Pros and cons of buying a condo before it’s built

By Todd Fryer:

There are several pros and cons to buying a condo before its foundation is poured or during construction. Here is a list to help you decide the best way for you to go:

 

Pros:

• You can customize your unit and make it your own.
• Buying early in the development is generally the time when prices are the lowest. Typically they appreciate over time. 
• You only have to put down a 15-20 per cent deposit on the market value and when you sell, you reap 100 per cent of the value. 
• More time to save or downsize while the project is under construction. 
• A longer closing period means more time to save for the downpayment.
• Lower maintenance fees. Buying new means the monthly maintenance fee will likely stay the same as the day construction was completed and remain so for about 10 years. 

 

Cons:

• On the investment front, your money is tied up for a few years until it's built - with no return on that until you sell and hopefully the value has appreciated by then.
• You’ve paid out cash for an intangible, something that’s a floor plan layout and artist renderings.  
• Potential delays in completion. Time delays can occur due to weather, labour shortages, supplier problems, inspection problems, etc.
• Layout plans may alter without you having any say in it, as the developer has the right to do so. The hefty sales contract is riddled with phrases like “more or less” and “subject to change without notice,” giving the developer free reign to change the plans on which you initially signed.
• The market may change by the completion date bringing a drop in market value and interest rates may rise or your personal situation may change that would make condo life less appealing. 
• There may be additional costs on closing.
• When you finally get the keys to your condo you don’t own it, yet, until the building is registered, and that could take up to a year. Meantime, you have to pay an occupancy fee to the developer. It’s much like paying rent on a condo you own.

 

Before you buy, make sure you’ve weighed all of the pros and cons of buying a condo on spec so that when you’re ready to move in years later, you love the place and have made a wise investment.

Any questions give me a call
Todd Fryer
Broker
Century21 Aberwin Realty
905 869-3473

Understand what your home insurance policy covers before disaster strikes

Understand what your home insurance policy covers before disaster strikes

The June flooding in Alberta and Toronto’s recent 100+mm rainfall in a single day has people worried about how record rainfall, flooding and sewer backups will affect them in the future. Many homeowners are wondering if their home insurance policies will cover such damage.

 

There are many causes of home flooding and it’s important to know what your home policy covers. It’s also important to understand the difference between the insurance distinctions between water damage and flooding. 

 

Simple water damage due to common flooding, such as burst pipes, a leak in your roof or a broken water heater, are usually covered. Some policies may have additional coverage, for an additional fee, for sewer backups and the corresponding cleanup. This is especially important due to the contamination and mould issues that are hand-in-hand with this type of damage.

 

On the other hand, overland flooding, such as that from excessive rainfall, is very likely not covered under a standard policy. 

 

Some water damage extension policies may cover a range of expenses in an official flood. Additional living expenses if you’re forced to flee your home and even spoiled food in the fridge and freezer from power outages can be covered in these extension policies.

 

Review your homeowner’s policy and discuss your coverage in detail with your broker. Be aware that if you are in a high-risk area, such as on a flood plain or near a lake or river, you will pay much higher premiums and corresponding deductibles. Some Toronto residents are discovering that they are not covered, or that their deductibles are too high to make claims worthwhile, so review your policy thoroughly and make any necessary revisions.

 

As with so many things with homeownership, it’s important to read your documentation carefully and discuss policies with your representative long before you may need to make a claim.

 

Any questions give me a call
Todd Fryer
Broker
Century21 Aberwin Realty
905 869-3473

AUGUST NEWSLETTER

JULY NEWSLETTER

By Todd Fryer

The front door of your home can make a great first impression and can impact the curb appeal of your home. So if it is in need of a makeover or replacement, it will be well worth it and really be a welcoming addition to your home.

There is always the option of replacing your door for something completely new, but if that is not in your budget, there are many ways to spruce up your front door by adding interest and personality.

One of the easiest and most effective ways is to paint it. A coat of paint is not only inexpensive, but is also a quick fix as it takes just a few hours to do. Choose a fresh new colour or make a statement with a bold colour like red. A bright punch of colour that contrasts with the house colour is a great way to revamp the look of your home. Make sure you pick a high quality outdoor paint that will withstand the weather, high traffic and keys.

Another easy way to improve your front door’s appearance is by replacing the door hardware. Replace the dingy and outdated one that’s been on there way too long with a new style of door handle for a sleek look. Adding a beautiful doorknocker will also add a classic look to your door.

Here are a few other crafty ideas you may want to do to your front door makeover:

• Add vinyl details, like your family name or your house number. The options are endless and there are several online companies that will custom design something that’s right for your home. 

• Decorate your door with a classic and simple grapevine wreath and change the decorations on it along with the seasons. 

If your door is in rough shape and a new one is within your budget, you’ll have to decide what type of door you want to purchase. You can select doors made of wood, fibreglass or steel. Do you want it to have windows in it for added light into your home? Also, look at insulation, security, and durability when making your decision. Choosing a new energy-efficient one is also a bonus.

Make some easy changes to your front door and see what a difference it will make to the appearance of your home.

Any questions give me a call
Todd Fryer
Broker
Century21 Aberwin Realty
905 869-3473

Hiring a Mover?

By Todd Fryer:

 

When it comes to moving, hiring professional movers for the job is an option many people prefer. Unfortunately, there are a few horrible stories out there about movers, so you want to make sure that a scam or fraud doesn’t happen to you. 

 

It will take a little bit of time to research and find the right company for your move. Get as many recommendations from people as you can and be sure to ask for references. As you shop around, be sure to do an initial screening of each company you are considering. Go online and do a background check and also check with the Better Business Bureau. Find out how long they have been in business - a few years at minimum and 10 years is ideal. 

 

Next, insist on a written estimate from each company. Do not accept an estimate over the phone. It is a good idea to have an in-home estimate and have the estimator come out to your house. Make sure you show them everything you want moved. Also inform them of any conditions at the new home that might complicate the move such as stairs, elevators, etc. 

 

Review the estimate and ask a lot of questions to address anything you are unsure about. Make sure that the contract covers rates and charges, the mover's liability for your possessions, and confirm dates for pickup and delivery as well as addresses and directions. In general, local moves are charged an hourly rate per worker and long distant moves are charged by weight and distance. Read the estimate carefully. If anything needs to be changed remember to have them send you a revised estimate. 

 

Make sure the company has a license and insurance to move you legally. On moving day, get a copy of the mover’s inventory list.

 

Following these steps will help you feel confident you have selected the right movers to help your moving day be a success. 

 

Any questions give me a call
Todd Fryer
Broker
Century21 Aberwin Realty
905 869-3473

JUNE NEWSLETTER