Edmonton Real Estate Blog

Do you have stuff in your home that you need to sell? Perhaps you have some suits or dresses that no longer fit, an older living room set that you’ve just had replaced, or a vinyl record collection you’ve been hanging onto for years.
If a traditional garage sale is not an option for you, there are other ways to sell those items.
For example, you could rent a stall for the weekend at a local flea market. This is relatively inexpensive and can be a fun activity for the whole family.
Another option is to advertise in your local community newspaper. Advertising rates in local publications are often much lower than in major newspapers.
You can also advertise on the internet. There are several popular sites, such as Craigslist.com and eBayClassifieds.com (Kijiji.com in Canada) where you can advertise for free.

Consider this scenario for a moment, the individual on the left invested $2,000 a year for nine years, a total of only $18,000 at which time she became disabled and stopped investing. Her friend on the right took the disability as a wake up call and decided it was time to start her own $2,000 a year investment program but she’s starting nine years later. At the age of 65, when they’re both ready to retire, there is still a difference in their investments even after one of them invested $70,000 over 35 years.

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284

As, April 19, 2010, CMHC made changes to minimum down payment requirement for purchasing rental/investment property. Also, rental income allowance to help qualify has been reduced. Ultimately both initiatives have made it more difficult for investors to purchase additional properties.

In order to purchase a rental property, minimum 20% down is required, hence, making it conventional. For investors to acquire multiple units, they will need to qualify for the mortgages using their own income and rental income.

Different lenders use different formulas for rental income. It is important to ensure you maximize your purchase power by using lenders that will allow more of your rental income.

The most conservative lenders use only 50% of the rental income. This amount is added to the applicant’s income and maximum 44% of that income can be used for housing costs and debt (i.e. Mortgage payment, property tax and heat)

Some lenders will allow you to use all of your rental income given they are declared and verified on your income taxes. These lenders will simply take the positive cash flow to add to your income or add the deficit as a liability.

Other lenders will use a rental worksheet. These worksheets will equate to 70% utilization of rental income.

Since, rental properties are not insured, each lender has their own nuances on requirements. This is where it gets tricky. In cases where investors’ portfolios include multiple units it is important to work with a mortgage associate prior to purchasing to review the portfolio and discuss various options. Also, since large portfolios also involve more documentation it would speed the purchasing process to ensure all documentation is in order.

Feel free to call if you have any questions or would like some more information.

When you’re looking for a new home, you want to find one in a great neighbourhood – or, at least, in a neighbourhood that is on the upswing. How can you tell if a particular area is improving? Here are some common indicators:

• Pride of ownership. Take a walk around the neighbourhood. Do you get a sense that people take good care of their homes? Are the lawns mowed? Is the landscaping trimmed? Are flowers planted? Homeowners are more likely to look after their properties when they like where they are living.

• Home improvements. Are people investing in their homes? Are they getting their driveways re-done? Their windows replaced? Are there signs of home improvement projects? If so, this is a clear indication that homeowners like the area enough to invest in their properties.

• Real estate sales activity. Do homes tend to sell quickly in the area? Do they sell for a good price? If so, the neighbourhood is probably in demand. If people want to live there, it’s a desirable area. • Business investment. Are businesses investing in the surrounding area? Is there an increase in the number of upscale shops, health clubs, restaurants, and other commercial enterprises that often locate near desirable neighbourhoods?

• Community involvement. Are there signs that the community plays an active role in the look and lifestyle of the neighbourhood? Are there neighbourhood picnics, yard sales and other get-togethers? Check Facebook.com to see if the neighbourhood has a community page.

• City plans. Find out what plans the city has for the area. Will there be road improvements done in the near future? Are there any major construction projects on the schedule, such as a new school or community centre. Although such projects can be disruptive in the short term, they may improve the neighbourhood – and, as a result, boost the value of any home you buy – in the long-term Of course, the best way to find out the desirability of a neighbourhood is to talk to a good REALTOR® who knows the area. Call today 780-634-8151

To view and search all MLS listed houses for sale visit us at www.EdmontonHomesForSale.biz

The average university graduate earns almost twice as much as someone with a high school diploma. Over a 30 year career, that could add up to $1.1 million of additional income.1

A $208.33 monthly contribution to an RESP for 18 years combined with a $500 annual government grant for 14.4 years compounded at 6.5% over 18 years can provide you with a pre-tax market value of $99,018 to finance a post secondary education.2

Feel free to contact with questions or more information

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284

1 2001 Census Data – Statistics Canada. Average earnings for a High School graduate: $34,631; for a University graduate: $61,156. Assuming an average annual inflation rate of 1.99% (Bank of Canada,
June 1997 – June 2012), the difference over 30 working years will total $1,095,765.
2 Assuming a $208.33 lump sum contribution on the first of each month, a $500 annual Canada Education Savings Grant (CESG) for 14 years and a $200 CESG in year 15 providing a maximum $7,200 lifetime
CESG. The CESG and Canada Learning Bond (CLB) are provided by the Government of Canada. CLB eligibility depends on family income levels. Some provinces make education savings grants available to
their residents. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values or returns on investment.
Written and published by Investors Group as a general source of information only. It is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax, legal or investment
advice. Readers should seek advice on their specific circumstances from an Investors Group Consultant.
™ Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations.
“Kids need to learn to earn”© Investors Group Inc. 2012 MP1286 (08/2012)

Prettify your porch or patio with these time-sensitive decorating boosts you can do yourself

With advance planning and perhaps a few friends to help (bribe them with dinner out), you can make a big difference in your patio in a single weekend. Arranged from fast and easy (hang lanterns, make a repurposed table) to more time- and labor-intensive (create a canopy, paint the floor) projects, these DIYs are sure to offer something to suit your time commitment and style

1. Make a quick table. Cluster a trio of ceramic garden stools together and top them with a glass tabletop for a nearly instant outdoor coffee table.

2. Warm up a look with candles and solar lights. Enhance the ambience at night by setting out lanterns filled with votive or battery-operated candles, solar garden lights and string lights. Try surrounding your seating area with lights, light up the pathway or place lights in the landscaping along a fence line.

3. Enhance your seating area with a backrest. Use a small curtain rod with decorative finials to re-create the look of this eclectic patio seating area. Just be sure to measure the hanging height of your rod with someone seated there — you don’t want it so low that it will be bumped into. Finish by sewing fabric ties to a rectangular cushion and hang it from the rod.

4. Try a wall planter. Jazz up a big, empty wall with a wall-mounted garden. Use store-bought planters designed for this purpose or fashion your own using found materials.

5. Add style and privacy with outdoor curtains. Outdoor curtains can be pulled closed to block unsavory views, provide privacy from close neighbors and shade you from the sun — and even when open, they add to the ambience.

If you have any sort of framework or roof on your patio, you can attach curtain rods. Be sure to choose hardware and curtains meant for outdoor use for the most durability.

6. Repaint outdoor furniture. Give your old patio furniture a lift with a bright new coat of paint. Even metal furniture can be repainted — look for a paint designed for use on metal, such as Rust-Oleum.

Don’t feel like doing it yourself? Have your metal patio set powder coated at an auto paint shop instead.

7. Create a chic new floor with gravel. If the only space you have to work with has a floor made of cracked concrete or unsightly asphalt, consider covering it up with a few inches of compacted, crushed gravel.

8. Build a unique planter from cinder blocks. Architectural photographer Zack Benson came up with the innovative idea of using stacked and glued cinder blocks to create a cheap and easy DIY succulent planter. You can find more information about this project on his blog.

9. Filter the light. Unfurl rolls of bamboo trellising over a pergola or similar structure (free of plants) to form a roof that will protect you from the sun. If you can climb a ladder and wield a hammer, this should be a pretty doable weekend project. Attach the bamboo using a heavy-duty staple gun or by hammering in U-shaped nails.

10. String up a canopy. Whip up a lovely, albeit temporary, outdoor roof by tying lengths of lightweight fabric to bamboo stakes, fence posts or even a nearby tree.

11. Paint the ceiling or floor. If you have a covered patio, paint the ceiling for a major lift. Pale blue and sunshine yellow are great foolproof options.

If you have a cement or wood floor on your patio, consider giving it a new look with a few coats of porch and floor paint.

12. Get crafty with stripes or stencils. Take your floor paint job to the next level by painting wide stripes or layering stenciled designs over a solid base color.

Turn Your Carport Into an Outdoor Dining Room

Source: Houzz.com

A good credit report and credit score are important factors in determining whether or not you will be approved for a mortgage. Here are some simple steps you can take to maintain a good credit history and improve your chances of being approved.

What is a Credit Score

Your credit score is a number that illustrates your financial health at a specific point in time. It also serves as an indicator of your financial past, and how consistently you pay off your bills and debts. This is one of the factors mortgage professionals consider in qualifying you for a mortgage.

How to Check Your Credit Score

To find out your credit score, contact Canada’s two credit-reporting agencies: Equifax Canada at www.equifax.ca and TransUnion Canada at www.transunion.ca.

For a fee, these agencies will provide you with an online copy of your credit score as well as a credit report – a detailed summary of your credit history, employment history and personal financial information on file. You can also obtain a free copy of your credit report by mail. If you find any errors in your report, notify the credit-reporting agency and the organization responsible for the inaccuracy immediately.

If You Do Not Have a Credit Score

It’s important to begin building a credit history as early as possible. You can begin to build one by applying for – and responsibly using – a credit card. Your financial institution or mortgage professional can help.

How to Improve Your Credit Score

Demonstrating your ability to manage credit is key to maintaining a good credit score. There are a number of things you can do to improve your credit score.

These include:

• Always pay your bills in full and on time. If you cannot pay the full amount, try to pay at least the required minimum shown on your monthly statement.

• Pay off your debts (such as loans, credit cards, lines of credit, etc.) as quickly as possible.

• Never go over the limit on your credit cards, and try to keep your balances well below the limits.

• Reduce the number of credit card or loan applications you make.

Once your credit score has improved, work with your mortgage professional to obtain a mortgage that works for you.

Find Out More

To find out more about credit scores and reports, visit the Financial Consumer Agency of Canada website at http://www.fcac-acfc.gc.ca and download or request a free copy of their guide, Understanding Your Credit Report and Credit Score. This guide provides practical, straightforward information on how to obtain and understand your credit report and score, as well as how to build and maintain a good credit.

Source: CMHC Resource

Many Canadians wait until the RRSP deadline each year to make their annual contribution, but they may be leaving the possibility of increased investment returns on the table. There really is a tangible benefit to making RRSP contributions early. Investing annually on January 1 can make a significant difference but, if your budget won’t allow for that, talk to us about the value of monthly contributions.

Feel free to contact with questions or more information

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284

If you are planning to purchase a new build. There are two types are mortgages available. Completion or Draw mortgage. A Completion mortgage is when builder does not require funds require funds until property is completed.  Whereas, in terms of a Draw mortgage, the funds are advanced during the building process. The builder will advise which type is required and you simply advise your mortgage associate.

New builds require 6 to 12 months. In which, the mortgage with a one year rate holds will be required. Minimum down payment is 5%, which the builder will require as a deposit.

Borrowers qualify at time of purchase.  Once your purchase contract is signed with the builder, you have roughly 10 days to work with a mortgage associate to get the financing approved. Within those 10 days, buyers will sign documents and provide supporting documentation for the lender to review.

It is important to note that the lender will recheck credit and employment before possession. So, ensure you don’t finance any large purchases since any changes in your circumstance could negatively affect your application and possibly disqualify you completely.

Aside, from the type of mortgage, builders may differ in their process including upgrades. In some cases the purchase contract will includes all upgrades at the time of purchase. So, the client will be required to decide on their upgrades upfront and the mortgage amount can be determined at time of approval.

Whereas, others the purchase contract simply outlines cost of the base model. Upgrades are to be chosen at a later date and a final price quote will be provided a month before completion. In this case, I will estimate the total cost of all upgrades and submit for a mortgage amount that is includes the estimate. When, the final price quote is received then the lender will re-adjust the mortgage amount to reflect actual amount.

Although, different builders may require different types of mortgages or the processes may vary. I can help you get the right mortgage and make your purchasing experience a breeze!

If you need clarification, don’t hesitate to contact me. I would be happy to explain further.

We are heading into a strong spring market. In the last 30 days we have seen an increase in sales. In the last 30 days we have seen 801 single family homes sold in in Edmonton proper.

Currently in Edmonton proper we have 2,164 single family dwellings for sale. which is about average for this time of year.

This now gives us a listings to sales ratio of 2.7:1 which is far below the 4:1 that creates a balance market.

With a ratio that is considerable below the 4:1 need for a balanced market is a strong indicator that their is strong upward pressure on valuations. Expect the cost of homes to be going up.

If you are thinking of buying this year buy now and save yourself potentially thousands of dollars.

If you are ready to buy call us here at Team Leading Edge 780-634-8151 or visit us at www.EdmontonHomesForSale.biz

Source: Realtors Association of Edmonton