#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

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U or W?

As a Toronto Mortgage broker, my clients rely on my advice not only while they are making their financing decisions but also in the years after making the decision to determine whether they are still on the right road and on track.

As such, I pay attention to the economy. One of my favorite areas of interest is determining what shape (literally) our recovery will take.

Will it be a sharp quick recovery? Usually described as a ‘V’ or will it be a long drawn out recovery with an extended low trough, described as a ‘U’. Or will the recovery take place as a ‘W’ with two very distinct drops. We’ve already had one drop. It seems that we are on the road to recovery with Toronto real estate prices remaining firm, however, I suspect that we haven’t seen the end of the recession. I’m anticipating a second drop.

If you’d like to read more, check out Nouriel Roubini who wrote an insightful article in the Opinions section of today’s Globe & Mail, entitled “Double Dip Recession Threat“.

If you’d like to talk about your mortgage and determine how best to position yourself please don’t hesitate to give me a call. Christopher Molder, Toronto Mortgage Specialist 416.461.0204ext2

Is Canada’s housing market tanking or taking off?

Don’t get me wrong, my fate is tied to a healthy economy. When people are buying houses that is good for my mortgage business however at the same time we need to be realistic and call things the way they are with some perspective. One client who is currently in the market for a condo picked up on the buzz coming from the realtor community and expressed some fear that she has missed the boat. To which I replied “Non Sense!”. Lets face it… you know we are in a recession when CBC is airing stories entitle “Wedding Bills” about how brides are cutting back on their wedding due to tough economic times!

In previous posts I talk about the conflicting sound bites coming from the media regarding the economy and the Globe article I mention at the beginning is a case in point.

I am not trying to dispute the great sales numbers from the past month ( i think it was an unexpected and delightful surprise to the real estate community who are trying to get as much leverage out it as possible) and I am not a doomsday sayer but with my back ground in economics and simple observation I am making a case for caution.

I did plenty of reading this weekend and let me present some of the tastiest bits for your reading pleasure:
Irresistable Rates Drive Canadas Recovery-Globe & Mail “Crisis averted in the housing market? Forget it. Prices may be climbing in some markets, but so are the interest rates that have fed the recent rise in sales. Meanwhile, incomes are stagnant, and jobs are disappearing in bunches; Fixed-rate mortgages with a five-year term can be had for about 4.25 per cent with a top discount right now, compared with 5.5-to-6 per cent in spring, 2008. A couple of months ago, five-year mortgages were less than 4 per cent”

Garth Turner, author of Greater Fool: The Troubled Future of Real Estate feels that the bubble we are experiencing is fueled by interest rates. “They’re so irresistible, especially to inexperienced first-time buyers. That’s what’s propelling the market.”; Mr. Turner’s concern is that rising rates will eventually propel the market lower by making houses less affordable. His level of confidence that the boom will last? Zero; After a peak-to-valley decline of almost 14 per cent in Canada’s national average price, he’s predicting another plunge for home prices that will be triggered in large part by rising interest rates; -Rob Carrick, Globe & Mail.

In the article Canadians Hoarding Cash- Globe & Mail my favorite economist Benjamin Tal of CIBC warned that the Canadian economy is going to be subdued due to less consumer spending. Consumers are afraid to spend more in case they lose their jobs or face another bout of steep losses in financial markets; and the people who have most of the excess cash are not the people who do all the spending.

Opinions columnist Derek DeCloet wrote “While a lack of confidence is a terrible thing, overconfidence in the recovery might be just as dangerous if it prompts Canadians to do the wrong thing.; Canadians are starting to save more. But the personal savings rate was still below 5 per cent in the first quarter, and it’s going to have to go higher, for longer, before a strong recovery can truly take hold”

Make your own conclusions from the cross section of articles that I have presented. It would be easy for me to keep my opinions to myself and write mortgages for anyone who requests one…but I feel it is my obligation to at least help you try and make sense of the market confusion.

Please feel free to leave your comments. If you’d like to speak to me about your mortgage or are shopping for a mortgage, call me.  416.461.0204×2. Chris Molder.