For many homeowners, when they outgrow their “starter” home, they decide to sell it and then move onto a bigger place. However, did you know there might be another option available? For some homeowners, particularly those with real estate investing ambitions, it makes sense to actually rent their old home rather than sell it. 

Let’s take a closer look at the pros and cons.

You Can Build More Wealth in the Long Run

Real estate investing is a long-term strategy to build wealth. Although the market can fluctuate, for the most part, real estate will almost always appreciate in value. Owning two or more properties will help you expand your wealth and grow your investment portfolio. 

If the mortgage is paid off on your first home, any rental income will just be added as positive cash flow, but if you’re still paying a mortgage, your renters will essentially be paying the mortgage for you.

However, before you make the choice not to sell your home, and rent it instead, there are a few things you should consider. 

Interested in investment properties? Take a look at our blog about the BRRRR Method for investing here.

What Will the Cash Flow Look Like? 

Before deciding to sell or rent, consider the numbers. Add up all the monthly expenses, and then realistically estimate how much you could charge for rent. If the number is in the negatives or is too low for you to consider taking on the responsibility of becoming a landlord, it’s better to sell. 

The return on investment (ROI) is important as well because it will mean how much profit you make and how quickly you get it. 

For example, let’s say you sell your home and make a $50,000 profit, that’s money in your pocket right away. However, if you rent your home, after paying all the expenses and collecting rent, you might only see a positive cash flow of $1,000 per year. Although your investment will no doubt appreciate over time, you can see how a one-time payout of $50,000 might be more desirable than annual profits of $1,000.

Karen Paul and Associates offers fantastic turn-key services specifically designed for investors. If you’re thinking about investing in real estate and growing your wealth, take a look at some of the services we offer here.

Consider the Area

If you are currently living in an area that is in the midst of a redevelopment, it might be more beneficial to rent for now and then sell later. However, if you notice your town’s growth moving away from your property, it’s better to sell sooner rather than later. 

It’s almost impossible to predict with absolute certainty what a city’s development will bring, but you should be able to see a few signs that might predict things moving one way or another.

Wondering if your area  is on the way up? Read our blog on how to tell if a neighbourhood is improving here.

Are You Prepared to Be a Landlord?

Renting a house is more than just collecting a rent check every month. It’s a big responsibility that requires care and consideration and shouldn’t be a decision that you take lightly. 

As a landlord, you would be responsible for maintenance, emergency repairs, and ensuring your tenants have a healthy and safe place to live. Additionally, dealing with tenants requires management and interpersonal skills. 

If you want to be a landlord without handling the day-to-day responsibilities and repairs, you can also employ a property management company to handle these logistics for you. However, this is just another added cost that could eat into your ROI. 

Interested in learning more about real estate investing? Reach out to us today here to get the conversation started.

Every year like clockwork, the real estate industry collectively begins to gear up for fall and what always promises to be an active and exciting market. No matter where you’re based, it seems that the fall real estate market is always a busy time of year for buyers and sellers alike.

That being said, however, buyers and sellers don’t really need to prepare for the fall market in the same way. While buyers will be sorting out their finances and getting mortgage pre-approvals, sellers are required to do quite a bit more to get their homes up to market-ready condition.

So, if you’re planning on selling your home this fall, the best piece of advice we can give you is to start preparing now. To save you a lot of stress and headaches down the line, here are five ways you can get your home ready for this fall’s busy market right now.

1. Address Any Problem Areas

If you’re looking to truly maximize the market value of your property and sell it for its highest possible price, the very first thing any seller should do is address any damaged or dysfunctional areas of your home.

Whether you hire a professional home inspector or take on the job yourself, it’s essential you identify any parts of your home that are in need of some maintenance before listing it on the market. Why? Well, if left damaged or unrepaired, these are the first things buyers will use to try and negotiate a lower price for your home.

If your home is clearly in need of some work, buyers will want to take the cost of repairing it out of their initial offer. Things like water damage, rotting wood, defective home systems, and even leaky taps are among the most obvious to spot, so if you’ve got any number of these issues it’s simply not worth listing your home for sale without fixing them first.

Want to know what homes just like yours have recently sold for? Do some market research and check out Our Sold Listings Portfolio here.

2. Declutter, Declutter, Declutter

One of the easiest things you can do to bring your home up to visitor-ready condition is to do some merciless decluttering. Getting all of your extra stuff out of the way before showcasing your home to visitors is essential when selling, and the good thing is it’s something you can start doing bit-by-bit far in advance.

The reasons for decluttering your home should be pretty straightforward — no buyer wants to have to try to look past all of your extra stuff in order to get a good idea of what your home looks like when seeing it in person or in photos. Plus, by getting rid of all your unnecessary personal items, your home will appear more spacious and easier to navigate for potential buyers during home showings.

Not sure where to start? Some of the biggest culprits for collecting clutter are places like closets, countertops, basements, and spare rooms. Also, prioritize keeping high-traffic areas like hallways, doorways, and staircases clear of any clutter or obstacles. The idea here is to make your home feel nice and easy to walk around in for your potential buyers during tours.

Looking for some more things you can do ahead of time to help prepare for your home sale? Read about our Top 3 To-Do’s Before You Sell Your Home here.

3. Get Cleaning

Now that you’ve got all of your extra stuff out of the way, you’ll probably notice you’ve been housing quite a few more dust bunnies than you previously knew about, and now’s the time to find them a new place to live.

Before any buyers even see so much as a picture of your home, it should look as immaculately clean as possible from top to bottom. Yes, this includes windows, walls, cupboards, and cabinets too. For a proper deep clean, we always recommend our sellers get help from a team of professional cleaners, though if you think you can do most of the job yourself, that’s always welcome too.

Are you the proud owner of a few furry friends? While pets are definitely adorable housemates, they do tend to complicate things a little when selling your home. To help you out with that, here are our 5 Tips On Selling Your Home With Pets.

4. Lay On A Fresh Coat

Next up on the sellers’ to-do list is to revisit your home’s paint situation — both inside and out. If you’ve ever had your home painted before, you’ll know first-hand just how big of a difference it makes, which is why we recommend you lay on a fresh coat in some key areas before your potential buyers arrive.

While we wouldn’t expect you to re-paint the entire exterior of your home, touching up a few highly visible accents can make a huge difference. Places like your front door, window frames, and mailbox always benefit from a fresh new pop of colour, while any chipping or patchy paint jobs elsewhere should be retouched too.

Heading inside, the walls and ceiling in rooms like your living room, dining room, kitchen, and bedrooms should all be refreshed as well. In terms of colour, these should all ideally be painted in a warm, neutral colour like white, off-white, or light grey.

Not only will painting your rooms in a light neutral colour appeal to the widest audience of visiting buyers, but basic colour theory tells us that lighter coloured rooms also feel larger and more spacious than darker coloured ones. So when it comes to choosing a paint colour, keep it simple and stay away from anything too bold.

Unmentioned on this list of preparatory tasks: staging. Learn more about the power of staging when selling your home by reading about A Few Staging Tips For Sellers here.

5. Book Temporary Accommodation

The last thing you can do to prepare for a smooth and successful home sale is to make some travel plans. During the home showing process, it’s always ideal if you, the homeowner, are out of your home when tours are taking place — and this fall, the reasons for doing so are two-fold.

Firstly, home showings always function better for buyers when the owners of the home they’re visiting aren’t there. The atmosphere of their tour is less awkward or stressful without the presence of the current owners there, plus it heavily detracts from buyers’ ability to picture themselves living in your home. Instead, all they really think about is what your home will be like without you in it.

Secondly, in order to host in-person home showings this fall, Realtors® are going to need to follow strict health and safety guidelines to mitigate the risk of spreading COVID-19. Even though you might be fully vaccinated and testing negative for the virus, it’s still much riskier to have more people present during the showings than necessary.

Therefore, one of the best things you can do to ensure the showings process goes as smoothly as possible is to ensure you’re out of your home when potential buyers come to see it. Confirm with your Realtor® when the majority of your home showing appointments will be and make accommodations to be elsewhere when that is. Whether you book a weekend away somewhere special, rent an Airbnb close by, or stay with family or friends, the important thing is you’re out of the way.

At Karen Paul & Associates, our main objective when helping clients sell their homes is to make the entire process as easy as possible for them. See what we do to help by reading our guide to Selling A Home In Ontario.

The last year and a half have altered almost every facet of life. Some of the largest changes have occurred in the workplace – quite simply, we work differently now.

As the masses left the highways and tall office buildings, they began setting up shop in the nooks and crannies of theirs homes – in spare bedrooms, at the dining room table, even on the couch…. The longer this work-from-home trend lingers the more it becomes the new normal – the more important it is to have a space dedicated for your “office”.

Here are some tips to ensure you are making the most of your space.

1. Location

Home offices come in many different sizes and are the key to ensure you think about where and when you do your work. If you’re a busy mom, the kitchen table could be an ideal place as you can for your central command. If you’re a busy professional who spends your day on the telephone then space away from household distractions would be a better fit.

2. Allow Enough Space

Professional designers say to allow at least 60 inches in width and 84 inches in depth. Make sure you have enough space for the tasks, you must complete.

3. Spend the Money on a Good Chair

This cannot be overstated enough! Quality chairs are not cheap but they can contribute to your comfort more than any single piece of office furniture. Your back and neck will thank you!

4. Storage and Shelving

This is your new office – you will need space for storage. Plan for it before you need it. There are many options, whether storage cabinets, shelving units, or simply a well-thought-through closet reno. The key here is to plan and have the space ready before you need it.

5. Lighting

The lighting types and levels in our environment have been scientifically proven to affect our mood, performance, and productivity levels. Everyone has their own preferences and serious thought should be given to this. Natural light is preferred by most; however, advances in lighting technology have produced some exciting alternatives over the decade.

              This is the new reality for many – invest in yourself and your new space and the ongoing productivity and comfort that you will experience will be worth every ounce of effort you have had to put into this new venture.

Written by:

Colin Gainham of Karen Paul & Associates

Summer is getting nearer and the last year has seen a huge rise in demand for home swimming pools.

If you are a new swimming pool owner, you may be wondering how to heat a swimming pool for free of almost free. You may not have selected the pool heater you want to use. Or the heaters you have looked at may not be cost-effective.

2 Contributing factors for economical pool heating are Solar Power and Heat Retention. Let’s look at some inexpensive ideas.

Black Hose Trick:

All you need to do is buy a black garden hose.

Purchase a black garden hose long enough to travel the distance from your pool pump and into a sunny area with 100 feet to spare. To keep your pool warmer, puck a spot on the deck or on the roof of your house.

After you’ve chosen the spot, it is time to unravel your hose. Connect it to the return in your pool pump. You can do this using a tap style connection.

Once you have attached your hose, run it to your chosen sunny spot.

Wrap all of your spare hose into a coil. The coil will help the hose to remain warm. Then run the remaining hose into the pool.

Warm water will circulate through this heated coil, creating a pool water heater to increase your water temperature.

Solar Cover/Blanket:

One of the main causes of heat loss in a pool is evaporation. Water evaporates during the day. Gusts of wind and the heat of the sun cause water loss. When you remove water that is already warm, you will cool down the temperature of your pool by adding cooler water. This is unless you prevent the evaporation from occurring.

A solar cover presents the perfect barrier to evaporation. It not only provides a shield against water loss but also acts as a cheap pool heater. This is because a solar pool blanket will help you retain heat.

Solar Panels:

Solar Panels convert sunlight into energy. They are cost-effective and an environmentally friendly way of heating a pool. They can also be combined with electric heating systems to add warmth to your pool.

If you are wondering how to quickly heat a pool, solar panels are your best option. Combine them with your electric or gas heating system for rapid results.

The cost of installing this heating for pools will depend on the size of your pool and the number of panels you will need. You’ll also need to find out the capacity of the panels you wish to install. The larger your family, the more energy you will need to heat your pool.

Solar Dome Connectors:

Solar dome connectors work in a similar way to solar mats. However, with a dome connector, the piping rolled up into a dome shape. Heating for pools takes place within this dome.

Solar domes take up far less space than solar panels. An 8 x 4 meter pool which is 1.5M Deep will only need ten domes. This is because each dome heats up a large amount of water.

It is best to use solar domes for small pools. This is because, like solar panels, domes are dependent on sunlight. You will also use some energy to push water through the domes. Domes are slightly cheaper to buy than solar panels.

Solar Rings:

If you want to solar heat your pool but are not yet ready to buy a solar pool blanket, you could always use solar rings.

Solar rings are like a solar pool cover broken into smaller rings or circles. They make cost-effective heating for pools. They are also very easy to use.

All you need to do is throw a couple of solar rings into your pool. The amount you will need will depend on the surface area of your water.

Your rings will absorb heat while they float. They will also connect to each other, locking together to hear your pool. This is because each of the solar rings has a magnet that attracts them to one another. Solar rings create 21,000 BTUs of heat per day.

Hope these tips on how to heat your pool efficiently and inexpensively help you keep warm in the water this summer!

Written by:

Troy Challe of Karen Paul & Associates

Updating older homes can e costly, confusing, and even daunting. this is with good reason, as older homes often pose unique challenges, sometimes requiring extensive renovations to fully update each aspect of the house. It isn’t surprising then, that people often look to less costly (and perhaps even more creative) ways to make older homes “look brand new.” As Realtors, we are aware that the little things can make a big difference. In this short blog, we’re going to touch on three things that can help you make your old house look brand new, without breaking the bank!

So, what are they? Check out our 3 creative tips below for house to make your older home look brand spanking new!

1. Incorporate Plants into Your Lifestyle

Incorporating plants into your home can be a great way to bring colour and pizzazz into older properties. Plants can come in a dizzying array of shapes, sizes, and colours, and can be placed, hung, and perched in different areas throughout a home, making them one of the best accessories available. A well-placed and adequately sized plant can turn an otherwise drab room, into a light, more modern living space. Don’t miss out on grabbing a plant or two to spice up your house!

2. Get  Painting!

Giving your home a makeover can be a great way to make an older home look newer. We’re not talking about a full makeover – Don’t Worry! Instead, think about giving your home a partial makeover, that involves strategically painting areas of the home that you spend a lot of time in. For the DIYer’s, this can be a great way to engaging a project where the end result is truly noticeable, Pro-tip: use lighter colours, such as white and beige, which can transform a room, making it bigger, brighter, and ultimately better!

3. Less is More: Get Cleaning!

Getting rid of clutter around your home can be a great (and cost-effective) way to make spaces look newer. Doing a full clean, (yes, we know it might not be the most fun way to update your home) can help give your home a lighter, newer feeling. You’ll want to make sure you’re thorough though, as a halfway clean won’t get the job done. Organizing your stuff can transform your home in ways you might not have even known were possible.

Accessorizing the look of your home is a great way to improve its overall image. Try to incorporate plants into your home to give it a brighter feel. We would also recommend painting some of the most used area of the house, as a newer coat of paint can be a great way to brighten up a room, and even make it look bigger than it really is! Finally, you might be surprised how big a difference a thorough clean can make. To be clear, we’re not just talking about scrubbing the walls and floors (although that’s never a bad idea). What we’re really talking about is getting rid of those items you don’t use anymore! When you’re searching for something new, sometimes, less is better. And in this case, less is more! Don’t be discouraged or intimidated by the home renovations that you think are required to update an older home, because most of the time, they aren’t! Instead, focus on smaller and more creative things that can impact your home!

Written by:

Josh Shenker of Karen Paul & Associates

In the last decade, there has been an increased focus on reducing our carbon footprint and reducing energy emissions. As such, Geothermal heating and cooling systems are growing in popularity with homeowners as an alternative to traditional HVAC systems. Geothermal systems have a history longer than most realize. In 1892 the first district heating system was developed from hot springs in Boise, Idaho, and eventually heated 200 homes and 40 businesses. Advances in technology have made geothermal heating and cooling systems commercially viable and suitable for residential applications.

Geothermal systems for heating and cooling use Ground Source Heat Pumps to exchange heat with the ground. Counting on the fact that ground temperatures consistently range between 7 to 24 degrees Celsius the ground can be used as a heat source or a heat sink. Once installed in a home, geothermal systems can save 20-60% on utility bills and offer a relatively short “payback period” of about 7 years. They are low maintenance and energy-efficient.

The most common type of geothermal system being used for residential purposes are “Loop Systems”. Specifically, Closed Loop Systems. Closed-Loop Systems are made up of a mesh of interconnected pipes buried in the ground. A liquid refrigerant is pushed through the “loops” by a heat pump and thus the pipes act as a heat exchanger. The most popular orientations of these loops are vertical and horizontal.

Vertical Loops are oriented in a vertical direction. Holes up to 400 feet deep are drilled in the ground and U-tubes are placed in them. Multiple U-Tubes are connected together and then connected to a pump and optional compressor. Vertical Loops are ideal for smaller lots as they require much less surface area.

Horizontal Loops are just the opposite of vertical loops. The U-Tubes are laid in shallow trenches from 1-3 meters deep and approximately 400 feet in length. These systems are less expensive to dig but require a much larger amount of surface area.

Definitely consider a geothermal system. Heating needs represent an estimated 42% of home energy consumption. Even a small geothermal system can be a cost-effective way to supplement your heating and cooling needs.

Written by:

Troy Challe of Karen Paul & Associates

This is an investment strategy that has been gaining a lot of traction in Burling and in the Halton Region in recent years and we are here to break it down for you. This is the perfect mix of house flipping and rental property investing. Why has it become so popular? It is simple – this strategy has the potential to increase net worth and deliver substantial monthly cash flow very quickly.

BRRRR stands for:

Buy, Rehab, Rent, Refinance, Repeat

Buy: You find a dilapidated house that needs substantial renovations and purchase it under market value. You are targeting real fixer-uppers in “decent” neighbourhoods. These purchases are usually funded using short-term funds meaning private money and private investors and not your large charter banks.

Rehab: Fix it up! It is prudent to set a budget and stay within it as capital costs in renovation projects are notorious for ballooning over budget. It is time to get your hands dirty – you want high-end finishes as this will help attract that A-Class tenant at the end of the project. Great houses attract great tenants!

Rent: Find the perfect tenant to rent out the house. Do your homework – hire a Realtor to help – it is important to have a trustworthy individual on the lease who pays every month on time. The cash flow of this project will rely on the quality of tenant you can secure.

Refinance: Refinancing the property at a much higher valuation compared to its purchase price will allow you to free up a lot of capital. FYI – A bank will typically want 6 months to 1 year of ownership before refinancing a home and max out around 80% loan to value. Every situation is unique, and it is important to understand the numbers while putting together your projections. Do your homework! After the refinance has been secured you use this money to pay off the short-term lender. Have your debt in a long-term mortgage with much lower interest rates, and leftover capital can be used to move into the next project.

Repeat: Do it all again!

As with any investment strategy, there are risks associated with it. If you would like to learn more on how to minimize these risks then reach out to Karen Paul & Associates and we would be happy to dive deeper into this strategy and see if it a good fit for your portfolio

Written by:

Colin Gainham of Karen Paul & Associates Inc.

The success or failure of your real estate investments depends on your ability to consistently attract and retain great tenants.

Investment properties can be a fantastic way to generate passive income but without Great Tenants who pay reliably and take care of your property that revenue and ROI will disappear.

Therefore, to attract Great Tenants you need a great property or a property that has the criteria Great Tenants are looking for. A recent survey from “Bigger Pockets” investment blog identified these 10 elements as the most sought after by Great Tenants:

1. School Quality
2. Safety
3. Turnkey
4. Close to large employers
5. Close to Public Transit
6. Upgrades & Updates
7. Appliances
8. Age of Building
9. Neighbourhood Quality
10. Rent Inclusions & Price

No matter what the budget or category you are shopping for, use these points to compare and contrast the available listing for your investment.

School Quality:

The proximity to good schools cannot be underestimated. Great Tenants with school-age children will prioritize this factor. Know what schools catch basin a potential property is in and use one of the many online resources to rank those schools. Also, don’t forget about alternative private schools.

Safety:

Whether you rent or own, Home is Home. Everyone needs to feel safe in their family home. Great Tenants will pay more for a home and neighbourhood that feels safe and secure. Look into neighbourhood crime statistics and other demographic metrics before committing to an income property.

Turnkey:

Moving is hard work and stressful. If you offer a move-in ready property that is fresh and clean you will get higher quality applicants that will respect your property.

Close to Large Employers:

Cut the Commute! If your property is close to employment centres you will find potential tenants will pay more to be there!

Close to Public Transit:

This one needs little explanation. Close proximity and easy access to various public transportation alternatives is valuable to many potential tenants.

Upgrades & Updates:

Make your rental property stand out with strategic upgrades. Not only will you attract the attention of high-quality tenants willing to pay more for finer finishes, but the tenants will appreciate the quality of the home and take care of it in return.

Appliances:

The Kitchen is the heart of the home and often where the most family time is spent. Newer, clean appliances will give potential tenants the green light to proceed. The past the basic two; fridge and stove. Consider accessory appliances such s dishwasher, built-in microwave and beverage fridge. Luxury amenities will attract Luxury Tenants.

Age of Building:

Even “Charming” well maintained older buildings can have shortcomings. For example, are there adequate mechanical systems providing heating, cooling and water supply to accommodate today’s lifestyles? If it is a multi-residential building is there an elevator? Older buildings can mean old hassles for everyone.

Neighbourhood Quality: 

This one could be called Lifestyle Quality. The more available amenities in a given neighbourhood helps support a happier lifestyle. Think of parks and trails, scenic opportunities, community centres and attractions. The more the neighbourhood has to offer the more your potential tenants will want to be there!

Rent Inclusions & Price:

Pricing your property for lease must be done with great thought. If it is priced too high you will severely impact the pool of potential tenants. If you discount your rates you may get “discount” tenants. Pricing strategy should take into consideration up to date market rates and reflect the amenities and superior characteristics your property offers. for best results consult a real estate professional.

By: Troy Challe

Good morning, Karen.