your home, you should take advantage of the season to do all those last minute fix–ups before the weather changes.  You will be thanking me when the snow comes early and you are outside trying to spruce things up.  Think of the little things you can do now:  clean the windows; tidy up the yard; and check all the outdoor caulking.  These little fixes will pay big dividends in January when the market heats up again. By then, it will be freezing outside, but your clean and caulked windows will be letting the light shine in and keeping out any cold breezes.     The market always tends to pick up in January and being prepared now will make it easier to catch the upswing.  The market moves up and then down pretty fast in January so being ready may make the difference between a sale and stale listing.  Plus once the yard is tidy and the windows are clean, take a lot of pictures.  Most homes look better in pictures without snow covering the roof and yard.  These pictures can help you stand out in the dead of winter.  Take a ton of pictures so your broker can use them in a virtual tour; having hundreds of pictures is not uncommon. If you really believe you may sell in the new year, it would be a great time to contact a broker to have them walk through and do outdoor pictures, make suggestions on fix ups, and be prepared for the listing in the future.  If they are not willing to come and do the prep work then call another broker.     The market moves fast and the weather can change in a day, so a little thinking ahead will go a long way. 50 days till Christmas – get ready.  V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Barton Street

by Darrin DeRoches November 4 - 10, 2010

A little while ago I wrote about the hot places to invest in Hamilton: the new McMaster Innovation Park area and Pier 4. but today I want to talk about the hottest street to invest in real estate right now: Barton Street.  That’s right, Barton Street.  What do you think I was going to say, Hess or Locke? Nope. The number one street for real estate investment right now is good old Barton Street. Let me explain.     Barton Street from Queen to Wentworth has quietly been improving over the last couple of years.  The great transformation of James Street North is connected to Barton Street.  The General Hospital has recently completed a huge revitalization to the tune of about $90 million.  An old school across from the hospital is almost completely renovated; it’s going to begin a new life an apartment block shortly.  A vacant lot at Barton and Ferguson is being converted into a parking lot with a rumoured A&W restaurant and a new Tim Hortons.  Plus just one street north of Barton a $10 million condo project just sold 21 of 36 proposed condos in its first weekend.     Wake up people! Where else in the city is this level of money being spent? It may be hard to believe that Barton’s turning into such a good bet, but it’s true.  There are real dollars being spent on a street that has seen better days.  So my point is that if you look around the area of Barton and James, you can find some cheap real estate that will be worth more in the near future.  Sure it may take some time, but the hospital’s investment on Barton has already spurred action in the area.  James Street North’s revitalization is creeping its way down to Barton, and the condo project, a possible Go station investment, and the already present Liuna Station make this area a real up and comer.  Barton Street leads right into the Pier 4 area, which will one day be a huge success.     So if you are thinking of investing in real estate and are looking for a big future return, look at Barton Street.  You can buy an undervalued home and rent it out to carry itself easily.  The area is on a steady upswing and you can ride the wave. The fact that a $10 million  condo project is being built off Barton Street and that 21 units are already sold is a huge indicator.  I will go into this project more in a future article.  Sure there is the jail and Hamilton’s only strip club in this area, but in the game of real estate, there will be high returns on your investments if you invest in good old Barton Street!  V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Used Car Salesman

by Darrin DeRoches October 28 - November 3, 2010

The big news in real estate this week is that the Canadian Real Estate Association has agreed not to pursue the fight with the anti–competition bureau, which basically boils down to access to the Multiple Listing Service (MLS) for the average consumer. Real estate companies can now offer different rates on services. Everyone is reporting that it will become cheaper to sell homes in Canada – but will it?     When all this began, some real estate companies advertised that they charge from $300 to $500 to put up a simple listing which will appear on the MLS, and therefore advertise the property on mls.ca, which is the biggest website for real estate listings. So everyone believes they can now sell their home for $500.  You could already do this with the for sale by owner (FSBO) companies. They feel more and more consumers will go with their services, since they will now be able to list on the MLS.  The problem with this belief is there is a lot more involved in selling a home than just listing it on a website.      Let’s use the used car industry as an example. Their biggest website is probably autotrader.ca, and anyone can list their car on the site and be listed with other comparable cars. You can advertise it, take all the calls, show it, negotiate a price, do an inspection, write up a contract, collect the payment, transfer the car, and you’re done. Easy, right? But let’s remember the “lemon rule”, or “buyer beware”: once you buy it, you own it. You may be out hundreds or even thousands of dollars, and you can always sell it for parts. What happens when you buy a house?     The listing of a home can take a lot of work.  Just figuring out the right price is probably the biggest part of the job. The right price will not only make you money; it can also save you a ton of time and money. The advertising may cost you $500, but the open houses, the pictures, the screening of calls, and the showings all take time and money.  A reputable inspection, a proper legal contract, holding the deposit, etc. are priceless. Properly selling a home is a full time job and is worth every cent you pay.  The old saying  that you get what you pay for has never been so true.     The difference between selling your car and selling your home is usually about three to four hundred thousand dollars. Do you really want to trust this process to someone who is willing to take $500 to list your house? Or should you trust a reputable brokerage that will not only do all the work; they’ll do it for no money up front. They believe in the salability of your property to invest in selling it: they won’t just take your money up front and then try to charge you more for more “services” down the road. The biggest financial transaction of your life should be handled by a professional, not a used car salesman! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.c

Big Money In Investing

by Darrin DeRoches October 21 - 27, 2010

The investors put an offer in a great student house and then they started to rethink the total investment.  When figuring out their return, they started to second guess the deal itself until I had to break it down for them.     Let’s say you are buying a $300,000 investment home and you put down 20 per cent, so your mortgage Is $240,000.  So if you do a 35 year mortgage at around 5 per cent, you will be paying about $1,300 a month.  Gas, hydro, water and insurance will cost another $400, plus taxes at a max of $300, and you are into the property for $2,000 a month.  The six bedroom student house brings in $2,550, so you profit a big whopping $550 a month.  So what’s the big deal on the return?  You have a $300,000 house bringing in just $550 a month.     It is a 10 per cent return, for starters.  You invested $60,000 and are making over $6,000 a year – hence 10 per cent. Plus the house will grow in value by 2-3 per cent a year in Hamilton and after  five years you will have paid down the mortgage a little (depending on your terms), so that will account for another 2–3 per cent.  The reality is that you are making a 15 per cent return. Now it starts to sound like a great investment.  Tell me where else you are going to make a 15 per cent return and still have the potential to make more.     I sold a house in old Oakville three years ago for $400,000. They did a nice kitchen and bathroom remodel and they just had it appraised for $598,000. So take out the $50,000 for the work and they made $150,000 in three years. So figure out that return: depends what they put down, but they made $150,000 in three years.  Big money! You always hear these stories, but these were two that happened lately.     The moral of the story is quite simple.  Invest in real estate.  In everything there is risk and reward, but in real estate you can always make money in the long term. Sure, there are up and downs, but the risk is low and real estate in our area will always hold true. The beauty of the student rental is they can add one more room to the house and add another $5,000 in yearly income to bring it to almost a 20 per cent return, so you’d think the deal is a slam dunk.  I give it a 50/50 shot on the deal going through, since they are first time investors and if it was easy, everyone would have the stones to do it!  V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

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Student Housing

by Darrin DeRoches October 14 - 20, 2010

I had an interesting day taking Toronto investors on a tour of our fair city.  They are considering investing in student housing and we started out viewing student houses in the $200,000 range and ended up looking at homes in the $350,000 range – big difference.     Student housing around the McMaster area has grown as the school has grown. McMaster students are mostly from outside Hamilton and need affordable, safe student housing. Every third or fourth house is either a student rental or being converted into one.  The investors asked about the city zoning and legalities about all these homes.  Answering to those questions was hard, since the city seems to be gearing up to start cracking down on landlords while the school has a shortage of places for the students to live.  The basic homes need smoke detectors and windows in the basement bedrooms, but who is really stopping landlords from jamming seven, 10, or 11 students into three bedroom houses renovated to double or triple their capacities?  The city is always after the landlords to clean up their yards and clear their snow, but what limit is their when the porch, dining room, den and basement add five bedrooms to a three bedroom house?  Eight students are living in a three bedroom house.  They can afford it, the landlord is making a small profit, and the student needs a place to live.  Where is the limit, and where does the city stand on these issues?      Student houses are going for $50,000 to $60,000 a room, so a three bedroom house converted into a six bedroom house will go from the low $200,000s to $350,000.  Seems crazy, but if you spend $20,000 to convert the basement and the dining room into bedrooms which rent for about $400 each a month, the home now brings in $2400 to $2800 every month.  When you do the math, the house can now sell for $350,000 since the $2800 pays everything and brings in a monthly profit. But is it legal?     I am totally behind the landlords in providing the affordable space, but when will the city step in and enforce the standards?  We viewed a house where the description stated that there was “a separate basement apartment,” but it had no windows – none.  My investors loved the house and I had to point out the legalities and the safety issues.  The owners were asking near $350,000, and the house wasn’t even close to code. The city is starting to hire more staff to write tickets and enforce bylaws, which seems like a money grab. They really should be working with the landlords to bring the homes to a level which is safe and financially viable.  The zoning requirements, red tape and scare tactics of the city are hurting student housing instead of making it safe and affordable for the student.   V                         Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Face to Face

by Darrin DeRoches October 7 - 13, 2010

I had an interesting week in real estate this week.  We started off with a deal going bad because this arrogant big agent wanted us to rewrite the offer since he believed the initials for their schedule b was not in place.  So after rewriting the deal the sellers decide not sell their house and pulled it off the market.  The agent not only lost the deal – he lost his clients.      My clients lost their new house and were pretty upset.  Their house was sold and they need to be out at the end of the month.  So we hopped in the limo and started to look at houses, for the fourth and fifth time.  Friday rolls around and we are still looking.  We start the day looking at a smoking house, not smoking hot, smoking smells.  We viewed a couple more and we headed to the last one in our search.  As we drive up to our 28th viewing I was a little skeptical since it just came back on to the market.  The listing states “a beautifully renovated 2 bed starter or retirement home” and I am worried it is a “weekend warrior” slap together job.     As we view the property the client turn to me and say the magic words “I love it” So I call the agent immediately and find out what is going on with the property.  The people who originally bought this house had financing fall through so the house was put back up.  There are five more showings today and they think there may be an offer.  My clients want it so we go out to the limo and begin to write up the offer.  I am hoping we can present – fast – before anyone else does.  We are told we can present at 7:30.     We write up our best offer and wait.  As I am driving to the listing presentation I am informed there is another offer and we are now in competition.  F&@% comes to mind.  As I drive to the house I am thinking how we can present our offer to beat out the competition.  When I arrive at the seller’s home I am informed the other offer was emailed in.  Perfect.  I get to sit with the sellers and their agent and talk about the wonderful renovation and how my clients are the ones to work with.  Our offer is lower but a quick closing and no conditions makes it very strong. Before I step out to let them discuss the offers I leave them with the thought “work with us and the house will be sold before you go to sleep tonight” A few minutes’ pass and the agent come out and congratulate us and we sign up the offer.  The moral of this story is simple.  An arrogant agent and one who “mails it in’ are not the best choice when selling or buying your home.  Face to Face negotiations and service goes a long way, saves you money and will help secure your dream home! V                          [DARRIN DEROCHES]

New Agent Dilemmas

by Darrin DeRoches September 23 - 29, 2010

I was at an event last weekend, and I had a long conversation with a woman who just finished her real estate course. She was asking me a ton of questions: should she join a large company, or go with a small company?  She had interviewed at several different companies and was still unsure of her direction. Being a broker of a small boutique company, you would think I would just convince her to join me, but is it worth it to her and my company in the beginning?     When you first start out as a real estate agent, it’s hard.  You have no income and expenses can start piling up fast. If you join a large company, they will want desk fees, a cut of every deal, and if you are not selling, this can add up to over $10,000 in a year, and they will collect – even if they have to take you to court. So you can join a small company that will just take a bigger percentage of each deal, but will not charge you any upfront costs.  You will have to invest in business cards, signs, advertising, website, and a cell phone, and you will be an independent agent with either company.  So just pick the small company: there are no upfront costs, and you are on your way. Not so fast!     Depending on the company, you may not have the support or training a larger company will provide.  They have all the signs, cards, secretaries and mentors in place to help motivate you to sell, sell, sell.  They want you to sell since they are investing time and money in you. Having the recognition, logo and support may help you succeed while you learn the ropes. But it will cost you, and you may still not be any further ahead.      The woman I spoke with admitted she was only going to be part time, and that she can be a little lazy and needed coaching, so I suggested she went with a company that had a good exposure in her city and would not make her pay upfront fees.  A smaller company may take her on at a higher percentage to make a little money without having to spend too much time mentoring.  She can learn how to sell, invest in herself, and when the time is right go full time and make it her career.     I would have asked her to join my company, but when she admitted she was a little lazy and was not going to be a full time job, I thought it would be best for her to join a company that will be willing to have her part time.  I can work with part timers, buy lazy does not work.    V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Back To School

by Darrin DeRoches September 9 - 15, 2010

Back to school means that it’s time to sell your house. The market has been steady throughout the summer, but it will start to move in the next few weeks and you want to be ready for it. Once the kids are settled into school it’s time to get moving if you want to have a new home for Christmas.  It will take at least 30 days to sell your home which brings you into October and 30 to 60 days to close on the new home, which will bring you into the first week of December.  So bing bang boom if you are considering selling it is time to get moving.     Summer is over and if you are going to buy or sell real estate you need to be ready to move fast.  Once you list your home showings will come fast and furious, so all those little fix ups have to be done immediately.  Prospective buyers will be looking to make offers fast, since they do not want to get into competition.  When you do get an offer they will be looking to move in as quickly as possible, so 30 to 60 days will be in the contract and you will have to find your new home fast.  This time of year is usually the busiest. Houses will be moving, so be ready.      When buying a new home in this fast moving market, be prepared.  Get pre approved for your mortgage, and get an agent who is on top of the market and is ready to move as fast as the market. You have to be ready for competition, and with competition, you have to be ready to compete. Do your homework, know the market and walk the neighbourhood so you know exactly what you are about to buy.  If you are totally prepared you will be able to make a fast, knowledgeable decision on your next home, and by doing this you will be able to beat your competition to the offer desk.  Being the first to make a strong offer will help your odds on securing your dream home.     An increase in listings will give you more options, but there will also be an increase in buyers looking to enter the market.  A good agent knows where the market is going and will be able to negotiate you through this time.  An ill prepared agent can cost you thousands in missed opportunities.  If they hesitate to list or do not make the offer immediately, you may lose out.  Overall you just need to be aware of the market you are entering, hire the right agent, and move fast to get your dream home! V                       [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Update Of The Market

by Darrin DeRoches August 26 - September 1, 2010

Things are usually pretty slow in real estate during the summer months, but the phones are still ringing.  It seems student homes are starting to pick up and other listings are quietly starting to move again.  The market starts to move in mid–September, so people may be looking now to avoid the competition that is just around the corner.  The beginning of summer student income houses were flying and it slowed down for two months, but last week the inquires were up and people are looking to buy a home just three weeks before school starts.  In the last month all the inquires were about commercial properties. Single family homes were quiet, but come September they will heat up again.     The market tends to have these upswings and slow periods year in and year out.  Understanding the swings will help sell your home. I have sold homes right before Christmas when things are the slowest, and understanding that the seller would love to have it sold before the family came over made the negotiations fast and furious.  If you are thinking about selling your family home you really should be ready by the second week of September.  The market will heat up and there will be more competition, but there will also be more buyers.  Buyers are taking their time right now and that will all change in three weeks.     Fixer uppers and unique homes should also consider entering the market in late September, since people who are looking to fix up a home usually look for a winter project that will keep them busy inside during the cold months and have it ready to resell in January.  A unique home may take longer to sell, so you would like to have the next 90 days to try and sell, since it’s usually the busiest time.  Everyone will be done their holidays and the kids will be back in school – the next step is to sell or buy a home.     So take this opportunity to do those last minute fix ups, and don’t forget to take lots of outdoor pictures.  Everything is grown in and looks its best right now.  The leaves will be changing sooner than you think.  If you have all the pictures to display in your virtual tour, it will present your home in its best light, even in the dead of winter.  The market is slowly starting to move again and will be in full swing before you know it.  If you are even considering a move in the future, take your time now to get ready: it will pay off in the future. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Buying Beats Renting

by Darrin DeRoches August 19 -25, 2010

I was sitting on a patio recently enjoying a few pints when the people at the table next to me started to discuss whether or not they should buy a house.  I really wanted to jump over to their table, introduce myself and tell them YES, buy a house!  But since I was enjoying my pint I just sat there and listened to their conversation about the pros and cons of purchasing property.     One guy was making his case about buying a duplex on Homewood; it had dropped from $325,000 to $275,000 and it would be totally worth it.  His buddy went on to say he pays $850 for an apartment and it’s not worth buying a house because how are you going to afford it?  The third said, “I’ve done the math and it is not worth it, just keep renting!”   I was finishing my pint and so wanted to jump into their conversation, but eavesdropping was probably bad enough so I bit my tongue.     The guy who wants to buy is a pilot – making money and is now thinking about investing in his future – he should buy!  His friends do not have the luxury of walking into a bank and saying “I am a pilot and would like to get a mortgage.”  Approved!  The pilot is discussing his future with a friend who can only afford to rent and a friend who has done the math. Great advice.  The truth is if the pilot can afford to purchase a property, he should, whether it’s a duplex, condo or townhouse. He may be travelling around the world, but he wants to come home to a place he can call his own.      They went on about the down market, the math, and how cheap rent is.  All bullshit!  They cannot afford to buy a home, so they rained on his parade.  If you are thinking of buying a home and you can afford it, buy it!  After two years you are ahead of the game.  After five years you are making money and after ten years you should have an investment you can start to use to further your future.  The old saying that you cannot go wrong with real estate is so true.  The real estate market is tied to our economy. Yes it will go up and down, but mostly it trends upwards.  Your safest bet is always real estate – do not second guess it!     I should have put my pint down, sat with the group, and ranted on and on how real estate is the best investment. If you honestly feel it is time to buy, buy!  Do not listen to your friends’ advice – they are simply house blocking you.  Nobody wants you to better yourself and leave them behind.  Do what is best for you and buy a home you can afford.  But one word of advice:   if you buy a duplex, do not rent it to your friend. Never mix business with friends or family. V                           [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Know Your Neighbourhood

by Darrin DeRoches August 12 - 18, 2010

I had the pleasure of enjoying the Festival of Friends this weekend and while I was walking to the park, I noticed that the neighbourhoods are looking great.  I grew up in the Gage Park area and just sold two properties in the neighbourhood, and was pleasantly surprised how good the area is looking.  There are large, grand homes that are in excellent shape.  There are good schools, a huge park and easy access to transportation. The Gage Park area has always been a great area to raise a family in, and after walking the area, I’m convinced it’s a great place to invest in too.     The point I am trying to stress is to walk through the neighbourhood you are going to live in. I grew up in the neighbourhood and ran the streets for years, but to walk the streets and take time to look at and feel the surroundings gives you a better understanding of where you are investing your money.  I always suggest clients use Google Earth to view a property they are considering so they can see the whole area and potential benefits or downfalls.  You may be surprised to find parks or waterfalls in your potential area, but you may also find a dump or cemetery.  Driving around in your car may give you a feel for the property, but nothing beats hitting the pavement and walking the neighbourhood.     While you are on your stroll you can look at how the neighbours are keeping up their homes, you can see if there are any new homes being built or if there are proposed zoning changes; you may be surprised at what you find just strolling around.  I always like to look at the cars in the driveways.  They do not have to be brand new and high end but clean and well kept.  If you notice broken down and abandoned cars, you may want to rethink your purchase.  Finished driveways and clean cars shows a sense of pride in the area.      The festivals in the park are a great community event that you may enjoy while living in that neighbourhood.  The festival may have showcased a lot of great entertainers, but it also showcased the neighbourhood itself.  I was with a client who took a close look at homes as we strolled and started to consider adding this area to her search.  I would not be surprised if people who came from outside our city also took notice of the neighbourhood and left with a better view of Hamilton.  My only complaint with the festival is that they were serving Lakeport.  Labatt’s closed our brewery and eliminated over 200 jobs, and the only option was Lakeport beer.  I understand they help support the festival but I am sure other breweries would support us and we can in turn support them. V                           [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

New Stadium Location

by Darrin DeRoches August 5 - 11, 2010

West harbor or East Mountain? Location, location, location.  In every real estate transaction, location is the deciding factor.  The location of the proposed new stadium is the sticking point for our future as a city. The city of Hamilton has allowed a private company (Tiger Cats) to dictate the location of a community stadium.  We have now lost the premier event of the Pan Am Games track and field, and now  we’ve been thrown a bone with soccer. We may lose the stadium altogether if these delays continue, and once again Hamilton will lose out to Toronto. Who the hell is running this city anyway?     The Tiger Cats are saying that they will never play in the West Harbour – fine.  Let them keep playing at Ivor Wynne Stadium and maybe they can start paying rent.  We subsidize the stadium’s rent and we pay for the tickets to keep the team afloat, but we let the Tiger Cats hold us hostage over where the stadium should be built.  If they do not want to play in the new stadium, we can always get a soccer team to play there, with twice the games, which will bring more revenue and exposure to the city.  I have always supported the Tiger Cats.  When they put the first astroturf in Ivory Wynne, my family was there playing football on the field.  I have been going to games for 40 years and will continue to go for 40 more, if the present owners and management remember who pays the bills: us, the community.      The Future Fund is been allocated to help build the stadium downtown.  If they want the stadium on the mountain, then they should pay for it themselves.  They advertised that “[they] know stadiums”; again, if they don’t like, they should build it themselves.  The West Mountain is the worst location for a stadium they could pick.  It’s about government money and subsidies, not location.  Who really cares if you can read the name from the Linc? You will not be able to see it anyways.  Increased traffic on the Linc and Mud Street will cause congestion all the way back to the QEW.  There is road congestion every time a movie lets out with a couple hundred people, not 25,000.  The West End location is no better or worse than the harbor location.     You can argue the fact stadiums do not work in the suburbs, you can argue access, you can argue naming rights, and you can argue pie in the sky commitments on future funding. Stop arguing, make a decision and move forward.  The stadium argument is about the location for a private company to make money.  It is our money building the stadium and the community should make the decision.  Hamilton has to stand up and make the decision, not the Tiger Cats.  If they want to make money in naming rights, they should pay us the rights to put Hamilton in front of their name.  I believe they lost that right in this back door dealing mess they have created. Oskee wee wee .V                           [DARRIN DEROCHES]

Adult Communities

by Darrin DeRoches July 29 - August 4, 2010

I had the strange pleasure of showing my aunt a couple of different options for her retirement home purchase. She is about to retire and return home from abroad.   The first home we viewed was a lovely townhouse in an older part of Ancaster.  Before we looked at the property we had our doubts due to curb appeal.  Once we got inside the townhome, everything changed.  It was a lovely two bedroom end unit with a private garden and all the updates.  It looked like we may have found the perfect home right off the bat.  We then went to a freehold townhouse which was priced right, well appointed and in a lovely neighbourhood.      Then, we ventured to a true “adult community.” These communities consist of townhouses, condo apartments or free standing units which share a central community center that has facilities like a pool, tennis courts, putting greens, and social events like line dancing nights and cards. Sounds like a lovely place to live within a community of people in the same age group and and with the same interests.  There are even weekly bus trips to the casino. Sign me up!  We viewed two different communities and they both had their advantages.  Locations, amenities, price – everything lined up perfectly.  Now the decision: adult community or independent living?     As we drove back in the limo we started to talk about the different things the properties had to offer.  The pool was great, but how often would you use it?  Line dancing was appealing (for my aunt, not me), the monthly costs and the price to buy were  almost the same, so which way should she go?      This was not only her challenge, but mine also.  I view my aunt as a young, vibrant retiree.  Her mother lived well into her 80s – she has a good 20 years ahead of her.  She was concerned she would not want to move again. So which way should she go?     My major stumbling blocks with the adult communities is just that: community.  As a widow she can gain new friends and have the support of the community.  But what if you do not like those who live in this adult community? There is the pool and the putting green, but you can always join the local pool.  Line dancing and the casino?  Bus trips are happening every day regardless of where you live.  I had to explain the community may be great, but if she were to buy the townhouse, she can walk to the pool, banks, shopping, trails, and more.  The community is all around her!     So it came down to having to move again.  I cannot tell the future, but when the time comes where one must either go into assisted living or a hospital, that is the final move. So I would lean towards living in the community she has always enjoyed, join groups and go on bus trips.  Walk to the local store and forge new interests and activities.  She has to make the life decision on her real estate purchase and I can only help her through the questions and concerns.  Real estate is more than just a place to call home; it is a community and a lifestyle which fits you best. One must take the time to understand the real decisions in real estate. V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Rising Interest Rates

by Darrin DeRoches July 1 - 7, 2010

Everyone is starting to write about the rising interest rates, the HST and a cooling housing market.  Before everyone goes crazy and starts another mini recession, let’s not forget that interest rates are at a historic low (the lowest in 40–plus years), so of course they have to rise.  The HST will just be a bump in the road. The government knows how to raise taxes at a time when no one is paying attention: the same weekend school finishes for the summer and the week after the G8 and G20 summits – which will no doubt still feature heavily in the news.    The housing market always slows down for the summer and around Christmas.  Everyone has to deal with family and vacations, so naturally buying or selling a home is not a priority.  The market will get back on track in mid September when everyone is back from vacations and the kids are in school.   Comparable sales are down in real estate, but once the tallies are added for this month we will see a spike since a lot of deals are being completed before July 1 to avoid the HST.  So when you look back on the year, you will still see an increase in sales of real estate.  Do not let the monthly numbers sway you in your decision to buy or sell.    The HST is here to stay so we have to get used to it.  I was reading the booklet the government sent out to explain the HST and the biggest hike in taxes is on gas.  Everyone is talking about new homes over $500,000 having HST, but I think the extra 8 per cent on your fill–up will affect everyone.  If filling your tank costs you $5000 a year, it will now cost an extra $400 in tax.  Compare that increase with the average person buying a home over $500,000.  I just love how the government makes everyone focus on housing and HST when your gas bill, hydro, water and filling up your car will cost you way more than HST on a real estate transaction.    Interest rates are going up and they will probably make a good jump in the near future.  If we look back to when the rates dropped, they drop by half a point at a time. When they rise, they will probably do so in the same fashion.  So let’s not get all caught up in the media hype about HST, interest rates and a slowing market.  This hysteria the media causes is just the government using them to divert our attention from the real issues and costs.  The government controls the interest rates and in turn controls the media. Everyone will be writing about the real estate market when we are getting nickeled and dimed at the pumps and in our homes when we pay our utility bills.  This grind will cost you way more money than real estate ever will.  Real estate will always make you money, even with costs, commissions, and now HST added on.  Gas and utilities are the real problem; maybe we should be focusing on going green! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Condos In Hamilton

by Darrin DeRoches June 17 - 23, 2010

Every time you drive into Toronto you see a new tower of glass and steel; thousands of new condos are hitting the market.  The self–proclaimed “condo king” Harry Stinson left the city and came to Hamilton to create several condo projects.  I have only read about his projects and it is advertised his new project, the Hamilton Grand, is already 50  per cent sold and all they have done is put up a website and a sign.  He has another project, the old Stinson School, which is very unique.  I have never had the pleasure to meet Harry, but I applaud the work he is doing and wait patiently to see the shovel hit the ground to start the project.    The project that interests me the most right now is the Film Work Lofts at the corner of King William and Catherine streets.  It is the old Spectator building that began a conversion years ago, went bankrupt and then a man who I have met bought the failed project for $3,101,010 (you now the pizza number).  He has taken this failed project, made the right changes and has sold over 80 per cent of the units before his proposed launch this week.  This is all happening in Hamilton in the condo market.  Years ago, the Bell Lofts sold out faster than any other project in Canada (I’ve been told) right off the plans, years before construction.  This building located right across from city hall still holds a niche as the condo tower to live in.    There have been other very successful condo projects in the city (Rebecca Lofts, Allenby School, etc.) and more coming (Herkimer at Bay).  There are other builders taking older buildings and creating new condos throughout the city.  Most Hamiltonians would be surprised people are shelling out over $3000,000 on condos in the downtown core.  The average condo built in Hamilton is going for around $200–plus a square foot. In Toronto, the average is $500 a square foot. The quality is all there, from stainless to granite and nice ceramics: you are getting a well appointed condo for a fair price.    The last big question is the dreaded condo fees.  They start low in new builds and are up to about $450 a month for a 1000 square foot condo.  It seems a lot of money to spend monthly, but with the higher fees you get more amenities (pool, fitness center etc.) plus if you compare the cost of upkeep in a similar priced home you would spend about the same in home improvements and maintenance.   So if you are thinking of investing in real estate, think condo.  They are easy to maintain and at the cost to buy in Hamilton you can rent them out and let the tenant pay off your investment!  Check out the new condos in Hamilton at www.filmworklofts.com, www.hamiltongrand.ca   and  www.herkimeratbay.com, to name a few.    There are more projects out there geared to different ages and economic levels. Pick the right building and you will see your investment grow. Condos conversions have just begun: choose wisely! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

It's Cottage Time!

by Darrin DeRoches June 10 - 16, 2010

If you are looking to buy or sell a cottage, this is the time.  I recently listed a cottage in Selkirk, which is located on Lake Erie.  The place is a palace with three bedrooms, master ensuite, and it’s all open concept. It comes equipped with a plasma TV, fireplace, and hot tub, and the property is totally landscaped.  It has all the bells and whistles, but the biggest feature is that the cottage is located right on the water and the views are worth every penny.  The funny thing is the neighbor is now considering selling and their cottage, which has the same views but it is not even half the cottage.  Where is the value: the cottage or the view?    To value the properties, you have to consider the buildings themselves, but the breakwall, pylons, and septic systems are almost as valuable as the property and view.  A standard home in the city is pretty easy to value, but in cottage country you have right of way, water sources, septic, shore allowances, breakwalls, and more.  Are people willing to pay more for the view?  Definitely.  But how much is the view really worth?  Cottages are becoming more valuable since they are not allowing too much development, and most towns will not allow too many expansions.  In Selkirk they will not allow you to enlarge the size of the cottage’s footprint, so many owners are lifting the original cottage and building a new main floor with the original cottage on top.  You double the size, but not the footprint.  So these $200,000 cottages are now becoming $300,000 properties.    So to get back to the value of a cottage.  The value comes from every part.  The location, the view, the building, the outbuildings, the access, the services, the building, the well, the finishes and the list goes on. The big ticket items are the septic system, the well, whether or not its usable during all four season, the property, and the one that puts it over the top – the view!  A cottage on the water will be at least ten per cent more valuable than an identical one across the street.  20 per cent is probably more accurate.  The location and view are the top reasons people buy a cottage.  You can always improve the finishes and building, but you cannot recreate the view and location.  Cottages are usually an emotional decision and the view and feel of the property will make the property more valuable.    So if you are considering buying a cottage in the near future, think about the location: do you really want to spend hours on the highway to get to your vacation spot?  Once you arrive do you want your view to be the back of another building or the vast, tranquil, shimmering lake that you’ve been thinking of all week at work?  Invest in the view and property and over time you can always improve the cottage. God is not making any more views or shoreline! You will spend more time sitting with a cold beverage looking over the beauty of cottage country, so enjoy every minute of it! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Virtual Open Houses

by Darrin DeRoches May 6 - 12, 2010

A virtual tour is a presentation, website, or video of your property.  It can be a simple slide show, a 360–degree panoramic view, or a full action video.  Over 70 per cent of people go to the internet first when thinking of buying a property.  They go to realtor.ca or mls.ca and type in their area, price, and other criteria, and start window shopping for their dream home.  On these sites you can have one to ten pictures of your property.  Only about 20 per cent of these listings have the added feature of a virtual tour, which has a site that enables you to have pictures of your entire property and neighborhood with panoramic views available. You can even use music and video to set the tone. These little tours may seem like a simple thing, but they can go a long way to help sell your home.    The agent who does a virtual tour is an agent who is going the extra mile. They are not afraid to work, they’re using all the tools available to them, and they’re in touch with today’s market.  There are thousands of agents in every city and if they are not technically savvy or in touch with market – move on!  They may also be cheap and are not willing to invest in a virtual tour, or they may give you some excuse why they do not do them.  These are the same agents who will not do an open house. Run. Run fast.    A virtual tour is a mini open house running 24/7.  As I sit here writing this article I had eight hits on just one of my new virtual tours.  The tour can spark interest, and it gives people an insight into your home. If it is the winter and you have a beautiful yard, include summer pictures of your property and give people more reasons to fall in love with your property.  Another great thing is that people who have viewed other properties can go online and revisit your property and compare with your competition.  The virtual tour can help tip their decision towards your property; they can revisit your property as many times as they want, any time they want, and hopefully they want your property.    The last thing about a virtual tour is that it gives you more people looking at your property who you can call upon if you have interest from a buyer, if you lower the price, or if anything else changes.  Because they have to sign in to view the tour, you can use their contact details to let them know what’s changed – which may be what they need to make a buying decision.    The virtual tour is the best tool an agent can use to put your property in the best position to sell.  No tour? Get a different agent.  The internet is the best tool to sell your home: use it to its fullest. V    Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Turning Renter into Homeowners

Turning Renters Into Homeowners

by Darrin DeRoches April 29 - May 5, 2010

In previous articles I have mentioned government programs designed to turn renters into homeowners.  With the low interest rates coming to an end, a renter who is thinking of becoming a homeowner should jump in while they still can.    The biggest issue for most renters is the down payment.  Almost all banks allow for the down payment to be gifted.  This means if someone in your immediate family is willing to gift the down payment for a home, you can  qualify for a mortgage with their money.  Plus you can borrow up to $25,000 from your RRSP to buy a home – as long as you pay it back.  A more recent development is banks getting into the “no money down” mortgages.  They work on the basis that the bank will give you the money for the down payment for a higher rate on the mortgage, as long as you stay with them for the entire term, usually five years.  If you make a change in lenders you will have to pay the down payment.  So those renters with good credit and jobs can become  homeowners!    Some may wonder if it is worth it at all, so let’s look at the numbers.  If you pay $800 a month in rent you can qualify for $120,000 mortgage, including taxes.  At this level, your investment in real estate, at a mere 2 per cent increase, will net you $27,000 equity in your home over five years.  You can pay back the RRSP or you have paid back the “no down payment” in this term and you are up $27,000 – oh and you own your home.   The 2 per cent increase is low and there will be maintenance and other costs, but you are creating equity and building a future, and you may make even more money.  If you stay renting you have just increased your landlord’s equity by $35,000–plus since he did not have to pay back the down payment.    Sounds good – so why isn’t everyone lining up to do it?  Remember you have to have good credit, a good job and the balls to take a risk.  Everything has a little risk in it if you want the reward.  Before the rates start to rise and the scenario gets harder to do, a renter should really consider talking with a mortgage broker who can help, and see if they qualify for this.  The worst outcome is that the renter can find out what they would have to do to qualify for a mortgage; the best outcome is they are looking for their first home.  This window of opportunity will only be open for a little while longer, so if you are thinking of making the leap from renter to owner, jump in now while the time is right.  V

Real Estate Agents Think They Know It All by Darrin DeRoches April 8 - 14, 2010 The market is hot and we are creeping out of the recession and everyone knows someone who lost a lot of money in the falling market. Many people lost wealth in their mutual funds and pensions – but no one lost money in their homes. In the states everyone lost money everywhere but here in Canada we still made money in real estate. In a down market no one wants to talk to a real estate agent but in this hot market and terrible financial market – everyone wants to talk to an agent about real estate. Most people want to know “what did the house down the road sell for?” They want to be reassured they still have money somewhere and that place is in Real Estate. The old real estate agent who would show up with a smile and a pen is a dinosaur. Today’s agent blackberry is buzzing constantly; he has to know everything from the simple fix up advice to the costs of a total remodel. Clients in today’s market are looking for the maximum rate of return on their investment. An agent in today’s market has to be constantly updated their knowledge. Back in the day if you knew the local school you had it covered, today you have to know the best daycare, Montessori, after care programs, travel times to work, future developments, nearest gyms and even 24 hour grocery stores. Today’s clients are moving faster and require more information than how many bedrooms and baths. More and more people are starting to realize their real estate holdings are the best bet for their future and they want to know they are getting the best deal. Sure they need to love the home they live in but maybe for different reasons. The security of the investment seems to be the number one love on the list. The desirable area and market trends are the buzz words for the real estate agent in today’s market. The agent has to be knowledgeable in many different areas, it use to be feign schwa, decluttering and paint it beige. Today it is about tear downs, creating valuable space, curb appeal and rate of return. The real estate agent is being asked to become a financial advisor in many cases, where legal and taxation questions come into play. One of the largest real estate companies have added a clause for their agents to sign on every deal which declares their opinion is not that of any legal, taxation or building expertise. today’s agent is being asked a myriad of questions from value to construction and some have experience and insight but remember an opinion is just that an opinion – ask the right person the right questions. If you have any legal questions, send them in. I will pass them on to my lawyer to answer and get you the expert answer. Real estate or mortgages – I will be glad to answer.

CRAZY KIDS

by Darrin DeRoches March 11 - 17, 2010

The 18–24 demographic is supposedly going on a house shopping spree. It seems someone (the Royal Bank) did a survey and 15 per cent of this demo is most likely going to buy a property this year.  Last year, only 8 per cent said they would.  The banks have time to do these surveys since in the first quarter this year they made $5 billion, so maybe they know what they are talking about.     So why is this news?  Anything the 18–24 demo does is exciting to marketers, advertisers and the big news guys.  The low interest rates, low down payments and longer amortization are the reasons the young demo is intending to buy. Or, is it because they have a job and realize playing Xbox in their parent’s basement is getting old?  Maybe they have a desire to build wealth, to paint walls, put together furniture from a box, pay their own bills and create roots.  No, it’s probably because money is cheap and banks are willing to lend again!     The majority of Canadians believe that investing in a home is their best bet.  26 per cent believe their home will be the big nest egg for their retirement, so buy when you’re 20, take the 35 year amortization and it’s all freedom 55, baby! But, there is always a but! It seems the majority of Canadians are taking lines of credits against their homes and trying to live la vida loco, keeping up with the Joneses. So maybe it will be retirement at 65 before everyone cracks into the nest egg they call home.     The good news is consumer confidence is up, but the reality is the banks are lending again.  Did I mention they made $5 billion in the last three months?  So housing starts are up, the crazy kids are jumping into the market, and spring is coming early. So how do I profit from all of this?  Sell your home – now!  If you are in a starter home, especially in west Hamilton, sell it! The market is heating up, inventory is low and homes are selling fast.  Sell your starter home and move on up to the biggest home you can afford.  Lock into a five year mortgage and ride the wave… or wait and be stuck with higher rates. Banks will surely tighten up their purse strings and the seller’s market will pass. If you buy now, you can also avoid the HST.                                                                 [DARRIN DEROCHES]

FREE MONEY FOR GOING GREEN

by Darrin DeRoches March 4 - 10, 2010

Up to ten grand in grants – not loans – grants! are available to homeowners in Ontario. The Ontario Home Energy Savings Program and the federal ecoEnergy retrofit program provide grants for people retrofitting their homes.  These homes will have to undergo residential energy efficiency audit by a qualified energy advisor who is certified by Natural Resources Canada. So how do you get the ten grand?     To qualify for the grants you must do an energy audit before your renovation and another one when you are done and you have until March 31, 2011 to get it done.  An energy audit considers a home’s insulation, heating or cooling systems, windows, etc.  They put on this blower door thingy that calculates the energy loss in the home.  The energy advisor submits this report to the national guys who will pass it on to the Ontario boys who will process the audit cheque.  The homeowner can implement all the improvements or do the ones that will make the biggest improvements.  When the job is completed they will come back and do another audit and see the difference from the first audit.  The grant application will be processed and within 90 days the cold hard cash will be granted.     So these grants are based on a sliding table which you can find at nrcan.gc.ca.  The biggest payback is updating your furnace, air conditioning and hot water heater to Energy Star rated equipment.  A furnace with a 94 per cent efficiency with a brushless DC motor qualifies for $1300 in rebates, while a furnace with a 92 per cent rating kicks back only $750 in rebates.  Plus when changing to these furnaces an average home should see about $500 savings in gas per year, so it keeps on giving.   The government was also trying to make these audits mandatory when selling a home, but they have now made them voluntary.  I guess swallowing the HST is enough to handle for now – though I am sure they will make them mandatory in the future.     So to get the whole $10,000 back in grants from the government you would have to take a pretty old home and bring it up to today’s highest standard.  This being said, it is important to consider when changing your furnace you can reap the immediate benefits by going to the high end: you’ll spend more initially, but the grants will be higher!  Being green can make you money, so go hug a tree and enjoy the cash! DARRIN DEROCHES Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

REAL ESTATE

by Darrin DeRoches February 18 - 24, 2010

The spring market is fast approaching and I thought I would point out the the biggest mistakes a seller can make when listing their property.  It’s a seller’s market, but the house will not sell or it will sit for a long time if you do not avoid the seller’s traps. Overpricing:  It is easy to think since it’s a seller’s market you can raise your price to the highest level since there is very little competition.  Seems simple enough: less houses on the market so you can sell your house for a premium. WRONG! In today’s market place buyers and sellers are more educated than ever, and no one is willing to pay more for anything.  People would rather sit and wait till the market changes than overpay for property.  Properly pricing your property will not only ensure a quicker sale it may cause multiple offers – thus creating competition – which will bring the highest price for your home.  If you overprice, it will get the viewings, but it will sit until you drop into reality. Housekeeping:  Clean, well–kept homes go a long way.  People will imagine themselves living in your home and an unkempt dirty home will scare them away.  You do not have to paint, stage and bake cookies – just have the home cleaned. Fix It: Unless the property is a total fixer upper, prospective buyers will look at the smallest repair as a huge deal and will want it fixed or the price lowered to compensate for a small repair.  A $100 repair may cost thousands in the negotiation.  Fix all the little things because they do add up. Inclusions and Exclusions: Identify them.  Some lazy agents will not bother listing what is included in the sale and what is excluded.  If you have a family heirloom that is coming with you or you are including the fridge and stove, write it down.  When the buyer is drawing up an offer they are taking these things into consideration.  If they believe the fridge, stove, washer, and dryer are included with the house and then they are not,  they will offer thousands of dollars less to compensate, or if the family heirloom is not properly excluded they will own it and you will have to lower your price to get it back.  I have seen the smallest item kill a deal or cost thousands in the negotiation.  Write it down! Understand your agreement: Read the paperwork you are signing.  Understand that if the commissions are not paid, you are responsible.  Understand if you do not have enough equity in the property, you will have to make up the difference.  Take the time to ask questions and have the agent explain things to your satisfaction.  Everything is in writing so read it, understand it, or get a second opinion.     Selling your home may be the biggest transaction in your life and you should take the time to think it through.  It is a seller’s market and if you play your cards right, you will sell your home for the highest price fast.  Play them wrong and you may miss the boat!  Bon voyage! V                           [DARRIN DEROCHES]

Things Are Looking Rosie

THINGS ARE LOOKING ROSY

by Darrin DeRoches February 11 - 17, 2010

The experts believe that in 2010 real estate sales will be up 13.3 per cent from 2009, and over the booming sales of 2007. Not bad seeing we all stopped buying this time last year. Just because our neighbors to the south screwed up their housing market, ours slowed to a crawl last year just to finish off with a bang. Now the experts are calling for a banner year, but others are calling for a “bursting bubble” in the end of 2011. Why? The market is a seller’s market right now since the inventory is low and buyers are paying a little higher due to the glut in the market. Right now I have buyers with 240 grand cash to buy a home in the Locke and Dundurn area in Hamilton and there is nothing suitable to buy. The houses left on the market are either tilting, or dumps. They are willing to pay more, but there are no houses left worth buying and we have been looking for the last six weeks, going out every time something comes on the market. During the last deal in January we secured a house that was expired, and while waiting to do inspections other agents started to look at expired listings and were trying to get in to buy the house; fortunately we closed the deal. I have had discussions with other agents and they are finding the same problem in different areas and price ranges. Hopefully the spring market will bring more homes to the market. If you are thinking of selling, get it out there now: a good property will sell for top dollar. So why are the experts calling for this bubble in 2011? Well it is the damn Americans – again. These subprime mortgages of last year made all the problems and scared the entire world. Obama had to bail out everyone and most of them have paid him back, but the mortgage industry is still receiving funding. Nobody seems to be noticing, but the American government is still and have pledged to continue to bail out the mortgage giants. Hello, is anybody paying attention? The mortgage crisis is not over. All of these subprime mortgages have not gone away. Some have been changed into more conventional types, but a lot of them have just continued on, and a majority of these mortgages will be up for renewal at the end of 2011. Some so–called experts say 90 million subprime mortgages are still out there and will be up for a huge increase that the home owners will not be able to pay. So this is the “bubble”. So things are rosy right now – interest rates are holding still to about June – but the bubble may be burst, or maybe not V [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

HELLO 2010

by Darrin DeRoches Jan.7-13,2010

I know I’m not the only one who is happy that 2009 is over, but more importantly the first decade of the 2000s is over and we should take stock. 2009 was such a bad year and everybody is so happy to be starting a new year and decade that we are just looking forward and trying to forget it all happened. It’s like a bad drunken night that is not hard to remember. But do we really want to remember? As all good investors do, we must look back to predict the future. In our communities real estate has once again proven to be the best investment. Our last decade has reaped an increase of 76 per cent in the overall real estate market. If you were to compare this increase to any other investment, gold would be its only rival. The stock market will tell you about how RIM(Blackberry) made an incredible 300–plus per cent increase this decade, but that is just one stock. If you take the overall stock market, making money happens but building wealth does not. The stock market is like a casino: the house always wins. In real estate, you are the house! The average Joe can invest their hard earned money into a few simple things – stocks, bonds, gold, and real estate. If you look past the last decade and do a history lesson, you will see that real estate goes up and down in the short term, but it always goes up over the long term. The big guys with all the brains say we are going to have a bubble in 2011, but they were wrong this year with their predictions. The beautiful part about real estate is it may go down for awhile, but it will rise again. You may have to sit on it until the market corrects. And although you can sit on gold, you cannot live in it. Let me repeat myself by saying real estate increased by 76 per cent in the past decade. My parents bought their first house 40 years ago for 12 grand; that exact same house would sell for $212,000 today! I bought an income property ten years ago for just under $130,000 and I am getting an appraisal this week which should come in around $260,000. Doubled my money? Not really, because I put down only $20,000 (double would be $40,000) and if it appraises for $260 I made about $180,000 in 10 years ($60,000 is left on the mortgage). So double? More like nine times the money! I am not the smartest guy in the class. The only smart thing I did 10 years ago by taking that $20,000 and investing it in real estate. So take that 20 grand today and invest in a $200,000 home and in 10 years it may double or it may multiply by nine times – but one thing for sure, it will grow. Happy New Year! V [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

All I Want For Christmas

ALL I WANT FOR CHRISTMAS IS A...

by Darrin DeRoches December 17 - 23, 2009

Forget “All I Want for Christmas is My Two Front Teeth”: all you want for Christmas is a new front door. This is the time of year to look back on a tough, tough year and to look forward to a new year and a new home. Over the holidays people start to realize it may be time to start looking for a new place to live, but just like your Christmas list for Santa, you should start to make a wish list for a new property. Do you want a bungalow, ranch, or semi? Should it be brick, stucco, or siding? How about a yard, pool, or garage? Decide what type of home will work for your family and your lifestyle. While you are visiting family and friends, ask them what works and does not work in their homes. An exterior of a home can cause a lot of maintenance, have great street appeal or make it look larger than it is. Most homes exteriors are nicely decorated during the holidays and you can take notice of a particular style which fits your taste. For the interior, do you want one floor living? Do you desire open concept? Is moulding and wainscotting important? Is a second or third washroom important? Lots of drinks are flowing; are the bathrooms keeping up with your family? Is the dining room large enough for the big–sit down dinner or are you more casual and the family room is more utilized? Are the hardwood floors working or would carpet be more appropriate for your family? Is a dishwasher imperative or do you have dish pan hands? Look at and feel the interiors of other’s homes during the holidays and see what works for your family. Overall, what is really important for your family and lifestyle? Your home and your families’ homes get the most use during the holidays. What do you love about your house or your families’ houses, and what doesn’t work? Is your family getting larger or smaller? Everything should be taken into consideration when writing your wish list of features for your new home. If you are lucky, Santa may even grant a few wishes. Maybe that drunken uncle who keeps spilling his drinks all over your carpet makes it a good time for hardwood. You can watch all the design shows all year long, follow all the trends, but what works and what doesn’t is far more important than following the fads. So when the holidays are done and you are looking into the New Year, is your home working or is it time to start looking for the new place to live? V [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca

TIME TO PAY THE PIPER

by Darrin DeRoches December 10 -16, 2009

Three years ago you bought a home with no money down. You have paid all of your payments on time, and your renewal is coming due. You start to think you can renew at a lower rate save a little money and move forward. It usually works that way but your mortgage company has stopped lending money or they have left the mortgage business for good, so instead of getting a renewal notice, thousands of homeowners are starting to receive foreclosure notices. Foreclosures are a dirty way of ending a mortgage agreement. They are basically kicking you out of your home and taking possession of the property. You get nothing, nadda – squat! Remember you made all your payments and the company has made a lot of money, but now they are kicking you out. Sounds unbelievable, but believe it! The companies who are doing this are now asking the government to step in with $1 billion to help bail out the homeowners. They have decided to get out of the mortgage business and want the government to bail them out. The homeowners have not defaulted on the payments; the companies have made millions in creating these sub prime mortgages, but they are looking to foreclose on the homeowners and make even more money – so let’s bail them out. The government did not even insure these properties, but everyone is now looking to them to bail them out. So who do you blame? The mortgage company, the homeowner, the mortgage broker, the government, who? All of them. The mortgage company lent the money at double the rate, up to 104 per cent of the value, made thousands and thousand of dollars and is now trying to foreclose and squeeze what is left out of the property. The homeowner paid all of their payments, but they did not put any money down, they have no equity in their property and they signed an agreement to pay a mortgage which is valued higher than the property. The mortgage broker allowed the owner to do a terrible deal, and no ifs, ands or buts, they screwed their clients. They should have signed a shorter deal to get in the home save a downpayment and refinance into a proper mortgage or had a five year deal which would allow for some equity to be built up so they can refinance the property. The brokers screwed their clients. The government is the governing body who allowed these transaction to take place. They were aware of these sub prime mortgages and they could have made changes and laws to disallow these bad deals. The government should have never allowed the “no money down mortgage” and they should give a renewal mortgage to allow the homeowner a chance to build equity in their home and continue making the banks money; if they screw up, then “power of sale” the property and let the homeowner walk away with something. The homeowner has paid for three years and proved they deserve to own a home, so give them a chance to build equity and remove any risk! Investing $1 billion to continue these mortgages will make the government money and more important save these homeowners’ homes! V [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

VIRTUAL REAL ESTATE

by Darrin DeRoches December 3 - 9, 2009

The Internet and real estate are intertwined more than you would think. A recent survey revealed that about 87 per cent of people look online at real estate first, even before they call their mortgage broker or real estate broker. Everyone knows the internet is part of their business, personal and social life; using the internet in the proper way is key. Anyone can get a website, email and advertise on line — how you use these tools will aid you in the sale and purchase of your dream home. Do not be fooled by the glitz and glam of the internet: make it work for you. The first thing I would do when looking for a real estate company or agent is look at the web. If they do not have a website, move on! The site itself can be elaborate or simple, just see if it works. Email the company and a prospective agent. If they do not get back to you within the hour or at least a couple of hours, kick them to the curb. Too many companies put you on hold or do not respond to simple inquires. How the hell they are going to sell your property or find you one if that’s the way they conduct business? In today’s world every single agent should have a smart phone, period! An email, text, or call should be handled right away — every inquiry has to be handled! The real estate company is working for you, so check out their web presence and email proficiency. It may sound simple enough but I send emails on prospective properties to agents and companies and they do not respond. I have clients looking to buy, but they cannot even answer my email. It happens all the time! I still believe in meeting with clients and talking one on one. We all use the phone, but 87 per cent are using the web, so emails are imperative. The glitz and glam of the web can become distracting. Buzz words like “metrics” and “lead generation”, and virtual tours and the like can all sound great, but are they effective? A virtual tour of a property is a great tool to expose a property, but not to over expose. Facebook, Craigslist, Kijiji, and Twitter are all great tools to talk and socialize, but for serious buyers it is all MLS.ca and OpenHouses.ca in our markets. The internet is a huge place to be a part of and a huge place to get lost in. You can spend hours listing and blogging to market real estate, but hitting the right spots with the right product is imperative. You can sell your house by yourself or with help from companies using the web as a tool, but to properly attract the right buyer or seller, an agent with the basic use of email and online tools will get it done properly. Phones, papers, email, and website are all pieces of the pie; it is just in the way you mix it together to get the best end results. Test it out: email a company and agent with your inquiry and see if they are really in the market. Email me your results, or even test me: email darrin@uniquerealty.ca. V [DARRIN DEROCHES] Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.