By LINDA WHITE, SPECIAL TO QMI AGENCY

STAGING: To attract a buyer, ensure all appliances are sparkling

 

Often described as the heart of a home, the kitchen merits plenty of attention when staging your house, beginning

with the key ingredient: cleanliness.

 

From appliances that sparkle to countertops free of clutter, real estate stagers dish on what prospective buyers

find appetizing.

 

"Cleanliness is paramount," says Ron Sowden of Dekora, a home staging company with offices in Vancouver and

Calgary.

 

"If you cook, kitchens for the most part are grease factories." Pay attention to cook tops, range hoods and fans.

 

Give worn and dated cabinets a facelift. "A little sandpaper and a good coat of paint in a neutral colour like off

white, cream or whatever's appropriate for the space can almost make it look like a new kitchen," Sowden says.

 

The same is true of replacing tired hardware with knobs and pulls in a brushed nickel or chrome finish. Both are

easy and inexpensive DIY projects.

 

Whether a large or small kitchen, it's important to show usable counter space, which is often at a premium. "Clear

countertops of most items, including small appliances, knife blocks and utensil jars," says Allison Roberts of

Burloak Home Staging and Design in Burlington.

 

One or two appliances -- a nice-looking coffee maker or espresso machine -- are exceptions but don't overdo it.

"What you have on show should be good-looking. If it's dated, clear it away," says Sowden.

 

But don't simply transfer those items to cabinets that are already full. "If cabinets are full, potential homebuyers

may think the kitchen doesn't have enough storage space."

 

You may be surprised to discover how many items have expired or are close to expiry in your pantry. Ensure

cabinet interiors are free of stains left by oils and spices. "Clean interiors suggest a home has been well-

maintained," she says.

 

Fridges often serve as children's art galleries or your family's management centre with calendars and white

boards.

 

"Clear them of everything -- front, sides and top. Nobody needs to know your schedule or how well your children

did in that recent soccer game," Roberts says.

 

It's also a great opportunity to show off an appliance that's in good condition."

 

Don't overlook the sink and the space under the sink, which is often overflowing with cleaning products. Empty the

garbage can and compost bin - it will reduce clutter and keep offensive odours at bay.

 

Setting the kitchen table is definitely passe. Instead, place an attractive bowl of fresh fruit on the table.

Canadian laws surrounding foreclosures often make them more trouble than they’re worth for buyers

 

 

By Golden Girl Finance

 

Foreclosures are big news in the U.S. The real estate crisis is dragging on, and economic problems are keeping

the default wheel turning. As a result, foreclosures are becoming a new kind of American dream, one with big

winners and big losers; the stuff of exuberant headlines and popular reality TV shows. In the U.S., foreclosure

properties can sell for rock-bottom prices. And when we say rock bottom, we mean full houses for the kind of price

that wouldn’t even buy a new compact car.

 

Amazing, right? Well, don’t rush out and look for a foreclosed property just yet, because in Canada, a whole

different set of rules and laws prevent these steep discounts. Find out how foreclosure works, and why for

Canadians, a foreclosed property is often more trouble than it’s worth.

What’s a foreclosure?

Foreclosure is the worst-case scenario in home ownership. Remember that a buyer who has a mortgage is

essentially living in a house that’s owned by the bank; fail to make your payments and the lender has the right to

gain ownership of the property and sell it to settle the score. Of course, homeowners in the U.S. default on their

mortgage loans, too, but what happens next is quite different, and determines why foreclosed homes there can be

such a bargain for buyers.

The fair market value rule

In the U.S., banks look to sell foreclosed homes to recoup the outstanding loan on the property. And although

foreclosure rules vary from state to state, the key thing to know is that foreclosed homes are often sold at auction

to the highest bidder, often for only as much as is outstanding on the loan. The problem is that this amount may

be considerably lower than what the house is worth, and essentially hangs the delinquent borrower out to dry. Of

course, that’s great news for anyone who steps up to buy the property for pennies on the dollar.

 

In Canada, these cut-rate deals just don’t happen. Lenders are required to sell foreclosure properties for “fair

market value,” and they must follow strict procedures to prove they are selling a foreclosed property for a fair and

reasonable price. So, buyers looking for a good deal may be better off seeking out homes that have been on the

market for a long time and trying their luck with desperate sellers. Those sellers have the right to take less, while

the bank often does not.

More responsibility for buyers

If the bank has the title of a foreclosed property, it’s typically sold “as is, with no warranty or representation.” For

buyers, this means that what you see is what you get. The property may or may not have hidden defects, there’s no

guarantee of “chattels” like appliances, and they may or may not work when you move in. If there are any

encroachments or issues with the land survey of the property, the buyer will be fully responsible.

 

Of course, any home can have issues, but in a typical real estate purchase, a buyer is given the opportunity to list

these things as conditions in the real estate contract. This puts the seller on the hook for including certain

appliances or other items in the sale, disclosing any serious defects the home may have and allowing potential

buyers to obtain a real property report to check for encroachment and ensure that any additions to the home meet

local codes. In a foreclosure sale, those protections go out the window, which can mean the possibility of

additional costs for buyers.

Poor condition

Here’s something foreclosure properties in Canada and the U.S. have in common: they’re often short on fit and

finish, and may lack appliances, fixtures and other things you’d expect to be included in a home purchase. This is

because when banks alert homeowners of a default and put the foreclosure wheels in motion, angry owners

sometimes damage the property and often take everything that isn’t attached with them when they leave.

Furthermore, homeowners who are struggling financially may have fallen behind on a home’s basic upkeep. What

this adds up to is “handyman specials” - and these properties aren’t nearly as quaint as the term would suggest.

The “for sale” sign isn’t a sure thing

During most foreclosures, the court gives the borrower time to repay the loan in full and reclaim the home. This

period is usually six months long, but the home can sometimes be listed during this period. For buyers, this

means that if the home’s previous owner can come up with the cash and sweep in before the sale closes, they’ll

get their house back – and the new buyer will be left standing at the curb. According to Brian Macdonald, a real

estate agentwho often works with foreclosed properties in Edmonton, the courts also have some leeway in

determining how the house is disposed of, and it doesn’t always work to an outside buyer’s advantage. In the end,

it’s quite variable, which means a lot of possible outcomes – many of them impossible to predict.

Not worth the effort?

In the U.S., the extra trouble surrounding buying a foreclosed property may be well worth the effort if you walk away

with a home for as little as $5,000 (yes, you read that right). The reality is that this just doesn’t happen in Canada.

To put it plainly, don’t go out hunting and expecting a deal. You may as well walk on down the street and eye that

fixer-upper that’s been sitting on the market just a little too long...a good cleaning and paint can do wonders.

 

Buying a home is a significant investment and requires careful evaluation.

 

In 1991, the BC Real Estate Association, the provincial association forREALTORS®, introduced the Property

Disclosure Statement (PDS).

 

This document is a detailed form that asks a property seller to disclose any defects to a prospective buyer.

 

This document is not required by law, however, the REALTORS® of BC decided to make the PDS (and its

complementary forms, the Strata Property Disclosure Statement and the Rural Property Disclosure Statement)

available to any client wanting to list a home on the MLS®. The PDS can be legally incorporated into the Contract

for Purchase and Sale.

 

The PDS goes beyond current legal disclosure obligations and itemizes potential problems for prospective

buyers, such as buried fuel storage tanks, asbestos insulation, unauthorized rental suites, renovations done

without a permit, moisture problems, unregistered easements or encroachments, and whether the home was

ever used as a grow-op or drug lab.

 

The Strata Property Disclosure Statement covers a range of condominium-specific issues such as parking and

storage allocations, special assessments, restrictions on age, pets or rentals and building envelope problems.

 

The Rural Property Disclosure Statement identifies issues related to rural land, such as the quality of well water,

septic systems and flooding problems.

 

The PDS is not required by law. In some situations, such as an estate sale, the seller may not have enough

information to complete the PDS, and the buyer will need to rely on other sources of information.

 

The PDS is also not a legally-binding warranty of the property’s condition. It is only a report of what the seller

knows about the property.

 

Although the PDS is never a substitute for a thorough, professional home inspection, it is a great place for buyers

to begin their due diligence investigation into any home they are hoping to purchase.

 

By choosing to create the PDS, the REALTORS® of BC sought to provide the public with an additional level of

certainty when they purchase a home.

Terraces wrap around three floors at the top of the building and it's possible to see nearly all of the city's bridges from its 135 windows.

Robert De Niro's son is broker for pad with city's best views

 

What will $100 million buy you in New York City's real estate market? Apparently, a really good view.

 

An exclusive listing is offering an octagon-shaped penthouse in midtown Manhattan that boasts three floors of living

space, panoramic views of the city, six bedrooms, nine bathrooms and a wine room for 1,000 bottles.

 

And that's not all. The 8,000-square-foot apartment on West 56th Street has its own elevator and wraparound terraces

on three floors. It is possible to see nearly all of the city's bridges from its 135 windows.

 

The penthouse is being sold by Long Island real estate developer Steven Klar, who purchased it for $4.5 mil-lion in

1993 and spent at least as much renovating it.

 

Klar told the New York Times he has decided to sell it because his five-year-old son "could potentially get out on the

terraces."

 

The triplex, occupying the 73rd through the 75th floors, is the exclusive listing of Raphael De Niro, a broker with

Prudential Douglas Elliman and the son of actor Robert De Niro. He said the terraces offer the highest outdoor

residential space in the city.

 

It is located in CitySpire, a tower that created controversy when it went up in 1988 because the developer built it higher

than zoning codes allowed. The city reached a settlement with the developer. There also were complaints from area

residents of loud whistling emanating from the tower. Louvers on the top of the building had to be adjusted to reduce

the noise.

 

During the downturn in the housing market in the early 1990s, lenders took away the building from the developer. Klar

purchased his pent-house after his company, Klar Organization, was brought in to sell the unsold apartments.

 

The asking price reportedly is the highest for any New York City apartment currently on the market. A six-bedroom

penthouse at One57, a tower currently going up nearby, is under contract for $90 million.

 

 

Heading off on a summer road trip, international adventure or family vacay this month? Don’t forget to prep your

home before you hit the open road! To lend a helping hand, Earth911 compiled this simple checklist of things to

do to save energy, water and waste while you’re out of the house.

1. Set your temperature

The most obvious way to save energy and shrink your footprint while away from home is to power down the

thermostat. Many programmable models have “vacation” or “away” settings to make saving easier, but you can cut

energy costs even without these features.

 

In most cases, shutting your thermostat off completely is ideal when leaving for summer vacations. If you live in an

especially hot climate, you may want to program your thermostat to a very low setting to avoid heat damage to your

home while you’re away. In the cooler months, leave heating systems on a low setting to keep pipes from bursting

(no fun!).

 

For best results, set your programmable thermostat to power on when interior temperatures reach 85 to 90

degrees Fahrenheit (or around 40 degrees Fahrenheit in the winter). This way, your AC will turn on for a few

minutes when it gets too hot or cold and power down as soon as your home reaches a manageable temperature.

 

To keep your home as cool as possible sans-AC, pull shades, blinds and curtains closed before hitting the road.

 

2. Save energy

Shutting off your air conditioner isn’t the only way to save energy while you’re away. Power down every room of the

house to cut back on energy costs and shrink your family’s footprint.

 

For starters, unplug all kitchen appliances, such as coffee makers, toasters, blenders and microwaves. This

simple step is not only a good idea for fire safety but also cuts down on vampire power – the energy your

appliances use when they are plugged in but not running.

 

For even greater energy savings, put all large electronics in other rooms of the house – such as televisions,

computers and stereo systems – on a power strip and flip the switch off before leaving for your trip.

 

And don’t forget your water heater! Before departure, head down to the basement and turn off the circuit breaker

that connects to your water heater to avoid wasted energy. Some water heaters also have a powered-down

“vacation” setting, which will also help you cut costs while away from home.

 

3. Reduce waste

Don’t let waste stack up while you’re on the go! Take a few simple steps ahead of time to keep those trash cans

empty.

 

Before packing your bags, take an inventory of perishable food in your kitchen and give away anything that may

spoil before you return. In most cases, unopened or unprepared food can be donated to a local food bank, shelter

or soup kitchen, but restrictions may vary from one location to the next. So, call ahead to be sure.

 

For food you can’t donate, try freezing or canning it before you leave the house, or simply give it away to a friend or

neighbor to cut back on food waste. If you plan to be gone for more than a month, you can also empty out the fridge

and unplug it if desired. But be sure to leave the door propped open to reduce the risk of mold damage.

 

If you have a daily newspaper delivered to your home, call the publication’s customer service center and ask to

have delivery stopped until you return to reduce paper waste. Many publications will even allow you to donate your

newspaper to a local school, rec center or church while you’re out of town. If all else fails, simply tell your

neighbors that they’re welcome to snag the paper off your doorstep while you’re away.

 

Looking for a few waste-reducing tips for your journey? Try these seven eco-friendly travel ideas to get you

started.

 

4. Protect your home from damage

Nothing puts a damper on a fun-filled vacation like coming home to heat, water or mold damage in your home.

Prevent an unfriendly welcome by taking a few precautionary steps before you hit the road.

 

Start by shutting off the main water valve. This is one of the most important preventative steps you can take, as

leaks and broken pipes can cause significant damage to both the interior and exterior of your home if left

unattended. Also, turn the circuit breaker for your stove and oven off before departure to save energy and reduce

the risk of fires.

 

Programming your thermostat to a low setting will go a long way toward preventing heat damage while you’re

away. But if your hometown is especially humid in the summer, you may want to use a dehumidifier to stave off

mold damage as well.

 

Some smart thermostats include built-in humidity detectors. So, if you have a smart thermostat and dehumidifier

incorporated into your home’s HVAC system, this will take the majority of the guess-work out of warding against

mold damage.

 

If not, simply use portable dehumidifiers on low settings instead. Place your dehumidifier near a sink or shower

and position the drainage tube so the water can go down the drain. You may also want to prop open your

dishwasher door to prevent mold growth inside (yuck!).

 

5. Stay secure the eco way

We all have our tricks to help us feel more secure about leaving the house: Turning on interior lights, blasting the

radio or leaving a car parked in the driveway to make your home look “occupied.” But why not give your security

routine an eco-friendly makeover for a safe and efficient home?

 

If you like to turn on the radio or leave a few lights on for security purposes, put these on timers and set them to

turn on and off at staggered intervals to save energy. Or simply connect outdoor lights to a motion sensor to ward

off any potential prowlers.

 

For even greater efficiency, embrace energy-free ways to keep your home protected while you’re out of town. Ask a

trusted friend or neighbor to drop in occasionally and remove (then recycle) any circulars or flyers that may have

been left on your doorstep or front door, as a pileup of paper tends to make the home look unoccupied. If you plan

to be gone for two weeks or more, offer a neighborhood kid a few dollars to mow the lawn while you’re away to

keep your home looking well cared-for.

 

By Chaya Goodman Kurtz

 

Listing your house online requires more than just posting pictures or posting it on a local real estate website. For

many home buyers, the first contact they have with a potential property to buy is the online listing. The photos need

to be enticing, to say the least. Enter Virtually Staging Properties, a pioneer in the field of virtual home staging. I

initially made contact with Krisztina M. Bell, the director of Virtually Staging Properties, on Hometalk.com, a

social network totally dedicated to home and garden projects. Krizstina posts almost daily home selling and home

staging tips on Hometalk, and I was totally impressed by her level of professionalism and expertise. She

graciously agreed to an interview. Read on to learn how virtually staging your house could be the thing that sells it

fast and at the asking price.

 

Q:  What is Virtual Staging?

A: Virtual Staging is a service we pioneered to help owners of vacant "for sale" properties best present their homes

to potential buyers, via the Internet; which is where according to the NAR (National Association of Realtors) 90

percent of potential home buyers start their home search. We work with actual photos of a vacant home, and

"virtually" stage them by adding attractive and appropriate REAL furnishings (Patent-Pending process) into the

photos, so the online pictures of the home are more understandable and help create a connection with the

potential buyers. When buyers view the virtually staged home online, they can envision themselves living in the

home, so they are much more likely to want to go view it with their agent in person.

 

Q:  Is Virtual Staging less costly than hiring an in-person designer?

A: Virtual Staging is primarily designed to assist in the sale of vacant homes. Traditional staging entails moving

furniture in and not only does the homeowner have the cost of the designer (or professional stager), but they also

incur the cost of renting the furnishings as well.  Traditionally staging a vacant home is not an inexpensive

proposition; however as traditional stagers ourselves we know the benefits almost always outweigh the costs. 

Virtual Staging costs range from just $225 to $325, or around 10 percent of the cost of traditional staging. 

Additionally, Virtual Staging is a one-time charge, if a traditionally staged home doesn't sell quickly, furniture rental

costs continue to accrue monthly, potentially costing sellers thousands of additional dollars.

 

Q:  What about when buyers come to see the home in person?

A: We brand each photo that we virtually stage with our web address and require that our clients disclose the fact

that certain photos of the home have been virtually staged wherever the staged photos are used. In our view,

Virtual Staging actually offers the buyers the best of both worlds. They get the benefit of seeing the potential of a

home online (and in person if the seller orders our mounted enlargements option), and when they view the

property in person, there are no rugs, furniture, wall hangings, etc that might distract the buyer from reviewing the

complete house.  We would also suggest that virtual staging is no different than the seller/agent using photos of

the home when it was occupied, after the owner has moved.

 

It is our policy to not edit the underlying photo or property.  By this, we mean that we will not change wall colors,

floor coverings, add appliances, etc., nor will we cover up or "repair" damage that might be evident in the photos. 

 

Q: I first found you on Hometalk.com. How has Hometalk.com helped you to make your business grow, and

how is your presence on the site helping Hometalk members?

Hometalk has been a great social media community from the start for us since its focus is more about house

and home. We like the friendly community that is serious about making the inside and outside of their home living

better. We found it to be a great avenue to spread the word to homeowners as the majority of our mail marketing

and presentations are more geared toward agents who really are the bread and butter of our business. But as a

business you have to tap into all the sources of potential clients and Hometalk does just that and we have been

amazed at the support and enthusiasm we have received from Hometalk followers and pros.

 

Our service is helping not only agents but also sellers market their homes for sale in a more economical way that

will always still be classified as home staging but with a new tech savvy twist. We have also noticed an increase in

our Web traffic over the past year since joining Hometalk, even getting phone calls from agents and sellers who

were curious about our service. Also, it was Hometalkers that kick started our "Likes" and fan base on Facebook

as they enjoy our photos of rooms in homes that give them great staging ideas and design ideas for their home

even on a budget.

 

As professional home stagers we have also been able to provide Hometalk followers with our home staging tips,

secrets and even some occasional interior design ideas because in real estate it is all about how you market your

home, whether its to sell it to potential buyers or live in it in a more organized fashion to show off to your friends.

Overall, we are thrilled to be a part of the growth of the Hometalk community and will continue to bring its followers

the latest trends in staging and design tips and ideas for the home via our Hometalk profile.

 

Q:  Can you name some success stories?

Yes, in fact that is exactly what we call them, Success Stories.  Many of our clients have written us to let us know

that their listings have sold and that our Virtual Staging made a big difference in both buyer traffic and days-on-

market.  Some of these Success Stories can be found on our website. 

 

Here are a couple of quotes from a few of our Success Stories:

 

Annmarie D., an agent with Prudential Connecticut says, "I had the property listed for just one short week and it

produced 4 offers for full price!"

 

Catie M., a Top Agent with Long & Foster says, “We work with investors who renovate homes and having the vacant

photos of the property virtually staged really helps sell the home fast and adds to our investors' return on

investment…a double positive for everybody!”

 

Sue M., a Broker and Agent with Re/Max of Naperville (Chicago suburb) listed a condo in a community where 60-

plus condos were already on the market.  "My condo was vacant and I had 3 virtually staged photos done by VSP,

which I added to my virtual tour," she says.  "Within 5 days, the condo was under contract, beating out all others

that were in the same price range!"

 

Q:  When should Virtual Staging be used versus traditional staging?

A: We developed Virtual Staging to offer customers around the country a less expensive, yet highly effective

alternative to traditional vacant home staging.  If cost is not an issue, traditional staging is an outstanding tool to

market and sell a vacant home.  However, if cost is a consideration, Virtual Staging is without a doubt the best

approach for marketing a vacant home, offering most of the benefits of traditional staging, at just a fraction of the

cost.

BY JEFF LEE, VANCOUVER SUN

 

The Georgia and Dunsmuir viaducts could be demolished almost immediately, paving the way for new housing

and a neighbourhood park system, if the plan is approved by council this fall.

 

On Tuesday, city transportation planners unveiled a new plan to create a “super road” around the north end of

False Creek that would allow for the accelerated destruction of the viaducts and create more than 850,000 square

feet of new housing space in Strathcona. It would also affect several other planned changes, including the

construction of a long-awaited truck bypass route along Malkin Street.

 

The plan has yet to be approved, and the planners will bring back a final version within months, but the general

proposal received thumbs up from both Vision Vancouver and Non-Partisan Association councillors.

 

Mayor Gregor Robertson said the ambitious project still has to meet the support of neighbouring residents as well

as downtown businesses affected by the removal of the viaducts.

 

“I’m not prepared to say we’re there yet, but I think we’re getting closer,” he said. “This is a big, big decision for

Vancouver and the future of the eastern core. It will be a big influence on how we connect and how we respond to

the needs of neighbourhoods like Chinatown, Strathcona, Grandview-Woodlands for many decades to come.”

 

In removing the aging elevated roadways, the last vestige of Vancouver’s short-lived fling with a freeway, the city

would unlock land that could either be turned into parks, traded with adjacent landowners or sold in order to create

more affordable housing in the neighbourhood.

 

The plan calls for a new road that sweeps north from Pacific Boulevard and links up with Prior, Main and Quebec

streets. Georgia Street would be extended to Pacific down a five per cent grade so gentle planners say it will

accommodate people in wheelchairs.

 

Westbound vehicle access to Dunsmuir would stop, but a bicycle and pedestrian bridge would connect from a

planned park to Dunsmuir Street above.

 

The proposal also calls for a broad bicycle and pedestrian mall on the west side of a future park linking Carrall

Street with False Creek, and an additional 13 per cent park space could be added to the 9 hectares (22 acres)

already committed for completion.

 

Transportation Planning Director Jerry Dobrovolny told council removing the eastern approaches of viaducts would

also give the city back two blocks between Quebec and Gore streets, including Hogan’s Alley, that were once part

of the city’s vibrant black population. Those two blocks, if developed correctly, could generate 850,000 square feet

of housing and retail space and could help pay for the cost of demolishing the viaducts.

 

A previous plan considered by the transportation department would have kept the viaducts in place for 15 years.

But Dobrovolny said under the new scenario, the viaducts could be removed almost immediately as the

neighbourhood parks are built without negatively affecting traffic. He said public consultation surveys showed that

nearly 70 per cent support or strongly support the plan.

 

Dobrovolny told reporters later the timeline for removal was contingent on other development and reconstruction in

the neighbourhood, but that there was no long-term obstacle to removal of the viaducts. He suggested the project

could cost up to $100 million, but much of the money could come from the city’s sale of development rights on

land currently under the viaducts.

 

Robertson said before staff come back in the fall for a final decision he wants to make sure five issues are

addressed, including advancing work on the long-planned Malkin Street connector, a truck bypass route from

Clark Drive around the north end of the False Creek flats to Main Street. That route would take much of the traffic

that now uses Prior Street, which has been a constant source of anger for local residents.

 

The city also expects the Malkin connector, which could cost $40 million, would attract financial support from the

federal and provincial governments as it would eliminate several at-grade rail crossings and give the province

better access to land it wants for a new health centre.

 

Robertson said local residents also need “clear timelines” for when the park next to False Creek will be built. That

project, the last part of the 25-year-old Concord Pacific development, has been stalled while the city and the

developer negotiate over road alignments and density allotments of the last adjacent construction project.

 

The proposed changes, from the creation of additional parks and more affordable housing, must also meet the

city’s new strategy for creating high-value jobs, the mayor said. And he also wants assurance the flow of goods

and commerce into the downtown core won’t be affected by the removal of the viaducts.

 

NPA Coun. George Affleck said he’s in support of the proposal, with some reservations.

 

“My personal opinion is about the impact on businesses and communities. If in fact this can work without negative

impact, I think it is better to have a normal streetscape as opposed to a highway, which is what this is, going

through our city,” he said.

 

The idea of removing the old viaducts, first proposed by Vision Coun. Geoff Meggs, was embraced by city staff after

they set aside concerns that removing them would be “a showstopper” for the thousands of cars and trucks that

use them daily.

 

“The viaducts were built at a time and in a context that made sense,” said Kevin McNaney, the city’s assistant

director of planning. “They crossed industrial land, which no longer exists, they were built to be part of a freeway

system, which was never built, and they were built to a capacity that we can never achieve. So the question for

council over the coming months and this coming fall, is: ‘Is there a better, more coherent vision, and how can we

get there?’”

 

The viaducts were built in the 1960s to carry as many as 1,800 vehicles an hour. But less than half that number use the viaducts now and that amount is declining as improvements to public transportation are made,

Dobrovolny said.

 

 

By Josh Garskof

 

(MONEY Magazine) -- You change your car's oil every 3,000 miles or so, get your teeth cleaned regularly, and

rebalance your investments once a year. So why wouldn't you undertake similar preventive maintenance on your

house?

 

Having to replace just one of its hardest-working surfaces -- from roofing to exterior paint, hardwood floors to lawn --

would cost you thousands. But you can stave off that pain with simple, often-overlooked upkeep procedures and

slight tweaks to the way you already approach routine chores.

Exterior paint: The biggest controllable threat to the paint on your house is the landscaping around it, says

architect Karen Sweeney, director of facilities for two Frank Lloyd Wright buildings in Chicago.

 

Overgrown foundation plantings rub away paint -- and bring moisture and bugs onto the finish.

 

The fix: Prune bushes to keep them at least a foot away from the house; a landscaper might do it for $200 if he's

already there.

 

Roofing: You can't stop nature from damaging your roof, but you can address the harm coming from within by

adding ventilation to your attic. Without proper airflow, that space can get 35° to 55°F hotter than the outside

temperature, roasting the roof from below.

 

The fix: Have a contractor add airflow by installing high and low attic vents; they can go in the walls or the roof

itself, depending on the situation ($500 to $1,000).

 

Hardwood floors: Every grimy boot and dragged chair brings you closer to the day when you'll have to refinish the

floors. "But sanding floorboards makes them a little thinner, bouncier, and creakier," says Sweeney. "And after three

times there's nothing left to sand."

 

The fix: Hire a floor guy to "screen," or sand away most of the old finish -- without touching the wood -- and apply

new polyurethane ($1,000 to $1,500 for a typical first floor, half the cost of refinishing).

 

Lawns: Many DIYers and pros do the grass serious harm when they mow.

 

"People like the look of a close-cropped lawn," says University of Tennessee agriculture professor John Stier, a

consultant to Major League Baseball grounds crews.

 

But in the North, grass shorter than 2½ to 3½ inches is less drought resistant and invites insects and weeds (in the

South, one inch is fine).

 

The fix: Set the mower higher and never remove more than a third of the grass height at a time. Says Stier: "Think

of mowing as a trim, not a crewcut." 

By Julie Cazzin | MoneySense

 

When my mom and dad came to Canada from Italy in 1957, they had only one dream—to buy a home of their own.

But after a few Sunday afternoons of real estate hunting in Toronto, they realized their meagre savings weren’t

going to go far. Then one weekend they stumbled upon a small, rickety duplex on bustling Claremont Street that

was in much need of repair. It had a two-bedroom unit on the main floor and a one-bedroom unit on the second. It

didn’t take them long to figure out that, with rent payments coming in from one of the units, they could afford to buy

and live in this modest property. So, with a small down payment—and a lot of elbow grease—they became

landlords.

 

For the next 10 years, they dealt with a slew of tenants including a young nurse with a very active sex life, a

carpenter with a roaring motorcycle and a university student with a pet iguana he carried around on his shoulder

while doing the laundry. They eventually sold the duplex for a small profit and used the equity to buy a bungalow in

the suburbs, and today they insist their days as landlords got them on the path to achieving their financial goals.

 

Most beginner landlords are inspired by my parents’ story. And why not? Low interest rates and rising real estate

prices are spurring Canadians to become landlords by renting out basement apartments, a second condo or small

apartment building bought solely for investment purposes. But the sad truth is that just a few small mistakes can

turn your landlord dreams into a nightmare. “When friends tell me they’ve bought themselves a rental property, I

always say, ‘Congratulations, you just bought yourself a business,’ ” says Deb Mattina, a former adjudicator with the

Landlord and Tenant Board in Ontario. “Treat it like one.”

 

While being a successful landlord means making sure the numbers work in your favour, it’s also important to

understand the other rules of the game, including landlord and tenant laws. “Good tenants are hard to come by,”

says Alan Silverstein, a real estate lawyer in Toronto who has witnessed his fair share of landlord dreams gone

sour. “Laws require more and more of landlords all the time. You have to keep on top of it to come out ahead.”

 

If you’re considering becoming a landlord and want to know the secrets to making it a financial success, read on.

Pick a path to prosperity

There are several ways to become a landlord. You can rent out a part of your own home, such as a basement suite,

or you can purchase a second place, in which case you’ll need to decide if you want to deal with your tenants

directly, or use a property management company. All the financial rewards are yours to keep if you deal with the

tenants yourself, but you’ll probably find yourself devoting a lot of time and energy to maintaining the property.

 

Just ask Milo Wu, a 31-year-old elementary school counselor in Vancouver. He and his wife Erica, 31, bought a

bungalow in 2005. Wu had just read The Automatic Millionaire by David Bach and, as he tells it, was ready “to

make real estate my piggy bank.” But after just three years, the couple sold the bungalow because the endless

stream of repairs was harming both their pocketbooks and their lifestyle. “It can be a ticking time bomb,” says Wu. “If

you’re a hands-on landlord, any time the phone rings, it can be a tenant complaining about a leaky faucet or a

plugged toilet. We wanted to be free of tenant complaints.”

 

The lesson? “Landlording is not a passive investment,” says Silverstein, the real estate lawyer. “You have to nurture

it to make it worth your while. If you’re not up to doing that, don’t become a landlord.”

 

Being a landlord can put a strain on your relationship, too. “You have to be a united front as a couple if you plan to

become landlords,” says Lenore Davis, a fee-only adviser with Dixon, Davis and Co. in Victoria. “It’s not the

financial stuff that ruins a couple, it’s the emotional stuff.” Her solution? “I have couples write down their long-term

financial goals separately. Then we talk it through. Usually 20% of couples aren’t on the same page with

landlording and need to consider other investment options.”

 

There are plenty of reasons for that disconnect. One partner may not be comfortable with carrying a lot of debt, or

may not want their free time impinged upon by tenants. Whatever the reason, you and your spouse have to find a

compromise before taking your first step.

 

Handing over the responsibility of maintaining your place to a property management company certainly helps

reduce the amount of work. You don’t have to deal with tenant issues and rent collection, but the downside is it will

cost you up to 10% of the revenue—plus you’re still on the hook for maintenance costs and missed rent.

 

Another option is to buy a condo for the sole purpose of renting it out. In that case, the maintenance fees will take

care of some upkeep, so there’s less responsibility on the owner. This has worked well for Wu, who currently owns

a rental condo that he says requires no hands-on work.

 

Once you find what works for you, the key is holding your property for the long haul—at least 10 years—to increase

your chances of financial success. “Ultimately, money in real estate is made not by timing the market,” says Tom

Karadza, a real estate agent with Rock Star Real Estate in Toronto. “The money is made by time in the market.” So

plan to hold on to your rental property long enough for it to pay off.

Find the perfect property

Start your rental property search by looking at cities with good job and population growth so there’s a large pool of

tenants to pick from. Right now, good opportunities exist in Edmonton, Calgary, Halifax and Barrie, Ont. For

instance, Barrie is considered a good market because its population is growing quickly and many new arrivals are

still renting after three years, so there are lots of potential tenants.

 

Also build a team of professionals to help you, including a good real estate lawyer, tax accountant and mortgage

broker. Read books on how to buy rental property and ask friends and family to share their own landlording

experiences with you.

 

Ultimately, the best property for you might be your own home. “Learn the ropes with a basement apartment,” says

Silverstein. “Your losses are limited and you’ll get a good idea about tenant demands.”

Figure out what you can afford

Based on the down payment you have available, what can you afford to buy? Keep in mind that in Canada small

rental properties of one to four units require a minimum down payment of 20% to qualify for a Canada Mortgage

and Housing Corp. (CMHC) insured loan. How would affordability change if you increased your down payment?

Don’t forget to factor in real estate closing costs and other financial commitments that you have in life—things like a

new car, medical bills or daycare costs.

 

Of course, some investors are so keen to get in the game that they’ll put just 5% down on a property, or they’ll use

credit card cash advances to scrape together a down payment. Don’t do it. “Lenders want you to have some skin in

the game,” says Marc Lamontagne, a fee-only adviser with Ryan Lamontagne Inc. in Ottawa. “So down payments

under 20% for investment properties are rare. Lenders don’t want to be left on the hook if cash flow turns negative.”

Run the numbers

Before buying anything, ask yourself whether you can still make money, given that prices in many parts of Canada

are at seven-year highs. “There’s more than one way to assess a property, but ensuring that it’s cash-flow positive

from day one is the ideal,” says Lamontagne. “Don’t count on appreciation in price for your investment return. That’s

just speculation.”

 

Once you know your down payment, it’s time to look at what rents and expenses will be like for the properties you

are considering. That means looking at total annual rental income less all expenses (typically mortgage interest,

property taxes, insurance and utilities). Put all of this information into a cash flow statement, and the number you get

when you subtract expenses from income will show either a positive cash flow (meaning you’re making money) or

negative cash flow (you’re losing money).

 

Some investors will argue that it’s fine to lose a bit of money each month because the tenants are paying your

mortgage. But this line of thinking is a slippery slope to losses, because there will be items you can’t control—like

rising mortgage rates, major repairs and unpaid rents—that can cost you thousands. “You have to think of it as you

would any small business,” says Silverstein. “If a small business is in the red, that’s not a good thing, and neither is

it for a rental property—whether tenants are paying your mortgage or not.”

 

The one thing that often trips up landlords is unforeseen expenses. To minimize that risk, budget 2% of the

purchase price of your property for maintenance and repair costs. So if the property you bought costs $300,000,

you should add $6,000 a year for repairs to your annual expense budget to get a more accurate cash flow

projection. Otherwise, losses can mount quickly.

 

Also make sure you beef up your rainy-day fund. “The biggest mistake I see people make is failing to recognize that

you need reserves,” says Ross McCallister, a property manager in Arizona. “They stretch their finances too far and

then, when a tenant doesn’t pay for a month or two or three, it becomes emotional and pinches the family’s

lifestyle.”

 

Alen Majer, a sales trainer in Toronto, learned that the hard way. Majer first became a landlord in 2006 when he

bought a 600-sq-ft one-bedroom condo in Mississauga, Ont., for $165,000 for the sole purpose of renting it out. “I

liked the idea of buying a property while someone else paid the mortgage,” says Majer. But even though the

property started out with positive cash flow, it soon turned negative when the condo management unexpectedly

raised monthly maintenance fees by 15% to $428 a month. “That’s when our cash flow started to suffer,” says

Majer, who found he had no emergency cash for a much-needed stove.

 

So, after owning the property for five years, Majer sold it, pocketing about $48,000 after taxes and expenses.

“Based on an initial investment of $25,000, our investment did well over those five years,” says Majer. “But we knew

that being short $50 a month can quickly turn into a $100-a-month loss, which can become $150. As a landlord you

need to be vigilant about maintaining that positive cash flow.”

 

Majer says he learned his lesson and is more prepared with his second foray into landlording—a condo in Toronto.

“I built a financial safety cushion of a few thousand dollars right into my cash flow calculations,” says Majer. “If

mortgage rates go up, as they’re bound to do in the near future, I’ll be covered.”

Know the law

Learn about landlord and tenant laws in your province to ensure you’re prepared in case things go wrong—and

they will. The three most common types of disputes from a landlord’s perspective are non-payment of rent,

persistent late payments, and unruly behaviour or damages. Each has a separate form that has to be filed to the

Landlord and Tenant Board to get your case heard. “I tell all landlords to be consistent and not to get emotionally

involved,” says Toronto paralegal Cathy Corsetti. “Those are the messiest cases. When they go sour, they really go

sour.”

 

By far the biggest reason landlords go to Landlord and Tenant Court is for arrears of rent. “Tenants can be pretty

savvy when it comes to excuses for why they haven’t paid the rent,” says Corsetti. “They’ve had their wallet stolen, a

cheque is late.” Corsetti advises landlords to stick to the rules and not be swayed by emotional pleas for

exceptions.

 

You can minimize problems by doing a check on all potential tenants. That means calling their employer as well as

two of their previous landlords. Be careful though, because some tenants will put down the names of friends and

family as references, hoping you won’t dig deeper. Others may even give photocopies of fraudulent credit scores

and bank statements in the hope of hiding their bad tenancy record. “There are professional renters out there,” says

Mattina. “Once they’re in, they don’t pay the rent. Then it’s up to you to evict them and get the rent money. That can

be a challenge because these renters know the law and will do everything they can to stay without paying.”

 

As soon as one of your tenants doesn’t pay the rent, serve them notice in writing. If rent is to be paid on the first of

the month, in most provinces you can legally file notice on the second. (Although many landlord and tenant laws

are the same across Canada, check with your own province’s Tenancies Act or Landlord and Tenant Board for the

specifics.) Usually the tenant then gets 14 days to pay the full amount owing. If they don’t pay, the landlord can file

an application for a hearing three weeks later. “Always, always serve notice on the first day you can,” says Mattina.

“Once you apply, the clock starts ticking. You can change your mind if they come through with the rent, but serve the

notice. The longer you take to file it, the longer it will take to get your money.”

 

Whitney Wihidal, a chiropractor and landlord in Orillia, Ont., is pragmatic about rent arrears and evictions. He

owned a 14-unit apartment building with his brother-in-law for several years before selling it in 2009 for about the

same price he’d paid for it. “There were always a couple of tenants I had to chase down for the rent, and one or two

in the process of being evicted every month,” says Wihidal. “Cut your losses by knowing the law.”

 

But even if everything goes in your favour, it can still take anywhere from three months to a year to get a tenant

evicted. That’s many months of lost rental income that you may never recoup. That’s why these days, Wihidal sticks

closer to home, renting out his basement. It’s allowed him to easily keep an eye on things. “I always advertise at the

local college for student tenants,” says Wihidal. “If the parents come along to look at the place and write the monthly

cheques, I’m pretty sure I’ll get my money. They solidify it for me.”

Learn the tax rules

To use the tax laws to your full benefit, be aware of what can and can’t be claimed on your taxes. For instance,

expenses that may be fully deducted against your rental income typically include the cost of advertising, repairs

and maintenance of the rental space, and legal expenses incurred to collect unpaid rent. If the rental apartment is

part of your home, you can deduct certain expenses based on the portion of space the rental suite takes up in the

house, typically insurance premiums, the interest component of mortgage payments, property taxes, utilities and

landscaping.

 

In general, you have a loss if your rental expenses are more than your gross rental income. You can deduct this

loss against your other sources of income. So, for instance, if you made $10,000 in rent, and expenses were

$4,000, then $6,000 will be added to your taxable income for the year. At the 40% tax bracket, you would pay

$2,400 in taxes on that rental income. If, instead, your expenses exceeded your rental income by $6,000, this

amount is subtracted from your other sources of taxable income, like your salary. So if you paid taxes on all your

other income throughout the year, you would get a refund of $2,400.

 

Some expenses may not be fully deductible in the year they’re incurred: they may have to be amortized over

several years at prescribed rates. These are called capital expenses, and the method of deducting them over time

is referred to as depreciation, or capital cost allowance (CCA). The distinguishing feature of a capital expense is

that it has an enduring value that benefits the current as well as future years, such as renovations and major

appliances.

 

If you incur expenses to bring a property back to its original condition—for example, painting and grouting—the

expenses should be fully deductible in the year incurred. If, on the other hand, you enhance the original condition

of the property—say, by renovating a bathroom or installing a new roof—that may be considered a capital expense

and should be depreciated over three to five years. Your accountant can help determine this for you.

 

Finally, don’t overlook important details that could cost you thousands in future gains, such as the tax

consequences of renting out a portion of your principal residence. “If you have a self-contained unit in your home

that you are renting out, such as a basement apartment or entire second floor, you effectively have two properties

and will be taxed on a portion of your capital gains—according to space and percentage of time rented—when you

sell,” says John Mott, a chartered accountant in Toronto.

 

Also be diligent about claiming all rental income on your annual tax return. If you don’t, the taxman will eventually

find out about it, ask for back taxes and give you stiff penalties for dodging your tax obligations. “Tenants have to

put down their landlord’s name and the annual rent paid on their own tax forms to receive certain provincial tax

credits and benefits,” says Mott. “All of this info can easily be cross-referenced by the Canada Revenue Agency and

cost you thousands when they find out about it.”

Decide on an exit strategy

Knowing when to sell your rental property is easy if you have a long-term financial goal. Do you want to hold on to

your property for a source of income in retirement? If not, then one exit strategy may involve selling sometime in

your 60s. “If you’re close to retirement, take advantage of good market conditions,” says Thomas Venner, a financial

planner in Hamilton, Ont. “Take your profit and stuff it in annuities for your later years.”

 

Or you may have a more immediate goal for your rental gains. Gord Radman and his wife Rossana certainly do.

Eight years ago, the Burlington, Ont., couple purchased a 1,300-sq-ft townhouse that they’ve rented out. The

property has been cash flow positive since day one. With three kids aged 15, 13 and 11, the Radmans plan to sell

and tap into what will be close to $200,000 of equity in the townhouse in five years. The goal? To pay for their

children’s post-secondary education.

 

“The kids’ RESPs will fund some of their education, but we’ve always known it would never be enough,” says Gord.

“The equity from the townhouse will fully fund the rest. Instead of getting a Ferrari or buying a bigger house, the

money will go to the kids’ schooling. That’s always been the plan and we aim to stick to it.”

 

Sizzling hot markets in Toronto and Vancouver have fuelled a lot of debate lately about whether Canada’s housing

market is overheated — and the jury is still out.

Gluskin-Sheff economist David Rosenberg came down on the side of whimper today, after expressing concerns

just last week that Canadian housing prices were looking unsustainable. The latest data from the Canadian Real

Estate Association appears to have changed his mind.

 

“Prices are starting to deflate by 0.8% YoY, though more like air coming out a balloon slowly than a giant pop,”

wrote Rosenberg Tuesday in his morning note.

 

“It is gradually becoming a buyer’s market with the inventory of unsold homes rising to six month’s supply, which

is at the edge of a balanced market.”

 

Existing home sales dropped 1.3% in June from the month before and were down 4.4% from a year ago. A big

part of the contraction was a 27.7% decline in the once heady Vancouver market and 7.9% slide in Toronto’s.

 

As tighter mortgage rules in Canada bite, sales and prices are likely to erode further, he said.

 

The new rules — introduced last month by Finance Minister Jim Flaherty to curb both a possible housing bubble

and Canadians’ ballooning household debt — are equivalent to a 1% mortgage rate rise in dampening the

market, he said.

 

They include:

• Borrowers will be allowed to use up to 80% of their property’s value as collateral for home-equity loans, down from 85%.
•  The maximum amortization period dropped to 25 years from 30 years for government insured mortgages.
•  Government-backed mortgage insurance will be limited to homes with a purchase price of less than $1 million.

Canada’s housing correction could see prices fall another 10% (some economists expect 15%) said Rosenberg,

which could send some mortgage holders into a negative equity position.

 

But there is a silver lining for first-time homeowners, he said, who have been shut out of the market by the sharp

price run-up in recent years.

 

Not everyone is convinced, however. Capital Economics in its global outlook Tuesday said the housing market still

looms too large in the Canadian economy for comfort.

 

Housing investment accounts for a near record 7.2% of overall GDP and “when the bubble bursts, we suspect the

contraction will be severe,” Capital economists said.

By Kristin Lehrer | At Home Editor

Lighting can be one of the most important aspects of decorating a room. While natural light is best, some rooms

just don't get enough of it … or any, for that matter! So how do you illuminate a room that doesn't get much sun?

We looked into different types of bulbs and fixtures to help you decide what will work best in your home.

First, here are a few tips to take advantage of any natural light your home can get:

 

• Replace dark or opaque drapes with light, airy, transparent ones
• Hang mirrors to reflect light onto opposite walls and surfaces
• If possible, replace solid doors with glass or French doors to let light in from another room

If these tips don't do the trick, certain bulbs can be used to mimic natural light in an otherwise dark room or create

a softer mood. Read on to find out which one can help you achieve the look you want.

 

• Tungsten (Incandescent): These are the most common and affordable light bulbs. They give off a warm, pleasing glow, suitable for most rooms. When used with a dimmer, they provide great ambient lighting. Edison bulbs also fall into this category, and are used for more decorative purposes. The downside? Incandescent lights aren't very energy efficient.

• Fluorescent: Fluorescent bulbs usually make you think of an office, classroom or waiting room, which is why they're not a great lighting choice for homes. They give off a cold, green and unflattering glow … and they buzz! However, fluorescents can make optimal task lights, especially when installed under cabinets in the kitchen or garage. We just wouldn't recommend using them overhead.
   
• Energy Savers: As the name suggests, these bulbs are energy efficient and environmentally friendly. While they’re considered fluorescent, they give off a glow closer to white light and can be used as an alternative to incandescent bulbs. They can also be recycled.
   
• Halogen: These are a great choice for rooms that get no sunlight because they give off a cool glow very similar to daylight (aka "white light"). While they're slightly more energy efficient, they also get extremely hot and can explode.

Now that you have your bulbs picked out, here are some lighting fixture options to go with them:
 

• Track Lighting and Down-lighters: These are wonderful accent lights. Use them to highlight areas of interest or design features in a room. They can also be used for "wall washing," which floods an entire wall with light. Down-lighters are usually recessed or mounted onto a ceiling’s surface and cast a floodlight on objects below. What's neat about track lighting is that you only need one electrical outlet, no matter how many bulbs you have on a track.
   
• Up-lights: Up-lights are installed in the floor. It might sound silly, but they’re great for bouncing light off of white ceilings, creating a soft glow and preventing glare. They also create dramatic highlights when placed behind decorative objects or furniture.
   
• Chandeliers and Pendant Lights: While chandeliers are said to pull a room together, pendant lights can be used to define a specific area like a reading nook, workspace or eating area. Chandeliers and pendant lights tend to be a more decorative kind of fixture, but not necessarily the most functional. Usually they need to be accompanied by a stronger light source.
   
• Wall Lights: This type of lighting fixture can be used for general lighting or decorative purposes. They’re great for lighting hallways or framing wall art.