Edmonton Real Estate Blog

People make a lot of mistakes, avoidable mistakes, when they’re building or renovating a home. Those mistakes begin at the planning phase – when the homeowners are developing the layout with a designer or architect.

I recently looked over several floor plans for next spring’s reno and construction season, and I have to tell you, some things continue to pop up that make me grind my eyeteeth in frustration. Here are five things that I would ban from all blueprints.

Corner fireplaces

Oh, they rake the eyes. Why would anyone put a fireplace in the corner of a room? This rookie mistake starts a domino effect of ugliness that’s nearly impossible to stop. Developers are fond of doing it because it’s an easy way to parachute in a prominent feature they haven’t adequately planned for.

The problem is focal points. A fireplace is a natural centre of attention, and a room is most comfortable when the furniture aims at it. But when you put the fire in the corner of a room it’s almost impossible to do anything but place the furnishings at odd angles to the walls, which misaligns the room with the structure of the home. (Conversely, if you ignore the fireplace as a focus, people in the room become disoriented and don’t know where to put their eyes.) Fireplaces are best located on a long run of wall. There, they’re easy to centre in the room, making them an effortless focal point around which to plan.

Spiral staircases

Cinematic grandeur is what people have in mind when they attempt to shoehorn a spiral staircase into their floor plan. But more often than not, the stairs come off like clumsy plotting – superfluous of detail and disruptive of flow.

The reason is simple: Spiral stairs are a circle, and most homes have walls that intersect at right angles – that is, they’re squares. And when you drop a circle into a square, everything feels off.

One of the few places spiral stairs feels right is in a home with a grand entrance – picture the 1,000 square foot foyer of a colonial mansion in the Deep South. There, fanciful spindles and expansive treads blend effortlessly with the majesty of the home. There, not here.

The problem is the same as with the corner fireplace: The alignment feels off. A home without room for its spiral staircase feels like a series of circles and squares mashed together. Odd angles proliferate, creating spaces that are difficult to furnish and a house that is challenging to resell.

Getting a spiral staircase to integrate seamlessly into a floor plan demands an investment in good architecture and exceptional craftsmanship. Unless you’re willing to go to the expense, you’d best forgo spiral stairs altogether.

My advice: Stick to straight runs – they’re efficient and much easier to construct. If you want to jazz them up, spend your money on quality materials, finishes that are consistent with the rest of the home.

Grecian columns

Used properly, Grecian columns are a nod to outstanding architecture and engineering, and an implicit statement of affluence. And it’s that savour of affluence people are after.

But in the average house – with flat, eight-foot ceilings and six-inch crown mouldings – a Grecian column looks as natural as a tuxedo in a honky-tonk. It’s foolishly trying to elevate the occasion.

To support the Grecian columns, homeowners often deploy empurpled regal furnishings and many-layered draperies – touches that only draw attention to the original sin. They’re trying to make their home something it’s not.

Regardless of its size, play to your home’s strength, whether it’s a nice floor plan, beautiful wood floors or well-chosen finishes. Structural elements like posts should integrate with the other finishing carpentry (baseboard, window trim and crown).

Superfluous French doors

Good quality French doors are beautiful – solid wood with a thick frame enclosing a grid of bevelled glass. But their appeal leads to frequent misuse.

French doors should be reserved to the entrances of formal rooms, like the living or dining room – spaces intended to impress, where the act of sweeping open two glass doors is a dramatic gesture.

There was a time when the library would have been a room that deserved French doors. But yesterday’s library is today’s home office, and its mishmash of Office Depot furnishings and HP hardware is no enticing thing to see through the glass.

The general rule of French doors should be: Use quality doors with beautiful hardware, and use them sparingly for rooms that you intend to decorate beautifully and share with others.

Avoid slapping French doors on rooms that require privacy – you’ll only end up curtaining the glass.

Pork chop countertops in bathrooms

I’m amazed that this dated detail still finds its way onto floor plans. I’m talking about that odd ledge that extends from the vanity over the toilet in the bathroom. At the best of times it housed a vase with dried twigs in it; at the worst, dingy collections of half-used perfumes and aging soaps.

If space is a concern, then glass or floating shelves over the toilet are far more useful. If covering up the unsightly toilet is the rationale, buy a nicer toilet – there are too many beautiful plumbing fixtures on the market these days to go down that road.

Special to The Globe and Mail

Think spending $50,000 on a total kitchen remodel or $10,000 overhauling the bathroom is the only way to add value to a home? If large, expensive projects are beyond your grasp, you’re in luck: Increasing the value of your home doesn’t have to involve large outlays of cash, especially when you’re willing to put in a little sweat equity. Why spend big money when there are so many low-cost, do-it-yourself (DIY) projects? Whether you’re planning on selling or just want a nicer place to live, read on to find out what you can do to add value to your home for as little as a few dollars.

House-Wide Updates

The following are some changes that can be undertaken for surprisingly little money.

Freshen Up the Walls
If your walls have scratches and dirty paint, an outdated color or tacky wallpaper, a few cans of paint can make a dramatic difference. If you’re trying to maximize the value of your home, it’s best to choose a neutral color scheme that unifies the entire house, makes the space look bigger and will appeal to a wide variety of potential buyers.

Install Crown Molding
This task is surprisingly simple but adds a lot of character. You simply buy the molding, which is nothing more than decorative strips of wood from a home improvement store, cut it to the size that fits your room (or have the store cut it for you), and attach it to the top of the wall with a nail gun. It may even come already painted. This involves a bit of woodworking skill as well as the right tools, but is very inexpensive if you can do it yourself.

Update Fixtures
Switch plates, outlet covers, curtain rods, light fixtures and doorknobs are often boring or overlooked, but a few bucks can add major pizzazz. Attractive metal switch plates and outlet covers can cost as little as $5 apiece but look much more expensive. Light fixtures and decorative curtain rods can be a little pricier, but sometimes you can make an inexpensive piece look elegant with the right can of spray paint. Again, make sure to choose items in colors and finishes that will appeal to a wide audience.

Install Ceiling Fans
Everyone likes to save money on electricity bills, making ceiling fans an appealing addition to any home. Using ceiling fans can definitely cut down on air conditioning costs, and in fact, they can also reduce heating costs by circulating warm air away from the ceiling. A basic fan costs about $50, and a nice one can be had for no more than a couple hundred dollars. If you don’t already have overhead lighting in the room or rooms you want to install fans in, the electrical work needed to install them can significantly escalate the cost of this project as well as take it out of the DIY realm.

Improve Window Treatments
The cheap vertical plastic blinds, paper shades, or horizontal aluminum blinds that may have come with your house definitely don’t add any value to your home. Consider replacing them with plantation shutters, wooden blinds or nice drapes. By the way, it doesn’t matter whether the drapes will come with the house if you are in the market as a seller. The important thing is that they make it look nice while it’s on the market and help you get top dollar for your home.

Reveal and Restore Hardwood Floors
Older homes in particular are likely to have hardwood floors lurking beneath carpet. If your floor squeaks, that’s a decent sign that you may have wood floors. If you’re not sure, pull up your carpet in an unnoticeable corner and investigate. If you do have wood floors, there’s a good chance you’ll have to refinish them to restore them to their original splendor, but that will be much less expensive than installing new flooring from scratch.

Bathroom

Redo the Bathroom Floor
Many people can learn how to do this task themselves with a simple class (your local home improvement store may offer one). Because installation makes up a major part of the cost of most home improvements, saving all that money on labor may allow you to pick nicer flooring than you could otherwise afford. Opting for a neutral-colored tile will add the most value.

Update Fixtures
If you have generic, cheap and/or outdated fixtures, replacing them with newer, more customized versions can make your bathroom sparkle. For about $40-$100, you can replace a shabby bathroom vanity or ceiling light fixture with something elegant. A similar cash outlay will get you a new sink faucet. A spa-style chrome shower head adds a touch of luxury for about $80. Towel bars are the easiest and cheapest fix at about $20-30. Sometimes the upgrade can even be more energy efficient, increasing not only the aesthetics of your home but “greening” it up as well.

Kitchen

Paint or Stain Kitchen Cabinets
You could buy all new cabinets and save money by purchasing prefabricated (rather than custom) cabinets and installing them yourself, but that’s more work and money than painting or staining your existing cabinets. White cabinets will brighten the room, don’t usually go out of style and are easy for future owners to repaint if they want something different. You’ll need to remove all the hardware from your cabinets, including removing the doors. You’ll also need to clean the cabinets first so that residue like grease won’t ruin your work. This renovation can be used to spruce up your bathroom cabinets as well.

Upgrade Cabinet Knobs and Drawer Handles
It’s surprising how a seemly innocuous element like a cabinet door knob can make your kitchen look cheap or dated. Updating this hardware can give your kitchen a face lift whether you redo your cabinets or not.

Living Room

Clean Fireplace Brick
If you have a brick fireplace and it’s ever been used, chances are some of the brick is stained with soot and creosote. Because a nice fireplace can be a major selling point in a home, you’ll want to make yours look as nice as possible. Just use a damp rag to wipe away some of the soot, then follow up with a fireplace cleaner designed to remove creosote. It will take some scrubbing with a stiff brush and possibly several applications, but you’ll have that brick looking spiffy when you’re finished.

Don’t Forget the Exterior

It may be easy for you to ignore your home’s exterior when you spend most of your time inside, but it’s the first and sometimes only impression that others get of your house. Here are a few simple ways to make it look its best.

Install a New Front Door
A very basic steel front door costs about $100, but for just another $100-$200, you can get a door with a lot more character that will improve your home’s curb appeal. If you can’t afford a new door, a fresh coat of paint in an inviting color may be all you need.

Replace the Front Door Mat
When you’ve had the same doormat for years, it can be easy to overlook how worn out or dirty it’s become, but it’s one of the first impressions people get of your home. This is one area where $20 can make a big difference.

Gutters
This is more an issue of maintaining your home’s value than increasing it, but it’s extremely important. Without properly functioning gutters, which are designed to carry water away from your home, rain may seep into your home or pool around it, causing problems like mold and mildew and eventually compromising the house’s structural integrity, leading to very expensive repair bills.

Power wash the Exterior of Your Home
For less time and money, a good washing can make your home’s exterior look almost as good as a fresh coat of paint.

Repaint the Exterior
If washing the exterior of your home didn’t brighten it up as much as you’d hoped, consider a new paint job. With the ladders and heights involved, this may not be a DIY task for everyone, but even if you have to hire others to do this job, it’s still pretty inexpensive as far as home improvements go and can make your house look almost new from the outside.

Power wash the Driveway, Walkways and Patio
As long as you’re renting the power washer, you might as well clean your driveway, your patio, and any walkways. You may be surprised by how new they’ll look afterward.

Upgrade Landscaping or Clean Up Existing Landscaping
Flowers and other plants are a great way to brighten your home’s exterior. Use greenery in front of your house and/or along walkways to draw attention to your house. To get the most for your buck, choose perennial plants, or ones that will come back year after year, rather than annuals, which will die in a year or less and not return. Patch any bald spots in the yard with fresh sod and trim existing trees and bushes to complete the yard’s new look.

Put on Your Tool belt
Upgrading your home doesn’t have to be expensive or difficult and it doesn’t have to involve contractors. There are a variety of projects for all price ranges and all levels of skill and enthusiasm that can improve your home’s value, whether to future buyers or, perhaps more importantly, to you. Putting a few of these home-improvement ideas into action will help you get the most value out of one of your biggest assets whether you’re staying in it or selling.

Article by: Amy Fontinelle Investopedia.com

“Fix it and flip it” is a phrase often associated with real estate investing. The idea behind the concept is that the completion of a few choice remodelling projects will add significant value to the price of a home. With this in mind, many homeowners undertake major renovation projects before putting their homes up for sale with the idea that sprucing up the place will result in big bucks. More often than not, these upgrades fail to pay for themselves. Read on to find out how to renovate strategically and which renovations really add value to your property.

The Difference between Investors and Owners
Updating an investment property is generally a sound strategy because successful advocates of the fix-it-and-flip-it philosophy buy run-down homes at bargain prices and save money on the repairs by doing most of the work themselves. A little sweat equity goes a long way toward making a real estate investment profitable.

Investors carefully choose their remodeling projects, focusing on those that will result in the most value for the least amount of effort and cost. Part of the process includes paying attention to the other homes in the neighborhood to avoid over-improving the property. If none of the other houses in the area have crown moldings and Corian countertops, adding these amenities is unlikely to result in a significantly higher selling price for the property.

Owners, on the other hand, often take a less strategic approach to remodeling when sprucing up their homes prior to putting them on the market. As a result, they can end up putting significantly more money into the project that they will get back out of it when they sell.

To make the most of your remodelling projects, it pays to keep four types of projects in mind : basics, curb appeal, value added and personal preference.

The Basics
The basic are the things that buyers expect when they purchase a home. This includes a roof that doesn’t leak, functioning gutters and downspouts, a dry basement, a good furnace, solid floors, walls that are in good repair, retaining walls that work and all of the other common sense items that you expect to find in a home.

In upscale properties, this includes air conditioning, a certain number of bedrooms, bathrooms and garages, and any other amenities that are common to the neighbourhood, such as a swimming pool.

Adding these items to a home that lacks them doesn’t add value, it merely brings the property up to the standard level of the rest of the homes in the area. Money spent on these items is unlikely to be fully recovered, but should at least result in ensuring that the home sells for a price that is comparable to other homes in the area.

Curb Appeal
Items that add curb appeal help the property to look good when prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help the place sell faster. Curb appeal items include a nice green lawn, attractive landscaping, fresh paint inside and out, new carpet and new appliances. If you know that a prospective buyer is due to arrive at a certain time, baking an apple pie just before the arrival is an easy way to set the stage, make your house smell good and create a warm, inviting atmosphere.

Adds Value
The projects that add considerable value are big favourites of fix-it-and-flip it advocates. While most of these efforts will not recoup their costs, some will come close. Projects that offer the most bang for the buck include new siding, kitchen remodelling, bathroom remodelling, new windows, decks and the addition of living space. The National Association of Realtors cites siding, kitchens and windows as some of the most beneficial projects, often recouping 80% or more of their costs during resale.

Personal Preference
Personal preference projects are nifty items that you want but that other people may not like or be willing to pay to get. In most areas of the country, these include amenities such as swimming pools, tennis courts, hot tubs, wine cellars, basement game rooms and ponds. There’s certainly no harm in adding these items to your house, but don’t expect potential buyers to be willing to pay a premium to get them when you are ready to sell.

House and Home
Regardless of the project that you are considering, remember that your primary residence is not just a house, it’s your home. If you plan to live there for many years to come, add amenities that you want to have regardless of their impact on resale. When it’s time to sell, do the basics to get the property up to par for the neighbourhood and add some curb appeal, but don’t bother undertaking an extensive array of projects strictly in an effort to increase the value of the property. Even with the projects that are known to add value, the chances are good that you will spend far more money than you will get back in return.

Article by: Lisa Smith Investopedia.com

Winter is here and you have already pulled out your warm, woolly sweaters, hats and mitts.  Sure, you might be prepared for the cold, but what about your home?  It’s about time we all got our homes ready for winter – eco-style.  Conserving energy is one of the best things you can do for the environment and your bank account, as it can help reduce your utility bills as well.

Here are 10 ways to prepare your home for the cold months ahead while treading lightly on the Earth:

1) Automate
Almost half of a home’s energy consumption is due to heating and cooling.  If you turn your thermostat down by just one degree, you will save energy and up to ten per cent on your home heating bill.  And, for each degree you drop below 20 degrees Celsius during colder weather, you will save three to five per cent more on heating.  An easy way to control temperature is to install a programmable thermostat that automatically adjusts to cooler temperatures during the day when you are at work or at night when you are sleeping.

2) Assess
In many homes, an enormous amount of energy is wasted as heat radiating from the furnace quickly escapes out of cracks and windows.  A home energy audit can help assess how your house uses energy while prioritizing actions you can take to make it more efficient and comfortable.  The federal government offers assessment and grant programs as incentives to homeowners who make changes to improve energy-efficiency.

3) Eliminate drafts
Draft-proofing will keep you warm while saving energy and money. It has been said that if you add up all the cracks and the gaps between doors and windows in an average home, it is equal to leaving one window open.  To help stop drafts, install weather-stripping around doors and caulk cracks around windows.  During the winter, air conditioners installed in windows can be a large source of cold drafts.  It’s always a good idea to remove window units during cold months or, if you must leave them in, insulate them in tight-fitting covers available at most home improvement stores.

4) Lower water temperature
Your water heater is the second largest energy consumer in the home.  Turn it down to 60 degrees Celsius, the minimum storage temperature, to conserve power and you will still find yourself with plenty of hot water.  To save even more energy here, consider wrapping your water heater in an insulating jacket that can save up to 10 per cent on water heating costs.
5) Keep it closed
Closing your curtains in the evening will help stop heat from escaping through windows.  Keeping closet doors and dresser drawers closed is also a good idea as it prevents heat from entering areas that do not need it.  If you have rooms in your home that you don’t use, you may consider closing the doors and, depending on the type of heating your house has, blocking vents or turning off electric heaters.

6) Timing is everything
When you are preparing some delicious cuisine in the kitchen this winter, be sure to time your cooking so that everything you are making can go into the oven at the same time.  This will decrease the overall amount of energy that the oven needs to cook your meal.

7) Insulate
Save energy and feel more comfortable by increasing insulation in the perimeter walls and ceilings.  Look for eco-friendly recycled materials with no added formaldehyde when shopping for insulation.  By insulting the cavity walls in your home, you can save up to 15 per cent on your energy bills.  Most homes built after 1920 have external walls which consist of two layers of brick with a small gap between them. Filling the gap with insulating material significantly decreases the amount of heat that escapes and helps to create a more even temperature throughout the home.  Attic insulation prevents up to 15 per cent of a home’s heat from escaping through the roof by acting like a blanket, trapping the heat as it rises from the house below.

8 ) Radiant flooring
Radiant floor heating systems increase indoor air quality because unlike forced-air systems, they don’t blow dust and other allergens around your home.  They have warm water circulating in flexible tubing that is installed below the floor allowing heat to radiate upwards providing quiet, steady warmth while using less energy.  This project may have to wait until you are renovating as it can be pricey depending on the area you want to cover, but if the opportunity and funds arise, it will pay off in the long run.

9) Your furnace
Clean or replace your furnace filter as recommended, especially during months of heavy usage. Energy is lost when hot air furnaces have to work harder to draw air through dirty filters.  You may also consider purchasing a new furnace.  There are furnace models available now that are 25 per cent more efficient than they were back in the 1980s.

10) Double up
Installing double-pane windows involves a bigger investment, but it can cut the heat lost through windows by half.  Some of the government programs mentioned above will subsidise a percentage of the cost of the windows if your assessment concludes that new windows will make your home more energy efficient.  If you don’t think a new set of windows will work for you right now, a simple and effective seal for your existing single-pane aluminum windows (at a fraction of the cost) is clear plastic.

Getting your home winter-ready can make a large impact on both the environment and your utility bills.  It’s certainly easy to turn up the thermostat and have your furnace pump out the heat, but it’s crucial to consider the environmental impact.  There are many small things you can do around your home to make it more energy efficient.  Larger projects may seem costly to implement at first, but if you use the government programs available and look at the big picture, you will see it is well worth the money and the effort for you and the planet.

By Selene Wilkinson, ND

These easy tips on staying warm as the season cools can save you money

Finding ways to cut your electricity bill doesn’t have to be complicated. In fact, it’s the simple choices we make that can have a biggest impact. In Adria Vasil’s new book, Ecoholic Home (being released just in time for winter!), Canada’s favourite “ecoholic” reminds us that cracking down on old energy-wasting habits around the house will ease the drain on your already-suffering bank accounts. “Just ask your grandparents,” she writes. “Savings energy, saving resources-saves you money.” Plus, reducing your energy needs will ultimately benefit your whole community.

So try these 10 small things before the snow flies:

Tip #1: Crank Down.

In winter, turn your thermostat down by two degrees and wear a sweater. It will save you $180 per year on your energy bill (and just think of the huge energy saving around the province if everyone did this).

Tip #2: Fill Up

Ensure the dishwasher is full before you turn it on. Dishwashers are more energy and water efficient when full. Researchers have also found the machines consistently do a better job-with less water-than hand-washing.

Tip #3: Morning Retreat

A low-flow showerhead requires less water and, by extension, needs less heat to warm the water. You can also insulate your water tank and set the thermostat two degrees lower to save energy. The range should be from 60 degrees Celsius to 65 degrees Celsius. If you have a set thermostat, this range is midway between “warm normal” or “low medium”. We assure you, you’ll never notice the difference!

Tip #4: A Cooler Cool

Simply cleaning the condenser coil on your refrigerator can improve its efficiency. And the next time you’re replacing a refrigerator, look for an ENERGY STAR model, which typically has a more energy-efficient compressor, better insulation and temperature controls that offers energy savings that conventional models can’t.

Tip #5: Clean Heat

Cleaning your furnace filter every two months can increase its efficiency by 50 percent.

Tip #6: Time it right

Install a timer on your water heater and furnace to turn it off at night and back on just before you wake up in the morning. Few people realize that waiting to do electricity-heavy activities (such as laundry or showering) before 7 am and after 10 pm can hugely reduce your energy requirements and costs. (In fact, some provinces now raise electricity rates in the daytime (prime time), making it smarter than ever to wait until it’s late to run your appliances.)

Tip #7: Be Caulk-y

Before you feel the full force of winter, weatherproof your home. Make sure you have enough insulation, get double-pane windows and caulk any cracks. You’ll get rid of those uncomfortable drafts and save money that was flowing out of your home with the heat.

Tip #8: Vampires Beware

Unplug home electronics when you’re not using them. Most of them have features that make them easier to use-instant-on TVs, for instance-that also suck up electricity, even when they’re not in use to the tune. This can amount to $75 in energy costs per year. Be sure to turn off your computer, too.

Tip #9: Dry Smart

Dry two or more loads of laundry in a row to take advantage of an already warm dryer. Remove clothes from the dryer when they’re still warm to prevent wrinkling. And clean the lint filter before every load. A clogged filter can increase energy use by up to 30 percent and also present a safety hazard.

Tip #10 Light solutions

Replace your home’s incandescent light bulbs with CFL or LED bulbs. You’ll save energy with the lower wattage it takes to power the bulb but also from reduced cooling costs-incandescent bulbs give off 90 percent of their energy as heat.

By Green Living Online

The cold, wet stuff has a way of ar­riving without regard for our busy schedules. It’s not a problem if the only items on your to-do list are making snow angels and taking a nap, but if you need to clear the path to the car quickly-and drive off safely-it pays to prepare. Start with the right equipment and deicers, then stick to these time-tested removal methods. You’ll be on your way-or back inside making cocoa-in no time.

Before the ground freezes… drive tall stakes around plant beds near paths and driveways so that you know where to stop shoveling.

Pro Tip: “If your shrubs get loaded down with snow, leave them alone-you’ll do more damage trying to shake it off.” –Rick Kier, president, Pro Scapes Landscape and Lawn Care, Jamesville, N.Y.

Look for a shovel… with a lightweight plastic or aluminum blade coated with a nonstick finish to make loading and unloading a breeze. Avoid a blade so big you’ll be tempted to overload it; an ergonomic, S-shaped shaft will save your back by requiring less bending. Avoid using metal blades on softer materials, such as wooden decking. A pusher-basically a shovel with a C-shaped blade-is handy for clearing lightweight, fluffy snow.

Pros recommend… shoveling several times, even while it’s still storming, so that snow doesn’t get a chance to bond to surfaces. (It’s also a lot easier to shovel 2 inches of snow than 5.) Get down to the pavement beneath so that sunlight can warm it up and prevent ice from forming.

Don’t heap snow… on foundation walls, where melting water can refreeze and cause cracks to widen, or against anything made of wood, which is also susceptible to water damage.

Rock salt is cheap… and works at temperatures above 12 degrees F, but it’s tough on shrubs and grass and can eat away at concrete. Two other salts, magnesium chloride and calcium chloride, cost more but are less harsh (though still not great for plants) and work at much lower temps than rock salt (from 20 to 25 degrees below zero F). Still pricier is a nonsalt option called urea. It’s usually used as a fertilizer, and it can be a little tough to find. Wear gloves when spreading any deicer by hand. For large areas, use a handheld spreader or a push spreader, but not a grass spreader (the deicing granules will gunk up its gears). Store deicers off the floor or in a sealed bucket to keep them dry.

Use sand or kitty litter… to add traction to slippery surfaces. Choose sandbox sand over mason’s sand, which is too fine. Or try alfalfa meal, a slow-acting fertilizer that also helps melt snow-your yard will thank you.

A snowblower is quickest… to clear large flat areas. Use one when there’s at least 11/2 inches of white stuff on the ground. Before each use, spray the exit chute with silicone to keep snow from sticking (furniture polish also works). When you’re done, let the machine run for a few minutes to dry out, which will help prevent vital parts from being damaged by freezing. Then drive carefully-or stay home and build a snowman with the kids.

Source: Sal Vaglica, This Old House Magazine

Time is running out to qualify for Ottawa’s $1,350 home renovation tax credit, and you have even less time to make use of year-end tax strategies. So here a few timely reminders.

You have until Feb. 1 to spend $10,000 on qualifying items or work to earn the maximum renovation credit, and more than $1,000 to get any of the 15 per cent tax credit. Qualifying expenditures include repairs, alterations and preventative maintenance for a home or apartment suite you own, including the cost of labour, materials and equipment rentals.

Remember that labour costs for home repairs, as well as the cost of heating your home, will be going up next July 1 when Ontario adopts the harmonized sales tax.

But going into debt to renovate, insulate or replace a furnace – particularly credit card debt – will negate some of the value of the tax credit.

Anyone who bought his or her first home after Jan. 27, 2009, will be eligible for a $5,000 federal tax credit, which would put $750 back in your pocket, but only temporarily because you now own a house.

Anyone who turns 71 this year should remember to transfer money from their registered retirement savings plans to a registered retirement income fund or annuity before the end of the year. If you don’t, the RRSP will be taxed as though it was all withdrawn as income in a single year.

If you turned 55 or older this year you will now be eligible to convert locked-in money from a former employer’s pension plan to a life income fund (LIF), and start withdrawing a prescribed minimum or maximum as regular income.

It would be better to wait as long as possible before age 71 to start spending retirement savings, particularly in the wake of the investment losses of 2008 and the low rate of interest paid on investments.

But these are hard times and Ontario does permit a one-time withdrawal of 25 per cent of a new LIF for whatever reason. After Jan. 1, Ontario will also permit a second withdrawal of 25 per cent or an initial withdrawal of 50 per cent.

In addition, you may apply for withdrawals from locked-in accounts that have small amounts of money or if you are in financial hardship. See www.fsco.gov.on.ca for details or call the Financial Services Commission of Ontario.

Executors and heirs should be aware that losses on registered savings that occurred after the death of a person in 2009 or later, and before distribution of the estate, may be carried back and counted as a reduction in the taxable income that would have been declared on behalf of a deceased person who had no surviving spouse or dependant.

Things that must be done before Dec. 31 to qualify for a tax refund next spring include making charitable and political donations, paying post-secondary tuition, buying monthly or annual transit passes, spending up to $500 per child for eligible sports and fitness programs and paying charges for a safety deposit box.

If you operate a business, the end of the year is a good time to purchase computers, cars and other equipment for which you may claim a capital cost allowance. The entire cost of a computer purchased after Jan. 27, 2009, and before February 2011 may be written off in the first year.

Parents and other relatives who want to see children in their family obtain a post-secondary education have until the end of the year to contribute to a registered education savings plan. You will not get a tax refund, but the child will qualify for a federal grant equal to 20 per cent of the contribution, or substantially more if the parent contributing has a low income.

To make the most of that government assistance, be careful to consider the sales and management fees that will be deducted from investments. Bonds and other safe investments are not earning much of a return these days.

Anyone investing outside of an RRSP should be careful about buying mutual funds that may pay a taxable year-end distribution of recent investment gains.

If you have sold investments at a profit this year, and have no losses to carry forward from previous years, consider selling investments before late December that would produce an off-setting capital loss.

Be sure to wait more than 30 days before repurchasing the investment sold at a loss or it will be considered a superficial loss. There may be situations where a superficial loss might be advantageous to a couple, but seek professional tax advice first.

One thing you may be asked to consider at this time of year is any pitch for tax shelters built around some charitable activity.

You may get a tax refund before Canada Revenue gets around to checking out the scheme, but tax authorities have made clear they will eventually hunt down and disallow every one of them.

 Source: James Daw from Yourhome.ca

Watch for costly money mistakes. Every dollar you avoid throwing away brings you a step closer to your financial goals.

When it comes to money, most of us like to think we’re pretty sharp. We know enough to comparison shop, stay out of debt and set up some sort of savings plan. Sometimes though, we just get things wrong.Last year, Consumer Reports highlighted how making poor choices can cost you. Some of the blunders identified were more applicable to U.S. investors but here are a few that apply equally in Canada.

Investing too conservatively during retirement
Conventional wisdom suggests that as you age, you should shift money out of stocks and into more stable investments, such as bonds. For instance, a popular rule of thumb is to subtract your age from 100, the difference being the percentage of stocks you should keep in your portfolio. Being too cautious once you retire can hurt you though, Consumer Reports suggests. Annual returns on bonds may barely keep pace with inflation, while stocks typically provide returns that do.

* Even in retirement, be sure to keep as much of your money in stocks as your comfort level allows.

Retiring too early
Attractive as it may seem, early retirement may mean leaving too much money on the table. First, you give up income you would have earned during what might be the best-paid years of your career. Retiring early can also result in sharply reduced pensions, including CPP, as well as lost benefits. Since OHIP and other provincial plans don’t cover many health costs, you’ll have to search out individual health insurance at an age when costs are much higher.

* If you’re in good health and have a choice about when to retire, consider waiting until you’re a bit closer to full retirement age.

Getting divorced
If divorce is unavoidable, make sure you take steps to reduce the financial impact. Hiring lawyers can ensure everyone’s interests are represented, but the more issues spouses want to contest, the more billable hours they face. Consumer Reports found that a low-conflict divorce can generally be mediated for about 75 per cent less than going to trial. Since the intensity of the conflict is the major driver of legal costs, work more toward diplomacy than war. Lower-cost mediation works best when both parties are on a fairly equal financial footing and are able to work together without acrimony.

* Property settlements generally mean a 50-50 split in most provinces. Find a way to get along on custody, the most contentious and therefore expensive issue.

Adopting a healthy lifestyle
Unhealthy habits mean higher life-insurance premiums. Consumer Reports compared the costs of a $1 million term insurance policy for a 40-year-old, healthy male with one who had one of several risk factors often associated with poor health habits, including smoking. The additional costs in premiums for higher-risk men worked out to roughly $42,000 over the subsequent 20 year period.* Before applying for life insurance, consult a doctor about the best ways to bring your vital stats in line with the “preferred plus” underwriting requirements.

Underfunding your retirement
The only way to make RRSPs really work is to start contributing early. A longer time horizon creates more tax-deferred income through the power of compound interest. Look at it this way: At age 20, George makes his first RRSP contribution – depositing $1,000 into his plan and contributing the same amount each year until age 65. Assuming an average rate of return of 5 per cent, the value of George’s RRSP at 65 is $167,685. His older brother Raymond doesn’t get started in an RRSP until he’s 30 years old, depositing the same $1,000 and making the annual contributions until age 65. At the same return but with less time to compound, Raymond will end up with just $94,836 – $72,849 less than his little brother.

* Contribute as much as you can afford to your RRSP and don’t miss out on the catch-up provisions if you fall behind.

Underinsuring a home
If you’ve lived in the same house for at least 10 years, it’s likely worth much more than you paid for it. But if you haven’t updated your homeowners insurance and disaster strikes, you could lose those gains. Some insurers automatically increase your policy limit each year to reflect inflation changes but others don’t. Be sure to review specific items as well. For example, if you purchased extra insurance coverage a few years ago for a high-end bike, you may want to reconsider now that the bike has depreciated in value.

* Check out an inflation-protected policy. Make sure it would pay to rebuild according to the current housing standards in your area.

Carrying a credit card balance
Owing money on a credit card is a costly mistake that can take an incredible toll. If you have a card with an interest rate of 15 per cent and you pay only the minimum due each month, it will take you 22 years and 2 months to retire a $5,000 debt, and you’ll have paid $5,729 in interest, CR calculates.

* Use credit cards for their convenience but plan to pay off the balance in full every month.

By Gordon Powers MSN.ca

With many homeowners opting to take advantage of the Home Renovation Tax Credit by fixing up or remodelling their homes, it’s always wise to educate yourself on signs of contractor fraud to ensure you don’t end up paying for work that never gets completed.

Following are five red flags that may indicate a contractor is not legitimate:

1. The company does not list a number in the phone book. This may indicate a fly-by-night operation that will be here today and gone tomorrow. They may seem legitimate in the beginning but, as soon as you make your first payment for the job, they may vanish.
2. Asks you to pay for the entire job up front. This contractor will be long gone well before your project gets underway. Or, worse yet, the contractor may have started the project, leaving you with a ripped up home and depleted funds.
3. Only accepts cash. A legitimate business should have the appropriate financial accounts in place to accept a variety of payment options from clients, including personal cheques and credit cards. If a contractor only accepts cash, you probably won’t see them again once they receive a payment.
4. Solicits door-to-door. Most legitimate contractors find enough work through word-of-mouth referrals and advertising. If they need to drum up business by going door to door, they probably are not an established, local operation. Chances are this contractor is running a fly-by-night business.
5. Offers exceptionally long guarantees. The contractor may be making promises that can’t be kept solely to sucker you into hiring them for the job. The contractor could be inexperienced or may be running a fly-by-night business.

The best way to protect yourself from contractor fraud is to seek referrals from people you trust who can vouch for the contractor including friends, family, colleagues or your mortgage or real estate professional.

It’s also important to read and understand every word of a contract before signing it. If you don’t understand something, ask for clarification.

Also keep in mind that you should never sign a contract with a service professional who makes promises that sound too good to be true. Chances are, this contractor needs to create these incentives to attract customers. If that’s the case, the contractor’s record can’t speak for itself.

Be especially wary of contractors who try to scare you into signing for repairs that they say are “urgent”. Before agreeing to any additional costly repairs, seek a second opinion.

If you’re thinking of embarking on some home improvements, feel free to call me to discuss financing options. I may even know of a trusted contractor in your area who could get the job done well.

Article Provided by: Souchita Rattanarasy of Dominion Lending Centres Optimum (780) 932-2225

What’s the most common mistake people make when they choose a painter? Are premium brands worth the price? Get all of the answers right here from our pro.

What makes you crazy when estimating a job?

JOE NICOLETTI : The assumption that my time doesn’t matter and that I’m ready, willing, and able to offer advice at great length and at no charge. And then when I give the estimate, to be told, “No, I think I can get it done cheaper.” A lot of people shop painters not just to compare price, but also to steal ideas that they then will turn around and do themselves, or ask their grandmothers to do for them. My antenna goes up as soon as I suspect it. I don’t want to do that dance.

What’s the most common mistake people make when it comes to choosing a painter?

Hiring the cheapest guy, and then expecting too much. Or hiring the guy you think you can take advantage of, and then having to make all the decisions yourself.

How much prep work should I expect?

It depends on how many moving parts a room has. Let’s say it has chandeliers, fireplace paraphernalia, alarms, window locks. We catalog and photograph each item before either removing it or securing it from any damage. Then when we put everything back in place, it’s an easy check to see if anything was damaged.

Do you believe in brushes, rollers, or sprayers?

You need a combination of all three. Some of it’s logical, some a judgment call the painter makes. In most cases, for instance, you wouldn’t use a sprayer on trim. The key is not only to use fine brushes, fine rollers, and the best airless sprayers, but also to keep them absolutely clean. Dirty brushes or rollers will leave streaks, and a dirty sprayer will spray unevenly.

Do you paint the trim first, then the walls?

Every situation is unique. Is there a builder involved? Other tradespeople? Are the rooms loaded with fine architectural details? Do the clients have particular preferences? Some ask you to paint the walls first – they want the instant gratification of fast change. Others want to gauge the look of the trim work before anything else is done. Typically, though, it makes the most sense to start with the ceilings and the walls, and move on to the molding, door trim, doors, and baseboards.

What are the best paint finishes for different surfaces?

Anything goes these days. High-gloss oils on walls? Why not! Metallics on glass? Sure! But if you’re asking what the standard is, I’d say satin or semigloss for doors, molding, and trim, and flat for walls and ceilings.

Is it worth paying more for the premium brands?

The premiums spread more smoothly and adhere to surfaces better. They require fewer coats to get that nice uniform appearance. They tend to last longer. They’re more resistant to the normal dirt and staining that comes from everyday life, and they generally hold up to repeated cleanings much better.

What’s your feeling about “green,” nontoxic paints?

I think “green” is an overused word, and a little overblown. A relatively low percentage of clients ask for low-VOC or non-VOC paint. Frankly, a lot of people consider the level of toxic emissions in paint a negligible risk factor.

How many coats will I need?

A primer is a must. And generally two or three coats, depending on the condition of the surface.

How long before I’ll need to repaint?

Barring fires or floods or a rambunctious dog, you could go from five years to forever – with normal touch-up maintenance.

What should I do if the painter is midway into a job and I realize the color is all wrong?

Don’t hesitate. Tell him. In most cases, he’ll do it over for a minimal charge if the change isn’t too extreme. If it’s lacquered red and you decide you want white latex flat, that’s going to cost more.

Should I get a written warranty?

Every job should have a signed contract specifying what you’ve agreed to. It helps avoid misunderstandings, disappointments, and unrealistic expectations.

How do you manage a client’s expectations?

Communicate. Show them you’re listening. Be willing to make changes as the job evolves. Don’t get locked into an adversarial relationship. You’re on the same team.

What can I do to make life easier for you?

Be open to my suggestions. Make me feel like a partner, not an employee. Sure, I want to make money, but I also want to do good work, feel a sense of accomplishment and pride and, yeah, even have some fun along the way. Tell me every once in a while, “Hey, that’s really looking good.” And when the job is done to your liking, say “Thanks.” Makes a world of difference.

By John Montorio HouseBeautiful.com