Competition Bureau and October Stats

Many of you over the past number of months may have been following the talks between the Competition Bureau and the Real Estate Biz. The following are my opinions based on my understanding of the facts.



The media has made a big deal about this new agreement between the Competition Bureau and the Canadian Real Estate Association. Many headlines have stated that consumers will save money and it's now "easier" to sell their properties on their own....this is not really the case. The perception is that you can now use the MLS system without a Realtor. That is not correct.

The MLS system is a system for Realtors. Always has been and always will be. Realtors have developed and paid for this tool. It belongs to Realtors, not consumers. Realtor.ca is an advertising site for consumers. In order for a listing to be posted on the MLS system one needs to use a Realtor. This system only has it's value because the information can be trusted. Any Realtor who puts a listing on the MLS system must verify the information and is held to a code of ethics when dealing with it. This has not changed.

Essentially the agreement with the Competition Bureau keeps local real estate boards from discriminating against Realtors who choose to list "mere listings" or listings with only a very limited number of services attached. My understanding is that this does not change anything for our local KW real estate board as there were never any rules or bylaws that kept those listings off the MLS system. So, now consumers can use a Realtor for a negotiated rate, for negotiated services to sell their property.....oh....wait....that's the way it was before the agreement!

The United States went through very similar changes in the past couple of years with the NAR (National Assocition of Realtors). My understanding is that after a short amount of time the changes made down there actually ended up increasing the average commissions paid to Realtors, not decreased as the media often likes to portray.

A question I've received a few times over the past few weeks is how this changes things for me in my business. My answer is simple, business as usual. I am a full service Realtor who offers knowledge, experience, and service guided by a code of ethics. There will always be consumers who recognize the value of a full service Realtor and for those folks I am here. My services and my commissions have always been negotiable, but ultimately noone works for free and I believe that the value I add to the purchasing or selling process is worth the commissions I charge.

I've had a few experiences with "mere listings" or FSBO (for sale by owner) properties lately. One "mere listing" property I showed resulted in the seller later asking me for advice because the agent they had their property listed with is an agent in a city 6 hrs away and had not been through the property. Given that my code of ethics dictates that I cannot interfere with an existing contract I can't be giving advice just because they've chosen an agent who's not willing to offer that service. Sorry folks!

I had a lovely dealing with a great FSBO (for sale by owner) seller recently when my clients purchased her property. She told me when people congratulate her on selling "on her own" she's been telling people that the only reason things went so smoothly is because the buyers were working with a great agent (me!). She also had an "in" with a great real estate lawyer which certainly helped her end of things. Even though she sold privately she recognized the value of having a Realtor involved, she paid a commission, and she armed herself with a good lawyer to cover her end of things.

There are many out there who feel they can adequatly do what I do without the experience or knowledge. And for some it may work....for others not so much. One local example I've recently heard was of buyers purchasing a property through sellers who later found out that the sellers were actually the tenants who had no legal rights to sell the property but had decided to put up a "by the owner" sign, collected a nice hefty deposit of $10,000 from the buyers who thought they were getting a "great deal" because they weren't working with a Realtor and then those tenants disappeared. Those buyers are now out $10,000. Ouch.

So, that's my 2 1/2 cents on things. Please don't hesitate to call me or email me if you have any questions. Or send a comment if you wish to continue some dialogue and start some discussions on this topic.

In close, here is the link for the October stats for the KW real estate market and a link to a great site giving more information about the value of working with a Realtor. Take a peek! Thanks for reading!

http://www.kwreb.on.ca/k-w-average-home-price-jumps-14-3-percent-in-october/
http://www.howrealtorshelp.ca/

Fall Update

It's been a busy fall.....as evident by the few blog postings of late! :)



This fall I've had the pleasure of seeing a number of clients move into their new homes. Last week I was able to catch a quick visit with T&H to see them all settled in their new digs after a busy summer of moving and getting married! I have such great clients that they even think of me while honeymooning! H&T took this pic for me while on their European Honeymoon. Maybe you'll see the 3 of us on House Hunters International one day! lol

September Stats came in and things heated up from the summer months and the market in KW continues to look like it will be strong and balanced for the 4th quarter.
http://www.kwreb.on.ca/k-w-home-sales-wake-from-summer-slumber/

As part of keeping my real estate licence, we as Realtors are expected to keep up with our education and take courses each year. Some of the courses I took part of this fall included ones on Heritage homes in KW and Surveys. We had speakers from both the city of Waterloo and the city of Kitchener speak about some of the areas that have heritage status and some of those areas and specific homes that are on a list of properties that may be added to the list in the future. If a property has a heritage designation there may be restrictions as to what can be done to that property. ie. an owner may not be able to demolish an existing structure. Valuable information for a homeowner to know about a property they may be considering purchasing.

As many of you may have been following the news, the Canadian Real Estate Association has come to an agreement with the Competition Bureau in regards to what is being referred to as "mere postings". My next blog posting will discuss this a little further and give you some of my thoughts on the matter as I know a few of you have emailed or asked me about how this will effect my business.

In closing, congrats to B&S, N&E, Z&C, R&H, and T&I, just some of the awesome couples I've had the pleasure of working with this fall! Thanks for putting your trust in me to help you with your property sales and/or purchases!

August Stats

August Stats:
http://www.kwreb.on.ca/temperatures-hot-home-sales-not-so-much/

And in case you missed it, KW was ranked number 2 as best place to invest in real estate!
http://news.therecord.com/article/758347

The fall market thus far has picked up from the summer and trekking steadily along. Whether the market is hot or cold, this is true...the homes that show well sell for more and quicker than those that don't.

Check out this beautiful new listing at 136 Dellgrove in Cambridge.

http://www.jonkerteam.com/ or on MLS shortly.

$444,900: Stunning Mattamy home convenient to the 401 with numerous upgrades including hardwood, ceramics, deck, granite, luxury master ensuite, upper laundry, and an upper den which can easily be used as a 4th bedroom. All this backing onto greenspace.

Come visit me Saturday 2-4 for an open house!

July Stats

Check out the July stats. While sales in July were down aprox 23.7%, prices continued to be up from last year.

http://www.kwreb.on.ca/temperatures-hot-home-sales-not-so-much/

In my own personal business August seems to have been busier than July so perhaps August stats will send things back in the right direction.


The fall market is fast approaching and things are expected to be similar. Slower number of sales expected, but prices holding their own. Perhaps moving from a fairly balanced market to one slightly in the favour of the buyers. Times will tell....


Interest rates were reduced slightly recently, but this may not be an indication of a trend by any means.


This summer has proven to be a good one for a number of my buyers and sellers who have sold or purchased. A few new listings including:



30 Highbarry Cres. $359,900 MLS

A gorgeous 4 bedroom home with 200 sqft professionally built solarium with hot tub. Shows beautifully and has good value with it's ceramics and hardwood floors, master bedroom with ensuite and double walk-in closets.



159 Brenneman Dr. $255,000 MLS

A well priced semi with a beautifully finished basement. Yard has a deck and back onto farmer's field. Baden is only about 10-15 min from KW with a small town feel but only minutes to many amenities. A new school has just been built only a few minutes walk away.


Check out http://www.realtor.ca/ or email me for more info.

And to finish things off a few references from some happy clients:

"Krista's pleasant attitude and professional approach makes it easy to work with her. She provided real benefit to us from offering another set of eyes during our inspection, to explaining contract clause language, to even initiating research on some issues that she knew would impact our transaction. We highly recommend Krista." D&H, Waterloo

"We loved working with Krista. She was always prompt at getting back to us, no matter how busy, and tried to book showings the next day. Her best quality is her emotional intelligence: she listens well and responds to what we as clients need and hope for, If felt like I was looking for homes with a great, long-time friend. We would strongly recommend working with Krista to any family considering buying a home. " T&I, Paris

I'm always so thankful for the great clients that come my way! They really are such a big part of why I love my job!

Just a reminder as the fall comes, if you know someone who may be thinking about buying or selling a property please tell them about me! Referrals are always welcome!

Interest Rates expected to rise!

Expecting a .25% hike.....

http://www.financialpost.com/news/Week+Ahead+Rate+hike+cards/3288001/story.html#ixzz0u7teJzQu

June Stats

Here are the June Stats for KW sales. *Take note that effective this month, rentals have been removed from the stats.

http://www.kwreb.on.ca/Stats/June_2010_Media_Release.pdf

And here's a reference from a fellow agent whom I recently worked with on a deal:

"Thanks for everything Krista. It’s always so refreshing to work with someone as professional and pleasant as yourself. I look forward to working with you again! "

Reference

Here's another reference from a happy client. I'm not quite as superhuman as they make me seem, lol! Thx J&H!


" May 2010. We need to move to Waterloo within a couple of months. We have a 2-year old son and a weeks-old daughter. We are moving from West Virginia, and we have one weekend to make a trip to the area to find a home. We have very specific ideas about what kind of house we want, and the neighborhood we want to live in. In a very hot market, the houses available all seem out of our price range. Most homes are selling at over asking price, and within days of listing. We meet Krista almost by accident, and she offers to work with us.
For a solid month Krista stays in close contact with us by phone and email, providing excellent advice on the Waterloo market, and even helping us think through the listing, marketing, and selling of our home in West Virginia. While we are still in another country, she also personally visits dozens of homes for us and gives us feedback. She knows how busy our lives are. We never have to ask for anything – she is on top of it.
We sell our house at way under our asking price. The Waterloo market is exploding, and it is looking pretty unlikely that we will find a house. We set aside two days to travel to the area. Krista sets up 8 viewings, having pared the list down herself by visiting homes ahead of time and ruling out houses that aren’t going to work. We can trust her completely, because she has really taken the time to understand who we are and what we want.
When we tour homes with her, she pays close attention to all of the important details, and has a lot of knowledge about electrical, plumbing, foundation, insulation and other issues, with an added sense of some key problem areas in the homes in our region and of a particular age. She also knows the cost and difficulty of specific repairs, giving us a real sense of the value of a home. When there is a question she can’t answer, she finds the answer for us right away by making a few calls.
Still, we aren’t finding anything.
After viewing 8 homes, we are exhausted. The toddler and the baby have had a long day, and so have we. We are a bit discouraged. We decide to take a break for coffee. Instead of taking a break, though, Krista secretly heads back to her office and starts working the phone and the internet. She finds a house that hasn’t been officially listed yet. It is in our desired neighborhood – the best part of that neighborhood – and in our price range. Somehow, she gets us into the house for a viewing. We love it.
Because Krista is so motivated, connected, and persistent, we get the house without going over the asking price – a small miracle. Her “pitching” of our offer is creative, honest, and persuasive. Krista handles all of the negotiations skillfully, professionally, and with grace.
Krista even actively helps with our arrangements for insurance, lawyers, and banking. She follows through on the small details of our contract to make sure the sellers complete their end of the deal. She makes everything easier than it should be, and always emails or calls us (and others) back within an hour. When a key document needs to be faxed or delivered, she always gets it where it needs to be, on time. Within a month, we are moving into our new home.
We can’t imagine working with anyone better than Krista; nor can we imagine having found a home if we hadn’t worked with her. We will recommend her to everyone we know. Krista is a wonderful person and a terrific real estate agent.

J&H, Waterloo

WETT - Fireplaces, wood burning appliances

One course I took recently was a great course put on my Gerald Moore, RSM Building Consultants. He spoke on being WETT certified.

WETT stands for Wood Energy Technology Transfer. Basically it's a certification for those who inspect fireplaces, wood stoves, etc. He had a lot of information for agents, but also had some great tips for homeowners in general.

The building code in Ontario did not come about until 1975 and has changed quite a bit since that time. If you have an older home with a fireplace or woodstove, it may be a good idea to have an inspector who is WETT certified come and take a look at your chimney and wood burning appliance. There's a good chance that if your home was built before the 1960's it may not have been built to any particular standards at all.

Wood Burning stoves should have some sort of certification label on them somewhere. That label indicates how that particular stove should have been installed..and of course it's slightly different for every apparatus.

As far as energy efficiency is concerned a great wood burning stove can be an efficient way to heat a home. Most wood-burning fireplaces on the other hand are pretty to look at, but aren't the most efficient way to heat a home as most of the heat goes straight up the chimney.

One last tip, that I found interesting is that getting yourself a flue thermometer is a great way to be efficient and keep your fire at the right temperature. Gerald suggested using some newspaper and start your fire and warm up the chimney. Then get your fire going to between 300-500 degrees F. It's best to keep the fire between that temperature. A smoldering fire will create creosote which is what builds up in the chimney and can cause chimney fires. The less smoldering, the safer fire.

If you have any other questions or would like to be referred to a WETT certified inspector for your fireplace or wood burning appliance, just let me know!

May Stats for KW and update

With the busyness of June I didn't realize that I had not yet posted the May stats, so here they are....with the June stats to be available sometime later this week.

http://www.kwreb.on.ca/Stats/May%202010%20Media%20Release.pdf

June was quite the month. Working with clients who just began their search for a new home, other just moving into their new homes, and a few who have decided to change thier plans and await a better time for thier situation.

I also took a number of courses over the month and will post some tips and info in my next posting.....momentarily! :)

Dishwasher Recall

If you've purchased a dishwasher in the past 5 yrs or so you may want to read up on this article on a major recall. It affects dishwashers under the name of Maytag, Amana, Magic Chef, Jenn-Air, and Admiral sold 2006-2010.

Full CTV article here
http://www.ctv.ca/CTVNews/Canada/20100603/maytag-dishwashers-100603/

As suspected.....The bank of Canada has raised it's rate....

http://www.theglobeandmail.com/report-on-business/economy/bank-of-canada-hikes-interest-rates/article1587719/

Keep yourself educated if you're using a variable rate for your loans right now. Typically lending rates from major lendors willl follow suit with the Bank of Canada hike.

If you need a great Mortgage broker to discuss your needs with just pop me an email!

Re/Max Twin City Realty Inc., Brokerage

Re/Max Twin City Realty Inc. (the brokerage I work for) has ranked 4th place in all of Canada for closed transactions in 2009. Wow! There's something to be proud of.

This brokerage is where I started my career, working at the front desk with over 100 agents at the time, in the Waterloo office. I can speak from experience when I say that after coming across so many agents from many different brokerages, we really do have the cream of the crop at Re/Max Twin City! I think we have a higher standard amongst our agents in terms of customer service and integrity.....and apparently it shows! :) So proud!

For the full story
http://news.therecord.com/Business/article/717031

April Stats and Interest Rates

Another record month for the KW Real Estate market in April.
Read full media report:
http://www.kwreb.on.ca/Stats/April_2010_Media_Release.pdf

Another great month....prices up, number of properties sold up....and....wait.....interest rates up? Yes, that's right! Interest rates up as well.

Interest rates have been a topic of many conversations lately as the indications are there that they will be going up. So, here's my take on things. A few things are true....Variable rates will always be cheaper than their counterpart 5 yr fixed rates. Another is that over time, historically those who choose to go with a variable rate will normally save themselves money. The question is will the variable rate of 1, 2, 3 years from now still be cheaper than the going 5 yr rates today? In other words....do I stay variable or lock in at a fixed rate?

If you've worked with me before you know one of my regular sayings is "I don't have a crystal ball but....."...but in my opinion interest rates only have one direction to go....UP! There's a lot more room for them to go up than to go down. I don't think we will see the 18-23% rates previous generations got to experience, but I personally do think that we may see 7-9% again. I should probably add in my disclaimer here that I am not an economist or a mortgage specialist. But the indicators are there, deflationary period predictions, Bank of Canada indicating they will raise their prime rate come June, a struggling world economy.

Regardless of which route you choose here are a few things to consider.

1) Affordability. Variable rates are great right now, but take a look at your mortgage payments and make sure that if interest rates rise you'll still be able to afford your home. Don't purchase a home on a variable rate that you can barely afford....you may run into trouble in the long run.

2) Education. Keep yourself educated. Find a great Mortgage Specialist who can keep you up to date on the going rates and the upcoming trends. This is essential if sticking with a variable rate. You don't want to find yourself behind the 8 ball because you weren't paying attention to what the rates were doing! When making your mortgage choices it's important to sit down with a mortgage specialist you trust who can help you decide which route is best for you.

3) Personality. As strange as it sounds, I feel strongly about this one. What kind of mortgage you choose will reflect your personality to some degree. The rise and falls of a variable rate are not for everyone. How you deal with stress will give you some indicator as to whether it's for you or not. This is really another area a great mortgage specialist can help.

Now on a personal note......I've enjoyed a variable rate with a cap for a number of years and have saved ourselves a lot of money going this route as opposed to a fixed 5 yr rate. When it came time to renew last year it looked like rates were staying down for a while longer so we threw it on a line of credit and enjoyed super-low rates for a while. Last month when rates went up and the indicators showed they will likely go up again when the Bank of Canada increases their rate this summer, we locked in just before they went up. We were able to lock in for a 5yr fixed at 3.65%. No crystal ball here, but here's hoping!


If you'd like to be put in touch with a great mortgage specialist let me know!

OH at 159 Brenneman

Inviting you all to come join me at 159 Brenneman Dr. in Baden for an open house 2-4 tomorrow (Sat).

Listed for $259,500 MLS Great 3 bedroom 2 bath semi, finished basement, back onto greenspace.

Email me for more information or better yet, come visit me at the open house!

March Stats from KW Real Estate Board

The strong market in Kitchener Waterloo continues both with volume and prices. Volume up 47.1% from last March and prices up 9.6% from last March with an average price of $276,695.

To read the full report click HERE

Enjoy!

Happy Buyers

Another reference from some great buyers:

"We just purchased our first home and working with Krista was such a pleasure. We decided to purchase our house with Krista based on a co-worker's glowing referral and we were not disappointed. As first time homebuyers we were a bit nervous and it was so important to us that we felt comfortable with our agent. Krista was able to put us at ease. She walked us through each of the steps, explained everything along the way, and cheerfully answered all of our questions (and we had a lot!). Her professionalism was greatly appreciated and one of the things we appreciated most about her was her commitment to always being honest and open with her comments and whenever she was answering our questions. We saw a number of houses and we never felt pressured to buy a house that wouldn't feel like our home. Krista is great at answering e-mails promptly and has been excellent at providing us with sources and advice for any questions we have (whether it's lawyers, flooring, or furniture she takes the time to research our questions and does her best to find us an answer). Thanks for all your help Krista!!" - T&H, Waterloo

MLS and the News

I'm sure you've heard plenty of interesting views and opinions in the media in recent days regarding the amendments that the Canadian Real Estate Association made on Monday. It's all very confusing and complicated. And unfortunately, the media has reported a number things that just aren't accurate. Basically the controversy has arisen through the perception that consumers don't have choices. An interesting perception, but is it really accurate?

To be clear, you have always had the opportunity to sell your own home. That has not changed. That is your legal right and there are certainly plenty of advertising sites and companies out there who are more than willing to assist you in that. The government has stipulated that in order to participate in brokeraging buying and selling property you must either own the property or be a licenced Realtor.

You also, have always had the opportunity to seek out different services from different Realtors at different prices. The Canadian Real Estate Association, The Ontario Real Estate Association, Re/Max Twin City, my boss, other Realtors, not even my husband ;) has ever stipulated how I, as a Realtor run my business. I set my own fees and offer my own services. For as many agents that are out there, that's about how many different business models you'll find.

The MLS system is a system that has been built up and developed over the years by REALTORS, through their fees to the Canadian Real Estate Association (CREA). It's not a public system. It's a regulated system which presently can be viewed by the public and used by anybody for a fee by using a Realtor who is obligated to be a member of a local real estate board, a member of the Ontario Real Estate Association, and a member of the Canadian Real Estate Association. And as you can imagine, none of those mandatory memberships come free or cheap!

One of the benefits of the MLS system is that there is a high degree of integrity in the accuracy of the information on it. An accuracy which is highly regulated and for which Realtors, who are governed by a Code of Ethics, are held accountable for. Again, the integrity of the information which makes the MLS systm so reliable is something that comes at a cost.

Property owners have the choice to sell a property themselves, using their choice of methods, they have the choice to use a plethora of different Realtors with a huge variety of different business models. The reality is that things don't come for free. One cannot expect to receive all of the benefits of working with a Realtor without some compensation.

In my opinion, the world of real estate is constantly changing. That's nothing new. And it will continue to change. Therein lies the reason that Realtors are constantly taking courses, researching, and educating themselves in their areas of expertise. There will always be those who choose not to use these expertise, but for those who do, there will always be a cost. That's just as much a reality as change is. And there's my rant for the day! :)

If you have any questions at all I'd love to hear them and I'm always more than happy to research the answers to them! Thanks!
krista@jonkerteam.com

MOULD

Today I had the pleasure of taking a great course on Mould put on by Chad from Pillar to Post Home Inspections.

Here are some highlights I wanted to pass along:

*Mould is everywhere and pretty much every house has it somewhere. The problem is when there are large quantities of the more dangerous spores.

*Mould can grow on wood products, drywall, wallpaper, insulation, carpets, dust (dirt), but can't grow on things like glass or vinyl.

*Mould needs the following 4 things to grow: spores, nutrients, the right temperature (18-24C or 65-80F), and moisture.

*Don't finish a basement in the first year, rather run a dehumidifier to dry it out.

*Contrary to popular belief mould is actually more common in newer homes than in older homes, because they're often too airtight.

*Main ways to avoid it:

- Keep a healthy air flow in your home. It's actually cheaper to heat cold dry air from outside, than it is to heat moist warm air in your home. Keep your furnace fan on at least an hour each day. Keep a window open, just a crack, even in the winter and don't keep your blinds closed up. HRV (Heat Recovery Ventilation) systems on your furnace are great for good air flow because they bring in outside air and pump out stale inside air.

- Keep water and moisture out of your home by keeping a proper grade around the exterior of the house, by maintaining caulking around windows, and keep your roof and flashing in good repair.

* Key point: Don't just clean mould. Find the source of the moisture and fix it or you will just have the problem again.

Any questions just let me know! krista@jonkerteam.com

Happy Buyers

So, over the past few years I've taken pics a few times of clients putting their sold stickers up.....or more precisely, my clients' KIDS! Tiffany and Herb are so excited about their new home they asked if they could have the honour of putting up the stickers. How cute are they? ;)

This may just start a new trend guys!

Congratulations!







Too cute!

Awesome moves!

March Update

You don't have to look far this spring to realized the KW real estate market is already picking up. Between the promise of rising interest rates in the fall, the new mortgage rules in the fall, and the lovely HST hitting us all in July, the rush is on. Many buyers and sellers are trying to get their moves out of the way before all of the changes. Certainly the February stat numbers I posted indicate an increase in the market!

2010 so far has been moving at a steady pace. The year began with a great referral from an agent in London to a couple moving to KW from Brampton. H&N were able to find a great backsplit with little to do and a cute little backyard to relax in. Funny how a house can fit a couple like a glove as soon as you walk in.

I've been doing a number of compartive market analysis's for clients who have been debating whether to move now or not. And working with a number of buyers who are looking for that perfect home. T&H were a great referral from good friends who have used me a few times before. T&H found their first home last week and we'll be busy doing the home inspection this week. There were also a few of my previous clients who referred me to E&N who are now looking for a great place to move to as their second home and hopefully a home they can stay in for years to come.

I've been involved in a number of multiple offers this year already. Homes that were priced right in many senses, but because of the sheer lack of inventory, sold for more with multiple buyers interested.

Later this month I'll be meeting with S&R to list their home, J&H to find a new home in a "new-to-them" community here in KW, and A, who is hoping to find another home and sell the one she's got.

Well, the kids are home for march break so this week is a bit of a juggle. Time to keep them occupied for the afternoon!

Thx for reading! If you have any questions or know someone who might need my services, please let mw know!

February Stats

I think I finally learned how to properly link these stats! :) The hot spring market in KW has begun!


KW Real Estate Board Stats for Feb. 2010

New Mortgage Rules

Well, you've probably heard that Canada's Finance Minister, Jim Flaherty announced some new rules for mortgages in Canada. The hope is to slow the real estate market down a bit and keep people from overextending themselves in credit.

Here's the gist of the rules....I'm by no means a mortgage specialist, so it's always good to go to the expert before making any decisions, but here's my take...

*All buyers will now need to qualify for a 5yr fixed mort. rate. Whether you're going to end up with a 3 yr or a variable rate, you'll be required to meet the standards of that higher interest rate. This way you'll be prepared for the higher rate when it comes. Interest rates are expected to start increasing later this year.

*As of Oct. 15th there will be no more opportunity to get a 40 yr nothing down mortgage. There will be a limitation to a 35 year minimum 5% down. If house prices go down (as they're expected to) then this will help limit the number of people walking away from houses that they owe more on than they're worth, which is what was happening in the US market.

*Lowered max amount that Canadians can withdraw in refinancing their mortgage from 95% to 90%. Limiting those who have been taking out almost all of their equity to spend on other things.

*increasing the minimum downpayment on non-owner properties to 20% down. This will affect those who have been thinking about buying rental properties. Now they'll need more money to put in if they'd like to purchase.

Essentially, these new rules are intended to keep Canadians from overextending themselves with credit that they may not be able to afford when interest rates go up and house prices go down.

Personally, I think they're late, but better late than never. I tend to advise my buyers to be sure that they're doing the math themselves and not just going by what the lenders will give them. When buyers are pre-approved they receive a max amount they can borrow. Then I tell people to take a look at the numbers and add in the fact that they may want to vacation, go to the movies, give, .....EAT!!!....and the max number will likely be less. I like it when I hear buyers say that they've been preapproved for $300,000, but want to keep their max at $250,000.

Cautious buyers are wise buyers.

Feel free to email me if you have any questions! Like I said, I'm not a mortgage expert so it's always good to consult with one before making any decisions on your own finances!

HST and you!

As I’m sure you’ve heard by now, come July 2010 the GST and PST will be replaced by the infamous Liberal HST. What do you need to know about how this will affect the real estate world?

For SELLERS the biggest way the HST will affect them will be in real estate commissions. Presently the real estate commissions you pay as the seller of a property have GST added on top of that percentage. Come July, the entire HST will be applied.

So, as an example: on a $300,000 home, using a 6% commission with a closing date prior to July you would pay a total of $18,000 plus GST = $18,000+900= $18900
With a closing date on or after July 1st 2010, the commission would be $18,000 plus HST = $18,000 +2340 = 20340.
An increase of $1440.

Obviously this will be a significant increase owners should be aware of when planning a budget for selling a home.

For BUYERS the biggest way the HST will affect them will be in purchasing a new home. Presently the GST is not applied to resale homes, but does apply to new homes. Most builders include the GST in their purchase price, but this is certainly something that should always be clarified so there are no surprises. Come July 2010, the HST will be applicable to the purchase of new homes, and you can bet this increase will be passed along to the buyer.

So, as an example: Presently on a $300,000 new home, the builder might add on the 5% GST of $15,000 making the price to the buyer $315,000. Come July 2010, if the buyer includes the HST in their price to the buyer, the buyer will be paying a whopping $339,000.
An increase of $24,000!!!
Thankfully the provincial government has recognized the blow this would have for the new home industry. So, homebuyers will be able to claim a rebate of some of the provincial portion of the tax for new homes priced up to $500,000. The rebate for new primary residences under $400,000 will be six percent of the purchase price (or 75 percent of the provincial portion of the tax), with the rebate amount reduced for homes priced between $400,000 and $500,000.
Will still result in an increase but not as much of a blow.

Buyers of new residential rental properties will receive a similar rebate.


Not considering buying or selling, but you are a home owner? How will this affect you?
In reality, the HST will mean that the costs of all services will increase. Hiring a plumber, a roofer, a carpenter will all cost more money. Heat and hydro costs will no longer be exempt and you'll pay the full 13%.
Rental fees and condo fees are exempt, but you can bet that the increase in costs of heat and hyrdo and property managament fees will be passed along to the renters and condo owners eventually.

Certainly if you have any questions as to how the HST will effect you, I'm no tax expert, but pop me an email and I'll find an answer for you!

A new year.....New biz and new beginnings

A new year has begun. Happy New year to all of you!

It's a time for fresh starts and renewed commitments. Looking back on 2009 we saw a tentative year in the housing market in KW....still strong, but tentative. Looking into 2010 I think we will see more of the same but stronger. The economy is not completely out of the woods, yet in the Kitchener Waterloo area we still seem to be moving forward and getting stronger.

The end of 2009 saw C moving into her new condo after a lengthy search to find just the right one. And A choose a new home to move into with East Forest Homes. It will be exciting for her in the next few months to see her home being built.

2010 continues the search for homes for some clients and has already brought on new clients as well. Looking forward to meeting with A&H, an out of town referral, next week as they begin their search for a home in Waterloo.


As you begin this new year, keep me in mind if a new property is on your list for 2010. And because most of my business comes through referrals please pass my name along to others you know who may need the services of a realtor.

Thanks for a great 2009 everyone and here's to a great 2010.

In close, here's a reference from another happy client....

"In the short time we've worked together Krista, it has been a real pleasure! You were always very friendly and helpful and never made me feel like I was an interruption to your day. I plan to stay in my new home for many years, but when it does come time to sell, I will be sure to give you a call. I have already told several people if they need a real estate agent who really takes their best interest at heart, to give you a call." A, purchased new home in Kitchener.