Protect Your Cash

Here are some more great ways to control your finances and keep your cash:

Join a buying club that offers deep discounts. Buy what you need, and have it on hand, saving late night trips to the expensive quick stop shops. How did they ever get by on those wagon trains to California, without a convenience store?

Remember that the Revenue Canada allows you to take a deduction for donations of clothing, furniture, and miscellaneous items. Whatever they would be worth at a thrift shop is a guide. Simply obtain a receipt, and report it on your taxes. You’ll empty the house of cast off items, get more room in your closet, and help someone less fortunate, while lowering your taxes!

Being fit may require joining a health club, but if you joined and don’t go, it’s time to decide, go or quit. As a half step, some clubs offer off peak or alternate day plans that can help cut the fat out of your budget.

How Useful Are Open HousesÉ

Across the country, every Sunday afternoon, open houses are being held. The question is why? Statistics show that less than 3% of buyers who bought property in the last three years bought the property because they saw it at an open house.

Then why are so many open houses still being held? One reason is that sellers still think that agents should hold an open house. Most sellers see open houses as a way to find a buyer for their home. The truth is, open houses do find buyers, but most of the time not for the homeowner that is holding the open house. Buyers meet an agent, and over time, the better agents match the buyers particular needs to exactly the right home.




When a buyer comes through an open house, he may have simply dropped in to take a look without knowing anything about the homes price range or features. Most of the time the house does not fulfill the particular needs of the buyer.

It would be like going to a car dealer and deciding to buy the first car you see, without knowing it’s price, features, or financing options. What’s the chance that you would qualify or that the car would suit your needs? About the same chance that your home would perfectly suit a “drop-in” buyer.

So what’s the other reason open houses are still being held? Open houses are great ways for newer agents to get their feet wet. By holding an open house they meet buyers who might be interested in another property on the market. So don’t be surprised if a more experienced agent refuses to hold an open house on your property. Seasoned agents know what types of advertising and marketing work best, and won’t use your home as an avenue for finding buyers for other agent’s listings.

Financial Checkup

Look at Money Magazine or other financial publications to get their list of low cost credit cards. Some lower fee and lower interest rate alternatives are available. They’ll help you cut your costs of credit until you can pay off those cards. Some cards carry interest rates in excess of 21%, and require a minimum payment so low that it could take more than 10 years to repay the balance in full. Begin to double your monthly payments on the credit cards with the highest balances.

Open an RRSP or other retirement account to allow you to build your retirement nest egg. If you already have an account, analyze your investments to be sure you’re in the right place for your risk preference, and your goals. An annual checkup is in order.

If only someone had given us a thousand dollars at birth, and we had kept it invested at 12% (high) for 65 years (long time), we could retire a millionaire. It’s true, and it’s not too late. Pick some of these ideas and take action now!

Sell Your Home or Become a Landlord

Renting your home out may seem like a great alternative to selling at a lower price than expected, but make sure you consider the financial implications.

If the main idea in renting the house is to move now and sell later, be sure to factor in the costs which may occur when reconditioning the rental home for sale as a residence. Chances are the aggravation of converting your home to a rental will exceed any contribution to costs or profits.

Most importantly, keep in mind that being a landlord can be difficult. Tenants will demand that repairs and home maintenance be kept up with in a timely manner. Expenses can be quite substantial, so be prepared with funds to cover them. Feel free to ask me for more information on sales or rental, anytime!

Consumer Confidence

The balance of sentiment regarding major purchases has stayed negative for three consecutive quarters, hitting its lowest point in more than a decade. This negative balance of opinion means more households believe it is a bad time to buy a big ticket item such as a home or a car. This indicator is an important factor underlying the housing market. Rising food and fuel cost are continuing to take a large bite of household budgets and households expect finances to dim even further over the next 6 months to reach the lowest point in seven years. For the first time in almost five years more people expect fewer jobs than those who said they expect more jobs. All this leads to a less active housing market and makes pricing a key to turning your home listing into your home sold. The Canadian Real Estate Council and Vancouver Island Real Estate continue to note that there are buyers out there they just want to pay what the market predicts.

Board Stats

The stats for the month of July have just been released by the Canadian Real Estate Council (CREA) for the period ending July 31, 2008 and the stats show an overall decline in unit sales but a huge increase in inventory. The stats released through CREA for the Vancouver Island area show unit sales of 444 units down 28% from last year when unit sales were 616 for the same time period. CREA on a positive note is very firmly stating that properties that are correctly priced are still selling. Listings for July of this year are up 40% from last year but the price increase is very marginal. The Vancouver Island Real Estate Board is made up of over 1200 members and while average sales prices continue to rise slowly VIREB saw monthly average prices come down from the previous month in all zones except Port Alberni. This further shows that consumers are being educated by their REALTORS that properties that are priced right are continuing to sell.

What is the Ideal Selling Price for your House?

“How much can we get for our house?” That’s often the first question asked when putting a house on the market.

Obviously, you want to get the most money possible for your house. But if you set your price too high you’ll scare off potential buyer- and their agent! If you set your price too low you’ll be leaving money on the table. People might also reasonably assume that there’s something wrong with the property. “Why the low selling price?”

Ideally, the selling price should reflect the market value of your house, and should be influenced by how quickly you want to sell it.

What is market value?

It’s simply the price that potential home buyers are willing to pay for a home like yours in your neighbourhood.

Your agent should suggest an asking price for you house based on market research. The analysis should include sales of properties in your area that are similar to your-taking into account the number of rooms. Lot size square footage, special features (such as pools), etc.-and provide a comparison.

For example, if your house has two storeys with three bedrooms and a finished basement the research should include other houses in your neighbourhood with the same features. If these houses sold for an average of $245,000, then it’s a good bet that potential buyers would be willing to pay that much for your house.

An agent will try to find at least three recent house sales in your neighbourhood. (The more recent the better, as home prices can fluctuate.)

Don’t take it personally.

Market value doesn’t take into account any emotional attachment you may have to any particular feature of your house. You may look at your backyard garden with pride and remember the many hours of hard work you spent planning, planting and nurturing. But, no matter how much more valuable you think the garden makes your house. It is still only worth whatever someone else is willing to pay for it.

Need help setting the ideal price for your house, so it sells quickly and for the highest possible price? Call today.

Current Market Outlook

Hello,
On June 26 2008 we recieved this update on the Canadian Housing Market from TD Bank.

• The long awaited end of the Canadian housing
boom has occurred, reflecting more moderate
demand and increased supply of properties
for sale

• Most of Canada’s major housing markets have
moved out of seller’s territory to more balanced
markets

• TD Economics forecasts modest national average
price growth of 2.0% this year and 3.5%
next year, down substantially from the 10%
annual pace of the last six years

• Sales are significantly lower than in the banner
year that was 2007, but they are returning
to 2004-06 levels, held up by solid economic
and financial fundamentals

• Past erosions in affordability are the main factor
behind weaker sales, but affordability is now
set to improve

• Additional supply of homes for sale is booming
out west and new listings must be absorbed
at more conservative prices before demand
can lift prices again. After a pullback over the
next 12 months, Alberta’s major markets will
stabilize and post mild prices gains thereafter

• Saskatchewan is bucking the national cooling
trend, but price growth will come back down
to earth next year

Best Regards,
The Debbie Simmonds Lifestyles Real Estate Team