Put your money where the return is!

Now is a good time to revisit renovations...where to invest your money, and where to avoid spending. Chances are if you're not buying or selling, you're renovating.

The Globe and Mail published a great article you can check out below.

If you are considering any renovations, give us a call - we'd be happy to help with trade referrals and design advice.

Check out the end of the article for some of our favorite trades and suppliers...

What are some renovations that add value to my home?

A good investment in a renovation should increase the value of your home by at least the amount of money you spent, or close to it. A bad one doesn’t get you much of your money back. Here are some investments that have proven to return their value, or close to it:

· Low-cost improvements that make your home look better: Painting, new wallpaper, and items like new rugs and curtains help to brighten and improve the look of a home, and add value to your house if they are done close to the time of sale.

· New or improved kitchens and bathrooms: Improvements to your kitchen and bathroom seem most likely to increase the value of your home. Keep in mind that these improvements lose value over time.

· Improvements to the living room and the master bedroom: These are also good investments and will usually return most of the money you spent, if not more.

· Investments in more efficient use of energy: Oil, gas, and hydro costs continue to go up. That’s becoming more of a concern when people are looking to buy a home. You can make your home more energy efficient as an investment in its value. Some government programs help reduce the costs of these projects. Also, consider buying appliances that waste less energy.

· Keeping up with repairs. If you do a little at a time, you can avoid doing a lot of expensive repairs at the same time. A reasonable amount to spend yearly is 1% to 2% of the value of your home.

What are some renovations that don’t add much value to my home?

· Swimming pool: Make sure you want a pool before you invest in a pool. The cost of putting in one won’t show up in the price that you get when you sell a home.

· Costly appliances: Most people won’t want to pay an extra $4,000 for your home to pay for a $7,000 refrigerator instead of a $1,200 refrigerator. If you pay thousands of dollars for top-of-the-line appliances, enjoy them. You probably won’t get your money back if you sell them with your home.

· Costly landscaping: The way your home looks from the street can really help interest buyers. It's called 'curb appeal.' But if you spend $30,000 in landscaping, don’t expect to get it all back. Most buyers probably won’t see or appreciate the value.

· Renovating in an area where homes are being torn down: Tear-down activity involves homes being sold, torn down, and replaced by bigger, more expensive homes. If someone is going to buy your home and tear it down, a renovation won’t return any of your money. The buyer will have no interest in the building, just in the land.

Remember: Don’t assume you will get all your money back from a renovation

The key to renovating is to keep the house in good repair and do the renovations you want to enjoy. If you think you might be selling in the near future, focus on renovations that are more likely to get your money back.

Thinking of renovating? Call our favorite trades and suppliers first! Don't forget to tell them Mark Richards sent you:)

General Contracting - Cole Contracting - Greg Cole: 416.471.9019 colecontracting@rogers.com

Kitchens - Paula Murphy - pmurphy@irpinia.com

Plumbing - Sean - Athletic Plumbing: 416.845.2659

Landscaping - Paul & Eleanor - Stonehenge: 416.467.6059 www.stonehengedesignbuild.com

Hardwood Floors (install and refinishing) - Mervin 416.731.4079

H1N1 Info

As the H1N1 vaccine has hit the clinics, everyone has a myriad of questions...Where to get it? Is it safe? The best thing you can do is inform yourself.

I like to keep my clients healthy so to help out I've attached links for some of the best resources on H1N1:

Globe and Mail

City of Toronto Info Centre

CBC News

Remember - wash your hands frequently!

Jenny Shops

As our resident designer, Jenny knows the best places and the best deals for your home.

Check out here recent favorites...

For a bit more selection and variety in styles than a store such as West Elm, I've been a fan of G.H. Johnson Furniture Gallery lately. Like West Elm, they usually have a lot of items in stock and any delivery lead times seem to be shorter than a lot of furniture stores.

Another treat is that this can literally be a one-stop-shop for some rooms.

They have an art gallery attached to the store with an amazing selection, and always have great bedding and accessories, including a mirror gallery.

The timing is great to shop - they have a 50% renovation sale happening right now.

They are located centrally at 950 Dupont Street between Ossington and Dufferin.

Check out their site at www.ghjohnsontrading.com.

Looking for more? Pick up the current edition of Canadian House & Home - they have a great removable shopping guide for your home.

Cheers, Jenny

Boom or Catch Up?

You may have noticed reports all over the news that real estate is back.

Home buyers who didn't take advantage of the downturn are now facing bidding wars and over-asking purchase prices. As they say, by the time you realize the market has hit bottom, it's already over.

As of the end of September, the average price in the GTA is up to $406,877, an increase of 10% compared to the same time last year. Sales activity is up 28%.

Mortgage rates continue to be historically low and inventory is increasing, but is this just a catch up from pent up demand of buyers waiting it out and sellers not wanting to list until they felt things were picking up again? Or is this just a historical seasonal peak in the year?

TREB believes this market is a sign of growth and recovery. Growing consumer confidence and financial stability, low interest rates and positive economic news are driving long term investments. They also say indicators such as growth in all categories of the market show widespread movement upward, as opposed to a trend in one particular sector.

As long as inventory keeps up with demand and interest rates stay low, as they are said to be until mid 2010, I believe we will see a steady pace right through to next summer.

But it is a funny market right now. Although there is heated competition in some price points such as the $500,000-$800,000 range, buyers are not willing to be aggressive on anything that is overpriced.

Some sellers are happy to put their home up for sale over market value just on the chance that they get that perfect bite but are driving away the potential for competitive bids by not pricing their home attractively. Buyers are shopping but are very discriminating and taking a much harder look at values, still looking to get a deal where possible.

It's kind of like a car race after an accident...people are getting back out there and going full throttle but with a cautionary foot ready to hit the brake at any sign of danger.

For more information, check out these great links and recent articles:

Check out varying opinions on the real estate market...

GLOBE AND MAIL - BACK TO BOOM

Click on this interactive map to see what is happening to values in your neighbourhood...

TORONTO HOME VALUE SURVEY

Click here for the full Toronto Real Estate Board September Market Watch...

TREB Market Watch


Cheers,
Mark
416.728.2499
mark@markrichards.ca

Where to buy - and why...

Looking to buy but not sure where? Check out the Real Estate Guide 2010 from Toronto Life.

I highly recommend you pick the guide up...even though you can check out 94 neighbourhood profiles online, the printed magazine has a thorough renovation guide with great sources for everything you need.

TORONTO LIFE REAL ESTATE GUIDE 2010