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How to Choose the Best Energy Saving Appliances

There’s one thing that every person who resides in Vancouver knows with certainty is that your average utility bill is not going to be going down any time in the near future. If anything, the cost to keep the light on and heat our homes is almost always likely going to be on the rise.

If you aren’t one of those fortunate people who can manage to get off the grid and avoid these hefty monthly bills then you have to do whatever you can to mitigate and lower your power usage to save money.

One proactive approach that you can use to save money on your power bill can be achieved simply by getting rid of your old appliances and replacing them with new ones.

Although you might scoff at the expense, old appliances use up an incredible amount of electricity and account for a big chunk of your hydro bill. Simply put, older appliances are less efficient and more expensive to run. By replacing these old appliances with energy efficient appliances, you can end up saving a lot of money which could make it a worthwhile investment.

However, although there are many appliances which advertise themselves as being energy efficient, some are better than others. It’s a good idea to do some research before you jump at what appears to be a bargain.

How Energy Appliances are Rated

How do you tell is one appliance is more energy efficient than some other comparable model?

The law in Canada which governs energy efficient appliances comes under Canada’s Energy Efficient Regulations which requires that any appliance which is either made in this country or imported is required to have an “Energuide” label affixed to it.

This energuide label must display the amount of power that this appliance consumes and that any energy testing performed on an appliance must be done by an outside third party and is not the manufacturer of the product.

Energuide Labels include the following information:

• Consumption of average Kilowatt (kWh) annual usage for this particular appliance.
• How this appliance compares to other similar appliances when it comes to being energy efficient.
• The range of energy usage for this specific size and model on an annual basis.
• The type and size of this particular model.
• The number of this particular model.

Another feature which you should also look for when buying an energy efficient appliance is the International Energy Star symbol which may be attached right on the Energuide Label itself or on a separate portion of the appliance. The I.E.S. symbol means that the model in question meets or exceeds its technical specifications and is the most energy efficient model which you can buy for that specific class of appliance models.

Can Qualify for Government Rebates

Before you go shopping you might want to check both the B.C. and federal websites as both government agencies may allow or provide for rebates for some specific appliance models. You can get back as much as $75.00 for some appliance models.

However, when it comes right down to it, saving money can be had simply by turning the thermostat down and raising it on the air conditioner. And most importantly, if you’re not using it then turn it off!

Vancouver Mortgage Renewal Strategies – Consult Bruce Coleman, Vancouver Mortgage Broker

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Vancouver Mortgage Renewal Strategies

Over the years, homeowners in Vancouver who renewed their mortgages became spoiled by low interest rates which never seemed to budge upwards.

Times are “a changing” because mortgage interest rates are on the rise. As your mortgage term expires and you go to renew over the next few months or sometime over the following year, you might find that you could end up having to tighten the financial belt to account for rising interest rates.

Most homeowners who go to renew will only be slightly financially inconvenienced but others who have a more restrictive budget could find themselves more challenged to make ends meet.

Variable rates have risen up to around 2.6 % even with a good discount while a similarly discounted 5 year fixed rate has risen to just under 3.50 % which is a 0.6 % increase from just a few months ago.

If your mortgage is coming up for renewal then it might be time for you to become more proactive about making some money saving decisions well before it’s time to renew.

Although most homeowners will be able to financially manage any future increases in the mortgage rates, these rate increases may affect your cash flow for sundry pleasures such as eating out on a regular basis.

Strategies to Deal with Mortgage Renewal

The main strategy that you can use is to end your mortgage several months before it expires and obtain refinancing at current rates so you can avoid higher interest rate costs down the road.

Renew you Mortgage Early

Many lenders will allow you to renew your mortgage earlier and before its actual expiry date such as within a 90 day period so you can obtain a new 5 year term at current rates and avoid future increases.

Blend and Extend your Mortgage

Another option is that you can also do what is referred to as “blend and extend.” This means that you covert what remains on the existing balance of your current fixed rate mortgage and convert into a new loan but with a blended interest rate.

What about Penalties?

Yes, you are correct in assuming that a penalty will be involved. However, if you time the renewal properly, you can still save plenty of cash with your savings on the interest rates over five years even if you have to pay a penalty for the 2 or so months on your existing term. The savings can still be quite substantial. The key to performing this manoeuvre to your advantage is timing.

And, if you decide to perform this tactic and take your mortgage to another lender then don’t forget that you will also have to incur additional legal fees as well. However, some experts suggest that if your existing mortgage amount falls within a certain range then even the extra cost of legal fees may well be worth the expense.

Whatever you decide to do, if your mortgage is coming up for renewal in the next 6 months then now is the time to start getting advice to know and understand your options because it can save you plenty of cash if you time it right and take action at the appropriate time.

When Should You Sell your Vancouver Home? – Ask Bruce Coleman, Vancouver Mortgage Broker

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When Should You Sell your Vancouver Home?

As a Vancouver mortgage broker this is a very common question that many people wonder about. Well, the answer to this question is not as clear cut as it might first seem as not even the seasoned pros completely agree on how to respond to this question.

The answer can actually vary as it is not only dependent on the time of the year but also on the current economic situation and your own particular circumstances.

Although certain times of the year such as spring, early summer and fall are the two most popular time of year, it may not be the best time to do so. The time to sell or buy can also depend on whether you consider the real estate market as either a “buyers” or a “sellers market.”

Most Popular Times of the Year to Buy and Sell a Vancouver Home

Clearly the most popular times of year for both home buyers and sellers is springtime, the early summer months and early fall. Buyers have a lot more homes to view because more homes have the “for sale” signs out front. Sellers have a lot more viewers who come looking.

Either way this does necessarily mean you will sell or buy a home more quickly because both parties may have a lot more competition.

Sellers will have to deal with more “tire kickers.” Buyers may run risk the possibility of losing the dream home that they saw because it was scooped out from under them by another buyer who acted more quickly.

Selling your Home During A Buyers Market

A buyers market would simply mean that practically anytime of the year can be advantageous but there might be certain times of the year that can be better than others.

If you choose either spring or early fall to sell your home in a buyers market, you will be in competition with every other seller who has the same idea as you. Less popular times of the year which are often overlooked by people include the summertime because many people are enjoying their holidays and the warm weather.

Similarly, the Holidays and winter time are also less popular for people to put their home out on the market. If you use this time to put your home up for sale, you might have a lot less viewers, but what you might get are the really motivated buyers who comes to view your home.

Similarly, buyers can more readily find homes that suit their needs and aims more quickly because there are fewer out there for viewing. This allows them to be more selective.

Selling your Home During a Sellers Market

Anytime of the year is tough because it means that economic times may have negatively impacted the job market such as a recession or interest rates are on the rise.

Clearly, a seller is going to see even less viewers on average if they try to sell their home during peak times such as spring and early fall because the seller market would be more competitive.

So, it all boils down to timing. Depending on your needs and objectives, you might get a jump start selling your home if put it for sale earlier such as in January for example.

And, if you are motivated buyer then anytime of year is best, but if you’re fine with dealing with the weather, then don’t wait for the peak times.

Financial FYI Series: Can retired couple afford holiday home? – Consult with a Vancouver Mortgage Broker

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DIANNE MALEY – Globe and Mail

Gabe and Gwen dream of leaving their Toronto Beaches home in a couple of years for the pastoral charm, rolling vineyards and white sand beaches of Ontario’s Prince Edward County.

He is 57, she is 61. Together, they earn about $158,000 a year before taxes.

When they retire, Gabe will get a defined benefit pension from his employer of about $31,000 a year. Gwen, who is self-employed, has no pension plan.

Their plan is to buy a recreational property, financing it by borrowing from their registered retirement savings plan. The RRSP would hold the mortgage. Ideally, they will rent the second property out when they are not using it to help cover costs.

“Since we also may want to retire there, we can use the property as a base to explore the area when it is not rented out and possibly move in when we retire, either selling our house in the city or renting it out,” Gabe writes in an e-mail. The Toronto home is valued at $1-million. Their target price for the second home is $350,000.

With retirement nearing, they have a number of questions. Can they afford to retire and buy a second property? Will it be a sound investment? Does it make sense to have their RRSP hold their mortgage rather than borrowing from a bank?

We asked Warren MacKenzie, founder of Weigh House Investor Services in Toronto, to look at Gwen and Gabe’s situation. Weigh House is an independent financial planning firm that does not sell investment products.

What the expert says

Yes, Gabe and Gwen can retire in two years and maintain their current lifestyle, Mr. MacKenzie says. They are spending roughly $45,000 a year, excluding savings. The planner’s forecast also includes mortgage payments on the new property and assumes they earn a rate of return on their investments of inflation plus 2.5 percentage points.

“They will not be leaving a large estate, but that’s okay because that is not their objective,” the planner adds. The couple have three children in their 20s. They can afford the recreational property, but they will have to borrow to finance it. They should plan to sell their Beaches home and downsize to a smaller home by the time they retire.

In the first year of retirement, their living expenses are expected to be $70,000 a year and they will pay about $5,500 in income tax. The source of their cash flow will break down as follows: $31,000 from Gabe’s pension; $20,000 from their RRSPs (Gwen especially would be in a low tax bracket because she has no pension income); and $24,500 from their other savings.

Later, when they are both collecting Canada Pension Plan and Old Age Security benefits – and making mandatory minimum withdrawals from their RRSPs/RRIFs (age 72) – they will have enough to meet their spending goal without having to draw on their other savings, Mr. MacKenzie says. If they still have two properties, they should plan to sell one at some point. This will give them enough to live comfortably to age 100.

There are pros and cons of buying a second property as an investment, Mr. MacKenzie says. If they can rent it out enough to cover expenses and its value increases in line with inflation, the capital gain on its eventual sale will be taxed at a lower rate than other types of income, which is a plus. On the negative side, they already have roughly half of their net worth in real estate.

“It is not a liquid investment and will require financing,” the planner notes. A well-diversified stock portfolio, in contrast, would give them better diversification, liquidity “and probably a slightly higher return,” he says. The recreational property “should be considered a lifestyle choice, not a real investment,” he says.

“Given they feel they would enjoy their retirement more by having a recreational property, I would say they should buy it even if some other investment might earn more.”

He is not so keen on Gabe and Gwen’s plan to invest their RRSP money in their mortgage.

“The idea of making mortgage payments to your own RRSP is always appealing,” he acknowledges. But having your mortgage in your RRSP makes it impossible to cash in your savings in an emergency.

“If there is an illness or a job loss, or if money is needed for any purpose – including taking early RRSP withdrawals – the house may have to be sold to get the money.” The couple may want to invest in easily traded mortgage funds as an alternative.

——-

Client situation

The people

Gabe, 57, and Gwen, 61.

The problem

Figuring out if they can afford to buy a recreational property and if so, whether it makes sense to finance it by holding the mortgage in their RRSP.

The plan

Go ahead and buy the recreational property.

The payoff

The pleasure of having a country residence that they can either rent or move into at some point, and the flexibility of being able to cash in all or part of their RRSPs in an emergency.

Monthly net income

$8,335

Assets

Bank deposits $40,000; his TFSA $31,000; her TFSA $20,000; his RRSP $118,000; her spousal RRSP $305,000; present value of his pension plan $500,000; children’s RESP $48,000; principal residence $1-million. Total: $2.06-million

Monthly disbursements

Property tax $500; maintenance $225; home insurance $100; utilities $350; transportation $620; groceries, clothing $425; charitable $100; vacation, travel $400; personal discretionary (dining, entertainment, clubs, hobbies, pets) $635; life, disability, dental insurance $120; drugstore $50; telecom, TV, Internet $135; RRSPs $700; TFSAs $500; pension plan contributions $950; professional association $115. Total: $5,925

Liabilities

None

Want a free financial facelift? E-mail finfacelift@gmail.com

Some details may be changed to protect the privacy of the persons profiled.

Bank of Canada’s Poloz upbeat about economic growth – Ask a Vancouver Mortgage Broker

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Bank of Canada‘s Poloz upbeat about economic growth

BARRIE MCKENNA AND BRENT JANG-  OTTAWA/VANCOUVER — The Globe and Mail

Bank of Canada Governor Stephen Poloz speaks Wednesday, Sept. 18, 2013, in Vancouver. Mr. Poloz told the Vancouver Board of Trade he is not concerned about a potential housing bubble.
(JIMMY JEONG/THE CANADIAN PRESS)

Bank of Canada Governor Stephen Poloz is painting a brighter picture for the Canadian economy while tossing aside concerns over a housing bubble.

Canada is on its “way home” to more natural economic growth as central banks prepare to reverse nearly six years of low-interest rate fuel, he said Wednesday.

“We are now close to the tipping point from improving confidence into expanding capacity,” Mr. Poloz told more than 600 members of the Vancouver Board of Trade in his second public speech since taking over from Mark Carney in June.

Mr. Poloz said the key pieces of a more normal and self-sustaining economy are falling into place.

Most economists don’t expect the Bank of Canada to start raising its key overnight rate – which has held at 1 per cent since September, 2010 – until late 2014 or even 2015.

Mr. Poloz said the central bank will eventually raise its key interest rate as inflation moves back up to the bank’s annual 2-per-cent target. “We can expect that short-term interest rates, as is normal, will be above inflation,” he said.

His only hint on the timing of eventual higher rates came when he said the economy can support much stronger activity “without stoking inflation,” given the slack in the labour market. That suggests the central bank could be on hold for some time.

At a news conference, he said major real estate markets across Canada appear healthy 14 months after Ottawa tightened mortgage borrowing rules in July of 2012. “Our reading of that is that markets have responded to the various changes in the rules around mortgage underwriting in a way which has in effect engineered a soft landing – a much more comfortable kind of situation,” Mr. Poloz said.

Even though mortgage rates have crept up recently, interest rates remain at historically low levels. “If you’re in a position to buy a home, of course chances are that you will. So, what I have been suggesting, though, is that people take care to do the arithmetic,” he said.

Consumers have been mindful of their exposure to potentially higher mortgage payments when it comes time to renew in three to five years, Mr. Poloz said. “I don’t know what those numbers will be, but you want to make sure that you test it a little bit and you know that you’ll be able to be afford the payments at those higher levels,” he added.

Mr. Poloz said Canadians have been taking on more debt amid the climate of low interest rates since the 2008-09 recession, but he forecasts that consumers’ income will grow at a faster rate than their debt over the long term. “I don’t perceive that there is a bubble in Canada’s housing market,” he said.

During his speech, he said he is optimistic that gathering foreign demand – particularly from the United States – will soon boost business confidence and prompt companies to expand and invest.

He pointed out, for example, that an unusual post-recession dearth of new company formations appears to be ending. After four years of stagnation, 40,000 new companies with at least one employee were created in the past 12 months in Canada, helping to replace the ones destroyed in the recession, he said.

Mr. Poloz also talked about the “tapering” process in which the U.S. Federal Reserve will, at some point, ease the pace at which additional stimulus is provided to the American economy. It decided against such a move Wednesday.

He likened the financial crisis to “a pot of simmering spaghetti sauce,” where injections of easy money in the economy have created a bubble, but also a large crater. “Central banks have been filling that crater with liquidity,” he said. “Central banks can gradually reduce the rate at which they add liquidity. That’s not policy tightening. Rather, it’s another welcome sign that things are getting back to natural growth. And it indicates that the underlying momentum of the U.S. economy is expected to hold.”

Preparing for Moving Day – Consult with a Vancouver Mortgage Broker

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Preparing for Moving Day

Whether you just sold your home or are preparing to move into a new abode that you have just recently bought, you want to make your move as seamlessly as possible. There is nothing more frustrating when you need to get your hands on something important and you don’t know which box you put it into.

Getting organized and prepared beforehand can save you a lot of hassle if you simply follow these few simple tips to make moving day run like clockwork and avoid needless aggravation. The last thing you need to do is have a scavenger hunt to find the electric can opener so you can make supper.

Make up a Bunch of Blank Lists

It’s easy to make up a bunch of blank list beforehand before and all you need is your trusty laptop and printer to set them up beforehand. How you set up your labelling is entirely up to you but you can pinpoint what’s going into each box and by room. All you need to do is set up two or more rows and a page full of columns.

Don’t have a computer? No problem, just go out and buy a cheap notebook with a spiral binding where you can easily tear out the pages.

When you get your moving boxes or cartons you will want to tape your list to each box. Of course, you don’t necessarily have to go overboard and get too detailed. If you’re loading up your CD’s in one box then all you have to is use a generic title. The same goes with your general reading material.

However, if you have important home office discs then you want to maybe keep them separate so you can easily access them.

If you want to be able to set-up your new abode efficiently then by listing each item onto the list then you know exactly what’s in each box and where to find to find miscellaneous items to help you get set-up more quickly.

You especially will want to know where you are have packed vital tools such as screwdrivers, baby supplies, pet food, flashlights, bedding because most people don’t manage to simply unpack everything the same day they move.

 More Packing Material is Better

No matter how much packing material that you estimate you need, always buy or ask the moving company for more because it’s better to be slightly over supplied then have to run around at the last minute to get additional supplies.

You will also need proper material such as bubble wrap for some of your valuables and breakable. Although many people still like to use newspapers and flyers, the ink can stain and isn’t as protective. And, don’t forget to buy lots of packing tape to secure those boxes, especially the heavier ones.

If your moving company is supplying the material then you can always get a rebate on any cartons or boxes or other materials you don’t use.

For your clothes, you can also buy or request that the moving company supply you with wardroom boxes. These wardroom boxes are ideal for all your clothes which you can leave hanging and don’t have to worry about them becoming wrinkled. These boxes are going to be heavy enough so don’t cheat and try to cram other things in there because you’ll make them too heavy.

Keep Important Papers and Valuables Separate

You especially want to keep your important valuables and vital personal and financial papers separate especially if you are using a moving company. They should come with you in your own personal vehicle if at all possible because boxes sometimes do go awry when you use a mover. You want to keep tabs of anything valuable and ensure that you have proper insurance on these valuable items.

You may require a separate insurance rider or it might be covered in the homeowner’s policy. Either way – read the policy or contact your insurance broker before the move takes place.

How Your Credit Score Affects Your Vancouver Mortgage – Ask Bruce Coleman, Vancouver Mortgage Broker

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How Your Credit Score Affects Your Vancouver Mortgage  

One of the key factors used by Vancouver mortgage lenders in determining whether you will qualify for a mortgage is your credit score. Your credit score may also impact the terms of your mortgage and your interest rates.

A Vancouver home mortgage is probably without a doubt one of the largest investments the average person will make in their lifetime. A mortgage is also considered a large loan by any lender.

Why is a Credit Score So Important?

A mortgage lender wants to learn as much as possible about your character. They want to know about your credit history because it tells them whether you are a responsible person who pays your debts and how well you pay them.

The lender is assuming a risk for any mortgage they issue so they would naturally want to minimize that risk as much as possible.

Your credit score is a reflection of all the debts that you have assumed and tells the lender about how responsibly you pay back your debts. A low credit score suggests you are irresponsible when it come to paying your debts which makes them very averse to taking you on as a potential client for a mortgage loan.

How your Credit Score Is Determined

The credit rating agencies are supplied information by lenders such as banks, credit unions, credit card agencies, department stores and others which detail the credit you have assumed and how well you re-pay it.

A credit report will consist of two parts. The first part of a credit report will outline the following information:

• Your payment history
• The overall amount of credit you currently owe
• How often you use credit or credit usage
• Your credit experience
• Whether you have acquired any new credit
• Types of the credit which you have established

The second part provides what is known as an “R” rating where you are given an overall rating ranging from R1 to R9. An R1 rating is the best possible rating and means that you have been paying all your required payments within 30 days. Naturally, an R9 rating is the worst possible rating that can be attached to your credit report.

The two main credit reporting in agencies are Equifax Canada and TransUnion Canada. Both of these credit reporting agencies will charge a fee for your credit report of roughly around $25.00

What Constitutes a Good Credit Score for a Mortgage?

The minimal credit score required by a mortgage lender varies slightly from lender to lender. The average minimal credit scores required by a mortgage lender generally range from between 620 to 680. Most lenders consider any score above the 700 range as being an excellent risk for a mortgage loan.

A low credit score can result in your application being rejected or having more restrictive terms or higher interest rate being charged. You may be required to get a co-signer or have other conditions applied.

In this day and age of identity theft which has become all too common place it’s a good idea to get hold of your credit report before you apply for a mortgage. Credit rating agencies also do make mistakes so if you find your credit score significantly lowered because of either of these issues you need to take prompt and appropriate steps to correct and rectify the problem before you apply for a mortgage.

Becoming Older and Downsizing your Next Home – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Becoming Older and Downsizing your Next Home

The kids have moved out and you’re closing in on your retirement. You find yourself rattling around in a large home and might be asking yourself if you still need such a large home anymore.

Well, maybe you don’t so perhaps you should be thinking of selling the old homestead and getting yourself something smaller.

It’s difficult because you’ve put a lot of effort in maintaining your home and you’ve got a lot of memories built around the family home. So why should you think about moving and getting something smaller?

Reasons Older People Can Consider for Downsizing

There are several good reasons why it might not be practical to consider a smaller living space but there might be some good financial reasons to consider as well.

1. Don’t need the space anymore

If you raised 2 or 3 children and they’ve now gone off and started their own lives, then you simply don’t need all the empty available space anymore. If you have a four plus bedroom home then it’s just extra areas of the home that need cleaning and expensive heating costs.

If you look around then maybe you can find a smaller home or condo that is more suitable to your current needs.

2. Less Maintenance

Let’s face it – any home needs regular maintenance. The gutters need to be cleaned, and there’s the lawn work, the deck, windows etc. that all have to be looked after. If you’re not getting younger or your health has started to decline then you’re going to have to hire someone to continue to do this maintenance. Do you really need the extra expense?

Maybe, it’s time to use the appreciation and equity you’ve built up in your current home and find yourself a nice roomy condominium that doesn’t require all this detailed maintenance anymore.

3. Save Money

If you move to a smaller abode such as either a smaller home or condo you will very likely save some money in a variety of ways. First, a larger home is more expensive to heat in winter and cool in summer. A smaller home or condo can save you a lot of money if you have a bunch of empty space that needs utilities.

Then, there are also the property taxes to consider. You might find a new locale where the property taxes are a lot lower for a smaller sized property and that can also save you money.

4. Downsizing might be a good investment

If you have already paid off your mortgage, and considering the retail value of your home, you might be able to buy a smaller property and still have plenty to spare for other investments which you can use for your retirement.

This could be especially advantageous if you are able to buy your property outright without having to get another mortgage. You will still have 100% equity in your property and can always access a “Reverse Mortgage” if you get into a minor cash bind.

Surprisingly, almost over 40% of the ageing baby boomers indicate they will be looking for a new home that is as big as or even larger than their current home. This trend certainly doesn’t apply to everyone’s situation, so you might want to sit down and seriously consider whether it’s worth your while to stay in your current home or consider downsizing to a smaller abode.

Home Series: Getting ready to sell? 10 staging tips to wow home shoppers – Ask Bruce Coleman, Vancouver Mortgage Broker

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LUCIE BRAND – Special to The Globe and Mail

The following article is from Canadian Real Estate Wealth Magazine.

Renovated clean kitchen, ready for house sale.
(Photos.com)

Preparing any property for sale can be a daunting and often overwhelming task, even for a seasoned investor. Whether you are living in your current investment property or if it has been tenanted for years there are some key staging strategies that can help get your property open house read.

1. Start with a change of mind
Too often investors/home owners become either too emotionally attached or not attached at all. I have worked with investors who were renovating a property and blew their budget on some obscenely expensive tile they “had to have” and had nothing left for furnishing the place. On the other hand I’ve worked with landlords who did not see the value in painting a place that had gone through 3 tenants! Looking at a property from a buyer’s perspective is key.

Take a tour with a realtor or a staging professional and get some outside opinions on what areas you should focus your dollars on and what’s needed to get the maximum offers.

2. Maximize curb appeal
The outside should draw people inside. Neatly trimmed bushes, mulched beds, weeded lawns all help make that crucial “first impression”. Freshly painted front doors with new mailboxes and house numbers are easy ways to create maximum impact without breaking the bank. Adding seasonal urns by the front door for some colour are another way to brighten up concrete steps or boring brick.

3. Choose neutral colour palette
Bold colours are great for living, but not for selling. Light and Bright should be your motto! Stick with a warm, neutral palette like tans, taupes and greys. Avoid dark colours, especially in small spaces (like powder rooms). Keep the ceilings white to keep walls looking tall. Rule of thumb, if the walls haven’t been painted in over 2 years, now is the Time!

Return on investment: 109 per cent*

4. Let there be light
Lighting plays a vital role and is often overlooked when getting a property ready for sale. Dark hallways, rooms with little natural light, basements and bathrooms should be addressed. A minimum of a 2-bulb overhead fixture with maximum watt bulbs can transform a dingy area. There should be NO overhead receptacles without a light fixture! Consider adding pendant fixtures in dining rooms and eating areas. Big box stores offer affordable options in brushed nickel or silver fittings.

Adding ambient lighting is essential especially in areas where there is no overhead outlets. Adding table lamps and floor lamps will help brighten up any room and help your property appear as “light-filled” as possible.

Return on investment: 303 per cent*

5. Flooring
This is the other main area that always increases the value of a home. It will ALWAYS cost you less to replace worn carpet or add new flooring then to leave it to the new home owners.

Most purchasers are looking for reasons to discount their offers. Flooring is one of the first things buyers see when they walk in. If their first thought is “I will need to replace these floors”, I guarantee they are discounting their offers $5000-$10000 for condos and $7000 – $15000 for houses. Doing the work yourself will cost you a fraction of that amount.

Return on investment: 107 per cent*

6. It’s all in the details
Replace all burnt out bulbs, touch up any nicks and dents in high traffic areas, replace torn screens and fix leaking faucets. Once the fix ups are done it’s time to focus on the pretty stuff. Fresh linens in the bathrooms, a bowl of fresh green apples on a kitchen island, fresh flowers on a dining table or in the entrance way.

Adding live or silk greenery to bathrooms and adding a new crisp bedding set to the Master all help create the impression of a well-cared for home.

7. Clean, clean, clean
This may seem like common sense, but unfortunately it’s still the one area owners tend to try and shortcut. This is the time to hire a professional cleaning company. Special attention should be placed on appliances, inside and outside of cupboards, baseboards and windows. Bathrooms should be scoured and if necessary use grout cleaner to get the tiles looking spotless!

8. Highlight best use of the space
Tenants may have liked to use the dining room as an office, but it should be shown with it’s intended purpose. Giving a room more than one function (i.e. guest room and office) is a great way to effectively show the space. In condos this becomes essential when space is at a premium.

Using small glass desks with a stool you can tuck in can creatively introduce a “work space” where one wouldn’t think possible. Adding a daybed to a den/office creates extra sleeping space. Determine what adds the most value to potential buyers in your neighbourhood and showcase the space accordingly.

9. Kitchens and bathrooms are the place to invest
If you have dated cabinetry, cracked and worn laminate counters, chipped or broken tiles, consider investing in repairing and upgrading these rooms.

If your budget is limited, changing cabinetry hardware to brushed nickel or silver knobs and handles will give it an immediate appeal. Consider painting cabinetry instead of replacing them.

Depending on the price point of your property it is often worthwhile to install stone counters. This immediately adds value and is very durable for long term use. If stone is not in the budget, consider a “stone– like” laminate counter. Recaulking around sinks and bathtubs is a simple improvement that can greatly improve the look of a bathroom.

Return on investment: 172 per cent*

10. Vacant properties sit, staged properties sell
Staged homes sell 2 – 3 times faster and up to 6 per cent more than unstaged ones**. People perceive staged units that are well decorated as worth more. Professional stagers know how to highlight the features of the unit and distract from any “not so desirable” features.

If your budget is limited consider focusing on the main living areas and at least one bedroom. If you can’t borrow furniture and artwork, rental companies carry everything from furniture to linens. Just keep in mind that the goal is to show people how to use the space effectively.

Return on investment: 299 per cent*

Remember that 79 per cent of buyers have already viewed your property on the MLS, make sure that your property stands out among the competition! Staging is your key to getting noticed and getting SOLD.

*Homegain Survey 2011

** Joy Valentine Coldwell Banker Survey of 2772 homes

From Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

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