Money Matters Toronto

I have noticed that many homeowners are opting to stay put in their homes during the recession and are content spending money on renovations rather than finding a newer, bigger home. With the added incentive of the government’s home renovation tax credit, home renovations are a great way to spend money on your home and potentially increase the value. But which renovations are best? Some renovations can actually have a negative impact on your home’s value and appeal. One homeowner’s upgrade can be another homeowner’s deal breaker. Consider these 3 tips before you undertake any renovation:

#1- Avoid Upgrades Without Universal Appeal Although they are a “must-have” for some, saunas, hot tubs, and swimming pools are often referred to as value-neutral renovations.  While they may not decrease your home’s value, they may make some prospective buyers think twice. An unwanted sauna, tub or pool can be seen as a waste of space.

#2- Keep Features of Value Some features have universal appeal. A fireplace, for example, adds warmth, both figuratively and literally, to any room, and provides an inviting focal point. With the trend for staying in continuing, a fireplace also provides an ideal gathering place for family or when entertaining. Eliminating it or covering it up can remove a key selling feature of your home.

#3- Maintain Curb Appeal Regular maintenance of your lawn and garden are good habits even if you’re not selling your home. When you and your neighbours make this routine, it can benefit selling prices on your entire street. The same rule applies to your home. Ensuring it is in good repair and gets a fresh coat of paint when required goes a long way to create a positive first impression.

By the way if you are considering a home renovation, keep in mind that I have exclusive access to a private mortgage fund which specializes in short term renovation/ construction loans. Contact me any time to chat Christopher Molder Toronto Mortgage Broker 416.461.0204ext2

As part of our business as mortgage brokers in Toronto we also run a private mortgage investment fund called Hansa MIC (Mortgage Investment Fund). Private mortgages are a special and very interesting type of mortgage that most people are not too familiar with.

Although the majority of mortgages are obtained from a bank or other financial institutions,  there are some cases when a private individual or an investor may choose to hold a mortgage directly. There are several benefits to the borrower and investor alike in this type of mortgage arrangement.

You don’t have to be a bank to lend money, it is possible for anyone to offer a private mortgage so long as it is arranged through a licensed mortgage broker in Ontario. Private mortgages are a great investment vehicle which provides monthly income. In addition mortgages are negotiable instruments which can be assumed, renegotiated, and sold as needed. All the while the investor is protected by the security of the real estate on which the mortgage is registered.
From the borrowers point of view, private mortgages can be an excellent alternative when a suitable bank mortgage is impossible to obtain. Reasons why a borrower may require a private mortgage include; need for a second mortgage, poor credit, income tax arrears, tax arrears, construction financing, financing on properties that institutional banks may not consider prime, cases where an individual has recently gone bankrupt or just can’t prove their income. A private mortgage should never be a long term strategy for a borrower, as the interest rates tend to be higher and do not always have the features and flexibility that institutional mortgages offer.

Regardless of whether you are a borrower or an investor a knowledgeable mortgage broker who is specialized in private mortgages is necessary in order to arrange the mortgage and also provide the guidance needed to make informed decisions. If you would like to connect with a real expert in the area call Arnold Molder at 416.461.0204 ext 1. He has been arranging and managing private mortgages for the past 30 years!

DISCLAIMER: please note the purpose of this post is to inform. I am in no way offering investment advise, please consult with your investment adviser.