Home Coming

Garage Door - Open Sesame

2012-02-04T21:05:00.000-08:00

It's always nice to have a garage, especially for Canadians. In winter, it saves you a lot of time on scraping ice/snow out of your car. I am more than happy to spend these extra time staying in bed. In summer, I don't have to wait for the heat inside the car released before getting into the car. For both winter and summer, parking my car inside a garage also helps save energy at some certain level since I don't need to crank up the AC or heater as much as if I park outside.

I was happy that my new home had a garage, but I was not that pleased by the garage door. The garage door was in light purple and a bit rusty. The door had an obvious dent made by previous owner. It was a mechanical door so that I have to leave the car and open the door manually before entering the garage. All of these were ok, but I just want to have a better one. I would like to have windows on my garage door for aesthetic reasons with an electrical door opener.

Although garage door replacement is a rather small job, I found the price can still vary a lot. After some search on Homestars, I decided to use Open Sesame Inc. Steve, the owner of Open Sesame, is a very interesting and friendly person. He came to my home during one weekend to give a quote for door replacement. The quote included door, door opener with remote control, and of course the labour. He only asked for 1650 CAD. I found this price was very competitive, and he had very good reviews on Homestars. So, I decided to use him to replace the door.

At the day of installation, he showed up on time and started the work right away. I remembered seeing someone installing a garage door for one of my neighbours. It was quite noisy and I could hear the sound even at home, but when Steve disassembled and installed the garage door I hardly heard a thing. I am not sure why. Maybe it was simply because it is easier to replace a door than install a new one. The door was done professionally within 6 hrs. The new door did look much better and the new door opener saved me the hassle.

I am generally pleased by Steve's work, and I would like to recommend him for garage door jobs. However, it really took a while before he could serve me. Open Sesame is basically a 1-2 men company. Steve only has one assistant, and they have to do all the jobs and they do have a lot of orders. It's not hard to imagine that they need longer time to digest all the jobs. If you are not in a hurry and willing to wait up to 1.5 months, Open Sesame will be a good option for its highly competitive price and quality.

Flooring -- Invision Hardwood Decor

2011-11-27T14:22:00.001-08:00

This is my second experience sharing article. This time is about the flooring.

The condition of our new home was generally in good shape. However, there were still few things that we would like to change despite that there was really nothing wrong about it. That was the flooring. When we got our home, the flooring for the second floor and the basement was carpet. Although the carpet was still in good condition, we put flooring replacement as our first thing to do since we would really prefer a hardwood floor. Besides, there is no better timing to do flooring other than when the house is empty.

I went to several flooring shops for an estimate. The cost was mainly divided into two major items: material and labour, and each item takes roughly 50% of the total cost. I found that the cost for labour was quite comparable for all the five or six quotes, and the key was the material cost. Always start with asking which brand is on sale and list them along with the shop providing the sale. You could easily save thousands by choosing the one on sale. Since there are so many brand names for the hardwood floor, it would be much easier to limit the pool, do the research and choose the one that you want in this way. I also found that the sale provided from each shop was quite different. One brand may have a sale in one shop, but not in any other shops. Not sure why is that. So, try to ask as many shops (the ones with good reputations for sure, try homestars as a starting point...) as possible, especially when you already have something in mind.

I decided to go with Invision Hardwood Decor. The owner, Roy, was friendly and patiently explaining the difference between different floors and making suggestions for our floor when we were in the shop. The show room was spacious so that we could lay several floor samples on the floor to have a better sense how they would look like for comparison. The way Roy approaches customers was an art. He doesn't let you feel pressured by bombarding you a lot of information or questions. He knows how to handle several customers equally at the same, answer all their inquiries and not to make any of them feel ignored (I personally think it's not a trivial task based on what I observed in other stores). He was also one of the very few that were willing to accommodate to our schedule for coming to our home for an on-site quote estimate. Most of them only come for estimate during weekdays, while Roy was willing to come during evenings and weekends.

The floor job was well organized. They delivered the material and started the job right on time. The work was done neatly and professionally within few days. I was impressed by the speed and the quality of the work. The job included flooring replacement as well as installing the baseboard. The hardwood floor installation was impeccable but I had few words to say about the baseboard. The baseboard was nailed to the wall. The spacing between nails in certain locations seemed to be a bit large so that the baseboard was a bit curvy and a visible gap between the baseboard and the wall was found. I was expecting that they would use caulking for the baseboard instead of nail guns. Or, they would seal the gap using caulking after nailing the baseboard. When I reflected this to Roy, he did come and fix some of them. However, I had a feeling that sealing the gap between the baseboard and the wall is not part of the routine job. Not sure if it is common for other floor guys or it is just for them. However, this was the only minor imperfection and I was satisfied with most part of the job.

I would still recommend Invision Hardwood Decor to those who need a nice floor job in great Toronto area.

Home inspector -- Frontline Home Inspection

2011-11-21T18:47:00.000-08:00

Time passed by so fast! It's already 8 months since the last entry...But I have good excuse... We finally bought our first home! That's what I was busy for in the past couple months. Since most of the things are settled, I would like to be back to my blogging routine.

I would like to share personal experiences of using home inspector. As we shall agree, home inspection is very important when buying a house. The clause of satisfaction to the home inspection serves as a protection to prevent buyers from getting into a real trouble. An early discovery of any potential problems can also help haggle the price. Therefore, words from a competent home inspector may sometimes worth more than thousands.

So, how to find a competent home inspector? In Canada, you can start by trying to find one from the website of Canadian Association of Home & Property Inspectors . To be a registered home inspector in Canada, individuals need to meet rigorous professional and education requirement followed by a review. Although being a "registered home inspector" does not guarantee to be a "good inspector" for many reasons, it is a good starting point to pick the right one from a rather small pool. This is the link to the list of home inspectors in your area (Canada only). If you are in selected metropolitan area (great Toronto area for example), you are also blessed with Homestars , an excellent website for find the right inspectors, contractor, and other home related trade man. However, Homestars seems to work best for great Toronto area with a bit limited information for other cities.

I phoned several inspectors before choosing the final one. Some of them didn't have time for the slot I wanted, and some of them had unfriendly secretaries...I picked Marco from Frontline Home Inspection eventually. Marco is listed as a registered home inspector and also receives pretty good reviews on Homestars. I think that he should be a right one.

He is punctual, and he is happily sharing what he found to us. It was a pleasant learning experience to have a professional explain to you what to check and why to check in a highly interactive manner. He is equipped with an infrared thermography device that can show us the temperature distribution in a room graphically. It provides clear indication of insulation and even ventilation quality. He was thorough and provided a comprehensive inspection. We actually used him twice. Why? Because he found some serious mould issues and pointed out something in need of replacement in our first buy (a conditional sale) and he provided us a cost estimate to fix these. We later decided to skip this deal, and moved on. We hired him again for our second buy, and fortunately, this time he gave us a green light.

In general, we were very satisfied with the service and help from Marco, and we will recommend him for home inspection without hesitation. We will definitely consider him for our next home.

Descriptions of the links

2011-04-03T18:53:00.000-07:00

This post is to provide some descriptions of the links on the right bar. This post will be updated occasionally since more links will be added in the future.

Canadian Mortgage and Housing Coporation
One of the must-see site for Canadians who plan to buy a house. It has complete and most up-to-date information and data regarding real estates in Canada. Everyone, real estate beginner or expert, can benefit a lot from this site.

Canadian Real Estate Association
As indicated by its name, this website shows some basic home buying and selling tips for first home buyers and sellers.

HGTV
One of my favorite TV channels. It talks almost everything about having a home.

Homestars
It's a great website for finding contractors, home inspectors, plumbers, electricians, and etc.. Hundreds of reviews help you find the right one!

Home Style Choices
Excellent website providing lots of detailed information regarding home design, flooring, siding, kitchen countertop, cabinets, you name it! A good starting point for your home renovation!

Posted Homes
This site shows some featured homes, mostly in Toronto. These homes may give reader some ideas of home staging, asking and selling prices for certain types of homes, and sometimes brief introduction of certain neighborhoods in the great Toronto area.

Realtors@ know real estate (MLS)
This site provides Multiple Listing Service, in which major real estate brokers post their current listings together. It is an almost-complete database of homes for sale in Canada. Buyers are strongly encouraged to have a look of the database to have a ballpark knowledge of housing supply in the neighborhood interested and the range of price. Note that the listing here is for reference only. Sometimes, I found the realtors don't update the database frequently enough. Some houses listed in the system are actually sold. Also, some local real estate brokers and people who sell their houses by themselves may choose not to participate. That's why I said "almost-complete."

The Global and Mail -- Real Estate
This site lists news related to Canadian real estate, city development, and even interior design. I like the variety of topics they have and the design of layout on their website.

Toronto Real Estate and Neighbourhoods Blog
One of my favorite websites. It collects real estates news with focus on Greater Toronto Area. Analysis on current real estate market are provided. Some interesting data of certain popular neighborhoods in GTA are provided. Very informative.

Breakdown of house closing cost

2011-03-27T17:22:00.000-07:00

For many first time home buyers, it is a common mistake to fail to consider ALL relevant costs when purchasing a home. Here is a hopefully complete cost breakdown:

1. Down payment
2. Home inspection fee
   This is case by case, usually ranging from 300-500 CAD.
3. Land transfer tax
   The Ontario land transfer tax for residential property (refer to Ontario Ministry of Revenue website) is calculated based on the following:

Percentage	Explanation
0.5%	amounts up to and including $55,000
1.0%	amounts exceeding $55,000 up to and including $250,000
1.5%	amounts exceeding $250,000
2.0%	amounts exceeding $400,000 where the land contains one or two single family residences

Calculation Examples

Example #1

Value of the consideration equals $95,000.

Multiply $55,000 by 0.5% (55,000 × 0.005) = $275
Multiply the amount exceeding $55,000 up to $250,000 by 1.0% (40,000 × 0.01) = $400

Total land transfer tax payable = $ 675

Example #2

Value of the consideration equals $450,000 for land not containing one or two single family residences.

Multiply $55,000 by 0.5% (55,000 × 0.005) = $275
Multiply the amount exceeding $55,000 up to $250,000 by 1.0%
(195,000 × 0.01) = $1,950
Multiply the amount exceeding $250,000 by 1.5% (200,000 × 0.015)= $3,000

Total land transfer tax payable = $5,225

Example #3

Value of the consideration equals $450,000 for land containing one or two single family residences.

Multiply $55,000 by 0.5% (55,000 × 0.005) = $275
Multiply the amount exceeding $55,000 up to $250,000 by 1.0%
(195,000 × 0.01) = $1,950
Multiply the amount exceeding $250,000 up to $400,000 by 1.5% (150,000 × 0.015) = $2,250
Multiply the amount exceeding $400,000 by 2.0% (50,000 × 0.02)= $1,000

Total land transfer tax payable = $5,475

Also, different city may imply different municipal land transfer tax. In Toronto, the land transfer tax (refer to city of Toronto website) is calculated as follows:

Value of Consideration	MLTT Rate
Up to and including $55,000.00	0.5% plus
$55,000.01 to $400,000.00	1.0% plus
Over $400,000.00	2.0%

FOR EXAMPLE: A home with a consideration value of $500,000.01(excluding GST):

MLTT Rate	Calculation
0 to $55,000.00	55,000.00 x 0.005 = $275.00
$55,000.01 to $400,000.00	$344,999.99 x 0.01= $3,450.00
$400,000.01 to $500,000.00	$99,999.99 x 0.02= $2,000.00
Total MLTT= $5,725.00

  4. Legal fees on purchase
   This is the fee that you have to pay your lawyer for legal issues, and it would depend on lawyers. Based on what I found from the internet, it is probably feasible to put an estimate of 0.2 ~ 0.5 % of the house price.

5. Registration cost/disbursements on purchase
This is the cost that your lawyer has to pay on your behalf for house registration or etc. It is sometimes included in the legal fees but it really depends on how your lawyers design their fee structure. I couldn't find a more detailed estimate of this cost. It seems that 400 - 600 CAD would be a reasonable estimate for this cost.

6. Survey/title insurance
The lender sometimes requires a recent property survey. The cost for the survey may range from 600 - 900 CAD. To my understanding, this is to make sure that your property doesn't have any known title issues. Instead of survey, the lender may accept if you purchase a title insurance. Title insurance is an one-time only purchase. It protects you in future years from any losses or damages resulting from unknown title issues. The cost of title insurance is roughly, based on what I found (from homelegalcost.com), 500 CAD if house price is under 500,000 CAD. This cost would depend on your house price and the lawyer who charges you.

7. Adjustment/incidentals
This refers to the share of payments between you and the seller. For example, tax for the year of purchase, utility cost, condo fees, or etc.

8. Mortgage application/appraisal fee
The lender may charge you for the mortgage application fee or appraisal fee for your house (usually around 200 CAD). However, this or at least part of this should be able to be waived after negotiation.

9. CMHC insurance premium
CMHC (Canadian Mortgage and Housing Corporation) is the largest mortgage insurer in Canada. When the down payment is less that 20 % of the purchased price, all lenders would require you to purchase a mortgage insurance from CMHC (or other institutions). The insurance premium would be added to your mortgage principal. However, PST (8%) of the premium would be required to pay at the time of closing. The current formula for mortgage insurance premium calculation from CMHC is as follows:

Loan-to-Value	Premium on Total Loan		Premium on Increase to Loan Amount for Portability and Refinance
Loan-to-Value	Standard Premium	Self-Employed without 3^rd Party Income Validation	Standard Premium	Self-Employed without 3^rd Party Income Validation**
Up to and including 65%	0.50%	0.80%	0.50%	1.50%
Up to and including 75%	0.65%	1.00%	2.25%	2.60%
Up to and including 80%	1.00%	1.64%	2.75%	3.85%
Up to and including 85%	1.75%	2.90%	3.50%	5.50%
Up to and including 90%	2.00%	4.75%	4.25%*	7.00%*
Up to and including 95%	2.75%	N/A	4.25%*	*
90.01% to 95% — Non-Traditional Down Payment***	2.90%	N/A	*	N/A
Extended Amortization Surcharges Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

Another quick way to estimate mortgage premium is to use this website (Canadian Mortgage Information).

9. Interest adjustment (excerpted from Toronto Real Estate and Neighbourhoods Blog )
Most lenders would like to start mortgage contract from the first day of the month. However, it is usually not the case for your closing dates. Between the closing date and the first scheduled payment date for the mortgage, you would need to pay an interest adjustment. It works out to a little less than you would be paying if your mortgage term started on the same day you bought your house because it doesn’t include any principle repayment (it’s an interest only charge).

10. Property tax holdback ( excerpt from Mortgage Intelligence)
If the lender is collecting and paying property taxes you may be required to pay to the lender an amount to ensure sufficient funds are available to pay the next instalment of property taxes when due. An alternative to a property tax holdback is for the lender to increase the tax portion of the regular payment proportionately to ensure sufficient funds are on hand in time to pay the taxes when due.

11. Home insurance
   If you need to get a mortgage, the lender usually requires you to have a home insurance. However, I would think that it's better to have one even if you don't need to get a mortgage. KANETIX would be the best website to get a quote/estimate for home insurance.

12. HST for new home buyers (for details see Ontario Ministry of Revenue)
   In Ontario, if you buy a new house, you will be subjected to HST for the portion exceeding 400,000 CAD. HST does not affect resale homes or new homes under 400,000 CAD.

  13. Status certificate (excerpted from Toronto Real Estate and Neighbourhoods Blog )
   This applies to condo only. Condo buyers need to pay for a status certificate, which their lawyer will review at closing. It includes the condo corporation’s financial statements and bylaws and it will give you a sense of the overall financial health of the partnership you are about to join. Your lawyer will use this document to gauge the probability of a significant increase in your condo fees. The good news (aren’t you ready for some good news on closing costs?) is that the fee for this certificate is capped at $100.

  14. Moving expenses/utility hook ups/condo fees
  15. Repairs/renovation/painting
  16. New appliances/furniture
   Item 14 -16 would vary case by case.

The above are all costs that I can relate to purchase of a home so far. If I am going to buy a 450,000 CAD resale freehold house in the city of Toronto with at least 20% down payment, I would expect to pay roughly 13000 CAD (consider item #2, 3, 4, 5, 6 only), or 3% of the house price for the closing cost. A more general rule of thumb would be roughly 2 - 4 % of the house price. Note this is for reference only. There may be still other costs. Just be as prudent as possible when budget is a significant factor.

Other reference websites:
http://www.johncahill.ca/closing-costs
http://www.virtual-law.com/index.php/realty/how_much_do_i_need_to_close_my_purchase/
http://www.ramforhomes.com/toronto_closing_costs
http://homebuying.about.com/od/financingadvice/qt/BuyClosingCosts.htm

A quick look of the income tax

2011-03-05T13:55:00.000-08:00

It's tax season again! Wondering how much tax return you should expect this year? The following links can give us a quick peep.

Canadian income tax rate for 2010: http://www.cra-arc.gc.ca/tx/ndvdls/fq/2010_rt-eng.html
Canadian income tax calculator: http://lsminsurance.ca/calculators/canada/income-tax

Buy it right now or wait until having enough down payment?

2011-01-05T07:39:00.000-08:00

It is an interesting question for me. Should I buy a house if I don't have enough down payment (20% of the price) for it? Or, is it better for me to wait until I accumulate enough money?

In mortgage-wise, if I have 20% down payment at hand, I should be able to get 80% from mortgage provided that I have a reasonable gross debt ratio and satisfactory credit. If I don't have enough down payment, say only 10% down payment, I can still get 90% from mortgage by paying CMHC mortgage insurance premium to the lender (by adding insurance premium to the mortgage principle). Again, this is based on the fact that I have a reasonable gross debt ratio and satisfactory credit. So, there is no big obstacle preventing me from buying a home with low down payment. The only concern is: will I end up paying more if I choose to pay less down payment?

The best way to figure it out is simply do some calculation. I will compare two scenarios. In scenario 1, I buy right now. In scenario 2, I buy the house after m months when I save enough money. However, the house price increases after m months. To simplify the calculation, several assumptions are made: the house price is assumed to increase monotonically 5% annually, based on historical housing price in Canada; I have to pay rent during the period that I try to save enough down payment; the mortgage interest rate is assumed to be constant throughout the years; I will sell the house in n years from now, regardless of when I buy the house; I can save 25000 CAD annually. The calculation compares the total amount of money spent n years from now.

nomenclature:
alfa:           the ratio of my down payment to the listing price
HPrice:      price of the house
beta:          ratio of ( annual mortgage payment/total mortgage amount) at a given mortgage term (ref 1)
n:               I am going to sell the house n years from now
CMHC:     CMHC mortgage insurance rate, as a function of total mortgage amount (ref 2)
Rent:          the monthly rent that I have to pay while saving money
m:              I have to wait for m months until I have 20% down payment

Scenario 1: Buy right now
I have alfa*HPrice as down payment. The rest will be paid through mortgage plus the mortgage insurance premium.

Cost = alfa*HPrice + beta*n*[ (1-alfa)*HPrice + CMHC* (1-alfa)*HPrice ]

Scenario 2: Buy until having enough money
I wait for m months until I have 20% down payment. However, the house price increases by (1.05)^(m/12) over this period. I also have to pay m*Rent while saving money.

Cost = 0.2*HPrice*(1.05)^(m/12) + beta*(n- m/12 )*0.8*HPrice*(1.05)^(m/12) + m*Rent

Cost difference (Scenario 1 - Scenario 2)
= HPrice*[ alfa - 0.2*(1.05)^(m/12) ] + beta*HPrice*n*[ 1 - alfa + CMHC*(1-alfa) - ( 0.8 - m/(15*n) )*(1.05)^(m/12) ] - m* Rent

Case study 1:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 10 year; CMHC = 0.02;   m= 24 months; Rent = 1100.

If I buy right now, I will save 20646 CAD.

Case Study 2:
alfa = 0.05; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 10 year; CMHC = 0.0275;   m= 36 months; Rent = 1100.

If I buy right now, I will save 28480 CAD.

Case Study 3:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 20 year; CMHC = 0.02;   m= 24 months; Rent = 1100.

If I buy right now, I will save 9459 CAD.

Case Study 4:
alfa = 0.1; HPrice = 400,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 10 year; CMHC = 0.02;   m= 24 months; Rent = 1100.

If I buy right now, I will save 21797 CAD.

Case Study 5:
alfa = 0.15; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 10 year; CMHC = 0.0175;   m= 12 months; Rent = 1100.

If I buy right now, I will save 9367 CAD.

Case Study 6:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0757101 (based on a 5-year term at 5.85% with 25 year amortization); n = 10 year; CMHC = 0.02;   m= 24 months; Rent = 1100.

If I buy right now, I will save 6246 CAD.

Case Study 7:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 10 year; CMHC = 0.02;   m= 24 months; Rent = 0.

If I buy right now, I will pay 5754 CAD more.

Case Study 8:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0621504 (based on a 5-year term at 3.85% with 25 year amortization); n = 15 year; CMHC = 0.02;   m= 24 months; Rent = 0.

If I buy right now, I will have to pay 11347 CAD more.

Case Study 9:
alfa = 0.1; HPrice = 500,000 CAD; beta = 0.0757101 (based on a 5-year term at 5.85% with 25 year amortization); n = 15 year; CMHC = 0.02;   m= 24 months; Rent = 0.

If I buy right now, I will have to pay 26968 CAD more.

Surprisingly, I found that I actually save money if I buy right now for most of the cases. It is better to buy a house with less than 20% down payment plus mortgage insurance rather than to wait until having 20% down payment, if (1) the interest rate is low; (2) I am sure that I am going to sell the house long before amortization; and (3) I have to pay high rent before having enough money.

Note the amount of money saved may be exaggerated in the above calculation. Although the house price increases 5% annually, as a long term trend, the actual house price, depending on macro economics, may fluctuate randomly in a short term, say within 2 or 3 years. I might end up getting the house at a lower price 2 years from now. Who knows. The interest rate is assumed to be constant for simplicity. In reality, it changes from time to time, which also affects the calculation. Also, I assumed that I can get same mortgage rate regardless of percentage of down payment. The actual mortgage rate may differ. The most significant factor is found to be "rent." The major reason that I can save by buying right now is the high rent. If the rent is very low, or if I am staying at my parents' home, the results will be totally different. In most of the cases, the money I can save mostly attributes to the "rent saving."

The above finding is meant to be for reference only. Do not use it as a general guide. After all, I am not a financial professional...:p But at least I can say, waiting until having enough down payment may not always be a better idea..

Reference website:
1. Mortgage calculation: http://www.canequity.com/mortgage-calculator/
2. CMHC mortgage insurance premium: http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
3. Another website for mortgage insurance premium calculation: http://www.canadian-mortgage-information.com/cmhc-calculator.html

Home renovation estimate

2010-12-19T16:48:00.000-08:00

Buying a perfect move-in ready home is a dream for most home buyers, but in reality we often have to do something to shape the home to our own taste. Home renovation, major or minor, may be necessary when buying a new home. I was trying to find out if there is a "perfect" website that could give readers a quick but reasonably accurate first-cut estimate for all kinds of home renovation. However, the cost of home renovation varies with a lot of factors, such as location, materials to be used, sizes, timing, and etc. Given the fact that every renovation is unique (so is every home), I realized soon that it is unrealistic to expect that such a website would exist. Nevertheless, I still managed to collect some website, hoping that they will at least shed some light.

Renovation Pro http://www.renovationpro.info/index.php
It provides a listing of suppliers or contractors for all aspects of home renovation in the Greater Toronto Area.

247 reno    http://www.247reno.ca/
It's a blog about two home owner's home renovation stories. Cost of each renovation is shared. It may serve as a good reference for reno budgeting.

Nostco Construction    http://www.nostco.com/
It provides some tips of home renovation as well as a quotation.

Unica Custom Homes     http://unicahomes.ca/index.html
Quick quotations for home renovation.

The list is definitely far from completion. I will try to add more when I found new good ones.

Brief introduction of the neighborhoods in Mississauga

2010-10-23T21:54:00.000-07:00

The description and the map is from ImmigrationPeel.ca.

Port Credit - This little town is right on the Lakeshore and has many shops, cafés and restaurants along the main street. There are newer townhomes, condominiums and apartment buildings that face the water and are within walking distance of the lake and the stores.

If you prefer an older home with a bit more character, Port Credit also has many houses suitable for a family that are close to stores, banks and restaurants. Like many neighbourhoods in Peel, Port Credit has a library and a park that runs along a marina right on the water. Visit their website for more information.

Malton - One of Mississauga’s oldest neighbourhoods, only minutes away from the Toronto Pearson International Airport, is the little village of Malton. For many years, Malton has been home to many new immigrants who started arriving in the mid 1970s, and began raising their families in a comfortable environment with many other newcomers.

Many apartment buildings offer affordable housing while the residential streets are cozy with bungalows and well established homes. Within the Malton neighbourhood there are small shops, stores and restaurants that reflect the many different communities, which provide convenience and familiarities for families new to Peel.

Clarkson Village - Clarkson is a quaint, well established community located in southwest Mississauga and borders on Lake Ontario. There are many older homes on tree-lined lots with families who have lived in the area for years. Clarkson is close to a wide range of shops, restaurants, grocery stores, parks and other amenities that make it a convenient place for families.

The village has been undergoing a revitalization in the past few years, as the City of Mississauga’s goal is to ensure that it is a pedestrian-friendly community. Visit the City’s website for more information.

Lorne Park - Once considered cottage country, Lorne Park is a high-end neighbourhood of Mississauga. It’s an exclusive area nestled on the lake between Port Credit and Clarkson and is home to many high profile and upper income families. Houses, many of them mansions, sit on sizeable lots right on the lake, protected by tall trees and are privately sheltered from the busy streets of the city.

Since Lorne Park was settled in the 1800s, many historical buildings have been preserved and are now tourist attractions. If you prefer to live in an older, well established neighbourhood, Lorne Park is a good choice.

Cooksville - Dundas and Highway 10 - This area in Mississauga is one of the most multicultural places in the city. Many newcomers feel at home in this area because there are all types of ethnic restaurants and stores that reflect Peel's diversity. Surrounding the main intersection are many residential neighbourhoods with houses, condominiums and apartment buildings.

Streetsville - There are many older, Victorian-style homes on Mississauga Road, the main street that runs through Streetsville. Surrounding the main street, there are residential neighbourhoods with a combination of older and newer homes for families.

There are a variety of shops, cafés and restaurants along the main street. For more information on the village of Streetsville, visit their website.

Erin Mills - There are many modern, residential neighbourhoods in the Erin Mills area that are suitable for families. Schools, shopping malls, parks, restaurants and a variety of stores make this a very convenient place to live. Erin Mills is located in the south-west end of Mississauga.

Meadowvale - This is an older area of Mississauga with plenty of homes, apartment buildings, schools, stores and recreational facilities for families. Meadowvale is located just north of Erin Mills and west of Streetsville.

City Centre - If you prefer to live in a busy, vibrant neighbourhood, then City Centre is the place for you. Located in the downtown core in Mississauga, this area is filled with modern condominiums, townhomes and is surrounded by residential neighbourhoods with large, family sized homes. Square One Shopping Mall is in the heart of the community and there are many restaurants, night clubs and entertainment venues close by.

Churchill Meadows - A newer community located just northwest in Mississauga. This is a very family oriented neighbourhood with newer homes and a strong community spirit. Visit the residents' association website for more information.

For more information on residential neighbourhoods in Mississauga, visit the City of Mississauga website.

Is your neighborhood walkable?

2010-05-08T19:43:00.000-07:00

"Is your neighborhood walkable?" can be interpreted in two different ways: the easiness to run all errands by walking, or the quality and the design of the pedestrian walk in your neighborhood. This question may seem irrelevant for those who always drive regardless of the distance. However, this question will become important when choosing living neighborhood for non-drivers. Even for frequent drivers like me would still enjoy talking a stroll some times, for example, in the beautiful Saturday afternoon or after dinner (to help digestion). The answer to this question may reflect the life convenience at some certain level.

If you are living in the downtown of a city, the answer is likely to be positive. Possibly negative answers are expected if you are living in a countryside. However, how do you rate if you are living in the suburbs which is kind of a mixture of city and countryside? Or, how do you know the walkability of an area that you never have a chance to be physically there? For example, you are a non-driver and you are going to move to a new city. You might need the walkability information as a reference when choosing housing.

Interestingly, I found a website that may give us some idea. Walk Score is a website which rates the walkability of any neighborhood by computing the distance to a public transit, grocery store, restaurant, parks and etc from a given address. It also considers the walking quality of pedestrian walk. It investigated most major cities in North America, and the most walkable neighborhood was rated 100 (possibly the one with highest shop density and good road condition). All the other neighborhoods were rated based on relative walkability. The following shows the description of scores. For your information, the most walkable city in North America is San Francisco. To see more cities, go to here.

Walk Score	Description
90–100	Walkers’ Paradise — Daily errands do not require a car.
70–89	Very Walkable — Most errands can be accomplished on foot.
50–69	Somewhat Walkable — Some amenities within walking distance.
25–49	Car-Dependent — A few amenities within walking distance.
0–24	Car-Dependent — You can walk from your house to your car.

This is really interesting, and I tried the intersection of Yonge St. and Sheppard St., which is the most populous area in the North York region of Toronto, right away. The score was 85, not too bad. To make some comparison, I tried a random address in Mississauga, a suburb of Toronto. It turned out to be 38, which means highly car-dependent region. This is about right. However, the rating isn't perfect.

First of all, the transit rating (which is one of the most important factor...) may not be very representative since the transit authorities may not provide transit information such as station and bus stop locations to the software developer. It can be misleading sometimes. The accessibility to the area of interested may be highly underestimated. Second, the distance to the closest shops are calculated based on data on Google Maps. You may be able to find some shops that are even closer to your home. Third, I am not sure if the rating considers the total number of shops in the same category. For example, if the distance to all kinds of shops are identical in neighborhood A and B, but neighborhood B has more shops in each category than A, will B get higher scores or not?

Nevertheless, Walk Score still provides a good first-cut estimate, which may be very useful for choosing future house locations.

What do you want for your floor?

2010-04-29T20:23:00.000-07:00

Floor type can be one of the important factors to determine the value of a home. After all, the total area of the floor is generally the total living area (well...not for spider man, who can even rest "on" ceiling...). Since the floor is like the skin of a home (interior), the texture and the color do matter. Well....The walls are also like the skin of a home, as you may argue, but it's rather easy to change the color and generally people don't want to do too much other than painting.... If you want to buy a home of 1000 square feet but you want to change the floor type to hardwood floor, you will have to pay roughly 4500 CAD (just for the floor material) + labor fee in additional to the asking price, considering an average material price of 4.5 per square feet. So, it's an expense that you can't ignore. So, knowing the differences between different floor types would be important to determine what you want for your home. Therefore, I tried to make a brief summary showing respective properties based on information collected from reference websites.

1. Carpet
Carpet flooring is one of the most popular flooring type. It's easy to install, and there are a lot of colors and patterns to choose. You could easily make your home stylus or luxurious without spending too much when using carpets. However, the maintenance and cleaning of carpets can be difficult some times. Therefore, the life span of carpets is usually short. On the other hand, carpet flooring may be a good and economical choice for people who want to change the theme of the home frequently. The quality of carpets depends on the density of fiber. The higher, the better. Carpet padding can also be used to extend the life span of carpet.

One major disadvantage of carpeting is that it can easily accumulate dust, termite, bacteria and other pollutants to affect people's health. Carpets need to be cleaned weekly with high-quality vacuums, and the cleaning process should extract as much water as quickly as possible, enabling the carpet to be totally dry in a few hours.

2.Hardwood flooring
Hardwood flooring used to be very common, but it became less common nowadays due to the relatively high cost for the material. There are two common types of hardwood flooring: plank or parquet tile. Parquet type is generally cheaper and easier to fix than the plank type. Therefore, it's quite common to see parquet flooring in rental apartments or houses. You may have also heard "engineered hardwood." Engineered hardwood flooring is composed of several layers of wood in the form of plank. Engineered hardwood flooring can be more expensive than traditional solid hardwood flooring since engineered hardwood flooring is easier to install and it can be used in many occasions that traditional hardwood flooring can't be applied.

Hardwood flooring is easily scratched when small stones or grits rub against the floor due to traffic. Regular cleaning with vacuums is a must. Also, hardwood flooring is susceptible to damage from water. Wipe the floors only minimally with a damp cloth, as constant dampness will eventually discolour the floor. Also, too much sun light exposure may cause discoloration.

3.Laminated flooring
Laminated flooring consists of several thin outer layers of paper or wood and usually a core layer of resilient foam. Laminated flooring is easy to install and maintain. Compared to hardwood flooring, it is rather resistant to scratching and denting. but it still has a look of "hardwood flooring." Laminated flooring is not recommended in damp area, such as bathroom, since it swells when getting moisturized. Unlike hardwood floor, laminated flooring can't be refinished when the finishing is damaged. It will need a replacement.

4.Ceramic flooring
Ceramic flooring is generally more durable than the previous types of flooring at a higher initial cost of labor. There are a wide varieties of colors and patterns to choose. Ceramic flooring is resistant to moisture, stains and heavy traffic. It is also recommended to use ceramic flooring when radiant floor heating is used. However, ceramic flooring is not good for long-term standing and it can be very slippery when it gets wet. Also, since ceramic flooring does not dampen sound, it may sometimes contribute a noisy environment. The other common issue is that it's generally hard to find tiles with identical pattern in the future when you want to replace a broken tile. It is suggested to keep spare tiles when installing the ceramaic flooring.

5.Marble and granite flooring
Marble and granite are the most luxurious and expensive material for flooring. They can generate a feeling of elegance to your home. They are much harder than other materials and more resistant to damage than all other types of flooring. On the other hand, due to its hardness, even the toughest glass can shatter easily when you accidentally drop it on the floor, which may cause some danger to you. The marble and granite flooring is generally "cold," which you probably want to avoid direct contact in winter. Although marble and granite flooring is generally very sturdy, it is very difficult to fix once there is a damage.

Hope this brief summary can give you some basic ideas.

Reference website:
http://192.197.69.107/en/co/renoho/refash/refash_008.cfm
http://www.ehow.com/facts_5267322_types-floor-finishes.html
http://www.articlesbase.com/home-and-family-articles/how-many-type-of-floor-material-and-how-to-use-them-427817.html
http://www.doityourself.com/stry/typesoffloor
http://www.onlinetips.org/marble-pros-cons

Introduction to Canada Mortgage and Housing Corporation – a great source of housing information that you can’t miss!

2010-04-24T20:27:00.000-07:00

I found CMHC accidently when searching Canada statistics related to demographic and socio-economic influences on housing demand. It is crucial to have the fundamental knowledge around these factors. Eventually, the household growth is the largest component of housing demand as well as the economic activities. Getting the big picture will lead you to the right direction when considering buying/investing the property in the long run.

The great thing about CMHC is that they offer a wide range of housing-related reports. They make it very easy to access, read, and it’s free!

However, you might get lost at the beginning since there is too much information available up there. I would recommend checking out the annual Canadian Housing Observer first. It is their flagship publication which provides an in-depth review of housing conditions and trends in Canada and describes the key factors that influence these developments.

Key topics include:
•    Affordable Housing
•    Demographic and Socio-economic Influences on Housing Demand
•    Current Market Developments
•    Housing Finance
•    Sustainable, Healthy Communities and Water
•    Recent Trends in Affordability and Core Housing Need
•    Housing Research

You can also find the dedicated sections to “Homebuying Step by Step” and “The Newcomer's Guide to Canadian Housing” What a great resource!

Below just a quick abstract from Canadian Housing Observer 7th edition by CMNC
Demographic and Socio-economic Influences on Housing Demand
•    Projections of household growth, spanning the period of 2007 to 2036, were developed. While not forecasts, they provide a variety of scenarios at the national level which illustrate the impacts of alternative assumptions of how different extrapolations of past trends of key factors could affect future population and household growth.
•    Household growth, the largest component of the demand for housing, has played a key role in the expansion of Canada’s residential construction sector over the past three decades.
•    Since the size and age composition of the population are the main factors contributing to household growth, the aging of Canada’s population over the next three decades will have important implications for home builders, mortgage lenders, government policy makers and other housing market participants.
•    Immigration has been a key factor influencing population growth in Canada and will become increasingly important in the coming decades as the age-structure of the population shifts more decisively in favour of older Canadians.

What kind of view do you want from your window?

2010-04-24T18:42:00.000-07:00

If I am going to live in a house, I won't care much about the view when choosing houses, since it will be highly possible that the view is simply my neighbor's house. The front side or the back side of the house would be equally unattractive to me. However, if I am going to live in a high-rise condo, the view from the window will become a much more important factor. Since living in a condo is already choking, I would like to have a wide open view from my window to balance the feeling.

For fun, I put several photos of views from the windows of my previous and the current dwelling here. Which one would you like to see from your window?

Toronto, Canada

Montreal, Canada

West Lafayette, USA

Taipei, Taiwan

Yilan, Taiwan

Yonghe, Taiwan

Xindian, Taiwan

Condo Fee -- a hidden cost when buying homes

2010-04-22T20:08:00.000-07:00

Buying a detached home with its own yard may be a dream to be fulfilled for many home buyers. However, this dream is often unrealistic for most first-time home buyers since the price of detached homes are generally unaffordable to them. The dream will come true, but it does take some time to accumulate enough fortune. Therefore, first-time home buyers may consider buying a condo for its lower price, while sacrificing spaces and sharing facilities with others.

Although many people may have misconception that condos refer to those high-rise buildings only, condos are actually a type of ownership rather than a type of home. A condo can take the form of apartment-style complexes, townhouses or converted multi-family dwellings. The owner of individual unit doesn't own all the land or the whole building. Instead, all individual owners in the condo share the land and the building. Each individual owner only owns a portion of the land and the building, depending on his unit size. That's why condos are generally cheaper than a detached house.

Since condos are based on the concept of ""sharing," there are facilities or services, such as swimming pools, gyms, or concierge, meant to be shared as well. In order to maintain these services, a condo management team is generally needed and all tenants are required to pay a monthly fee of a certain amount to run the management. This fee is called "condo fee." Condo fees can be very different in different condos since each condo provides different services. Some condo fees may cover basic repairs and maintenance only. Some may cover utilities and some may also cover future construction plans such as swimming pool construction, and etc.

According to my personal experiences, condo fees for a comparable 2-bedroom can range from less than 200 CAD to more than 700 CAD per month! I would be very concerned about the condo fee since mortgage will be paid out some day, but the condo fee will last as long as I own the unit. For example, if my condo fee is 500 CAD per month and I am going to stay in this condo for a duration of 10 years, the additional cost for me would be equivalent to 64,000 CAD considering a semi-annual compound of 1.25%! So, never forget to consider condo fee as a part of cost! Also pay attention to what kind of services are included in the condo fee. You may not need these services at all, and you can try to find another comparable condo with lower condo fee.

However, I also found that there is some complicated relation between the condo fee and the price of the condo. Sometimes, a condo with a lower listing price may require higher condo fees than a comparable condo with a higher listing price. This phenomenon might be able to be explained that lower-listing-price one is older (so listing price is lower) and its cost for maintenance is higher (so the condo fee is higher) if other conditions are similar (same location, same services provided, etc..). Yet, it's hard to fully explain why this happens since it is always case-by-case.

So, I just thought about one thing: say today there are two choices for me. One is a high-rise condo priced at 300,000 CAD with a condo fee of 600 CAD, and the other one is a townhouse priced at 380,000 CAD with a maintenance fee of 200 CAD. Assume these two choices are identical (same size, same appreciation....), and I am going to stay for 20 years. Which one is cheaper?

Assume I can only pay the same down payment (100,000 CAD) for both case. For high-rise condo case, I have to pay 400 CAD more per month, and it will end up with an additional cost of roughly 110,000 using same calculation. So, it seems that condo fee may overpower the price difference in the long run. Should I pick the townhouse? Not really. Note the mortgage rate is always higher than the saving rate. If I use a same mortgage rate of 4.39% for 20 years for both the high-rise condo (borrow 200,000 CAD) and the townhouse (borrow 280,000 CAD), the total amounts of money I paid at amortization are actually 299,808 CAD and 419,731 CAD, respectively. So, the results shows that the townhouse is still a little bit more costly than the high-rise condo.

The reason for showing this case is that although condo fee can be a huge cost over a long time and we should pay attention to it, we cannot overstress its importance and assume buying the one with low condo fee is always cheaper. We still need to calculate the total cost carefully!

Reference website (mortgage and saving calculation)
http://www.calcudora.com/regular-savings-calculator.php
http://www.canequity.com/mortgage-calculator/

Watch HD channels for free

2010-04-21T21:10:00.000-07:00

I don't really like the cable service provided in Toronto, or at least in my neighborhood (North York). I can only choose between Rogers and Bell Canada. Although I enjoy watching TV while having a cup of tea, most of the programs on TV actually bore me. I am willing to spend my time on only two or three favorite channels, but that's the dilemma when choosing the cable plan. Usually, I have to pick the VIP/Plus plan to cover my channels, which also means that I have to pay 60+ or 70+ CAD for 50+ channels that I don't even give a glimpse. OK! How about forgetting those 2 or 3 my favorite channels and just keeping basic channels such as news, weather broadcast, and etc? Unfortunately, I still have to pay 30+ CAD even for these channels.....

Maybe some people would think 30 or 60 CAD per month is nothing, but I just don't think it is worth the money....Luckily, there is a way to watch free TV channels, even for HD! Many of the TV channel signals are actually transmitted through the air nowadays, not through landlines as some people may imagine. These signals are uncoded and meant to be free, so you can simply receive these signals using an antenna and enjoy these programs without paying anything. Although I am not an expert in this field, I try to explain a little bit how it works.

TV signals are used to be transmitted in two different forms: analog and digital. However, analog signal transmission is deemed to be completely replaced by digital signal transmission in the near future since digital signals can support more data formats and contain much more details than analog signal can. USA switched to high-power over-the-air broadcasts using solely digital format since June 11, 2009, and Canada is going to follow starting from August 31, 2011. Therefore, the example in this article refers to digital TV only (although it is still very similar to the analog case).

First of all, let's talk about what TV channels are available freely. In Canada, most of the TV channel signals are transmitted through CN Tower. Since the signal strength is in-proportional to the distance, signal strength should be very strong in all GTA owing to its proximity to CN Tower. People living in GTA can also receive several programs from Hamilton station. In additional to Canadian broadcast stations, Buffalo also broadcasts several programs which are also available to people living across the lake. Currently, there are nearly 20 free channels (including roughly 8+ HD channels) and the number is still growing. The list of the available channels is shown in this site: http://www.remotecentral.com/hdtv/index.html.

Second, we need to catch these over-air signals in order to watch these shows in our homes. The easiest way is to get a TV antenna, either outdoor or indoor antenna. The major purpose of using an antenna is that it can receive weak signals that TV can't pick up, amplify those signals, and then feed them to the TV. The difference between indoor and outdoor antennas simply lies in the location where the antenna is placed. For me, I would prefer to use an indoor antenna since it is not physically affected by the weather such as snow or rain, and the required cable length is shorter ( I can put it next to the TV).

Third, you need to have a TV which can receive digital signals. If you bought a LCD TV in the past 2-3 years, you should be fine. The TV should have a built-in digital signal receiver. You only need to hook the antenna to TV using a coaxial cable, and use the "automatically search available programs" function in your TV (you usually need to crawl the TV function menu a little bit to find this). After few minutes of program searching and mapping, you are ready to enjoy free shows. If you are still using a traditional CRT TV, you will likely need to get a signal converter. Traditional CRT TVs read analog signals only. Since the signals fed from the antenna are digital, you will need a digital-to-analog signal converter box to "translate" the incoming signals to a format that is readable for the TV. However, many newer CRT TVs may already equip with an internal signal converter. So, it's better to check your TV manual before buying a signal converter box.

So, the total cost comes from the antenna and the signal converter box (only if your TV doesn't read digital signals). The antenna I used cost me roughly 35 CAD, and I don't need a signal converter box. So...that's all! I only need pay 35 CAD as an "initial setup fee," and I don't need to pay anything thereafter. Although the signal converter box may cost, for example, 85 CAD from The Source, it is still considered saving as compared to cable subscription in the long run.

However, there are still some limitations and this method might not work for everyone. Since the signals are over the air, the strength of the signal is reduced when it has to go through a building or something before reaching your home. In GTA, the best scenario would be that the TV room has a big window facing south (to the CN Tower) and you have an unblocked line of sight of the CN Tower from that window (for the case when you use an indoor anntenna). If your TV room doesn't have a window or doesn't have a window facing south or in the basement, your indoor antenna might not be able to amplify the signals to a strength strong enough for TV to read. If you live in a valley or you are surrounded by tall buildings, you are likely to have the same problems. Once you have a south-facing window, the distance to the CN Tower is no problem. I can get roughly 17 channels in North York, and I heard someone in Newmarket having similar results. So, it is worth trying if you want to save your cable bills. After all, you can always return the antenna right away if the results don't satisfy you.

The reference site:
http://en.wikipedia.org/wiki/Digital_television
http://freetoronto.tv/
http://www.remotecentral.com/hdtv/index.html

Buying a foreclosure always saves a lot of money? It depends...

2010-04-16T20:46:00.000-07:00

In addition to normal home purchase process, some home buyers may be interested in buying their new homes from foreclosures. The general idea is that buyers can save up to 40% when buying a foreclosure, but is it always true? Let's start with the definition of foreclosures.

Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner's right of redemption for other debts, such as for overdue taxes, unpaid contractors' bills or overdue homeowners' association dues or assessments. (This definition is directly excerpted from wikipedia)

Honestly, the above paragraph really kills my brain cells (that's so-called "legal terms"). In simple words, people usually need to borrow some money from banks (mortgage) when buying houses (not many people are millionaires...). Although banks can earn interests when borrowers pay back the debt, the bank asks borrowers to use their houses as a security interest to make sure that the bank can get the money back. When the borrowers stop payment for two or three months (can be shorter...just a ballpark length), the bank may start a series of legal action by obtaining a permission from the court to possess borrower's house. The bank will sell this house to get their money back. When a house is sold under this circumstance, this is call a house on foreclosure.

In Canada, there are two main ways a lender can recover a mortgage debt when a borrower defaults: Judicial sale or power of sale. Judicial sale is a sale conducted under the supervision and authority of the court, where a lender must apply to the court to get the court's permission to sell the property. Power of sale allows a lender to sell property without the involvement of the court. The lender has the right to sell the property from the mortgage document and/or provincial legislation which authorizes power if sale in that province.

Power of sale is used as the lender's primary recovery method in Newfoundland, New Brunswick, Prince Edward Island, and Ontario. Whereas, Judicial sale has been adopted as the primary debt recovery vehicle in British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec. In Nova Scotia, the primary recovery process is called "Mortgage Foreclosure" or "Mortgage Foreclosure and Sale," but is considered judicial, as the court is involved. (the above two paragraphs are excerpted from reference website 2). Generally speaking, the process of power of sale is faster since the court is not involved.

The main reason why buying a house on foreclosure can be cheaper than buying one from normal real estate market is that it's the bank who sells the property, not the owner. From bank's point of view, they want to get their money (the unpaid mortgage) back as soon as possible. They don't really care how much this house can be sold since they can only take the unpaid mortgage back. The surplus from house selling will be returned to the house owner. The bank can sell the house at a relatively cheap price to shorten the process.

Although home buyers may benefit from buying a house on foreclosure, the saving may not be always substantial. There are several conditions which may reduce the saving. First of all, there is a law to protect home owners' benefit when their homes are sold by the bank. Home owners can sue the bank if they think their houses are not sold at a fair market price. To avoid this, the bank would be careful about the asking price. Sometimes, the asking price may not be noticeably cheaper than the market price.

The main reason a home owner stops paying mortgage is due to personal financial problems. Therefore, the owner may also have difficulties in paying utilities, property taxes, condo fees, and etc. The buyer will be liable to these unpaid fees when he buy the house. Depending on the situation, the buyer might end up with paying more for buying a house on foreclosure.

The other risk is that the interior conditions of the house are generally unknown. The buyer generally has no access to the interior of the house before the deal is done. A home inspection is not possible. Besides, the bank or the owner has no obligation to repair the house before the final transaction. The buyer needs to be careful and consider this as additional costs.

In summary, buying a house on foreclosure can be a good deal, but the buyer needs to do some homework as well. It's recommended for inexperienced buyers to consult a lawyer before action. After wall, there is no easy money in this world....

Reference website:

http://en.wikipedia.org/wiki/Foreclosure
http://www.propertylimit.com/Buyer_Power_of_Sale.html
http://www.bjankowski.com/columns/column1.html
http://www.goftp.com/qna/How_to_buy_a_power_of_sale_in_ontario-qna1290.html

How to pick home heating system

2010-04-14T08:27:00.000-07:00

We all know how tough winter can be in Canada. So, picking a right home heating system is of great importance. There are a variety of choices on the market, but how do we know which one we should pick if we know nothing about these heaters. Therefore, I just want to make a brief summary of some common types of home heating systems. The information is gathered from the reference websites. Please check these websites if more details are needed.

There are two systems to keep our homes heated: central heating systems and unitary systems. Simply speaking, central heating systems heat the entire home at the same time, while unitary systems are designed to heat individual rooms or serve as supplementary heating. There is no quick formula to determine the proper size of the heating systems since every home is different and heat is lost via different ways for different homes. The best way is still to consult contractors and obtain bids from several contractors. Generally, the capacity of the selected heating system needs to be from 10 to 30 percents higher than the design heat load. It is important to remember that heating systems are only replaced about every 20 years, so you will have to live with your decision for some time.

Now, let's talk about the central heating systems first.

Central heating systems can typically be divided into two broad classes, those that distribute heat by heated air and those that use water as the distribution medium. Electric and gas-fired warmair furnaces, air- and water-source heat pumps, and hot-water baseboard or radiant slab are all central systems. Electric baseboard and electric radiant heating are also used on occasion.

Central warm air systems

Warm-air heating systems include gas-fueled furnaces, electric furnaces, conventional heat pumps, and ground-coupled heat pumps. Ducts provide a passage for heated or cooled air from the heating or cooling unit to and from the conditioned space.

Gas-fueled warm air furnaces:
Natural gas or propane-fired warm air furnace are commonly used. Several manufacturers offer multi-stage furnaces. These units have both a high- and low-heat delivery rating. If it is mild outside, the unit delivers heat at the lower rate. If it is cold outside or the home is recovering from a setback condition, the higher delivery rate is used. The principal advantage is the ability to maintain a more constant inside temperature.

Electric furnaces:
Electric furnaces provide heat by using a series of electric resistance heating elements and a central fan. The fan is similar to a blower in a fuel-fired warm-air furnace. Electric furnaces were once quite popular but increasing electricity prices have made them potentially too costly to operate. In areas where the demand for heat is low or where electricity prices are low, they are still quite cost effective.

Air source heat pump:
Air-source heat pumps deliver heat at less than half the cost of an electric furnace. During the summer, heat is gathered from the house and rejected to the outside air. During the winter, heat is gathered from outside air and rejected (delivered) to the home. The heating capacity may not meet the home’s heating needs during extreme conditions and supplemental heat is often required.

Ground-source heat pumps:
Ground-source heat pumps work in a fashion similar to air source heat pumps except they transfer heat from or to the ground rather than the air. Two general approaches are used for coupling the heat pump to the ground. The oldest method, referred to as ground-water heat pump (GWHP), pumps water from a well or other water source, transfers heat from the water in the winter and to the water during the summer, and discharges the water back to the ground. The second and newer approach, referred to as ground-loop heat pump (GLHP), buries a long loop of plastic pipe in which a water and glycol mixture is circulated. If the size of the well or loop is undersized, it will not be able to transfer enough heat for the needs.

Hot water boilers:
Hot-water boilers commonly use either baseboard radiation or slab-radiant heating as delivery methods. Baseboard heaters have been used for years and are an adaptation of older cast-iron radiators. Cast-iron radiators needed to be large to provide the surface area needed. Baseboard radiation heaters have fins attached to a pipe to provide the needed area.

Slab radiant heating has gained popularity in the last twenty years. One common approach is to bury plastic or rubber tubing in a concrete slab during the construction process. Hot water from a boiler is circulated through the tubing to warm the floor.

Radiant heating systems are often considered more comfortable than forced-air delivery heating systems. The warm floor heats objects and people in the room, providing a higher sensation of comfort, often at lower air temperatures. Because the room air temperature is often set lower, heating costs are reduced over forced-air heating systems. Another advantage of both baseboard and slab-radiant heating is the ability to heat different rooms to different temperatures.

One of the major disadvantages for hot-water baseboard or radiant heating is a separate air-delivery system is needed if the home is to be air conditioned.

Now, let's talk about the unitary systems.

Unitary systems provide heat to only a portion of a home. These included window or through-the-wall heat pumps, electric baseboard heaters, vented and unvented room heaters, wall furnaces and wood stoves.

Wood stoves:
Three types of stoves are marketed: non-catalytic, catalytic, and pellet. Catalytic stoves contain a ceramic combustor that is coated with a chemical catalyst. The combustor helps assure unburned fuel is combusted prior to leaving the stove. As with all heating systems, it is important to match the stove’s size to the home’s heating needs. Oversized stoves will overheat the home and must be operated in a choked condition, reducing performance and increasing emissions.

Room heaters:
Space heaters are available in both vented and unvented configurations. Vented room heaters burn natural gas or propane and exhaust the products of combustion to the outside. Unvented heaters use room air for combustion and discharge products of combustion back into the room. If unvented heaters are used in a confined space, moisture will build up and potentially cause mold and mildew growth. Other indoor air quality problems may occur when unvented heaters are regularly used for space heating.

Wall furnaces:
Wall furnaces have application similar to room heaters. They are available in both traditional vented and sealed-combustion designs.

Electric baseboard radiation:
Electric baseboard radiation heaters are often used where supplemental heat is needed. Electric baseboards can be controlled room by room so savings are possible by only heating a portion of the home.

Window and through-the-wall heat pumps:
Packaged heat pumps are used a great deal in motels. They provide an excellent supplemental heat source when extending an existing heating system is not possible or if combustion heating is undesirable. Like window air conditioners, noise is a common problem. The compressor is located in the room, as is the distribution fan.

Solar heating:
Active solar energy systems are not commonly cost effective unless energy is expensive. However, use of passive solar heating principles in the design and operation of the home can provide a significant amount of a home’s heating needs.

Passive solar homes do not have to look significantly different than a traditional home. The principles are simple: Admit the sun’s energy into the home when heat is needed; provide a means to store some of the heat for when the sun doesn’t shine; and keep heat out when it is not needed.

To accomplish these simple concepts, a combination of overhangs, glazing, and thermal mass is used. Much of the house’s glass should be located on the southern exposure. Because the sun is to the south and low in the sky during the winter, southfacing glass lets the sun in. Avoid large expanses of east and west glass because they provide very little winter heating benefit but allow lots of heat in during the summer when the sun has moved north.

One important guide to select heating systems is to check their seasonal energy efficiency, also known as the Annual Fuel Utilization Efficiency (AFUE). The higher the AFUE, the more efficient the heating unit. Gas furnaces have a minimum AFUE of 78 % but can be as high as mid 90%. Hot water boilers have a minimum AFUE of 80% with some in the mid 90%. For a general guide, please regard to the second reference website.

Reference website

http://www.energycodes.gov/implement/pdfs/lib_ks_selecting_a_home_heating_system.pdf
http://www.aceee.org/Consumerguide/heating.htm

You probably don't know -- location not only affects home prices but also your car insurance rate!

2010-04-10T18:09:00.000-07:00

We just moved from Montreal to Toronto. Everything so far is fine. The life style and culture may not be as different as we would imagine although people do speak different languages and dress a little bit differently (I would say Montrealers are generally more à la mode..). The only thing freaking us out is the car insurance.

I don't know why, but the car insurance rate here is way way way more expensive than that in Quebec. For same coverage, same car, I have to pay around four times more than I used to pay in Quebec. I really had a hard time to accept the offer...Since it was so expensive, I tried to consult my insurance agent to see if there is any way to reduce the rate. One possible way is, surprisingly, to choose a right place to live.

He showed me how living locations could change the premium by keying different postal codes into their system. For example, I can get a much cheaper rate if I use a postal code for Waterloo instead of Toronto. It's reasonable since there are not as many cars in Waterloo as in Toronto. Fewer cars means lower possibility of accidents and, therefore, lower insurance rates. However, the variation of insurance rate can still be noticeable even for locations within Toronto. I am in North York. I could save more than 10% if I live in the downtown Toronto. He pointed out that people could generally pay less if they live on Yonge street (up to Yonge and Finch). If I am willing to move 5 km west to Yonge Street, I could still save 5~8 %. 8% may not sound like a big discount, but it is not a negligible discount for me since my annual insurance premium is more than 3000 CAD. If I move north to Markham, I could save some money, but not much. But if I move to Scarborough or Jane and Finch region, my rates will go up.

He didn't explain why, but I think it's all about the location. For people with access to public transit (downtown, or along Yonge Street up to Finch), they generally rely more on public transit rather than on driving. So, insurance is cheaper. Since insurance company needs to consider all factors that may damage your car, they charge you more if you live in a relatively unsafe area. Maybe it's not always true, but it does look like that the location does matter! If you are a home owner, you probably can not do anything about it. If you are about to buy your new home or you are renters, maybe you could consider this when choosing your next dwelling.