Check Your Electrical Service

Do a visual inspection of the power lines leading into your cottage. If there is any damage or limbs on the wires report it to the local utility and have it repaired or corrected before turning the service on in your cottage. Inspect the condition of the wiring inside and out. Mice and other rodents can damage it during the winter months. Have a licensed electrical contractor repair any damage.

Check The Appliances

Under-serviced or poorly maintained propane appliances such as stoves, refrigerators and heaters can be dangerous. After sitting dormant for the winter months, have them inspected and serviced by a qualified technician before using them. Consider replacing old appliances with new ones that include safety features.

Safety Equipment

Install smoke and carbon monoxide alarms just as you would at home and test them to ensure they work. Replace the batteries to start the season. Make sure you have a fully charged fire extinguisher located in a highly visible spot. Ensure everyone knows how to use it.

General Cleanup

Cleanup rubbish, leaves and branches outside to reduce the risk of fire. Dispose of old cleaning solvents and fuels, such as gasoline, kerosene and naphtha at a hazardous waste distribution centre. They are no longer useable but still represent a considerable fire risk. If you have an approved fire pit outside for campfires, clean it up and cut back any branches or brush that may have grown too close.

http://bit.ly/xppwml

By Larry MacDonald | May 03, 2012

 

(Illo: Alberto Ruggieri/Getty)

 

With the mainstream financial media now sounding a shrill alarm about the Canadian housing bubble, is it time to sell the house? Unless you're transferring to a new job, or a retiree wanting to downsize or move to more favourable climes, you're probably better off staying put rather than capitulating to the panic of articles like "Ready to be bold? Sell the house and rent."

House prices may indeed stagnate or head south for a while, especially in the heated condo markets of Vancouver and Toronto. Those kinds of fluctuations are part of the natural course of markets. But to say house prices are going to crash like they did in the U.S. is a stretch. Here are nine reasons why.

1. Behavioural finance tells us that when extrapolating into the future, people tend to give too much weight to recent events. Accordingly, a number of bloggers and many in the mainstream financial press presently appear to view a U.S.-style housing crash in Canada as a near certainty. But if one looks back in time over many decades, such calamities are rare, “fat-tail” events. On this basis, it seems importune to urge homeowners to sell for the sake of avoiding what historically is a low-probability event.

2. It is anomalous to see financial journalists talk about the futility of market timing in the stock market but then give the impression houses should be sold to avoid an anticipated collapse in prices. Why should trying to sell a home at the top and buying it back at the bottom work out any better than the dismal record of those who have tried timing the stock market? In fact, the comments section of the above mentioned article has many stories of people who did sell in past years because they thought house prices were too high, only to subsequently watch from the sidelines as prices continued to march upward. And even if one does exit at the peak, there is the tricky task of timing re-entry. Not to be overlooked, as well, is the extent to which the exorbitant transaction costs in the housing market may eat into any possible gains.

3. Selling one’s house to become, for example, a renter entails giving up the inflation hedge represented by a hard asset. Prices for gold bullion and other precious metals have climbed over the past decade to new heights as investors sought protection against the erosion of incomes and wealth by inflation. This is a material threat given the vast quantities of money that central banks are printing to keep the banking and government sectors from defaulting on their monumental financial obligations. Indeed, the response to huge debt burdens historically has been to inflate them away. Owning a home is an inflation hedge, and unlike precious metals, the owners get to live in their hedge.

4. Housing bears base much of their case on price-to-rent and price-to-income ratios showing substantial over-valuation. But as I suggested in "What the housing bears may be overlooking," valuation isn't extreme when looking at the yardstick most ordinary folk use: mortgage payments relative to family income. Over-valuation doesn’t look so severe by this measure because a big component of mortgage payments—interest rates—is very low and incomes have continued to rise over the years.

5. Housing doomsters argue that interest rates are abnormally low and poised to climb, which would make houses less affordable and result in a popping noise. However, as I wrote in "5 reasons why the housing market won't crash," the Bank of Canada will only allow its rates to climb as long as the economy is growing vigorously—which, in turn, means that employment and income levels are trending upward. Historically, job increases and wage gains have buoyed the housing market and served as an offset to rising mortgage rates, warding off extreme scenarios such as plunging house prices.

6. Before the U.S. crash, the general view was that house prices could only go up. Such a psychology led to reckless behaviour and contributed to the excesses now being worked off in the U.S. Their plight has largely cured Canadians of that dangerous mindset. In the old days, for example, the government responded to high prices by legislating tax breaks for first-time home buyers. This time around, Finance Minister Flaherty has taken steps to restrict the availability of mortgage finance, and just recently moved to put the Canada Mortgage and Housing Corp. (CMHC) under the supervision of the Office of the Superintendent of Financial Institutions (OSFI).

7. It hardly needs to be said, but housing should be considered primarily as a consumption item. Simply put, its main purpose is to provide shelter. Uprooting could mean leaving behind niceties such as good schools for your children and the circle of friends they have acquired—just to cite a couple of inconveniences. Taking an investment approach and trying to speculate on the ups and downs of prices can lead to undesirable outcomes both financially and in terms of quality of life.

8. The crash in the U.S. had a lot to do with circumstances unique to that country. The banking system was hyper-competitive and quick to take risks in pursuit of profits; policymakers aggressively pushed homeownership through measures such as tax breaks for mortgage interest payments; and weak recourse laws let mortgage defaulters off the hook. Canada has a different environment—a more stable and regulated banking sector, less of a policy push toward home ownership and recourse laws that allow wider latitude for mortgage lenders to go after delinquents.

9. What’s especially different is the phase the monetary cycle is in. When the U.S. housing market keeled over in 2008, the Federal Reserve was deliberately trying to slow down the economy. At first its higher interest rates had little impact because momentum in job and income gains were offsetting. But the Fed kept on tightening until short-term interest rates surpassed long-term rates, creating “inversion in the yield curve.” It was this severe degree of monetary restraint that ultimately punctured the mania. In Canada, monetary policy is currently highly expansionary, along with the rest of central bankers around the world. It is nowhere near an inversion of the yield curve—probably years away. The catalyst for over-valuation to end traumatically is missing, and will be for some time.

So relax, homeowners. There are many reasons not to put the ‘For Sale’ sign up. True, there could come a day when the yield curve in Canada inverts and there is a retreat in house prices. But even then, there is no inevitability to a housing catastrophe. A unique confluence of events came together in the U.S. during 2008—a once-in-a-lifetime event from which Canadians had the good fortune to be spared

For the period under review the Muskoka and Haliburton Association of Realtors reported 128 recreational property sales. This compares to only 97 during the first four months of 2011, a 32 percent increase. Increases in sales activity were also reported for the Muskoka Lakes and Lake of Bays. There were 26 recreational property reported sold on the Muskoka Lakes during the January to April period. This compares to 21 last year, a healthy increase of 23 percent. In Lake of Bays the results were more dramatic. Lake of Bay saw 21 recreational properties reported sold. Last year there were only 12, a stunning increase of 75 percent. Lake of Bays has lagged in sales over the last few years. It is a little early to determine the reason for this early market success.

It is interesting to note that the increase of recreational property sales is in tandem with a substantial increase in available properties for sale. Throughout the Muskoka and Haliburton market place there were 972 active recreational properties for sale. Last year at this time there were 824, an increase of 18 percent.

Similar increases were noted in the various local markets throughout the region. At the end of April there were 243 active recreational properties available for sale on the Muskoka Lakes. This compares to only 214 last year, a healthy increase of 14 percent. In Lake of Bays there were 110 properties available for sale. This compares favourably to the 95 that were available last year, a strong increase of 16 percent.

Chestnut Park has had a very strong start in 2012. A review of sales generated by the various brokerages in the Port Carling area indicates the Chestnut Park’s sales representatives have sold more dollar volume than the sales records of all the other brokerages combined. A very impressive start.

There are various explanations for the strong start to 2012. Many of the properties that have sold during this early period are properties that have been previously listed, but have more recently been remarketed at reduced asking prices. Secondly the increase in available properties has give buyers more choice. Thirdly there has been considerable pent up demand. Sales have fallen since their peak in 2007, and over that four year period average sale prices have come off their highs by more than 25 percent. The combination of these factors is no doubt responsible for the increase in sales during the January to April period. As these market reports have consistently pointed out since 2007, the key to sustaining this early market success in pricing. Globally economic instability is still prevalent. Realistic pricing will overcome the broader economic considerations influencing buyers. It has taken sellers more than four years to acknowledge these factors and realistically price their properties in the face of these considerations and buyer resistance.

Prepared by: Chris Kapches, Senior Vice President

The term "shared ownership," sometimes referred to as "fractional ownership," is becoming a household phrase as the concept catapults into the 21st century. With prices skyrocketing, and a hectic work pace cutting leisure time to a minimum, the idea of sharing the cost and use of luxury items makes sense. And that's what this type of ownership is – asset-sharing that enables purchasers to enjoy items they might not be able to otherwise afford, for a more realistic amount of time than sole ownership offers.

Entering the four-season vacation home market is out of the financial reach of a substantial portion of today's potential purchasers. Plus, many owners of recreational properties find they are spending less and less time enjoying this costly asset they pay for year round. Sharing ownership offers an affordable, logical alternative for both groups.

Usually in a shared ownership relationship, co-owners pay annual fees and form an association to handle maintenance, cleaning, upkeep and repairs on the property – meaning their vacation is truly a holiday, without things like dock repairs and cleaning eating into their precious time. Typically, everything is shared, including furnishings, recreational facilities, docks and boats. And unlike many second homes, which are furnished with garage-sale hand-me-downs, fractional ownership properties tend to encompass high quality appointments, appliances and fixtures.

Recent statistics indicate that vacation home owners use their properties only a small percentage of each year. Shared ownership allows people to enjoy their vacation residences for all of their holiday time, or to choose to do something different occasionally without feeling guilty because of a large investment in a traditional second home. With vacation properties in Ontario rising in value, the idea of owning part of one of these equity-building residences is tempting an increasing number of purchasers. Shared ownership of a vacation property allows owners to revel in a luxurious lifestyle, pay only for the time they use it, and replace working with playing. And isn't that what vacations are all about?

By Myles Lawlor

By ROB PARKER, Special to QMI Agency

Last Updated: April 21, 2012 12:00am

With spring officially here, many homeowners are starting to look at those jobs that aren't so appealing or practical during the winter.

Two areas that come to mind are windows and exterior doors that are subject to wear and tear stemming from constant use and exposure to the elements.

There are a number of factors to consider before making the decision about whether your windows or doors need to be replaced or repaired.

Some important things to consider include:

Though increased house air tightness can improve energy efficiency, in may also lead to a greater need for mechanical ventilation. A sufficient air supply also may be needed to prevent combustion appliances from back drafting.

Your existing windows and doors may not fit the style of your house or give you the features you want.

The components of windows and doors wear out over time. Failed seals on thermal pane window units, poorly operating windows or doors, damaged screens or hardware and air leaks are common problems. Older door and window hardware may not offer much protection against forced entry.

There may be structural problems affecting the operation of doors and windows. Installation of larger units or units in new locations will probably also require structural changes.

Windows and doors often deteriorate because of moisture problems that will not necessarily go away if you install new units. In fact, moisture may get worse because of reduced air leakage.

The glass area of windows and doors accounts for a high degree of heat loss at night or during the winter months, and heat gain when the sun is shining especially during the summer months. Though energy-efficient glazing can reduce heat loss, heating system modifications or some type of shading may be needed to improve comfort near large windows.

In my opinion, the best installation method for replacing windows and doors is the rough opening (R/O) method. With an R/O installation, the entire window or door, including the frame, is removed right down to the framework of the house.

This type of installation allows for complete sealing and alignment of the window or door to ensure optimum performance of the new unit. You should also make sure the windows or doors are Energy Star rated, come with a good warranty, and that the company you're dealing with is insured and has been installing windows and doors for some time.

Windows come in many different opening styles such as single hung, double hung, casement, sliding, awning and fixed. Most windows today are made with a vinyl frame, aluminum or stainless steel hardware and thermopane glass.

The glass can be coated to reflect heat. This is generally call E glass and space between the layers of glass filled with a gas such as argon creating the thermopane. In most cases, whatever style of window you choose can be installed in the existing window opening.

Over time, weather-stripping, hardware and door and frame materials can deteriorate or fail. Windows and doors are a part of the interactive system that makes up your house, so they should be constantly monitored to ensure they're supporting the other components of the system, including the structure, heating, ventilation and air conditioning equipment.

That said, it's a known fact that tighter and more energy-efficient windows and doors will reduce the heating and air-conditioning load on your home.

Though repairs can be inexpensive, they may not give good long-term results; on the other hand, replacement is generally costly, but may provide savings in energy use, making your house more comfortable and adding to its resale value.

As with any home repair or installation of equipment where you're relying on the product or service and workmanship of a company or contractor, you should seek out at least three estimates plus ask for references and check them out before signing any agreement.

Rob Parker is a registered home inspector with the Ontario Association of Home Inspectors and certified master inspector with the National Association of Certified Home Inspectors who does home inspections in the London area. Call him at ThameSpec Home Inspection Services at 519-857-7101, e-mail thamespec@rogers.com, or visit www.thamespec-inspections.com.

http://bit.ly/KoMc6U

In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. These are listed below:

Other costs may include; landscaping, redecorating, furnishing, and appliance repairs.

Chestnut Park Real Estate Ltd., Brokerage

Bring your friends and family to this Lake Muskoka waterfront cottage for sale and start making those wonderful Muskoka memories this spring. The gentle land and beach is ideal for the young and not so young.
Easy year round access yet very private and peaceful. With 340 feet of frontage you are in a world of your own. The cottage is built close to the waterfront, with 5 bedrooms, 3 slip boathouse, attached garage, sauna, separate dining room, Muskoka Room, and so much more. Great level table land for children to run and play, along with a good wooded area (4 acres). Property is close to Port Carling
and Bala as well as many desirable Muskoka amenities

When you purchase a home, consider how you will protect your investment.

Most mortgage lenders insist on fire insurance coverage at least equal to the loan amount or the building value, whichever is less.

You should also consider a homeowner’s policy that combines fire insurance on the building and its contents with personal liability coverage. Consult your general insurance agent or broker for professional advice on home insurance.

MORTGAGE LIFE INSURANCE

Mortgage life insurance (MLI) is inexpensive coverage on your life which protects your family or beneficiaries by paying off your outstanding mortgage in the event of your death. For just pennies a day, you will have peace of mind knowing your beneficiaries will be mortgage free. MLI premiums are based on two factors: your age and mortgage amount. Your premium is added to your mortgage payment so there’s no extra paperwork, and it remains the same until your mortgage is paid off. Joint coverage for spouses is also available.

DISABILITY INSURANCE

Disability Insurance is important if your mortgage payments depend entirely or in part on your income. Disability insurance provides replacement income if an accident or illness prevents you from working.

JOB LOSS MORTGAGE INSURANCE

Recently insurance companies have started to offer Job Loss Mortgage Insurance. This insurance covers the mortgage payments in the event that you involuntarily lose your job.

Chestnut Park Real Estate Ltd., Brokerage

Your agent will communicate the offer, sometimes known as an Offer to Purchase, to the seller, or the seller’s representative, on your behalf. Sometimes there may be more than one offer on a property coming in at the same time.

FIRM OFFER TO PURCHASE

Usually preferable to the seller, because it means that you are prepared to purchase the home without any conditions. If the offer is accepted, the home is yours.

CONDITIONAL OFFER TO PURCHASE

Usually means that you have placed one or more conditions on the purchase, such as “subject to home inspection”, “subject to financing” or “subject to sale of buyer’s existing home”. The home is not sold until all the conditions have been met.

ACCEPTANCE OF OFFER

Your Offer to Purchase will be presented as soon as possible. The seller may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, the closing date, or any number of variables. The offers can go back and forth until both parties have agreed or one of you ends the negotiations.

There are six key components to the elements of an offer. They are:

PRICE

Depending on the local market conditions and information provided by your agent, the price you offer may be different from the seller’s price.

DEPOSIT

Your deposit shows good faith and will be applied against the purchase of the home when the sale closes. Your Real Estate Professional can advise you on an appropriate amount.

TERMS

Includes the total price offered and the financing details. You arrange your own financing or ask to assume the seller’s mortgage, especially if it has an attractive interest rate.

CONDITIONS

These might include “subject to home inspection”, “subject to you obtaining financing”, or “subject to you selling your property”.

INCLUSIONS AND EXCLUSIONS

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house.

CLOSING OR POSSESSION DATE

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.

Chestnut Park Real Estate Ltd., Brokerage

Nestled on the east shore of Lake Muskoka, and just a few minutes drive from bustling Bracebridge, this charming retreat along the water’s edge boasts large windows, exposed beams, and the perfect weekend host and/or hostess kitchen. The gorgeous master suite occupies the entire 2nd floor of this 5,000 sq ft lakeside gem, and with 3 other bedrooms and bathrooms, kids, friends, and relatives will be more than comfortable.

Bedroom suite overlooking the Lake

More information on 1050 Marwood Drive