OTTAWA, October 8, 2010 — The seasonally adjusted annual rate1 of housing starts was 186,400 units in September, according to Canada Mortgage and Housing Corporation (CMHC). This is down from 189,300 units in August.
“Housing starts moved lower in September due to a decrease in urban single starts in Atlantic Canada and Ontario,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Multiple starts were unchanged.”
The seasonally adjusted annual rate of urban starts decreased by 3.3 per cent to 163,200 units in September. Urban multiple starts were unchanged in September at 99,600 units, while single urban starts moved lower by 8.1 per cent to 63,600 units.
September’s seasonally adjusted annual rate of urban starts decreased by 23.7 per cent in Atlantic Canada and by 10.9 per cent in Ontario. Urban starts increased by 6.4 per cent in British Columbia, by 3.9 per cent in Quebec and by 0.6 per cent in the Prairie Region.
Rural starts2 were estimated at a seasonally adjusted annual rate of 23,200 units in September.
As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.
For more information, call 1-800-668-2642.
1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment makes it possible to highlight the fundamental trends of a series. Reporting monthly figures at annual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.
2 CMHC estimates the level of starts in centres with a population of less than 10,000 for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, CMHC conducts the survey in these centres and revises the estimate.
Buying a new home is one of the most important decisions you'll ever make. So why should you leave it to chance? When you fail to pick the right real estate salesperson, you're doing just that. The real estate agent you choose can make all the difference in determining where you live for many, many years, or possibly the rest of your life. Let's look at some useful ways to ensure you'll find the right person for the job.
Research on Your Own
Before selecting a real estate agent, it's wise to do your own research about the real estate market. You should know what you're looking for, how much you can spend, and where you wish to live. Use the Web to gather information or attend a workshop for buying a home. These resources can help you understand home pricing and how to make offers, how to choose a good neighborhood, your legal rights when purchasing a house, financing procedures, and more. The more educated you become on your own, then the less likely you are to hire the wrong real estate salesperson.
Get Recommendations
Instead of blindly picking a real estate agent through the Yellow Pages or an online directory, ask friends or relatives about agents they have used in the past. Find out what their experiences were and whether or not they still feel it was the right choice. You can ask relatives, co-workers, neighbors or anyone you trust for recommendations.
Don't Feel Obligated
Speaking with a real estate agent does not obligate you to buy a home through them. In fact, you should interview with several agents before selecting one. Find a salesperson you feel comfortable with and that you feel is knowledgeable, but not pushy. The agent should be truly concerned with your needs and desires. Notice if the agent asks lots of questions to get to know you and your home needs. If not, he/she is probably not interested in finding the best possible home for you.
Credentials and Licensing
Ask about the real estate agent's credentials and licensing. Is he/she a full-time, licensed agent? Is he/she a member of a national or local trade association in your area? If so, this can mean added protection for you - the consumer - when making a home purchase.
Fees, Paperwork and Financing
Before settling on any one particular agent, ask about fees and contracts (if a buyer's agent), financing options through the agency if available, and current interest rates. If you already have a mortgage broker to work with on your mortgage, let the real estate agent know this ahead of time. Having your own source of financing along with a down payment can sometimes speed up the process of finding a home. It lets the real estate agent know that you are serious about moving forward with your home purchase.
You should also ask questions about potential neighbourhoods and schools, statistics for crime rates and past home sales trends, and a list of recent home sales transactions from the agent if available.
As you can see, there's more to choosing a real estate salesperson than merely calling one up. Set aside your emotions and think about the true aspects of buying a home. Keep your cool throughout the home buying process to avoid life-long mistakes.
If you recently bought a home or just want to start keeping tabs on home maintenance, then in doing so you can prolong the life of expensive appliances, plumbing, wiring, and other items in your home. Certain items should be checked or maintained on a yearly basis. Here's an annual checkup schedule to get started.
1. Windows, Locks and Security
Be sure your home remains secure by inspecting all window locks, door locks and your security system. It would be terrible if someone burglarizes your home, and then you discover that your alarm system is not working. Make sure windows are secured and have not been tampered with.
2. Lawn Maintenance Equipment
Check your lawn maintenance equipment such as the lawnmower, electric hedge trimmers, weedeater, etc. to make sure they are working efficiently. You can change spark plugs, clean out debris from the fuel tank, sharpen the blades, add new oil, and check all wire connections and knobs for looseness.
3. Spray for Insects
Right before summer arrives, spray your home inside and out for insects. You should spray all around siding corners, windows and doors on the outside. Also spray around your home's foundation and inside the basement and attic. In the living areas, use a safe indoor bug/spider pesticide to spray on baseboards, in and under cabinets, behind appliances, etc. You might have to spray once more before summer's end, but do it at least once before the summer insects arrive!
4. Appliances
Inspect your appliances to ensure they are working properly. Clean all vents and vacuum the back of your refrigerator if dusty. Have your water heater inspected by a professional plumber if possible.
5. Outdoor Wooden Structures
Check outdoor wooden structures such as wood columns, a wood porch or patio, wood walkways, etc. for signs of decay or turning of color. Some wood needs to be treated every couple of years to stay looking new.
6. Basement and Attic
Check the basement and attic for any signs of moisture or mildew. Look for signs of rodents and any points of entry where they may enter your house. In the basement, notice if there are cracks in the foundation, and fill and seal these immediately.
7. Main Filters
Check all main filters for central heating and air systems as well as water filters. Some have filters that should be changed every couple of months while others have a large filter that may last a year or so. Ask your heating/air installer how and when to change all filters.
8. Water/Sewer Inspections
It's a good idea to have a plumber come out and inspect your plumbing once a year. Ask him to inspect everything from faucets to pipes under the house to water heater lines. Some plumbers can even check gas water heater lines. If you inspect them on your own, look for leaky areas or loose fittings. Check your water meter, well pump and septic tank to ensure all are working properly. You should have your septic tank pumped every few years (depending on its size and age).
9. Fire Prevention
Test batteries in all smoke detectors and carbon monoxide alarms. Also, make sure all fire extinguishers are working properly. Check your home inside and out for possible fire hazards.
10. Prepare for Winter
As cooler weather arrives, it's a good idea to drain all water hoses and outdoor faucets to prevent damage from freezing. Also, remove or cover any window unit air conditioners. If you have a fireplace, have it cleaned and checked for animals, debris, etc. Change all heating filters, and even drain your hot water heater if necessary. Also, trim branches away from your home's roof as fall arrives.
With this yearly home maintenance list, you can save yourself many dollars down the road by keeping your home in tip-top shape!
One way many folks earn an additional income or even their primary income is by becoming a landlord. Perhaps you're thinking of renting out an additional home that you own or buying investment properties for rental purposes such as condos, mobile homes or an apartment complex. No matter how you go about it, being a landlord has advantages and disadvantages. Here are some pros and cons to think about before diving into this new venture.
Landlord Advantages
One of the greatest advantages is the income that can be produced from rental properties. You can potentially increase your income by improving on properties and renting them for more or by adding other properties to your assets. You can also get to know some great people. Although you don't actually have to oversee every aspect of a tenant's life, being a landlord allows you to meet people and it provides the opportunity to help others find a suitable place to live. You can be a great landlord by always making sure the home/apartment is comfortable with all appliances and utilities working properly. In doing so, you can reap the rewards and profits of having long-term tenants.
There are tax advantages as you can deduct expenses from your landlord income when you need to make repairs or buy items for the property. Advertising your property through news ads, the Internet, etc. is also considered to be a business expense. Also keep in mind that while you're renting the home or property, it will build value over time as you build equity. For certain vacation rental properties, you can use the property for family getaways while renting it to other vacationers for the remainder of the year.
Disadvantages of Being a Landlord
Although the profits can be substantial, being a landlord isn't all fun and games. You must select your tenants carefully. You'll be responsible for tenant interviews, credit and reference checks, and creating a rental or lease agreement. You must make certain decisions such as whether or not to allow pets (indoors or outdoors), if the rent will include utilities, lawn care or other necessities, and what type of security deposit will be required.
Being a landlord means you are liable for most repairs to the home including plumbing, certain appliances, electrical and heating/air units. You are also required to fix roof or floor leaks, rotted flooring, and broken fixtures. Also consider if you are willing to take measures to evict someone that does not pay their rent as agreed. You may encounter tenants with health problems or other financial emergencies, so you will need to determine how long you can allow them to miss their rent (if any length of time). And remember...not all tenants are clean or friendly. Some will trash your place while living there or when getting ready to move out!
These pros and cons should be considered before taking on the responsibility of becoming a landlord. As you can see, being a landlord can be rewarding but also stressful at times.
Congratulations! You’ve just bought a new home; a place to call your own. It’s exciting that’s for sure. But before you can sit back and relax there are a few remaining costs to contend with. Make sure you’ve budgeted accordingly.
Legal Fees:
You will require a lawyer to help you through the legal processes of the title transfer etc., the cost for this can vary greatly from lawyer to lawyer. Oftentimes a real estate salesperson or mortgage broker can recommend a lawyer whom might be able to offer a deal or discounts.
CMHC Insurance:
If you happen to purchase a house with less than a 20% down-payment, you will be required to pay a premium to insure the mortgage. More often than not, the option of adding it into your total mortgage is the most popular option. This way, it will not be a part of your closing costs and the amount is made easier to pay as it is spread out through your mortgage payments instead of a one time lump sum.
Home Insurance:
Home insurance is something you will need to protect your newly acquired asset. Different insurance companies will have varying rates depending on the coverage you would like for your home. On the other hand, when buying a condominium unit, the insurance for the building is included in your maintenance fees and will not show up as a part of the closing costs.
Land Transfer Tax:
This must be paid on all real estate purchases. The more expensive your home is, the larger the tax will be. In Ontario it is calculated via this formula:
Up to $55,000 * 0.5 % of total property value
From $55,000 to $250,000 * 1 % of total property value
From $250,000 to $400,000 * 1.5 % of total property value
From $400,000 up * 2 % of total property value
The total cost from each segment is added which results in your final land transfer tax cost.
Moving Costs:
Lastly, keep in mind that moving your life from one location to the other will be an arduous task. If you feel that it will be too much for you and your friends to manage, consider hiring a moving company. It will put a dent in your wallet, but it will bring much more comfort and relaxation throughout the closing process.
A brand new start to your life is extremely exciting; but at the same time, being bogged down by unexpected and unaccounted for costs will ruin your blissful moment. Make sure to keep these costs in mind before deciding on your new home!
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