How To Approach Downsizing

by Darrin DeRoches April 18 - 24, 2013

Downsizing can be a hard thing to do but if you approach it the right way it can be the right answer. People have to purchase smaller homes for a variety of reason but the main two are divorce and retirement. Divorce usually means a split in income and the ability to maintain the matrimonial home can be difficult. The two parties need to buy new homes that they can afford and keep their children in the same school and also fit all their belongings etc. The reality that the house will be smaller and lack all the bells and whistles is usually hard to come to terms with. A recent client of mine is going from a $500,000 home into a $250,000 home but wants a $300,000 dollar home. The problem is the size and location of the new property and the reality is that their income will only support a smaller home. The process can be very emotional and sometimes it is hard to come to the reality of their future. They need to be honest with themselves so they do not become house poor. My advice to them is to be brutally honest and buy an affordable property and if in time their financial standing improves, their children grow older and move out then they can reconsider a larger property in two or three years. The most important thing is to own a home and be able to afford it.     The retirement home is becoming more and more needed in today’s market. The population is aging and they require different things from their home today than they did 10 years ago. Most people require a bungalow where everything is on one floor. Laundry, bathrooms, bedrooms all need to be on the same level and their family home usually becomes too large and hard to handle. They have options and can even consider “retirement communities” but the majority of clients wants to maintain their independence and do not want to pay condo fees. I have found the best answer is one floor freehold townhouses that are mixed in communities with all different age groups. These properties are not as easy to find but they are the best option since they still have the feel of your own home but with the comforts of a community.  The grass cutting, snow removal and the ability to live independent and safely on one level is what you want and to be able to sit on your porch and watch the world go by is what you may need. This way you are able to still be involved without be separated from your community.     When downsizing, one must really look at what they need today and in the near future and figure out what works best for them emotionally and financially. Get rid of all the clutter, simplify and enjoy the next chapter of your life while staying in your community. It may be hard to find the right property but by using the right broker you can certainly improve your chances. 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.

There's Mold & There's Mold

by Darrin DeRoches April 4 - 10, 2013

This week I showed a four bedroom house with all the must haves to my client and she loved it and wanted to make an offer. Sounds good but there was one problem – there was already another offer on the property. Most agents would just give the old “oh well, we will find you something else” but my client wanted this house and I have been showing her homes over the last three months and this was the first one she loved. I called back the agent and asked about the other offer. He explained to me it was only good until Monday and I was surprised about the quick time period and it was a holiday so banks are closed – so what was the issue?     I asked a couple of poignant questions and let the agent talk and talk until he finally revealed a possible mold issue. I asked to be kept in the loop. Monday morning at 9am I got the call that the deal had fallen apart. I got an offer written up and by the end of the day my client had her dream home. We checked the report and saw the mold and also found the cause which was that the vents were covered up once the new siding was installed. A simple fix under $100 and the mold will be no more. We secured the property for less than the other offer and we can now close on a great home for my client. The mold is being removed and the venting problem will be fixed before we take possession of the property – simple fix and moving fast got us a deal and more importantly a great home for her family.     Once a client hears about mold, they usually run from the property but 90 per cent of mold issues are minor and easily fixed. The sellers were totally freaked out over the mold since their children are living there but then they saw the results of the inspection stating that it was minor and no health problems existed. Inspectors always love to scare clients with mold but once the shock wears off and you realize how simple the fix is you can use the issue to your advantage. I had buyer ask for $2,000 off the price to fix the mold which the seller fixed with a dollar fix of bleach and a couple hundred dollars for the re–inspection to prove the mold was removed and the problem fixed.     Obviously if there is a “big mold issue” it can be a large cost and people in space suits will take over the home to correct the issue. These issues come from years of neglect, leaking roofs, pipes, windows etc. These mold issues have to be dealt with properly and with the right professionals. When you ask these same professionals about the mold they will tell you every home has some type of mold but less than 10% have a “real issue”. 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.

Condo Investor

by Darrin DeRoches March 28 - April 3, 2013

The big move to Hamilton is constantly being talked about and is it really true? There is a property in a sketchy area of Hamilton that is promoting an entire block available to build a new apartment tower since Hamilton is a having an influx of people moving here. All the papers and magazines are writing about this huge movement and there are examples of people moving here but how many and why? Condos are going up and more are in the pipeline so a new tower geared towards rentals makes sense or does it?     There is around a 3.5 per cent rental gap in Hamilton and if you believe statistics it is considered low in comparison to other markets. We are the best place in the country to invest in real estate right now so all the indicators show we will be in need of more rentals. My only question is when exactly are the droves of new Hamiltonians supposed to show up? I personally have written about all the inquires and excitement about our city and even made fun of real estate agents who mock the new condos as “who the hell are going to live in them?” but you still must wonder – when?     I believe the new influx of condos will not only bring more people to our city it will bring in the “condo investor”. These people have bought and sold condos in Toronto, Vancouver and Montreal where they buy multiple units with the sole intentions of selling them for a profit when the project completes. It is a pretty simple way to make money over a short period of time. They buy at the lowest point before the project begins and in a couple of years when the project is actually built they make the increase in value. This increase can be a good 20 to 40 thousand dollars an a average unit. Hamilton had a 7 per cent increase in value in the last two years, with this and buying first and then selling high, money is to be made.     People always ask why there are units for sale once a project completes – it is the investor. The only problem with this is sometimes the units will not sell and the investor then puts them up for rent. A new project in the west end did just this and you can rent a condo for around $1,300 a month since they are unable to sell – right away. This influx of condos and potential rental units into our downtown market is most likely more than we will need when it comes to quality rentals. Let’s be honest there are not a lot of people who can afford to rent a $1,300 dollar condo and save enough money to eventually buy their own home. If you can afford that rent you can also afford to buy the condo itself or a great home in our city. We are still priced affordable compared to everywhere else so the investor may be careful jumping into our market! 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.