Good morning to ALL;
It’s been a super busy time for our family as I’m sure it is with most. Between work, children’s’ extracurricular activities (Hockey, swimming etc..) and the home build the days have been melting away at a blistering pace.
I attended a seminar yesterday for realtors and mortgage brokers and after speaking to several mortgage brokers all were in consensus that rates overall are not rising anytime soon. One trusted broker advised me to go with a variable mortgage rate – I will need to roll the construction costs of our build from our lines of credit into a first mortgage when it is complete. I’ve stated in the past that historically variable rate mortgages have performed better than fixed mortgages. There is no right or wrong – Pros and cons to each and really depends on the borrower’s comfort level.
Volkswagen (emission fraud) – Yikes, I feel compelled to vent a little about a CEO who actually comes out and admits to FRAUD!!!! And then is paid $68 million as a severance package? Think of all the mutual funds, Individual Investors, VW employees, consumers and the environment that is negatively affected with this craziness yet the man at the helm gets $68 million instead of being arrested. It reminds me of the financial crisis of 2008 and how no executive has spent any jail time for almost destroying the world economy. FYI – I do not own any stock in VW or any related company. But it may not be a bad time to consider it…..To come out of this VW will have to better than the rest going forward (Even BP survived!)
Well marketed and properly priced homes are selling quickly for significant dollars. Competitive offers are the norm in virtually every neighbourhood.
Real Life example
- 2519 Dundas St. West – Back in January of this year I met with the home owner as she was interviewing several agents to sell the property. Her family had owned the home for 30 plus years and it had been tenanted for the last 9 years. The owner asked me if it was better to sell the home as is or whether it would be better to renovate and then sell. Although I had a buyer already lined up to take the home as is, I advised her that a renovation would bring a much higher sale price that would net her more dollars than the renos would cost.
- After earning her business I got her to meet with 3 contractors and they gave her 3 separate quotes for the proposed renovations (Bathrooms, Kitchen, Floors, removing knob and tube wiring etc.)
- Once the Reno was complete I staged the home (see virtual tour link below), had a pre-listing inspection completed an went to market.
- We listed at an ask price of $599,000
- 40 appointments in 6 days and on the 7th day we received and reviewed 5 competing offers.
- Final sale price $721,529
- Back in January I advised my client that as is (pre-reno) her home was worth roughly 475k-500k max. The increased heated pace of the market coupled with an excellent renovation netted her much more dollars.
- This home represented my client’s retirement funds and truly every dollar mattered.
Virtual Tour Link
Next communication will have the September sales numbers and I expect them to show continued price growth.
Construction blog # 11 – “It’s not my fault – I’ve been framed!”
Every day, I mean every day! Is a roller coaster ride of excited stress. The home is taking shape and I can stand inside any given space and imagine just how much money we owe J (LOL). Seriously, we can begin to visualize the rooms and are already talking about furniture placement. I have stood inside what will be an office and have already decreed it as “MY SPACE!!! – called it”. My past office was in the darkest corner of our old unfinished basement (dungeon) that had a wet floor every time in rained. Really, I would be on my laptop with my feet in a raised position as not to wet my socks.
The framers have been on-site for almost 2 weeks now (8 working days) and they have completed much of the framing. These 3 chaps go through wood faster than a pack of beavers! The lumber yard does not believe me when I call an order the next batch of lumber stating that they need more wood. By end of day tomorrow the 2nd floor will be complete and Monday they will begin on the roof.
Now the major stress is waiting to see if my truss system for the roof will be ready by Monday morning to keep the framers on my site. If not, they will go to another work site and I may have to wait for them to come back. Also, it’s a race to have the structure enclosed (Bricked, roofed, windows etc.) before it gets too cold with below zero temps. Laying bricks in below zero temps is doable but no one recommends it and it adds significant costs (propane heating, tarping etc.) . Everyday matters. Has we begun as originally planned back in April-May (Not July 30th) we would have much more of a time buffer. (Insert swear word of your choice) _______ trusses!
Other issues continuously come up and each seems major at the time but ultimately gets resolved. As crazy as it has been so far it has only been manageable with the huge support of our family and friends.
Jorge has been helping me (huge!!!) to navigate through the process and lining up some trades people. Of course we have also squatted at my in-laws home now for almost 7 months and been supported in so many other ways.
Will keep you posted on progress and problems.
Have a wonderful weekend, Anthony