THE LOWDOWN ON BEING A LANDLORD

Purchasing a rental property that you yourself can also live in is a great way to get your foot in the door.

It's much easier to afford a property if you have someone paying rent and the best part is you don't even have to put up with a roommate!

It's also easier to maintain your investment property if you're on site to cut the grass and perform other general repairs.

Finally, you’ll be able to write off a portion of your mortgage interest, property taxes, insurance, utilities, maintenance, etc. come tax time.

There are however a few points you’ll want to take into consideration as being a landlord can sometimes be challenging and if you don’t treat it like a business, it won’t be a success.

For instance, having an emergency fund is essential as you’ll be responsible for immediate problems such as a broken furnace or leaky roof as well as overseeing ongoing maintenance.  It's also common to be in between tenants from time to time so you'll have to budget for lost rent.

Furthermore, even the most reliable tenants can be late with their rent which will turn you from investor to collector.  Dealing with disagreeable tenants can also be hard work.  If this is something you feel uncomfortable with, you may want to consider hiring a property manager.


As with any property purchase, it's important to seek professional advice from your real estate agent to ensure you buy the right property, at the right time, in the right location.  If you'd love to operate your own business and are able to plan for the unexpected, being a landlord might be a great fit for you!

KITCHENER-WATERLOO REAL ESTATE MARKET UPDATE

Kitchener-Waterloo saw solid home sales in September.

A total of 470 residential properties changed hands in Kitchener-Waterloo and area through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in September.

This was a decrease of 12.8 percent compared to the record number of sales in September of 2016, but still ahead of the previous 5-year September average of 437 sales.  On a year-to-date basis 5,357 residential units have sold compared to 5,239 during the same period in 2016, an increase of 2.3 per cent.

“We are seeing strong demand continue into the autumn” said KWAR President James Craig.  Residential listing inventory on the KWAR’s MLS® System to the end of September totalled 843, which is ahead of September of last year, but represents just half the number of listings that were on the market in the previous five years (2011-2015) for September.

September’s sales included 285 detached homes (down 14.2 per cent), and 105 condominium units (down 19.2 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.).  Sales also included 38 semi-detached homes (up 22.6 per cent) and 37 freehold townhouses (up 12.1 per cent).

The average price of all residential properties sold last month increased 12 per cent to $455,079 compared to September 2016.  The average sale price for an apartment style condominium was $261,337 for an increase of 6 per cent.  Townhomes and semis sold for an average of $359,448 (up 20.9 per cent) and $372,226 (up 19 per cent) respectively.

Detached homes sold for an average price of $513,873 in September for an increase of 10 per cent compared to a year ago.  “Our local residential real estate market continues to show solid price growth and unit sales,” says Craig who points out that year-over-year price appreciation peaked in April of this year when the average price of a detached home increased 40 percent to $594,108.  Today, on a year-to-date basis, the price of a detached home has averaged $553,029, an increase of 24.7 percent compared to 2016.

“What might seem to be a stabilizing of prices in September may have more to do with the price ranges that people were purchasing in,” says the president of the KWAR.  Craig notes that last month 32% of all residential transactions were in the $300-399,999 range; compared to just 15.6% in April.  “We also saw more transactions in the higher price ranges during the heat of the spring market.  There were 20 sales that occurred over the one million dollar mark in April, compared to only 5 in September.

The average days on market in September was 36, compared to 57 days a year ago.  On a month-to-month basis, it took ten additional days on average from list to sale date in September compared to August.

“The feverish spring conditions have given way to a saner playing field, however an increase in listings would be a welcome shift for homebuyers who would benefit from increased selection across the more affordable price ranges.”

HOW TO KEEP YOUR HOUSEPLANTS LEAN AND GREEN

A few houseplants will offer your home a breath of fresh air!

Houseplants are visually appealing and also improve our home's air quality by adding oxygen and removing harmful pollutants.  Here are a few hardy plants that will thrive in any environment:

1. Spider Plants (Chlorophytum comosum) are great for beginners as they’re almost impossible to kill and they also look great in hanging baskets.
2. Cast Iron Plants (Aspidistra elatior) are foolproof as they only require dim light and don’t need much water.
3. The Lucky Bamboo (Dracaena sanderana) simply stands in water and has been used by the Chinese for centuries in the art of feng shui to create harmony in the home.
4. Accidental drowning is a leading cause of death for houseplants.  Water them thoroughly but make sure there are drainage holes so excess water can escape as you don’t want your plants to be sitting in water.

Improper lighting is another reason why promising young plants become statistics.  It's important to match the lighting needs of plants with the amount of light you have to offer.
Houseplants are a simple and cost-effective way to infuse natural, serene style into your home.  Better yet, research suggests they reduce stress and cold related illnesses and also increase our energy levels so go out today and outfit your home with some of nature's lean mean green machines!

KITCHENER-WATERLOO REAL ESTATE MARKET UPDATE

Kitchener-Waterloo home sales were steady during August.

A total of 483 residential sales occurred through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in August.

This was 19.2 per cent below August 2016’s record breaking 598 units sold but still ahead of the previous 5-year August average of 473 sales.

Residential sales last month brings a year-to-date total of 4,876 residential units, an increase of 3.7 per cent compared to 2016.  “I think we’re seeing some stability return to the market” says James Craig, President of KWAR.  “Last summer’s record setting sales was unsustainable and created a market that no one enjoyed.”

Residential sales in August included 286 detached homes (down 18.8 per cent), and 105 condominium units (down 30.9 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.).  Sales also included 50 semi-detached homes (up 25 per cent) and 32 freehold townhouses (down 34.7 per cent).

The average sales price of all residential sales increased 10.1 per cent to $441,992 compared to August 2016.  Detached homes sold for an average price of $519,910 for an increase of 5.9 per cent while the average sale price for an apartment style condominium was $294,787 for an increase of 26.5 per cent.  Townhomes and semis sold for an average of $338,191 (up 13.4 per cent) and $351,233 (up 17.3 per cent) respectively.

REALTORS® listed 589 residential properties in K-W and area last month which is on par with August of 2016.  Inventory levels continue to be low at just two months of inventory at the end of August.  The number of months of inventory represents the time it would take to deplete current inventories at the current rate of sales.  The long term average of months of inventory for KW and area is three and half months.  Last month there were 800 active listings on the KWAR’s MLS® System, compared to 760 in August of last year.

The average days on market in August was 26, compared to 33 days a year ago.  On a month to month basis, it took three additional days on average from list to sale date in August compared to July.  “While the tight supply in the market continues to favour sellers we are pleased to see more inventory coming online; the steady rate of sales continues to reinforce that Kitchener-Waterloo and area remains an attractive place to invest in homeownership.” says Craig.