Category Archives: elderly homeowners

Still thinking of home ownership as an investment? Here’s proof you’re wrong


Source: The Globe and Mail

Take some advice from rookie home owner Desirae Odjick about houses as an investment.

As a personal finance blogger, she ran the numbers on the cost of owning a home and concluded that breaking even would be a good outcome when it comes time, many years down the road, to sell. “A house is not a long-term investment,” she said in an interview. “It’s not a miracle financial product. It’s where you live.”

The idea that owning a house is an investment is so ingrained that a recent survey found one-third of homeowners expect rising prices to provide for them in retirement. But rising prices do not necessarily mean houses are a great investment.

Ms. Odjick lives in a suburb of Ottawa, where the real estate market’s recent strength still leaves it way behind price gains seen in the Toronto and Vancouver areas. But her point is relevant to all markets where prices aren’t soaring, and probably to hot markets as well if you’re just now buying a first home and understand that continuous massive price gains are unlikely.

In terms of home upkeep costs, Ms. Odjick and her partner have had an easy time of it since they bought in the spring. But they’ve still had expenses that surprised them. “You can use all the calculators you want and you can plan as much as you want, but until you’re in it you really don’t know what the costs are going to be.”

One example is the $3,000 spent at IKEA to equip the house with furnishings as mundane as bathmats. Another was the cost of term life insurance, which, incidentally, is a smart purchase. Term life answers the question of how the mortgage gets paid if one partner in a home-owning couple dies.

Estimates of the cost of upkeep and maintenance on a home range between 1 and 3 per cent of the market value. Her house cost $425,000, which means that upkeep costs conservatively estimated at 1 per cent would come out to an average of $4,250 per year and a total $106,250 over 25 years. Ms. Odjick is too recent an owner to have much sense of these costs, but the housing inspector she used before buying warned her to expect to need a new roof in two or three years.

She and her partner don’t have grandiose plans to fix their place up right now, but she did mention that they are looking at having children. There will almost certainly be expenses associated with getting the baby’s room ready.

In her own analysis of housing costs, Ms. Odjick estimated the cost of property taxes at 1 per cent of a home’s value. That’s another $4,250 per year. This cost would add up to $106,250 over 25 years, and that’s without annual increases factored in.

The biggest cost homeowners face is mortgage payments. Ms. Odjick and her partner made a down payment of 10 per cent on their home and chose a two-year fixed-rate mortgage at 2.71 per cent. Assuming rates stay level and no prepayments are made, this would theoretically work out to a total of $542,122 in principal and interest over the 25-year amortization period.

But rates have crept higher since mid-summer and could increase further in the months ahead. In a post on home ownership on her Half Banked blog, Ms. Odjick said the idea of rates staying level “is bananas and will not happen.”

Let’s add up the costs of home ownership as likely to be experienced by Ms. Odjick over 25 years. There’s the $42,500 she and her partner put down to buy the house, the $106,250 cost for each of property taxes and upkeep/maintenance and $542,122 in mortgage principal and interest. Total: $797,122.

Now, let’s imagine the $425,000 house appreciates at 2.5 per cent annually for 25 years. That’s in line with reasonable expectations for inflation. The future price in this case would be $787,926, which means Ms. Odjick and her partner would have paid a bit more in costs than they get for selling their house in the end.

Houses can be sold tax-free if they’re a principal residence, so there is something to the house-as-an-investment argument. But the numbers comparing what you put in and what you take out over the long term don’t exactly scream “financial home run.”

Ms. Odjick’s fine with that, because buying her home was a lifestyle decision. “If we’ve lived here for 25 years, even if it does end up costing money, then it will have been a great place to live.”

Are you a Canadian family that has made a financial decision to remain lifelong renters? If you would like to share your story, please send us an email

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This smart doorbell lets you video chat with visitors from your phone


Ever ignored the doorbell because you didn’t know who was there or weren’t expecting any visitors? Now thanks to a Chicago-based company, you can see who is at your doorstep and even talk to them from your phone.

Smart video doorbell and motion detector, Xchime, is app-enabled and allows users to see anyone at their door from virtually anywhere. Launched on crowdfunding site Indiegogo last week, the innovative doorbell includes a 1080P HD camera with night vision, a smart light and a convenient garage door opener.


Photo: Xchime/Facebook

Developed by Chicago’s Wireless Input Technology Inc., Xchime is a small, weather-resistant gadget made with stainless steel. Using their phones, Xchime users can have live video chats with visitors, like telling the mailman where to leave a package if you’re not home. Also, visitors can leave  recorded video messages, which can be viewed later on the app.

Xchime also includes features intended to help secure homes. The doorbell is built with a discrete security camera and, whenever motion is detected within a 140 degree field of view, users will be notified through the app. Xchime also has Integrated smart light technology. When motion is detected, the doorbell’s light will turn on automatically in an effort to deter unwanted visitors.

As an add-on accessory, users can purchase a garage door opener kit allowing them to open and close their garage with a push of a button from Xchime’s app. The doorbell retails at $129 USD and the first shipment is scheduled for August 2017.

Source: BuzzBuzz News – 

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Mississauga House Sparks Unbelievable Bidding War

While it’s no secret that GTA houses have never been more in demand, it’s always a little surprising to hear stories about homes selling way (and we do mean way) over asking.

A Mississauga house on Glen Hawthorne Blvd. just sold for $900,000—$261,000 over asking price. The modestly sized, two-story detached home in the Hurontario and Eglinton area was listed quite competitively for $638,800 and generated 24 offers and over 400 showings—200 of which occurred over a two hour period during an open house.

“In 14 years in real estate, that was the first time I ever saw that many people at an open house,” says Milosov Lukaroski, the listing agent with Sutton Group Signature.

While $638,800 is indeed a competitive price that some may say was too low for the house type and neighbourhood, Lukaroski said that the home was one of the smallest in the area and had originally been purchased for much less a few years ago.

“The sellers bought in 2009 for $414,000 with me. I was calculating what increase we see every year on average in Mississauga and I discovered, according to that data, the real price of house was around $650,000.”

Lukaroski also added that he generated interest by marketing the home on social media and targeting prospective buyers in the 25-60 age range who live in and around the Square One area.

“It was a very good decision [to do that],” he says. “People still keep wanting to see it, even though it’s sold.”

As for what drove the wild bidding war, Lukaroski echoed what other real estate experts have been saying for months and laid blame squarely at the feet of a market utterly bereft of inventory.

“Inventory is very low, so people are competing more and more. The last time a house went on sale in that neighbourhood was four months ago. People were bringing certified checks for over $50,000 to showings. I’ve never seen that before. We got eight offers for over $800,000.”

Wild sales like this one are becoming more common, even in the suburbs that surround Toronto. Last week, a home in Brampton sold for $200,000 over asking and a Don Mills home sold for an absolutely incredible $1.15 million over asking.

While it’s actually not unusual for detached homes in the 905 to sell for close to $1 million, the feeding frenzy that ensues when a house goes on the market is indeed a unique phenomenon that’s a boon for sellers and an absolute nightmare for buyers (especially those trying to enter the market for the first time).

Because of persistently low inventory and attractive interest rates, buyers are scrambling to purchase homes at a time when houses—and even condos, in some instances—are quickly becoming something of a rare and precious commodity.

According to the Toronto Real Estate Board, the MLS Home Price Index Composite Benchmark was up 21.8 per cent compared to last year. The average selling price for homes is also up, with the average home going for $770,745 (up 22.3 per cent), with double-digit gains in the average prices for all major home types .

Right now, the average detached home in the 905 (which obviously includes Mississauga) is selling for an astonishing $999,102. Semi-detached homes are going for $651,545 and towns are typically running buyers $604,263. Condos are selling for about $379,169.

“We expected close to $700,000. It was 11:00 p.m. and we sold for $900,000 and people kept trying to bid more,” Lukaroski says. “The market will get crazier, because there’s no inventory at all and interest rates are below three per cent. I came to Canada in 2003 and I’ve been in real estate ever since. Something like this has never happened before.”

Source: – by Ashley Newport on February 14, 2017

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Free apps to take with you when you buy your next (or first) home

Buying a house can be daunting, but there some free apps out there that can make the  process a bit more welcoming, helping you with everything from figuring out mortgage rates to jargon to post-close decorating decisions.

Whether you are a first-time homebuyer, relocating or simply want to renegotiate, mortgages don’t exactly lay down a welcome mat. Now that warmer weather is in the forecast and home-buying season is getting into full swing, Josh McConnell reviews some of the free mobile applications that can help you make sense of the complicated mortgage process so you can get on with the fun part of buying a home.

The Canadian Mortgage App

Platforms iOS, Android, BlackBerry

Developer Bendigi Tech Inc.

At a glance This is the app everyone loves to talk about when it comes to mortgages. When asked, both homebuyers and mortgage specialists alike wholeheartedly recommend it. The developer says it has been used more than 2.1 million times with more than 3,000 five-star reviews in the various app stores. Impressive.

What to expect The interface is incredibly easy to use and slick — from the way numbers are inputted to the slider bars to the side menu. But, most importantly, it is loaded with information and rates to help you calculate exactly what you need, whether that’s a variable rate, fixed rate, weekly vs. bi-weekly payments, factoring in income from a tenant, or numerous other variables. Additionally, based on location, it can also calculate first-time homebuyer rebates and land transfer taxes.

Bonuses There is a database of local experts for you to search, which is convenient if you want an all-in-one solution. The app also has some nice extras like graphs, an affordability calculator and the option to expand your amortization schedule.

But… The list of local experts seems to be the developer’s own database, which the experts pay to be in (a source of revenue for the company). It would be nice to have it linked to other databases or even real estate listings for a truly complete solution.


Ready Set Home

Platforms iOS, Android, BlackBerry

Developer Canada Mortgage and Housing Corporation (CMHC)

At a glance A helpful mobile app offered by the CMHC, which provides mortgage loan insurance, to help you “make informed choices” when buying a home. The app doesn’t just help you figure out what you can afford, but it also explains the terminology, which can sometimes be confusing.

What to expect Whether on a phone or tablet, the app is very straightforward. You build a profile by answering questions — everything from “Is homeownership right for you?” to “Are you financially ready to buy a home?” — and then the app tells you what you can afford, or whether you can afford a home at all.

Bonuses More than a simple mortgage calculator, the app offers some next-steps advice once you’re a homeowner. The app also offers a very handy glossary of terms to help you make sense of everything. Finally, if you are a professional, CMHC also has a Mobile Kit app that works with Ready Set Home.

But… In terms of design, Ready Set Home is pretty bare bones and certainly nothing fancy to look at. It also needs an Internet connection to reference the various articles and glossary. That said, the app does what it needs to do quite well.

Simple Canadian Mortgage Calculator

Platforms iOS

Developer Richard Roschuk

At a glance Sometimes you just want something that does one job without the clutter. This developer says his app takes the complexity out of estimating mortgage payments, and it’s hard to argue with him: There is no branding or advertisements, just calculations.

What to expect The app is very minimalistic in its layout, but colourful and aesthetically pleasing at the same time. The developer says it performs all calculations according to Canadian mortgage regulations using Bank of Canada rates, so you just input figures and quickly get an answer.

Bonuses In addition to calculating interest semi-annually and not in advance, the other option is to switch over to annual compounding, which is an American standard.

But… There really isn’t much else here. The app is essentially a calculator offering approximate payment information stripped of the fees or costs a bank might price in.

The banks

Platforms Varies

Developer Various

At a glance If you just want a basic mortgage calculator, there is a very good chance your bank offers some sort of solution. Some have mobile applications, while others simply use your computer’s web browser for an easy option.

What to expect Bank of Montreal’s My Home app offers a mortgage calculator, direct line to its in-house specialists and ways to keep track of properties. Meanwhile, Bank of Nova Scotia’s app is more for property-finding than anything else, though it still includes Scotiabank’s in-house mortgage tools.

Bonuses Most other major banks, including Royal Bank of Canada and TD Canada Trust, offer some sort of online mortgage calculator through their website. If that is all you need, then it could very well be the better option since a web-interface should work on most devices.

But… Though it can be handy having a tool offered by the financial institution you already do business with, be aware that the bank’s tool will generally point you in the direction of its own products. You could very well be missing out on something from competitors if you don’t take the time to look around.

Home Decorating

Platforms Varies

Developer Various

At a glance Okay, so these aren’t about mortgages, but instead about what happens after you lock in. You have a new house and now you need to decorate it. Some companies offer fun applications that let you shop furniture and décor by digitally placing items around your home.

What to expect Ikea offers a Living Room 3D app (plus apps for other rooms such as the bedroom or bathroom) that lets you create your own room using their products, while also sharing them with a community of other users to compare ideas. There is also Houzz Interior Design Ideas, which lets you take photos of your own home and insert items from a digital catalogue from various companies.

Bonuses Even if there aren’t any products that you like the app’s listings, the decorating exercise is enough to stimulate creativity. At the very least, you can walk away with some great ideas for what types of items you want for each room and then it is just a matter of finding something similar.

But… Most of the time, the app wants you to create an account to use its full functionality. Plus, free apps are generally used to push products (which is how they make money) instead of truly fostering the design process, so it might not have all the features of the expensive design-focused apps you see in various digital stores.


Source: Josh McConnell, Special to Financial Post | March 22, 2016

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Four things people always forget to check when buying a new home

Buying a home is no easy task.

With so many open houses and so many choices, by the time you find a property that just has that right feeling, you’re usually tempted to grab for the pen and sign your life away. Take a minute though; because people often get so lost in the appeal of the home and property itself, they forget to consider the surrounding neighbourhood. And believe us, your new home can really lose its luster if its located say, a 30-minute drive away from the nearest grocery store or school. That’s why Canada AM hosts sat down with Real Estate Expert Sandra Rinomato, so that you can get the home you want, in the neighbourhood you want it in.


Whether you have pets, or are extremely active or consider yourself a foodie–these factors can all influence the areas in which you might want to live. So take a second to think about all the things that are important to you, Rinomato says. Maybe you want a short commute, or want to be in close proximity to a dog park, or restaurants and shopping centres. This should be the first thing you do after figuring out your financing and having an idea of what you can afford.


If you don’t own a car or plan to rent the property out in the future, a solid walk score can go a long way (the higher, the better). A walk score is based on your ability to walk from the property in question to things like banks, transit, shopping centres and so forth. Rental tenants can be lured in by a high walk score, and it’s generally a plus to know that convenient services aren’t very far away.


It’s really easy to move into a new home and then realize it’s nowhere near or a school, or the kind of school you wanted to enroll your children into. Fortunately, there are many resources available online that can show you what kinds of schools are in your area (Ontario’s is right here).


By the time you have everything sorted–the neighbourhood, the school, the walk score, etc.–you might realize there’s no property that checks all of your boxes. Don’t worry, that’s normal. But often, it means sacrifices have to be made and you may have to look outside of your ideal neighbourhood. If this happens, Rinomato has some advice for how to find emerging neighbourhoods, where costs are still low but will rapidly rise in the future. The best way to find these spots is to look at the periphery of areas that are already hot and popular. As the population grows in the core, development will spread to the fringes.

Source; – FEB 26

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Cable companies mum on pick-and-pay and cheaper ‘skinny’ TV packages

TV providers will be offering a new 'skinny' basic package and pick-and-pay options come March. But many details remain secret for now.

In less than a month, big changes are coming that will usher in a new era of pick-and-pay television. But it appears none of the major cable and satellite TV companies wants to talk about it.

CBC News examined many of the big TV provider websites — from Rogers to Bell to Shaw to Telus. We couldn’t find any information about the low-cost, “skinny” basic TV package or added pick-and-pay channel deals they must offer by March 1.

The silence is frustrating some customers who are eager to learn more.

“You’d think because they’re coming soon that they would have these options available to be seen,” says cable customer Chris Mooney, who’s shopping around for a better deal.

Some industry watchers believe customers could be kept in the dark until the March deadline. They suspect TV providers don’t want to spread the word about a basic, low-cost TV package — until they have to.

“It’s a seismic shift that they don’t really want people to know about,” says Daniel Bader, a columnist with the tech site

“Of course, if it was in their best interest, they would be advertising it,” he adds. “They have absolutely no incentive to tell people there’s a cheaper option.”

The skinny on changes

Last year, the Canadian Radio-television and Telecommunications Commission announced new rules to give viewers more options. The regulations were sparked by viewer complaints that they were forced to buy big bundles of channels at high prices just to get the handful they wanted.

By March 1, TV providers must offer a so-called “skinny” basic package priced at $25 or less. It has to include mandatory local and regional stations, as well as public interest Canadian channels such as APTN.

Providers can also add selected U.S. networks like NBC and PBS — but the price can’t go up.

Companies must also let customers top up their “skinny” package with pick-and-pay channels. They can offer them either individually or in “reasonably priced” small bundles. Come December, companies must offer both.

In the dark

Cable customer Mooney recently downgraded his current TV package to save money, but he had to give up a favourite sports channel — TSN. He’s anxious to know whether the new offerings will let him get all the channels he wants at a decent price.

So he went online to check out Cogeco and Bell — two TV providers serving Oakville, Ont., where he lives. To his surprise, he couldn’t find any information about the upcoming deals.

“It would be nice to know what they’re going to be so I know what my options are,” he says. “It’s very frustrating.”

There are no rules forcing the cable and satellite companies to advertise early. The CRTC has only mandated that TV providers must promote the “skinny” package by the March 1 deadline “so that customers are aware of its availability, price and content.”

Tech analyst Bader believes that even when providers start promoting the new deal, they won’t go all out, because it’s not in their best interest.

“They’re only going to do the minimum amount required to appease the CRTC,” he says.

Stay tuned

In recent days, CBC News contacted many of the big providers to find out what deals they will be offering come March. Not one shared any details. We also asked the companies why they haven’t posted any information yet.

Bell told CBC News in an email that it hasn’t announced anything yet, because “we’re still more than a month out from March 1.”

Rogers said, “We’ll have more to say about this soon.”

Eastlink stated it will be sharing details on March 1 and to “please feel free to circle back at that time.”

Shaw said it will be spreading the news “in the coming weeks.”

Cogeco stated: “It is too early for us to disclose any information. We will publicly announce our new offerings in due time.”

Telus never responded.

Small player tells all

At least one provider is already offering details. VMedia is a small internet-based TV service with just 18,000 subscribers.

The Toronto-based company has a new Skinny Basic Package already available for purchase, which it boldly promotes on its site. The package costs $17.95 and includes the mandatory Canadian channels plus five American networks.

Co-founder George Burger said that as a newer competitor, his company was eager to offer its deal early and stand out from the competition.

“We were champing at the bit,” he said. “We try to establish ourselves as people who are in favour of choice and flexibility, so as soon as the CRTC gave the green light for this, we went ahead.”

Burger added he understands why other companies would keep their plans quiet for now. He believes they may not want to tip off the competition.

Or, like Bader, he said providers may not be eager to tip off customers about a cheaper, smaller plan.

“They may not want the public to know very much about the fact that the ‘skinny’ option exists, because that’s not very helpful to the business model,” he said.

Whatever their motive, the silence is golden for VMedia, Burger said. “We might as well take a little bit of the spotlight.”

Source: Sophia Harris, CBC News Posted: Feb 02, 2016

TV providers will be offering a new 'skinny' basic package and pick-and-pay options come March. But many details remain secret for now.

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26% of Ontario homeowners struggling to afford homes

A  study finds 1.2 million Ontario residents - especially those under 45  -are under "significant pressure" to cover their housing costs

An analysis of housing affordability — the first to factor in such things as daycare and transportation — estimates that some 26 per cent of Ontario homeowners are under “significant pressure” to cover their shelter costs.

About 480,000 of the estimated 840,000 homeowners being seriously squeezed by monthly mortgage and other costs are middle-class workers under the age of 45 — those who’ve had the hardest time breaking into the house market because of skyrocketing real estate prices and their disproportionate dependence on part-time and contract jobs.

According to groundbreaking research to be released Wednesday by the Canadian Centre for Economic Analysis (CANCEA), housing affordability pressures have grown an average of 13.5 per cent across Ontario since 2006.


The number is likely to be much higher across the GTA and surrounding Greater Golden Horseshoe communities like Hamilton where house-price growth has been unrelenting, says Paul Smetanin, president and CEO of CANCEA.

But exactly how “pressing” worsening affordability has been in the Toronto area will be part of a second phase of the study, commissioned by the Residential Construction Council of Ontario and to be discussed at a seminar Wednesday titled “The Vanishing Dream of Home Ownership.”

The Ontario housing market has become one where “the needs of some are being crowded out by the wants of others,” says Smetanin, pointing to the growth of foreign investment and low-interest rates that have enabled even mom-and-pop investors, or single professionals, to buy up far more housing than they need, squeezing out those who actually need it.

In fact, real estate tax breaks have actually encouraged investors to buy up more housing or park offshore money in the real estate market, says Smetanin, which has, in turn, seen developers skewing more and more of their building to condos meant for renting rather than living.

“The running assumption in economics is that you’ll eventually be forced out of the market as prices go up. The problem is that housing is a need — just like food or water — and if you need it, there becomes greater and greater pressure on you to get it (regardless of the cost), and that’s what we’re seeing.

“We don’t have a political agenda,” stressed Smetanin, of the four economists, analysts and mathematicians who’ve been studying housing affordability the last six months. “All our research, at the end of the day, is about sustainability.

“What’s occurring at the moment is not sustainable.”

RESCON commissioned the study over growing fears that “we have a housing problem,” said Richard Lyall, president of the association which is a voice for the residential construction industry.

“It used to be we had a social housing problem — people who didn’t have a lot of money couldn’t find housing. But now, that line has moved and we have families, two-income earners, who can’t find affordable housing within striking distance of work.”


Not just homeowners are impacted: Some 380,000 renting houses are also facing cost challenges, according to the study.


The centre’s analysis stands in stark contrast to measures of housing affordability done regularly by Ottawa and some of the big banks.

Many have reported that housing affordability remains close to historic norms, despite house prices that have more than doubled in Toronto and Vancouver over the last decade, far outstripping annual wage increases.

That’s because those indexes, which date back decades, don’t recognize modern realities — like the staggering costs of daycare, transportation, food and clothing which are all essentials needed to just get out the door to work, says Smetanin.

The centre looked at 14 affordability indexes — about six of them focused just on the Canadian housing market — and found “they are just picking up part of the problem around affordability. This is really about trying to bring them into the 21st century.”

By creating a modelling program called “prosperity at risk,” using sophisticated computer technology, rich census data and complex analytics designed initially by CANCEA to study health care, infrastructure, dementia rates and other major issues, Smetanin’s group has done about “three human years of work” drawing up a new housing affordability index.

They’ve called it the Shelter Consumption Affordability Ratio, or SCAR. It factors in more than the traditional basics — mortgage payments, property taxes and utilities.

“The problem with a lot of affordability indexes is that they are driven by stakeholders (like the big banks, the Bank of Canada or the Canada Mortgage and Housing Corporation) and they are really investment risk barometers that measure their own exposure.

“They don’t really look at human behaviour,” says Smetanin.

RBC issues a quarterly report looking at housing affordability across Canada. Its latest, in August, found that Toronto and Vancouver were edging closer to “risky levels” in the second quarter of this year because of double-digit house price increases that show no signs of slowing.

RBC’s affordability index is focused solely on “housing-related costs” — mortgage payments, property taxes and utilities — rather than “living expenses,” said a spokesperson.

Source:  –  Business Reporter, Published on Wed Dec 09 2015

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