Coldwell Banker® pioneered Ultimate Service® in Canada 15 years ago, providing a signed
written pledge to deliver quality service based on an individual consumer’s specific needs. So it’s
probably no coincidence that for a remarkable 15th year in a row, Coldwell Banker® Real Estate received a
98%* overall customer satisfaction rating in a survey of more than 60,000 Canadian home buyers and sellers.* It’s
a claim no other real estate brand in Canada can match!

If you want to know about the quality of service that Coldwell Banker agents deliver, don’t take our word for
it – ask our customers. They’ve given us what you might call the “ultimate” compliment.

*results tabulated by an independent third‐party

November’s home sales were on par with expectations and previous year’s activities, and the residential real estate market continues to demonstrate its stability in Waterloo Region.

Year-to-date, there have been 5,921 residential units sold. Home sales last month included 292 detached homes, 89 condominium units, 37 semis and 26 townhouses. Semis and town homes show an increase in unit sales.

The average price of all homes sold last month increased 6.6 percent to $299,755. Sales of detached homes contributed the most significant increase with a jump of 7 percent in November to $344,404, relative to one year ago. The next biggest increase came from the freehold Townhouse category which increased 6.1 percent to $257,142.

Contrary to some recent international headlines suggesting a slump in the so-called global housing market, the Waterloo Region housing market is on solid footing. As housing markets often differ from national or even international trends it is important for consumers to talk to a local REALTOR® to understand what’s really happening at the local level.

For more information about the trends in your neighbourhood, call me at (519) 577-8181 or email me at dpellerin@coldwellbankerpbr.com

House sales in Waterloo Region picked up steam in October, with the real estate boards in Kitchener/Waterloo, and Cambridge reporting increases in the number of sales over last year’s while price were only slightly higher.
October sale for KWAR indicates a 4.9% increase over October 2010 with an average selling price of $304,379. A closer look at single detached homes indicates the average selling price was $332,358.
Cambridge saw an increase in unit sale up 8.5 per cent from the 200 homes sold in the same month last year with an average price of all residential properties of $284,515.
In the region as a whole, 8,062 residential units were sold in the first 10 months of the year. That represents an increase of about 1.9 per cent compared to the same period in 2010.
The strong sales in October point to a stable housing market in the area. The continued market strength is a reflection of investment and consumer confidence in the Region.
For more information and a closer look at the trends in your neighbourhood, give me a call at (519) 577-8181 or email me at dpellerin@coldwellbankerpbr.com

What you need to know about UFFI – YES a house with UFFI is SAFE!

If you’re looking at older Kitchener and Waterloo real estate, you may have already heard about UFFI, urea formaldehyde foam insulation. This commonly pronounced “you-fee,” insulation was used in homes as an alternative to traditional insulation for existing wood frame homes where non-destructive applications were best suited. The compound is foam that is injected into places that are hard to reach; this makes installing insulation to areas such as behind walls much easier. However, UFFI was not just a handy alternative to insulation problems. UFFI also contains formaldehyde, and trace amounts of this dangerous substance are released while the compound is mixed and cured. Because of this UFFI is also the centre of much debate regarding the safety of its use.

It was during the 1970s that UFFI really became widely used in Canada. Due to an incentive program offered by the Canadian Home Insulation Program (CHIP), it was used most extensively throughout 1975 – 1978. That time period is significant for homebuyers that are interested in older Kitchener—Waterloo Region real estate. Many have been told that UFFI was used decades ago, but that it could still cause a problem; while others are told that while UFFI is present in the home, it causes no danger at all. Add to this misinformation the fact that Canada banned the substance in 1980 but it is currently in use in the USA and Europe, and it’s no wonder why people are confused! And what does all of it mean when you’re looking at a home of this vintage in the Waterloo Region?

UFFI was banned by Canadian government due to the fact that formaldehyde is a harmful substance that is a known carcinogen. It was thought that when it was used as insulation, especially in poorly ventilated areas or areas that experienced high humidity, that UFFI released formaldehyde gas in substantial quantities. And although formaldehyde gas is everywhere and nearly impossible to escape completely, it was the higher quantities that were cause for concern. The government then set out guidelines pertaining to how much formaldehyde was acceptable, and how much was not. They initially determined that 1.0 parts per million (ppm) was acceptable, before eventually changing it to 0.1ppm. The government’s next task after determining safe levels was to then find homes with extremely unsafe levels, so that they could experiment with their theories.

But there was a problem – the task force set out to test the ideas couldn’t find any homes with raised levels! There were no homes with levels that were elevated past the once safe level of 1.0ppm, and very few had levels raised to the now safe level of .1ppm. Even those homes that initially tested with high levels, rarely, if ever, tested positive for higher levels in further testing. It was also found that many that showed increased levels tested higher due to some types of new furniture, carpets or paneling installed inside the home; and that it was these items, not the UFFI that caused the higher levels of UFFI readings. It became known that the levels of formaldehyde decrease rapidly after the foam has been installed. Within several days of the application, formaldehyde levels typically return to ambient house levels.

The presence of UFFI does not affect the amount of formaldehyde in the indoor air. Indeed, while not statistically significant, the homes tested were found, on average, to have formaldehyde levels slightly below that of homes of similar ages without UFFI.

For this reason, homebuyers that are interested in older Waterloo Region real estate have no reason to worry. Homes that used UFFI insulation are equally as safe as homes that use other types of insulation; and there’s been enough study on the subject to prove it! The owners of properties with this type of insulation should not be penalized financially, and no stigma should be attached to these homes.

Canadians seeking a sure-fire
investment return should look no further than their mortgage. Paying it down as
quickly as you can will, in most cases, result in a stellar return on your
investment.

Prepayment options are worth
exploring because paying down even a small amount of principal (the true cost
of the mortgage loan minus the interest) has huge benefits over the life of a
mortgage.

Mortgages are front-loaded when it
comes to interest meaning, in the early years, most of the money you pay goes
toward paying the interest on the amount you borrow as opposed to the
principal.

For instance, if you borrow 95% of
your home’s value, you’re paying $3 of interest for every $1 of principal you
pay. So, by paying an extra $1 of principal, that’s $3 less you’ll have to pay
in interest, at least in the early stages of a mortgage.

Range of
Prepayment Options

There are a variety of ways to make prepayments work to pay down your mortgage
faster. We can discuss your specific needs, but following are some general
rules.

Most lenders allow you to make a
lump-sum payment of anywhere between 10% and 25% of the value of your mortgage
per year. The lump-sum payment is based on either the original amount you
borrowed or the amount currently outstanding. Since mortgages decrease with
each payment, it’s best to negotiate a lump-sum payment option based on the
original amount you borrow. That way, if you come into an inheritance, a big
bonus or save a large sum of money, you can pay down the largest amount
possible.

Another factor to consider is when
you can make a lump-sum payment. Some mortgages allow prepayments during the
year, while others permit it only on the anniversary date. Still others allow
you to make prepayments on the day you make your regular payment.

If you can’t pay the maximum
prepayment amount, it’s still worth your while to at least make some extra
payment, even if it’s a few thousand dollars each year. That will still save
you thousands of dollars in interest payments.

Another prepayment option involves
taking advantage of flexible payments. Most lenders allow you to increase your
regular payment up to a set maximum, such as 15%, while others allow you to
double up your payments.

If, for instance, you have a $1,000 per
month mortgage payment and increase it by 15% to $1,150, you could shave off as
much as five-and-a-half years on a $200,000 mortgage.

You can also pay off your mortgage
faster by moving to a different payment schedule. Instead of making monthly
payments, make them biweekly or even weekly. Using an accelerated mortgage –
where you make payments every two weeks as opposed to twice a month – you
actually make one extra payment in the calendar year. By paying more and paying
faster, you reduce your principal earlier, which lowers the amount of interest
you pay.

Another option is to round up
your mortgage payment from, say, $766 to an even figure such as $800, because
any extra little bit goes toward the principal.

For more information on
mortgage saving and to get introduced to a mortgage specialist, contact me;
I’ll be happy to help – Denis

Currently and not different than in the past, there have always been a small percentage
of home owners who will attempt to save the real estate selling fees by trying
to sell by themselves.

Experience will tell you – Do not! Do not sell or buy privately.

Keep in mind that about 95% of the buyers work with a REALTOR^® in order to
assure that their best interest is protected. They will never have the
opportunity to see your home. For the Buyers who are looking at Private for
Sale homes, what is their motivation? They want to save the fees by getting a
price break of 5% to 6%.

The Seller is trying to keep the 5% to 6% fee as promised by the advertisers that they enlist
with. Also the home owner would not have proper market knowledge and experience
to correctly price the property. Therefore in nearly every case and before you
factor in the fees, the price is too high. So who wins and who loses?

Be wise. Trust in a professional as you would with any major venture. Working with a
REALTOR^® pays off.

With interest rates still sitting near historically low levels – with nowhere to go but up – now is an ideal time for first-time homebuyers to embark upon homeownership.

But if low interest rates still don’t tip the scales on your decision to enter the property market, perhaps the information below will.

Down payment
The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.

Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.

Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.

Under the RRSP Home Buyers’ Plan, first-time homebuyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.

And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.

Making an informed decision
There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you need, therefore, is education and coaching as opposed to being bombarded with more information.

That’s why it’s important to speak to a mortgage professional – in order to get a pre-approval prior to setting out home shopping. This will help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. I can provide you with real examples that can go a long way in showing you what it really costs to buy a home in your area of choice versus what you’re currently paying in rent.

You may be pleasantly surprised by how manageable it is to start building equity in your own property as opposed to helping pay someone else’s mortgage each month!

As always, if you have any questions about down payment options or your mortgage in general, I’m here to help!

As we turn the corner to Elections Canada this Monday, I want to share this piece of humour with you. I ran across this a day or so ago and I hope you will find it as funny as I have.

PERSPECTIVE
A country doctor is suturing a laceration on the hand of an old farmer and they start talking about the election.

Old Man: “All you need to know about politicians is that most are post Turtles.”
Doctor: “Oh? What is a post turtle?”
Old Man: “When yer driving down a country road and ya come across a fence post with a turtle balanced on top, that’s a post turtle. You know he didn’t get there by himself, he don’t belong there, he can’t get anything done while he’s up there, and you just want to help take the poor thang down so it can get moving again.”

Then there’s the one about
FACE THE ISSUES
The authorities were leading a priest, a drunkard and an engineer to the guillotine. They asked the priest if he wanted to face up or down when he meets his fate.
The priest said that he would like to be looking toward heaven when he dies. So, they raise the blade of the guillotine, release it and it comes down and then suddenly stops just inches from the priest’s neck.
The authorities take this as divine intervention and release the priest.
Next the drunkard come to the guillotine. He also decides to die face up hoping that he will be as fortunate as the priest. They raise the blade, release it and it come speeding down and suddenly stops just inches from his neck.
So, the authorities release the drunkard as well.
Next the engineer. He also decides to die facing up. They slowly raise the blade of the guillotine when suddenly the engineer shouts, “WAIT!!!”… I think the problem is right there where the cable appears to be binding!!!”

BMO released its report on property sales in the USA. Canadians are taking advantage of the economic downturn and of the free-falling property prices. Add to this the value of the Loonie against the US dollar, it makes for attractive investments.

The Bank of Montreal BMO report indicates that 1 in 5 Canadians would consider purchasing real estate in the USA. Although prices in the last few years have dropped in the USA by about 30%, in the traditional Canadian hotspots, you will find prices as low as 44% to 57%.

It is felt that prices in the USA are now on an upward swing. This makes for interesting capital escalations and with the prediction of the US dollar gaining strength in the year ahead, now is a good time to look at these investments closely.

Before jumping in, the mortgage rules, penalties and the amortization vary from those in Canada so you need to know what to do before taking the proverbial plunge. Also the estate taxes vary over those in Canada, tax withholding and taxation resulting from foreign real estate ownership may affect you.  

I good investment? Yes but be prepared. Consult with the experts before making a commitment.

For more information, and to be aligned with a Real Estate expert in the USA,  contact me – Thank you.

Denis Pellerin “Your Source™” for Real Estate in the Waterloo Region

(519) 742-1564 – alt (519) 577-8181
dpellerin@coldwellbankerpbr.com

www.kwrealestatebroker.com