One more exam

I haven't got my results yet for Property Law, but my mortgage financing course is this Saturday. I still need to study a bunch, but hopefully I can review a bunch of stuff tomorrow night. From the readings I have done so far, the material doesn't seem to be too bad. I just hope that the last chapters are a little more advanced than I would have expected.

Feather-rented! Again!

My old house at 75 Arlington recently became vacant. The girls that have been living there have subletted since the end of school. So, they gave me the required 2 months notice at the end of July. They also mentioned that the subletters were going to try to take over the lease, but some of them were currently out of town.

After about two weeks, the subletters let me know that they would not be taking the place anymore. Since I didn't have anything signed with them, I had no recourse. Instead, I had to post on Carleton's housing website.

This time, the calls did not come in as feverishly as when I posted 73 Arlington a few months before. The calls did come in eventually, and I met some nice 4th year and grad school girls that were seriously interested in the house. Not wasting any time, I got them to sign a lease and pay up first and last month rent.

Overall, my three properties have had new tenants this year. As stressful as it is, it has meant that I can charge more for rent than I did last year. I now collect an extra $350 a month in rent. It goes a long way into making these properties more affordable. I am even seriously considered doing a major bathroom renovation.

Exam update

I am in the middle of writing three exams which are required for me to continue being a real estate agent. This morning, I saw that I passed my commercial real estate course. I was quite pleased with my results. The week leading up to the exam resulted in a couple of nights at bluesfest, so it goes without saying that my study time was limited. I did really well. I got an 86. A 75 is required to pass.

When I wrote the exam, I wrote beside a girl that has failed multiple times. I don't get it. The exams are pretty easy and it is expensive to have to repeat write. She seemed really outgoing, so she has that going for her as an agent, but it concerns me the number of attempts she is taking with these exams. It certainly is not an accounting level of certification.

Feathersold!

Congrats to Kyle and Suzanne on their recent home purchase! I know many people already knew through facebook, but I usually do not announce "feathersold" until the deal becomes final. There can always be surprises in the home inspection, so I do not like to jinx it. I also have been trying to complete courses I need to maintain my licence.

Anyways, Kyle and Suzanne bought a beautiful single family home just on the outskirts of Richmond. They are now pretty central to their friends, family and work. They will be able to save gas money as they won't need to travel too far to see their friends and family. They will be able to enjoy the country lifestyle, but still have great access to shopping and major routes. Although they bought a very cute home, the real value is in the land they bought. Like they say, location! Location! Location!

Again, I want to thank Kyle and Suzanne for using my services and wish them the best of luck in their new home.

Feather-rented!

The Stittsville house is now rented. I had it listed on the real estate market for sale for about a week and a bit to see what the market was like in Fringewood.

On the Sunday of the open house, I only had one person come by the property to take a look. It was a neighbour. Given the Sunday was the 19th, I was going to try to play it safe by deciding to list the house for rent as well. I figured if I didn't like the house for rent then, I would not be renting the house until August. I didn't want an empty house, so I was luckily able to rent the house almost immediately.

As a result, the house is no longer for sale. It was a quick decision that I had made as I really do not have a good reason to leave the place I am currently living in. I recently signed up to go curling at the Ottawa Curling Club and it will be nice to be within walking distance this winter. I know I shouldn't be writing about the "W" word yet, but I still plan on taking advantage of the summer weather a lot.

Housing crisis???

In the United States, house prices ran up so high and fast that people flocked to the market to make a quick buck. They would mortgage their houses for two to three times its value in order to find other properties with skyrocketing values. This meant that people held onto mortgages that were multiple times their income. When the bubble burst, the owners were stuck with homes previously valued at $800K were now worth less than half. Owners would sell for less just to save their shirts. They didn't have the income to support the mortgages.

One of the dangers in Canada is the record low interest rates. When rates begin to go up, the affordability goes down for Canadians. In some cases, people can barely afford the mortgages they currently own. One of the issues is that the bank lends on the fact that it is the primary debt holder. They know they will get paid before any other debts in the case of bankruptcy. The banks know that they get paid before you pay for your groceries.

This has an impact because costs like groceries are not accounted for when determining whether or not you should qualify for a mortgage. You, as a consumer, should try to know this. If the bank qualifies you for a certain amount, it may be difficult to manage your mortgage if you take out the full value. It is best to consult your financial advisor about what is affordable for you.

With interest rates at a point where the only direction in the future is up, there is a great concern that, if rates rise too quickly, Canadians will not be able to afford the houses they currently own. This will cause an increase in the supply of houses in the market and thus prices will start coming down. This is not necessarily a certainty, but it is certainly a risk the Bank of Canada has to think about when they set their lending rates.

I saw an article today with references to household debt as a percentage of income. The article can be found at the link below.

http://www.ottawasun.com/2011/06/20/canadian-households-more-indebted-than-ever

This type of information indicates that there needs to be some action on the part of the government or the Bank of Canada to help protect the Canadian Real Estate market. The government introduced new lending rules in April that will assist, and the Bank of Canada has been holding rates steady over the last year. It remains to be seen if further action needs to be taken.

Two big things!!!

First, the more boring of the two things. My website is now compatible with mobile devices. If you visit it using your phone, you can hopefully read it with ease!

Second, my house is now listed. The MLS number is 797214. As of right now, the house is not available publicly. The house can only be seen by another real estate agent or a person who receives emails from their agents. The house should be available publicly in the next day or so.

House almost ready

The painting is done.  Landscaping is done.  The carpets go in tomorrow.  I expect to list the Stittsville property either tomorrow night or sometime on Wednesday.  It should be interesting.  I know of two other properties in the area and they've been on the market for a few weeks.  It might be a tough sell.  We'll see!!!

Courses

I've signed up for three real estate courses this summer. Commercial real estate, real estate law and mortgage financing are the courses. I need them to maintain my license.

Two courses are online and the third requires a couple of days off vacation from work. I would have preferred to use my vacation differently, but I'll live with it.

Sent from my iPhone

Update

I'm working on my Stittsville house. We have done the landscaping, started the painting, and pulled up the carpet.

I am painting the whole house from top to bottom. I'm also putting new carpets throughout the rooms that had carpets previously.

We are also finishing a room in the basement to produce a extra bedroom or office.

The deck got painted today because of the nice weather, but hopefully the inside will have some rooms done in the next day or two. That way, I can send a carpet guy in.

More updates to come.

Sent from my iPhone

Guess what?

In my last post, I talked about how I was going to rent again. Well, plans have changed again. The individual who was supposed to show up with cash today messaged me last night to bail. To be honest, I am not surprised. When it comes to business, I try not to count my chickens before the eggs hatch.

I don't want to sound too much like Kevin O'Leary, a dragon on CBCs Dragon's Den, but it seems that, in business, only money speaks to me. I only trust that someone will move into a home if they put up the money. I've come across too many people that like to make big promises, yet they often fail to deliver. I've begun to ignore the promises and have only listened to currency.

Thankfully, I have not been burned by anyone yet. Today, I was still able to move ahead with plans to spruce up the house for sale. The tenants still possess the house until the end of the month, but we've found a painter and went shopping for some new light fixtures. I'm hoping to have the clean up done by mid-June. Wish me luck!

Sent from my iPad

Nothing going to plan

Just when I thought I was going to stop trying to rent my Stittsville house, one of the people I was going to rent the house to has come back.

If you've been following me, you might be wondering why I keep changing my mind. I change it because I really do not know where I would like to move to next. I can't decide between downtown or close to work.

Each of my choices have pros and cons. My usual five year outlook doesn't give me any additional clarity. I figure I might have a better idea after the summer.

The renter will sign a one year lease so I can try renting for a year and try selling a year from now. With the market appreciation and low interest rates, I would be wise to remain fully invested.

I meet the guy on Sunday to sign. So, there's still lots of time to change plans again.

Sent from my iPhone

New washer

The washer broke down in one of my downtown units. It was in the unit I lived in. I believe it used to make a lot of noise when I lived there.

I suppose I had two options. First, I could have hired a repair guy. Now, I can only assume that he would have costed me $100 or more for just showing up. I would have to pay extra for any parts. I didn't think this was a great option. The washer was also likely older than I was. It looked like I should get a new one.

My other option may have been to buy a new used washer. I decided to go brand new. First, I get a warranty with a new washer. Next, the tenants are more appreciative of newer objects. Finally, I was able to get a pretty cheap model. The cost was about $350, so not that much more expensive than what a repair might have costed. With the warranty, it was a no brainer.

Sent from my iPhone

Selling vs renting

I've been busy lately with my properties. I've had showings at my place in Stittsville as I am trying to rent it out. At least, I was trying to rent it.

It will have been available June 1.

Instead, I've decided to test the market. I think I can use the proceeds from the sale in a better way in the future, so I think its important to maximize my returns.

I've got to do some touchups before listing, since it had been rented for the last four and a half years by the same tenant. I need some paint, some carpets, and a couple of other things.

The sale of the house will allow me to reduce my total debts. This will make me more appealing to banks and will allow me to have more flexibility in my own living arrangements.

Stay tuned.

Sent from my iPhone

Some pictures of some recent work

Thanks to mom and dad for the photos. Also thanks to my brother and dad for the help.

Sent from my iPhone

>

Easier to post

So, when I hurt my back I decided to go and get that new phone I wanted. I ended up getting a new iPhone 4 from apple and I love it!

I am hoping with the extra convenience I will have more posts on my website. I figure whenever I have some downtime out of the house, I can simply write by using my phone.

Sent from my iPhone

Condo Release Party

Brad Lamb is a well known Toronto real estate developer who has started to make a name for himself in Ottawa. He is probably best known for the Mondrian building in Ottawa.

http://lambdevcorp.com/mondrian.php

On Thursday, May 5, he is having a release party for a project dubbed Gotham. This is an excellent opportunity for investors to get involved early in the project. As more units get sold, the price usually goes up. At a recent claridge release party, claridge had increased their prices by $30,000 after one day. I'm interested to see what the opening prices will be for this property at Gloucester and Lyon.

http://lambdevcorp.com/gotham.php

This property is being constructed with a green standard. A unique feature for all patios will be a gas hookup. This means BBQs!!! This is a rare feature. The only way to get to this event is by invite, so let me know if you want to go!!!

Sent from my iPad

Some paint

This might not be the best two photos for comparison, but I think the new paint looks nice.

It certainly looks a little nicer when both sets of doors match.

The windows needed to be touched up too. You have to remember there is about 3 years difference between the two photos.

The next project is a new shed in the back yard.

Dragon's Den

Not too long ago, a co-worker of mine got a new job. I decided to get the group organized to get a farewell gift. I decided to go to Chapters to pick up a gift certificate. In addition, I ended up buying a couple of things for myself. I had noticed that I haven't picked up a book in awhile.

I picked up a book by Robert Herjavec called "Driven". If you don't know who he is, he is probably most famously known as a dragon on CBC's "Dragon's Den". He is also featured on another entrepreneurial-based show on ABC called "Shark Tank".

As I have done in the past, I thought I would review another book. This was another business book, and I thought it would be an interesting read. Mr. Herjavec has had a very interesting career to date and I was interested in his story. Unfortunately, this book was fit for the bathroom.

I say that because the chapters are short and disjointed. You can sit down for five minutes, do a little reading, and be on your way again. You do not have to read through the entire book in one sitting because you are certainly not led by any form of suspense. This is typical of a business book, but I had hoped for more.

I think there are thousands of books on that topic, so I thought that there were no flashes of brilliance or insights within this book. I respect what was said in the books, but since there was nothing noteworthy to read, I label this book as a money-grab. I would have preferred to hear more stories about his rags to riches, but such entertainment was minimal.

I'm hoping the next book will provide some more insights.

Bad back

Hey,

So, if you've been wondering, I haven't made many posts recently due to an injury I suffered recently. I hurt my back again and it has caused a great amount of discomfort. It is slowly on the mend, but I wanted to let people know that it isn't a bad idea to think about starting your research for buying a home.

One of the things that I try to do as a real estate agent is help people learn about the market they are in. If they get to see a few places, they quickly get an idea of what their money can buy them. It may not be the best salesperson approach, but it's an approach that I think my family and friends appreciate. If you happen to know anyone looking, new or used, please send them my information and I will help them out as much as possible.

Medical expenses

Want to know what you can claim for medical expenses? Have you been confused before on what to do and which expenses are eligible? How much are you allowed to claim?

Well, thankfully, I've decided to write a post about it. Generally, prescriptions, dental work, and eye glasses are some of the most common items claimed. There is a catch. The government does expect you to pay for some of the expenses. They have instituted a threshold of 3% of your net income. Well, it is actually the lessor of 3% of your net income or $2024.

This means that, if you make $50,000 net income in the year, you can only claim expenses over and above $1,500. This is out of pocket of course. You cannot claim any credits on medical expenses that you may have been reimbursed through medical insurance.

The best place to see what expenses to claim are on the CRA's website. A link is provided below.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/llwbl-eng.html

This post is for informational purposes only and you should do your own research before attempting to do your personal taxes. You may come across an exception, so you should consult a tax professional about your taxes to protect yourself from ineligible claims. I make no warranties or assurances that the information contained in this post is correct.

My idea gone

I had told a couple of people what my plans would be if I was a mega-real estate investor. I had some ideas about how to make a lot of money. One idea is now taken. I guess it didn't take much to think of the idea I had.

My idea involved changing the use of the Greyhound bus station. After I bought my place on Arlington, I thought the land potential value of that property was ten times higher than the current use. Recently, the former Mayor, Larry O'Brien, had been pushing for Greyhound's relocation. I knew then that somebody else was planning big things.

I obviously couldn't act because I don't have the resources to pull it off. I knew at some point that someone else would figure it out, but didn't think the wheels would be in motion so soon.

The plan is developing. In fact, there was a recent article about the plan. It can be found at the following link:

http://www.ottawacitizen.com/business/station+owner+applies+rezoning/4423000/story.html

As for my thoughts, I think I'm super excited about the plan. The plan calls for homes to be built on the Arlington side of the property. This will make my two semi-detached units more appealing. It may also make it easier to perform an infill later on. It only increases the value of my properties. I also think the plan to move the Greyhound is a good one. Currently, it is not set up on the municipal transit service. At the VIA rail location, there is an expectation that the new light-rail will connect there. Overall, it's a win-win-win for all of the parties involved.

Prices up

According to the Ottawa Real Estate Board, price in February are up 6.7% over the same period last year. This was according to their latest new release found at http://orebweb2.oreb.ca/news_release.shtml.

This does not mean that the price of an individual house has increased or decreased, but the statistic tries to give a general trend for prices in Ottawa. The average sale price of residential property in Ottawa is now over $338,000. This has meant that the average house in Ottawa costs you about $21,000 more than it did last year.

You can see why some people say that the best time to buy real estate was yesterday.

Mortgage renewals

This week was a very important week for me. My first mortgage had come up for renewal. That means I have owned my property for nearly 5 years. We got to renew a little bit early, and that is why I am sharing this information.

Banks allow for an early renewal up to 6 months without penalty. They would rather keep you as a customer than risk you going to a competitor. In order for an early renewal to make sense, you must know the competitive interest rates. In my case, I was able to reduce my interest rate by 3.75%. It has meant a tremendous savings. It will allow me to pay off my mortgages that much quicker.

In essence, by renewing early, I have been able to save 3.75% over the 6 month term. In terms of time, I have likely saved myself nearly a year's worth of payments. The compounding effect of interest is amazing, so it was nice to know that I'm going to be closer to paying off my debts sooner rather than later.

I would also like to mention that I was able to "cannibalize" some of my mortgages. Since I have more than one property, I have more than one mortgage. By taking advantage of the lower rate that exists now, I am able to make additional payments by increasing my mortgage a little bit on the renewal and applying the extra cash to my mortgages with the highest rates.

If you are in the market for mortgages, please take the time to shop your mortgage. You can get an idea quickly how good your mortgage rate is. Talk to a professional about the different options that are best suited for you. You may not need a standard 5 year term. You may opt for a shorter term knowing that you may not be living in the same house, or have the same job in 5 years.

Have a nice weekend!!!

Home inspector

I think most people know that it is important to have a home inspector before purchasing a property. It would be foolish to not have one done. A home is likely your most important purchase of your life. You do not need any extra surprises after you move in.

It is also important to have a good inspector. The thing I look for in an inspector is not his cost. I look to see if he has an engineering background first. It is the most important element in my opinion. The cost of a home inspector relative to another home inspector is pretty minimal. It is worth the extra money to know that your inspector knows his stuff, especially when it comes to structural issues around a house.

The next thing I look for in an inspector is how organized, and methodical their approach is. It is important that the inspector is thorough, so that minor issues can be identified. If he seems disorganized, you may not be able to remember everything he told you, or you may not have enough time to write it down. If anything, it is nice to use his or her report as a checklist of some to do items once you move in. Hopefully, he is not just writing down notes at the very end. The report should be thorough and he or she may not remember all the details.

Electric

You know when I feel electric? When I get paid for real estate! Today, I got paid for a deal I did awhile ago. Woohoo!

The reason I opened with this was because the money that I earned on this deal was used to settle some small debts I had when I changed the heating in one of my rental units. I did a conversion from electricity to gas. Hence, the electric title of this blog post.

I think most people know that electric baseboard heating is an expensive form of heating. They may not know the degree to which it is more expensive. I can honestly say that I have a larger house, with gas, that doesn't cost me as much in a winter as a two-month bill I get for a baseboard heated house. It's pretty ridiculous.

The government of Ontario was able to rake in an extra $1.3 billion from the new HST this year on electricity. Costs are expected to continue to rise. When you are looking for a new house or apartment, please inquire about the heating costs. They can be significant. You may not be prepared.

This is obvious

The following article discusses how debt in Canada is rising. This should be no surprise. Debt has never been cheaper. On a variable rate mortgage, for example, you could be paying as low as 2.25%. These are record lows! I'm sure when mortgage rates were closer to 20% debt was pretty low. It just makes sense. This isn't surprising.

http://www.ctv.ca/CTVNews/TopStories/20110217/family-debt-110217/

The issue will be when the interest rates start to rise. They are expected to rise in the near future. The government has been taking steps to help curb people from over-extending themselves on mortgages. This is done to help prevent a housing crisis in Canada similar to the one that has caused the recession in the United States. If people can't afford their mortgages, they will panic and try to sell to save face. This is the reason that mortgage rules continue to get tougher and tougher.

Great advice

I don't really want to endorse any product or any person, but I received an interesting article on money saving tips. These tips go beyond real estate, and I think would help out those that just can't seem to get ahead.

Check out the article at the following link.

http://www.mortgagebrokersottawa.com/_documents/news/howbeingcheapcanleaveyoubroke.pdf

Tax time!

I know people don't like to think about this, but it is almost tax time. Since I have some pretty complicated taxes myself, I need to buy the expensive software. As such, I figure I will do a few on the side this year. If you're interested, let me know.

My personal plans

One thing that seems to gather people's attention is some of the work that I do personally. They seem often more interested in what I do in my investment life than they are interested in their own investment life.

Right now, I live in an apartment downtown. I've had some time to consider how I like living downtown and on my own. I do like both. However, I am a practical guy at heart. I don't think I will be living downtown by the fall. I could be wrong, but those are the plans. There are a number of things to consider before then, but I am thinking of moving back into a house.

Ideally, I will be moving closer to work. I will be moving closer to 100 Constellation.

The reason I am waiting until the fall is that the fall will be the 5 year anniversary of my first home purchase. At that time, I will be renewing my mortgage on that particular property. I will be switching from a fixed rate to a variable rate. It'll be the best fit for me. If you're unsure, you should consult a mortgage professional.

As a result of this new mortgage, my monthly cash flow will improve by a few hundred dollars a month. This will make my new purchase that much easier to afford. I'm certainly no longer going to live in anything that I would consider "tired". I might have to do a little bit of work, but it certainly shouldn't be anything major.

Anyways, I just thought I would share my thoughts. I hope to own my fourth property soon!

Feathersun!!!

A little fun. I didn't manage to sell this thing, but I could only imagine the commissions. Thanks to Marcie for finding this.

http://www.thestar.com/news/world/article/935108--woman-buys-the-sun-plans-to-charge-tax-on-rays

Chad

Clarification

I know I have confused some people. I often get asked by old friends whether or not I am a real estate agent. They see that I have a job at the City of Ottawa. They used to think I was a Chartered Accountant. They see all of these real estate posts.

My commitment is to the City of Ottawa. I work there as a Business Consultant and it pays my bills. I do real estate for my own investments, and trying to help out those around me that want some good advice. I am not a full-time agent. I have time restrictions.

I can offer my time though after my normal working hours. There are many tools that agents can use to automate the search process and develop working relationships using the latest and greatest technology. It is this technology that keeps me into this business. I think it levels the playing field for me against other agents.

I also make a commitment to my clients. I generally only work with close family and friends, so my time is their resource. Some agents might not have the time to work with an undecided buyer. I have worked with some clients in a matter of hours. I have worked with some in a matter of months. The effort is there to give them the most information possible to feel good about their decision.

I wanted to post this so that people know where they can find some good advice. Obviously, I would like some business, but I don't mind giving my two cents where necessary. I have a full-time job that pays my bills. The extra cash I make doing real estate is a 100% bonus to me. I would rather earn it through your trust than to make a deal to pay my bills. I hope this post clarifies for people what my real estate job is really about.

Featherrented!

Here is something a little new. Featherrented!!!

I posted my house at 73 Arlington up for rent on Carleton's website. I managed to have 7 different groups come a couple of Saturdays ago. After some due diligence, I was able to find a group of suitable tenants for May.

The ad was only posted for a couple of days, and I was able to get 7 different groups of 4. Since then, I have received over 50 calls from students looking at renting. I knew that it would be easy to rent, but I never thought it would be that easy.

New Mortgage rules

I realize that I am a little slow with my post, but I thought I would help some first time home buyers understand what had happened last week with some changes to the mortgage rules.

In reality, there hasn't been a lot that had changed. The changes were made only to the riskiest of borrowers. The loan amortization had been reduced to 30 from 35. Home lines of credit were no longer being insured by the CMHC. The maximum borrowing amount is now 85% of the home's value, down from 90%.

What does this mean? It really does not affect first time home buyers. First time home buyers should be qualified based on a 25 year mortgage. The fact that it is reduced from 35 to 30 has little impact. First time buyers also do not need home lines of credit as they have not built any equity.

My personal theory (and please seek your own professional advice) is that this is just a signal of some of the measures that are going to come into place in the near future. My prediction is that home buyer's are soon going to need a larger down payment to purchase their homes. This will affect first time home owners. It's not easy to save for such a large lump sum.

There are factors that you should consider before jumping the gun on purchasing a home. You need to understand how the CMHC insurance premium works on homes with less than 20% down. I would suggest that you consult a mortgage professional to truly understand the implications.

My job as a real estate agent is to educate you on all facets on purchasing a home, so that you can find the information you need to make the right decision for you or your family. After all, the home is likely going to be the largest investment in your life.

New Year

I just thought I would wish everyone a Happy New Year! Of course, I'm going to put my real estate twist on it. I'm going to make a real estate resolution. I want to get a few more real estate courses done this year. Thankfully, they are offered on weekends and I shouldn't need to take any vacation time.

There are some particular courses on property management that look interesting and may add some additional value for people. I already think with my CA that I have some of that in my arsenal, but I never pretend to know everything. I want to make sure I can help my clients to the fullest potential.

Feathersold!

I guess I was a little late with this. I have a deal on a duplex that closes early February. It's just in time to pay some of the Christmas bills.

This was a great investment property. It was a duplex just on the outside of beechwood. My client and I had been searching for a few months - waiting on the right deal. This deal will make the house affordable for my client and some income potential down the road.

This is the value that I think that I bring to my friends and family. I can afford to be patient with my clients to make sure they get what they want. I think it's only fair given the fact that they may have to be patient with me as I do have a regular day job. I can't interfere with that, but if two parties want to get a deal done, a deal will get done. It hasn't been a problem yet, so I don't see why it would be down the road either.