Australia, anyone?

Not everything about Real Estate has to be so serious

Almost makes you want to move to Australia!

What do you think?

We here at Team Jamieson are new to the blogosphere and are still unsure what exactly people are looking for in terms of a Real Estate and Investment blog. While we know that we are still new, and so don't have a large following, we want to hear from You. 

What subjects would you like to see us cover? Are there any specific things we've done that you would like to see as a regular feature?

Why I’m Buying My Kids Their First House, When They’re Barely Old Enough to Ride a Bicycle



To view article Right Click on Image, Select View Image, and Zoom In.
Article belongs to MoneySense Magazine, December/January 2012 Issue

I’ve been saying it for years. 

By buying your kids a place now you can absolutely set them, and YOU, up for a much easier life financially. I’ll use my kids as an example. They are 5 and 6, and this year I am buying them each their first home.

I know, I know, that sounds crazy, but I have clients doing this very thing on a regular basis. It’s not rocket science, its simple math and a few hours of education with me.

Some of this money will be used to pay for their post-secondary education, and the balance will remain in equity in the property when I gift it to them if/when they are worthy of it.

Unlike Romana in the article, I won’t be charging them interest. After years of receiving a financial education from me, my kids are either going to live by those rules or not. If they do, I will be happy to give it to them, if they don’t they are kissing the house goodbye. To me, charging any sort of interest defeats the purpose of giving them a head start, and is not necessary if they have proven worthy of the gift. Just my two cents.

Simple, yet incredibly effective.

If you want to see the math and find out the potential return call me at 613.203.7333 or email me at julie@teamjamiesonrealestate.com.

Where to Put $100,000

Canadian Business Magazine (Jan. 23, 2012 Issue) has an interesting article which features the opinions of several experts on where to invest $100,000 in today’s market. The article, aptly called “where to put $100,000 now” features the quoted advice of 6 people. It is as follows: 

Larry Sarbit

Chief Investment Officer

Sarbit Advisory Services:

-          Put it in the US, it is cheap right now, but will have a big payout later

Kim Shannon

 President and Chief Investment Officer

 Sionna Investment Managers

-          Divide your fortune into 4 equal parts: Stocks, Bonds, Real Estate, and Gold

Steve Palmer

 President and CEO

 AlphaNorth Asset Management

-          Take a long term perspective and invest in a diversified portfolio of small-cap stocks

Sandy McIntyre

President and Chief Investment Officer

 Sentry Investments

-          Buy six or seven of the highest-quality dividend-paying stocks in business that have been around for 50 to 100 years. US, over Canadian, and the occasional European Investment. “a Diageo and a Nestle. When times are bad, people eat chocolate and drink booze.” 

Dan Dupont

 Portfolio manager

Fidelity Investments

-          Put it in global large-cap stocks 

Neil Jacoby

 President and Chief Investment Officer

 Aurion Capital

-          Equities, Corporate Debt, and High-Yeild bonds, but be prepared for the risk. 

Now, what is not in the article is my expert advice:

JULIE JAMIESON

Realtor, Real Estate Investor and Teacher

Team Jamieson Real Estate

As you all know, I’m big into real estate, and CANADIAN real estate. It’s a fact that at least 95% of the wealthiest people on the planet made their money in real estate.

Ottawa, despite what people think, is still a very affordable market. I know this sounds insane, but this year I plan to get approximately a 300% return on MUCH LESS than a $100,000 investment, and build my real estate portfolio by $650,000 in property in Ottawa. Call me if you want to do the same thing, 613-203-7333.

Keep an eye out for my upcoming blog post: Why I’m Buying my Kids Their First House and They’re Barely Old Enough to Ride a Bike.

The Importance of Disclosure

One of our favourite column-writing lawyers, Mark Weisleder, has another great article about the problems of disclosure. 

 

He mentions the plight of a couple selling their home. A week before closing, their basement flooded; something it had never done before. They paid for the repairs and, certain that it was a one-time thing and that the problem was fixed, they didn’t mention anything to the Buyers. A few weeks later, the basement flooded again, only this time the Buyers had to pay several thousand to fix the problem.

This situation is not an uncommon one. On the one side, you have basically honest people who didn’t know they needed to mention something. From their point of view, it had never happened before and they had paid to fix it, so the flooding was really a non-issue. They didn’t mention it, not out of spite or maliciousness, but just because they didn’t know they should have. 

On the other hand, you have a couple who is reasonably frustrated by this new expense that comes so soon after their new purchase. They had thought they were protected by the home inspection and by all the signed agreements, and yet here they were with a flooded basement. 

Unsurprisingly, the situation went to court. The Sellers were lucky that the judge sided with them in saying that it was a reasonable assumption that the flooding was a one-time occurrence given past history. Had it gone the other way, the Sellers could have been liable for several thousands of dollars above the cost of repairs. 

Mr. Weisleder summarizes the lesson quite well: 

The lessons from this case are:

 •  For Sellers, disclose all problems you know about. If you are not sure, err on the side of disclosure.

 •  If you as a seller sign an SPIS (Seller Property Information Statement), to be safe, do not permit it to be attached to the agreement. That way, you will be protected if you made a mistake in completing it.

 •  Buyers should not rely on the SPIS because it is not supposed to be a warranty; it is just to be used for information purposes.

 •  If something matters, always include it in your home purchase agreement. Do not rely on verbal promises or advertisements.

The moral of this story- ALWAYS disclose EVERYTHING. If you aren’t sure if it’s relevant, check with us and we’ll let you know if the information should be passed along.

Guest Post: Preparing your house for Winter

Here are a couple useful tips from Steve Otts at Ottawa Valley Home Inspection Ltd. 

Fall is the time to ensure that your house is ready for the oncoming winter. To get ready for the season of snow, start with the basics. Remove all the items from the yard (tables, chairs, kids toys, etc) and stow them away in your garage or shed. Drain and remove all garden hoses. Turn off the hosebibs (exterior taps) on the inside of the house and then open and drain the hosebib on the outside of the house. Even if you have the newer frost free hosebibs, it’s still a good practice to shut them off on the inside to be safe.

It is also the time to ensure that the grading slopes away from the house and that it hasn’t settled during the year. This is especially important with a new house or one that has had the yard dug up for any reason because the ground is still soft and can settle. It is quite important that the grade slope away from the house because during the spring thaw when the ground is still frozen it won’t absorb any water. Thus it will run along the surface downhill and you want it running away from your house and not towards your house and your basement.

It’s also the time to clean and inspect your rain gutters. If you have any trees around that are close to or higher than your house, you will probably need to clean the leaves out of them. This prevents a frozen blob of leaves from blocking the water flow during the spring thaw. At the same time ensure that the gutters and downspouts are securely fastened to the roof and walls.

Other items that should be done before winter are to get your annual inspection and cleaning of your gas or oil burning furnace. In addition, if you have a wood burning appliance, and use it, you should get the chimney swept.

It is also a good time to do a visual inspection of your roof, shingles and flashings. Use a good set of binoculars or hire someone to do it for you. Check all doors weather stripping and ensure it is in good useable condition and that it is not ripped or broken. Also check the caulking on the windows, you can use your binoculars to look at the second story windows.

Being prudent now before the snow comes will almost always save you headaches in the winter or spring.

Steve Ott

Ottawa Valley Home Inspections Ltd.

Building, Septic & WETT Inspections

Covering Eastern Ontario and Western Quebec

www.ovhi.ca

613-724-0868

Keeping Your Home Winter Safe and Saving Money

We Canadians are used to cold, but sadly, many of us have no idea how to winter proof our homes. Poor preparation and inattention can cost you lots of money in repairs and heating bills. Here a few quick tips on how to keep your home in tip top shape.  

      Insulate your attic hatch.

Heat rises, so if you are finding it hard to keep your house warm, your attic might be poorly insulated. This is also a great time to check your roof for any moldy, weak, or leaky spots. Trust me, you don’t want a house full of snow because you didn’t check.

Check for leaks and seal all doors, windows and cracks.

Just because your windows are closed, doesn’t mean cold air isn’t getting in. If your windows tend to sing on windy days, you probably have a leak. Make sure all the edges are properly sealed.  You can find the source of the leak by lighting some incense near a window and seeing which way the smoke blows.  

Clean out your ducts and vents. Make sure they are all sealed properly.

Wintertime is bad for allergies. Before winter comes along, have your ducts and vents cleared free of dust and debris. This will also help with the flow of hot air. Make sure all the ducts are properly connected and sealed. Last thing you need is to spend extra money on heating because all the air is escaping in your basement. Remember, the only thing duct tape can’t be used for is to seal ducts.  

Properly insulate all of your electrical outlets.

Make sure you hire a professional to do this! Foam gaskets should be used around all electrical outlets to prevent moisture building up around them and cold air from getting in. If you can feel air coming out of your sockets, you need to insulate.  

To keep warm, have a party.

Most homes have the thermostat set too high. Turning it down just 1 degree can save you lots of money. If your house is properly insulated, your windows and doors sealed, and your outlets plugged, but you still feel cold, invite people over. Body heat can be a cheap and efficient way of heating up your home. And fun to! Why did you think it was called a house warming? 

From all of us at Team Jamieson, we hope you have a safe, happy, and fun winter.

What if I'm a renter? Tips from Anna

I moved to Ottawa in 2005, and not including a brief stint in Residence, I have lived in rentals that whole time. I have lived in most of the types of properties available. In total I have lived in 3 apartments, 2 house rentals, and 2 “room” rentals. Over the years I have developed a keen sense of what to look for when you are renting, as well as what is involved in the whole process. 

As a regular feature, I plan to cover some of the following topics: 

• ·         Types of Rentals Available
• ·         Finding a roommate
• ·         How to protect yourself
• ·         How to find a place.
• ·         How to inspect a new, potential unit
• ·         What is included in the rent
• ·         Paying Rent; and
• ·         The lease: types, co-signers, etc.

The place to start when you begin to rent is to figure out exactly what you want and what you can afford. A good key is to start with a budget. Figure out exactly how much you can afford for housing per month. Take out the cost of phone, internet, cable, and any other amenities you are going to need. The final number will be what you can afford in rent per month. 

For example.my boyfriend and I can each afford $500 a month, for a total of $1000. The internet plan we use costs $60 a month. This means my boyfriend and I can afford to pay up to $940 per month in rent, utilities in.

Why is this budget so important? 

There is no point in looking at any places before you know how much you can spend. Not only that, but the type of rental you will be looking for will depend on how much you can afford. 

Anything less than $650 in Ottawa means you have almost no choice but to get a roommate, unless you want to live in student housing.

Between $500 - $750 you might be able to find your own place, depending on what you are willing to put up with. 

If you are willing to live with a roommate, than the options on housing are a lot greater. 

Your options of rentals are: 

Room in a House, Student Housing, House Rental, or Apartment

Each of these has their own distinct advantages and disadvantages, which I will discuss next time