Do you ever wonder how your own behaviours and expenditures as a home owner stack up to the norm?

According to a report released by the Canada Mortgage and Housing Corporation (CMHC), approximately 1.7 million households across 10 major city centres spent almost $21.3 billion on renovations to their primary residence in 2008.  About 35 percent of households spent $1,000 or more on these renovations.

Other highlights from the survey include:

 *  The most popular reno was painting or wallpapering a room, with 28% of those who renovated stating they had undertaken this type of renovation in 2008.  Remodelling a room or installing wall to wall carpeting or hard surface flooring came a close second at 27 percent.

· Of those households who renovated in 2008, about 75% did alterations and improvements to their homes, 46 percent did maintenance and repairs.  The survey further noted 19% completed both maintenance and repairs and alterations and improvements in 2008.

· The main reason for renovating given by the renovating respondents was that they wanted to add value, update or to prepare their home for selling.  Second most popular was that the dwelling needed to be repaired.

· Renovating to increase energy efficiency was popular in Halifax and Ottawa in 2008.

· The majority of those households who renovated, hired a contractor to do all of the work (39%);  while 30% did the work themselves or with help of family/friends and approximately 25% both hired a contract and did some of the work themselves.

· Of the homeowners surveyed across the 10 major centres, an average of $12,600 was spent on renovations, which is down approximately $200 from 2007. 

· The survey found that householders living in older homes spend more on renovations.  $20,000 on average was spent on renos to home built between 1921-1945, while in newer homes built between 2006-2008 spent around $7,500

· Of the renovating households, 46% stayed on budget with their renovation costs, while 38% went over budget.

· Close to half (46%) of all homeowners included in this survey indicated having an intention to undertake home renos of more than $1,000 in 2009.  This is more than the number of households who DID undertake renos in 2008 (35%.)

• The number one method of paying for renovations in 2008 was from savings (almost 75%) as opposed to around 26% using credit cards or lines of credit.

I was so excited after reading a news release about the old Tremont Hotel building in downtown Collingwood, Ontario, that it was hard to get to sleep.

As I mentioned in another post on the subject,  the Tremont building has sat neglected and abandoned since the town purchased it several years ago with the intention of tearing it down for parking.  Since the building is located in the Heritage District and is considered to be an exceptional heritage asset, it would have been a horrible shame.  Thankfully, the current council stopped to reconsider that decision and ultimately put out a request for proposals to the public.

Recently, Collingwood council accepted a proposal from local residents, Richard and Anke Lex.  Rick is a developer and also the current president of the local chapter of the Architectural Conservancy of Ontario  and a noted heritage proponent within the community.   Anke is an artist specializing in gorgeous maiolica pottery.  The combination of their skills are a perfect fit for a plan that is an exciting model of combined heritage preservation and environmental sustainability.

According to the media release, "The project involves the preservation, restoration and revitalization of an important designated building in the Collingwood Heritage Conservation District and its adaptive reuse to provide commercial opportunities and live/work space for the creative sector.  The building will incorporate sustainable and environmental measures along with heritage preservation.  Some of the green energy components that the building will feature include solar PV and solar thermal as well as grey water recycling and heat recovery."  I think the concept of live/work units is a fantastic approach that is sure to garner significant interest.

For the town, this plan may also solve the other problem residents have expressed about the lack of parking for the new library being built next door.  The Lex's have confirmed that their plan allows the Town of Collingwood to retain over three quarters of the property for parking.  The Lex's state that work is to commence this summer and that it will include restoration of the building's 1889 façade. 

This is a wonderful example of an adaptive reuse of a heritage building that will have new life in a sustainable fashion.  Instead of becoming landfill, this landmark building is now destined toill become a jewel in the downtown core.

Ha!  Got ya with that headline!  Read on...

Back in September 2007, I wrote about our foray into the world of real estate investment.  Hubby and I purchased a condo in Collingwood, Ontario that we rented to a fantastic family and, we are still very happy with our decision.  There's more though.  One never knows where things can lead and many things have happened since then.

First, I was elected to the board of directors of the condominium corporation last year.  It's been a tremendous learning curve but one I am so glad to have taken on.  Having book knowledge of the Condominium Act and all of the inner workings of a corporation is quite different than having practical knowledge as I do now.  Our little corporation may in fact be one of the more complex ones in the area for a variety of reasons and has therefore exposed me to a very wide range of issues from how parking is enforced to condo budgets, reserve studies, property maintenance and management.

When the condo development was first built, it had a playground for the children but over the years, it fell into disrepair and ultimately, it all but disappeared.  Residents have called for its refurbishment for a long time now but money was an obstacle.  This week, all that has changed.

At our last annual meeting, we put forward the idea of establishing a task force of residents to put together a business plan.  It was astounding to see almost every single person at the meeting step up and volunteer to be on the committee.  For the next two months, they worked together.  Our own tenant used his engineering skills to pull together a design.  The parents of one of our residents  donated a swing set and slide.  Other people donated time and equipment for land preparation and, a local company donated tires for edging and playing.  Before you know it, we had a very workable plan at a relatively minor cost.

This past week-end, we called for volunteers and the turnout was outstanding.  From 8 am to 6 pm, residents, property managers, owners and others worked side by side to build the playground.  It was accomplished in a day.  There was a BBQ.  There was lots of laughter.  The kids starting playing before the work was finished.  It was an amazing day.  More than building a playground, it was building a community. 

The June stats are in and there are some pleasant surprises and some very positive news.  Look at this chart:

For the third straight month in a row, we saw the number of MLS® listings for the month drop below 2008 levels with 11.6% fewer new listings when compared to June 2008.  The BIG NEWS however is this... for the first time in 14 months, the number of sales for the month exceeded the previous year.  Yes, for the first time since April, 2008, the number of sales last month exceeded June '08 by a substantial 16%.

June also had the highest number of sales (206) by month since last August.  With listings down by 13% over last year and sales up, the tell tale sales-to-listing ratio tells the story of a market quickly returning to balanced market conditions.  While the YTD ratio sits at 26.22%, the ratio for the month of June climbed to 39.77%. 

Looking strictly at year-to-date (YTD) figures for the first half of this year, the average residential sale price was down about 2.9% compared to the same period as last year however, this is not an indication of actual values. The absence or presence of sales in the high or low ends of the market quickly impacts averages.

As has been the case for many months now, the majority of sales activity has taken place on properties priced below $300,000.  Most sales (86) were between $150,000 to $250,000 followed by the 250,000 to 350,000 bracket with 49 sales.  There were also 21 sales priced between $350,000 to $500,000.  Notably, there were 2 sales over the $1 million dollar mark in June and another 5 sales between $500,000 and $800,000.  Most luxury home sales have occurred this year in the last two months suggesting that we are seeing signs of renewed interest or confidence in the upper-tier market.

Looking at individual areas is always interesting.  For example, Clearview had a great month with 22 sales reported in June compared to just 7 in the same month a year ago.  In Collingwood, sales were on par while they were up in numbers in Grey Highlands, Blue Mountains and Wasaga Beach.  Meaford had 4 fewer sales than in June '08.  All of these continue to gain strength each month.  The 12-month average RESIDENTIAL sale price sat at $273,941 at month's end.

Sales of condominiums held their own again with 24-25 sales in each of the last three months returning to the levels we saw in the summer of 2008.  Vacant land sales have risen substantially to monthly levels not seen since the records set in the summer of 2007.  Over-all, residential properties on average are selling at 95-95% of their asking price.

Buyers are continuing to voice that they feel we've reached and perhaps passed the bottom of the market and that they feel now is the time to buy.  They see the return to competing offers and rising interest rates and express more confidence that prices have bottomed out.  Having said that, the properties that sell are generally only those that are well-priced and well presented. Buyers are looking for value and opportunity plus, they still have a great deal of choice with 2130 properties currently available for sale in the Georgian Triangle area. 

Note:  All data was obtained from the MLS® statistics provided by the Georgian Triangle Real Estate Board.

One of the things I've enjoyed most about being part of the Active Rain family is connecting with REALTORS® from all over the continent.  There's a dynamic, intelligent and caring community of people in our business and, I've always learned or been inspired by the posts I've read.

Two of the people I've had a chance to meet on a couple of occasions now are Kathy Clulow and her hubby Barrie from Uxbridge, Ontario.  Last week they made the very good decision (shameless plug alert) to  have a mini-vacation in the Collingwood - Blue Mountain area and we were able to get together for lunch.   I always learn something from our conversations and very much enjoy the time spent together.

Kathy shared a few photo's with me from their recent trip.  The first was taken at Northwinds Beach in Craigleith which is known as the home of board sailing.  Timing is everything and here she captured a kite boarder in mid-flight:

The second shot here is a remarkable capture of the Inukshuk at Sunset Point Park in Collingwood at sunset. 
 

Isn't it awesome? As the Collingwood, Blue Mountain and Wasaga Beach areas are vacation paradises, I'm guessing some of you reading this may also visit our area this summer.  Consider this your invitation to lunch!

Before we go any further, I have a project for you.  Log onto Google or your favourite search engine and find out who regulates new homes sales people in Ontario.  Specifically, new homes sales people who are not licensed under the Real Estate and Business Brokers Act.

Okay, I know you didn't bother even though I've just spent over an hour doing just that.  The answer is: nobody.  Of course there is consumer protection legislation that prohibits anyone from providing misleading or false information but, there is no regulation of unlicensed sales people working for a new home builder or developer.

Although there was a heavy lobby proposing licensing and regulation of these folks, the latest Real Estate and Business Brokers Act of 2002, specifically exempted " full-time salaried employees of  new home builder or developer who act for or on behalf of his or her employer in respect of property situated in Ontario" from the legislative requirements.  Incidentally, there are others exempt such as:

• certain assignees, custodians, liquidators, trustees or other persons acting under specific legislation or under the order of any court;
• a lawyer who is providing legal services if the trade in real estate is itself a legal service or is incidental to and directly arising out of the legal services;
• a person's personal interest in real estate, unless the trade results from an offer of the person to act or a request that the person act in connection with the trade for or on behalf of one of the other parties to the trade; and
• a person who trades in real estate solely for the purpose of arranging leases to which the Tenant Protection Act, 1997 applies, such as residential leases.

Now don't get me wrong.  Here in the Collingwood area, I have generally found that the in-house developers sales people are very nice people who are hardworking, capable and honest.  What bothers me though is that the consumer doesn't always realize or think about who that person is representing.  Of course, it's the developer.  The other thing that bugs me is that the legislation specifically says the exemption applies only to salaried employees yet I know for a fact that many in our area are paid on commission. 

Under current legislation, or should I say the absence of it, there are no requirements for new homes or condos to be sold by licensed salespeople, and, there are no rules governing their conduct comparable to those in place governing licensed real estate salespeople.  Licensed sales people are subject to strict regulatory requirements and specific Codes of Ethics that govern things like duty and loyalty to clients, disclosure requirements, insurance, ongoing education and so on.  The penalties for non-compliance are severe.

Builder's in-house salespeople who are not licensed sell millions of dollars worth of new homes in Ontario each year with no mandatory education, training, insurance, regulations or supervision of a Broker.  If there is no legislation, is there recourse?

People who are licensed in Ontario are referred to as Registrants and regulation is administered and enforced by the Real Estate Council of Ontario (RECO). Under the Act, registrants who work at new home sales sites MUST COMPLY with all of the requirements of the REBBA 2002 just as they would in the course of any other work they do in real estate.  In this case, registrants working in new homes sales must:

• Disclose that the brokerage/salesperson are registered under REBBA 2002
• Explain the types of service/representation available
• Document the services that will be provided in a multiple or single representation arrangement
• Document the restricted services to buyers choosing to be treated as customers
• Obtain written acknowledgement that the above has been explained.

Next time you visit a new home sales office, find out if the sales person is licensed or not.  Find out your rights and obligations.  Find out if you can bring in a REALTOR® to represent you.  If not, be sure to do your own careful research about area property values, reputation, the builder's TARION warranty track record, neighbourhood issues, proposed neighbouring developments and hidden costs or fees. And please, please, please... don't sign anything until you have had a lawyer review the agreement first.

Real estate buyers have somehow been conditioned to think that buying a property listed under a power of sale arrangement represents an opportunity for a real deal.
 
I've noticed some REALTORS® capitalizing on this belief by advertising special websites to find out about these listings and, I've seen REALTORS® advertising the power of sale status right in their property ads for a listing.  The truth is, it does make the phone ring.  But should it?

While there are different remedies a lender can access when there is default on a mortgage loan, the most common one by far in Canada is where lenders exercise their right - that is their power, to sell a property when default has occurred.  After following a strict prescribed set of rules about notice to the home owner and other interested parties, lenders can use their power to sell the property.  Note, they do not take ownership.

What many buyers don't know is that the homeowner who defaulted is still responsible for any shortfall in the balance of the debt owing.  That's right:  A lender who sells a property for less than the outstanding debt, may sue the owner of the property for the shortfall.
And here's the rub:  The owner of the property may sue the lender if they can prove that the sale was made for less than the value of the property.

So, the lender has an obligation to sell the property for fair market value or, they risk being sued by the homeowner.  Unlike the homeowner, the lender does not have emotional discretion or motivation.  The lender will have had property appraisals done and this will become the guideline for them as it is justifiable in a court of law.  If a property is not then sold for that amount or more in a reasonable period of time, they may begin to slowly reduce the price in small increments until a sale occurs.

For a buyer, this means that while they may feel they got a "deal," chances of this are about the same, or sometimes worse than with an owner sold property.

Beyond price, there are other potential risks or downsides buyers should be aware of.  Almost all lenders have their own schedules of terms that must be included in any Agreement of Purchase and Sale.  For instance, in no cases will they give any warranties with respect to the condition of the property.  Heck, they have usually not even seen it!  They can also not include any chattels such as appliances or window coverings that may be present in the property as they have no claim on the ownership of those.  They may be there on the closing date or maybe not.  The schedule usually also includes something a bit scary for buyers and that is, a right of redemption by the owner.  This means that at any time, the owner can bring the mortgage back into good standing in which case the sale is called off.  In reality, this very rarely happens as the home owner would have mounting legal costs associated with the power of sale proceedings that they would also need to pay.

In any case, I would always recommend that potential buyers of these properties should speak with their lawyer about the contract.  No one else, including a REALTOR®, is qualified to give you legal advice.

There are things that you can do to reduce your risk including have a home inspection, making enquiries with the municipality about outstanding work orders, zoning or pending special assessments, checking health unit records for information about wells and septic systems if it is a rural property, performing a search of title for surveys or other pertinent documents and so on.  Your REALTOR® and lawyer should be your partner in this fact-finding mission.

When I meet new people who are considering a move to Collingwood and area, I like to give them what I call my "cook's tour."  What people see driving through or visiting on vacation merely scratches the surface and never meets the core of what a town is really all about.

On just such a tour last week, I drove my clients past our water treatment plant.  They thought this was a rather odd thing for me to show off and then, when I told them that Collingwood had one of the safest and best water supplies in the world, I saw them snicker to one another.  I'm sure they were thinking that I was in full sales pitch mode.  But then I explained.

Collingwood's Water Works was established way back in 1889 and later became a public utility in 1912.  With our water supply coming from Georgian Bay, our old water treatment plants was basically comprised of a settlement process and chemical disinfection prior to pumping in to our water distribution system.  That system worked for a very long time and likely because Georgian Bay is known to contain some of the purest water in the world.

Nonetheless, water borne parasites are endemic  and in 1996, the town was gripped by an illness called cryptosporidium believed to potentially originate in water.  The leaders of the day didn't want to take any chances and so a decision was made to build a state-of-the-art water treatment facility which was completed in 1998.

This plant uses ZeeWeed® membrane technology from a company called Zenon which utilizes ultra filtration methods to process the raw water without the use of chemicals for coagulation.  Today, our Water Treatment Plant is the International training centre for Zenon Membrane water treatment facilities.  To date, over 1500 people from cities around the world have visited our plant to look at the ZeeWeed® technology.

In the most recent Ministry of Environment inspection that examined every aspect o the water filtration plant and system, Collingwood scored a perfect 100 per cent.  While I would hope every system in Ontario would need to meet a 100% score, the reality is that only about 200 of 710 water systems in Ontario receive a perfect score.  That's only about 28% and that scares the heck out of me!

So, now you might understand why I like to show off our water treatment plant.  And yes, we do have one of the best and safest water supplies in the world.  Yet another reason to move to Collingwood!

Nothing fires up debate in our fair town of Collingwood better than a plan to tear down a heritage building.  Every time the issue arises, entrenched camps form with flaring tempers, passionate appeals and political hand wringing.  There have often been lines drawn in the sand:  tear it down or, fix it and leave it.  Neither seems right to me.

In the last few years, the issue has come up over and over again as the town struggles with the impact of enormous growth pressures.   Many of the properties are public assets such as old schools and the question of maintenance, restoration falls to municipal shoulders.

Some people look at an old building and see an unsafe, derelict and ugly structure that is better torn down and replaced by something more modern and functional.  Others see a piece of our cultural heritage that tells the story of our people and our town.  Both sides can agree that when it's gone, it's gone forever.

One such property under threat at present is the old Connaught school on Napier Street which is also known as the Contact Centre or Collingwood Fitness Centre.  This town owned structure is one of the last turn-of-the-century institutional buildings left and it features architecture that is never duplicated today.  But it's more than that.  If the walls could talk, it would peal with the laughter of children who arrived by horse and buggy rather than by bus.  It would speak of foreboding teachers who comforted and protected children during two world wars and the great depression.

As a town owned fitness centre, this building has deteriorated due to a lack of maintenance and likely from the effects of humidity related to the indoor therapeutic pool.  It has not been remotely self-sufficient and is heavily subsidized by tax dollars for the relatively few people who make use of the facility.  On the other hand, it is an important public asset and there is a plan under foot to replace it with a more modern facility in a different location.  Bu then what happens to the building?

The Collingwood heritage committee is looking at developing a statement of cultural heritage value for the property; potentially a first step in having it designated as a heritage site.  I can see the battle lines being drawn already.

I am firmly on the side of protecting our heritage assets and believe that there are ways to satisfy all parties.  Creative adaptive re-uses can be found for our heritage buildings that preserve and renew the structures at the same time giving them new life and new use.  Let's hope everyone is starting to think about options for this building; not drawing firm lines in the sand.

This is one of those uncomfortable topics that most people prefer not to talk about but the reality is that it happens.  Job loss, illness or other life events can suddenly interfere with the ability to pay a mortgage and it happens to the nicest people.

If times are tough at the moment and you are struggling to pay the bills because of a change in your life circumstances, there are things you can do and try that you may not be aware of.

First, consider talking over the situation with a trusted friend, family member or advisor to get some perspective.  Sometimes they have an idea or an insight you may not have considered.  Maybe a part-time job would help or cutting back on expenses or selling an asset other than your home.

Secondly, look into credit and budget counselling.  This type of service is offered by community agencies at low or no charge and is totally confidential.  (Beware that there are businesses you might NOT want to deal with and I'd recommend you look at this site to find a reputable service.) Do this at the first sign of trouble so they can help you deal with the monetary issues before they get totally out of control.  Often counsellors are able to assist you to consolidate your debts and, they may be able to negotiate with creditors for special or reduced payment terms.

When it comes to your mortgage, believe it when I say that the bank does not want to own your house nor do they want to sell it.  They want to recover their investment plain and simple.  So, make an appointment with your lender to discuss what options you might have such as restructuring the mortgage to reduce your monthly payments or even defer some at a critical time.  This is also the time to learn about the banks options.  For example, they could require that the property be sold through a process commonly known as "Power of Sale" but again, this is not what they want to do and it is an option of last resort.

If your mortgage is ensured with either Canada Mortgage and Housing or with Genworth, you might be surprised to know that they too are able to assist in this area.  The Genworth website has a "Homeowner Assistance Evaluator" where you can go and complete a brief and anonymous questionnaire.  At the end, they will suggest some solutions that may be available to you such as moving your arrears onto your principal owing, increasing your amortization thereby reducing your monthly payment, deferring payments in temporary situations or even arranging partial payments to get over a hump.  CMHC offers much of the same according to their site so, if you have an insured mortgage (meaning you put down less than 20-25% of the purchase price when you purchased the home), then these are options to explore.

If you have tried everything else possible, then you have two options of last resort.  One is to make a consumer proposal to your creditors surrounding repayment terms of your debts and the second, is to declare bankruptcy.  In either case, you need to visit with a bankruptcy trustee who will assist you through the process.

When money worries start to pile up, they become all consuming and overwhelming.  Know that you are not alone and help is available.  No matter what, you will survive and the sun will rise again tomorrow.  What you need now is to reach out and get help in arranging a plan that will deal with the issues at hand.  All you need to do is make that first call.