Should you rent or buy a house for your student?

Should you rent or buy a house for your student?With high school students across the country deciding on their post-secondary education right now, where they will live while at school should play an important part in the decision. Given that more than two-thirds of post-secondary students plan to live away from home during their studies and parents often foot the bill, have you considered how much it will cost?

While many rent, some parents opt to invest by purchasing a home for their kids to live in while away. But when does this option make sense? According to Nicole Wells, vice-president of home equity finance at RBC, there are five questions you should ask yourself when deciding.

1. What is the market is like? The conversation will be different depending where the school is located. In a more urban market, prices may be high compared to smaller towns, where you might find a better deal. Is the market volatile or stable? Do your research first.

2. Do I want to be a landlord? If you’ll be renting to your kid’s roommates as well, make sure you look into the logistics and legalities of being a landlord. Are you prepared to handle the maintenance on the house? What if someone doesn’t pay their rent on time?

3. When do I plan to sell? Will you sell as soon as your child finishes school, or continue to rent it out? You may get more value by holding on to it as a rental unit. Being a university town, there likely won’t be a shortage of renters.

4. Who will benefit? Is this a short term play, or are you planning ahead for other siblings that might go to the same school? Think about holding onto the property for longer to gain more value and plan ahead.

5. Have I run the numbers? Calculate the break-even point and when you would see profit. Don’t forget to include “extras” such as maintenance, repairs, taxes and insurance. You also need to put yourself first and ensure you aren’t drawing on retirement savings that might put your future in jeopardy.

Find more information online at rbc.com/home.

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Questions every homeowner should ask about their property

Questions every homeowner should ask about their propertyDid you know that homeowners are responsible for the maintenance and replacement of service lines on their property when they fail? The costs associated with digging up, repairing or replacing service lines can run into thousands of dollars. More than that, any damages to trees, shrubs and driveways due to repairs must be paid out-of-pocket by homeowners.

Alarmingly, many homeowners are not aware that service line failures — including water, sewer, septic, electrical and telecommunications lines — are not covered by most home insurance policies.

“Every homeowner needs to be knowledgeable on what they’re covered for and what they’re not,” advises Isabelle Bientz, insurance expert from Aviva. “Most service lines run underground, making it easy to forget the importance of getting them checked for repairs. A lot of homeowners are also not aware that they own the outdoor service lines from their property line to their house, and behind their house to a well, septic tank or out-building.”

Before the unexpected break, leak, tear, rupture or collapse occurs, homeowners need to ask themselves these questions about their service lines:

1. How old are your pipes? The average lifespan of water pipes is 25 years, but the average age of pipes in many areas in Canada is over 50 years old, and several municipalities have water systems of comparable age. Knowing the age of your own water pipes will help you determine whether they’re due for a repair or replacement.

2. What are your pipes made of? Depending on what your pipes are made of, the life expectancy will differ. It’s important that you check the material of your sewer and water pipes in order to make an educated assessment, or consult an expert to see when they’re due for a repair or in need of a replacement.

3. Do you have mature trees near your property? If you own a home with mature trees on or near your property, the roots could cause serious damage to your service lines. Clay pipes, which are most commonly used to build water and sewer lines in older homes, can be easily penetrated and damaged by tree roots. If you suspect a tree root problem, contact a professional to investigate before the situation worsens.

Not sure if you need coverage for your service lines? Find more information from your insurance broker or online at www.avivacanada.com.

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5 Key Things to Know When Buying a Home

5 key things to know when buying a homeIn Canada, most of us put off searching for a new home until the spring or summer, when the snow has long melted away. But purchasing real estate in the winter can be a smart move since the market is often cooler and there’s less competition from other buyers. If you do decide to buy this winter, here are some tips from the Ontario Real Estate Association to keep in mind.

1. List your priorities. Before you start searching, write up a list of things that truly matter to you in a home, so you can be sure to get what you want and avoid getting sidetracked with features that may be impractical. Things like public transportation, cultural diversity, entertainment hubs and space for a home office can be deciding factors depending on your unique needs and preferences.

2. Start with an expert. While DIY is a great option for many tasks, finding your dream home is not one of them. Real estate transactions can be complex and often involve lawyers, bankers and surveyors. A Realtor is an expert in matching people to their ideal residences and can help you navigate the process from start to finish. Your Buyer Representation Agreement outlines the details of the relationship with your Realtor.

3. Scope out the neighbourhood. You will want some serious intel on the area you’re going to be calling home. Take some time to explore the neighbourhood — walk the streets, strike up conversations with passersby, eat at local restaurants and check out community amenities like parks and recreation centres. If you have kids, be sure to visit the local school.

4. Get pre-approved. You don’t want to wait until you find the perfect place to make an appointment with your bank to know if you can afford it. Before you book any viewings, schedule a visit with your mortgage broker to get pre-approved for a mortgage and set a realistic housing budget that you can manage.

5. Blend emotion with logic. Our emotions can sometimes play a big role in deciding whether something feels right. Although it’s important that your new home inspire positive feelings, ensure you are making a smart, well thought-out decision. Get an inspection, verify the list price, and ensure your offer is fair and reasonable for the current market.

Find more information at www.orea.com.

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7 Secrets to Sell Your Home Successfully

7 secrets to sell your home successfully

Here are some tips from the Ontario Real Estate Association that will help your home stand out when you decide to sell.

Here are some tips from the Ontario Real Estate Association that will help your home stand out when you decide to sell.

1. Focus on first impressions. You only get one, so make sure everything potential buyers see first is in top shape. During winter, keep your driveway shovelled and hats and mittens neatly stored for a clutter-free entryway.

2. Empty your closets. A great trick is to create the illusion of extra storage space with half-empty closets, drawers and cabinets.

3. Upgrade strategically. Skip costly major overhauls — quick fixes are cheaper, easier and can often deliver a better return on your investment. Things like a fresh coat of paint, cleaning the carpets, and replacing door and cabinet handles in the kitchen are big-impact projects that can be accomplished in a weekend.

4. Edit personal touches. Buyers are more likely to make an offer if they can visualize themselves living in your home, so put away family photos and kitschy personal mementoes. Stick to simple artwork and accessories that make the space feel lived-in, but neutral.

5. Understand legal documents. When you list and sell your home, there are several real estate documents you need to complete the transaction, like the Agreement of Purchase and Sale and the Listing Agreement. Work with your Realtor to make sure you understand the important information in these agreements and that they contain the specific wording that suits your needs.

6. Make sure the price is right. You don’t want to leave money on the table but you also shouldn’t set the price unreasonably high, or you may scare away buyers and keep your house on the market longer than necessary. Your Realtor can help you determine what’s right for your local market.

7. Light it up. A home that looks bright, airy and spacious is more welcoming and feels larger. Get the look by opening the curtains before viewings, choosing pared-down window treatments in light colours, and adding a few strategic lamps, which you can borrow from a friend until you sell.

Find more information at www.orea.com.

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Exploring New Opportunities for Affordable Home Ownership

As more millennials look to become first-time homebuyers and boomers search for housing that better fits their needs, smart solutions are needed to ensure home affordability for years to come.

One idea being recommended by Ontario Realtors is more housing supply. To meet the needs of diverse families, it’s important to add more variety of homes to the market, such as townhouses, stacked flats and mid-rise buildings — and government can support these efforts.

“Over the past year, Ontario Realtors have been sounding the alarm on the lack of housing supply in the Greater Golden Horseshoe. It is imperative that governments work collaboratively with municipalities and developers in reducing the barriers that have impeded necessary growth in the housing market,” says Ettore Cardarelli, President of the Ontario Real Estate Association (OREA).

According to Ontario Realtors, increasing housing supply in the province is the best long-term solution to keep home ownership within reach for young buyers and future generations.

“OREA’s plan for increasing housing supply in Ontario includes speeding up building approval processes, encouraging building more ‘missing middle’ type homes and making sure infrastructure funding is targeted towards water, sewer, roads and transit to land already designated for development,” says Cardarelli.

Find more information at www.orea.com.

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