The Canadian RRSP allows tax-payers to save money for retirement while getting a break on taxes.   Once withdrawn, taxes must be paid, and the amount can never be put back into the RRSP – with one exception.  First-time home buyers needing money for a down payment are allowed to borrow up to $25,000 (tax-free) from their RRSP funds, and they have up to 15 years to repay the amount. 

But!  After reading the article, first-time home buyers might think twice about doing this.  The article explains with specific examples the permanent financial blow this deals to one’s retirement fund and subsequent retirement income.  Because the RRSP contains pre-tax dollars, the potential earning power of this money is greater than funds saved in other ways, and the loss of earning power is therefore greater also.  Loss of growth in one’s savings for retirement might be at least partially off-set by savings occurring from having a smaller mortgage, but prospective home buyers will need sharp pencils to calculate if this works for them. 

Read the full article to see if this strategy is the best choice for you.

I work with mortgage brokers who can help you figure out the best way to get into the house you want.  Call me today at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

An article by Mike Holmes in the January 14, 2012 edition of the Edmonton Journal entitled “No building permit? You’re asking for trouble” (posted online as “Before renovating, get the proper permits — or you’ll regret it”) gives the details about why this document is so critical.

In fact, having a building permit is one of the best things you can do to protect yourself and the time and money you invest in a renovation.  That little piece of paper comes with inspections by municipal building inspectors who check the work to see that it’s safe and built to code.

Why is this important?  For starters, you may not know that municipal officials can force you to shut down a project without a permit or even tear down completed work that hasn’t been inspected.  Work that hasn’t been inspected may be fine – but we hear far too many stories about unlicensed contractors doing shoddy work that not only brings down the value of your property but may end up damaging and destroying other properties in your neighborhood.  A permit may cost you a few dollars and a bit of time, but having things done right is worth it.

Read Mike Holmes’ article for the full story.

Looking for property to fix up and rent out or flip?  I can help you find just the right place.  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

This list may be one of the most comprehensive you will ever find, starting outside your home with a look at your neighborhood in general, outdoor security and valuables, landscaping, exterior lighting, the garage and other outbuildings.  Focusing on your home itself, items to check here include entry doors and locks, windows, the home interior and its contents, and special circumstances, such as alarm systems, firearms, swimming pool safety, and fire safety.  The document concludes with a special checklist just for things you need to consider while on vacation.  Chances are there are a few things on the Home Security Checklist you haven’t thought of doing, and those things just might make your home more secure and less burglar-friendly!

You might also be interested in our Fire Safety Checklist.

Some related blog posts:

• Summertime Home Security Tips (August 12, 2011)
• Winter Isn’t For Wimps! (October 21, 2011)
• Cyber Security (October 25, 2011)

Looking for a new home, especially one with more security features?  Call me at 780-910-9669, email me btwynam@telusplanet.net, or contact me here.

But the market at the moment in the Edmonton area is making the decision to buy much easier.  An article in the January 5, 2012 Edmonton Journal entitled “Real estate market healthy, agents say” contains some very encouraging news.   In spite of crises elsewhere (Europe’s money woes, the US housing market), prices and sales in our region remain steady.  The article quotes a statistic from the Realtors Association of Edmonton:  the average price of homes sold through MLS in 2011 was $325,457.  This is down slightly from $329,019 in 2010, but prices are not undergoing the wild swings we’ve experienced in the past or the ups and downs felt elsewhere.  The article also points out that 827 properties were sold in December 2011, compared to just two more the previous December. 

Is right now, just after New Year’s, a good time to buy?  Sure, why not?  The article mentions that the market usually picks up in the summer, with April and May being peak months, but there is always an inventory of homes waiting for the right buyer, and the current market stability, combined with continuing low mortgage rates, all suggest the time is never better!  

I’d love to help you find that perfect home!  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

An article in the December 10, 2011 Edmonton Journal, entitled “Park your emotions when selling your home”, is one of those “couldn’t have said it better myself” articles that I’d like to share with my clients.

Author Marnie Bennett starts by stating that “feelings and emotions muddy home-sale waters.  I can’t stress enough to keep them as far away from your business decisions as possible.”  She goes on to outline five “rules” to help sellers detach emotionally from the sale of their home.

Number one on her list is “Choose your agent wisely”, opting for a business-like approach that will maximize profits and minimize hassle.  Setting the proper price for your home, negotiating from a position of strength, staging your home to show off its best features, and above all, keeping one’s emotions out of the deal round out Ms. Bennett’s list of rules.  We’ve heard this good solid advice many times before, but it’s the kind of advice that deserves to be repeated and heeded by anyone trying to sell a home.  Why is this such good advice?  I encourage you to read the full article!

If it’s time to sell your home, I would be happy to guide you through as stress-free a process as possible.  Please call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

If you’re shopping for a mortgage in Spruce Grove, Stony Plain, Parkland County, the Edmonton region, or elsewhere, you have no doubt been faced with choosing between a floating, or variable, mortgage rate, or a rate that is fixed for a period of time.  Five-year fixed-rate mortgages are especially popular because they provide mortgage holders the security of knowing exactly how much they will pay over the term of the mortgage.  People choose fixed-rate mortgages despite the fact that variable-rate mortgages have been shown over time to save significant amounts of money.

But a recent article on the CBC News website entitled “5 reasons why a fixed-rate mortgage could be your best bet” could make the variable-rate mortgage crowd rethink their choices.

The article points out several factors that suddenly make fixed-rate mortgages attractive for reasons other than no surprises about the amount of your payments.  Posted mortgage rates are being discounted more than they used to be when a consumer locks in for 5 years.  Secondly, the gap between the higher rate for fixed-rate mortgages and the discounted variable rate is narrowing.  That is, the variable rate is not being discounted as much, and fixed rates have dropped.  What’s more, mortgage brokers may be able to negotiate a fixed rate that is considerably lower than the fixed rate offered by the big banks, a rate that is in fact only slightly higher than the variable rate.  Combine these bargains with a variety of fixed terms, some as short as two years, and all of a sudden the fixed-rate mortgage is a contender!

The article concludes by stating that rates are and will likely remain at historic lows so consumers can’t really go wrong no matter what kind of mortgage they choose.  Please read the full article for all the details. 

I work with several mortgage brokers and would be happy to help you get pre-approved for a mortgage prior to showing you just the right property!  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

An article with this compelling title in the December 2, 2011 edition of the Stony Plain Reporter and Spruce Grove Examiner newspapers stopped me cold the other day.  We hear so much about the evils and perils of credit card use that many of us feel a little shamefaced to be caught pulling one out of our wallets.  Could it be that credit card use is actually advantageous?  Yes, says this article, as long as you pay off your balance in full every month, and you use one of the many cards that give you rewards, such as cash back or reward points redeemable for merchandise or travel.  And you don’t have to pay a fee for these cards either, as many of them allow you to collect the goodies without paying anything beyond the cost of the items you’ve charged.  Pretty sweet deal, especially at this time of year when our wallets get pulled out a lot!  Check out the full article here:  Save by Spending on a Credit Card from TorontoSun.com. 

While I can’t take a credit card in payment for your house purchase, I can help you save money when buying real estate!  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

No matter how short or long a time you spend in your Spruce Grove, Stony Plain, Parkland County or Edmonton area home, there will come a time when you leave it.  If you live in it long enough, it will need to be refreshed, updated, and renovated.  The question is:  

 The best answer to this question is to think about both goals.  Renovate it for your own taste, pleasure and functional use, but don’t forget that your home will eventually go back on the market and may need to appeal to tastes broader than your own. If you’re looking to maximize the value in your home, both for your own use now and for future resale, what sorts of renovations are the best ones to undertake?

 Ergil & Jackson Appraisals Ltd. in their excellent Home Renovation Guide, 2010 edition, give this advice:

GETTING THE MOST OUT OF YOUR RENOVATIONS

According to the Appraisal Institute of Canada  and various professionals we’ve consulted, the following are a few things to keep in mind before you get started:

Invest in your kitchen!

About 10‐15% of the overall value of the home should be spent on the kitchen. If you don’t plan on selling for another 5 years, spending 15‐25% more on it today will give you about a 44% higher recapture depending on the quality of the renovations. For example, buyers need afunctionally designed, spacious, low maintenance kitchen. Scratch‐resistant, durable materials such as granite countertops and high‐quality appliances add tremendous value and have timeless appeal.

The bathroom is next!

You can expect up to a 60‐80% (and in some cases up to 100%) contribution to value on a well designed bathroom even if that requires a complete relocation of fixtures or walls. From floorto ceiling, new tiles, light fixtures and cabinetry to create one’s own personal spa is especiallyappealing. Luxury fixtures to enhance pampering may include water jets, soaker tubs and double sinks in the ensuite bathroom.

Don’t forget the floors and walls!

The buyer wants a home that’s ready to move into.  Smooth walls with quality, neutral paints will make spaces seem larger and will give you an 80‐110% recapture. Carpeting should be limited to bedrooms, if at all. Hardwood and tiles not only benefit in allergen reduction but add elegance as well.  Good flooring that flows from room to room and ties in with baseboards, cabinetry, walls and so on, can provide a 50‐75% better contribution to value than low‐cost, mediocre flooring.

Spend the money!

As the saying goes “You get what you pay for”.  Over the past year the cost of materials may not have increased dramatically but the cost of labour is certainly rising. Quality craftsmanship and insuring a job well done is key.  Nothing is more costly than having to do it twice or replace it early.  The importance of using the highest quality materials cannot be stressed enough.

Remember: High‐quality, easy maintenance, environmentally conscious products and timeless designs are all essential to ensuring value‐added appreciation with the best contribution to value possible.

Thanks to Ergil & Jackson for allowing me to quote portions of their document.  Please check out their full Home Renovation Guide for plenty of good information and advice.

Wondering what your home is worth in today’s market?  I’d be happy to do a free Home Evaluation for you.  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

Is it a good idea to tackle major renovations just before you put your home on the market to make your Spruce Grove, Stony Plain, Parkland County or Edmonton area home more attractive to buyers? 

Some time ago, I posted a blog entry on this topic (Should You Renovate Before You Sell?  Learn Which Home Renovations Give You the Best Return), giving some details about the costs of various renovations and how much, if anything, those renovations might add to the value of your home when it came time to sell.  This information came from Henderson & Butt’s excellent 2009 Home Renovation Guide.  Well, Henderson & Butt are now Ergil & Jackson Appraisals Ltd., and the 2010 edition of the Home Renovation Guide offers even more great information to help you keep or increase the value of your home.  Many thanks to Ergil and Jackson for allowing me to use information from their guide in my blog posts.

I’ve revised my original blog post to include more current information courtesy of Ergil and Jackson.  To view my revised article, please visit my new blog on Active Rain.   

Are there topics you’d like me to discuss in these blog posts?  I’d love to hear from you.  Call me at 780-910-9669, email me at btwynam@telusplanet.net, or contact me here.

The article points out that, while the initial cost of the newer high-efficiency furnaces is a little steep [expect to pay around $5000 for the purchase and installation of a new, high quality furnace], you’ll save plenty of money over time.  A quote from the article:

“Natural gas prices have more than tripled in the past 10 years and many analysts are forecasting further price increases. Fortunately, the efficiency ratings of new furnaces have also been increasing. Most furnaces installed in the 1970s, ’80s and early ’90s, were only 60-to 70-per-cent efficient, and very old furnaces can be less than 50-per-cent efficient. A continuously burning pilot light can decrease these efficiencies by another five per cent. New furnaces are 90-to 95-per-cent efficient. They do not have pilot lights and can reduce your heating costs by up to 40 per cent.”

But it’s not just money you’ll be saving.  Older furnaces are not very good at filtering dust and allergens from the air in your home.  What’s more, older furnaces can emit dangerous levels of carbon monoxide within your home.

My assistant recently replaced the furnace in her 30-year-old Spruce Grove home and had this to say about the experience:  “We knew it was time.  We’d been reading and hearing a lot about how much better the new furnaces were.  Our old one was still pumping out the heat, with no trouble, really, but we knew it couldn’t go on forever.  What surprised us was how much better the air circulated through the house with the new furnace – far fewer cold spots.  We used to have to wrap up in blankets for TV watching in our basement family room, or turn on the gas fireplace, but no more!  The basement is as cozy as the rest of the house.  But what really sold us on the new furnace was something we weren’t expecting at all.  Our son always gets stuffed up and sneezy when he comes to visit because he’s allergic to cats, but the new furnace has taken all of that away.  Now, that’s impressive, and definitely made us happy about our purchase!”

It’s not too late to replace your old furnace before the really nasty winter weather hits.  Learn more about the benefits of the new high-efficiency furnaces by checking out “A new furnace can save money, and lives”.

Comments or questions about this article?  Call me at 780-910-9669, email me at btwynam@telusplanet.net or contact me here.