The spring market in Canada is starting to heat up with record low inventory. Buyers have started to come back, as for the first time in the last few months Bank of Canada has not increased interest rates.

In fact, Royal Lepage has adjusted their national aggregate home price forecast to increase 4.5% year-over-year in Q4 2023. This is an opportune time for home sellers waiting in the sidelines, to finally start getting their home ready for sale and look into renovations.

When selling the place you’ve called home for the past five, 10 or 30 years there is always one question that comes to mind: How do I get the most money back on my home?

How can homeowners increase the ROI, or return on their investment? There are a ton of tricks and tips to increase the ROI when selling a home, but the number one piece of advice is to look into hiring a Real Estate Agent.

The right Real Estate professional can assist in setting an appropriate asking price which is influenced by the season, annual trends, neighbourhood and amenities offered in the area. They can also help with other things like organizing showings, and offering invaluable advice about possible projects that can be completed to upgrade your home and also increase sale price.

Other ways to ensure you are increasing your investment in your home upon selling is by putting some money back into the house before the sale sign is even hung.

Who is buying?

Speaking with your hired professional and by taking note of the demographics in the area can help you determine your target audience. Who will be looking at purchasing your home? A young family? An expanding family? A couple looking to retire? Investors? Perhaps it is some people who are looking to flip the property?

Learning your target demographic can ultimately save you from investing money into big projects that will do nothing to return on your investment. “There are a lot of buyers who just want to buy a home that is turn-key. Updating rooms like the kitchen, will have the greatest impact for them. However, you need to know who your buyer is so the upgrades will align with their wants and needs.” says Terry Osti, award-winning, REALTOR® at StilHavn.

Web appeal is the new curb appeal

Forbes reports that it is just as important, or more so, to have a strong web presence when selling your home as it will bring interested buyers to the door. Senior director of PR at Realtor.com, Julie Renyolds told Forbes that ads featuring walk-through tours are clicked on 150% more than ads without them.

Curb appeal still a good investment

HGTV says that curb appeal is still just as important as ever. After all, you can only make a first impression once.

Ensuring cracks in sidewalks and driveways are patched, windows and doors are caulked and door knobs, locks and hardware are upgraded are low cost ways to boost the return on investment upon selling.

Taking that extra initiative and planting flowers and perennials in the garden can also have a lasting impression and increase the value of the home. Interior designer Brittany Farinas of House of One told Forbes.com that adding some greenery can give the outdoors a whole new look.

New siding, although a little more costly, is reported to rank high on the cost vs. value report according to HGTV. According to Forbes.com, homeowners can expect to pay between $1,000 to $16,000, depending on the size of the home and the type of siding material used, but it will not go unnoticed.

Sound structure is key

Interested buyers aren’t going to be as thrilled about an upgraded kitchen if the basement is flooding due to poor plumbing or cracks in the foundation.

HGTV says that investing that facelift money into ensuring the roof is in good repair, the foundation is sturdy, the furnace is functioning properly and all electric and plumbing is up to code will ensure the asking price won’t plummet in order to compensate for the necessary repairs.

Replacing windows can cost around $15,000 for a 2,000-sq-ft home with new vinyl windows, but RE/MAX predicts a return on investment of 75%.

Focus cash on bathrooms & kitchen

The kitchen and bathrooms are where a lot of time is spent in the home and architect Steve Straughan based out of Los Angeles’ KAA Design Group says they are the areas of the home that interested buyers can tell if money has been well spent.

According to RE/MAX, kitchen renovations such as countertops are one of the top three changes that lead to a high return on investment. Countertops can be expensive, but $3,000 stones such as granite or quartz can make a huge difference. To further elevate your kitchen, spend around $5-10,000 for stainless steel kitchen appliances. Kitchen renovations typically have a return on investment of 75-100%, usually the highest ROI.

Bathrooms can often always use a facelift — and, for certain, a deep clean. Every bathroom is different, but it is one of the main focuses that buyers look for in a home. Renovations can vary, but having a vanity with marble countertops or a frameless glass shower are elements that can draw buyers. A tip recommended by RE/MAX is to analyze your bathroom and figure out the strengths and weaknesses of it. A typical bathroom renovation is between $5-$15,000 and can have a return of 62%.

Updates and remodels should focus on creating open and inviting spaces and one of HGTV’s tips is to skip that soaker tub and put in a grandiose walk-in shower — or steam shower. After all, who really has the time anymore to take lengthy soaks often enough to justify the space the tub takes up.

Creating additional space

Does the home have an attic with dimensions that would allow the creation of an additional bedroom or office space? Can you extend the deck or create an outdoor living area or sunroom? Can the basement be finished and transformed into a cozy living space? Adding more functional spaces in your home can make it look larger and eliminate any unused spaces. Forbes predicts that the average cost to finish your basement is $22,850 in 2023.

HGTV says keep other homes for sale in the area and your target audience in mind because you don’t want to renovate your home to the extent that you price yourself out of your market.

Go Green

Concentrating on making the home energy efficient with better insulation, window and door replacements can not only increase your ROI when you sell the home, but you will also notice instant savings on your energy bills. By making such upgrades, AIC says the ROI is typically between 50-75%.

Plus, as of December 1, 2020, Canada has offered a number of grants for homeowners to make energy-saving upgrades.

At the end of the day, it isn’t always the fun and sexy renovations that add the most value to the home. Sometimes it’s the dirty work that goes the extra mile when selling. But, to make sure you are getting the best return on your investment, be sure to speak with a professional Real Estate Agent who can help answer any questions you may have along the way.

The post Renovating your Return on Investment for the Best Results first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Snelgrove

Crime rates: 26% lower than Brampton average
Real estate prices: 12% higher than Brampton average
School rating: 73.3/100
Overall Livability Score: 87/100

Snelgrove lies on the border of Brampton and Caledon. The neighbourhood has a variety of grocery stores and plazas that are highly accessible. There are numerous parks here such as the Conservation Drive Park and Heart Lake Conservation Park that are perfect for children to play outdoors. Snelgrove is also near Highway 410 which makes it convenient for families to travel outside the town. While the real estate prices are higher, there are mainly two-storey detached homes that are spacious and surrounded by nature.

Northgate

Crime rates: 13% higher than Brampton average
Real estate prices: 25% lower than Brampton average
School rating: 67.8/100
Overall Livability Score: 85/100

Northgate is located in east central Brampton and is considered an older neighbourhood in the city. However, it has a diverse combination of stores, services, and amenities that make it easy to run errands. The average real estate price here is cheaper than the Brampton average because it consists of housing such as detached, semi-detached, and townhouses. This allows families to choose whichever housing option they feel is the perfect fit for them in terms of size and budget. Northgate also contains 10 outdoor parks and recreation centres that are all ideal for families with children.

Westgate

Crime rates: 1% higher than Brampton average
Real estate prices: 12% lower than Brampton average
School rating: 68.3/100
Overall Livability Score: 85/100

The average price of a single detached house in Westgate is $1.06 million, 13% lower than the GTA average. Single detached homes make up most of the housing in Westgate with some townhouses as well. This neighbourhood is quiet and family-friendly with lots of nature and open spaces. There is also the Bramalea City Centre shopping mall that is under 10 minutes away by car and is one of the largest shopping malls in Canada with over 300 outlets.

Heart Lake East

Crime rates: Equal to Brampton average
Real estate prices: 11% lower than Brampton average
School rating: 65.8/100
Overall Livability Score: 85/100

Although the school rating is lower than the previous neighbourhoods, Heart Lake East consists of 7 public schools and 6 Catholic schools that give families a variety of options to choose from. The highest ranked school is St Agnes Separate School with an 87% proficiency. Heart Lake East is also near the Heart Lake Town Centre and the Trinity Common Mall. The 9 parks in this neighbourhood provide families with children an open area with lots of green space.

Brampton West

Crime rates: 100% lower than Brampton average
Real estate prices: 20% lower than Brampton average
School rating: 58/100
Overall Livability Score: 84/100

Brampton West is right next to downtown Brampton, making it accessible to many businesses and ancient buildings. There is also a nearby GO train that can take residents to Downtown Toronto in about 40 minutes. A single detached home is typically priced at $945,000, 23% lower than the average price in GTA. The diverse population makes Brampton West have a high livability score with a mix of restaurants and shops.

Madoc

Crime rates: 18% higher than Brampton average
Real estate prices: 28% lower than Brampton average
School rating: 57/100
Overall Livability Score: 84/100

Madoc is an older neighbourhood that is west of Highway 410, allowing residents to reach Downtown Toronto in 35 minutes by car. The housing contains older detached and semi-detached homes compared to other parts of Brampton, but it still has a mix with townhouses and apartments as well. Restaurants in Madoc are also known to be very diverse with ethnic cuisine. The area has 12 parks scattered throughout, including one that can accommodate ice-skating.

Fletcher’s Meadow

Crime rates: 11% higher than Brampton average
Real estate prices: 3% lower than Brampton average
School rating: 64.3/100
Overall Livability Score: 84/100

This neighbourhood is north-west of Brampton with a 40,000 population. Rose Theatre is a popular venue for shows that are scheduled throughout the year. Outside the Rose Theatre is Garden Square where there are daily shows including concerts and movie nights. Housing styles available include detached, semi-detached, and townhouses. The average school rating may not be the highest, but Ray Lawson is the highest ranked school in the neighbourhood with an 83% proficiency.

Southgate

Crime rates: 23% higher than Brampton average
Real estate prices: 33% lower than Brampton average
School rating: 66.6/100
Overall Livability Score: 83/100

Southgate is in southeast Brampton and is one of the older neighbourhoods. However, it is a convenient location due to its closeness to Bramalea GO and Bramalea City Centre. There is a large variety of housing options here that are all below the average price of homes in the GTA. Single detached homes are $965,000 and semi detached homes are $850,000. The downside to this neighbourhood is that the streets become extremely busy during rush hour with a lot of traffic.

Brampton East

Crime rates: 14% higher than Brampton average
Real estate prices: 15% lower than Brampton average
School rating: 58.6/100
Overall Livability Score: 83/100

The main advantage of Brampton East is that it is a quiet neighbourhood while also close to several amenities. It has single detached homes that are $1 million with decent sized lots. Housing styles include a mix of detached, semi-detached, townhouses, low-rise, and high-rise apartments. The West Humber River Valley is a recreation trail that is a popular destination for residents to enjoy some time in nature. Meadowland Park and Peel Village Park are also open green spaces that have sports fields and playgrounds for children.

Northwest Sandalwood Parkway

Crime rates: 5% lower than Brampton average
Real estate prices: 4% lower than Brampton average
School rating: 67.2/100
Overall Livability Score: 83/100

This neighbourhood is relatively newer with higher real estate prices compared to Brampton East and is located near Snelgrove. A single detached home is priced at $1.13 million, 7% lower than the average price in the GTA. Although this is a newer community and it is still evolving, there are restaurants that feature diverse cuisines. This neighbourhood is perfect for families who prefer newer homes, but also a quiet area with well established neighbouring regions such as Snelgrove and Fletcher’s Meadow.

The post Best 10 Neighbourhoods in Brampton for Families first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Why is that?

Simply put, selling a home takes a lot of time and effort. Although FSBO is not an impossible path by any means, there are a number of key points to keep in mind before choosing to oversee the sale of your home.

Not only are you responsible for all aspects of putting your home on the market, including, but not limited to, setting the listing price, advertising the property and setting up as well as being in attendance for showings for potential buyers, you’ll also have to negotiate in terms of the sale, including price, closing date and more. In other words, instead of having multiple specialists to help you with the sale of your home, you will be the all-rounded expert in all fields.

For many home sellers, these tasks are worth their time and effort in lieu of paying out commission to a REALTOR®.

But to backtrack just for a moment, let’s look at setting the listing price a little more closely:

One of the biggest risks associated with selling your home on your own is not hitting the “sweet spot” of home prices. Market changes can cause housing prices to fluctuate. If your house is overpriced, you might find it sitting on the market for longer than what you might have expected. Additionally, prospective buyers may shy away from a home that has been sitting on the market for an extended period of time because they might think negatively about the house or the neighbourhood.

On the other side of the coin, selling the house for too little benefits no one except the buyer. If trying to avoid paying commission is the primary motivation behind selling your home on your own, but you undervalue the price of the property, the cost-savings benefit of FSBO might not be fully realized.

This is one of many areas that working with a REALTOR® can come in handy. Real Estate professionals have access to data on actual selling prices  – not listing prices – and would be familiar with relevant market demands and changes in your neighbourhood helping to provide analysis of current trends.

Some Risks when you decide to sell on your own:

• Leaving money on the table as FSBO don’t get as much exposure without the help of a REALTOR who is well connected to buyer agents
• Will have to pay for legal, marketing costs yourself
• Risk that home defects have not been documented, running into legal issues down the line
• Time spent trying to list, market and negotiate your own transaction
• Safety concerns when showing your own home
• Wasting time and efforts by staging and showing your home to potentially unqualified buyers
• First time home buyers may be apprehensive to seal a deal without the help of a professional

Statistics show that selling your home with the assistance of a professional REALTOR® will garner you a bigger profit. According to the National Association of REALTOR®’s 2022 Profile of Home Buyers and Sellers, the average FSBO home price was $225,000, while the average home price sold by an agent was $330,000.

That report also showed that only 10% of home sales in the U.S. were FSBO. It also stated that 86% of buyers purchased their home through a real estate agent or broker, a share that has steadily increased from 69% in 2001.

Only 28% of FSBO home sellers decided to market their homes on websites including social networking websites and FSBO websites. However, it is evidently a useful platform to use because 51% of buyers found their home on the Internet. Other FSBO sellers marketed their homes through friends, relatives, or neighbours (28%) or yard signs (20%).

The most difficult tasks for FSBO sellers cited in the report include getting the right price (16%), understanding and performing paperwork (13%), selling within the planned length of time (10%), preparing home for sale (6%) and having enough time to dedicate to all aspects of the sale (1%).

Although you may think there is no one better qualified to show off your house than yourself, a REALTOR® can ensure the presentation of your home goes as smoothly as possible.

Not only can a REALTOR® offer expert tips on staging your home to look its best, they are also able to highlight certain features or aspects of the home that the homeowner may unintentionally overlook during the presentation process. REALTOR®s also know the current trends as to which designs or furniture arrangement can attract buyers. For those pressed for time and find themselves juggling a career and family, working with a REALTOR® can be a wise investment.

The ultimate goal in any home sale process is to get as many eyes on, and as many people passing through, the property as possible. A REALTOR® can not only have your property listed on the Multiple Listing Service (MLS), they can help promote the property via flyers, pamphlets and postcards with eye-catching photos and major selling points to help drum up interest.

These are costs that FSBO sellers would otherwise be responsible for absorbing.

Another benefit of using a REALTOR® is the exposure they can provide to other agents who might have the perfect buyer for the property already in mind. An agent tour of the home early in the sales process allows other agents to ask questions and gather information about the property that cannot be discovered through pictures and MLS information alone.

Most importantly, a REALTOR® is there to represent your best interests as a seller.

Your REALTOR® can help you objectively evaluate each offer without compromising your marketing position. With a REALTOR® in your corner, they serve as a bit of a buffer between you and the seller. REALTOR®s can solicit honest and open feedback from prospective buyers, who may not be as candid when dealing with a homeowner on a one-on-one basis.

And when you’re lucky enough to reach the offer stage, they will not only help you devise a win-win agreement that will appease both parties, they can also help walk you through the process of appraisals, inspections and financing – tasks that you may not be as familiar with as a FSBO.

Keep in mind that several different variables can arise between the sales agreement and the final closing of the property, as both buyers and sellers have various legal responsibilities that need to be fulfilled.

REALTOR®s carry Errors & Omissions insurance, which serves to protect parties from potentially financially-crippling liability should they be brought to court for negligence, errors, failure to disclose, or other possible reasons.

Your home is among the most valuable assets you’ll ever own. When it comes to selling your home, trust a professional REALTOR® to ensure you get the job done right without undervaluing your home.

The post FSBO: Everything You need to Know first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

An economic downturn could stress you out if you’re selling your home. A contracting and uncertain economy doesn’t usually yield top dollar for home sales.

At RankMyAgent, we aim to make the home selling process more manageable. So this article explains what a recession entails and tips to sell your home for the best price during a recessionary environment.

What is a Recession?

The traditional definition of a recession refers to two consecutive quarters (three-month periods — so two consecutive quarters equal six consecutive months) of declining Gross Domestic Product (GDP). But this definition comes with numerous asterisks.

Even if Canada faces two declining quarters, we may not be in a recession. We continue to face record-low unemployment rates, and in a recession, unemployment peaks.

A recession depends on numerous factors like employment, consumer spending, and GDP. An “official” recession usually occurs once a group of leading economists looks at these factors and determines we’re in a recession.

What Can We Expect During a Recession?

A recession’s outcomes and contributing factors are a “Catch-22” — i.e., the presence of the factors indicates a recession, but the same circumstances also result from an economic downturn.

We usually see the following during a decline:

• Layoffs: Businesses fear the unknown and want to reduce spending when the economy begins to tumble. You can expect layoffs in business departments that aren’t critical or where companies previously overhired.
• Less consumer spending: People are also fearful when we hit a recession. We’re scared of losing our jobs or taking a loss in the stock market. As a result, we might spend less and save more of our income for a rainy day.
• Depressed stock market: Investors may sell their stocks and choose safer investments. So, you can expect stock prices to decline. Some corporations also don’t fare well during a recession, and their stock price reflects that.
• Higher interest rates: This isn’t true for all recessions. But in our case, a recession may be caused due to the Bank of Canada increasing borrowing rates to tamp down inflation. This would make buying a home and making mortgage payments more expensive.

These factors can turn the residential home market in favour of the buyer. We’re more cautious about making significant financial decisions in a recession. We’re also unsure whether we can hold our job or afford increasing interest rates.

As a result, there are fewer buyers on the market. We might wait until economic conditions are more positive and confident before applying for a mortgage and making the largest purchase of our life.

But the number of sellers remains the same or even increases during this time. Some Canadians may need to sell their second home to cover costs or downsize to afford their mortgage in a poor economic environment.

Tips for Selling Your Home During a Recession in Canada

1. Rethink if You Need to Sell

Housing prices tend to peak before an economic decline and slide once a recession becomes a reality.

Selling in the middle of the downturn might not bring you the best price. Downturns tend to be buyer markets, where homebuyers have more leverage. You won’t likely have the same bidding wars or unconditional offers we saw a year ago.

Sometimes, you might not need to sell an investment property or move into a larger home right now. It’s best to consider whether entering the real estate market is required.

2. Sell Sooner Rather than Later

Past recessions show a history of dipping home prices. If you plan to sell in the near future, it’s better to do it as soon as possible. You’re only going to face tougher selling conditions.

Otherwise, you should wait until the economy is more positive before you sell. Home prices tend to fare better when there’s financial prosperity among Canadians.

3. Don’t Overprice Your Home

You might be used to seeing bidding wars and homes selling for hundreds of thousands of dollars over asking. But the market right now might not have the same prospects. You should temper your expectations to something reasonable.

Working with a real estate agent can help you set a reasonable selling price. Additionally, a realtor can guide you towards getting the best dollar for your property. They might suggest minor renovations or staging to bedazzle the prospects.

4. Give Your Home Some Minor Renovation

Minor renovations, deep cleanings, and restoring curb appeal can help move your home on the market. These changes make your home shine in photos and showings.

You don’t need to overhaul your entire kitchen. It may not be worth it in the current environment since labour is in short supply — contractors aren’t as open to negotiations or discounts. At the same time, home prices are going down.

Contributing your own labour by refreshing walls with a coat of paint or deep cleaning your carpets may be what you need to increase your chances of selling. A clean and refreshed home can help potential homebuyers envision themselves living there.

5. Consider Renting your Property Out Instead

Cities like Toronto and Vancouver are seeing record-high rent prices because surging interest rates have left prospective buyers unable to purchase a home — therefore, many Canadians continue to rent.

Some sellers who aren’t getting the offers they hoped for have turned to the rental market because the sky-high rent prices make being a landlord much more appealing.

If you aren’t in a rush to sell, renting out your property until better economic conditions might be an option to get the best return on investment from your property.

Recessions don’t have to be scary. Yes, there’s a fear of layoffs and depressed stock prices, but things rebound eventually. If you’re planning to sell your home during a recession, it’s vital to temper expectations. You can’t expect your home to sell for the same amount that homes sold for during a growing economy.

The post How to Navigate a Recession as a Canadian Home Seller first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Whatever the case, numerous tax and legal considerations exist when you leave Canada — especially in the home selling process.

In this article, we talk about the many aspects of selling your home as you leave Canada and what you should consider.

Non-Resident Status

When you leave Canada to live in another country, you sever residential ties in Canada. This could mean selling your home, revoking your driver’s licence, or leaving clubs and organizations. As a result, you usually become a non-resident of Canada.

You become a non-resident for income tax purposes at the latest of:

• The date you leave
• The date your spouse or common-law partners and dependents leave Canada
• The date you become a resident of the country you settle in.

As a result, you aren’t obliged to pay all the same Canadian taxes as before. When you leave Canada, it’s best to speak with a tax professional to understand your obligations.

Departure Tax

One implication of becoming a non-resident is departure taxes — various taxes you must pay due to your departure.

When you leave Canada, the Canada Revenue Agency (CRA) deems you to dispose of certain types of assets at fair market value and reacquire them at the same price. This creates a capital gains tax that you need to pay. Accountants generally refer to this as a deemed disposition.

This deemed disposition on departure applies to properties like jewellery, paintings, and company shares (excluding TFSA or RRSP shares). So, your home is not deemed to be sold when you leave the country.

How to Notify CRA that You’re Leaving Canada for Good and File Your Canada Departure Tax Return

When you leave Canada, you need to file a departure tax return to notify CRA that you’re leaving. You generally need to file this tax return by April 30th of the year following your departure. The purpose of this tax return is to

• Record the date you leave Canada and change your residency
• Report the properties you own in Canada
• Prepare various tax forms
• Report and pay any departure taxes.

Leaving Canada and Your Principal Property

Capital gains are only taxable if you sell your home — suggesting it’s your principal property — when you’re no longer a resident. While, if you’re a resident, capital gains tax is generally exempt because your home is your principal residence.

When you depart from Canada, you usually have two options to deal with your principal property:

• Sell your property while you’re still a resident of Canada and have capital gains exempted through the principal residence exemption.
• Wait until you’re a non-resident to sell. In this case, the principal residence exemption is still generally available for the years in which you owned the property as a Canadian resident and fulfilled the other criteria for the principal residence exemption.

Selling Your Home as a Non-Resident

As a non-resident selling your home, you are liable to capital gains taxes because non-residents cannot access a principal residence exemption. In this process, you must notify CRA and complete Form T2062.

You’re generally liable to capital gains taxes in the years you’re a non-resident. For example, suppose you owned a home from 2003 to 2022.

• The home was your principal residence between 2003 and 2018.
• In 2018, you became a non-resident and moved out of the country.
• In 2022 you sold your Canadian home as a non-resident.

In this case, you’re likely liable to capital gains tax between 2018 and 2022 because the property was no longer your principal residence in these years.

Once the home is sold, you need to inform CRA of the sale within ten days after the sale closes. You make this notification through Form T2062. If you don’t, there’s usually a penalty of up to $2,500. The form requires you to estimate your capital gain or loss on the sale.

The property buyer may also assist in the tax collection process by withholding taxes from the due proceeds. This amount could be 25% of the purchase price being held up for months. So it’s best to be prepared for such a situation from a cash flow perspective.

When you sell your home as a non-resident, speak with a tax professional to understand your tax obligations. It will prevent surprises from hitting you in the face when you least expect them — like a 25% withholding tax on the sale of your Canadian property.

Repay Your Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) lets Canadians withdraw from their registered retirement savings plan (RRSP) to buy or build their home.

Currently, the withdrawal is limited to $35,000, and you must repay the amount within 15 years. If you don’t repay the amount, it’s included into your RRSP income on your tax return, which could have significant income tax consequences.

If you choose to leave Canada, you need to repay your HBP or face an income inclusion for the amount. The balance of your HBP is payable on the earlier of:

• Before the date you file income tax for the year you become a non-resident;
• Sixty days after leaving Canada.

So if you’re planning to emigrate from Canada, it’s essential to ensure you have the funds ready to return whatever you borrowed from your RRSP to purchase your home. Otherwise, you’ll be on the hook for a lot of taxes!

Leaving Canada has many tax implications. Selling your home after you’ve left the country complicates this situation. If you’re leaving Canada or selling your home as a non-resident, it’s vital to speak with a tax professional and experience realtor to understand the implications of your decision.

The post Leaving Canada and Selling Your Property: What You Need to Know first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The metaverse isn’t just another Bitcoin. It’s not even a recent concept! The metaverse simply describes integrated 3D virtual worlds — imagine games like Roblox or World of Warcraft. These games have been around for decades!

But as technology advances, companies are finding new ways to put the metaverse to use. McKinsey believes that the metaverse could drive physical product sales, reduce the need for physical stores, and enhance in-store experiences. The consulting firm further found that 64% of consumers surveyed were excited about shopping in the metaverse.

This article discusses the metaverse and how it may affect the real estate industry.

What is the metaverse?

The metaverse is any online 3D world where you can interact with others via an avatar. We’re used to metaverses through video games. But companies now want to apply the technology to industries beyond gaming.

For example, instead of using a video conference to meet with someone halfway across the world, you could meet in a metaverse and engage in new ways. Integrate this experience with virtual and/or augmented reality and create a much more immersive experience than just a ZOOM call.

You could also create better digital shopping experiences. Instead of flipping from webpage to webpage, consumers may someday visit virtual malls from the comfort of their homes. Here, people could purchase real-world items in a more mesmerizing shopping experience, and this better user experience could translate to more sales.

The possibilities for the metaverse are endless. And the industry is only beginning. That’s why everyone has high hopes.

Many people are already investing in the metaverse by purchasing land in specific digital universes, hoping that the value of these digital properties will appreciate.

How does buying metaverse land work?

Some metaverses let you purchase unique digital land and other properties. Big names like Snoop Dogg and Steve Aoki already own properties in a metaverse called Sandbox. Decentraland is another popular network where people can purchase unique parcels of land.

Metaverses usually have their own cryptocurrency used as a medium of exchange. Decentraland’s currency is called MANA, for example. To purchase real estate on Decentraland, you ultimately need MANA.

After obtaining the necessary currency, the land purchase process depends on the specific metaverse. Each has its own procedures.

Many assign you an ownership ID to the digital land parcel, similar to an actual deed. Buyers may need to show proof of their real-life ID and address too. Your virtual deed could also come as an NFT.

Like the real world, these properties can be anything from houses to apartments to commercial storefronts. It can also be a plot that you develop into a customized residential or commercial space.

Unlike reality, land in metaverses is infinite. There’s also usually no travel time between two points in a metaverse. In the real world, land scarcity and a property’s location determine a building or land parcel’s value and cause it to appreciate.

A particular area of a metaverse might appreciate for other reasons, however. If you own the digital parcel beside Snoop Dogg, you could expect that that land could fetch a nice premium. High-traffic areas are generally the ones that sell for big dollars.

For example, one parcel of Decentraland land sold for $2.4 million worth of MANA in late 2021. This piece of land was located in the “Fashion Street” area of Decetraland, making it highly valuable. The purchaser, tokens.com, hopes to one day build a virtual shopping centre to sell virtual clothing for digital avatars.

In addition to infinite land, there’s also the potential for infinite metaverses. If Google, Meta, and other large tech companies all started a consumer-targeted metaverse, this could reduce the popularity of Decentraland or Sandbox and then reduce the value of all land there as investors rush to invest in a new metaverse.

Just think of the rise and fall of other websites and networks! You don’t know if your metaverse will be the next MySpace or Tumblr.

How Could the Metaverse Affect Tangible Real Estate?

While the potential for a new way to “invest” in real estate might become viable someday, how can the metaverse affect the real estate we know? One way is through more immersive showings and the ability to meet online in the metaverse.

Realtors currently use many ways to display a property. Photos are the most common. But videos, 3D renderings, and 360-degree cameras are increasing in popularity too.

But imagine a metaverse where potential buyers can walk through online replicas of houses on the market. Suddenly, buyers in foreign locations can view a listing as if they’re there. This could help increase the draw and attraction of a house and encourage more buyers.

Simultaneously, a realtor can take buyers through the property and interact with them in the metaverse as if it was a real-world showing.

The metaverse could also change home buying by giving buyers, sellers, and brokers a place to meet. As a buyer or seller, you may someday have an initial consultation with a realtor in the metaverse when an in-person meeting isn’t viable. Or, suppose you meet your mortgage broker in the metaverse. The ability to show and view facial expressions and body language could help you explain your needs and allow realtors or brokers to reveal how they can help.

The metaverse is not a new technology. But many companies are now trying to apply it to new industries. Buying and selling real estate in the metaverse has significant actual dollar values, though it comes with numerous risks.

For real-world homebuyers and sellers, the metaverse has numerous applications in how we’ll someday view a home or meet with the people who help us in the home purchase or sale process.

The post Real Estate and The Metaverse: Unique Potential for the Industry first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Almost one year after going public, Airbnb has an enormous market cap of over $106 billion, which is approximately $60 billion higher than Hilton’s market cap and $93 billion higher than both Choice and Wyndham hotels. As a property owner, adding an Airbnb to your portfolio, or turning one of your current properties into one can become a highly profitable venture. However, like any business move, research is needed to make sure your Airbnb profits can be maximized.

How are Airbnbs doing in this stage of the pandemic?

While higher vaccination rates have allowed North America and other well-vaccinated countries to inch closer back to normal, it seems almost intuitive a business-like Airbnb would be disadvantaged in a pandemic. There is truth to that while Airbnb has faced difficulties such as having to lay off a quarter of its workforce, the company has weathered the pandemic better than some of its other counterparts in the hospitality industry. Airbnb, compared to companies like Expedia and Marriott, experienced much smaller drops in revenue during the advent of the pandemic. Since its IPO, Airbnb has had gains in revenue. While consumer trends in housing accommodations for travel have changed, seeing less short-term rentals and more longer-term stays, new Airbnb hosts have collectively made over $1 billion during the pandemic. If you are willing to attract longer-term rather than shorter-term tenants, and your Airbnb is located in a travel destination such as Toronto, Montreal or Vancouver, a profitable Airbnb may be in your future.

What are the regulatory burdens to making my property into an Airbnb?

It’s no secret that Canada is in a housing crisis, and some feel that something that contributes to that housing crisis are Airbnbs. Thus, regulatory risk is a serious consideration for those thinking of running an Airbnb. Airbnb regulation, like housing regulation, can be done at both the municipal and federal level, so different jurisdictions will approach Airbnbs differently. Toronto for example, requests that all short-term rents in a dwelling unit (essentially Airbnbs and other bed and breakfast type ventures that are rented out for less than 28 days) are registered with the city and collect a 4% Municipal Accommodation Tax.

Edmonton also requires short-term rental owners to have licenses for their dwelling, but no Municipal Accommodation tax like Toronto. British Colombia is more on Toronto’s end of the spectrum regarding Airbnb regulation, collecting 8% provincial sales tax and up to a 3% municipal and regional district tax on short-term rentals. BC is also a good example of how provincial regulations can mix with municipal regulations, as Vancouver (like Toronto) limits short-term rents to primary residences. Overall, there is quite a bit of variation in Airbnb laws through Canada and North America as a whole – New York for example, features a total ban on certain apartments being rented out for fewer than 30 days.

Before getting a lawyer, there are many online resources to educate yourself on your jurisdiction’s Airbnb regulations. Airbnb’s website features regulatory hubs for potential hosts in each city. Be you in Calgary, New York or anywhere else, Airbnb likely has a nice digestible summary of all relevant regulations an Airbnb host should know. Aside from Airbnb, Provinces and Municipalities also feature education resources, such as this 10 things you should know about short-term rentals article on the City of Toronto’s website. Of course, only lawyers can provide legal advice, but a simple google search can provide you with a quick baseline of knowledge of what you may be dealing with as an Airbnb host.

How should I run my Airbnb?

So, after examining the state of Airbnb overall and the regulatory burdens associated with short-term rentals, you’ve decided you want to proceed with owning an Airbnb. How do you run it? Considering that over 63.5 million reviews on Airbnb average 4.8 stars, excellence is the standard for a successful short-term rental venture.

Before you start Airbnb-ing, insurance is something you should strongly consider to protect your investment. Airbnb offers its own host insurance, but other private sector entities can provide insurance as well. Once insurance is settled, there then comes the question of how you stock your Airbnb. Perhaps you have great taste and a love of furniture and interior design – you can probably skip this paragraph then. However, if you need a little help deciding what to buy to make your short-term rental unit amazing, HostGPO.com is a great resource. HostGPO is a buying group for short-term rental companies, where members get access to “the best deals on furniture, supplies and more”. For subscribers or those who are using their 3-month free trial, Airbnb owners can get access to brands such as Pottery Barn, Brooklinen, Helix Sleep and more for your furniture, amenities and textile needs.

Once your Airbnb is stocked and looking nice, you must now post your listing with photographs of your Airbnb and a written description. The photograph is key – like how real estate photographers can help a listed house get sold, Airbnb photographers can help owners receive new tenants. It is said that the right photographer can get you 24% more bookings, and a 26% increase in Airbnb prices. Once people purchase a stay at your listing because of the excellent photo, they get to stay in your nicely stocked property, and the five-star reviews will start rolling in.

The Airbnb learning never stops

Like any continuous venture, the learning of running an Airbnb never stops.Learnbnb.com is one of many excellent online resources that can guide new Airbnb owners to success. Google (or Bing!) is your friend and can lead you to new information to help maximize your Airbnb investment. These resources can lead you to continually improve and refine your Airbnb process. Airbnb also publishes important information for owners, that can give data points that suggest guests note helpfulness, communication and friendliness as important factors in getting a five-star review. Any investment has risk but done right, an Airbnb can be very profitable. Download the Airbnb app, and get started.

The post How to turn your property into an Airbnb first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Home insurance isn’t mandated by law like car insurance. However, your home is likely the largest single purchase of your life. It’s vital to ensure you’re covered in events such as a flood or fire. Additionally, a home insurance policy is commonly mandated by mortgage lenders as a condition to your mortgage.

In this article, we explain the basics of home insurance to new homeowners. The article explains what home insurance generally covers and doesn’t cover and the types of insurance policies you can purchase.

What Can New Homeowners Expect to Home Insurance Cover?

Damage to Your Home and Others’ Homes and Property

New homeowners commonly think of home insurance in cases where there’s a flood or fire. In events where your home suffers severe damage or destruction, home insurance generally provides the cost of rebuilding your home up to the policy limit.

Further, if a fire starting from your home also causes damage to your neighbour’s house or a detached part of your home, such as a garden suite or shed, your home insurance policy may also cover these costs.

Not all forms of damage are covered, however. And it’s up to you to choose what is and isn’t part of your policy. Some events to look out for in your policy include:

• Flood: often not available for purchase in areas that commonly see flooding
• Windstorms: structural damage may be covered, but water and hail damage may not be
• Sewer backup: damage from backed-up sewers, drains, toilets, and showers
• Earthquake

Further, “predictable events” are not covered. I.e., if you don’t drain your pipes in the winter and they burst, your insurance won’t cover this. Damage that’s a result of not maintaining your house is also not covered. For example, if you don’t regularly replace your roof, and this results in water damage to your home, your insurance won’t cover repair costs.

Damage or Loss of Personal Possessions

If your home burns down, it’s not only about rebuilding your home but also replacing its contents. Home insurance policies cover damage or loss of your personal property, including incidents such as burglaries.

There’s a long list of what and when a home insurance policy won’t cover personal property. Typically, home insurance policies don’t cover:

• Loss or damage of items when they’re outside of your house or inside your vehicle
• Expensive jewelry or fine art. This commonly requires a separate insurance policy or must be added to your policy after the insurance company appraises the jewelry or fine art.
• Equipment breakdown, such as a laundry machine or HVAC system — even if it’s not unforeseen and unrelated to general wear and tear
• Equipment or stock related to a business. This requires a business insurance policy. Additionally, home insurance doesn’t generally cover any business-related damages or losses, even if you run your business from your home.

As your years of homeownership go by, you’ll accumulate more things in your home. It’s important to keep an inventory of what you own and regularly renew your insurance policy. The worst-case scenario occurs when the property inside your home is destroyed, damaged, or stolen, and you discover that your insurance doesn’t cover this loss.

Additional Living Expenses if Your Home Becomes Uninhabitable

Suppose something happens to your home. It could be a fire, weather damage, or another unpredictable event. Your house may become uninhabitable, and you and your family may need accommodations such as a hotel or short-term rental until the situation is fixed.

As a new homeowner, you can rest assured that your homeowner’s insurance covers these associated costs to the policy’s limit. Home insurance policies may also cover lost rental income if you used your property fully or partially for rental.

Damage of Injury When Someone Visits your Property

As a homeowner, you may be personally liable for injuries that happen on your property. For example, if a guest trips or slips as they reach your front door, which causes the guest an injury, they could sue you for damages. This is a common instance that home insurance is set to protect new and veteran homeowners alike.

To further draw the line between business insurance and home insurance, most home insurance policies won’t cover personal liability damages if the person visiting your home is a client. To ensure that you’re covered if your business client visits your home, you need a general liability business insurance policy.

What Types of Home Insurance Policies are Available?

Home insurance policies vary depending on what you need. Some new homeowners may need a home insurance policy with more or less coverage. Some new homeowners may want protection against earthquakes or floods, which many policies don’t cover. There are generally four types of policies you can expect when you speak with an insurance agent or broker:

• Comprehensive: A policy that provides the most coverage and protects your home from all risks unless expressly excluded by your policy.
• Standard: A policy that provides less coverage than a comprehensive policy and only covers instances and risks mentioned in the policy.
• Broad: A policy that sits between Comprehensive and Standard. Generally, it provides a Comprehensive policy (covers all risks unless excluded) for your home but a Standard policy (only covers what’s mentioned) for the contents inside your home.
• No-frills: The policy that provides the least coverage. A no-frills policy may not offer enough coverage to satisfy requirements by mortgage lenders.

Regardless of your policy, it’s important to regularly revisit your policy as your home’s contents and your home itself change. You want to notify your insurance company whenever:

• Your home is damaged, vandalized, or robbed
• You make renovations to your property — especially if you’re getting a pool
• You start a business from home
• A guest is hurt while visiting your home

Homeownership comes with many risks, but the right insurance policy can help mitigate much of these issues. It’s essential to understand your policy’s coverage to avoid surprises once you need to make a claim.

The post What New Homeowners Should Know About Home Insurance first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Renovating the Basics

Renovating your home doesn’t always mean taking a sledgehammer, destroying whole rooms, and rebuilding said rooms from the ground up. Refurbishing the less sexy parts of your house can commonly deliver the best return on investment. These include

• Painting walls
• Removing carpeting
• Adding new roofing and windows

Painting

Painting a room is regularly an under-appreciated home improvement. But a simple, fresh coat of paint can make your whole property stand out and look brand new. It’s perfectly fine to do this yourself, but a professional painter can ensure the final product is even more excellent. A professional painter can skim walls, repair minor damages, and do the other work before selecting the proper paint for each surface.

You can also consult with an interior designer to help discuss tones and colour palettes and whether a matte or glossy paint would be better for specific rooms.

Removing Carpets

A lot of older homes may still have carpeting everywhere. Decade-old carpets look worn and are plagued with stains. And potential buyers may look at a home’s carpeting and think of the chores they’ll need to do to maintain it. Unlike other floorings, carpet requires heavy vacuuming, chemical cleanings, and more. Although the soft flooring may be ideal for kids who play and could trip, temporary soft floor mats are a great alternative until they get older.

Vinyl flooring is a popular alternative to carpet because it’s durable and affordable. Unlike hardwood, it won’t cost an enormous amount. At the same time, it provides a similar aesthetic to your home. Or even better, maybe once you pull those carpets up, you’ll discover hardwood underneath. In this case, you only need to refinish the floors for an updated look.

New Roofing and Windows

No matter how beautiful a kitchen, if your roof is leaking water into the home or if the windows are letting in winter chills, buyers will still turn away. Ensuring that your roofs and windows are intact can prove that the integrity of your home is stable. If your roof is crumbling, then leaking water can cause water damage or mould. Less than airtight windows can increase the costs of heating and air conditioning. Depending on your property’s specifics, replacing roofs and windows can return 80 percent or more of your investment at resale.

Kitchen and Bathrooms are the Money Makers

The kitchen and bathroom are often the standout parts of your home. They’re what most people notice and what homeowners want to show off. That’s why it’s common for people to spend the most renovating these two areas. And it’s a smart idea to do so. The Appraisal Institute of Canada found that the kitchen and bathroom were two renovations with the highest return on investment. But precisely what renovations should be done to the bathroom and kitchen to increase your home’s value the most?

Kitchen

Kitchens are important gathering places for families and friends. It’s a place to show off marble countertops and induction stoves. There’s an unlimited number of ways to pour money into your kitchen, but generally, a minor remodel can deliver more returns than a big one. A minor remodel could include:

• New flooring
• Replacing appliances
• Refurbishing cabinets

When renovating these areas, it’s vital to choose traditional looks such as wooden cabinets, stainless steel appliances, and natural stone finishes for floors and countertops. Although you may want to get creative with personal tastes and trends, remaining conservative is best for your home’s value. Dark green cabinets may look good in 2020, but if you sell your home ten years from now, it’ll likely look outdated. Ensure that you use high-quality materials and that the quality is similar to the rest of the house.

It’s also important to not overspend on luxury materials when cheaper ones suffice for what your home’s worth. This is an essential piece of advice for renovating any area of your home. For example, if you live in a middle-class neighbourhood, laminate countertops will likely be good enough, while real marble countertops could be too luxurious for your home’s area. This could make your house too expensive or high-end for the area it’s in.

Bathrooms

Bathrooms are similar to kitchens because you can sink plenty of money when renovating your home. There are countless fancy tubs and countertops that you can add. It’s common for a home to renovate their bathroom once it becomes worn and damaged. Counters may start to crack, and mould may begin forming in the shower.

The best return on investment for a bathroom, however, is adding a new one. If you live in a home with three bedrooms and only one bathroom, and there’s space for a second one, a second bathroom could drastically increase the home’s value. More so than any bathroom renovation.

The Face of the House: Curb Appeal

Your home’s curb appeal is its first impression to anyone entering it. So, it’s not surprising that this is a great place to put your money if you want to renovate your home to increase its value. Common curb appeal renovations that provide a good return on investment include:

• Replacing or painting your garage door
• Installing a sturdy steel front door
• Adding a front porch

Any of these renovations can provide the front of your house with a fresh look. A front porch can add dimension in cases where the front of your home looks flat.

Like the interior of your home, you can liven the exterior with a new coat of paint. Although not every house may have a painted exterior, it’s an easy opportunity to increase home value.

Renovating your house is exciting and fun. At the same time, it’s a stressful process. We hope that this article explained what renovations increase home value the most and aid you in your renovation process.

The post Top Renovations to Increase Your Home’s Value first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

In this article, we explain the different forms of co-ownership—joint tenancies and tenancies in common. We also explore the ins and outs of co-owning a property in a parent-child relationship and with friends or other family members. 

Joint Tenancy and Tenancy in Common

When you purchase a home (or any property) with a friend or family member, there are two basic ways to do so: through a joint tenancy and through a tenancy in common. A joint tenancy is usually the way to go when purchasing with your spouse or significant other because, in the instance where one tenant dies, the survivor takes full control of the property. The people in a joint tenancy must also have an equal stake in the property. This may not be the ideal situation if you’re looking to purchase a property with friends since most people would want their assets going to their heirs. Additionally, you and your friends/family members may have a different initial investment which would ideally result in different percentages of ownership. 

A tenancy in common overcomes these rules. A tenancy in common lets you and other owners have equal or different ownerships in the property. Your shares would also go to your heirs instead of the other owner(s) if you were to pass away. This is why a tenancy in common is ideal in most co-ownership situations. 

Co-ownership with Your Parents or Children

For children who are first-time homebuyers, many housing markets may seem daunting at their current prices. A study found that although millennials enter the housing market at the same pace as prior generations, they did so with 2.5 times as much mortgage debt. Parents fear that without their help, their children will never break into housing markets like Vancouver’s or Toronto’s. 

If you’re a parent that wants to help their child break into the Canadian housing market, co-ownership can be a way for you to invest your money while helping your child. In an ideal situation, you would own part of the home’s equity and sell it back to your child later on. The fact that you own equity in the house means that, in a divorce or death, your child’s partner would not have any right to your investment in most cases—a concern for many parents who help their children purchase a home through a cash gift. 

There are a few ways that you can finance this investment. As your child or children move out, your need for space decreases. Therefore, you could downsize and use the remaining capital to finance your child’s first home. If you’re retired, your prime location home that’s easily accessible to downtown offices may no longer be needed for your retiree lifestyle. By moving further away from the city, you could also find some additional capital without downsizing.

Another popular method for parents is to take out a second mortgage on your home to help finance the purchase of another property. If you live in a place like Toronto or Vancouver where housing prices are the highest in the country, then a second mortgage could easily provide a large amount of capital. This method is especially effective if your child is looking to purchase somewhere in Canada that’s not as expensive. 

If you need your parents to help purchase your first home, co-ownership is a great compromise for parents who don’t want to or can’t afford to provide a cash gift to finance your property. This co-ownership is really an investment for your parents, who now get to tap into a hot real estate market in preparation for retirement. However, if your parents genuinely can’t afford to co-own a property with you, it’s better not to pressure them into it. If they spend money that they don’t have, they could become financially dependent on your later on. 

Co-ownership with Friends or Other Family Members

Another way to break into the real estate market is to co-own with friends or other family members. Many real estate agents have noted an uptick in clients inquiring into co-ownership. Companies like Meridian and Vancity have even created new mortgage products for those looking to pool resources together to buy a property. These products provide buyers with competitive mortgage rates and certain features that provide additional flexibilities for friends and families to buy together.  

As tenants in common, you and anyone else purchasing the property can purchase in different amounts of ownership. If you and your co-owners decide to live together, as opposed to renting out the property, then this could affect the amount of exclusive space each person has. To ensure that this relationship works, make sure to write all the terms and conditions into a legally enforceable contract. 

This contract can include terms regarding exclusive areas of the home and also what happens when someone sells their equity, becomes disabled, gets married, or passes away. The contract should also cover who’s responsible for repairs and renovations.

Although it may be expensive to get a lawyer to look over a contract, it can save you tons of trouble in the long term. A lawyer will make sure surprises don’t arise when the tree in your front lawn falls onto the roof of the house. 

Lastly, don’t forget the basic courtesies of living with a roommate. Unlike college or university, it’s not as easy to just move out because of a bad roommate. You’re now in a joint venture with this other person or other people. Removing yourself from the relationship will include paperwork and legal and realtor fees. Therefore, you should make sure you’re co-owning with someone you trust and live well with. 

If you’re trying to break into an expensive real estate market but can’t afford to, then co-ownership may be one way to go. Its increasing popularity is a testament that people are getting more creative in how they purchase real estate. Co-ownership can also be a great way for some parents to help their children break into the real estate market. Lastly, if you’re purchasing with a friend or another family member, make sure to establish a legal contract so that no surprises come up. 

The post Co-ownership: the New Way to Think about the Canadian Real Estate Market first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.