Stolen Appliances on the rise

The newly built, shiny million dollar homes in central Toronto are the latest target for enterprising thieves. These homes come with shiny stainless steel appliances, high end brands, nothing cheap and cheerful would suffice. Since they are vacant, they sit unprotected, just like bait for the bad guys. They often have security systems, but the latest theft involved cutting the wires to the alarm.  Here is what the Toronto Real Estate Board has just reported.

January 24, 2012 -- A Member has reported that appliances were stolen from a newly built vacant home in the Bayview Avenue and Highway 401 area on January 23.

Approximately $50,000 worth of new appliances was stolen from the home, which is listed at just less than $3 million. Although the home was armed with an alarm system, its wires were cut during the break-in.

Two open houses were held at the property recently, potentially affording thieves the opportunity to familiarize themselves with the home’s layout. Various trades persons were also familiar with the home.

The Member reported that a similar incident occurred during the summer of 2011 at one of the Brokerage’s other listings in the Lawrence Park area.

Also, during the week of December 19, $40,000 worth of new appliances was stolen from a newly built vacant property listed at $2.8 million in the Bathurst Street and Glencairn Avenue area. 

The Members who reported these incidents advise that appliance thefts at newly built vacant homes are becoming a more common occurrence.

Retirement Plan B

We are just getting to the time when the banks will be offering RRSP loans.  Given the poor returns offered by many investment vehicles these days, it's difficult to see how you might get ahead after paying interest to the bank for the loan. I think the funds would be better spent on investing in real estate, of course!

This financial blog offers some very good insight: Boomer and Echo

I found this little poem on the website as well, a great alternative to planning for retirement.

When I’m a little old lady

Then I’ll live with my children

And bring them great joy.

To repay all I’ve had from each girl and boy

I shall draw on the walls and scuff up the floor;

Run in and out without closing the door.

I’ll hide frogs in the pantry, socks under my bed.

Whenever they scold me, I’ll hang my head.

I’ll run and I’ll romp, always fritter away

The time to be spent doing chores every day.

I’ll pester my children when they are on the phone.

As long as they’re busy I won’t leave them alone.

Hide candy in closets, rocks in the drawers,

And never pick up my clothes from the floor.

I’ll dash off to the movies and not wash a dish.

I’ll plead for allowance whenever I wish.

I’ll stuff up the plumbing and deluge the floor.

As soon as they’ve mopped it,

I’ll flood it some more.

When they correct me, I’ll lie down and cry,

Kicking and screaming, not a tear in my eye.

I’ll take all their pens and flashlights, and then

When they buy new ones, I’ll take them again.

I’ll spill glasses of milk to complete every meal,

Eat my banana and just drop the peel.

Put toys on the table; spill jam on the floor,

I’ll break lots of dishes as though I were four.

What fun I shall have, what joy it will be to

Live with my children … the way they lived with me!

-Author unknown

Thompson Okanagan Valley

Homes By Design - featuring an article on British Columbia's wine country. A great place to visit all year around and experience "wine country hospitality".

Homes By Design Magazine

The Mutual Release

This is the document used in real estate when a deal falls through. It releases both parties from the Agreement of Purchase and Sale, the buyer gets his deposit back and the seller is free to sell his house to someone else.

Sometimes there is a bit of confusion as to the difference between a "conditional" deal not going firm, and a firm and binding deal that doesn't close.

Often a home will sell conditional on financing & home inspection. There can be many other types of conditions, such as Solicitors approval, water testing, and even in some cases conditional on the sale of the Purchasers property. However in a hot real estate market, condition on sale of purchaser's property, or SPP, is not very common.

So, let's say the offer is conditional on home inspection. The clause indicates that the home inspection be satisfactory to the buyer, in their "sole and absolute discretion". This means if they aren't happy with the home inspection, for any reason, they can opt out of the agreement. Basically the clause is written in a way which indicates if the conditions haven't been waived by a certain time/date, the offer is null and void.

This is where the confusion sets in. The Seller, now annoyed that the deal is not going firm, threatens not to sign the Mutual Release, which unfortunately holds up the return of the deposit to the buyer. There are very strict rules around funds in a Brokers Trust Account, which indicates the funds can only be released based on certain conditions being met. In this case, the mutual release being signed.

However, they don't have a deal. The conditions have not been waived or fulfilled, and the deal is dead. So the Seller can hold up the return of the deposit by being difficult with respect to the mutual release, or in some cases I suspect it could lead to legal proceedings.

It's a different situation if the purchasers fail to close on a firm deal. Sellers often assume that if a deal doesn't close they are entitled to the deposit. Again, the funds cannot be released from the Trust Account until an agreement is reached. It becomes a legal issue. The Sellers may sue the Buyers for failing to fulfill the terms of the agreement, there could be damages assessed if the home sells for less than the buyer had agreed to pay, and then of course legal costs.

So the difference is, do you have a conditional deal or a firm and binding agreement. Very different situations, with very different outcomes.

Our Broker, Ken McLachlan, has suggested that maybe the solution is to have a small deposit during the conditional period, with a further deposit once all the conditions have been removed. Sounds fair to me.

Heritage Homes

Have you ever dreamed of restoring an historic home? Over the years homes can take on many addtions, renovations and improvements, but often they just end up in disrepair, slowly fall apart and smell like mildew.

Did you know that the City of Toronto has a grant program that provides up to 50% of the cost of restoring a heritage home, up to $10,000? It's called the Toronto Heritage Grant program, check out this link for details: City of Toronto Heritage Grant

Here is an interesting article about a couple that restored a home in South Carolina, built in the 1840's.
Home By Design

Vermiculite Insulation Discovery

There I was, in my skirt and nylons, perched on top of a ladder, peering into the attic space.  The house is vacant and I’m terrified that a bat might fly at me or I will find some other strange vermin that likes to hide in the attic.  I had my safety mask and gloves on, flashlight in hand, looking for VERMICULITE insulation. 

A home inspection had confirmed the presence of this substance in the attic insulation.  This product comes from several different sources, one which contains asbestos.  Therefore my Crime Scene Investigation was to determine if the offending asbestos was present.  I scooped up 3 bags of insulation and headed off to the laboratory in Mississauga to have it tested.

 Turns out I had brought them bags full of cellulose insulation, not vermiculite. Back to the attic I go.  Fortunately for me, another home inspector was at the home, and he was able to identify the product and scooped up a bag for me.  I noted he used his bare hands and no safety mask!

As it turned out, the vermiculite that was in the home did not contain asbestos, whew!

Check out the link to read more about this type of insulation or the services provided by Pinchen Environmental

Beware of Contractors

Having been through a few renovations I understand how important it is to have a good contractor. We have all heard horror stories about shady contractors that take your money and run.

To add insult to injury, if the contractor doesn't pay the trades that worked on your home, they can slap a lien on the title of your home, and don't even have to tell you about it. Years can go by, you go to the bank to renegotiate your mortgage and then can discover the lien, which will have to be cleared. You could end up having to pay the trade, even though you paid the contractor.

For complete details read this article from MoneySense A Contractors Ransom

If the contractor asks you for a lot of money upfront, be very cautious. According to Mike Holmes you shouldn't pay more than 10 - 15% upfront. Additional payments should be only made when certain aspects of the job are complete. You may agree to a schedule that indicates a certain percentage payable when the framing is done, then more when the electrical and plumbing is complete. It keeps them motivated to keep the job moving and protects you from being "taken to the cleaners" when all you wanted was your home renovated.