Time To Talk Real Estate

by Darrin DeRoches December 12 - 18, 2013

A popular topic of conversation over the holidays seems to be real estate. Some people like to quote the increase in their homes value and others like to talk about their plans for 2014. The holidays are usually spent with family and after you talk about how your year was, real estate seems to creep into every conversation. This may be a good time to talk to your family about “gifting” funds to help you buy your first home or to “invest” with you in your future. If you are considering a real estate purchase next year, and need a down payment, you can be “gifted” the money from your family. Banks allow your family to give you money for a down payment since they are helping you in your future. These funds cannot be borrowed but a gift of money is fine. Instead of asking for some big ticket item for Christmas, consider asking for your down payment.     Real estate has increased in value in the area of seven per cent for the last couple of years. Ask your family how their GICs have paid out, two per cent, maybe. You can also inform them about using their RRSP to invest in real estate up to $25,000 dollars each. This money will not be taxed when it is used for real estate and the increase in value of real estate will more than cover the money earned in an RRSP. Plus, you cannot live in an RRSP. I am not suggesting that you hit up every family member you meet over the holidays, but a little bit of knowledge can be dangerous. Everyone likes to talk about how their investments have paid off this year and some people have extra money at the end of the year that they are looking to invest with. Again, real estate is paying off and is pretty safe when investing. Consider buying condos in 2014 and you will be able to make a good return on your investment. This past year, certain projects made speculators in excess of 60 grand per unit where others may have only made seven per cent but that is still a better return than GICs and less risky than the ever volatile stock market.             There are a lot of great projects coming up next year and picking the right one can make you a great return. Over the holidays, take time to consider your next move in the real estate market. It may be time to buy your first home, invest in a second property or upgrade your present home. Talk to your family and see how well they have done in real estate over the years and see if they want to grow with you in the future. The market looks strong for the next few years so use the holiday time to consider your next move. Then give us a call to find you the right property in the right area to maximize your biggest return on investment. The right broker can make you a lot of money. 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 sold@uniquerealty.ca.

Broom Swept Condition

by Darrin DeRoches December 5 - 11, 2013

When you are selling your property you have to leave it in “broom swept condition.” This means that the property must not have any debris left and must be completely empty.  If you are unable to remove that old desk or forget to take out the garbage, you may be sued.  You would think that most people are happy to sell their house and would leave it in good condition but you would be surprised.  If an agent suspects that the property will not be cleaned or debris may be left, they will set up a walk through on closing day.  This is when they will check out the property to make sure that the seller has removed all belongings and it’s clean before the new owners take possession.     I have had an agent call me on closing day to accuse the seller of stealing the curtains and would not close the deal. After a heated exchange between the agent and myself, I had to explain to her what would happen if they did not close the deal. The reality of the situation was that the curtains were not stolen and they were in fact the exact curtains that were there when they viewed the property.  They were looking for a $500 reduction for the curtains and I had to explain that they were not getting a reduction and if they did not close the deal then I’d be calling the lawyer. I would make sure they would lose the house and their deposit.     You would think it would be a waste of time and energy for a buyer and an agent to view the property on closing day to try to squeeze more money out of a deal.  In some cases agents will split the cost from their commissions to get the deal done.  Good agents will not fall into such a pathetic tactic and actually stop the deal from closing and will make the selling agent pay for the costs plus the cost of wasting their time.  In some cases the seller is actually in default and can be sued for leaving the property in a condition that may have costs involved.  They can stop the closing and the cost may have to be negotiated.  I have dealt with this situation and it can be pretty touch and go.     The property must be in “swept condition” and if they leave a bunch of debris, they will have to pay. I have spoken with sellers daily on  the week of closing with them assuring me it is just a couple more trucks to the dump and it will all be taken care of.  Closing day comes and the house is still a dump. The buyer’s agent calls and we have to work out a deal, call the lawyers and make an adjustments to the closing costs.     Take it seriously when closing a property and make sure you are prepared to leave the property in good condition and maybe even go the extra mile and leave a six pack in the fridge as a welcome gift. 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 sold@uniquerealty.ca.

Hamilton Heritage

by Darrin DeRoches November 28 - December 4, 2013

I had the pleasure of attending a panel discussion of the Economics of Heritage Preservation at the Hamilton Club. Every time you hear about “heritage” in a city, you think of stuffy people trying to save old buildings and slow up the progress of new properties. I figured I would enjoy the beauty of the Hamilton Club, some food, and a few drinks and that would make it worthwhile.     The room was filled with a diverse group including the who’s who of Hamilton builders, politicians and city employees. The mayor started off with a warm welcome and positive outlook on the evening’s speakers. The speakers came from Toronto, London, Buffalo, Ottawa, Waterloo, and New Hamburg. They all had a different perspective on saving “heritage properties” and the costs of doing so. Each speaker could have held their own night and gave a lot of information about the pursuit of transforming a heritage property into a successful, profitable property. I was impressed by each speaker and their candor and willingness to share their experiences. They freely showed the cost per foot and the “premium” people will spend to be in an updated heritage property.     You can replace the windows with replicas for a lower cost than removing, restoring and re–installing the existing ones. The costs, preservation and even landfill ethics when it came to windows was discussed. This all just proved a point as to where does heritage take over function and costs. I was most impressed with Clayton Smith from Commercial Realty Group who is, in my opinion, doing restoration the right way. He is taking underserved properties in downtown Toronto and restoring them to their glory. I spoke with him over a beer in the meet and greet and his openness to share the real costs and the higher returns he gets from his properties really drove home the message of the night.     Take an old building, update it to today’s standards but keep all the history in place. I always thought that a “heritage designation” would hurt the process but listening to the discussions throughout the night, everyone is happy to have a building saved and repurposed properly. I walked away with a new perspective and a kind of excitement to see what Hamilton has to offer with our old buildings and our builders restoring them. Stinson School, Dundas School and the Royal Connaught are all going to be proof that restoration and heritage will bring great profit and a greater pride in our city. I applaud everyone who was involved in the night and look forward to the future of our heritage! 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 sold@uniquerealty.ca.