The Boomer’s Dream – A No Hassle Condo

This makes me think of The Man of La Mancha - The Impossible Dream.  While condo dwelling is highly unlikely to be as unpalatable as living in Don Quixote’s dungeon, itmay not live up to the expectations of the carefree living the Boomer is hoping to obtain. 

When retirement finally arrives, many Boomers have plans to spend time traveling, reading, relaxing by a pool, maybe fishing and spending weeks every year at a cottage.  Having the big suburban home AND having the freedom to live the nomadic life may not be compatible objectives.  This is when the Boomer starts dreaming of moving to a condo.  Boomers were brought up to be owners.  Condos are a type if shared ownership.  Just remember, condos were not likely in existence when the Boomer was an apartment renter and just starting out on his or her own.  Some things are going to be a surprise. 

In life, there are always trade-offs and compromises.  The attraction of a condo is to have the freedom to close your door and take off for months without worrying about your home, to never have to mow the lawn or water the flowers, to have the exterior of your home maintained and to share in the costs of the common parts of the property.  The downside is:

After living in a suburban home with the independence of total ownership, condo living trades some of this for additional freedoms and peace of mind for not having to be personally responsible for the property. 

Don’t tilt at the windmills.  Make sure that you see the windmill and not your dreams   

Photo credit:  Windmill

Downsizing Boomers May Be In For A Surprise

This is a story that is being repeated all over the country.  Boomers want to downsize.  This is hardly a surprise.   The surprise or even shock is that it is going to cost them money to live in less space.  To some, it is so appalling that they have decided to stay in their current home.  

Boomers own their home in the suburbs.  Most are mortgage free.  The home has four bedrooms, three baths, a family room, a rec room in the basement, two or three car garage and a huge yard full of trees and shrubs and maybe a pool.  Okay, there may be variations of this but the essence is – the boomers own family friendly property.  Now……  The kids have finished school and left the nest.  The Boomers are rattling around a big house and find that they live in the kitchen – family room space and their bedroom.  It seems that it is time to move to something smaller.

Here is the rub.  The new home or condo may cost more than the proceeds from the sale of the big home in the suburbs. What?  

  1. The market has reacted to the demand for large condos and retirement homes by placing a premium on the sales price.  Remember, the Boomers are a tidal wave moving through demographic data.  If you, a Boomer, are thinking of downsizing then so are millions of your fellow 1946-1964 birthday buddies. Simple supply and demand economics at work.
  2. Your lovely home is a wee bit tired.  Forty plus years of the same kitchen, with the wrought iron railings, pink carpet, parquet flooring and paneled rec room is telling the story.  Although you have house size you have a house waiting for updating and renovations.  Your home is not competitive.  It is not giving Buyers what they want in updates.
  3. You want to move but you are certainly not going to settle for apples to apples.  Your tastes are now refined and you want granite and a bungalow backing on a golf course with grounds keepers or the whole top floor of a condo in the downtown area.  You are selling a MacIntosh apple to buy an organically grown Star Fruit.   Would you be happy buying the little bungalow down the block from your current home with the need for the same updates as your current home?  Would you be happy with the location?   No?  

After finding out that their home is not the gold mine that they hoped for, many potential Boomer Sellers make the decision to stay in their current home. In some cases, the Boomer will update the family home, adjust the buying expectations and make the move at a later time.  

Photo Credit:  UK Baby Boom and Bust by David Willets

Snowbirds need to be Snowy Owls

It is January.  The cold sets in to the northern states and Canada and whole flocks of people head south for a reprieve from the misery of boots and parkas.  Many people go to the same location year after year.  They develop friendships and links to the community.  It gets to be a home away from home and eventually, what with the crash in home prices, the Snow Bird starts to think of buying versus renting.

Oh, it is tempting to see residential and condo opportunities at an unbelievable price.  For Canadians, the temptation is compounded with the strength of the Canadian dollar.  Buy or rent?  Buy or rent?  I get asked this question a lot.  Mostly these come from friends and acquaintances who have been going to Florida – Texas – Arizona for years.  I have a couple of questions just to make them think that there are both pros and cons to buying.

Now, this might sound like a long list of negatives but…..  The temptation to buy is so great and the deals are so wonderful that the informed buyer needs to spend some time considering all of the pros AND cons.
 
Be a wise snowy owl and do your due diligence before making a buying decision. 
 
Every summer for 20 years I shopped for a cottage.  Something always stood in the way of making the final purchase decision.  Sometimes it was the money or the location or our relocation or the work needed to be done or the worry. Now we are going through the same process over winter vacation properties.  My dream situation would be to have a shared interest with one other couple on a vacation property so that the cost, responsibility and time could all be shared. 

 Photo credit:  Snowy Owl

Ladybug, ladybug, fly away home

Your house is on fire….  The standard Purchase Agreement has a clause saying that the sale is conditional upon the buyer being able to get the home insured. If you have never had home insurance then start shopping for insurance (through an insurance broker) at the same time as you shop for your mortgage.  It takes time.  You want the right coverage and the right price.  Make sure that you get insured on the day of possession at 12.00AM, even if you don’t get the keys until 6:00 PM. 

You cannot get a mortgage for an uninsurable home.

Photo credit:  ladybug

Red River Blues – Living Along a River

Before buying your house along a river find out the history of flooding on that section of the river.  Most rivers, with residential property on the banks, have a conservation authority that established building rules (such as proximity to the bank, type of construction and plantings).  Go to the Authority and find out the flooding history.

Don’t get sandbagged into buying the wrong property. 

Photo credit: 090325-F-0681L-066

In 1997 I lived in Winnipeg, Manitoba.  The Red River flows north through the city up from Fargo and Grand Forks, North Dakota.  What a river!!!  Because it is situated on the prairies there is flat land all along the this northern part of the river.  Flooding is an annual concern.  In 1997, there were devastating floods.  Downtown Fargo was under water.  Millions of dollars was spent saving lives and livestock.  The military in both countries came to the rescue.  Sandbagging, that hard back breaking work, was carried on day and night. 

It is my hope is that the snowmaggedon of winter 2010/2011 will not result in a repeat of the flooding.

If I had a Million Dollars (or more) what could I get?

The Bare Naked Ladies said they would buy a house.  What would they get?

Today there are 125 residential listings of $1,000,000 or more.  In fact, the prices range from  $1 Million  to $9Million.  Of the 125 homes, 26 are priced at $2 Million or more. 

Almost all homes are in the defined Ottawa Real Estate area (there are a couple of listings outside of this area).

There are:

The number of bedrooms range from 0 to 8.  Most of these homes have 3, 4 or 5 bedrooms. 

One home has 9 bathrooms.

My Buyers’ Agent Promise

 

As your Buyer’s Agent, I will:

I will visit you in your new home, get the tour and see how you are settling into the neighbourhood. 

I will come to your housewarming party!

Photo credit:  DSC_0831

This list has been reviewed and modified from a posting by Christine Smith , a Buyers’ Agent in Canton MA.

Tub of Trouble

I have to tell you that this is one of my favourite rants.  You, the Buyer, are looking at a home to buy and there is a wonderful tub in the bathroom.  You see yourself with candles, soft music and bubbles.  Now you need to know if you fit in the tub. Are you kidding?  Do you try out the toilet to see if your a– fits on it?  At the very least, DO NOT try out the tub with your shoes on.  Would you do this at your home?  What are you thinking?  You could leave behind scratches, marks and ruin the acrylic.  Get out of the tub, for pity sakes! 

You may be marking your own territory if you decide to buy.

Photo credit:  Mmmm soaker tub

The chicken or the egg

What comes first, your neighbourhood or your house?  The old adage of “location, location, location” should tell you that you choose your neighbourhood first and then you look for the house.  You can always renovate and change a home but you cannot change the neighbourhood.

Buy where you want to live.

Mortgages – Your Bonus Cheque and Tax Return

There are many conditions that may be included in a mortgage.  In Canada common mortgage terms will be something like 25 year mortgage with a 5 year fixed term.  Buyers often like the security of knowing that their mortgage payments will not change over a 5 year period.  However, the prudent Buyer will also take advantage of any ways to further reduce the mortgage during the term so that, upon renewal, there will be more of the house owned and less to borrow. 

One condition that may be in the terms of a mortgage is the ability to put down money, without penalty, during the term.  This is called a LUMP SUM PAYMENT.  The mortgage condition will say something to the effect that the Borrower can make a single payment annually that is not part of regular payments.  The condition will likely restrict the amount to a percentage such as 10% of the principle. All of the money will be applied to reduce the principal.

 For example you have just received a $5,000 bonus cheque and a $5,000 tax return and are weighing the options of:

If owning your home and saving money is important to the Borrower, then the best tactic is to use all or most of the bonus as a LUMP SUM payment.

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