Stop the Smell!

With city workers on strike, it can be frustrating not knowing
exactly what services are and are not availble.





I've had buyers who want to purchase a home but can't find out if they are eligible to put in a parking pad. You can't get a building permit to start renovations. And yes, the smell and sight of garbage is starting to grate on everyone.

Check out this City of Toronto link for current updates and status of all services, as well as where you can take that stinking garbage.

Am I ever glad I don't advertise on garbage cans :)

How the Strike Affects City Services

Markets & Mortgages

Markets

Even thought kids are out of school and people are in the mindset of summer vacation, the real estate market didn't get the message!

The GTA resale housing market just had the best June on record, Ontario saw a 15% increase in building permits, and interest rates continue to be a huge motivator.

Check out the full report and commentary from the Toronto Real Estate Board below as well as the full Market Watch report for prices and activity in your neighbourhood..





GTA Resale Housing Market Posts Best June on Record


TORONTO, July 6, 2009 - In June 2009, Greater Toronto REALTORS® reported a record10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.1

"The record result in June is testament to the fundamentally sound housing market in the GTA," said the Toronto Real Estate Board’s newly appointed President Tom Lebour.

"An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market."

The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.

"The re-emergence of seller’s market conditions has exerted upward pressure on home prices," explained Jason Mercer, TREB's Senior Manager of Market Analysis.

"Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing."

City of Toronto ("416") 2008 to 2009 Snapshot:

2009 # of sales: 4,362
average price: $441,703

2008 # of sales: 3,481
average price: $433,082

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


Mortgages







From the desk of Peter Majthenyi and Andre Semeniuk:

With fixed mortgage rates being so low, why would I go variable?

I have been listening to many borrowers struggle with the fixed vs. variable dilemma for quite some time.

The challenge is to keep in mind that most of us will have a mortgage for 15-20 years and not just for the next 5 years. It is important to not fixate on the current mortgage rate, but rather consider the long-term interest you will pay.

Choosing 5 year fixed or 5 year variable … we will likely pay a higher rate in the future regardless. Currently variable is about 1.5% less than a 5 year fixed term, so what's your rush to pay 1.5% more? This is a lesson in not paying any sooner than we have to!

A variable rate is about saving thousands of dollars in the first years of a mortgage, allowing our money to be better leveraged in the short run, for instance to increase savings or provide cash resources.

Our ambition is to keep our hands on our money as long as possible before we have to forfeit it to the lender. Ideally, the best strategy is to direct these funds to the mortgage principal immediately considering the first few years of a mortgage is primarily interest.

Variable rate mortgages are based on the Bank prime rate that is dictated by the Bank of Canada, which has committed to not changing it for at least another year.

Once our economy begins to show signs of sustained recovery we can expect this rate to increase, which is typically adjusted by .25% a couple of times a year.

The Bank of Canada only meets 8 times a year and is reluctant to change these rates upward frequently and, when they do anticipate changes, they are well publicized in advance and therefore are quite predictable.

If you are considering a traditional 5 year fixed term then you are most likely concerned about rates rising significantly in the future. If so, you should consider this; if 3 years from now rates start to skyrocket you will very disappointed that you are in a closed mortgage and cannot convert prior to renewal. Fixed mortgages require you to wait until maturity before considering new mortgage options and by then it's usually too late.

A variable mortgage allows you to convert to another mortgage at anytime with no penalty. This convertible safety net is what we all want so we avoid future disappointment, especially considering we are not paying our mortgage off anytime soon.

It is financially prudent to try to avoid being locked into any financial product because flexibility is your savior to paying less interest. I can tell you that anyone you know who currently has a mortgage problem is most likely in a fixed term.

Chances are, once you have a variable mortgage you will leave it variable until the day you pay your mortgage off and never consider a fixed mortgage again. However, if you are simply terrified of significant future rate hikes and feel current mortgage rates are very suitable for your budget and tolerance, than please consider a fixed term of 10 years or longer.


The Power of the "Mortgage and Line of Credit COMBO!"

Those that have good equity, good income to mortgage ratios, and acceptable credit should consider nothing else than a "Mortgage & Line of Credit Combination". This product is the future of mortgages and attaining financial independence sooner.

Currently, only about 6 of 52 mortgage lenders carry this product line, but in the coming year or so they will all need it in order to stay competitive. There are no premiums or additional cost to set up or maintain a "Mortgage Plan" like this.

This mortgage package is an excellent vehicle to help pay your mortgage off much faster, while never having to approach a lender again for any future financing requests. Used correctly it is likely the most powerful weapon in your financial arsenal.

Briefly, as you pay your mortgage principal down the credit limit on your secured line grows and becomes available immediately. And currently, the interest rate is 3.25%. This mechanism allows borrowers to direct all their savings and income to paying the mortgage principal down while never leaving them short of cash, allowing their money to work far more efficiently.

This popular line of credit product is also paramount for those that want to engage in tax-efficient investing (The Smith Manoeuvre). To learn more, we should connect to explore if this is a program available to you, or someone you know.

Please introduce our material to anyone you may want to empower with the most current mortgage information that Banks often neglect to share with us.


To connect with Peter today, go to http://www.mymortgageplanner.ca/

Jenny Shops!

As our resident designer, Jenny helps our clients maximize the value of the homes when they are selling and helps make the most of the homes they buy through her design expertise.

That means a lot of shopping!

Clients often ask where they can find great furniture, accessories, and the best deals for home improvement supplies.

Check out her favorite sources, suppliers and stores, featuring West Elm this month.

Want to know where to find what you're looking for? Just ask!

jenny@markrichards.ca


GREAT DEALS: BB Bargoons July Clearance Sale

10 Days only - July 9th-19th Keele Location

BB Bargoons is having their semi-annual clearance sale and marking down premium quality select fabric, furniture, decorative accessories and drapery at up to 75% off. Look for brand names such as Beacon Hill and Robert Allen at ridiculously low prices.

http://www.bbbargoons.com/










THIS MONTH: Great Style, Great Value, and Great Stock!





As someone who often needs to buy furniture and accessories 'yesterday', I have truly come to appreciate West Elm.

Anyone who has been excited to find the perfect piece for their home, only to find out it will take 4-10 weeks for delivery knows what I'm talking about.

Located in Liberty Village, West Elm is a sister company to Pottery Barn but with a more contemporary, zen style (think more Crate & Barrel).

They offer a great selection of furniture, as well as the full spectrum of accessories.


For the decorating-challenged, their products all coordinate and flow together, tending towards calm neutrals and playing with textures. They have a great core of basic pieces but with a nice side of unique, funky suprises as well.




The quality is good, prices fall around the halfway mark between Ikea and Pottery Barn depending on what you're looking for. Not to mention the great sales they offer.




The best part? They have a massive warehouse so most items can go home with you or delivered within a couple of days.

Their staff is unbelievably helpful and friendly without being overbearing and can really help you pull a room together or track down a piece that will fit.


You cannot order online for delivery in Canada but they carry pretty much everything you see on the U.S. site in their Toronto store.

Enjoy shopping!
- Jenny

http://www.westelm.com/

Markets & Mortgages

May 2009 Market Watch

It's been a hot spring market as evidenced by a two percent increase in activity from May 2008!

I believe this has been a result of pent up buyers who have been holding off until the market softens but have other reasons motivating a purchase other than just price. It's also a result of incredibly cheap money.

Check out the full report and commentary from the Toronto Real Estate Board below..







GTA May Resale Housing Sales Higher Than Last Year
TORONTO - June 2, 2009

In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two percent from May 2008 – the first annual increase since December 2007.

The seasonally adjusted annual rate of sales in May was 81,300. “The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill.

“Many home buyers have taken advantage of extremely low mortgage rates.”

The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.

“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis.

“Home sales have increased strongly relative to new listings, bolstering home prices.” Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year.

For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions.

By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.

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


Mortgages

Rates have inched up...but still great historically speaking according to Peter from Mortage Architects...






"It appears commodity prices are rising, as well as the Canadian dollar. Now we can expect a slow and gradual rise in mortgage rates to more normal levels .... keeping in mind that all these rates are historically amazing!

A quarter percent here or there on your mortgage should not influence you to not buy or refinance now ... 2009-10 is likely the best time to make your "Mortgage Move" considering the odds are very very low we'll have these kind of borrowing rates in our life time again.

Be sure your "Mortgage Plan" is reviewed now regardless of your situation to ensure there's no regrets at renewal time. We are here to help you and your friends with that assessment, where Banks are not."

The sooner the better - Peter & Team

Check out current Posted Rates and his Best Rates....

Posted Rates*

6 mth - 4.75%
1 Year - 3.9%
2 Year - 4.05%
3 Year - 4.15%
4 Year - 4.84%
5 Year - 5.45%
7 Year - 6.30%
10 Year - 6.80%

Best Rates*

6 Mth - 4.25%
1 Year - 3.29%
2 Year - 3.5%
3 Year - 3.15%
4 Year - 3.69%
5 Year - 3.75%
7 Year - 5.10%
10 Year - 5.19%

Variable Rate 2.65%
Prime Rate 2.25%

*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE.

Another Sleepless Night

Having been in the business a while now, I like to tell my clients what they can expect as honestly and realistically as possible.

The other night, I was talking to a couple who were preparing to put an offer on a property the next day in a multiple offer situation. I warned them they may not sleep well, or not at all.

When we're getting a home prepared for sale, there are a lot of deadlines, things to do, changes to make and of course the emotional upheaval of letting strangers into your home and moving on. I warn clients that they may hate us at times in this process, and that's ok.

Circumstances sometimes force people to be in one or both of these situations, but most of the time it's for great reasons.

No matter what the scenario, I get to see people at their best and their worst.

Here is what I've learned and how you can deal with the stress of selling and buying, and maybe life in general.


1. Even though it feels like it at the time, things are not as bad as they seem.

When your primary focus is buying or selling a home, it can become all-consuming. So when one thing happens that is not in your control, it can feel like a gargantuan problem.

When we were selling our own home, my wife was trying to get my daughter and our dog out of the house. My daughter had a complete meltdown, wailing on the threshold of the front door while the dog kept running back inside. Meanwhile, the agent and his buyers were on their way up the front steps for a showing.

I received a phone message that I can't repeat but she now looks back and laughs at the situation and realized that it was just 10 minutes of hell because she didn't give herself enough time to leave.


2. Things really do work out the way they were meant to.

If an offer isn't accepted on a home, a buyer is just one step closer to geting the right one. It doesn't feel like it at the time, especially when part of the buying process is envisioning yourself and your life in a home, only to have it taken away if it doesn't work out.

But when you sit back and enjoy that first glass of wine in your new house, you'll know it all worked out for the best.


3. Everything feels personal, even thought it's not.

When buyers are offering on your home and don't give you the price you want (right away :) it's not becauase they are trying to hurt or offend you, they are just trying to get the best possible deal for themselves.

Same thing goes when someone rejects your offer. That's what agents are for...to be more neutral so that they can see the strategy and plan the next move, not get ticked off and react emotionally.

I learned that when selling my own house - even though I am an agent, I didn't have that advocate to buffer the emotions and it definitely impacted me.


4. Sometimes, emotions will overwhelm you.

Selling and buying a home is usually related to a major life event. Your family is growing, you have changed jobs, your kids have left home.

It also means leaving a home that you may have a big emotional attachment to. Perhaps your kids were born there, or it was your first home as a married couple.

Whatever the reasons, there is a lot of emotional baggage that comes with moving. Don't let it creep up on you. Acknowledge that it's a milestone and let it go.


5. Second guessing is bad.

Because a lot is at stake, many people start second guessing their decisions and let the advice of poeple who are not necessarily professionals sway them against their gut instincts and the advice they are getting from those who are in an educated position.

I give my clients what my opinion is based on being in the market every hour of the day, and my understanding of what they are trying to achieve. But I also tell them that they have to be 100% comfortable with any decisions they make as ultimately they are the ones who will be living with the outcome. That covers everything from when to buy, what to pay, how much to sell for and when to make a move.

Be comfortable with your decisions but make sure they are not clouded by emotion, greed, or your good old uncle who suddenly becomes a real estate expert. And trust your real estate agent. :)

Our Newest Feature - Jenny Shops!

Welcome to our new feature - Jenny Shops!

As our resident designer, Jenny helps our clients maximize the value of the homes when they are selling and helps make the most of the homes they buy through her design expertise.

That means a lot of shopping!

Clients often ask where they can find great furniture, accessories, and the best deals for home improvement supplies.

Now, each month we're going to feature Jenny's favorite sources, suppliers and stores.

Want to know where to find what you're looking for?

Just ask!

jenny@markrichards.ca


BIG DEALS:

Located in the Beach, a great garden and outdoor accesory store Cool, Green and Shady is having a 40% off sale as they are moving to Kingston Road in a few weeks. Check them out for stunning laterns, gardening supplies and great planters.


Cool, Green and Shady
2012 Queen Street East (Across from Kew Park)
416.699.4004


THIS MONTH: Patio Season

With summer and the hot weather just around the corner, everyone is thinking outside the house. After scouring the city for quality, value and style I found Southport Home.

Whether you are looking for a contemporary look or a more traditional feel, this store offers a lot of options at either end of the spectrum.

Here is why they are different from a lot of other patio furniture stores.

Value
They offer all-season wicker with Sunbrella fabric for half the cost of other designer stores with the same look and quality. They also don't charge extra for removable fabric with zippers!

Speed
Many other suppliers will take 4-8 weeks on average because they have their cushions made off-site. Southport Home has an in-house seamstress and a massive on-site warehouse so you can get most items within 1-2 weeks.

Customer Service
The staff are great...friendly and knowledgable. They deliver when they say they are going to deliver and offer full assembly and placement.

Check out their site for products and contact info at http://www.southporthome.ca/

Yard Sale for the Cure - May 30th!

On Saturday May 30th, founding partner RE/MAX is sponsoring ‘Yard Sale for the Cure, a one-day event that brings neighbourhoods across the country together for a massive yard sale in support of breast cancer research and patient care.

The event, which provides homeowners a unique opportunity to clear clutter and unload items no longer in use while simultaneously raising finds for breast cancer, is the natural evolution of RE/MAX’ involvement with the Canadian Breast Cancer Foundation -- Ontario Chapter.

RE/MAX has been instrumental in programs such as Primary Prevention Research and Breast Care and Health in Ontario since 2004.

Please join us in our fight against breast cancer by holding a yard sale or shopping for bargains and treasures on May 30th, 2009.

Interested homeowners can register on line at http://www.yardsaleforthecure.com/ to get a Yard Sale for the Cure kit.

Kits are available for $20.00 and includes a lawn sale sign, hat, posters, pink balloons and information package. One hundred per cent of funds donated will support breast cancer research and patient care.

Only by working together will we find a cure for breast cancer.