Must Have Tool Kit
My name is Jamie and I’m a tool-aholic. I have a large compliment of tools for any job. Table saws, routers, jig saws, circulars saws, scroll saws, reciprocating saw jointers, biscuit joiner, lathe, a huge collection of hand tools and many (many) more. And that’s just for woodworking and home repair. You should see what I keep in my garage for my auto addiction. ( I sure hope my wife doesn’t read this post, I could be in trouble)
But for the basic home tool kit you don’t need the collection I’ve got. Here a small list of must have tools that you should buy for your first home to get started on minor repairs.
Hammer – nothing too light but you don’t need a large framing hammer.
Screw Drivers – You can buy a set fairly inexpensively but be sure it includes a large slot, small slot, #2 philips and a red (#2) and green (#1) robertson
Hand Saw (wood) – For minor repairs you don’t need a power saw. A hand saw will work for a lot of minor jobs
Hack Saw (metal) – There is always something that needs to cut
Drill – A small electric hand drill is very inexpensive. A battery drill is also OK, but if you use it very little or buy really cheap the batteries will cause you problems.
Level – even a small 6” or 12” level will help hang a picture or shelf.
Tape Measure – Very few jobs can be accomplished without one.
Caulking Gun – Every year you will find something inside and outside of the home that will need to caulked.
Plunger – When you need one it is no time to running to the store.
The above collection of tools can be bought for about $100 at most home centers. It would also be the ideal time to pick up a nice tool box to keep everything in. Perhaps a few well placed hints to your friends for the ideal home warming gift may payoff.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
A Nice Ego Boost
I want to share with you something that happen with a client the other day. About a year ago I sold this young couple a run down home in a small village. They felt they were up to challenge of renovating this home and were prepared to make a serious investment with the intentions of selling again.
The house had several additions over it's 100 year plus life and unfortunately each addition looked like an addition. The access to the second floor was difficult to say the least, it was a twisty staircase with a small entrance. I usually hit my head on the sloped ceiling at the top of the stairs. The whole house was dark brown panelling with worn out carpeting.
Early in the process they had asked my opinion on their plans and I made a few minor suggestions. But overall they had a good game plan.
I visited the "new" home last night and what a change. While not quite finished the transformation is amazing. The home no longer looks like it had additions done, it now has a nice clean exterior look. The interior is an all new floor plan and basically all new everything. Kitchen, bathrooms, flooring, walls, paint - all new.
But the part I liked the best was "Jamie's bathroom" a small two piece bathroom by the door. When I commented on their plans I had suggested adding this bathroom. In their plans they showed two 4 piece baths, one on the second floor and one as an on-suite off the master suite on the main floor, both all the way across the house from the doors. My issue was guests and kids would either need to go upstairs or through their bedroom to use the bathroom. The small two piece solved this problem.
It's always nice when you find that people listened to your advice and than acted on it. I just hope when the time comes to sell it all pays off for them. But the with quality of the work they have done they have given themselves the best chance at it.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
The house had several additions over it's 100 year plus life and unfortunately each addition looked like an addition. The access to the second floor was difficult to say the least, it was a twisty staircase with a small entrance. I usually hit my head on the sloped ceiling at the top of the stairs. The whole house was dark brown panelling with worn out carpeting.
Early in the process they had asked my opinion on their plans and I made a few minor suggestions. But overall they had a good game plan.
I visited the "new" home last night and what a change. While not quite finished the transformation is amazing. The home no longer looks like it had additions done, it now has a nice clean exterior look. The interior is an all new floor plan and basically all new everything. Kitchen, bathrooms, flooring, walls, paint - all new.
But the part I liked the best was "Jamie's bathroom" a small two piece bathroom by the door. When I commented on their plans I had suggested adding this bathroom. In their plans they showed two 4 piece baths, one on the second floor and one as an on-suite off the master suite on the main floor, both all the way across the house from the doors. My issue was guests and kids would either need to go upstairs or through their bedroom to use the bathroom. The small two piece solved this problem.
It's always nice when you find that people listened to your advice and than acted on it. I just hope when the time comes to sell it all pays off for them. But the with quality of the work they have done they have given themselves the best chance at it.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Buyer's or Seller's Market?
Buyer's or Seller's Market? Depends on where you are.
Some of you may not know but Remax a-b Realty has offices in Stratford, Woodstock and St. Marys. It is interesting to compare each market place to see how they compare and the differences between them. Today I'll look at Woodstock (my home town) and Stratford and look at the differences between these cities.
Woodstock is slightly bigger than Stratford by about 5,000 people and is located on Hiway 401. I'm sure you know that they are home to the new Toyota plant. According to the local real estate board there are 486 properties for sale in Woodstock. The highest priced listing is at $699,000, and only three properties that exceed $600,000. At the other end of the market they have 52 homes listed at under $150,000 and 12 under $100,000.
Compare that to Stratford. Our current number of listing is 160 homes, with the highest listed at $1,599,000 and one at $1,390,000. We also have just 6 under $150,000 and 1 under $100,000. Stratford actually needs to have more homes listed as this shortage is driving prices up.
After looking at this comparison it would be easy to say that Woodstock is a buyers market. There are way more houses for sale than buyers. Stratford on the other hand is a Sellers market (although not a really strong sellers market).What does this mean to you if you live in either market? For Stratford sellers now is a good time to list. With little competition a good house will command top dollar. For buyers, be prepared to move quickly when you find the home of your dreams, but don't buy in panic, our market is not moving that quickly.
If you live in Woodstock as a seller you will have to make sure your home is ready to be sold. Talk to realtor and take their advice on prepping your home for sale. For Buyers you have the luxury of great selection and time to shop. But remember really good houses do move quickly so stay on top of the local market.
Jamie Woodend, Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Some of you may not know but Remax a-b Realty has offices in Stratford, Woodstock and St. Marys. It is interesting to compare each market place to see how they compare and the differences between them. Today I'll look at Woodstock (my home town) and Stratford and look at the differences between these cities.
Woodstock is slightly bigger than Stratford by about 5,000 people and is located on Hiway 401. I'm sure you know that they are home to the new Toyota plant. According to the local real estate board there are 486 properties for sale in Woodstock. The highest priced listing is at $699,000, and only three properties that exceed $600,000. At the other end of the market they have 52 homes listed at under $150,000 and 12 under $100,000.
Compare that to Stratford. Our current number of listing is 160 homes, with the highest listed at $1,599,000 and one at $1,390,000. We also have just 6 under $150,000 and 1 under $100,000. Stratford actually needs to have more homes listed as this shortage is driving prices up.
After looking at this comparison it would be easy to say that Woodstock is a buyers market. There are way more houses for sale than buyers. Stratford on the other hand is a Sellers market (although not a really strong sellers market).What does this mean to you if you live in either market? For Stratford sellers now is a good time to list. With little competition a good house will command top dollar. For buyers, be prepared to move quickly when you find the home of your dreams, but don't buy in panic, our market is not moving that quickly.
If you live in Woodstock as a seller you will have to make sure your home is ready to be sold. Talk to realtor and take their advice on prepping your home for sale. For Buyers you have the luxury of great selection and time to shop. But remember really good houses do move quickly so stay on top of the local market.
Jamie Woodend, Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Is Your Electrical System Adequate?
Is Your Electrical System Adequate?
If you live in a typical 1950’s home you are likely using 4 times the electricity it was originally designed for. That’s right; the average family today uses 400% more electricity than we did in the ‘50’s.
Think of all the things we now take for granted that did not exist or were rare than. TV’s, computers, game systems, DVDs, stereos, fax machines, microwaves, all add up to an extra load on our houses electrical systems.
If you have a circuit in your home that the fuse or breaker keeps tripping, it’s time to call a professional in to check to be sure it is not a sign of a bigger problem.
Kitchens are one of the worst areas for electrical problems. Under current code, microwaves and refrigerator each need a dedicated circuit. Most plugs should be split receptacles, meaning the top and bottom plug is each on a different breaker. Anything near a sink must use a Ground Fault Interrupter type plug or GFI.
Insurance companies for the most part won’t insure a house with the old knob and tube wiring. We hear comments all the time, “well it’s lasted a hundred years it still good.” But these circuits were never designed for today’s modern loads.
If you have experienced any issues with the electrical system in your house call a professional to get their opinion. Faulty wiring can and does cause fires. The life you save could be you own.
Is Your Electrical System Adequate?
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
If you live in a typical 1950’s home you are likely using 4 times the electricity it was originally designed for. That’s right; the average family today uses 400% more electricity than we did in the ‘50’s.
Think of all the things we now take for granted that did not exist or were rare than. TV’s, computers, game systems, DVDs, stereos, fax machines, microwaves, all add up to an extra load on our houses electrical systems.
If you have a circuit in your home that the fuse or breaker keeps tripping, it’s time to call a professional in to check to be sure it is not a sign of a bigger problem.
Kitchens are one of the worst areas for electrical problems. Under current code, microwaves and refrigerator each need a dedicated circuit. Most plugs should be split receptacles, meaning the top and bottom plug is each on a different breaker. Anything near a sink must use a Ground Fault Interrupter type plug or GFI.
Insurance companies for the most part won’t insure a house with the old knob and tube wiring. We hear comments all the time, “well it’s lasted a hundred years it still good.” But these circuits were never designed for today’s modern loads.
If you have experienced any issues with the electrical system in your house call a professional to get their opinion. Faulty wiring can and does cause fires. The life you save could be you own.
Is Your Electrical System Adequate?
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Stop the HST
Subject: Stop the HST – Cost of buying, owning and selling a home to go up by 8%
Earlier this week, the Government of Ontario formally launched its latest assault on homeowners, purchasers and sellers with the introduction of legislation to harmonize the provincial sales tax and goods and services tax.
Homebuyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario.
For homeowners the HST will also add hundreds of dollars in additional tax on utility bills (gas, electricity and home heating fuel), on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.
Please help Ontario REALTORS® fight this tax. In less than 30 seconds you can send an email to your MPP asking them to vote against sales tax harmonization legislation, by clicking here: http://bit.ly/stopthehst
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Earlier this week, the Government of Ontario formally launched its latest assault on homeowners, purchasers and sellers with the introduction of legislation to harmonize the provincial sales tax and goods and services tax.
Homebuyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs, adding about $1,500 in new taxes to the average residential real estate transaction in Ontario.
For homeowners the HST will also add hundreds of dollars in additional tax on utility bills (gas, electricity and home heating fuel), on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal.
Please help Ontario REALTORS® fight this tax. In less than 30 seconds you can send an email to your MPP asking them to vote against sales tax harmonization legislation, by clicking here: http://bit.ly/stopthehst
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
A Beginners Guide to Buying Investment Properties
A Beginners Guide to Buying Investment Properties.
“It was the best of times, it was the worst of times.” We have all heard this famous opening line from Tales of Two Cities by Charles Dickens. It can also be applied to investing in real estate.
With interest rates so low, a good inventory on the market and reduced prices it could be the best of times. However if you don’t know what you are doing it can the worst of times. When it was time to purchase the home you currently live in, you planned, you thought about your financial goals and your lifestyle, (you did, right?). Well it is the same when purchasing investment properties you need to think about the same things again.
Before making the plunge, you need to go back to school. The internet is a great source of information, after all you’re reading this on the internet aren’t you? There are also many books on investing in Real Estate as well. A word of caution, not all information will apply to your location or situation. Canadians have to be especially wary of American books as there are very little similarities between our investment rules and regulations and theirs. Sort thought the information and find what is relevant to your area.
A general rule of thumb also says you should own your own home before owning investment properties. You can use this property to leverage the purchase of others or turn it into a rental as your investment portfolio grows. Now if you are in a situation where you live below market cost, (still live at home or have very low rent) than it would make sense to move forward with an investment plan before owning your own home.
One final point. Know your local market. Just because one area is booming or going bust doesn’t mean your area is experiencing the same thing. Each market place can be unique so you must know yours.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
“It was the best of times, it was the worst of times.” We have all heard this famous opening line from Tales of Two Cities by Charles Dickens. It can also be applied to investing in real estate.
With interest rates so low, a good inventory on the market and reduced prices it could be the best of times. However if you don’t know what you are doing it can the worst of times. When it was time to purchase the home you currently live in, you planned, you thought about your financial goals and your lifestyle, (you did, right?). Well it is the same when purchasing investment properties you need to think about the same things again.
Before making the plunge, you need to go back to school. The internet is a great source of information, after all you’re reading this on the internet aren’t you? There are also many books on investing in Real Estate as well. A word of caution, not all information will apply to your location or situation. Canadians have to be especially wary of American books as there are very little similarities between our investment rules and regulations and theirs. Sort thought the information and find what is relevant to your area.
A general rule of thumb also says you should own your own home before owning investment properties. You can use this property to leverage the purchase of others or turn it into a rental as your investment portfolio grows. Now if you are in a situation where you live below market cost, (still live at home or have very low rent) than it would make sense to move forward with an investment plan before owning your own home.
One final point. Know your local market. Just because one area is booming or going bust doesn’t mean your area is experiencing the same thing. Each market place can be unique so you must know yours.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
New Stratford Listings
New MLS Stratford Listings
These property were listed this week by our Remax office. If you would more details on any of these properties please let me know.
59 Grange Street, Stratford, $214,900
20-300 John Street, Stratford, $229,900
3185 Vivian Line, Stratford, $345,900
7 George Street, Milverton, $174,900
143 Greenwood Drive, Stratford, $259,000
30 Queensland Road, Units 0100, 0105 and 0115, Stratford, Starting at $9.00/sq ft + CAM and Taxes
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
These property were listed this week by our Remax office. If you would more details on any of these properties please let me know.
59 Grange Street, Stratford, $214,900
20-300 John Street, Stratford, $229,900
3185 Vivian Line, Stratford, $345,900
7 George Street, Milverton, $174,900
143 Greenwood Drive, Stratford, $259,000
30 Queensland Road, Units 0100, 0105 and 0115, Stratford, Starting at $9.00/sq ft + CAM and Taxes
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Expert Advice from the Sales Team of RE/MAX a-b Realty Ltd. Brokerage.....
Expert Advice from the Sales Team of RE/MAX a-b Realty Ltd. Brokerage....we asked some of our staff the following question:
What key thing do you want first time home buyers to know right now?
Today is the best day to buy. Houses are more affordable today than 5 years ago. Interest is at historical lows and buyers are in the driver's seat. Buy today as tomorrow it will change. Jamie Woodend, Sales Representative, Stratford office
Home buyers should know how the process works and that we will be with them every step of the way and beyond. Jason and Anne-Marie Proulx, Sales Representatives, Woodstock office
The time is now. Interest rates will go up, and the rebound is already underway - get in while you can! Ben Sage, Sales Representative- Woodstock office
They need to plan ahead and work with their Realtor and Mortgage Broker to have their credit in order and pre-approval done before starting to look. It makes the whole home buying process so much smoother and prevents dissapointment. Laura Barker, Sales Representative
I want first time home buyers to know that buying a house is NOT a scary experience and that your Realtor will make it painless and fun! That's what we are here for. Use us. Trust us. Move in with a smile on your face. Sonia Christof, Sales Representative, Stratford office
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
What key thing do you want first time home buyers to know right now?
Today is the best day to buy. Houses are more affordable today than 5 years ago. Interest is at historical lows and buyers are in the driver's seat. Buy today as tomorrow it will change. Jamie Woodend, Sales Representative, Stratford office
Home buyers should know how the process works and that we will be with them every step of the way and beyond. Jason and Anne-Marie Proulx, Sales Representatives, Woodstock office
The time is now. Interest rates will go up, and the rebound is already underway - get in while you can! Ben Sage, Sales Representative- Woodstock office
They need to plan ahead and work with their Realtor and Mortgage Broker to have their credit in order and pre-approval done before starting to look. It makes the whole home buying process so much smoother and prevents dissapointment. Laura Barker, Sales Representative
I want first time home buyers to know that buying a house is NOT a scary experience and that your Realtor will make it painless and fun! That's what we are here for. Use us. Trust us. Move in with a smile on your face. Sonia Christof, Sales Representative, Stratford office
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Credit Scores and You
Credit Scores and You
Every ones knows they have a credit score. But few people know how it is made up. Below are the five areas that make up your credit score. The percentage give are just an approximation, not hard facts. You will find with credit, it is affected by how you manage your money, but it is very complicated.
*Payment history (35%)-Aside from extreme events, like bankruptcy or tax liens, late payments have the greatest negative impact on your score. Recency and frequency of late payments count too. In other words, even though a 60-day late payment is not as risky as a 90-day late payment in and of itself, a 60-day late payment made just a month ago will count more than a 90-day late payment from five years ago.
*Outstanding balances (30%)-Evaluation of your total balances in relation to your total available credit on revolving accounts is one of the most important factors in the FICO score. Owing a great deal of money on many accounts or "maxing out" on various credit cards can indicate that a person is overextended, and is more likely to make some payments late or not at all.
*Length of credit history (15%)-Your score takes into account how long your credit accounts have been established in general, how long specific credit accounts have been established, and how long it has been since you used certain accounts.
*New Credit (10%)-Research shows that opening several credit accounts in a short period of time does represent greater risk-especially for people who do not have a long-established credit history. Multiple requests will reduce your score because it looks like you are either trying to get a high amount of credit (possibly because of a cash flow problem) or that you are being rejected by lenders and having to apply elsewhere.
*Types of credit (10%)-The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Your score takes into account what kinds of credit accounts you have, and how many of each. The score also looks at the total number of accounts you have.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Every ones knows they have a credit score. But few people know how it is made up. Below are the five areas that make up your credit score. The percentage give are just an approximation, not hard facts. You will find with credit, it is affected by how you manage your money, but it is very complicated.
*Payment history (35%)-Aside from extreme events, like bankruptcy or tax liens, late payments have the greatest negative impact on your score. Recency and frequency of late payments count too. In other words, even though a 60-day late payment is not as risky as a 90-day late payment in and of itself, a 60-day late payment made just a month ago will count more than a 90-day late payment from five years ago.
*Outstanding balances (30%)-Evaluation of your total balances in relation to your total available credit on revolving accounts is one of the most important factors in the FICO score. Owing a great deal of money on many accounts or "maxing out" on various credit cards can indicate that a person is overextended, and is more likely to make some payments late or not at all.
*Length of credit history (15%)-Your score takes into account how long your credit accounts have been established in general, how long specific credit accounts have been established, and how long it has been since you used certain accounts.
*New Credit (10%)-Research shows that opening several credit accounts in a short period of time does represent greater risk-especially for people who do not have a long-established credit history. Multiple requests will reduce your score because it looks like you are either trying to get a high amount of credit (possibly because of a cash flow problem) or that you are being rejected by lenders and having to apply elsewhere.
*Types of credit (10%)-The score will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. Your score takes into account what kinds of credit accounts you have, and how many of each. The score also looks at the total number of accounts you have.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Want to make thousands of dollars in Real Estate? Flip houses
Want to make thousands of dollars in Real Estate? Flip houses. Want to lose thousands of dollars in Real Estate? Flip houses.
Reality TV makes it look so enticing. Find a diamond in the rough, polish it up and re-sell it. Part of the challenge is finding and knowing what is a diamond in the rough. Another important part is the money side. Knowing what to spend and where it will give the best return. In other words it must pay after ALL the expenses are figured in.
Let’s say you find your diamond for $150,000, and you figure it needs a new kitchen, 2 updated baths, some new flooring, and painting. You get your contractors bids in and the reno’s comes to $30,000. You go ahead and complete the work and actually come in on budget (not gonna happen) so your investment is $180,000.
You call in your friendly neighbourhood real estate rep (that would be me) to get his opinion on the value of homes in the area that are in excellent condition, because after your reno work, yours is perfect. The new value you are told is $210,000. Wahoo you just made $30,000 for 3 months works.
Uh – no you didn’t. You need to figure a selling time of 4 to 6 months. Sure it may sell faster, but you better be ready if it doesn’t. You need to figure in carrying costs while it sells. So if it takes 5 months to sell that’s another $5,000 out of your profit. Real Estate fees, legal costs, land transfer tax (on your purchase price), maybe heat if it is a winter project, and property taxes and another $15,000 is gone. So you are left with $10,000 for all of your hard work.
Still it is not a bad return. But you MUST control your costs. You can see from the figures above if anything goes over budget you lose money. So as I said at the start, want to make thousands of dollars in Real Estate? Flip houses. Want to lose thousands of dollars in Real Estate? Flip houses.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Reality TV makes it look so enticing. Find a diamond in the rough, polish it up and re-sell it. Part of the challenge is finding and knowing what is a diamond in the rough. Another important part is the money side. Knowing what to spend and where it will give the best return. In other words it must pay after ALL the expenses are figured in.
Let’s say you find your diamond for $150,000, and you figure it needs a new kitchen, 2 updated baths, some new flooring, and painting. You get your contractors bids in and the reno’s comes to $30,000. You go ahead and complete the work and actually come in on budget (not gonna happen) so your investment is $180,000.
You call in your friendly neighbourhood real estate rep (that would be me) to get his opinion on the value of homes in the area that are in excellent condition, because after your reno work, yours is perfect. The new value you are told is $210,000. Wahoo you just made $30,000 for 3 months works.
Uh – no you didn’t. You need to figure a selling time of 4 to 6 months. Sure it may sell faster, but you better be ready if it doesn’t. You need to figure in carrying costs while it sells. So if it takes 5 months to sell that’s another $5,000 out of your profit. Real Estate fees, legal costs, land transfer tax (on your purchase price), maybe heat if it is a winter project, and property taxes and another $15,000 is gone. So you are left with $10,000 for all of your hard work.
Still it is not a bad return. But you MUST control your costs. You can see from the figures above if anything goes over budget you lose money. So as I said at the start, want to make thousands of dollars in Real Estate? Flip houses. Want to lose thousands of dollars in Real Estate? Flip houses.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
DIY Reno Shows
I love home renovation and home flipping shows. It's fun to watch "Joe and Mary Homeowner" with limited skills transform their homes into works of art that should grace the pages of Home & Garden magazine. The home flipping shows where they turn a dump into a vast fortune pocketing 10's of thousand of dollars on a simple flip.
Unfortunately in the real world these shows sometimes do more harm than good. The general public gets the impression that if they spend $10,000 on a renovation their house is now worth $20,000 more. In fact very few renovations return a dollar for a dollar on your investment. Some return nothing.
I'll give you two examples. A new roof and a new kitchen. You spend $5,000 on a new roof does your home value increase by the same amount? Not likely as people expect a home to have a good roof. A poor roof certainly removes value but a good roof doesn't give you a monetary return, but it does make your house more competitives on the market.
A new kitchen on the other hand, will usually return close to 100% with a couple conditions. The workman ship must be good using quality products. Going to the lumber yard and picking out a cheap pressboard kitchen cabinets may not return your investment, but a nice mid-grade likely will. Buyers aren't fooled by cheap shaudy work.
As for flipping, it is not for the faint of heart. It is tremdous amount of hard work. It is far easier to lose money than to make money. Remember the shows you see on TV have a special feature you don't have - the delete button.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Luxury housing sales edge higher
Luxury housing sales edge higher
A recent news release from Remax indicates more good news for real estate in Ontario. Upper end housing is starting to move again. But what does this mean to you if you don’t own a high end home? Traditionally high end homes are the last to start selling after a recession, so if they are starting to move, it is a sign of good things for the whole market.
First time buyer type homes have been selling very well for quite a while, in fact first time buyers have been driving the market for the past year. Now with higher end resale homes selling, it appears the whole market is recovering very nicely.
Read the report here.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
A recent news release from Remax indicates more good news for real estate in Ontario. Upper end housing is starting to move again. But what does this mean to you if you don’t own a high end home? Traditionally high end homes are the last to start selling after a recession, so if they are starting to move, it is a sign of good things for the whole market.
First time buyer type homes have been selling very well for quite a while, in fact first time buyers have been driving the market for the past year. Now with higher end resale homes selling, it appears the whole market is recovering very nicely.
Read the report here.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Preventing Contractor Fraud
Preventing Contractor Fraud.
The federal government’s Home Renovation Tax Credit has been a great success. Many homeowners are now taking advantage by remodeling their homes. Windows, doors, heating systems and insulation are the most popular reno’s being carried out. It is a good time to cover an important issue like hiring the right contractor to do your work. Most contractors are honest, hardworking people, but unfortunately not all keep business above board. If you are considering hiring a contractor there are some things to watch out for to help prevent contractor fraud.
1. The contractor wants all of the money up front. Never pay before the job is finished. You want to be able to get them to come back to correct any mistakes and complete the job to your satisfaction. There is no incentive for them to do the work if they have already received payment.
2. Insist on a written estimate and receipts.
3. They will only accept cash. If they will not take a cheque or credit cards, they likely do not want the money to be traced. A variety of payment options should be available. A legitimate company will be claiming their income with the government.
4. Ask to see proof of Worker Compensation coverage. You can be held liable if someone gets hurt without this coverage.
5. If they are soliciting door to door, this should cause you to ask questions. A business that is reliable and does good work is usually kept busy just by word of mouth.
6. They offer especially low rates because your house has been chosen as a "demonstration" project.
7. The contractor will not provide an address.
8. You only get a special low price if you sign the contract today.
9. They will not provide references. Always ask for references and contact a couple of them and always get a couple of quotes for any work or repair work. Don't pay for repairs that are not needed.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
A Great Video on Home Staging
A Great Video on Home Staging
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Mortgage Broker vs Bank
Mortgage Broker vs Bank
When it is time for a new mortgage, or maybe time to replace an existing one, should you go to a bank or use a mortgage broker?
Canadian banks (and Credit Unions) are rock solid financial institutions. They offer good products at good rates. Each bank has their own individual requirements for approval, although it my not seem that way when shopping for a mortgage, but each bank does look at things in their own way.
The issue for you the consumer is if you have dealt with a bank on other matters for years and now need a mortgage but don’t fit your banks criteria you are out of luck.
It wasn’t that many years ago the only people who used mortgage brokers were those who credit was poor. Those days are long gone. Mortgage brokers main advantage is they deal with dozen of different financial institutions for their mortgages. They use banks from different areas of the county, insurance companies, trust companies amongst other to secure you the best deal.
In most cases the banks pays them a fee for your business so their services cost you nothing. In cases where your credit is not good, mortgage brokers can really help here as well. Most banks only have mortgage products for the A list clients. Mortgage brokers can help those with on B and C list.
When looking for a mortgage, check out all your sources, not just the traditional ones. Talk to a mortgage broker and your bank, than decide which works better for you.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
When it is time for a new mortgage, or maybe time to replace an existing one, should you go to a bank or use a mortgage broker?
Canadian banks (and Credit Unions) are rock solid financial institutions. They offer good products at good rates. Each bank has their own individual requirements for approval, although it my not seem that way when shopping for a mortgage, but each bank does look at things in their own way.
The issue for you the consumer is if you have dealt with a bank on other matters for years and now need a mortgage but don’t fit your banks criteria you are out of luck.
It wasn’t that many years ago the only people who used mortgage brokers were those who credit was poor. Those days are long gone. Mortgage brokers main advantage is they deal with dozen of different financial institutions for their mortgages. They use banks from different areas of the county, insurance companies, trust companies amongst other to secure you the best deal.
In most cases the banks pays them a fee for your business so their services cost you nothing. In cases where your credit is not good, mortgage brokers can really help here as well. Most banks only have mortgage products for the A list clients. Mortgage brokers can help those with on B and C list.
When looking for a mortgage, check out all your sources, not just the traditional ones. Talk to a mortgage broker and your bank, than decide which works better for you.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
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