Your Guide to Living in London

Market Slowdown was expected!

2010-08-31T09:33:00.001-04:00

Market slowdown!
This was anticipated and I believe the market will pick up in September after kids have returned to school; most cottages are closed for the winter, summer vacation is over, teenagers have settled in university and nursery’s swing into full operation. There is a lot of preparation in August for the beginning of our fall routine which starts after the Labor Day weekend. If you are participating in any of the above it’s hard to divide your time into other activities. Real Estate has for the 24 years I have been selling is slow this time of year.
Now let’s add the implementation of the HST which slowed our market even more. The anticipation of the new tax caused a “run” on properties in the spring. Our market corrected for the extra activity through the summer same as it did with the implementation of the GST.
Utility surprises when we opened our bills in July with the new tax and remember Hydro announced in June a 17% increase. That takes a little getting used to!
TGSO, thank god summer’s over! and we return to a normal market.
Is our market going to take off and go crazy? No I think we are going to experience a steady balanced market. If you are selling make sure your property is priced right and you have followed “prepare you home for showing” checklist found at www.link2realty.ca/articles/PreparingYourHomeForShowing.pdf (copy paste in your browser)now is a great time to prepare for the after Labor Day movement!

FREE LEGAL DOWN PAYMENT

2010-06-09T09:34:00.001-04:00

This is a copy paste from LSTAR Bulletin...exciting news

Home Ownership Assistance Program
Good news for your clients who are low-to-moderate income earners! This year, the City of London offers again the Affordable Homeownership Assistance Program. This successful program consists of an interest free loan for qualifying home buyers to assist with downpayment and closing costs.

To be eligible, households must have a gross household income of $55,000 or less, and must be approved for a mortgage at a recognized financial institution. The selling price of the home must be no higher than $140,000. New this year is an increase to the closing cost assistance, which has been raised to 3% from 1%.

The Homeownership Assistance Program is a partnership between the Government of Canada, the Province of Ontario and the City of London through the Canada-Ontario Affordable Housing Program (AHP) which offers people with low-to-moderate earnings the opportunity to purchase a home in London and Middlesex County.

The federal and provincial governments have set the deadline of December 31, 2010 to expend the funding allocated to the City of London. Call me for more details

90% Rule HST

2010-03-11T10:10:00.002-05:00

CRA is offering HST seminar’s to help us understand the new charges and changes coming. I went to one last week hoping to learn something, meet new people and well you never know where your next listing or purchaser will come from! The course was highly informative I suggest you attend one. I am predicting a flurry of activity especially in the renovation business as we approach the HST start date July 2010. Real estate is affected. Anything that had GST is now subject to HST. That adds to the cost of selling a home and to the cost of buying a home.
Like anything there will be a transition. Today I am writing about the 90% rule. If 90% of the service has been performed before July start date then no HST is applicable. Say you list and sell a house in May conditionally. It firms up in June but doesn’t close until August 15th. As the listing agent 90% of your service or work has been completed before July 1st therefore no HST is applicable.
That makes sense to me but to be sure I suggest you document your work just in case 1 day 5 years later you are been audited. My opinion; a lot easier reviewing notes than trying to remember old sales.

Quick thoughts...

2009-07-28T14:10:00.004-04:00

Lots of rain followed by lots of sales. 1 floor homes in Old North and Old South have experienced multiple offers, sales are strong i thnk stronger than other summers. Can this continue? Where are all the jobs coming from? I hear Fanshawe is going crazy with the 2nd career programs. Inteerest rates are really really low. UWO is under new leadership sounds like a new direction. Interesting times ahead.

What are your thoughts?

Bricks & Mortar REAL ESTATE REPORTER

2009-05-25T14:11:00.004-04:00

My June 2009 edition of Bricks & Mortar Real Estate Reporter is now available. Visit here to read.

To receive my newsletter by email, drop me a line at tom@dampsy.ca.

Home sales on the rise

2009-05-12T15:20:00.004-04:00

Sales of detached homes in April topped the same month last year. According to the London St. Thomas Association of Realtors (LSTAR), 666 detached homes sold last month, compared to 654 last April. Total units sold decreased 4.5% because only 138 condos sold compared to 188 in April 2008.

This is the third consecutive month of improvement since January when total sales were down 35% compared to the year before. Prices have also seen improvement; average price of homes sold from January to April is $207,591, down only 1.8% from the same period last year.

New tax credits and programs allowing homebuyers to draw money from their RRSP for home purchases were a big driving force in the market - attracting first-time homebuyers. And with London's diverse economy, we've been more insulated from a sharp downturn in house prices hitting some other cities such as St. Thomas. Heavily dependent on the auto industry, they're really feeling the pinch with a 27% drop in sales in April, compared to same month last year.

Home sales are important economic generators in themselves. A new national study shows each home sale generates $46,400 in additional spending on furniture, appliance, and renovation moving and legal fees. Past recessions have shown that real estate sales typically rebound before the job market and general economy.

Home energy efficiency...consider a voluntary energy audit

2009-05-04T12:08:00.005-04:00

Mary and I just came back from 2 ½ intensive days taking a passive solar course in friendly, rainy Truro Nova Scotia. Make sure you stop in at Murphy’s fish and Chips located on the Esplanade. There is a reason it is rated Atlantic’s best! I am not going to build a passive solar home, but I am going to use and adapt the principles in the course to help make my living conditions more comfortable and cost efficient.

When my buyer is seriously considering a property I encourage them to call the utility companies. This gives you a starting point for the energy costs for that property. I say a starting point because too many questions are unanswered; How hot did they keep the house? How old are the occupants? Who is there during the day? How many hours watching TV? The answer to these questions helps us understand the routine of the house.

An energy audit will help. The government’s new position now makes energy audits voluntary rather than mandatory (yes, that's right; no more mandatory energy audits!). Consider doing one and sharing with prospective buyers, not only will it help the buyer; they may forgo doing a home inspection! Everywhere you look today it is “green” this and “green” that. You can even receive rebates for making your property more energy efficient.

I ask my sellers to tape the heating bills to the furnace. Sharing the costs helps answer a basic buyer question. The rest is educating…you know…for every 2° over 70 can increase your heating bill as much as 15%. Babies and elderly people often keep their homes between 72 & 76. Programmable thermostats reduce heating costs when used properly and increase costs when not.

Back to the passive solar course, I re-learned the angle of the sun between winter and summer and its efficiency time, roughly high noon and 15°- 30° either way. In the winter allow the sun in during the day and let it warm something that can radiate heat. In the summer keep it out to help keep your home cooler. The result is less energy needed to heat or cool your home. I learned a lot this past weekend. Living in an old house our forefathers knew a lot about this emerging technology; history does repeat itself. A penny saved is a dollar earned!

Two similar properties offered for sale, 1 costs $500.00 more to heat…if you were on a budget which would you choose? Which is worth more?

Do you have any tips to share? Are you doing anything to reduce your utility costs without giving up your comfort? Please share.

My thoughts on the new mandatory energy audits

2009-04-28T09:56:00.002-04:00

Energy Audits before you sell your home, I’m not sure on this one.

Pro: Lets the buyer know the efficiency of the property they are buying?
Con: Can be used against the seller in negotiating a final/fair price.

Pro: Shows the buyers where improvements can be made to save money on their energy usages.
Con: Forces the seller to spend $

Pro: National Association of Green Agents and Brokers apparently has a kit for a preliminary examination which points out areas in which small changes can help reduce energy costs and improve a property’s score.
Con: Question: could anybody “cook the books” for a better score?

Pro: Only licensed auditors will perform these audits.
Con: Exactly what does the licensing entail? Licensing plumbers, electricians and carpenters take several years; will an auditor be as educated? After all, they are providing a professional opinion indirectly on these trades.

I read that new windows don’t necessarily save money (energy) compared to old. I believe most building inspectors will tell you my 100 year old windows should be replaced. I get a little anal sometimes and this winter we tested out my “grandparent theory”… Close the drapes! Our living/dining room is 30 feet by 16 feet with 2 large windows facing south and 2 large windows facing west. Our experiment involved opening the drapes one evening, and closing them the next. We found a 4-5° difference in temperature. Our grandparents were right, 5° warmer with the drapes closed! So if you want to be warmer…close the drapes. If you want them open, understand the extra cost associated. It’s your money!

My drapes would be closed for an energy audit. Would I pass or fail? How would we know if any standard testing could be strictly adhered to? Impossible! I am all for reducing costs through education and choices but I don’t believe we should be forced.

Comments Please?

Can't we all just get along?..

2009-04-20T12:23:00.002-04:00

I just returned from visiting my mom in Winnipeg. The Winnipeg news featured 3 top stories throughout the weekend. The flood and how the communities are pulling together helping one another, Susan Boyle the singing sensation from Britain’s Got Talent show - over 35 million views on You Tube within the week - showing us anything is possible, and the unions comments about the Chrysler bail out.

I hate win lose situations; I much prefer win-win. The union has publicly announced they will not negotiate anymore with the government. The fate of the company hangs while this game continues to play out. Windsor with 14% unemployment does not want to afford another plant closing. I hope it is the workers in that plant that are voting for their fate. You see, they are not just voting for their fate, but the fate of many businesses and communities these workers and this company supports. The decision to keep working and take less money during this downturn should be the decision of the people working at the plant…those affected the most.

I know someone who owns a company with a fairly large workforce. The union contract is up in the fall; apparently he has asked to negotiate now so that he can bid on jobs and keep his people working. No work, no pay! Because he does not know what his labor rates will be, he cannot bid on work. Who loses? The worker, you, and me! I am not against unions, but I am against win-lose. Cami kept 2 shifts going on reduced work weeks and unemployment picks up some of the tab. That means we all share in this; that to me is a win-win, working together, supporting our communities together.

Together we stand, divided we fall! As REALTORS® we compete against one another and then turn around and work with one another with one common goal sell a property; make a buyer happy and a seller happy. By working towards a win-win anything becomes possible.

Get Rich, Stay Rich

2009-04-14T10:33:00.007-04:00

March sales in our area rebound with a fury…yeah! Sales were within 7% of last year. I realize we had a pent up of buyers from the miserable winter we had but I am cautiously optimistic. Is our market dead? Nope, I don’t think so, I think we will remain stable and balanced.

I just read a book called “Get Rich, Stay Rich, Pass it on” by Catherine S. McBreen and George H. Walper Jr. Interesting read, a little repetitive for me however overwhelmingly this book goes on about owning investment real estate. The findings are based on 10 years or research interviewing thousands of families. It confirms what I call the “Department Store” effect. At any one point stocks are up and real estate is down or real estate is up and stocks are down. By investing in different areas helps insulate us from challenging times.

I am a REALTOR® so investment real estate works for me ;). Rental income produces a constant monthly return well into our future. In fact, it is something you can pass onto your heirs. Land, “if you can afford it”, can be easier to manage, bigger pay off usually longer hold pattern for a return.

First things first: credit card debt should be paid off monthly, your first investment should be your home and from there carefully consider what could work for you, do you hire a management company or do you take more of a hand’s on approach? Worth discussing further.

Everyone's circumstance is different. There are some very good (as Warren Buffet calls them) cigar butts out there that do not cost a lot of $ (investment) to enter the market. Interest rates are incredibly low, maybe it’s time to take advantage!

I always have time for a coffee or a juice!

New "tenant tax"?

2009-04-08T10:13:00.000-04:00

If the City council approves, owners of small apartment buildings, with six or fewer units, will be required to obtain a license at a cost of $150 per unit every five years to allow for city inspections to ensure housing standards are met.

The new rules would allow bylaw officers to blitz neighbourhoods they believe to be rife with problems, but they would still have to give a month's notice to tenants and landlords before inspecting inside homes.

London real estate market update

2009-04-06T11:00:00.000-04:00

A small drop in sales is good news for London. The London area real estate market saw a decline in sales by 7.2% (detached homes).

The London St. Thomas Association of Realtors (LSTAR) reports 551 detached homes and 118 condos sold in March. The total sales of 669 units is down 10.2% compared to 745 in the same month last year.

This is a great improvement compared to the 35% drop in January, and 30% in February. And when you look at what's happening in other markets, a 7.2% decline isn't so bad.

Prices have remained stable; the average house price for the first quarter of 2009 was $206,944, which is down by only 2.7% from last year.

Active listings in March was up 20% compared to same month last year, while home sales in St. Thomas jumped 14.6%--although house prices in St. Thomas have decreased more than any other London area (down 7.2%)

The London area market is living up to its reputation as a long-term stable market.

The Good, The Bad, and The Ugly of HST

2009-04-02T14:30:00.015-04:00

The Good

Tax experts predict the average Ontario family will be further ahead despite harmonized sales tax. Lower-income families will get hit a bit more, but the tax rebate will cushion that.

Harmonizing GST and PST is good for businesses because it lets them recover money now lost to retail sales taxes and use it for investment in new equipment and machinery. Currently, businesses receive a rebate on the GST, but not PST.

A study of Quebec, Newfoundland, Nova Scotia and New Brunswick - which harmonized their GST and sales taxes - found business investment jumped and prices (of goods & services already taxed) decreased.

In the long run, more jobs will be created (better jobs that require equipment and machinery behind them which may pay better) and increased job security.

The Bad & Ugly

We will be paying more at the checkout.

Homebuyers, especially first-time homebuyers, will find it tougher to afford a home. For a resale house priced at $360,000, a HST could add over $2,000 in new taxes to closing costs. Take a look at the table below:

In total, a HST will add $313 million annually in new taxes to resale home transactions. This will hurt the resale home market, prolonging the housing industry’s recovery from the current economic downturn.

Harmonized Sales Tax for Ontarians

2009-04-02T14:05:00.007-04:00

More taxes to come (Yipee Yahoo!)

Starting July 1, 2010 expect a harmonized sales tax. The McGuinty government announced it will harmonize the GST and PST, causing consumers to pay extra tax on a range of goods & services.

This will increase the costs associated with real estate transactions (legal fees, moving costs, commissions, home inspection fees), which we currently pay only 5% GST on.

And better yet, we will also be paying more for goods & services we use daily: gas, utilities, haircuts. This is in response to the economic downturn; in hopes of raking in an additional $3.5 billiion in annual revenue.

The good news?

- There will be three tax rebate cheques totalling $1,000 for families with household incomes of less than $160,000 and $300 for individuals who make less than $80,000 a year.

- Some basic goods will be exempt from the blended sales tax, such as children's clothing, books, diapers and new houses costing less than $400,000.

Mandatory Green Audits

2009-03-16T12:39:00.007-04:00

Thinking of selling your home? You won’t be able to sell your home or condo without first getting a home energy audit, which will cost you $300.

Under the New Green Energy Act, you will now have to get a private contractor to do an energy audit before selling, but there will be no requirement to take any action. This audit is simply intended to inform potential buyers what state of energy efficiency a property is in so they can take action if desired.

While this adds an expense to homesellers, it is predicted that 50,000 new jobs will be created.

This is anoter step to encourage electricity conservation and encourage renewable sources of energy. In Portugual, solar systems are required in new houses.

Advanced warning

2009-03-09T11:28:00.002-04:00

If you’ve ever waited a long time for a train to clear a crossing – and it’s a rite of passage for Londoners – then here’s news: City council has approved a pilot project to provide advance warning a train is crossing.

For starters, the project will be centred on the CN Rail crossing of Colborne St. south of Bathurst. Signs will be situated on York and Horton, about two blocks east and west of Colborne, that will signal approaching motorists the Colborne crossing is blocked by a train. Motorists can then plan a different route.

If the idea works, it will be rolled out to other locations in the city.

Free Home Buying/Selling Seminar

2009-03-09T11:23:00.002-04:00

Tomorrow I am hosting another Home Buying & Selling Seminar, with Andrew Young of Scotiabank.

We have added new topics; learn about the different types of Government Programs, Incentives & Grants that can help you own your home quicker than you think. Currently, there are several programs available that is offered by the local, provincial, and federal governments.

It will be hosted at the Scotiabank on 301 Oxford St. W (right inside Cherryhill Mall) 7-9pm. If you would like to RSVP, give me a call 519-642-0619 or send me an email tom@dampsy.ca

It's that time of year again!

2009-03-05T11:23:00.003-05:00

The March edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Visit http://dampsy.ca/NewsletterMarch09.pdf to read the newsletter today. You'll find valuable real estate information & tips such as: "New Building Code Requirement", "Home Improvement on a Budget", and much more. This is your link to realty.

If you would like to subscribe to my newsletter, just send me an email tom@dampsy.ca, and the next edition will be emailed to you.

The media never prints about planes that land safely…only the ones that crash!

2009-03-03T09:41:00.001-05:00

The same can be said with the Media’s current comments about the Real Estate Market. Consumers lose confidence and buyers become more cautious.

What should you do, where are we headed?

The Canadian Mortgage and Housing Corporation (CMHC) predicts a fairly stable market with some sectors showing declines and others remaining stable. New homes are hit the hardest and builders will offer more incentives especially if they have an over supply of ‘spec” homes.

The Canadian Real Estate Association (CREA) predicts a decline in activity of 19.1% and a decline in value of 7% overall for the province. The hardest hit areas in the province are projected to be in Windsor, Oakville, and Oshawa where the impact from the declining auto sector will be felt the most.

If you treat your investment like a stock, put in a purchase order and buy more, your cost base goes down and as the market recovers you take advantage of the increase/spread.

If are thinking of selling then price vs. show ability vs. timing will determine the difference between success and “long time” on the market. Make sure your research is accurate and thorough for the best decision.

MacCleans magazine published an article last Monday predicting the market will go down 20% and they used Teranet as a basis for this assessment. Teranet is a company who records all property transfers within the province. My belief is that MacCleans did not analyze the Teranet information objectively.

Let me explain: Let’s say you inherit a property and there is a transfer of ownership recorded at $1 or you buy the water frontage in front your cottage from the township for closing costs totaling $700. All these transfers are recorded at Teranet including selling your property on the open market (mls system). Let’s say you sold your cottage for 60% of value to one sibling and your principal residence for 60% of value to the other sibling to be “family” fair. Those amounts are recorded in the Teranet system.

So my question is: How can anyone take all the transfer prices of all real estate and predict what the market is doing without doing the objective research to find out the “why” of a sale, which would help enable you to determine where the real market is headed.

MacCleans sold a lot of magazines this past week. However, it is this writers’ opinion that they sent out some misleading information to sell those magazines and that’s bad news; a plane crash!

The press to some extent helps control our attitudes and our knowledge. If you are hearing bad news and thinking bad thoughts then good opportunities will not present themselves.

London is generally a white collar town and the market reflects this. Health and Education are the major employers. Yes we will have a slow down and there are hiring freezes and research freezes in those sectors but not mass lay offs. Our housing market is inexpensive compared to so many other centers: for example, Calgary, Vancouver, and Toronto. Our market doesn’t and hasn’t fluctuated as other markets have.

London is a great place to invest, work and live.

Do-Not-Hesitate to-Call List

2009-02-12T12:26:00.002-05:00

Was the Do-Not-Call list designed to fail?

Before registering on the list, my cellular phone rarely received unsolicited phone calls. That has changed. My cellular phone receives calls from U.S. telemarketers daily.

Many Canadians may find themselves in the same position. It has been reported that the Do-Not-Call list may have gotten into the wrong hands.

Any telemarketer can access the list by going to the National Do Not Call List website and paying a small fee. They are required to check the list regularly to ensure they are not calling registered numbers. However, anyone can pose as a telemarketer to access the list. According to reports, the list has been sold to off-shore and U.S. telemarketers and scam artists. If you recall, the Do-Not-Call list only applies to Canadian telemarketers.

As such, the Canadian Radio-television and Telecommunications Commission (CRTC) are unable to stop any calls coming from outside of Canada since it is out of their jurisdiction. When asked about what actions CRTC would take against telemarketers overseas, CRTC responded by saying they will take all complaints seriously and conduct investigations if an individual or organization is misusing the list. While CRTC is unable to stop incoming calls, they have the right to impose penalties in the form of fines ranging from $15,000 per call against a company or $1,500 per call against an individual. However, fines can go as low as one cent per call also.

"January market feels the chill"

2009-02-09T11:48:00.003-05:00

Want to know how the London area real estate market performed in January? Click here to read this great article.

Article Highlights
- 2.5% drop in average home price compared to last January
- 35% drop in homes sold compared to last January
- downturn in Canadian real estate market still mild compared to the U.S.

Attention Home Buyers & Sellers!

2009-01-29T11:08:00.003-05:00

Due to popular demand, I have scheduled another date for my Home Buying & Selling Seminar, February 17/09 7:00pm - 9:00pm.

If you are thinking of buying or selling a home, I recommend you check out my seminar. Andrew Young, Scotiabank and I will teach you about: Renting vs. Buying, Legalities, the Real Estate Market, Pricing Your Home, Preparing Your Home for Showing & more!

You can give me a shout at 519-642-0619 or seminars@link2realty.ca to register your seat today.
I hope to see you all there!

New Building Code Requirement

2009-01-28T10:06:00.002-05:00

Ontario is ensuring new homes in the province are more energy efficient with a new requirement under the Building Code.

Starting in January 2009, Ontario’s Building Code will require near full-height insulation on foundation walls in all new home construction. The basement insulation requirement is the second step in a three-phase approach to energy efficiency brought in with the introduction of the 2006 Building Code.

After 2011, further requirements will see houses with at least an EnerGuide 80 level of efficiency. EnerGuide 80 is a model energy rating system for houses developed and administered by Natural Resources Canada.

For more information on the new requirements click here.

Ontario November Home Starts Moderate as Expected

2009-01-27T10:01:00.000-05:00

Ontario’s preliminary Seasonally Adjusted Annual Rate (SAAR) of urban home starts slowed in November to 54,700 starts, down from 78,900 units in October. While multi-family home construction, which includes semi detached, town home and apartment units, accounted for much of the decline in November activity, single detached construction also moderated.

The longer term trend for Ontario housing starts has been one of high start levels gradually edging lower from peak levels in 2003-04. However, actual urban Ontario home starts for the year are still 14 per cent higher compared to the same period in 2007.

Affordable Homeownership

2009-01-26T09:34:00.004-05:00

I few months ago, I talked about the City of London Affordable Homeownership Assistance Program, click here to read it. There is a deadline of March 31, 2009 to expend the funding allocated to the City of London. To avoid returning any unused funds, the City of London has raised the household income limit and maximum home price under this program.

To be eligible, households must now have a gross household income of $55,000 or less and must qualify for and be pre-approved for a mortgage at a recognized financial institution. The new selling price of the home must be no higher than $140,000.

Applications are accepted on a first-come-first-served basis. You must find a suitable home by the deadline March 31, 2009. However, the actual closing date of the sale may be after the date.

Time is running out, have you found your home yet?

For details on the program or an application, visit www.housing.london.ca or call 519-661-2500 ext 5524

Rent Increase Guideline

2009-01-13T10:30:00.004-05:00

The Ontario Government has set the rent increase guideline at 1.8% for 2009.

This is the maximum amount a landlord can increase rent for a current tenant, if at least 12 months have passed since the move in date. A landlord must give at least 90 days written notice to tenants before enforcing the rent increase.

This amount does not apply if you are renting to new tenants or those not covered by the Residential Tenancies Act.

Our Real Estate Market in Perspective

2009-01-08T16:10:00.012-05:00

I came across a couple more wonderful articles discussing our real estate market.

Average housing prices have been, and continue, to decrease nationally as Canadian home prices adjust to the market. Again, we won't be seeing a crisis here as our neighbours to the South have been experiencing.

The London and St. Thomas Association of Realtors (LSTAR) cite the average price of homes sold in December dipped below $200,000, compared to $206,557 same month last year. Nonetheless 2008 was a good year overall with 8,356 homes sold. This is down 11% from 2007, which was a record-breaking year for sales. 2008 sales were well within the 10-year average.

St. Thomas recorded 632 home sales for 2008, down from 867 in 2007. However home prices are holding up well, with the average price in St. Thomas for December was $187,361, compared to $172,550 same month last year.

A big factor in the London-St. Thomas market this year has been an increase in the number of listings. 3,133 listings in December, compared to 2,241 listings last year.

To learn more, click here to read "'Modest' dip, not crash, predicted for house prices".

Click here to read "Home sales, prices fall".

Welcome back

2009-01-06T09:35:00.006-05:00

Happy New Years! The blog will be back on schedule now that the holidays are over. To kick off our new year, I found a great article in the London Free Press for those of you worried about the economy. Click here if you would like to read it. It echoes some of my previous posts.

Although London's housing market is slowing down, we have had a traditionally stable market. The housing market will remain healthy thanks to our diverse economy. It may look dismal in the U.S., but in Canada mortgage rates are good and inflation is under control.

Why London?

2008-11-26T15:22:00.013-05:00

Here is an article a reader submitted to me. She was a student at the University of Western Ontario, and wanted to share why she now calls London home.

Many people have asked me why don’t I move back home (to Hamilton). I moved to London just over four years ago to attend Western University. Since then, I have called London home. While students moved back home during summer breaks, I stayed here. I recently graduated in June, and I am still here. So…why do I stay in London?

Coming from a large industrial city, it wasn’t hard to fall in love with London. London seemed noticeably safer, and I was awed by the beauty of the tree-lined streets and lush green parks.

There are lots to see and do; plenty of festivals such as the London Ribfest, Sunfest, and Balloon Festival that take place annually. If you take a stroll down Richmond Row, you can find many places to eat or have a drink. During the winter months, you can go skating in Victoria Park or outside the Covent Garden Market.

Now London is a smaller city than Hamilton, albeit larger than most in Ontario. But I do appreciate how it offers the best of both worlds. For 8 months of the year, there is a hustle & bustle. During the summer months, students are gone, and the city calms; it becomes more peaceful and quiet.

There is one downside to London: the snow. London is located in the Snow Belt region so the city gets a lot of snow. But don’t fret, there’s an upside! It makes beautiful winters.

Would you like to share your experience of living in London? Email me or leave a comment!

Blog suggestions

2008-11-26T10:42:00.007-05:00

Is there anything you would like to know about London? Leave comments to this post with your suggestions.

Some London market stats for you

2008-11-25T11:29:00.013-05:00

I thought this would make a great post for all of you; it's a section from my newsletter "Bricks & Mortar Real Estate Reporter":

Record breaking 769 sales in September
Slower 581 sales recorded in October.
November continues to taper.
Normal slowdown as we approach Christmas.

2007 average house price $202,256.00
2008 average house price $212,034.00

That’s a whopping increase of 4.85%.
Some segments have tapered a bit…
Declines from 2007 YTD

Ranches, St. Thomas down 2.5%
Bungalow, south London down 0.9%
Ranches, south London down 0.2%
Condos, east London down 1.3%
Townhouse, east London down 0.1%
Bungalow, Strathroy down 3.2%
Townhouse, Strathroy down 15.7%

Overall positive growth.

Have you read the December edition yet? Click here for a copy.

Also, I would like to hear what you want to see in my next newsletter. Leave some comments in what you want to read in the March edition of Bricks & Mortar Real Estate Reporter.

Another tip to save you money

2008-11-24T16:23:00.012-05:00

Need to locate a business? Forget 411, save this number on your phone 1-800-GOOG411. This is a new service offered through Google. You can find local business information anytime, anywhere, free of charge. It uses listing information provided by Google Maps, so if you need to update or add your business information, you can do so here. The more businesses updating or entering their information, the more helpful this service will be!

To use the service, just call 1-800-GOOG411 and state the location and business (category or business name) you are looking for. Currently residential information is not available.

Want more information about GOOG-411? Visit here.

If you have used this service already, what do you think of it? Did you get the information you were looking for?

More money in your wallet

2008-11-21T11:21:00.008-05:00

Gas prices are falling! Do you remember the last time gas prices were in the 70s? Today's low is 74.9. Just a month ago, we were looking at gas prices around 101.405. One year ago, they were 106.808.

If you didn’t fill up your tank during the week, you will be paying more to do so this weekend. Gas prices are higher during weekends, than weekdays.

Save money. I have a great website for you. Visit www.londongasprices.com. This website compares all gas prices in the London Area, and it shows you where you can get the cheapest prices.

Bricks & Mortar REAL ESTATE REPORTER

2008-11-18T14:07:00.004-05:00

The December edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Visit http://dampsy.ca/December2008Newsletter.pdf to read the newsletter today. You'll find valuable real estate information & tips such as: "Selling NOW", "Bathroom Mould", "Consider Your Offer", and much more. This is your link to realty.

If you would like to subscribe to my newsletter, just send me an email tom@dampsy.ca, and the next edition will be emailed to you.

Is the market slowing down?

2008-10-29T09:57:00.009-04:00

CMHC forecasted this slow down over a year ago, kudos to them! If you want more info click or paste http://www.charitylinkrealty.ca/cityprofiles/london/index.jsp. On the right hand side click on the CMHC links, lots of good valuable information.

The good news is we will continue to move to a balanced market, that’s right no buyers market in sight. That means an equal number of buyers and sellers out there. Yahoo the strong survive! Prices won’t increase as quickly as in the recent past and sellers might have to negotiate a few more extras (yeah) such as appliances. The forecast does call for a moderate price increase. All in all we are headed into a nice steady market. I love these markets.

Too bad the papers are reporting negative news, it hurts us all. Take Stirling in St. Thomas as an example. The papers reported a job loss at the plant of 2,300 +- when there are actually only 700 +- jobs. Yes Stirling at one time employed 2,300 but not for a long time now. The plant closing will have a slow down effect as St. Thomas and the surrounding businesses adjust but I don’t think it has to be the doom and gloom we hear about. A lot of people employed at Stirling don’t even live there!

The 10 year average for home sales in London/St. Thomas for the month of September is 6,597; 5 year average is 7,269; this year 7,113 sales. Not as bad as you think.

As we approach Christmas our market naturally slows year after year after year. Mortgage rates are still great. If you are thinking of buying now is a fantastic time especially if you find a motivated seller whose house meets your wants and needs. If you are serious about selling call me for up to date market info that will help you achieve your plans. If we know what the market is doing we know how to price to stay ahead of the market. More on pricing next week.

What are your thoughts?

Someone said...

2008-09-24T10:04:00.004-04:00

Someone said you should not invest now because history will repeat itself; the recession in the U.S. is expected to hit Canada really hard, putting us in a recession by the next year. The unemployment rate in the U.S. is at an all-time high, Canada has reported that 50,000 jobs were lost in July alone, the biggest number since February 1991.

What does this mean for London? If there is a recession, mortgage rates increase and loans are more difficult to obtain. For people who have over extended, they will start selling assets—typically investment property, then cottage, then home. As a result, real estate prices fall.

However, the London economy is slightly different. A majority of the Canadian job losses were in the manufacturing sector; London is a service economy. The 2 largest employers in London are the London Health Sciences Centre and the University of Western Ontario. 269,000 jobs were created last quarter alone (LEDC).

Student enrollment in a recession rises with funding through student loans. With over 30,000 students at UWO, London is known to be a “University Town”. Investments in student rental properties are essentially recession-proof.

Can we expect real estate prices to crash in the next year? No. It is possible that prices will decrease in some segments. Since London is a service economy and a “University Town”, we won’t get hit as hard as cities with a manufacturing economy, in fact there will be a greater need for student rental properties.

So, is it really a bad time to invest in student rental property? No. With an economy like ours, now is the time to buy.

Interest rates remain low. Average mortgage rate for the past 10 years is 10%, anytime you are below the average you have to be ahead of the game. Take advantage of the present market!

Bricks & Mortar REAL ESTATE REPORTER

2008-09-04T11:54:00.005-04:00

The September edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Click here to read the newsletter today. You'll find valuable real estate information & tips. I've designed my newsletter to be your link to realty.

If you would like to subscribe to my newsletter, just send me an email tom@dampsy.ca with the subject line: Bricks and Mortar, and the next edition will be emailed to you.

slow down

2008-08-13T09:29:00.007-04:00

The market has slowed as normal during our summer. People are on holidays, spending time with their children or just enjoying the hazy days of summer. Not to worry our market will pick up in the fall as usual. Reminder, October is fast approaching and CMHC will no longer approve the 100% finance "fully insured" mortgage feature. if you were considering using this option time to get serious and buy:).
CMHC predicted a balanced market and they are right, yeah.

100% financing? Not anymore.

2008-07-30T09:35:00.004-04:00

On July 9, the Department of Finance announced that it will no longer offer 100% financing or 40 year amortizations. You will however be able to obtain mortgage loan insurance for amortizations of up to 35 years and up to 95% of the value of the property.

So, if you were thinking of 100% financing or a 40 year amortization, you may have to take another look at your options. October 15, 2008 is when these changes are to take effect.

Telemarketers, do not call!

2008-07-29T10:55:00.011-04:00

Starting September 30, 2008 you will be able to register your telephone, cell-phone, and/or fax numbers on the National Do-Not-Call List (DNCL). This list will contain the names and numbers of consumers who do not want to receive unsolicited calls from telemarketers. You can register up to three different numbers on the list, and will be responsible for re-registering them after a three-year expiry period.

Telemarketers are required to monitor the list and remove any numbers they find on it from their call lists. They will be allowed 31 days to update their lists, so you may continue to receive unsolicited calls for a few weeks after registering your numbers.

Bell will be responsible for registering numbers, providing telemarketers with up-to-date versions of the National DNCL, and receiving consumer complaints about telemarketing calls.

You can sign up by telephone, fax or email. Visit www.lnnte-dncl.gc.ca or call 1-866-580-3625 (DNCL) after September 30th to register your numbers. I know I will be!

Get out your ID if you’re thinking of buying

2008-07-28T10:15:00.007-04:00

Until recently, as of June 23 2008, real estate agents are now required to ask clients for identification.

Following the attack on the World Trade Centre, the Government of Canada introduced the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) late in 2001. This legislation introduced new regulations that required targeted “high-risk” industries, including real estate, to implement client identification and record keeping requirements.

The new requirements that agents must comply with are: record all funds received (unless funds are received from a financial entity or public body), and verify and record the identification of clients with respect to every purchase and sale.

What if owning your first home was within reach?

2008-07-17T12:25:00.009-04:00

Affordable home ownership is more attainable than you think.

The Government of Canada, Province of Ontario and the City of London have partnered up to create the Canada-Ontario Affordable Housing Program (AHP). This program will help low to moderate income rental households in purchasing affordable homes.

Eligible purchasers may receive down payment assistance of 5% toward the cost of the home and another 1% to assist with closing costs. This is an interest free loan.

To see if you are eligible, and to get more information visit http://housing.london.ca/NewAffordableHousingProgram/HomeOwnership.htm
Funds are limited, so apply early!

Important Information About Your Rates

2008-07-15T14:04:00.005-04:00

Effective July 1, 2008 you will begin to notice an increase in your gas bill. The Ontario Energy Board approved changes to the rates Union Gas charges its customers. They predict that most customers will see a total increase of $254.99 based on an annual volume of 2,600 m 3.

The gas commodity rate has increased by 7.3112 cents/m3. This change reflects the increase in Union Gas forecast cost to purchase natural gas for the next 12 months.

In addition, the change in the gas price adjustment is an increase of 2.0276 cents/m3. This change reflects the difference between the projected cost of natural gas that Union Gas expects to pay and the amount that Union Gas expects to recover through the current gas commodity rate over the next 12 months.

The gas rate is adjusted this way so that you are billed at a rate that more closely reflects the market price of natural gas and avoids large out-of-period adjustments.

The transportation rate has increased by 0.4676 cents/m3 to 3.5148 cents/m3. Delivery price increased slightly by 0.0224 cents/m3.

Did you know...

2008-06-26T09:26:00.015-04:00

The other day I came upon some very interesting information. Did you know that according to the Status Certificate of 1570 Richmond no renting is allowed? For anyone who may not know, 1570 Richmond is a condominium community located close to the University of Western Ontario.

Please discuss; I want to hear what you think of this.

New city bylaw cracking down on basement bedrooms

2008-06-09T14:14:00.015-04:00

From what I understand, the student sale/rental market is in the process of changing quite significantly. The city of London has agreed with the Fire Department in the “dangers” of renting basement bedrooms. The city is allowing the Fire Department to inspect (rental) properties and “disqualify” the basement bedrooms. The fire department has taken the position that a basement bedroom must have a “man” size egress; large windows are no longer acceptable if the unit is a rental. Owners selling properties with basement bedrooms are struggling in achieving top dollar values as the buyers are discounting the income from the basement bedrooms.

If you disagree with this, phone City Hall and ask. This new bylaw could mean that any bedroom in the basement is illegal unless it has a walk-out. It is not just affecting rentals, but could affect the whole city.

I am all about safety, however I am against discrimination. If you have any objections to this new bylaw, call City Hall and let them hear you.

18th Annual Children's Festival

2008-06-06T15:57:00.008-04:00

Take your kids out to the London International Children's Fetival this weekend, there are only 2 days remaining.

What is it?
It is a festival of performing arts for young audiences. From June 4/08 until June 7/08, you can watch a variety of different shows that are scheduled. For ticket information visit http://www.londonchildfest.com/ticket_information.html

There will also be lots of exciting and fun things to see and do at Covent Garden Market before and after shows.

What is an "RSS Feed"?

2008-06-06T12:13:00.025-04:00

Do you read blogs regularly? Have you heard of the term 'RSS Feed'? RSS stands for Really Simple Syndication, it is a way of letting you know that new posts have been added. You will know when a site has RSS when you can see this orange icon (picture shown above) at the top of your web browser or if the website you are looking at says it has RSS Feed.

If you click on the orange icon, it will show the feeds for the site. Click on 'Subscribe to this feed' at the top of the page, and you can now view all posts through your 'Favourites Center' in your browser, without having to visit the website. Any time a new post is added, it will automatically update to your feed.

Want to be notified anytime I make a change to my blog? Just click on the orange icon in your web browser.

Bricks & Mortar REAL ESTATE REPORTER

2008-06-02T12:12:00.015-04:00

The June edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Visit http://dampsy.ca/June2008Newsletter.pdf to read the newsletter today. You'll find valuable real estate information & tips such as: "Spring Cleaning Safety Tips", "Keeping Your Lawn Green", "New Energy Initiatives for Homeowners", and much more. I've designed my newsletter to be your link to realty.

If you would like to subscribe to my newsletter, just send me an email tom@dampsy.ca with the subject line: Bricks and Mortar, and the next edition will be emailed to you.

Things You Should Know About London

2008-05-21T14:38:00.020-04:00

Thank you for visiting my blog. I have lived and practiced real estate in London for over 20 years; I can tell you quite a bit about this city! Please feel free to ask me any questions that you have about London, or tell me about your stories, I'd love to hear from you.