Style & Staging Tip #10

Less is More
I'm sure I've stressed this in other posts, but the bottom line is: Let your house show when you sell it. Instead of jamming each room with too much furniture (and I for one am often guilty of this) make sure that each rooms special or unique characteristics can shine through. Sometimes that translates into removing a third of what's there -- sometimes it means choosing smaller pieces of furniture, ones that are more to scale with the size of the room; sometimes it means getting rid of clashing pattern and designs and choosing neutral slipcovers for chairs or sofas. Also, a big pet peeve, don't jam furniture against the walls in the house -- try and pull pieces away from the walls (at least 6 inches if possible). Don't worry, this will not make the room look smaller, it will create a more unified look that's inviting and cozy to boot. Try it, and stay tuned for more styling tips.

Help for home buyers & owners in Budget '09

Among many other things, the new federal budget contains a handful of benefits for home buyers and existing home owners. Here are 3 that I think will have a direct impact on the real estate market (credits below):

The withdrawal limit under the Home Buyers’ Plan increases to $25,000 from $20,000 in respect of withdrawals made after January 27, 2009. This is a straight increase. All other conditions remain the same. This will help first time home buyers jump into the market a little sooner. The trade off is that first time homebuyers can put more down to purchase a home against potentially withdrawing money from an RRSP and realizing any losses due to recent underperformance of most marketable investments.

A new First-Time Home Buyers’ Tax Credit is being introduced which is based on an amount of $5,000 for first time home buyers who acquire a qualifying home after January 27, 2009. The non-refundable tax credit is calculated by reference to the lowest personal income tax rate for the year. The credit will also be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit. This credit will amount to a maximum of $750 towards closing costs for a home purchase. This comes off of any income taxes owing but cannot add to any refund (i.e. if you owe $500 in taxes after completing your return, this can reduce that amount owing to $0 and not result in a refund of $250) Only applicable to first time home buyers.

A new Home Renovation Tax Credit (HRTC) is being introduced. The HRTC is a 15% non-refundable tax credit for eligible expenditures made in respect of eligible dwellings which would generally be considered to be an individual’s principal residence. Eligible expenditures include labour and building materials for a renovation that is of an enduring nature. The HRTC applies to expenditures, in excess of $1,000 but not more than $10,000, made after January 27, 2009 and before February 1, 2010 pursuant to an agreement entered into after January 27, 2009. Renovations (which can be on a condo, second home, cottage etc and applicable to most trades and products) done before Feb 1st of next year is eligible for up to $1350 in tax credits. Has to be done by Feb1st next year ,you have to show receipts for all the work, renovations have to be over $1000 and you earn the tax credits over this amount and up to $10000 (which amounts to a max of $1350 in total). Refi’s for renovations and purchase plus improvements are positively impacted.

(CREDITS: Dianne Chafe (Orianna Financial), Ministry of Finance, The Globe and Mail, Deloitte and Touche, the Hamilton Spectator.)

Of these, I think that the Home Renovation Tax Credit is going to have the most impact, simply because there are more existing home owners than there will be buyers to take advantage of the other 2 items. I used to work in the forest industry as a lumber trader. Although we were sensitive to the overall economy, we knew that a decline in new home construction (which is typical in a recession) was always off-set by an increase in the do-it-yourself (DIY) market. Basically, when people can't afford to move, they renovate! Keep in mind, too, that any home improvements that you do this year for your own benefit ('enjoyment') will add value for when you want to sell in the future, so take advantage of it if you can!

The other two items, combined with the modest tax cuts proposed, will help with over-all affordability, which is more good news. Super-low interest rates and improving home affordability will help the real estate market firm up sooner rather than later. If you are a buyer - first time or move-up - don't sit on the sidelines for much longer, or you'll miss your chance! Call us today to get started!

Low prices, low rates make ‘perfect storm’ for buyers

The Toronto real estate market is a buyers’ market, and will probably remain so through the first half of 2009. That, combined with near-record low interest rates (which are expected to drop even more in the next couple of months), has created a buying opportunity like few others in the last 30 years – a ‘perfect storm’, if you will.

Keep in mind that when prices declined in previous cycles, interest rates were much higher than they are today, job losses were severe, and inflation was always a threat. It's quite different this time. Also, the basic driver of the Toronto real estate market has not been speculation; it has been first time buyers. Low interest rates and a generally healthy economy over the last decade have allowed more people to buy rather than rent. Now that the economy is slowing, the Bank of Canada has lowered rates even more, which will spur growth across the economy, and help even more buyers get into the market. That’s why I keep saying that the dip in Toronto real estate will be short-lived: a bit of stability in the economy (and perhaps a little 'stimulus'), coupled with super-low interest rates will re-launch the market.

By the way, anybody worried about the ‘investment’ aspect of Toronto real estate can just think about this: the TSX dropped 35% in 2008; the price of an average house in Toronto went UP about 5%! Even with the decline of recent months – heck, even if it ends up being 10-15 % – real estate is still a much better investment than any other option I can think of.

Call us today to make your move into the Toronto Real Estate market!

We Love First Time Buyers!

If you are a first-time buyer looking for a Realtor to help you find a home, you may have noticed that a lot of real estate agents don’t pay much attention to first-timers. That’s because a lot of them think that you will be a lot of work, and you won’t buy for another 6 months, a year or even 2 years! Well, we have a totally different view of that. We enjoy working with first-timers and don't care how long you take to buy. You have an open-mindedness and enthusiasm that brings real energy to the experience – for all of us! That’s why we are so excited about this market – the buyers we are working with finally have a chance to slow down, think about their options and make great purchases without the pressure of a competitive market.

Whether you are brand new to the market, or are ready to jump in and buy, let us guide you through the process and negotiate a great deal for you. And don’t forget to talk to a mortgage broker to get a great rate on your mortgage. We can help you with that, too.

The first half of 2009 is going to be the best buying window of opportunity to that the GTA has seen in almost a decade – and it won’t last long. Call us today and let’s get the ball rolling!

Style & Staging Tip #9

Soft Sell
You only get one chance to WOW buyers. The first impression is everything. Kitchens and bathrooms are often at the top of the Must-Love list for buyers, but restful retreat-worthy bedrooms are also critical. It's actually quite easy to create a soothing bedroom oasis. Invest in new linens -- when in doubt go for the hotel look with crisp neutrals. Make sure the bed is off the floor on some sort of platform and add a bedskirt and pillows for a layered luxurious look. If you don't have a headboard, simply add a screen or paint a huge canvas or even hang curtains behind the bed for a focal point. Remove any clutter, exercise equipment, etc and pair back as much as possible to include a few simple side-tables, a wardrobe if need be and perhaps a vignette of artwork or mirrors on one wall. An oversized neutral rug (you can't go wrong with sisal or seagrass) is also a good way to anchor the bed in a room. If there's a lovely window in the room make sure it's not being blocked and open the curtains to the let sun shine in.

Home Seller Tips

Homes sell in any market. Regardless of overall conditions, each home is judged on its own merits. If you want your home to sell quickly, for a good price and with good terms, you have to properly prepare it - and yourself - for sale. Here are a few tips to get you started.

Getting your self ready: The market has 'corrected' (i.e. declined) from the highs of 2007 and early 2008. There is probably more to come. (The Canadian Real Estate Association is predicting a 3% decline in the national average this year.) To sell your home you have to be realistic about both the price at which you list, and the price at which you may ultimately sell. In short, lower your expections to keep them in line with reality. In a 'buyer's market' sellers can't be too aggressive (which many have been over the last few years). The last thing you want now is to over-price your home and end up sitting on the market for the next 3 months!

Let your agents work for you: With very few exceptions, your Realtor is the expert. Emily and I know how to market your home; we have the knowledge and experience to determine who is a real buyer (as opposed to a tire kicker or low baller); and we know how to deal with other Realtors - which is extra important during difficult negotiations. Everybody knows somebody who wants to advise them - and of course their agent was an idiot, wasn't she? Choose a Realtor (or two) whom you trust, then let us do our job.

Getting your home ready: Home preparation and presentation (together with pricing) are key to a successful sale. Take advantage of Emily's years of experience in the home styling industry and let us help you to get your home ready for sale. The money you spend (cleaning, patching, painting, etc.) is money well spent. It will help capture the interest of potential buyers, and overcome the objections that naturally arise (especially in a soft market). In short, making a good first impression is more important now than ever!

For "Style and Staging" tips, scroll through Emily's previous posts - and stay tuned for more! If you have any questions about market conditions or the home selling process, please feel free to get in touch with us. (Click on the headline above to get to our web site.)

By the way, despite the tough market, we just sold a beautiful home in the Beach for $1.2 million - one of only two million dollar-plus sales in the district in the last 2 months. Call us any time and we'll put our continuous marketing strategy and commitment to success to work for you!

Home Buyer Tips

So, you want to buy a house or condo in this buyers' market? Great idea! ;) For you first-time buyers (and those of you who haven't done this in a while), there's lots that you need to know - not just about the market, but about the process. We share with all of our buyers a fairly comprehensive, custom Home Buyer Guide. We're not talking rocket science here, but almost every purchase or sale has something unique about it. Knowing the basics will help you to prepare yourself for your experience. The following is by no means a comprehensive list; rather, it's sort of a "Top 5" - or better yet, a "First 5" things you should know:

· Be an educated Buyer. Learn as much as you can about the market before you buy. (We help all of our clients with this stage.)
· Be honest and open with your Realtors®. We work for you and can best help you if we have a good understanding of your needs. Once we know your needs, our job is to be the objective medium in the process to ensure your needs and interests are met and protected.
· Get pre-approved for your mortgage as soon as possible. This helps you to determine your budget, and locks in today’s best rate for you.
· Buy the best home you can afford in the best neighborhood you can afford. You are almost always better off with the least expensive home in the area rather than the most expensive. That said, we recommend that you be conservative with your budget.
· There are no perfect homes. Be ready to make compromises and concessions. Know what’s most important to you and ‘give’ on those things that aren’t.

There you have it: five basic principles to get you started on your new home search. Be sure to visit our blog again for more tips - and please do contact us if you want more help! Start at our web site: www.SimonMilberry.com!

Style & Staging Tip #8

Star Light, Star Bright
I know that we are all taking environmental issues a lot more seriously these days, which is fantastic. But. Nobody likes walking into a dark or dingy house. I urge all sellers to invest in good lighting before the house goes on the market. This means a combination of primary and task lighting -- bright potlights or chandeliers, plus a good assortment of floor and table lamps. Make sure all lightbulbs are working! Place floor and table lamps in the darker areas in the house -- especially beside sofas and/or chairs, and beside the bed. If you have an entryway table I love the look of 2 matching table lamps on each end of the table, in addition to the entryway ceiling light. Above the dining room don't be afraid to go dramatic with a big full shade, ornate interesting chandelier, or whatever else suits. I guarantee buyers will both appreciate and notice the difference of a bright, friendly home. If you are even more ambitious, replace any builder-style or boring ceiling fixtures with prettier ones -- you can even choose one great neutral style of fixture and use them throughout for a consistent look.

Style & Staging Tip #7

Mirror Mirror On The Wall
I know placing artwork on walls can be a tricky thing to figure out for many people. One thing I always suggest to clients is to minimalize clusters of pictures in favour of a few bigger canvas's, and to use mirrors. Mirrors are a fantastic way to bounce light around a room (especially if they are positioned close to windows and doors) and to visually enlarge your space. Whether you go round, square or double up on a few of each, mirrors create a visual focal point that every single room should strive for. And the great thing as they are so inexpensive -- especially if you pick them up at yard sales in the spring and summertime. One tip -- don't hang them too high. Hanging a eye level, in most cases, is the best way to go.

Style & Staging Tip #6

Window Treatments

What your windows wear is important to principle rooms in the home. To create a sense of privacy along with a sense of warmth and style, I suggest investing in simple yet well-thought out window treatments before your house hits the market. The shot above showcases the simplicity of window shades, which provide privacy and diffuse the light beautifully. This is a clean, modern way to deal with windows, but there are so many more choices. I am in favour of neutrals for windows if you are unsure -- creamy cottons, linens or canvas curtains never fail. Remember to position the drapery rod closer to the ceiling to create the illusion of height in the room, and if possible double up on panels (2 per side) to create a more luxe look. Lastly, the hem of the curtain should hit the floor much the same way as a mans trouser pant -- don't go too short!

Style & Staging Tip #5

Ugh, What's That Smell?

If there's one thing that can kill the allure (and potential sale) of an otherwise great house, it's an off-putting odour. Whether it's last night's curry, the wet dog, cat litter, stale air, running shoes by the door -- you name it and people WILL notice, and likely be turned off. A heavy duty clean of all surfaces is a good way to defuse any odors, but opening windows, cleaning all the upholstery and finally removing any and all of the culprits may be necessary too. Ask friends to take care of the pooch if possible, refrain from potent cooking, and explore the wide variety of products on the market if all else fails. Be diligent about this, but don't worry, it'll be well worth it when that sweet offer makes it's way to the table sooner than later.

Remember Enron?

Remember Enron? It brought about the end of the financial world as we knew it, didn't it? No? Well, the collapse of Lloyd's of London sure did! No, again? How about 9/11? Or the Savings and Loan scandal? No and no, right? Heck, I'll bet that few folks even remember the Savings and Loan story. It was a real disaster, on the scope of the current situation, but it didn't cause anything like the 'great depression' so many ‘experts' are predicting now. I believe that's due in large part to the fact that the hyperbole usually far outweighs the reality. Things may be bad, but they're not THAT bad!

Of the above-mentioned financial calamities, only the Savings and Loans scandal seems to have contributed to a real recession (in 1990-1991). The rest made for spectacular headlines in the financial media, but didn't have a strong negative impact on the economy or housing market. So why should we fear that this market correction will be so bad? So-called capitalists broke the rules of capitalism, and now the 'invisible hand' is giving them a spanking. Now, for better or worse, governments are taking steps to sooth their aching behinds.

I'm not sure why the media spent almost all of '08 browbeating Canadians into believing in a recession - thus creating a self-fulfilling prophesy of sorts. (Check out this story on Canoe Money: "Media adding to economic woes, experts say" http://money.canoe.ca/News/MediaHold/2009/01/07/7947796-cp.html.) I guess it's because bad news sells. Nonetheless, record-breaking retail shopping in Canada over the holidays clearly shows that millions of Canadians just don't believe that the sky is falling. They must be telling pollsters that they are worried - consumer confidence numbers are very low - but then they're going out and spending like they're NOT worried! Giving the choice between believing words or actions, I'll take actions any day.

The moral of the story is that we shouldn't get caught up in the hype. We'll ge through this slump, just as we always do. Be smart, be careful, but don't miss out on any opportunities that may jump out at you - especially (drum roll please!) in the Toronto real estate market! As surely as the current slow-down will pass, so too will the great prices that we are seeing on houses and condos all across the GTA. Take advantage of this extremely rare opportunity to buy in Toronto. Start by calling us today!

HAPPY NEW YEAR!!

Greetings happy reader! We want to wish everybody a Happy New Year, and wish you all the best for 2009! I'm still working on a motto for this year; how about "Doin' fine in '09!"? I think that sums up our attitude for life, and for our real estate business.

This year real estate is going to be great - better than last year, I can almost guarantee it! The financial markets are perking up a bit (the TSX is back above 9000), and the recent shopping season blew the socks off all the negative talking heads on TV. It seems that the average citizen disagrees with the 'experts'! As soon as the media stops boring us with all of their doom and gloom, watch for the Toronto real estate market to pick up again. If you are a buyer, don't wait! Now is a great time to invest in the Toronto market - especially if you are a 'move up' buyer. You will take a bit of a hit on the house you sell, but you will make up more on the house that you buy.

Just remember this: once the market turns, it will bounce fast, so don't sit on your hands for too long. Most industry experts (also known as Realtors) believe that we will stay in a balanced market for the time being. Balanced is good, but I'm not so sure that it will stay that nice for long. I'm expecting that, once buyers see other buyers step in, the rush will be back on. You heard it here first. ;)

Once again, Happy New Year!!