For investors looking to maximize their return on investment, here’s all you need to know: building an income suite is by far the most profitable homeowner reno.

How do I increase the value of my property? That’s the question on every homeowners mind. There are two key survival strategies. The first is to think long term, have a plan and stick to it. History shows that this plan of action can pay off.

The second tactic is to outperform the market. This means ensuring your property increases in value at a greater rate than those in your surrounding market. One way to do that is through renovations – but not all projects are created equal when it comes to generating a return on investment (ROI).

Here are the top five “renos for ROI”:

1. Building an income suite
Also known as a rental suite, this is by far the most profitable reno a homeowner can undertake. Income suites typically have a 150% to 250% ROI.

2. Painting
This is an inexpensive way to freshen up a property. Picking neutral tones and doing a good job are key. This simple reno project gives 100% ROI.

3. Renovating Kitchens and bathrooms
Kitchens should be bright and spacious with a smart layout. Replacing old appliances with inexpensive and more efficient newer ones also adds a lot of appeal. Bathrooms are equally important. The more you have, the better the ROI. This delivers about 75% to 100% ROI.

4. New Flooring
This has a dramatic impact and hard surfaces are the way to go. Laminate flooring is inexpensive, easy to lay, durable and looks great. With modern styles and improved design, it has become the flooring of choice for real estate investors. New flooring can generate an avg. of 70% to 90% ROI.

Light Fixtures and Door Hardware
These can reveal the true age of a property. Installing proper lighting and a few nifty fixtures in the right places, namely the kitchen and dining room, will brighten up the space and create atmosphere. With the right touch, updating light fixtures and door hardware can generate 60% to 75% ROI.

Going green! Tips for homeowners to make their home more eco-friendly.

Interest in the environment and green building has moved beyond installing energy efficient appliances and swapping out incandescent light bulbs for compact fluorescents. With luxury condos touting eco-friendly features like rain water recycling and construction companies incorporating energy saving features into new homes, it's no wonder real estate professionals say more and more potential home buyers are asking about "green homes."

With demand for environmentally friendly homes blossoming across the country, one way to make a home stand out in a stalled real estate market is to retro-fit it to green standards. Below are some tips from the professionals at Coldwell Banker Real Estate Corporation on how to make your home sustainable, energy- and cost-efficient now, to appeal to eco-conscious homebuyers later.

Replace hardwood floors with renewable materials. While hardwood has been the flooring of choice for the past several years, bamboo floors are much more eco-friendly because bamboo grows quickly and can be easily replaced. In the kitchen, linoleum floors, made from solidified linseed oil, wood flour or cork dust over a burlap or canvas backing, is very eco-friendly compared to modern floor coverings made from polyvinyl chloride.

Don't flush away your money. Consider replacing existing commodes with low-flow toilets which use approximately 20 percent less water per flush, or dual-flush toilets with two buttons to give home owners the choice of flushing with a half- or full tank.

A ray of light.  In many neighborhoods, owning a home on the north side of the street has always been more desirable than ones on the south side. South-facing windows provide more natural daylight, making a home more bright and cheery. More importantly, natural daylight helps keep indoor climate comfortable during the winter months, allowing a homeowner to lower the thermostat. Alternatively, drawing shades during key daylight hours during the summer can help cut down on air conditioning needs.

Green gardening. Sustainable landscaping is becoming all the rage to eco-conscious home owners. Planting native plants, vegetation and shade trees strategically around a home will keep it cool during the summer and block cold winds during the winter. Native vegetation thrives in its preferred environment and won’t require excess water. In addition, concrete driveways and patios can be replaced with permeable paving materials, allowing water to pass through to the ground, in turn reducing runoff that erodes soil and causes flooding of sewer systems.

Switch to green power. The use of renewable energy in a home, such as solar, wind, water or geothermal, greatly helps reduce pollution. However, installing solar panels or wind generators can be enormously expensive. Today, many utility companies in the U.S. are offering home owners an option to purchase a form of renewable energy that does not cost much more than conventional energy. The government also offers many financial incentives to home owners who install renewable-energy systems.

Here are some tips to help you with your spring cleaning.

1. Open the windows and turn on some music. Studies show listening to an upbeat tune while working can actually increase productivity and lower your stress levels.

2. Gather up the clutter and move it to an appropriate location. Everything should have its home.

3. Start your organization of rooms one by one. Taking on more than one room at a time can be overwhelming and unproductive as you may lose your momentum. Don’t allow yourself to be distracted by phone calls, TV or family.

4. If you do not already have a filing cabinet, this is an investment that you should not overlook. File away all important papers from your car insurance to your monthly bills.

5. When organizing your closet, remove all fall/winter clothes and put into piles. One pile of clothes that will be worn next year, next a pile of clothes you wish to donate/sell and finally a pile of clothes that need to be mended or dry-cleaned before storing. Use plastic containers for storage as the glue in cardboard can attract insects.

6. Spring is in the air and so are garage sales. Now is the time to take a good look at items in the house that you have not used and will most likely not use again. Turn those unused items into cash or donate to a Goodwill location near you.

7. Garage clean up. Always make sure to wear a protective mask when cleaning in a garage so you do not have to inhale dust and other lurking allergens. Garage shelving is essential for maintaining organizational order!

8.  In the kitchen take note of the cooking items that you have no used in the past year. Chances are if you have not used them- you can get rid of these unnecessary items cluttering your kitchen.

9. Set a time schedule for organizing each day.

10. Reward yourself after for a job well done.

Proper maintenance protects the value of your home, keeps it in great condition and means less work and fewer costly repairs in the long term.

-       On the pre-possession inspection tour, the builder will explain how to operate and maintain heating, cooling and electrical water systems. You will want to know basic procedures – how to turn the systems on and off and change the settings if required, when to schedule maintenance and who to contact.

-       Before establishing a regular housekeeping routine, take a few minutes to read through the product literature provided by your builder. Follow the directions from the manufacturers to preserve the beauty of your home.

-       Place furniture away from heating and cooling vents. Keep non-carpeted floors in great shape by using easy-to-apply protectors on legs of chairs, tables and sofas.

-       Clean the eaves troughs each fall to prevent build-up of leaves and again in the spring to ensure proper waterflow. Rinsing the siding with water or washing gently with soap once a year will keep it looking great and in tiptop shape.

Ask your builder for more great tips on preserving the beauty and quality of your brand new home. 

The Canadian Renovator’s Council of the Canadian Home Builders’ Association offers a number of golden rules to help renovating homeowners achieve their goals.

- Know what you want. Take the time you need to explore the possibilities for your home and develop a firm plan. Begins with the fundamentals-what do you need and how you want your “new” home to look, feel and work for you and your family.

- Set a realistic budget. Decide as early as possible how much money you want to spend-this allows you and your renovator to focus on the work that is doable within that budget. Experienced renovators can provide sound cost advice.

- Plan for the long term. Thinking ahead avoids short-term renovations that may need to be redone in the future. Discuss your short- and long-term goals openly with your renovator. Professional renovators can conduct a thorough inspection of your home and offer suggestions for the most effective sequencing of work over a period of time.

- Don’t jeopardize the quality of your renovation by compromising on the quality of products or materials. If it’s worth doing, it’s worth doing well, and that means using products that offer the right combination of performance, durability and aesthetics.

- Don’t choose a renovator on price alone. While it is always tempting to go for the lowest price, you need to consider the implications of doing so. Does the renovator understand what’s involved in your project and have the necessary experience? Will the renovator offer a warranty on the work? Will the renovator still be in business if you need to call back?

- Protect yourself. Dealing with a professional renovator is your greatest protection against an incompetent or unfinished job. A written contract spells out the arrangements between you and your renovator and describes your renovation in detail. Professional renovators also carry Worker’s Compensation, liability insurance and any licenses required by your province.

- And don’t buy from a door to door salesperson without carefully checking out the company. Before you enter into any kind of agreement, talk with friends and family. Contact your local Home Builders’ Association to see if the company is a member. Also check with the Better Business Bureau to see if anyone has lodged a complaint against the company.

You’re about to invest in your most valuable asset. Below are our top 8 recommendations to make you more confident as you start your home buying journey.

1.    Your Credit Rating
Getting your finances in order is probably the most important step you should take. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.

2.    Understanding How Mortgages Work
Get familiar with the mortgage laws, structure and options. That way, you will be able to decide on the right loan and lender – crucial to your home buying success. It’s up to you to determine which lender is best for your needs, and it’s always a good idea to have at least a bit of background about the loan process before you talk to a lender.

3.    Getting a Mortgage Pre-Approval
Do you know how much house you can afford? Probably not, unless you’ve talked to a lender. Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer’s bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?

4.    Sorting Out Your Needs and Wants
Buying a home isn’t as difficult as you might think, even if you’re short on funds. But the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.

5.    Preparing to Work with Real Estate Agents
Real estate agents represent buyers, sellers, or both. It’s essential to understand agent duties and loyalties before you make that first phone call.

6.    The Great Home Search
The Internet is a great tool – you can spend endless hours searching the public version of the Multiple Listing Service website. You can also pick up House For Sale magazines and read classified ads in your local newspapers. You might even plan an afternoon drive to preview neighbourhoods. These are all excellent ways to see what’s available out there.

7.    Pre-Offer Investigation
Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Appoint a professional to conduct the home inspection. Study what kind of house it is and consider its market value.

8.    Making the Offer
There’s no one set of instructions that can cover all the differences in real estate laws and customs that exist throughout, so its important to meet with your agent, attorney or advisor to fine-tune your offer and take care of all the contractual considerations.

(Source: HGTV.ca / http://www.hgtv.ca/articles/articledetails.aspx?ContentId=1916&cat=3&by=1) 

Spring can’t come soon enough for a gardener. After months of deprivation, it’s finally time to get back out there. Your garden has gone through a tough few months; this is your chance to help its transition out of dormancy go as smoothly as possible. Get your garden growing again with these handy tips.

Be Well Equipped

Review your gardening tools. Clean off any debris from last year and check hinges on pruners to ensure they are properly lubricated and that the cutting action is still smooth. Also check out your tools for any rust and remove it wherever possible.

Also check your lawnmower. Blades should be clean. Rotary mowers should have a smooth spinning action. Electric and gas mowers should be given a thorough servicing.

Once the ground has started to dry out, get out in your garden for a garbage pick up. Strong winter winds can blow all sorts of papers and other debris into the garden. Get rid of any dead plants you didn’t get around to removing last year; spring is the time to replace them. 

On May 3 Canada’s dollar rose versus the greenback as U.S. stocks climbed, crude oil reached $87 a barrel and gold touched the highest level since December.

The currency has been the second-best performer this year among the U.S. dollar’s 16 most-traded counterparts, trailing Mexico’s peso, on speculation Canada’s central bank will raise borrowing costs either at its next policy meeting on June 1 or the following one in July.

The currency appreciated 0.7 percent to C$1.0107 per U.S. dollar at 4:12 p.m. in Toronto, extending its gain in 2010 to 4.2 percent. It closed at C$1.0179 on April 30. One Canadian dollar buys 98.95 U.S. cents.

Canadian government bonds were little changed, with the 10- year yield down less than 1 basis point, or 0.01 percentage point, to 3.65 percent. The price of the 3.5 percent security maturing in June 2020 increased 3 cents to C$98.76.

The loonie, as Canada’s currency is sometimes known because of the image of the aquatic bird on the C$1 coin, decreased last week on speculation gains on potential increases in interest rates were overdone. It reached parity with the greenback on April 6 for the first time in almost two years.

Crude-Oil Gain

Crude oil for June delivery climbed today as much as 1.2 percent to $87.15 a barrel on the New York Mercantile Exchange. Gold for immediate delivery advanced as much as 0.7 percent to $1,187.80 an ounce, the highest level since Dec. 4. Canada gets about half its export revenue from raw materials.

The euro fell for the first time in four days against the U.S. dollar today, dropping 0.8 percent to $1.3192 on concern the European Union and International Monetary Fund’s 110 billion euro ($145 billion) bailout package for Greece will fail to win support from some of the region’s governments.

Read more at http://www.businessweek.com/news/2010-05-03/canada-s-dollar-appreciates-as-crude-oil-rises-equities-gain.html

It seems like yesterday when the Canadian Dollar was at par with the US Dollar. It took less than 2 years for the exchange rate to equalize again. But what does this mean for the Canadian economy?

Generally, the lower the value of the Canadian dollar, the more Canada was trading. When the dollar was at par in July 2008 it reflected a weakening economy in Canada. But is that still the case?  More than ever Canada's economy is strong in comparison to markets with which we are trading.

In terms of trade a strong dollar weakens Canada's selling points, but could a strong economy within Canada compensate for a loss in trade? We already have a booming real estate market and interest rates haven't been lower in years. Perhaps the way Canada will benefit is through an increase in foreign investment for future gains.

I suppose only time will tell.

What are your thoughts?

In response to the recent Financial Post article (link below), do you feel like the tighter mortgage rules will show a great deal more cheating?

I'm torn because I know that a 20% downpayment from an investor is difficult, though not "impossible" as this article states, to find for some investors. But I have to wonder if it is not exactly what we need to protect the market from people who really shouldn't be investing in some cases. Speaking from personal experience, it takes a good deal of credit and/or liquid assets to manage a property properly and not be hanging on by your fingertips.  After all, if the mortgage payment is reliant on rental income there has to be some kind of padding for carryover for at least a few months in a tenant-less or "worst case" scenario.  

What are your thoughts?

 Original Article:

Tighter mortgage rules may lead to more cheating 

By Andy Holloway, Financial Post

Mortgage fraud may not be the most serious crime in the grand scheme of things, but it's not something the government should be helping. But that's exactly what real estate professionals say is a likely result of the new mortgage rules being put into place on April 19.

 "There's going to be a dramatic increase in mortgage fraud again," says Don Campbell, president of the Real Estate Investing Network, a Calgary-based association of investors who collectively own more than $3 billion in property. "You watch this thing start to take off."

 The reason? It's virtually impossible for investors to buy a third rental property without putting 20% down because the new Canada Mortgage and Housing Corp. rules use a 50% add-back policy instead of an 80% offset for rental income. Essentially, that means investors get less mileage from the rent that is typically used to pay off the mortgage.

Read More:
http://www.montrealgazette.com/business/fp/Tighter+mortgage+rules+lead+more+cheating/2743481/story.html