Tag Archives: female buyers

The fast track to your first home

Thinking about buying your first home? Saving for a down payment sooner rather than later is easier than you think. Here are nine strategies to boost your financial fitness and fast-track your way to homeownership.

  1. GAUGE YOUR FINANCIAL FITNESS

You need an honest assessment to know which areas of your financial house are on track and which areas need improvement. Get your Financial Fitness Score by taking the Genworth Canada/Canadian Association of Credit Counselling Services Financial Fitness survey at caccs.ca.

  1. CHECK YOUR CREDIT

Order a copy of your credit report from TransUnion or Equifax so you can check your credit score and history, as well as ensure there are no errors. Contact the credit report-ing agency if you identify any mistakes.

  1. BUMP UP YOUR CREDIT SCORE

The higher your credit score, the better the lending terms you’ll receive, whether for a mortgage, car or consumer credit loan. The most effective ways of improving your credit score are paying your bills on time, dramatically paying down – or, better yet, clearing – your credit card balance each month and repaying any loans.

  1. CREATE A MONTHLY BUDGET – AND TRIM THE FAT

Find a template online or download a household budgeting app to your smartphone. How much do you spend each month on rent, utilities, transportation, groceries, child-care, insurance, gym memberships and clothing? You need accurate info about your income and expenditure to evaluate how much house you can afford. At the end of the month, you’ll be able to spot patterns and identify the most effective places to save money, whether your spending vice is a two-lattes-per-day habit or too many taxi rides each month.

 

  1. DETERMINE HOW MUCH HOUSE YOU CAN AFFORD

Use your budget to evaluate how much of a mortgage you can afford. A bank may approve you for monthly mortgage payments of up to 32 per cent of your gross monthly household income, but can you afford it? Work out what your future expenses will look like each month (mortgage + insurance + utilities + taxes + other expenses). Do you make enough to cover this – with enough left over to save? If not, maintain breathing room by opting for a more affordable first home.

  1. START “PAYING” YOUR MORTGAGE

If your future mortgage payments will cost approximately $1,800 per month and you currently pay $1,300 in rent, now’s the time to start setting aside an extra $500 per month, so you can get into the habit of budgeting $1,800 per month for shelter. That will grow your savings faster.

  1. BULK UP YOUR INCOME

Another way to hold on to your money is to make more of it! Consider a second job, extra hours or selling those collectibles on eBay. (Bonus: Fewer boxes on moving day!)

  1. PAY YOURSELF FIRST

Get serious about paying yourself first by setting up bi-weekly automatic transfers from your chequing account to your savings account. Beyond the down payment and closing costs associated with a new home, homeownership might come with surprise expenses like a leaky roof and a broken washing machine. A healthy savings account will make you less stressed about those possibilities.

  1. CONSIDER PROFESSIONAL ADVICE

Once you’re on track, see a financial advisor to work out short- and long-term strategies for your ongoing financial goals, from homeownership to retirement savings. You’ll get more from the meeting if you have already determined your goals and actions.

Source: HomeOwnership.ca

Advertisements
Tagged , , , , ,

MultI-generational home purchases

Buying a house with Mom and Dad? In competitive housing markets, this seemingly unconventional choice can be a smart strategy for attaining homeownership sooner. That said, any financial partnership requires planning. Avoid conflict by clarifying roles and formalizing financial agreements. Here are two common shared homeownership scenarios, along with tips for making a financial arrangement that works for everyone.

FAMILY HOMEOWNERSHIP SCENARIO NO. 1:
Housing your child during university

Why: Renting can be expensive. Some parents may prefer to buy a home for their child while they attend university or college. This option allows families to build their own equity, rather than pay a landlord rent for three to five years or more.

Important considerations:
  • Size & lifestyle: Choose a home that is appropriate for a single young adult, such as a turnkey condo or small bungalow.
  • Future plans: What will happen once your child graduates? Will the property be sold? Will your child take over the mortgage payments? Discuss future plans openly to avoid unpleasant surprises.
  • Written agreement: Use a written agreement to solidify co-ownership responsibilities and expectations, including who is financially responsible for specific homeownership expenses (i.e., mortgage, utilities, taxes and so on), what happens if payments are missed, and what happens if either party wishes to exit the financial partnership.

Ask your mortgage professional about… Genworth Canada’s Family Plan program. This program enables qualified buyers with excellent credit to assist an immediate family member with their home purchase. To qualify, your dependent must have good credit, even if they lack sufficient income to meet typical mortgage qualification standards. The home must meet certain quality criteria, and qualified buyers can make their purchase with as little as five per cent down.

FAMILY HOMEOWNERSHIP SCENARIO NO. 2:
Parents and adult children living together

Why: Forget fleeing the nest. Increasing numbers of adult children are buying a bigger nest with Mom and Dad (maybe even Nan and Gramps too!). According to the 2016 census, a whopping 403,810 households across Canada are multi-generational households with at least three generations of the same family under one roof. Whether you’re inspired by tradition, cost savings or convenience, shared homeownership can be a prudent and fulfilling decision.

Important considerations:
  • Size & lifestyle: Upfront, family members should be on the same page about living arrangements. Will this be a one-household home with shared living quarters? Or will the property be divided into suites, with each household residing in a self-contained unit?
  • Future plans: Involve the whole family in discussions around shared homeownership and include adult siblings who are not buying in with you. Be frank about family assets and the future care needs of older relatives. Is there an expectation that you shoulder this responsibility due to proximity?
  • Written agreement: As with any shared homeownership situation, clarify co-ownership responsibilities and expectations in a written agreement.

Ask your mortgage professional about… Genworth Canada’s Progress Advance program, which helps qualified homebuyers finance a custom-built home with as little as five per cent down. Dual master suites? A bachelor-size nanny suite? An approved home builder or contractor can create a house perfect for your multi-generational family’s needs.

Or, if you’d prefer to renovate a resale home, ask about Genworth Canada’s Purchase Plus Improvements (PPI) program, which can finance home improvements and combine them with your mortgage in one easy mortgage, also with as little as five per cent down. Check out our PPI calculator and guide at homeownership.ca/ppi.

Finally, if your family has immigrated to Canada within the last five years, consider Genworth Canada’s New to Canada program. Don’t let a lack of Canadian credit history derail your family’s homeownership dreams. The New to Canada program can help qualified borrowers who have full-time employment and a strong history of rent and utility payments in Canada buy their family home with as little as five per cent down.

Source: HomeOwnership.ca 

Tagged , , , , ,

Countdown to homeownership

Two years is an important time frame when it comes to buying your first home. According to Genworth Canada’s 2018 Financial Fitness & Homeownership Study, nearly one-fifth of aspiring first-time homebuyers expect to buy their home within the next two years. This preparation period provides a healthy amount of time to get your finances in order. Strengthening your financial position should be a priority given the mortgage stress test criteria to qualify and rising interest rates. Set yourself up for homeownership success with the following tips.

Determine how much home you can afford

Affordability is the cornerstone of responsible homeownership. Buying a home you can comfortably afford will ensure satisfaction and security. Mortgage changes introduced by the federal government over the past two years have helped to reduce the likelihood of buyers taking on more debt than they can reasonably afford. Want an estimate of how much home you can afford? Visit Homeownership.ca and use the What Can I Afford Calculator to find out what mortgage amount a bank or other conventional lender would likely qualify you for.

Build a monthly budget

Once you have an estimate of how much of a mortgage you’d be working with, use Homeownership.ca’s Mortgage Payment Calculator to determine your regular mortgage payments. Build a monthly budget around this amount, plus your other expenses. Live on this new-homeowner budget as early as possible so you get into the habit of spending within your means. Put any savings into your down payment savings account.

Save, save and save even more

Save aggressively so you can build that nest egg; in other words, it would be smart to save for your down payment, closing and moving costs in advance. Think about new ways to save more money every day. For example, even if you prefer to buy your latte at your local coffee shop, switching to the free coffee at your office will allow you to save an average of $3 daily, which you can put into your savings account. In two years’ time, that $1,400-plus will make a nice addition to your down payment.

Improve your credit score

Order your credit report from Equifax or TransUnion and check it thoroughly, contacting the credit reporting agencies if there are any errors. Between now and two years from now, work on improving your credit as much as you can.

Key steps you should take include the following:

  • Always make payments on time.
  • Pay down your consumer debt. (Avoid using more than 35 per cent of your available credit from credit cards and lines of credit.)
  • Don’t apply for more credit. (One exception to this rule is if you have no existing credit card. In that case, apply for a no-fee credit card, use it on a few small purchases and pay it off monthly. This will help you build your credit history.)

Stay the course

Job changes, car financing and applying for more credit can all affect your credit report or mortgage application, or both. Limit any major lifestyle changes or purchases to the start of your two-year homeownership countdown. As you move toward the mortgage pre-approval stage and house-hunting stages, avoid lifestyle or financial changes that could have a negative impact on your credit score or raise questions about your employment history.

Start dreaming and researching!

Use your free time to explore neighbourhoods and research the local real estate market. Go for a long walk and visit some open houses. These obligation free walk-throughs can help you refine your new-home wish list, clarifying priorities versus nice-to-have features. Even if you don’t have children right now, consider park and school proximity because your family situation may change one day in the future.

 

Source: Genworth.ca

Tagged , , , , ,

Benefits of Homeownership Reaffirmed in New Study

Despite deteriorating housing affordability across the country, buying a home is still the more affordable option when compared to renting.

A new report from Mortgage Professionals Canada has determined that, despite the rapid rise in home price, those who are able to invest in a home would end up “significantly better off” in the long term compared to renting.

The report, authored by the mortgage broker association’s chief economist Will Dunning, found that while upfront monthly costs are in fact cheaper in most locations, the “net” cost of ownership is less than the equivalent cost of renting in a majority of cases, and becomes even more cost effective over time.

“The costs of owning and renting continue to rise across Canada,” Dunning noted. “However, rents continue to rise over time whereas the largest cost of homeownership–the mortgage payment–typically maintains a fixed amount over a set period of time – usually for the first five years. The result is that the cost of renting will increase more rapidly than the cost of homeownership.”

Additionally, the costs of ownership include considerable amounts of repayment of the mortgage principal. “When this saving is considered, the ‘net’ or ‘effective’ cost of homeownership is correspondingly reduced,” Dunning added.

On average, the monthly cost of owning exceeds the cost of renting by $541 per month. But when principal repayment is considered, the net cost of owning falls to $449 less than renting.

Interest Rate Scenarios

The analysis compared the cost of renting vs. owning both five and 10 years into the future, with higher interest rates factored into the equation. In all cases, owning comes out ahead:

Scenario #1: If interest rates remain the same (using an average of 3.25%), after 10 years the average net cost of owning is $1,014 less than the monthly cost of renting.

Scenario #2: If interest rates rise to 4.25% after five years, the average net cost of owning falls to $1,295 less than the monthly cost of renting.

Scenario #3: If interest rates rise to 5.25% after five years, the average net cost of owning is still $726 less than the monthly cost of renting.

“By the time the mortgage is fully repaid in 25 years (or less) the cost of owning will be vastly lower than the cost of renting,” the report adds, noting that the cost of owning, on average, would be $1,549 per month vs. $4,655 for an equivalent dwelling.

Canada Still a Country of Homeowners

Despite rising home prices and deteriorating affordability, Canada remains a nation of aspiring homeowners.

The study pointed to the continued strong resale activity as one indicator of this.

Resale activity in 2017 was still the third-highest year on record, at 516,500 sales, just off the peak of 541,2220 sales in 2016.

But other polls have also found a strong desire among younger generations that still dream of owning.

RBC’s Homeownership Poll found a seven-percentage-point increase in the percentage of overall Canadians who planned to buy a home within the next two years (32%), and a full 50% of millennials.

Similarly, a RE/MAX poll found more than half of “Generation Z” (those aged 18-24) also hope to own a home within the next few years.

Perhaps the biggest question is whether those aspiring homeowners will have the means to surpass the barriers to homeownership, namely larger down payments and the government’s new stress test.

“While recent changes to mortgage qualifying have made the barrier to entry higher, those who can qualify will be much better off in the long term,” Paul Taylor, President and CEO of Mortgage Professionals Canada said in a statement. “Given the economic advantages of homeownership, Mortgage Professionals Canada would recommend the government consider ways to enable more middle-class Canadians to achieve homeownership.”

Despite its affordability benefit over renting, Dunning addresses some of the impediments of homeownership, namely the longer timeframe needed to save for the down payment. Despite higher home prices and larger down payments required, first-time buyers still made an average 20% down payment.

Additional Tidbits from the Report

Some additional data included in Dunning’s report include:

  • Average house price rose 6.2% per year from $154,563 in 1997 to $510,090 in 2017
  • Average weekly wage growth was up just 2.6% per year from 1997 to 2017
  • The average minimum interest rate for the stress test during the study period: 5.26%
  • The average annual rates of increase for the following housing costs:
    • Property taxes: 2.8%
    • Repairs: 1.9%
    • Home insurance: 5.4%
    • Utilities: 1.6%
    • Rents: 2.4%

Source: Canadian Mortgage Trends – STEVE HUEBL

Tagged , , , , ,

5 questions every first-time homebuyer should ask their mortgage advisor

MortgageAdvisor1

Photos: James Bombales

Between considering mortgage terms and insurance to viewing properties with your realtor, buying your first home is a busy and stressful time. And when you’re talking about the biggest financial commitment you’ll probably make in your life, it can be pretty intimidating too. While there are mortgage professionals available to provide advice on your home purchase and help find the best mortgage solution for your specific situation, you’ll still need to go into the meeting with your advisor prepared with questions. So even if you’re totally mystified by the mortgage process, these five questions will help set you on the right track.

1. How do I know if I’m ready to buy a home?

“Knowing if you’re ready to buy a home could mean a lot of things and ultimately depends on the person’s own situation,” Wan Li, Mortgage Specialist at TD Group Financial Services, tells Livabl. “Potential homebuyers need to consider how much they’ve saved up for a downpayment, whether they have stable, continuous income and if they anticipate any large purchases or major life events in the future.”

MortgageAdvisor2

2. What factors determine my eligibility for a mortgage loan?

Unless you’re rolling in cash, most homebuyers will need to apply for a loan from a bank or mortgage broker. However, whether or not you’ll be approved for a loan and the amount you’re eligible for depend on many factors.

“Even if you have a large down payment and have cash available, a bank will not lend you money without a job and stable income.” says Li. “It’s also better if you’ve worked for the same company for over half a year or at least have passed your probation period.”

Your credit rating is another important factor that can mean the difference between getting approved or denied for your loan. Credit scores range from 300 to 900 and are affected by late payments and debt level. The higher your score, the better chance of being considered for a mortgage.

“Ideally, you’ll want to have a credit score of at least 600 to be approved by a bank,” explains Li. “Any less and you’ll likely need to go to a private B-lender which aren’t as strict, but have higher interest rates and charge administration fees.”

MortgageAdvisor3

3. How much do I need for my down payment?

Depending on where you live and the total cost of the home, the minimum down payment you need can vary from 5 per cent to 20 per cent. However, if you have less than 20 per cent, you’re going to have to pay for mortgage insurance which protects your lender in the event that you can’t pay your loan.

“In Canada, those who put less than 20 per cent down will have to pay for the Canada Mortgage and Housing Corporation (CMHC) mortgage loan insurance,” says Li. “It’s typically calculated as a percentage of your mortgage and is added to your regular mortgage payments.”

MortgageAdvisor4 (1)

4. What does pre-approval mean and should I get pre-approved?

Before you head out and start viewing properties for sale, it’s highly recommended that you first get pre-approved. A mortgage pre-approval will help you determine your maximum budget for your new home and can also give you an edge on the competition should you find yourself in a bidding war. Plus, once you do find your perfect home, you’ll be able to move on it quickly since you know you’re already pre-approved on your finances.

“Getting pre-approved involves filling out a mortgage application and providing documents on your financial history to your bank or lender,” says Li. “The bank will then look at your current income and credit history to determine if you qualify for a mortgage loan. The assessment will usually include a specific term, interest rate and mortgage amount depending on your situation.”

MortgageAdvisor5

5. What’s the difference between the term and the amortization?

The mortgage term and amortization period are two common phrases in the homebuying process that often cause confusion for first-time homebuyers. The mortgage term refers to the period of time that you have locked in the agreed upon terms and conditions, including the interest rate and monthly or bi-weekly payments towards your mortgage. Five-year mortgage terms are the most common, however they can range from three to 10 years. By contrast, the amortization period is the total number of years that you choose to pay off your mortgage and can be up to 30 years depending on your down payment.

“If you put less than 20 per cent down, your maximum amortization period is 25 years, but if your down payment is more than 20 per cent, you can have an amortization period of up to 30 years,” says Li. “However, while a longer amortization may result in lower monthly payments, you’re also going to end up paying a lot more in interest.”

Source: Livab.com –  

Tagged , , , , , ,

So Now You Own a Home. Do You Know How to Maintain it?

Althea Sandiford took a seven-week home maintenance course to help her tackle projects around her Long Island home.© Heather Walsh for The New York Times Althea Sandiford took a seven-week home maintenance course to help her tackle projects around her Long Island home.Home maintenance classes can help you save money and be smarter about what needs to be done to keep your new home in shape.

After the heady early days of homeownership wear off, first-time buyers often quickly realize that they lack even the most basic skills needed to take care of their new home.

For New Yorkers accustomed to calling the super for every repair, using a drill to hang drapes or an Allen wrench to fix a leaky faucet can be nearly as daunting as the idea of performing brain surgery.

You can get all the inspiration you need from do-it-yourself shows and videos, but what if you don’t know how to properly hammer a nail and don’t even own the right tools?

This is where home repair classes can help, giving uninitiated homeowners hands-on training. Courses cover a range of skills, from basic home maintenance to more elaborate tasks like tiling a bathroom, installing locks and repairing or replacing drywall.

A skilled labor shortage that makes it increasingly difficult to find a reliable handyman is what drove Mary McCabe to take a series of home repair classes at the New York City College of Technology, at the City University of New York.

 

First, she was irked when a tiler took five days to tile her small kitchen floor; then an electrician disappeared after disconnecting the electricity in her two-family home in Bayside, Queens. That is when it dawned on Ms. McCabe: “I trust myself, and I am handy,” she said. “I can learn to do some of this on my own.”

Comfortable around tools, because her father had been a carpenter, Ms. McCabe has taken five classes this year and has used her newfound skills to re-grout her bathroom tiles and fix a lawn mower.

“Most people are intimidated with using tools, but taking a hands-on class really boosted my confidence,” she said. She estimated that she has saved about $3,000 so far, just by learning how to do simple home repairs herself.

Most of the home repair classes in the city are offered through housing-related nonprofit organizations and the continuing education divisions of community colleges, including Bronx Community College. The Home Depot also offers free classes in several Manhattan, New Jersey and Long Island locations.

Just as learning how to save for and finance a home is important to financial literacy, educating yourself on how to maintain your home will not only give you a sense of mastery, but can also help you save money on repairs. And you’ll have a better sense of when you need to call a professional.

a man standing in front of a building: John Rearick has taken classes to learn basic carpentry skills, as well as how to use a circular saw and repair Sheetrock.© Tony Cenicola/The New York Times John Rearick has taken classes to learn basic carpentry skills, as well as how to use a circular saw and repair Sheetrock.

The beginners’ repair classes at City Tech — which include Homeowner’s Basic Tool Kit and Everyday Electricity You Can Do Yourself — cost $70 for a one-time, three-hour night class at the school’s Downtown Brooklyn location. That is not a lot of money when you consider that it could save you hundreds of dollars a year, said Debra Salomon, a City Tech program director in the division of continuing education.

A July 2018 HomeAdvisor survey found that, on average, homeowners spent $6,649 on home improvement projects per household over the previous 12 months. Understanding the need for extra financial reserves to pay for repairs should be part of the educational process of becoming a homeowner, said Yoselin Genao-Estrella, the executive director of the nonprofit organization Neighborhood Housing Services of Queens CDC, Inc.

The Woodside-based community development corporation has classes on first-time home buying and financial literacy, offers foreclosure service and, for about 20 years, has offered an eight-week home maintenance course. The course costs $175 and is held on the second floor of a Sterling National Bank branch in Woodside.

“Knowing how to fix simple things in your home empowers you,” Ms. Genao-Estrella said, especially if you are a low- or moderate-income homeowner. “What’s the point of finally being able to own your home, but you go into debt because you’re always hiring someone to fix everything?”

Ms. Genao-Estrella has taken the course herself. When her home in the Canarsie section of Brooklyn was damaged by Hurricane Sandy almost six years ago, she hired a contractor to fix the structural damage and a plumber for other repairs, but the plumbing problems kept reoccurring.

“I’m not saying I need to become a plumber myself, but I felt I was getting the short end of the stick every time I was having a conversation, especially as a woman,” she said. Knowing how your house works is important, she added, because you can be more specific about repair requests when hiring someone.

And that doesn’t just apply to homeowners: Among the students who have taken the class have been a number of renters, she said: “I think some people have landlords that don’t fix things right away.”

Althea Sandiford, who owns a single-family home in Brentwood, Long Island, said she was able to patch up some holes in her basement and clear a clogged drain in her shower after taking a seven-week home maintenance program at the nonprofit Community Development Corporation of Long Island.

The class size was small — between three and six people, depending on the week — said Ms. Sandiford, an insurance auditor. Classes are held at the organization’s headquarters in Centereach, N.Y., and the fee depends on a family’s size and income, but is never more than $80. Ms. Sandiford’s instructors were licensed contractors who taught her how to repair and replace Sheetrock, how to lay tile and the basics of plumbing.

Before taking the class, she said, she felt like she was “throwing money out the window” on small repair jobs: “It’s just good to have the knowledge of how the small things in your house work. Now I want to do more.”

Tricia Gleaton, vice president of the organization’s homeownership center, said many of the students who sign up for the class have never picked up a hammer, and students include both singles and couples, some of whom have bought fixer-uppers nearby.

Cable channels like HGTV and DIY Network have turned home repair projects into entertainment, but the do-it-yourself industry is extensive in online platforms too. In addition to the content available on YouTube, websites like Hometalk and Terry Love Plumbing and Remodel DIY and Professional Forum and podcasts like Fix It Home Improvement and Fix It 101 have solid followings.

But there is no point in watching and listening to all that content if you don’t know how to use a simple power drill, said Stephanie Lombardi Werneken, director of new digital products at Trusted Media Brands, publisher of the magazine Family Handyman.

Trusted Media started the online Family Handyman DIY University in 2015, so people could take quick classes to learn things like how to buy and use a table saw, or how to drill into materials like wood or masonry. Each class can be completed in one to three hours, and the fee is less than $20. “These basic classes are there so you can be safe, and not burn down the house,” she said.

Premium courses are being offered for the first time this year, for $89 to about $200. They last a few weeks, and students can ask their instructors specific questions online. The courses include kitchen cabinetry making and building your own tiny house, and some courses come with blueprints and other materials.

About 70 percent of the nearly 4,000 students who have taken DIY University’s online classes have been male, and students range in age from 35 to 70, Ms. Werneken said. Some of the older students have taken the class to fix up their homes before selling them, she said, but the younger students seem to have embraced a “DIY holistic-homeownership lifestyle” to mirror that of the popular hosts of some DIY television shows.

Raya Fliker, a homeowner in Port Monmouth, N.J., took a class on wood-finishing at DIY University, and also learned how to tile a kitchen backsplash. With her newfound knowledge, Ms. Fliker built a simple bench to fit into a small nook in her back entryway. She also built a plywood countertop to cover up a granite top on a kitchen island that she didn’t like.

Ms. Fliker, a nurse and mother of three, preferred taking classes online, she said, because she could do it whenever she had time, and the instructors taught her specific tasks that she wanted to learn. “I have loved how every project has turned out, and my husband is now buying tools for me,” said Ms. Flicker, who recently refurbished a mudroom for a friend’s house.

Not every project has gone smoothly, of course. Although she wanted to install a new kitchen backsplash, the granite border on her kitchen counter was extremely difficult to remove, she said. When she pried off a small portion near the refrigerator, Ms. Fliker ended up with a big hole.

“It was too hard for me to handle, so I fixed the hole and painted over it,” she said, after watching a YouTube tutorial. Then she abandoned the backsplash project.

John Rearick, a high school English teacher, took two home repair classes through Neighborhood Housing Services of Brooklyn, a community development corporation with locations in East Flatbush and Canarsie. Mr. Rearick said he took his first class almost 10 years ago after hearing about it from a friend.

He learned basic carpentry skills, as well as how to use a circular saw, repair Sheetrock and build mock flooring. His instructor, Mark Whittingham, a licensed general contractor, owner of M.W. Enterprise and project manager at Thor Helical USA, a masonry restoration firm, taught him how to build things and then take them apart.

“Understanding the mechanics of things helped a lot,” said Mr. Rearick, who lives in a single-family house in Kensington, Brooklyn.

He has since patched up a large hole in his third-floor hallway, damage that happened years ago, after his son and a friend had an impromptu basketball game there. More recently, he replaced a leaking water valve in the basement, which cost him about five dollars. “I did wonder, if I hadn’t fixed that myself, would I have paid someone to do it for me for $200?” he said.

Mr. Rearick repeated the same class this spring — a seven-week course currently held at the Flatbush YMCA, for $175 — as a refresher. “Besides saving money, there are emotional benefits of being able to fix things yourself,” he said.

Both he and Ms. McCabe, in Queens, said they were eager to take more advanced classes. Ms. McCabe said she was interested in hanging a new chandelier in her dining room, installing other light fixtures and changing out some old doors.

Making mistakes in the classroom was key, she said. Her instructor, Peter Grech, who has worked as a superintendent for residential buildings in the city for more than 40 years, reminded her that screwing up the installation of one 20-cent tile “is no big whoop.”

As she put it, “He taught us in a way that made me believe I can do it, and it worked.”

Mr. Grech, who also trains superintendents, makes a point of teaching his students when they should call a licensed professional. One example: You can fix leaky faucets and clogged drains yourself, he said, but you shouldn’t try to move pipes.

“There’s a fine line of being confident and doing things yourself, but you shouldn’t get in over your head,” he said. “And if you’re afraid of doing your first project in your own home, I tell all my students to do it at your in-laws’ house first.”

A list of tools every homeowner should have for basic maintenance.

To be prepared for basic repair tasks, homeowners should arm themselves with a few essential tools. Peter Grech, an instructor at New York City College of Technology, City University of New York, who has worked as a superintendent for various residential buildings, suggested investing in the following:

  • Hammer
  • Phillips and straight-blade screwdrivers
  • Utility knife
  • Speed or combination square
  • Channellock pliers
  • Electrical pliers
  • Electrical tester
  • Circular saw or handsaw
  • Battery drill, at least 18 Volts
  • Set of high-speed drill bits
  • Set of masonry bits
  • Level tool
  • Flashlight
  • Measuring tape
  • Safety goggles

Source: NY Times – By KAYA LATERMAN

Tagged , , ,

Crucial inspections coverage

“Whether you’re thinking of buying or selling, a home transaction can be an extremely stressful process,” said Jackie Chetcuti, head of Home Protection Solutions at FCT. “Buyers often fear that they may have to incur significant expenses soon after acquiring a home, and sellers may be hesitant to get an inspection at the risk of significant repair costs prior to listing their property.

“These products seek to reduce this anxiety by assessing over 400 features around the house through an

independent home inspection, and provide warranty coverage on a property’s larger, stress-inducing blind spots that are often expensive to fix.”

FCT is offering one product for buyers and another for sellers that offer comprehensive third-party home inspections with warranties that are transferable, and that cover up to $20,000.

Home purchases are usually characterized as the most expensive purchases of people’s lives, and with good reason. However, that could become compounded by something a home inspector might miss.

 

“When you go in as a buyer, you get a home inspector, but there’s not such a paradigm shift with a product like that because people are doing home inspections on the buy side,” said Chetcuti. “You get a full home inspection with over 400 points of data on the home, and that comes with a 21-month warranty.”

Real estate sales representatives, in particular, can save themselves headaches will unhappy clients by informing them about their different options, particularly if they’re millennials, she added.

“For a real estate agent, it’s important that people let their clients know that this is an option available in the market. It also provides more transparency around what people are buying,” said Chetcuti. “There’s a demand for information with millennials. A lot of the time, for a realtor with millennial clients, they’ll show up already knowing more about the house before you even take them through it. It puts the information out there before someone gets attached to a home and then finds something out about it.”

Source: Canadian Real Estate Wealth – by Neil Sharma 04 Jul 2018

Tagged , , ,