Family Formation & Housing

For young couples starting families, buying their first home and/or other real estate. Covers mortgages, credit cards, interest rates, children’s education savings plans, joint accounts for couples and the like.

How to add value to your home before selling

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By Emily Roberts

(Sponsored Content)

Over time, the value of your home can be expected to gradually increase in value, unlike most consumer purchases (like cars), which depreciate from the moment they are acquired.

As long as you’re living in the home, this price appreciation is seldom a gain you can pocket, and in fact, your property taxes may rise as a result. But eventually it should be able to be sold at a solid profit.

When you do decide to finally sell, you will want to get as much money for your home as possible. You will want to get a return on your investment and be able to afford your new home. In this article, we are going to give you some ideas on how you can improve the value of your home before selling. Keep reading if you’d like to find out more.

Build an extension

If you have a lot of space on your property, then you might find that adding an extension to the kitchen or the side of your home might actually make a huge difference to the overall value. Think about how much this could cost you and how much more you might be able to make on your house when you are selling it. People love to have extra space but don’t sacrifice a garden completely for a slightly bigger kitchen.

Add Insulation

If your home is not totally insulated, then you are not saving as much money on monthly bills as you could be. Many people forget to insulate their attics and their sheds, which can consume a lot of energy. Not only will you save yourself money on the bills, but you will also save the new buyer in the long run. Make sure to insulate your home and mention it to potential buyers when they are viewing your home.

Add an outdoor building

If you have some extra space in your garden you should think about investing in an outdoor building, which you can learn more about at Armstrong Steel: one of the most renowned providers. The buildings they provide come pre-made and so all you have to do is assemble them. When you have put it together, you can choose to do whatever you want with it. Continue Reading…

Court decision on sold data access means more transparency for home buyers and sellers

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

A seven-year legal battle between the Toronto Real Estate Board (TREB) and Canada’s Competition Tribunal has come to an end, ushering in a new era for Toronto real estate data access.

On August 23rd the Supreme Court of Canada stated it would not hear an appeal from TREB to keep past sold real estate data private, following rulings from both the Tribunal and the Federal Court of Appeal that required it be made available online.

This means TREB’s online brokerage members, such as Zoocasa, are now allowed to display the historical data for individual real estate listings to site users with password-protected accounts. This information includes a home’s original listing price and sale price, its 10-year sales history, and whether it has ever had a terminated listing. Previously, clients could only receive this information once they were under contract with a real estate agent, who could provide it to them over the phone, by fax, or in person.

The move is being widely hailed as a victory, both for those who work in the real estate industry and for prospective buyers and sellers’; but how will it change today’s real estate market?

A boon for Buyers

Perhaps the biggest benefit for buyers will be the improved transparency around home prices. While having access to the data is unlikely to prevent bidding wars, it will mean shoppers will have a better idea of what condos and houses for sale are truly worth before they put in an offer.

It will also decrease price lowballing, a strategy in which sellers list their homes for a much lower amount than they expect to receive. This piques the interest of buyers looking for a great deal, often leading to multiple-offer situations and hyper-inflated prices. It’s an especially common tactic in hot markets, such as on the Toronto or Vancouver MLS, and a constant source of frustration for buyers trying to find homes that are actually within their budgets.

Now, buyers will be able to see what comparable homes are selling for in the same neighbourhood, and whether their desired listing has been priced accurately.

Greater strategy for Sellers

This doesn’t mean sellers will receive the short end of the stick: they’ll now have more information than ever to inform their decision to list. Continue Reading…

Want an affordable neighbourhood with top Schools? Head for the ‘Burbs

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

The mantra for real estate shoppers is typically “location, location, location” – but for those with kids in tow, it might as well be “schools, schools, schools.”

For parents, whether or not a home is close to a highly-ranked educational institution is a top consideration, alongside affordability, number of bedrooms, and parking.

In fact, living within a certain school catchment can significantly impact one’s home value: even homes located across the street from one another that are in different school zones may see that difference reflected on their home listing prices.

EQAO school ranking and home price are especially correlated in high-demand urban centres, such as the City of Toronto, where home buyers pay a premium of hundreds of thousands of dollars to live within their coveted catchment.

For example, in Etobicoke, where the top EQAO-ranked school of Lambton Kingsway Junior Middle School boasts a score of 3.2 (out of 4), home buyers would pay a premium of $821,580 to dwell nearby. In York, that premium is $689,178 to live near Humbercrest Public School (3.1), and $444,183 to be close to CD Farquharson Junior Public School in Scarborough (3.3).

Exploring affordability in the Greater Golden Horseshoe

However, those who wish to live close to a top-ranked school at a more affordable price are wise to head to the suburbs: according to recent data compiled by Zoocasa, the correlation between school ranking and average home price isn’t as strong in surrounding Greater Golden Horseshoe markets.

Consider the city of Hamilton, located just west of Toronto along the shores of Lake Ontario. Also known as “Steeltown” or the “Hammer” for its roots as a steel manufacturing centre, it’s now highly sought for its growing “eds and meds” industry; and the fact that detached Hamilton houses with large lots are relatively inexpensive.

Those looking to live close to the best schools have many options in Hamilton; for example, one of the top-ranked schools, Sacred Heart Separate School (2.9) is located in East Hamilton, where the average home price clocks in at $396,964. In upscale Ancaster, where the average home sells for $838,337, is the similarly-ranked Immaculate Conception Elementary School, illustrating similar education standards are available for buyers regardless of home budget.

Mississauga schools among the best

The City of Mississauga is also a great example of a municipality where good schools and real estate affordability go hand in hand. Continue Reading…

How to pay off your mortgage in 10 years

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By Karren Smith

Special to the Financial Independence Hub

Owning a home without a mortgage is something of a dream for many, and an important step in financial independence. Paying off a mortgage in 10 years can seem like a massive task, but with some simple financial strategies and planning, it’s possible.

While you will need to make some sacrifices, the benefits of owning your home as soon as possible is worth it for many people. By paying off your loan more quickly, you and your family will save thousands of dollars in interest and have more money to put towards the things you love, such as overseas travel, or perhaps a second home for holidays. Owning your house can help your life become freer and more flexible. So how can you escape the shackles of your mortgage and pay off your home in 10 years?

Create a simple plan

Assuming you’re debt free, aside from your mortgage, you can make a simple plan that will help you pay off your home within 10 years. For example, let’s say you have a $300,000 loan at a 5% interest rate. If you have a single income of $95,000, you can pay off your loan in 6-7 years with $2,000 fortnightly payments.

If you’re a couple, with an income of $140,000, you can pay your mortgage off in 5-6 years with $2,600 fortnightly payments.

Of course, these numbers are just a starting point to illustrate what’s possible if you focus on paying your home off. Bigger loans will require more time or bigger repayments. Obviously, the higher your fortnightly payments are, the more quickly you’ll pay off your loan; however, at the same time, it’s important that you have enough money to cover your expenses and live comfortably. Continue Reading…

Affordable Housing: Which Toronto neighbourhoods are friendliest for Condo buyers?

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By Penelope Graham, Zoocasa

Special to the Financial Independence Hub

There’s no denying Toronto real estate prices have tumbled since the Fair Housing Plan was introduced by the Ontario government last April, to address the searing 33-per-cent year-over-year price growth that alarmed buyers and policymakers alike. Detached house prices – the hardest hit segment following the Plan – have since declined 14.8 per cent, representing a dollar loss of $180,878, while the average aggregate home price is down 11.8 per cent, a loss of $108,696.

However, affordability continues to be a keenly-felt issue in the city, especially among what is supposed to be the affordable entry point for new home buyers: condos.

While the priciest home segments posted deep declines in the volatile months following the Plan, condos consistently posted year-over-year gains in value; now, just over a 15 months later, they’re sitting at an average of $561,097, an increase of 8.1 per cent.

FHP did little for first-time buyers

That means that, while those in the move-up markets have enjoyed improved buyer conditions, the most vulnerable and cash-strapped have faced only worsening affordability following the new policies. Rather than find an affordable entry-hold in the 416, first-timers are increasingly drawn to further-flung communities, such as homes for sale in London, Ontario, or even Ottawa real estate, where detached living can be had at the fraction of the cost for a city condo.

However, these are aggregate data, reflecting home prices collected from the entire region monitored by the Toronto Real Estate Board. As real estate is extremely local, and can differ from neighbourhood to neighbourhood, savvy condo buyers seeking a deal may still have options within the City of Toronto proper.

Toronto’s most affordable Condo communities

To identify where this is possible, Zoocasa crunched the affordability numbers per neighbourhood, factoring in the average price in each as well as the median income earned in Toronto households.

The findings revealed that, for households earning two or more incomes at the median of $96,294, 18 of the 35 examined markets remained within the realm of affordability.  They are:

Continue Reading…