Category: Buying Real Estate

Why Downsizing is a Smart Move for Your Retirement

Post author By cindycody
Post date July 25, 2024

As you approach retirement, making strategic decisions about your lifestyle and finances becomes increasingly important. One such decision is whether to downsize your home. Downsizing isn’t just about moving to a smaller space; it’s about embracing a simpler, more manageable lifestyle that can significantly enhance your retirement experience. Think about a smaller area to clean, less home to maintain, smaller bills, and more time to do the things you want to be doing! By reducing living expenses, freeing up equity, and minimizing upkeep, downsizing offers numerous benefits that can help you enjoy a more comfortable and financially secure retirement. In this blog, we will explore the various ways downsizing can positively impact your golden years, providing you with the freedom and flexibility to pursue your passions and live life to the fullest.

Living Expenses Get Reduced

Transitioning from a larger family home to a smaller residence is a strategic financial decision that can free up cash flow and reduce the monthly financial pressures that come with maintaining a larger property. Transitioning to a smaller home can lead to substantial savings on utility bills, as reduced square footage decreases the cost of heating, cooling, and electricity. It can also result in lower property taxes and homeowners’ insurance rates, directly impacting annual expenses. The smaller the home, the less maintenance and repair it requires, saving money and reducing the physical and time demands on retirees.
remax.ca

Mortgage and Debt Relief

Selling a larger home to move into a smaller one can often result in the outright purchase of the new property, especially if the previous home has accumulated substantial equity over the years. This move can eradicate monthly mortgage payments, freeing up significant amounts of income that were previously tied up. Downsizing also offers a strategic advantage in managing and reducing other forms of debt. The additional capital gained from selling a larger property can be wisely used to pay off existing debts, such as credit cards, car loans, or lines of credit. This debt reduction strategy decreases monthly outgoings and minimizes interest payments, contributing further to financial freedom.
remax.ca

Equity Unleashed

For many retirees, their home is their largest asset, and the equity built up over the years represents a substantial portion of their retirement savings. Downsizing allows homeowners to convert this dormant equity into liquid assets. The equity unlocked from downsizing can dramatically reduce financial stress by providing a cushion that supports a comfortable lifestyle. For retirees facing the prospect of a fixed income, this additional capital can ease worries about the adequacy of their retirement savings, covering living expenses, healthcare costs, or unexpected financial needs. This financial breathing room allows retirees to enjoy their golden years without the looming anxiety of financial constraints.
remax.ca

Strategically Reallocate Your Investments

The equity unlocked from selling a larger home presents a chance to diversify and strengthen one’s financial portfolio for the retirement years ahead. The lump sum from downsizing can be strategically allocated into stocks, bonds, mutual funds, and other investment vehicles, depending on one’s risk tolerance and time horizon. For those reluctant to give up their stake in real estate, Real Estate Investment Trusts (REITs) offer an attractive alternative. Investing in REITs allows retirees to remain involved in property markets without the direct responsibilities of ownership. Investing in Tax-Free Savings Accounts (TFSAs) or using the funds to max out Registered Retirement Savings Plan (RRSP) contributions can significantly reduce tax liabilities. Consulting with a financial advisor can help retirees navigate these decisions, ensuring that the transition not only secures their financial future but also enriches their retirement years.
remax.ca

Find A New Location That Meets Your Needs

Many retirees prioritize being close to healthcare facilities, shopping centers, and recreational amenities. Downsizing often makes it financially feasible to move to areas that offer convenient access to these essential services. Urban or suburban communities specifically designed for retirees can provide everything from medical services to leisure and cultural activities within easy reach. The decision to downsize also opens up possibilities to relocate to areas with a more affordable cost of living. Moving from high-cost urban areas to smaller towns or cities can significantly stretch retirement savings.
remax.ca

Less To Take Care Of

Moving to a smaller home or a more manageable living space means there’s less to take care of on a day-to-day basis. The demands of cleaning, repairs, and general upkeep are minimized, freeing up physical energy and time that can be redirected toward more rewarding activities. For retirees, this reduction in maintenance tasks is a gateway to a stress-free lifestyle that prioritizes well-being and enjoyment over chores and responsibilities. A simplified living space also means a home more suited to their mobility needs. Downsizing often involves selecting homes with practical layouts, fewer stairs, and accessible features that can accommodate changing physical needs over time. This foresight ensures comfort and prolongs independence, making daily life more enjoyable and less encumbered by physical constraints.
remax.ca

More Time For Fun!

With the burdens of a large home lifted, retirees find themselves with a wealth of time to explore new hobbies or rekindle old ones. Whether it’s gardening in a more manageable space, joining community clubs, taking up photography, or exploring the great outdoors, downsizing creates the space and opportunity for retirees to engage in activities that enhance their physical, mental, and emotional well-being. It also means more opportunities for social engagement and building meaningful relationships. Downsizing often brings retirees closer to community centers, clubs, and groups that share similar interests, facilitating social interactions and friendships and countering the isolation that some retirees face.
remax.ca

Thinking About Downsizing?

How do you know when to downsize? For some, the answer is driven by the real estate market, for some its a financial decision, and for some people, it’s the desire to relocate closer to family (especially when a new family member is on their way!). There are lots of factors at play.

One thing you can be sure of is that our team is always here to help you along the way. If you’re wondering “is it the right time?” or if the thought has even crossed your mind, we’re always available to talk. Whether you want to have a discussion about how and when to downsize, or you’re ready to get started, we are here to support you.

If you have questions about downsizing, give us a call!

519-746-5136 sold@cindycody.ca

4 Things You Should Know Know About Property Taxes

Post author By cindycody
Post date June 5, 2024

If you’re a homeowner or aspiring to be one, you’re likely familiar with the excitement and sense of achievement that comes with owning a property. However, amidst the joy of acquiring a home, there are essential aspects that every homeowner should grasp to navigate the financial responsibilities effectively. Today, we’re diving into a crucial pillar of homeownership: property taxes.

Understanding your property taxes is fundamental for any homeowner. This financial component not only impact your expenses but can also play a role in your longer-term financial planning. Whether you’re a first-time homebuyer or a seasoned homeowner, learning about property taxes can save you from unexpected surprises and help you make sound financial decisions.

Today, we’re going to explore everything you need to know about property taxes, from the basics to more nuanced aspects.

So, whether you’re curious about how property taxes are calculated, want to understand all your payment options, or simply want to deepen your understanding of this essential financial matter, you’re in the right place. Let’s get started!

What are property taxes?

Property taxes are mandatory payments you make each year as a property owner. They are paid to your municipal or provincial government. Property taxes collected by the governments in Kitchener and Waterloo, like in many other municipalities, are used to fund various local services and initiatives. Some common uses include:

Municipal services: The bulk of property tax revenue typically goes towards funding essential services provided by the local government, such as police and fire protection, waste management, road maintenance, snow removal, parks and recreation facilities, and public transit.
Infrastructure Maintenance and Development: Property taxes are used to maintain and develop infrastructure such as roads, bridges, sidewalks, and public buildings. This includes repairs, upgrades, and new construction projects to support the growing needs of the community.
Community Services: Funds may be allocated to support community programs and services, including libraries, community centers, cultural events, and social services aimed at supporting vulnerable populations within the community.
Education: A portion of property tax revenue may be transferred to local school boards to support the operation and maintenance of schools and educational programs in the area.
Debt Servicing: In some cases, property taxes may be used to service debt incurred by the municipality for capital projects or other initiatives.
Administration: A portion of property tax revenue is used to cover the administrative costs of running the local government, including salaries of employees, office expenses, and other

See how City of Kitchener breaks down the components of your tax bill here, and learn all about the City of Waterloo’s property tax here.

How are property taxes calculated?

The calculation of property taxes involves two key factors: the assessed value of the property and the tax rate set by the local municipality.

Assessment of Property Value: The assessment of a property’s value is usually performed by a local or provincial assessment body. This assessment considers the property’s size, age, location, and improvements or renovations. It’s important to note that the assessed value for tax purposes might differ from the property’s market value.

Municipal Tax Rates: Once the property’s value is assessed, the local municipality applies a tax rate to this value to determine the property tax. This rate is often expressed in mills (one mill equals $1 in property tax levied per $1,000 of a property’s assessed value). The rate varies depending on the municipality and the type of property.

In essence, the formula to calculate the property tax is Property Tax = Property Value Assessment x Municipal Tax Rate. For example, if a home is valued at $500,000 and the municipal tax rate is 0.5%, the homeowner would owe $2,500 in property taxes for the year.
remax.ca

How can property taxes affect real estate decisions?

Property taxes are a variable taken into account when determining a whether a homeowner can afford a home; it’s not just about the sale price of a property. Prospective buyers often scrutinize property tax rates when selecting a location, as these taxes directly affect the annual expense of homeownership. Opting for municipalities with lower tax rates can lower annual expenses for a homeowner.

Real estate investors also closely consider property taxes, as they directly influence the profitability of their investments. Elevated property taxes can diminish the net rental income, prompting investors to seek areas with lower tax rates to maximize returns or adjust rental prices accordingly.

Paying property taxes directly vs. through your mortgage lender

The Advantages of Paying Property Taxes Through Your Mortgage

Paying property taxes through your mortgage offers several advantages that can simplify your financial planning and homeownership experience. Here are some of the key benefits:

Simplified Budgeting – Combining your property taxes with your monthly mortgage payment simplifies your financial responsibilities. You make a single payment to your mortgage lender, who then disburses the funds to cover your mortgage principal, interest, and property taxes. Since your property taxes are spread out over the year, you can anticipate and budget for consistent monthly payments, making it easier to manage your finances and avoid unexpected lump-sum tax bills.

Elimination of Lump Sum Payments – Property taxes are typically assessed annually or semi-annually, resulting in substantial lump-sum payments for homeowners. By paying through your mortgage, you eliminate the need to come up with a large amount of money all at once. Without the burden of a significant tax bill looming, you can better allocate your resources to other financial priorities, such as home maintenance, savings, or investments.

Lower Risk of Tax Delinquency – Paying property taxes through your mortgage ensures that your taxes are paid on time. Mortgage lenders are responsible for making timely tax payments, reducing the risk of tax delinquency and potential penalties. With tax payments integrated into your mortgage, you can have peace of mind knowing that your property remains in good standing with local tax authorities, preventing any potential tax liens or legal complications.

The Drawbacks of Paying Property Taxes Through Your Mortgage

While paying property taxes through your mortgage offers convenience, it also comes with some drawbacks that you should consider before making this choice:

Higher Monthly Payments – When property taxes are added to your mortgage payment, your monthly housing costs will increase. This can strain your monthly budget, particularly if you’re on a tight financial plan. Lenders often require homeowners to maintain an escrow cushion, which is an extra amount added to your monthly payment to ensure they have enough funds to cover property taxes and insurance. This cushion can further increase your monthly expenses.

Loss of Control over Tax Payments – When property taxes are paid through your mortgage, you relinquish direct control over tax payments. Your mortgage lender handles the disbursement of tax funds, which means you may not know when and how they pay your property taxes. If there are discrepancies or issues with your property tax assessment, you may have limited ability to address them directly with the tax authority since your lender manages the payments on your behalf.

Potential Escrow Shortages – Property tax amounts can change from year to year due to factors such as reassessment or changes in local tax rates. Your lender may adjust your monthly payments to account for these fluctuations, potentially resulting in higher payments and escrow shortages. Escrow shortages can lead to unexpected increases in your monthly mortgage payments. These fluctuations can cause financial stress if you’re unprepared for the higher costs.
remax.ca

Learn more about the alternatives to paying property taxes through your mortgage.

Here are some other resources you may find helpful!

Tags property taxes

Buying Real Estate Community Selling Value

Neighbourhood Amenities Valued By Buyers

Post author By cindycody
Post date May 9, 2024

There are several neighborhood amenities that can significantly add to a home’s appeal. How valuable each neighbourhood amenity is will vary from buyer to buyer. Just as buyers have a specific wish list for home features, their specific lifestyle, wants, and needs will also impact how important different amenities are to them and how close they want to be.

As buyers are considering different neighbourhoods and picking their perfect location, here are some factors that may come into play.

Driving to amenities

Close proximity to certain key amenities may impact which neighbourhoods a buyer is interested in looking at. For example, some people will want quick access to major highways like the 401 and Highway 7/8, especially if they commute to work. Whereas buyers who work from home may value proximity to grocery stores, banks, and shopping plazas more.

Families will likely put high value on school zones and nearby parks.

Others may put emphasis on proximity to key locations that fuel their lifestyle, like golf courses, ski hills, community centre, and walking and biking trails.

Walking to amenities

Buyers could even be focused on amenities within the neighbourhood, or places they can walk to. For some, being able to walk to a downtown core is essential for visiting local restaurants, coffee shops, and pubs.

Sometimes a “Walk Score” is referenced in a property description to indicate how many amenities are within walking distance of an address. You can search Walk Scores here. You can also learn a transit score and how bikeable and address is.

Speaking of transit, some buyers are looking to specifically be walking (or biking) distance to public transit (the bus or the Ion), or easy access to GO stations.

Rural area amenities

For more rural areas, the biggest need is how far a family will be from their everyday needs and amenities like the grocery store. Buyers will consider their desired driving time. Typically we see that 10-15 minutes seems to be the sweet spot.

Every buyer has different needs so it’s important to highlight all types of amenities to a potential buyer who may be considering your home.

Saught-after Neighbourhood Amenities

Here are some more examples of amenities that buyers may have on their wish list:

Quality Schools: Proximity to well-rated public or private schools is often a top consideration for families with children. Homes in neighborhoods with good schools may command higher prices.
Parks and Green Spaces: Access to parks, playgrounds, trails, and other outdoor recreational areas can enhance a neighborhood’s appeal. Green spaces contribute to a sense of community and offer opportunities for leisure and exercise.
Retail and Dining: Proximity to shopping centers, grocery stores, restaurants, and cafes can increase convenience and quality of life for residents. Walkable neighborhoods with diverse retail options tend to be more desirable.
Public Transportation: Easy access to public transportation hubs such as subway stations, bus stops, or commuter rail lines can make a neighborhood more attractive, especially for urban dwellers who rely on public transit for commuting.
Cultural and Entertainment Venues: Neighborhoods with theaters, museums, art galleries, music venues, and other cultural attractions often have a vibrant atmosphere and appeal to residents interested in arts and entertainment.
Community Centers and Libraries: Facilities such as community centers, libraries, and recreational centers provide spaces for social gatherings, educational activities, and community events, contributing to a strong sense of community.
Safety and Security: Low crime rates, well-lit streets, and active neighborhood watch programs can make residents feel safer and increase property values.
Healthcare Facilities: Proximity to hospitals, clinics, urgent care centers, and other healthcare facilities can be a significant asset, particularly for families and seniors who prioritize access to medical services.
Gyms and Fitness Centers: Access to gyms, fitness centers, yoga studios, or sports facilities appeals to health-conscious individuals and families seeking opportunities for exercise and wellness activities.
Dog Parks and Pet-Friendly Amenities: For pet owners, neighborhoods with dog parks, pet-friendly establishments, and nearby veterinary clinics are highly desirable.

These amenities can vary in importance depending on the preferences and priorities of potential buyers, but collectively they contribute to the overall desirability and value of a neighborhood.

You don’t need to navigate the real estate market alone

Whether you’re a first-time homebuyer, a seasoned investor, or someone looking to sell, we can help you every step of the way.

sold@cindycody.ca | 519-746-5136

Buying Real Estate Investing Market Update Selling

Navigating the 2024 Kitchener-Waterloo Real Estate Market

Post author By cindycody
Post date January 16, 2024

As we step into the promising year of 2024, the real estate market in Kitchener-Waterloo continues to evolve, presenting both challenges and opportunities for prospective buyers, sellers, and investors. Let’s delve into the current trends and key insights shaping the real estate landscape in this vibrant region.

Kitchener-Waterloo Real Estate Market: 2024 Trends & Insights

→Market Overview

The Kitchener-Waterloo real estate market is set to start off strong with hopes of interest rate cuts.

“Experts are now predicting that we will likely see gradual rate cuts starting in Q2 of 2024 that will continue throughout year-end.” – Globalnews.ca

Kitchener-Waterloo has been a hotspot for real estate activity, thanks to its booming tech sector, reputable universities, and a robust economy. As of 2024, the market maintains its resilience, showcasing a balanced blend of urban development and suburban tranquility.

→Home Prices and Affordability

Home prices have witnessed a steady increase in recent years, but affordability has been a concern for many potential homebuyers in the past few years. The demand for housing, particularly in sought-after neighborhoods, has contributed to a competitive market. Savvy buyers are exploring emerging areas that offer a mix of affordability and future growth potential.

Driven by concerns over rising inflation, multiple interest rate cuts are anticipated in 2024.

“The Bank of Canada’s projections have interest rates coming down “sometime” in 2024″ – Globalnews.ca

However, the overall higher interest rates will have an effect on the market as mortgages come up for renewal. It is projected in Waterloo Region that 1 in 4 homeowners up for renewal will not qualify for the payment and thus need to sell.

→Inventory and Supply

While the demand for housing is high, challenges in inventory and supply persist. The limited availability of housing options in certain price ranges has created a competitive market, potentially leading to bidding wars. Sellers, on the other hand, may find this advantageous but must carefully navigate pricing strategies.

However, we may see many homes on the market in the Summer due to higher interest rates impacting mortgage renewal affordability.

→Investment Opportunities

Investors are eyeing Kitchener-Waterloo as a lucrative destination for real estate investments. The region’s economic stability and potential for growth make it an attractive option. However, thorough research and strategic planning are crucial to identify the most promising investment opportunities, whether in residential, commercial, or rental properties.

→Tech Sector Influence

Kitchener-Waterloo’s reputation as a tech hub continues to influence the real estate market. With major tech companies establishing or expanding their presence in the region, there’s a growing demand for housing from tech professionals. This has led to a surge in condominium developments and modern housing solutions catering to the preferences of the tech-savvy workforce.

→Sustainable Living and Green Spaces

The emphasis on sustainable living and green spaces is a notable trend in the real estate market. Buyers are increasingly seeking environmentally friendly and energy-efficient homes. Developers are responding to this demand by incorporating sustainable features into new constructions and promoting eco-friendly communities.

→Remove Work Impact

The rise of remote work has influenced homebuyers’ preferences, with an increased focus on homes that accommodate remote workspaces. The ability to work from anywhere has expanded the scope for individuals to consider suburban or rural areas without compromising career opportunities.

Let us help you unlock your real estate potential!

You don’t need to navigate the 2024 real estate market alone. Whether you’re a first-time homebuyer, a seasoned investor, or someone looking to sell, we can help you every step of the way.

sold@cindycody.ca | 519-746-5136

Buying Real Estate Selling

Decoding Real Estate Language | 5 Key Terms Explained

Post author By cindycody
Post date December 7, 2023

Cindy Cody Team - 5 Key Real Estate Terms Explained

Welcome to the dynamic world of real estate, where every transaction involves a unique blend of financial decisions, legal intricacies, and a dash of strategic negotiation. Whether you’re a seasoned investor, a first-time homebuyer, or simply curious about the fascinating realm of property dealings, understanding the language of real estate is an important place to start.

Today, we’re going to break down a few key real estate terms that you will probably come across on your real estate journey.

Whether you’re thinking about getting into the real estate market or you’re simply seeking to expand your vocabulary, here are some quick explanations of some common real estate concepts.

What is chattel?

Chattle is an item that isn’t permanently affixed to or an integral part of the property. Examples include furniture, appliances, and personal belongings. Unlike fixtures, which are attached to the property and considered to be part of it, chattel is distinct in that it can be removed without causing damage or altering the structure.

Why should you know what chattel is?

Understanding the distinction between chattels and features is crucial in real estate transactions. Understanding what is included in the sale of a home and the transfer of property is important in contractual agreements between buyers and sellers.

What is a cashback mortgage?

“Cashback mortgages are a type of mortgage that has gained popularity in Canada over the past few years. With a cashback mortgage, borrowers receive a lump sum cash payment from the lender at closing. This cash payment can be used for various purposes, such as covering closing costs, making home improvements, or paying off high-interest debt.” – remax.ca

Why should you know what a cashback mortgage is?

It’s always a good idea to know all of your financial options. Learn more about the advantages and disadvantages of a cashback mortgage here.

What is mortgage insurance?

Mortgage insurance is a safeguard that lenders require home buyers to acquire if their down payment is less than 20% of the sale price of a property. It’s put in place to mitigate the risk a financial institution takes on, i.e. in the event that a borrower defaults.

Why should you know what mortgage insurance is?

If you’re saving a down payment and/or planning on purchasing a home, this is something you’ll want to keep in mind for financial-planning purposes. Mortgage insurance may be a tool to protect lenders, but it also serves benefits for borrowers:

“From the borrower’s perspective, mortgage insurance allows them to access more favourable loan terms, including lower interest rates, even with a smaller down payment. It reduces the barriers to entry into the housing market, making homeownership a viable option for individuals who might otherwise struggle to accumulate a substantial down payment.” –remax.ca

Learn more about mortgage insurance and the types of mortgage insurance here.

What are pre-payment privileges?

Pre-payment privileges in a mortgage refer to the flexibility granted to borrowers, allowing them to make additional payments or pay off the entire mortgage principal before the scheduled term ends, often helping to reduce interest costs and shorten the overall loan period. These privileges vary among mortgage agreements and can include lump-sum payments, increased regular payments, or a combination of both.

Why should you know what pre-payment privileges are?

If you’re focused on becoming debt and mortgage-free, understanding what your pre-payment privileges are can help you in your financial planning, and knowing how much you can pre-pay can help you create a strategy for paying off your mortgage quicker. Learn more.

What are gifted down payments?

A gifted down payment is when someone (typically a family member) provides the funds needed for a buyer to meet the minimum down payment required to buy a home.

Why should you know what a gifted down payment is?

Understanding the option of gifting your children a downpayment (as an early inheritance, for example) is a big decision, but it’s also a decision that can be life-changing. You can help your children get into a great home sooner, your children can start building equity, and you can enjoy spending time together in the home. Learn more about the advantages of a gifted down payment, and how to gift a down payment.

If you ever have questions, we are here to help. Give us a call today!

519-746-5136
sold@cindycody.ca

Buying Real Estate

Gifting A Down Payment | Getting Into The Real Estate Market

Post author By cindycody
Post date November 2, 2023

Cindy Cody Team - Gifting A Down Payment

Prospective homeowners have a number of things to get in order before making the purchase of their first home; finding a trusted and experienced real estate professional to work with, getting pre-approved for a mortgage, and saving a down payment, just to name a few.

Today, let’s talk about down payments.

A down payment defined: The initial payment made by the homebuyer when purchasing a house or property. It is a percentage of the total purchase price. The amount required as a down payment can vary.

When purchasing a home in Canada, the requirement set by the government is that you need to have a down payment that falls within the range of 5-20% of the purchase price. For context, in October 2023, the average sale price of a residential property in Kitchener-Waterloo was $767,848.

Saving 5-20% of the average sale price can be a long process for most young adults, so the act of presenting a downpayment as a gift (i.e. from parents to children) has become increasingly popular in recent years.

If you have dreams of leaving your children an inheritance in the traditional sense, you may want to think about a modification to your plan. Instead of leaving a lump sum in the future, consider the impact that money could have on your children’s lives earlier in their adulthood. Consider the idea of a cash gift as their down payment. This approach will not only grant them a solid financial foundation as they embark on their own journey in life and real estate, but it will also grant you the freedom to enjoy your wealth during your golden years.

Thinking about your golden years? Read more: 3 Genius Ways to Generate Retirement Income With Your Home

A gifted down payment defined: When a third-party, typically a family member, provides the funds needed to meet the minimum down payment required to purchase a home.

Why cash gifts are a smart idea for your family

Most of our largest lifetime out-of-pocket costs happen before the age of 40: attending postsecondary school, getting married, buying a home, and starting a family. All of these things cost tens of thousands or even hundreds of thousands of dollars, and that’s money most twentysomethings and thirtysomethings don’t have.

Usually the solution is to take on debt or delay saving for their own retirement, or both, in order to afford these adulthood milestones. But there is better way: help from mom and dad.

Instead of leaving your children a big inheritance, opt for large cash gifts to help them establish financial security early in life. Cash gifts before 40 can have a massive impact for setting your children up on solid financial footing, even if it means leaving them a smaller amount or no money later.

[C]ash gifts in Canada are tax-free, which means it’s better to give your child a $10,000 tax-free gift at 30 rather than leave them $100,000 taxable inheritance 30 or 40 years later. After all, it’s the same money: $10,000 invested in the stock market will grow to $100,000 in 30 years assuming an average rate of return of 8 per cent.
theglobeandmail.com

Advantages of gifting a down payment

By gifting your children money towards their down payment, you can help them expedite their saving timeline and enter the real estate market sooner than expected.

Something else that might be lost in the discussion surrounding gifted down payments is that borrowers could receive better mortgage terms. Sizable down payments typically result in lower loan-to-value ratios, meaning borrowers might be extended lower mortgage insurance premiums or better interest rates. In the end, recipients of gifted down payments will enjoy incredible savings over the life of the mortgage.

Believe it or not, you can experience tax advantages with gifted down payments. They can be allocated to your Registered Retirement Savings Plan (RRSP) for three months to obtain the tax benefits. That said, you must ensure that you maintain enough contribution room in your RRSP to facilitate the gifted sum.
remax.ca

Another benefit that comes with gifting money to your children earlier in their adulthood is that you get to enjoy it with them. Helping your family financially and enabling them to get into the real estate market is one thing. But being able to spend time with them in their new home, a home where you can all make lasting memories together, is a priceless gift for everyone.

How to gift a down payment

One of the components of gifting a down payment in Canada is a gift letter. It is a document from the gift giver to the home buyer outlining the amount of money being gifted, the property to be purchased, and disclosing that the money is in fact a gift and not a loan. Many banks will have a version of a gift letter for you to use.

In many cases, the bank will also ask for proof of funds.

RE/MAX Canada provided some other things you can consider before making the decision to gift a down payment:

First, it would be wise to disclose these funds to the mortgage lender when applying for a mortgage. Generally, banks will request a gift letter outlining a few things:

Amount of the gift.

Relationship between the giver and receiver.

A statement confirming that the money was a gift and not a loan.

In addition, while a gifted down payment can reduce the strain of the home-buying process, you still need to determine if you can afford to purchase a residential property.

Another thing that some prospective homeowners might need to realize is that the gift giver does not earn a stake in the unit. While this gift was integral to buying a detached house or condominium, it does not mean they are entitled to an ownership stake. To eliminate any possible confusion, be sure to consult with a real estate attorney to have this in writing.
remax.ca

If you’re looking to help your children get into the real estate market, we’re here to offer our expertise. Contact us today!

Tags down payment

Buying Real Estate Condos Investing Selling

3 Genius Ways to Generate Retirement Income With Your Home

Post author By cindycody
Post date October 12, 2023

Imagine a life where you can kick back, relax, and bask in the glory of your golden years, all while being financially secure. It’s the dream, right? But here’s the thing: you don’t have to solely rely on your savings or government pension. There’s a secret weapon in your arsenal – your beloved home! Your humble abode can actually help you create a retirement pension fund. So let’s jump right into the ways you can use your home to build that dreamy retirement fund you’ve always fantasized about.

Generate extra income by renting out part of your home

If you have extra space in your home (a room or an in-law suite), consider leveraging it as a money-making opportunity. The additional income can help you cover your mortgage payments, property taxes or other expenses. With the additional income flowing in, you might find yourself with the means to fund your retirement or explore new investment opportunities.

Or, if you have a serious case of wanderlust and you’re planning on traveling during your retirement, think about renting out your entire home while you’re away. Not only will this provide you with a steady source of income, but it also means you can enjoy your retirement adventures without worrying about your empty house.

Invest the profits from a downsize

Downsizing doesn’t have to be a daunting prospect. In fact, it can be a smart move to create a retirement pension fund. By selling your current home and moving to a smaller, more affordable property, you can unlock a significant amount of cash. And what do you do with that cash? Well, you can invest it in any number of ways to give yourself a steady stream of income during your golden years.

With a variety of property types available, the perfect fit for your portfolio will depend on your investment goals. That’s where we can help. Talk to us about the best kind of investment property for your specific situation.

Leverage your home equity to purchase a rental property

By leveraging the equity in your home to secure a loan or line of credit, you can become the proud owner of a rental property (a house or condo) that generates regular rental income. This can mean a steady stream of cash flow during retirement or as a supplement to your regular income. Plus, rental properties have the potential to appreciate in value over time, which can boost your overall wealth and leave a valuable asset for your family.

Read: 8 Reasons Why a Condo Is a Great Investment in Kitchener-Waterloo

Planning your next steps

Planning for your retirement is a big but exciting task. You’ve worked hard for your home and built up your home equity. Now you can leverage your nest egg to generate some additional income for your retirement. Imagine the peace of mind you could have in your golden years.

Make sure you do your research and consult with the right professionals (financial planner, real estate professional, etc.) to help guide you through some savvy financial decisions that can ultimately help you contribute to your pension fund.

If you have questions about downsizing or rental properties, we are here to help. Give us a call today!

519-746-5136
sold@cindycody.ca

Tags Retirement

Buying Real Estate

How To Pick The Perfect Location

Post author By cindycody
Post date September 7, 2023

Cindy Cody Team - Images of neighbourhoods and text reading "Real Estate. A guide to finding the perfect location"

“Location, location, location!” You’ve heard it before. In real estate, it’s a saying that means that there’s a lot of emphasis on where a property is located. A great location can make a property more desirable and valuable.

When you’re looking for your next home, you should also consider what your family values in terms of location. Think about things like amenities, walkability, and proximity to schools and work.

Consider these key factors in your search for the perfect location.

City or Country?

One of the first things you can decide on is the type of setting you’d like to live in. Does your family love lots of outdoor space, or do you live for the hustle and bustle of city living? Consider both your lifestyle and the cost of living in each scenario.

Neighbourhood Demographics

Your neighbourhood is a great place to make new friends, especially if you’re relocating from out of town. With that in mind, taking a little time to research neighbourhoods is a great way to learn about different areas. It’s also a fantastic idea to take a stroll in some of the neighbourhoods and get a sense of the place yourself. You can see who resides there and get a better understanding of the community. If you have a growing family, which neighbourhoods are popular with families? If you’re approaching retirement, which kind of community are you searching for?

Daily Routines & Commutes

Think about your day-to-day life. Is there a location that really enables you to have the most enjoyable life? For example, if you have a commute to work, is there a location that meets your needs and reduces your drive to work? Or is there a specific school you would prefer your children to attend? All of these factors can play a role in your decision-making process.

Your Social Circles

This may not be a daily “commute” but when choosing the perfect location for your next home, consider how far you want to be from your family and friends.

Crime Rates

If you’re not familiar with an area, checking out the crime rates in the neighbourhood you’re considering will give you a good idea of how safe you’ll feel compared to other areas.

Ask An Expert!

A real estate professional is a great resource for all things “location, location, location”. We live and breathe Kitchener-Waterloo real estate. Talk to us about your specific needs.

Happy house hunting!

Ready to start your house hunt?

We’re here to help. Talk to us about your needs and real estate goals today.

sold@cindycody | 519-746-5136

Buying Real Estate Home Decor home improvements House & Home

6 Simple Steps to Make Your Home Feel Lighter & Spacious

Post author By cindycody
Post date August 23, 2023

As your family grows, and each family member starts to accumulate their own belongings, you might find yourself getting a little tight for space in your home. To help you transform your living space into a roomy oasis, we’ve put together these simple tips. From clever storage solutions to strategic furniture placement, we’ve thought about how you can make the most of your space and make your home feel brighter and more spacious.

1. Declutter your spaces

We talk a lot about decluttering when someone is getting ready to sell their home. It’s the process of getting rid of things you don’t need or use anymore in order to create a more organized and peaceful living space. Well, you don’t need to sell your home to start decluttering. Your home will feel so much lighter in the end.

2. Choose functional furniture that fits!

If you live in an older home or have a less open-concept layout, you can really transform your spaces by choosing the right furniture. Swap out bulky furniture for more modern, sleep pieces. Not only will this give your space a fresh look, but it will also help create a better flow throughout the room. If you have items you’re not ready to part with, consider a coat of paint to lighten them up.

3. Discover the magic of mirrors

Did you know mirrors can actually make spaces look bigger? By strategically placing mirrors in a room, you can create the illusion of more space and light.

4. Light makes spaces look larger

It’s pretty amazing how lighting can make a room look bigger. By strategically placing lights and using different types of lighting, you can create the illusion of more space. If you’re feeling cramped in a particular room in your home, try experimenting with your lighting setup.

5. Make the most of your storage space

We’ve already talked about decluttering your spaces by getting rid of unused items. If you have things you’re not quite ready to part with, find a functional way to store them. By reducing clutter in your living spaces, your rooms will feel larger and more comfortable. Maximize your storage space for the items you want to use (but don’t want to see all the time). Ottomans and decorative boxes can provide functional storage in your living room, and you can leverage unused spaces around your home, like the space under your bed.

6. Embrace indoor-outdoor living

If you’re planning a big family get-together and need some extra room, don’t forget about your outdoor space! It can be a game-changer when you have a lot of people over. Why not create an awesome outdoor living room and dining area? And don’t forget to think about how your indoor and outdoor spaces flow together.

Looking to purchase a home with more space?

If you and your family are ready to upgrade to a bigger home, we’re here to help. Talk to us about your needs and real estate goals today.

sold@cindycody | 519-746-5136

Tags buying, Decluttering, home decor, Organizing

Buying Real Estate

Viewing A Newer Home vs. Viewing An Older Home

Post author By cindycody
Post date June 22, 2023

Looking for a new home is exciting. When you step into a house for the first time, there are many things you might immediately notice: current decor, lighting, flooring, and you might pick up on the home’s energy. You might even form an opinion based on your first impression. But it’s important that you take a deeper look at the house to determine if it’s what you’re searching for.

Your REALTOR® can help guide you through what to look for in the home, and may point out some things you didn’t notice.

Should you approach your tour differently if you’re viewing an older home vs. a newer home?

Over the years building codes have changed and building materials have evolved, so you may want to approach a newer home differently than an older home.

How you view a home also depends on your real estate goals, i.e. Are you looking for a property for yourself or as an investment? Do you want to make updates or do you want something turnkey? What are the non-negotiable features you’re looking for?

Here are a few things to look for and to consider when you view a property:

Viewing an older home

Are there older architectural characteristics in the home that add charm?
How does the yard and landscaping compare to some of the newer homes you have viewed? (Consider the size of the lot and the mature landscaping that can come along with an older home).
Is the home deemed a historical property? This could impact renovations and plans to update.
What is the status of the plumbing and electrical?
Does the floor plan work with your lifestyle? Often, older homes have smaller rooms and smaller closets.
If you’re planning on renovating, can you see the potential in the home?

Viewing a newer home

Does the floor plan work with your lifestyle? Many new homes contain open layouts. Think about how your family will use the space together.
If you’re looking for something move-in ready, can you see the potential in the home?
How energy efficient is the home?
If the new home is located in a new subdivision, does the location have nearby amenities that you’re looking for?

Of course, there are many more things to consider as you tour a property. Be sure to talk to your REALTOR® about your real estate goals so they can help you find the right property.

Have Questions About Finding A Home In This Market?
We’re here to help!

Contact us today
sold@cindycody.ca

Navigating Retirement & Homeownership

Post author By cindycody
Post date April 27, 2023

Transitioning into retirement is a big change in anyone’s life and it can cause you to re-evaluate your real estate goals. Both the decision to retire and what you choose to do with your current home are financial and lifestyle decisions – and important decisions that can impact how you choose to live your retired life.

Many people approaching retirement choose to sell their larger home and move into a more manageable property. For some people, downsizing means moving into a condo, which means less time spent on property maintenance. For others, it means moving into a smaller home and taking the opportunity to get rid of excess items in their home.

If you’re starting to plan your retirement and want advice on selling your home, strategic timing, or have questions about the real estate market, we are here to help. Contact us.

Here is some more information on the different homeownership options you may have for your retirement.

Retirement and Homeownership

Source: baseline.home-wizard.com

DOWNSIZING

Downsizing involves selling (or renting out) your current home and buying a smaller home.

There are many advantages to downsizing during retirement. A smaller home requires less maintenance, and can have lower taxes. It can also be better suited to reduced mobility that comes with aging, such as fewer stairs. Depending on how you finance the new home, downsizing can also reduce your monthly financial burden while on a fixed income.

Downsizing does require the management of the sale of your home (or transitioning of it to a rental property). If your home has appreciated significantly in value, there could be tax implications associated with a large capital gain with your home sale. Versus renting in retirement, downsizing still includes homeowner risks for unexpected major home repairs, which can be challenging when on a fixed income in retirement.

CASHOUT AND RENTING

This retirement strategy includes selling (or renting out) your current home and electing not to purchase a new home, but instead renting a place to live.

Depending on the financial situation of your current home (equity vs market value, remaining mortgage, etc.), selling your home and not re-investing in a new property can have a number of advantages. Freedom from home maintenance and not being responsible for property taxes are attractive aspects of renting. Plus, renting versus owning can make it easier to relocate in the future, as your lifestyle and needs continue to change during retirement.

On the other hand, becoming a renter brings the uncertainty of rent increases, which can be difficult when on a fixed income. Transitioning to renting also involves having to rely on a landlord for maintenance issues.

RELOCATING

For some, retirement brings the opportunity to move to a new location that is more consistent with your new lifestyle needs and desires.

Especially if your current location was chosen for the benefits of your children (school system, neighborhood, etc.), becoming an ’empty nester’ now affords you the opportunity to choose a location suited to your new priorities. This could be moving from the suburbs to be closer to the amenities of a more urban area, or relocating to the bliss of living in the countryside. A relocation can provide better weather conditions or access to important recreational settings. An important consideration for relocating can be improved proximity to family.
Read more.

Tags Downsizing, Retirement

Buying Real Estate Cindy Cody Team Selling

Have You Googled These Questions About Kitchener-Waterloo Real Estate?

Post author By cindycody
Post date March 30, 2023

If you have questions about the Kitchener-Waterloo real estate market, selling a home in Kitchener-Waterloo, or anything about real estate in general, you’re probably not alone.

We get questions all the time.

But sometimes people are too shy to ask, so they take their questions to Google for answers.

Today we’re taking a look at the top Googled questions about the Kitchener-Waterloo real estate market (and beyond).

What are people Googling when it comes to the Kitchener real estate market?

We used the “People also ask” feature of Google’s results to see the top Googled questions about Kitchener-Waterloo real estate. Here’s what we found:

Houses for sale in Kitchener

Many people are starting their home search on Google. They are searching for homes for sale around a specific price point.

You can find the latest homes for sale in Kitchener here.

Did you know a real estate professional can gather your specific criteria and notify you when properties that match become available? In fact, if you get in touch with us, we can let you know about properties even before they hit MLS.

What is the average house price in Kitchener-Waterloo?

Each month, the Waterloo Region Association of REALTORS reports key statistics from the previous month’s market activity, including average purchase prices. For example, in February 2023, the average sale price for all residential properties in Waterloo Region was $758,698.

How much is a detached house in Waterloo?

The WRAR monthly updates also break down the average sale prices by property type. For example, in February 2023, the average sale price of a detached home was $877,884.

Is Kitchener-Waterloo a good place to invest in real estate?

This is a great question! First, Kitchener-Waterloo is a vibrant and friendly community. KW is a fast-growing city, there are local education options, we have a thriving tech industry, a great Light-Rail Transit system, and there are great resale possibilities for residential or investment properties due to our proximity to the GTA.

Still not convinced? We spent some time answering questions just like this one.

What Are Top 5 Reasons to Invest in Kitchener-Waterloo Real Estate?

Why Is A Condo A Good Investment

Real estate agent

Some buyers and sellers aren’t quite sure where to start, so they use a generic search to find a real estate agent. There are lots of people who can help you sell your home, but you don’t want just anyone. Our recommendation is to work with a real estate professional who has the experience and the tools essential to help you achieve your real estate goals. For example, a network of local and out-of-town buyers, experience with the communities and strategies it takes to close a deal, and a trackrecord of trust and happy clients.

The Cindy Cody Team is connected, respected and proven. Learn more about why that matters.

RE/MAX Kitchener

RE/MAX is a trusted real estate brand, so we’re happy to see it pop up as a top real estate Google search. “For over 20 years, RE/MAX has been the number one real estate organization in Canada, and continually has the number one market share in virtually every region”.

Here’s something you might not know:

Cindy Cody is part of a cross-Canada network of RE/MAX agents. Which means, if you’re ever thinking about relocating, we can connect you with a top agent. Just ask!

If you have a question about real estate in Kitchener-Waterloo, we’re happy to be a resource for you. Contact us for all of your real estate needs!