INSIDER WAYNE COCHRANE’S REAL ESTATE

JUNE 2013

Your Neighbourhood Real Estate Professional

Wayne Cochrane...www.mooving.ca

Inside this Issue:

Selling Your Home From Afar

How Renovations Impact Your Home Insurance

Establish What You Own With A Land Survey

What To Look For When Buying Real Estate

A Debt Free Life

What Do Young Canadians Want? Home Ownership But It’s Getting Tougher

It might not seem like the most ideal situation but sometimes it's the way it goes. Selling your home when you have already relocated, perhaps even to another state, can seem very risky. But if you've selected expert industry professionals to help you through the process, then you'll find it can be almost the same as selling your home while you're still in your house.

When selling your home, whether you're still in the house or not, the most important thing you can do is get sound advice from experts in the industry including lawyers, tax accounts, real estate agents, and mortgage brokers. The more knowledge you have the better the transaction will go. Make a strong effort to discuss your plans to move out of the house before you sell it with these professionals. They can advise you of any particular legal and tax concerns with the sale of your home.

If your home has been rented for a long time and you're finally opting to sell, make sure you inform your tenant properly and with plenty of time for your tenant to make other living arrangements. Also, it's likely you'll need to do some repairs and general maintenance so be sure to budget time and money for those items that need work. While it may not be the most appealing, traveling back to your rental during a week-long vacation break or a long weekend could provide you time to handle important maintenance issues.

It'll also give you an opportunity to determine how soon you can put your home on the market after having rented it for an extended period of time.

Another great way to keep close tabs on your home for sale from afar is to have a relative in the area or good friend drop in to visit the home and check to make sure things are in good order. Of course, your agent will be there to do this as well as showing the property but it doesn't hurt to have another person helping out.

Once the home is vacant, it's important to give it a lived-in feel. So make sure you have an automatic lights and a working security system. These two items can significantly cutdown the chances of your home getting broken into or vandalized.

Remember that selling your home from near or far is about getting potential buyers to see it. These days that means creating not only hard-copy flyers but also a stream of steady posts of high-quality images and videos to social media sites. There are many places to feature your home, both in personal and business social media sites. Make use of all of them. The more you get the word out (and pictures and video), the greater the chance you have of selling your home quickly.

Selling Your Home From Afar Written by Phoebe Chungchua

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destroyed. "This amount is called the Condominiums and

Townhouses

on the Halifax Common

98% SOLD

JUNE ISSUE

·

Staying in close communication with your team of experts who are helping sell your home is vital. You can get comps and follow market trends to assess if your home is priced correctly for a fast and efficient sale. Also stay up on the local news. Being an informed seller will keep you in the best position to make important and quick decisions when the time comes.

Written by Phoebe Chungchua

Woody Allen once said: "There are worse things in life than death. Have you ever spent an evening with an insurance salesman?"

But if you are planning a renovation to your home and don't take the time to speak to your insurance broker, you could be making a big mistake. During and after a renovation, your current policy may not cover your home and contents if something bad happens.

"Before you pick up a hammer or drill, it's important to understand and learn more about the insurance implications of upgrading your home," says Dave Minor, vice-president at TD Insurance. "While being handy around the home is convenient for upgrades such as painting or installing crown moulding, more challenging projects like tackling the electrical work yourself could actually invalidate your insurance policy. Speaking with your insurance provider can be a quick way to help clarify the unknown."

The Canadian Home Builders' Association (CHBA) - Alberta chapter says that generally, a homeowner's policy allows for minor repairs and renovations without jeopardizing coverage. However, if you are doing the renovation work yourself, or acting as your own general contractor, you may need to arrange for additional coverage because some policies have a standard exclusion related to professional liability. You may not be covered if someone is injured on your property.

If you are hiring a contractor, ask them for proof of liability insurance. Check out the limit and extension of the coverage and the date the policy expires, advises CHBA. Then ask your insurance broker to make sure that between the contractor's insurance and your policy, you are well covered.

"Upgrades requiring extensive work, such as adding an extension to your home, may require you to change your entire policy to a building under construction," says Minor. "If you are not living in your home during renovations, it becomes an easier target for thieves and undetected water damage, which is why your insurer may require you to secure a vacancy permit if you move out for more than a month."

CHBA says you should find out whose insurance - yours or your contractor's - covers the theft of building materials from your property.

f you must remove your belongings and put them in storage, make sure they are still covered by your policy.

During the renovation, there may be complications that delay the work and could impact insurance coverage. If something unexpected is uncovered - such as a hazardous material that must be removed - that should also be reported to your broker.

The Insurance Bureau of Canada says that all homeowners should insure their houses according to what it would cost to rebuild the house and replace its contents in the event it is

How Renovations Impact Your Home Insurance Written by Jim Adair

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Give me a call...

Wayne Cochrane EXIT Realty Metro

wayne@mooving.ca (902) 830-4761

WAYNE COCHRANE’S REAL ESTATE INSIDER

destroyed. "This amount is called the replacement cost, and is different from the market value of your home and even from your tax assessment value," says the IBC. An accurate assessment of your home's replacement cost is essential to making sure you have enough coverage.

The IBC has a home assessment checklist on its website to help you determine the replacement cost.

Ah, you say, but why would I want to tell my insurance broker that my house is more valuable after renovations? Won't it just cost more money to insure it?

It may, but there are also renovations that can reduce your premiums. "Simple renovations like installing security devices, such as alarm systems and deadbolts, or fixing your weathered roof may decrease your premiums," says Minor. Upgrading your electrical system or plumbing could also result in some savings.

However, chances are that you have increased the value of your home, so you need to be prepared in case something happens to it. Another consideration is if you have changed the way you use the home, such as adding a basement apartment or a separate addition to rent out. If your policy doesn't reflect these changes, you may not be covered at all.

"Make sure you also understand what is not covered," says CHBA. "Insurance is not a warranty for the work being done on your home, and it does not protect against shoddy workmanship. However, a written contract and the renovator's commitment to customer satisfaction will."

Written by Jim Adair

Establish What You Own With A Land Survey Written by PJ Wade

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JUNE ISSUE

The spotlight is usually on improvements when shopping for and buying real estate. That's "improvements" in the legal sense which refers to buildings, garages, trees and anything added on or under the land itself. With the emphasis on the structure and interior of buildings, the land may only receive cursory "what I see, is what I get" attention. This is where problems arise.

"Just by looking at the land, you don't really know anything," says Brian Munday, Edmonton-based Executive Director of the Alberta Land Surveyors' Association. "We tend to make a lot of assumptions. Yes, that fence is on the property line and that brush is cleared to the property line … . What is very common is for an easement to run across the property."

asements are restrictions on title that dictate what the property owner can and cannot do with the land. For instance, municipal and utility easements run across the front and/or rear of most properties limiting the use of these areas. A large fenced backyard may seem like an ideal setting for an inground pool, but only a survey can ensure that is true.

The only way to accurately and legally establish property boundaries and use restrictions is through a land survey by an accredited land surveyor.

Munday reports that the City of Edmonton is cracking down on property owners with land along the North Saskatchewan River who have extended their fences to corral city-owned shore land. Some have added swimming pools and out buildings to property that may have looked like an extension of their land, but isn't. Possession and use of land that you don't own will not lead to ownership in spite of all you hear about squatters' rights or adverse possession.

Boundary issues, as well as right of way limitations, often lead to neighbour disputes and to hitches in real estate development. The more complex the land use, particularly in industrial and

commercial development, the more complex the ownership issues. Land surveyors are hired by land owners to establish what can and can't be done with the property, so problems do not arise later.

"Land surveyors hold a special kind of role as a professional," said Munday. "In other professions, the doctor advocates for the patient, the lawyer advocates for the client. A land surveyor holds a different kind of perspective. Yes, they have a client, but land surveyors are there to be sure the boundaries are established, without any partiality, to protect the public."

This means, instead of having to settle for what you get, you should get what you pay for. The property should be valued and purchased based on how it can be used. Restrictions on use may lower value. Accurately established boundaries may increase or decrease value.

Munday tells the story of a property owner who called ALSA, frantic because the next-door neighbour had just thanked this homeowner for the C$11,000 in landscaping that had been added to the neighbour's real estate. Existing fences had led the caller to believe a large expanse of the neighbour's property was owned by the caller. This false impression was not corrected because the homeowner said that with C$11,000 going into landscaping there was no money for a survey.

"The average person comes in contact with a land surveyor when they buy or sell a house," said Munday, who explained that a land survey is not required by law when real estate changes hands. "The important thing is when spending all that money, you want to make sure all of that shed, house, garage...is on your property."

Munday cautions there are some people armed with a GPS who think they can stand-in for a surveyor. Measuring distances is the "easy" part. University-

educated surveyors consider GPS another useful tool, but they know where to measure from and where to measure to—that's the skill and knowledge that matter. The goal is not merely to measure, but to recreate what the original surveyor did, perhaps a 100 years ago, and reveal true boundaries.

Cost will be related to factors including the size of the property, complexity of survey detail required and how quickly the survey is needed. Verifying the location of one corner of a residential lot would be less expensive than surveying a rural house with acreage. Contact two or three land surveyors before you hire. If a survey exists, locating that surveyor may cut costs for an updated version.

"Land surveying is a little bit like playing Sherlock Holmes to solve a mystery, not of who done it, but where was it," explained Munday.

Written by PJ Wade

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What is the Shortest Complete Sentence in

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Word Scramble:

NPOE ESHUO

Go to www.mooving.ca - ‘About Wayne’ and click on ‘Monthly Newsletter Trivia’ for the answers.

Brain TeasersBrain TeasersBrain TeasersBrain Teasers

What To Look For When Buying Real Estate Written by Phoebe Chungchua

The first thing that most of us think of is the adage... "location, location, location". While that is certainly very critical, there are many other things to consider when buying real estate. Here are some universal guidelines.

• How long you intend to stay in a home. This is an important question to consider because moving is quite expensive. If you're in a temporary job and may soon be relocating to another city or even state, renting rather than owning might be a better option.

• While none of us entirely knows how our future will play out, understanding how long you expect to stay in your home allows you the chance to decide how large a home you want. If you're a young couple, a home that is able to grow with you might be appealing.

• Whether you're buying a home to live in or as a rental, the next series of tips can help in either circumstance. What makes a home more comfortable to its owners can also make it more attractive to renters.

• Job market. It's always a good idea to check the U.S. Bureau of Labor Statistics to see how the employment is in an area that you are considering purchasing a home. Areas with lower unemployment, of course, are most attractive. The greater the demand for jobs in an area, the more likely home prices are to go up.

• Check area vacancies. This may not seem that important if you're planning to live in the home but actually this is a good thing to know even if you don't rent your home. If there are lots of vacancies compared to surrounding areas, there could be a slowing in the market. If you're planning to rent the home, you'll want to make sure that you have enough savings to cover expenses any time when your home sits vacant. If the market is slowing, there could be a period of several months before you get a quality tenant in place. Being prepared will ease the stress.

• Visit the local police. Crime in an area isn't always detectable right away from a few visits to your potential home. Do a little digging. Ask questions. Investigate the neighborhood. Some areas may look okay but may have a high crime rate. It's best to understand the neighborhood you might soon call home.

• Natural disasters. Believe it or not, some people like a home so much that they disregard the natural disasters in the area. This isn't to say that buyers should say, "Well, I can't buy a home in California because they have occasional earthquakes." Rather, some buyers are willing to gamble big time. For instance, they are willing to buy homes that are located on unstable cliffs where the cliffs are eroding year after year. Insurance... if you can get it... will certainly be higher. Natural disaster-prone areas such as flood zones may require additional insurance and a strong stomach to endure the

stress.

• Ultimately, what to look for when buying real estate is about considering the things that will matter not just in this moment but in the years to come. Having a good strong foundation beneath your home and a safe neighborhood are key components to creating a happy homeownership and good investment.

Written by Phoebe Chongchua

It’s a sorry state of affairs when personal finances punctuated by large-scale debt are the norm instead of the exception in our society. It may not be your fault, however.

The average college students graduates with nearly $30,000 in debt. Buy your first car and that tacks on another $20,000. Add in the average household credit card debt and you’re looking at around $60,000 total in debt. That’s a lot.

This debt-load may end up costing you your dream house. Lenders want buyers who have excellent credit scores. A large amount of debt can reduce your credit score. A large debt-to-income ratio can also be quite damaging.

Living a debt-free lifestyle is possible and there’s no better time to start than now.

Create a budget. Reveal your true spending habits by tracking your money for a month. How much is spent on food, bills, dining out, travel, etc? Many households are surprised to find how much miscellaneous spending is taking place.

Reduce spending. You know where you can make cuts. These cuts might hurt a bit at first, but stick to your guns and funnel that extra money into savings and paying off existing debt.

Eat at home. The average household in the U.S. spends $100-$200 a month on dining at restaurants. That translates to as much as $2,400 a year. Funnel this savings into paying off existing-debt and building up a savings fund so debt scenarios don’t happen again.

Decipher wants versus needs. With readily available credit it’s too easy to buy items we can’t really afford that we don’t need. A need should be defined as something related to health, food, or a roof over your head. Wants are things like new clothes, the latest DVD release,

or that big blow out anniversary vacation.

No Impulsive Shopping. "It’s 80% off. Sale Ends Today" You’re still paying 20% on an item you never considered buying. Step back and ask yourself, "Do I need this item. Will I be sorry next week if I didn’t buy it." Impulse buys can be big or small. The rule applies across the board. Reduce impulsive shopping by working from a list.

Refinance for lower monthly payments. Interest rates are at historic lows. It may be well worth the cost of refinancing in order to save on monthly payments. For large loans, such as home mortgages, the saving may be hundreds of dollars a month.

Make more than the minimum payment. Don’t fall victim to debt’s worst trap: paying only the minimum. Let’s say you have $50,000 in credit card debt (yikes!). It would take 42 years of making minimum payments to pay off this debt and you will have paid way over $50,000 in interest by the time you’re done. This means you should make payments directly towards the principal of loans.

Make payments directly to the principal of loans. You may have to call your lender and let them know specifically that you’re paying down principal. Otherwise the extra money you lay down may actually just go towards monthly payments.

Getting out of debt is a noble and worthy cause. True freedom comes when your monthly expenses zero. You can then make big decisions on what job to have, where to live, and how to spend your hard earned cash. Let the real living begin!

By Reatly Times Staff

A Debt Free Life By The Realty Times Staff

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JUNE ISSUE

With Canada's housing market levelling off after more than a decade of unprecedented growth, lately there's been a lot of research about what young Canadians think about buying a home. Is it as important to them as it was for their parents, the baby boom generation?

The answer is yes. Several surveys show that members of Generation Y (born between 1980 and 1994) are just as interested in buying a home as their parents were.

However, the housing market in Canada has seen significant changes in the last several years, and 59 per cent of first-time buyers said they wish they had bought their first home five years ago, according to a BMO survey.

TD Canada Trust research says there are three major obstacles facing young first-time buyers today: saving a large enough down payment; dealing with high house prices; and not making enough money to afford monthly mortgage payments.

A Leger Marketing survey conducted for Royal LePage found that 72 per cent of Generation Y respondents agreed with the statement, "I desire to own a property in my lifetime, but I am pessimistic about by ability to own a home because of the current house price affordability.

The survey also found that 45 per cent of young Canadians surveyed said recent changes to mortgage qualification rules will affect their ability to purchase a home.

"A shorter amortization is the most responsible approach to home financing; it's something BMO has been encouraging for years, as it means becoming debt-free sooner," says Laura Parsons, BMO mortgage expert.

Farhaneh Haque, director, mortgage

advice at TD Canada Trust says, "While young people may be anxious to start building equity rather than paying rent, waiting until you have a larger down payment can save you thousands of dollars over the life of your mortgage."

He says first-time buyers should also consider using the government's Home Buyer's Plan, which allows buyers to borrow up to $25,000 from their registered retirement savings plan to help with a down payment.

A Re/Max survey found that four out of 10 purchasers between the ages of 18 and 34 have a down payment of 20 per cent or more.

"Today's real estate consumer is more experienced and financially prudent than in the past," says Elton Ash, regional executive vice-president for Re/Max of Western Canada. "Recent global events – in concert with new mortgage finance rules – have fuelled a more conservative mindset that will serve Canadians well moving forward. It seems the lessons of excess are being heeded."

However, BMO found that 37 per cent of first-time buyers admitted they might be willing to spend more than their budget if they found their dream home.

"It's essential that Canadians keep their emotions in check when shopping for a home and avoid over-extending themselves as a result of a bidding war or by purchasing a home they cannot realistically afford," says Parsons. She suggests working with a mortgage expert prior to house-hunting to set your price range.

"For what you are paying in rent, you may be able to own your home, so why not take a mortgage for a test run?" says Haque. "Crunch the numbers with a mortgage specialist and then test whether you can manage the costs. Set aside your expected

What Do Young Canadians Want? Home Ownership But It’s

Getting Tougher Written by Jim Adair

Page 7

mortgage payments plus all other home expenses for a few months, less your current rent, and see how you do. Over this time, if you find that you are stretched too thin or run out of money before the end of the month, look for ways to cut back on other expenses and keep saving."

The BMO survey says 63 per cent of first-timers have made cutbacks to their lifestyle to help save for a home. Twenty-seven per cent are relying on their parents or other family members to help them out.

First-time buyers expect to be mortgage-free in 20 years on average, says BMO. Most will chose a fixed-rate mortgage over a variable-rate mortgage.

All the surveys agree that young Canadians believe home ownership is a sound investment. But the traditional profile of first-time buyers as young, married couples is changing.

Re/Max says singles are becoming a larger share of the first-time market, particularly single women.

In the U.S., a survey by Coldwell Banker says that one in four married couples between the ages of 18 and 34 purchased their first home together before their wedding date, compared to 14 per cent of those ages 45 and older.

Re/Max says the 18-34 cohort represents 37 per cent of people who are planning to buy a home within the next two years. Written by Jim Adair

WAYNE COCHRANE’S REAL ESTATE INSIDER

WAYNE COCHRANE’S REAL ESTATE INSIDER

Note: This is not intended to solicit clients currently under contract.

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

Page 8

Wayne Cochrane Real Estate Professional

902-830-4761 wayne@mooving.ca

More homes listed and sold by Wayne - view these homes at:

www.moov i n g . c a

unless noted otherwise

List Today and EXIT Tomorrow!

252 Springfield Lake Rd

Halifax

2362 June Street

Highland Park

45 Haverstock Drive 250 Glen Arbour Way

291 St. George Blvd.

Kingswood

72 Attenborough Crt.

$538,900

Halifax

Middle Sackville Kingswood North

12 Tradewind Court

Kingswood

247 St. George Bvld.

$844,700

$799,800

599,800

$424,900

$239,800

$299,800

$384,800

$ 415,000

$324,800

Glen Arbour